Document:

Exhibit 4.3

                           IRON MOUNTAIN INCORPORATED

                             SUBORDINATED INDENTURE

                       Dated as of [             ], 200[_]

                       [                                ],

                                   as Trustee

<PAGE>

                           IRON MOUNTAIN INCORPORATED

         Reconciliation and tie between Trust Indenture Act of 1939 and
                        Indenture, dated as of [ ], 20[ ]

ss.310(a)(1)  ................................................   7.10
(a)(2)        ................................................   7.10
(a)(3)        ................................................   Not Applicable
(a)(4)        ................................................   Not Applicable
(a)(5)        ................................................   7.10
(b)           ................................................   7.10
ss.310(c)     ................................................   Not Applicable
ss.311(a)     ................................................   7.11
(b)           ................................................   7.11
(c)           ................................................   Not Applicable
ss.312(a)     ................................................   2.6
(b)           ................................................   10.3
(c)           ................................................   10.3
ss.313(a)     ................................................   7.6
(b)(1)        ................................................   7.6
(b)(2)        ................................................   7.6
(c)(1)        ................................................   7.6
(c)(2)        ................................................   7.6
(c)(3)        ................................................   7.6
(d)           ................................................   7.6
ss.314(a)     ................................................   4.2, 4.3, 10.5
(b)           ................................................   Not Applicable
(c)(1)        ................................................   10.4
(c)(2)        ................................................   10.4
(c)(3)        ................................................   Not Applicable
(d)           ................................................   Not Applicable
(e)           ................................................   10.5
(f)           ................................................   Not Applicable
ss.315(a)     ................................................   7.1(b)
(b)           ................................................   7.5
(c)           ................................................   7.1
(d)           ................................................   7.1
(e)           ................................................   6.14
ss.316(a)     ................................................   2.10
(a)(1)(A)     ................................................   6.12
(a)(1)(B)     ................................................   6.13
(b)           ................................................   6.8
ss.316(c)     ................................................   2.14
ss.317(a)(1)  ................................................   6.3
(a)(2)        ................................................   6.4
(b)           ................................................   2.5

<PAGE>

ss.318(a)     ................................................   10.1
(b)           ................................................   Not Applicable
(c)           ................................................   Not Applicable

Note: This  reconciliation  and tie shall not, for any purpose,  be deemed to be
part of the Indenture.

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<TABLE>
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                                Table of Contents

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ARTICLE I.  DEFINITIONS AND INCORPORATION BY REFERENCE........................................1

         Section 1.1.  Definitions............................................................1
         Section 1.2.  Other Definitions......................................................6
         Section 1.3.  Incorporation by Reference of Trust Indenture Act......................7
         Section 1.4.  Rules of Construction..................................................7

ARTICLE II.  THE SECURITIES...................................................................8

         Section 2.1.  Issuable in Series.....................................................8
         Section 2.2.  Establishment of Terms of Series of Securities.........................8
         Section 2.3.  Execution and Authentication..........................................10
         Section 2.4.  Registrar and Paying Agent............................................11
         Section 2.5.  Paying Agent to Hold Money in Trust...................................12
         Section 2.6.  Securityholder Lists..................................................12
         Section 2.7.  Transfer and Exchange.................................................12
         Section 2.8.  Mutilated, Destroyed, Lost and Stolen Securities......................13
         Section 2.9.  Outstanding Securities................................................13
         Section 2.10.  Treasury Securities..................................................14
         Section 2.11.  Temporary Securities.................................................14
         Section 2.12.  Cancellation.........................................................15
         Section 2.13.  Defaulted Interest...................................................15
         Section 2.14.  Record Date..........................................................15
         Section 2.15.  Global Securities....................................................15
         Section 2.16.  CUSIP Numbers........................................................16

ARTICLE III.  REDEMPTION.....................................................................17

         Section 3.1.  Notice to Trustee.....................................................17
         Section 3.2.  Selection of Securities to be Redeemed................................17
         Section 3.3.  Notice of Redemption..................................................17
         Section 3.4.  Effect of Notice of Redemption........................................18
         Section 3.5.  Deposit of Redemption Price...........................................18
         Section 3.6.  Securities Redeemed in Part...........................................19

ARTICLE IV.  COVENANTS.......................................................................19

         Section 4.1.  Payment of Principal and Interest.....................................19
         Section 4.2.  SEC Reports...........................................................19
         Section 4.3.  Compliance Certificate................................................19
         Section 4.4.  Stay, Extension and Usury Laws........................................20
         Section 4.5.  Corporate Existence...................................................20
         Section 4.6.  Taxes.................................................................20
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         Section 4.7.  Maintenance of Office or Agency.......................................21

ARTICLE V.  SUCCESSORS.......................................................................21

         Section 5.1.  Mergers, Consolidations or Sale of Assets.............................21
         Section 5.2.  Successor Corporation Substituted.....................................22

ARTICLE VI.  DEFAULTS AND REMEDIES...........................................................22

         Section 6.1.  Events of Default.....................................................22
         Section 6.2.  Acceleration of Maturity..............................................24
         Section 6.3.  Collection of Indebtedness and Suits for Enforcement by Trustee.......25
         Section 6.4.  Trustee May File Proofs of Claim......................................26
         Section 6.5.  Trustee May Enforce Claims Without Possession of Securities...........26
         Section 6.6.  Application of Money Collected........................................27
         Section 6.7.  Limitation on Suits...................................................27
         Section 6.8.  Unconditional Right of Holders to Receive Principal and Interest......28
         Section 6.9.  Restoration of Rights and Remedies....................................28
         Section 6.10.  Rights and Remedies Cumulative.......................................28
         Section 6.11.  Delay or Omission Not Waiver.........................................28
         Section 6.12.  Control by Holders...................................................29
         Section 6.13.  Waiver of Past Defaults..............................................29
         Section 6.14.  Undertaking for Costs................................................29

ARTICLE VII.  TRUSTEE........................................................................30

         Section 7.1.  Duties of Trustee.....................................................30
         Section 7.2.  Rights of Trustee.....................................................31
         Section 7.3.  Individual Rights of Trustee..........................................32
         Section 7.4.  Trustee's Disclaimer..................................................32
         Section 7.5.  Notice of Defaults....................................................32
         Section 7.6.  Reports by Trustee to Holders.........................................33
         Section 7.7.  Compensation and Indemnity............................................33
         Section 7.8.  Replacement of Trustee................................................34
         Section 7.9.  Successor Trustee by Merger, etc......................................35
         Section 7.10.  Eligibility; Disqualification........................................35
         Section 7.11.  Preferential Collection of Claims Against Company....................35

ARTICLE VIII.  LEGAL DEFEASANCE AND COVENANT DEFEASANCE......................................35

         Section 8.1.  Option to Effect Legal Defeasance or Covenant Defeasance..............35
         Section 8.2.  Legal Defeasance and Discharge........................................35
         Section 8.3.  Covenant Defeasance...................................................36
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                                  (continued)
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         Section 8.4.  Conditions to Legal or Covenant Defeasance............................36
         Section 8.5.  Deposited Money and Government Securities to be Held in Trust;
                              Other  Miscellaneous Provisions................................38
         Section 8.6.  Repayment to Company..................................................38
         Section 8.7.  Reinstatement.........................................................39

ARTICLE IX.  AMENDMENTS AND WAIVERS..........................................................39

         Section 9.1.  Without Consent of Holders............................................39
         Section 9.2.  With Consent of Holders...............................................40
         Section 9.3.  Limitations...........................................................40
         Section 9.4.  Compliance with Trust Indenture Act...................................41
         Section 9.5.  Revocation and Effect of Consents.....................................41
         Section 9.6.  Notation on or Exchange of Securities.................................42
         Section 9.7.  Trustee to Sign Amendments; Trustee Protected.........................42

ARTICLE X.  MISCELLANEOUS....................................................................42

         Section 10.1.  Trust Indenture Act Controls.........................................42
         Section 10.2.  Notices..............................................................42
         Section 10.3.  Communication by Holders with Other Holders..........................43
         Section 10.4.  Certificate and Opinion as to Conditions Precedent...................43
         Section 10.5.  Statements Required in Certificate or Opinion........................44
         Section 10.6.  Rules by Trustee and Agents..........................................44
         Section 10.7.  Legal Holidays.......................................................44
         Section 10.8.  No Personal Liability of Directors, Officers, Employees
                                 and Stockholders............................................44
         Section 10.9.  Counterparts.........................................................45
         Section 10.10.  Governing Laws......................................................45
         Section 10.11.  No Adverse Interpretation of Other Agreements.......................45
         Section 10.12.  Successors..........................................................45
         Section 10.13.  Severability........................................................45
         Section 10.14.  Table of Contents, Headings, Etc....................................45
         Section 10.15.  Securities in a Foreign Currency or in ECU..........................46
         Section 10.16.  Judgment Currency...................................................46

ARTICLE XI.  SINKING FUNDS...................................................................47

         Section 11.1.  Applicability of Article.............................................47
         Section 11.2.  Satisfaction of Sinking Fund Payments with Securities................47
         Section 11.3.  Redemption of Securities for Sinking Fund............................48

ARTICLE XII.  SUBSIDIARY GUARANTEES..........................................................48
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                                  (continued)
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         Section 12.1.  Subsidiary Guarantee.................................................48
         Section 12.2.  Limitation of Guarantor's Liability..................................50

ARTICLE XIII.  Subordination.................................................................50
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                                      -iv-

<PAGE>

                  Junior  Subordinated  Indenture  dated as of [ ], 200[_] among
Iron  Mountain  Incorporated,  a  Pennsylvania  corporation  ("Company"),   [the
guarantors party hereto] and [ ], a [ ], as Trustee ("Trustee").

                  Each  party  agrees as  follows  for the  benefit of the other
party and for the equal and  ratable  benefit of the  Holders of the  Securities
issued under this Indenture.

                                   ARTICLE I.
                   DEFINITIONS AND INCORPORATION BY REFERENCE

         Section 1.1. Definitions.

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

                  "Affiliate"  of any  specified  Person  means any other Person
directly or indirectly  controlling or controlled by or under direct or indirect
common  control with such  specified  Person.  For purposes of this  definition,
"control"  (including,  with  correlative  meanings,  the  terms  "controlling,"
"controlled  by" and "under common control  with"),  as used with respect to any
Person,  shall mean the  possession,  directly  or  indirectly,  of the power to
direct or cause the  direction  of the  management  or policies of such  Person,
whether through the ownership of voting  securities,  by agreement or otherwise;
provided,  however,  that  beneficial  ownership  of 10% or more  of the  voting
securities of a Person shall be deemed to be control.

                  "Agent" means any Registrar, Paying Agent or Service Agent.

                  "Authorized  Newspaper"  means  a  newspaper  in  an  official
language of the country of publication customarily published at least once a day
for at least five days in each calendar week and of general  circulation  in the
place in connection  with which the term is used. If it shall be  impractical in
the opinion of the Trustee to make any publication of any notice required hereby
in an Authorized Newspaper, any publication or other notice in lieu thereof that
is made or given by the Trustee  shall  constitute a sufficient  publication  of
such notice.

                  "Bearer  Security" means any Security,  including any interest
coupon appertaining thereto, that does not provide for the identification of the
Holder thereof.

                  "Board  of  Directors"  means the  Board of  Directors  of the
Company or any duly authorized committee thereof.

                  "Board  Resolution" means a copy of a resolution  certified by
the  Secretary or an Assistant  Secretary of the Company to have been adopted by
the Board of  Directors or pursuant to  authorization  by the Board of Directors
and to be in full force and effect on the date of the  certificate and delivered
to the Trustee.

                  "Business  Day"  means,  unless  otherwise  provided  by Board
Resolution,  Officers'  Certificate  or  supplemental  indenture  hereto  for  a
particular Series,  any day except a Saturday,
<PAGE>

Sunday or a legal  holiday  in The City of New York or at a place of  payment on
which banking  institutions  are  authorized  or required by law,  regulation or
executive order to close.

                  "Capital   Lease   Obligation"   means,   at  the   time   any
determination thereof is to be made, the amount of the liability in respect of a
capital  lease that would at such time be so required to be  capitalized  on the
balance sheet in accordance with GAAP.

                  "Capital   Stock"   means  any  and  all  shares,   interests,
participations,  rights or other equivalents  (however  designated) of corporate
stock, including, without limitation, with respect to partnerships,  partnership
interests  (whether  general or limited) and any other interest or participation
that  confers on a Person the right to receive a share of the profits and losses
of, or distributions of assets of, such partnership.

                  "Company"  means  the  party  named  as  such  above  until  a
successor replaces it and thereafter means the successor.

                  "Company  Order"  means a written  order signed in the name of
the Company by two Officers.

                  "Corporate  Trust Office"  means the  principal  office of the
Trustee at which at any time its corporate trust business shall be administered,
which office at the date hereof is located at [ ], Attention: [ ], or such other
address as the Trustee may designate  from time to time by notice to the Holders
and the  Company,  or the  principal  corporate  trust  office of any  successor
Trsutee (or such other address as a successor Trustee may designate from time to
time by notice to the Holders and the Company).

                  "Credit Agent" means [                          ].

                  "Credit Agreement" means [                          ].

                  "Default"  means any event that is or with the passage of time
or the giving of notice or both would be an Event of Default.

                  "Depository"  means,  with  respect to the  Securities  of any
Series  issuable or issued in whole or in part in the form of one or more Global
Securities,  the Person designated as Depository for such Series by the Company,
which Depository  shall be a clearing agency  registered under the Exchange Act;
and if at any time there is more than one such Person, "Depository" as used with
respect to the Securities of any Series shall mean the  Depository  with respect
to the Securities of such Series.

                  "Discount  Security"  means any Security  that provides for an
amount less than the stated  principal amount thereof to be due and payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.2.

                  "Disqualified  Stock" means any Capital  Stock  which,  by its
terms (or by the terms of any security into which it is convertible or for which
it is  exchangeable),  or  upon  the  happening  of  any  event,  matures  or is
mandatorily  redeemable,  for cash or other  property  (other than Capital Stock
that is not  Disqualified  Stock)  pursuant  to a  sinking  fund  obligation  or

                                      -2-
<PAGE>

otherwise,  or is redeemable  at the option of the  Securityholder  thereof,  in
whole  or in  part,  in each  case on or prior  to the  stated  maturity  of the
Securities.

                  "Dollars"  and "$" mean lawful  money of the United  States of
America.

                  "ECU" means the European  Currency  Unit as  determined by the
Commission of the European Union.

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended.

                  "Foreign  Currency" means any currency or currency unit issued
by a government other than the government of the United States of America.

                  "GAAP" means  generally  accepted  accounting  principles  set
forth in the opinions and  pronouncements of the Accounting  Principles Board of
the American  Institute of  Certified  Public  Accountants  and  statements  and
pronouncements  of the  Financial  Accounting  Standards  Board or in such other
statements by such other entity as have been  approved by a significant  segment
of the accounting profession, which are in effect on the date of this Indenture.

                  "Global  Security" or "Global  Securities" means a Security or
Securities,  as the case may be, in the form established pursuant to Section 2.2
evidencing all or part of a Series of  Securities,  issued to the Depository for
such Series or its nominee,  and  registered  in the name of such  Depository or
nominee.

                  "Government   Securities"  means  direct  obligations  of,  or
obligations guaranteed by, the United States of America for the payment of which
guarantee  or  obligations  the full faith and  credit of the  United  States of
America is pledged.

                  "Guarantee"  means,  as  applied  to  any  obligation,  (a)  a
guarantee (other than by endorsement of negotiable instruments for collection in
the ordinary course of business), direct or indirect, in any manner, of any part
or all of such obligation and (b) an agreement,  direct or indirect,  contingent
or otherwise,  the practical effect of which is to assure in any way the payment
or performance (or payment of damages in the event of non-performance) of all or
any part of such  obligation,  including,  without  limiting the foregoing,  the
obligation to reimburse amounts drawn down under letters of credit securing such
obligations.

                  "Hedging  Obligations"  means, with respect to any Person, the
obligations  of such Person under (a) interest  rate swap  agreements,  interest
rate cap agreements and interest rate collar agreements and (b) other agreements
or arrangements designed to protect such Person against fluctuations in interest
rates.

                  "Holder"  or  "Securityholder"  means a Person in whose name a
Security is registered or the holder of a Bearer Security.

                  "Indebtedness"  means (without  duplication),  with respect to
any  Person,  whether  recourse  is to all or a  portion  of the  assets of such
Person,  and whether or not contingent,  (a) every obligation of such Person for
money  borrowed,  (b)  every  obligation  of such  Person  evidenced  by  bonds,
debentures,   notes  or  other  similar  instruments,  (c)  every  reimbursement

                                      -3-
<PAGE>

obligation  of  such  Person  with  respect  to  letters  of  credit,   bankers'
acceptances  or similar  facilities  issued for the account of such Person,  (d)
every obligation of such Person issued or assumed as the deferred purchase price
of property or services, (e) every Capital Lease Obligation and every obligation
of such  Person in  respect  of Sale and  Leaseback  Transactions  that would be
required to be capitalized on the balance sheet in accordance with GAAP, (f) all
Disqualified  Stock of such  Person  valued at the greater of its  voluntary  or
involuntary  maximum fixed repurchase  price,  plus accrued and unpaid dividends
(unless included in such maximum  repurchase price), (g) all obligations of such
Person under or with respect to Hedging  Obligations  which would be required to
be  reflected on the balance  sheet as a liability of such Person in  accordance
with  GAAP and (h) every  obligation  of the type  referred  to in  clauses  (a)
through (g) of another  Person and  dividends  of another  Person the payment of
which,  in either  case,  such  Person  has  guaranteed.  For  purposes  of this
definition,  the "maximum fixed repurchase price" of any Disqualified Stock that
does not have a fixed repurchase price will be calculated in accordance with the
terms of such Disqualified  Stock as if such Disqualified Stock were repurchased
on any date on which Indebtedness is required to be determined  pursuant to this
Indenture,  and if such price is based  upon,  or  measured  by, the fair market
value of such  Disqualified  Stock, such fair market value will be determined in
good faith by the board of directors of the issuer of such  Disqualified  Stock.
Notwithstanding  the foregoing,  trade accounts payable and accrued  liabilities
arising in the ordinary course of business and any liability for federal,  state
or  local  taxes or  other  taxes  owed by such  Person  will not be  considered
Indebtedness for purposes of this definition. The amount outstanding at any time
of any  Indebtedness  issued  with  original  issue  discount  is the  aggregate
principal  amount  at  maturity  of  such   Indebtedness,   less  the  remaining
unamortized  portion of the original issue discount of such Indebtedness at such
time, as determined in accordance with GAAP.

                  "Indenture"  means this Indenture as amended and  supplemented
from time to time and shall include the form and terms of  particular  Series of
Securities  established as contemplated  hereunder and any related  supplemental
indenture.

                  "interest" with respect to any Discount  Security which by its
terms bears interest only after Maturity, means interest payable after Maturity.

                  "Maturity,"   when  used  with  respect  to  any  Security  or
installment of principal thereof,  means the date on which the principal of such
Security or such 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,  notice  of option  to elect  repayment  or
otherwise.

                  "Obligations"   means  any  principal,   interest   (including
post-petition  interest,  whether or not allowed as a claim in any  proceeding),
penalties, fees, costs, expenses, indemnifications,  reimbursements, damages and
other liabilities payable under or in connection with any Indebtedness.

                  "Officer" means the Chairman of the Board, the Chief Executive
Officer,  the  President,  the Chief  Operating  Officer,  the  Chief  Financial
Officer, any Vice-President,  the Treasurer, the Controller,  the Secretary, any
Assistant Treasurer or any Assistant Secretary of any Person.

                                      -4-
<PAGE>

                  "Officers'  Certificate"  means a certificate  signed,  unless
otherwise specified, by any two of the Chairman of the Board, a Vice Chairman of
the Board,  the President,  the Chief  Financial  Officer,  the Controller or an
Executive Vice President of the Company, and delivered to the Trustee.

