Document:

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                                                                   EXHIBIT 10.22

                                  OFFICE LEASE

                     BASIC DEFINITIONS AND LEASE PROVISIONS
                                    (Office)

     A. The following list sets out certain defined terms and certain financial
and other information pertaining to the lease:

          1. "Date of Lease": November 27, 2000
                              -----------------

          2. "Landlord": Aetna Life Insurance Company

          3. Landlord's address: 12001 N. Central Ewy., Suite 650, Dallas, TX
75243

               Contact: UBS Realty Investors, LLC, Agent

               Telephone: (972) 437-9778               Facsimile: (972) 783-2329

          4. "Tenant": Stanford Microdevices, Inc., a Delaware Corporation
                       ---------------------------------------------------

          5. Tenant's address: 726 Palomar Avenue, Sunnyvale, CA 94086
                               ---------------------------------------

          Contact: Greg Baker
                   ----------

          Telephone: 972-952-1465                        Facsimile: 972-952-1468
                     ------------                                   ------------

          6. Tenant's trade name: Stanford Microdevices, Inc.
                                  --------------------------

          7. "Building": Landlord's property located in the City of Richardson,
Dallas County, Texas, which property is described or shown on Exhibit "A",
                                                              -----------
attached to the Lease.

          8. "Premises": A unit in the Building containing approximately 20,832
                                                                         ------
square feet in rentable area (measured by calculating lengths and widths to the
-----------
exterior of outside walls and to the center of interior walls, without deduction
for any columns or projections necessary to the building, and, if applicable, a
proportionate share of any common areas located on the floor(s) on which the
Premises is located and a proportionate share of any of the Building's public
areas, management office, engineer's office, and mechanical spaces, e.g.,
service areas housing communications, HVAC, plumbing, fire protection and
elevator equipment), being known as Arapaho Business Park X, 1212 E. Arapaho
                                    ----------------------------------------
Road, Richardson, TX 75081 and being described or shown on Exhibit "B", attached
--------------------------                                 -----------
to the Lease. With regard to Exhibit "B", the parties agree that the exhibit is
                             -----------
attached solely for the purpose of locating the Building and the Premises within
the Building and that no representation, warranty, or covenant is to be implied
by any other information shown on the exhibit (i.e., any information as to
buildings, tenants or prospective tenants, etc. is subject to change at any
time). Should a party desire to measure the square footage of the Premises, it
must do so at the time of construction of any leasehold improvements prior to
the Commencement Date, or if no leasehold improvements are to be constructed,
then prior to the Commencement Date. If such measurement reflects a different
number, then, subject to the other party's verification of the number, the
parties agree to make adjustments based on such measurement. In the event of a
dispute regarding the method of calculation, the parties agree that the
standards for measurement set by the Building Owners and Managers Association
("BOMA") shall govern and control. If no measurement is made prior to the
Commencement Date, then the parties to this Lease will be
deemed to have accepted the number contained herein as the square footage of
rentable area of the Premises throughout the Lease Term, subject to adjustment
only for any subsequent additions or deletions of space.

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          9. "Commencement Date": If Tenant is to perform the construction of
leasehold improvements, then the Commencement Date shall be as set forth in
Section 9.a. In all other instances, the Commencement Date shall be as set forth
in Section 9.b.:

               (a) The earlier of (i)             days after the Premises are
                                      ------------
delivered to Tenant (as defined in Exhibit "E" attached to this lease), it being
                                   ----------
Landlord's estimate that the premises will be delivered to Tenant on or before
            , 19  ; or (ii)             , 19  .
------------    --          ------------    --

               (b) 2 days after the date the Work on the Premises is
substantially completed (as defined in Exhibit "E"), with Landlord using
reasonable business efforts to accommodate a date providing for a July 1, 2001
Commencement Date; provided, however, if substantial completion has not occurred
by September 1, 2001 (plus applicable Tenant Delays and delays resulting from
events beyond the reasonable control of Landlord, including events of force
majeure), Tenant shall have the right to terminate this Lease (acceptance of the
Premises and move-in by Tenant shall be deemed a waiver of Tenant's termination
right herein.

          10. "Lease Term": Commencing on the Commencement Date and continuing
for sixty (60) months after the Commencement Date; provided that if the
    ---------
Commencement Date is a date other than the first day of a calendar month, then
the Lease Term shall be extended so that it expires at the end of the calendar
month following the expiration of the months noted herein.

          11. "Base Rental": The total Base Rental for the Lease Term is
$1,682,184.00, payable as follows:
-------------
Month(s)        Amount per s.f.        Amount per year        Amount per month
--------        ---------------        ---------------        ----------------
 1-12               $15.15               $315,604.80             $26,300.40
13-24               $15.65               $326,020.80             $27,168.40
25-36               $16.15               $336,436.80             $28,036.40
37-48               $16.65               $346,852.80             $28,904.40
49-60               $17.15               $357,268.80             $29,772.40

          12. "Base Expense Stop": An amount equal to actual operating expenses
incurred during Calendar Year 2001 (See Exhibit "C").
                                        -----------

          13. "Tenant's Pro Rata Share": 30.61%, which is the percentage
                                         -----
obtained by dividing (a) the square footage of rentable area of the Premises
(20,832 sf) by (b) the square footage of rentable area of the Building (68,063
sf).

          14. "Prepaid Rental": $26,300.40, being an estimate of the Base
                                ----------
Rental, for the one (1) month(s) of the Lease Term, such prepaid rental being
                -------
due and payable on April 30, 2001.

          15. "Security Deposit": $28,036.40, such Security Deposit being due
                                  ----------
and payable upon execution of this Lease.

          16. "Permitted Use": General Office and electronic engineering testing
lab in connection with Tenant's business operations only and for no other use or
purpose. Tenant acknowledges that the above specification of a "Permitted Use"
means only that Landlord has no objection to the specified use and does not
include any representation or warranty by Landlord that such specified use
complies with applicable laws and/or requires special governmental permits.

          17. "Rent" or "rental": All amounts due from Tenant to Landlord under
Section 4.5 of the Lease, are deemed to be "rent" or "rental".

          18. "Brokers": Insignia/ESG, Inc. and Henry S. Miller Commercial
                         -------------------------------------------------

     B. The foregoing Basic Lease information is incorporated into and made a
part of the lease. If any conflict exists between any Basic Lease Information
and the Lease, then the Lease shall control.

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     IN WITNESS WHEREOF, Landlord and Tenant have entered into and executed this
Lease on the Date of the Lease written above.

LANDLORD:

                                  AETNA LIFE INSURANCE COMPANY,
                                  a Connecticut Corporation

                                  By:  UBS REALTY INVESTORS, L.L.C.,
                                       (f/k/a Allegis Realty Investors LLC),
                                       a Massachussets Limited Liability
                                       Company,
                                       Its Agent and Investment Advisor

                                  By:     /s/  Joseph E. Gaukler
                                          --------------------------------------
                                  Name:   Joseph E. Gaukler
                                  Title:  Director

                                  TENANT:

                                  STANFORD MICRODEVICES, INC.
                                  a Delaware Corporation

                                  By:   /s/  Thomas J. Scannell
                                        ----------------------------------------

                                  Printed Name:   Thomas J. Scannell
                                                  ------------------------------

                                  Title:    V.P. Finance & Administration
                                            ------------------------------------

<PAGE>

                                 LEASE AGREEMENT
                                    (Office)

     This LEASE AGREEMENT (the "Lease") is entered into as of the Date of the
Lease between AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD
MICRODEVICES, INC. ("Tenant").

                                   ARTICLE 1
                     BASIC DEFINITIONS AND LEASE PROVISIONS

     1.1 The definitions and basic provisions set forth in the Basic Definitions
and Lease Provisions executed by Landlord and Tenant, and attached hereto, are
incorporated herein by reference for all purposes.

                                    ARTICLE 2
                                   LEASE GRANT

     2.1 Subject to the terms and conditions of this Lease, Landlord leases to
Tenant, and Tenant leases from Landlord, the Premises for the Lease Term.

     2.2 In addition, Tenant is granted the non-exclusive right to use in common
with the other tenants and occupants the parking and other common areas of the
Building, as such may be modified from time to time by Landlord. The grant
herein provided shall not include any easement for light or air.

                                   ARTICLE 3
                      DELIVERY OF THE PREMISES; LEASE TERM

     3.1 The Lease Term shall be for the period of time specified in the Basic
Definitions and Lease Provisions, beginning on the Commencement Date, as such
date may be adjusted herein, and expiring on the Expiration Date. If this Lease
is executed before the Premises become vacant, or otherwise available, or if any
present tenant or occupant of the Premises holds over, and Landlord cannot
acquire possession of the Premises to deliver to Tenant, or if Landlord is
obligated to construct leasehold improvements in the Premises under the
provisions of Exhibit "E", but is unable to complete the leasehold improvements
              ----------
by the Commencement Date due to an unavoidable delay, as defined in Exhibit "E",
                                                                    ----------
then Landlord shall not be deemed to be in default hereunder, and Tenant agrees
to accept possession on such date as Landlord is able to deliver possession and
the Commencement Date shall be postponed accordingly; provided, however,
notwithstanding the foregoing, if Landlord is unable to provide a substantially
completed Premises by September 1, 2001 (plus any days attributable to Tenant
Delays and delays resulting from events beyond the reasonable control of
Landlord, including events of force majeure, Tenant shall have the right to
terminate this Lease by providing written notice thereof to Landlord at any time
thereafter and prior to substantial completion and upon such termination, all
prepaid amounts, if any, shall be returned promptly to Tenant. Thereafter, this
Lease shall continue for the full number of months set forth in the Lease Term.
Except for a postponement of the Commencement Date, this Lease shall not be
affected by any failure to deliver possession as a result of an event noted
above and Tenant shall have no claim for damages against Landlord as a result
thereof, all of which claims are hereby waived and released by Tenant.

     3.2 If Tenant takes possession of the Premises prior to the Commencement
Date for any reason, then such possession shall be subject to all the terms and
conditions of the Lease and Tenant shall pay Base Rental and other rent to
Landlord on a per diem basis for each day of occupancy prior to the Commencement
Date at the rate payable for the first month of the Lease Term. Tenant shall
not, however, be obligated to pay Base Rental and other rent to Landlord prior
to the Commencement Date if such early occupancy is only for the purpose of
equipping the Premises or constructing leasehold improvements if Tenant is
required to do so under the provisions of Exhibit "E".
                                          -----------

<PAGE>

     3.3 By taking possession of the Premises, it shall be conclusive evidence
that Tenant has inspected the Premises (and has sufficient knowledge and
expertise to make such inspection or has caused the Premises to be inspected on
its behalf by one or more persons with such knowledge and expertise), that
except for latent defects Tenant has accepted the Premises and Building as being
in good and satisfactory condition, suitable for the purposes herein intended
and that the same comply fully with Landlord's covenants and obligations under
the Lease with respect to the construction of leasehold improvements, except for
any punchlist items agreed to in writing by Landlord and Tenant, if Landlord
performed the construction of leasehold improvements. Tenant acknowledges and
agrees that Landlord has made no representation or warranty, express or implied,
as to the habitability, suitability, quality, condition or fitness of the
Premises or Building, and Tenant waives, to the extent permitted by applicable
law, any defects in the Premises or Building and any claims arising therefrom,
save and except those arising from any construction or repair obligations of
Landlord expressly provided for in the Lease.

     3.4 Following the Commencement Date, Landlord shall prepare a Commencement
Date Letter in the form attached hereto as Exhibit "F" setting forth the
                                           ----------
Commencement Date, Expiration Date, and confirming Tenant's acceptance of the
Premises and that Landlord has performed all of its obligations with respect to
delivery of the Premises, except as to any punchlist items previously specified
in writing and related to any construction performed by Landlord. Tenant shall
execute and deliver the Commencement Date Letter to Landlord within ten (10)
days after delivery by Landlord.

                                    ARTICLE 4
                                      RENT

     4.1 Tenant promises and agrees to pay Landlord at Landlord's address set
forth in the Lease, or such other address as Landlord may provide to Tenant, the
Base Rental and all other rent charged under this Lease without deduction or set
off, for each month of the entire Lease Term. The first monthly installment of
Base Rental shall be payable by Tenant to Landlord on April 30, 2001, and
thereafter, a monthly installment of Base Rental, as may be adjusted in
accordance with the provisions of the Lease, shall be due and payable, in
advance, without notice or demand on or before the first day of each succeeding
calendar month during the Lease Term. The Base Rental for any fractional month
at the beginning or end of the Lease Term shall be prorated.

     4.2 The Base Rental is determined, in part, on Landlord's estimate of Basic
Costs incurred by Landlord each year in connection with its ownership, operation
and management of the Building. In the event that the Basic Costs increase after
the Base Year, or are estimated by Landlord to increase, above the levels
charged to Landlord on the Date of the Lease, Landlord shall charge to Tenant
and Tenant agrees to pay as additional rental Tenant's Pro Rata Share of any
such increases in Basic Costs in accordance with the provisions of Exhibit "C".
                                                                   -----------

     4.3 The Security Deposit shall be paid to Landlord contemporaneously with
the execution of the Lease. Landlord shall hold the Security Deposit without
liability for interest and as security for the performance by Tenant of Tenant's
covenants and obligations under the Lease, it being expressly understood that
such deposit shall not be considered an advance payment of rental or a measure
of Landlord's damages in case of default by Tenant. Upon the occurrence of any
Event of Default by Tenant, Landlord may, from time to time, without prejudice
to any other remedy, use the Security Deposit to the extent necessary to make
good any arrearage of rent and any other damage, injury, expense or liability
caused to Landlord by such Event of Default. Following any such application of
the Security Deposit, Tenant shall pay to Landlord on demand the amount so
applied in order to restore the Security Deposit to its original amount. If
Tenant is not then in default of this Lease, any remaining balance of the
Security Deposit shall be returned by Landlord to Tenant upon termination of the
Lease. If Landlord transfers its interest in the Premises during the Lease Term,
Landlord may assign the Security Deposit to the transferee and thereafter shall
have no further liability for the return of the Security Deposit.

     4.4 Tenant hereby acknowledges that late payment to Landlord of rent due
hereunder will cause Landlord to incur costs and inconvenience not contemplated
by the Lease, the exact amount of which will be extremely difficult to
ascertain. If any rent due from Tenant is not received by Landlord or Landlord's
designated agent within ten (10) days after its due date, then Tenant shall pay
to Landlord as a late charge ten percent (10%) of such overdue amount (but not
more than $500.00 per occurrence), plus any attorney's fees incurred by Landlord
by reason of Tenant's failure to pay rent when due hereunder. The parties hereby
agree that such late charges represent a fair and

<PAGE>

reasonable estimate of the cost that Landlord will incur by reason of Tenant's
late payment. Landlord's acceptance of such late charges shall not constitute a
waiver of Tenant's default with respect to such overdue amount or estop Landlord
from exercising any of the other rights and remedies granted hereunder.

     4.5 All payments required of Tenant under the Lease shall bear interest,
beginning on the day after the due date until paid at the lesser of eighteen
percent (18%) per annum or the maximum lawful rate ("Default Interest"). In no
event, however, shall the charges permitted under this paragraph or elsewhere in
the Lease, to the extent the same are considered to be interest under applicable
law, exceed the maximum lawful rate of interest.

     4.6 No payment by Tenant or receipt by Landlord of a lesser amount than the
rent due under this lease shall be deemed to be other than on account of the
earliest rent due hereunder, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such rent or to pursue any other
remedy provided in this lease or at law or in equity.

                                    ARTICLE 5
                                    SERVICES

     5.1 Provided no Event of Default exists, Landlord shall use reasonable
business efforts to furnish to Tenant the following services: (i) water (hot and
cold) at those points of supply provided for general use of tenants of the
Building; (ii) heated and refrigerated air conditioning ("HVAC") as appropriate,
during Normal Business Hours (which shall be on generally accepted business days
from 12:00 a.m. to 11:59 p.m., Monday through Sunday), and at such temperatures
and in such amounts as are reasonably considered by Landlord to be standard;
(iii) janitorial service comparable to that provided in other office buildings
on business days (if Tenant's use or floor covering or other leasehold
improvements require special services, then Tenant shall, at Landlord's option,
either retain another cleaning contractor to perform such services [with
Landlord's reasonable approval] or pay the additional cost reasonably determined
by Landlord attributable to the special services, as additional rent) and such
window washing as may from time to time in Landlord's judgment be reasonably
required; (iv) other than as specifically limited in this Lease, access to the
Premises at all times if a multi-floor building, then elevators for ingress and
egress to the floor on which the Premises are located, in common with other
tenants, provided that Landlord may reasonably limit the number of elevators in
operation at times other than during customary business hours and on holidays;
(v) replacement of Building-standard light bulbs and fluorescent tubes; and (vi)
electrical current other than for lighting or equipment requiring more than 110
volts, or other than for lighting or equipment with electrical energy
consumption that exceeds normal office usage as reasonably determined by
Landlord. If Tenant desires any HVAC service after Normal Business Hours, such
service shall be supplied to Tenant upon the written request of Tenant delivered
to Landlord before 3:00 p.m. on the business day before the service is to be
provided, and Tenant shall pay to Landlord the cost of such service with the
next due installment of monthly rent after Landlord has delivered to Tenant an
invoice therefor.

     5.2 Tenant shall not install any electrical equipment requiring special
wiring or voltage in excess of 110 volts or otherwise exceeding Building
capacity unless approved in advance by Landlord. If approved, Landlord shall use
reasonable efforts to furnish electrical current for such lighting or equipment
through the then-existing feeders and risers serving the Building and the
Premises, and Tenant shall pay to Landlord the cost of such service with the
next due installment(s) of monthly rent after Landlord has delivered to Tenant
an invoice therefor. Landlord may determine the amount of such additional
consumption and potential consumption by either or both: (i) a survey of
Tenant's potential usage of electricity and that of standard or average tenant
usage of electricity in the Building performed by a reputable consultant
selected by Landlord and paid for by Tenant; or (ii) a separate meter in the
Premises installed, maintained, and read by Landlord, at Tenant's expense. In no
event will the use of electricity in the Premises exceed the capacity of
existing feeders and risers to or wiring in the Premises. If additional risers
or wiring are required to meet Tenant's excess electrical requirements,
Landlord, in it's reasonable judgment, may elect to permit same at the sole cost
and expense of Tenant, provided such additional feeders, risers or wirings shall
not cause permanent damage or injury to the Building or the Premises, cause or
create a dangerous or hazardous condition, entail excessive or unreasonable
alterations, repairs, or expenses, or interfere with or disturb other tenants of
the Building. If Tenant uses machines or equipment in the Premises which affect
the standard temperature otherwise maintained by the air conditioning system,
Landlord

<PAGE>

may install supplemental air conditioning units or other supplemental equipment
in the Premises, and the cost thereof, including the cost of installation,
operation, use, and maintenance, shall be paid by Tenant to Landlord with the
next due installment of rent after Landlord has delivered to Tenant an invoice
therefor.

     5.3 Landlord's obligation to furnish services under Section 5.1 shall be
subject to the rules and regulations of the supplier of such services and
governmental rules and regulations. Landlord may, upon not less than thirty (30)
days' prior written notice to Tenant, discontinue any such service to the
Premises, provided Landlord first arranges for a direct connection thereof
through the supplier of such service. Tenant shall, however, be responsible for
contracting with the supplier of such service and for paying all deposits for,
and costs relating to, such service.

     5.4 Failure to any extent to furnish any service described above or any
stoppage or interruption of those services resulting from any cause shall not
render Landlord liable in any respect for damages, nor be construed as an
eviction of Tenant or work an abatement of rent, nor relieve Tenant from
fulfillment of any covenant or agreement contained in the Lease; notwithstanding
the foregoing, if Tenant is unable to reasonably use the Premises for its
intended use for a period of 5 days and such interruption is the result of the
acts or omissions of Landlord, all Rent shall abate from and after such time
until Tenant can again utilize the space and, if the inability to use the
Premises continues for more than 30 days, Tenant shall have the right to
terminate the Lease and vacate the Premises.

                                    ARTICLE 6
                                      USE

     6.1 Tenant shall use the Premises only for the Permitted Use unless
Landlord consents to another use such consent to be in Landlord's sole and
absolute discretion. Tenant will not occupy or use the Premises, or permit any
portion of the Premises to be occupied or used, for any business or purpose
other than the Permitted Use or for any use or purpose which is unlawful or
deemed to be disreputable in any manner, or dangerous to life, limb or property,
or extrahazardous on account of fire, nor permit anything to be done which will
in any way increase the premiums for insurance coverage on the Building or
contents therein, or invalidate any insurance coverage on the Building. Tenant
will conduct its business and control its agents, employees and invitees in such
a manner as not to create any nuisance, nor interfere with, annoy or disturb
other tenants or Landlord, in the management of the Building. Tenant will not
commit waste and will maintain the Premises in a clean, healthful and safe
condition and will comply with all laws, ordinances, orders, rules and
regulations (state, federal, municipal, insurance and other agencies or bodies
having any jurisdiction thereof) with reference to the use, condition or
occupancy of the Premises itself, including, without limitation, all
environmental, health and safety laws and the Americans with Disabilities Act;
Landlord, however, shall be responsible for the Building's compliance with all
such matters (other than with respect to the Premises). Tenant will secure at
its own expense all permits and licenses required for the transaction of
business from the Premises in accordance with the Permitted Use. Tenant will
receive or take delivery of goods or merchandise and will remove all garbage and
trash only in the manner and areas reasonably prescribed by Landlord from time
to time. Tenant will not display or sell merchandise outside the exterior walls
and doorways of the Premises and may not use such areas for storage. Tenant will
not keep any substance or carry on or permit any operation which might emit
offensive odors or conditions into other parts of the Building or use any
apparatus which might make undue noise or vibrations in the Building. Tenant
further agrees not to install any exterior lighting, amplifiers or similar
devices or use in or about the Premises an advertising medium which may be heard
or seen outside the Premises, such as flashing lights, searchlights,
loudspeakers, phonographs or radio broadcasts.

     6.2 Tenant will, and will cause all its employees, agents, contractors and
invitees to, comply fully with all rules and regulations of the Building adopted
by Landlord from time to time. A copy of the rules and regulations for the
Building, existing on the Date of the Lease, are attached hereto as Exhibit "D".
                                                                    ----------
Landlord shall at all times have the right to change such rules and regulations
or to promulgate other rules and regulations in such reasonable manner as may be
deemed advisable for the safety, care, or cleanliness of the Building or
Premises, and for the preservation of good order therein, all of which rules and
regulations, changes and amendments will be forwarded to Tenant in writing and
shall be carried out and observed by Tenant, provided such rules and regulations
are not in conflict with the terms of this lease.

                                    ARTICLE 7
                                     SIGNAGE

     7.1 Tenant shall not install any signs, window or door lettering or
advertising media of any type in, on or about the Premises or any part thereof,
except for such tenant identification information as Landlord permits to be
included or shown on any directory maintained in the front lobby of the Building
and adjacent to the access door or doors to the Premises or such other items as
Landlord approves. Should Landlord agree in writing to any of the foregoing
items, Tenant agrees to maintain same in good condition and repair at all times.

                                   ARTICLE 8
                                  COMMON AREAS

     8.1 The use and occupation by Tenant of the Premises shall include the use
in common with others entitled thereto of the common areas. The term "common
areas" shall mean those portions of the Building intended for the common use of
all tenants including, among other facilities, the parking areas, service roads,
loading facilities, sidewalks, and such other facilities as may be designated by
Landlord from time to time as common areas, subject, however, to the terms and
conditions of this Lease and to the rules and regulations governing the use of
the common areas as prescribed from time to time by Landlord. Landlord shall
have the right from time to time to change the area, level, location and
arrangement of the common areas, but in so doing, shall not deny access to
Tenant, except on a temporary basis if necessary to perform any repairs or in an
emergency.

     8.2 All common areas and facilities, which Tenant may be permitted to use
are to be used under a revocable license (revocable only upon the termination of
this Lease), and if such areas are diminished, Landlord shall not be subject to
any liability nor shall Tenant be entitled to any compensation or diminution or
abatement of rent, nor shall the diminution of such areas be deemed constructive
or actual eviction unless Landlord fails to provide adequate parking in
accordance with governmental ordinances or to provide access to the Premises at
all times, other than on a temporary basis to make repairs or in the event of an
emergency.

     8.3 All common areas and facilities, which Tenant may be permitted to use
are to be used under a revocable license, and if such areas are diminished,
Landlord shall not be subject to any liability nor shall Tenant be entitled to
any compensation or diminution or abatement of rent, nor shall the diminution of
such areas be deemed constructive or actual eviction.

     8.4 In accordance with the provisions of Exhibit "H", Tenant shall have the
right to park in the parking areas in common with other tenants of the Building
upon such reasonable terms and conditions established by Landlord at any time
during the Lease Term, including the imposition of a reasonable parking charge
if required by governmental authority or as otherwise provided for in the Lease.
Tenant agrees not to overburden the parking areas and agrees to cooperate with
Landlord and the other tenants in use of the parking areas. Landlord reserves
the right in its absolute discretion to determine whether the parking areas are
becoming overburdened and to allocate and assign parking spaces among Tenant and
other tenants, and to reconfigure the parking areas and modify the existing
ingress to and egress from the parking areas as Landlord shall deem appropriate,
but in no event shall Landlord seek to reduce the number of parking spaces
available to Tenant below that required by governmental ordinance.

                                    ARTICLE 9
                                   ALTERATIONS

     9.1 Any leasehold improvements to the Premises contemplated by Landlord and
Tenant to be made prior to the commencement of the Lease Term shall be performed
in accordance with the provisions of Exhibit "E".
                                     -----------

     9.2 Other than any leasehold improvements to be made under Section 9.1,
Tenant shall not make, or allow to be made, any alterations, additions or
improvements to the Premises without the prior written approval of Landlord,
which approval shall not be unreasonably withheld as to interior, non-structural
alterations that do not adversely or materially impact the building systems. All
alterations, additions or improvements installed on the Premises by either
party, including, without limitation, fixtures, but excluding readily movable
trade fixtures, shall become the property of Landlord at the expiration of the
Lease Term, unless Landlord has notified Tenant at the time of installation that
it will require that Tenant remove such addition or improvement, and Landlord

<PAGE>

thereafter requests their removal, in which event, Tenant shall remove any such
alterations, additions or improvements and restore the Premises to its original
condition, reasonable wear and tear excepted at Tenant's expense.

     9.3 Prior to commencing any construction work on the Premises, Tenant must
furnish to Landlord adequate plans and specifications for the written approval
of Landlord. Once approved, Tenant shall not modify the plans and specifications
without, again, obtaining the written approval of Landlord. Landlord's approval
of the plans and specifications shall not be deemed to be a representation by
Landlord that such plans and specifications comply with applicable insurance
requirements, building codes, ordinances, laws or regulations.

     9.4 All construction work shall be performed only by Landlord or by
contractors and subcontractors approved in writing by Landlord, which approval
shall not be unreasonably withheld. If Landlord does not perform the
construction work, then Tenant shall cause all of its contractors and
subcontractors to procure and maintain insurance coverage against such risks and
in such amounts as Landlord may reasonably require and with such companies as
Landlord may reasonably approve, which approval shall not be unreasonably
withheld. Landlord may also require Tenant to obtain a waiver and release of
liens from all contractors and subcontractors prior to commencement of the
construction work. Tenant agrees to indemnify Landlord and hold Landlord
harmless against any loss, liability or damage resulting from any such
construction work performed by Tenant or on Tenant's behalf (other than excess
costs related to delays attributable to Landlord or Landlord's contractor or its
subcontractors.

     9.5 All construction work by Landlord or Tenant must be performed in a good
and workmanlike manner in accordance with the approved plans and specifications,
lien-free, and in compliance with all governmental laws and requirements.
Landlord and Tenant shall only utilize new materials of a quality that is equal
or better than the quality of those materials already on the Premises.

     9.6 Tenant shall not permit any mechanic's liens to be filed against the
Premises or the Building for any work performed, materials furnished, or
obligation incurred by or at the request of Tenant, including, but not limited
to, any work performed, materials furnished, or obligations incurred by or at
the request of Tenant for construction performed under the provisions of Exhibit
                                                                         -------
"E". If such a lien is filed, then Tenant shall, within thirty (30) after
---
Landlord has delivered notice of the filing to Tenant, either pay the amount of
the lien or diligently contest such lien, in which event, Tenant shall deliver
to Landlord a bond or other security reasonably satisfactory to Landlord. If
Tenant fails to timely take either such action, then Landlord may, at its
election, pay the lien claim without inquiry as to the validity thereof, and any
amounts so paid, plus Landlord's expenses and the administrative fee equal to
ten percent (10%) of the amount paid, shall be paid by Tenant to Landlord as
additional rental within ten (10) days after Landlord has delivered to Tenant an
invoice therefor. No work which Landlord permits Tenant to perform in the
Premises shall be deemed to be for the immediate use or benefit of Landlord so
that no mechanics or other lien shall be allowed against the estate of Landlord
by reason of its consent to such work.

