Document:

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                                                                     EXHIBIT 4.3

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                             Quanta Services, Inc.,
                                    as Issuer

                                       to

                    Chase Bank of Texas, National Association
                                                  as Trustee

                                   ----------

                             SUBORDINATED INDENTURE

                         Dated as of ____________, 2000

                                   ----------

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                                TABLE OF CONTENTS

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<TABLE>
<CAPTION>
                                                                                                PAGE
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<S>                                                                                            <C>
PARTIES..........................................................................................1

RECITALS OF THE COMPANY..........................................................................1
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION..............................1
      Section 101.    Definitions................................................................1
              Act................................................................................1
              Affiliate..........................................................................2
              Authenticating Agent...............................................................2
              Board of Directors.................................................................2
              Board Resolution...................................................................2
              Business Day.......................................................................2
              Capital Stock......................................................................2
              Commission.........................................................................2
              Common Stock.......................................................................2
              Company............................................................................2
              Company Request....................................................................2
              Company Order......................................................................2
              Conversion Agent...................................................................2
              Conversion Price...................................................................2
              Conversion Shares..................................................................3
              Corporate Trust Office.............................................................3
              corporation........................................................................3
              Covenant Defeasance................................................................3
              Defaulted Interest.................................................................3
              Defeasance.........................................................................3
              Depositary.........................................................................3
              Designated Senior Debt.............................................................3
              Distribution Date..................................................................3
              Event of Default...................................................................3
              Exchange Act.......................................................................3
              Expiration Date....................................................................3
              Expiration Time....................................................................3
              Global Security....................................................................3
              Holder.............................................................................3
              Indenture..........................................................................3
              interest ..........................................................................4
              Interest Payment Date..............................................................4
              Investment Company Act.............................................................4
              Last Sale Price....................................................................4
              Maturity...........................................................................4
              Notice of Default..................................................................4
              Offer..............................................................................4
              Officer's Certificate..............................................................4
              Opinion of Counsel.................................................................4
              Original Issue Discount Security...................................................4
</TABLE>

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<TABLE>
<S>                                                                                            <C>
              Outstanding........................................................................4
              Paying Agent.......................................................................5
              Person.............................................................................5
              Place of Payment...................................................................5
              Predecessor Security...............................................................5
              Redemption Date....................................................................5
              Redemption Price...................................................................6
              Regular Record Date................................................................6
              Responsible Officer................................................................6
              Securities.........................................................................6
              Securities Act.....................................................................6
              Security Register..................................................................6
              Security Registrar.................................................................6
              Senior Debt........................................................................6
              Senior Nonmonetary Default.........................................................6
              Senior Payment Default.............................................................6
              Significant Subsidiary.............................................................6
              Special Record Date................................................................6
              Stated Maturity....................................................................6
              Subsidiary.........................................................................6
              Trading Day........................................................................6
              Trust Indenture Act................................................................7
              Trustee............................................................................7
              U.S. Government Obligation.........................................................7
              Vice President.....................................................................7
              Voting Stock.......................................................................7
              Wholly Owned Subsidiary............................................................7
      Section 102.      Compliance Certificates and Opinions.....................................7
      Section 103.      Form of Documents Delivered to Trustee...................................8
      Section 104.      Acts of Holders; Record Dates............................................8
      Section 105.      Notices, Etc., to Trustee and Company....................................9
      Section 106.      Notice to Holders; Waiver................................................10
      Section 107.      Conflict with Trust Indenture Act........................................10
      Section 108.      Effect of Headings and Table of Contents.................................10
      Section 109.      Successors and Assigns...................................................11
      Section 110.      Separability Clause......................................................11
      Section 111.      Benefits of Indenture....................................................11
      Section 112.      Governing Law............................................................11
      Section 113.      Legal Holidays...........................................................11
      Section 114.      Counterparts.............................................................11
 ARTICLE TWO            SECURITY FORMS...........................................................12
      Section 201.      Forms Generally..........................................................12
      Section 202.      Form of Face of Security.................................................12
      Section 203.      Form of Reverse of Security..............................................14
      Section 205.      Form of Legend for Global Securities.....................................17
      Section 206.      Form of Trustee's Certificate of Authentication..........................18
      Section 207.      Form of Conversion Notice................................................19
 ARTICLE THREE          THE SECURITIES...........................................................20
      Section 301.      Amount Unlimited; Issuable in Series.....................................20
      Section 302.      Denominations............................................................22
</TABLE>

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<TABLE>
<S>                                                                                            <C>
      Section 303.      Execution, Authentication, Delivery and Dating...........................22
      Section 304.      Temporary Securities.....................................................24
      Section 305.      Registration, Registration of Transfer and Exchange......................24
      Section 306.      Mutilated, Destroyed, Lost and Stolen Securities.........................25
      Section 307.      Payment of Interest; Interest Rights Preserved...........................26
      Section 308.      Persons Deemed Owners....................................................27
      Section 309.      Cancellation.............................................................28
      Section 310.      Computation of Interest..................................................28
 ARTICLE FOUR           SATISFACTION AND DISCHARGE...............................................28
      Section 401.      Satisfaction and Discharge of Indenture..................................28
      Section 402.      Application of Trust Money...............................................29
 ARTICLE FIVE           REMEDIES.................................................................29
      Section 501.      Events of Default........................................................29
      Section 502.      Acceleration of Maturity; Rescission and Annulment.......................31
      Section 503.      Collection of Indebtedness and Suits for Enforcement by Trustee..........32
      Section 504.      Trustee May File Proofs of Claim.........................................32
      Section 505.      Trustee May Enforce Claims Without Possession of Securities..............33
      Section 506.      Application of Money Collected...........................................33
      Section 507.      Limitation on Suits......................................................33
      Section 508.      Unconditional Right of Holders to Receive Principal,
                        Premium and Interest.....................................................34
      Section 509.      Restoration of Rights and Remedies.......................................34
      Section 510.      Rights and Remedies Cumulative...........................................34
      Section 511.      Delay or Omission Not Waiver.............................................34
      Section 512.      Control by Holders.......................................................35
      Section 513.      Waiver of Past Defaults..................................................35
      Section 514.      Undertaking for Costs....................................................35
      Section 515.      Waiver of Usury, Stay or Extension Laws..................................35
 ARTICLE SIX            THE TRUSTEE..............................................................36
      Section 601.      Certain Duties and Responsibilities......................................36
      Section 602.      Notice of Defaults.......................................................36
      Section 603.      Certain Rights of Trustee................................................36
      Section 604.      Not Responsible for Recitals or Issuance of Securities...................38
      Section 605.      May Hold Securities......................................................38
      Section 606.      Money Held in Trust......................................................38
      Section 607.      Compensation and Reimbursement...........................................38
      Section 608.      Conflicting Interests....................................................39
      Section 609.      Corporate Trustee Required; Eligibility..................................39
      Section 610.      Resignation and Removal; Appointment of Successor........................39
      Section 611.      Acceptance of Appointment by Successor...................................40
      Section 612.      Merger, Conversion, Consolidation or Succession to Business..............41
      Section 613.      Preferential Collection of Claims Against Company........................42
      Section 614.      Appointment of Authenticating Agent......................................42
 ARTICLE SEVEN          HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY........................43
      Section 701.      Company to Furnish Trustee Names and Addresses of Holders................43
      Section 702.      Preservation of Information; Communications to Holders...................43
      Section 703.      Reports by Trustee.......................................................44
      Section 704.      Reports by Company.......................................................44
 ARTICLE EIGHT          CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE.....................44
      Section 801.      Company May Consolidate, Etc., Only on Certain Terms.....................44
      Section 803.      Successor Substituted....................................................45
</TABLE>

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<TABLE>
<S>                                                                                            <C>
 ARTICLE NINE           SUPPLEMENTAL INDENTURES..................................................45
      Section 901.      Supplemental Indentures Without Consent of Holders.......................45
      Section 902.      Supplemental Indentures With Consent of Holders..........................46
      Section 903.      Execution of Supplemental Indentures.....................................47
      Section 904.      Effect of Supplemental Indentures........................................48
      Section 905.      Conformity with Trust Indenture Act......................................48
      Section 906.      Reference in Securities to Supplemental Indentures.......................48
 ARTICLE TEN            COVENANTS................................................................48
      Section 1001.     Payment of Principal, Premium and Interest...............................48
      Section 1002.     Maintenance of Office or Agency..........................................49
      Section 1003.     Money for Securities Payments to Be Held in Trust........................49
      Section 1004.     Statement by Officers as to Default......................................50
      Section 1005.     Existence................................................................50
      Section 1006.     Maintenance of Properties................................................50
      Section 1007.     Payment of Taxes and Other Claims........................................51
      Section 1008.     Maintenance of Insurance.................................................51
      Section 1009.     Waiver of Certain Covenants..............................................51
 ARTICLE ELEVEN         REDEMPTION OF SECURITIES.................................................51
      Section 1101.     Applicability of Article.................................................51
      Section 1102.     Election to Redeem; Notice to Trustee....................................52
      Section 1103.     Selection by Trustee of Securities to Be Redeemed........................52
      Section 1104.     Notice of Redemption.....................................................53
      Section 1105.     Deposit of Redemption Price..............................................53
      Section 1106.     Securities Payable on Redemption Date....................................54
      Section 1107.     Securities Redeemed in Part..............................................54
 ARTICLE TWELVE         SUBORDINATION OF SECURITIES..............................................54
      Section 1201.     Applicability of Article.................................................54
      Section 1202.     Securities Subordinate to Senior Debt....................................54
      Section 1203.     Payment Over of Proceeds Upon Dissolution, Etc...........................55
      Section 1204.     No Payment When Senior Debt of the Company in Default....................56
      Section 1205.     Payment Permitted If No Default..........................................57
      Section 1206.     Subrogation to Rights of Holders of Senior Debt of the Company...........57
      Section 1207.     Provisions Solely to Define Relative Rights..............................58
      Section 1208.     Trustee to Effectuate Subordination......................................58
      Section 1209.     No Waiver of Subordination Provisions....................................58
      Section 1210.     Notice to Trustee........................................................59
      Section 1211.     Reliance on Judicial Order or Certificate of Liquidating Agent...........59
      Section 1212.     Trustee Not Fiduciary for Holders of Senior Debt of the Company..........60
      Section 1213.     Rights of Trustee as Holder of Senior Debt of the Company;
                        Preservation of Trustee's Rights.........................................60
      Section 1214.     Article Applicable to Paying Agents......................................60
      Section 1215.     Defeasance of this Article Twelve........................................60
 ARTICLE THIRTEEN       [INTENTIONALLY OMITTED]..................................................60
 ARTICLE FOURTEEN       [INTENTIONALLY OMITTED]..................................................60
 ARTICLE FIFTEEN        DEFEASANCE AND COVENANT DEFEASANCE.......................................61
      Section 1501.     Company's Option to Effect Defeasance or Covenant Defeasance.............61
      Section 1502.     Defeasance and Discharge.................................................61
</TABLE>

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<TABLE>
<S>                                                                                            <C>
      Section 1503.     Covenant Defeasance......................................................61
      Section 1504.     Conditions to Defeasance or Covenant Defeasance..........................62
      Section 1505.     Deposited Money and U.S. Government Obligations to Be Held
                        in Trust; Miscellaneous Provisions.......................................63
      Section 1506.     Reinstatement............................................................64
 ARTICLE SIXTEEN        SINKING FUNDS............................................................64
      Section 1601.     Applicability of Article.................................................64
      Section 1602.     Satisfaction of Sinking Fund Payments with Securities....................65
      Section 1603.     Redemption of Securities for Sinking Fund................................65
 ARTICLE SEVENTEEN      CONVERSION OF SECURITIES.................................................65
      Section 1701.     Applicability of Article.................................................65
      Section 1702.     Exercise of Conversion Privilege.........................................65
      Section 1703.     Fractional Interests.....................................................67
      Section 1704.     Adjustment of Conversion Price...........................................67
      Section 1705.     Continuation of Conversion Privilege in Case of Merger, Consolidation
                        or Sale of Assets........................................................71
      Section 1706.     Notice of Certain Events.................................................72
      Section 1707.     Taxes on Conversion......................................................73
      Section 1708.     Company to Provide Stock.................................................73
      Section 1709.     Disclaimer of Responsibility for Certain Matters.........................73
      Section 1710.     Return of Funds Deposited for Redemption of Converted Securities.........74
</TABLE>

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                              QUANTA SERVICES, INC.

    CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
                 INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

<TABLE>
<CAPTION>
TRUST INDENTURE
  ACT SECTION                                                      INDENTURE SECTION

<S>                                                                <C>
 Section 310(a)(1) ..............................................  609
     (a)(2)        ..............................................  609
     (a)(3)        ..............................................  Not Applicable
     (a)(4)        ..............................................  Not Applicable
     (b)           ..............................................  608
                                                                   610
 Section 311(a)    ..............................................  613
     (b)           ..............................................  613
 Section 312(a)    ..............................................  701
                                                                   702
     (b)           ..............................................  702
     (c)           ..............................................  702
 Section 313(a)    ..............................................  703
     (b)           ..............................................  703
     (c)           ..............................................  703
     (d)           ..............................................  703
 Section 314(a)    ..............................................  704
     (a)(4)        ..............................................  101
                                                                   1004
     (b)           ..............................................  Not Applicable
     (c)(1)        ..............................................  102
     (c)(2)        ..............................................  102
     (c)(3)        ..............................................  Not Applicable
     (d)           ..............................................  Not Applicable
     (e)           ..............................................  102
 Section 315(a)    ..............................................  601
     (b)           ..............................................  602
     (c)           ..............................................  601
     (d)           ..............................................  601
     (e)           ..............................................  514
 Section 316(a)    ..............................................  101
     (a)(1)(A)     ..............................................  502
                                                                   512
     (a)(1)(B)     ..............................................  513
     (a)(2)        ..............................................  Not Applicable
     (b)           ..............................................  508
     (c)           ..............................................  104
 Section 317(a)(1) ..............................................  503
     (a)(2)        ..............................................  504
     (b)           ..............................................  1003
 Section 318(a)    ..............................................  107
</TABLE>

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

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         INDENTURE, dated as of ____________, 200__, among Quanta Services,
Inc., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the "Company"), having its principal office at 1360 Post
Oak Blvd., Suite 2100, Houston, Texas 770056, and Chase Bank of Texas, National
Association, a national banking association as Trustee (herein called the
"Trustee").

                             RECITALS OF THE COMPANY

         The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.

         All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done.

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of series thereof, as
follows:

                                   ARTICLE ONE

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

SECTION 101.  Definitions.

         For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

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

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

              (3) all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles, and, except as otherwise herein expressly provided, the term
     "generally accepted accounting principles" with respect to any computation
     required or permitted hereunder shall mean such accounting principles as
     are generally accepted at the date of this instrument;

              (4) unless the context otherwise requires, any reference to an
     "Article" or a "Section" refers to an Article or a Section, as the case may
     be, of this Indenture; and

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

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

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         "Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise;
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing; provided that direct or indirect beneficial ownership of 10% or more
of the Voting Stock of a Person shall be deemed to control; provided, however
that UtiliCorp United, Inc. and its respective Affiliates (other than the
Company's Subsidiaries) shall not be deemed to be Affiliates of the Company.

         "As - Converted Series A Preferred Shares" means that number of shares
of Common Stock into which the outstanding shares of Series A Preferred Stock
are convertible at any time.

         "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

         "Board of Directors" means, with respect to the Company, either the
board of directors of the Company or any committee of that board duly authorized
to act for it in respect hereof.

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

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

         "Capital Stock" of any Person means any and all shares, interests,
participations or other equivalents (however designated) of corporate stock or
other equity participations, including partnership interests, whether general or
limited, of such Person.

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

         "Common Stock" means the Common Stock, par value $.00001 per share, of
the Company as the same exists at the date of execution and delivery of this
Indenture or other capital stock of the Company into which such Common Stock is
converted, reclassified or changed from time to time.

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

         "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board, its Vice
Chairman of the Board, its President or a Vice President, and delivered to the
Trustee.

         "Conversion Agent" means any Person authorized by the Company to
convert any Securities on behalf of the Company.

         "Conversion Price" has the meaning specified in Section 1704.

                                       2
<PAGE>   10

         "Conversion Shares" has the meaning specified in Section 1704(k).

         "Corporate Trust Office" means the principal office of the Trustee as
follows: (a) for registration or transfer of the Securities: Chase Bank of
Texas, National Association, 2001 Bryan Street, 9th Street, Dallas, Texas 75201,
telephone: (800) 275-2048, telecopy: (214) 672-5873; (b) for payment of the
Securities, an agent for the Trustee, Chase Manhattan Bank, National
Association, 55 Water Street, Room 234, New York, New York 10041, telephone
(212) 638-0454, telecopy (212) 638-7380; and (c) for all other communications
relating to the Securities: Chase Bank of Texas, National Association, Capital
Markets Fiduciary Services, 600 Travis Street, Suite 1150, Houston, Texas 77002,
telephone (713) 216-6877, telecopy (713) 577-5200.

         The term "corporation" means a corporation, association, company,
joint-stock company, partnership or business trust.

         "Covenant Defeasance" has the meaning specified in Section 1503.

         "Date of Conversion" has the meaning set forth in Section 1702.

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

         "Defeasance" has the meaning specified in Section 1502.

         "Depositary" means, with respect to Securities of any series issuable
in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 301.

         "Designated Senior Debt" with respect to any series of Securities shall
have the meaning specified in or contemplated by Section 301 and 1204.

         "Distribution Date" has the meaning specified in Section 1704(k).

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

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

         "Expiration Date" has the meaning specified in Section 104.

         "Expiration Time" has the meaning specified in Section 1704(e).

         "Global Security" means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 205 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

         "Holder" means a Person in whose name a Security is registered in the
Security Register.

         "Indenture" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this

                                       3
<PAGE>   11

instrument and any such supplemental indenture, respectively. The term
"Indenture" shall also include the terms of particular series of Securities
established as contemplated by Section 301.

         "Insolvency or Liquidation Proceeding" has the meaning specified in
Section 607.

         "interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity or after a
specified date, means such interest payable only after Maturity or after a
specified date.

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

         "Investment Company Act" means the Investment Company Act of 1940 and
any statute successor thereto, in each case as amended from time to time.

         "Last Sale Price" has the meaning specified in Section 1703.

         Limited Vote Common Stock means that number of shares of Common Stock
into which the outstanding shares of Limited Vote Common Stock are, upon
transfer, convertible at any time.

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

         "Notice of Default" means a written notice of the kind specified in
Section 501(4).

         "Offer" has the meaning specified in Section 1704(e).

         "Officer's Certificate" means a certificate signed by the Chairman of
the Board, a Vice Chairman of the Board, the President or a Vice President, of
the Company, and delivered to the Trustee. The officer signing the Company's
Officer's Certificate given pursuant to Section 1004 shall be the principal
executive, financial or accounting officer of the Company.

         "Opinion of Counsel" means, as to the Company, a written opinion of
counsel, who may be counsel for the Company, and who shall be acceptable to the
Trustee.

         "Original Issue Discount Security" means any Security which provides
for an amount less than the face principal amount thereof to be due and payable
upon a declaration of acceleration of the Maturity thereof pursuant to Section
502.

         "Outstanding", when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:

              (1) Securities theretofore cancelled by the Trustee or delivered
     to the Trustee for cancellation;

              (2) Securities for whose payment or redemption money in the
     necessary amount has been theretofore deposited with the Trustee or any
     Paying Agent (other than the Company) in trust or set aside and segregated
     in trust by the Company (if the Company shall act as its own Paying Agent)
     for the Holders of such Securities; provided that, if such Securities are
     to be redeemed, notice of such

                                       4
<PAGE>   12

     redemption has been duly given pursuant to this Indenture or provision
     therefor satisfactory to the Trustee has been made;

              (3) Securities as to which Defeasance has been effected pursuant
     to Section 1502; and

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given, made or taken any
request, demand, authorization, direction, notice, consent, waiver or other
action hereunder as of any date, (A) the principal amount of an Original Issue
Discount Security which shall be deemed to be Outstanding shall be the amount of
the principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502, (B)
if, as of such date, the principal amount payable at the Stated Maturity of a
Security is not determinable, the principal amount of such Security which shall
be deemed to be Outstanding shall be the amount as specified or determined as
contemplated by Section 301, (C) the principal amount of a Security denominated
in one or more foreign currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar equivalent, determined as of such date in
the manner provided as contemplated by Section 301, of the principal amount of
such Security (or, in the case of a Security described in Clause (A) or (B)
above, of the amount determined as provided in such Clause), and (D) Securities
owned by the Company, or any other obligor upon the Securities or any Affiliate
of the Company, or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent, waiver or other action, only Securities which the Trustee knows
to be so owned shall be so disregarded. Securities so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes
to the satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Company, or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

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

         "Person" means any individual, corporation, partnership, joint venture,
trust, unincorporated organization or other entity or any government or any
agency or political subdivision thereof.

         "Place of Payment", when used with respect to the Securities of any
series, means the place or places where the principal of and any premium and
interest on the Securities of that series are payable as specified as
contemplated by Section 301.

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

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

                                       5
<PAGE>   13

         "Redemption Price", when used with respect to any Security to be
redeemed, means the price at which it is to be redeemed pursuant to this
Indenture.

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 301.

         "Responsible Officer" means any officer in the corporate trust
department (or any successor thereto) of the Trustee, or any other officer of
the Trustee customarily performing functions similar to those performed by any
of such officers and also means, with respect to a particular corporate trust
matter, any other officer of the Trustee to whom such matter is referred because
of that officer's knowledge of and familiarity with that particular matter.

         "Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

         "Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.

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

         "Senior Debt" with respect to any series of Securities shall have the
meaning specified as contemplated by Section 301.

         "Senior Nonmonetary Default" has the meaning specified in Section 1204.

         "Senior Payment Default" has the meaning specified in Section 1204.

         "Significant Subsidiary" means, at any date of determination, any
Subsidiary that represents 10% or more of the Company's total consolidated
assets at the end of the most recent fiscal quarter for which financial
information is available or 10% or more of the Company's consolidated net
revenues or consolidated operating income for the most recent four quarters for
which financial information is available.

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

         "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" of any Person means (1) a corporation more than 50% of the
combined voting power of the outstanding Voting Stock of which is owned,
directly or indirectly, by such Person or by one or more other Subsidiaries of
such Person or by such Person and one or more Subsidiaries thereof or (2) any
other Person (other than a corporation) in which such Person, or one or more
other Subsidiaries of such Person or such Person and one or more other
Subsidiaries thereof, directly or indirectly, has at least a majority ownership
and power to direct the policies, management and affairs thereof.

         "Trading Day" has the meaning specified in Section 1703.

                                       6
<PAGE>   14

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

         "Trustee" 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.

         "U.S. Government Obligation" has the meaning specified in Section 1504.

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

         "Voting Stock" of any Person means Capital Stock of such Person which
ordinarily has voting power for the election of directors (or persons performing
similar functions) of such Person, whether at all times or only so long as no
senior class of securities has such voting power by reason of any contingency.

         "Wholly Owned Subsidiary" of any Person means a Subsidiary of such
Person all of the outstanding Capital Stock or other ownership interests of
which (other than directors' qualifying shares or the minimum number of shares
necessary to satisfy foreign ownership requirements) shall at the time be owned
by such Person or by one or more Wholly Owned Subsidiaries of such Person or by
such Person and one or more Wholly Owned Subsidiaries of such Person.

SECTION 102.  Compliance Certificates and Opinions.

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

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

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

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

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

                                       7
<PAGE>   15

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

SECTION 103.  Form of Documents Delivered to Trustee.

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

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

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

SECTION 104.  Acts of Holders; Record Dates.

         Any request, demand, authorization, direction, notice, consent, waiver
or other action provided or permitted by this Indenture to be given, made or
taken by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

         The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate of a notary public or other officer authorized by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a signer acting in a capacity other than his individual capacity, such
certificate or affidavit shall also constitute sufficient proof of his
authority. The fact and date of the execution of any such instrument or writing,
or the authority of the Person executing the same, may also be proved in any
other manner which the Trustee deems sufficient.

                                       8
<PAGE>   16

         The ownership of Securities shall be proved by the Security Register.

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

         The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series, provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date, provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action for which a
record date has previously been set pursuant to this paragraph (whereupon the
record date previously set shall automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be construed
to render ineffective any action taken by Holders of the requisite principal
amount of Outstanding Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph, the
Company, at its own expense, shall cause notice of such record date, the
proposed action by Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder of Securities of the relevant series in
the manner set forth in Section 106.

         With respect to any record date set pursuant to this Section, the party
hereto which sets such record dates may designate any day as the "Expiration
Date" and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party hereto in writing, and
to each Holder of Securities of the relevant series in the manner set forth in
Section 106, on or prior to the existing Expiration Date. If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

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

SECTION 105.  Notices, Etc., to Trustee and Company.

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

                                       9
<PAGE>   17

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

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

              Notices to the Trustee shall be effective only upon receipt.

SECTION 106.  Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

         In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

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

SECTION 107.  Conflict with Trust Indenture Act.

         If any provision hereof limits, qualifies or conflicts with a provision
of the Trust Indenture Act which is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
which may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

SECTION 108.  Effect of Headings and Table of Contents.

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

                                       10
<PAGE>   18

SECTION 109.  Successors and Assigns.

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

SECTION 110.  Separability Clause.

         In case any provision in this Indenture or the Securities 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 111.  Benefits of Indenture.

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

SECTION 112.  Governing Law.

         This Indenture or the Securities shall be governed by and construed in
accordance with the law of the State of New York.

SECTION 113.  Legal Holidays.

         In any case where any Interest Payment Date, Redemption Date, purchase
date or Stated Maturity of any Security shall not be a Business Day at any Place
of Payment, then (notwithstanding any other provision of this Indenture or of
the Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section)) payment of interest or
principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the Interest Payment Date,
Redemption Date or purchase date, or at the Stated Maturity.

SECTION 114.  Counterparts.

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

                                       11
<PAGE>   19

                                   ARTICLE TWO

                                 SECURITY FORMS

SECTION 201.  Forms Generally.

         The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution or in one or more indentures supplemental hereto,
in each case with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted by this Indenture, and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their
execution thereof. If the form of Securities of any series is established by
action taken pursuant to a Board Resolution, a copy of an appropriate record of
such action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 303 for the authentication and delivery of such
Securities.

         The definitive Securities shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution of
such Securities.

SECTION 202.  Form of Face of Security.

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

                              Quanta Services, Inc.

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

No.                                                                   $
    ---------                                                          ---------

         Quanta Services, Inc., a corporation duly organized and existing under
the laws of Delaware (herein called the "Company", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to _________________________ , or registered
assigns, the principal sum of ______________________ Dollars
_______________________ on ______________________________________ [if the
Security is to bear interest prior to Maturity, insert -- , and to pay interest
thereon from _______________ or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on ____________
and ____________ in each year, commencing _________, at the rate of ____% per
annum, until the principal hereof is paid or made available for payment,
provided that any principal and premium, and any such installment of interest,
which is overdue shall bear interest at the rate of ___% per annum (to the
extent that the payment of such interest shall be legally enforceable), from the
dates such amounts are due until they are paid or made available for payment,
and such interest shall be payable on demand. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Security
(or one or more Predecessor Securities) is registered at the close of business
on the Regular Record Date for such interest, which shall be the _______ or
_______ (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly provided
for will forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice whereof shall be given to Holders of Securities of this series
not less than 10 days prior to such Special Record Date, or be paid at any time
in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Securities of this series may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture].

                                       12
<PAGE>   20

         [If the Security is not to bear interest prior to Maturity or another
specified date, insert -- The principal of this Security shall not bear interest
[until __________] except in the case of a default in payment of principal upon
acceleration, upon redemption or at Stated Maturity and in such case the overdue
principal and any overdue premium shall bear interest at the rate of _____.% per
annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment. Interest on any overdue principal or premium shall be
payable on demand. Any such interest on overdue principal or premium which is
not paid on demand shall bear interest at the rate of _______% per annum (to the
extent that the payment of such interest on interest shall be legally
enforceable), from the date of such demand until the amount so demanded is paid
or made available for payment. Interest on any overdue interest shall be payable
on demand.]

         Payment of the principal of (and premium, if any) and [if applicable,
insert -- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in ____________, in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.

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

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

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                                           Quanta Services, Inc.

                                                    By
                                                       -------------------------

                                       13
<PAGE>   21

SECTION 203.  Form of Reverse of Security.

         This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of ____________, 2000 (herein called the
"Indenture", which term shall have the meaning assigned to it in such
instrument), between the Company and Chase Bank of Texas, National Association,
as Trustee (herein called the "Trustee", which term includes any successor
trustee under the Indenture), and reference is hereby made to the Indenture for
a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Company, the Trustee, the holders of Senior Debt
and the Holders of the Securities and of the terms upon which the Securities
are, and are to be, authenticated and delivered. This Security is one of the
series designated on the face hereof [if applicable, insert -- , limited in
aggregate principal amount to $_______________].

         [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert --
(1) on ____________ in any year commencing with the year ___________ and ending
with the year ______ through operation of the sinking fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [if
applicable, insert -- on or after ___________, 20__], as a whole or in part, at
the election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount at Maturity): If redeemed [if applicable,
insert -- on or before _______________, ____%, and if redeemed] during the
12-month period beginning _______________ of the years indicated,

<TABLE>
<CAPTION>
                          Redemption                                         Redemption
Year                        Price                  Year                        Price
----                      ----------               ----                      ----------
<S>                       <C>                      <C>                       <C>

</TABLE>

and thereafter at a Redemption Price equal to ______% of the principal amount at
Maturity, together in the case of any such redemption [if applicable, insert --
(whether through operation of the sinking fund or otherwise)] with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity
is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of
business on the relevant Record Dates referred to on the face hereof, all as
provided in the Indenture.]

         [If applicable, insert -- The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, (1) on _____________ in
any year commencing with the year ______ and ending with the year _______
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time [if
applicable, insert -- on or after _______________], as a whole or in part, at
the election of the Company, at the Redemption Prices for redemption otherwise
than through operation of the sinking fund (expressed as percentages of the
principal amount) set forth in the table below: If redeemed during the 12-month
period beginning _______________ of the years indicated,

                                       14
<PAGE>   22

<TABLE>
<CAPTION>
                                Redemption Price
                                 For Redemption                     Redemption Price For
                               Through Operation                    Redemption Otherwise
                                     of the                        Than Through Operation
Year                              Sinking Fund                       of the Sinking Fund
----                           -----------------                   ----------------------
<S>                            <C>                                 <C>

</TABLE>

and thereafter at a Redemption Price equal to ______% of the principal amount at
Maturity, together in the case of any such redemption (whether through operation
of the sinking fund or otherwise) with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Securities, or one or
more Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

         [If applicable, insert -- Notwithstanding the foregoing, the Company
may not, prior to _____________, redeem any Securities of this series as
contemplated by [if applicable, insert -- Clause (2) of] the preceding paragraph
as a part of, or in anticipation of, any refunding operation by the application,
directly or indirectly, of moneys borrowed having an interest cost to the
Company (calculated in accordance with generally accepted financial practice) of
less than ________% per annum.]

         [If applicable, insert -- The sinking fund for this series provides for
the redemption on ____________ in each year beginning with the year __________
and ending with the year ________ of [if applicable, insert -- not less than
$___________ ("mandatory sinking fund") and not more than] $___________
aggregate principal amount of Securities of this series. Securities of this
series acquired or redeemed by the Company otherwise than through [if
applicable, insert -- mandatory] sinking fund payments may be credited against
subsequent [if applicable, insert -- mandatory] sinking fund payments otherwise
required to be made [if applicable, insert -- , in the inverse order in which
they become due].]

         [If the Security is subject to redemption of any kind, insert -- In the
event of redemption of this Security in part only, a new Security or Securities
of this series and of like tenor for the unredeemed portion hereof will be
issued in the name of the Holder hereof upon the cancellation hereof.]

         [If the Security is subject to conversion, insert -- Subject to the
provisions of the Indenture, each Holder has the right to convert the principal
amount of this Security into fully paid and nonassessable shares of Common Stock
of the Company at the initial Conversion Price per share of Common Stock of
$_____ (or $_____ in principal amount of Securities for each such share of
Common Stock), or at the adjusted Conversion Price then in effect, if adjustment
has been made as provided in the Indenture, upon surrender of the Security to
the Conversion Agent, together with a fully executed notice in substantially the
form attached hereto and, if required by the Indenture, an amount equal to
accrued interest payable on this Security.]

         The indebtedness evidenced by this Security is, to the extent provided
in the Indenture, subordinate and subject in right of payment to the prior
payment in full of all Senior Debt of the Company, and this Security is issued
subject to the provisions of the Indenture with respect thereto. Each

                                       15
<PAGE>   23

Holder of this Security, by accepting the same, (a) agrees to and shall be bound
by such provisions, (b) authorizes and directs the Trustee on his behalf to take
such action as may be necessary or appropriate to effectuate the subordination
so provided and (c) appoints the Trustee his attorney-in-fact for any and all
such purposes.

          [If applicable, insert -- The Indenture contains provisions for
Defeasance and Covenant Defeasance at any time of [the entire indebtedness of
this Security] [or] [certain restrictive covenants and Events of Default with
respect to this Security] [, in each case] upon compliance with certain
conditions set forth in the Indenture.]

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

         [If the Security is an Original Issue Discount Security, insert -- If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to -- insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal, premium and interest (in each
case to the extent that the payment of such interest shall be legally
enforceable), all of the Company's obligations in respect of the payment of the
principal of and premium and interest, if any, on the Securities of this series
shall terminate.]

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

         As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have received from the Holders of a majority in principal amount of
Securities of this series at the time Outstanding a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.

                                       16
<PAGE>   24

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and any premium and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

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

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

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

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

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

SECTION 204.  [intentionally omitted].

SECTION 205.  Form of Legend for Global Securities.

         Unless otherwise specified as contemplated by Section 301 for the
Securities evidenced thereby, every Global Security authenticated and delivered
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 A DEPOSITARY OR A
NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A
SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

                                       17
<PAGE>   25

SECTION 206.  Form of Trustee's Certificate of Authentication.

         The Trustee's certificates of authentication shall be in substantially
the following form:

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

                                                -------------------------------,
                                                                      As Trustee

Date of Authentication:                         By
                        ---------------------    ---------------------------
                                                     Authorized Signatory

                                       18
<PAGE>   26

SECTION 207.  Form of Conversion Notice.