                  "Opinion of Counsel" means a written  opinion of legal counsel
who is reasonably  acceptable to the Trustee.  The counsel may be an employee of
or counsel to the Company.

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

                  "principal"  of a Security means the principal of the Security
plus, when appropriate,  the premium,  if any, on, and any Additional Amounts in
respect of, the Security.

                  "Representative" means, for purposes of Article 13, the Credit
Agent or other  agent,  trustee or  representative  for any  Senior  Debt of the
Company or a Guarantor, as the case may be.

                  "Responsible  Officer"  means,  when used with  respect to the
Trustee,  any officer  within the  corporate  trust  department  of the Trustee,
including any vice  president,  assistant vice president,  assistant  secretary,
assistant  treasurer,  trust  officer or any other  officer of the  Trustee  who
customarily  performs functions similar to those performed by the persons who at
the time shall be such officers,  respectively,  or to whom any corporate  trust
matter is referred  because of such person's  knowledge of and familiarity  with
the  particular  subject  and  who  shall  have  direct  responsibility  for the
administration of this Indenture.

                  "Restricted  Subsidiary"  shall have the  meaning set forth in
the applicable  supplemental  indenture as to each Series of Securities.  If not
defined  in the  applicable  supplemental  indenture,  then  there  shall  be no
Restricted Subsidiaries as to such Series.

                  "Sale and  Leaseback  Transaction"  means any  transaction  or
series of related transactions pursuant to which a Person sells or transfers any
property  or asset  in  connection  with  the  leasing,  or the  resale  against
installment payments, of such property or asset to the seller or transferor.

                  "SEC"  means  the  United  States   Securities   and  Exchange
Commission.

                  "Securities" means the debentures,  notes or other instruments
of Indebtedness of the Company of any Series  authenticated  and delivered under
this Indenture.

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

                  "Senior Bank Debt" means all Obligations  outstanding under or
in  connection  with  the  Credit  Agreement   (including   Guarantees  of  such
Obligations by Subsidiaries of the Company).

                  "Senior Debt" means [                         ].

                                      -5-
<PAGE>

                  "Series"  or  "Series  of  Securities"  means  each  series of
debentures,  notes or other debt  instruments of the Company created pursuant to
Sections 2.1 and 2.2 hereof.

                  "Significant  Subsidiary" means any Subsidiary that would be a
"significant  subsidiary" as defined in Article 1, Rule 1-02 of Regulation  S-X,
promulgated  pursuant to the Securities  Act, as such regulation is in effect on
the date hereof.

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

                  "Subsidiary"   means,   with   respect  to  any  Person,   any
corporation,  association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock  entitled  (without  regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled,  directly or indirectly, by
such  Person  or one or more of the  other  Subsidiaries  of  such  Person  or a
combination thereof.

                  "Subsidiary  Guarantee"  means  a  Guarantee  of  a  Guarantor
pursuant to Article XII hereof.

                  "TIA"  means the  Trust  Indenture  Act of 1939 (15 U.S.  Code
ss.ss.  77aaa-77bbbb)  as in  effect  on the date of this  Indenture;  provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such
date,  "TIA"  means,  to the extent  required by any such  amendment,  the Trust
Indenture Act as so amended.

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

         Section 1.2. Other Definitions.

TERM                                                                DEFINED IN
                                                                      SECTION

"Bankruptcy Law"                                                         6.1
"Benefited Party"                                                       12.1
"Covenant Defeasance"                                                    8.3
"Custodian"                                                              6.1
"Event of Default"                                                       6.1
"Guarantor"                                                             12.1
"Journal"                                                              10.15
"Judgment Currency"                                                    10.16
"Legal Defeasance"                                                       8.2
"Legal Holiday"                                                         10.7

                                      -6-
<PAGE>

"mandatory sinking fund payment"                                        11.1
"Market Exchange Rate"                                                 10.15
"New York Banking Day"                                                 10.16
"optional sinking fund payment"                                         11.1
"Paying Agent"                                                           2.4
"Registrar"                                                              2.4
"Required Currency"                                                    10.16
"Service Agent"                                                          2.4
"Successor Person"                                                       5.1

         Section 1.3. Incorporation by Reference of Trust Indenture Act.

                  Whenever this Indenture  refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:

                  "Commission" means the SEC.

                  "indenture securities" means the Securities and the Subsidiary
Guarantees, if any.

                  "indenture    security   holder"   means   a   Holder   or   a
Securityholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture  trustee"  or  "institutional  trustee"  means  the
Trustee.

                  "obligor" on the indenture  securities means the Company,  the
Guarantors,  if any,  and any  successor  obligor  upon  the  Securities  or any
Subsidiary Guarantee, as the case may be.

                  All other terms used in this Indenture that are defined by the
TIA,  defined by TIA  reference to another  statute or defined by SEC rule under
the TIA and not otherwise defined herein are used herein as so defined.

         Section 1.4. Rules of Construction.

                  Unless the context otherwise requires:

                  (a) a term has the meaning assigned to it;

                  (b) an accounting  term not otherwise  defined has the meaning
         assigned to it in accordance with GAAP;

                  (c) "or" is not exclusive;

                  (d)  words in the  singular  include  the  plural,  and in the
         plural include the singular;

                  (e) provisions  apply to successive  events and  transactions;
         and

                                      -7-
<PAGE>

                  (f)  references  to sections of or rules under the  Securities
         Act  or the  Exchange  Act  shall  be  deemed  to  include  substitute,
         replacement or successor sections or rules adopted by the SEC from time
         to time.

                                  ARTICLE II.
                                 THE SECURITIES

         Section 2.1. Issuable in Series.

                  The  aggregate  principal  amount  of  Securities  that may be
authenticated  and delivered  under this Indenture is unlimited.  The Securities
may be  issued  in one or more  Series.  All  Securities  of a  Series  shall be
identical  except  as may be set  forth in a Board  Resolution,  a  supplemental
indenture  or an  Officers'  Certificate  detailing  the  adoption  of the terms
thereof pursuant to the authority granted under a Board Resolution.  In the case
of Securities of a Series to be issued from time to time, the Board  Resolution,
Officers'  Certificate or  supplemental  indenture may provide for the method by
which specified terms (such as interest rate, maturity date, record date or date
from which interest  shall accrue) are to be  determined.  Securities may differ
between Series in respect of any matters, provided that all Series of Securities
shall be equally and ratably entitled to the benefits of the Indenture.

         Section 2.2. Establishment of Terms of Series of Securities.

                  At or prior to the issuance of any Securities within a Series,
the following shall be established (as to the Series  generally,  in the case of
Subsection 2.2.1 and either as to such Securities within the Series or as to the
Series  generally in the case of  Subsections  2.2.2 through  2.2.21) by a Board
Resolution,  a supplemental  indenture or an Officers'  Certificate  pursuant to
authority granted under a Board Resolution:

                  2.2.1.  the title of the Series (which shall  distinguish  the
Securities of that particular Series from the Securities of any other Series);

                  2.2.2.  the price or prices  (expressed as a percentage of the
principal amount thereof) at which the Securities of the Series will be issued;

                  2.2.3.  any limit upon the aggregate  principal  amount of the
Securities of the Series which may be  authenticated  and  delivered  under this
Indenture  (except for Securities  authenticated and delivered upon registration
of transfer  of, or in  exchange  for, or in lieu of,  other  Securities  of the
Series  pursuant  to Section  2.7,  2.8,  2.11,  3.6 or 9.6,  or any  applicable
provision of a supplemental indenture);

                  2.2.4.  the  date or  dates  on  which  the  principal  of the
Securities of the Series is payable;

                  2.2.5.  the rate or rates (which may be fixed or variable) per
annum  or,  if  applicable,  the  method  used to  determine  such rate or rates
(including,  but not limited to, any commodity,  commodity index, stock exchange
index or  financial  index) at which the  Securities  of the  Series  shall bear
interest,  if any,  the date or dates from which such  interest,  if any,  shall

                                      -8-
<PAGE>

accrue, the date or dates on which such interest,  if any, shall commence and be
payable and any regular  record date for the  interest  payable on any  interest
payment date;

                  2.2.6.  the  place  or  places  where  the  principal  of  and
interest,  if any, on the  Securities  of the Series  shall be  payable,  or the
method of such payment, if by wire transfer, mail or other means;

                  2.2.7. if applicable,  the period or periods within which, the
price or prices at which and the terms and conditions  upon which the Securities
of the  Series  may be  redeemed,  in  whole or in part,  at the  option  of the
Company;

                  2.2.8.  the  obligation,  if any,  of the Company to redeem or
purchase the Securities of the Series  pursuant to any sinking fund or analogous
provisions or at the option of a Holder thereof and the period or periods within
which,  the price or prices at which  and the terms and  conditions  upon  which
Securities  of the Series shall be redeemed or  purchased,  in whole or in part,
pursuant to such obligation;

                  2.2.9.  the dates, if any, on which and the price or prices at
which the  Securities  of the Series will be  repurchased  by the Company at the
option of the Holders  thereof and other  detailed  terms and provisions of such
repurchase obligations;

                  2.2.10. if other than denominations of $1,000 and any integral
multiple thereof,  the denominations in which the Securities of the Series shall
be issuable;

                  2.2.11. the forms of the Securities of the Series in bearer or
fully registered form (and, if in fully registered form,  whether the Securities
will be issuable as Global Securities);

                  2.2.12.  if  other  than the  principal  amount  thereof,  the
portion of the  principal  amount of the  Securities of the Series that shall be
payable upon  declaration of  acceleration of the maturity  thereof  pursuant to
Section 6.2;

                  2.2.13.  the currency of denomination of the Securities of the
Series, which may be Dollars or any Foreign Currency, including, but not limited
to, the ECU, and if such currency of denomination is a composite  currency other
than the ECU, the agency or  organization,  if any,  responsible  for overseeing
such composite currency;

                  2.2.14.  the  designation  of  the  currency,   currencies  or
currency units in which payment of the principal of and interest, if any, on the
Securities of the Series will be made;

                  2.2.15.  if payments of principal  of or interest,  if any, on
the  Securities  of the  Series  are to be  made in one or  more  currencies  or
currency  units  other  than  that  or  those  in  which  such   Securities  are
denominated, the manner in which the exchange rate with respect to such payments
will be determined;

                  2.2.16.  the  manner  in  which  the  amounts  of  payment  of
principal  of or  interest,  if any,  on the  Securities  of the Series  will be
determined,  if such amounts may be determined by reference to an index based on
a currency or currencies or by reference to a commodity,  commodity index, stock
exchange index or financial index;

                                      -9-
<PAGE>

                  2.2.17.  the  provisions,  if any,  relating  to any  security
provided for the Securities of the Series;

                  2.2.18.  any  addition  to or change in the  Events of Default
which applies to any Securities of the Series and any change in the right of the
Trustee or the  requisite  Holders of such  Securities  to declare the principal
amount thereof due and payable pursuant to Section 6.2;

                  2.2.19.  any addition to or change in the  covenants set forth
in Articles IV or V which applies to Securities of the Series;

                  2.2.20. any other terms of the Securities of the Series (which
may modify or delete any  provision of this  Indenture  insofar as it applies to
such Series); and

                  2.2.21.  any depositories,  interest rate calculation  agents,
exchange rate  calculation  agents or other agents with respect to Securities of
such Series if other than those appointed herein.

                  All  Securities  of any one  Series  need not be issued at the
same time and may be issued from time to time, consistent with the terms of this
Indenture,  if so provided by or pursuant to the Board Resolution,  supplemental
indenture  or  Officers'  Certificate  referred  to  above,  and the  authorized
principal  amount of any Series may not be increased to provide for issuances of
additional  Securities of such Series,  unless otherwise  provided in such Board
Resolution, supplemental indenture or Officers' Certificate.

         Section 2.3. Execution and Authentication.

                  Two  Officers  shall sign the  Securities  for the  Company by
manual or  facsimile  signature.  An  Officer of each  Guarantor  shall sign the
Subsidiary Guarantee for the Guarantor by manual or facsimile signature.

                  If an Officer  whose  signature is on a Security or Subsidiary
Guarantee no longer holds that office at the time the Security is authenticated,
the Security or Subsidiary Guarantee shall nevertheless be valid.

                  A  Security  shall  not be valid  until  authenticated  by the
manual signature of the Trustee or an authenticating agent. Such signature shall
be  conclusive  evidence  that the  Security has been  authenticated  under this
Indenture.

                  The  Trustee  shall  at any  time,  and  from  time  to  time,
authenticate  Securities for original issue in the principal  amount provided in
the Board Resolution,  supplemental  indenture hereto or Officers'  Certificate,
upon receipt by the Trustee of a Company Order. Such Company Order may authorize
authentication and delivery pursuant to oral or electronic instructions from the
Company or its duly authorized agent or agents, which oral instructions shall be
promptly  confirmed  in writing.  Each  Security  shall be dated the date of its
authentication  unless otherwise provided by a Board Resolution,  a supplemental
indenture hereto or an Officers' Certificate.

                  The  aggregate  principal  amount of  Securities of any Series
outstanding  at any time may not  exceed any limit  upon the  maximum  principal
amount for such Series set forth in

                                      -10-
<PAGE>

the Board  Resolution,  supplemental  indenture hereto or Officers'  Certificate
delivered pursuant to Section 2.2, except as provided in Section 2.8.

                  Prior to the issuance of Securities of any Series, the Trustee
shall have  received and  (subject to Section  7.2) shall be fully  protected in
relying on: (a) the Board Resolution, supplemental indenture hereto or Officers'
Certificate  establishing  the  form  of the  Securities  of that  Series  or of
Securities  within that Series and the terms of the Securities of that Series or
of Securities within that Series,  (b) an Officers'  Certificate  complying with
Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

                  The  Trustee  shall have the right to decline to  authenticate
and deliver any Securities of such Series: (a) if the Trustee,  being advised by
counsel,  determines  that such action may not lawfully be taken;  or (b) if the
Trustee in good faith by its board of directors or trustees, executive committee
or a trust committee of directors  and/or  vice-presidents  shall determine that
such action  would  expose the Trustee to personal  liability  to Holders of any
then outstanding Series of Securities.

                  The Trustee may appoint an authenticating  agent acceptable to
the  Company to  authenticate  Securities.  Unless  limited by the terms of such
appointment,  an authenticating  agent may authenticate  Securities whenever the
Trustee may do so. Each  reference in this  Indenture to  authentication  by the
Trustee includes  authentication by such agent. An authenticating  agent has the
same rights as an Agent to deal with the Company or an Affiliate.

         Section 2.4. Registrar and Paying Agent.

                  The Company  shall  maintain,  with  respect to each Series of
Securities,  at the  place or  places  specified  with  respect  to such  Series
pursuant to Section 2.2, an office or agency where Securities of such Series may
be presented or surrendered for payment  ("Paying  Agent"),  where Securities of
such  Series  may be  surrendered  for  registration  of  transfer  or  exchange
("Registrar") and where notices and demands to or upon the Company in respect of
the  Securities  of such  Series  and this  Indenture  may be  served  ("Service
Agent").  The  Registrar  shall keep a register  with  respect to each Series of
Securities  and to their  transfer  and  exchange.  The Company will give prompt
written  notice to the  Trustee of the name and  address,  and any change in the
name or address,  of each  Registrar,  Paying Agent or Service Agent.  If at any
time the Company  shall fail to maintain  any such  required  Registrar,  Paying
Agent or Service  Agent or shall fail to furnish the  Trustee  with the name and
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate  Trust Office of the Trustee,  and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.

                  The Company may also from time to time  designate  one or more
co-registrars,  additional  paying agents or additional  service  agents and may
from time to time rescind such  designations;  provided,  however,  that no such
designation  or  rescission  shall in any  manner  relieve  the  Company  of its
obligations  to maintain a  Registrar,  Paying  Agent and Service  Agent in each
place so specified pursuant to Section 2.2 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 name or address of any such
co-registrar,  additional  paying

                                      -11-
<PAGE>

agent  or  additional   service  agent.  The  term   "Registrar"   includes  any
co-registrar;  the term "Paying Agent" includes any additional paying agent; and
the term "Service Agent" includes any additional  service agent.  The Company or
any Guarantor may act as Paying Agent,  Registrar or Service Agent.  The Company
shall enter into an appropriate  agency  agreement with any Agent not a party to
this  Indenture,  which  shall be  subject  to any  obligations  imposed  by the
provisions of the TIA. The  agreement  shall  implement  the  provisions of this
Indenture that relate to such Agent.

                  The Company hereby appoints the Trustee the initial Registrar,
Paying Agent and Service Agent for each Series unless another Registrar,  Paying
Agent or  Service  Agent,  as the case may be,  is  appointed  prior to the time
Securities of that Series are first issued.

         Section 2.5. Paying Agent to Hold Money in Trust.

                  The Company  shall  require  each Paying  Agent other than the
Trustee to agree in writing  that the Paying  Agent will hold in trust,  for the
benefit of  Securityholders  of any Series of  Securities,  or the Trustee,  all
money held by the Paying Agent for the payment of  principal  of or premium,  if
any, or interest on the Series of Securities, and will notify the Trustee of any
default by the Company or the  Guarantors in making any such payment.  While any
such default continues,  the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may require a Paying Agent to
pay all money held by it to the Trustee.  Upon payment over to the Trustee,  the
Paying Agent (if other than the Company or a  Subsidiary)  shall have no further
liability for the money delivered to the Trustee. If the Company or a Subsidiary
acts as Paying Agent,  it shall  segregate and hold in a separate trust fund for
the benefit of Securityholders  of any Series of Securities,  subject to Article
XIII hereof, all money held by it as Paying Agent.

         Section 2.6. Securityholder Lists.

                  The  Trustee  shall  preserve  in  as  current  a  form  as is
reasonably  practicable  the most recent list  available  to it of the names and
addresses of  Securityholders  of each Series of Securities and shall  otherwise
comply with TIA ss.  312(a).  If the Trustee is not the  Registrar,  the Company
shall furnish to the Trustee at least ten days before each interest payment date
and at such other times as the  Trustee  may request in writing a list,  in such
form and as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.

         Section 2.7. Transfer and Exchange.

                  Where Securities of a Series are presented to the Registrar or
a co-registrar  with a request to register a transfer or to exchange them for an
equal  principal  amount of Securities of the same Series,  the Registrar  shall
register  the  transfer  or make  the  exchange  if its  requirements  for  such
transactions are met. To permit  registrations  of transfers and exchanges,  the
Trustee shall  authenticate  Securities at the Registrar's  request.  No service
charge  shall be made for any  registration  of transfer or exchange  (except as
otherwise expressly permitted herein),  but the Company may require payment of a
sum sufficient to cover any transfer tax or similar  governmental charge payable
in  connection   therewith   (other  than  any  such  transfer  tax  or  similar

                                      -12-
<PAGE>

governmental  charge  payable upon  exchanges  pursuant to Sections 2.11, 3.6 or
9.6).

                  Neither the Company nor the Registrar shall be required (a) to
issue,  register the transfer of, or exchange  Securities  of any Series for the
period beginning at the opening of business  fifteen days immediately  preceding
the mailing of a notice of redemption of Securities of that Series  selected for
redemption  and ending at the close of business on the day of such  mailing,  or
(b) to register the transfer of or exchange  Securities of any Series  selected,
called or being called for  redemption as a whole or the portion being  redeemed
of any such Securities selected, called or being called for redemption in part.

         Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities.

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

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

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

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

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

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

         Section 2.9. Outstanding Securities.

                                      -13-
<PAGE>

                  The Securities  outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for  cancellation,  those  reductions  in the  interest on a Global  Security
effected  by the  Trustee in  accordance  with the  provisions  hereof and those
described in this Section as not outstanding.