                                   ARTICLE 10
                                    REPAIRS

     10.1 Landlord shall not be required to make any repairs or replacements of
any kind or character on the Premises during the Lease Term except repairs to
the exterior walls, corridors, windows, roof and other structural elements and
equipment of the Building (including, without limitation, all HVAC, electrical,
plumbing and mechanical systems), except when such repairs are caused by fire or
other casualty, in which event, the provisions of Article 13 shall govern and
control. Landlord shall maintain the Building (other than the Premises) and the
exterior common areas of the Building in good condition and repair, similar to
that of a comparable building, reasonable wear and tear excepted. Subject to the
provisions of any waiver contained in Section 12.2, Landlord shall not be
required to make any repairs occasioned by the acts or negligence of Tenant, its
agents, employees, contractors and invitees. Tenant shall give immediate written
notice to Landlord of the need for repairs or corrections and Landlord shall
have a reasonable time to make such repairs or corrections. Landlord's liability
hereunder shall be limited to the cost of such repairs or corrections. Tenant
waives the provisions of any law permitting Tenant the right to make repairs and
deduct the expense of such repairs from the rent due under the lease.

<PAGE>

     10.2 Landlord may, at its option and at the cost and expense of Tenant,
repair or replace any damage or injury done to the Building or any part thereof,
caused by Tenant, its agents, employees, contractors or invitees. Tenant shall
pay such costs, plus an administrative fee equal to ten percent (10%) of the
costs, to Landlord on the next date an installment of Base Rental is due
following notice from Landlord of the costs. Tenant further agrees throughout
the Lease Term to maintain and keep the interior of the Premises in good repair
and condition at Tenant's expense.

                                   ARTICLE 11
                            ASSIGNMENT AND SUBLETTING

     11.1 Tenant shall not, without the prior written consent of Landlord (which
Landlord may grant or deny in its reasonable discretion), (i) advertise that any
portion of the Premises is available for lease, (ii) assign, transfer, or
encumber this Lease or any estate or interest herein, whether directly or by
operation of law, except to an affiliate of Tenant or to an entity which is the
survivor of a merger or consolidation between it and Tenant or to an entity
which has acquired substantially all of Tenant's assets (collectively, a
"Related Transferee"), (iii) permit any other entity, other than a Related
Transferee, to become Tenant hereunder by merger, consolidation, or other
reorganization, (iv) sublet any portion of the Premises except to a Related
Transferee, (v) grant any license, concession, or other right of occupancy of
any portion of the Premises except to a Related Transferee or to a vendor,
business partner or other entity with which Tenant is transacting business
(collectively, a "Business Partner"), or (vi) permit the use of the Premises by
any parties other than Tenant, a Related Transferee or a Business Partner (any
of the events listed in Sections 11.1(ii) through 11.1(vi) being a "Transfer").
If Tenant requests Landlord's consent to a Transfer other than as allowed above,
then Tenant shall provide Landlord with a written description of all terms and
conditions of the proposed Transfer, copies of the proposed documentation, and
the following information about the proposed transferee: name and address;
reasonably satisfactory information about its business and business history; its
proposed use of the Premises; banking, financial, and other credit information;
and general references sufficient to enable Landlord to determine the proposed
transferee's creditworthiness and character. Tenant shall reimburse Landlord for
its reasonable attorneys' fees and other expenses incurred in connection with
considering any request for its consent to a Transfer. If Landlord consents to a
proposed Transfer, then the proposed transferee shall deliver to Landlord a
written agreement whereby it expressly assumes the obligations of Tenant
hereunder; however, any transferee of less than all of the space in the Premises
shall be liable only for the obligations under this Lease that are properly
allocable to the space subject to the Transfer, and only to the extent of the
rent it has agreed to pay Tenant therefor. Landlord's consent to a Transfer
shall not release Tenant from performing its obligations under this Lease, but
rather Tenant and its transferee shall be jointly and severally liable therefor.
Landlord's consent to any Transfer shall not waive Landlord's rights as to any
subsequent Transfers. If an Event of Default occurs while the Premises or any
part thereof are subject to a Transfer, then Landlord, in addition to its other
remedies, may collect directly from such transferee all rents becoming due to
Tenant and apply such rents against Base Rental and other amounts due under this
Lease. Tenant authorizes its transferees to make payments of rent directly to
Landlord upon receipt of notice from Landlord to do so. Regardless of the waiver
of consent of Landlord for a transfer to a Related Transferee or Business
Partner, Tenant shall provide written notice to Landlord of any such transfer of
interest thirty (30) days prior to its effective date, together with copies of
any documents relating to the transfer of possession. Any Related Transferee or
Business Partner shall agree in a writing furnished to Landlord to assume the
obligations of Tenant hereunder (except in the case of a sublease or agreement
for occupancy of a portion of the Premises, where the Related Transferee or
Business Partner shall only be obligated for payment of rent as set forth in
such sublease or agreement). Notwithstanding any transfer of interest to a
Related Transferee or Business Partner, Tenant shall remain fully obligated
under this Lease (except in the case of a merger whereby the surviving entity
assumes the obligations of Tenant).

     11.2 Except for a Transfer to a Related Transferee or Business Partner,
Landlord may, by written notice, within thirty (30) days after submission of
Tenant's written request for Landlord's consent to a Transfer, cancel this Lease
(or, as to a subletting or assignment, cancel as to the portion of the Premises
proposed to be sublet or assigned) as of the date the proposed Transfer was to
be effective. If Landlord cancels this Lease as to any portion of the Premises,
then this Lease shall cease for such portion of the Premises and Tenant shall
pay to Landlord all Base Rental and other amounts accrued through the
cancellation date relating to the portion of the Premises covered by the
proposed Transfer and all brokerage commissions paid or payable by Landlord in
connection with this Lease that are allocable to such portion of the Premises.
Thereafter, Landlord may lease such portion of the Premises to the prospective
transferee (or to any other person) without liability to

<PAGE>

Tenant. Notwithstanding the foregoing to the contrary, in the event Landlord
advises Tenant that it desires to cancel the Lease as to all, or the portion, of
the Premises proposed to be sublet or assign, then Tenant shall have five (5)
days to notify Landlord in writing ("Withdrawal Notice") that it has elected to
withdraw its proposed Transfer and this Lease shall continue in full force and
effect with respect to all, or the portion, of the Premises proposed to be
sublet or assigned. Notwithstanding any Withdrawal Notice, if Tenant
subsequently vacates the Premises, the provisions of Section 24.4 shall apply.

     11.3 Tenant shall pay to Landlord, immediately upon receipt thereof, all
compensation received by Tenant for a Transfer that exceeds the Base Rental and
other amounts due under the Lease (hereinafter, called "Excess Rent"), excluding
any amount due under this Section 11.3 and allocable to the portion of the
Premises covered thereby. Prior to paying to Landlord any Excess Rent, Tenant
may deduct any reasonable costs incurred by Tenant for brokerage commissions,
tenant improvement costs and attorney's fees in connection with the Transfer.
Tenant shall notify Landlord in writing of any such costs at the time of the
Transfer and furnish to Landlord copies invoices related thereto.

     11.4 Landlord may sell, transfer, assign or convey all or any part of its
interest in the Building and the Lease and, in the event Landlord assigns its
interest in this Lease, Landlord shall be released from any future obligation
and liabilities hereunder, and Tenant agrees to attorn and look solely to
Landlord's successor-in-interest for performance of such obligation.

                                   ARTICLE 12
                   INSURANCE; WAIVERS; SUBROGATION; INDEMNITY

     12.1 Tenant shall at its expense procure and maintain throughout the Lease
Term the following insurance policies: (i) commercial general liability
insurance in amounts of not less than $1,000,000 per occurrence, combined single
limit, or such other amounts as Landlord may from time to time reasonably
require, insuring Tenant, Landlord and Landlord's agents against all liability
for injury to or death of a person or persons or damage to property arising from
the use and occupancy of the Premises, (ii) contractual liability insurance
coverage sufficient to cover Tenant's indemnity obligations hereunder, (iii)
casualty insurance, including "all risks" and fire and extended coverage
insurance covering the full value of Tenant's leasehold improvements, personal
property and other property (including the property of others), located in or on
the Premises, (iv) workman's compensation insurance, containing a waiver of
subrogation endorsement reasonably acceptable to Landlord, (v) comprehensive
automobile liability insurance, insuring Tenant, Landlord and Landlord's agents,
and (vi) such other insurance and in such amounts as Landlord may reasonably
require from time to time. Tenant's insurance shall provide primary coverage to
Landlord when any policy issued to Landlord provides duplicate or similar
coverage, and in such circumstance, Landlord's policy will be excess over
Tenant's policy. Tenant shall furnish certificates of insurance and such other
evidence satisfactory to Landlord of the maintenance of all insurance coverages
required hereunder prior to the Commencement Date, and Tenant shall obtain a
written obligation on the part of each insurance company to notify Landlord at
least thirty (30) days before cancellation or a material change of any such
insurance. All general commercial liability insurance policies shall name
Landlord as additional insured, and otherwise shall be in form, and issued by
companies, reasonably satisfactory to Landlord and with deductibles reasonably
satisfactory to Landlord. Tenant's failure to maintain any insurance hereunder
shall constitute an Event of Default without any written notice required of
Landlord and, in such event, Landlord shall have the right, but not the
obligation, to purchase any insurance that has lapsed. Should Landlord elect to
purchase insurance on behalf of Tenant, then Tenant shall reimburse to Landlord
the cost of such insurance and an administrative fee of ten percent (10%) of the
amount of the premium within ten (10) days of the date of the notice from
Landlord seeking the reimbursement. The policy limits of any insurance required
to be carried by Tenant shall not limit the liability of Tenant under this
Lease.

     Landlord shall procure and maintain throughout the Lease Term the following
insurance policies: (i) commercial general liability insurance in amounts of not
less than $1,000,000 per occurrence, combined single limit, or such other higher
amounts as are deemed reasonable, in Landlord's sole discretion, (ii)
contractual liability insurance coverage sufficient to cover any indemnity
obligations of Landlord hereunder, (iii) casualty insurance, including "all
risks" and fire and extended coverage insurance covering the full replacement
value of the Building, excluding the leasehold improvements and personal
property of tenants (including Tenant's) and their employees, agents,
contractors and invitees, and (iv) such other insurance coverages and amounts as
Landlord

<PAGE>

may elect to carry from time to time. The costs of insurance shall be reimbursed
to Landlord in accordance with the provisions of Exhibit "C", hereunder.

     12.2 Landlord shall not be liable to Tenant or those claiming by, through,
or under Tenant for any injury to or death of any person or persons or the
damage to or theft, destruction, loss, or loss of use of any property or
inconvenience (a "Loss") caused by casualty, theft, fire, third parties, or any
other matter (including Losses arising through repair or alteration of any part
of the Building, or failure to make repairs, or from any other cause),
regardless of whether the negligence of any party caused such Loss in whole or
in part. Landlord and Tenant waive any claim each might have against the other
for any damage to or theft, destruction, loss, or loss of use of any property,
to the extent the same is covered under any insurance policy that covers the
Building, the Premises, Landlord's or Tenant's fixtures, personal property,
leasehold improvements, or business, or [ ] is required to be insured against
under the terms of the Lease, regardless that the negligence or fault of the
other party caused such loss; however, the waiver shall not apply to the portion
of any damage which is not reimbursed by the damaged party's insurance by reason
of the deductible in such party's insurance coverage, but not in excess of
$10,000.00 (even if the deductible is for a greater amount). Each party shall
cause its insurance carrier to endorse all applicable policies waiving the
carrier's rights of recovery under subrogation or otherwise against the other
party.

     12.3 Subject to the provisions of Section 12.2, Tenant shall defend,
indemnify, and hold harmless Landlord and its employees and agents from and
against all claims, demands, liabilities, causes of action, suits, judgments,
and expenses (including attorneys' fees) for any Loss arising from an occurrence
on the Premises or caused by or resulting from the condition of the Premises
which is the responsibility of Tenant, or from the acts or omissions of Tenant
or Tenant's employees, agents, contractors or invitees, or from Tenant's failure
to perform any of its obligations under this Lease (other than a Loss arising
from the gross negligence or willful misconduct of Landlord or its employees or
agents), even though caused or alleged to be caused by the joint, comparative,
or concurrent negligence or fault of Landlord or its employees and agents, and
even though any such claim, cause of action, or suit is based upon or alleged to
be based upon the strict liability of Landlord or its employees and agents,
provided that this indemnity shall not apply to the gross negligence or willful
misconduct of Landlord or its employees or agents. This indemnity provision is
intended to indemnify Landlord and its employees and agents against the
consequences of their own negligence or fault (but not the gross negligence or
willful misconduct of Landlord or its employees or agents) as provided above
when Landlord or its employees and agents are jointly, comparatively, or
concurrently negligent with Tenant.

     12.4 Tenant shall not use, and shall not permit any subtenant, licensee,
concessionaire, employee, agent or invitee (hereinafter collectively "Tenant's
Representatives") to use, any portion of the Premises or Building, for the
placement, storage, manufacture, disposal or handling of any hazardous materials
(hereinafter defined) unless Tenant complies with all applicable environmental
laws (federal, state or local), including, but not limited to those for
obtaining proper permits. In the event Tenant or Tenant's Representatives desire
to use or place hazardous materials on the Premises (other than those normally
used in General Offices uses, such as cleaning agents or toner for copier
machines) it shall notify Landlord in writing thirty (30) days prior to such
proposed use or placement, and provide the names of the hazardous materials,
procedures to insure compliance with the applicable environmental law and such
other information as Landlord may reasonably request.

     In the event Tenant or Tenant's Representatives places, releases or
discovers any hazardous materials on the Premises or Building in violation of
applicable environmental laws, Tenant shall immediately notify Landlord of such
fact in writing within twenty-four (24) hours of the placement, release or
discovery. Tenant shall not be responsible nor liable for the removal of any
such materials which were not placed, manufactured, deposited, spilled, stored,
disposed of or leaked by Tenant or Tenant's Representatives. Tenant shall not
attempt any removal, abatement or remediation of those hazardous materials on
the Premises in violation of applicable environmental laws, without obtaining
the additional written consent of Landlord, which consent may be specifically
conditioned on Landlord's right to approve the scope, timing and techniques of
any such work and the appointment of all contractors, engineers, inspectors and
consultants in connection with any such work. Tenant shall be responsible for
the cost of any removal, abatement and remediation work of any hazardous
materials which it or Tenant's Representatives have placed, stored,
manufactured, disposed of or handled by Tenant or Tenant's Representatives on
the Premises or any other portion of the Building and for the cost of any
removal, abatement or remediation of any hazardous materials which might be
disturbed or released as a result of any remodeling or construction in the
Premises by Tenant or Tenant's Representatives. Such costs shall include,
without limitation, the

<PAGE>

cost of any supervision by Landlord, its employees or agents, in connection with
such work. Tenant shall comply with all environmental laws in connection with
any such removal.

     Tenant shall indemnify Landlord, its shareholders, directors, officers,
employees and agents and hold them harmless, from and against any loss, damage
(including, without limitation, a loss in value of the Building or damages due
to restrictions on marketing contaminated space), cost, liability or expense
(including reasonable attorneys' fees and expenses and court costs) arising out
of the placement, storage, use, manufacture, disposal, handling, removal,
abatement or remediation of any hazardous materials by Tenant or Tenant's
Representatives on the Premises or Building, or any removal, abatement or
remediation of any hazardous materials required hereunder to be performed or
paid for by Tenant, with respect to any portion of the Premises or the Building,
or arising out of any breach by Tenant of its obligations under this paragraph.

     The term "hazardous materials" as used herein shall mean (i) any "hazardous
waste" as defined by the Resource Conservation and Recovery Act of 1976 (42
U.S.C. Section 6901 et seq.), as amended from time to time, and regulations
promulgated thereunder; (ii) any "hazardous substance" as defined by the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. Section 9601, et seq.), as amended from time to time, and regulations
promulgated thereunder; (iii) asbestos or polychlorinated biphenyls; (iv) any
substance the presence of which on the Building or on the Premises is prohibited
or regulated by any federal, state or local law, regulation, code or rule; and
(v) any other Substance which requires special handling or notification of any
federal, state or local governmental entity in its collection, storage,
treatment, or disposal.

     12.5 The indemnification provisions contained in Article 12 shall survive
the termination of this Lease.

                                   ARTICLE 13
                                FIRE AND CASUALTY

     13.1 If the Premises or Building or any part thereof shall be materially
damaged by fire or other casualty, Tenant shall give prompt written notice
thereof to Landlord and Landlord or Tenant (where the damage or destruction
prevents Tenant from carrying on its normal business operations and such damage
is estimated to require more than 120 days from the date of the casualty to
repair) may, at its option, terminate this Lease by notifying the other party in
writing of such termination within sixty (60) days after the date of such
damage, in which event the rent hereunder shall be abated as of the date of such
damage. If this Lease is not so terminated, Landlord shall as soon as reasonably
practical after the date of such damage commence to repair and restore the
Building with reasonable diligence (except that Landlord shall not be
responsible for delays outside its control) to substantially the same condition
in which it was immediately prior to the happening of the casualty, except that
Landlord shall not be required to rebuild, repair or replace any part of
Tenant's leasehold improvements (except to the extent originally paid by
Landlord), furniture, furnishings or fixtures and equipment removable by Tenant
under the provisions of this Lease. Tenant agrees to rebuild and restore any
leasehold improvements to the extent not required of Landlord. Tenant shall
commence any such work upon written notice from Landlord. In the event Landlord
is unable to complete the Building and improvements required of Landlord as
noted in this Section 13.1 within 120 days following the date of the casualty,
as such period may be extended by reason of Tenant Delays or delays beyond the
reasonable control of Landlord, then Tenant may elect to terminate this Lease
upon written notice to Landlord at any time within thirty (30) days following
the expiration of the 120 day period. If Tenant fails to notify Landlord that it
is electing to terminate within the 30-days, it shall be deemed to have elected
to waive the right to terminate due to Landlord's failure to complete the
improvements timely and this Lease shall continue in full force and effect as
noted herein above. Any insurance which may be carried by Landlord or Tenant
against loss or damage to the Building or to the Premises shall be for the sole
benefit of the party carrying such insurance and under its sole control.

     13.2 Landlord shall not be liable for any inconvenience or annoyance to
Tenant or injury to the business of Tenant resulting in any way from such damage
or the repair thereof. Subject to the provisions of the remainder of this
paragraph, Landlord shall allow Tenant a fair diminution of rent during the time
and to the extent the Premises are unfit for occupancy. The diminution of rent
shall expire on the date Landlord delivers the Premises to Tenant ready for
occupancy (if Landlord originally provided the leasehold improvements) or (ii)
on the date following all equivalent time allowed Tenant for the construction of
leasehold improvements after Landlord delivered the

<PAGE>

Premises to Tenant ready for Tenant to rebuild its leasehold improvements, as
contemplated in Exhibit "E" (if Tenant originally provided the leasehold
                -----------
improvements). If the Premises or any other portion of the Building is damaged
by fire or other casualty resulting from the fault or negligence of Tenant or
any of Tenant's agents, employees or invitees, [ ] Tenant shall be liable to
Landlord for the cost and expense of the repair and restoration of the Building
caused thereby to the extent such costs and expenses are not covered by
insurance carried, or required to be carried, by Landlord under the he
provisions of this Lease, but Tenant shall not be liable for any amount in
excess of $10,000.00 to the extent due solely by reason of Landlord's carrying a
larger deductible [ ].

                                   ARTICLE 14
                                  CONDEMNATION

     14.1 If all of the Building should be taken for any public or quasi-public
use under any governmental law, ordinance or regulation or by right of eminent
domain or by private purchase in lieu thereof, this Lease shall terminate and
the rent shall be abated during the unexpired portion of the Lease Term,
effective on the date physical possession is taken by the condemning authority,
and Tenant shall have no claim against Landlord for the value of any unexpired
Lease Term.

     14.2 In the event a portion but not all of the Building shall be taken for
any public or quasi-public use under any governmental law, ordinance or
regulation, or by right of eminent domain, by private sale in lieu thereof and
the partial taking or condemnation shall render the Building unsuitable for
continued operation, then Landlord or Tenant shall have the option, in its sole
discretion, of terminating this Lease or if this Lease is not terminated, at
Landlord's sole risk and expense, Landlord shall restore and reconstruct the
Building to the extent necessary to make same reasonably tenantable. Should this
Lease not be terminated, then Landlord shall restore the Premises and the Lease
shall continue in full force and effect with the rent payable during the
unexpired portion of this Lease being adjusted to such an extent as may be fair
and reasonable under the circumstances, and Tenant shall have no claim against
Landlord for the value of any interrupted portion of this Lease.

     14.3 Landlord shall be entitled to receive all of the compensation awarded
upon a condemnation (or the proceeds of a private sale in lieu thereof) of all
or any part of the Building or the Premises, including any award for the value
of any unexpired Lease Term, and Tenant hereby assigns to Landlord and expressly
waives all claim to any such compensation. However, Tenant reserves for itself
any separate award made for relocation cost or loss of any of Tenant's trade
fixtures, provided no such award shall diminish the amount that would otherwise
be awarded to Landlord.

                                   ARTICLE 15
                      SUBORDINATION, ATTORNMENT, ESTOPPEL

     15.1 This Lease shall be subordinate to any deed of trust, mortgage, or
other security instrument (a "Mortgage"), or any ground lease, master lease, or
primary lease (a "Primary Lease"), that [ ] hereafter covers all or any part of
the Premises (the mortgage under any Mortgage or the lessor under any Primary
Lease is referred to herein as "Landlord's Mortgagee"), including any
modifications, renewals or extensions of such Mortgage or Primary Lease.
Notwithstanding the foregoing, Tenant agrees that any such Landlord's Mortgagee
shall have the right at any time to subordinate such Mortgage or Primary Lease
to this Lease on such terms and subject to such conditions as Landlord's
Mortgagee may deem appropriate in its discretion. Tenant agrees upon demand to
execute such further instruments subordinating this Lease or attorning to the
Landlord's Mortgagee as Landlord my request. In the event that Tenant should
fail to execute any subordination or other agreement required by this paragraph,
promptly as requested, Tenant hereby irrevocably constitutes Landlord as its
attorney in fact to execute such instrument in Tenant's name, place and stead,
it being agreed that such power is one coupled with an interest. As a condition
precedent to executing any subordination agreement, Landlord's Mortgagee shall
agree in writing not to disturb this Lease as long as Tenant has not committed
an Event of Default (i.e., beyond applicable notice and cure periods).

     Landlord represents that there is no Mortgage on the Project on the date of
this Lease.

     15.2 Tenant shall attorn to any party succeeding to Landlord's interest in
the Premises, whether by purchase, foreclosure, deed in lieu of foreclosure,
power of sale, termination of lease, or otherwise, upon such party's request,
and shall execute such agreements confirming such attornment as such party may
reasonably request.

<PAGE>

     15.3 Tenant shall not seek to enforce any remedy it may have for any
default on the part of the Landlord without first giving written notice by
certified mail, return receipt requested, specifying the default in reasonable
detail, to any Landlord's Mortgagee whose address has been given in writing to
Tenant, and affording such Landlord's Mortgagee a reasonable opportunity to
perform Landlord's obligations hereunder.

     15.4 Tenant agrees that, within ten (10) days of written request by
Landlord, it will execute and deliver to such persons as Landlord shall request
a statement in recordable form certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same is in
full force and effect as so modified), stating the dates to which rent and other
charges payable under this Lease have been paid, stating that Landlord is not in
default hereunder (or if Tenant alleges a default stating the nature of such
alleged default) and further stating such other matters as Landlord shall
reasonably require.

                                   ARTICLE 16
                               EVENTS OF DEFAULT

     16.1 The following shall be deemed to be Events of Default by Tenant under
this Lease:

          (a) Tenant shall fail to pay any installment of Base Rental or any
other rent or monetary sum when due under the provisions of the Lease and such
failure continues for a period of ten (10) days after written notice; provided,
however, that Landlord shall only be required to give written notice on the
first two (2) occasions in a twelve (12) month period that same is past due and,
thereafter, if Tenant on a subsequent occasion fails to pay when due, it shall
be an Event of Default without any prior notice required of Landlord. It is the
intent of the parties that written notice shall not be required for a failure to
pay to constitute an Event of Default except as expressly provided herein.

          (b) Tenant shall fail to comply with any term, provision or covenant
of this lease, other than the payment of a monetary sum, and such failure shall
not be cured twenty (20) days after written notice thereof to Tenant; provided,
however, if such default is typically one that cannot reasonably be cured within
such time period, so long as Tenant is diligently working toward the cure
thereof, Tenant shall have such additional time as is reasonably necessary to
effect such cure, not to exceed sixty (60) days.

          (c) Tenant or any guarantor of Tenant's obligations under this Lease
shall become insolvent, or shall make a transfer in fraud of creditors, or shall
make an assignment for the benefit of creditors.

          (d) Tenant or any guarantor of Tenant's obligations under this Lease
shall file a petition under any state or federal bankruptcy or other insolvency
statutes or Tenant or any guarantor of Tenant's obligations under this Lease
shall be adjudged bankrupt or insolvent in proceeding filed against Tenant or
guarantor thereunder and such adjudication shall not be vacated or set aside
within thirty (30) days.

          (e) A receiver or trustee shall be appointed for all or substantially
all of the assets of Tenant or any guarantor of the obligations of Tenant under
this Lease and such receivership shall not be terminated or stayed within thirty
(30) days.

          (f) Tenant shall do or permit to be done anything which creates a lien
upon the Premises or upon all or any part of the Building which is not removed
within thirty (30) days after receipt of written notice thereof from Landlord.

          (g) Tenant shall desert or vacate any substantial portion of the
premises, except in accordance with the provisions of Section 24.4.

                                   ARTICLE 17
                                    REMEDIES

     17.1 Upon the occurrence of an Event of Default, Landlord shall have the
option to pursue any one or more of the following remedies without any notice or
demand whatsoever, except if required by applicable law:

<PAGE>

          (a) Terminate this Lease in which event Tenant shall immediately
surrender the Premises to Landlord, and if Tenant fails to do so, Landlord may,
without prejudice to any other remedy which it may have for possession or
damages, enter upon and take possession and expel or remove Tenant and any other
person who may be occupying said Premises or any part thereof by any lawful
means without being liable for prosecution or any claim for damages therefor,
and Tenant agrees to pay to Landlord, as hereinafter set forth in Section 17.2,
on demand the amount of all loss and damage which Landlord may suffer by reason
of such termination, whether through inability to relet the Premises on
satisfactory terms or otherwise.

          (b) Terminate Tenant's right to possession of the Premises, but not
the Lease, in which event Tenant shall immediately surrender the Premises to
Landlord, and if Tenant fails to do so, Landlord may, without prejudice to any
other remedy which it may have for possession or damages, enter upon and take
possession of the Premises and expel or remove Tenant and any other person who
may be occupying the Premises or any part thereof by any lawful means without
being liable for prosecution or any claim for damages therefor and Tenant agrees
to pay to Landlord, as hereinafter set forth in Section 17.2, on demand the
amount of all loss and damage which Landlord may suffer by reason of such
termination, whether through inability to relet the Premises on satisfactory
terms or otherwise.

          (c) Enter upon the Premises, by any lawful means without terminating
the Lease or Tenant's right to possession and without being liable for
prosecution or any claim for damages therefor, and do whatever Tenant is
obligated to do under the provisions of this Lease, and Tenant agrees to
reimburse Landlord on demand for any expenses which Landlord may incur in thus
effecting compliance with Tenant's obligations under this Lease, plus an
administrative fee equal to ten percent (10%) of any expenses incurred by
Landlord, and Tenant further agrees that Landlord shall not be liable for any
damages resulting to the Tenant for such action.

          (d) Not to re-enter the Premises or terminate the Lease, but to allow
Tenant to remain in possession of the Premises, and bring suit against Tenant to
collect the monthly rents and other charges provided in this Lease as they
accrue. Landlord shall have a right to allow such deficiencies of monthly rents
and other charges provided in this Lease to accumulate and to bring an action on
several or all of the accrued deficiencies at one time. Any such suit shall not
prejudice in any way the right of Landlord to bring a similar action for any
subsequent deficiency or deficiencies.

     Tenant agrees that any re-entry into the Premises under the provisions of
subpart (b) of this Section shall not be deemed a termination of the Lease or an
acceptance of the surrender thereof, unless Landlord shall have notified Tenant
in writing that it has so elected to terminate the Lease. Tenant also agrees
that any notice pursuant to an action for forcible detainer or eviction shall
not be deemed to be a termination of the Lease unless Landlord shall have also
notified Tenant in writing that it has so elected to terminate the Lease. Any
election of the remedy provided in subpart (b) of this Section shall not
preclude the subsequent election by Landlord of the remedy under subpart (a) of
this Section.

     Should Landlord elect to re-enter the Premises under the provisions of
subparts (a) or (b), Landlord shall make reasonable efforts to relet the
Premises. Nothing herein, however, shall prohibit Landlord from leasing any
other vacant space in the Building before leasing the Premises, or from using
its business judgment in respect to the releasing of the Premises. In this
regard, Landlord shall not be required to relet the Premises in part, rather
than a whole, or for a rental rate less than the rental rate then being offered
to prospective tenants for other space in the Building.