         Each convertible Security shall have attached thereto, or set forth on
the reverse of the Security, a notice of conversion in substantially the
following form:

                                Conversion Notice

                            To: Quanta Services, Inc.

              The undersigned owner of this Security hereby: (i) irrevocably
     exercises the option to convert this Security, or the portion hereof below
     designated, for shares of Common Stock of Quanta Services, Inc. in
     accordance with the terms of the Indenture referred to in this Security and
     (ii) directs that such shares of Common Stock deliverable upon the
     conversion, together with any check in payment for fractional shares and
     any Security(ies) representing any unconverted principal amount hereof, be
     issued and delivered to the registered holder hereof unless a different
     name has been indicated below. If shares are to be delivered registered in
     the name of a person other than the undersigned, the undersigned will pay
     all transfer taxes payable with respect thereto. Any amount required to be
     paid by the undersigned on account of interest accompanies this Security.

              Dated
                    -----------------        ------------------------------
                                                Signature

              Fill in for registration of shares if to be delivered, and of
     Securities if to be issued, otherwise than to and in the name of the
     registered holder.

                                                  ------------------------------
                                                  Social Security or other
                                                  Taxpayer Identification Number
     ----------------------------------
         (Name)

     ----------------------------------
         (Street Address)

     ----------------------------------
         (City, State and Zip Code)
     (Please print name and address)
                                       Principal amount to be converted:
                                       (if less than all)
                                       $
                                        -------------------------------
Signature Guarantee*

-------------------------
*Participant in a recognized Signature Guarantee Medallion Program (or other
signature acceptable to the Trustee).

                                       19
<PAGE>   27

                                  ARTICLE THREE

                                 THE SECURITIES

SECTION 301.  Amount Unlimited; Issuable in Series.

         The aggregate principal amount of Securities which may be authenticated
and delivered under this Indenture is unlimited.

         The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution and, subject to Section 303,
set forth, or determined in the manner provided, in an Officer's Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,

              (1)  the title of the Securities of the series (which shall
     distinguish the Securities of the series from Securities of any other
     series);

              (2) [intentionally omitted];

              (3) any change to the subordination provisions which applies to
     the Securities of the series from those contained in Article Twelve with
     respect to the Securities, and the definitions of Senior Debt and
     Designated Senior Debt which shall apply to the Securities of the series;

              (4) 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 304, 305, 306, 906 or 1107 and
     except for any Securities which, pursuant to Section 303, are deemed never
     to have been authenticated and delivered hereunder);

              (5) the Person to whom any interest on a Security of the series
     shall be payable, if other than the Person in whose name that Security (or
     one or more Predecessor Securities) is registered at the close of business
     on the Regular Record Date for such interest;

              (6) the date or dates on which the principal of any Securities of
     the series is payable;

              (7) the rate or rates at which any Securities of the series shall
     bear interest, if any, the date or dates from which any such interest shall
     accrue, the Interest Payment Dates on which any such interest shall be
     payable and the Regular Record Date for any such interest payable on any
     Interest Payment Date;

              (8) the place or places where the principal of and any premium
     and interest on any Securities of the series shall be payable;

              (9) the period or periods within which, the price or prices at
     which and the terms and conditions upon which any Securities of the series
     may be redeemed, in whole or in part, at the option of the Company and, if
     other than by a Board Resolution, the manner in which any election by the
     Company to redeem the Securities shall be evidenced;

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

                                       20
<PAGE>   28

              (11) if other than denominations of $1,000 and any integral
     multiple thereof, the denominations in which any Securities of the series
     shall be issuable;

              (12) if the amount of principal of or any premium or interest on
     any Securities of the series may be determined with reference to an index
     or pursuant to a formula, the manner in which such amounts shall be
     determined;

              (13) if other than the currency of the United States of America,
     the currency, currencies or currency units in which the principal of or any
     premium or interest on any Securities of the series shall be payable and
     the manner of determining the equivalent thereof in the currency of the
     United States of America for any purpose, including for purposes of the
     definition of "Outstanding" in Section 101;

              (14) if the principal of or any premium or interest on any
     Securities of the series is to be payable, at the election of the Company
     or the Holder thereof, in one or more currencies or currency units other
     than that or those in which such Securities are stated to be payable, the
     currency, currencies or currency units in which the principal of or any
     premium or interest on such Securities as to which such election is made
     shall be payable, the periods within which and the terms and conditions
     upon which such election is to be made and the amount so payable (or the
     manner in which such amount shall be determined);

              (15) if other than the entire principal amount thereof, the
     portion of the principal amount of any Securities of the series which shall
     be payable upon declaration of acceleration of the Maturity thereof
     pursuant to Section 502;

              (16) if the principal amount payable at the Stated Maturity of any
     Securities of the series will not be determinable as of any one or more
     dates prior to the Stated Maturity, the amount which shall be deemed to be
     the principal amount of such Securities as of any such date for any purpose
     thereunder or hereunder, including the principal amount thereof which shall
     be due and payable upon any Maturity other than the Stated Maturity or
     which shall be deemed to be Outstanding as of any date prior to the Stated
     Maturity (or, in any such case, the manner in which such amount deemed to
     be the principal amount shall be determined);

              (17) if applicable, that the Securities of the series, in whole or
     any specified part, shall be defeasible pursuant to Section 1502 or Section
     1503 or both such Sections and, if other than by a Board Resolution, the
     manner in which any election by the Company to defease such Securities
     shall be evidenced;

              (18) if applicable, that any Securities of the series shall be
     issuable in whole or in part in the form of one or more Global Securities
     and, in such case, the respective Depositories for such Global Securities,
     the form of any legend or legends which shall be borne by any such Global
     Security in addition to or in lieu of that set forth in Section 205 and any
     circumstances in addition to or in lieu of those set forth in Clause (2) of
     the last paragraph of Section 305 in which any such Global Security may be
     exchanged in whole or in part for Securities registered, and any transfer
     of such Global Security in whole or in part may be registered, in the name
     or names of Persons other than the Depositary for such Global Security or a
     nominee thereof;

              (19) 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 502;

                                       21
<PAGE>   29

              (20) any addition to or change in the covenants set forth in
     Article Ten which applies to Securities of the series;

              (21) whether the Securities of the series will be convertible into
     Common Stock (or cash in lieu thereof) and, if so, the terms and conditions
     upon which such conversion shall be effected including the initial
     Conversion Price and any adjustments thereto in addition to or different
     from those set forth in Section 1704, the conversion period and other
     provisions in addition to or in lieu of those set forth herein; and

              (22) any other terms of the series (which terms shall not be
     inconsistent with the provisions of this Indenture, except as permitted by
     Section 901(5)).

         All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board Resolution referred to above and (subject to Section 303) set
forth, or determined in the manner provided, in the Officer's Certificate
referred to above or in any such indenture supplemental hereto.

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

         The Securities shall be subordinated in right of payment to Senior Debt
of the Company as provided in Article Twelve.

SECTION 302.  Denominations.

         The Securities of each series shall be issuable only in registered form
without coupons and only in such denominations as shall be specified as
contemplated by Section 301. In the absence of any such specified denomination
with respect to the Securities of any series, the Securities of such series
shall be issuable in denominations of $1,000 and any integral multiple thereof.

SECTION 303.  Execution, Authentication, Delivery and Dating.

         The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its Vice Chairman of the Board, its President or one of
its Vice Presidents, under its corporate seal reproduced thereon. The signature
of any of these officers on the Securities may be manual or facsimile.

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

                                       22
<PAGE>   30

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. If the
form or terms of the Securities of the series have been established by or
pursuant to one or more Board Resolutions as permitted by Sections 201 and 301,
in authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 601) shall be fully protected in
relying upon, an Opinion of Counsel stating,

              (1) if the form of such Securities has been established by or
     pursuant to Board Resolution as permitted by Section 201, that such form
     has been established in conformity with the provisions of this Indenture;

              (2) if the terms of such Securities have been established by or
     pursuant to Board Resolution as permitted by Section 301, that such terms
     have been established in conformity with the provisions of this Indenture;
     and

              (3) that such Securities, when authenticated and delivered by the
     Trustee and issued by the Company in the manner and subject to any
     limitations, exceptions and conditions specified in such Opinion of
     Counsel, will constitute valid and legally binding obligations of the
     Company, enforceable in accordance with their terms, subject to bankruptcy,
     insolvency, fraudulent transfer, reorganization, moratorium and similar
     laws of general applicability relating to or affecting creditors' rights
     and to general equity principles.

If such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities
pursuant to this Indenture will affect the Trustee's own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner
which is not reasonably acceptable to the Trustee.

         Notwithstanding the provisions of Section 301 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officer's Certificate otherwise
required pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.

         Each Security shall be dated the date of its authentication.

         No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 309, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

                                       23
<PAGE>   31

SECTION 304.  Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

         If temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of definitive Securities of such series, the
temporary Securities of such series shall be exchangeable for definitive
Securities of such series upon surrender of the temporary Securities of such
series at the office or agency of the Company in a Place of Payment for that
series, without charge to the Holder. Upon surrender for cancellation of any one
or more temporary Securities of any series, the Company shall execute and the
Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of such series and tenor.

SECTION 305.  Registration, Registration of Transfer and Exchange.

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

         Upon surrender for registration of transfer of any Security of a series
at the office or agency of the Company in a Place of Payment for that series,
the Company shall execute and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Securities of
the same series, of any authorized denominations and of like tenor and aggregate
principal amount.

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

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

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

                                       24
<PAGE>   32

         No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 304, 906 or 1107 not involving any transfer.

         If the Securities of any series (or of any series and specified tenor)
are to be redeemed in part, the Company shall not be required (A) to issue,
register the transfer of or exchange any Securities of that series (or of that
series and specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 1103 and
ending at the close of business on the day of such mailing, or (B) to register
the transfer of or exchange any Security so selected for redemption in whole or
in part, except the unredeemed portion of any Security being redeemed in part.

         The provisions of Clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:

              (1) Each Global Security authenticated under this Indenture shall
     be registered in the name of the Depositary designated for such Global
     Security or a nominee thereof and delivered to such Depositary or a nominee
     thereof or custodian therefor, and each such Global Security shall
     constitute a single Security for all purposes of this Indenture.

              (2) Notwithstanding any other provision in this Indenture, no
     Global Security may be exchanged in whole or in part for Securities
     registered, and no transfer of a Global Security in whole or in part may be
     registered, in the name of any Person other than the Depositary for such
     Global Security or a nominee thereof, or a successor Depositary or a
     nominee thereof, unless (A) such Depositary (i) has notified the Company
     that it is unwilling or unable to continue as Depositary for such Global
     Security and no successor Depositary has been appointed within 90 days
     thereof or (ii) has ceased to be a clearing agency registered under the
     Exchange Act and no successor Depositary has been appointed within 90 days
     thereof, (B) there shall have occurred and be continuing an Event of
     Default with respect to such Global Security and the Security Registrar
     shall have received a written request from such Depositary to issue
     certificated Securities or (C) there shall exist such circumstances, if
     any, in addition to or in lieu of the foregoing as have been specified for
     this purpose as contemplated by Section 301.

              (3) Subject to Clause (2) above, any exchange of a Global Security
     for other Securities may be made in whole or in part, and all Securities
     issued in exchange for a Global Security or any portion thereof shall be
     registered in such names as the Depositary for such Global Security shall
     direct.

              (4) Every Security authenticated and delivered upon registration
     of transfer of, or in exchange for or in lieu of, a Global Security or any
     portion thereof, whether pursuant to this Section, Section 304, 306, 906 or
     1107 or otherwise, shall be authenticated and delivered in the form of, and
     shall be, a Global Security, unless such Security is registered in the name
     of a Person other than the Depositary for such Global Security or a nominee
     thereof.

SECTION 306.  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.

                                       25
<PAGE>   33

         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 the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding. If, after the delivery of such replacement
Security, a bona fide purchaser of the original Security in lieu of which such
replacement Security was issued presents for payment or registration such
original Security, the Trustee shall be entitled to recover such replacement
Security from the person to whom it was delivered or any person taking
therefrom, except a bona fide purchaser, and shall be entitled to recover upon
the security or indemnity provided therefor to the extent of any loss, damage,
cost or expense incurred by the Company, the Trustee or any Authenticating Agent
in connection therewith.

         In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable or is to be converted, the Company
in its discretion may, instead of issuing a new Security, pay or authorize the
conversion of such Security (without surrender thereof save in the case of a
mutilated 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,
payment or conversion of mutilated, destroyed, lost or stolen Securities.

SECTION 307.  Payment of Interest; Interest Rights Preserved.

         Except as otherwise provided as contemplated by Section 301 with
respect to any series of Securities, interest on any Security which is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

                                       26
<PAGE>   34

         Any interest on any Security of any series which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
on the relevant Regular Record Date by virtue of having been such Holder, and
such Defaulted Interest may be paid by the Company, at its election in each
case, as provided in Clause (1) or (2) below:

              (1) The Company may elect to make payment of any Defaulted
     Interest to the Persons in whose names the Securities of such series (or
     their respective Predecessor Securities) are registered at the close of
     business on a Special Record Date for the payment of such Defaulted
     Interest, which shall be fixed in the following manner. The Company shall
     notify the Trustee in writing of the amount of Defaulted Interest proposed
     to be paid on each Security of such series and the date of the proposed
     payment, and at the same time the Company shall deposit with the Trustee an
     amount of money equal to the aggregate amount proposed to be paid in
     respect of such Defaulted Interest or shall make arrangements satisfactory
     to the Trustee for such deposit prior to the date of the proposed payment,
     such money when deposited to be held in trust for the benefit of the
     Persons entitled to such Defaulted Interest as in this Clause provided.
     Thereupon the Trustee shall fix a Special Record Date for the payment of
     such Defaulted Interest which shall be not more than 15 days and not less
     than 10 days prior to the date of the proposed payment and not less than 10
     days after the receipt by the Trustee of the notice of the proposed
     payment. The Trustee shall promptly notify the Company of such Special
     Record Date and, in the name and at the expense of the Company, shall cause
     notice of the proposed payment of such Defaulted Interest and the Special
     Record Date therefor to be given to each Holder of Securities of such
     series in the manner set forth in Section 106, not less than 10 days prior
     to such Special Record Date. Notice of the proposed payment of such
     Defaulted Interest and the Special Record Date therefor having been so
     mailed, such Defaulted Interest shall be paid to the Persons in whose names
     the Securities of such series (or their respective Predecessor Securities)
     are registered at the close of business on such Special Record Date and
     shall no longer be payable pursuant to the following Clause (2).

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

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

SECTION 308.  Persons Deemed Owners.

         Prior to due presentment of a Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered as the owner of such
Security for the purpose of receiving payment of principal of and any premium
and (subject to Section 307) any interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

                                       27
<PAGE>   35

SECTION 309.  Cancellation.

         All Securities surrendered for payment, redemption, purchase,
conversion, registration of transfer or exchange or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly cancelled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly cancelled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. All cancelled Securities held by the Trustee shall be disposed of as
directed by a Company Order and otherwise shall be treated in accordance with
the Trustee's document retention policies.

SECTION 310.  Computation of Interest.

         Except as otherwise specified as contemplated by Section 301 for
Securities of any series, interest on the Securities of each series shall be
computed on the basis of a 360-day year of twelve 30-day months.

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

SECTION 401.  Satisfaction and Discharge of Indenture.

         This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

              (1) either

                  (A) all Securities theretofore authenticated and delivered
         (other than (i) Securities which have been destroyed, lost or stolen
         and which have been replaced, converted or paid as provided in Section
         306 and (ii) Securities for whose payment money has theretofore been
         deposited in trust or segregated and held in trust by the Company and
         thereafter repaid to the Company or discharged from such trust, as
         provided in Section 1003) have been delivered to the Trustee for
         cancellation; or

                  (B) all such Securities not theretofore delivered to the
         Trustee for cancellation

                    (i) have become due and payable, or

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

                                       28
<PAGE>   36

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

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

              (2) the Company has paid or caused to be paid all other sums
     payable hereunder by the Company; and

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

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.

SECTION 402.  Application of Trust Money.

         Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.

                                  ARTICLE FIVE

                                    REMEDIES

SECTION 501.  Events of Default.

         "Event of Default", wherever used herein with respect to Securities of
any series, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be occasioned by the provisions of Article
Twelve or be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

              (1) default in the payment of the principal of or any premium on
     any Security of that series at its Maturity, whether or not prohibited by
     the provisions of Article Twelve; or

                                       29
<PAGE>   37

              (2) default in the payment of any interest upon any Security of
     that series when it becomes due and payable, and continuance of such
     default for a period of 30 days, whether or not prohibited by the
     provisions of Article Twelve; or

              (3) default in the deposit of any sinking fund payment, when and
     as due by the terms of a Security of that series, whether or not prohibited
     by the provisions of Article Twelve; or

              (4) default in the performance, or breach, of any covenant or
     warranty of the Company in this Indenture (other than a covenant or
     warranty a default in whose performance or whose breach is elsewhere in
     this Section specifically dealt with or which has expressly been included
     in this Indenture solely for the benefit of series of Securities other than
     that series), and continuance of such default or breach for a period of 60
     days after there has been given, by registered or certified mail, to the
     Company by the Trustee or to the Company and the Trustee by the Holders of
     at least 25% in principal amount of the Outstanding Securities of that
     series a written notice specifying such default or breach and requiring it
     to be remedied and stating that such notice is a "Notice of Default"
     hereunder; or

              (5) default in the performance, or breach, of the provisions of
     Article Eight;

              (6) [intentionally omitted];

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

              (8) the commencement by the Company, any Significant Subsidiary or
     any group of Subsidiaries that together would constitute a Significant
     Subsidiary of a voluntary case or proceeding under any applicable Federal
     or State bankruptcy, insolvency, reorganization or other similar law or of
     any other case or proceeding to be adjudicated a bankrupt or insolvent, or
     the consent by it or them to the entry of a decree or order for relief in
     respect of the Company, any Significant Subsidiary or any group of
     Subsidiaries that together would constitute a Significant Subsidiary in an
     involuntary case or proceeding under any applicable Federal or State
     bankruptcy, insolvency, reorganization or other similar law or to the
     commencement of any bankruptcy or insolvency case or proceeding against it
     or them, or the filing by it or them of a petition or answer or consent
     seeking reorganization or relief under any applicable Federal or State law,
     or the consent by it or them to the filing of such petition or to the
     appointment of or taking possession by a custodian, receiver, liquidator,
     assignee, trustee, sequestrator or other similar official of the Company,
     any Significant Subsidiary or any group of Subsidiaries that together would
     constitute a Significant Subsidiary or of any substantial part of its

                                       30
<PAGE>   38

     or their property, or the making by it or them of an assignment for the
     benefit of creditors, or the admission by it or them in writing of its or
     their inability to pay its or their debts generally as they become due, or
     the taking of corporate action by the Company, any Significant Subsidiary
     or any group of Subsidiaries that together would constitute a Significant
     Subsidiary in furtherance of any such action; or

              (9) any other Event of Default provided with respect to Securities
     of that series.

SECTION 502.  Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default (other than an Event of Default specified in
Section 501(7) or 501(8)) with respect to Securities of any series at the time
Outstanding shall occur and be continuing, then in every such case the Trustee
or the Holders of not less than 25% in principal amount of the Outstanding
Securities of that series may declare the principal amount of all the Securities
of that series (or, if any Securities of that series are Original Issue Discount
Securities, or if the principal amount thereof is not then determinable, such
portion of the principal amount of such Securities, or such other amount in lieu
of such principal amount, as may be specified by the terms thereof) to be due
and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal
amount (or specified amount) shall become immediately due and payable. If an
Event of Default specified in Section 501(7) or 501 (8) with respect to
Securities of any series at the time Outstanding shall occur, the principal
amount of all the Securities of that series (or, if any Securities of that
series are Original Issue Discount Securities, or if the principal amount
thereof is not then determinable, such portion of the principal amount of such
Securities, or such other amount in lieu of such principal amount, as may be
specified by the terms thereof) shall automatically, and without any declaration
or other action on the part of the Trustee or any Holder, become immediately due
and payable.

         At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the
Outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if

              (1) the Company has paid or deposited with the Trustee a sum
     sufficient to pay

                  (A) all overdue interest on all Securities of that series,

                  (B) the principal of (and premium, if any, on) any Securities
         of that series which have become due otherwise than by such declaration
         of acceleration and any interest thereon at the rate or rates
         prescribed therefor in such Securities,

                  (C) to the extent that payment of such interest is lawful,
         interest upon overdue interest at the rate or rates prescribed therefor
         in such Securities, and

                  (D) all sums paid or advanced by the Trustee hereunder and the
         reasonable compensation, expenses, disbursements and advances of the
         Trustee, its agents and counsel;

     and

                                       31
<PAGE>   39

              (2) all Events of Default with respect to Securities of that
     series, other than the non-payment of the principal (or other specified
     amount) of Securities of that series which has become due solely by such
     declaration of acceleration, have been cured or waived as provided in
     Section 513.

No such rescission shall affect any subsequent default or impair any right
consequent thereon.

SECTION 503.  Collection of Indebtedness and Suits for Enforcement by Trustee.

         The Company covenants that if

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

              (2) default is made in the payment of the principal of (or
     premium, if any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and any premium and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

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

SECTION 504.  Trustee May File Proofs of Claim.

         In case of any judicial proceeding relative to the Company, or any
other obligor upon the Securities, or the property or creditors of the Company,
or any other obligor upon the Securities, the Trustee shall be entitled and
empowered, by intervention in such proceeding or otherwise, to take any and all
actions authorized under the Trust Indenture Act in order to have claims of the
Holders and the Trustee allowed in any such proceeding. In particular, the
Trustee shall be authorized 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 compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

         No provision of this Indenture 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

                                       32
<PAGE>   40

in respect of the claim of any Holder in any such proceeding; provided, however,
that the Trustee may, on behalf of the Holders, vote for the election of a
trustee in bankruptcy or similar official and be a member of a creditors' or
other similar committee.

SECTION 505.  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 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 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 506.  Application of Money Collected.

         Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal or any premium
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
     607; and

              SECOND: Subject to Article Twelve, to the payment of the amounts
     then due and unpaid for principal of and any premium and interest on the
     Securities in respect of which or for the benefit of which such money has
     been collected, ratably, without preference or priority of any kind,
     according to the amounts due and payable on such Securities for principal
     and any premium and interest, respectively.

SECTION 507.  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

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

              (2) 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;

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

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

                                       33
<PAGE>   41

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

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

SECTION 508.  Unconditional Right of Holders to Receive Principal, Premium and
              Interest.

         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 any premium and (subject to Section 307)
interest on such Security on the respective Stated Maturities expressed in such
Security (or, in the case of redemption or offer by the Company to purchase the
Securities pursuant to the terms of this Indenture, on the Redemption Date or
purchase date, as applicable), or, if applicable, to convert such Security as
provided in Article Seventeen, and to institute suit for the enforcement of any
such payment or for the enforcement of any such right to convert, and such
rights shall not be impaired without the consent of such Holder.

SECTION 509.  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 510.  Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 306, 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 511.  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

                                       34
<PAGE>   42

by law to the Trustee or to the Holders may be exercised from time to time, and
as often as may be deemed expedient, by the Trustee or by the Holders, as the
case may be.

SECTION 512.  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

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

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

SECTION 513.  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 default

              (1) in the payment of the principal of or any premium or interest
     on any Security of such series (including any Security which is required to
     have been purchased by the Company pursuant to an offer to purchase by the
     Company made pursuant to the terms of this Indenture), or

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

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

SECTION 514.  Undertaking for Costs.

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

SECTION 515.  Waiver of Usury, Stay or Extension Laws.

         The Company covenants (to the extent that it may lawfully do so) that
it will not at any time insist upon, or plead, or in any manner whatsoever claim
or take the benefit or advantage of, any usury, stay or extension law wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or

                                       35
<PAGE>   43

the performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE SIX

                                   THE TRUSTEE

SECTION 601.  Certain Duties and Responsibilities.

         The duties and responsibilities of the Trustee shall be as provided by
the Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

SECTION 602.  Notice of Defaults.

         If a default occurs hereunder with respect to Securities of any series,
the Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default of the character specified in Section
501(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the
purpose of this Section, the term "default" means any event which is, or after
notice or lapse of time or both would become, an Event of Default with respect
to Securities of such series.

SECTION 603.  Certain Rights of Trustee.

         Subject to the provisions of Section 601:

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

              (2) any request or direction of the Company mentioned herein shall
     be sufficiently evidenced by a Company Request or Company Order, and any
     resolution of the Board of Directors shall be sufficiently evidenced by a
     Board Resolution;

              (3) whenever in the administration of this Indenture the Trustee
     shall deem it desirable that a matter be proved or established prior to
     taking, suffering or omitting any action hereunder, the

                                       36
<PAGE>   44

     Trustee (unless other evidence be herein specifically prescribed) may, in
     the absence of bad faith on its part, rely upon an Officer's Certificate;

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

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

              (6) the Trustee shall not be bound to make any investigation into
     the facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, other evidence of indebtedness or other paper or
     document, but the Trustee, in its discretion, may make such further inquiry
     or investigation into such facts or matters as it may see fit, and, if the
     Trustee shall determine to make such further inquiry or investigation, it
     shall be entitled to examine the books, records and premises of the
     Company, personally or by agent or attorney;

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

              (8) the Trustee is not required to take notice or deemed to have
     notice of any default or Event of Default hereunder, except Events of
     Default under Section 501, subsections (1), (2) and (3), unless a
     Responsible Officer of the Trustee has actual knowledge thereof or has
     received notice in writing of such default or Event of Default from the
     Company or the Holders of at least 25% in aggregate principal amount of the
     Outstanding Securities, and in the absence of any such notice, the Trustee
     may conclusively assume that no such default or Event of Default exists;

              (9) the Trustee is not required to give any bond or surety with
     respect to the performance of its duties or the exercise of its powers
     under this Indenture;

              (10) in the event the Trustee receives inconsistent or conflicting
     requests and indemnity from two or more groups of Holders of Securities,
     each representing less than a majority in aggregate principal amount of the
     Securities Outstanding, pursuant to the provisions of this Indenture, the
     Trustee, in its sole discretion, may determine what action, if any, shall
     be taken;

              (11) the Trustee's immunities and protections from liability and
     its right to indemnification in connection with the performance of its
     duties under this Indenture shall extend to the Trustee's officers,
     directors, agents, attorneys and employees. Such immunities and protections
     and right to indemnification, together with the Trustee's right to
     compensation, shall survive the Trustee's resignation or removal, the
     defeasance or discharge of this Indenture and final payment of the
     Securities;

              (12) the permissive right of the Trustee to take the actions
     permitted by this Indenture shall not be construed as an obligation or duty
     to do so; and

                                       37
<PAGE>   45

              (13) except for information provided by the Trustee concerning the
     Trustee, the Trustee shall have no responsibility for any information in
     any offering memorandum or other disclosure material distributed with
     respect to the Securities, and the Trustee shall have no responsibility for
     compliance with any state or federal securities laws in connection with the
     Securities.

SECTION 604.  Not Responsible for Recitals or Issuance of Securities.

         The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Securities. Neither the
Trustee nor any Authenticating Agent shall be accountable for the use or
application by the Company of Securities or the proceeds thereof.

SECTION 605.  May Hold Securities.

         The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

SECTION 606.  Money Held in Trust.

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

SECTION 607.  Compensation and Reimbursement.

         The Company agrees

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

              (2) except as otherwise expressly provided herein, to reimburse
     the Trustee upon its request for all expenses, disbursements and advances
     incurred or made by the Trustee in accordance with any provision of this
     Indenture (including the compensation and the expenses and disbursements of
     its agents and counsel), except any such expense, disbursement or advance
     as may be attributable to its gross negligence or bad faith; and

              (3) to indemnify the Trustee for, and to hold it harmless against,
     any loss, liability or expense incurred without negligence or willful
     misconduct on its part, arising out of or in connection with the acceptance
     or administration of the trust or trusts hereunder, including the costs and
     expenses of defending itself against any claim or liability in connection
     with the exercise or performance of any of

                                       38
<PAGE>   46

     its powers or duties hereunder. When the Trustee incurs expenses or renders
     services after the occurrence of an Event of Default specified in paragraph
     (7) or (8) of Section 501 of this Indenture, such expenses and the
     compensation for such services are intended to constitute expenses of
     administration under any Insolvency or Liquidation Proceeding. For the
     purposes of this paragraph, "Insolvency or Liquidation Proceeding" means,
     with respect to any Person, (a) an insolvency or bankruptcy case or
     proceeding, or any receivership, liquidation, reorganization or similar
     case or proceeding in connection therewith, relative to such Person or its
     creditors, as such, or its assets, or (b) any liquidation, dissolution or
     other winding-up proceeding of such Person, whether voluntary or
     involuntary and whether or not involving insolvency or bankruptcy or (c)
     any assignment for the benefit of creditors or any other marshaling of
     assets and liabilities of such Person.

SECTION 608.  Conflicting Interests.

         If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest by virtue of being a trustee under this Indenture with respect to
Securities of more than one series.

SECTION 609.  Corporate Trustee Required; Eligibility.

         There shall at all times be one (and only one) Trustee hereunder with
respect to the Securities of each series, which may be Trustee hereunder for
Securities of one or more other series. Each Trustee shall be a Person that is
eligible pursuant to the Trust Indenture Act to act as such, and has a combined
capital and surplus of at least $50,000,000. If any such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time
the Trustee with respect to the Securities of any series shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

SECTION 610.  Resignation and Removal; Appointment of Successor.

         No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 611.

         The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

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

                                       39
<PAGE>   47

         If at any time:

              (1) the Trustee shall fail to comply with Section 608 after
     written request therefor by the Company or by any Holder who has been a
     bona fide Holder of a Security for at least six months, or

              (2) the Trustee shall cease to be eligible under Section 609 and
     shall fail to resign after written request therefor by the Company or by
     any such Holder, or

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

then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section 514, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

         If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with respect
to the Securities of one or more series, the Company, by a Board Resolution,
shall promptly appoint a successor Trustee or Trustees with respect to the
Securities of that or those series (it being understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to
the Securities of any particular series) and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation, removal
or incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal amount of the Outstanding Securities of such series
delivered to the Company and the retiring Trustee, the successor Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable requirements of Section 611, become the successor Trustee
with respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the Securities of any series shall have been so appointed by the Company or
the Holders and accepted appointment in the manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

         The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 106. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

SECTION 611.  Acceptance of Appointment by Successor.

         In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company, and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of

                                       40
<PAGE>   48

the retiring Trustee shall become effective and such successor Trustee, without
any further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on the request of the
Company or the successor Trustee, such retiring Trustee shall, upon payment of
its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder.

         In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates.

         Upon request of any such successor Trustee, the Company shall execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor Trustee all such rights, powers and trusts referred to in the
first or second preceding paragraph, as the case may be.

         No successor Trustee shall accept its appointment unless at the time of
such acceptance such successor Trustee shall be qualified and eligible under
this Article.

SECTION 612.  Merger, Conversion, Consolidation or Succession to Business.

         Any Person into which the Trustee may be merged or converted or with
which it may be consolidated, or any Person resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such Person
shall be otherwise qualified and eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. As soon as practicable, the successor Trustee shall mail a
notice of its succession to the Company and the Holders of the Securities then
Outstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the

                                       41
<PAGE>   49

Securities so authenticated with the same effect as if such successor Trustee
had itself authenticated such Securities.

SECTION 613.  Preferential Collection of Claims Against Company .

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

SECTION 614.  Appointment of Authenticating Agent.

         The Trustee may appoint an Authenticating Agent or Agents with respect
to one or more series of Securities which shall be authorized to act on behalf
of the Trustee to authenticate Securities of such series issued upon original
issue and upon exchange, registration of transfer, conversion or partial
redemption thereof or pursuant to Section 306, and Securities so authenticated
shall be entitled to the benefits of this Indenture and shall be valid and
obligatory for all purposes as if authenticated by the Trustee hereunder.
Wherever reference is made in this Indenture to the authentication and delivery
of Securities by the Trustee or the Trustee's certificate of authentication,
such reference shall be deemed to include authentication and delivery on behalf
of the Trustee by an Authenticating Agent and a certificate of authentication
executed on behalf of the Trustee by an Authenticating Agent. Each
Authenticating Agent shall be acceptable to the Company and shall at all times
be a Person organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of
not less than $50,000,000 and subject to supervision or examination by Federal
or State authority. If such Authenticating Agent publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such Authenticating Agent shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 106 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor

                                       42
<PAGE>   50

hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

         The Trustee agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section, and the
Trustee shall be entitled to be reimbursed for such payments, subject to the
provisions of Section 607.

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

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

                                               --------------------------------,
                                                                     As Trustee

Date of authentication:                           By
                       ---------------------         ---------------------------
                                                      As Authenticating Agent

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

                                  ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701.  Company to Furnish Trustee Names and Addresses of Holders.

         The Company will furnish or cause to be furnished to the Trustee

              (1) semi-annually, not later than March 1 and September 1 in each
     year, a list, in such form as the Trustee may reasonably require, of the
     names and addresses of the Holders of Securities of each series as of the
     preceding February 15 or August 15, as the case may be, and

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

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

SECTION 702.  Preservation of Information; Communications to Holders.

         The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 701 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The

                                       43

<PAGE>   51
Trustee may destroy any list furnished to it as provided in Section 701 upon
receipt of a new list so furnished.

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

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

SECTION 703.  Reports by Trustee.

         The Trustee shall transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto.

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

SECTION 704.  Reports by Company.