                  If a Security is replaced  pursuant to Section  2.8, it ceases
to be outstanding  until the Trustee receives proof  satisfactory to it that the
replaced Security is held by a bona fide purchaser.

                  If the Paying Agent (other than the Company,  a Subsidiary  or
an  Affiliate of any thereof)  holds on the Maturity of  Securities  of a Series
money sufficient to pay such Securities  payable on that date, then on and after
that date such  Securities of the Series cease to be outstanding and interest on
them ceases to accrue.

                  A  Security  does not  cease  to be  outstanding  because  the
Company,  a Guarantor or an  Affiliate  of the Company or a Guarantor  holds the
Security.

                  In determining  whether the Holders of the requisite principal
amount of outstanding Securities have given any request, demand,  authorization,
direction,  notice,  consent  or waiver  hereunder,  the  principal  amount of a
Discount Security that shall be deemed to be outstanding for such purposes shall
be the amount of the  principal  thereof that would be due and payable as of the
date of such  determination  upon a declaration of  acceleration of the Maturity
thereof pursuant to Section 6.2.

         Section 2.10. Treasury Securities.

                  In determining  whether the Holders of the required  principal
amount  of  Securities  of a  Series  have  concurred  in any  request,  demand,
authorization,  direction,  notice,  consent or waiver,  Securities  of a Series
owned by the Company or an Affiliate shall be  disregarded,  except that for the
purposes of determining whether the Trustee shall be protected in relying on any
such request, demand, authorization,  direction, notice, consent or waiver, only
Securities of a Series that a Responsible  Officer of the Trustee actually knows
are so owned shall be so disregarded.  Notwithstanding the foregoing, Securities
of a  Series  that  are  to be  acquired  by the  Company,  any  Guarantor,  any
Subsidiary of the Company or any Guarantor or an Affiliate of the Company or any
Guarantor  pursuant to an exchange offer,  tender offer or other agreement shall
not be deemed to be owned by the Company,  such  Guarantor,  a Subsidiary of the
Company or such Guarantor or an Affiliate of the Company or such Guarantor until
legal title to such  Securities  passes to the  Company,  such  Guarantor,  such
Subsidiary or such Affiliate, as the case may be.

         Section 2.11. Temporary Securities.

                  Until  definitive  Securities  are  ready  for  delivery,  the
Company may prepare and the Trustee shall authenticate temporary Securities upon
a Company Order.  Temporary  Securities  shall be  substantially  in the form of
definitive  Securities  but may  have  variations  that  the  Company  considers
appropriate for temporary  Securities.  Without  unreasonable delay, the Company
shall  prepare  and the  Trustee  upon  request  shall  authenticate  definitive
Securities  of the same Series and date of maturity  in exchange  for  temporary
Securities. Until so exchanged,  temporary securities shall have the same rights
under this Indenture as the definitive Securities.

                                      -14-
<PAGE>

         Section 2.12. Cancellation.

                  The Company at any time may deliver  Securities to the Trustee
for  cancellation.  The  Registrar  and the Paying  Agent  shall  forward to the
Trustee  any  Securities  surrendered  to them  for  registration  of  transfer,
exchange or payment.  The Trustee shall cancel all  Securities  surrendered  for
transfer,  exchange,  payment,  replacement or cancellation and shall dispose of
such canceled  Securities  (subject to the record  retention  requirement of the
Exchange Act) in accordance with the Trustee's customary  practice.  The Company
may not issue new Securities to replace Securities that it has paid or delivered
to the Trustee for cancellation.

         Section 2.13. Defaulted Interest.

                  If the  Company  and the  Guarantors  default  in a payment of
interest  on Series of  Securities,  the Company or any such  Guarantor  (to the
extent  of its  obligations  under  its  Subsidiary  Guarantee)  shall  pay  the
defaulted  interest in any lawful  manner plus, to the extent  lawful,  interest
payable on the defaulted interest, to the Persons who are Securityholders of the
Series on a subsequent  special record date, which date shall be at the earliest
practicable  date but in all  events at least  five  Business  Days prior to the
payment  date,  in each  case at the  rate  provided  for  with  respect  to the
applicable  Securities.  The  Company  shall fix or cause to be fixed  each such
special record date and payment date, and shall, promptly thereafter, notify the
Trustee of any such date. At least 15 days before the special  record date,  the
Company (or the Trustee, in the name of and at the expense of the Company) shall
mail to  Securityholders  of the Series a notice that states the special  record
date,  the related  payment date and the amount of such interest to be paid. The
Company  and the  Guarantors  may pay  defaulted  interest  in any other  lawful
manner.

         Section 2.14. Record Date.

                  The record date for  purposes of  determining  the identity of
Securityholders  of the Series entitled to vote or consent to any action by vote
or consent  authorized or permitted  under this Indenture shall be determined as
provided for in TIA ss. 316(c).

         Section 2.15. Global Securities.

                  2.15.1.   Terms  of   Securities.   A  Board   Resolution,   a
supplemental  indenture  hereto  or an  Officers'  Certificate  shall  establish
whether the  Securities  of a Series  shall be issued in whole or in part in the
form  of one or more  Global  Securities  and the  Depository  for  such  Global
Security or Securities.

                  2.15.2. Transfer and Exchange.  Notwithstanding any provisions
to the  contrary  contained  in Section  2.7 of the  Indenture  and in  addition
thereto,  any Global Security shall be  exchangeable  pursuant to Section 2.7 of
the Indenture for  Securities  registered in the names of Holders other than the
Depository for such Security or its nominee only if (i) such Depository notifies
the Company that it is unwilling  or unable to continue as  Depository  for such
Global Security or if at any time such Depository ceases to be a clearing agency
registered  under the Exchange  Act,  and, in either case,  the Company fails to
appoint a successor  Depository  within 90 days of such event,  (ii) the Company
executes and delivers to the Trustee an Officers' Certificate to the effect that
such Global  Security shall be so exchangeable or (iii) an Event of Default with

                                      -15-
<PAGE>

respect  to the  Securities  represented  by such  Global  Security  shall  have
happened and be continuing. Any Global Security that is exchangeable pursuant to
the preceding  sentence shall be exchangeable for Securities  registered in such
names as the Depository shall direct in writing in an aggregate principal amount
equal to the principal amount of the Global Security with like tenor and terms.

                  Except as provided in this Section  2.15.2,  a Global Security
may not be transferred  except as a whole by the Depository with respect to such
Global Security to a nominee of such Depository, by a nominee of such Depository
to such Depository or another nominee of such Depository or by the Depository or
any such  nominee to a  successor  Depository  or a nominee of such a  successor
Depository.

                  2.15.3.  Legend.  Any Global Security  issued  hereunder shall
bear a legend in substantially the following form:

                  "This Security is a Global  Security within the meaning of the
Indenture  hereinafter  referred  to  and  is  registered  in  the  name  of the
Depository or a nominee of the  Depository.  This Security is  exchangeable  for
Securities  registered in the name of a Person other than the  Depository or its
nominee only in the limited  circumstances  described in the Indenture,  and may
not be  transferred  except as a whole by the  Depository  to a  nominee  of the
Depository,  by a nominee of the Depository to the Depository or another nominee
of the  Depository  or by the  Depository  or any such  nominee  to a  successor
Depository or a nominee of such a successor Depository."

                  2.15.4.  Acts of Holders.  The  Depository,  as a Holder,  may
appoint agents and otherwise authorize participants to give or take any request,
demand, authorization,  direction, notice, consent, waiver or other action which
a Holder is entitled to give or take under the Indenture.

                  2.15.5. Payments. Notwithstanding the other provisions of this
Indenture, unless otherwise specified as contemplated by Section 2.2, payment of
the principal of and interest,  if any, on any Global  Security shall be made to
the Holder thereof.

                  2.15.6.  Consents,   Declaration  and  Directions.  Except  as
provided in Section 2.15.5, the Company, the Trustee and any Agent shall treat a
Person as the Holder of such principal amount of outstanding  Securities of such
Series  represented  by a Global  Security  as shall be  specified  in a written
statement of the Depository with respect to such Global  Security,  for purposes
of obtaining any consents,  declarations,  waivers or directions  required to be
given by the Holders pursuant to this Indenture.

         Section 2.16. CUSIP Numbers.

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

                                      -16-
<PAGE>

omission of such numbers.  The Company will  promptly  notify the Trustee of any
change in the CUSIP number.

                                  ARTICLE III.
                                   REDEMPTION

         Section 3.1. Notice to Trustee.

                  The Company  may,  with  respect to any Series of  Securities,
reserve the right to redeem and pay the Series of  Securities or may covenant to
redeem and pay the Series of  Securities or any part thereof prior to the Stated
Maturity  thereof  at  such  time  and on such  terms  as  provided  for in such
Securities.  If a Series of Securities is redeemable and the Company wants or is
obligated  to redeem  prior to the Stated  Maturity  thereof  all or part of the
Series of Securities  pursuant to the terms of such Securities,  it shall notify
the  Trustee  of the  redemption  date and the  principal  amount  of  Series of
Securities  to be redeemed.  The Company  shall give the notice at least 45 days
before the  redemption  date (or such shorter notice as may be acceptable to the
Trustee),  which notice shall be in the form of an Officers' Certificate setting
forth (i) the Section of this Indenture  pursuant to which the redemption  shall
occur,  (ii) the redemption  date, (iii) the principal amount of Securities of a
Series to be redeemed and (iv) the redemption price.

         Section 3.2. Selection of Securities to be Redeemed.

                  If  less  than  all  of any  Series  of  Securities  are to be
redeemed at any time,  the Trustee shall select the  Securities of the Series to
be redeemed among the applicable  Holders of such Series in compliance  with the
requirements of the principal national securities exchange, if any, on which the
Securities  are listed or, if the  Securities  are not so listed,  on a pro rata
basis, by lot or in accordance with any other method the Trustee  considers fair
and appropriate, provided that no Securities of $1,000 or less shall be redeemed
in part. In the event of partial redemption by lot, the particular Securities to
be redeemed shall be selected,  unless otherwise  provided herein, not less than
30 nor more than 60 days prior to the  redemption  date by the Trustee  from the
outstanding Securities not previously called for redemption.

                  The Trustee  shall  promptly  notify the Company in writing of
the  Securities of the Series  selected for  redemption  and, in the case of any
Security  selected for partial  redemption,  the principal  amount thereof to be
redeemed.  Securities and portions of Securities selected shall be in amounts of
$1,000 or whole  multiples of $1,000;  except that if all of the Securities of a
Holder are to be redeemed,  the entire  outstanding amount of Securities held by
such  Holder,  even if not a multiple of $1,000,  shall be  redeemed.  Except as
provided in the preceding  sentence,  provisions of this Indenture that apply to
Securities  of a  Series  called  for  redemption  also  apply  to  portions  of
Securities of that Series called for redemption.

         Section 3.3. Notice of Redemption.

                  Unless  otherwise  indicated for a particular  Series by Board
Resolution,  a supplemental  indenture  hereto or an Officers'  Certificate,  at
least 30 days but not more than 60 days before a  redemption  date,  the Company
shall mail or cause to be mailed a notice of

                                      -17-
<PAGE>

redemption  by  first-class  mail  to each  Holder  whose  Securities  are to be
redeemed and if any Bearer Securities are outstanding, publish on one occasion a
notice in an Authorized Newspaper.

                  The notice shall  identify the  Securities of the Series to be
redeemed (including the CUSIP numbers, if any) and shall state:

                  (a) the redemption date;

                  (b) the redemption price  (including  accrued interest to, but
         excluding, the redemption date);

                  (c) if any  Security of the Series  called for  redemption  is
         being  redeemed in part,  the portion of the  principal  amount of such
         Security  to be  redeemed  and  that,  after the  redemption  date upon
         surrender of such  Security,  a new Security or Securities in principal
         amount  equal  to  the   unredeemed   portion   shall  be  issued  upon
         cancellation of the original Security;

                  (d) the name and address of the Paying Agent;

                  (e) that  Securities of the Series called for redemption  must
         be surrendered to the Paying Agent to collect the redemption price;

                  (f) that,  unless the  Company  defaults in the making of such
         redemption  payment,  interest on  Securities  of the Series called for
         redemption ceases to accrue on and after the redemption date; and

                  (g) any other  information  as may be required by the terms of
         the particular Series or the Securities of a Series being redeemed.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

         Section 3.4. Effect of Notice of Redemption.

                  Once notice of  redemption  is mailed or published as provided
in Section 3.3,  Securities  of a Series  called for  redemption  become due and
payable  on the  redemption  date  and at the  redemption  price.  A  notice  of
redemption may not be conditional.  On and after the redemption date, unless the
Company defaults in the payment of the redemption price,  interest will cease to
accrue on the  Securities of a Series called for called for  redemption  and all
rights of Holders with respect to such Securities will terminate  except for the
right to receive payment of the redemption  price upon surrender for redemption.
Upon  surrender  to the  Paying  Agent,  such  Securities  shall  be paid at the
redemption price plus accrued interest to but excluding the redemption date.

         Section 3.5. Deposit of Redemption Price.

                  On or before the  redemption  date,  the Company shall deposit
with the  Paying  Agent  money  sufficient  to pay the  redemption  price of and
accrued interest,  if any, on all

                                      -18-
<PAGE>

Securities  to be  redeemed  on that  date.  If the  Company  complies  with the
provisions of the preceding sentence, on and after the redemption date, interest
shall cease to accrue on the Securities or the portions of Securities called for
redemption,  whether or not such  Securities  are presented for payment.  If any
Security  called  for  redemption  shall  not  be so  paid  upon  surrender  for
redemption  because  of the  failure  of the  Company  to comply  with the first
sentence of this paragraph, interest shall be paid on the unpaid principal, from
the  redemption  date until such  principal is paid, and to the extent lawful on
any  interest  not  paid on such  unpaid  principal,  in each  case at the  rate
provided with respect to such Security.

         Section 3.6. Securities Redeemed in Part.

                  Upon  surrender  of a Security  that is redeemed in part,  the
Trustee shall  authenticate for the Holder a new Security of the same Series and
the same maturity  equal in principal  amount to the  unredeemed  portion of the
Security surrendered.

                                  ARTICLE IV.
                                   COVENANTS

         Section 4.1. Payment of Principal and Interest.

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

         Section 4.2. SEC Reports.

                  Whether or not  required by the rules and  regulations  of the
SEC, so long as any Securities are outstanding,  the Company will furnish to the
Holders of Securities (1) all quarterly and annual  financial  information  that
would be  required  to be  contained  in a filing with the SEC on Forms 10-Q and
10-K if the Company were required to file such Forms,  including a "Management's
Discussion and Analysis of Financial  Condition and Results of Operations"  and,
with respect to the annual  information  only, a report thereon by the Company's
certified  independent  accountants and (2) all financial information that would
be required to be included in a Form 8-K filed with the SEC if the Company  were
required to file such reports. In addition, whether or not required by the rules
and regulations of the SEC, the Company will file a copy of all such information
and reports with the SEC for public availability (unless the SEC will not accept
such a filing) and make such  information  available to investors who request it
in writing.

         Section 4.3. Compliance Certificate.

                  The Company shall deliver to the Trustee, within 90 days after
the end of each fiscal year of the  Company,  an Officers'  Certificate  stating
that a review of the activities of the Company and its  Subsidiaries  during the
preceding  fiscal  year has been  made  under  the  supervision  of the  signing
Officers  with a view to  determining  whether the  Company has kept,  observed,
performed  and  fulfilled  its  obligations  under this  Indenture,  and further
stating,  as to each such Officer signing such certificate,  that to the best of
his knowledge the Company has kept,  observed,  performed and fulfilled each and
every  covenant  contained  in  this  Indenture  and is not  in  default  in the
performance or observance of any of the terms,  provisions and conditions

                                      -19-
<PAGE>

hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which he may have knowledge).

                  The  Company  will,  so  long  as any of  the  Securities  are
outstanding,  deliver to the Trustee,  forthwith upon any Officer becoming aware
of any Default or Event of Default,  an Officers'  Certificate  specifying  such
Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.

         Section 4.4. Stay, Extension and Usury Laws.

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

         Section 4.5. Corporate Existence.

                  Subject  to  Article  V of  the  Indenture  and  any  covenant
included in a supplemental indenture relating to the release of Guarantors,  the
Company and each of the Restricted Subsidiaries shall do or cause to be done all
things necessary to preserve and keep in full force and effect (i) its corporate
existence,  and the corporate,  partnership or other  existence of each of their
Subsidiaries, in accordance with the respective organizational documents (as the
same may be  amended  from  time to time) of the  Company,  any such  Restricted
Subsidiary  or any such  Subsidiary,  as the case  may be,  and (ii) the  rights
(charter and statutory),  licenses and franchises of the Company, the Restricted
Subsidiaries  and their respective  Subsidiaries;  provided,  however,  that the
Company and the  Restricted  Subsidiaries  shall not be required to preserve any
such  right,  license  or  franchise,  or the  corporate,  partnership  or other
existence of any of their respective Subsidiaries,  if an officer of the Company
shall  determine  that the  preservation  thereof is no longer  desirable in the
conduct of the business of the Company,  the Restricted  Subsidiaries  and their
Subsidiaries,  taken as a whole, and that the loss thereof is not adverse in any
material respect to the Holders of the Securities.

         Section 4.6. Taxes.

                  The Company  shall,  and shall cause each of its  Subsidiaries
to, pay prior to delinquency  all material taxes,  assessments and  governmental
levies, except (i) as contested in good faith and by appropriate  proceedings or
(ii) the nonpayment of which would not materially adversely affect the business,
condition (financial or otherwise), operations, performance or properties of the
Company and its Subsidiaries, taken as a whole.

                                      -20-
<PAGE>

         Section 4.7. Maintenance of Office or Agency.

                  The Company shall  maintain in the Borough of  Manhattan,  the
City of New York,  an office or agency (which may be an office of the Trustee or
an affiliate of the Trustee,  Registrar or co-registrar) where the Securities of
any Series may be surrendered  for  registration of transfer or for exchange and
where  notices and demands to or upon the Company in respect of such  Securities
and this  Indenture may be served.  The Company shall give prompt written notice
to the Trustee of the location,  and any change in the location,  of such office
or agency.  If at any time the Company  shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address  thereof,
such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee

                  The Company may also from time to time  designate  one or more
other offices or agencies where the Securities of any Series may be presented or
surrendered  for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in the  Borough  of  Manhattan,  the City of New York for such  purposes.  The C
ompany shall give prompt written  notice to the Trustee of any such  designation
or  rescission  and of any change in the  location  of any such other  office or
agency.

                  The Company hereby  designates  the Corporate  Trust Office of
the  Trustee  as one such  office or agency of the  Company in  accordance  with
Section 2.4 hereof.

                                   ARTICLE V.
                                   SUCCESSORS

         Section 5.1. Mergers, Consolidations or Sale of Assets.

                  The Company may not consolidate or merge with or into (whether
or not the Company is the surviving  corporation),  or sell,  assign,  transfer,
lease, convey or otherwise dispose of all or substantially all of its properties
or assets in one or more related transactions, to another Person unless:

                  (a) the  Company is the  surviving  corporation  or the Person
         formed by or surviving any such  consolidation or merger (if other than
         the  Company)  or to which  such  sale,  assignment,  transfer,  lease,
         conveyance or other  disposition  shall have been made is a corporation
         organized or existing  under the laws of the United  States,  any state
         thereof or the District of Columbia;

                  (b) the Person formed by or surviving  any such  consolidation
         or merger (if other than the Company) or the Person to which such sale,
         assignment, transfer, lease, conveyance or other disposition shall have
         been  made  assumes  all  the  obligations  of the  Company  under  the
         Securities  of a Series,  supplemental  indentures  applicable  to such
         Series and the  Indenture  (pursuant to a  supplemental  indenture in a
         form reasonably satisfactory to the Trustee);

                  (c) immediately  after such transaction no Default or Event of
         Default exists; and

                                      -21-
<PAGE>

                  (d) the Company or any Person  formed by or surviving any such
         consolidation or merger, or to which such sale,  assignment,  transfer,
         lease,  conveyance or other  disposition shall have been made, will, at
         the time of such transaction and after giving pro forma effect thereto,
         be  permitted  to  incur  at least  $1.00  of  additional  Indebtedness
         pursuant  to  the  test  set  forth  in  the  applicable   supplemental
         indenture, if any, without regard to any enumerated exceptions.