     17.2 Should Landlord at any time terminate this Lease or Tenant's right to
possession for an Event of Default, Landlord shall recover from Tenant, and
Tenant shall be liable and pay to Landlord, as damages a sum equal to the
following:

     (i)   the unpaid monthly rents and other charges provided in this Lease and
           which accrued prior to the date of termination;

     (ii)  an amount equal to the following:

               (A) Until Landlord is able, through reasonable efforts, to relet
           the Premises under terms satisfactory to Landlord, in its sole
           discretion, Tenant shall pay to Landlord on or before the first day
           of each calendar month, the monthly rentals and other charges
           provided in this Lease. If and after the Premises have been relet by

<PAGE>

           Landlord, Tenant shall pay to Landlord on the twentieth (20th) day of
           each calendar month the difference between the monthly rentals and
           other charges provided in this Lease for such calendar month and that
           actually collected by Landlord for such month. If it is necessary for
           Landlord to bring suit in order to collect any deficiency, Landlord
           shall have a right to allow such deficiencies to accumulate and to
           bring an action on several or all of the accrued deficiencies at one
           time. Any such suit shall not prejudice in any way the right of
           Landlord to bring a similar action for any subsequent deficiency or
           deficiencies. Any amount collected by Landlord from subsequent
           tenants for any calendar month in excess of the monthly rentals and
           other charges provided in this Lease, shall be credited to Tenant,
           first, in reduction of Tenant's liability for any calendar month for
           which the amount collected by Landlord will be less than the monthly
           rentals and other charges provided in this Lease and, then, against
           Tenant's liability for any other damages of Landlord hereunder, and
           Tenant shall have no right to any excess other than the
           above-described credits; and

               (B) When Landlord desires, Landlord may demand a final
           settlement, in which event, Landlord shall have a right to, and
           Tenant hereby agrees to pay, the difference between (1) the total
           monthly rents and other charges provided in this Lease for the
           remainder of the Lease Term, and (2) the fair rental value of the
           Premises for such period (determined as of the time of the final
           settlement) such difference discounted to present value using the
           prime rate published in the Wall Street Journal for the region in
           which the Building is located on the date of the final settlement;
           and

     (iii) all other damages which Landlord may demonstrate it incurred,
           including, without limitation, any and all costs of retaking the
           Premises, costs of maintaining and preserving the Premises after such
           retaking, and costs of reletting the Premises, such as costs to
           repair or remodel the Premises and to pay market based leasing
           commissions.

     If Landlord elects to exercise the remedy prescribed in Section 17.2(ii)(A)
above, this election shall not prejudice Landlord's right at any time thereafter
to cancel said election in favor of the remedy prescribed in Section 17.2(ii)(B)
above.

     As used in Article 17, the phrase "the monthly rentals and other charges
provided in this Lease" shall mean the monthly amount of Base Rental plus the
monthly amount of Tenant's Pro Rata Share of Excess Basic Costs. If Landlord
demands a final settlement, then Landlord shall have the right to estimate
Tenant's Pro Rata share of Excess Basic Costs for the remainder of the Lease
Term.

     Any past due monthly rents and other charges provided in this Lease shall
bear interest at the Default Interest rate, defined elsewhere in the Lease.

     17.3  Upon the occurrence of an Event of Default, Landlord may alter all
locks and security devices at the Premises and will not be obligated to return
the key to Tenant if Landlord has elected either to terminate this Lease under
Section 17.1(a) or permanently repossess the Premises under Section 17.1(b). If
Landlord alters all locks and security devices at the Premises because of an
Event of Default without electing either to terminate this Lease or permanently
repossess the Premises, then Landlord shall return the key to Tenant only during
the regular business hours of Landlord's property manager and only in the event
Tenant has paid the rent or otherwise performed the obligations necessary to
cure the Event of Default and, further, Tenant provides reasonable assurances to
Landlord evidencing Tenant's ability to perform its remaining obligations under
this Lease. In the event Landlord alters the locks and the keys are not returned
to Tenant, then, upon the prior written request of Tenant accompanied by such
releases and waivers as Landlord may require, Landlord, at its option, may (i)
escort Tenant to the Premises to retrieve personal belongings and other property
not subject to Landlord's lien and security interest, or (ii) obtain from Tenant
a list of such personal belongings and personal property and advise Tenant of a
time and place where such items will be made available to Tenant. If Landlord
elects the lallcr option, then Tenant shall reimburse to Landlord the cost of
moving and/or storing the items prior to Landlord's making same available to
Tenant.

     17.4 Should Landlord re-enter and take possession of the Premises, Landlord
may, with respect to any and all furniture, fixtures, equipment and other
personal property remaining on the Premises, exercise one or more of the
following rights: (i) sell the personal property pursuant to any

<PAGE>

lien retained by Landlord; (ii) remove the personal property from the Premises
(without the necessity of obtaining a distress warrant, writ of sequestration or
other legal process) and place same in storage and, in such event, Tenant shall
be liable to Landlord for costs incurred by Landlord in connection with such
removal and storage and shall indemnify and hold Landlord harmless from all
loss, damage, cost, expense and liability in connection with such removal and
storage; or (iii) dispose of any of the personal property. Should Landlord elect
to dispose of any of the personal property, whether or not such personal
property was first placed in storage, Landlord shall give Tenant written notice
at Tenant's last known address advising Tenant that Landlord will dispose of the
personal property unless Tenant retrieves same within five (5) days from the
date of the notice and pays to Landlord any costs incurred for storage and/or
removal. Landlord shall also have the right to relinquish possession of all or
any portion of such personal property to any person claiming to be entitled to
possession thereof who presents to Landlord a copy of any instrument represented
to Landlord by such person to grant such person the right to take possession of
such personal property, without the necessity on the part of Landlord to inquire
into the authenticity of the copy of the instrument or of Tenant's or Tenant's
predecessor's signature thereon and without the necessity of Landlord's making
any nature of investigation or inquiry as to the validity of the factual or
legal basis upon which such person purports to act; and Tenant agrees to
indemnify and hold Landlord harmless from all cost, expense, loss, damage and
liability incident to Landlord's relinquishment of possession of all or any
portion of such furniture, fixtures, equipment of other personal property to the
person. The rights of Landlord herein stated shall be in addition to any and all
other rights which Landlord has or may hereafter have a law or in equity, and
Tenant Stipulates and agrees that the rights herein granted Landlord are
commercially reasonable. Tenant knowingly and irrevocably waives any claims it
may have against Landlord arising from Landlord's removal and storage of
Tenant's personal property in accordance with the provisions of this paragraph.

     17.5 No re-entry or taking possession of the Premises by Landlord shall be
construed as an election on its part to terminate this Lease, unless a written
notice of such intention shall be given to Tenant. Notwithstanding any such
re-entry or taking possession of the Premises, Landlord may at any time
thereafter elect to terminate this Lease by reason of the Event of Default.
Pursuit of any office remedies set forth in Article 17 shall not preclude
pursuit of any of the other remedies in Article 17 or any others provided in
this Lease or any other remedies provided by law or in equity. The specific
remedies to which Landlord may resort under this Lease are cumulative and are
not intended to be exclusive of any other remedies to which Landlord may be
lawfully entitled in case of a breach or threatened breach of the Lease. In
addition to any other remedies provided in the Lease, Landlord shall be entitled
to seek injunctive relief to restrain any violation or threatened violation of
the covenants, conditions or provisions of this lease or to compel specific
performance. The pursuit of any remedy provided in this Lease shall not
constitute a forfeiture or waiver of any rent due to Landlord under this Lease
or of any damages accruing to Landlord by reason of the violation of any of the
terms, provisions and covenants contained in this Lease. Landlord's acceptance
of rent following an Event of Default hereunder shall not be construed as
Landlord's waiver of such Event of Default unless such waiver is expressly
stated in writing signed by Landlord. No waiver by Landlord of any violation or
breach of the terms, provisions, and covenants of the Lease shall be deemed or
construed to constitute a waiver of any other violation or breach of any of the
terms, provisions, and covenants of the Lease. No consent by Landlord to any act
of Tenant under this Lease shall be deemed to waive or render unnecessary
consent to any subsequent or similar act. Forbearance by Landlord to enforce one
or more of the remedies herein provided upon an Event of Default shall not be
deemed or construed to constitute a waiver of any other violation or Event of
Default.

     17.6 Landlord and Tenant hereby irrevocably waive, to the extent permitted
by law, any right to trial by jury in any lawsuit, action, proceeding, or
counterclaim brought by either party hereto against the other on any matter
arising out of or connected with this Lease, the acts or omissions of Landlord
or Tenant in connection with this Lease, or Tenant's occupancy and use of the
Premises and the Building.

     17.7 Except as provided for herein, Tenant shall not for any reason
withhold or reduce Tenant's required payments of rent and other charges provided
in this Lease, it being agreed that the obligations of Landlord under this Lease
are independent of Tenant's obligations except as may be otherwise expressly
provided. The immediately preceding sentence shall not be deemed to deny Tenant
the pursuit of all rights granted it under this Lease or at law; however, at the
direction of Landlord, Tenant's claims in this regard shall be litigated in
proceedings different from any litigation involving rent claims or other claims
by Landlord against Tenant (i.e., each party may proceed to a

<PAGE>

separate judgment without consideration, counterclaim or offset as to the claims
asserted by the other party).

     17.8 In the event of any default described in subsection (d) of Section
16.1 of this Lease, any assumption and assignment must conform with the
requirements of the Bankruptcy Code which provides, in part, that the Landlord
must be provided with adequate assurance of the following: (i) that the proposed
assignee has sources to pay monthly rents and any other charges due under this
Lease; (ii) that the financial condition and operating performance of any
proposed assignee and its guarantors, if any, shall be similar to the financial
condition and operating performance of Tenant and its guarantors, if any, as of
the date of execution of this Lease; (iii) that any percentage rent due under
this Lease will not decline substantially; (iv) that any assumption or
assignment is subject to all of the provisions of this Lease (including, but not
limited to, restrictions as to use) and will not breach any such provision
contained in any other Lease, financing agreement or other agreement relating to
the Building; and (v) that any assumption or assignment will not disrupt any
tenant mix or balance in the Building.

          (a) In order to provide Landlord with the assurance contemplated by
the Bankruptcy Code, Tenant must fulfill the following obligations, in addition
to any other reasonable obligations that Landlord may require, before any
assumption of this Lease is effective: (i) all defaults under subsection (a) of
Section 16.1 of this Lease must be cured within ten (10) days after the date of
assumption; (ii) all other defaults under Section 16.1 of this Lease other than
under subsection (d) of Section 16.1 must be cured within ten (10) days after
the date of assumption; (iii) all actual monetary losses incurred by Landlord
(including, but not limited to, reasonable attorneys' fees) must be paid to
Landlord within ten (10) days after the date of assumption; and (iv) Landlord
must receive within ten (10) days after the date of assumption a Security
Deposit in the amount of six (6) months Base Rental (using the Base Rental in
effect for the first full month immediately following the assumption) and an
advance prepayment of Base Rental in the amount of three (3) months Base Rental
(using the Base Rental in effect for the first full month immediately following
the assumption), both sums to be held by Landlord in accordance with the other
provisions of this Lease, including, without limitation, Section 4.3, and deemed
to be rent under this Lease for the purposes of the Bankruptcy Code as amended
and from time to time in effect.

          (b) In the event this Lease is assumed in accordance with the
requirements of the Bankruptcy Code and this Lease, and is subsequently
assigned, then, in addition to any other reasonable obligations that Landlord
may require and in order to provide Landlord with the assurances contemplated by
the Bankruptcy Code, Landlord shall be provided with the following: (i) a
financial statement of the proposed assignee prepared in accordance with
generally accepted accounting principles consistently applied, though on a cash
basis, which reveals a net worth in an amount sufficient, in Landlord's
reasonable judgment, to assure the future performance by the proposed assignee
of Tenant's obligations under this Lease; or (ii) a written guaranty by one or
more guarantors with financial ability sufficient to assure the future
performance of Tenant's obligations under this lease, such guaranty to be in
Form and content satisfactory to Landlord and to cover the performance of all of
Tenant's obligations under this Lease.

                                   ARTICLE 18
                               LANDLORD'S DEFAULT

     18.1 Landlord shall be in default under the Lease if Landlord has not begun
and pursued with reasonable diligence the cure of any failure of Landlord to
meet its obligations under the Lease within thirty (30) days of the receipt by
Landlord of written notice from Tenant of the alleged failure to perform. Tenant
hereby waives any right to terminate or rescind this Lease as a result of
Landlord's default as to any covenant or agreement contained in this Lease or as
a result of the breach of any promise or inducement hereof, whether in this
Lease or elsewhere and Tenant hereby agrees that Tenant's sole remedies for
default hereunder and for breach of any promise or inducement shall be limited
to a suit for damages and/or injunctive relief. In addition, Tenant hereby
covenants that, prior to the exercise of any such remedies, it will give the
mortgagees holding mortgages on the Building notice and a reasonable time to
cure any default by Landlord.

     18.2 The liability of Landlord to Tenant and Tenant to Landlord for any
default by Landlord under the terms of this Lease shall be limited to Tenant's
or Landlord's actual direct, but not consequential, damages therefor. Tenant
agrees to look solely to the estate and interest of Landlord in the Building for
the collection of any judgment or other judicial process requiring the payment
of money by Landlord in the event of a default or breach by Landlord with
respect to this

<PAGE>

Lease, and no other assets of Landlord shall be subject to levy of execution or
other procedures for the satisfaction of Tenant's rights. This section shall not
be deemed to limit or deny any remedies which Tenant may have in the event of
default by Landlord hereunder which do not involve the personal liability of
Landlord.

                                   ARTICLE 19
                          LANDLORD'S CONTRACTUAL LIEN

     Landlord agrees to waive all statutory lien rights it may have against
property owned or held by Tenant.

                                   ARTICLE 20
                      SURRENDER OF PREMISES; HOLDING OVER

     20.1 No act by Landlord shall be deemed an acceptance of a surrender of the
Premises, and no agreement to accept a surrender of the Premises shall be valid
unless the same is made in writing and signed by Landlord. At the expiration or
termination of this Lease, Tenant shall deliver to Landlord the Premises
"broom-clean" and with all improvements located thereon in good repair and
condition, reasonable wear and tear and condemnation and fire or other casualty
damage excepted, and shall deliver to Landlord all keys to the Premises.
Provided that Tenant has performed all of its obligations hereunder, Tenant may
remove all unattached trade fixtures, furniture, and personal property placed in
the Premises by Tenant (but Tenant shall not remove any such item which was paid
for, in whole or in part, by Landlord). Additionally, Tenant shall remove such
alterations, additions, improvements, trade fixtures, equipment, wiring, and
furniture as Landlord has provided notice to Tenant at installation of the
Landlord's requirement for removal thereof. Tenant shall repair all damage
caused by such removal. All items not so removed upon the expiration or
termination of the lease shall be deemed to have been abandoned by Tenant and
may be appropriated, sold, stored, destroyed, or otherwise disposed of by
Landlord at any time, thereafter, without notice to Tenant and without any
obligation to account for such items. If Landlord incurs any cost in the storage
or removal of any such items, Tenant shall pay to Landlord on demand any and all
such charges. The provisions of this paragraph shall survive the expiration or
termination of the Lease.

     20.2 If Tenant, or any party under Tenant claiming rights to the Lease,
fails to vacate the Premises at the end of the Lease Term, then such possession
shall be an unlawful detainer (Landlord reserving the right to seek an eviction
or removal), no tenancy shall be created, and Tenant shall pay each day during
any holdover period a daily Base Rental equal to the greater of (a) one
thirtieth (1/30th) of one hundred fifty percent (150%) of the monthly Base
Rental payable during the last month of the Lease Term, or (b) the prevailing
rental rate for similar space in the Building, plus, Tenant shall pay any
additional rental due under the other provisions of this Lease during any such
holdover period. In addition to payment of rent, Tenant shall pay to Landlord
all other damages to which Landlord may be entitled as a result of Tenant's
holding over.

                                   ARTICLE 21
                                 RIGHT OF ACCESS

     21.1 Upon reasonable prior notice to Tenant Landlord or Landlord's
representatives shall have the right to enter into and upon the Premises at any
and all reasonable times (i) to inspect, clean or make repairs or alterations or
additions to the Premises as Landlord may deem necessary (but without any
obligation to do so, except as expressly provided elsewhere in the Lease), or
(ii) to show the Premises to prospective tenants, purchasers or lenders; and
Tenant shall not be entitled to any abatement or reduction of rent by reason
thereof, nor shall any such entry be deemed to be an actual or constructive
eviction. Landlord shall make reasonable efforts not to interfere with Tenant's
conduct of business by reason of any such entry by Landlord.

                                   ARTICLE 22
                               SUBSTITUTION SPACE

     Intentionally omitted.

<PAGE>

                                   ARTICLE 23
                                  MISCELLANEOUS

     23.1 Attorneys' Fees. In case it should be necessary or proper for one
party to bring an action under this Lease against the other, then the party
which does not prevail agrees in each and any such case to pay to the party
which prevails its reasonable attorneys' fees. Furthermore, should it be
necessary for Landlord to consult an attorney for the enforcement of any of
Landlord's rights hereunder (including seeking payment of any amounts due under
the Lease) without the necessity of bringing an action, then Tenant,
nonetheless, agrees in such event to pay to Landlord its reasonable attorneys'
fees.

     23.2 Taxes. Tenant shall be liable for all taxes levied or assessed against
personal property, furniture, or fixtures placed by Tenant in the Premises. If
any taxes for which Tenant is liable are levied or assessed against Landlord or
Landlord's property and Landlord elects to pay the same, or if the assessed
value of Landlord's property is increased by inclusion of such personal
property, furniture or fixtures and Landlord elects to pay the taxes based on
Such increase, then Tenant shall pay to Landlord, upon demand, that part of such
taxes for which Tenant is primarily liable hereunder.

     23.3 Name. Tenant shall not, without the written consent of Landlord, use
the name of the Building for any purpose other than as the address of the
business to be conducted by Tenant in the Premises. In no event shall Tenant
acquire any rights in or to such name and Landlord reserves the right from time
to time and at any time to change the name of the Building.

     23.4 Financial Statements. Prior to the execution of this Lease, Tenant has
delivered financial statements to Landlord, prepared by a certified public
accountant and certified to be true and correct in all material aspects. Tenant
further agrees to deliver to Landlord Tenant's most recently updated financial
statements within ten (10) days of Landlord's written request (but not more
often the annually, unless an Event of Default has occurred, whereupon this
restriction shall not apply), each financial statement certified to be true and
correct in all material aspects by an authorized person on behalf of Tenant.

     23.5 Brokerage. Landlord and Tenant each warrant to the other that it has
not dealt with any broker or agent in connection with the negotiation or
execution of this Lease, other than the person(s) listed in the Basic
Definitions and Lease Provisions of this Lease (the "Broker(s)"). Except for any
Broker(s) who shall be compensated in accordance with the provisions of a
separate agreement, Landlord and Tenant each agree to indemnify the other
against all costs, expenses, attorneys' fees, and other liability for
commissions or other compensation claimed by any other broker or agent claiming
the same by, through, or under the indemnifying party.

     23.6 Quiet Enjoyment. Provided Tenant has performed all of the terms and
conditions of this Lease to be performed by Tenant, Tenant shall peaceably and
quietly hold and enjoy the Premises for the Term, without hindrance from
Landlord or any party claiming by, through, or under Landlord, subject to the
terms and conditions of this Lease.

     23.7 Force Majeure. Whenever a period of time is herein prescribed for
action to be taken by either party hereto, such party shall not be liable or
responsible for, and there shall be excluded from the computation for any such
period of time, delays due to strikes, riots, acts of God, shortages of labor or
materials, war, governmental laws, regulations, or restrictions, or any other
causes of any kind whatsoever which are beyond the control of such party. The
foregoing shall not excuse, however, the timely payment of rent by Tenant under
the provisions of this Lease.

     23.8 Notices. All notices and other communications given by one party to
the other under the provisions of this Lease shall be in writing, addressed to
the party at the address provided in the Basic Definitions and Lease Provisions,
and shall be by one of the following: (i) mailed by first class, United States
Mail, postage prepaid, certified, with return receipt requested, (ii) hand
delivered by courier to the intended address, or (iii) sent by prepaid telegram,
cable, facsimile transmission, or telex followed by a confirmatory letter or
(iv) reputable overnight courier services. Notice sent by certified mail shall
be effective three (3) days after being deposited in the United States Mail; all
other notices shall be effective upon delivery to the address of the addressee.
The parties hereto may change their addresses by giving notice thereof to the
other in conformity with this provision.

<PAGE>

     23.9 Joint and Several Liability. If there is more than one Tenant, then
the obligations hereunder imposed upon Tenant shall be joint and several. If
there is a guarantor of Tenant's obligations hereunder, then the obligations
hereunder imposed upon Tenant shall be the joint and several obligations of
Tenant and such guarantor, and Landlord need not first proceed against Tenant
before proceeding against such guarantor nor shall any such guarantor be
released from its guaranty for any reason whatsoever.

     23.10 Severability. If any clause or provision of this Lease is illegal,
invalid, or unenforceable under present or future laws, then the remainder of
this Lease shall not be affected thereby and in lieu of such clause or
provision, there shall be added as a part of this Lease a clause of provision as
similar in terms to such illegal, invalid, or unenforceable clause or provision
as may be possible and be legal, valid, and enforceable.

     23.11 Amendments; Construction and Binding Effect. This Lease may not be
amended except by instrument in writing signed by Landlord and Tenant. No
provision of this Lease shall be deemed to have been waived by Landlord unless
such waiver is in writing signed by Landlord, and no custom or practice which
may evolve between the parties in the administration of the terms thereof shall
waive or diminish the right of Landlord to insist upon the performance by Tenant
in strict accordance with the terms hereof. The terms and conditions contained
in this Lease shall inure to the benefit of and be binding upon the parties
hereto, and upon their respective successors in interest and legal
representatives, except as otherwise herein expressly provided. This Lease is
for the sole benefit of Landlord and Tenant, and, other than Landlord's
Mortgagee or a successor thereto, no third party shall be deemed a beneficiary
hereof.

     23.12 Captions. The captions contained in this Lease are for convenience of
reference only, and do not limit or enlarge the terms and conditions of this
Lease.

     23.13 Recording. Tenant shall not record or permit to be recorded in the
official records of the county where the Premises are located the Lease or any
memorandum of lease or other document giving notice of the existence of the
Lease.

     23.14 Time of Essence. Except as otherwise expressly provided in this
Lease, time is of the essence.

     23.15 Governing Law; Venue. The laws of the state in which the Building is
located shall govern the interpretation, validity, performance and enforcement
of this Lease. Venue for any action under this Lease shall be the county in
which the building is located.

     23.16 Authority. If either party is a corporation or partnership, the
person executing the Lease on behalf of such party hereby represents and
warrants that (i) he is duly authorized and empowered to execute the Lease on
behalf of such party, (ii) Tenant has full right and authority to enter into
this Lease, and (iii) upon full execution, this Lease constitutes a valid and
binding obligation of such party.

     23.17 Approval. Any approval of Landlord required under the provisions of
this Lease must be in writing or it shall not be deemed to be effective and, if
not in writing, then in the making of proof thereof, Landlord shall be presumed
not to have given its approval.

     23.18 No Merger. There shall be no merger of the leasehold estate hereby
created with the fee estate in the Premises or any part thereof if the same
person acquires or holds, directly or indirectly, this Lease or any interest in
this Lease and the fee estate in the Premises or any interest in such fee
estate.

     23.19 No Partnership. Nothing in this Lease shall be deemed or construed by
the parties hereto, nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture between the parties
hereto, it being understood and agreed that neither the method of computation of
rent, nor any other provision contained herein, nor any acts of the parties
hereto, shall be deemed to create any relationship between the parties hereto
other than the relationship of landlord and tenant.

     23.20 No Offer. The submission of this Lease by Landlord to Tenant for
examination shall not be construed as an offer to lease or a reservation of an
option to lease. Further, it is the intention of the parties that Landlord shall
not be bound and Tenant shall not have any rights under this Lease unless and
until Landlord executes a copy of this Lease and delivers it to Tenant.

<PAGE>

     23.21 Exhibits. All exhibits and attachments attached hereto are
incorporated herein by this reference. [Check all boxes which apply. Boxes not
checked are of exhibits that do not apply.]

          Exhibit A -       Legal Description                 [X]
          Exhibit B -       Outline of Premises               [X]
          Exhibit C -       Operating Expense Reimbursement   [X]
          Exhibit D -       Building Rules and Regulations    [X]
          Exhibit E -       Work Letter                       [X]
          Exhibit F -       Commencement Date Letter          [X]
          Exhibit G -       Financing Statement               [ ]
          Exhibit H -       Parking                           [X]
          Exhibit I -       Signage                           [X]
          Exhibit J -       Renewal Option                    [X]
          Exhibit K -       Right of First Refusal            [ ]
          Exhibit L -       Guaranty of Lease                 [ ]

     23.22 Entire Agreement. This Lease, including all exhibits attached hereto,
constitutes the entire agreement between Landlord and Tenant regarding the
subject matter hereof and supersedes all oral statements and prior writings
relating thereto. Except for those set forth in this Lease, no representations,
warranties, or agreements have been made by Landlord, Landlord's agent or
Tenant, anyone of the foregoing to the other with respect to this Lease or the
obligations to Landlord or Tenant in connection therewith.

     23.23 Cancellation Option. Tenant and any Related Transferee is hereby
granted the option to cancel or terminate this Lease at the end of the thirty
sixth (36th) month after the Commencement Date (the "Cancellation Date") on the
following terms: (1) an Event of Default is not outstanding, (2) Tenant has
notified Landlord in writing a minimum of six (6) months prior to the
Cancellation Date of its desire to terminate the Lease on the Cancellation Date,
(3) Tenant has paid to Landlord at the time of delivery of the notice of
cancellation a cancellation fee of $100,000.00 plus an amount equal to the
unamortized portion of the commisions, tenant improvement allowance, and any
sublease termination fee (as described in Section 24.2, below) paid by Landlord
on this Lease. (Amortization shall be monthly over sixty (60) months, beginning
on the Commencement Date) and shall be set forth in all agreement between
Landlord and Tenant to be executed within sixty (60) days after the Commencement
Date. The option granted herein is one-time option and shall become null and
void if not exercised timely, time being of the essence.

                                   ARTICLE 24
                               SPECIAL PROVISIONS

     24.1 Temporary Premises. Reference is made to the fact that the Premises
are currently occupied and shall not be available prior to April 30, 2001 for
the construction of tenant improvements in accordance with the provisions of
Exhibit "E". Tenant desires to lease from Landlord temporary space (identified
-----------
below) until such time as the Premises are delivered to Tenant. Accordingly,
Landlord hereby agrees to lease the Temporary Premises to Tenant and Tenant
agrees to rent and lease the Temporary Premises from Landlord on the terms set
forth below and otherwise in accordance with the provisions of this Lease:

Temporary Premises:     1,829 square feet of rentable area located in Suite 101,
                        1202 E. Arapaho Rd., Richardson, Texas
Lease                   Term: Commencing on December 15, 2000 and continuing
                        until the Premises are delivered to Tenant in accordance
                        with the terms of this Lease; provided, that Tenant may
                        extend the term of the temporary space on a
                        month-to-month basis on the same terms for up to an
                        additional one (1) month.
Base Rental:            The monthly Base Rental shall be $2,286.25.
Additional Rental:      Basic Costs utilized in the  calculation of any Excess
                        (as described in Exhibit "C") for the Temporary
                                         -----------
                        Premises shall be those actual costs for calendar year
                        2000.
Security Deposit:       $2,286.25, payable upon execution of the Lease. The
                        Security Deposit for the Temporary Premises shall be
                        separate from that for the Premises and shall be
                        returned to Tenant upon expiration of the Lease Term for
                        the Temporary Premises unless otherwise applied as

<PAGE>

                          permitted in accordance with the provisions of Section
                          4.3.
Leasehold Improvements:   Landlord shall deliver and Tenant shall take the
                          Temporary Premises in "AS IS" "WHERE IS" condition and
                          with all faults. Landlord shall have no obligation to
                          make any alterations, modifications or repairs to the
                          Temporary Premises, except those repairs otherwise
                          required of Landlord under Section 10.1 of this Lease.

     24.2 Subleased Premises. Reference is made to the fact that Tenant is
currently subleasing space from Family Guidance Center at 1222 E. Arapaho Rd.,
Suite 102, Richardson, Texas ("Subleased Premises"). Tenant has represented to
Landlord that Tenant has the option to terminate the sublease for the Subleased
Premises upon payment of the sum of $4,781.00 to the Family Guidance Center on
or before February 1, 2001. In the event Tenant elects to terminate the
sublease, it shall notify Landlord and provide Landlord with a copy of its
written correspondence electing to terminate, together with a copy of its
payment to the Family Guidance Center. Within thirty (30) days of the
Commencement Date of the Lease for the Premises, and provided no Event of
Default is outstanding hereunder, Landlord shall reimburse to Tenant the sum of
$4,781.00 to compensate for its payment to terminate the sublease.

     24.3 Existing Lease. Reference is made to the fact that Tenant is currently
leasing 2,889 square feet of space from Landlord located at 1202 E. Arapaho,
Suite 102, Richardson, Texas ("Existing Premises") under that certain Lease
Agreement between Landlord and Tenant, dated May 26, 1998 ("Existing Lease").
Landlord and Tenant hereby agree to terminate the Existing Lease on the
Commencement Date of this Lease for the Premises (as opposed to the Commencement
Date for the Temporary Premises). Notwithstanding any termination of the
Existing Lease, Tenant shall continue to perform all of its obligations under
the Existing Lease and be obligated thereunder for all liabilities that accrue
prior to the date of termination. Tenant shall deliver the Existing Premises to
Landlord on the date of termination "broom clean" and in good condition and
repair, ordinary wear and tear and casualty excepted, and otherwise in
accordance with the provisions of the Existing Lease as they pertain to
surrender of the Existing Premises. Tenant shall also be liable for any holdover
following the termination of the Existing Lease, as provided therein.
Conversely, Landlord shall be obligated to return any security deposit under the
Existing Lease, save and except to the extent Landlord had the right to utilize
same in accordance with the provisions of the Existing Lease.