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

                                  ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

         The Company shall not, in a single transaction or a series of related
transactions, consolidate with or merge into any other Person or permit any
other Person to consolidate with or merge into the Company or transfer, convey,
sell, lease or otherwise dispose of all or substantially all of its assets,
unless:

              (1) in a transaction in which the Company does not survive or in
     which the Company transfers, conveys, sells, leases or otherwise disposes
     of all or substantially all of its assets, the successor entity (for
     purposes of this Article Eight, a "Successor Company") shall be a
     corporation, partnership, trust or other entity organized and validly
     existing under the laws of the United States of America, any State thereof
     or the District of Columbia, and shall expressly assume, by an indenture

                                       44
<PAGE>   52

     supplemental hereto, executed and delivered to the Trustee, in form
     satisfactory to the Trustee, the due and punctual payment of the principal
     of and any premium and interest on all the Securities and the performance
     or observance of every covenant of this Indenture on the part of the
     Company to be performed or observed;

              (2) immediately after giving effect to such transaction and
     treating any indebtedness which becomes an obligation of the Company or any
     Subsidiary as a result of such transaction as having been incurred by the
     Company or such Subsidiary at the time of such transaction, no Event of
     Default, and no event which, after notice or lapse of time or both, would
     become an Event of Default, shall have happened and be continuing;

              (3) any other conditions provided pursuant to Section 301 with
     respect to the  Securities of a series are satisfied; and

              (4) the Company has delivered to the Trustee an Officer's
     Certificate and an Opinion of Counsel, each stating that such
     consolidation, merger or disposition and, if a supplemental indenture is
     required in connection with such transaction, such supplemental indenture
     comply with this Article and that all conditions precedent herein provided
     for relating to such transaction have been complied with.

SECTION 802.  [intentionally omitted]

SECTION 803.  Successor Substituted.

         Upon any consolidation of the Company with, or merger of the Company
into, any other Person or any transfer, conveyance, sale, lease or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 801, the Successor Company shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

SECTION 901.  Supplemental Indentures Without Consent of Holders.

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

              (1) to evidence the succession of another Person to the Company
     and the assumption by any such successor of the covenants of the Company
     herein and in the Securities; or

                                       45
<PAGE>   53

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

              (3) to add any additional Events of Default for the benefit of the
     Holders of all or any series of Securities (and if such additional Events
     of Default are to be for the benefit of less than all series of Securities,
     stating that such additional Events of Default are expressly being included
     solely for the benefit of such series); or

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

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

              (6)  to secure the Securities; or

              (7) to establish the form or terms of Securities of any series as
     permitted by Sections 201 and 301; or

              (8) to evidence and provide for the acceptance of appointment
     hereunder by a successor Trustee with respect to the Securities of one or
     more series and to add to or change any of the provisions of this Indenture
     as shall be necessary to provide for or facilitate the administration of
     the trusts hereunder by more than one Trustee, pursuant to the requirements
     of Section 611; or

              (9) to cure any ambiguity, to correct or supplement any provision
     herein which may be defective or inconsistent with any other provision
     herein, or to make any other provisions with respect to matters or
     questions arising under this Indenture, provided that such action pursuant
     to this Clause (9) shall not adversely affect the interests of the Holders
     of Securities of any series in any material respect; or

              (10) [intentionally omitted]; or

              (11) to provide for adjustment of conversion rights pursuant to
     Section 1705 hereof.

SECTION 902.  Supplemental Indentures With Consent of Holders.

         With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities of each series affected by such
supplemental indenture, by Act of said Holders delivered to the Company, and the
Trustee, the Company, when authorized by a Board Resolution, and the Trustee may
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any

                                       46
<PAGE>   54

manner the rights of the Holders of Securities of such series under this
Indenture; provided, however, that no such supplemental indenture shall, without
the consent of the Holder of each Outstanding Security affected thereby,

              (1) change the Stated Maturity of the principal of, or any
     installment of principal of or interest on, any Security, or reduce the
     principal amount thereof or the rate of interest thereon or any premium
     payable upon the redemption thereof, or reduce the amount of the principal
     of an Original Issue Discount Security or any other Security which would be
     due and payable upon a declaration of acceleration of the Maturity thereof
     pursuant to Section 502, or change any Place of Payment where, or the coin
     or currency in which, any Security or any premium or interest thereon is
     payable, or impair the right to institute suit for the enforcement of (a)
     any such payment on or after the Stated Maturity thereof (or, in the case
     of redemption, on or after the Redemption Date or in the case of an offer
     to purchase Securities which has been made pursuant to a covenant contained
     in this Indenture, on or after the applicable purchase date) or (b) any
     conversion right with respect to any Security, or modify the provisions of
     this Indenture with respect to (x) the subordination of the Securities or
     (y) the conversion of the Securities, in either case in a manner adverse to
     the Holders; or

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

              (3) modify any of the provisions of this Section, Section 502,
     Section 513 or Section 1009, except to increase any such percentage or to
     provide that certain other provisions of this Indenture cannot be modified
     or waived without the consent of the Holder of each Outstanding Security
     affected thereby; provided, however, that this clause shall not be deemed
     to require the consent of any Holder with respect to changes in the
     references to "the Trustee" and concomitant changes in this Section and
     Section 1009, or the deletion of this proviso, in accordance with the
     requirements of Sections 611 and 901(8); or

              (4) following the making of an offer to purchase Securities which
     has been made pursuant to a covenant contained in this Indenture, modify
     the provisions of this Indenture with respect to such offer to purchase in
     a manner adverse to such Holder.

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

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

SECTION 903.  Execution of Supplemental Indentures.

         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 601) shall be fully protected in relying upon, an
Officer's

                                       47
<PAGE>   55

Certificate and Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee
may, but shall not be obligated to, enter into any such supplemental indenture
which affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise.

SECTION 904.  Effect of Supplemental Indentures.

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

SECTION 905.  Conformity with Trust Indenture Act.

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

SECTION 906.  Reference in Securities to Supplemental Indentures.

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

                                   ARTICLE TEN

                                    COVENANTS

SECTION 1001. Payment of Principal, Premium and Interest.

         The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of and any premium
and interest on the Securities of that series in accordance with the terms of
the Securities and this Indenture. Principal, premium, if any, and interest
shall be considered paid on the date due if the Paying Agent, if other than the
Company, holds as of 11:00 a.m. New York time on the due date money deposited by
the Company in immediately available funds and designated for and sufficient to
pay all principal, premium, if any, and interest then due, unless such payment
is prohibited by the provisions of Article Twelve.

                                       48
<PAGE>   56

SECTION 1002. Maintenance of Office or Agency.

         The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment or, if applicable, for conversion, where Securities
of that series may be surrendered for registration of transfer or exchange and
where notices and demands to or upon the Company in respect of the Securities of
that series and this Indenture may be served. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, surrenders, notices and demands may be made
or served at the Corporate Trust Office 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 other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.

SECTION 1003. Money for Securities Payments to Be Held in Trust.

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

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

         The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Company, or any other obligor upon the
Securities of that series in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

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

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<PAGE>   57

         Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New
York, New York, 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
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

SECTION 1004. Statement by Officers as to Default.

         (a) The Company will deliver to the Trustee, within 90 days after the
end of each fiscal year of the Company ending after the date hereof, an
Officer's Certificate, stating whether or not to the best knowledge of the
signers thereof the Company, is in default in the performance and observance of
any of the terms, provisions and conditions of this Indenture (without regard to
any period of grace or requirement of notice provided hereunder) and, if the
Company shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

         (b) The Company shall deliver to the Trustee, as soon as possible and
in any event within five days after the Company becomes aware of the occurrence
of an Event of Default or an event which, with notice or the lapse of time or
both, would constitute an Event of Default, an Officer's Certificate setting
forth the details of such Event of Default or default, and the action which the
Company proposes to take with respect thereto.

SECTION 1005. Existence.

         Subject to Article Eight, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect the existence,
rights (charter and statutory) and franchises of the Company; provided, however,
that the Company shall not be required to preserve any such right or franchise
if the Board of Directors shall determine that the preservation thereof is no
longer desirable in the conduct of the business of the Company and that the loss
thereof is not disadvantageous in any material respect to the Holders.

SECTION 1006. Maintenance of Properties.

         The Company will cause all properties used or useful in the conduct of
its business or the business of any Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the
operation or maintenance of any of such properties if such discontinuance is, in
the

                                       50
<PAGE>   58

judgment of the Company, desirable in the conduct of its business or the
business of any Subsidiary and not disadvantageous in any material respect to
the Holders.

SECTION 1007. Payment of Taxes and Other Claims.

         The Company will pay or discharge or cause to be paid or discharged,
before the same shall become delinquent, (1) all taxes, assessments and
governmental charges levied or imposed upon the Company or any Subsidiary or
upon the income, profits or property of the Company or any Subsidiary, and (2)
all lawful claims for labor, materials and supplies which, if unpaid, might by
law become a lien upon the property of the Company or any Subsidiary; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.

SECTION 1008. Maintenance of Insurance.

         The Company shall, and shall cause its Subsidiaries to, keep at all
times all of their properties which are of an insurable nature insured against
loss or damage with insurers believed by the Company to be responsible to the
extent that property of similar character is usually so insured by corporations
similarly situated and owning like properties in accordance with good business
practice.

SECTION 1009. Waiver of Certain Covenants.

         Except as otherwise specified as contemplated by Section 301 or Section
902 for Securities of such series, the Company may, with respect to the
Securities of any series, omit in any particular instance to comply with any
term, provision or condition set forth in any covenant provided pursuant to
Section 301(22), 901(2) or 901(7) for the benefit of the Holders of such series
if before the time for such compliance the Holders of at least a majority in
principal amount of the Outstanding Securities of such series shall, by Act of
such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

SECTION 1101. Applicability of Article.

         Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for such Securities) in
accordance with this Article.

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<PAGE>   59

SECTION 1102. Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities shall be evidenced
by a Board Resolution or in another manner specified as contemplated by Section
301 for such Securities. In case of any redemption at the election of the
Company of less than all the Securities of any series (including any such
redemption affecting only a single Security), the Company shall, at least 45
days prior to the Redemption Date fixed by the Company (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, of the principal amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officer's Certificate
evidencing compliance with such restriction.

SECTION 1103. Selection by Trustee of Securities to Be Redeemed.

         If less than all the Securities of any series are to be redeemed
(unless all the Securities of such series and of a specified tenor are to be
redeemed or unless such redemption affects only a single Security), the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee, from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security of such series,
provided that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee,
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.

         The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption as aforesaid and, in case of any Securities
selected for partial redemption as aforesaid, the principal amount thereof to be
redeemed.

         The provisions of the two preceding paragraphs shall not apply with
respect to any redemption affecting only a single Security, whether such
Security is to be redeemed in whole or in part. In the case of any such
redemption in part, the unredeemed portion of the principal amount of the
Security shall be in an authorized denomination (which shall not be less than
the minimum authorized denomination) for such Security.

         For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed. If any Security selected for partial redemption is surrendered for
conversion after such selection, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Upon any
redemption of less than all the Securities of a series, for purposes of
selection for redemption the Company and the Trustee may treat as Outstanding
Securities surrendered for conversion during the period of 15 days next
preceding the mailing of a notice of redemption, and need not treat as
Outstanding any Security authenticated and delivered during such period in
exchange for the unconverted portion of any Security converted in part during
such period.

                                       52
<PAGE>   60

SECTION 1104. Notice of Redemption.

         Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at his address appearing in
the Security Register.

         All notices of redemption shall state:

              (1) the Redemption Date;

              (2) the Redemption Price;

              (3) if less than all the Outstanding Securities of any series
     consisting of more than a single Security are to be redeemed, the
     identification (and, in the case of partial redemption of any such
     Securities, the principal amounts) of the particular Securities to be
     redeemed and, if less than all the Outstanding Securities of any series
     consisting of a single Security are to be redeemed, the principal amount of
     the particular Security to be redeemed;

              (4) that on the Redemption Date the Redemption Price will become
     due and payable upon each such Security to be redeemed and, if applicable,
     that interest thereon will cease to accrue on and after said date (unless
     the Company shall default on such payment);

              (5) the place or places where each such Security is to be
     surrendered for payment of the Redemption Price;

              (6) that the redemption is for a sinking fund, if such is the
     case; and

              (7) if applicable, the Conversion Price then in effect and the
     date on which the right to convert the Securities or portions thereof to be
     redeemed will expire (unless the Company shall default on such payment).

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

SECTION 1105. Deposit of Redemption Price.

         On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount of
money sufficient to pay the Redemption Price of, and (except if the Redemption
Date shall be an Interest Payment Date) accrued interest on, all the Securities
which are to be redeemed on that date. If any Security called for redemption is
converted pursuant hereto, any money deposited with the Trustee or any Paying
Agent or so segregated and held in trust for the redemption of such Security
shall be paid to the Company upon delivery of a Company Request to the Trustee
or such Paying Agent, or, if then held by the Company, shall be discharged from
such trust.

                                       53
<PAGE>   61

SECTION 1106. Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 307.

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

SECTION 1107. Securities Redeemed in Part.

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

                                 ARTICLE TWELVE

                           SUBORDINATION OF SECURITIES

SECTION 1201. Applicability of Article.

         Unless otherwise provided with respect to the Securities of any series
in or pursuant to the Board Resolution or supplemental indenture establishing
such series of Securities pursuant to Section 301, the provisions of this
Article shall be applicable to each series of Securities.

SECTION 1202. Securities Subordinate to Senior Debt.

         The Company covenants and agrees, and each Holder of a Security, by his
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article (subject to the provisions of
Article Four and Article Fifteen), the payment of the principal of (and premium,
if any) and interest on each and all of the Securities of such series are hereby
expressly made subordinate and subject in right of payment to the prior payment
in full of all Senior Debt of the Company.

         No provisions of this Article Twelve shall prevent the occurrence of
any Event of Default.

                                       54
<PAGE>   62

SECTION 1203. Payment Over of Proceeds Upon Dissolution, Etc.

         In the event of (a) any insolvency or bankruptcy case or proceeding, or
any receivership, liquidation, reorganization or other similar case or
proceeding in connection therewith, relative to the Company or to its creditors,
as such, or to its assets, or (b) any liquidation, dissolution or other winding
up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or
any other marshalling of assets and liabilities of the Company, then and in any
such event specified in (a), (b) or (c) above (each such event, if any, herein
sometimes referred to as a "Proceeding") the holders of Senior Debt of the
Company shall be entitled to receive payment in full of all amounts due or to
become due on or in respect of all Senior Debt of the Company, or provision
shall be made for such payment in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Debt of the Company, before the
Holders of the Securities are entitled to receive any payment or distribution of
any kind or character, whether in cash, property or securities (including any
payment or distribution which may be payable or deliverable by reason of the
payment of any other Debt of the Company subordinated to the payment of the
Securities, such payment or distribution being hereinafter referred to as a
"Junior Subordinated Payment"), on account of principal of (or premium, if any)
or interest on the Securities or on account of any purchase or other acquisition
of Securities by the Company or any Subsidiary of the Company (all such
payments, distributions, purchases and acquisitions, other than the payment or
distribution of stock or securities of the Company referred to in the second
succeeding paragraph, herein referred to, individually and collectively, as a
"Securities Payment"), and to that end the holders of Senior Debt of the Company
shall be entitled to receive, for application to the payment thereof, any
Securities Payment which may be payable or deliverable in respect of the
Securities in any such Proceeding.

         In the event that, notwithstanding the foregoing provisions of this
Section, the Trustee or the Holder of any Security shall have received any
Securities Payment before all Senior Debt of the Company is paid in full or
payment thereof provided for in cash or cash equivalents or otherwise in a
manner satisfactory to the holders of Senior Debt of the Company, and if such
fact shall, at or prior to the time of such Securities Payment, have been made
known to the Trustee or, as the case may be, such Holder, then and in such event
such Securities Payment shall be paid over or delivered forthwith to the trustee
in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent or
other Person making payment or distribution of assets of the Company for
application to the payment of all Senior Debt of the Company remaining unpaid,
to the extent necessary to pay all Senior Debt of the Company in full, after
giving effect to any concurrent payment or distribution to or for the holders of
Senior Debt of the Company.

         For purposes of this Article only, the words "any payment or
distribution of any kind or character, whether in cash, property or securities"
shall not be deemed to include a payment or distribution of stock or securities
of the Company provided for by a plan of reorganization or readjustment
authorized by an order or decree of a court of competent jurisdiction in a
reorganization proceeding under any applicable bankruptcy law or of any other
corporation provided for by such plan of reorganization or readjustment which
stock or securities are subordinated in right of payment to all then outstanding
Senior Debt of the Company to substantially the same extent as the Securities
are so subordinated as provided in this Article. The consolidation of the
Company with, or the merger of the Company into, another Person or the
liquidation or dissolution of the Company following the conveyance or transfer
of all or substantially all of its properties and assets as an entirety to
another Person upon the terms and conditions set forth in Article Eight shall
not be deemed a Proceeding for the purposes of this Section if the Person formed
by such consolidation or into which the Company is merged or the Person which
acquires by conveyance or transfer such properties and assets as an entirety, as
the case may be, shall, as a part of such consolidation, merger, conveyance or
transfer, comply with the conditions set forth in Article Eight.

                                       55
<PAGE>   63

SECTION 1204. No Payment When Senior Debt of the Company in Default.

         In the event that any Senior Payment Default (as defined below) shall
have occurred and be continuing, then no Securities Payment shall be made unless
and until such Senior Payment Default shall have been cured or waived or shall
have ceased to exist or all amounts then due and payable in respect of Senior
Debt of the Company shall have been paid in full, or provision shall have been
made for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Debt of the Company; provided, however,
that nothing in this Section shall prevent the satisfaction of any sinking fund
payment in accordance with Article Sixteen by delivering and crediting pursuant
to Section 1602 Securities which have been acquired (upon redemption or
otherwise) prior to such Senior Payment Default.

         "Senior Payment Default" means any default in the payment of principal
of (or premium, if any) or interest on any Senior Debt of the Company when due,
whether at the Stated Maturity of any such payment or by declaration of
acceleration, call for redemption or otherwise.

         In the event that any Senior Nonmonetary Default (as defined below)
shall have occurred and be continuing, then, upon the receipt by the Company and
the Trustee of written notice of such Senior Nonmonetary Default from any
holder, or agent for the holders, of the Designated Senior Debt which is the
subject of such Senior Nonmonetary Default, no Securities Payment shall be made
during the period (the "Payment Blockage Period") commencing on the date of such
receipt of such written notice and ending on the earlier of (i) the date on
which such Senior Nonmonetary Default shall have been cured or waived or shall
have ceased to exist or all Designated Senior Debt that is the subject of such
Senior Nonmonetary Default shall have been discharged; (ii) the 179th day after
the date of such receipt of such written notice; and (iii) the date on which the
Payment Blockage Period shall have been terminated by written notice to the
Company or the Trustee from the agent for the Designated Senior Debt initiating
the Payment Blockage Period; provided, however, that nothing in this Section
shall prevent the satisfaction of any sinking fund payment in accordance with
Article Sixteen by delivering and crediting pursuant to Section 1602 Securities
which have been acquired (upon redemption or otherwise) prior to the date of
such receipt of such written notice. No more than one Payment Blockage Period
may be commenced with respect to the Securities during any 360-day period and
there shall be a period of at least 181 consecutive days in each 360-day period
when no Payment Blockage Period is in effect. For all purposes of this
paragraph, no Senior Payment Default or Senior Nonmonetary Default that existed
or was continuing on the date of commencement of any Payment Blockage Period
shall be, or be made, the basis for the commencement of a subsequent Payment
Blockage Period, whether or not within a period of 360 consecutive days, unless
such Senior Payment Default or Senior Nonmonetary Default shall have been cured
for a period of not less than 90 consecutive days.

         "Senior Nonmonetary Default" means the occurrence or existence and
continuance of any event of default with respect to any Designated Senior Debt,
other than a Senior Payment Default, permitting the holders of such Designated
Senior Debt (or a trustee or agent on behalf of the holders thereof) to declare
such Designated Senior Debt due and payable prior to the date on which it would
otherwise become due and payable.

         In the event that, notwithstanding the foregoing, the Company shall
make any Securities Payment to the Trustee or any Holder prohibited by the
foregoing provisions of this Section, and if such fact shall, at or prior to the
time of such Securities Payment, have been made known to the Trustee or, as the
case

                                       56
<PAGE>   64

may be, such Holder, then and in such event such Securities Payment shall be
paid over and delivered forthwith to the Company.

         The provisions of this Section shall not apply to any Securities
Payment with respect to which Section 1203 would be applicable.

SECTION 1205. Payment Permitted If No Default.

         Nothing contained in this Article or elsewhere in this Indenture or in
any of the Securities shall prevent (a) the Company, at any time except during
the pendency of any Proceeding referred to in Section 1203 or under the
conditions described in Section 1204, from making Securities Payments, or (b)
the application by the Trustee of any money deposited with it hereunder to
Securities Payments or the retention of such Securities Payment by the Holders,
if, at the time of such application by the Trustee, it did not have knowledge
that such Securities Payment would have been prohibited by the provisions of
this Article.

SECTION 1206. Subrogation to Rights of Holders of Senior Debt of the Company.

         Subject to the payment in full of all amounts due or to become due on
or in respect of Senior Debt of the Company, or the provision for such payment
in cash or cash equivalents or otherwise in a manner satisfactory to the holders
of Senior Debt of the Company, the Holders of the Securities shall be subrogated
to the rights of the holders of such Senior Debt of the Company to receive
payments and distributions of cash, property and securities applicable to the
Senior Debt of the Company until the principal of (and premium, if any) and
interest on the Securities shall be paid in full. For purposes of such
subrogation, no payments or distributions to the holders of the Senior Debt of
the Company of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this
Article, and no payments over pursuant to the provisions of this Article to the
holders of Senior Debt of the Company by Holders of the Securities or the
Trustee, shall, as among the Company, its creditors other than holders of Senior
Debt of the Company and the Holders of the Securities, be deemed to be a payment
or distribution by the Company to or on account of the Senior Debt of the
Company.

                                       57
<PAGE>   65

SECTION 1207. Provisions Solely to Define Relative Rights.

         The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders on the one hand and the
holders of Senior Debt of the Company on the other hand. Nothing contained in
this Article or elsewhere in this Indenture or in the Securities is intended to
or shall (a) impair, as among the Company, its creditors other than holders of
Senior Debt of the Company and the Holders of the Securities, the obligation of
the Company, which is absolute and unconditional (and which, subject to the
rights under this Article of the holders of Senior Debt of the Company, is
intended to rank equally with all other general obligations of the Company), to
pay to the Holders of the Securities the principal of (and premium, if any) and
interest on the Securities as and when the same shall become due and payable in
accordance with their terms; or (b) affect the relative rights against the
Company of the Holders of the Securities and creditors of the Company other than
the holders of Senior Debt of the Company; or (c) prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any,
under this Article of the holders of Senior Debt of the Company to receive cash,
property and securities otherwise payable or deliverable to the Trustee or such
Holder.

SECTION 1208. Trustee to Effectuate Subordination.

         Each Holder of a Security by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes.

SECTION 1209. No Waiver of Subordination Provisions.

         No right of any present or future holder of any Senior Debt of the
Company to enforce subordination as herein provided shall at any time in any way
be prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such holder, or
by any noncompliance by the Company with the terms, provisions and covenants of
this Indenture, regardless of any knowledge thereof any such holder may have or
be otherwise charged with.

         Without in any way limiting the generality of the foregoing paragraph,
the holders of Senior Debt of the Company may, at any time and from time to
time, without the consent of or notice to the Trustee or the Holders of the
Securities, without incurring responsibility to the Holders of the Securities
and without impairing or releasing the subordination provided in this Article or
the obligations hereunder of the Holders of the Securities to the holders of
Senior Debt of the Company, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, Senior Debt of the Company, or otherwise amend or supplement in any
manner Senior Debt of the Company or any instrument evidencing the same or any
agreement under which Senior Debt of the Company is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Debt of the Company; (iii) release any Person liable
in any manner for the collection of Senior Debt of the Company; and (iv)
exercise or refrain from exercising any rights against the Company and any other
Person.

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<PAGE>   66

SECTION 1210. Notice to Trustee.

         The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Securities. Notwithstanding the provisions of this
Article or any other provision of this Indenture, the Trustee shall not be
charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless
and until the Trustee shall have received written notice thereof from the
Company or a holder of Senior Debt of the Company or from any trustee therefor;
and, prior to the receipt of any such written notice, the Trustee, subject to
the provisions of Section 601, shall be entitled in all respects to assume that
no such facts exist; provided, however, that if the Trustee shall not have
received the notice provided for in this Section at least three Business Days
prior to the date upon which by the terms hereof any money may become payable
for any purpose (including, without limitation, the payment of the principal of
(and premium, if any) or interest on any Security), then, anything herein
contained to the contrary notwithstanding, the Trustee shall have full power and
authority to receive such money and to apply the same to the purpose for which
such money was received and shall not be affected by any notice to the contrary
which may be received by it within three Business Days prior to such date.

         Subject to the provisions of Section 601, the Trustee shall be entitled
to rely on the delivery to it of a written notice by a Person representing
himself to be a holder of Senior Debt of the Company (or a trustee or other
representative therefor) to establish that such notice has been given by a
holder of Senior Debt of the Company (or a trustee therefor). In the event that
the Trustee determines in good faith that further evidence is required with
respect to the right of any Person as a holder of Senior Debt of the Company to
participate in any payment or distribution pursuant to this Article, the Trustee
may request such Person to furnish evidence to the reasonable satisfaction of
the Trustee as to the amount of Senior Debt of the Company held by such Person,
the extent to which such Person is entitled to participate in such payment or
distribution and any other facts pertinent to the rights of such Person under
this Article, and if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to the right of such
Person to receive such payment.

SECTION 1211. Reliance on Judicial Order or Certificate of Liquidating Agent.

         Upon any payment or distribution of assets of the Company referred to
in this Article, the Trustee, subject to the provisions of Section 601, and the
Holders of the Securities shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other Person
making such payment or distribution, delivered to the Trustee or to the Holders
of Securities, for the purpose of ascertaining the Persons entitled to
participate in such payment or distribution, the holders of the Senior Debt of
the Company and other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all other facts
pertinent thereto or to this Article.

                                       59
<PAGE>   67

SECTION 1212. Trustee Not Fiduciary for Holders of Senior Debt of the Company.

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt of the Company and shall not be liable to any such
holders if it shall in good faith mistakenly pay over or distribute to Holders
of Securities or to the Company, or to any other Person cash, property or
securities to which any holders of Senior Debt of the Company shall be entitled
by virtue of this Article or otherwise.

SECTION 1213. Rights of Trustee as Holder of Senior Debt of the Company;
              Preservation of Trustee's Rights.

         The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article with respect to any Senior Debt of the Company
which may at any time be held by it, to the same extent as any other holder of
Senior Debt of the Company, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder.

         Nothing in this Article shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 607.

SECTION 1214. Article Applicable to Paying Agents.

         In case at any time any Paying Agent other than the Trustee shall have
been appointed by the Company and be then acting hereunder, the term "Trustee"
as used in this Article shall in such case (unless the context otherwise
requires) be construed as extending to and including such Paying Agent within
its meaning as fully for all intents and purposes as if such Paying Agent were
named in this Article in addition to or in place of the Trustee; provided,
however, that Section 1213 shall not apply to the Company, or any Affiliate of
the Company if it or such Affiliate acts as Paying Agent.

SECTION 1215. Defeasance of this Article Twelve.

         The subordination of the Securities of a series provided by this
Article Twelve is expressly made subject to the provisions for satisfaction and
discharge in Article Four and the provisions for defeasance or covenant
defeasance in Article Fifteen hereof and, anything herein to the contrary
notwithstanding, upon the effectiveness of any such satisfaction and discharge,
defeasance or covenant defeasance, the Securities of such series then
outstanding shall thereupon cease to be subordinated pursuant to this Article
Twelve.

                                ARTICLE THIRTEEN

                             [intentionally omitted]

                                ARTICLE FOURTEEN

                             [intentionally omitted]

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<PAGE>   68

                                 ARTICLE FIFTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

SECTION 1501. Company's Option to Effect Defeasance or Covenant Defeasance.

         The Company may elect, at its option at any time, to have Section 1502
or Section 1503 applied to any Securities or any series of Securities, as the
case may be, designated pursuant to Section 301 as being defeasible pursuant to
such Section 1502 or 1503, in accordance with any applicable requirements
provided pursuant to Section 301 and upon compliance with the conditions set
forth below in this Article. Any such election shall be evidenced in or pursuant
to a Board Resolution or in another manner specified as contemplated by Section
301 for such Securities.

SECTION 1502. Defeasance and Discharge.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, the
Company shall be deemed to have been discharged from its obligations and the
provisions of Article Twelve shall cease to be effective, with respect to such
Securities as provided in this Section on and after the date the conditions set
forth in Section 1504 are satisfied (hereinafter called "Defeasance"). For this
purpose, such Defeasance means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by such Securities and to have
satisfied all its other obligations under such Securities and this Indenture
insofar as such Securities are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), subject to
the following which shall survive until otherwise terminated or discharged
hereunder: (1) the rights of Holders of such Securities to receive, solely from
the trust fund described in Section 1504 and as more fully set forth in such
Section, payments in respect of the principal of and any premium and interest on
such Securities when payments are due, or to convert such Securities in
accordance with the provisions of Article Seventeen, (2) the Company's
obligations with respect to such Securities under Sections 304, 305, 306, 1002
and 1003 and, if applicable, Article Seventeen, (3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder, and (4) this Article. Subject to
compliance with this Article, the Company may exercise its option (if any) to
have this Section applied to any Securities notwithstanding the prior exercise
of its option (if any) to have Section 1503 applied to such Securities.

SECTION 1503. Covenant Defeasance.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of Securities, as the case may be, (1)
the Company shall be released from its obligations under Section 801(3),
Sections 1006 through 1008, inclusive, and any covenants provided pursuant to
Section 301(22), 901(2), or 901(7) for the benefit of the Holders of such
Securities, and (2) the occurrence of any event specified in Sections 501(4)
(with respect to any of Section 801(3), Sections 1006 through 1008, inclusive,
and any such covenants provided pursuant to Section 301(22), 901(2), or 901(7)),
and 501(9) shall be deemed not to be or result in an Event of Default and (3)
the provisions of Article Twelve shall cease to be effective, in each case with
respect to such Securities as provided in this Section on and after the date the
conditions set forth in Section 1504 are satisfied (hereinafter called "Covenant
Defeasance"). For this purpose, such Covenant Defeasance means that, with
respect to such Securities, the Company may omit to comply with and shall have
no liability in

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<PAGE>   69

respect of any term, condition or limitation set forth in any such specified
Section (to the extent so specified in the case of Section 501(4)) or Article
Twelve, whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or Article or by reason of any reference in any such
Section or Article to any other provision herein or in any other document, but
the remainder of this Indenture and such Securities shall be unaffected thereby.

SECTION 1504. Conditions to Defeasance or Covenant Defeasance.

         The following shall be the conditions to the application of Section
1502 or Section 1503 to any Securities or any series of Securities, as the case
may be:

              (1) The Company shall irrevocably have deposited or caused to be
     deposited with the Trustee (or another trustee which satisfies the
     requirements contemplated by Section 609 and agrees to comply with the
     provisions of this Article applicable to it) as trust funds in trust for
     the purpose of making the following payments, specifically pledged as
     security for, and dedicated solely to, the benefits of the Holders of such
     Securities, (A) money in an amount, or (B) U.S. Government Obligations
     which through the scheduled payment of principal and interest in respect
     thereof in accordance with their terms will provide, not later than one day
     before the due date of any payment, money in an amount, or (C) a
     combination thereof, in each case sufficient, in the opinion of a
     nationally recognized firm of independent public accountants expressed in a
     written certification thereof delivered to the Trustee, to pay and
     discharge, and which shall be applied by the Trustee (or any such other
     qualifying trustee) to pay and discharge, the principal of and any premium
     and interest on such Securities on the respective Stated Maturities, in
     accordance with the terms of this Indenture and such Securities. As used
     herein, "U.S. Government Obligation" means (x) any security which is (i) a
     direct obligation of the United States of America for the payment of which
     the full faith and credit of the United States of America is pledged or
     (ii) an obligation of a Person controlled or supervised by and acting as an
     agency or instrumentality of the United States of America the payment of
     which is unconditionally guaranteed as a full faith and credit obligation
     by the United States of America, which, in either case (i) or (ii), is not
     callable or redeemable at the option of the issuer thereof, and (y) any
     depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
     Securities Act) as custodian with respect to any U.S. Government Obligation
     which is specified in Clause (x) above and held by such bank for the
     account of the holder of such depositary receipt, or with respect to any
     specific payment of principal of or interest on any U.S. Government
     Obligation which is so specified and held, provided that (except as
     required by law) such custodian is not authorized to make any deduction
     from the amount payable to the holder of such depositary receipt from any
     amount received by the custodian in respect of the U.S. Government
     Obligation or the specific payment of principal or interest evidenced by
     such depositary receipt.

              (2) In the event of an election to have Section 1502 apply to any
     Securities or any series of Securities, as the case may be, the Company
     shall have delivered to the Trustee an Opinion of Counsel stating that (A)
     the Company has received from, or there has been published by, the United
     States Internal Revenue Service a ruling or (B) since the date of this
     instrument, there has been a change in the applicable Federal income tax
     law, in either case (A) or (B) to the effect that, and based thereon such
     opinion shall confirm that, the Holders of such Securities will not
     recognize gain or loss for Federal income tax purposes as a result of the
     deposit, Defeasance and discharge to be effected with respect to such
     Securities and will be subject to Federal income tax on the same amount, in
     the same manner and at the same times as would be the case if such deposit,
     Defeasance and discharge were not to occur.

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<PAGE>   70

              (3) In the event of an election to have Section 1503 apply to any
     Securities or any series of Securities, as the case may be, the Company
     shall have delivered to the Trustee an Opinion of Counsel to the effect
     that the Holders of such Securities will not recognize gain or loss for
     Federal income tax purposes as a result of the deposit and Covenant
     Defeasance to be effected with respect to such Securities and will be
     subject to Federal income tax on the same amount, in the same manner and at
     the same times as would be the case if such deposit and Covenant Defeasance
     were not to occur.

              (4) The Company shall have delivered to the Trustee an Officer's
     Certificate to the effect that neither such Securities nor any other
     Securities of the same series, if then listed on any securities exchange,
     will be delisted as a result of such deposit.

              (5) No event which is, or after notice or lapse of time or both
     would become, an Event of Default with respect to such Securities or any
     other Securities shall have occurred and be continuing at the time of such
     deposit or, with regard to any such event specified in Sections 501(7) and
     (8), at any time on or prior to the 91st day after the date of such deposit
     (it being understood that this condition shall not be deemed satisfied
     until after such 91st day).

              (6) Such Defeasance or Covenant Defeasance shall not cause the
     Trustee to have a conflicting interest within the meaning of the Trust
     Indenture Act (assuming all Securities are in default within the meaning of
     such Act).