         Section 5.2. Successor Corporation Substituted.

                  Upon  any   consolidation  or  merger,  or  any  sale,  lease,
conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.1, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
lease,  conveyance  or  other  disposition  is made  shall  succeed  to,  and be
substituted for (so that from and after the date of such consolidation,  merger,
sale, lease,  conveyance or other disposition,  the provisions of this Indenture
referring to the "Company" shall refer instead to the successor  corporation and
not to the  Company),  and may  exercise  every  right and power of, the Company
under this Indenture  with the same effect as if such Successor  Person has been
named as the Company herein; provided,  however, that the predecessor Company in
the case of a sale, lease, conveyance or other disposition shall not be released
from  the  obligation  to pay the  principal  of and  interest,  if any,  on the
Securities,  except in the case of a sale of all the Company's assets that meets
the requirements of Section 5.1 hereof.

                                  ARTICLE VI.
                             DEFAULTS AND REMEDIES

         Section 6.1. Events of Default.

                  "Event of  Default,"  wherever  used  herein  with  respect to
Securities of any Series,  means any one of the following events,  unless in the
establishing Board Resolution,  supplemental indenture or Officers' Certificate,
it is  provided  that such  Series  shall not have the  benefit of said Event of
Default:

                  (a) default for 30 days in the payment when due of interest on
         any  Security  of  that  Series  (whether  or  not  prohibited  by  the
         subordination provisions of Article XIII of the Indenture);

                  (b)  default  in  payment  when  due  of the  principal  of or
         premium,  if any,  on any  Security  of  that  Series  (whether  or not
         prohibited  by the  subordination  provisions  in  Article  XIII of the
         Indenture);

                  (c)  failure  by the  Company  to comply  with any  "Change of
         Control" covenant included in a supplemental  indenture with respect to
         any Security of that Series;

                  (d) failure by the Company or any  Guarantor for 60 days after
         written  notice from the Trustee or Holders of not less than 25% of the
         aggregate  principal  amount  of the  Securities  of that  Series  then
         outstanding  to  comply  with  any  of  its  other  agreements  in  the
         Indenture,  any  supplemental  indenture  relating to such Series,  the
         Securities or the

                                      -22-
<PAGE>

         Subsidiary Guarantees (in order to be effective, such notice must be in
         writing, specify the Default, demand that it be remedied and state that
         the notice is a "Notice of Default");

                  (e) default under any mortgage,  indenture or instrument under
         which there may be issued or by which there may be secured or evidenced
         any  Indebtedness  for  money  borrowed  by the  Company  or any of its
         Restricted  Subsidiaries  (or the payment of which is guaranteed by the
         Company  or  any  of  its   Restricted   Subsidiaries)   whether   such
         Indebtedness  or  guarantee  exists  on the  date  of the  supplemental
         indenture relating to such Series or is created thereafter, if:

                           (i) such default results in the  acceleration of such
                  Indebtedness prior to its express maturity or shall constitute
                  a  default  in the  payment  of  such  Indebtedness  at  final
                  maturity of such Indebtedness and

                           (ii) the  principal  amount of any such  Indebtedness
                  that has been accelerated or not paid at maturity,  when added
                  to  the   aggregate   principal   amount  of  all  other  such
                  Indebtedness   that  has  been  accelerated  or  not  paid  at
                  maturity, exceeds $10.0 million;

                  (f) a final  judgment  or final  judgments  for the payment of
         money  are  entered  by a court or  courts  of  competent  jurisdiction
         against  the  Company or any of its  Restricted  Subsidiaries  and such
         judgments  remain unpaid,  undischarged  or unstayed for a period of 60
         days, provided that the aggregate of all such unpaid,  undischaraged or
         unstayed judgments exceeds $10.0 million;

                  (g) the Company or any of its Restricted  Subsidiaries that is
         a Significant Subsidiary:

                           (i) commences a voluntary case,

                           (ii)  consents  to the entry of an order  for  relief
                  against it in an involuntary case,

                           (iii)  consents to the  appointment of a Custodian of
                  it or for all or substantially all of its property,

                           (iv) makes a general  assignment  for the  benefit of
                  its creditors, or

                           (v) admits in writing  that it generally is unable to
                  pay its debts as the same become due;

                  in  each  case,  pursuant  to or  within  the  meaning  of any
                  Bankruptcy Law; or

                  (h) a court  of  competent  jurisdiction  enters  an  order or
         decree under any Bankruptcy Law that:

                           (i) is for relief  against  the Company or any of its
                  Restricted Subsidiaries that is a Significant Subsidiary in an
                  involuntary case,

                                      -23-
<PAGE>

                           (ii)  appoints a  Custodian  of the Company or any of
                  its Restricted  Subsidiaries that is a Significant  Subsidiary
                  or for all or substantially all of its property, or

                           (iii) orders the liquidation of the Company or any of
                  its Restricted Subsidiaries that is a Significant Subsidiary,

                  and such order or decree remains unstayed and in effect for 60
                  days;

                  (i) except as permitted  by the  Indenture,  any  supplemental
         indenture  relating to such Series or the  Subsidiary  Guarantees,  any
         Subsidiary Guarantee issued by a Restricted Subsidiary shall be held in
         any judicial  proceeding to be  unenforceable or invalid or shall cease
         for any  reason  to be in full  force  and  effect,  or any  Restricted
         Subsidiary or any Person acting on behalf of any Restricted  Subsidiary
         shall deny or disaffirm in writing its obligations under its Subsidiary
         Guarantee; or

                  (j) any  other  Event of  Default  provided  with  respect  to
         Securities of that Series, which is specified in a Board Resolution,  a
         supplemental   indenture  hereto  or  an  Officers'   Certificate,   in
         accordance with Section 2.2.18.

                  The term  "Bankruptcy  Law" means title 11,  U.S.  Code or any
similar  Federal or State law for the relief of  debtors.  The term  "Custodian"
means any receiver, trustee, assignee,  liquidator or similar official under any
Bankruptcy Law.

         Section 6.2. Acceleration of Maturity.

                  If any  Event of  Default  (other  than an  Event  of  Default
specified in clauses (g) and (h) of Section 6.1 of the Indenture relating to the
Company or any of its Restricted  Subsidiaries that is a Significant Subsidiary)
occurs and is continuing, the Trustee by notice to the Company or the Holders of
at least 25% in principal amount of the then outstanding  Securities of a Series
by notice to the Company and the Trustee may declare the unpaid principal of and
any interest on all the Securities of that Series (or, if any Securities of that
Series are Discount  Securities,  such portion of the principal amount as may be
specified in the terms of such  Securities)  to be due and payable  immediately;
provided,  however,  that if any Obligation  with respect to Senior Bank Debt is
outstanding  pursuant to the Credit Agreement upon a declaration of acceleration
of the Securities of a Series, the principal,  premium,  if any, and interest on
such Securities will not be payable until the earlier of:

                  (a) the day which is five Business  Days after written  notice
         of acceleration is received by the Company and the Credit Agent or

                  (b) the date of  acceleration  of the  Indebtedness  under the
         Credit  Agreement.  If an Event of Default specified in clauses (g) and
         (h) of Section 6.1 of the Indenture  with respect to the Company or any
         Restricted  Subsidiary  that is a Significant  Subsidiary  occurs,  the
         principal of, and premium,  if any, and any accrued and unpaid interest
         on all  outstanding  Securities of that Series will become  immediately
         due and payable without further action or notice.

                                      -24-
<PAGE>

                  In  the  event  of  a  declaration  of   acceleration  of  the
Securities  of that  Series  because an Event of  Default  has  occurred  and is
continuing  as a result of the  acceleration  of any  Indebtedness  described in
clause (e) of Section 6.1 of the Indenture,  the  declaration of acceleration of
the Securities of that Series shall be automatically  annulled if the holders of
any  Indebtedness  described in such clause have  rescinded the  declaration  of
acceleration  in  respect of such  Indebtedness  within 30 days from the date of
such declaration and if:

                  (a) the  annulment of the  acceleration  of the  Securities of
         that  Series  would  not  conflict  with any  judgment  or  decree of a
         competent jurisdiction and

                  (b) all  existing  Events of Default,  except  non-payment  of
         principal or interest on the  Securities of that Series that became due
         solely because of the acceleration of such Securities,  have been cured
         or waived.

                  In the case of any Event of Default occurring by reason of any
willful action (or inaction) taken (or not taken) by or on behalf of the Company
with the  intention of avoiding  payment of any make whole price or premium,  as
applicable,  that the  Company  would  have had to pay if the  Company  then had
elected to redeem the Securities of a Series pursuant to the optional redemption
provisions of the  Indenture,  if any, the  applicable  make whole price,  or an
equivalent  premium, as the case may be, shall become and be immediately due and
payable to the extent  permitted by law upon the  acceleration of the Securities
of that Series.

         Section 6.3.  Collection of  Indebtedness  and Suits for Enforcement by
Trustee.

                  The Company covenants that if

                  (a)  default  is made in the  payment of any  interest  on any
         Security  when such  interest  becomes due and payable and such default
         continues for a period of 30 days, or

                  (b)  default  is  made  in the  payment  of  principal  of any
         Security at the Maturity thereof, or

                  (c) default is made in the deposit of any sinking fund payment
         when and as due by the terms of a Security,

then, 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 interest and, to the extent that payment of such
interest shall be legally enforceable,  interest on any overdue principal or any
overdue interest,  at the rate or rates prescribed  therefor in such Securities,
and, in addition  thereto,  such further  amount as shall be sufficient to cover
the costs and expenses of  collection,  including the  reasonable  compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

                  If the Company fails to pay such amounts  forthwith  upon such
demand,  the Trustee,  in its own name and as trustee of an express  trust,  may
institute  a  judicial  proceeding  for the  collection  of the  sums so due and
unpaid,  may  prosecute  such  proceeding  to judgment  or final  decree and may
enforce the same against the Company or any other  obligor upon such  Securities
and collect the moneys  adjudged or deemed to be payable in the manner  provided
by

                                      -25-
<PAGE>

law out of the  property  of the  Company  or any  other  obligor  upon  such
Securities, wherever situated.

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

         Section 6.4. Trustee May File Proofs of Claim.

                  In  case  of the  pendency  of any  receivership,  insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial  proceeding relative to the Company or any other obligor upon the
Securities  or the  property  of the  Company or of such other  obligor or their
creditors,  the Trustee (irrespective of whether the principal of the Securities
shall  then be due  and  payable  as  therein  expressed  or by  declaration  or
otherwise and  irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue  principal or interest) shall be entitled
and empowered, by intervention in such proceeding or otherwise,

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

                  (b) to  collect  and  receive  any  moneys  or other  property
         payable or deliverable on any such claims and to distribute the same,

and any custodian,  receiver,  assignee,  trustee,  liquidator,  sequestrator or
other similar official in any such judicial  proceeding is hereby  authorized by
each  Holder to make such  payments  to the  Trustee  and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation,  expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7.

                  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.

         Section  6.5.   Trustee  May  Enforce  Claims  Without   Possession  of
Securities.

                  All rights of action and claims  under this  Indenture  or the
Securities may be prosecuted and enforced by the Trustee  without the possession
of any of the  Securities or the production  thereof in any proceeding  relating
thereto,  and any such proceeding  instituted by the

                                      -26-
<PAGE>

Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment  shall,  after  provision for the payment of the reasonable
compensation,  expenses,  disbursements and advances of the Trustee,  its agents
and  counsel,  be for the ratable  benefit of the Holders of the  Securities  in
respect of which such judgment has been recovered.

         Section 6.6. Application of Money Collected.

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

                  First:  To the payment of all  amounts  due the Trustee  under
Section 7.7;

                  Second:  to the  holders  of Senior  Debt of the  Company or a
Guarantor, as the case may be, to the extent required by Article XIII hereof;

                  Third:  To the payment of the amounts  then due and unpaid for
principal  of 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,  according  to the  amounts  due  and  payable  on  such
Securities for principal and interest, respectively; and

                  Fourth:  To the Company.

         Section 6.7. Limitation on Suits.

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

                  (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  shall have made  written
         request to the  Trustee  to  institute  proceedings  in respect of such
         Event of Default in its own name as Trustee hereunder;

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

                  (d) the Trustee for 60 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;

                                      -27-
<PAGE>

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

         Section 6.8.  Unconditional  Right of Holders to Receive  Principal and
Interest.

                  Subject to Articles XII and XIII hereof,  notwithstanding  any
other  provision in this  Indenture,  the Holder of any Security  shall have the
right, which is absolute and unconditional,  to receive payment of the principal
of and premium and interest,  if any, on such Security on the Stated Maturity or
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  shall not be  impaired  without  the consent of such
Holder.

         Section 6.9. Restoration of Rights and Remedies.

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

         Section 6.10. Rights and Remedies Cumulative.

                  Except as otherwise  provided with respect to the  replacement
or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no
right or remedy  herein  conferred  upon or  reserved  to the  Trustee or to the
Holders is intended  to be  exclusive  of any other  right or remedy,  and every
right and remedy shall,  to the extent  permitted by law, be  cumulative  and in
addition to every other right and remedy  given  hereunder  or now or  hereafter
existing at law or in equity or  otherwise.  The  assertion or employment of any
right or remedy  hereunder,  or  otherwise,  shall not  prevent  the  concurrent
assertion or employment of any other appropriate right or remedy.

         Section 6.11. Delay or Omission Not Waiver.

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

                                      -28-
<PAGE>

         Section 6.12. Control by Holders.

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

                  (a) such  direction  shall not be in conflict with any rule of
         law or with this Indenture,

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

                  (c)  subject to the  provisions  of Section  6.1,  the Trustee
         shall have the right to decline  to follow  any such  direction  if the
         Trustee in good faith shall,  by a Responsible  Officer of the Trustee,
         determine  that the proceeding so directed would involve the Trustee in
         personal liability.

         Section 6.13. Waiver of Past Defaults.

                  The Holders of not less than a majority in principal amount of
the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default  hereunder with respect to such
Series and its consequences,  except a continuing Default or Event of Default in
the  payment of the  principal  of or  interest  on any  Security of such Series
(provided,  however,  that the Holders of a majority in principal  amount of the
outstanding  Securities  of any  Series  may  rescind  an  acceleration  and its
consequences,  including  any related  payment  default that  resulted from such
acceleration).  Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture;  but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.

         Section 6.14. Undertaking for Costs.

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

                                      -29-
<PAGE>

                                  ARTICLE VII.
                                    TRUSTEE

         Section 7.1. Duties of Trustee.

                  (a) If an Event of Default has occurred and is continuing, the
         Trustee  shall  exercise  the rights  and  powers  vested in it by this
         Indenture  and use the same degree of care and skill in their  exercise
         as a prudent  Person would exercise or use under the  circumstances  in
         the conduct of such Person's own affairs.

                  (b) Except during the continuance of an Event of Default:

                           (i) The Trustee  need  perform only those duties that
                  are specifically set forth in this Indenture and no others.

                           (ii) In the  absence  of bad faith on its  part,  the
                  Trustee  may  conclusively  rely,  as  to  the  truth  of  the
                  statements  and  the  correctness  of the  opinions  expressed
                  therein,  upon Officers'  Certificates  or Opinions of Counsel
                  furnished to the Trustee and conforming to the requirements of
                  this  Indenture;  however,  in the case of any such  Officers'
                  Certificates  or Opinions of Counsel  which by any  provisions
                  hereof  are  specifically  required  to be  furnished  to  the
                  Trustee, the Trustee shall examine such Officers' Certificates
                  and  Opinions  of  Counsel  to  determine  whether or not they
                  conform to the requirements of this Indenture.

                  (c) The Trustee may not be relieved from liability for its own
         negligent  action,  its own negligent failure to act or its own willful
         misconduct, except that:

                           (i) This  paragraph  does not  limit  the  effect  of
                  paragraph (b) of this Section.

                           (ii) The Trustee shall not be liable for any error of
                  judgment made in good faith by a Responsible  Officer,  unless
                  it is proved that the Trustee was  negligent  in  ascertaining
                  the pertinent facts.

                           (iii) The Trustee shall not be liable with respect to
                  any action  taken,  suffered or omitted to be taken by it with
                  respect  to   Securities  of  any  Series  in  good  faith  in
                  accordance  with the direction of the Holders of a majority in
                  principal amount of the outstanding  Securities of such Series
                  relating  to the  time,  method  and place of  conducting  any
                  proceeding  for  any  remedy  available  to  the  Trustee,  or
                  exercising  any  trust or power  conferred  upon the  Trustee,
                  under this  Indenture  with respect to the  Securities of such
                  Series.

                  (d) Every  provision of this Indenture that in any way relates
         to the  Trustee  is  subject  to  paragraph  (a),  (b)  and (c) of this
         Section.

                  (e) The Trustee may refuse to perform any duty or exercise any
         right or power unless it receives indemnity  satisfactory to it against
         any loss, liability or expense.

                                      -30-
<PAGE>

                  (f) The Trustee  shall not be liable for interest on any money
         received  by it except as the  Trustee  may agree in  writing  with the
         Company. Money held in trust by the Trustee need not be segregated from
         other funds except to the extent required by law.

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

                  (h) The Paying Agent,  the  Registrar  and any  authenticating
         agent shall be entitled to the protections,  immunities and standard of
         care as are set forth in  paragraphs  (a),  (b) and (c) of this Section
         with respect to the Trustee.

         Section 7.2. Rights of Trustee.

                  (a)  The  Trustee  may  conclusively  rely  on  and  shall  be
         protected  in  acting  or  refraining  from  acting  upon any  document
         believed by it to be genuine and to have been  signed or  presented  by
         the proper Person.  The Trustee need not investigate any fact or matter
         stated in the document.

                  (b) Before the Trustee acts or refrains  from  acting,  it may
         require an Officers'  Certificate or an Opinion of Counsel. The Trustee
         shall  not be liable  for any  action it takes or omits to take in good
         faith in reliance on such Officers' Certificate or Opinion of Counsel.

                  (c) The  Trustee  may act  through  agents  and  shall  not be
         responsible  for the  misconduct or  negligence of any agent  appointed
         with due care.  No  Depository  shall be deemed an agent of the Trustee
         and the Trustee shall not be responsible for any act or omission by any
         Depository.

                  (d) The Trustee shall not be liable for any action it takes or
         omits to take in good  faith  which it  believes  to be  authorized  or
         within its rights or powers.

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

                  (f) The Trustee  shall be under no  obligation to exercise any
         of the rights or powers  vested in it by this  Indenture at the request
         or  direction of any of the Holders of  Securities  unless such Holders
         shall have offered to the Trustee security or indemnity satisfactory to
         it against the costs,  expenses and liabilities which might be incurred
         by it in compliance with such request or direction.

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

                                      -31-
<PAGE>

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

                  (h) The  Trustee  shall not be  deemed  to have  notice of any
         Default or Event of Default unless a Responsible Officer of the Trustee
         has  actual  knowledge  thereof or unless  written  notice of any event
         which is in fact such a default is given to the  Trustee in  accordance
         with Section 10.2.

                  (i) The  Trustee  may  request  that the  Company  deliver  an
         Officers'  Certificate  setting forth the names of  individuals  and/or
         titles of officers  authorized at such time to take  specified  actions
         pursuant to this Indenture,  which Officers'  Certificate may be signed
         by any Person  authorized to sign an Officers'  Certificate,  including
         any  Person   specified  as  so  authorized  in  any  such  certificate
         previously delivered and not superseded.