     24.4 Right to Vacate. In the event Tenant elects to vacate the Premises, it
will notify Landlord thirty (30) days prior thereof. If the vacating is other
than for purposes of remodeling or due to a casualty, then, at any time after
receipt of such notice from Tenant, Landlord may terminate this Lease by giving
Tenant written notice electing to recapture the Premises and this Lease will
terminate, effective the later of the date Tenant notified Landlord that it
would vacate the Premises or thirty (30) days from the date of such notice from
Landlord. In the case of a remodeling, Tenant may not vacate the Premises for
longer than ninety (90) days, or if so, then Landlord's right to recapture the
Premises under this paragraph shall arise after the 90th day and before Tenant
re-occupies the Premises.

                            (Signature Page Follows)

<PAGE>

        EXECUTED to be effective on the day and date first written above.

                                      LANDLORD:

                                      AETNA LIFE INSURANCE COMPANY,
                                      a Connecticut Corporation

                                      By: UBS REALTY INVESTORS, L.L.C.,
                                          (f/k/a Allegis Realty Investors LLC),
                                          a Massachusetts Limited Liability
                                          Company,
                                          Its Agent and Investment Advisor

                                      By  /s/  Joseph E. Gaukler
                                          --------------------------------------
                                      Name: Joseph E. Gaukler
                                      Title: Director

                                      TENANT:

                                      STANFORD MICRODEVICES, INC.
                                      a Delaware Corporation

                                      By:     /s/  Thomas J. Scannell
                                          --------------------------------------

                                      Printed Name:    Thomas J. Scannell
                                                   -----------------------------

                                      Title:  V.P. Finance & Administration
                                            ------------------------------------

<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

Arapaho Business Park X
-----------------------

BEING a tract of land situated and the J. C. Skiles Survey, Abstract No. 1371
and the Baurch Cantrell Survey, Abstract No. 265, City of Richardson, Dallas
County, Texas, and also being all of Lot 4, Block 2 of the replat of Block 2 of
Arapaho Business Park, an addition to the City of Richardson as recorded in
Volume 80011, Page 2276, Deed Records, Dallas County, Texas and being more
particularly described as follows:

BEGINNING at the point of intersection of the West R.O.W. line of Presidential
Drive (a 60' R.O.W.) with the South R.O.W. line of Arapaho Road (a 100' R.O.W.);

THENCE, South along the said West R.O.W. line of Presidential Drive a distance
of 411.49 feet to a point for corner;

THENCE S 89 44'50" W, a distance of 587.85 feet to a point for comer located on
the East R.O.W. line of Glenville Drive (a 80' R.O.W.);

THENCE N 0 15' 10" W, along the said East R.O.W. line of Glenville Drive a
distance of 394.07 feet to an angle point;

THENCE North a distance of 20.0 feet to a point for corner;

THENCE East along the said South R.O.W. line of Arapaho Road a distance of
589.59 feet to the POINT OF BEGINNING and containing 243,026 square feet or 5.58
acres of land, more or less.

<PAGE>

                                   EXHIBIT "B"

                               OUTLINE OF PREMISES

                                 [GRAPH OMITTED]

<PAGE>

                                   EXHIBIT "C"

                         OPERATING EXPENSE REIMBURSEMENT

     This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

     A. Tenant shall pay Tenant's Pro-Rata Share of the excess ("Excess") of
actual Basic Costs for a calendar year over (whichever one of the following is
completed shall be applicable):

          (i)  the actual Basic Costs for the calendar year 2001 (grossed up to
                                                            ----
     95% occupancy for the entire year), or

          (ii) the sum of $         per square foot of rentable area
                           ---------

     (the "Expense Stop"). Landlord may make a good faith estimate of the Excess
for any calendar year or part thereof during the Lease Term, and, Tenant shall
pay to Landlord as additional rent along with each monthly payment of Base
Rental all amount equal to the estimated Excess for such calendar year or part
thereof divided by the number of months in such calendar year during the Lease
Term. From time to time during any calendar year, Landlord may revise its
estimate of the Excess and deliver a copy of the revised estimate to Tenant.
Thereafter, the monthly installments of Excess payable by Tenant shall be
appropriately adjusted. In no event will the provisions of Exhibit "C" serve to
reduce the monthly Base Rental. Notwithstanding the foregoing, for purposes of
determining Tenant's Pro Rata Share of the Excess, Controllable Basic Costs (as
defined below) for any calendar year will be deemed not to increase over the
amount of the prior year's actual or limited costs (whichever is lower) by more
than 10%. The term "Controllable Basic Costs" means all Basic Costs except costs
and expenses for taxes, insurance, and utilities.

     B. Landlord will maintain books and records of all Basic Costs in
accordance with generally accepted accounting for similar types of properties,
applied on a consistent basis. After the end of every calendar year Landlord
will deliver to Tenant a statement ("Annual Cost Statement") setting forth the
actual Basic Costs for the prior calendar year, the actual amount of any Excess
for the prior calendar year, and Tenant's Pro Rata Share. If Tenant owes all
additional amount of Excess over the estimated payments made during the prior
calendar year, this will also be noted in the Annual Cost Statement and Tenant
will pay such amount, as additional rent, with the next due installment of Base
Rental. If the Annual Statement reflects all overpayment, then Landlord will
credit the amount of the overpayment against the next due installments of
additional rent payable under the provisions of this Exhibit "C", or if the
Lease Term has expired, Landlord will refund the difference to Tenant.

     Other than as set forth in Section 23.23, notwithstanding any expiration or
earlier termination of this Lease, Tenant's obligation to pay Tenant's Pro Rata
Share of any Excess shall survive any expiration or termination of this Lease.

<PAGE>

     C. The term "Basic Costs" shall mean all expenses and disbursements of
every kind (subject to the limitations set forth below) which Landlord incurs,
pays or becomes obligated to pay in connection with the ownership, operation,
management, repair and maintenance (including replacement thereof) of the
Building, including, but not limited to, the following:

          (a) Wages and salaries of all employees engaged in the operation,
repair, replacement, and maintenance of the Building, including taxes, insurance
and benefits relating thereto. (The wages and salaries of those employees
spending a portion of their time working at the Building shall be allocated to
Basic Costs based on the portion of time working at the Building.);

          (b) All supplies and materials used in the operation, maintenance,
repair, replacement, and security of the Building;

          (c) Annual cost of all capital improvements made to the Building which
although capital in nature call reasonably be expected to reduce the normal
operating costs of the Building, as well as all capital improvements made to
comply with any legal requirements, insurance requirements or environmental laws
which become effective after the date of this Lease, or to benefit or increase
the safety and security of the Building, as amortized over the useful economic
life of such improvements as determined by Landlord in its reasonable discretion
(without regard to the period over which such improvements may be depreciated or
amortized for federal income tax purposes), and the amortized portion, together
with interest on the unauthorized portion of such improvements or expenditures
at an interest rate equal to two percent (2%) over the interest rate payable on
United States Treasury securities having a maturity comparable to the period of
the amortization at the time Landlord incurred the cost, shall be included in
operating expenses in the year in which the costs are incurred and in any
subsequent years, during the term of the lease;

          (d) Cost of all utilities, other than the cost of utilities actually
reimbursed to Landlord by individual tenants, or those costs of major users (in
excess of a typical tenant) which are not reimbursed to Landlord by such tenant;

          (e) Cost of any insurance or insurance related expense applicable to
the Building and Landlord's personal property used in connection therewith,
including without limitation, the premiums for public liability coverage, fire
and extended coverage, and rental loss coverage;

          (f) All taxes and assessments and governmental charges whether
federal, state, county or municipal, and whether they be by taxing districts or
authorities presently taxing or by others, subsequently created or otherwise,
and any other taxes and assessments attributable to the Building (or its
operation), and the grounds, parking areas, driveways, and alleys around the
Building, excluding, however, federal and state taxes on income (collectively,
"Taxes"); if the present method of taxation changes so that in lieu of the whole
or any part of any Taxes levied on the Landlord or Building, there is levied on
Landlord a capital tax directly on the rents received therefrom or a franchise
tax, assessment, or charge based, in whole or in part, upon such rents for the
Project and in lieu of the present method of taxation, then all such taxes,
assessments, or charges, or the part thereof so based, shall be deemed to be
included within the term "Taxes" for the purposes hereof;

                                      -2-

<PAGE>

          (g) Cost of repairs, replacements, and general maintenance of the
Building; and

          (h) Cost of service or maintenance contracts with independent
contractors for the operation, maintenance, repair, replacement, or security of
the Building (including, without limitation, alarm service, window cleaning, and
elevator maintenance). (Nothing herein is intended to obligate Landlord to
provide any security for the Building.)

     There are specifically excluded from the definition of the term "Basic
Cost" costs for the following:

          (1) Capital improvements made to the Building, other than capital
improvements described above in this Exhibit "C" and except for items which,
though capital for accounting purposes, are properly considered maintenance and
repair items, such as painting of common areas, replacement of carpet in
elevator lobbies, and the like;

          (2) Repair, replacements and general maintenance paid by proceeds of
insurance or by Tenant or other third parties, and alterations attributable
solely to tenants of the Building other than Tenant;

          (3) Debt service on loans to Landlord;

          (4) Depreciation of the Building;

          (5) Leasing commissions;

          (6) Legal expenses, other than those incurred for the general benefit
of the Building's tenants (e.g., tax disputes);

          (7) Wages and salaries and benefits of employees above the level of
Building manager;

          (8) renovating or otherwise installing tenant improvements for
occupants of the Building; and

          (9) correcting defects in the construction of the Building.

     D. With respect to any calendar year or partial calendar year in which the
Building is not occupied to the extent of 95% of the rentable area thereof, the
Basic Costs for such period shall, for the purposes hereof, be increased to the
amount which would have been incurred had the Building been occupied to the
extent of 95% of the rentable area.

                                      -3-

<PAGE>

                                   EXHIBIT "D"

                              RULES AND REGULATIONS

     This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

     A. The following rules and regulations shall apply to the Building,
including, without limitation the Premises:

     2. Sidewalks, doorways, vestibules, halls, stairways, and other similar
areas shall not be obstructed by Tenant or used by any Tenant for purposes other
than ingress and egress to and from its Premises. No rubbish, litter, trash, or
material of any nature shall be placed, emptied, or thrown in those areas. At no
time shall Tenant permit Tenant's employees to loiter in common areas or
elsewhere in or about the Building.

     3. Plumbing, fixtures and appliances shall be used only for the purposes
for which designed, and no sweepings, rubbish, rags or other unsuitable material
shall be thrown or deposited therein. Damage resulting to any such fixtures or
appliances from misuse by Tenant or its agents, employees or invitees, shall be
paid by such Tenant.

     4. No signs, advertisements or notices shall be painted or affixed on or to
any windows or doors or other part of the Building without the prior written
consent of Landlord, which consent shall not be unreasonably withheld. No nails,
hooks or screws shall be driven or inserted in any part of the Building except
by personnel of Landlord or retained by Landlord. No curtains or other window
treatments shall be placed on the glass, without Landlord's prior approval. No
lighting which may be visible from the exterior of the Premises may be utilized
without Landlord's prior approval.

     5. Landlord may provide and maintain an alphabetical directory for all
tenants in the main lobby of the Building.

     6. Landlord shall provide all door locks in Tenant's Premises, at the cost
of Tenant, and Tenant shall not place any additional door locks in its Premises
without Landlord's prior written consent, which consent shall not be
unreasonably withheld. Landlord shall furnish to Tenant a reasonable number of
keys to the door lock's in Tenant's Premises free of cost and additional keys,
at Tenant's cost. Tenant shall not make a duplicate of any key. All keys are to
be returned to Landlord at the expiration or earlier termination of this Lease.

     7. Movement in or out of the Building of furniture or office equipment, or
dispatch or receipt by Tenant of any merchandise or materials which require use
of elevators or stairways, common area loading docks or movement through the
Building entrances or lobby shall be conducted under Landlord's supervision at
such times and in such a manner as Landlord may reasonably require. At the time
of seeking Landlord's approval, Tenant shall provide to Landlord, in writing, a
detailed listing of the activity. Tenant assumes all risks of and shall be
liable for all

<PAGE>

damage to articles moved and injury to persons resulting from such activity. If
any equipment, properly and personnel of Landlord are damaged or injured as a
result of acts in connection with this activity, then Tenant shall be solely
liable for any and all damage or loss resulting therefrom.

     8. Landlord may prescribe weight limitations and determine the locations
for safes and other heavy equipment or items, which shall in all cases be placed
in the Building so as to distribute weight in a manner which will avoid damage
to the Building, which may include the use of such supporting devices as
Landlord may require, and which may not in any case exceed the acceptable floor
loading and weight distribution for the Building. All damages to the Building
caused by the installation or removal of any property of a tenant, or done by a
tenant's property while in the Building, shall be repaired at the expense of
such tenant.

     9. Corridor doors, when not in use, shall be kept closed.

     10. No birds or animals (except seeing eye dogs) shall be brought into or
kept in, on or about the Premises. No portion of the Premises shall at any time
be used or occupied as sleeping or lodging quarters or for any immoral or
illegal purposes or for any purpose which would tend to injure the reputation of
the Building or impair the value of the Building.

     11. Tenant shall not commit waste and shall keep its Premises neat and
clean. All trash and debris must be placed in receptacles provided therefor.

     12. Tenant shall not make or permit any improper, objectionable or
unpleasant noises or odors to emanate from the Premises to other parts of the
Building or otherwise interfere in any way with other tenants or persons having
business with them, shall not solicit business or distribute, or cause to be
distributed, in any portion of the Building any handbills, promotional materials
or other advertising, and shall not conduct or permit any other activities in
the Building that might constitute a nuisance. Tenant shall not do any cooking
or operate a restaurant or food service business from the Premises (other than a
microwave oven for use by its employees or a beverage and/or snack service that
is free or of nominal charge for use by employees and invitees).

     13. No machinery of any kind (other than normal office equipment) shall be
operated by Tenant on its Premises without Landlord's prior written reasonable
consent.

     14. No flammable, explosive or dangerous fluid or substance shall be used
or kept by Tenant in the Premises, except normal amounts used in cleaning.

     15. Landlord will not be responsible for lost or stolen personal property,
money or jewelry from the Premises or public or common areas regardless of
whether such loss occurs when the area is locked against entry or not.

     16. No coin, vending or dispensing machines of any kind may be maintained
in any Premises, except that tenant may from time to time maintain soft drink
and or snack machines for use by its employees and invitees on a no-charge or
nominal charge basis.

     17. All mail chutes located in the Building shall be available for use by
Landlord and all tenants of the Building according to the rules of the United
States Postal Service.

                                      -2-

<PAGE>

     18. Neither Tenant nor any agent, contractor or employee of Tenant shall
have any right of access to the roof of the Premises or the Building and neither
shall install, repair, place or replace any aerial, fail, air conditioner or
other device on the roof of the Premises or the Building without the prior
written consent of Landlord. Such consent may be expressly conditioned upon
Landlord's supervision of access to the roof and upon such other reasonable
restrictions as Landlord may advise Tenant. Any aerial, fan, air conditioner or
device installed without such written consent shall be subject to removal, at
Tenant's expense, without notice, at any time. Tenant shall be liable for all
damages resulting from the installation or removal of any aerial, fan, air
conditioner or other device.

     19. Tenant will refer to Landlord for Landlord's reasonable supervision,
approval and control all contractors, contractor representatives, and
installation technicians rendering any service to Tenant, before performance of
any contractual service. Such supervisory action by Landlord shall not render
Landlord responsible for ally work performed for Tenant. This provision shall
apply to all work performed in the Building, including, without limitation, the
installation of telephones, computer wiring, cabling, electrical devices,
attachments and installations of any nature. Tenant shall be solely responsible
for complying with all applicable laws, codes and ordinances pursuant to which
such work shall be performed.

     20. Landlord may from time to time (without any obligation to do so or
liability for not doing so) adopt a appropriate and lawful systems and
procedures for the security or safety of the Building, its occupants, entry and
use, or its contents and Tenant, its employees, contractors, agents and invitees
shall comply therewith.

     21. Canvassing, soliciting, and peddling in or about the Building is
prohibited and Tenant shall cooperate and use reasonable efforts to prevent
same.

     22. At no time shall Tenant permit or shall Tenant's agents, employees,
contractors, quests, or invitees smoke in any common area of the Building,
unless such common area has been declared a designated smoking area by Landlord.

     23. Tenant accepts any and all liability for damages and injuries to
persons and property resulting from the serving and sales of alcoholic beverages
from the Premises. Nothing contained herein shall be construed as the consent of
Landlord to permit the serving or sale of alcoholic beverages on the Premises.

     B. The Landlord reserves the right to rescind any of these rules and make
such other and further rules and regulations as in the judgment of Landlord
shall from time to time be needed for the safety, protection, care and
cleanliness of the Building, the operation thereof, the preservation of good
order therein, and the protection and comfort or its tenants, their agents,
employees and invitees, which rules when made and notice thereof given to Tenant
shall be binding upon him in like manner as if originally herein prescribed;
provided such rules do not unreasonably interfere with Tenant's conduct of
business from the Premises and are not in conflict with the provisions of
tenant's lease.

                                      -3-

<PAGE>

                                   EXHIBIT "E"

                                   WORK LETTER

     This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

     A. Definitions. Each term used in this Work Letter shall have the meaning
        -----------
hereinafter set forth:

     1. "Architect" shall mean the architect selected by Landlord and
         ---------
responsible for the drafting of the Plans and Specifications and shall
coordinate and supervise with the Contractor the construction of the leasehold
improvements.

     2. "Construction Costs" shall mean all costs incurred in the construction
         ------------------
of the leasehold improvements in accordance with the Plans and Specifications,
as modified from time to time in accordance with the provisions of this Work
Letter. Such costs shall include all hard costs and soft costs to complete the
improvements. Hard costs shall include such costs as labor and materials. Soft
costs shall include such cost as architectural and engineering fees, but shall
exclude any interest incurred on funds expended during the course of the
construction. The cost of signage shall not be part of Construction Costs.

     3. "Contractor" shall mean the contractor selected by Landlord and
         ----------
responsible for the construction of leasehold improvements. Landlord shall
obtain bids from a minimum of three (3) qualified contractors prior to selection
of the contractor. Upon receipt of the bids Landlord shall review same with
Tenant, but Landlord shall make the final selection, using reasonable commercial
judgment. The term "qualified contractor" shall mean contractors with a minimum
of two (2) years experience in constructing leasehold improvements, who maintain
insurance coverage for worker's compensation and general liability coverage in
reasonable amounts, and who are eligible for payment and performance bonds.
Tenant may recommend to Landlord qualified contractors for inclusion in the bid
process.

     4. "Plans and Specifications" shall mean the final plans and specifications
         ------------------------
for the construction of leasehold improvements mutually agreed upon by Landlord
and Tenant, in accordance with the provisions of Section B.1 of this Work
Letter.

     5. "Tenant Delay" shall mean any delay in the construction of the Work
         ------------
caused by Tenant for any reason whatsoever. In the event of a Tenant Delay, the
Commencement Date shall be accelerated one (1) day for every day of delay caused
by Tenant.

     6. "Tenant Improvement Allowance" shall mean the sum of $302,064.00 (or
         ----------------------------                         ----------
$14.50 per square foot of rentable area times 20,832 square feet of rentable
 -----                                        ------
area) which Landlord agrees to pay towards the Construction Costs, of which
$20,832.00 (or $1.00 per square foot) may be used towards payment of moving and
 ---------      ----
cabling costs, and $8,332.80 (or $0.40 per square foot) may be used for
                    --------      ----
architectural costs.

<PAGE>

     Notwithstanding the foregoing to the contrary, if there remain unused
amounts in one of the foregoing categories, the amounts may be applied towards
costs in one of the other categories.

     7. "Work" shall mean the construction of leasehold improvements on the
         ----
Premises in accordance with the Plans and Specifications.

     B. Construction of Premises. Landlord shall cause the Work to be
        ------------------------
constructed substantially in accordance with the Plans and Specifications;
provided, however, Landlord shall be solely responsible (and the costs thereof
shall not be included in the calculation of deductions from the Tenant
Improvement Allowance) for any repairs, replacements, or upgrades to the
Building and its systems, as well as with respect to exterior appearance, code
compliance and ADA compliance matters, if exterior or structural in nature.
Tenant shall cooperate at all stages to promote the efficient and expeditious
completion of the Work. Upon approval of the Plans and Specifications and
payment of any excess, as hereinafter described, Landlord shall enter into a
construction contract with the Contractor. Landlord makes no representations or
warranties as to the Work and shall have no liability therefor; Landlord's sole
obligation shall be to enforce any warranty from the Contractor with respect to
the Work.

     1. Plans and Specifications Approval. Upon execution of the Lease, Tenant
        ---------------------------------
shall furnish to Landlord and the Architect preliminary space plans for the
construction of the Work which the Architect shall use to prepare and submit to
Landlord within the next thirty (30) days the proposed plans and specifications
for the Work. Landlord shall thereafter have fifteen (15) days within which to
approve the proposed plans and specifications or disapprove, in which event,
Landlord shall advise tenant and the Architect, in writing, of the reasons for
its disapproval. The Architect shall have fifteen (15) days from the date of
written disapproval from Landlord to make the adjustments required by Landlord,
and resubmit the revised plans and specifications to Landlord and Tenant.
Thereafter, Landlord shall again have ten (10) days to approve or disapprove the
revised plans and specifications. If Tenant fails to submit the preliminary
space plans on a timely basis, it shall constitute a Tenant Delay. The approval
of the Plans and Specifications by Landlord shall not be construed as any
representation or warranty by Landlord with respect to the accuracy of the Plans
and Specifications or their compliance with applicable laws, including, without
limitation, compliance with the Americans With Disabilities Act, for which it
shall be the sole responsibility of the Tenant to insure the Premises are in
compliance therewith. Upon receipt of the bids from qualified contractors,
Tenant may revise the Plans and Specifications with the approval of Landlord.

     2. Tenant's Share of Costs. Tenant shall be liable and pay for all
        -----------------------
Construction Costs except to the extent of the Tenant Improvement Allowance
which shall be paid by Landlord. Upon approval of the Plans and Specifications,
Landlord shall obtain estimates of the Construction Costs from the Contractor
and furnish copies to Tenant. In the event such estimates exceed the Tenant
Improvement Allowance, Tenant shall pay the excess to Landlord within five (5
days prior to commencement of construction. If Tenant fails to tender the excess
timely, Landlord shall not proceed with construction, and such delay shall
constitute a Tenant Delay for each day until the excess is paid. Upon receipt of
the excess, Landlord shall cause the Contractor to commence construction. Upon
completion of the construction, Landlord shall provide to Tenant an accounting
of the final costs, crediting Tenant for the Tenant Improvement Allowance and
any excess

                                                                             -2-

<PAGE>

previously paid to Landlord, but in no event shall Tenant be liable for costs in
excess of the Contractor's accepted bid (as modified by appropriate change
orders.

     3. Construction of the Work. Following approval of the Plans and
        ------------------------
Specifications and payment of any excess by Tenant, either the Landlord or the
Contractor, as appropriate, shall apply for a building permit, and the
Contractor shall commence construction of the Work on the later of (i) May 1,
2001 or (ii) receipt of the permit and, thereafter, proceed with all due
diligence until substantial completion.

     The Work shall be deemed to be substantially complete upon (i) Landlord's
obtaining a certificate of occupancy or its equivalent from the appropriate
governmental authority and (ii) the Work is sufficiently complete in accordance
with the Plans and Specifications so that Tenant may occupy the Premises for its
use, subject to any punchlist items.

     4. Unavoidable Delays. Tenant and Landlord acknowledge that there may be
        ------------------
unavoidable delays in the construction of the Work. The term "unavoidable
delays" shall mean events beyond the control of Landlord or the Contractor,
including, without limitation, acts of God, war, civil commotion, strikes, fire,
flood, earthquake or other casualty, governmental regulation or restriction and
adverse weather conditions or continued possession by prior tenants or
occupants.

     5. Changes. If Tenant requests a change, alteration or addition after the
        -------
final Plans and Specifications have been approved, Tenant shall submit same in
writing to Landlord and to the Architect. If Landlord approves such change,
Landlord shall obtain from the Contractor and provide Tenant with an estimate of
the cost of such change. Tenant shall notify Landlord within one (1) business
day if Tenant elects to proceed with the change, in which event, Landlord shall
incorporate the change into the Plans and Specifications. The cost of such
change shall also be incorporated in the calculation of the Construction Costs.
If Landlord disapproves of such change, it shall immediately notify Tenant in
writing specifying the reasons for such disapproval and the construction shall
proceed in accordance with the previously approved, final Plans and
Specifications. Any delay in construction time (determined in accordance with
lie next sentence) caused by such changes shall constitute a Tenant Delay. The
Architect, in his sole discretion, shall determine whether such change
necessitates a delay in construction and the length of such delay.

     6. Governmental Regulations. Tenant shall be solely responsible for causing
        ------------------------
the design and construction of the Work to conform to any and all requirements
of applicable building, Plumbing, electrical and fire codes and the requirements
of any authority having jurisdiction over the Work, as such codes and
requirements may from time to time be amended or supplemented.

     7. Entry by Tenant. During the course of construction of the Work, Tenant
        ---------------
may enter the Premises for purposes of inspecting the Work, installing trade
fixtures, erecting signs, stocking merchandise and such other Work as may be
necessary or desirable to prepare to occupy and conduct its business from the
Premises, provided that (i) Tenant assumes the risk of injury to person and
damage to its property, (ii) any entry shall be subject to the provisions of
this Lease, except that the Lease Term shall not commence and rent shall not be
due and (iii) Tenant shall not unreasonably interfere with the construction of
the Work on the Premises. Tenant shall also provide evidence of

                                                                             -3-

<PAGE>

insurance prior to any such entry. If such entry shall interfere with the
construction of the Work, then Tenant shall immediately leave upon the request
of Landlord.

     C. Delivery of the Premises. Subject to unavoidable delays, the Work is
        ------------------------
estimated to be substantially completed for delivery of the Premises to Tenant
by the Commencement Date. If an unavoidable delay will prevent the substantial
completion of the Work prior to the scheduled Commencement Date, then Landlord
will notify Tenant in writing. Upon substantial completion of the Work, Landlord
will notify Tenant in writing and afford Tenant all opportunity to inspect the
Premises prior to delivery. At the inspection, Landlord and Tenant will prepare
and agree upon a punchlist of any items that remain to be completed.

     If the Work is substantially completed to permit delivery of the Premises
prior to the Commencement Date, Landlord shall notify Tenant in writing and,
should Tenant elects to take occupancy early, then Tenant may inspect the
Premises and prepare, with Landlord, a punchlist prior to delivery.

     D. Limitation. This Exhibit shall not be deemed applicable to any
        ----------
additional space added to the original Premises or, in the event of a renewal of
the Lease Term, to the original Premises, itself, during the renewal term,
unless expressly so provided in the Lease or any amendment thereto.

                                                                             -4-

<PAGE>

                                   EXHIBIT "H"

                                     PARKING

     This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

     Provided that Tenant is not in default under the Lease, Landlord shall make
available to Tenant throughout the Lease Term parking as required by The City of
Richardson code for this property type. As consideration for the parking spaces,
Tenant shall pay to Landlord as Additional Rental the amount, if any, set forth
below, together with each monthly payment of Base Rental. Except with respect to
any reserved parking that Landlord may establish from time to time, all tenant
parking will be on a non-reserved, first-come, first-serve basis. Landlord may
elect to establish parking zone(s) or otherwise restrict access to the parking
spaces on the Building and require specific identification and/or access cards
for those vehicles allowed to park in such zone(s) or parking spaces. Landlord
reserves the right upon written notice posted in the parking areas to
temporarily close the parking areas for repairs or alterations as Landlord may
deem appropriate.

     Tenant agrees to pay to Landlord during the Lease Term the parking charge
of $0.00 per month for each parking space, beginning on the Commencement Date. A
pro rata portion of such parking charge shall be paid for any partial month
during the Lease Term. The parking charge is subject to adjustment for any levy
or assessment by a governmental authority.

     Landlord shall not be liable for any damage to Tenant's vehicles, or those
of any employees, agents, contractors or invitees of Tenant who use the parking
spaces and Tenant hereby waives on behalf of itself and its employees, agents,
contractors and invitees all claims against Landlord, whether based on
negligence or otherwise, and arising out of any loss or damage to vehicles or
other property while located in the parking spaces, or arising out of personal
injury sustained in connection with the use of such parking spaces. Tenant
hereby agrees to advise each of its employees, agents, contractors and invitees
of such waiver of claims.

     The failure to comply with any of the rules and regulations governing the
parking shall entitle Landlord, in addition to any other remedies provided under
the Lease, to terminate Tenant's right to use the parking spaces and low any
vehicles which are in violation of the rules and regulations at the sole cost
and expense of Tenant and without liability for damages resulting therefrom.

                                                          [Illegible]
                                                          ----------------------
                                                          Landlord's initials

                                                          /s/ Tom S
                                                          ----------------------
                                                          Tenant's initials

<PAGE>

                                   EXHIBIT "I"

                                     SIGNAGE

     Tenant shall be able to utilize signage generally conforming to that which
was present for Coollink.

          .    21" x 42" Aluminum pan with radius comers-- V Depth

          .    Painted Sherwin Williams 2074

          .    Gerber Deep Mahogany Brown Copy A Border

          .    4" Copy only-- 3 Line Maximum

          .    1 1/2" Between Lines of Copy

          .    35" Maximum Length of Copy

          .    Condensed or expanded copy not accepted-- See below

          .    Letter style-- Holvedca Compact

          .    Logos subject to Landlord and Architects' approval.