              (7) Such Defeasance or Covenant Defeasance shall not result in a
     breach or violation of, or constitute a default under, any other agreement
     or instrument to which the Company is a party or by which it is bound.

              (8) At the time of such deposit, (A) no default in the payment of
     any principal of or premium or interest on any Senior Debt of the Company
     shall have occurred and be continuing, (B) no event of default with respect
     to any Senior Debt of the Company shall have resulted in such Senior Debt
     becoming, and continuing to be, due and payable prior to the date on which
     it would otherwise have become due and payable (unless payment of such
     Senior Debt has been made or duly provided for), and (C) no other event of
     default with respect to any Senior Debt of the Company shall have occurred
     and be continuing permitting (after notice or lapse of time or both) the
     holders of such Senior Debt (or a trustee on behalf of such holders) to
     declare such Senior Debt due and payable prior to the date on which it
     would otherwise have become due and payable.

              (9) The Company shall have delivered to the Trustee an Opinion of
     Counsel to the effect that such deposit shall not cause either the Trustee
     or the trust so created to be subject to the Investment Company Act of
     1940.

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

SECTION 1505. Deposited Money and U.S. Government Obligations to Be Held in
              Trust; Miscellaneous Provisions.

         Subject to the provisions of the last paragraph of Section 1003, all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the Trustee or other qualifying trustee (solely

                                       63
<PAGE>   71

for purposes of this Section and Section 1506, the Trustee and any such other
trustee are referred to collectively as the "Trustee") pursuant to Section 1504
in respect of any Securities 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 such Paying Agent (including the Company
acting as its own 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 and any premium and interest, but money so held in trust need not be
segregated from other funds except to the extent required by law. Money and U.S.
Government Obligations so held in trust shall not be subject to the provisions
of Article Twelve.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 1504 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 Outstanding Securities.

         Anything in this Article to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 1504 with
respect to any Securities which, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect the Defeasance or Covenant Defeasance, as
the case may be, with respect to such Securities.

SECTION 1506. Reinstatement.

         If the Trustee or the Paying Agent is unable to apply any money in
accordance with this Article with respect to any Securities by reason of any
order or judgment of any court or governmental authority enjoining, restraining
or otherwise prohibiting such application, then the obligations under this
Indenture and such Securities from which the Company has been discharged or
released pursuant to Section 1502 or 1503 shall be revived and reinstated as
though no deposit had occurred pursuant to this Article with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to apply
all money held in trust pursuant to Section 1505 with respect to such Securities
in accordance with this Article; provided, however, that if the Company makes
any payment of principal of or any premium or interest on any such Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.

                                 ARTICLE SIXTEEN

                                  SINKING FUNDS

SECTION 1601. Applicability of Article.

         The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of any series except as otherwise specified as
contemplated by Section 301 for such Securities.

         The minimum amount of any sinking fund payment provided for by the
terms of any Securities is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
terms of such Securities is herein referred to as an "optional sinking fund
payment". If provided for by the terms of any Securities, the cash amount of any
sinking fund payment may be subject to

                                       64
<PAGE>   72

reduction as provided in Section 1602. Each sinking fund payment shall be
applied to the redemption of Securities as provided for by the terms of such
Securities.

SECTION 1602. Satisfaction of Sinking Fund Payments with Securities.

         The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption) and (2) may apply as a credit
Securities of a series which have been (x) converted pursuant to Article
Seventeen or (y) redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to any
Securities of such series required to be made pursuant to the terms of such
Securities as and to the extent provided for by the terms of such Securities,
provided that the Securities to be so credited have not been previously so
credited. The Securities to be so credited shall be received and credited for
such purpose by the Trustee at the Redemption Price, as specified in the
Securities so to be redeemed, for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 1603. Redemption of Securities for Sinking Fund.

         Not less than 35 days prior to each sinking fund payment date for any
Securities, the Company will deliver to the Trustee an Officer's Certificate
specifying the amount of the next ensuing sinking fund payment for such
Securities pursuant to the terms of such Securities, 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 Securities pursuant to
Section 1602 and will also deliver to the Trustee any Securities to be so
delivered. Not less than 32 days prior to each such sinking fund payment date,
the Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 1103 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Sections 1106 and 1107.

                                ARTICLE SEVENTEEN

                            CONVERSION OF SECURITIES

SECTION 1701. Applicability of Article.

         The provisions of this Article shall be applicable to the Securities of
any series which are convertible into Common Stock or, if so provided in a Board
Resolution, Officer's Certificate or executed supplemental indenture referred to
in Sections 201 and 301 by or pursuant to which the form and terms of the
Securities of such series were established, cash in lieu thereof, as and to the
extent provided by the terms of the Securities of such series.

SECTION 1702. Exercise of Conversion Privilege.

         In order to exercise the conversion privilege, the Holder of any
Security to be converted shall surrender such Security to the Conversion Agent
at any time during usual business hours at its office or agency maintained for
the purpose as provided in this Indenture, accompanied by a fully executed
written

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notice, in substantially the form set forth on the reverse of or attached to the
Security, that the Holder elects to convert such Security or a stated portion
thereof constituting a multiple of $1,000 in principal amount at Maturity, and,
if such Security is surrendered for conversion during the period between the
close of business on any Regular Record Date for such Security and the opening
of business on the related Interest Payment Date and has not been called for
redemption on a Redemption Date within such period, accompanied also by payment
to the Company of an amount equal to the interest payable on such Interest
Payment Date on the portion of the principal amount of the Security being
surrendered for conversion, notwithstanding such conversion. The Holder of any
Security at the close of business of a record date for such Security shall be
entitled to receive the interest payable on such Security on the corresponding
Interest Payment Date notwithstanding the conversion thereof after such record
date. The interest payment with respect to a Security called for redemption on a
date during the period from the close of business on or after any record date
for such Security to the close of business on the Business Day following the
corresponding Interest Payment Date shall be payable on the corresponding
Interest Payment Date to the Holder at the close of business of that record date
(notwithstanding the conversion of such Security before the corresponding
Interest Payment Date), and a Holder who elects to convert need not include
funds equal to the interest paid. Such notice shall also state the name or names
(and address) in which the certificate or certificates for shares of Common
Stock shall be issued (or to whom payment in cash in lieu of Common Stock shall
be made). Securities surrendered for conversion shall (if so required by the
Company or the Conversion Agent) be duly endorsed by, or be accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company and the Conversion Agent duly executed by, the Holder or his attorney
duly authorized in writing. As promptly as practicable after the receipt of such
notice and the surrender of such Security as aforesaid, the Company shall,
subject to the provisions of Section 1707, issue and deliver at such office or
agency to such Holder, or on his written order, a certificate or certificates
for the number of full shares of Common Stock issuable on conversion of such
Security in accordance with the provisions of such Security and cash, as
provided in Section 1703, in respect of any fraction of a share of Common Stock
otherwise issuable upon such conversion or, if so provided in a Board
Resolution, Officer's Certificate or executed supplemental indenture referred to
in Sections 201 and 301 by or pursuant to which the form and terms of the
Securities of such series were established, cash in lieu of shares of Common
Stock. Such conversion shall be at the Conversion Price in effect, and shall be
deemed to have been effected, immediately prior to the close of business on the
date (herein called the "Date of Conversion") on which such notice in proper
form shall have been received by the Conversion Agent and such Security shall
have been surrendered as aforesaid, and the Person or Persons in whose name or
names any certificate or certificates for shares of Common Stock shall be
issuable, if any, upon such conversion shall be deemed to have become on the
Date of Conversion the holder or holders of record of the shares represented
thereby; provided, however, that any such surrender on any date when the stock
transfer books of the Company shall be closed shall constitute the Person or
Persons in whose name or names the certificate or certificates for such shares
are to be issued, if any, as the record holder or holders thereof for all
purposes at the opening of business on the next succeeding day on which such
stock transfer books are open but such conversion shall nevertheless be at the
Conversion Price in effect at the close of business on the date when such
Security shall have been so surrendered with the conversion notice in proper
form. In the case of conversion of a portion, but less than all, of a Security,
the Company shall execute, and the Trustee shall authenticate and deliver to the
Holder thereof, at the expense of the Company, a Security or Securities in the
aggregate principal amount of the unconverted portion of the Security
surrendered. Except as otherwise expressly provided in this Indenture, no
payment or adjustment shall be made for interest accrued on any Security (or
portion thereof) converted or for dividends or distributions on any Common Stock
issued upon conversion of any Security. The right, if any, of a Holder of any
Security to cause the Company to redeem, purchase or repay such Security shall
terminate upon receipt by the Company of any notice of conversion of such
Security.

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SECTION 1703. Fractional Interests.

         No fractions of shares or scrip representing fractions of shares shall
be issued upon conversion of Securities. If more than one Security shall be
surrendered for conversion at one time by the same Holder, the number of full
shares which shall be issuable upon conversion thereof shall be computed on the
basis of the aggregate principal amount of the Securities so surrendered. If any
fraction of a share of Common Stock would, except for the provisions of this
Section 1703, be issuable on the conversion of any Security or Securities, the
Company shall make payment in lieu thereof in cash equal to the value of such
fraction computed on the basis of the Last Sale Price of one share of Common
Stock on the most recent Trading Day prior to the Date of Conversion. "Last Sale
Price" on any Trading Day shall mean (i) the closing price regular way (or, if
no closing price is reported the average of the bid and asked prices) as
reported on the New York Stock Exchange Composite Tape, or (ii) if on such
Trading Day the Common Stock is not listed or admitted to trading on such
exchange, the closing price regular way (or, if no closing price is reported the
average of the bid and asked prices) on the principal national securities
exchange on which the Common Stock is listed or admitted to trading, or (iii) if
not listed or admitted to trading on any national securities exchange on such
Trading Day, then the average of the closing bid and asked prices as reported
through the National Association of Securities Dealers, Inc. on its NASDAQ
National Market or other NASDAQ market or through a similar organization if
NASDAQ is no longer reporting information, or (iv) if the Common Stock is not
listed or admitted to trading on any national securities exchange or quoted on
such National Market or other NASDAQ market on such Trading Day, then the
average of the closing bid and asked prices in the over-the-counter market as
furnished by any New York Stock Exchange member firm selected from time to time
by the Company for that purpose or (v) if not quoted by any such organization on
such Trading Day, the fair value of such Common Stock on such Trading Day, as
determined in good faith by the Board of Directors. The term "Trading Day" shall
mean each Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on
which securities are not traded on any of the above mentioned exchanges or in
such markets.

SECTION 1704. Adjustment of Conversion Price.

         The conversion price or rate (herein called the "Conversion Price") for
a series of Securities shall be as set forth in a Board Resolution, Officers'
Certificate or executed supplemental indenture referred to in Sections 201 and
301 by or pursuant to which the form and terms of the Securities of such series
were established, and, except as otherwise provided therein, shall be subject to
adjustment from time to time as follows:

         (a) In case the Company shall (1) make or pay a dividend (or other
distribution) in shares of Common Stock on any class of Capital Stock of the
Company, (2) subdivide its outstanding shares of Common Stock into a greater
number of shares, (3) combine its outstanding shares of Common Stock into a
smaller number of shares or (4) issue by reclassification of its Common Stock
any shares of capital stock of the Company, the Conversion Price in effect
immediately prior to such action shall be adjusted so that the Holder of any
Security thereafter surrendered for conversion shall be entitled to receive the
number of shares of Common Stock or other capital stock of the Company which he
would have owned immediately following such action had such Security been
converted immediately prior thereto. An adjustment made pursuant to this
subsection (a) shall become effective immediately, except as provided in
subsection (h) below, after the record date in the case of a dividend or
distribution and shall become effective immediately after the effective date in
the case of a subdivision, combination or reclassification. If as a result of an
adjustment made pursuant to this subsection (a), the Holder of any Security
thereafter surrendered for conversion shall become entitled to receive shares of
two or more classes of Capital Stock (including shares of Common Stock) of the
Company, the Board of Directors (whose determination shall, if made in good
faith, be conclusive and shall be described in a statement filed with the
Trustee) shall

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<PAGE>   75

determine the allocation of the adjusted Conversion Price between or among
shares of such classes of Capital Stock.

         (b) In case the Company shall issue rights, options or warrants to all
holders of Common Stock entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the current market price per share
(as determined pursuant to subsection (f) below) of the Common Stock on the
record date mentioned below, the Conversion Price shall be adjusted to a price,
computed to the nearest cent, so that the same shall equal the price determined
by multiplying:

              (1) the Conversion Price in effect immediately prior to the date
         of issuance of such rights, options or warrants by a fraction, of which

              (2) the numerator shall be (A) the aggregate number of shares of
         Common Stock, Limited Vote Common Stock and As-Converted Series A
         Preferred Shares outstanding on the date of issuance of such rights,
         options or warrants, immediately prior to such issuance, plus (B) the
         number of shares which the aggregate offering price of the total number
         of shares so offered for subscription or purchase would purchase at
         such current market price (determined by multiplying such total number
         of shares by the exercise price of such rights, options or warrants and
         dividing the product so obtained by such current market price), and of
         which

              (3) the denominator shall be (A) the aggregate number of shares of
         Common Stock, Limited Vote Common Stock and As-Converted Series A
         Preferred Shares outstanding on the date of issuance of such rights,
         options or warrants, immediately prior to such issuance, plus (B) the
         number of additional shares of Common Stock which are so offered for
         subscription or purchase.

Such adjustment shall become effective immediately, except as provided in
subsection (h) below, after the record date for the determination of holders
entitled to receive such rights, options or warrants; provided, however, that if
any such rights, options or warrants issued by the Company as described in this
subsection (b) are only exercisable upon the occurrence of certain triggering
events relating to control and provided for in shareholders' rights plans, then
the Conversion Price shall not be adjusted as provided in this subsection (b)
until such triggering events shall occur; and provided further that if any such
rights, options or warrants expire unexercised, the Conversion Price shall be
readjusted to take into account only the number of such rights, options or
warrants actually exercised.

         (c) In case the Company or any of its Subsidiaries shall distribute to
all holders of Common Stock evidences of indebtedness, shares of Capital Stock
other than Common Stock, cash or other assets (including securities, but other
than (x) regular dividends or distributions paid exclusively in cash or (y) any
dividend or distribution for which an adjustment is required to be made in
accordance with subsection (a) or (b) above), subsection (a) or (b) above), then
in each such case the Conversion Price shall be adjusted so that the same shall
equal the price determined by multiplying the Conversion Price in effect
immediately prior to the date of such distribution by a fraction of which the
numerator shall be the current market price per share (determined as provided in
subsection (f) below) of the Common Stock on the record date mentioned below
less the then fair market value (as determined by the Board of Directors, whose
determination shall, if made in good faith, be conclusive evidence of such fair
market value) of the portion of the assets so distributed applicable to one
share of Common Stock, and of which the denominator shall be such current market
price per share of the Common Stock. Such adjustment shall become effective
immediately, except as provided in subsection (h) below, after the record date
for the determination of stockholders entitled to receive such distribution.
Notwithstanding the foregoing, in the event that the fair market value of the
assets, evidences of indebtedness or other securities so distributed applicable
to one share of Common Stock equals or exceeds such current market price per
share of

                                       68
<PAGE>   76

Common Stock, or such current market price exceeds such fair market value by
less than $0.10 per share, the Conversion Price shall not be adjusted pursuant
to this subsection (c) and, to the extent applicable, the provisions of
subsection (k) shall apply to such distribution.

         (d) In case the Company or any Subsidiary of the Company shall make any
distribution consisting exclusively of cash (excluding any cash portion of
distributions for which an adjustment is required to be made in accordance with
(c) above, or cash distributed upon a merger or consolidation to which Section
1705 applies) to all holders of Common Stock in an aggregate amount that,
combined together with (i) all other such all-cash distributions made within the
then preceding 12 months in respect of which no adjustment has been made and
(ii) any cash and the fair market value of other consideration paid or payable
in respect of any tender offer by the Company or any of its Subsidiaries for
Common Stock concluded within the preceding 12 months in respect of which no
adjustment has been made, exceeds 15% of the Company's market capitalization
(defined as being the product of the then current market price of the Common
Stock (determined as provided in subsection (f) below) times the aggregate
number of shares of Common Stock, Limited Vote Common Stock and As-Converted
Series A Preferred Shares then outstanding) on the record date of such
distribution, then in each such case the Conversion Price shall be adjusted so
that the same shall equal the price determined by multiplying the Conversion
Price in effect immediately prior to the date of such distribution by a fraction
of which the numerator shall be the then current market price per share of the
Common Stock on such record date less the amount of the cash so distributed
applicable to one share of Common Stock, and of which the denominator shall be
such current market price per share of the Common Stock. Such adjustment shall
become effective immediately, except as provided in subsection (h) below, after
the record date for the determination of stockholders entitled to receive such
distribution. Notwithstanding the foregoing, in the event that the cash so
distributed applicable to one share of Common Stock equals or exceeds such
current market price per share of Common Stock, or such current market price
exceeds such amount of cash by less than $0.10 per share, the Conversion Price
shall not be adjusted pursuant to this subsection (d), and, to the extent
applicable, the provisions of subsection (k) shall apply to such distribution.

         (e) In case there shall be completed a tender or exchange offer made by
the Company or any Subsidiary of the Company for all or any portion of the
Common Stock (any such tender or exchange offer being referred to as an "Offer")
that involves an aggregate consideration having a fair market value as of the
expiration of such Offer (the "Expiration Time") that, together with (i) any
cash and the fair market value of any other consideration payable in respect of
any other Offer, as of the expiration of such other Offer, expiring within the
12 months preceding the expiration of such Offer and in respect for which no
Conversion Price adjustment pursuant to this subsection (e) has been made and
(ii) the aggregate amount of any all-cash distributions referred to in
subsection (d) of this Section 1704 to all holders of Common Stock within the 12
months preceding the expiration of such Offer for which no Conversion Price
adjustment pursuant to such subsection (d) has been made, exceeds 15% of the
product of the then current market price per share (determined as provided in
subsection (f) below) of the Common Stock on the Expiration Time times the
aggregate number of shares of Common Stock, Limited Vote Common Stock and
As-Converted Series A Preferred Shares outstanding (including any tendered
shares) on the Expiration Time, the Conversion Price shall be reduced by
multiplying such Conversion Price in effect immediately prior to the Expiration
Time by a fraction of which the numerator shall be (i) the product of the then
current market price per share (determined as provided in subsection (f) below)
of the Common Stock on the Expiration Time times the aggregate number of shares
of Common Stock, Limited Vote Common Stock and As-Converted Series A Preferred
Shares outstanding (including any tendered shares) on the Expiration Time minus
(ii) the fair market value of the aggregate consideration payable to
stockholders based on the acceptance (up to any maximum specified in the terms
of the Offer) of all shares validly tendered and not withdrawn as of the
Expiration Time (the shares deemed so accepted being referred to as the
"Purchased Shares") and the denominator shall be the product of (i) such current

                                       69
<PAGE>   77

market price per share on the Expiration Time times (ii) such number of
outstanding shares on the Expiration Time less the number of Purchased Shares,
such reduction to become effective immediately prior to the opening of business
on the day following the Expiration Time.

         For purposes of this subsection (e), the fair market value of any
consideration with respect to an Offer shall be reasonably determined in good
faith by the Board of Directors of the Company and described in a Board
Resolution.

         (f) For the purpose of any computation under subsections (b), (c), (d)
and (e) above, the current market price per share of Common Stock on any date
shall be deemed to be the average of the Last Sale Prices of a share of Common
Stock for the five consecutive Trading Days selected by the Company commencing
not more than 20 Trading Days before, and ending not later than, the earlier of
the date in question and the date before the "ex date," with respect to the
issuance, distribution or Offer requiring such computation. For purposes of this
paragraph, the term "ex date," when used with respect to any issuance,
distribution or payments with respect to an Offer, means the first date on which
the Common Stock trades regular way on the New York Stock Exchange (or if not
listed or admitted to trading thereon, then on the principal national securities
exchange on which the Common Stock is listed or admitted to trading) without the
right to receive such issuance, distribution or Offer.

         (g) In addition the foregoing adjustments in subsections (a), (b), (c),
(d) and (e) above, the Company will be permitted to make such reductions in the
Conversion Price as it considers to be advisable in order that any event treated
for Federal income tax purposes as a dividend of stock or stock rights will not
be taxable to the holders of the shares of Common Stock.

     In the event the Company elects to make such a reduction in the Conversion
Price, the Company shall comply with the requirements of Rule 14e-1 of the
Exchange Act and any other Federal and state laws and regulations thereunder if
and to the extent that such laws and regulations are applicable in connection
with the reduction of the Conversion Price; provided, however, that any
provisions of this Indenture which conflict with such laws shall be deemed to be
superseded by the provisions of such laws.

         (h) In any case in which this Section 1704 shall require that an
adjustment (including by reason of the second sentence of subsection (a) or (c)
above) be made immediately following a record date, the Company may elect to
defer the effectiveness of such adjustment (but in no event until a date later
than the effective time of the event giving rise to such adjustment), in which
case the Company shall, with respect to any Security converted after such record
date and before such adjustment shall have become effective, (i) defer paying
any cash payment pursuant to Section 1703 or issuing to the Holder of such
Security the number of shares of Common Stock and other Capital Stock of the
Company (or other assets or securities) issuable upon such conversion in excess
of the number of shares of Common Stock and other Capital Stock of the Company
issuable thereupon only on the basis of the Conversion Price prior to adjustment
and (ii), not later than five Business Days after such adjustment shall have
become effective, pay to such Holder the appropriate cash payment pursuant to
Section 1703 and issue to such Holder the additional shares of Common Stock and
other Capital Stock of the Company (or other assets or securities) issuable on
such conversion.

         (i) No adjustment in the Conversion Price shall be required unless such
adjustment would require an increase or decrease of at least 1% of the
Conversion Price; provided, however, that any adjustments which by reason of
this subsection (i) are not required to be made shall be carried forward and
taken into account in any subsequent adjustment. All calculations under this
Article Seventeen shall be made to the nearest cent or to the nearest
one-hundredth of a share, as the case may be.

                                       70
<PAGE>   78

         (j) Whenever the Conversion Price is adjusted as herein provided, the
Company shall promptly (i) file with the Trustee and each Conversion Agent an
Officer's Certificate setting forth the Conversion Price after such adjustment
and setting forth a brief statement of the facts requiring such adjustment,
which certificate shall be conclusive evidence of the correctness of such
adjustment, and (ii) give or cause to be given a notice of such adjustment to
each Holder of Securities in the manner provided in Section 106.

         (k) In the event that the Company distributes rights (including rights
to distributions referred to by paragraphs (c) and (d) of this Section 1704 to
the extent this paragraph (k) applies thereto), options or warrants (other than
those referred to in subsection (b) above) pro rata to holders of Common Stock,
so long as any such rights, options or warrants have not expired or been
redeemed by the Company, the Company shall make proper provision so that the
Holder of any Security surrendered for conversion will be entitled to receive
upon such conversion, in addition to the shares of Common Stock issuable upon
such conversion (the "Conversion Shares"), a number of rights or warrants to be
determined as follows: (i) if such conversion occurs on or prior to the date for
the distribution to the holders of rights or warrants of separate certificates
evidencing such rights or warrants (the "Distribution Date"), the same number of
rights or warrants to which a holder of a number of shares of Common Stock equal
to the number of Conversion Shares is entitled at the time of such conversion in
accordance with the terms and provisions of and applicable to the rights or
warrants, and (ii) if such conversion occurs after such Distribution Date, the
same number of rights or warrants to which a holder of the number of shares of
Common Stock into which the principal amount of such Security so converted was
convertible immediately prior to such Distribution Date would have been entitled
on such Distribution Date in accordance with the terms and provisions of and
applicable to the rights or warrants.

SECTION 1705. Continuation of Conversion Privilege in Case of Merger,
              Consolidation or Sale of Assets.

         If any of the following shall occur, namely: (a) any reclassification
or change of outstanding Conversion Shares (other than a change in par value, or
from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination), (b) any consolidation or merger of the
Company with or into any other Person, or the merger of any other Person with or
into the Company (other than a merger which does not result in any
reclassification, change, conversion, exchange or cancellation of outstanding
shares of Common Stock) or (c) any transfer, conveyance, sale, lease or other
disposition of all or substantially all of the assets of the Company, then the
Company, or such successor or purchasing Person, as the case may be, shall, as a
condition precedent to such reclassification, change, consolidation, merger or
disposition, execute and deliver to the Trustee a supplemental indenture
providing that the Holder of each Security then outstanding shall have the right
to convert such Security only into the kind and amount of shares of stock and
other securities and property (including cash) receivable upon such
reclassification, change, consolidation, merger or disposition by a holder of
the number of shares of Common Stock issuable upon conversion of such Security
immediately prior to such reclassification, change, consolidation, merger or
disposition assuming such holder of Common Stock of the Company failed to
exercise his rights of an election, if any, as to the kind or amount of
securities, cash and other property receivable upon such reclassification,
change, consolidation, merger or disposition (provided that if the kind or
amount of securities, cash and other property receivable upon such
reclassification, change, consolidation, merger or disposition is not the same
for each share of Common Stock of the Company held immediately prior to such
reclassification, change, consolidation, merger or disposition in respect of
which such rights of election shall not have been exercised ("non-electing
share"), then for the purpose of this Section 1705 the kind and amount of
securities, cash and other property receivable upon such reclassification,
change, consolidation, merger or disposition by each non-electing share shall be
deemed to be the kind and amount so receivable per share by a plurality of the
non-electing shares). Such supplemental indenture shall provide for adjustments
which shall be as nearly

                                       71
<PAGE>   79

equivalent as may be practicable to the adjustments provided for in this Article
Seventeen. If, in the case of any such consolidation, merger or disposition, the
stock or other securities and property (including cash) receivable thereupon or
in connection therewith by a holder of shares of Common Stock includes shares of
stock or other securities and property (including cash) of a Person other than
the successor or purchasing Person, as the case may be, in such consolidation,
merger or disposition, then such supplemental indenture shall also be executed
by such other Person and shall contain such additional provisions to protect the
interests of the Holders of the Securities as the Board of Directors shall
reasonably consider necessary by reason of the foregoing. The provisions of this
Section 1705 shall similarly apply to successive consolidations, mergers or
dispositions.

     Notice of the execution of each such supplemental indenture shall be given
to each Holder of Securities in the manner provided in Section 106.

     Neither the Trustee nor any Conversion Agent shall be under any
responsibility to determine the correctness of any provisions contained in any
such supplemental indenture relating either to the kind or amount of shares of
stock or other securities or property (including cash) receivable by Holders of
Securities upon the conversion of their Securities after any such
reclassification, change, consolidation, merger or disposition or to any
adjustment to be made with respect thereto, but, subject to the provisions of
Sections 601 and 603, may accept as conclusive evidence of the correctness of
any such provision, and shall be protected in relying upon, the Officer's
Certificate (which the Company shall be obligated to file with the Trustee prior
the execution of any such supplemental indenture) with respect thereto.

SECTION 1706. Notice of Certain Events.

     If:

         (a) the Company shall declare a dividend (or any other distribution)
     payable to the holders of Common Stock otherwise than in cash; or

         (b) the Company shall authorize the granting to all holders of Common
     Stock of rights, options or warrants to subscribe for or purchase any
     shares of stock of any class or of any other rights; or

         (c) the Company shall authorize any reclassification or change of the
     Common Stock (other than a subdivision or combination of its outstanding
     shares of Common Stock), or any consolidation or merger to which the
     Company is a party and for which approval of any stockholders of the
     Company is required under the laws of the state of incorporation of the
     Company, or the transfer, conveyance, sale, lease or other disposition of
     all or substantially all of the assets of the Company; or

         (d) there shall be authorized or ordered any voluntary or involuntary
     dissolution, liquidation or winding-up of the Company; or

         (e) the Company or any of its Subsidiaries shall complete an Offer;

then, the Company shall cause to be filed at the office or agency maintained for
the purpose of conversion of the Securities as provided in Section 1002, and
shall cause to be given to each Holder of Securities, in the manner provided in
Section 106, at least 20 days before the date hereinafter specified (or the
earlier of the dates hereinafter specified, in the event that more than one date
is specified), a notice stating the date on which (1) a record is expected to be
taken for the purpose of such dividend, distribution, rights, warrants, options
or Offer, or if a record is not to be taken, the date as of which the holders of
Common Stock of record to be entitled to such dividend, distribution, rights,
warrants or options or to participate in

                                       72
<PAGE>   80

such Offer are to be determined, or (2) such reclassification, change,
consolidation, merger, disposition, dissolution, liquidation or winding-up is
expected to become effective and the date, if any is to be fixed, as of which it
is expected that holders of Common Stock of record shall be entitled to exchange
their shares of Common Stock for securities or other property deliverable upon
such reclassification, change, consolidation, merger, disposition, dissolution,
liquidation or winding-up.

SECTION 1707.     Taxes on Conversion.

         The Company will pay any and all documentary, stamp or similar taxes
payable to the United States of America or any political subdivision or taxing
authority thereof or therein in respect of the issue or delivery of shares of
Common Stock on conversion of Securities pursuant thereto; provided, however,
that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the issue or delivery of shares of Common
Stock in a name other than that of the Holder of the Securities to be converted
(or payment of cash in lieu thereof to a Person other than such Holder) and no
such issue or delivery (or payment) shall be made unless and until the Person
requesting such issue or delivery (or payment) has paid to the Company the
amount of any such tax or has established, to the satisfaction of the Company,
that such tax has been paid. The Company extends no protection with respect to
any other taxes imposed in connection with conversion of Securities.

SECTION 1708.     Company to Provide Stock.

         The Company shall reserve, free from preemptive rights, out of its
authorized but unissued shares, sufficient shares to provide for the conversion
of convertible Securities from time to time as such Securities are presented for
conversion, provided, however, that nothing contained herein shall be construed
to preclude the Company from satisfying its obligations in respect of the
conversion of Securities by delivery of repurchased shares of Common Stock which
are held in the treasury of the Company.

         If any shares of Common Stock to be reserved for the purpose of
conversion of Securities hereunder require registration with or approval of any
governmental authority under any Federal or State law before such shares may be
validly issued or delivered upon conversion, then the Company covenants that it
will in good faith and as expeditiously as possible endeavor to secure such
registration or approval, as the case may be; provided, however, that nothing in
this Section 1708 shall be deemed to affect in any way the obligations of the
Company to convert Securities into Common Stock as provided in this Article
Seventeen.

         Before taking any action which would cause an adjustment reducing the
Conversion Price below the then par value, if any, of the Common Stock, the
Company will take all corporate action which may, in the opinion of counsel, be
necessary in order that the Company may validly and legally issue fully paid and
non-assessable shares of Common Stock at such adjusted Conversion Price.

         The Company covenants that all shares of Common Stock which may be
issued upon conversion of Securities will upon issue be fully paid and
non-assessable by the Company and free of preemptive rights.

SECTION 1709.     Disclaimer of Responsibility for Certain Matters.

         Neither the Trustee, any Conversion Agent nor any agent of either shall
at any time be under any duty or responsibility to any Holder of Securities to
determine whether any facts exist which may require any adjustment of the
Conversion Price, or with respect to the Officer's Certificate referred to in

                                       73
<PAGE>   81

Section 1704(j), or with respect to the nature or extent of any such adjustment
when made, or with respect to the method employed, or herein or in any
supplemental indenture provided to be employed, in making the same. Neither the
Trustee, any Conversion Agent nor any agent of either shall be accountable with
respect to the validity or value (or the kind or amount) of any shares of Common
Stock, or of any securities or property (including cash), which may at any time
be issued or delivered upon the conversion of any Security, and neither the
Trustee, any Conversion Agent nor any agent of either makes any representation
with respect thereto. Neither the Trustee, any Conversion Agent nor any agent of
either shall be responsible for any failure of the Company to issue, register
the transfer of or deliver any shares of Common Stock or stock certificates or
other securities or property (including cash) upon the surrender of any Security
for the purpose of conversion or, subject to Sections 601 and 603, to comply
with any of the covenants of the Company contained in this Article Seventeen.

SECTION 1710.     Return of Funds Deposited for Redemption of Converted
                  Securities.

     Any funds which at any time shall have been deposited by the Company or on
its behalf with the Trustee or any Paying Agent for the purpose of paying the
principal of and interest, if any, on any of the Securities and which shall not
be required for such purposes because of the conversion of such Securities, as
provided in this Indenture, shall forthwith after such conversion be repaid to
the Company by the Trustee or such Paying Agent.

                                       74
<PAGE>   82

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

                                            Quanta Services, Inc.