         Section 7.3. Individual Rights of Trustee.

                  The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee. However, in
the event that the Trustee  acquires any conflicting  interest it must eliminate
such  conflict  within 90 days,  apply to the SEC for  permission to continue as
trustee or resign.  Any Agent may do the same with like  rights.  The Trustee is
also subject to Sections 7.10 and 7.11.

         Section 7.4. Trustee's Disclaimer.

                  The  Trustee  makes no  representation  as to the  validity or
adequacy of this Indenture or the  Securities,  it shall not be accountable  for
the  Company's  use of the  proceeds  from the  Securities,  and it shall not be
responsible for any statement in the Securities other than its authentication.

         Section 7.5. Notice of Defaults.

                  If a Default or Event of Default occurs and is continuing with
respect  to the  Securities  of any  Series  and if it is  actually  known  to a
Responsible   Officer  of  the   Trustee,   the  Trustee   shall  mail  to  each
Securityholder  of the  Securities of that Series and, if any Bearer  Securities
are outstanding, publish on one occasion in an Authorized Newspaper, notice of a
Default or Event of Default within 90 days after it occurs or, if later, after a
Responsible Officer of the Trustee has actual knowledge of such Default or Event
of  Default.  Except in the case of a Default  or Event of Default in payment of
principal of or interest on any Security of any Series, the Trustee may withhold
the notice if and so long as its corporate trust committee or a committee of its
Responsible  Officers in good faith determines that withholding the notice is in
the interests of Securityholders of that Series.

                                      -32-
<PAGE>

         Section 7.6. Reports by Trustee to Holders.

                  Within 60 days  after  January 15 in each  year,  the  Trustee
shall  transmit by mail to all  Securityholders,  as their  names and  addresses
appear on the register kept by the Registrar  and, if any Bearer  Securities are
outstanding, publish in an Authorized Newspaper, a brief report dated as of such
January 15, in accordance with, and to the extent required under, TIA ss. 313.

                  A  copy  of  each  report  at  the  time  of  its  mailing  to
Securityholders  of any  Series  shall  be filed  with  the SEC and  each  stock
exchange on which the  Securities  of that Series are listed.  The Company shall
promptly  notify the  Trustee  when  Securities  of any Series are listed on any
stock exchange or any delisting thereof.

         Section 7.7. Compensation and Indemnity.

                  The Company  shall pay to the  Trustee  from time to time such
compensation  for its  services as the  Company  and the Trustee  shall agree in
writing.  The  Trustee's  compensation  shall  not  be  limited  by  any  law on
compensation  of a trustee of an express trust.  The Company shall reimburse the
Trustee upon request for all reasonable  out-of-pocket  expenses incurred by it.
Such expenses  shall  include the  reasonable  compensation  and expenses of the
Trustee's agents and counsel.

                  The Company  shall  indemnify  the Trustee or any  predecessor
Trustee and their agents  (including  the cost of defending  itself  against any
claim  (whether  asserted by the  Company,  or any Holder or any other  Person))
against any and all loss, damages, claims, liability or expense, including taxes
(other  than taxes based upon,  measured by or  determined  by the income of the
Trustee)  incurred  by it  except  as set  forth  in the next  paragraph  in the
performance  of their  duties  under this  Indenture  as  Trustee or Agent.  The
Trustee  shall  notify the  Company  promptly of any claim for which it may seek
indemnity. The Company shall defend the claim and the Trustee shall cooperate in
the defense. The Trustee may have separate counsel and the Company shall pay the
reasonable  fees and expenses of such counsel.  The Company need not pay for any
settlement  made without its consent,  which consent  shall not be  unreasonably
withheld.  This indemnification shall apply to officers,  directors,  employees,
shareholders and agents of the Trustee.

                  The  Company  need not  reimburse  any  expense  or  indemnify
against  any  loss or  liability  incurred  by the  Trustee  or by any  officer,
director,  employee,  shareholder  or  agent  of the  Trustee  due  to  its  own
negligence or bad faith.

                  To secure the Company's  payment  obligations in this Section,
the Trustee shall have a lien prior to the Securities of any Series on all money
or property  held or collected by the Trustee,  except that held in trust to pay
principal and interest on particular Securities of that Series.

                  When the Trustee incurs expenses or renders  services after an
Event  of  Default  specified  in  Section  6.1(g)  or (h)  (or  any  comparable
provisions set forth in a supplemental  indenture)  occurs, the expenses and the
compensation   for  the  services  are  intended  to   constitute   expenses  of
administration under any Bankruptcy Law.

                                      -33-
<PAGE>

                  The  Trustee  shall  comply  with  the  provisions  of TIA ss.
313(b)(2) to the extent applicable.

                  The  provisions of this Section shall survive the  termination
of this Indenture and the resignation or removal of the Trustee.

         Section 7.8. Replacement of Trustee.

                  A resignation  or removal of the Trustee and  appointment of a
successor  Trustee  shall become  effective  only upon the  successor  Trustee's
acceptance of appointment as provided in this Section.

                  The Trustee may resign with respect to the  Securities  of one
or more Series by so notifying the Company in writing. The Holders of a majority
in principal  amount of the Securities of any Series may remove the Trustee with
respect to that Series by so  notifying  the Trustee and the Company in writing.
The Company may remove the Trustee  with  respect to  Securities  of one or more
Series if:

                  (a) the Trustee fails to comply with Section 7.10;

                  (b) the Trustee is adjudged a bankrupt or an  insolvent  or an
         order for  relief is entered  with  respect  to the  Trustee  under any
         Bankruptcy Law;

                  (c) a Custodian or public  officer takes charge of the Trustee
         or its property; or

                  (d) the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee  for any  reason,  the Company  shall  promptly  appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Securities may
appoint a successor  Trustee to replace the successor  Trustee  appointed by the
Company.

                  If a successor  Trustee with respect to the  Securities of any
one or more  Series  does not take  office  within 60 days  after  the  retiring
Trustee resigns or is removed,  the retiring Trustee, the Company or the Holders
of at least 10% in principal  amount of the Securities of the applicable  Series
may petition any court of competent  jurisdiction  at the expense of the Company
for the appointment of a successor Trustee.

                  If the Trustee  with respect to the  Securities  of any one or
more  Series  fails to comply  with  Section  7.10,  any  Securityholder  of the
applicable  Series,  who has been a Securityholder  for at least six months, may
petition any court of competent  jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.

                  A successor Trustee shall deliver a written  acceptance of its
appointment to the retiring Trustee and to the Company.  Immediately after that,
the retiring  Trustee  shall  transfer all property held by it as Trustee to the
successor  Trustee  subject  to the  lien  provided  for  in  Section  7.7,  the
resignation or removal of the retiring Trustee shall become  effective,  and the

                                      -34-
<PAGE>

successor  Trustee  shall have all the rights,  powers and duties of the Trustee
with  respect  to each  Series of  Securities  for which it is acting as Trustee
under this Indenture.  A successor Trustee shall mail a notice of its succession
to each  Securityholder  of each such Series and, if any Bearer  Securities  are
outstanding,  publish  such notice on one occasion in an  Authorized  Newspaper.
Notwithstanding  replacement  of the Trustee  pursuant to this  Section 7.8, the
Company's obligations under Section 7.7 hereof shall continue for the benefit of
the retiring  trustee with  respect to expenses and  liabilities  incurred by it
prior to such replacement.

         Section 7.9. Successor Trustee by Merger, etc.

                  If the Trustee  consolidates with, merges or converts into, or
transfers all or  substantially  all of its corporate trust business to, another
corporation,  the  successor  corporation  without  any further act shall be the
successor Trustee.

         Section 7.10. Eligibility; Disqualification.

                  This  Indenture  shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1),  (2) and (5). The Trustee shall always have a
combined  capital and surplus of at least  $50,000,000  as set forth in its most
recent published  annual report of condition.  The Trustee shall comply with TIA
ss. 310(b).

         Section 7.11. Preferential Collection of Claims Against Company.

                  The  Trustee  is  subject  to TIA ss.  311(a),  excluding  any
creditor  relationship  listed in TIA ss. 311(b).  A Trustee who has resigned or
been removed shall be subject to TIA ss. 311(a) to the extent indicated.

                                 ARTICLE VIII.
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

         Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance.

                  The  Company  may,  at the  option of its  Board of  Directors
evidenced by a resolution  set forth in an Officers'  Certificate,  at any time,
elect to have  either  Section  8.2 or 8.3 hereof be applied to all  outstanding
Securities of a Series upon  compliance  with the  conditions set forth below in
this Article VIII.

         Section 8.2. Legal Defeasance and Discharge.

                  Upon the  Company's  exercise  under Section 8.1 hereof of the
option  applicable to this Section 8.2, each of the Company and the  Guarantors,
if any,  shall,  subject  to the  satisfaction  of the  conditions  set forth in
Section 8.4 hereof,  be deemed to have been discharged from its obligations with
respect to all  outstanding  Securities  of such Series and  related  Subsidiary
Guarantees   on  the  date  the   conditions   set  forth  below  are  satisfied
(hereinafter, "Legal Defeasance"). For this purpose, Legal Defeasance means that
the Company shall be deemed to have paid and discharged the entire  Indebtedness
represented by the outstanding Securities of such Series, which shall thereafter
be deemed to be  "outstanding"  only for the  purposes of Section 8.5 hereof and
the other  Sections of this Indenture  referred to in (a) and (b) below,  and to

                                      -35-
<PAGE>

have  satisfied  all its  other  obligations  under  such  Securities  and  this
Indenture as it relates to such Securities (and the Trustee, on demand of and at
the expense of the Company,  shall execute proper instruments  acknowledging the
same),  except for the following  provisions which shall survive until otherwise
terminated or  discharged  hereunder:  (a) the rights of Holders of  outstanding
Securities  of such Series to receive  solely from the trust fund  described  in
Section 8.4  hereof,  and as more fully set forth in such  section,  payments in
respect of the principal of,  premium,  if any, and interest on such  Securities
when such payments are due, (b) the Company's and Guarantors'  obligations  with
respect to such  Securities  under  Article II hereof,  (c) the rights,  powers,
trusts, duties and immunities of the Trustee hereunder and the Company's and the
Guarantors'  obligations  in  connection  therewith  and (d) this Article  VIII.
Subject to  compliance  with this  Article  VIII,  the Company may  exercise its
option under this Section 8.2  notwithstanding  the prior exercise of its option
under Section 8.3 hereof.

         Section 8.3. Covenant Defeasance.

                  Upon the  Company's  exercise  under Section 8.1 hereof of the
option  applicable to this Section 8.3, each of the Company and the  Guarantors,
if any,  shall,  subject  to the  satisfaction  of the  conditions  set forth in
Section  8.4  hereof,  be  released  from its  obligations  under the  covenants
specified  pursuant to Section  2.2 hereof and Article V hereof with  respect to
the outstanding  Securities of such Series and related Subsidiary  Guarantees on
and after the date the  conditions  set forth below are satisfied  (hereinafter,
"Covenant  Defeasance"),  and such  Securities  shall  thereafter  be deemed not
"outstanding" for the purposes of any direction,  waiver, consent or declaration
or act of Holders (and the  consequences of any thereof) in connection with such
covenants,  but shall continue to be deemed "outstanding" for all other purposes
hereunder  (it  being  understood  that  such  Securities  shall  not be  deemed
outstanding  for accounting  purposes).  For this purpose,  Covenant  Defeasance
means that,  with respect to the  outstanding  Securities  of such  Series,  the
Company  may omit to comply with and shall have no  liability  in respect of any
term,  condition or limitation set forth in any such covenant,  whether directly
or indirectly,  by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision herein
or in any other  document  and such  omission to comply  shall not  constitute a
Default  or an Event of  Default  under  Section  6.1  hereof,  but,  except  as
specified  above,  the  remainder of this  Indenture,  such  Securities  and the
related Subsidiary Guarantees, if any, shall be unaffected thereby. In addition,
upon the Company's exercise under Section 8.1 hereof of the option applicable to
this Section 8.3 hereof, subject to the satisfaction of the conditions set forth
in Section 8.4 hereof,  Sections 6.1(c) through 6.1(f) and 6.1(i) hereof (or any
comparable  provisions  set  forth  in  a  supplemental   indenture)  shall  not
constitute Events of Default.

         Section 8.4. Conditions to Legal or Covenant Defeasance.

                  The following  shall be the  conditions to the  application of
either Section 8.2 or 8.3 hereof to the outstanding Securities of such Series:

                  In order to  exercise  either  Legal  Defeasance  or  Covenant
Defeasance:

                  (a) the Company must irrevocably  deposit with the Trustee, in
         trust,  for the benefit of the Holders,  cash in United States dollars,
         non-callable  Government Securities,

                                      -36-
<PAGE>

         or a combination thereof, in such amounts as will be sufficient, in the
         opinion  of  a  nationally   recognized  firm  of  independent   public
         accountants,  to pay the principal of, premium, if any, and interest on
         the outstanding  Securities of such Series on the Stated Maturity or on
         the applicable  redemption  date, as the case may be, of such principal
         or  installment  of principal of,  premium,  if any, or interest on the
         outstanding Securities of such Series;

                  (b) in the case of an election  under Section 8.2 hereof,  the
         Company  shall have  delivered  to the Trustee an Opinion of Counsel in
         the United States  (which  counsel may be an employee of the Company or
         any  Subsidiary  of the Company)  reasonably  acceptable to the Trustee
         confirming  that (A) the Company has received  from,  or there has been
         published  by, the Internal  Revenue  Service a ruling or (B) since the
         date hereof,  there has been a change in the applicable  federal income
         tax law,  in either case to the effect  that,  and based  thereon  such
         Opinion of Counsel shall confirm that,  the Holders of the  outstanding
         Securities of such Series will not recognize  income,  gain or loss for
         federal  income tax purposes as a result of such Legal  Defeasance  and
         will be subject to federal income tax on the same amounts,  in the same
         manner  and at the same times as would have been the case if such Legal
         Defeasance had not occurred;

                  (c) in the case of an election  under Section 8.3 hereof,  the
         Company  shall have  delivered  to the Trustee an Opinion of Counsel in
         the United States  (which  counsel may be an employee of the Company or
         any  Subsidiary  of the Company)  reasonably  acceptable to the Trustee
         confirming  that the  Holders  of the  outstanding  Securities  of such
         Series will not recognize  income,  gain or loss for federal income tax
         purposes as a result of such Covenant Defeasance and will be subject to
         federal  income tax on the same amounts,  in the same manner and at the
         same times as would have been the case if such Covenant  Defeasance had
         not occurred;

                  (d) no Default or Event of Default  shall have occurred and be
         continuing on the date of such deposit or,  insofar as Sections  6.1(g)
         and  6.1(h)  hereof  (or  any  comparable  provisions  set  forth  in a
         supplemental indenture) are concerned, at any time in the period ending
         on the 91st day after the date of deposit (or greater period of time in
         which any such deposit of trust funds may remain  subject to Bankruptcy
         Law insofar as those apply to the deposit by the Company);

                  (e) such Legal  Defeasance  or Covenant  Defeasance  shall not
         result in a breach or violation of, or constitute a default under,  any
         material  agreement or instrument  (other than this Indenture) to which
         the  Company  or any of its  Subsidiaries  is a party or by  which  the
         Company or any of its Subsidiaries is bound;

                  (f) the Company shall have delivered to the Trustee an Opinion
         of Counsel to the effect that after the 91st day following the deposit,
         the trust  funds will not be  subject  to the effect of any  applicable
         bankruptcy,  insolvency,   reorganization  or  similar  laws  affecting
         creditors' rights generally;

                  (g)  the  Company  shall  have  delivered  to the  Trustee  an
         Officers'  Certificate  stating  that the  deposit  was not made by the
         Company with the intent of  preferring  the

                                      -37-
<PAGE>

         Holders of such Securities over any other creditors of the Company with
         the intent of defeating, hindering, delaying or defrauding creditors of
         the Company or others; and

                  (h)  the  Company  shall  have  delivered  to the  Trustee  an
         Officers'  Certificate and an Opinion of Counsel, each stating that all
         conditions  precedent  provided for or relating to the Legal Defeasance
         or the Covenant Defeasance have been complied with.

         Section 8.5.  Deposited  Money and Government  Securities to be Held in
Trust; Other Miscellaneous Provisions.

                  Subject  to Section  8.6  hereof,  all money and  non-callable
Government  Securities  (including  the  proceeds  thereof)  deposited  with the
Trustee (or other qualifying trustee,  collectively for purposes of this Section
8.5, the "Trustee") pursuant to Section 8.4 hereof in respect of the outstanding
Securities of a Series  subject to a Legal  Defeasance or a Covenant  Defeasance
shall be held in trust  and  applied  by the  Trustee,  in  accordance  with the
provisions  of such  Securities  and  this  Indenture,  to the  payment,  either
directly or through any Paying  Agent  (including  the Company  acting as Paying
Agent) as the Trustee may  determine,  to the Holders of such  Securities of all
sums due and to become due thereon in respect of principal, premium, if any, and
interest,  but such money need not be segregated  from other funds except to the
extent required by law.

                  The Company and the  Guarantors  shall pay and  indemnify  the
Trustee against any tax, fee or other charge imposed on or assessed  against the
cash or non-callable  Government  Securities  deposited  pursuant to Section 8.4
hereof or the principal and interest  received in respect thereof other than any
such tax,  fee or other charge which by law is for the account of the Holders of
the  outstanding  Securities  of a Series  subject  to a Legal  Defeasance  or a
Covenant Defeasance.

                  Anything in this Article VIII to the contrary notwithstanding,
the  Trustee  shall  deliver  or pay to the  Company  from time to time upon the
request of the Company any money or non-callable  Government  Securities held by
it as  provided  in Section 8.4 hereof  which,  in the  opinion of a  nationally
recognized  firm  of  independent  public  accountants  expressed  in a  written
certification  thereof  delivered  to the  Trustee  (which  may  be the  opinion
delivered under Section 8.4(a) hereof), are in excess of the amount thereof that
would then be required to be deposited to effect an equivalent  Legal Defeasance
or Covenant Defeasance.

         Section 8.6. Repayment to Company.

                  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, premium,
if any, or interest,  if any, on any  Securities of a Series  subject to a Legal
Defeasance or a Covenant  Defeasance and remaining unclaimed for two years after
such principal,  and premium,  if any, or interest,  if any, have become due and
payable  shall be paid to the  Company  on its  request  or (if then held by the
Company)  shall be discharged  from such trust;  and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment  thereof,  and all  liability  of the Trustee or such Paying  Agent with
respect  to such  trust  money,  and all  liability  of the

                                      -38-
<PAGE>

Company as trustee thereof, shall thereupon cease;  provided,  however, that the
Trustee or such Paying Agent,  before being required to make any such repayment,
may at the expense of the Company  cause to be published  once,  in The New York
Times and The Wall Street  Journal  (national  edition),  notice that such money
remains unclaimed and that, after a date specified  therein,  which shall not be
less  than 30 days  from  the  date of such  notification  or  publication,  any
unclaimed balance of such money then remaining will be repaid to the Company.

         Section 8.7. Reinstatement.

                  If the  Trustee or Paying  Agent is unable to apply any United
States dollars or non-callable  Government Securities in accordance with Section
8.2 or 8.3 hereof, as the case may be, 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,  the
Securities of such Series and the related Subsidiary  Guarantees,  if any, shall
be revived and reinstated as though no deposit had occurred  pursuant to Section
8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is permitted to
apply all such money in accordance  with Section 8.2 or 8.3 hereof,  as the case
may be;  provided,  however,  that, if the Company make any payment of principal
of,  premium,  if any, or interest,  if any, on any such Security  following the
reinstatement of its obligations,  the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment from the money held by
the Trustee or Paying Agent.

                                  ARTICLE IX.
                             AMENDMENTS AND WAIVERS

         Section 9.1. Without Consent of Holders.