          .    Sign drawings must be submitted for Landlord and Architects'
               written approval before fabrication.

     Our purpose in providing the Tenants with these requirements is to create a
good business image which gives the Impression of quality and professionalism.

                                 [GRAPH OMITTED]

<PAGE>

                                   EXHIBIT "J"

                                 RENEWAL OPTION

     This Exhibit is attached to and made a part of the Lease by and between
AETNA LIFE INSURANCE COMPANY ("Landlord") and STANFORD MICRODEVICES, INC.
("Tenant").

     Tenant and any Related Transferee, but not any other assignee or sublessee
of Tenant, is hereby granted two (2) option(s), of three (3) years each to renew
                             ------------------------------------------
this Lease. Provided Tenant is not in default at the time of exercise of the
option or, again on commencement of the renewal term, Tenant may exercise each
option upon written notice to Landlord given no earlier than one hundred eighty
(180) days and no later than one hundred fifty (150) days before the expiration
of the then current term. If Tenant fails to exercise the option within the time
frame set forth in the preceding sentence, the Tenant shall be deemed to have
elected not to exercise the option and this renewal option and all other
unexercised renewal options contained herein shall be deemed to have terminated;
time being of the essence in the exercise of such option. Each renewal term will
be on the same terms and condition as those contained in the Lease except as
follows:

     (a) there shall be no further rights to renew after the exercise of the
last of the renewal option(s) granted in this Exhibit;

     (b) any tenant improvement allowances, rental concessions or the like
granted by Landlord to Tenant in the initial Lease Term shall not be applicable
in the renewal term; and

     (c) the rental for the renewal term shall be the fair market rental rate
for the Premises based on the then prevailing market rental rate for properties
of equivalent quality, size, utility and location, taking into account a lease
for a lease term of that of the renewal term and with a tenant of the credit
standing of Tenant.

     Within fifteen (15) days of receipt of Tenant's notice electing to renew,
but no earlier than one hundred eighty (180) days before the expiration of the
then current term, Landlord will advise Tenant in writing of its determination
of the fair market rental rate for the renewal term in accordance with the
provisions of subpart (c), above. If Tenant elects to proceed, Tenant must
notify Landlord within the succeeding fifteen (15) days after receipt of
Landlord's notice setting forth the fair market rental rate for the renewal
term, and Landlord will cause an amendment to be prepared for execution by
Tenant, or if Tenant does not agree with Landlord's determination, then Tenant
may elect to withdraw its notice of exercise of the renewal option by delivering
written notice of such withdrawal to Landlord within the 15 day period, in which
event, this Lease shall expire at the end of the then current term. If Tenant
fails to notify Landlord of an election to withdraw within the 15-day period,
then Tenant shall be bound by the exercise of the renewal option and the rental
for the renewal term will be at the rate set forth by Landlord in its notice to
Tenant. If Tenant elected to proceed with the renewal option or is deemed to
have done so, then Tenant shall execute and return to Landlord the amendment
within ten (10) days of the date delivered to Tenant.<PAGE>

================================================================================

                                                                     Exhibit 4.1

                              Portal Software, Inc.

                                       To

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

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

                                    INDENTURE

                            DATED AS OF _______, 2002

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

                                 DEBT SECURITIES

================================================================================

<PAGE>

                              PORTAL SOFTWARE, INC.
                                 DEBT SECURITIES
                             CROSS REFERENCE SHEET*

     This Cross Reference Sheet shows the location in the Indenture of the
provisions inserted pursuant to Sections 310 - 318(a), inclusive, of the Trust
Indenture Act of 1939, as amended.

<TABLE>
<CAPTION>
TRUST INDENTURE ACT                                   SECTIONS OF INDENTURE
-------------------                                   ---------------------
<S>                                                            <C>
   ss.310(a)(1) ............................................   9.08
         (a)(2) ............................................   9.08
         (a)(3) ............................................   Inapplicable
         (a)(4) ............................................   Inapplicable
         (a)(5) ............................................   9.08
            (b) ............................................   9.07 and 9.09
            (c) ............................................   Inapplicable
      ss.311(a) ............................................   9.12
            (b) ............................................   9.12
            (c) ............................................   Inapplicable
      ss.312(a) ............................................   7.01 and 7.02
            (b) ............................................   7.02
            (c) ............................................   7.02
      ss.313(a) ............................................   7.03
            (b) ............................................   7.03
            (c) ............................................   7.03
            (d) ............................................   7.03
      ss.314(a) ............................................   7.04
         (a)(4) ............................................   1.01 and 6.07
            (b) ............................................   Inapplicable
         (c)(1) ............................................   13.05
         (c)(2) ............................................   13.05
         (c)(3) ............................................   Inapplicable
            (d) ............................................   Inapplicable
            (e) ............................................   13.05
            (f) ............................................   Inapplicable
      ss.315(a) ............................................   9.01
            (b) ............................................   8.08
            (c) ............................................   9.01
            (d) ............................................   9.01
            (e) ............................................   8.07
      ss.316(a) ............................................   1.01 (a)(1)(A)
                                                               8.01 and 8.06 (a)(1)(B)
                                                               8.01
         (a)(2) ............................................   Inapplicable
            (b) ............................................   8.09
</TABLE>

<PAGE>

TRUST INDENTURE ACT                             SECTIONS OF INDENTURE
-------------------                             ---------------------

           (c) .................................... 13.11 ss.317(a)(1)
                                                    8.02

        (a)(2) .................................... 8.02
           (b) .................................... 6.03
     ss.318(a) .................................... 13.08

     *The Cross Reference Sheet is not part of the Indenture.

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>

                                                                                       PAGE
                                                                                       ----
<S>                                                                                     <C>
Article I.    Definitions. ..........................................................     7

     Section 1.01. Certain Terms Defined. ...........................................     7

Article II.  The Securities. ........................................................    14

     Section 2.01. Designation and Amount of Securities. ............................    14
     Section 2.02. Form of Securities and Trustee's Certificate of Authentication. ..    16
     Section 2.03. Date and Denominations. ..........................................    16
     Section 2.04. Execution, Authentication and Delivery of Securities. ............    16
     Section 2.05. Registration of Transfer and Exchange. ...........................    17
     Section 2.06. Temporary Securities. ............................................    19
     Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities. ...............    19
     Section 2.08. Cancellation of Surrendered Securities. ..........................    20
     Section 2.09. Payment of Interest; Interest Rights Preserved. ..................    20
     Section 2.10. Persons Deemed Owners. ...........................................    21
     Section 2.11. Computation of Interest. .........................................    22
     Section 2.12. CUSIP Numbers. ...................................................    22

Article III.  Redemption Of Securities. .............................................    22

     Section 3.01. Applicability of Article. ........................................    22
     Section 3.02. Election to Redeem; Notice to Trustee. ...........................    22
     Section 3.03. Deposit of Redemption Price. .....................................    23
     Section 3.04. Securities Payable on Redemption Date. ...........................    23
     Section 3.05. Securities Redeemed in Part. .....................................    24

Article IV.   Defeasance and Covenant Defeasance. ...................................    24

     Section 4.01. Company's Option to Effect Defeasance or Covenant Defeasance. ....    24
     Section 4.02. Defeasance and Discharge. ........................................    24
     Section 4.03. Covenant Defeasance. .............................................    25
     Section 4.04. Conditions to Defeasance or Covenant Defeasance. .................    25
     Section 4.05. Deposited Money and U.S. Government Obligations to be Held in
                   Trust; Other Miscellaneous Provisions. ...........................    27
     Section 4.06. Reinstatement. ...................................................    27

Article V.    Particular Covenants Of The Company. ..................................    28

     Section 5.01. Payment of Principal, Premium and Interest on Securities. ........    28
     Section 5.02. Maintenance of Office or Agency. .................................    28
     Section 5.03. Money for Securities Payments to be Held in Trust. ...............    28
     Section 5.04. Payment of Taxes and other Claims. ...............................    29
     Section 5.05. Maintenance of Properties. .......................................    30
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                                             <C>
     Section 5.06. Existence. ..............................................................    30
     Section 5.07. Compliance with Laws. ...................................................    30
     Section 5.08. Statement by Officers as to Default. ....................................    30
     Section 5.09. Waiver of Certain Covenants. ............................................    30

Article VI.   Securities Holders' Lists And Reports By The Company And The Trustee. ........    31

     Section 6.01. Company to Furnish Trustee Names and Addresses of Holders. ..............    31
     Section 6.02. Preservation of Information; Communication to Holders. ..................    31
     Section 6.03. Reports by Trustee. .....................................................    31
     Section 6.04. Reports by Company. .....................................................    32

Article VII.  Default. .....................................................................    32

     Section 7.01. Event of Default. .......................................................    32
     Section 7.02. Covenant of Company to Pay to Trustee Whole Amount Due on
                   Securities on Default in Payment of Interest or Principal; Suits for
                   Enforcement by Trustee. .................................................    34
     Section 7.03. Application of Money Collected by Trustee. ..............................    35
     Section 7.04. Limitation on Suits by Holders of Securities. ...........................    36
     Section 7.05. Rights and Remedies Cumulative; Delay or Omission in Exercise
                   of Rights Not a Waiver of Event of Default. .............................    36
     Section 7.06. Rights of Holders of Majority in Principal Amount of Outstanding
                   Securities to Direct Trustee. ...........................................    37
     Section 7.07. Requirement of an Undertaking to Pay Costs in Certain Suits
                   Under the Indenture or Against the Trustee. .............................    37
     Section 7.08. Notice of Defaults. .....................................................    37
     Section 7.09. Unconditional Right of Holders to Receive Principal, Premium,
                   and Interest. ...........................................................    38
     Section 7.10. Restoration of Rights and Remedies. .....................................    38
     Section 7.11. Trustee May File Proofs of Claims. ......................................    38

Article VIII. Concerning The Trustee. ......................................................    38

     Section 8.01. Certain Duties and Responsibilities. ....................................    38
     Section 8.02. Certain Rights of Trustee. ..............................................    39
     Section 8.03. Not Responsible for Recitals or Issuance of Securities. .................    39
     Section 8.04. May Hold Securities. ....................................................    40
     Section 8.05. Money Held in Trust. ....................................................    40
     Section 8.06. Compensation and Reimbursement. .........................................    40
     Section 8.07. Disqualification; Conflicting Interests. ................................    41
     Section 8.08. Corporate Trustee Required Eligibility. .................................    41
     Section 8.09. Resignation and Removal; Appointment of Successor. ......................    41
     Section 8.10. Acceptance of Appointment by Successor. .................................    42
     Section 8.11. Merger, Conversion, Consolidation, or Succession to Business. ...........    43
     Section 8.12. Preferential Collection of Claims Against Company. ......................    44
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                                             <C>
     Section 8.13.  Appointment of Authenticating Agent. ...................................    44
     Section 8.14.  Trustee's Application for Instruction from the Company. ................    45

Article IX.  Supplemental Indentures And Certain Actions. ..................................    46

     Section 9.01.  Purposes for which Supplemental Indentures may be Entered into
                    Without Consent of Holders. ............................................    46
     Section 9.02.  Modification of Indenture with Consent of Holders of at Least a
                    Majority in Principal Amount of Outstanding Securities. ................    47
     Section 9.03.  Execution of Supplemental Indentures. ..................................    48
     Section 9.04.  Effect of Supplemental Indentures. .....................................    48
     Section 9.05.  Conformity with Trust Indenture Act. ...................................    48
     Section 9.06.  Reference in Securities to Supplemental Indentures. ....................    48

Article X.   Consolidation, Merger, Sale, Or Transfer. .....................................    48

     Section 10.01. Consolidations and Mergers of Company and Sales Permitted Only
                    on Certain Terms. ......................................................    48

Article XI.  Satisfaction And Discharge Of Indenture. ......................................    49

     Section 11.01. Satisfaction and Discharge of Indenture. ...............................    49
     Section 11.02. Application of Trust Money. ............................................    50

Article XII. Miscellaneous Provisions. .....................................................    50

     Section 12.01. Successors and Assigns of Company Bound by Indenture. ..................    50
     Section 12.02. Service of Required Notice to Trustee and Company. .....................    50
     Section 12.03. Service of Required Notice to Holders; Waiver. .........................    50
     Section 12.04. Indenture and Securities to be Construed in Accordance with the
                    Laws of the State of New York. .........................................    51
     Section 12.05. Compliance Certificates and Opinions. ..................................    51
     Section 12.06. Form of Documents Delivered to Trustee. ................................    51
     Section 12.07. Payments Due on Non-Business Days. .....................................    51
     Section 12.08. Provisions Required by Trust Indenture Act to Control. .................    52
     Section 12.09. Invalidity of Particular Provisions. ...................................    52
     Section 12.10. Indenture may be Executed in Counterparts. .............................    52
     Section 12.11. Acts of Holders; Record Dates. .........................................    52
     Section 12.12. Effect of Headings and Table of Contents. ..............................    54
     Section 12.13. Benefits of Indenture. .................................................    54
</TABLE>

                                      iii

<PAGE>

          Indenture, dated as of ________, 2002, among Portal Software, Inc., a
corporation duly organized and existing under the laws of the State of Delaware
(the "Company") and [_____________], [a [banking] corporation duly organized and
      -------
existing under the laws of the State of ___________ ][a national banking
association] (the "Trustee").
                   -------

                             Recitals of the Company

          A.   The Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its secured or
unsecured debentures, notes, and other evidences of indebtedness (the
"Securities"), to be issued in one or more series up to such principal amount or
 ----------
amounts as may be from time to time authorized in accordance with the terms of
this Indenture provided.

          B.   The Securities of each series will be in substantially the form
set forth below, or in such other form as may be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions, and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers, or other marks of identification and such legends or endorsements
placed thereon as may be required to comply with the rules of any securities
exchange or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution of the Securities.

                           [Form of Face of Security]

                  [Insert any legend required by the Securities
                      Act and the regulations thereunder.]

                   [Insert any legend required by the Internal
                        Revenue Code and the regulations
                                  thereunder.]

                              Portal Software, Inc.

                              ____________________

                                                               CUSIP No._______
No. ___________                                                        $_______

          Portal Software, Inc., a corporation duly organized and existing under
the laws of Delaware (hereinafter called the "Company," which term includes any
                                              -------
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to ___________________________, or registered
assigns, the principal sum on $______________ on ___________________________ [if
the Security is to bear interest prior to Maturity, insert: ", and to pay
interest thereon from _________________ or from the most recent Interest Payment
Date to which interest has been paid or duly provided for, on _____________ and
________________ of each year, commencing on _____________, the rate of __% per
annum, until the principal hereof is paid or made available for payment [IF
APPLICABLE, INSERT:

                                       1

<PAGE>

", and at the rate of __% per annum on any overdue principal and premium and on
any overdue installment of interest"]. The interest so payable, and punctually
paid or duly provided for, on any Interest Payment Date will, as provided in
such Indenture, be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest, which will be the ___________________ or
________________ (whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date. Any such interest not so punctually paid
or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at the close of
business on a Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice whereof will be given to Holders of Securities
of this series not less than 10 calendar days prior to such Special Record Date,
or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities of this series
may be listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture"].

          [If the Security is not to bear interest prior to Maturity, insert:
"The principal of this Security will not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption, or at Stated
Maturity thereof, and in such case any overdue principal of this Security will
bear interest at the rate of __% per annum which will accrue from the date of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal will be payable on demand.
Any such interest on any overdue principal that is not so paid on demand will
bear interest at the rate of __% per annum which will accrue from the date of
such demand for payment to the date payment of such interest has been made or
duly provided for, and such interest will also be payable on demand."]

          Payment of the principal of (and premium, if any) and [IF APPLICABLE,
INSERT: "any such"] interest on this Security will be made at the office or
agency of the Company maintained for the purpose in _____________________, in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts [IF APPLICABLE, INSERT:
"; PROVIDED, HOWEVER, that at the option of the Company payment of interest may
   --------  -------
be made by check mailed to the address of the Person entitled thereto as such
address appears in the Security Register"].

          REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS SET FORTH ON THE
REVERSE HEREOF. SUCH PROVISIONS WILL FOR ALL PURPOSES HAVE THE SAME EFFECT AS
THOUGH FULLY SET FORTH IN THIS PLACE.

          This Security will not be valid or become obligatory for any purpose
until the certificate of authentication herein has been signed manually by the
Trustee under the Indenture referred to on the reverse side hereof.

                                       2

<PAGE>

          In Witness Whereof, this instrument has been duly executed in
accordance with the Indenture.

                                                Portal Software, Inc.

                                                By:_____________________________
Attest:

By:____________________________

                          [Form of Reverse of Security]

                              Portal Software, Inc.

          This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities") issued and to be issued in one or more
                            ----------
series under an Indenture, dated as of _______, 2002 (herein called the
"Indenture"), between the Company and [_____________] as Trustee (herein called
 ---------
the "Trustee," which term includes any successor trustee under the Indenture),
     -------
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights, limitations of rights, duties,
and immunities thereunder of the Company, the Trustee, and the Holders of the
Securities and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [IF APPLICABLE, INSERT: ", limited in aggregate principal amount
to $____"].

          [IF APPLICABLE, INSERT: "The Securities of this series are subject to
redemption upon not less than 30 calendar days' notice by mail, at any time [IF
APPLICABLE, INSERT: "on or after ______________, __" OR OTHER APPLICABLE
REDEMPTION TRIGGERING CONDITIONS], as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [IF APPLICABLE, INSERT: "on or before __________,
__% [or IF APPLICABLE, INSERT REDEMPTION PRICE PERCENTAGE CORRESPONDING TO
APPLICABLE REDEMPTION TRIGGERING CONDITIONS], and if redeemed"] during the
12-month period beginning ______ of the years indicated,

               Year                                Redemption Price
----------------------------------   -------------------------------------------

and thereafter at a Redemption Price _______% of the principal amount, together
in the case of any such redemption with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of

                                       3

<PAGE>

such Securities, or one or more Predecessor Securities, of record at the close
of business on the relevant Record Dates referred to on the face hereof, all as
provided in the Indenture."]

          [IF APPLICABLE, INSERT: "In the event of redemption of this Security
in part only, a new Security or Securities of this series and of like tenor for
the unredeemed portion hereof will be issued in the name of the Holder hereof
upon the cancellation hereof."]

          [IF APPLICABLE, INSERT: "The Indenture contains provisions for
defeasance at any time of (a) the entire indebtedness evidenced by this Security
or (b) certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the
Indenture."]

          [If the Security is not an Original Issue Discount Security, insert:
"If an Event of Default with respect to Securities of this series shall occur
and be continuing, the principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture."]

          [If the Security is an Original Issue Discount Security, insert: "If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount will be equal to [INSERT FORMULA FOR DETERMINING THE
AMOUNT]. Upon payment (a) of the amount of principal so declared due and payable
and (b) of interest on any overdue principal and overdue interest, all of the
Company's obligations in respect of the payment of the principal of and
interest, if any, on the Securities of this series will terminate."]

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

          As provided in and subject to the provisions of the Indenture, the
Holder of this Security will not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered or furnished the

                                       4

<PAGE>

Trustee reasonable indemnity, and the Trustee shall not have received from the
Holders of a majority in principal amount of Securities of this series at the
time Outstanding a direction inconsistent with such request and shall have
failed to institute such proceeding for 60 calendar days after receipt of such
notice, request, and offer of indemnity. The foregoing will apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective
due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security
or of the Indenture will, without the consent of the Holder hereof, alter or
impair the obligation of the Company, which is otherwise absolute and
unconditional, to pay the principal of and any premium and interest on this
Security at the times, place, and rate, and in the coin or currency, herein
prescribed.

          As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registerable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of
this series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

          The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000 and integral multiples thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

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

          Prior to due presentment of this 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 this Security is registered as the owner
hereof for all purposes, whether or not this Security shall be overdue, and
neither the Company, the Trustee, nor any such agent will be affected by notice
to the contrary.

          All terms used in this Security that are defined in the Indenture will
have the respective meanings assigned to them in the Indenture.

          C.   The Trustee's certificate of authentication will be in
substantially the following form:

[Form of Trustee's Certificate Of Authentication for Securities] Trustee's
Certificate of Authentication

                                       5

<PAGE>

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

                                          ______________________________________
                                          as Trustee

Dated:________________                    By:___________________________________
                                             Authorized Signatory

          D.   Every Global Security authenticated and delivered hereunder will
bear a legend in substantially the following form or in such other form as may
be established by or pursuant to a Board Resolution or in one or more
supplemental indentures hereto:

                     [Form of Legend for Global Securities]

          This Security is a Global Security within the meaning of the Indenture
hereinafter referred to and is registered in the name of a Depositary or a
nominee thereof. This Security may not be transferred to, or registered or
exchanged for Securities registered in the name of, any Person other than the
Depositary or a nominee thereof, and no such transfer may be registered, except
in the limited circumstances described in the Indenture. Every Security
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, this Security will be a Global Security subject to the
foregoing, except in such limited circumstances.

          E.   All acts and things necessary to make the Securities, when the
Securities have been executed by the Company and authenticated by the Trustee
and delivered as provided in this Indenture, the valid, binding, and legal
obligations of the Company and to constitute these presents a valid indenture
and agreement according to its terms, have been done and performed, and the
execution and delivery by the Company of this Indenture and the issue hereunder
of the Securities have in all respects been duly authorized; and the Company, in
the exercise of legal right and power in it vested, is executing and delivering
this Indenture and proposes to make, execute, issue, and deliver the Securities.

          Now, Therefore, this Indenture Witnesseth:

          In order to declare the terms and conditions upon which the Securities
are authenticated, issued, and delivered, and in consideration of the premises
and of the purchase and acceptance of the Securities by the Holders thereof, it
is mutually covenanted and agreed, for the equal and proportionate benefit of
the respective Holders from time to time of the Securities or of a series
thereof, as follows:

                                       6

<PAGE>

                             Article I. Definitions.

Section 1.01.  Certain Terms Defined.

               (a)  The terms defined in this Section 1.01 (except as herein
                                              ------------
otherwise expressly provided or unless the context of this Indenture otherwise
requires) for all purposes of this Indenture and of any indenture supplemental
hereto have the respective meanings specified in this Section 1.01 with respect
                                                      ------------
to the Securities of any series. All other terms used in this Indenture that are
defined in the Trust Indenture Act, either directly or by reference therein
(except as herein otherwise expressly provided or unless the context of this
Indenture otherwise requires), have the respective meanings assigned to such
terms in the Trust Indenture Act as in force at the date of this Indenture as
originally executed.

               "Act": The term "Act," when used with respect to any Holder, has
                ---
the meaning set forth in Section 12.11.
                         -------------

               "Affiliate": The term "Affiliate" means, with respect to a
                ---------
particular Person, any Person that, directly or indirectly, is in control of, is
controlled by, or is under common control with, such Person. For purposes of
this definition, control of a Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative of the foregoing.

               "Authenticating Agent": The term "Authenticating Agent" means any
                --------------------
Person authorized by the Trustee pursuant to Section 8.13 to act on behalf of
                                             ------------
the Trustee to authenticate Securities of one or more series.

               "Board of Directors": The term "Board of Directors" means the
                ------------------
Board of Directors of the Company or a duly authorized committee of such Board.

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

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

               "Capital Lease": The term "Capital Lease" means, with respect to
                -------------
any Person, any lease of property (whether real, personal, or mixed) by such
Person or its Subsidiaries as lessee that would be capitalized on a balance
sheet of such Person or its Subsidiaries prepared in conformity with GAAP, other
than, in the case of such Person or its Subsidiaries, any such lease under which
such Person or any of its Subsidiaries is the lessor.

               "Capital Lease Obligations": The term "Capital Lease Obligations"
                -------------------------
means, with respect to any Person, the capitalized amount of all obligations of
such Person and its

                                       7

<PAGE>

Subsidiaries under Capital Leases, as determined on a consolidated basis in
conformity with GAAP.

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

               "Common Stock": The term "Common Stock" means the common stock of
                ------------
the Company, subject, for purposes of Securities of any particular series, to
such provisions in respect of such defined term as may be applicable under the
particular terms of such Securities or supplemental indenture applicable thereto
as contemplated in Section 2.01.
                   ------------

               "Company": The term "Company" means Portal Software, Inc., an
                -------
Delaware corporation, until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter "Company" will
mean such successor Person, subject, for purposes of Securities of any
particular series, to such provisions. In respect of such defined terms as may
be applicable under the particular terms of such Securities or supplemental
indenture applicable thereto as contemplated in Section 2.01.
                                                ------------

               "Company Request" or "Company Order": The term "Company Request"
                ---------------      -------------
or "Company Order" means a written request or order, respectively, signed in the
name of the Company by the Chairman of the Board of Directors, the Chief
Executive Officer, the Chief Financial Officer, the President, any Executive
Vice President or any Vice President, the Treasurer, any Assistant Treasurer,
the Secretary, or any Assistant Secretary of the Company, and delivered to the
Trustee.

               "Corporate Trust Office": "Corporate Trust Office" means the
                ----------------------
office of the Trustee at which at any particular time its corporate trust
business shall be administered, which office at the date of initial execution of
this Indenture is [_______________________], Attention: [__________________].

               "Covenant Defeasance": The term "Covenant Defeasance" has the
                -------------------
meaning set forth in Section 4.03.
                     ------------

               "Default": The term "Default" means any event which, with notice
                -------
or passage of time or both, would constitute an Event of Default.

               "Defaulted Interest": The term "Defaulted Interest" has the
                ------------------
meaning set forth in Section 2.09.
                     ------------

               "Defeasance": The term "Defeasance" has the meaning set forth in
                ----------
Section 4.02.
------------

               "Defeasible Series": The term "Defeasible Series" has the meaning
                -----------------
set forth in Section 4.01.
             ------------

                                       8

<PAGE>

               "Depositary": The term "Depositary" means, with respect to
                ----------
Securities of any series issuable in whole or in part in the form of one or more
Global Securities, a clearing agency registered under the Exchange Act that is
designated to act as Depositary for such Securities as contemplated by Section
                                                                       -------
2.01.
----

               "Event of Default": The term "Event of Default" has the meaning
                ----------------
set forth in Section 7.01(a).
             ---------------

               "Exchange Act": The term "Exchange Act" means the Securities
                ------------
Exchange Act of 1934, as amended, or any similar federal statute, and the rules
and regulations of the Commission thereunder, as the same may be in effect from
time to time.

               "GAAP": The term "GAAP" means generally accepted accounting
                ----
principles in the United States of America as in effect from time to time set
forth in the opinions and pronouncements of the Accounting Principles Board and
The American Institute of Certified Public Accountants and the statements and
pronouncements of the Financial Accounting Standards Board, or in such other
statements by any successor entity as may be in general use by significant
segments of the accounting profession, which are applicable to the circumstances
as of the date of determination.

               "Global Security": The term "Global Security" means a Security
                ---------------
that evidences all or part of the Securities of any series and is authenticated
and delivered to, and registered in the name of, the Depositary for such
Securities or a nominee thereof.

               "Holder": The term "Holder" means a person in whose name a
                ------
particular Security is registered in the Security Register.

               "Indebtedness": The term "Indebtedness" means, as applied to any
                ------------
Person, without duplication: (a) all obligations of such Person for borrowed
money; (b) all obligations of such Person for the deferred purchase price of
property or services (other than property and services purchased, and expense
accruals and deferred compensation items arising, in the ordinary course of
business); (c) all obligations of such Person evidenced by notes, bonds,
debentures, mandatorily redeemable preferred stock, or other similar instruments
(other than performance, surety, and appeals bonds arising in the ordinary
course of business); (d) all payment obligations created or arising under any
conditional sale, deferred price, or other title retention agreement with
respect to property acquired by such Person (unless the rights and remedies of
the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property); (e) any Capital Lease Obligation of such
Person; (f) all reimbursement, payment, or similar obligations, contingent or
otherwise, of such Person under acceptance, letter of credit, or similar
facilities (other than letters of credit in support of trade obligations or
incurred in connection with public liability insurance, workers' compensation,
unemployment insurance, old-age pensions, and other social security benefits
other than in respect of employee benefit plans subject to ERISA); (g) all
obligations of such Person, contingent or otherwise, under any guarantee by such
Person of the obligations of another Person of the type referred to in clauses
(a) through (f) above; and (h) all obligations referred to in clauses (a)
through (f) above secured by (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured by) any mortgage or
security interest in

                                       9

<PAGE>

property (including without limitation accounts, contract rights, and general
intangibles) owned by such Person and as to which such Person has not assumed or
become liable for the payment of such obligations other than to the extent of
the property subject to such mortgage or security interest; provided, however,
                                                            --------  -------
that Indebtedness of the type referred to in clauses (g) and (h) above shall be
included within the definition of "Indebtedness" only to the extent of the least
of: (i) the amount of the underlying Indebtedness referred to in the applicable
clause (a) through (f) above; (ii) in the case of clause (g), the limit on
recoveries, if any, from such Person under obligations of the type referred to
in clause (g) above; and (iii) in the case of clause (h), the aggregate value
(as determined in good faith by the board of directors or similar governing body
of such Person) of the property of such Person subject to such mortgage or
security interest.