                                            By
                                               ---------------------------------

                                            Chase Bank of Texas, National
                                            Association, as Trustee

                                            By
                                               ---------------------------------
                                               Vice President<PAGE>

                                                                     EXHIBIT 4.6

                  UNITED RENTALS, INC. 401(k) INVESTMENT PLAN
<PAGE>

                  UNITED RENTALS, INC. 401(k) INVESTMENT PLAN

                               Table of Contents
                               -----------------

<TABLE>
<CAPTION>
                                                                       Page
                                                                       ----
<S>                                                                    <C>
                                  ARTICLE I
                           Establishment of the Plan

1.1      Restatement of Plan...........................................   1
1.2      Restatement of Trust..........................................   1
1.3      Effective Date................................................   1
1.4      Name and Designation..........................................   2
1.5      Withdrawal of Affiliated Companies............................   2

                                  ARTICLE II
                                  Definitions

2.1      Account.......................................................   3
2.2      Administrator.................................................   3
2.3      Affiliated Company............................................   3
2.4      Beneficiary...................................................   3
2.5      Board.........................................................   3
2.6      Break in Service..............................................   4
2.7      Code..........................................................   5
2.8      Company.......................................................   5
2.9      Compensation..................................................   5
2.10     Credited Service..............................................   7
2.11     Effective Date................................................   7
2.12     Elective Deferrals............................................   7
2.13     Employee......................................................   8
2.14     Employer......................................................   8
2.15     Employer Contribution.........................................   8
2.16     Employment Commencement Date..................................   8
2.17     Entry Dates...................................................   8
2.18     ERISA.........................................................   8
2.19     Fiduciary.....................................................   9
2.20     Fiscal Year...................................................   9
2.21     Highly Compensated Employee...................................   9
2.22     Hour of Service...............................................  10
</TABLE>
<PAGE>
                                     -ii-

<TABLE>
<S>                                                                         <C>
2.23     Matching Contributions...........................................  11
2.24     Net Profits......................................................  11
2.25     Normal Retirement Age............................................  11
2.26     Participant......................................................  11
2.27     Plan.............................................................  12
2.28     Plan Year........................................................  12
2.29     Prior Employer...................................................  12
2.30     Qualified Matching Contributions.................................  12
2.31     Qualified Military Service.......................................  12
2.32     Qualified Nonelective Contributions..............................  13
2.33     Rollover Contributions...........................................  13
2.34     Termination of Employment........................................  13
2.35     Total and Permanent Disability...................................  14
2.36     Transaction Date.................................................  14
2.37     Trust............................................................  14
2.38     Trustee..........................................................  14
2.39     Valuation Date...................................................  14
2.40     Vesting Computation Period.......................................  14
2.41     Year of Credited Service.........................................  14

                                  ARTICLE III
                                  Eligibility

3.1      Participation....................................................  15
3.2      Exclusions From Eligibility......................................  16
3.3      Leased Employees.................................................  17
3.4      Treatment of Qualified Military Service..........................  18

                                  ARTICLE IV
                                 Contributions

4.1      Employer Contributions...........................................  18
4.2      Payment..........................................................  19
4.3      Company Determination............................................  20
4.4      Elective Deferrals...............................................  20
4.5      Rollover Contributions...........................................  22
4.6      Restored Contributions...........................................  23
4.7      Direct Transfers.................................................  23
4.8      Limits for Highly Compensated....................................  24
4.9      Correction of Excess Contributions...............................  29
4.10     Correction of Excess Aggregate Contributions.....................  33
</TABLE>
<PAGE>

                                     -iii-

<TABLE>
<S>                                                                         <C>
4.11     Correction of Excess Deferrals...................................  37
4.12     Correction of Multiple Use.......................................  40

                                  ARTICLE V
                             Individual Accounts

5.1      Individual Accounts..............................................  40
5.2      Allocation of Contributions......................................  42
5.3      Allocation of Forfeitures........................................  43
5.4      Allocation of Earnings...........................................  43
5.5      Investment Direction.............................................  44

                                  ARTICLE VI
                           Termination of Employment

6.1      Normal Retirement................................................  46
6.2      Late Retirement..................................................  47
6.3      Disability Retirement............................................  47
6.4      Termination Due to Death.........................................  47
6.5      Other Termination of Employment..................................  48
6.6      Qualified Domestic Relations Orders..............................  49
6.7      Lost Beneficiary.................................................  53
6.8      Offsets..........................................................  54

                                  ARTICLE VII
                              Payment of Benefits

7.1      General..........................................................  54
7.2      Form of Payment..................................................  55
7.3      Direct Rollovers.................................................  55
7.4      Notice and Payment Elections.....................................  58
7.5      Mandatory Distributions..........................................  59
7.6      Commencement of Benefits.........................................  59
7.7      Payments to Incompetents.........................................  60
7.8      Income Tax Withholding...........................................  61
</TABLE>
<PAGE>

                                     -iv-

<TABLE>
<S>                                                                         <C>
                                 ARTICLE VIII
                        Distributions to Beneficiaries

8.1      General........................................................... 61
8.2      Normal Form of Payment............................................ 61
8.3      Beneficiary Designation........................................... 61
8.4      Commencement of Payment........................................... 63

                                  ARTICLE IX
                             Withdrawals and Loans

9.1      Withdrawals....................................................... 63
9.2      Hardship Withdrawals.............................................. 64
9.3      Loans............................................................. 67

                                   ARTICLE X
                     Contribution and Benefit Limitations

10.1     Contribution Limits............................................... 72
10.2     Overall Limits.................................................... 73
10.3     Annual Adjustments to Limits...................................... 73
10.4     Excess Amounts.................................................... 74
10.5     Definitions....................................................... 75

                                  ARTICLE XI
                                Top-Heavy Rules

11.1     General........................................................... 77
11.2     Vesting........................................................... 78
11.3     Minimum Contribution.............................................. 78
11.4     Definitions....................................................... 79
11.5     Special Rules..................................................... 83
11.6     Adjustment of Limitations......................................... 84

                                  ARTICLE XII
                          Administration of the Plan

12.1     Committee as Administrator........................................ 85
12.2     Procedures........................................................ 85
</TABLE>
<PAGE>

                                      -v-

<TABLE>
<S>                                                                         <C>
12.3     Bond and Compensation.............................................  86
12.4     Duties of the Committee...........................................  86
12.5     Allocation and Delegation of Responsibilities.....................  87
12.6     Committee Accounts................................................  87
12.7     Company to Furnish Information....................................  88
12.8     Expenses..........................................................  88
12.9     Indemnification...................................................  88
12.10    Reports ..........................................................  88

                                 ARTICLE XIII
                               Claims Procedure

13.1     Claims Submission.................................................  89
13.2     Claim Review......................................................  89
13.3     Right of Appeal...................................................  90
13.4     Review of Appeal..................................................  90
13.5     Designation.......................................................  91

                                  ARTICLE XIV
                                  Amendments

14.1     Right to Amend....................................................  91
14.2     Limitations.......................................................  91
14.3     Amendment to Vesting Schedule.....................................  91

                                  ARTICLE XV
                                  Termination

15.1     Right to Terminate................................................  92
15.2     Full Vesting on Termination.......................................  92
15.3     Partial Termination...............................................  93
15.4     Distribution on Termination.......................................  93
15.5     Affect on Benefits................................................  95

                                  ARTICLE XVI
                                 Miscellaneous

16.1     IRS Approval......................................................  95
16.2     No Assignment.....................................................  95
</TABLE>
<PAGE>

                                     -vi-

<TABLE>
<S>                                                                        <C>
16.3     Merger..........................................................  96
16.4     Governing Law...................................................  96
16.5     Construction....................................................  96
16.6     Company Determinations..........................................  97
16.7     Counterpart Originals...........................................  97
16.8     Affect on Employment Rights.....................................  97
</TABLE>
<PAGE>

                  UNITED RENTALS, INC. 401(k) INVESTMENT PLAN

                                   ARTICLE I
                           Establishment of the Plan
                           -------------------------

     1.1  Restatement of Plan.  United Rentals, Inc., a Delaware corporation
          -------------------
(the "Company"), does hereby amend, restate and continue this Plan to provide
retirement benefits for Employees (or their Beneficiaries in the event that an
Employee dies before retirement).  The Plan was originally established,
effective January 1, 1998, through the adoption of the Special Prototype Defined
Contribution Plan (Base Plan Document #03) sponsored by Merrill Lynch, Pierce,
Fenner & Smith, Incorporated (Letter Serial Number D359287b; National Office
letter dated 6/29/93).  The Plan was subsequently amended and restated effective
May 1, 1998.  In accordance with the provisions of section 11.1.2 of the
prototype plan, by adopting this Plan, the Company will no longer participate in
the prototype plan and will be considered to have an individually designed plan
under section 401(a) of the Code.

     1.2  Restatement of Trust.  To implement the provisions of this Plan, the
          --------------------
Trustees do hereby amend, restate and continue, as an individually designed
trust, the prototype trust adopted as part of the Special Prototype Defined
Contribution Plan sponsored by Merrill Lynch, Pierce, Fenner & Smith,
Incorporated, adopted by the Company on May 18, 1998, to receive, invest and
distribute contributions and earnings thereon.  The Trust, as established
hereunder, shall be the sole source of benefits under the Plan and the Employer
shall not have any liability for the adequacy of the benefits provided under the
Plan.

     1.3  Effective Date.  This Plan and the accompanying Trust shall be
          --------------
effective as of May 1, 1998, except as otherwise stated herein.
<PAGE>

                                      -2-

     1.4  Name and Designation.  The name of the Plan is the United Rentals,
          --------------------
Inc. 401(k) Investment Plan.  The name of the Trust is the United Rentals, Inc.
401(k) Investment Trust.  The Plan is a defined contribution, discretionary
profit sharing plan/401(k) plan.

     1.5  Withdrawal of Affiliated Companies.
          ----------------------------------

          (a)  An Affiliated Company's adoption of this Plan may be terminated,
voluntarily or involuntarily, at any time, as provided in this section.

          (b)  An Affiliated Company shall withdraw from the Plan and Trust if
the Plan and Trust, with respect to that Affiliated Company, fail to qualify
under sections 401(a) and 501(a) of the Code (or, in the opinion of the
Trustees, they may fail to so qualify) and the continued sponsorship of that
Affiliated Company may jeopardize the status, with respect to the Employer, of
the Plan and Trust under sections 401 and 501(a) of the Code.  An Affiliated
Company that no longer qualifies as an Affiliated Company shall withdraw from
the Plan and Trust if so directed by the Administrator.  The Affiliated Company
shall receive at least thirty (30) days prior written notice of a withdrawal
under this subsection, unless a shorter period is agreed to.

          (c)  An Affiliated Company may voluntarily withdraw from the Plan and
Trust for any reason.  Such withdrawal requires at least thirty (30) days
written notice to the Administrator and the Trustees, unless a shorter period is
agreed to.

          (d)  Upon withdrawal, the Trustees shall segregate the assets
attributable to Employees of the withdrawn Affiliated Company, the amount
thereof to be determined by the Administrator and the Trustees.  The segregated
assets shall be held, paid to another trust, distributed or otherwise disposed
of as is appropriate under the
<PAGE>

                                      -3-

circumstances; provided, however, that any transfer shall be for the exclusive
benefit of Participants and their Beneficiaries. A withdrawal of an Affiliated
Company from the Plan is not necessarily a termination under ARTICLE XV. If the
withdrawal is a termination then the provisions of ARTICLE XV shall also be
applicable.

                                  ARTICLE II
                                  Definitions
                                  -----------

     2.1  Account.  The individual bookkeeping account established for each
          -------
Participant, as provided in section 5.1.

     2.2  Administrator.  The person, persons, corporation, committee, group or
          -------------
organization designated to be the  Administrator of the Plan and to perform the
duties of the Administrator.

     2.3  Affiliated Company.  Any corporation or other entity that, together
          ------------------
with the Company, constitutes a member of a controlled group within the meaning
of sections 414(b) or (c) of the Code, constitutes a member of an affiliated
service group, within the meaning of section 414(m) of the Code, or constitutes
any other entity required to be aggregated under section 414(o) of the Code.
All such entities, whether or not incorporated, shall be treated as a single
employer to the extent required by the Code.

     2.4  Beneficiary.  The person or persons (including a trust or trusts) who
          -----------
are entitled to receive benefits from a deceased Participant's Account after
such Participant's death (whether or not such person or persons are expressly so
designated by the Participant).

     2.5  Board.  The board of directors of the Company.
          -----
<PAGE>

                                      -4-

     2.6  Break in Service.
          ----------------

          (a)  A twelve (12) consecutive month period commencing on a
Participant's Termination of Employment (and subsequent anniversaries thereof)
during which the Participant does not perform any Hours of Service.

          (b)  (1)  In computing Hours of Service to determine whether a person
has a Break in Service, a person shall be credited with up to five hundred one
(501) Hours of  Service based on the person's previous customary service with
the Employer for any period of absence from work as a result of:

                    (A)  the pregnancy of such person;

                    (B)  the birth of a child of such person;

                    (C)  the placement of a child with such person in connection
with the adoption of such child by such person; or

                    (D)  the caring for such child for a period beginning
immediately following such birth or placement.

               (2)  If the previous customary service cannot be determined, then
such credit shall be at the rate of eight (8) Hours of Service per day.

          (c)  The Hours of Service credited under subsection (b) shall be
credited in the Vesting Computation Period in which the absence from work
begins, if the person would be prevented from having a Break in Service in such
Vesting Computation Period solely because of the Hours of Service credited under
subsection (b).  If the person would not be prevented from having a Break in
Service during the period described in the
<PAGE>

                                      -5-

preceding sentence, then such Hours of Service shall be credited in the Vesting
Computation Period immediately following those in which such absence from work
begins.

          (d)  No credit shall be given under subsection (b) unless such person
furnishes the Administrator with information necessary to establish that the
absence is for one of the reasons enumerated in subsection (b) and the number of
days of such absence.

     2.7  Code.  The Internal Revenue Code of 1986, as amended.
          ----

     2.8  Company.  United Rentals, Inc., a Delaware corporation.
          -------

     2.9  Compensation.
          ------------

          (a)  All of the wages as defined in section 3401(a) of the Code (for
purposes of income tax withholding at the source), but determined without regard
to any rules that limit the remuneration included in wages based on the nature
or location of the employment or the services performed.  This definition shall
be interpreted in a manner consistent with the requirements of section 414(s) of
the Code.

          (b)  Compensation as defined in subsection (a) shall exclude the
following items (even if includable in gross income):

               (1)  reimbursements or other expense allowances;

               (2)  fringe benefits (cash and noncash);

               (3)  moving expenses;
<PAGE>

                                      -6-

               (4)  deferred compensation;

               (5)  welfare benefits; and

               (6)  stock options.

          (c)  Compensation as defined in subsection (a) shall include
(notwithstanding subsection (b)) the following:

               (1)  elective contributions that are made by the Employer on
behalf of its Employees that are not includable in income under section 125,
section 402(a)(8), section 402(h), or section 403(b);

               (2)  Compensation deferred under an eligible deferred
compensation plan within the meaning of section 457(b); and

               (3)  Employee contributions (under governmental plans) described
in section 414(h)(2) that are picked up by the employing unit and thus are
treated as employer contributions.

               (4)  Bonuses and commissions.

          (d)  The Compensation of each Employee for any year shall not exceed
one hundred fifty thousand dollars ($150,000); provided, however, that this
limit shall be adjusted in the same manner and at the same time as under section
415(d) of the Code, in accordance with regulations under section 401(a)(17) of
the Code.  Compensation for Highly Compensated Employees shall be determined in
accordance with the provisions of section 2.21.
<PAGE>

                                      -7-

           (e)  Unless otherwise indicated herein, Compensation shall be
determined only on the basis of amounts paid during the Plan Year, including any
Plan Year with a duration of fewer than twelve (12) months.

     2.10  Credited Service.
           ----------------

           (a)  An Employee's elapsed period of employment from the Employee's
Employment Commencement Date to the Employee's Termination of Employment,
subject to the adjustments specified in this section.  In computing Credited
Service, all periods of employment with an Affiliated Company and a Prior
Employer shall be included.

           (b)  If an Employee performs any Hours of Service within the twelve
(12) months following such Employee's Termination of Employment, then the period
from such Termination of Employment to the performance of the Hour of Service
shall also be treated as a period of Credited Service.

           (c)  If an Employee has periods of Credited Service that are not
consecutive, all such periods of Credited Service (whether or not consecutive)
shall be aggregated to determine the person's Credited Service.

     2.11  Effective Date.  May 1, 1998.
           --------------

     2.12  Elective Deferrals.  Contributions by Participants to the Trust that
           ------------------
are made in accordance with section 4.4 and that qualify for treatment under
section 401(a)(8) of the Code.  An Employee's election to make Elective
Deferrals  may be made only with respect to an amount that the Employee could
otherwise elect to receive in cash and that is not currently available to the
Employee.
<PAGE>

                                      -8-

     2.13  Employee.  Except to the extent otherwise provided herein, any person
           --------
employed by an Employer, who is expressly so designated as an Employee on the
books and records of the Employer, and who is treated as such by the Employer
for federal employment tax purposes.  Any person who, after the close of a Plan
Year, is retroactively treated by the Employer or any other party as an Employee
for such prior Plan Year shall not, for purposes of the Plan, be considered an
Employee for such prior Plan Year unless expressly so treated as such by the
Employer.  Before January 1, 1999, the term "Employee" shall only include
individuals who have attained age twenty-one (21) and who are regularly
scheduled to work at least thirty-five (35) hours per week.  On and after
January 1, 1999, "Employee" shall only include individuals who have attained age
twenty-one (21) and are regularly scheduled to work at least thirty (30) hours
per week.

     2.14  Employer.  The Company, any Affiliated Company, and any other entity
           --------
that has adopted the Plan and is listed on Appendix A attached hereto.

     2.15  Employer Contribution. Any contributions by the Employer to the Trust
           ---------------------
(other than Qualified Nonelective Contributions or Qualified Matching
Contributions) as set forth in ARTICLE IV.

     2.16  Employment Commencement Date.  The day on which an Employee first
           ----------------------------
performs an Hour of Service.

     2.17  Entry Dates.  The first day of the month following the date an
           -----------
Employee meets the eligibility requirements.

     2.18  ERISA.  The Employee Retirement Income Security Act of 1974, as
           -----
amended.
<PAGE>

                                      -9-

     2.19  Fiduciary.  Any person who exercises any discretionary authority or
           ---------
discretionary control over the management of the Plan, or exercises any
authority or control respecting management or disposition of Plan assets; who
renders investment advice for a fee or other compensation, direct or indirect,
as to assets held under the Plan, or has any authority or discretionary
responsibility in the administration of the Plan.  This definition shall be
interpreted in accordance with section 3(21) of ERISA.

     2.20  Fiscal Year.  The taxable year of the Company for federal income tax
           -----------
purposes.  Such taxable year, at the time of the Effective Date of this Plan,
shall be the twelve (12) month period beginning on January 1 and ending on
December 31.

     2.21  Highly Compensated Employee
           ---------------------------

           (a) Any Employee who:

               (1)  is a five percent (5%) owner at any time during the Plan
Year or the preceding Plan Year; or

               (2)  for the preceding Plan Year received Compensation in excess
of the amount specified in section 414(q)(1)(B)(i) of the Code.

          (b)  Former Employees will be treated as Highly Compensated Employees
if the former Employee was a Highly Compensated Employee at the time of his or
her separation from service or the former Employee was a Highly Compensated
Employee at any time after attaining age fifty-five (55).

          (c)  The dollar amounts incorporated under subsection (a)(2)(A) shall
be adjusted as provided in section 414(q)(1) of the Code.
<PAGE>

                                      -10-

          (d)  For purposes of this section, the term "Compensation" means
compensation as defined under section 415(c)(3) of the Code.

          (e)  This section shall be interpreted in a manner consistent with
section 414(q) of the Code and the regulations thereunder and shall be
interpreted to permit any elections permitted by such regulations to be made.

     2.22  Hour of Service.
           ---------------

           (a) Any hour for which an Employee is directly or indirectly paid (or
entitled to payment) by an Employer for the performance of duties as an
Employee, as determined from the appropriate records of the Employer.

           (b) In computing Hours of Service, an Employee shall also be credited
with Hours of Service based on the person's previous customary service with the
Employer (not exceeding either eight (8) hours per day or forty (40) hours per
week), for the following periods:

               (1)  periods (limited to a maximum of five hundred one (501)
hours for any single, continuous period) for which the Employee is directly or
indirectly paid for reasons other than the performance of duties, such as
vacation, holiday, sickness, disability, layoff, jury duty or military duty;

               (2)  periods for which any federal law requires that credit for
service be given; and

               (3)  periods for which back pay (irrespective of mitigation of
damages) is either awarded or agreed to by the Employer.
<PAGE>

                                      -11-

           (c)  The provisions of subsection (b) shall be further limited to
prevent duplication by only permitting an Employee to receive credit for one (1)
Hour of Service for any given hour.

           (d)  Hours of Service shall be computed and credited in accordance
with the Department of Labor regulations under section 2530.200b.

           (e)  Service with a Prior Employer shall be credited as if it were
service with an Employer for purposes of determining an Employee's Hours of
Service.  This subsection (e) shall only apply to individuals who are Employees
on or after January 1, 1999.

     2.23  Matching Contributions.  The contributions by the Employer to the
           ----------------------
Trust that are allocated to a Participant's Account by reason of the
Participant's Elective Deferrals.

     2.24  Net Profits.  The current and accumulated net profits of the Employer
           -----------
before deducting federal and state income taxes (and the Matching Contribution
under this Plan) as computed by the Employer in accordance with generally
accepted accounting principles.  Net Profits shall not include any extraordinary
nonrecurring payments or settlements received by the Employer.

     2.25  Normal Retirement Age.  The date upon which a Participant attains age
           ---------------------
sixty-two (62).

     2.26  Participant.  A person who has been admitted as a Participant in the
           -----------
Plan under ARTICLE III and who has not received a distribution of all the funds
credited to his or her Account (or had such funds fully forfeited).  In the case
of an eligible Employee who makes a Rollover Contribution to the Plan under
section 4.5 prior to
<PAGE>

                                      -12-

becoming a Participant, such Employee shall, until he or she becomes a
Participant under ARTICLE III, be considered a Participant for the limited
purposes of maintaining and receiving his or her Rollover Contribution
subaccount under the terms of the Plan.

     2.27  Plan.  The United Rentals, Inc. 401(k) Investment Plan, including any
           ----
amendments thereto.

     2.28  Plan Year. The annual twelve (12) month period beginning on the first
           ---------
day of January and ending on December 31.

     2.29  Prior Employer.  An entity in which the Company or an Affiliated
           --------------
Company acquired a controlling interest through the purchase of stock or other
equitable interest, acquired substantially all of the assets used by such entity
in a separate trade or business, or merged into the Company or an Affiliated
Company.  For this purpose, an entity shall be considered to be a Prior Employer
with respect to a Participant only if the Participant was employed by the entity
immediately before the Transaction Date and became an Employee within a
reasonable period of time after the Transaction Date.

     2.30  Qualified Matching Contributions.  Matching contributions which,
           --------------------------------
pursuant to the election made by the Employer, and in accordance with Code
section 401(m), are nonforfeitable when made and subject to the limitation on
distributions set forth in the definition of Qualified Nonelective
Contributions.

     2.31  Qualified Military Service.  Any period of duty on a voluntary or
           --------------------------
involuntary basis in the United States Armed Forces, the Army National Guard and
the Air National Guard when engaged in active duty for training, inactive duty
for training or full-time National Guard duty, the commissioned corps of the
Public Health Service and any other category of persons designated by the
President of the United States in time of war or emergency.  Such periods of
duty shall include active duty, active duty for
<PAGE>

                                      -13-

training, initial active duty for training, inactive duty training, full-time
National Guard duty and absence from employment for an examination to determine
fitness for such duty.

     2.32  Qualified Nonelective Contributions. Any contribution by the Employer
           -----------------------------------
to the Trust pursuant to section  4.1(b).  Qualified Nonelective Contributions
are one hundred percent (100%) vested when made and are distributable as
provided herein, but in no event before the earlier of:

           (a) the Participant's Termination of Employment, death or Total and
Permanent Disability;

           (b) the Participant's attainment of age fifty-nine and one-half (59
1/2);

           (c) the termination of the Plan without establishment or maintenance
of another defined contribution plan (other than an employee stock ownership
plan);

           (d) the disposition of substantially all of the assets used by the
Employer in a trade or business of the Employer but only with respect to an
Employee who continues employment with the entity acquiring such assets; or

           (e) the disposition of the Employer's interest in a subsidiary, but
only with respect to an Employee who continues employment with such subsidiary.

     2.33  Rollover Contributions.  A transfer that qualifies under either
           ----------------------
section 402(c), section 403(a)(4) or section 408(d)(3)(A)(ii) of the Code.

     2.34  Termination of Employment.  The earlier of:
           -------------------------
<PAGE>

                                      -14-

           (a) the date on which a Participant retires, is discharged or dies as
an Employee of the Employer; or

           (b) the first anniversary of the date on which a Participant
commenced to be absent from service as an Employee of the Employer if the
absence is for any reason not specified in subsection (a), above.

     2.35  Total and Permanent Disability.  Any medically determinable physical
           ------------------------------
or mental disorder that renders a Participant incapable of continuing in the
employment of the Employer and is expected to continue for a period not less
than twelve (12) months.

     2.36  Transaction Date.  The closing date of an acquisition of a Prior
           ----------------
Employer.

     2.37  Trust.  The United Rentals, Inc. 401(k) Investment Trust, including
           -----
any amendments thereto.

     2.38  Trustees. The Trustee (or Trustees) under United Rentals, Inc. 401(k)
           --------
Investment Trust as may be designated from time to time by the Company in
accordance with the provisions of the Trust.

     2.39  Valuation Date.  The Plan shall use daily valuations.
           --------------

     2.40  Vesting Computation Period.  The Plan Year.
           --------------------------

     2.41  Year of Credited Service.  A period of Credited Service that equals
           ------------------------
three hundred sixty-five (365) days.  All lesser periods of Credited Service are
disregarded in determining a Participant's Years of Credited Service.
<PAGE>

                                      -15-

                                  ARTICLE III
                                  Eligibility
                                  -----------

     3.1  Participation.
          -------------

          (a)  Except as described in subsections (b), (c), (d), (e) and (f)
below, each Employee and any person who subsequently becomes an Employee shall
become a Participant on the first day of the month coincident with or next
following the Employee's six- (6) month anniversary of his or her Employment
Commencement Date and attainment of age twenty-one (21).

          (b)  Each individual who had attained age twenty-one (21) and (i) who
was an Employee on or before March 31, 1998 or (ii) who became an Employee in
connection with the acquisition of a Prior Employer that had a Transaction Date
on or before March 31, 1998, shall be entitled to become a Participant in the
Plan as of May 1, 1998.

          (c)  Any individual who has attained age twenty-one (21) and who
became an Employee in connection with the acquisition of a Prior Employer that
had a Transaction Date on or after April 1, 1998, shall be entitled to become a
Participant in the Plan as of the first day of the month following the date
which is thirty (30) days after the Transaction Date.

          (d)  If an Employee who has satisfied the participation requirements
fails to become a Participant due to a separation from employment but
subsequently becomes an Employee again without having a Break in Service, then
such Employee shall, on reemployment by the Employer, immediately become a
Participant.
<PAGE>

                                      -16-

          (e)  A Participant who has a Termination of Employment and, subsequent
to the Termination of Employment, again becomes an Employee, shall be reinstated
as a Participant as of the date of reemployment subsequent to the Termination of
Employment.

          (f)  If an Employee who is eligible to participate in the Plan does
not join the Plan when he or she is first eligible to join, then such Employee
may subsequently join the Plan, but only as of the first day of a calendar
quarter. Such Employee must submit a salary reduction election form to the Plan
Administrator at least ten (10) days before the first payroll period beginning
on or after the first day of a calendar quarter.

     3.2  Exclusions from Eligibility.
          ---------------------------

          (a)  Any person described in subsection (b) of this section shall not
be eligible to become a Participant, notwithstanding the provisions of section
3.1.  Any person who ceases to be described in subsection (b) of this section
shall thereafter be eligible to become a Participant in accordance with the
requirements of section 3.1.

          (b)  A person shall be excluded from eligibility to become a
Participant if:

               (1)  such person is described in section 3.3 or is a person who
performs services for the Employer but is not hired as an Employee;

               (2)  such person is included in a unit of Employees covered by an
agreement that the Secretary of Labor finds to be a collective bargaining
agreement between Employee representatives and the Employer, if there is
evidence that retirement
<PAGE>

                                      -17-

benefits were the subject of good faith bargaining between such Employee
representatives and the Employer; or

               (3)  such person is a nonresident alien who received no earned
income from the Employer which constitutes income from sources within the Untied
States.
               (4)  such person was hired by the Company or an Affiliated
Company to work on a temporary basis.

     3.3  Leased Employees.
          ----------------

          (a)  If an Employer receives the services of a Leased Employee, such
Leased Employee shall, for purposes of this section, be treated as an Employee
in accordance with the provisions of section 414(n) of the Code.

          (b)  If the Employer receives the services of Leased Employees who
comprise less than twenty percent (20%) of the Employer's Non-Highly Compensated
Work Force, then, for purposes of subsections (c)(1)(A) and (c)(1)(B), section
3.3 shall not apply to such Leased Employees if they are covered by a money
purchase pension plan sponsored by the leasing organization that provides (1)
immediate participation, (2) a nonintegrated employer contribution of at least
ten percent (10%) of such person's compensation and (3) full and immediate
vesting.

          (c)  The following terms shall have the meanings specified:

               (1)  Leased Employee.  Any person who is not an Employee of the
                    ---------------
Employer and who provides services to the Employer if:
<PAGE>

                                      -18-

                    (A)  such services are provided pursuant to an agreement
between the Employer and the leasing organization; and

                    (B)  such person has performed such services for the
Employer on a substantially full-time basis for a period of at least one (1)
year; and

                    (C)  such services are performed under the primary direction
or control of the Employer.

               (2)  Non-Highly Compensated Work Force.  The aggregate number of
                    ---------------------------------
individuals (other than Highly Compensated Employees) who are:

                    (A)  Employees of the Employer (other than Leased Employees)
who have performed services for the Employer on a substantially full-time basis
for a period of at least one (1) year; and

                    (B)  Leased Employees.

     3.4  Treatment of Qualified Military Service.  Notwithstanding any
          ---------------------------------------
provision of this Plan to the contrary, contributions, benefits and service
credit with respect to Qualified Military Service will be provided in accordance
with section 414(u) of the Code.

                                  ARTICLE IV
                                 Contributions
                                 -------------

     4.1  Employer Contributions.
          ----------------------

          (a)  Matching Contributions.  For the Plan Year commencing May 1, 1998
               ----------------------
and each Plan Year thereafter, the Employer shall contribute to the Trust
Matching
<PAGE>

                                      -19-

Contributions in such amounts (if any) and at such times as determined by the
Employer in its sole discretion. If the Employer decides to make Matching
Contributions for a Plan Year, the Employer shall also specify the percentage of
each Participant's Elective Deferrals that will be matched by such Matching
Contribution and any other limits on the amount of Matching Contributions that
will be made.

          (b)  Qualified Nonelective Contributions.  Each Plan Year the Employer
               -----------------------------------
may contribute to the Trust such amounts as determined by the Employer in its
sole discretion.  Any amounts contributed under this subsection are to be
designated by the Employer as Qualified Nonelective Contributions.

          (c)  Qualified Matching Contributions. Each Plan Year the Employer may
               --------------------------------
contribute to the Trust such amounts as determined by the Employer in its sole
discretion.  Any amounts contributed under this subsection are to be designated
by the Employer as Qualified Matching Contributions.

     4.2  Payment.
          -------

          (a)  Except as otherwise provided herein, the Employer shall pay to
the Trustees in U.S. currency, or by other property acceptable to the Trustees,
all Employer Contributions, Qualified Nonelective Contributions and Qualified
Matching Contributions for each Fiscal Year within the time prescribed by law,
including extensions granted by the Internal Revenue Service for filing its
federal income tax return for such Fiscal Year.

          (b)  Elective Deferrals shall be paid over to the Trust within the
time prescribed by ERISA.
<PAGE>

                                      -20-

          (c)  Qualified Nonelective Contributions and Qualified Matching
Contributions made under sections 4.1(b) and 4.1(c), respectively, shall be paid
to the Trust at such time or times during or after a Plan Year as the Employer
determines.

     4.3  Company Determination.  The Board shall act on behalf of the Employers
          ---------------------
and shall determine the amount of all contributions to be made to the Trust
under the terms of the Plan.  The Board's determination of the Employer
Contributions, Qualified Nonelective Contributions and Qualified Matching
Contributions shall be final, conclusive and binding on all Participants, the
Trustees and other parties.  The Trustees shall have no right or duty to inquire
into the amount of the Employer Contribution, Qualified Nonelective
Contributions or Qualified Matching Contributions or the method used in
determining the amounts thereof.

     4.4  Elective Deferrals.
          ------------------

          (a)  A Participant may make voluntary Elective Deferrals to the Trust
in each Plan Year pursuant to and in accordance with the Plan and such rules as
the Administrator may establish from time to time.  A Participant's Elective
Deferrals may not exceed fifteen percent (15%) of such Participant's
Compensation.  Elective Deferrals shall be fully vested and nonforfeitable.

          (b)  (1)  Notwithstanding anything contained herein to the contrary,
the Elective Deferrals of a Participant shall be limited in accordance with the
provisions of this section, section 4.8 and any other applicable provisions of
the Plan.  The Administrator may refuse to accept any or all prospective
Elective Deferrals to be contributed by a Participant.

               (2)  The aggregate Elective Deferrals of a Participant for any
taxable year of that Participant shall be limited to ten thousand dollars
($10,000), with
<PAGE>

                                      -21-

such amount adjusted for cost-of-living to the extent permitted under sections
402(g)(5) and 415(d) of the Code. The foregoing limit in this paragraph shall be
reduced for a Participant to the extent such Participant in such year makes
elective deferrals (as defined in section 402(g)(3) of the Code) to any other
plan.

               (3)  Elective Deferrals shall not be permitted to the extent they
would cause the Annual Additions to exceed the limits specified in ARTICLE X.

          (c)  Elective Deferrals shall be collected by the Company by a
reduction in Compensation in accordance with rules that the Administrator may
establish from time to time.  Any amounts so collected shall be transmitted to
the Trustees as soon as administratively feasible, but no later than the
fifteenth (15/th/) business day of the month following the month in which the
Elective Deferrals would otherwise have been payable to the Participant in cash.
Participants may change the amounts designated to be deducted as follows:

               (1)  Complete discontinuance of Elective Deferrals may be made at
any time and will be effective as of the first payroll period beginning after
the Administrator receives the completed forms from the Participant.

               (2)  Any other changes in Elective Deferrals (including
reactivating discontinued Elective Deferrals) shall only be permitted as of the
first business day of each calendar quarter and will be effective as of the
first administratively feasible payroll period beginning thereafter.

          (d)  If Elective Deferrals are made by a Participant in excess of the
limits in subsection (b)(2) of this section, then such excess (together with any
earnings thereon) may, in the Administrator's sole discretion, be  distributed
to such Participant in
<PAGE>

                                      -22-

accordance with section 402(g)(2) of the Code. The Administrator may make any
special allocations of earnings or other amounts necessary to carry out such
distribution.

          (e)  Elective Deferrals by a Participant who has received a hardship
distribution under section 9.2 shall be limited to the extent necessary to
satisfy those requirements.

     4.5  Rollover Contributions.
          ----------------------

          (a)  Rollover Contributions may be made to the Plan in accordance with
the provisions of this section.

          (b)  The Administrator shall accept any Rollover Contribution if, in
its sole discretion, it determines that acceptance of such Rollover Contribution
will not jeopardize the exempt status of the Plan or Trust.

          (c)  An individual making a Rollover Contribution shall be entitled to
have it invested and may withdraw it as provided in the Plan.  Distributions of
amounts attributable to Rollover Contributions shall be made in the same manner
as distributions of other amounts credited to such Participant under the Plan.