                  Notwithstanding  Section  9.2 of the  Indenture,  without  the
consent of any Securityholder,  the Company,  the Guarantors and the Trustee may
amend or supplement the Indenture or the Securities:

                  (a) to cure any ambiguity, defect or inconsistency,

                  (b) to provide for uncertificated Securities in addition to or
         in place of certificated Securities,

                  (c) to provide  for the  assumption  of the  Company's  or any
         Guarantor's  obligations  to  Holders  of a  Security  in the case of a
         merger or consolidation,

                  (d) to make any  change  that  would  provide  any  additional
         rights or benefits to the  Holders of a Security  (including  providing
         for  additional  Subsidiary  Guarantees)  or that  does not  materially
         adversely  affect  the legal  rights  under the  Indenture  of any such
         Securityholder, or

                  (e) to comply with  requirements of the SEC in order to effect
         or maintain the qualification of the Indenture under the TIA.

                  Upon the request of the Company accompanied by a resolution of
its  Board  of  Directors  authorizing  the  execution  of any such  amended  or
supplemental  Indenture,  and  upon

                                      -39-
<PAGE>

receipt  by the  Trustee  of  the  documents  described  in  Section  7.2 of the
Indenture,  the Trustee  shall join with the Company and the  Guarantors  in the
execution of any amended or  supplemental  Indenture  authorized or permitted by
the terms of this Indenture and to make any further  appropriate  agreements and
stipulations  that  may be  therein  contained,  but the  Trustee  shall  not be
obligated to enter into such amended or supplemental  Indenture that affects its
own rights, duties or immunities under this Indenture or otherwise.

         Section 9.2. With Consent of Holders.

                  Except  as  provided  Section  9.1  and  Section  9.3  of  the
Indenture,  the  Indenture  or the  Securities  of a Series  may be  amended  or
supplemented with the consent of the Holders of at least a majority in principal
amount  of the  Securities  of each  Series  then  outstanding  affected  by the
supplemental  indenture  implementing  such  amendment or supplement  (including
consents  obtained  in  connection  with a tender  offer or  exchange  offer for
Securities),  and,  subject  to  Sections  6.8 and  6.12 of the  Indenture)  any
existing  Default or Event of Default  (other than a Default or Event of Default
in the  payment  of the  principal  of,  premium,  if any,  or  interest  on the
Securities  of  such  Series,   except  a  payment  default  resulting  from  an
acceleration  that has been  rescinded) or compliance  with any provision of the
Indenture or the Securities of such Series may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding  Securities of
each Series affected by such supplemental  indenture implementing such amendment
or supplement  (including consents obtained in connection with a tender offer or
exchange offer for Securities).

                  It shall not be  necessary  for the  consent of the Holders of
Securities under this Section 9.2 to approve the particular form of any proposed
amendment or waiver,  but it shall be  sufficient  if such consent  approves the
substance thereof.

                  Upon the request of the Company accompanied by a resolution of
its  Board  of  Directors  authorizing  the  execution  of any such  amended  or
supplemental  Indenture,  and  upon the  filing  with the  Trustee  of  evidence
reasonably  satisfactory  to the  Trustee  of the  consent  of  the  Holders  of
Securities  as  aforesaid,  and upon  receipt by the  Trustee  of the  documents
described in Section 7.2 hereof, the Trustee shall join with the Company and the
Guarantors in the  execution of such amended or  supplemental  Indenture  unless
such amended or supplemental  Indenture affects the Trustee's own rights, duties
or immunities  under this Indenture or otherwise,  in which case the Trustee may
in its  discretion,  but shall not be  obligated  to, enter into such amended or
supplemental Indenture.

         Section 9.3. Limitations.

                  Without  the  consent  of  each  Securityholder  affected,  an
amendment  or  waiver  may  not  (with  respect  to  any  Securities  held  by a
non-consenting Holder of Securities):

                  (a) reduce the principal  amount of  Securities  whose Holders
         must consent to an amendment, supplement or waiver;

                  (b) reduce the  principal  of or change the fixed  maturity of
         any  Security  or  alter  any of the  provisions  with  respect  to the
         redemption  of any Security in a manner  adverse to the Holders of such
         Security;

                                      -40-
<PAGE>

                  (c)  reduce  the rate of or  change  the time for  payment  of
         interest on any Security;

                  (d) waive a Default  or Event of  Default  in the  payment  of
         principal of or premium,  if any, or interest on any Security (except a
         rescission  of  acceleration  of the  Securities  of any  Series by the
         Holders of at least a majority  in  aggregate  principal  amount of the
         then outstanding  Securities of such Series and a waiver of the payment
         default that resulted from such acceleration);

                  (e) make any Security  payable in money other than that stated
         in such Security;

                  (f)  make  any  change  in the  provisions  of  the  Indenture
         relating  to  waivers  of past  Defaults  or the  rights of  Holders of
         Securities  of any  Series  to  receive  payments  of  principal  of or
         premium, if any, or interest on the Securities;

                  (g) waive a  redemption  payment  with respect to any Security
         (other  than a payment  required  by any  "Change of Control" or "Asset
         Sale"  covenant  set  forth in a  supplemental  indenture  relating  to
         Securities of a Series);

                  (h) except  pursuant to the  Indenture,  release any Guarantor
         from its  obligations  under its  Subsidiary  Guarantee,  or change any
         Subsidiary  Guarantee  in any manner  that would  materially  adversely
         affect the Securityholders; or

                  (i) make any  change in the  foregoing  amendment  and  waiver
         provisions.

                  It shall not be  necessary  for the  consent of the Holders of
Securities under this Section 9.3 to approve the particular form of any proposed
amendment or waiver,  but it shall be  sufficient  if such consent  approves the
substance thereof.

         Section 9.4. Compliance with Trust Indenture Act.

                  Every  amendment to this Indenture or the Securities of one or
more Series shall be set forth in a supplemental  indenture hereto that complies
with the TIA as then in effect.

         Section 9.5. Revocation and Effect of Consents.

                  Until an amendment or waiver becomes  effective,  a consent to
it by a Holder of a  Security  is a  continuing  consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder's Security, even if notation of the consent is not
made on any Security.  However,  any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of a Security if the Trustee  receives
the  notice of  revocation  before  the date the  amendment  or  waiver  becomes
effective.

                  Any  amendment  or waiver  once  effective  shall  bind  every
Securityholder  of each Series affected by such amendment or waiver unless it is
of the type  described in any of clauses (a) through (h) of Section 9.3. In that
case,  the  amendment  or waiver  shall bind each  Holder of a

                                      -41-
<PAGE>

Security who has  consented to it and every  subsequent  Holder of a Security or
portion of a Security that  evidences the same debt as the  consenting  Holder's
Security.

         Section 9.6. Notation on or Exchange of Securities.

                  The  Trustee  may  place  an  appropriate  notation  about  an
amendment or waiver on any Security of any Series thereafter authenticated.  The
Company in  exchange  for  Securities  of that  Series may issue and the Trustee
shall  authenticate  upon request new Securities of that Series that reflect the
amendment or waiver.

         Section 9.7. Trustee to Sign Amendments; Trustee Protected.

                  The Trustee shall sign any amended or  supplemental  Indenture
authorized  pursuant to this Article IX if the amendment or supplement  does not
adversely affect the rights,  duties,  liabilities or immunities of the Trustee.
In executing,  or accepting the additional  trusts created by, any  supplemental
indenture  permitted by this Article or the modifications  thereby of the trusts
created by this  Indenture,  the  Trustee  shall be  entitled  to  receive,  and
(subject to Section 7.1) shall be fully protected in relying upon, an Opinion of
Counsel  and   Officers'   Certificate   stating  that  the  execution  of  such
supplemental indenture is authorized or permitted by this Indenture. The Trustee
shall sign all  supplemental  indentures,  except that the Trustee need not sign
any supplemental indenture that adversely affects its rights.

                                   ARTICLE X.
                                 MISCELLANEOUS

         Section 10.1. Trust Indenture Act Controls.

                  If any  provision  of this  Indenture  limits,  qualifies,  or
conflicts with another  provision  which is required or deemed to be included in
this Indenture by the TIA, such required or deemed provision shall control.

         Section 10.2. Notices.

                  Any notice or communication  by the Company,  any Guarantor or
the Trustee to the others is duly given if in writing and delivered in Person or
mailed by first class mail (registered or certified,  return receipt requested),
telecopier  or overnight  air courier  guaranteeing  next day  delivery,  to the
others' address:

                  If to the Company or any Guarantor:

                           Iron Mountain Incorporated
                           745 Atlantic Avenue
                           Boston, MA 02111
                           Attention:  Chief Financial Officer
                           Telecopier No.:  (617) 350-7881

                  With a copy to:

                           Sullivan & Worcester LLP

                                      -42-
<PAGE>

                           One Post Office Square
                           Boston, MA  02109
                           Telecopier No.:  (617) 338-2880
                           Attention: William J. Curry, Esq.

                  If to the Trustee:
                           ____________________________

                           ____________________________
                           Telecopier No.:  ______________
                           Attention:  Corporate Trust Trustee Administration

                  The Company,  any  Guarantor or the Trustee,  by notice to the
others may designate additional or different addresses for subsequent notices or
communications.

                  All  notices  and  communications  (other  than  those sent to
Securityholders)  must  reference the Securities and this Indenture and shall be
deemed to have been duly given:  at the time  delivered by hand,  if  personally
delivered;  five  Business  Days  after  being  deposited  in the mail,  postage
prepaid,  if mailed;  when receipt  acknowledged,  if  telecopied;  and the next
Business Day after  timely  delivery to the  courier,  if sent by overnight  air
courier guaranteeing next day delivery.

                  Any  notice  or  communication  to a  Securityholder  shall be
mailed by first class mail,  or by overnight air courier  guaranteeing  next day
delivery to its address shown on the register kept by the Registrar.  Any notice
or  communication  shall  also be so mailed to any Person  described  in TIA ss.
313(c),  to the  extent  required  by the  TIA.  Failure  to  mail a  notice  or
communication  to a  Securityholder  or any  defect in it shall not  affect  its
sufficiency with respect to other Securityholders.

                  If a notice or  communication is mailed in the manner provided
above within the time prescribed, it is duly given, whether or not the addressee
receives it.

                  If  the   Company   or  any   Guarantor   mails  a  notice  or
communication to  Securityholders,  it shall mail a copy to the Trustee and each
Agent at the same time.

         Section 10.3. Communication by Holders with Other Holders.

                  Securityholders of any Series may communicate  pursuant to TIA
ss.  312(b) with other  Securityholders  of that Series or any other Series with
respect to their rights under this Indenture or the Securities of that Series or
all Series. The Company,  the Guarantors,  the Trustee, the Registrar and anyone
else shall have the protection of TIA ss. 312(c).

         Section 10.4. Certificate and Opinion as to Conditions Precedent.

                                      -43-
<PAGE>

                  Upon  any  request  or  application  by  the  Company  or  any
Guarantor to the Trustee to take any action under this Indenture, the Company or
such Guarantor shall furnish to the Trustee:

                  (a) an Officers'  Certificate  stating that, in the opinion of
         the signers,  all conditions  precedent,  if any,  provided for in this
         Indenture relating to the proposed action have been complied with; and

                  (b) an Opinion of Counsel stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

         Section 10.5. Statements Required in Certificate or Opinion.

                  Each  certificate or opinion with respect to compliance with a
condition or covenant  provided for in this Indenture  (other than a certificate
provided  pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA
ss. 314(e) and shall include:

                  (a) a statement  that the Person  making such  certificate  or
         opinion has read such covenant or condition;

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

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

                  (d) a  statement  as to whether or not, in the opinion of such
         Person, such condition or covenant has been complied with.

         Section 10.6. Rules by Trustee and Agents.

                  The  Trustee  may make  reasonable  rules  for  action by or a
meeting of  Securityholders of one or more Series. Any Agent may make reasonable
rules and set reasonable requirements for its functions.

         Section 10.7. Legal Holidays.

                  Unless  otherwise  provided  by  Board  Resolution,  Officers'
Certificate or supplemental indenture for a particular Series, a "Legal Holiday"
is any day that is not a Business Day. If a payment date is a Legal Holiday at a
place of payment,  payment may be made at that place on the next  succeeding day
that is not a Legal Holiday,  and no interest  shall accrue for the  intervening
period.

         Section 10.8. No Personal Liability of Directors,  Officers,  Employees
and Stockholders.

                                      -44-
<PAGE>

                  No  past,  present  or  future  director,  officer,  employee,
incorporator or stockholder of the Company or any Guarantor, as such, shall have
any liability  for any  obligations  of the Company or any  Guarantor  under the
Securities of any Series, the Subsidiary  Guarantees,  this Indenture or for any
claim  based on, in  respect  of, or by reason  of,  such  obligations  or their
creation.  Each Holder of Securities of any Series,  by accepting a Security and
the related  Subsidiary  Guarantees waives and releases all such liability.  The
waiver and release are part of the  consideration  for issuance of the Series of
Securities and the Subsidiary Guarantees.

         Section 10.9. Counterparts.

                  This  Indenture may be executed in any number of  counterparts
and by the  parties  hereto  in  separate  counterparts,  each of which  when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

         Section 10.10. Governing Laws.

                  THIS  INDENTURE  AND THE  SECURITIES  SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK  APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

         Section 10.11. No Adverse Interpretation of Other Agreements.

                  This Indenture may not be used to interpret another indenture,
loan or debt agreement of the Company or a Subsidiary.  Any such indenture, loan
or debt agreement may not be used to interpret this Indenture.

         Section 10.12. Successors.

                  All  agreements  of the  Company  and the  Guarantors  in this
Indenture and the  Securities  and the  Subsidiary  Guarantees  shall bind their
respective  successors.  All agreements of the Trustee in this  Indenture  shall
bind its successors.

         Section 10.13. Severability.

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

         Section 10.14. Table of Contents, Headings, Etc.

                  The Table of Contents,  Cross Reference Table, and headings of
the Articles and Sections of this Indenture  have been inserted for  convenience
of reference  only, are not to be considered a part hereof,  and shall in no way
modify or restrict any of the terms or provisions hereof.

                                      -45-
<PAGE>

         Section 10.15. Securities in a Foreign Currency or in ECU.

                  Unless   otherwise   specified  in  a  Board   Resolution,   a
supplemental  indenture hereto or an Officers' Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of Securities,
whenever for purposes of this  Indenture  any action may be taken by the Holders
of a specified  percentage  in aggregate  principal  amount of Securities of all
Series or all Series  affected by a  particular  action at the time  outstanding
and, at such time,  there are  outstanding  Securities  of any Series  which are
denominated in a coin or currency other than Dollars  (including ECUs), then the
principal  amount  of  Securities  of such  Series  which  shall be deemed to be
outstanding  for the  purpose  of taking  such  action  shall be that  amount of
Dollars  that could be obtained for such amount at the Market  Exchange  Rate at
such time. For purposes of this Section 10.15, "Market Exchange Rate" shall mean
the noon  Dollar  buying  rate in New  York  City for  cable  transfers  of that
currency  as  published  by the  Federal  Reserve  Bank of New  York;  provided,
however,  in the case of  ECUs,  Market  Exchange  Rate  shall  mean the rate of
exchange  determined by the  Commission of the European  Union (or any successor
thereto)  as  published  in the  Official  Journal of the  European  Union (such
publication  or any  successor  publication,  the  "Journal").  If  such  Market
Exchange Rate is not available for any reason with respect to such currency, the
Trustee  shall use, in its sole  discretion  and without  liability on its part,
such quotation of the Federal  Reserve Bank of New York or, in the case of ECUs,
the  rate of  exchange  as  published  in the  Journal,  as of the  most  recent
available  date, or quotations  or, in the case of ECUs,  rates of exchange from
one or more  major  banks in The City of New York or in the  country of issue of
the currency in question or, in the case of ECUs,  in  Luxembourg  or such other
quotations  or, in the case of ECUs,  rates of  exchange  as the  Trustee,  upon
consultation with the Company,  shall deem  appropriate.  The provisions of this
paragraph shall apply in determining the equivalent  principal amount in respect
of  Securities  of a Series  denominated  in  currency  other  than  Dollars  in
connection with any action taken by Holders of Securities  pursuant to the terms
of this Indenture.

                  All decisions and  determinations of the Trustee regarding the
Market  Exchange  Rate  or any  alternative  determination  provided  for in the
preceding paragraph shall be in its sole discretion and shall, in the absence of
manifest  error,  be conclusive to the extent  permitted by law for all purposes
and irrevocably binding upon the Company and all Holders.

         Section 10.16. Judgment Currency.

                  The  Company  agrees,  to  the  fullest  extent  that  it  may
effectively do so under applicable law, that (a) if for the purpose of obtaining
judgment in any court it is  necessary  to convert the sum due in respect of the
principal  of or interest or other amount on the  Securities  of any Series (the
"Required  Currency")  into a currency in which a judgment will be rendered (the
"Judgment  Currency"),  the rate of exchange  used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required Currency with the Judgment Currency on the day on which
final  unappealable  judgment  is  entered,  unless  such  day is not a New York
Banking  Day,  then,  the rate of  exchange  used  shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The City
of New York the Required  Currency  with the  Judgment  Currency on the New York
Banking Day  preceding the day on which final  unappealable  judgment is entered
and (b) its  obligations  under this  Indenture to make payments in the Required
Currency (i) shall not be

                                      -46-
<PAGE>

discharged  or  satisfied by any tender,  any recovery  pursuant to any judgment
(whether or not entered in  accordance  with  subsection  (a)),  in any currency
other  than the  Required  Currency,  except to the extent  that such  tender or
recovery shall result in the actual receipt, by the payee, of the full amount of
the Required Currency expressed to be payable in respect of such payments,  (ii)
shall be enforceable  as an  alternative  or additional  cause of action for the
purpose of recovering in the Required Currency the amount, if any, by which such
actual  receipt shall fall short of the full amount of the Required  Currency so
expressed  to be payable,  and (iii)  shall not be  affected  by judgment  being
obtained  for any  other sum due  under  this  Indenture.  For  purposes  of the
foregoing,  "New York Banking Day" means any day except a Saturday,  Sunday or a
legal  holiday  in The  City  of New  York on  which  banking  institutions  are
authorized or required by law, regulation or executive order to close.

                                  ARTICLE XI.
                                 SINKING FUNDS

         Section 11.1. Applicability of Article.

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

                  The minimum amount of any sinking fund payment provided for by
the terms of the Securities of any Series is herein  referred to as a "mandatory
sinking  fund  payment"  and any  other  amount  provided  for by the  terms  of
Securities  of such Series is herein  referred to as an  "optional  sinking fund
payment." If provided  for by the terms of  Securities  of any Series,  the cash
amount of any sinking  fund  payment may be subject to  reduction as provided in
Section 11.2.  Each sinking fund payment  shall be applied to the  redemption of
Securities of any Series as provided for by the terms of the  Securities of such
Series.

         Section 11.2. Satisfaction of Sinking Fund Payments with Securities.