               "Indenture": The term "Indenture" means this Indenture, as this
                ---------
Indenture may be amended, supplemented, or otherwise modified from time to time,
including, for all purposes of this Indenture and any indenture supplemental
hereto, the provisions of the Trust Indenture Act that are deemed to be a part
of and govern this Indenture and any such supplemental indenture, respectively.
The term "Indenture" also includes the terms of particular series of Securities
established in accordance with Section 2.01.
                               ------------

               "Interest": The term "interest," (i) when used with respect to an
                --------
Original Issue Discount Security which by its terms bears interest only after
Maturity, means interest which accrues from and after and is payable after
Maturity and (ii) when used with respect to any Security, means the amount of
all interest accruing on such Security, including any default interest and any
interest that would have accrued after any Event of Default but for the
occurrence of such Event of Default, whether or not a claim for such interest
would be otherwise allowable under applicable law.

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

               "Material Adverse Effect": The term "Material Adverse Effect"
                -----------------------
means a material adverse effect on the business, assets, financial condition or
results of operations of the Company (taken together with its Subsidiaries as a
whole).

               "Maturity": The term "Maturity," when used with respect to any
                --------
Security, means the date on which the principal of that Security or an
installment of principal becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for
redemption, or otherwise.

               "Notice of Default": The term "Notice of Default" means a written
                -----------------
notice of the kind set forth in Section 7.01(a)(iii).
                                --------------------

               "Officer's Certificate": The term "Officer's Certificate" means a
                ---------------------
certificate executed on behalf of the Company by a Responsible Officer, and
delivered to the Trustee.

               "Opinion of Counsel": The term "Opinion of Counsel" means an
                ------------------
opinion in writing signed by legal counsel, who, subject to any express
provisions hereof, may be an employee of or counsel for the Company or any
Subsidiary, reasonably acceptable to the Trustee.

                                       10

<PAGE>

               "Original Issue Discount Security": The term "Original Issue
                --------------------------------
Discount Security" means any Security which provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 7.01(b).
                                                 ---------------

               "Outstanding": The term "Outstanding" means, when used with
                -----------
reference to Securities as of a particular time, all Securities theretofore
issued by the Company and authenticated and delivered by the Trustee under this
Indenture, except: (a) Securities theretofore canceled by the Trustee or
delivered to the Trustee for cancellation, (b) Securities for the payment or
redemption of which money in the necessary amount has been theretofore deposited
with the Trustee or any Paying Agent (other than the Company) in trust or set
aside and segregated in trust by the Company (if the Company is acting as its
own Paying Agent) for the Holders of such Securities; provided that, if such
                                                      --------
Securities are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor satisfactory to the Trustee has
been made, and (c) Securities in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee proof satisfactory to it that such Securities are held
by a bona fide purchaser in whose hands such Securities are valid obligations of
the Company; provided, however, that in determining whether the Holders of the
             --------  -------
requisite principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent, or waiver hereunder, (i) the
principal amount of an Original Issue Discount Security that will be deemed to
be Outstanding will be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof to such date pursuant to Section 7.01(b), (ii) the principal amount of a
                                 ---------------
Security denominated in one or more foreign currencies or currency units will be
the U.S. dollar equivalent, determined in the manner contemplated by Section
                                                                     -------
2.01 on the date of original issuance of such Security, of the principal amount
----
(or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent on the date of original issuance of such Security of the amount
determined as provided in clause (i) above) of such Security, and (iii)
Securities owned by the Company or any other obligor upon the Securities or any
Affiliate of the Company or of such other obligor will be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee will be
protected in 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 will be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Securities and that the pledgee is not the
Company or any other obligor upon the Securities or any Affiliate of the Company
or of such other obligor.

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

               "Person": The term "Person" means any individual, partnership,
                ------
corporation, limited liability company, joint stock company, business trust,
trust, unincorporated association, joint venture, or other entity, or government
or political subdivision or agency thereof.

                                       11

<PAGE>

               "Place of Payment": The term "Place of Payment," when used with
                ----------------
respect to the Securities of any series, means the place or places specified for
the payment of the principal of, and any premium and interest on, the Securities
of that series as contemplated by Section 2.01.
                                  ------------

               "Predecessor Security": The term "Predecessor Security," when
                --------------------
used with respect to any particular Security, means every previous Security
evidencing all or a portion of the same debt as that evidenced by such Security;
and, for the purposes of this definition, any Security authenticated and
delivered under Section 2.07 in exchange for or in lieu of a mutilated,
                ------------
destroyed, lost, or stolen Security will be deemed to evidence the same debt as
the mutilated, destroyed, lost, or stolen Security.

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

               "Redemption Price": The term "Redemption Price," when used with
                ----------------
respect to any Security to be redeemed, means the price (including premium, if
any) at which it is to be redeemed pursuant to this Indenture.

               "Regular Record Date": The term "Regular Record Date" for the
                -------------------
interest payable on any Interest Payment Date on the Securities of any series
means the date specified for that purpose as contemplated by Section 2.01.
                                                             ------------

               "Responsible Officer": The term "Responsible Officer," when used
                -------------------
(a) with respect to the Company, means the Chairman of the Board of Directors,
the Chief Executive Officer, the Chief Financial Officer, the President, any
Executive Vice President or any Vice President, the Treasurer, any Assistant
Treasurer, the Secretary, or any Assistant Secretary of the Company and (b) with
respect to the Trustee, means the President, any Vice President, any Assistant
Vice President, any Senior Trust Officer, any Trust Officer or Assistant Trust
Officer or any other officer of the Trustee customarily performing functions
similar to those performed by any of the above-designated officers and also
means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his knowledge of and familiarity with
the particular subject.

               "Securities": The term "Securities" has the meaning set forth in
                ----------
the first recital of this Indenture and more particularly means any Securities
authenticated and delivered under this Indenture.

               "Securities Act": The term "Securities Act" mean the Securities
                --------------
Act of 1933, as amended, and the rules and regulations promulgated thereunder,
as in effect from time to time.

               "Security Register" and "Security Registrar": The terms "Security
                -----------------       ------------------
Register" and "Security Registrar" have the respective meanings set forth in
Section 2.05.
------------

               "Special Record Date": The term "Special Record Date" for the
                -------------------
payment of any Defaulted Interest means a date fixed by the Trustee pursuant to
Section 2.09.
------------

                                       12

<PAGE>

     "Stated Maturity": The term "Stated Maturity," when used with respect to
      ---------------
any Security, means the date specified in such Security as the fixed date on
which the principal (or any installment thereof) of such Security is due and
payable or on which any installment of interest thereon is due and payable as
the case may be as the context requires.

     "Subsidiary": The term "Subsidiary" means, with respect to any Person, any
      ----------
corporation, partnership, or other business entity of which, in the case of a
corporation, more than 50% of the issued and outstanding capital stock having
ordinary voting power to elect a majority of the board of directors of such
corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation has or might have voting power upon the
occurrence of any contingency), or, in the case of any partnership or other
legal entity, more than 50% of the ordinary equity capital interests, is at the
time directly or indirectly owned or controlled by such Person, by such Person
and one or more of its other Subsidiaries, or by one or more of such Person's
other Subsidiaries.

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

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

     "U.S. Government Obligation": The term "U.S. Government Obligation" means
      --------------------------
(a) any security that is (i) a direct obligation of the United States of America
for the payment of which the full faith and credit of the United States of
America is pledged or (ii) an obligation of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, which, in either case (i) or (ii),
is not callable or redeemable at the option of the issuer thereof and (b) any
depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any U.S. Government Obligation
specified in clause (a), which U.S. Government Obligation is held by such
custodian for the account of the holder of such depositary receipt, or with
respect to any specific payment of principal of or interest on any such U.S.
Government Obligation, 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 depositary receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of principal or interest
evidenced by such depositary receipt.

     "Vice President": The term "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."

                                       13

<PAGE>

         (b)  The words "Article" and "Section" refer to an Article and Section,
                         -------       -------
respectively, of this Indenture as originally executed. The words "herein",
"hereof," and "hereunder" and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section, or other
subdivision. Certain terms used principally in Articles V, VI, and IX are
defined in those Articles. Terms in the singular include the plural and terms in
the plural include the singular.

         (c)  All accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP.

                           Article II. The Securities.

Section 2.01. Designation and Amount of Securities.

         (a)  The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.

         (b)  The Securities may be issued in one or more series. There will be
established in or pursuant to a Board Resolution and, subject to Section 2.04,
                                                                 ------------
set forth or determined in the manner provided in an Officer's Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series: (i) the title of the Securities of the series
(which will distinguish the Securities of the series from Securities of any
other series); (ii) any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in the exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 9.06 and except for any
                   ------------------------------     ----
Securities which, pursuant to Section 2.04, are deemed never to have been
                              ------------
authenticated and delivered hereunder); (iii) the Person to whom any interest on
a Security of the series will be payable, if other than the Person in whose name
that Security (or one or more Predecessor Securities) is registered at the close
of business on the Regular Record Date for such interest; (iv) the date or dates
on which the principal of the Securities of the series is payable; (v) the rate
or rates at which the Securities of the series will bear interest, if any, the
date or dates from which such interest will accrue, the Interest Payment Dates
on which any such interest will be payable, and the Regular Record Date for any
interest payable on any Interest Payment Date; (vi) the place or places where
the principal of and any premium and interest on Securities of the series will
be payable; (vii) the period or periods within which, the price or prices at
which, and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Company; (viii) if other
than denominations of $1,000 and integral multiples thereof, the denominations
in which Securities of the series will be issuable; (ix) the currency,
currencies, or currency units in which payment of the principal of and any
premium and interest on any Securities of the series will be payable if other
than the currency of the United States of America and the manner of determining
the equivalent thereof in the currency of the United States of America for
purposes of the definition of "Outstanding" in Section 1.01; (x) if the amount
                               -----------     ------------
of payments of principal of or any premium or interest on any Securities of the
series may be determined with reference to an index, based upon a formula, or in
some other manner, the manner in which such amounts will be determined; (xi) if
the principal of or any

                                       14

<PAGE>

premium or interest on any Securities of the series is to be payable, at the
election of the Company or a Holder thereof, in one or more currencies or
currency units other than that or those in which the Securities are stated to be
payable, the currency, currencies, or currency units in which payment of the
principal of and any premium and interest on Securities of such series as to
which such election is made will be payable, and the periods within which and
the terms and conditions upon which such election is to be made; (xii) if other
than the principal amount thereof, the portion of the principal amount of
Securities of the series which will be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 7.01(b); (xiii) if applicable, that
                                    ---------------
the Securities of the series will be subject to either or both of Defeasance or
Covenant Defeasance as provided in Article IV, provided that no series of
                                   ----------
Securities that is convertible into Common Stock or convertible into or
exchangeable for any other securities or property will be subject to Defeasance
pursuant to Section 4.02 except as may otherwise be provided in the terms
            ------------
applicable to such Securities, under a supplemental Indenture applicable
thereto; (xiv) if and as applicable, that the Securities of the series will be
issuable in whole or in part in the form of one or more Global Securities and,
in such case, the Depositary or Depositaries for such Global Security or Global
Securities and any circumstances other than those set forth in Section 2.05 in
                                                               ------------
which any such Global Security may be transferred to, and registered and
exchanged for Securities registered in the name of, a Person other than the
Depositary for such Global Security or a nominee thereof and in which any such
transfer may be registered; (xv) if and as applicable, that the Securities of
the series will be subordinated and subject in right of payment to the prior
payment of other Indebtedness; (xvi) any provisions applicable to the Securities
of the series in respect of conversion or exchange of such Securities into or
for Common Stock, preferred stock or other securities or property (including,
without limitation, securities or property of Persons other than the Company);
(xvii) any provisions applicable to the Securities of the series in respect of
any collateral to secure such Securities or any guarantee applicable to such
Securities; (xviii) any guarantee applicable to the Securities and any
subordinated provisions or other limitations applicable to any such guarantee;
(xix) whether any "Event of Default" under Section 7.01, any covenant under
                                           ------------
Article V or any other provision (to the extent provided for hereunder) in
---------
addition to or instead of those set forth in this Indenture apply to the
Securities of the series; and (xx) any other terms of, or provisions, covenants,
rights or other matters applicable to, the series (which terms, provisions,
covenants, rights or other matters will not be inconsistent with the provisions
of this Indenture, except to an extent not prohibited by Section 9.01(e)).
                                                         ----------------

     (c) All Securities of any one series will be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to the
Board Resolution referred to below and (subject to Section 2.04) set forth or
                                                   ------------
determined in the manner provided in the Officer's Certificate referred to above
or in any such indenture supplemental hereto.

     (d) If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
will be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee concurrently with or prior to the delivery of the
Officer's Certificate setting forth the terms of the Series.

                                       15

<PAGE>

Section 2.02. Form of Securities and Trustee's Certificate of Authentication.

     (a)      The Securities of each series will be in substantially the form
set forth in or otherwise contemplated by the recitals to this Indenture, with
appropriate variations to reflect the specific terms of such series. If the form
of Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action will be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee concurrently with or prior to the delivery of the Company Order
contemplated by Section 2.04 for the authentication and delivery of such
                ------------
Securities.

     (b)      The definitive Securities will be printed, lithographed, or
engraved on steel engraved borders or may be produced in any other manner
permitted by the rules of any securities exchange on which the Securities may be
listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

     (c)      The Trustee's certificate of authentication will be in
substantially the form set forth or otherwise contemplated in the recitals to
this Indenture.

     (d)      Every Global Security authenticated and delivered hereunder will
bear a legend in substantially the form set forth otherwise contemplated in the
recitals to this Indenture.

Section 2.03. Date and Denominations.

              Each Security will be dated the date of its authentication. The
Securities of each series will be issuable only in registered form without
coupons in such denominations as may be specified as contemplated by Section
                                                                     -------
2.01. In the absence of any such specified denomination with respect to the
----
Securities of any series, the Securities of such series will be issuable in
denominations of $1,000 and integral multiples thereof.

Section 2.04. Execution, Authentication and Delivery of Securities.

     (a)      The Securities will be executed on behalf of the Company by the
Chairman of the Board of Directors, the Chief Executive Officer, the Chief
Financial Officer, the President, or any Executive Vice President or any Vice
President of the Company and attested by the Treasurer, the Secretary, any
Assistant Treasurer, or any Assistant Secretary of the Company under its
corporate seal. The signature of any of these officers on the Securities may be
manual or facsimile. The seal of the Company may be in the form of a facsimile
thereof and may be impressed, affixed, imprinted, or otherwise reproduced on the
Securities.

     (b)      Only such Securities bearing the Trustee's certificate of
authentication, signed manually by the Trustee, will be entitled to the benefits
of this Indenture or be valid or obligatory for any purpose. Such execution of
the certificate of authentication by the Trustee upon any Securities executed by
the Company will be conclusive evidence that the Securities so authenticated
have been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 2.08, for all
                                                        ------------
purposes of this Indenture such Security will be

                                       16

<PAGE>

deemed never to have been authenticated and delivered hereunder and will never
be entitled to the benefits of this Indenture.

     (c)      Securities bearing the manual or facsimile signatures of
individuals who have executed such Securities in accordance with Section 2.04(a)
                                                                 ---------------
will 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.

    (d)       At any time and from time to time after the execution and delivery
of this Indenture, the Company may deliver Securities of any series executed by
the Company to the Trustee for authentication, together with a Company Order for
the authentication and delivery of such Securities, and the Trustee in
accordance with the Company Order will authenticate and deliver such Securities
as provided in this Indenture and not otherwise. If the terms or form of the
Securities of the series have been established in or pursuant to one or more
Board Resolutions as permitted by Sections 2.01 and 2.02, in authenticating such
                                  -------------     ----
Securities, and accepting the additional responsibilities under this Indenture
in relation to such Securities, the Trustee will be entitled to receive, and
(subject to Section 8.01 and Section 8.02) will be fully protected in relying
            ------------     ------------
upon, an Opinion of Counsel stating (i) if the terms of such Securities have
been established by or pursuant to a Board Resolution as permitted by Section
                                                                      -------
2.01, that such terms have been established in conformity with the provisions of
----
this Indenture, (ii) if the form of such Securities has been established by or
pursuant to a Board Resolution as permitted by Section 2.02, that such form has
                                               ------------
been established in conformity with the provisions of this Indenture, and (iii)
that such Securities, when authenticated and delivered by the Trustee and issued
by the Company in the manner and subject to any conditions, assumptions,
qualifications or limitations specified in such Opinion of Counsel, will
constitute valid and binding obligations of the Company enforceable in
accordance with their terms.

     (e)      Notwithstanding the provisions of Sections 2.01 and 2.04(d), if
                                                -------------     -------
all Securities of a series are not to be originally issued at one time, it will
not be necessary to deliver the Officer's Certificate otherwise required
pursuant to Section 2.01 or the Company Order and Opinion of Counsel otherwise
            ------------
required pursuant to Section 2.04(d) at or prior to the time of authentication
                     ---------------
of each Security of such series if such documents are delivered at or prior to
the authentication upon original issuance of the first Security of such series
to be issued.

Section 2.05. Registration of Transfer and Exchange.

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

     (b)      Upon surrender for registration of transfer of any Security of any
series at the office or agency in a Place of Payment for that series, the
Company will execute, and the

                                       17

<PAGE>

Trustee will authenticate and deliver, in the name of the designated transferee
or transferees, one or more new Securities of the same series, of any authorized
denominations and of a like aggregate principal amount and tenor.

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

              (d)  Every Security presented or surrendered for registration
of transfer or exchange will (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument or instruments of
transfer, in form reasonably satisfactory to the Company and the Security
Registrar duly executed, by the Holder thereof or his attorney duly authorized
in writing. No service charge will be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 2.06, 3.05 or 9.06 not involving any transfer. The
                      ------------------    ----
Company will not be required (i) to issue, register the transfer of, or exchange
Securities of any series during a period beginning at the opening of business 15
calendar days before the mailing of a notice of redemption of Securities of that
series selected for redemption under Section 3.02(c) and ending at the close of
                                     ---------------
business on the day of such mailing or (ii) to register the transfer of or
exchange any Security so selected for redemption in whole or in part, except, in
the case of any Securities to be redeemed in part, the portion thereof not being
redeemed.

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

              (f)  Notwithstanding any other provision in this Indenture, no
Global Security may be transferred to, or registered or exchanged for Securities
registered in the name of, any Person other than the Depositary for such Global
Security or any nominee thereof, and no such transfer may be registered, unless
(i) such Depositary (A) notifies the Company that it is unwilling or unable to
continue as Depositary for such Global Security or (B) ceases to be a clearing
agency registered under the Exchange Act, (ii) the Company executes and delivers
to the Trustee a Company Order that such Global Security shall be so
transferable, registrable, and exchangeable, and such transfers shall be
registrable, (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities evidenced by such Global Security, or
(iv) there shall exist such other circumstances, if any, as have been specified
for this purpose as contemplated by Section 2.01. Notwithstanding any other
                                    ------------
provision in this Indenture, a Global Security to which the restriction set
forth in the preceding sentence shall have ceased to apply may be transferred
only to, and may be registered and exchanged for Securities registered only in
the name or names of, such Person or Persons as the Depositary for such Global
Security shall have directed and no transfer thereof other than such a transfer
may be registered. Every Security

                                  18

<PAGE>

authenticated and delivered upon registration of transfer of, or in exchange for
or in lieu of, a Global Security to which the restriction set forth in the first
sentence of this Section 2.05(f) shall apply, whether pursuant to this Section
                 ---------------                                       -------
2.05, Section 2.06, 2.07, 3.05, or 9.06 or otherwise, will be authenticated and
----  ------------------------     ----
delivered in the form of, and will be, a Global Security.

Section 2.06. Temporary Securities.

              Pending the preparation of definitive Securities of any series,
the Company may execute and register, and upon Company Order the Trustee will
authenticate and deliver, temporary Securities (printed, lithographed, or
typewritten) of any authorized denomination, and substantially in the form of
the definitive Securities but with such omissions, insertions, and variations as
may be appropriate for temporary Securities, all as may be determined by the
officers of the Company executing such Securities as evidenced by their
execution of such Securities; provided, however, that the Company will use
                              --------  -------
reasonable efforts to have definitive Securities of that series available at the
times of any issuance of Securities under this Indenture. Every temporary
Security will be executed and registered by the Company and be authenticated by
the Trustee upon the same conditions and in substantially the same manner, and
with like effect, as the definitive Securities. The Company will execute and
register and furnish definitive Securities of such series as soon as practicable
and thereupon any or all temporary Securities of such series may be surrendered
in exchange therefor at the office or agency of the Company in the Place of
Payment for that series, and the Trustee will authenticate and deliver in
exchange for such temporary Securities of such series one or more definitive
Securities of the same series, of any authorized denominations, and of a like
aggregate principal amount and tenor. Such exchange will be made by the Company
at its own expense and without any charge to the Holder therefor. Until so
exchanged, the temporary Securities of any series authenticated and delivered
hereunder will be entitled to the same benefits under this Indenture as
definitive Securities of the same series authenticated and delivered hereunder.

Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities.

              (a) If any mutilated Security is surrendered to the Trustee,
the Company will execute and the Trustee will authenticate and deliver in
exchange therefor a new Security of the same series and of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

              (b) If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss, or
theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them
harmless, then, in the absence of notice to the Company or the Trustee that
such Security has been acquired by a bona fide purchaser, the Company will
execute and the Trustee will authenticate and deliver, in lieu of any such
destroyed, lost, or stolen Security, a new Security of the same series and
of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

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

                                  19

<PAGE>

              (d) Upon the issuance of any new Security under this Section 2.07,
                                                                   ------------
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.

              (e) Every new Security of any series issued pursuant to this
Section 2.07 in exchange for any mutilated Security or in lieu of any destroyed,
------------
lost, or stolen Security will constitute an original additional contractual
obligation of the Company, whether or not the mutilated, destroyed, lost, or
stolen Security shall be at any time enforceable by anyone, and will be entitled
to all the benefits of this Indenture equally and proportionately with any and
all other Securities of that series duly issued hereunder.

              (f) The provisions of this Section 2.07 are exclusive and will
                                         ------------
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost, or stolen Securities.

Section 2.08. Cancellation of Surrendered Securities.

              All Securities surrendered for payment, redemption, registration
of transfer or exchange, will, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and will be promptly canceled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Securities previously authenticated hereunder which the Company
has not issued and sold, and all Securities so delivered will be promptly
canceled by the Trustee. No Securities will be authenticated in lieu of or in
exchange for any Securities canceled as provided in this Section 2.08, except as
                                                         ------------
expressly permitted by this Indenture. The Trustee shall destroy all canceled
Securities held by the Trustee and shall send a certificate of such destruction
to the Company.

Section 2.09. Payment of Interest; Interest Rights Preserved.

              (a) Except as otherwise provided as contemplated by Section 2.01
                                                                  ------------
with respect to any series of Securities, interest on any Security which is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date will be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest.

              (b) Any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called "Defaulted Interest") will forthwith cease to be payable to the
                ------------------
Holder on the relevant regular Record Date by virtue of having been such Holder,
and such Defaulted Interest may be paid by the Company together with interest
thereon (to the extent permitted by law) at the rate of interest applicable to
such Security, at its election in each case, as provided in clause (i) or (ii)
below:

                  (i) The Company may elect to make payment of any Defaulted
        Interest (and interest thereon, if any) to the Persons in whose names
        the Securities of such series (or their respective Predecessor
        Securities) are registered at the close of business

                                       20

<PAGE>

     on a Special Record Date for the payment of such Defaulted Interest, which
     will be fixed in the following manner. The Company will notify the Trustee
     in writing of the amount of Defaulted Interest (and interest thereon, if
     any) proposed to be paid on each Security of such series and the date of
     the proposed payment, and at the same time the Company will deposit with
     the Trustee an amount of money equal to the aggregate amount proposed to be
     paid in respect of such Defaulted Interest (and interest thereon, if any)
     or will make arrangements satisfactory to the Trustee for such deposit
     prior to the date of the proposed payment, such money when deposited to be
     held in trust for the benefit of the persons entitled to such Defaulted
     Interest (and interest thereon, if any) as in this clause (i) provided.
     Thereupon the Trustee will fix a Special Record Date for the payment of
     such Defaulted Interest (and interest thereon, if any) which will be not
     more than 15 calendar days and not less than 10 calendar days prior to the
     date of the proposed payment and not less than 10 calendar days after the
     receipt by the Trustee of the notice of the proposed payment. The Trustee
     will promptly notify the Company of such Special Record Date and, in the
     name and at the expense of the Company, will cause notice of the proposed
     payment of such Defaulted Interest and the Special Record Date therefor to
     be mailed, first-class postage prepaid, to each Holder of Securities of
     such series at his address as it appears in the Security Register, not less
     than 10 calendar days prior to such Special Record Date. Notice of the
     proposed payment of such Defaulted Interest (and interest thereon, if any)
     and the Special Record Date therefor having been so mailed, such Defaulted
     Interest will be paid to the Persons in whose names the Securities of such
     series (or their respective Predecessor Securities) are registered at the
     close of business on such Special Record Date and will no longer be payable
     pursuant to the following clause (ii).

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

              (c) Subject to the foregoing provisions of this Section 2.09, each
                                                              ------------
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security will carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

Section 2.10. Persons Deemed Owners.

              Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee, and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such Security for the purpose of receiving payment of principal of and any
premium and (subject to Section 2.09) any interest on such Security and for all
                        ------------
other purposes whatsoever, whether or not such Security shall be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
will be affected by notice to the contrary.

                                       21

<PAGE>

Section 2.11. Computation of Interest.

              Except as otherwise specified as contemplated by Section 2.01 for
                                                               ------------
Securities of any series, interest on the Securities of each series will be
computed on the basis of a 360-day year consisting of twelve 30-day months.

Section 2.12. CUSIP Numbers.

              In issuing any series of the Securities the Company may use CUSIP
numbers, if then generally in use, and thereafter with respect to such series,
the Trustee may use such numbers in any notice of redemption or exchange with
respect to such series 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 III. Redemption of Securities.

Section 3.01. Applicability of Article.

              Securities of any series which are redeemable before the final
Stated Maturity of the principal thereof will be redeemable in accordance with
their terms and (except as otherwise specified as contemplated by Section 2.01
                                                                  ------------
for Securities of any series) in accordance with this Article III.
                                                      -----------

Section 3.02. Election to Redeem; Notice to Trustee.

              (a) The election of the Company to redeem any Securities will be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company of less than all the Securities of any series, the Company will, at
least 45 calendar 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. In the case of any redemption of Securities prior to the expiration
of any restriction on such redemption provided in the terms of such Securities
or elsewhere in this Indenture, the Company will furnish the Trustee with an
Officer's Certificate evidencing compliance with such restriction.

              (b) Notice of redemption of Securities to be redeemed at the
election of the Company will be given by the Company or, at the Company's
request, by the Trustee in the name and at the expense of the Company and will
be irrevocable. Notice of redemption will be given by mail, first-class postage
prepaid, not less than 30 nor more than 60 calendar days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register. All notices of redemption will state (i) the Redemption
Date, (ii) the Redemption Price, (iii) if less than all the Outstanding
Securities of any series are to be redeemed, the identification (and, in the
case of partial redemption of any Securities, the principal amounts) of the
particular Securities to be redeemed, (iv) that on the Redemption Date

                                       22

<PAGE>

the Redemption Price will become due and payable upon each such Security to be
redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date, (v) the place or places where such Securities are to be
surrendered for payment of the Redemption Price, and (vi) the specific provision
of this Indenture pursuant to which such Securities are to be redeemed.

              (c) If less than all the Securities of any series are to be
redeemed, the particular Securities to be redeemed will be selected not more
than 60 calendar 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 may deem fair and appropriate and which may provide
for the selection for redemption of portions (equal to the minimum authorized
denomination for Securities of that series or any integral multiple thereof) of
the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series. The Trustee
will promptly notify the Company 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.

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

Section 3.03. Deposit of Redemption Price.

              Prior to 10:00 a.m. (New York City time) on any Redemption Date
specified in the notice of redemption given as provided in Section 3.02, the
                                                           ------------
Company will deposit with the Trustee or with a Paying Agent (or, if the Company
is acting as its own Paying Agent, segregate and hold in trust as provided in
Section 5.03) an amount of money sufficient to pay the Redemption Price of, and
------------
(except if the Redemption Date shall be an Interest Payment Date) any accrued
interest on, all of the Securities that are to be redeemed on that date.

Section 3.04. Securities Payable on Redemption Date.

              (a) Notice of redemption having been given as aforesaid, the
Securities so to be redeemed will, on the Redemption Date, become due and
payable at the Redemption Price therein specified, and from and after such date
(unless the Company defaults in the payment of the Redemption Price and accrued
interest) such Securities will cease to accrue interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security will
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
                        --------  -------
contemplated by Section 2.01, installments of interest whose Stated Maturity is
                ------------
on the Redemption Date will be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates in accordance with their terms and the provisions of
Section 2.09.
------------

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

                                       23

<PAGE>

Section 3.05.  Securities Redeemed in Part.

          Any Security that is to be redeemed only in part will be surrendered
at a Place of Payment therefor (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company will execute, and the Trustee will
authenticate and deliver to the Holder of such Security without service charge,
a new Security or Securities of the same series and of like tenor, of any
authorized denomination as requested by such Holder, in aggregate principal
amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

                 Article IV. Defeasance and Covenant Defeasance.

          Securities of a series may be defeased in accordance with their terms
and, unless a Board Resolution or an indenture supplemental hereto establishing
a series of Securities in accordance with Section 2.01 otherwise provides, in
                                          ------------
accordance with this Article.

Section 4.01.  Company's Option to Effect Defeasance or Covenant Defeasance.