          (d)  A Rollover Contribution will not be accepted unless (i) the
individual on whose behalf the Rollover Contribution will be made is either a
Participant or an eligible Employee who has notified the Administrator that he
or she intends to become a Participant as of the first day on which he or she is
eligible therefor, and (ii) all required information, including selection of
specific investment accounts, is provided to the Administrator.
<PAGE>

                                      -23-

     4.6  Restored Contributions.
          ----------------------

          (a)  A Participant who (i) receives a distribution of the vested
portion of his or her Account under section 6.5 (due to a Termination of
Employment), and  (ii) again becomes a Participant in accordance with section
3.1(e) without having had five (5) consecutive Breaks in Service since such
distribution, shall have the right to repay the full amount of the distribution
received under section 6.5.  Such repayment shall be made to the Administrator.

          (b)  If a Participant makes a repayment under subsection (a), such
Participant's Account shall be restored to the full amount of the Account
balance that existed at the time the distribution referred to in subsection (a)
was made.  Such restoration may, in the Administrator's sole discretion, be made
from Employer Contributions, forfeitures or Trust earnings, and shall be treated
as a special allocation that supersedes the normal allocation rules in ARTICLE
V.

     4.7  Direct Transfers.
          ----------------

          (a)  The Plan shall accept a transfer of assets directly from another
plan qualified under section 401(a) of the Code only if the Administrator, in
its sole discretion, agrees to accept such a transfer.  In determining whether
to accept such a transfer, the Administrator shall consider the administrative
inconvenience engendered by such a transfer and any risks to the continued
qualification of the Plan under section 401(a) of the Code.  Acceptance of any
such transfer shall not preclude the Administrator from refusing any such
subsequent transfers.

          (b)  Any transfer of assets accepted under this section shall be
separately accounted for at all times and shall remain subject to the provisions
of the transferor plan (as it existed at the time of such transfer) to the
extent required by section
<PAGE>

                                      -24-

411(d)(6) of the Code (including, but not limited to, any rights to qualified
joint and survivor annuities and qualified preretirement survivor annuities) as
if such provisions were part of the Plan. In all other respects, however, such
transferred assets will be subject to the provisions of the Plan.

          (c)  Assets accepted under this section shall be fully vested and
nonforfeitable.

     4.8  Limits for Highly Compensated.
          -----------------------------

          (a)  Elective Deferrals, Company Contributions and Qualified
Nonelective Contributions allocable to the Accounts of Highly Compensated
Employees shall not in any Plan Year exceed the limits specified in this
section.  The Administrator may make the adjustments authorized in this section
to ensure that the limits of subsection (b) (or any other applicable limits) are
not exceeded, regardless of whether such adjustments affect some Participants
more than others.  This section shall be administered and interpreted in
accordance with sections 401(k) and 401(m) of the Code.

          (b)  (1)  The Actual Deferral Percentage of the Highly Compensated
Employees shall not exceed, in any Plan Year, the greater of:

                    (A)  one hundred twenty-five percent (125%) of the Actual
Deferral Percentage for all other Eligible Participants; or

                    (B)  the lesser of two hundred percent (200%) of the Actual
Deferral Percentage for all other Eligible Participants or the Actual Deferral
Percentage for the other Eligible Participants plus two (2) percentage points.
<PAGE>

                                      -25-

               (2)  The Actual Contribution Percentage of the Highly Compensated
Employees shall not exceed, in any Plan Year, the greater of:

                    (A)  one hundred twenty five percent (125%) of the Actual
Contribution Percentage for all other Eligible Participants; or

                    (B)  the lesser of two hundred percent (200%) of the Actual
Contribution Percentage for all other Eligible Participants or the Actual
Contribution Percentage for the other Eligible Participants plus two (2)
percentage points.

               (3)  The sum of the Actual Deferral Percentage and the Actual
Contribution Percentage for the Highly Compensated Employees shall not exceed,
in any Plan Year, the sum of:

                    (A)  one hundred twenty-five percent (125%) of the greater
of:

                         (i)   the Actual Deferral Percentage of the other
Eligible Participants; or

                         (ii)  the Actual Contribution Percentage of the other
Eligible Participants; and

                    (B)  two plus the lesser of:

                         (i)   the amount in paragraph (3)(A)(i); or
<PAGE>

                                      -26-

                         (ii)  the amount in paragraph (3)(A)(ii); provided that
the amount in this paragraph (3)(B) shall not exceed two hundred percent (200%)
of the lesser of the amount in paragraph (3)(A)(i) or the amount in paragraph
(3)(A)(ii).

               (4)  The limitations under section 4.8(b)(3) shall be modified to
reflect any higher limitations provided by the Internal Revenue Service under
regulations, notices or other official statements.

          (c)  The following terms shall have the meanings specified:

               (1)  Actual Contribution Percentage. The average of the ratios
                    ------------------------------
for a designated group of Employees (calculated separately for each Employee in
the group) of the sum of the Company Contributions (other than those treated as
part of the Actual Deferral Percentage), Qualified Nonelective Contributions
(other than those treated as part of the Actual Deferral Percentage), Employee
Contributions and Elective Deferrals (other than those treated as part of the
Actual Deferral Percentage) allocated for the applicable year on behalf of the
Participant, divided by the Participant's Compensation for such applicable year.
The "applicable year" for determining the Actual Contribution Percentage for the
group of Highly Compensated Employees shall be the current Plan Year. For all
other Eligible Participants, the "applicable year" for determining the Actual
Contribution Percentage shall be the immediately preceding Plan Year, unless in
accordance with the procedures prescribed by the Internal Revenue Service, the
Administrator elects to use the current Plan Year.

               (2)  Actual Deferral Percentage.  The average of the ratios for a
                    --------------------------
designated group of Employees (calculated separately for each Employee in the
group) of the sum of the Elective Deferrals, Qualified Nonelective Contributions
and Company Contributions (that the Company elects to have treated as part of
the Actual Deferral Percentage) allocated for the applicable year on behalf of a
Participant, divided by the
<PAGE>

                                      -27-

Participant's Compensation for such applicable year. The "applicable year" for
determining the Actual Deferral Percentage for the group of Highly Compensated
Employees shall be the current Plan Year. For all other Eligible Participants,
the "applicable year" for determining the Actual Deferral Percentage shall be
the immediately preceding Plan Year, unless in accordance with the procedures
prescribed by the Internal Revenue Service, the Administrator elects to use the
current Plan Year.

               (3)  Compensation. To the extent regulations permit the
                    ------------
definition of Compensation in ARTICLE II to be used, then such definition shall
be applied for purposes of this ARTICLE; provided, however, that to the extent
such definition is not so permitted, then Compensation shall include all
compensation required to be counted under section 414(s) of the Code; provided
further, however, that this definition shall not apply for purposes of the
definition of Highly Compensated Employee in section 2.21.

               (4)  Eligible Participant.  Any Employee of the Company who is
                    --------------------
authorized under the terms of the Plan to make Elective Deferrals or have
Qualified Nonelective Contributions allocated to his or her Account for the Plan
Year.

          (d)  For purposes of determining whether a plan satisfies the Actual
Contribution Percentage test of section 401(m), all Employee and matching
contributions that are made under two (2) or more plans that are aggregated for
purposes of section 401(a)(4) and 410(b) (other than section 410(b)(2)(A)(ii))
are to be treated as made under a single plan and that if two (2) or more plans
are permissively aggregated for purposes of section 401(m), the aggregated plans
must also satisfy section 401(a)(4) and 410(b) as though they were a single
plan.

          (e)  In calculating the Actual Contribution Percentage for purposes of
section 401(m), the actual contribution ratio of a Highly Compensated Employee
will be
<PAGE>

                                      -28-

determined by treating all plans subject to section 401(m) under which the
Highly Compensated Employee is eligible (other than those that may not be
permissively aggregated) as a single plan.

          (f)  For purposes of determining whether a plan satisfies the Actual
Deferral Percentage test of section 401(k), all elective contributions that are
made under two (2) or more plans that are aggregated for purposes of section
401(a)(4) or 410(b) (other than section 410(b)(2)(A)(ii)) are to be treated as
made under a single plan and that if two (2) or more plans are permissively
aggregated for purposes of section 401(k), the aggregated plans must also
satisfy sections 401(a)(4) and 410(b) as though they were a single plan.

          (g)  In calculating the Actual Deferral Percentage for purposes of
section 401(k), the actual deferral ratio of a Highly Compensated Employee will
be determined by treating all cash or deferred arrangements under which the
Highly Compensated Employee is eligible (other than those that may not be
permissively aggregated) as a single arrangement.

          (h)  An elective contribution will be taken into account under the
Actual Deferral Percentage test of section 401(k)(3)(A) of the Code for a Plan
Year only if it is allocated to the Employee as of a date within that Plan Year.
For this purpose, an elective contribution is considered allocated as of a date
within a Plan Year if the allocation is not contingent on participation or
performance of services after such date and the elective contribution is
actually paid to the Trust no later than twelve (12) months after the Plan Year
to which the contribution relates.

          (i)  For purposes of determining whether a plan satisfies the Actual
Contribution Percentage test of section 401(k), all elective contributions that
are made under two (2) or more plans that are aggregated for purposes of section
401(a)(4) or
<PAGE>

                                      -29-

410(b) (other than section 410(b)(2)(A)(ii)) are to be treated as made under a
single plan and that if two or more plans are permissively aggregated for
purposes of section 401(k), the aggregated plans must also satisfy sections
401(a)(4) and 410(b) as though they were a single plan.

     4.9  Correction of Excess Contributions.
          ----------------------------------

          (a)  Excess Contributions shall be corrected as provided in this
section.  The Administrator may also prevent anticipated Excess Contributions as
provided in this section.  The Administrator may use any method of correction or
prevention provided in this section or any combination thereof, as it determines
in its sole discretion.  This section shall be administered and interpreted in
accordance with sections 401(k) and 401(m) of the Code.

          (b)  The Administrator may refuse to accept any or all prospective
Elective Deferrals to be contributed by a Participant.

          (c)  (1)  The Company may, in its sole discretion, elect to
contribute, as provided in section 4.1(b), a Qualified Nonelective Contribution
in an amount necessary to satisfy any or all of the requirements of section 4.8.

               (2)  Qualified Nonelective Contributions for a Plan Year shall
only be allocated to the Accounts of Participants who are not Highly Compensated
Employees. Qualified Nonelective Contributions shall be allocated first to the
Participant with the lowest Compensation for that Plan Year and any remaining
Qualified Nonelective Contributions thereafter shall be allocated to the
Participant with the next lowest Compensation for that Plan Year. This
allocation method shall continue in ascending order of Compensation until all
such Qualified Nonelective Contributions are allocated. The allocation to any
Participant shall not exceed the limits under section 415
<PAGE>

                                      -30-

of the Code. If two or more Participants have identical Compensation, the
allocations to them shall be proportional.

               (3)  Qualified Nonelective Contributions for a Plan Year shall be
contributed to the Trust within twelve (12) months after the close of such Plan
Year.

               (4)  Qualified Nonelective Contributions shall only be allocated
to Participants who receive Compensation during the Plan Year for which such
contribution is made.

          (d)  The Administrator may, during a Plan Year, distribute to a
Participant (or such Participant's Beneficiary if the Participant is deceased),
any or all Excess Contributions or Excess Deferrals (whether Elective Deferrals,
Company Contributions or Qualified Nonelective Contributions) allocable to that
Participant's Account for that Plan Year, notwithstanding any contrary provision
of the Plan.  Such distribution may include earnings or losses (if any)
attributable to such amounts, as determined by the Administrator.

          (e)  (1)  The Administrator may recharacterize any or all Excess
Contributions for a Plan Year as Employee contributions in accordance with the
provisions of this subsection.  Any Excess Contributions that are so
recharacterized shall be treated as if the Participant had elected to instead
receive cash Compensation on the earliest date that any Elective Deferral made
on behalf of the Participant during the Plan Year would have been received had
the Participant originally elected to receive such amount in cash and then
contributed such amount as an Employee contribution.  To the extent required by
the Internal Revenue Service, however, such recharacterized Excess Contributions
shall continue to be treated as if such amounts were not recharacterized.
<PAGE>

                                      -31-

               (2)  The Administrator shall report any recharacterized Excess
Contributions as Employee contributions to the Internal Revenue Service and to
the affected Participants at such times and in accordance with such procedures
as are required by the Internal Revenue Service.  The Administrator shall take
such other actions regarding the amounts so recharacterized as may be required
by the Internal Revenue Service.

               (3)  Excess Contributions may not be recharacterized under this
subsection more than two and one-half (2 1/2) months after the close of the Plan
Year to which the recharacterization relates.  Recharacterization is deemed to
occur when the Participant is so notified (as required by the Internal Revenue
Service).

               (4)  The amount of Excess Contributions to be distributed or
recharacterized shall be reduced by excess deferrals previously distributed for
the taxable year ending in the same Plan Year and Excess Deferrals to be
distributed for a taxable year will be reduced by Excess Contributions
previously distributed or recharacterized for the Plan beginning in such taxable
year.

          (f)  (1)  The Administrator may distribute any or all Excess
Contributions for a Plan Year in accordance with the provisions of this
subsection.  Such distribution may only occur after the close of such Plan Year
and within twelve (12) months of the close of such Plan Year.  In the event of
the termination of the Plan, such distribution shall be made within twelve (12)
months after such termination.  Such distribution shall include the income
allocable to the amounts so distributed, as determined under this subsection.
The Administrator may make any special allocations of earnings or losses
necessary to carry out the provisions of this subsection.  A distribution of an
Excess Contribution under this subsection may be made without regard to any
notice or consent otherwise required pursuant to sections 411(a)(11) and 417 of
the Code.
<PAGE>

                                      -32-

               (2)  (A)  The income allocable to Excess Contributions
distributed under this subsection shall equal the allocable gain or loss for the
Plan Year.  Income includes all earnings and appreciation, including such items
as interest, dividends, rent, royalties, gains from the sale of property,
appreciation in the value of stock, bonds, annuity and life insurance contracts,
and other property, without regard to whether such appreciation has been
realized.

                    (B)  The allocable gain or loss for the Plan Year may be
determined under any reasonable method consistently applied by the
Administrator. Alternatively, the Administrator may, in its discretion,
determine such allocable gain or loss for the Plan Year under the method set
forth in subparagraph (C).

                    (C)  Under this method, the allocable gain or loss for the
Plan Year is determined by multiplying the income for the Plan Year allocable to
Elective Deferrals (and amounts treated as Elective Deferrals) by a fraction,
the numerator of which is the Excess Contributions by the Participant for the
Plan Year and the denominator of which is the total Account balance of the
Participant attributable to Elective Deferrals (and amounts treated as Elective
Deferrals) as of the beginning of the Plan Year, increased by any Elective
Deferrals (and amounts treated as Elective Deferrals) by the Participant for the
Plan Year.

               (3)  Amounts distributed under this subsection (or other
provisions of this section) shall first be treated as distributions from the
Participant's subaccounts in the following order:

                    (A)  from the Participant's Elective Deferral subaccount (if
such Excess Contribution is attributable to Elective Deferrals);
<PAGE>

                                      -33-

                    (B)  from the Participant's Qualified Nonelective
Contribution subaccount (if such Excess Contribution is attributable to
Qualified Nonelective Contributions); and

                    (C)  from the Participant's Company Contribution subaccount
(if such Excess Contribution is attributable to Company Contributions).

           (g) (1)  The term "Excess Contribution" shall mean, with respect to a
Plan Year, the excess of the Elective Deferrals (including any Qualified
Nonelective Contributions and Matching Contributions that are treated as
Elective Deferrals under sections 401(k)(2) and 401(k)(3) of the Code) on behalf
of eligible Highly Compensated Employees for the Plan Year over the maximum
amount of such contributions permitted under sections 401(k)(2) and 401(k)(3) of
the Code.

               (2)  Any distribution of Excess Contributions for a Plan Year
shall be made to Highly Compensated Employees on the basis of the amount of
contributions by, or on behalf of, each such Highly Compensated Employee.

               (3)  The amount of Excess Contributions to be distributed or
recharacterized shall be reduced by Excess Deferrals previously distributed for
the taxable year ending in the same Plan Year and Excess Deferrals to be
distributed for a taxable year will be reduced by Excess Contributions
previously distributed or recharacterized for the Plan beginning in such taxable
year.

     4.10  Correction of Excess Aggregate Contributions.
           --------------------------------------------

           (a) Excess Aggregate Contributions shall be corrected as provided in
this section.  The Administrator may use any method of correction or prevention
provided in this section or any combination thereof, as it determines in its
sole discretion.  This
<PAGE>

                                      -34-

section shall be administered and interpreted in accordance with sections 401(k)
and 401(m) of the Code.

          (b)  The Administrator may refuse to accept any or all prospective
Elective Deferrals to be contributed to a Participant.

          (c)  (1)  The Company may, in its sole discretion, elect to
contribute, as provided in section 4.1(b), a Qualified Nonelective Contribution
in an amount necessary to satisfy any or all of the requirements of section 4.8.

               (2)  Qualified Nonelective Contributions for a Plan Year shall
only be allocated to the Accounts of Participants who are not Highly Compensated
Employees. Qualified Nonelective Contributions shall be allocated first to the
Participant with the lowest Compensation for that Plan Year and any remaining
Qualified Nonelective contributions thereafter shall be allocated to the
Participant with the next lowest compensation for that Plan Year. This
allocation method shall continue in ascending order of Compensation until all
such Qualified Nonelective Contributions are allocated. The allocation to any
Participant shall not exceed the limits under section 415 of the Code. If two or
more Participants have identical Compensation, the allocations to them shall be
proportional.

               (3)  Qualified Nonelective Contributions for a Plan Year shall be
contributed to the Trust within twelve (12) months after the close of such Plan
Year.

               (4)  Qualified Nonelective Contributions shall only be allocated
to Participants who receive Compensation during the Plan Year for which such
contribution is made.
<PAGE>

                                      -35-

          (d)  The Administrator may, during a Plan Year, distribute to a
Participant (or such Participant's Beneficiary if the Participant is deceased),
any or all Excess Aggregate Contributions allocable to that Participant's
Account for that Plan Year, notwithstanding any contrary provision of the Plan.
Such distribution may include earnings or losses (if any) attributable to such
amounts, as determined by the Administrator.

          (e)  (1)  The Administrator may forfeit any or all Excess Aggregate
Contributions for a Plan Year in accordance with the provisions of this
subsection.  The amounts so forfeited shall not include any amounts that are
nonforfeitable under section 6.5.

               (2)  Any forfeitures under this subsection shall be made in
accordance with the procedures for distributions under subsection (f) except
that such amounts shall be forfeited instead of being distributed.

          (f)  (1)  The Administrator may distribute any or all Excess Aggregate
Contributions for a Plan Year in accordance with the provisions of this
subsection.  Such distribution may only occur after the close of such Plan Year
and within twelve (12) months of the close of such Plan Year.  Such
distributions shall be specifically designated by the Administrator as a
distribution of Excess Aggregate Contributions.  In the event of the complete
termination of the Plan, such distribution shall be made within twelve (12)
months after such termination.  Such distribution shall include the income
allocable to the amounts so distributed, as determined under this subsection.
The Administrator may make any special allocations of earnings or losses
necessary to carry out the provisions of this subsection.  A distribution of an
Excess Aggregate Contribution under this subsection may be made without regard
to any notice or consent otherwise required pursuant to sections 411(a)(11) and
417 of the Code.
<PAGE>

                                      -36-

               (2)  (A)  The income allocable to Excess Aggregate Contributions
distributed under this subsection shall equal the allocable gain or loss for the
Plan Year.  Income includes all earnings and appreciation, including such items
as interest, dividends, rent, royalties, gains from the sale of property,
appreciation in the value of stock, bonds, annuity and life insurance contracts,
and other property, without regard to whether such appreciation has been
realized.

                    (B)  The allocable gain or loss for the Plan Year may be
determined under any reasonable method consistently applied by the
Administrator. Alternatively, the Administrator may, in its discretion,
determine such allocable gain or loss for the Plan Year under the method set
forth in subparagraph (C).

                    (C)  Under this method, the allocable gain or loss for the
Plan Year is determined by multiplying the income for the Plan Year allocable to
employee contributions, matching contributions and amounts treated as matching
contributions by a fraction, the numerator of which is the Excess Aggregate
Contributions for the Participant for the Plan Year and the denominator of which
is the total Account balance of the Participant attributable to employee
contributions, matching contributions and amounts treated as matching
contributions as of the beginning of the Plan Year, increased by the employee
contributions, matching contributions and amounts treated as matching
contributions for the Participant for the Plan Year.

               (3)  Amounts distributed under this subsection (or other
provisions of this section) shall first be treated as distributions from the
Participant's subaccounts in the following order:

                    (A)  from the Participant's Qualified Nonelective
Contribution subaccount (if such Excess Aggregate Contribution is attributable
to Qualified Nonelective Contributions); and
<PAGE>

                                      -37-

                    (B)  from the Participant's Company Contribution subaccount
(if such Excess Aggregate Contribution is attributable to Company
Contributions).

           (g) (1)  The term "Excess Aggregate Contribution" shall mean,
with respect to a Plan Year, the excess of the aggregate amount of the matching
contributions and employee contributions (including any Qualified Nonelective
Contributions or elective deferrals taken into account in computing the Actual
Contribution Percentage) actually made on behalf of eligible Highly Compensated
Employees for the Plan Year over the maximum amount of such contributions
permitted under section 401(m)(2)(A) of the Code.

               (2)  The terms "employee contributions" and "matching
contributions" shall, for purposes of this section, have the meanings set forth
in Treas. Reg. (S)1.401(m)-1(f).

               (3)  Any distribution of Excess Aggregate Contributions for
a Plan Year shall be made to Highly Compensated Employees on the basis of the
amount of contributions by, or on behalf of, each such Highly Compensated
Employee.

     4.11  Correction of Excess Deferrals.
           ------------------------------

           (a) Excess Deferrals shall be corrected as provided in this section.
The Administrator may also prevent anticipated Excess Deferrals as provided in
this section.  The Administrator may use any method of correction or prevention
provided in this section or any combination thereof, as it determines in its
sole discretion.  A distribution of an Excess Deferral under this section may be
made without regard to any notice or consent otherwise required pursuant to
sections 411(a)(11) and 417 of the Code.
<PAGE>

                                      -38-

This section shall be administered and interpreted in accordance with sections
401(k) and 402(g) of the Code.

          (b)  The Administrator may refuse to accept any or all prospective
Elective Deferrals to be contributed by a Participant.

          (c)  (1)  The Administrator may distribute any or all Excess Deferrals
to the Participant on whose behalf such Excess Deferrals were made before the
close of the Applicable Taxable Year.  Distributions under this subsection
include income allocable to the Excess Distribution so distributed, as
determined under this subsection.

               (2)  Distribution under this subsection shall only be made if all
the following conditions are satisfied:

                    (A)  the Participant seeking the distribution designates the
distribution as an Excess Deferral;

                    (B)  the distribution is made after the date the Excess
Deferral is received by the Plan; and

                    (C)  the Plan designates the distribution as a distribution
of an Excess Deferral.

               (3)  The income allocable to the Excess Deferral distributed
under this subsection shall be determined in the same manner as under subsection
(d)(3), except that income shall only be determined for the period from the
beginning of the Applicable Taxable Year to the date on which the distribution
is made.
<PAGE>

                                      -39-

          (d)  (1)  The Administrator may distribute any or all Excess Deferrals
to the Participant on whose behalf such Excess Deferrals were made after the
close of the Applicable Taxable Year.  Distribution under this subsection shall
only be made if the Participant timely provides the notice required under
subsection (d)(2) and such distribution is made after the Applicable Taxable
Year and before the first April 15 following the close of the Applicable Taxable
Year.  Distributions under this subsection shall include income allocable to the
Excess Deferrals so distributed, as determined under this subsection.

               (2)  Any Participant seeking a distribution of an Excess Deferral
in accordance with this subsection must notify the Administrator of such request
no later than the first March 15 following the close of the Applicable Taxable
Year. The Administrator may agree to accept notification received after such
date (but before the first April 15 following the close of the Applicable
Taxable Year) if it determines that it would still be administratively
practicable to make such distribution in view of the delayed notification. The
notification required by this subsection shall be deemed made if a Participant's
Elective Deferrals to the Plan in any Plan Year create an Excess Deferral.

               (3)  The income allocable to the Excess Deferral distributed
under this subsection shall be determined in the same manner as under section
4.9(f)(2), except that the term "Excess Deferrals" shall be substituted for
"Excess Contributions" and the term "Applicable Taxable Year" shall be
substituted for "Plan Year." The Administrator may make any special allocations
of earnings or losses necessary to carry out the provisions of this subsection.

          (e)  The following terms shall have the meanings specified:
<PAGE>

                                      -40-

               (1)  Applicable Taxable Year. The taxable year (for federal
                    -----------------------
income tax purposes) of the Participant in which an Excess Deferral must be
included in gross income (when made) in accordance with section 402(g) of the
Code.

               (2)  Excess Deferral. A Participant's Elective Deferrals (and
                    ---------------
other contributions limited by section 402(g) of the Code), for an Applicable
Taxable Year that are in excess of the limits imposed by section 402(g) of the
Code for such Applicable Taxable Year.

     4.12  Correction of Multiple Use.
           --------------------------

           (a) If the limitations of Treas. Reg. (S)1.401(m)-2 are exceeded for
any Plan Year, then correction shall be made in accordance with the provisions
of this section.  This section shall be administered and interpreted in
accordance with sections 401(k) and 401(m) of the Code.

           (b) Any correction required by this section shall be calculated and
administered in accordance with the provisions for correcting Excess
Contributions (in section 4.9), Excess Aggregate Contributions (in section 4.10)
or both, as the Administrator determines in its sole discretion.  Any correction
required by this section, to the extent possible, shall be made only with
respect to those Highly Compensated Employees who are eligible in both the
arrangement subject to section 401(k) of the Code and the Plan, as subject to
section 401(m) of the Code.

                                   ARTICLE V
                              Individual Accounts
                              -------------------

     5.1   Individual Accounts.  The Administrator shall establish and maintain
           -------------------
an Account in the name of each Participant (and any Beneficiary or other person
entitled to a distribution of retirement benefits from the Trust in  accordance
with the Plan) to which
<PAGE>

                                      -41-

there shall be credited or debited the Participant's share of Elective
Deferrals, Rollover Contributions, Qualified Nonelective Contributions,
Qualified Matching Contributions and Employer Contributions; the Participant's
share of the net earnings or net losses on the investments of the assets of the
Trust; distributions from the Participant's Account; and any expenses or
liabilities charged to the Participant's Account. The Account shall contain the
following subaccounts:

          (a)  a Matching Contribution subaccount to which shall be credited (i)
each such Participant's Matching Contributions made under section 4.1(a); (ii)
the net earnings or net losses attributable to this subaccount from the
investment of the assets of the Trust; (iii) distributions from this subaccount
and (iv) dividends, capital gains distributions and other earnings received on
any shares credited to the Participant's subaccount;

          (b)  a Qualified Nonelective Contribution subaccount to which shall be
credited (i) each such Participant's Qualified Nonelective Contributions made
under section 4.1(b); (ii) the net earnings or net losses attributable to this
subaccount from the investment of the assets of the Trust; (iii) distributions
from this subaccount and (iv) dividends, capital gains distributions and other
earnings received on any shares credited to the Participant's subaccount;

          (c)  a Qualified Matching Contribution subaccount to which shall be
credited (i) each such Participant's Qualified Matching Contributions made under
section 4.1(c); (ii) the net earnings or net losses attributable to this
subaccount from the investment of the assets of the Trust; (iii) distributions
from this subaccount and (iv) dividends, capital gains distributions and other
earnings received on any shares credited to the Participant's subaccount;
<PAGE>

                                      -42-

          (d)  an Elective Deferral subaccount to which shall be credited (i)
each such Participant's Elective Deferrals made under section 4.4; (ii) the net
earnings or net losses attributable to this subaccount from the investment of
the assets of the Trust; (iii) distributions from this subaccount and (iv)
dividends, capital gains distributions and other earnings received on any shares
credited to the Participant's subaccount;

          (e)  a Rollover Contribution subaccount to which shall be credited (i)
each such Participant's Rollover Contributions made under section 4.5; (ii) the
net earnings or net losses attributable to this subaccount from the investment
of the assets of the Trust; (iii) distributions from this subaccount and (iv)
dividends, capital gains distributions and other earnings received on any shares
credited to the Participant's subaccount; and

          (f)  such other items as the Administrator deems advisable.

     5.2  Allocation of Contributions.
          ---------------------------

          (a)  Elective Deferrals.  Elective Deferrals made by a Participant
               ------------------
shall be allocated to each such Participant's Elective Deferral Contribution
subaccount as soon as administrative feasible, but in no event later than the
fifteenth (15/th/) business day of the month following the month in which the
Elective Deferrals would otherwise have been payable to the Participant.

          (b)  Matching Contributions. Matching Contributions shall be allocated
               ----------------------
to the Account of each Participant in an amount not to exceed fifty percent
(50%) of each Participant's first six percent (6%) of Compensation contributed
as Elective Deferrals for the Plan Year.
<PAGE>

                                      -43-

          (c)  A Participant's Rollover Contributions shall be allocated to such
Participant's Rollover Contribution subaccount as of the last day of the
calendar month during which such contributions were received by the Trustees.

          (d)  Qualified Nonelective Contributions and Qualified Matching
Contributions shall be allocated in accordance with sections 4.9 or 4.10
(whichever is applicable) to each Participant's Qualified  Nonelective
Contribution or Qualified Matching Contribution subaccount as of the last day of
the calendar month in which such contribution is made.

     5.3  Allocation of Forfeitures.  Any forfeiture arising under the Plan for
          -------------------------
a given Plan Year shall be considered for allocation purposes as an Employer
Contribution and shall be held, separately invested, and used to reduce future
Employer Contributions.

     5.4  Allocation of Earnings.
          ----------------------

          (a)  (1)  The Administrator, as of each Valuation Date, shall adjust
the amounts credited to the Accounts (including Accounts for persons who are no
longer Employees) so that the total of such Account balances equals the fair
market value of the Trust assets as of such Valuation Date.  Except as otherwise
provided herein, any changes in the fair market value of the Trust assets since
the preceding Valuation Date shall be charged or credited to each Account in the
ratio that the balance in each such Account as of the preceding Valuation Date
bears to the balances in all Accounts as of that Valuation Date with appropriate
adjustments to reflect any distributions, allocations or similar adjustments to
such Account or Accounts since that Valuation Date.

               (2)  To the extent that separate investment funds are established
(as provided in section 5.5), the adjustments required by subsection (a)(1)
shall be made by applying subsection (a)(1) separately for each such investment
fund so that any
<PAGE>

                                      -44-

changes in the net worth of each such investment fund are charged or credited to
the portion of each Account invested in such investment fund in the ratio that
the portion of each such Account invested in such investment fund as of the
preceding Valuation Date (reduced by any distributions made from that portion of
such Account since that Valuation Date) bears to the total amount credited to
such investment funds as of that Valuation Date (reduced by distributions made
from such investment fund since that Valuation Date).

               (3)  Interim valuations, in accordance with the foregoing
procedure, may be made at such time or times as the Administrator directs.

          (b)  The Administrator may, in its sole discretion, direct the
Trustees to segregate and separately invest any Trust assets. If any assets are
segregated in this fashion, the earnings or losses on such assets shall be
determined apart from other Trust assets and shall be adjusted on each Valuation
Date, or at such other times as the Administrator deems necessary, in accordance
with this section.

     5.5  Investment Direction.
          --------------------

          (a)  The Trustees may, in their discretion, permit Participants, the
Beneficiaries of a deceased Participant and any Alternate Payees to self-direct
the investment of assets credited to the Account of the Participant, Beneficiary
or Alternate Payee.  The Trustees shall determine the investment choices to be
made available, which may include designated investment funds, specific
investments or both.  The investment choices made available shall be sufficient
to allow compliance with section 404(c) of ERISA.

          (b)  (1)  If the Trustees permit self-directed investments as
described in subsection (a), the Administrator shall establish rules and
procedures that it
<PAGE>

                                      -45-

feels are advisable to implement such an investment program. Such rules and
procedures shall be consistent with section 404(c) of ERISA.

               (2)  In establishing rules and procedures under subsection
(b)(1), the following shall apply:

                    (A)  Each Participant, Beneficiary or Alternate Payee shall
affirmatively elect to self-direct the investment of assets in his or her
Account, but such  election may provide for default investments in the absence
of specific directions from such Participant, Beneficiary or Alternate Payee.

                    (B)  The investment directions of a Participant shall
continue to apply after that Participant's death or incompetence until the
Beneficiary (or, if there is more than one Beneficiary for that Account, all of
the Beneficiaries), guardian or other representatives provide contrary
direction.

                    (C)  The Trustees may decline to implement investment
designations if such investment in the Trustees' judgment:

                         (i)   would result in a prohibited transaction under
section 4975 of the Code;

                         (ii)  would generate income taxable to the Trust;

                         (iii) would not be in accordance with the Plan and
Trust;

                         (iv)  would cause a fiduciary to maintain the indicia
of ownership of any assets of the Trust outside the jurisdiction of the district
<PAGE>

                                      -46-

courts of the United States other than as permitted by section 404(b) of ERISA
and Labor Reg. (S)2550.404b-1;

                         (v)   would jeopardize the Plan's tax qualified status
under the Code;

                         (vi)  could result in a loss in excess of the amount
credited to the Account; or

                         (vii) would violate any other requirements of the Code
or ERISA.

                    (D)  The Administrator may establish reasonable restrictions
on the frequency with which investment directions may be given, consistent with
section 404(c) of ERISA.

                    (E)  The Administrator may establish limits on the use of
brokers, investment counsel or other advisors that may be utilized, including
specifying that all investments must be made through a designated broker or
brokers.

                    (F)  The Administrator may establish limits on the types of
investments that are permitted.

                                  ARTICLE VI
                           Termination of Employment
                           -------------------------

     6.1  Normal Retirement.  Upon a Participant's attainment of Normal
          -----------------
Retirement Age, the entire amount credited to his or her Account as of the last
preceding or coinciding Valuation Date shall become vested and nonforfeitable.
Subject to section 6.2, the Administrator shall direct the Trustees to
distribute to such Participant the
<PAGE>

                                      -47-

amount credited to such Participant's Account in accordance with the provisions
of ARTICLE VII.