                  The  Company  may, in  satisfaction  of all or any part of any
sinking fund payment  with  respect to the  Securities  of any Series to be made
pursuant to the terms of such Securities (1) deliver  outstanding  Securities of
such Series to which such sinking fund payment is applicable  (other than any of
such Securities previously called for mandatory sinking fund redemption) and (2)
apply as credit  Securities of such Series to which such sinking fund payment is
applicable  and which have been  redeemed  either at the election of the Company
pursuant  to the terms of such  Series of  Securities  (except  pursuant  to any
mandatory sinking fund) or through the application of permitted optional sinking
fund  payments  or other  optional  redemptions  pursuant  to the  terms of such
Securities,  provided that such Securities have not been previously so credited.
Such  Securities  shall be received by the Trustee,  together  with an Officers'
Certificate  with respect  thereto,  not later than 15 days prior to the date on
which the Trustee begins the process of selecting Securities for redemption, and
shall be credited for such purpose by the Trustee at the price specified in such
Securities for redemption  through  operation of the sinking fund and the amount
of such sinking fund payment shall be reduced accordingly. If as a result of the
delivery  or credit of  Securities  in lieu of cash  payments  pursuant  to this
Section 11.2,  the principal  amount of Securities of such Series to be redeemed
in order to exhaust

                                      -47-
<PAGE>

the  aforesaid  cash payment shall be less than  $100,000,  the Trustee need not
call Securities of such Series for redemption,  except upon receipt of a Company
Order  that such  action be taken,  and such cash  payment  shall be held by the
Trustee  or a Paying  Agent and  applied  to the next  succeeding  sinking  fund
payment,  provided,  however,  that the Trustee or such Paying  Agent shall from
time to time upon receipt of a Company Order pay over and deliver to the Company
any cash payment so being held by the Trustee or such Paying Agent upon delivery
by the Company to the Trustee of  Securities  of that  Series  purchased  by the
Company having an unpaid  principal amount equal to the cash payment required to
be released to the Company.

         Section 11.3. Redemption of Securities for Sinking Fund.

                  Not less than 45 days (unless otherwise indicated in the Board
Resolution, supplemental indenture hereto or Officers' Certificate in respect of
a particular  Series of Securities)  prior to each sinking fund payment date for
any Series of  Securities,  the Company will deliver to the Trustee an Officers'
Certificate  specifying  the amount of the next ensuing  mandatory  sinking fund
payment  for that  Series  pursuant  to the terms of that  Series,  the  portion
thereof,  if any,  which is to be  satisfied  by payment of cash and the portion
thereof,  if any,  which is to be  satisfied  by  delivering  and  crediting  of
Securities of that Series pursuant to Section 11.2, and the optional amount,  if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
the Company shall  thereupon be obligated to pay the amount  therein  specified.
Not less than 30 days  (unless  otherwise  indicated  in the  Board  Resolution,
Officers'  Certificate  or  supplemental  indenture  in respect of a  particular
Series of  Securities)  before each such  sinking  fund payment date the Trustee
shall select the  Securities  to be redeemed upon such sinking fund payment date
in the  manner  specified  in  Section  3.2 and cause  notice of the  redemption
thereof  to be given in the name of and at the  expense  of the  Company  in the
manner  provided  in Section  3.3.  Such  notice  having  been duly  given,  the
redemption  of such  Securities  shall be made upon the terms and in the  manner
stated in Sections 3.4, 3.5 and 3.6.

                                  ARTICLE XII.
                             SUBSIDIARY GUARANTEES

         Section 12.1. Subsidiary Guarantee.

                  Each Subsidiary that is a signatory hereto and each Subsidiary
of the Company that in accordance  with the terms of any  Securities of a Series
issued  hereunder  pursuant  to  any  supplement   indenture  relating  to  such
Securities is required to become party to this Indenture as a guarantor (each, a
"Guarantor"),  upon  execution of a supplemental  indenture,  hereby jointly and
severally  unconditionally  guarantees to each Securityholder of a Security of a
Series that is to be guaranteed and that has been authenticated and delivered by
the Trustee  irrespective of the validity or  enforceability  of this Indenture,
the  Securities or the  obligations  of the Company under this  Indenture or the
Securities,  that: (i) the principal of and interest on the  Securities  will be
paid in full when due,  whether at the maturity or interest payment or mandatory
redemption date, by acceleration, call for redemption or otherwise, and interest
on the overdue  principal of and  interest,  if any, on the  Securities  and all
other  obligations  of the Company to the  Securityholders  or the Trustee under
this Indenture or the Securities will be promptly paid in full or performed, all
in accordance with the terms of this Indenture and the  Securities;  and (ii) in
case of any extension of time of payment or renewal of any  Securities or any of
such  other

                                      -48-
<PAGE>

obligations,  they will be paid in full when due or performed in accordance with
the terms of the extension or renewal,  whether at maturity,  by acceleration or
otherwise.  Failing  payment when due of any amount so  guaranteed  for whatever
reason,  each  Guarantor  will be  obligated to pay the same whether or not such
failure to pay has become an Event of Default  which  could  cause  acceleration
pursuant to Section 6.2 hereof.  Each Guarantor  agrees that this is a guarantee
of payment not a guarantee of collection.

                  Each Guarantor  hereby agrees that its obligations with regard
to this  Subsidiary  Guarantee  shall be joint and  several  and  unconditional,
irrespective  of  the  validity  or  enforceability  of  the  Securities  or the
obligations  of the Company under this  Indenture,  the absence of any action to
enforce the same, the recovery of any judgment  against the Company or any other
obligor with respect to this Indenture, the Securities or the obligations of the
Company under this Indenture or the  Securities,  any action to enforce the same
or any  other  circumstances  (other  than  complete  performance)  which  might
otherwise  constitute a legal or equitable  discharge or defense of a Guarantor.
Each Guarantor further,  to the extent permitted by law, waives and relinquishes
all claims,  rights and remedies  accorded by applicable  law to guarantors  and
agrees not to assert or take  advantage of any such claims,  rights or remedies,
including  but not  limited  to:  (a) any  right to  require  the  Trustee,  the
Securityholders  or the Company (each, a "Benefited  Party") to proceed  against
the Company or any other  Person or to proceed  against or exhaust any  security
held by a  Benefited  Party at any time or to  pursue  any  other  remedy in any
Benefited  Party's  power  before  proceeding  against such  Guarantor;  (b) the
defense of the statute of limitations  in any action  hereunder or in any action
for the  collection of any  Indebtedness  or the  performance  of any obligation
hereby  guaranteed;  (c) any defense that may arise by reason of the incapacity,
lack of  authority,  death or disability of any other Person or the failure of a
Benefited   Party  to  file  or   enforce  a  claim   against   the  estate  (in
administration,  bankruptcy or any other  proceeding)  of any other Person;  (d)
demand,  protest and notice of any kind  including  but not limited to notice of
the existence,  creation or incurring of any new or additional  Indebtedness  or
obligation  or of any action or non-action  on the part of such  Guarantor,  the
Company, any Benefited Party, any creditor of such Guarantor,  the Company or on
the part of any other Person  whomsoever in connection with any  Indebtedness or
obligations  hereby  guaranteed;  (e) any  defense  based  upon an  election  of
remedies  by a  Benefited  Party,  including  but not  limited to an election to
proceed against such Guarantor for reimbursement; (f) any defense based upon any
statute or rule of law which  provides  that the  obligation of a surety must be
neither larger in amount nor in other respects more  burdensome than that of the
principal;  (g) any defense arising because of a Benefited Party's election,  in
any proceeding  instituted under Bankruptcy Law, of the application of 11 U.S.C.
Section  1111(b)(2);  or (h) any defense  based on any  borrowing  or grant of a
security  interest under 11 U.S.C.  Section 364. Each Guarantor hereby covenants
that  its  Subsidiary  Guarantee  will  not be  discharged  except  by  complete
performance of the  obligations  contained in its Subsidiary  Guarantee and this
Indenture.

                  If any  Securityholder or the Trustee is required by any court
or otherwise to return to either the Company or any Guarantor,  or any Custodian
acting in relation to either the Company or such  Guarantor,  any amount paid by
the  Company  or such  Guarantor  to the  Trustee  or such  Securityholder,  the
applicable Subsidiary Guarantees, to the extent theretofore discharged, shall be
reinstated and be in full force and effect.  Each Guarantor  agrees that it will
not be entitled to any right of subrogation  in relation to the  Securityholders
in respect of any  obligations  guaranteed  hereby until  payment in full of all
obligations guaranteed hereby.

                                      -49-
<PAGE>

                  Each Guarantor further agrees that, as between such Guarantor,
on the one hand, and the Securityholders and the Trustee, on the other hand, (i)
the maturity of the obligations guaranteed hereby may be accelerated as provided
in  Section  6.2  hereof  for  the  purposes  of  this   Subsidiary   Guarantee,
notwithstanding  any  stay,  injunction  or other  prohibition  preventing  such
acceleration  as to the Company or any other  obligor on the  Securities  of the
obligations  guaranteed  hereby,  and (ii) in the  event of any  declaration  of
acceleration  of those  obligations  as provided  in Section  6.2 hereof,  those
obligations  (whether  or not due and  payable)  will  forthwith  become due and
payable by such Guarantor for the purpose of this Subsidiary Guarantee.

         Section 12.2. Limitation of Guarantor's Liability.

                  Each Guarantor and, by its acceptance  hereof, the Trustee and
each Securityholder  hereby confirm that it is its intention that the Subsidiary
Guarantee of such Guarantor not  constitute a fraudulent  transfer or conveyance
for purposes of the Bankruptcy Law, the Uniform  Fraudulent  Conveyance Act, the
Uniform  Fraudulent  Transfer  Act or any  similar  federal  or state law to the
extent  applicable to any  Subsidiary  Guarantee.  To  effectuate  the foregoing
intention,  each such Person hereby  irrevocably  agrees that the  obligation of
such  Guarantor  under its Subsidiary  Guarantee  under this Article 12 shall be
limited to the  maximum  amount as will,  after  giving  effect to such  maximum
amount and all other  (contingent  or other)  liabilities of such Guarantor that
are relevant under such laws, and after giving effect to any  collections  from,
rights to  receive  contribution  from or  payments  made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under this
Article  XII,  result in the  obligations  of such  Guarantor in respect of such
maximum amount not  constituting a fraudulent  transfer or conveyance under said
laws.  The Trustee and each  Securityholder  by accepting  the benefits  hereof,
confirms its intention  that, in the event of a  bankruptcy,  reorganization  or
other similar  proceeding  of the Company or any  Guarantor in which  concurrent
claims are made upon such  Guarantor  hereunder,  to the extent such claims will
not be fully  satisfied,  each such  claimant  with a valid  claim  against  the
Company shall be entitled to a ratable  share of all payments by such  Guarantor
in respect of such  concurrent  claims.  For all purposes of this Section  12.2,
Senior Debt shall be deemed to have been incurred prior to the incurrence of the
obligations in respect of the Subsidiary Guarantees.

                                 ARTICLE XIII.
                                 Subordination

                  [Subordination  provisions with respect to Junior Subordinated
Debt Securities to be provided here.]

                                      -50-
<PAGE>

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

                                    Iron Mountain Incorporated

                                    By:
                                        ----------------------------------
                                        Name:
                                        Its:

                                    [Names of Guarantors]

                                    [Name of Trustee]

                                    By:
                                       -----------------------------------
                                        Name:
                                        Its:

                                      -51-Prepared by MERRILL CORPORATION

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Exhibit 4.1  

 
 

COMMON STOCK PURCHASE AGREEMENT    
  

        This
Common Stock Purchase Agreement (this "Agreement") is made and effective as of February 8, 2002 by and among EarthShell
Corporation, a Delaware corporation (the "Company"), and the Purchasers identified in the signature pages attached hereto (each a
"Purchaser" and, collectively, the "Purchasers"). 

        WHEREAS,
subject to the terms and conditions set forth in this Agreement, the Company desires to sell to the Purchasers and the Purchasers severally desire to purchase from the Company
certain shares of the Company's common stock, $0.01 par value per share (the "Common Stock"), as more fully set forth in this Agreement. 

        NOW,
THEREFORE, in consideration of the mutual covenants contained in this Agreement and for other good and valuable consideration the receipt and adequacy of which are hereby
acknowledged, the Company and the Purchasers agree as follows: 

        1.    Closing.    

        (a)  The
closing of the sale of the securities contemplated hereby (the "Closing") shall take place at the offices of
Proskauer Rose LLP ("Purchaser Counsel"), 1585 Broadway, New York, New York 10036, on February 8, 2002 or on such date or location as the parties
shall otherwise agree. The date of the Closing is hereinafter referred to as the "Closing Date." At the Closing: (x) the Company shall issue and
deliver to each Purchaser (i) a stock certificate, registered in the name of such Purchaser and free of all restrictive legends, representing the number of shares of Common Stock (the shares of
Common Stock issued and sold to the Purchasers hereunder are collectively, the "Shares") equal to the quotient obtained by dividing (a) the
purchase price set forth below such Purchaser's signature to this Agreement by (b) $1.1175, or, for Purchasers who provide the necessary account information to the Company, the
Company shall issue and deliver such Shares in a balance account with The Depository Trust Company through its Deposit Withdrawal Agent Commission System, (ii) a prospectus supplement with
respect to the Registration Statement (as defined in Section 2(e)) reflecting the sale of the Shares (the "Supplement"), and (iii) the
legal opinion of the Company's outside counsel in the form of Exhibit A; and (y) each Purchaser shall deliver to the Company the purchase
price set forth below such Purchaser's signature to this Agreement, in immediately available funds by wire transfer to an account designated in writing by the Company for such purpose. 

        (b)  The
obligation of the Purchasers to purchase and acquire Shares under this Agreement is subject to the fulfillment (or waiver by such Purchaser) of each of the following
conditions: 

          (i)  The
Company shall have filed the Supplement with the Securities and Exchange Commission (the "Commission"). 

        (ii)  The
Registration Statement (as defined in Section 2(g) below) shall be effective on the Closing Date as to all Shares, not subject to any threatened or actual
stop order and will not on the Closing Date contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein
not misleading. 

        (iii)  The
Company shall have provided a certificate from a duly authorized officer certifying on behalf of the Company that each of the conditions set forth in this
Section 1(b) shall have been satisfied. 

        2.    Representations and Warranties of the Company.    The Company
hereby makes the following representations and warranties to each of the Purchasers: 

        (a)    Subsidiaries.    The Company does not directly or indirectly
control or own any interest in any other corporation, partnership, joint venture or other business association or entity (a "Subsidiary"), other than
those listed in Schedule 2(a). Except as disclosed in Schedule 2(a), the Company owns, 

 

directly or indirectly, all of the capital stock of each Subsidiary free and clear of any lien, charge, claim, security interest, encumbrance, right of first refusal or other restriction
(collectively, "Liens"), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid,
non-assessable and free of preemptive and similar rights. 

        (b)    Organization and Qualification.    Each of the Company and the
Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with
the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of the
provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to do business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except
where the failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate, (i) adversely affect the legality, validity or enforceability of this
Agreement, (ii) have or result in a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a
whole, or (iii) adversely impair the Company's ability to perform fully on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a
"Material Adverse Effect"). 

        (c)    Authorization; Enforcement.    The Company has the requisite
corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this
Agreement by the Company and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Company and no further consent or
action is required by the Company, its Board of Directors or its stockholders. This Agreement has been (or upon delivery will be) duly executed by the Company and, when delivered in accordance with
the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms. 

        (d)    No Conflicts.    The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby do not and will not (i) conflict with or violate any provision of the Company's or any
Subsidiary's certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) subject to obtaining the Required Approvals (as defined below), conflict
with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the
Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) result in a violation of any law, rule, regulation, order,
judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations)
and the rules and regulations of any self-regulatory organization to which the Company or its securities are subject, or by which any property or asset of the Company or a Subsidiary is
bound or affected; except in the case of each of clauses (ii) and (iii), such as could not, individually or in the aggregate, have or result in a Material Adverse Effect. 

        (e)    Filings, Consents and Approvals.    Neither the Company nor any
Subsidiary is required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other
governmental authority or other Person in connection with the execution, delivery and performance by the Company of this Agreement, other than (i) the
required filing of the Supplement, (ii) applicable Blue Sky filings, and (iii) in all other cases where the failure to obtain such consent, waiver, authorization or order, or to give
such 

2

 

notice or make such filing or registration could not have or result in, individually or in the aggregate, a Material Adverse Effect (collectively, the "Required Approvals"). 

        (f)    Issuance of the Shares.    The Shares are duly authorized and,
when issued and paid for in accordance with the terms hereof, will be duly and validly issued, fully paid and nonassessable, free and clear of all liens, encumbrances and rights of first refusal. The
Company has reserved a sufficient number of duly authorized shares of Common Stock to issue all of the Shares. At the Closing, the Shares shall have been listed for trading on the Nasdaq National
Market (the "Trading Market"). 

        (g)    Registration Statement.    The Company's Registration Statement
on Form S-3 (No. 333-76092) (the "Registration Statement") was declared effective by the Commission on
January 7, 2002. The Registration Statement is effective on the date hereof and the Company has not received notice that the Commission has issued or intends to issue a stop order with respect
to the Registration Statement or that the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has
threatened in writing to do so. The Registration Statement (including the information or documents incorporated by reference therein), as of the time it was declared effective, and any amendments or
supplements thereto, each as of the time of filing, did not contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading. The issuance of the Shares to the Purchasers is registered by the Registration Statement. 

        (h)    Listing and Maintenance Requirements    Except as specified in
the SEC Reports, the Company has not, in the two years preceding the date hereof, received notice from the Trading Market to the effect that the Company is not in compliance with the listing or
maintenance requirements thereof. The Company is, and has no reason to believe that it will not in the foreseeable future continue to be, in compliance with the listing and maintenance requirements
for continued trading of the Common Stock on the Trading Market. 

        (i)    Certain Fees.    Except for listing fees to be paid by the
Company to the Trading Market and the placement fee payable to Olympus Securities, LLC in connection with the transactions contemplated by this Agreement, no fees or commissions will be payable by the
Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Purchasers
shall have no obligation with respect to any fees incurred by the Company or any other Person (other than the Purchasers, if the Purchasers have agreed in writing to pay such fees) or with respect to
any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement. The Company shall
indemnify and hold harmless the Purchasers, their employees, officers, directors, agents, and partners, and their affiliates, from and against all claims, losses, damages, costs (including the
reasonable costs of preparation and reasonable attorney's fees) and expenses suffered in respect of any such claimed or existing fees incurred by the Company or any other Person (other than the
Purchasers, if the Purchasers have agreed in writing to
pay such fees), as such fees and expenses are incurred. "Person" means any court or other federal, state, local or other governmental authority or other
individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision
thereof) or other entity of any kind. 

        (j)    Disclosure.    The Company confirms that neither it nor any
other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that constitutes or might constitute material, nonpublic information. The Company
understands and confirms that each of the Purchasers will rely on the foregoing representations in effecting transactions in securities of the Company. All disclosure provided to the Purchasers
regarding the Company, its business and the transactions contemplated hereby, including the Schedules to this Agreement, the Registration 

3

 

Statement and the Supplement, furnished by or on behalf of the Company are true and correct and do not contain any untrue statement of a material fact or omit to state any material fact necessary in
order to make the statements made therein, in light of the circumstances under which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the
Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions, which, under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or disclosed (assuming for this purpose that the Company's reports filed under the Securities Exchange Act of 1934, as amended
(the "Exchange Act") are being incorporated into an effective registration statement filed by the Company under the Securities Act of 1933, as amended
(the "Securities Act")). The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3. 

        (k)    No Violation.    The issuance and sale of the Shares hereunder
does not conflict with or violate any rules or regulations of the Trading Market. 

        (l)    SEC Reports; Financial Statements.    The Company has filed all
reports required to be filed by it under the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the
Company was required by law to file such material) (the foregoing materials being collectively referred to herein as the "SEC Reports" and, together
with this Agreement and the Schedules to this Agreement, the "Disclosure Materials") on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Reports prior to the expiration of any such extension. The Company has delivered to the Purchasers a copy of all SEC Reports filed within the 20 days preceding
the date hereof. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply
in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have
been prepared in accordance with generally accepted accounting principles applied on a consistent basis during the periods involved ("GAAP"), except as
may be otherwise specified in such financial statements or the notes thereto, and fairly present in all
material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. All material agreements to which the Company or any Subsidiary is a party or to which the
property or assets of the Company or any Subsidiary are subject are included as part of or specifically identified in the SEC Reports. 