          The Company may elect, at its option by Board Resolution at any time,
to have either Section 4.02 or Section 4.03 applied to the Outstanding
               ------------    ------------
Securities of any series designated pursuant to Section 2.01 as being defeasible
                                                ------------
pursuant to this Article IV (hereinafter called "Defeasible Series"), upon
                 ----------                      -----------------
compliance with the conditions set forth below in this Article IV, provided that
                                                       ----------  --------
Section 4.02 will not apply to any series of Securities that is convertible into
------------
Common Stock or convertible into or exchangeable for any other securities except
as may otherwise be provided in the terms applicable to such Securities under a
supplemental indenture applicable thereto.

Section 4.02.  Defeasance and Discharge.

          Upon the Company's exercise of the option provided in Section 4.01 to
                                                                ------------
have this Section 4.02 applied to the Outstanding Securities of any Defeasible
          ------------
Series and subject to the proviso of Section 4.01, the Company will be deemed to
                                     ------------
have been discharged from its obligations with respect to the Outstanding
Securities of such series as provided in this Section 4.02 on and after the date
                                              ------------
the conditions set forth in Section 4.04 are satisfied (hereinafter called
                            ------------
"Defeasance"). For this purpose, such Defeasance means that the Company will be
 ----------
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities of such series and to have satisfied all its other
obligations under the Securities of such series and this Indenture insofar as
the Securities of such series are concerned (and the Trustee, at the expense of
the Company, will execute proper instruments acknowledging the same), subject to
the following which will survive until otherwise terminated or discharged
hereunder: (a) the rights of Holders of Securities of such series to receive,
solely from the trust fund described in Section 4.04 and as more fully set forth
                                        ------------
in Section 4.04, payments in respect of the principal of and any premium and
   ------------
interest on such Securities of such series when payments are due, (b) the
Company's obligations with respect to the Securities of such series under
Sections 2.05, 2.06, 2.07, 5.02, 5.03, and 9.06, (c) the rights, powers, trusts,
-------------------------------------      ----
duties, and immunities of the Trustee hereunder, and (d) this Article IV.
                                                              ----------
Subject to compliance with this Article IV, the Company may
                                ----------

                                       24

<PAGE>

exercise its option provided in Section 4.01 to have this Section 4.02 applied
                                ------------              ------------
to the Outstanding Securities of any Defeasible Series notwithstanding the prior
exercise of its option provided in Section 4.01 to have Section 4.03 applied to
                                   ------------         ------------
the Outstanding Securities of such series.

Section 4.03.  Covenant Defeasance.

          Upon the Company's exercise of the option provided in Section 4.01 to
                                                                ------------
have this Section 4.03 applied to the Outstanding Securities of any Defeasible
          ------------
Series, (a) the Company will be released from its obligations under Section 5.04
                                                                    ------------
through 5.07, inclusive and the provisions of any indenture supplemental hereto
------------
so specified in such supplemental indenture, and (b) the occurrence of any event
specified in Section 7.01(a)(iv) (with respect to any of Sections 5.04 through
             -------------------                         ---------------------
5.07, inclusive, and the provisions of any indenture supplemental hereto so
----
specified in such supplemental indenture), and Sections 7.01(a)(vii) with
                                               ---------------------
respect to the provisions of any supplemental indenture supplemental hereto so
specified in such supplemental indenture will be deemed not to be or result in
an Event of Default, in each case with respect to the Outstanding Securities of
such series as provided in this Section on and after the date the conditions set
forth in Section 4.04 are satisfied (hereinafter called "Covenant Defeasance").
         ------------                                    -------------------
For this purpose, such Covenant Defeasance means that the Company may omit to
comply with and will have no liability in respect of any term, condition, or
limitation set forth in any such specified Section (to the extent specified
above in any such specified provision of such supplemental indenture), whether
directly or indirectly by reason of any reference elsewhere herein to any such
Section or provision or by reason of any reference in any such Section or
provision to any other provision herein or in any other document, but the
remainder of this Indenture and the Securities of such series will be unaffected
thereby.

Section 4.04.  Conditions to Defeasance or Covenant Defeasance.

          The following will be the conditions to application of either Section
                                                                        -------
4.02 or Section 4.03 to the Outstanding Securities of any Defeasible Series:
----    ------------

          (a)  The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee that satisfies the requirements
contemplated by Section 8.08 and agrees to comply with the provisions of this
                ------------
Article IV applicable to it) as trust funds in trust for the benefit of the
----------
Holders of Outstanding Securities of such series (i) cash in U.S. dollars, or
(ii) non-callable U.S. Government Obligations that through the scheduled payment
of principal and interest in respect thereof in accordance with their terms will
provide, without reinvestment, not later than one day before the due date of any
payment, money in an amount, or (iii) a combination thereof, in each case
sufficient, in the opinion of a nationally recognized firm of independent public
accountants, to pay and discharge, and which will be applied by the Trustee (or
any such other qualifying trustee) to pay and discharge, the principal of and
any premium and interest on the Securities of such series on the respective
Stated Maturities or on any earlier date or dates on which the Securities of
such series shall be subject to redemption and the Company shall have given the
Trustee irrevocable instructions satisfactory to the Trustee to give notice to
the Holders of the defeasance of the Securities of such series and the Company
shall have specified whether the Securities are being defeased to maturity or to
a particular redemption date, all in accordance with the terms of this Indenture
and the Securities of such series.

                                       25

<PAGE>

          (b) In the case of an election under Section 4.02, the Company shall
                                               ------------
have delivered to the Trustee an Opinion of Counsel (from a counsel who shall
not be an employee of the Company), reasonably acceptable to the Trustee, to the
effect that (i) the Company has received from, or there has been published by,
the Internal Revenue Service a ruling, or (ii) since the date 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 the Outstanding Securities of such series will not recognize gain,
loss or income for federal income tax purposes as a result of the deposit,
Defeasance, and discharge to be effected with respect to the Securities of such
series and will be subject to federal income tax on the same amount, in the same
manner, and at the same times as would be the case if such deposit, Defeasance,
and discharge were not to occur.

          (c) In the case of an election under Section 4.03, the Company shall
                                               ------------
have delivered to the Trustee an Opinion of Counsel (from a counsel who shall
not be an employee of the Company), reasonably acceptable to the Trustee, to the
effect that the Holders of the Outstanding Securities of such series will not
recognize gain or loss for federal income tax purposes as a result of the
deposit and Covenant Defeasance to be effected with respect to the Securities of
such series and will be subject to federal income tax on the same amount, in the
same manner, and at the same times as would be the case if such deposit and
Covenant Defeasance were not to occur.

          (d) Such Defeasance or Covenant Defeasance will not result in a breach
or violation of, or constitute a default under, any material agreement or
instrument (other than the Indenture but only with respect to the Outstanding
Securities of such series) to which the Company is a party or by which it is
bound.

          (e) The Company shall have delivered to the Trustee an Officer's
Certificate stating that such deposit of moneys, Government Securities, or a
combination thereof for the purpose of Defeasance and Covenant Defeasance was
not made by the Company with the intent of preferring the Holders of the
Outstanding Securities of such series over the other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding creditors of the
Company or others.

          (f) No Event of Default or event that (after notice or lapse of time
or both) would become an Event of Default shall have occurred and be continuing
at the time of such deposit or, with regard to any Event of Default or any such
event specified in Sections 7.01(a)(iv) and (v), at any time on or prior to the
                   ----------------------------
90th calendar day after the date of such deposit (it being understood that this
condition will not be deemed satisfied until after such 90th calendar day).

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

                                       26

<PAGE>

Section 4.05.  Deposited Money and U.S. Government Obligations to be Held in
               Trust; Other Miscellaneous Provisions.

          (a) Subject to the provisions of Section 5.03(e), all money and U.S.
                                           ---------------
Government Obligations (including the proceeds thereof) deposited with the
Trustee or other qualifying trustee (solely for purposes of this Section 4.05
                                                                 ------------
and Section 4.06, the Trustee and any such other trustee are referred to
    ------------
collectively as the "Trustee") pursuant to Section 4.04 in respect of the
                     -------               ------------
Securities of any Defeasible Series will be held in trust and applied by the
Trustee, in accordance with the provisions of the Securities of such series 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 Securities of such series, of all sums due and to
become due thereon in respect of principal and any premium and interest, but
money so held in trust need not be segregated from other funds except to the
extent required by law.

          (b) The Company will pay and indemnify the Trustee against any tax,
fee, or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 4.04 or the principal and interest
                                  ------------
received in respect thereof other than any such tax, fee, or other charge that
by law is for the account of the Holders of Outstanding Securities.

          (c) Notwithstanding anything contained in this Article IV to the
                                                         ----------
contrary, the Trustee will deliver or pay to the Company from time to time upon
a Company Request any money or U.S. Government Obligations held by it as
provided in Section 4.04 with respect to Securities of any Defeasible Series
            ------------
that are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Defeasance or Covenant Defeasance with respect
to the Securities of such series.

Section 4.06.  Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article IV with respect to the Securities of any series by
                     ----------
reason of any order or judgment of any court or governmental authority
enjoining, restraining, or otherwise prohibiting such application, then the
Company's obligations under this Indenture and the Securities of such series
will be revived and reinstated as though no deposit had occurred pursuant to
this Article IV with respect to Securities of such series until such time as the
     ----------
Trustee or Paying Agent is permitted to apply all money held in trust pursuant
to Section 4.05 with respect to Securities of such series in accordance with
   ------------
this Article IV; provided, however, that if the Company makes any payment of
     ----------  --------  -------
principal of or any premium or interest on any Security of such series following
the reinstatement of its obligations, the Company will be subrogated to the
rights of the Holders of Securities of such series to receive such payment from
the money so held in trust.

                                       27

<PAGE>

                 Article V. Particular Covenants of the Company.

Section 5.01.  Payment of Principal, Premium and Interest on Securities.

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

Section 5.02.  Maintenance of Office or Agency.

          (a) The Company will maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Company in respect of the Securities of that series and
this Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such 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, and the Company hereby appoints the Trustee as its
agent to receive all such presentations, surrenders, notices, and demands.

          (b) 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
                   --------  -------
will in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

Section 5.03.  Money for Securities Payments to be Held in Trust.

          (a) If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the
principal of or any premium or interest on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay the principal and any premium and interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of as herein
provided and will promptly notify the Trustee of its action or failure so to
act.

          (b) Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to each due date of the principal of or any
premium or interest on any Securities of that series, deposit with a Paying
Agent a sum sufficient to pay such amount, such sum to be held as provided by
the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the
Company will promptly notify the Trustee of its action or failure so to act.

          (c) The Company will cause each Paying Agent, other than the Trustee,
for any series of Securities to execute and deliver to the Trustee an instrument
in which such Paying Agent will agree with the Trustee, subject to the
provisions of this Section 5.03, that such Paying
                   ------------

                                       28

<PAGE>

Agent will (i) comply with the provisions of the Trust Indenture Act applicable
to it as a Paying Agent and (ii) during the continuance of any default by the
Company (or any other obligor upon the Securities of that series) in the making
of any payment in respect of the Securities of that series, and upon the written
request of the Trustee, forthwith pay to the Trustee all sums held in trust by
such Paying Agent for payment in respect of the Securities of that series.

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

          (e) Any money deposited with the Trustee or any Paying Agent, or then
held by the Company, in trust for the payment of the principal of or any premium
or interest on any Security of any series and remaining unclaimed for two years
after such principal, premium, or interest has become due and payable will be
paid to the Company upon a Company Request (or, if then held by the Company,
will be discharged from such trust); and the Holder of such Security will
thereafter, look only to the Company for payment thereof; in the absence of a
written request from the Issuer to return unclaimed funds to the Issuer, the
Trustee shall from time to time deliver all unclaimed funds to or as directed by
applicable escheat authorities, as determined by the Trustee in its sole
discretion, in accordance with the customary practices and procedures of the
Trustee; 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, will
thereupon cease; provided, however, that the Trustee or such Paying Agent,
                 --------  -------
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in a newspaper published in the English
language, customarily published on each Business Day and of general circulation
in the Borough of Manhattan, The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which will not be
less than 30 calendar days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company. Any
unclaimed funds held by the Trustee pursuant to this Section shall be held
uninvested and without any liability for interest.

Section 5.04.  Payment of Taxes and other Claims.

          The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (a) all taxes, assessments, and
governmental charges levied or imposed upon the Company or any Subsidiary of the
Company or upon the income, profits, or property of the Company or any
Subsidiary of the Company, and (b) all lawful claims for labor, materials, and
supplies, in each case which, if unpaid, might by law become a lien upon the
property of the Company or any Subsidiary of the Company and might have a
Material Adverse Effect; provided, however, that the Company will not be
                         --------  -------
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge, or claim the amount, applicability, or validity of which is
being contested in good faith by appropriate proceedings.

                                       29

<PAGE>

Section 5.05.   Maintenance of Properties.

          The Company will cause all properties used or useful in the conduct of
its business or the business of any Subsidiary of the Company to be maintained
and kept in good condition, repair, and working order and supplied with all
necessary equipment and will cause to be made all necessary repairs, renewals,
replacements, betterments, and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times; provided,
                                                                     --------
however, that nothing in this Section 5.05 will prevent the Company from
-------                       ------------
discontinuing the operation or maintenance of any of such properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct of
its business or the business of any Subsidiary of the Company and would not
reasonably be expected to result in a Material Adverse Effect.

Section 5.06.   Existence.

          Subject to Article X, the Company will, and will cause each of its
                     ---------
Subsidiaries to, do or cause to be done all things necessary to preserve and
keep in full force and effect its existence, rights (charter and statutory), and
franchises; provided, however, that no Subsidiary of the Company will be
            --------  -------
required to preserve its existence, and neither the Company nor any Subsidiary
of the Company will be required to preserve any such right or franchise, if the
Board of Directors determines that the preservation thereof is no longer
desirable in the conduct of the business of the Company and that the loss
thereof would not reasonably be expected to result in a Material Adverse Effect.

Section 5.07.   Compliance with Laws.

          The Company will, and will cause each of its Subsidiaries to, comply
with all applicable federal, state, local, or foreign laws, rules, regulations,
or ordinances, including without limitation such laws, rules, regulations, or
ordinances relating to pension, environmental, employee, and tax matters, in
each case to the extent that the failure so to comply would reasonably be
expected to have a Material Adverse Effect.

Section 5.08.   Statement by Officers as to Default.

          The Company will deliver to the Trustee, within 120 calendar days
after the end of each fiscal year of the Company ending after the date hereof,
an Officer's Certificate signed by the principal executive officer, principal
financial officer, or principal accounting officer of the Company stating
whether or not to the knowledge of such person after due inquiry the Company is
in default in the performance and observance of any of the terms, provisions,
and conditions of this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company is in default,
specifying all such defaults and the nature and status thereof of which such
person may have such knowledge.

Section 5.09.   Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any
term, provision, or condition set forth in Sections 5.04 through 5.07,
                                           -------------         ----
inclusive, and the provisions of any supplemental indenture specified in such
supplemental indenture, with respect to the

                                       30

<PAGE>

Securities of any series if the Holders of a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision, or condition, but no such waiver will 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 will
remain in full force and effect.

              Article VI. Securities Holders' Lists and Reports by
                          The Company and The Trustee.

Section 6.01.   Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee (a)
semi-annually, not more than 15 calendar days after the applicable Regular
Record Date, a list for each series of Securities, in such form as the Trustee
may reasonably require, of the names and addresses of the Holders of Securities
of such series as of such Regular Record Date and (b) at such other times as the
Trustee may request in writing, within 30 calendar 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 calendar days prior to the time such list is furnished; excluding
                                                                     ---------
from any such list names and addresses received by the Trustee in its capacity
as Security Registrar.

Section 6.02.   Preservation of Information; Communication to Holders.

          (a) The Trustee will preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 6.01 and the names and
                                             ------------
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 6.01 upon receipt of a new list so furnished.
------------

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

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

Section 6.03.   Reports by Trustee.

          The Trustee will transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto. A
copy of each such report will, at the time of such transmission to Holders, be
filed by the Trustee with each stock exchange upon which any Securities are
listed, with the Commission, and with the Company. The Company will promptly

                                       31

<PAGE>

notify the Trustee when any Securities are listed on any stock exchange or of
any delisting thereof.

Section 6.04.   Reports by Company.

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

          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, including
the Company's compliance with any of its covenants hereunder (as to which the
Trustee is entitled to conclusively rely exclusively on Officers' Certificates).

                              Article VII. Default.

Section 7.01.   Event of Default.

          (a) Unless otherwise provided in a Board Resolution or an indenture
supplemental hereto establishing a series of Securities in accordance with
Section 2.01, "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 may 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):

        (i)   any default in the payment of any interest on any Security
    of that series when it becomes due and payable, and continuance of
    such default for a period of 30 calendar days;

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

        (iii) any default in the performance, or breach, of any covenant
    or warranty of the Company in this Indenture (other than a covenant or
    warranty, a default in the performance or breach of which is elsewhere
    in this Section 7.01 specifically dealt with or which has expressly
            ------------
    been included in this Indenture solely for the benefit of one or more
    series of Securities other than that series or which is expressly
    inapplicable to Securities of that series under the terms applicable
    to such Securities under a supplemental indenture applicable thereto),
    and continuance of such default or breach for a period of 60 calendar
    days after there has been given, by registered or certified mail, or
    overnight express service 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

                                       32

<PAGE>

      of that series a written notice specifying such default or breach and
      requiring it to be remedied and stating that such notice is a "Notice
                                                                     ------
      of Default" hereunder;
      ----------

          (iv) the entry by a court having jurisdiction in the premises of
      (A) a decree or order for relief in respect of the Company in an
      involuntary case or proceeding under any applicable federal or state
      bankruptcy, insolvency, reorganization, or other similar law or (B) a
      decree or order adjudging the Company a bankrupt or insolvent, or
      approving as properly filed a petition seeking reorganization,
      arrangement, adjustment, or composition of or in respect of the
      Company under any applicable federal or state law, or appointing a
      custodian, receiver, liquidator, assignee, trustee, sequestrator, or
      other similar official of the Company or of any substantial part of
      the property of the Company or ordering the winding up or liquidation
      of the affairs of the Company and the continuance of any such decree
      or order for relief or any such other decree or order unstayed and in
      effect for a period of 60 consecutive calendar days;

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

          (vi) any other Event of Default provided with respect to
      Securities of that series under a supplemental indenture applicable
      thereto.

          (b) If an Event of Default (other than an Event of Default arising
under Section 8.01(a)(iv) or (v)) with respect to Securities of any series at
      ---------------------------
the time Outstanding occurs and is continuing, then in every case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such portion
of the principal amount of such Securities as may be specified in the terms
thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
amount) will become immediately due and payable. If an Event of Default under
Section 8.01(a)(iv) or (v) occurs, then the principal of, premium, if any, and
--------------------------
accrued

                                       33

<PAGE>

interest on the Securities shall become immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder.

          (c) At any time after such a declaration of acceleration with respect
to Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article VII provided, the Holders of a majority in principal amount of the
-----------
outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if (i) the
Company has paid or deposited with the Trustee a sum sufficient to pay (A) all
overdue interest on all Securities of that series, (B) the principal of (and
premium, if any, on) any Securities of that series which have become due
otherwise than by such declaration of acceleration and any interest thereon at
the rate or rates prescribed therefor in such Securities, (C) to the extent that
payment of such interest is lawful, interest upon overdue interest at the rate
or rates prescribed therefor in such Securities, and (D) all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel and (ii)
all Events of Default with respect to Securities of that series, other than the
non-payment of the principal of Securities of that series which have become due
solely by such declaration of acceleration, have been cured or waived as
provided in Section 7.01(d). No such rescission will affect any subsequent
            ---------------
default or impair any right consequent thereon.

          (d) The Holders of a majority in principal amount of the Outstanding
Securities of any series may on behalf of the Holders of all the Securities of
such series waive any past default hereunder with respect to such series and its
consequences, except a default (i) in the payment of the principal of or any
premium or interest on any Security of such series or (ii) in respect of a
covenant or provision hereof which under Article IX 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 will cease to exist, and any
Event of Default arising therefrom will be deemed to have been cured, for every
purpose of this Indenture, but no such waiver will extend to any subsequent or
other default or impair any right consequent thereon.

Section 7.02.  Covenant of Company to Pay to Trustee Whole Amount Due on
               Securities on Default in Payment of Interest or Principal; Suits
               for Enforcement by Trustee.

          (a) The Company covenants that if (i) default is made in the payment
of any interest on any Security when such interest becomes due and payable and
such default continues for a period of 30 calendar days or (ii) default is made
in the payment of the principal of (or premium, if any, on) any Security when it
becomes due and payable, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then due
and payable on such Securities for principal and any premium and interest and,
to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal and premium and on any overdue interest, at
the rate or rates prescribed therefor in such Securities, and, in addition
thereto, such further amount as will be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel. If the
Company shall fail forthwith to pay such amounts upon such demand, the Trustee,
in its own name and as trustee of

                                       34

<PAGE>

an express trust, shall be entitled and empowered to institute any actions or
proceedings at law or in equity for the collection of the sums so due and
unpaid, and may prosecute any such action or proceeding to judgment or final
decree, and may enforce any such judgment or final decree against the Company
and collect in the manner provided by law out of the property of the Company,
wherever situated, the moneys adjudged or decreed to be payable.

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

          (c) In case of any judicial proceeding relative to the Company (or any
other obligor upon the Securities), its property or its creditors, the Trustee
will be entitled and empowered, by intervention in such proceeding or otherwise,
to take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee will be authorized to collect and receive any money 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 to make such payments to the Trustee and, in the event that the
Trustee consents to the making of such payments directly to the Holders, to pay
to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel, and any
other amounts due the Trustee under Section 8.06.
                                    ------------

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

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

Section 7.03.  Application of Money Collected by Trustee.

          Any money collected by the Trustee pursuant to this Article VII will
                                                              -----------
be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or any
premium or interest, upon presentation of the

                                       35

<PAGE>

Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

               FIRST:   To the payment of all amounts due the Trustee under
                        Section 8.06;
                        ------------

               SECOND:  To the payment of the amounts then due and unpaid for
                        principal of and any premium and interest on the
                        Securities in respect of which or for the benefit of
                        which such money has been collected, ratably, without
                        preference or priority of any kind (except to the extent
                        that the Securities of a series are by their express
                        terms subordinated and subject in right of payment to
                        the prior payment of other indebtedness and as provided
                        under the terms applicable in respect of such
                        subordination and right of payment to the Securities of
                        such series, as contemplated in Section 2.01) according
                                                        ------------
                        to the amounts due and payable on such Securities for
                        principal and any premium and interest, respectively;
                        and

               THIRD:   To the Company, its successors or assigns, or to such
                        other Person that may be lawfully entitled to receive
                        the same.

Section 7.04.  Limitation on Suits by Holders of Securities.

               No Holder of any Security of any series will 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 (a) such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to the Securities of that
series, (b) the Holders of not less than 25% in principal amount of the
Outstanding Securities of that series have made written request to the Trustee
to institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder, (c) such Holder or Holders have offered to the Trustee
reasonable indemnity against the costs, expenses, and liabilities to be incurred
in compliance with such request, (d) the Trustee for 60 calendar days after its
receipt of such notice, request, and offer of indemnity has failed to institute
any such proceeding, and (e) no direction inconsistent with such written request
has been given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities of that series, it
being understood and intended that no one or more of such Holders will have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb, or prejudice the rights of any other of such
Holders, or to obtain or to seek to obtain priority or preference over any other
of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such
Holders.

Section 7.05.  Rights and Remedies Cumulative; Delay or Omission in Exercise of
               Rights Not a Waiver of Event of Default.

               (a)  Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost, or stolen Securities in Section
                                                                  -------
2.07(f), no right or remedy herein conferred upon or reserved to the Trustee or
-------
to the Holders is intended to be exclusive of any

                                       36

<PAGE>

other right or remedy, and every right and remedy will, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, will not
prevent the concurrent assertion or employment of any other appropriate right or
remedy.

               (b)  No delay or omission of the Trustee or of any Holder of any
Securities to exercise any right or remedy accruing upon any Event of Default
will 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
                                                                         -------
VII or by law to the Trustee or to the Holders may be exercised from time to
---
time, and as often as may be deemed expedient, by the Trustee or by the Holders,
as the case may be.

Section 7.06.  Rights of Holders of Majority in Principal Amount of Outstanding
               Securities to Direct Trustee.

               The Holders of a majority in principal amount of the Outstanding
Securities of any series will have the right to direct the time, method, and
place of conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Securities of such series, provided that (a) such direction will not be in
                           --------
conflict with any rule of law or with this Indenture, (b) the Trustee shall not
be liable with respect to any action so taken and (c) the Trustee may take any
other action deemed proper by the Trustee which is not inconsistent with such
direction.

Section 7.07.  Requirement of an Undertaking to Pay Costs in Certain Suits Under
               the Indenture or Against the Trustee.

               In any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Trustee for any action taken, suffered, or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an undertaking to pay the costs of such suit, and may assess costs against
any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided that neither this Section 7.07 nor the Trust Indenture
               --------                   ------------
Act will be deemed by virtue of authorizing a court to do so to require that any
court to require such an undertaking or to make such an assessment in any suit
instituted by the Company.

Section 7.08.  Notice of Defaults.

               If a Default occurs hereunder with respect to Securities of any
series, the Trustee will give the Holders of Securities of such series notice of
such Default as and to the extent provided by the Trust Indenture Act; provided,
                                                                       --------
however, that in the case of any Default of the character specified in Section
-------                                                                -------
7.01(a)(iii) with respect to Securities of such series no such notice to Holders
------------
will be given until at least 30 calendar days after the occurrence thereof. The
Company will give the Trustee notice of any uncured Event of Default within 10
days after any Responsible Officer of the Company becomes aware of or receives
actual notice of such Event of Default. The Trustee shall not be deemed to have
notice of any Default or Event of Default under this Indenture unless a
Responsible Officer shall have actual knowledge or be specifically notified in
writing of such Default or Event of Default.

                                       37

<PAGE>

Section 7.09.  Unconditional Right of Holders to Receive Principal, Premium, and
               Interest.

               Except as otherwise provided under the terms of Securities of any
particular series as contemplated by Section 2.01, notwithstanding any other
                                     ------------
provision in this Indenture, the Holder of any Security will have the right,
which is absolute and unconditional, to receive payment of the principal of and
any premium and (subject to Section 2.09 and Section 3.04) interest on such
                            ------------     ------------
Security on the respective Stated Maturities expressed in such Security (or, in
the case of redemption, on the Redemption Date) and to institute suit for the
enforcement of any such payment, and such rights may not be impaired without the
consent of such Holder.

Section 7.10.  Restoration of Rights and Remedies.

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

Section 7.11.  Trustee May File Proofs of Claims.

               The Trustee may file such proofs of claim and 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 and counsel) and the
Holders allowed in any judicial proceeding relative to the Company or the
Subsidiaries (or any other obligor upon the Securities), their creditors or
their property and shall be entitled and empowered to collect and receive any
monies or other property payable or deliverable on any such claim and to
distribute the same, and any custodian in any such judicial proceedings is
hereby authorized by each Holder to make such payments to the Trustee and, in
the event that the Trustee shall consent to the making of such payments directly
to the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements, and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee hereunder. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

                     Article VIII. Concerning the Trustee.

Section 8.01.  Certain Duties and Responsibilities.

               The duties and responsibilities of the Trustee will be as
provided by the Trust Indenture Act. No implied duties or covenants will be read
into this Indenture against the Trustee. Notwithstanding the foregoing, no
provision of this Indenture will require the Trustee to expend or risk its own
funds or otherwise incur any financial liability in the performance of

                                       38

<PAGE>

any of its duties hereunder, or in the exercise of any of its rights or powers.
Whether or not therein expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to
the Trustee will be subject to the provisions of this Section 8.01. The
                                                      ------------
immunities and exemptions from liability afforded to the Trustee shall extend to
its officers, directors, employees and agents.

Section 8.02.  Certain Rights of Trustee.

               Subject to the provisions of Section 8.01: (a) the Trustee may
                                            ------------
conclusively rely and will be protected in acting or refraining from acting
upon, whether in its original or facsimile form, any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness, or other paper or
document believed by it to be genuine and to have been signed or presented by
the proper party or parties; (b) any request or direction of the Company
mentioned herein will be sufficiently evidenced by a Company Request or Company
Order and any resolution of the Board will be sufficiently evidenced by a Board
Resolution; (c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering, or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
request and rely upon an Officer's Certificate; (d) the Trustee may consult with
counsel of its selection and the advice of such counsel or any Opinion of
Counsel will 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; (e) the Trustee will be under no obligation to exercise any of the
rights or powers vested in it by this Indenture, at the request or direction of
any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses, and liabilities which might be incurred by it in compliance with such
request or direction; (f) the Trustee will not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness, or other paper or
document, but the Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it will be
entitled to examine the books, records, and premises of the Company, personally
or by agent or attorney, at the sole cost of the Company and shall incur no
liability or additional liability of any kind by reason of such inquiry or
investigation; (g) 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 will not be responsible for any misconduct or
negligence on the part of any agent or attorney appointed with due care by it
hereunder; (h) the Trustee shall not be liable for any action taken, suffered,
or omitted to be taken by it in good faith and reasonably believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture; and (i) no permissive power, right or remedy conferred upon the
Trustee hereunder shall be construed to impose a duty to exercise such power,
right or remedy.

Section 8.03.  Not Responsible for Recitals or Issuance of Securities.