     6.2  Late Retirement.  If a Participant continues to be an Employee beyond
          ---------------
Normal Retirement Age, any distribution to such Participant shall be deferred
until the Participant's Termination of Employment.  Until such Termination of
Employment, such Participant shall continue to participate on the same basis as
before reaching Normal Retirement Age.  Upon Termination of Employment, the
Administrator shall direct the Trustees to distribute to such Participant the
amount credited to such Participant's Account in accordance with the provisions
of ARTICLE VII.

     6.3  Disability Retirement.
          ---------------------

          (a)  If a Participant is determined to have suffered Total and
Permanent Disability, the entire amount credited to the Participant's Account
shall become vested and nonforfeitable.  The Administrator shall direct the
Trustees to distribute to such Participant such vested amounts in accordance
with the provisions of ARTICLE VII.

          (b)  The Total and Permanent Disability of a Participant shall be
determined by the Administrator, in its sole discretion, in accordance with
uniform principles  consistently applied and upon the basis of such evidence as
the Administrator deems necessary and desirable.  All determinations of the
Administrator regarding Total and Permanent Disability shall be final,
conclusive and binding on all Participants and other parties.

     6.4  Termination Due to Death.  Following the death of a Participant,
          ------------------------
further benefits, if any, shall be payable only as provided under ARTICLE VIII.
<PAGE>

                                      -48-
     6.5  Other Termination of Employment.
          -------------------------------

          (a)  Upon a Participant's Termination of Employment for any reason
other than retirement after Normal Retirement Age, death or Total and Permanent
Disability, such Participant shall have a nonforfeitable right to the portion of
his or her Account attributable to Elective Deferrals, Rollover Contributions,
Qualified Nonelective Contributions, and vested Employer Contributions.  The
remainder of the Participant's Account, if any, shall be forfeited as of the
close of the Plan Year in which any of the following occurs:

               (1) a cash-out distribution is made, as described in Treas. Reg.
(S)1.411(a)-7(d)(4); or

               (2) the separated Participant experiences five (5) consecutive
one (1) year Breaks in Service.

          (b)  Any amounts forfeited shall remain forfeited even if a
Participant is subsequently reemployed and readmitted as a Participant in the
Plan, unless a restoration is made under section 4.6. A Participant who has not
achieved any vesting in Employer Contributions shall be deemed to have received
a distribution of zero dollars at the time of his or her Termination of
Employment.

          (c)  Unless otherwise specified herein, a Participant's Account
attributable to Employer Contributions shall vest in accordance with such
Participant's Years of Credited Service, determined as follows:
<PAGE>

                                      -49-

                  Years of
               Credited Service    Vested Percentage
               ----------------    -----------------

               Fewer than 1                0%
               1 but fewer than 2         20%
               2 but fewer than 3         40%
               3 but fewer than 4         60%
               4 but fewer than 5         80%
               5 or more                 100%

          (d)  Service performed for a Prior Employer or Affiliated Company
shall be counted as Years of Credited Service for purposes of section 6.5(c) for
Participants who have at least one (1) Hour of Service credited on or after
January 1, 1999.

     6.6  Qualified Domestic Relations Orders.
          -----------------------------------

          (a)  Notwithstanding any contrary provision of the Plan, payments
shall be made in accordance with any judgment, decree or order determined to be
a Qualified Domestic Relations Order.

          (b)  (1)  If the Plan receives a Domestic Relations Order, the
Administrator shall promptly notify the Participant and each Alternate Payee of
the receipt of such order and of the Plan's procedures for determining whether
such order is a Qualified Domestic Relations Order.  The Administrator shall,
within a reasonable period after receipt of such order, determine whether it is
a Qualified Domestic Relations Order and notify the Participant and each
Alternate Payee of that determination.

               (2)  During any period in which the issue of whether a Domestic
Relations Order is a Qualified Domestic Relations Order is being determined, the
Administrator shall separately account for the amounts that would have been
payable
<PAGE>

                                      -50-

to the Alternate Payee during such period if the order had been determined to be
a Qualified Domestic Relations Order.

          (c)  (1)  A Domestic Relations Order meets the requirements of this
subsection only if such order clearly specifies the following:

                    (A)  the name and last known mailing address (if any) of the
Participant and the name and mailing address of each Alternate Payee covered by
the order;

                    (B) the amount or the percentage of the Participant's
benefits to be paid by the Plan to each such Alternate Payee or the manner in
which such amount or percentage is to be determined;

                    (C) the number of payments or period to which such order
applies; and

                    (E) each plan to which such order applies.

               (2)  A Domestic Relations Order meets the requirements of this
subsection only if such order does not:

                    (A) require the Plan to provide any type or form of benefit
or any option not otherwise provided under the Plan;

                    (B) require the Plan to provide increased benefits
(determined on the basis of actuarial value); and
<PAGE>

                                      -51-

                    (C) does not require the payment of benefits to an Alternate
Payee that are required to be paid to another Alternate Payee under another
order previously determined to be a Qualified Domestic Relations Order.

          (d)  A domestic relations order shall not be treated as failing to
meet the requirements of section 6.6(c)(2)(A) solely because such order requires
that payment of benefits be made to an Alternate Payee:

               (1)  in the case of any payment before a Participant has
separated from service, on or after the date on which the Participant attains
(or would have attained) the Earliest Retirement Date;

               (2)  as if the Participant had retired on the date on which such
payment is to begin under such order (but taking into account only the present
value of the benefits actually accrued and not taking into account the present
value of any employer subsidy for early retirement); and

               (3)  in any form in which such benefits may be paid under the
Plan to the Participant (other than in the form of a qualified joint and
survivor annuity with respect to the Alternate Payee and his or her subsequent
spouse).

          (e)  A domestic relations order shall not be treated as failing to
meet the requirements of section 6.6(c)(2)(A) solely because such order requires
that payment of benefits be made to an Alternate Payee at a date before the
Participant is entitled to receive a distribution. Such distribution shall be
made to such Alternate Payee notwithstanding any contrary provision of the Plan.

          (f)  The following terms shall have the meanings specified:
<PAGE>

                                      -52-

               (1)  Alternate Payee.  Any spouse, former spouse, child or other
                    ---------------
dependent of a Participant who is  recognized by a Domestic Relations Order as
having a right to benefits under the Plan with respect to such Participant.

               (2)  Domestic Relations Order.  A judgment, decree or order
                    ------------------------
relating to child support, alimony or marital property rights, as defined in
section 414(p)(1)(B) of the Code.

               (3)  Earliest Retirement Date.  The earlier of:
                    ------------------------

                    (A)  the date on which the Participant is entitled to a
distribution under the Plan; or

                    (B)  the later of:

                         (i)  the date the Participant attains age fifty (50);
or

                         (ii) the earliest date on which the Participant could
begin receiving benefits under the Plan if the Participant separated from
service.

               (4)  Qualified Domestic Relations Order.  A Domestic Relations
                    ----------------------------------
Order that satisfies the requirements of subsection (c) and section 414(p)(1)(A)
of the Code.

          (g) If an Alternate Payee entitled to payment under this section is
the spouse or former spouse of a Participant and payment will otherwise be made
in an Eligible Rollover Distribution, then such spouse or former spouse may
elect that all, or
<PAGE>

                                      -53-

portion, of such payment shall instead be transferred as a Direct Rollover. Such
Direct Rollover shall be governed by the requirements of sections 7.3 and 7.4.

          (h) If a Domestic Relations Order directs that payment be made to an
Alternate Payee before the Participant's Earliest Retirement Date and such
Domestic Relations Order otherwise qualifies as a Qualified Domestic Relations
Order, then the Domestic Relations Order shall be treated as a Qualified
Domestic Relations Order and such payment shall be made to the Alternate Payee,
even though the Participant is not entitled to receive a distribution under the
Plan because he or she continues to be an Employee of the Employer.

          (i) This section shall be interpreted and administered in accordance
with section 414(p) of the Code.

     6.7  Lost Beneficiary.
          ----------------

          (a) All Participants and Beneficiaries shall have the obligation to
keep the Administrator informed of  their current address until such time as all
benefits due have been paid.

          (b) If any amount is payable to a Participant or Beneficiary who
cannot be located to receive such payment, such amount may, at the discretion of
the Administrator, be forfeited; provided, however, that if such Participant or
Beneficiary subsequently claims the forfeited amount, it shall be reinstated and
paid to such Participant or Beneficiary.  Such reinstatement may, in the
Administrator's sole discretion, be made from Employer Contributions,
forfeitures or Trust earnings, and shall be treated as a special allocation that
supersedes the normal allocation rules in ARTICLE V.
<PAGE>

                                      -54-

          (c) If the Administrator has not, after due diligence, located a
Participant or Beneficiary who is entitled to payment within three (3) years
after the Participant's Termination of Employment, then, at the discretion of
the Administrator, such person may be presumed deceased for purposes of this
Plan.  Any such presumption of death shall be final, conclusive and binding on
all parties.

     6.8  Offsets.  Any transfers or payments made from a Participant's Account
          -------
to a person other than the Participant pursuant to the provisions of this Plan
shall reduce the Participant's Account and offset any amounts otherwise due to
such Participant.  Such transfers or payments shall not be considered a
forfeiture for purposes of the Plan.

                                  ARTICLE VII
                              Payment of Benefits
                              -------------------

     7.1  General.
          -------

          (a) All pension benefits payable under this Plan shall be paid in the
manner and at the times specified in this ARTICLE.  Any payments to Participants
or Beneficiaries shall be made in cash except as otherwise provided herein.
Distributions may be made wholly or partly by an in-kind distribution of assets
held by the Trust if the distributee consents to such an in-kind distribution
and the Administrator determines that such an in-kind distribution is not
administratively burdensome.

          (b) All payment methods and distributions shall comply with the
requirements of sections 401(a)(4) and 401(a)(9) of the Code and the regulations
thereunder and, if necessary, shall be interpreted to so comply.  The provisions
of this ARTICLE apply to all amounts credited to an Account, regardless of the
source of such amounts.  All distributions shall be made over a period not to
exceed the life of the Participant receiving the distribution or over the lives
of such Participant and his or her Beneficiary and shall comply with the
incidental death benefit requirement of section
<PAGE>

                                      -55-

401(a)(9)(G) of the Code. Distributions shall comply with the regulations under
section 401(a)(9) of the Code, including Treas. Regs. (S)1.401(a)(9)-2. The
provisions of the Plan reflecting section 401(a)(9) of the Code override any
distribution provisions in the Plan inconsistent with section 401(a)(9).

     7.2  Form of Payment.  All payments due under the Plan shall be paid in a
          ---------------
single, lump-sum payment.

     7.3  Direct Rollovers.
          ----------------

          (a) A Participant may elect that all or any portion of a distribution
under section 7.2 or section 7.5 that would otherwise be paid as an Eligible
Rollover Distribution shall instead be transferred as a Direct Rollover.

          (b) (1)  The Administrator shall determine and apply rules and
procedures as it deems reasonable with respect to Direct Rollovers in addition
to, or in lieu of, those set forth in subsection (b)(2).  The Administrator may
change such rules and procedures from time to time and shall not be bound by any
previous rules and procedures it has applied.

              (2)  Unless otherwise determined by the Administrator, the
following rules and procedures shall apply to this section:

                   (A)  A Direct Rollover shall not be permitted when the amount
thereof for the year is expected to be less than two hundred dollars ($200).

                   (B)  A Direct Rollover shall not be permitted to more than
one Eligible Retirement Plan.
<PAGE>

                                      -56-

          (c) The following terms shall have the meanings specified:

               (1) Direct Rollover.  An available distribution that is paid
                   ---------------
directly to an Eligible Retirement Plan for the benefit of the distributee.

               (2) Eligible Retirement Plan.  An individual retirement account
                   ------------------------
described in section 408(a) of the Code, an individual retirement annuity (other
than an endowment contract) described in section 408(b) of the Code, a qualified
trust described in section 401(a) of the Code if such qualified trust is part of
a defined contribution plan that permits acceptance of Direct Rollovers or an
annuity  plan described in section 403(a) of the Code.  In the case of a Direct
Rollover for the benefit of the spouse or former spouse of a Participant, the
term "Eligible Retirement Plan" shall only include an individual retirement
account described in section 408(a) of the Code and an individual retirement
annuity (other than an endowment contract) described in section 408(b) of the
Code.

               (3) Eligible Rollover Distribution.  Any distribution under the
                   ------------------------------
Plan to a Participant, a Participant's spouse or a Participant's former spouse,
except for the following:

                   (A) Any distribution that is one of a series of substantially
equal periodic payments (not less frequently than annually) made over any one of
the following periods:

                       (i)  the life of the Participant (or the joint lives of
the Participant and the Participant's designated Beneficiary);
<PAGE>

                                      -57-

                       (ii)  the life expectancy of the Participant (or the
joint life and last survivor expectancy of the Participant and the Participant's
designated Beneficiary); or

                       (iii) a specified period of ten (10) years or more.

                   (B) Any distribution to the extent the distribution is
required under section 401(a)(9) of the Code.

                   (C) The portion of any distribution that is not includable in
gross income (determined without regard to the exclusion for net unrealized
appreciation described in section 402(e)(4) of the Code).

                   (D) Returns of elective deferrals described in Treas. Reg.
(S)1.415-6(b)(6)(iv) that are returned as a result of the limitations under
section 415 of the Code.

                   (E) Corrective distributions of excess contributions and
excess deferrals under qualified cash or deferred arrangements as described in
Treas. Reg. (S)1.401(k)-1(f)(4) and (S)1.402(g)-1(e)(3), respectively, and
corrective distributions of excess aggregate contributions as described in
Treas. Reg. (S)1.401(m)-1(e)(3), together with the income allocable to these
corrective distributions.

                   (F) Loans treated as distributions under section 72(p) of
the Code and not excepted by section 72(p)(2) of the Code.

                   (G) Loans in default that are deemed distributions.
<PAGE>

                                      -58-

                   (H) Dividends paid on employer securities as described in
section 404(k) of the Code.

                   (I) The costs of life insurance coverage.

                   (J) Similar items designated by the Internal Revenue Service
in revenue rulings, notices, and other guidance of general applicability.

     7.4  Notice and Payment Elections.
          ----------------------------

          (a) The Administrator shall provide Participants or other distributees
of Eligible Rollover Distributions with a written notice designed to comply with
the requirements of section 402(f) of the Code.  Such notice shall be provided
within a reasonable period of time before making an Eligible Rollover
Distribution.

          (b) Any elections concerning the form of payment shall be made on a
form prescribed by the Administrator.  The Participant or other distributee
shall submit a completed form to the Administrator at least thirty (30) days
before payment is scheduled to commence, unless the Administrator agrees to a
shorter time period.  Any election made under this section shall be revocable
until thirty (30) days before payment is scheduled to commence.

          (c) An election to have payment made in a Direct Rollover shall only
be valid if the Participant or  other distributee provides adequate information
to the Administrator for the implementation of such Direct Rollover and such
reasonable verification as the Administrator may require that the transferee is
an Eligible Retirement Plan.
<PAGE>

                                      -59-

          (d) A Participant or other distributee who fails to timely submit an
election in accordance with the requirements of this section after having timely
received the notice required under subsection (a) shall be paid in a single,
lump-sum.

     7.5  Mandatory Distributions.
          -----------------------

          (a) A Participant who has attained age seventy and one-half (70 1/2)
and is required to receive a distribution pursuant to provisions of section
401(a)(9) shall be paid such amounts and at such times as are determined by the
Administrator to be necessary to comply with such requirements.  Such payments
shall be made notwithstanding any contrary provisions of the Plan or election
made by such Participant.

          (b) A Participant required to receive distributions under subsection
(a) for a year may elect at any time to withdraw additional amounts from his or
her Account.  Such election shall be made on a form prescribed by the
Administrator.  Distribution shall be made as soon as administratively feasible
after receipt of such election.  The Administrator may prescribe additional
rules and procedures to implement this subsection including the establishment of
minimum withdrawal requirements and limits on the frequency of such withdrawals.

     7.6  Commencement of Benefits.
          ------------------------

          (a)  (1)  Except as otherwise provided in this ARTICLE, distribution
to a Participant (or Beneficiary) shall commence within a reasonable period of
time following the Participant's Total and Permanent Disability, death or
Termination of Employment.

               (2)  If the vested amount in the Participant's Account exceeds or
ever exceeded five thousand dollars ($5,000), then payment to the Participant
shall not
<PAGE>

                                      -60-

commence before such Participant has attained age sixty-two (62), unless the
Participant submits written consent to the Administrator for such earlier
commencement. Such written consent must be obtained not more than ninety (90)
days before the commencement of the distribution.

          (b)  (1)  Distribution shall commence no later than sixty (60) days
after the close of the Plan Year in which the latest of the following occurs:

                    (A) the Participant attains Normal Retirement Age;

                    (B) the tenth (10th) anniversary of the year in which the
Participant first became a Participant; or

                    (C) the Participant ceases to be an Employee.

               (2)  To the extent required by law, distribution to a Participant
shall commence no later than April 1 of the calendar year following the calendar
year in which the Participant attains age seventy and one-half (70 1/2).

          (c)  If distribution has not commenced in accordance with the
foregoing requirements because the Participant could not be located, the amount
of benefit cannot be determined or for other similar administrative reasons,
then payment retroactive to the required date shall be made.

     7.7  Payments to Incompetents.  If a Participant or Beneficiary entitled to
          ------------------------
receive any benefits hereunder is adjudicated to be legally incapable of giving
valid receipt  and discharge for such benefits, the benefits may be paid to the
duly authorized personal representative of such Participant or Beneficiary.
<PAGE>

                                      -61-

     7.8  Income Tax Withholding.  To the extent required by section 3405 of the
          ----------------------
Code, distributions and withdrawals from the Plan shall be subject to federal
income tax withholding.

                                 ARTICLE VIII
                        Distributions to Beneficiaries
                        ------------------------------

     8.1  General.  Payment of benefits after the death of a Participant (or
          -------
Beneficiary receiving benefits) shall be determined and paid to the
Participant's Beneficiary in accordance with this ARTICLE.  All amounts credited
to the Account of a Participant who is an Employee on the date of his or her
death shall be nonforfeitable and fully vested.  All payments under this ARTICLE
shall be incidental to the retirement benefits otherwise provided for the
Participant and shall be limited in accordance with section 401(a)(9) of the
Code.

     8.2  Normal Form of Payment.
          ----------------------

          (a)  Any payments due after a Participant's death shall be paid to the
Participant's Beneficiary (or Beneficiaries) in a single, lump-sum.

          (b)  If a Beneficiary entitled to payment under subsection (a) was the
spouse or former spouse of the deceased Participant and payment will otherwise
be made in an Eligible Rollover Distribution, then such spouse or former spouse
may elect that all, or any portion, of such payment shall instead be transferred
as a Direct Rollover.  Such Direct Rollover shall be governed by the
requirements of section 7.3.

     8.3  Beneficiary Designation.
          -----------------------

          (a)  A Participant may designate a Beneficiary (including successive
or contingent Beneficiaries) in accordance with this section. Such designation
shall be on a
<PAGE>

                                      -62-

form prescribed by the Administrator, may include successive or contingent
Beneficiaries, shall be effective upon receipt by the Administrator and shall
comply with such additional conditions and requirements as the Administrator
shall prescribe. The interest of any person as Beneficiary shall automatically
cease on his or her death and any further payments from the Plan shall be made
to the next successive or contingent Beneficiary.

          (b)  A Participant may change his or her Beneficiary designation from
time to time, without the consent or knowledge of any previously designated
Beneficiary, by filing a new Beneficiary designation form with the Administrator
in accordance with subsection (a).

          (c)  If a Participant dies without a designated Beneficiary surviving,
the Participant's surviving spouse shall be deemed to be such Participant's
Beneficiary, but if the deceased Participant does not have a spouse surviving,
then such Participant's issue, per stirpes, shall  be deemed to be such
                               --- -------
Participant's Beneficiary but if the deceased Participant has neither spouse nor
issue surviving, then such Participant's estate shall be deemed to be such
Participant's Beneficiary.

          (d)  Notwithstanding the foregoing provisions of this section, if a
Participant is married at the time of his or her death, such Participant shall
be deemed to have designated his or her surviving spouse as Beneficiary, unless
such Participant has filed a Beneficiary designation under subsection (a) and
such spouse consents in writing to the election (acknowledging the effect of the
election and specifically acknowledging the nonspouse Beneficiary) and such
consent is witnessed by either the Administrator (or its delegate) or a notary
public.  Such consent shall not be required if the Participant does not have a
spouse or the spouse cannot be located.  Such consent shall also not be required
if the Participant is legally separated from his or her spouse or the
Participant has been abandoned (under applicable local law) and the Participant
has a court order to
<PAGE>

                                      -63-

such effect, unless a Qualified Domestic Relations Order provides otherwise. If
the Participant's spouse is legally incompetent to give consent, the spouse's
legal guardian (even if the guardian is the Participant) may give consent.

     8.4  Commencement of Payment.  Distributions to a Beneficiary shall be made
          -----------------------
so as to comply with any applicable requirements of section 401(a)(9).  If the
Participant dies before the time when distribution is considered to have
commenced, then any remaining portion of the Participant's interest will be
distributed within five (5) years after the Participant's death.  If a
distribution is considered to have commenced before the Participant's death, the
remaining interest will be distributed at least as rapidly as under the method
of distribution being used as of the date of the Participant's death.

                                  ARTICLE IX
                             Withdrawals and Loans
                             ---------------------

     9.1  Withdrawals.
          -----------

          (a)  A Participant may withdraw amounts in his or her Account after
attaining age fifty-nine and one-half (59 1/2).  Such withdrawals shall only be
made in accordance with the following procedures:

               (1)  the Participant shall designate in writing the amount to be
withdrawn;

               (2)  the withdrawal notice shall be filed with the Administrator
at least thirty (30) days before payment will be made; and

               (3)  not more than two (2) such withdrawals will be permitted in
any Plan Year.
<PAGE>

                                      -64-

          (b)  The Administrator may adopt rules providing that not less than a
minimum amount, as determined by the Administrator, may be withdrawn by a
Participant at any one time.

     9.2  Hardship Withdrawals.
          --------------------

          (a)  A Participant who has experienced a hardship, as described in
this section, may withdraw amounts from his or her Elective Deferral subaccount
to the extent such amounts do not exceed the total undistributed Elective
Deferrals made by such Participant. Whether a Participant is entitled to a
withdrawal under this section is to be determined by the Administrator in
accordance with nondiscriminatory and objective standards. In order to be
entitled to a hardship withdrawal under this section, a Participant must satisfy
the requirements of both subsection (b) and subsection (c).

          (b)  (1)  A Participant will be deemed to have experienced an
immediate and heavy financial need under the requirements of this subsection if
the withdrawal is for:

                    (A)  medical expenses described in section 213(d) of the
Code incurred by the Participant, the Participant's spouse or any dependents of
the Participant;

                    (B)  the purchase (excluding mortgage payments) of a
principal resident of the Participant;

                    (C)  payment of tuition for the next twelve (12) months of
post-secondary education for the Participant or his or her spouse, children or
dependents; or
<PAGE>

                                      -65-

                    (D)  preventing the eviction of the Participant from his or
her principal residence or the foreclosure on the mortgage of the Participant's
principal residence.

               (2)  The Administrator may, on the basis of such evidence it
deems relevant, determine that the Participant has experienced an immediate and
heavy financial need for reasons other than those enumerated in this subsection.

          (c)  (1)  A withdrawal under this subsection will be deemed necessary
to satisfy an immediate and heavy financial need of the Participant if it
satisfies the requirements of this subsection.  To the extent the amount of the
withdrawal would be in excess of the amount required to relieve the financial
need of the Participant or to the extent such need may be satisfied from other
resources that are reasonably available to the Participant, such withdrawal
shall not satisfy the requirements of this subsection.  For purposes of this
subsection, a Participant's resources shall be deemed to include those assets of
his or her spouse or minor children that are reasonably available to the
Participant.

               (2)  A withdrawal may be treated as necessary to satisfy an
immediate and heavy financial need of the Participant if the Administrator
reasonably relies upon the Participant's representation that the need cannot be
relieved:

                    (A)  through reimbursement or compensation by insurance or
otherwise;

                    (B)  by liquidation of the Participant's assets to the
extent such liquidation would not itself cause an immediate and heavy financial
need;

                    (C)  by cessation of Elective Deferrals under the Plan; or
<PAGE>

                                      -66-

                    (D)  by other distributions or nontaxable (at the time of
the loan) loans from plans maintained by the Employer or by any other employer
or by borrowing from commercial sources on reasonable commercial terms.

               (3)  A withdrawal will be deemed to satisfy the requirements of
subsection (c) if all of the following requirements are satisfied:

                    (A)  The withdrawal is not in excess of the amount of the
immediate and heavy financial need of the Participant;

                    (B)  The Participant has obtained all distributions, other
than hardship distributions, and all nontaxable loans currently available under
all plans maintained by the Employer;

                    (C)  The Plan and all other plans maintained by the Employer
limits the Participant's Elective Deferrals for the Participant's next taxable
year to the applicable limit under section 402(g) of the Code minus the
Participant's Elective Deferrals for the year of the hardship distribution; and

                    (D)  The Participant is prohibited, under the Plan or by
agreement, from making Elective Deferrals to the Plan and all other plans
maintained by the Employer for at least twelve (12) months after the receipt of
the hardship distribution.

               (4)  The Administrator shall, on the basis of such evidence it
deems relevant, determine the amount necessary to satisfy an immediate and heavy
financial need of the Participant.
<PAGE>

                                      -67-

               (d)  Such withdrawals shall only be made in accordance with the
following procedures:

                    (1)  the Participant shall designate in writing the amount
to be withdrawn;

                    (2)  the withdrawal notice shall be filed with the
Administrator at least thirty (30) days before payment will be made (or such
shorter period as the Administrator may agree to); and

                    (3)  not more than one (1) such withdrawal will be permitted
in any calendar quarter.

               (e)  The Administrator may adopt rules providing that not less
than a minimum amount, as determined by the Administrator may be withdrawn by a
Participant at any one time.

     9.3  Loans.
          -----

          (a)  (1)  Loans may be made to a Participant or Beneficiary as
provided under the provisions of this section.  A Participant or Beneficiary who
is not a party-in-interest (as defined in section 3(14) of ERISA, as amended)
shall not be eligible to receive a loan under this ARTICLE.  The Administrator
shall establish the terms of such loans, consistent with the provisions of this
section, and shall make all determinations, such as determinations of default,
that may be appropriate.

               (2)  The Administrator shall be responsible for the
administration of this loan program, which shall be administered in accordance
with the provisions of this section. The terms and conditions of any loans are
to be determined by
<PAGE>

                                      -68-

the Administrator, in its sole discretion, and may be altered from time to time,
with or without notice, as the Administrator so determines, except that once
made, a loan may not be altered other than in accordance with the express
provisions of the applicable loan agreement.

          (b)  (1)  A Participant or Beneficiary requesting a loan should
contact the Administrator and provide such information as may be required by the
Administrator.  The Administrator shall require that a Participant or
Beneficiary who receives a loan execute a written loan agreement, as prescribed
by the Administrator, establishing the terms and conditions of the loan in
accordance with this section.  Loan requests that comply with all the
requirements of this section shall be approved.

               (2)  Loans shall:

                    (A) be made available on a reasonably equivalent basis;

                    (B) be provided on a nondiscriminatory basis;

                    (C) bear a reasonable rate of interest; and

                    (D) be adequately secured.

          (c)  (1)  The amount of a loan to a Participant or Beneficiary (when
added to the outstanding balance of other loans to that Participant or
Beneficiary from the Plan) shall not exceed the lesser of:

                    (A) fifty thousand dollars ($50,000), reduced by the excess
of the highest outstanding balance of loans from the Plan to that Participant or
Beneficiary during the one (1) year period ending on the day before the day the
loan is
<PAGE>

                                      -69-

made, over the outstanding balance of loans from the Plan to that Participant or
Beneficiary on the date the loan is made; or

                    (B) one-half ( 1/2) of the present value of the
Participant's or Beneficiary's nonforfeitable Account balance in the Plan.

               (2)  For purposes of this subsection, loans from all plans of the
Employer are aggregated.

               (3)  Loans made under a qualified retirement plan maintained by a
Prior Employer (or any other employer) may be rolled over into this Plan with
the approval of the Plan Administrator.

          (d)  (1)  Loans shall be made on such terms and subject to such
limitations as the Administrator may prescribe in accordance with this section.

               (2)  Any loan shall, by its terms, require that repayment
(principal and interest) be made in substantially level amortization with
payments, not less frequently than quarterly, over a period not extending beyond
five (5) years from the date of the loan, unless such loan is used to acquire a
dwelling unit that, within a reasonable period of time (determined at the time
the loan is made) will be used as the principal residence of the Participant or
Beneficiary receiving such loan.

               (3) The Administrator may, notwithstanding the foregoing
provisions, alter the requirements of this subsection or subsection (c).

          (e)  The Administrator shall determine, in its sole discretion, the
interest rate for each loan. The interest rate for a given loan shall be set
forth in the loan agreement and may be either a fixed or variable rate.
<PAGE>

                                      -70-

          (f)  (1)  The Administrator shall require such security for a loan as
it deems appropriate.  Such security may include the Participant's or
Beneficiary's Account balance, the Participant's or Beneficiary's residence
(through a primary or lesser mortgage interest) or any other property of the
Participant or Beneficiary.  The Participant or Beneficiary shall pledge such
property as security for such loan.

               (2)  Unless a loan is otherwise secured, all of the Participant's
or Beneficiary's right, title, and interest in the Trust shall be security for
the loan. The loan agreement executed by the Participant or Beneficiary shall
provide that, in the event of any default by the Participant or Beneficiary on a
loan repayment, the Administrator shall be authorized (to the extent permitted
by law) to take any and all actions necessary and appropriate to enforce
collection of the unpaid loan, including wage withholding or garnishment from
the Participant's or Beneficiary's employer, in accordance with the loan
agreement.

               (3)  In the event the value of the Participant's or Beneficiary's
vested Account balance or other collateral at any time is less than one hundred
twenty-five percent (125%) of the outstanding loan balance, the Administrator
may request additional collateral of sufficient value to provide such collateral
amount. Failure to provide such additional collateral upon a request of the
Administrator shall constitute an event of default.

          (g)  Except to the extent otherwise explicitly provided in the loan
agreement, if a Participant (or Beneficiary) ceases to be a party-in-interest
(as defined in section 3(14) of ERISA, as amended) by reason of a Termination of
Employment or otherwise, or has collateral that fails to satisfy the
requirements of subsection (f)(3) by reason of a Plan distribution or otherwise,
the unpaid balance of the loan shall be immediately due and payable and the
Administrator may deduct the unpaid balance of the
<PAGE>

                                      -71-

loan (including interest) from any payment or distribution from the Trust to
which such Participant or Beneficiary may be entitled. If, after such deduction,
there still remains an unpaid balance of any such loan (including interest),
then the remaining unpaid balance of such loan (including interest) may be
charged against any other property pledged as security with respect to such
loan.

          (h)  (1)  In the event of a default by a Participant or Beneficiary on
a loan repayment, all remaining payments on the loan shall be immediately due
and payable.  The Employer shall, upon the direction of the Administrator (to
the extent permitted by law), deduct the total amount of the loan outstanding
and any unpaid interest due thereon from the wages or salaries payable to the
Participant or Beneficiary in accordance with the Participant's or Beneficiary's
loan agreement.  In addition, the Administrator may take any other actions
necessary and appropriate to enforce collection of the unpaid loan.

               (2) In the event of a default, foreclosure and attachment of any
Account balance pledged as collateral will not occur until a distributable event
occurs in the Plan.  Other collateral may, however, be foreclosed upon
immediately following a default.

               (3) For purposes of this section, the term "default" shall mean
failure, by a period of at least ten (10) days, to make any loan payment
(whether principal or interest or both) that is due and payable and any other
event specified to be a default under this section.  Neither the Administrator
nor any other fiduciary is required to give any written or oral notice of
default.

          (i) Unless otherwise established by the Administrator in the
applicable loan agreement, the following additional terms and conditions shall
apply to any loan:
<PAGE>

                                      -72-

          (1)  Loans shall be repaid through payroll reductions.

          (2)  Plan amounts attributable to elective deferrals (as defined in
section 402(g)(3) of the Code) shall only be security for loans to the extent
other security is not available.

          (3)  Interest paid on a loan and repayments of principal shall be
credited to the Account of the Participant who received the loan.

          (4)  Only two (2) loans may be outstanding at any time, except that if
a Participant has more than two (2) loans outstanding because of a rollover or
transfer of a loan from a Prior Employer's Plan (or any other plan), then such
Participant may not obtain a new loan until the Participant has fewer than two
(2) loans outstanding.

          (5)  Loans shall only be available if the amount borrowed satisfies
the minimum loan amount requirements, if any, established by the Administrator
(consistent with ERISA and the Code).

                                   ARTICLE X
                      Contribution and Benefit Limitations
                      ------------------------------------

     10.1 Contribution Limits.
          -------------------

          (a) The Annual Additions that may be allocated to a Participant's
Account for any Limitation Year shall not exceed the lesser of:

              (1)   thirty thousand dollars ($30,000); or

              (2)   twenty-five percent (25%) of the Participant's Compensation
for that Limitation Year.
<PAGE>

                                      -73-

          (b)  If the Employer maintains any other Defined Contribution Plans
then the limitations in subsection (a) shall be computed with reference to the
aggregate Annual Additions for each Participant from all such Defined
Contribution Plans.

          (c)  If the Annual Additions for a Participant would exceed the limits
specified in this section, then the Annual Additions under this Plan for that
Participant shall be reduced to the extent necessary to prevent such limits from
being exceeded.  Such reduction shall be made in accordance with section 10.4.

     10.2 Overall Limits.
          --------------

          (a)  If a Participant is participating in both a Defined Contribution
Plan and a Defined Benefit Plan of the Employer, then the sum of the Defined
Contribution Fraction and the Defined Benefit Fraction for any Limitation Year
shall not exceed 1.0.

          (b)  If the sum of the Defined Contribution Fraction and the Defined
Benefit Fraction would exceed the limits specified in this section, then (unless
the necessary reduction in benefit accruals is mandated under the Defined
Benefit Plan) the Annual Additions under this Plan for that Participant shall be
reduced to the extent necessary to prevent such limits from being exceeded.