        (m)    Capitalization.    The number of shares and type of all
authorized, issued and outstanding capital stock, options and other securities of the Company (whether or not presently convertible or exchangeable for shares of capital stock of the Company) is set
forth in Schedule 2(m). All outstanding shares of capital stock are duly authorized, validly issued, fully paid and nonassessable and have been issued in compliance with all applicable
securities laws. Except as disclosed in Schedule 2(m), there are no outstanding options, warrants, script rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities, rights or obligations convertible into or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock, or securities or rights convertible or exchangeable into shares
of Common Stock. Except as disclosed in Schedule 2(m), there are no 

4

 

anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) and the issue and sale of the
Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person and will not result in a right of any holder of Company securities to adjust the exercise,
conversion, exchange or reset price under such securities. To the knowledge of the Company, except as specifically disclosed in Schedule 2(m), no Person or group of related Persons beneficially
owns (as determined pursuant to Rule 13d-3 under the Exchange Act), or has the right to acquire, by agreement with or by obligation binding upon the Company, beneficial ownership of
in excess of 5% of the outstanding Common Stock, ignoring for such purposes any limitation on the number of shares of Common Stock that may be owned at any single time. 

        (n)    Material Changes.    Since the date of the latest audited
financial statements included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there has been no event, occurrence or development that has had or that could
result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the
ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or required to be disclosed in
filings made with the Commission, (iii) the Company has not altered its method of accounting or the identity of its auditors, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, and (v) the Company has not
issued any equity securities to any officer, director or affiliate, except pursuant to existing Company stock option plans. 

        (o)    Litigation.    There is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "Action")
which
(i) adversely affects or challenges the legality, validity or enforceability of this Agreement or the Shares or (ii) could, if there were an unfavorable decision, individually or in the
aggregate, have or result in a Material Adverse Effect. Schedule 2(m) of the Disclosure Schedule contains a complete list and summary description of any pending or, to the knowledge of the
Company, threatened proceeding against or affecting the Company or any of its Subsidiaries, without regard to whether it would have a Material Adverse Effect. Neither the Company nor any Subsidiary,
nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary
duty. The Company does not have pending before the Commission any request for confidential treatment of information. There has not been, and to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order
suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act. No strike, work stoppage, slow down or other material
labor problem exists or, to the knowledge of the Company, is threatened or imminent with respect to any of the employees of the Company or the Subsidiaries. 

        (p)    Compliance.    Neither the Company nor any Subsidiary
(i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other
agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of
any court, arbitrator or governmental body, or (iii) is or has been in 

5

 

violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection,
occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not, individually or in the aggregate, have or result in a Material Adverse
Effect. 

        (q)    Regulatory Permits.    The Company and the Subsidiaries possess
all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC
Reports, except where the failure to possess such permits could not, individually or in the aggregate, have or result in a Material Adverse Effect ("Material
Permits"), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit. 

        (r)    Title to Assets.    The Company and the Subsidiaries have good
and marketable title in fee simple to all real property owned by them that is material to the business of the Company and the Subsidiaries and good and marketable title in all personal property owned
by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do
not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries. Any real property and facilities held under lease by the Company and the
Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance. 

        (s)    Patents and Trademarks.    The Company and the Subsidiaries
have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights that are necessary or
material for use in connection with their respective businesses as described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the
"Intellectual Property Rights"). Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing
infringement by another Person of any of the Intellectual Property Rights. 

        (t)    Insurance.    The Company and the Subsidiaries are insured by
insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged.
Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business without a significant increase in cost. 

        (u)    Transactions With Affiliates and Employees.    Except as set
forth in SEC Reports filed at least ten days prior to the date hereof, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is
presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing
for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the
knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner. 

        (v)    Internal Accounting Controls.    The Company and the
Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability 

6

 

for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. 

        (w)    Solvency.    Based on the financial condition of the Company as
of the Closing Date, (i) the Company's fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other
liabilities (including known contingent liabilities) as they mature; and (ii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate
all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to
be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). 

        (x)    Acknowledgment Regarding Purchasers' Purchase of Shares.    The
Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to this Agreement and the transactions contemplated hereby. The
Company further acknowledges that no Purchaser is acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely
incidental to the Purchasers' purchase of the Shares. The Company further represents to each Purchaser that the Company's decision to enter into this Agreement has been based solely on the independent
evaluation of the Company and its representatives. 

        3.    Representations and Warranties of the Purchasers.    Each
Purchaser hereby for itself and for no other Purchaser, represents, warrants and covenants to the Company as follows: 

        (a)    Organization; Authorization.    Each such Purchaser that is an entity is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation. Such Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions
contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement. Upon the execution and delivery of this Agreement and assuming the valid
execution hereof by the Company, this Agreement shall constitute the valid and binding obligation of such Purchaser enforceable in accordance with its terms. 

        (b)    Experience of Such Purchaser.    Such Purchaser, either alone or together with its representatives, has such
knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the
merits and risks of such investment. 

        The
Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those
specifically set forth in this Section 3. 

        4.    Other Agreements of the Parties.    

        4.1    Subsequent Placements.    

        (a)  Until
90 Business Days following the Closing Date, the Company will not, directly or indirectly, effect any, offer, sell, grant any option to purchase, or otherwise
dispose of (or announce any offer, sale, grant or any option to purchase or other disposition of) any of its or the Subsidiaries' equity or equity equivalent securities, including, without limitation,
any debt, preferred stock or other instrument or security that is, at any time during its life and under any circumstances, convertible into or exchangeable for Common Stock (any such offer, sale,
grant, disposition or announcement being 

7

 

referred to as a "Subsequent Placement") unless the Company shall have first complied with this Section 4.1(a). 

          (i)  The
Company shall deliver to each Purchaser a written notice (the "Offer") of any proposed or intended issuance or sale
or exchange of the securities being offered (the "Offered Securities") in a Subsequent Placement, which Offer shall (w) identify and describe the
Offered Securities, (x) describe the price and other terms upon which they are to be issued, sold or exchanged, and the number or amount of the Offered Securities to be issued, sold or
exchanged, (y) identify the persons or entities (if known) to which or with which the Offered Securities are to be offered, issued, sold or exchanged and (z) offer to issue and sell to
or exchange with each Purchaser (A) a pro rata portion of fifty percent (50%) of the Offered Securities, based on such Purchaser's pro rata portion of the aggregate purchase price paid by the
Purchasers for all of the Shares purchased hereunder (the "Basic Amount"), and (B) with respect to each Purchaser that elects to purchase its
Basic Amount, any additional portion of the Offered Securities attributable to the Basic Amounts of other Purchasers as such Purchaser shall indicate it will purchase or acquire should the other
Purchasers subscribe for less than their Basic Amounts (the "Undersubscription Amount"). 

        (ii)  To
accept an Offer, in whole or in part, a Purchaser must deliver a written notice to the Company prior to the end of the five (5) Business Day period of the
Offer, setting forth the portion of the Purchaser's Basic Amount that such Purchaser elects to purchase and, if such Purchaser shall elect to purchase all of its Basic Amount, the Undersubscription
Amount, if any, that such Purchaser elects to purchase (in either case, the "Notice of Acceptance"). If the Basic Amounts subscribed for by all Purchasers are less than the total of all of the Basic
Amounts, then each Purchaser who has set forth an Undersubcription Amount in its Notice of Acceptance shall be entitled to purchase, in addition to the Basic Amounts subscribed for, the
Undersubscription Amount it has subscribed for; provided, however, that if the Undersubscription Amounts subscribed for exceed the difference between
the total of all the Basic Amounts and the Basic Amounts subscribed for (the "Available Undersubscription Amount"), each Purchaser who has subscribed
for any Undersubscription Amount shall be entitled to purchase on that portion of the Available Undersubscription Amount as the Basic Amount of such Purchaser bears to the total Basic Amounts of all
Purchasers that have subscribed for Undersubscription Amounts, subject to rounding by the Board of Directors to the extent its deems reasonably necessary. 

        (iii)  The
Company shall have five (5) days from the expiration of the period set forth in Section 4.1(a)(ii) above to issue, sell or exchange all or any
part of such Offered Securities as to which a Notice of Acceptance has not been given by the Purchasers (the "Refused Securities"), but only to the
offerees described in the Offer (if so described therein) and only upon terms and conditions (including, without limitation, unit prices and interest rates) that are not more favorable to the
acquiring person or persons or less favorable to the Company than those set forth in the Offer. 

        (iv)  In
the event the Company shall propose to sell less than all the Refused Securities (any such sale to be in the manner and on the terms specified in
Section 4.1(a)(iii) above), then each Purchaser may, at its sole option and in its sole discretion, reduce the number or amount of the Offered Securities specified in its Notice of
Acceptance to an amount that shall be not less than the number or amount of the Offered Securities that the Purchaser elected to purchase pursuant to Section 4.1(a)(ii) above multiplied
by a fraction, (i) the numerator of which shall be the number or amount of Offered Securities the Company actually proposes to issue, sell or exchange (including Offered Securities to be issued
or sold to Purchasers pursuant to Section 4.1(a)(ii) above prior to such reduction) and (ii) the denominator of which shall be the original amount of the Offered Securities. In
the event that any Purchaser so elects to reduce the number or amount of Offered Securities specified in its Notice of Acceptance, the Company may not issue, sell or exchange more than the reduced
number or amount of the Offered Securities unless and until such securities have again been offered to the Purchasers in accordance with Section 4.5(b)(i) above. 

8

  

        (v)  Upon
the closing of the issuance, sale or exchange of all or less than all of the Refused Securities, the Purchasers shall acquire from the Company, and the Company
shall issue to the Purchasers, the number or amount of Offered Securities specified in the Notices of Acceptance, as reduced pursuant to Section 4.5(b)(iv) above if the Purchasers have
so elected, upon the terms and conditions specified in the Offer. The purchase by the Purchasers of any Offered Securities is subject in all cases to the preparation, execution and delivery by the
Company and the Purchasers of a purchase agreement relating to such Offered Securities reasonably satisfactory in form and substance to the Purchasers, the Company and their respective counsel. 

        (vi)  Any
Offered Securities not acquired by the Purchasers or other persons in accordance with Section 4.5(b)(iii) above may not be issued, sold or exchanged
until they are again offered to the Purchasers under the procedures specified in this Agreement. 

        (b)  The
restrictions contained in paragraph (a) of this Section shall not apply to (i) the granting of options to employees, officers and directors of the
Company pursuant to any stock option plan duly adopted by the Company or to the issuance of Common Stock upon exercise of such options, or (ii) strategic transactions not significantly for the
purpose of raising capital. 

        4.2    Disclosure of Material Non-Public Information.    The Company shall not and shall cause each of its
Affiliates (as defined in Rule 405 under the Securities Act) and other Persons acting on behalf of the Company not to divulge to any Purchaser any information that it believes to be material
non-public information unless such Purchaser has agreed in writing to receive such information prior to such divulgence. 

        4.3    Reservation and Listing of Shares.    The Company shall take such steps as may be required to cause and
maintain the listing of the Shares on the Trading Market and such other exchange, market or quotation facility on which the Common Stock is traded. 

        4.4    Indemnification    

        (a)  The
Company will indemnify and hold harmless each Purchaser and any of its affiliates or any officer, director, partner, controlling person, employee or agent of a
Purchaser or any of its affiliates (a "Related Person") for its reasonable legal and other expenses (including the costs of any investigation,
preparation and travel) and for any Losses incurred in connection with any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such
as a disposition), whether commenced or threatened (each, a "Proceeding"), insofar as such Losses arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Registration Statement or the Supplement, or any amendment or supplement thereto, and all other documents filed as a part thereof, as
amended at the time of effectiveness of the Registration Statement, including any information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b) of
Rule 430A, or pursuant to Rule 434, under the Securities Act, or arise out of or are based upon the omission or alleged omission to state in any of them a material fact required to be
stated therein or necessary to make the statements in any of them, in light of the circumstances under which they were made, not misleading, as such expenses or Losses are incurred. In addition, the
Company shall indemnify and hold harmless each Purchaser and Related Person from and against any and all Losses, as incurred, arising out of or relating to any breach by the Company of any of the
representations, warranties or covenants made by the Company in this Agreement, or any allegation by a third party that, if true, would constitute such a breach. The conduct of any Proceeding for
which indemnification is available under this paragraph shall be governed by Section 4.4(b). The indemnification obligations of the Company under this paragraph shall be in addition to any
liability that the Company may otherwise have and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Purchasers and any such Related
Persons. The Company also agrees that neither the Purchasers nor any Related Persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the 

9

 

Company in connection with or as a result of the transactions contemplated by this Agreement, except to the extent that any losses, claims, damages, liabilities or expenses incurred by the Company
result from the gross negligence or willful misconduct of the applicable Purchaser or Related Person in connection with such transactions. If the Company breaches its obligations under this Agreement,
then, in addition to any other liabilities the Company may have under this Agreement or applicable law, the Company shall pay or reimburse the Purchasers on demand for all costs of collection and
enforcement (including reasonable attorneys fees and expenses). Without limiting the generality of the foregoing, the Company specifically agrees to reimburse the Purchasers on demand for all costs of
enforcing the indemnification obligations in this paragraph. For the purposes of this Section 4.4, "Losses" shall mean any and all losses,
claims, damages, liabilities, settlement costs and expenses, including without limitation costs of preparation of legal action and reasonable attorneys' fees. 

        (b)    Conduct of Indemnification Proceedings.    If any Proceeding shall be brought or asserted against any Person
entitled to indemnity hereunder (an "Indemnified Party"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
"Indemnifying Party") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of
competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party. 

        An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be
at the expense of such Indemnified Party or Parties unless: (i) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (ii) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in
any such Proceeding; or (iii) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified
Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and such counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without
its written consent, which consent shall not be unreasonably withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject
matter of such Proceeding. 

        All
fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a
manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Business Days of written notice thereof to the Indemnifying Party (regardless of whether it
is ultimately determined that an Indemnified Party is not entitled to indemnification hereunder; provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all
such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to indemnification hereunder). 

        5.    Miscellaneous    

10

 

        (a)    Fees and Expenses.    At the Closing, the Company shall pay to Pine Ridge Financial Inc. an aggregate of
$25,000 for their legal fees and expenses incurred in connection with the preparation and negotiation of this Agreement. In lieu of the foregoing payment, to Pine Ridge Financial Inc. may
retain such amount at the Closing or require the Company to pay such amount directly to Purchaser Counsel. Except as expressly set forth in this Agreement to the contrary, each party shall pay the
fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance of the Shares. 

        (b)    Publicity.    Neither the Company nor the Purchasers shall issue any press release or make any other public
announcement relating to this Agreement unless (i) the content thereof is mutually agreed to by the Company and the Purchasers, or (ii) such party is advised by its counsel that such
press release or public announcement is required by law; except that no press release issued to disclose the issuance and sale of the Shares to the Purchasers will refer to the Purchasers by name. The
Company shall (i) within one Business Day following the Closing Date, issue a press release mutually agreed to by the
Company and the Purchasers, disclosing the transactions contemplated hereby and (ii) make such other filings and notices in the manner and time required by the Commission. 

        (c)    Entire Agreement; Amendments.    This Agreement contains the entire understanding of the parties with respect
to the subject matter hereof and supersedes all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into this Agreement
and its exhibits and schedules. This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and Purchasers then holding a majority of the Shares
purchased hereunder. The waiver by either party hereto of any right hereunder or the failure to perform or of a breach by the other party shall not be deemed a waiver of any other right hereunder or
of any other breach or failure by said other party whether of a similar nature or otherwise. 

        (d)    Notices.    Any and all notices or other communications or deliveries required or permitted to be provided
hereunder shall be in writing and shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Business Day, (ii) the Business Day after the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number specified in this Agreement later than 6:30 p.m. (New York City time) on any date and earlier than 11:59 p.m. (New York
City time) on such date, (iii) the Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to
whom such notice is required to be given. The address for such notices and communications shall be as follows: 

	If to the Company:	 	EarthShell Corporation

800 Miramonte Drive

Santa Barbara, California 93109

Attn: Chief Financial Officer
	

With a copy to:	
 	

Gibson, Dunn & Crutcher LLP.

2029 Century Park East

Los Angeles, California 90067

Facsimile No.: (310) 551-8741

Attn: Robert K. Montgomery, Esq.
	

If to the Purchasers:	
 	

To the address set forth under such Purchaser's name on the signature pages attached hereto.

11

 

        or
such other address as may be designated in writing hereafter, in the same manner, by such Person. "Business Day" shall mean any day
except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the State of New York are authorized or required by law or
other governmental action to close. 

        (e)    Governing Law.    All questions concerning the construction, validity, enforcement and interpretation of this
Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees
that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Each party
hereto hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of this Agreement), and hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper. Each party hereto
hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or
overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service
of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If
either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its
reasonable attorneys fees and other reasonable costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 

        (f)    Execution.    This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need
not sign the same counterpart. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) the same with the same force and effect as if such facsimile signature page were an original thereof. 

        (g)    Independent Nature of Purchasers.    The obligations of each Purchaser under this Agreement are several and not
joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under this Agreement. The decision of
each Purchaser to purchase Shares pursuant to this Agreement has been made by such Purchaser independently of any other Purchaser and independently of any information, materials, statements or
opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition (financial or otherwise) or prospects of the Company or of the Subsidiary which
may have been made or given by any other Purchaser or by any agent or employee of any other Purchaser, and no Purchaser or any of its agents or employees shall have any liability to any other
Purchaser (or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein, and no action taken by any Purchaser pursuant hereto,
shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert 

12

 

or as a group with respect to such obligations or the transactions contemplated by this Agreement. Each Purchaser shall be entitled to independently protect and enforce its rights, including without
limitation the rights arising out of this Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 

        (h)    Replacement of Shares.    If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or
destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but
only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or
instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Shares. 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGES FOLLOW] 

13

   
        IN WITNESS WHEREOF, the parties hereto have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above. 

	 	 	EARTHSHELL CORPORATION
	

 	
 	

By:	
 	

/s/  SCOTT HOUSTON      
 Name: Scott Houston

Title: Chief Financial Officer

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK SIGNATURE PAGE OF PURCHASERS FOLLOWS] 

14

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Common Stock Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated
above. 

	 	 	PINE RIDGE FINANCIAL INC.
	

 	
 	

By:	
 	

/s/  KENNETH L. HENDERSON      
 Name: Kenneth L. Henderson

Title: Attorney-in-Fact
	

 	
 	

Purchase Price: $3,499,999.94
	

 	
 	

Address for Notice:

c/o Cavallo Capital Corp.

600 Madison Avenue

New York, NY 10022

Telephone No.: (212) 651-9000

Facsimile No.: (212) 651-9010

Attn: Avi Vigder
	

With copies to:	
 	

Proskauer Rose LLP

1585 Broadway

New York, NY 10036-8299

Facsimile No.: (212) 969-2900

Attn: Adam J. Kansler, Esq.

15

 

	 	 	ZLP MASTER TECHNOLOGY FUND, LTD.
	

 	
 	

 	
 	

 
	

 	
 	

By:	
 	

/s/  STUART J. ZIMMER      
 Name: Stuart J. Zimmer

Title: Director
	

 	
 	

Purchase Price: $3,000,000.27
	

 	
 	

Address for Notice:

c/o Zimmer Lucas Partners, LLC

45 Broadway, 28th Floor

New York, NY 10006

Telephone No.:

Facsimile No.: (212) 440-0750

Attn: Rita Patel

16

 

	 	 	CLEVELAND OVERSEAS LTD.
	

 	
 	

By:	
 	

/s/  BEAT KUNZ      
 Name: Beat Kunz

Title: Director
	

 	
 	

Purchase Price: $1,500,000.14
	

 	
 	

Address for Notice:

c/o Vertical Ventures, LLC

900 Third Avenue, 26th Floor

New York, NY 10022

Telephone No.: (212) 974-3070

Facsimile No.: (646) 274-1728

Attn: Joshua Silverman

17

QuickLinks

COMMON STOCK PURCHASE AGREEMENT

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