               The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, may be taken as the statements of the
Company, and neither the

                                       39

<PAGE>

Trustee nor any Authenticating Agent assumes any responsibility for their
correctness. The Trustee makes no representations as to the validity,
sufficiency or priority of this Indenture or of the Securities. The Trustee or
any Authenticating Agent will not be accountable for the use or application by
the Company of Securities or the proceeds thereof.

Section 8.04.  May Hold Securities.

               The Trustee, any Authenticating Agent, any Paying Agent, any
Security Registrar, or any other agent of the Company, in its individual or any
other capacity, may become the owner or pledgee of Securities and, subject to
Sections 8.07 and 8.12, may otherwise deal with the Company with the same rights
-------------     ----
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar, or such other agent.

Section 8.05.  Money Held in Trust.

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

Section 8.06.  Compensation and Reimbursement.

               The Company will (a) pay to the Trustee from time to time such
compensation for all services rendered by it hereunder as the parties shall
agree from time to time (which compensation need not be limited (subject to such
agreement or as otherwise required under applicable law) to the compensation
specified in any provision of law in regard to the compensation of a trustee of
an express trust); (b) except as otherwise expressly provided herein, reimburse
the Trustee upon its request for all reasonable expenses, disbursements, and
advances incurred or made by the Trustee in accordance with provision of this
Indenture (including the reasonable compensation and the expenses and
disbursements of agents and counsel), except any such expense, disbursement, or
advance as may be attributable to its negligence, willful misconduct,
recklessness or bad faith; and (c) indemnify each of the Trustee and any
predecessor Trustee for, and hold the Trustee harmless against, any and all
loss, liability, claim, or expense incurred without negligence, willful
misconduct, recklessness or bad faith on its part arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder.

               When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 7.01(a)(iv) or Section
                                                 -------------------    -------
7.01(a)(v), the expenses (including the reasonable charges and expenses of its
----------
counsel) and the compensation for such services are intended to constitute
expenses of administration under any applicable Federal or state bankruptcy,
insolvency or other similar law.

                                       40

<PAGE>

Section 8.07.  Disqualification; Conflicting Interests.

               If the Trustee has or acquires a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee will either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

Section 8.08.  Corporate Trustee Required Eligibility.

               There will at all times be one or more Trustees hereunder with
respect to the Securities of each series, at least one of which will be a Person
that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $100,000,000 and its Corporate Trust
Office or principal office in New York City, or any other major city in the
United States that is acceptable to the Company. If such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of a supervising or examining state or federal authority, then for the purposes
of this Section 8.08, the combined capital and surplus of such Person shall be
        ------------
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 8.08, it will resign
                                                   ------------
immediately in the manner and with the effect hereinafter specified in this
Article VIII.
------------

Section 8.09.  Resignation and Removal; Appointment of Successor.

               (a)  No resignation or removal of the Trustee and no appointment
of a successor Trustee pursuant to this Article VIII will become effective until
                                        ------------
the acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 8.10.
                           ------------

               (b)  The Trustee may resign at any time with respect to the
Securities of one or more series by giving written notice thereof to the
Company. If the instrument of acceptance by a successor Trustee required by
Section 8.10 shall not have been delivered to the Trustee within 30 calendar
------------
days after the giving of such notice of resignation, the resigning Trustee may
at the expense of the Company petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

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

               (d)  If, at any time, (i) the Trustee fails to comply with
Section 8.07 after written request therefor by the Company or by any Holder who
------------
has been a bona fide Holder of a Security for at least six months, (ii) the
Trustee ceases to be eligible under Section 8.08 and fails to resign after
                                    ------------
written request therefor by the Company or by any such Holder, or (iii) the
Trustee becomes incapable of acting or is adjudged a bankrupt or insolvent or a
receiver of the Trustee or of its property is appointed or any public officer
takes charge or control of the Trustee or of its property or affairs for the
purpose of rehabilitation, conservation, or liquidation, then, in any such case,
(A) the Company by a Board Resolution may remove the Trustee with respect to all
Securities or (B) subject to Section 7.07, any Holder who has been a bona fide
                             ------------
Holder of a Security for at least six months may, on behalf of himself and all
others similarly situated,

                                       41

<PAGE>

petition any court of competent jurisdiction for the removal of the Trustee with
respect to all Securities and the appointment of a successor Trustee or
Trustees.

               (e)  If the Trustee resigns, is removed, or becomes incapable of
acting, or if a vacancy occurs in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company by a Board
Resolution will promptly appoint a successor Trustee or Trustees with respect to
the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there will be only one Trustee with
respect to the Securities of any particular series) and will comply with the
applicable requirements of Section 8.10. If, within one year after such
                           ------------
resignation, removal, or incapability or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series is appointed by
Act of the Holders of a majority in principal amount of the Outstanding
Securities of such series delivered to the Company and the retiring Trustee, the
successor Trustee so appointed will, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 8.10,
                                                              ------------
become the successor Trustee with respect to the Securities of such series and
to that extent supersede the successor Trustee, if any, appointed by the
Company. If no successor Trustee with respect to the Securities of any series
shall have been so appointed by the Company or the Holders and accepted
appointment in the manner required by Section 8.10, any Holder who has been a
                                      ------------
bona fide Holder of a Security of such series for at least six months may, on
behalf of himself and all others similarly situated, at the expense of the
Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

               (f)  The Company will give notice of each resignation and each
removal of the Trustee with respect to the Securities of any series and each
appointment of a successor Trustee with respect to the Securities of any series
to all holders of Securities of such series in the manner provided in Section
                                                                      -------
12.03. Each notice will include the name of the successor Trustee with respect
-----
to the Securities of such series and the address of its Corporate Trust Office.

Section 8.10.  Acceptance of Appointment by Successor.

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

               (b)  In case of 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 each successor Trustee with respect to the
Securities of one or more series will execute and deliver an indenture
supplemental hereto wherein such successor Trustee will accept such

                                       42

<PAGE>

appointment and which (i) will contain such provisions as may be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee all
the rights, powers, trusts, and duties of the retiring Trustee with respect to
the Securities of that or those series to which the appointment of such
successor Trustee relates, (ii) will contain such provisions as may 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 will continue to be
vested in the retiring Trustee, and (iii) will add to or change any of the
provisions of this Indenture as may 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 will constitute
such Trustees co-trustees of the same trust and that each such Trustee will be
trustee of a trust or trusts hereunder separate and apart from any trust or
trusts hereunder administered by any other such Trustees and upon the execution
and delivery of such supplemental indenture the resignation or removal of the
retiring Trustee will become effective to the extent provided therein and each
such successor Trustee, without any further act, deed, or conveyance, will
become vested with all the rights, powers, trusts, and duties of the retiring
Trustee with respect to the Securities of that or those series to which the
appointment of such successor Trustee relates; but on request of the Company or
any successor Trustee, such retiring Trustee will duly assign, transfer, and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.

               (c)  Upon request of any such successor Trustee, the Company will
execute any and all instruments reasonably required to more fully and certainly
vest in and confirm to such successor Trustee all applicable rights, powers, and
trusts referred to in the preceding paragraphs of this Section 8.10.
                                                       ------------

               (d)  No successor Trustee will accept its appointment unless at
the time of such acceptance such successor Trustee is qualified and eligible
under this Article VIII.
           ------------

Section 8.11.  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 may be a party, or any
corporation succeeding to all or substantially all the corporate trust business
of the Trustee, by sale or otherwise, will be the successor of the Trustee
hereunder, provided such corporation is otherwise qualified and eligible under
this Article VIII, 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, sale 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.

                                       43

<PAGE>

Section 8.12.  Preferential Collection of Claims Against Company.

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

Section 8.13.  Appointment of Authenticating Agent.

               (a)  The Trustee may appoint an Authenticating Agent or Agents
with respect to one or more series of Securities which will be authorized to act
on behalf of the Trustee to authenticate Securities of such series issued upon
original issue and upon exchange, registration of transfer, or partial
redemption thereof or pursuant to Section 2.07, and Securities so authenticated
                                  ------------
will be entitled to the benefits of this Indenture and will 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 will be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a corporation organized and doing business under the laws of the United
States of America, any state thereof, or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having (or its parent or holding
company shall have) a combined capital and surplus of not less than $50,000,000
and subject to supervision or examination by federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section 8.13, the combined capital and surplus of such
                         ------------
Authenticating Agent will be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 8.13, such Authenticating Agent will resign
                   ------------
immediately in the manner and with the effect specified in this Section 8.13.
                                                                ------------

               (b)  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 may be a party, or any corporation succeeding to the
corporate agency or corporate trust business of an Authenticating Agent, by sale
or otherwise, will continue to be an Authenticating Agent, provided such
corporation is otherwise eligible under this Section 8.13, without the execution
                                             ------------
or filing of any paper or any further act on the part of the Trustee or the
Authenticating Agent.

               (c)  An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 8.13, the Trustee may appoint a successor
                   ------------
Authenticating Agent which shall be acceptable to the Company and will mail
written notice of such appointment by first-class mail, postage prepaid, to all
Holders of Securities of the series with respect to which such

                                       44

<PAGE>

Authenticating Agent will serve, as their names and addresses appear in the
Security Register. Any successor Authenticating Agent upon acceptance of its
appointment hereunder will 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 will be appointed unless
eligible under the provisions of this Section 8.13.
                                      ------------

               (d)  The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section 8.13.
                                                                 ------------

               (e)  If an appointment with respect to one or more series of
Securities is made pursuant to this Section 8.13, the Securities of such series
                                    ------------
may have endorsed thereon, in addition to the Trustee's certificate of
authentication, an alternative form of certificate of authentication in the
following form:

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

                                        ____________________________, as Trustee

                                        By: ____________________________________
Dated: ____________________                 As Authenticating Agent

                                        By: ____________________________________
                                            Authorized Signatory

Section 8.14.  Trustee's Application for Instruction from the Company.

               Any application by the Trustee for written instructions from the
Company may, at the option of the Trustee, set forth in writing any action
proposed to be taken or omitted by the Trustee under this Indenture and the date
on and/or after which such action shall be taken or such omission shall be
effective. In the case of any proposed action or omission expressly authorized
by this Indenture, the Trustee shall not be liable for any action taken by, or
omission of, the Trustee in accordance with a proposal included in such
application on or after the date specified in such application (which date shall
not be less than three Business Days after the date any officer of the Company
actually receives such application, unless any such officer shall have consented
in writing to any earlier date) unless prior to taking any such action (or the
effective date in the case of an omission), the Trustee shall have received
written instructions in response to such application specifying the action to be
taken or omitted. In the case of any proposed action or omission that is not
expressly authorized by this Indenture, the Trustee shall not take or refrain
from taking any action unless prior to taking or refraining from taking any such
action, the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

                                       45

<PAGE>

            Article IX. Supplemental Indentures and Certain Actions.

Section 9.01.  Purposes for which Supplemental Indentures may be Entered into
               Without Consent of Holders.

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

               (a)  to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants of the Company herein
and in the Securities, all to the extent otherwise permitted hereunder;

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

               (c)  to add any additional Events of Default;

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

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

               (f) to establish the terms or form of Securities of any series as
permitted by Sections 2.01 and 2.02;
             -------------     ----

               (g)  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 may be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, pursuant to the requirements of Section
                                                                    -------
8.10; or
----

               (h)  to cure any ambiguity, to correct or supplement any
provision herein which may be defective or inconsistent with any other provision
herein, or to make any other provisions with respect to matters or questions
arising under this Indenture, provided that such action pursuant to this clause
                              --------                                   ------
(h) will not adversely affect the interests of the Holders of Securities of any
---
series in any material respect.

                                       46

<PAGE>

Section 9.02.  Modification of Indenture with Consent of Holders of at Least a
               Majority in Principal Amount of Outstanding Securities.

               (a)  With the consent of the Holders of a majority in principal
amount of the Outstanding Securities of each series affected by such
supplemental indenture, by act of said Holders delivered to the Company and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
                                                           --------  -------
that no such supplemental indenture will, without the consent of the Holder of
each Outstanding Security affected thereby:

                    (i)   change the Stated Maturity of the principal of, or any
     installment of principal of or interest on, any Security, or reduce the
     principal amount thereof or the rate of interest thereon or any premium
     payable upon the redemption thereof, or reduce the amount of the principal
     of an Original Issue Discount Security that would be due and payable upon a
     declaration of acceleration of the Maturity thereof pursuant to Section
                                                                     -------
     7.01(b), or change any Place of Payment where, or the coin or currency in
     -------
     which, any Security or any premium or interest thereon is payable, or
     impair the right to institute suit for the enforcement of any such payment
     on or after the Stated Maturity thereof (or, in the case of redemption, on
     or after the Redemption Date);

                    (ii)  reduce the percentage in principal amount of the
     Outstanding Securities of any series, the consent of the Holders of which
     is required for any such supplemental indenture, or the consent of the
     Holders of which 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

                    (iii) modify any of the provisions of this Section 9.02,
                                                               ------------
     Section 7.01(d) or Section 5.09, except to increase the percentage in
     ---------------    ------------
     principal amount of Holders required under any such Section or to provide
     that certain other provisions of this Indenture cannot be modified or
     waived without the consent of the Holder of each Outstanding Security
     affected thereby, provided, however, that this clause (iii) will not be
                       --------- -------
     deemed to require the consent of any Holder with respect to changes in the
     references to "the Trustee" and concomitant changes in this Section 9.02
                                                                 ------------
     and Section 5.09, or the deletion of this proviso, in accordance with the
         ------------
     requirements of Sections 8.10 and 9.01(g).
                     -------------     -------

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

               (c)  It will not be necessary for any Act of Holders under this
Section 9.02 to approve the particular form of any proposed supplemental
------------
indenture, but it will be sufficient if such Act approves the substance thereof.

                                       47

<PAGE>

Section 9.03.  Execution of Supplemental Indentures.

               In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article IX or the modifications thereby
                                         ----------
of the trusts created by this Indenture, the Trustee will be entitled to
receive, and (subject to Section 8.01) will be fully protected in relying upon,
                         -------------
an Officers' Certificate and an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but will not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties, or immunities under
this Indenture or otherwise.

Section 9.04.  Effect of Supplemental Indentures.

               Upon the execution of any supplemental indenture under this
Article IX, this Indenture will be modified in accordance therewith, and such
----------
supplemental indenture will form a part of this Indenture for all purposes; and
every Holder of Securities of each series theretofore or thereafter
authenticated and delivered hereunder will be bound thereby to the extent that
the terms of such supplemental indenture are applicable to Securities of such
series.

Section 9.05.  Conformity with Trust Indenture Act.

               Every supplemental indenture executed pursuant to this Article IX
                                                                      ----------
will conform to the applicable requirements of the Trust Indenture Act.

Section 9.06.  Reference in Securities to Supplemental Indentures.

               Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article IX may, and
                                                         ----------
will 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.

              Article X. Consolidation, Merger, Sale, or Transfer.

Section 10.01. Consolidations and Mergers of Company and Sales Permitted Only on
               Certain Terms.

               (a)  Unless otherwise provided in respect of Securities of a
particular series in a Board Resolution or an indenture supplemental hereto
establishing such series of Securities in accordance with Section 2.01, the
                                                          ------------
Company shall not consolidate with or merge with or into any other Person, or
transfer (by lease, assignment, sale, or otherwise) all or substantially all of
its properties and assets to another Person unless (i) either (A) the Company
shall be the continuing or surviving Person in such a consolidation or merger or
(B) the Person (if other than the Company) formed by such consolidation or into
which the Company is merged or to which all or substantially all of the
properties and assets of the Company are transferred (the Company or such other
Person being referred to as the "Surviving Person") shall be a Person organized
                                 ----------------
and

                                       48

<PAGE>

validly existing under the laws of the United States, any state thereof, or the
District of Columbia, and shall expressly assume, by an indenture supplemental
hereto, all of the obligations of the Company under such Securities and the
terms of the Indenture applicable thereto, (ii) immediately after the
transaction and the incurrence or anticipated incurrence of any Indebtedness to
be incurred in connection therewith, no Default in respect of such Securities
will exist, and (iii) an Officer's Certificate has been delivered to the Trustee
to the effect that the conditions set forth in the preceding clauses (i) and
(ii) have been satisfied and an Opinion of Counsel (from a counsel who shall not
be an employee of the Company) has been delivered to the Trustee to the effect
that the conditions set forth in the preceding clause (i) have been satisfied.

               (b)  Upon consummation of any transaction provided for in Section
                                                                         -------
10.01(a) in compliance with the terms thereof in respect of the Securities of
--------
any series in which the Company is not the Surviving Person, the Surviving
Person will succeed to and be substituted for the Company with the same effect
as if it had been named herein as a party hereto, and thereafter the predecessor
Person will be relieved of all obligations and covenants under such Securities
and the terms of this Indenture application to such Securities.

              Article XI. Satisfaction and Discharge of Indenture.

Section 11.01. Satisfaction and Discharge of Indenture.

               This Indenture will upon a Company Request cease to be of further
effect (except as to any surviving rights of registration of transfer or
exchange of Securities herein expressly provided for), and the Trustee, at the
expense the Company, will execute proper instruments acknowledging satisfaction
and discharge of this Indenture, when: (a) either (i) all Securities theretofore
authenticated and delivered (other than (A) Securities which have been
destroyed, lost, or stolen and which have been replaced or paid as provided in
Section 2.07 and (B) Securities for the payment of which 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 5.03) have been delivered to the Trustee for cancellation or (ii) all
------------
such Securities not theretofore delivered to the Trustee for cancellation (A)
have become due and payable, (B) will become due and payable at the final Stated
Maturity of their principal within one year, or (C) 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 clause (A), (B), or (C)
above, has deposited or caused to be deposited with the Trustee as trust funds
in trust for such purpose an amount sufficient to pay and discharge the entire
indebtedness on such Securities not theretofore delivered to the Trustee for
cancellation, for principal and any premium and interest to the date of such
deposit (in the case of Securities which have become due and payable) or to the
final Stated Maturity of the principal of such Securities or the Redemption
Date, as the case may be; (b) the Company has paid or caused to be paid all
other sums payable hereunder by the Company; and (c) the Company has delivered
to the Trustee an Officer's Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have been satisfied.

                                       49

<PAGE>

               Notwithstanding the satisfaction and discharge of this Indenture,
the obligations of the Company to the Trustee under Section 8.06, the
                                                    ------------
obligations of the Trustee to any Authenticating Agent under Section 8.13, and,
                                                             ------------
if money shall have been deposited with the Trustee pursuant to subclause (ii)
of clause (a) of this Section 11.01, the obligations of the Trustee under
                      -------------
Sections 5.03(e) and 11.02, will survive.
----------------     -----

Section 11.02. Application of Trust Money.

               Subject to provisions of Section 5.03(e), all money deposited
                                        ---------------
with the Trustee pursuant to Section 11.01 will be held in trust and applied by
                             -------------
it, in accordance with the provisions of the Securities and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for the payment
of which such money has been deposited with the Trustee; and such money shall be
segregated from other funds to the extent required by law.

                     Article XII. Miscellaneous Provisions.

Section 12.01. Successors and Assigns of Company Bound by Indenture.

               All the covenants, stipulations, promises, and agreements in this
Indenture contained by or on behalf of the Company applicable in respect of the
Securities of any series will bind its successors and assigns in respect of such
Securities, whether so expressed or not.

Section 12.02. Service of Required Notice to Trustee and Company.

               Any request, demand, authorization, direction, notice, consent,
waiver, Act of Holders, or other document provided or permitted by this
Indenture to be made upon, given or furnished to, or filed with (a) the Trustee
by any Holder or by the Company will be sufficient for every purpose hereunder
if made, given, furnished, or filed in writing to or with the Trustee at its
Corporate Trust Office, Attention: Corporate Trust Department or (b) the Company
by the Trustee or by any Holder will be sufficient for every purpose hereunder
(unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to the Company addressed to it at
[_______________________________] (marked for the attention of both the Chief
Financial Officer and the General Counsel) or at any other address previously
furnished in writing to the Trustee by the Company.

Section 12.03. Service of Required Notice to Holders; Waiver.

               Where this Indenture provides for notice to Holders of any event,
such notice will be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each Holder
affected by such event, at his address as it appears in the Security Register,
not later than the latest date (if any), and not earlier than the earliest date
(if any), prescribed for the giving of such notice. In any case where notice to
Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder will affect the
sufficiency of such notice with respect to other Holders. Where this Indenture
provides for notice in any manner, such notice may be waived in writing by the

                                       50

<PAGE>

Person entitled to receive such notice, either before or after the event, and
such waiver will be the equivalent of such notice. Waivers of notice by Holders
will be filed with the Trustee, but such filing will not be a condition
precedent to the validity of any action taken in reliance upon such waiver. In
case by reason of the suspension of regular mail service or by reason of any
other cause it shall be impracticable to give such notice by mail, then such
notification as may be made with the approval of the Trustee will constitute a
sufficient notification for every purpose hereunder.

Section 12.04. Indenture and Securities to be Construed in Accordance with the
               Laws of the State of New York.

               This Indenture and the Securities will be deemed to be a contract
made under the laws of the State of New York, and for all purposes will be
construed in accordance with the laws of said State without giving effect to
principles of conflict of laws of such State.

Section 12.05. Compliance Certificates and Opinions.

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

Section 12.06. 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. Where any
Person is required to make, give, or execute two or more applications, requests,
consents, certificates, statements, opinions, or other instruments under this
Indenture, they may, but need not, be consolidated and form one instrument.

Section 12.07. Payments Due on Non-Business Days.

               In any case where any Interest Payment Date, Redemption Date, or
Stated Maturity or Maturity of any Security shall not be a Business Day at any
Place of Payment, then (notwithstanding any other provision of this Indenture or
of the Securities (other than a provision of the Securities of any series which
specifically states that such provision will apply in lieu of this Section
                                                                   -------
12.07)) payment of interest or principal (and premium, if any) need not be made
------
at such Place of Payment on such date, but may be made on the next succeeding
Business Day at such Place of Payment, without additional interest, with the
same force and effect as if made on the applicable Interest Payment Date or
Redemption Date or at the applicable Stated Maturity or Maturity, as the case
may be.

                                       51

<PAGE>

Section 12.08. Provisions Required by Trust Indenture Act to Control.

               If any provision of this Indenture limits, qualifies, or
conflicts with the duties imposed on any Person by Sections 310 through 317,
inclusive, of the Trust Indenture Act (including provisions automatically deemed
included in this Indenture pursuant to the Trust Indenture Act unless this
Indenture provides that such provisions are excluded), which are deemed to be a
part of and govern this Indenture, whether or not contained herein, then such
imposed duties will control.

Section 12.09. Invalidity of Particular Provisions.

               Any term or provision of this Indenture or any Security that is
held by a court of competent jurisdiction or other authority to be invalid, void
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction or other authority declares that any term or provision
hereof is invalid, void or unenforceable, the parties agree that the court
making such determination shall have the power to reduce the scope, duration,
area or applicability of the term or provision, to delete specific words or
phrases, or to replace any invalid, void or unenforceable term or provision with
a term or provision that is valid and enforceable and that comes closest to
expressing the intention of the invalid or unenforceable term or provision.

Section 12.10. Indenture may be Executed in Counterparts.

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

Section 12.11. Acts of Holders; Record Dates.

               (a)  Any request, demand, authorization, direction, notice,
consent, waiver, or other action provided or permitted by this Indenture to be
given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action will become effective when such instrument or instruments
are delivered to the Trustee and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied therein and
evidenced thereby) are herein sometimes referred to as the "Act" of the Holders
                                                            ---
signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent will be sufficient for any
purpose of this Indenture and (subject to Section 8.01) conclusive in favor of
                                          ------------
the Trustee and the Company, if made in the manner provided in this Section
                                                                    -------
12.11.
-----

               (b)  The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual

                                       52

<PAGE>

capacity, such certificate or affidavit will also constitute sufficient proof of
his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.

               (c)  The ownership of Securities will be proved by the Security
Register.

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

(e) The Company may, in the circumstances permitted by the Trust Indenture Act,
set any day as the record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver, or other action
provided or permitted by this Indenture to be given or taken by Holders of
Securities of such series. With regard to any record date set pursuant to this
paragraph, the Holders of Outstanding Securities of the relevant series on such
record date (or their duly appointed agents), and only such Persons, will be
entitled to give or take the relevant action, whether or not such Holders remain
Holders after such record date. With regard to any action that may be given or
taken hereunder only by Holders of a requisite principal amount of Outstanding
Securities of any series (or their duly appointed agents) and for which a record
date is set pursuant to this paragraph, the Company may, at its option, set an
expiration date after which no such action purported to be given or taken by any
Holder will be effective hereunder unless given or taken on or prior to such
expiration date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents).
On or prior to any expiration date set pursuant to this paragraph, the Company
may, on one or more occasions at its option, extend such date to any later date.
Nothing in this paragraph will prevent any Holder (or any duly appointed agent
thereof) from giving or taking, after any such expiration date, any action
identical to, or, at any time, contrary to or different from, the action or
purported action to which such expiration date relates, in which event the
Company may set a record date in respect thereof pursuant to this paragraph.
Nothing in this Section 12.11(e) will be construed to render ineffective any
                ----------------
action taken at any time by the Holders (or their duly appointed agents) of the
requisite principal amount of Outstanding Securities of the relevant series on
the date such action is so taken. Notwithstanding the foregoing or the Trust
Indenture Act, the Company will not set a record date for, and the provisions of
this Section 12.11(e) will not apply with respect to, any notice, declaration,
     ----------------
or direction referred to in the next paragraph.

               (f)  Upon receipt by the Trustee from any Holder of Securities of
a particular series of (a) any notice of default or breach referred to in
Section 7.01(a)(iii) with respect to Securities of such series, if such default
--------------------
or breach has occurred and is continuing and the Trustee shall not have given
such notice to the Company, (b) any declaration of acceleration referred to in
Section 7.01(b), if an Event of Default with respect to Securities of such
---------------
series has occurred and is continuing and the Trustee shall not have given such
a declaration to the Company, or (c) any direction referred to in Section 7.06
                                                                  ------------
with respect to Securities of such series, if the Trustee

                                       53

<PAGE>
shall not have taken the action specified in such direction, then a record date
will automatically and without any action by the Company or the Trustee be set
for determining the Holders of Outstanding Securities of such series entitled to
join in such notice, declaration, or direction, which record date will be the
close of business on the tenth calendar day following the day on which the
Trustee receives such notice, declaration, or direction. Promptly after such
receipt by the Trustee, and in any case not later than the fifth calendar day
thereafter, the Trustee will notify the Company and the Holders of Outstanding
Securities of such series of any such record date so fixed. The Holders of
Outstanding Securities of such series on such record date (or their duly
appointed agents), and only such Persons, will be entitled to join in such
notice, declaration, or direction, whether or not such Holders remain Holders
after such record date; provided that, unless such notice, declaration, or
                        --------
direction shall have become effective by virtue of Holders of the requisite
principal amount of Outstanding Securities of such series on such record date
(or their duly appointed agents) having joined therein on or prior to the 30th
calendar day after such record date, such notice, declaration, or direction will
automatically and without any action by any Person be canceled and of no further
effect. Nothing in this Section 12.11(f) will be construed to prevent a Holder
                        ----------------
(or a duly appointed agent thereof) from giving, before or after the expiration
of such 30-day period, a notice, declaration, or direction contrary to or
different from, or, after the expiration of such period, identical to, the
notice, declaration, or direction to which such record date relates, in which
event a new record date in respect thereof will be set pursuant to this Section
                                                                        -------
12.11(f). Nothing in this Section 12.11(f) will be construed to render
--------                  ----------------
ineffective any notice, declaration, or direction of the type referred to in
this Section 12.11(f) given at any time to the Trustee and the Company by
     ----------------
Holders (or their duly appointed agents) of the requisite principal amount of
Outstanding Securities of the relevant series on the date such notice,
declaration, or direction is so given.

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

Section 12.12. Effect of Headings and Table of Contents.

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

Section 12.13. Benefits of Indenture.

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

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       54

<PAGE>

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

[Seal]                                PORTAL SOFTWARE, INC.

                                      By:____________________________
                                         Name:
                                         Title:

Attest:

_____________________________
Name:
Title:

                                      [______________________________]

                                      By:____________________________

                                         Name:
                                         Title:

Attest:

_____________________________
Name:
Title:

                                       55

<PAGE>

STATE OF _____________ )
                       ) ss.:
COUNTY OF ___________  )

                  On this __ day of _____________, 2002, before me personally
came _________________, to me known, who, being by me duly sworn, did depose and
say that he/she is _________________ of Portal Software, Inc., one of the
entities described in and which executed the above instrument; that he/she knows
the seal of said entity; that the seal or a facsimile thereof affixed to said
instrument is such seal; that it was so affixed by authority of the Board of
Directors of said entity, and that he/she signed his/her name thereto by like
authority.

                                      _______________________________
                                      Notary Public

                  In Witness Whereof, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                      _______________________________
                                      Notary Public

                                       56

<PAGE>

STATE OF                   )
                           )       ss.:
COUNTY OF                  )

                  On this __ day of ______________, 2002, before me personally
came ______________, to me known, who, being by me duly sworn, did depose and
say that he/she is ______________ of [________________], one of the entities
described in and which executed the above instrument; that he/she knows the seal
of said entity; that the seal or a facsimile thereof affixed to said instrument
is such seal; that it was so affixed by authority of the Board of Directors of
said entity, and that he/she signed his/her name thereto by like authority.

                                      ______________________________________
                                      Notary Public

                  In Witness Whereof, I have hereunto set my hand and affixed my
official seal the day and year in this certificate first above written.

                                      _______________________________________
                                      Notary Public

                                       57

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