          (c)  The provisions of this section shall only apply to Limitation
Years beginning before January 1, 2000.

     10.3 Annual Adjustments to Limits.  The dollar limits for Annual Additions
          ----------------------------
and the dollar limits in the Defined Benefit Fraction and Defined Contribution
Fraction shall be adjusted for cost-of-living to the extent permitted under
section 415 of the Code.
<PAGE>

                                      -74-

     10.4 Excess Amounts.
          --------------

          (a)  The foregoing limits shall be limits on the allocation that may
be made to a Participant's Accounts in any Limitation Year. If an excess Annual
Addition would otherwise result from allocation of forfeitures, reasonable
errors in determining Compensation or other comparable reasons, then the
Administrator may take any (or all) of the following steps to prevent the excess
Annual Additions from being allocated:

               (1)  return any contributions from the Participant, as long as
such return is nondiscriminatory;

               (2)  hold the excess amounts unallocated in a suspense account
and apply the balance of the suspense account against Employer Contributions for
that Participant made in succeeding years;

               (3)  hold the excess amounts unallocated in a suspense account
and apply the balance of the suspense account against succeeding year Employer
Contributions;

               (4)  reallocate the excess amounts to other Participants.

          (b)  Any suspense account established under this section shall not be
credited with income or loss unless otherwise directed by the Administrator.  If
a suspense account under this section is to be applied in a subsequent
Limitation Year, then the amounts in the suspense account shall be applied
before any Annual Additions (other than forfeitures) are made for such
Limitation Year.
<PAGE>

                                      -75-

     10.5 Definitions.
          -----------

          (a)  The following terms shall have the meanings specified:

               (1)  Annual Addition.  The sum for any Limitation Year of
                    ---------------
additions (not including Rollover Contributions) to a Participant's Account as a
result of:

                    (A)  Employer Contributions (including Qualified Nonelective
Contributions and Elective Deferrals);

                    (B)  Employee contributions;

                    (C)  forfeitures; and

                    (D)  amounts described in Code sections 415(l)(1) and
419A(d)(2).

               (2)  Defined Benefit Fraction.  A fraction, the numerator of
                    ------------------------
which is the Projected Annual Benefit of the Participant under all Defined
Benefit Plans of the Employer (determined as of the close of the Limitation
Year) and the denominator of which is the Projected Annual Benefit the
Participant would have under such plans (determined as of the close of the
Limitation Year) if such plans provided an annual benefit equal to the lesser
of:

                    (A)  the product of 1.25 multiplied by ninety thousand
dollars ($90,000); or
<PAGE>

                                      -76-

               (B)  the product of 1.4 multiplied by one hundred percent (100%)
of the Participant's average Compensation for the Participant's three (3)
consecutive Years of Service that produce the highest average Compensation.

          (3)  Defined Benefit Plan.  Any plan qualified under section
               --------------------
401(a) of the Code that is not a Defined Contribution Plan.

          (4)  Defined Contribution Fraction.  A fraction, the numerator of
               -----------------------------
which is the sum of the Annual Additions to the Participant's Accounts as of the
close of the Limitation Year, and the denominator of which is equal to the sum
of the lesser of the following amounts determined for such Limitation Year and
for each prior Year of Service with the Employer:

               (A)  the product of 1.25 multiplied by thirty thousand dollars
($30,000); or

               (B)  the product of 1.4 multiplied by twenty-five percent (25%)
of the Participant's Compensation.

          (5)  Defined Contribution Plan.  A plan qualified under section 401(a)
               -------------------------
of the Code that provides an individual account for each Participant and
benefits based solely on the amount contributed to the Participant's account,
plus any income, expenses, gains and losses, and forfeitures of other
Participants which may be allocated to such Participant's account.

          (6)  Limitation Year.  The Plan Year, until the Company adopts a
               ---------------
different Limitation Year.
<PAGE>

                                      -77-

               (7)  Projected Annual Benefit.  The annual benefit to which a
                    ------------------------
Participant would be entitled, assuming:

                    (A) the Participant continues in employment until Normal
Retirement Age under the Plan;

                    (B) the Participant's Compensation for the Limitation Year
remains the same until such Normal Retirement Age; and

                    (C) all other relevant factors under the Plan for the
Limitation Year will remain constant.

          (b)  For purposes of this ARTICLE, the term "Compensation" shall mean
all of the wages as defined in section 3401(a) of the Code (for purposes of
income tax withholding at the source), but determined without regard to any
rules that limit the remuneration included in wages based on the nature or
location of the employment or the services performed.  This definition shall be
interpreted in a manner consistent with the requirements of section 415 of the
Code.  Compensation shall also include salary reduction amounts under section
125 cafeteria plans and section 401(k), 403(b) and 457 plans.

                                   ARTICLE XI
                                Top-Heavy Rules
                                ---------------

     11.1 General.  This ARTICLE shall only be applicable if the Plan becomes a
          -------
Top-Heavy Plan under section 416 of the Code.  If the Plan does not become a
Top-Heavy Plan, then none of the provisions of this ARTICLE shall be operative.
The provisions of this ARTICLE shall be interpreted and applied in a manner
consistent with the requirements of section 416 of the Code and the regulations
thereunder.
<PAGE>

                                      -78-

     11.2 Vesting.
          -------

          (a)  If the Plan becomes a Top-Heavy Plan, then amounts in a
Participant's Account attributable to Employer Contributions shall be vested in
accordance with this section, in lieu of section 6.5, to the extent this section
produces a greater degree of vesting.  This section shall only apply to
Participants who have at least an Hour of Service after the Plan becomes a Top-
Heavy Plan.

          (b)  If applicable, amounts in a Participant's Account attributable to
Employer Contributions shall vest as follows:

                    Years of
               Top Heavy Service                  Vested Percentage
               -----------------                  -----------------

               Fewer than 1                            0%
               1 but less than 2                      20%
               2 but less than 3                      40%
               3 but less than 4                      60%
               4 but less than 5                      80%
               5 or more                             100%

          (c)  If the Plan ceases to be a Top-Heavy Plan, then subsection (b)
shall no longer be applicable; provided, however, that in no event shall the
vested percentage of any Participant be reduced by reason of the Plan ceasing to
be a Top-Heavy Plan.  Subsection (b) shall nevertheless continue to apply for
any Participant who was previously covered by it and who has at least three (3)
Years of Top-Heavy Service.

     11.3 Minimum Contribution.
          --------------------

          (a)  For each Plan Year that the Plan is a Top-Heavy Plan, the
Employer shall make an Employer Contribution to be allocated directly to the
Account of each Non-Key Employee as set forth in this section and ARTICLE V.
<PAGE>

                                      -79-

          (b)  The amount of the Employer Contribution (and forfeitures)
required to be contributed and allocated for a Plan Year by this section is
three percent (3%) of the Top-Heavy Compensation for that Plan Year of each Non-
Key Employee who is both a Participant and an Employee on the last day of the
Plan Year for which the Employer Contribution is made, with adjustments as
provided herein. If the Employer Contribution allocated to the Accounts of each
Key Employee for a Plan Year is less than three percent (3%) of his or her Top-
Heavy Compensation, then the Employer Contribution required by the preceding
sentence shall be reduced for that Plan Year to the same percentage of Top-Heavy
Compensation that was allocated to the Account of the Key Employee whose Account
received the greatest allocation of Employer Contributions for that Plan Year,
when computed as a percentage of Top-Heavy Compensation.

          (c)  The contribution required by this section shall be reduced for a
Plan Year to the extent of any Employer Contributions made and allocated under
this Plan or any other contributions from the Employer made and allocated under
this or any other Aggregated Plans.  Elective Deferrals shall be treated as if
they were Employer Contributions for purposes of determining any minimum
contributions required under subsection (b).

     11.4  Definitions.
           -----------

           (a) The following terms shall have the meanings specified herein:
<PAGE>

                                      -80-

               (1)  Aggregated Plans.
                    ----------------

                    (A) The Plan, any plan that is part of a "required
aggregation group" and any plan that is part of a "permissive aggregation group"
that the Employer treats as an Aggregated Plan.

                    (B) The "required aggregation group" consists of each plan
of the Employer in which a Key Employee participates (in the Plan Year
containing the Determination Date or any of the four (4) preceding Plan Years)
and each other plan of the Employer which enables any plan of the Employer in
which a Key Employee participates to meet the requirements of section 401(a)(4)
or section 410(b) of the Code. Also included in the required aggregation group
shall be any terminated plan that covered a Key Employee and was maintained
within the five (5) year period ending on the Determination Date.

                    (C) The "permissive aggregation group" consists of any plan
not included in the "required aggregation group" if the Aggregated Plan
described in subparagraph (A) above would continue to meet the requirements of
section 401(a)(4) and 410 of the Code with such additional plan being taken into
account.

               (2)  Determination Date. The last day of the preceding Plan
                        ------------------
Year, or, in the case of the first plan year of any plan, the last day of such
plan year. The computations made on the Determination Date shall utilize
information from the immediately preceding Valuation Date.
<PAGE>

                                      -81-

               (3)  Key Employee.
                    ------------

                    (A) An Employee (or former Employee) who, at any time during
the Plan Year containing the Determination Date or any of the four (4) preceding
Plan Years, is:

                         (i)   An officer of the Employer with annual Top-Heavy
Compensation for the Plan Year greater than fifty percent (50%) of the amount in
effect under section 415(c)(1)(A) of the Code for the calendar year in which
that Plan Year ends;

                         (ii)  one of the ten (10) Employees owning (or
considered as owning under section 318 of the Code) the largest interest in the
Employer, who has more than one-half of one percent (.5%) interest in the
Employer, and who has annual Top-Heavy Compensation for the Plan Year at least
equal to the maximum dollar limitation under section 415(c)(1)(A) of the Code
for the calendar year in which that Plan Year ends;

                         (iii)  a five percent (5%) or greater shareholder in
the Employer; or

                         (iv)   a one percent (1%) shareholder in the Employer
with annual Top-Heavy Compensation from the Employer of more than one hundred
fifty thousand dollars ($150,000).

                    (B) For purposes of paragraphs (3)(A)(iii) and (3)(A)(iv),
the rules of section 414(b), (c) and (m) of the Code shall not apply.
Beneficiaries of an Employee shall acquire the character of such Employee and
inherited benefits will retain the character of the benefits of the Employee who
performed services.
<PAGE>

                                      -82-

               (4) Non-Key Employee.  Any Employee who is not a Key Employee.
                   ----------------

               (5) Super Top-Heavy Plan. A Top-Heavy Plan in which the sum of
                   --------------------
the present value of the cumulative accrued benefits and accounts for Key
Employees exceeds ninety percent (90%) of the comparable sum determined for all
Employees. The foregoing determination shall be made in the same manner as the
determination of a Top-Heavy Plan under this section.

               (6) Top-Heavy Compensation. The term Top-Heavy Compensation shall
                   ----------------------
have the same meaning as the term Compensation has under section 10.5(b).

               (7) Top-Heavy Plan. The Plan is a Top-Heavy Plan for a Plan Year
                   --------------
if, as of the Determination Date for that Plan Year, the sum of (i) the present
value of the cumulative accrued benefits for Key Employees under all Defined
Benefit Plans that are Aggregated Plans and (ii) the aggregate of the accounts
of Key Employees under all Defined Contribution Plans that are Aggregated Plans
exceeds sixty percent (60%) of the comparable sum determined for all Employees.

               (8) Years of Top-Heavy Service. The number of Years of Service
                   --------------------------
with the Employer that might be counted under section 411(a) of the Code,
disregarding all service that may be disregarded under section 411(a)(4) of the
Code. Such service shall be computed by reference to each Participant's Vesting
Computation Periods.

          (b) The definitions in this section and the provisions of this ARTICLE
shall be interpreted in a manner consistent with section 416 of the Code.
<PAGE>

                                      -83-

     11.5 Special Rules.
          -------------

          (a)  For purposes of determining the present value of the cumulative
accrued benefit for any Participant or the amount of the Account of any
Participant, such present value or amount shall be increased by the aggregate
distributions made with respect to such Participant under the Plan during the
Plan Year that includes the Determination Date and the four (4) preceding Plan
Years (if such amounts would otherwise have been omitted).

          (b)  (1)  In the case of unrelated rollovers and transfers, (i) the
plan making the distribution or transfer is to count the distribution as a
distribution under section 416(g)(3) of the Code, and (ii) the plan accepting
the rollover or transfer is not to consider the rollover or transfer as part of
the accrued benefit if such rollover or transfer was accepted after December 31,
1983, but is to consider it as part of the accrued benefit if such rollover or
transfer was accepted before January 1, 1984.  For this purpose, rollovers and
transfers are to be considered unrelated if they are both initiated by the
Employee and made from a plan maintained by one employer to a plan maintained by
another employer.

               (2) In the case of related rollovers and transfers, the plan
making the distribution or transfer is not to count the distribution or transfer
under section 416(g)(3) of the Code, and the plan accepting the rollover or
transfer counts the rollover or transfer in the present value of the accrued
benefits. For this purpose, rollovers and transfers are to be considered related
if they are not unrelated under subsection (b)(1).

          (c)  If any individual is a Non-Key Employee with respect to any plan
for any Plan Year, but such individual was a Key Employee with respect to such
plan for
<PAGE>

                                      -84-

any prior Plan Year, any accrued benefit for such Employee (and the account of
such Employee) shall not be taken into account.

          (d) Beneficiaries of Key Employees and former Key Employees are
considered to be Key Employees and Beneficiaries of Non-Key Employees and former
Non-Key Employees are considered to be Non-Key Employees.

          (e) The accrued benefit of an Employee who has not performed any
service for the Employer maintaining the Plan at any time during the five (5)
year period ending on the Determination Date is excluded from the calculation to
determine top-heaviness.  However, if an Employee performs no services, such
Employee's total accrued benefit is included in the calculation for top-
heaviness.

     11.6 Adjustment of Limitations.
          -------------------------

          (a) If this section is applicable, then the contribution and benefit
limitations in section 10.5 shall be reduced. Such reduction shall be made by
modifying section 10.5(a)(2)(A) of the definition of Defined Benefit Fraction to
instead be "(A) the product of 1.0 multiplied by ninety thousand dollars
($90,000), or" and by modifying section 10.5(a)(4)(A) of the definition of
Defined Contribution Fraction to instead be "(A) the product of 1.0 multiplied
by thirty thousand dollars ($30,000), or".

          (b) This section shall be applicable for any Plan Year in which
either:

               (1) the Plan is a Super Top-Heavy Plan, or

               (2) the Plan both is a Top-Heavy Plan (but not a Super Top-Heavy
Plan) and provides Employer Contributions (and forfeitures) to the Account of
any
<PAGE>

                                      -85-

Non-Key Employee in an amount less than four percent (4%) of such Participant's
Top-Heavy Compensation, as determined in accordance with section 11.3(b).

                                  ARTICLE XII
                           Administration of the Plan
                           --------------------------

     12.1 Committee as Administrator.  The committee appointed in this section
          --------------------------
shall be the Administrator of the Plan. The name of the committee shall be the
Retirement Committee, shall be appointed by the Board and shall consist of at
least two (2) but not more than five (5) individuals. Members of the committee
shall continue to serve until their death, resignation or removal. The committee
and its members shall be the named fiduciaries of the Plan. If at any time any
of the positions on the committee shall be vacant, the Board may make such
interim appointments to the committee as in its judgment shall be necessary to
ensure effective administration of the Plan. The Board may at any time, without
advance notice and for any reason, remove a member of the committee by written
notice to such member.

     12.2 Procedures.
          ----------

          (a) All resolutions or other actions taken by the Retirement Committee
at a meeting shall be by the affirmative vote of a majority of those present at
the meeting. More than half of the members must be present to constitute a
quorum for a meeting. Any two members of the Retirement Committee may sign any
document or instrument requiring the signature of the committee or otherwise act
on behalf of the committee, unless otherwise directed by the committee.

          (b) The Retirement Committee shall establish such procedures and rules
of conduct as it shall deem advisable.
<PAGE>

                                      -86-

     12.3 Bond and Compensation.  The members of the Retirement Committee shall
          ---------------------
serve without bond, except as otherwise required by law, and without
compensation for their services as such.

     12.4 Duties of the Committee.  The Retirement Committee shall undertake all
          -----------------------
duties assigned to it under the Plan and shall undertake all actions, express or
implied, necessary for the proper administration of the Plan.  The
Administrator's duties and responsibilities include, but are not limited to, the
following:

          (a) adopting and enforcing such rules and regulations that it deems
necessary or appropriate for the administration of the Plan in accordance with
applicable law;

          (b) interpreting the Plan, with its good faith interpretation thereof
to be final and conclusive on any Employee, former Employee, Participant, former
Participant, Beneficiary or other party;

          (c) deciding, in its discretion, all questions concerning the Plan,
including questions of fact and law and the eligibility of any person to
participate in the Plan;

          (d) computing the amounts to be distributed to any Participant, former
Participant or Beneficiary in accordance with the provisions of the Plan,
determining the person or persons to whom such amounts will be distributed and
determining when such amounts will be distributed;

          (e) authorizing the payment of distributions;
<PAGE>

                                      -87-

          (f) keeping such records and submitting such filings, election,
applications, returns or other documents or forms as may be required under the
Code and applicable regulations under ERISA, or under other federal, state or
local law and regulations; and

          (g) appointing such agents, counsel, accountants and consultants as
may be required to assist in administering the Plan.

     12.5 Allocation and Delegation of Responsibilities.
          ---------------------------------------------

          (a) The members of the Retirement Committee (and any other named
Fiduciaries) may allocate any duties and responsibilities under the Plan and
Trust among themselves in any mutually agreed upon manner. Such allocation shall
be in a written document, signed by all members of the Retirement Committee (and
any other named Fiduciaries), which shall specifically set forth this allocation
of duties and responsibilities.

          (b) Except as otherwise provided in ERISA, the Retirement Committee
may delegate its duties and responsibilities under the Plan and Trust. The
persons to whom such delegation may be made shall include, but are not limited
to, professional administrators, investment managers, investment advisers and
custodians.

          (c) Notwithstanding the foregoing provisions of this section, any
responsibilities to manage or control Plan assets (other than the power to
appoint an investment manager) assigned to the Trustees by the Trust shall not
be allocated or delegated to anyone other than the Trustees.

     12.6 Committee Accounts.  The Retirement Committee shall maintain accounts
          ------------------
showing the fiscal transactions of the Plan.
<PAGE>

                                      -88-

     12.7  Company to Furnish Information.  To enable the Retirement Committee
           ------------------------------
to perform its functions, the Company shall supply full and timely information
to the committee on all matters relating to the pay of all Participants, their
retirement, death or other cause of Termination of Employment, and such other
pertinent facts as the Retirement Committee may require.

     12.8  Expenses.  All expenses of Plan administration and operation,
           --------
including the fees of any agents or counsel employed and including any expenses
attributable to a termination of the Plan or Trust, shall be paid by the
Company. Any expenses that the Company fails to pay, including any expenses
attributable to a termination of the Plan and Trust, shall be charged to the
Trust. All investment related expenses, including transactional fees and similar
charges charged by brokerage houses, will be paid by the Company and then
charged directly against the Accounts of Participants from whom such expenses
were incurred.

     12.9  Indemnification.  The Company hereby agrees to indemnify each and
           ---------------
every individual Trustee, member of the Retirement Committee or Employee acting
on behalf of the committee or Trustees for any expenses or liabilities (other
than those due to willful misconduct) actually incurred in the performance of
their duties under the Plan and Trust.

     12.10 Reports.  The Retirement Committee shall be responsible for filing
           -------
all forms, reports and documents required by law and for providing all necessary
notices to Employees and Beneficiaries, including those respecting the adoption
and qualification of the Plan.
<PAGE>

                                      -89-

                                  ARTICLE XIII
                                Claims Procedure
                                ----------------

     13.1 Claims Submission.
          -----------------

          (a) All claims for benefits under the Plan by a Participant or
Beneficiary, regardless of the nature of the claim, shall be initially submitted
in writing to the Administrator. Such claims shall be submitted within a
reasonable period of time after the date such benefit was, or was purported to
be, available to the Participant or Beneficiary, with such determination of
reasonableness to be made by the Administrator in its sole discretion. All
claims must adequately state the basis for the claim including a statement of
all pertinent facts and applicable law, except to the extent expressly waived by
the Administrator. The Administrator may prescribe additional procedural
requirements for claims, not inconsistent herewith.

          (b) In the event that a Participant or Beneficiary does not receive
any Plan benefit that is claimed, such Participant or Beneficiary shall be
entitled to consideration and review as provided in this ARTICLE. Such
consideration and review shall be conducted in a manner designed to comply with
section 503 of ERISA.

          (c) Failure to follow the requirements of this ARTICLE shall result in
the denial of the claim submitted. The Participant or Beneficiary submitting
such deficient claim shall be deemed to have not exhausted his or her
administrative remedies under the Plan.

     13.2 Claim Review.  Upon receipt of any written claim for benefits, the
          ------------
Administrator shall be notified and shall give due consideration to the claim
presented. If the claim is denied to any extent by the Administrator, the
Administrator shall furnish the claimant with a written notice setting forth (in
a manner calculated to be understood by the claimant):
<PAGE>

                                      -90-

          (a) the specific reason or reasons for denial of the claim;

          (b) a specific reference to the Plan provisions on which the denial is
based;

          (c) a description of any additional material or information necessary
for the claimant to perfect the claim and an explanation of why such material or
information is necessary; and

          (d) an explanation of the provisions of this ARTICLE.

     13.3 Right of Appeal.  A claimant who has a claim denied under section 13.2
          ---------------
may appeal to the Administrator for reconsideration of that claim. A request for
reconsideration under this section must be filed by written notice within sixty
(60) days after receipt by the claimant of the notice of denial under section
13.2.

     13.4 Review of Appeal.  Upon receipt of an appeal the Administrator shall
          ----------------
promptly take action to give due consideration to the appeal. Such consideration
may include a hearing of the parties involved, if the Administrator feels such a
hearing is necessary. In preparing for this appeal the claimant shall be given
the right to review pertinent documents and the right to submit in writing a
statement of issues and comments. After consideration of the merits of the
appeal, the Administrator shall issue a written decision which shall be binding
on all parties. The decision shall be written in a manner calculated to be
understood by the claimant and shall specifically state its reasons and
pertinent Plan provisions on which it relies. The Trustees' decision shall be
issued within sixty (60) days after the appeal is filed, except that if a
hearing is held, the decision may be issued within one hundred twenty (120) days
after the appeal is filed.
<PAGE>

                                      -91-

     13.5 Designation.  The Administrator may designate one or more of its
          -----------
members or any other person of its choosing to make any determination otherwise
required under this ARTICLE.

                                  ARTICLE XIV
                                  Amendments
                                  ----------

     14.1 Right to Amend.  The Company reserves the right to amend this Plan at
          --------------
any time, in whole or in part, before or after a termination of the Plan, by an
instrument in writing executed by the Company. The Company shall furnish the
Administrator and the Trustees with a copy of any amendment adopted within
thirty (30) days after such amendment is adopted or effective, whichever is
later.

     14.2 Limitations.  An amendment of this Plan shall not:
          -----------

          (a) reduce any vested right or interest to which any Participant or
Beneficiary is then entitled under this Plan or otherwise reduce the vested
rights of a Participant in violation of section 411(d)(6) of the Code;

          (b) vest in the Employer any interest or control over any assets of
the Trust;

          (c) cause any assets of the Trust to be used for, or diverted to,
purposes other than for the exclusive benefit of Participants and their
Beneficiaries; or

          (d) change any of the rights, duties or powers of the Trustees without
their written consent.

     14.3 Amendment to Vesting Schedule.  Any amendment that modifies the
          -----------------------------
vesting provisions of section 6.5 shall either:
<PAGE>

                                      -92-

          (a)  provide for a rate of vesting that is at least as rapid for any
Participant as the vesting schedule previously in effect; or

          (b)  provide that any adversely affected Participant with at least
three (3) Years of Service may elect, in writing, to remain under the vesting
schedule in effect prior to the amendment. Such election must be made within
sixty (60) days after the later of the:

               (1)  adoption of the amendment;

               (2)  effective date of the amendment; or

               (3)  issuance by the Company of written notice of the amendment.

                                   ARTICLE XV
                                  Termination
                                  -----------

     15.1 Right to Terminate.  The Company may terminate this Plan by an
          ------------------
instrument in writing executed by the Company. The Company shall furnish the
Administrator and the Trustees with a copy of such written instrument within
thirty (30) days after it is adopted or effective, whichever is later. Neither a
temporary cessation nor the suspension of Employer Contributions shall be deemed
to be a termination of this Plan.

     15.2 Full Vesting on Termination.  Upon termination of this Plan, or
          ---------------------------
permanent discontinuance of Employer Contributions hereunder, with or without
written notification, the rights of each Participant to the amounts credited to
that Participant's Account at such time shall be fully vested and
nonforfeitable.
<PAGE>

                                      -93-

     15.3 Partial Termination.  In the event a partial termination of the Plan
          -------------------
is deemed to have occurred, each Participant affected shall be fully vested in
the amounts credited to that Participant's Account with respect to which the
partial termination has occurred. The Trustees shall hold such assets under the
Trust until a distribution is otherwise required (determined without regard to
this section).

     15.4 Distribution on Termination.
          ---------------------------

          (a)  (1)  If the Plan is terminated, or contributions permanently
discontinued, the Employer, at its discretion, may (at that time or at any later
time) direct the Trustees to distribute the amounts in a Participant's Account
in accordance with the distribution provisions of the Plan. If the Plan does not
offer an annuity option, then such distribution shall, notwithstanding any prior
provisions of the Plan, be made in a single lump-sum without the Participant's
consent as to the form or timing of such distribution. If, however, the Employer
maintains another defined contribution plan (other than an employee stock
ownership plan), then the preceding sentence shall not apply and the Employer,
at its discretion, may direct such distributions to be made as a direct transfer
to such other plan without the Participant's consent, if the Participant does
not consent to an immediate distribution.

               (2)  If the Employer does not direct distribution under paragraph
(1), each Participant's Account shall be maintained until distributed in
accordance with the provisions of the Plan (determined without regard to this
section) as though the Plan had not been terminated or contributions
discontinued.

          (b)  If the Administrator determines that it is administratively
impracticable to make distributions under this section in cash or that it would
be in the Participant's best interest to make some or all of the distributions
with in-kind property, it
<PAGE>

                                      -94-

shall offer all Participants and Beneficiaries entitled to a distribution under
this section a reasonable opportunity to elect to receive a distribution of the
in-kind property being distributed by the Trust. Those Participants and
Beneficiaries so electing shall receive a proportionate share of such in-kind
property in the form (outright, in trust or in partnership) that the
Administrator determines will provide the most feasible method of distribution.

          (c)  (1)  Amounts attributable to elective contributions shall only be
distributable by reason of this section if one of the following is applicable:

                    (A) the Plan is terminated without the establishment or
maintenance of another defined contribution plan (other than an employee stock
ownership plan);

                    (B) the Employer has a sale or other disposition to an
unrelated corporation of substantially all of the assets used by the Employer in
a trade or business of the Employer with respect to an Employee who continues
employment with the corporation acquiring such assets; or

                    (C) the Employer has a sale or other disposition to an
unrelated entity of the Employer's interest in a subsidiary with respect to an
Employee who continues employment with such subsidiary.

               (2)  For purposes of this section, the term "elective
contributions" means employer contributions made to the Plan that were subject
to a cash or deferred election under a cash or deferred arrangement.
<PAGE>

                                      -95-

     15.5 Affect on Benefits.  A termination of the Plan or a permanent
          ------------------
discontinuance of contributions thereto will not affect the validity of the
Trust or the rights and duties of the Trustees thereunder to pay benefits as
provided in this Plan.

                                  ARTICLE XVI
                                 Miscellaneous
                                 -------------

     16.1 IRS Approval.  Notwithstanding anything in this instrument to the
          ------------
contrary, if the Internal Revenue Service shall fail or refuse to issue its
initial determination that the Plan qualifies under section 401(a) of the Code
and the Trust qualifies under section 501(a) of the Code, then the Plan and
Trust, at the election of the Employer, shall be void as of the Effective Date
and all Employer Contributions, Qualified Nonelective Contributions, Qualified
Matching Contributions, Elective Deferrals and Rollover Contributions (including
earnings or losses attributable thereto) shall be returned to the respective
parties making such contributions.

     16.2 No Assignment.
          -------------

          (a) Except as provided herein, the right of any Participant or
Beneficiary to any benefit or to any payment hereunder shall not be subject to
alienation, assignment, garnishment, attachment, execution or levy of any kind.

          (b) Subsection (a) shall not apply to any payment or transfer
permitted by the Internal Revenue Service pursuant to regulations issued under
section 401(a)(13) of the Code.

          (c) Subsection (a) shall not apply to any payment or transfer pursuant
to a Qualified Domestic Relations Order.
<PAGE>

                                      -96-

          (d) Subsection (a) shall not apply to any payment or transfer to the
Trust in accordance with section 401(a)(13)(C) of the Code to satisfy the
Participant's liabilities to the Plan or Trust in any one or more of the
following circumstances:

               (1) the Participant is convicted of a crime involving the Plan;

               (2) a civil judgment (or consent order or decree) in an action is
brought against the Participant in connection with an ERISA fiduciary violation;
or

               (3) the Participant enters into a settlement agreement with the
Department of Labor or the Pension Benefit Guaranty Corporation over an ERISA
fiduciary violation.

     16.3 Merger.  In the event of a merger, consolidation or transfer of assets
          ------
or liabilities of this Plan and Trust to any other plan, each Participant or
Beneficiary shall be entitled to receive a benefit immediately after the merger,
consolidation or transfer (as if the Plan were terminated) at least equal to the
benefit that would have been receivable immediately before the merger,
consolidation or transfer (as if the Plan were terminated).

     16.4 Governing Law.  This Plan shall be governed by, construed and
          -------------
administered in accordance with ERISA and any other applicable federal law;
provided, however, that to the extent not preempted by federal law this Plan
shall be governed by, construed and administered under the laws of the State of
Delaware, other than its laws respecting choice of law.

     16.5 Construction.  The provisions of this Plan shall be interpreted and
          ------------
construed in accordance with the requirements of the Code and ERISA. Any
amendment or restatement of the Plan or Trust that would otherwise violate the
requirements of section 411(d)(6) of the Code or otherwise cause the Plan or
Trust to cease to be qualified
<PAGE>

                                      -97-

under section 401(a) of the Code shall be deemed to be invalid. Capitalized
terms shall have meanings as defined herein. Singular nouns shall be read as
plural, masculine pronouns shall be read as feminine and vice versa, as
appropriate. References to "section" or "ARTICLE" shall be read as references to
appropriate provisions of this Plan, unless otherwise indicated.

     16.6 Company Determinations.  Any determinations, actions or decisions of
          ----------------------
the Company (including but not limited to, Plan amendments and Plan termination)
shall be made by its board of directors in accordance with its established
procedures or by such other individuals, groups or organizations that have been
properly delegated by the board of directors to make such determination or
decision.

     16.7 Counterpart Originals.  This document may be executed in more than one
          ---------------------
counterpart original.

     16.8 Affect on Employment Rights.  Neither the existence of the Plan and
          ---------------------------
Trust nor the substance of any of their provisions shall have any affect on the
employment rights of any Employee.

     IN WITNESS WHEREOF, the Company, on behalf of the Employers, has caused
this Plan to be executed by a duly authorized officer this ____ day of
_________________________, 1999.

Attest:                       UNITED RENTALS, INC.

                           By:
_________________________     __________________________________________
                              Wayland R. Hicks, Chief Operating Officer
<PAGE>

                                   APPENDIX A

                       Adopting Non-Affiliated Employers
                       ---------------------------------

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
<PAGE>

                                 Amendment #1
                  United Rentals, Inc. 401(k) Investment Plan

          United Rentals, Inc. (the "Company") hereby adopts this Amendment to
the United Rentals, Inc. 401(k) Investment Plan ("Plan") on this 18th day of
April, 2000.

     WHEREAS, section 14.1 of the Plan provides the Company with the right to
amend the Plan; and

     WHEREAS, the Company wishes to amend the Plan to liberalize the
requirements that employees must meet for entry into participation in the Plan.

     NOW, THEREFORE, the Plan is hereby amended, effective May 1, 2000, as
follows:

Section 2.13 of the Plan is amended in its entirety to read as follows:

     Employee.  Except to the extent otherwise provided herein, any person
     ---------
employed by an Employer, who is expressly so designated as an Employee on the
books and records of the Employer, and who is treated as such by the Employer
for federal employment tax purposes. Any person who, after the close of a Plan
Year, is retroactively treated by the Employer or any other party as an Employee
for such prior Plan Year shall not, for purposes of the Plan, be considered an
Employee for such prior Plan Year unless expressly so treated as such by the
Employer. The term "Employee" shall only include individuals who have attained
age twenty-one (21).

Section 2.17 of the Plan is amended in its entirety to read as follows:

     Entry Dates.  The first day following the date an Employee meets the
     ------------
eligibility requirements.

Section 3.1(a) of the Plan is amended in its entirety to read as follows:

     (a)  Except as described in subsections (b), (c), (d), (e) and (f) below,
each Employee and any person who subsequently becomes an Employee shall be
entitled to become a Participant on the first day following the Employee's six
(6) month anniversary of his or her Employment Commencement Date and attainment
of age twenty-one (21).
<PAGE>

Section 3.1(d) of the Plan is amended in its entirety to read as follows:

     (d) If an Employee who has satisfied the participation requirements fails
to join the Plan and the Employee separates from employment but subsequently
becomes an Employee again, then such Employee shall, on reemployment by the
Employer, be immediately eligible to join the Plan.

Section 3.1(f) of the Plan is amended in its entirety to read as follows:

     (f) If an Employee who is eligible to participate in the Plan does not join
the Plan when he or she is first eligible to join, then such Employee may
subsequently join the Plan on any subsequent day provided the Employee completes
and submits a salary reduction form to the Plan Administrator.

     IN WITNESS WHEREOF, the Company has caused this Amendment to be executed by
its duly authorized officer on the date first hereinabove set forth, effective
as herein set forth.

Attest:                                 UNITED RENTALS, INC.

_______________________             By: -------------------------------
                                        [name and title]

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