Document:

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                                                                   EXHIBIT 4.2

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                           NEON COMMUNICATIONS, INC.,

                                     Issuer

                                       AND

                                 [              ],

                                     Trustee

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

                                    INDENTURE

                          Dated as of [    ], 200[ ]

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

                          Subordinated Debt Securities

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                            CROSS-REFERENCE TABLE(1)

Section of
Trust Indenture Act                                               Section of
of 1939, as Amended                                               Indenture
-------------------                                               ----------
310(a)........................................................... 7.09
310(b)........................................................... 7.08
                                                                  7.10
310(c)........................................................... Inapplicable
311(a)........................................................... 7.13(a)
311(b)........................................................... 7.13(b)
311(c)........................................................... Inapplicable
312(a)........................................................... 5.02(a)
312(b)........................................................... 5.02(b)
312(c)........................................................... 5.02(c)
313(a)........................................................... 5.04(a)
313(b)........................................................... 5.04(b)
313(c)........................................................... 5.04(a)
                                                                  5.04(b)
313(d)........................................................... 5.04(c)
314(a)........................................................... 5.03
314(b)........................................................... Inapplicable
314(c)........................................................... 13.06
314(d)........................................................... Inapplicable
314(e)........................................................... 13.06
314(f)........................................................... Inapplicable
315(a)........................................................... 7.01(a)
                                                                  7.02
315(b)........................................................... 6.07
315(c)........................................................... 7.01
315(d)........................................................... 7.01(b)
                                                                  7.01(c)
315(e)........................................................... 6.07
316(a)........................................................... 6.06
                                                                  8.04
316(b)........................................................... 6.04
316(c)........................................................... 8.01
317(a)........................................................... 6.02
317(b)........................................................... 4.03
318(a)........................................................... 13.08
--------------------
(1)      This Cross-Reference Table does not constitute part of the Indenture
         and shall not have any bearing on the interpretation of any of its
         terms or provisions.

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                              TABLE OF CONTENTS(2)

<TABLE>
<CAPTION>

<S>                                                                                                             <C>
ARTICLE I  DEFINITIONS............................................................................................1
         SECTION 1.01          Definitions of Terms...............................................................1

ARTICLE II  ISSUE, DESCRIPTION, TERMS, EXECUTION,
REGISTRATION AND EXCHANGE OF SECURITIES...........................................................................5
         SECTION 2.01          Designation and Terms of Securities................................................5
         SECTION 2.02          Form of Securities and Trustee's Certificate.......................................6
         SECTION 2.03          Denominations:  Provisions for Payment.............................................7
         SECTION 2.04          Execution and Authentications......................................................8
         SECTION 2.05          Registration of Transfer and Exchange..............................................9
         SECTION 2.06          Temporary Securities..............................................................10
         SECTION 2.07          Mutilated, Destroyed, Lost or Stolen Securities...................................10
         SECTION 2.08          Cancellation......................................................................11
         SECTION 2.09          Benefits of Indenture.............................................................11
         SECTION 2.10          Authenticating Agent..............................................................12
         SECTION 2.11          Global Securities.................................................................12

ARTICLE III  REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS................................................13
         SECTION 3.01          Redemption........................................................................13
         SECTION 3.02          Notice of Redemption..............................................................13
         SECTION 3.03          Payment Upon Redemption...........................................................15
         SECTION 3.04          Sinking Fund......................................................................15
         SECTION 3.05          Satisfaction of Sinking Fund Payments with Securities.............................15
         SECTION 3.06          Redemption of Securities for Sinking Fund.........................................16

ARTICLE IV  COVENANTS............................................................................................16
         SECTION 4.01          Payment of Principal, Premium and Interest........................................16
         SECTION 4.02          Maintenance of Office or Agency...................................................16
         SECTION 4.03          Paying Agents.....................................................................16
         SECTION 4.04          Appointment to Fill Vacancy in Office of Trustee..................................17
         SECTION 4.05          Compliance with Consolidation Provisions..........................................18

ARTICLE V  SECURITYHOLDERS'LISTS AND REPORTS
BY THE COMPANY AND THE TRUSTEE...................................................................................18
         SECTION 5.01          Company to Furnish Trustee Names and Addresses
         of Securityholders.   18
         SECTION 5.02          Preservation Of Information; Communications With Securityholders..................18
         SECTION 5.03          Reports by the Company............................................................18
         SECTION 5.04          Reports by the Trustee............................................................19

ARTICLE VI  REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
ON EVENT OF DEFAULT..............................................................................................19
         SECTION 6.01          Events of Default.................................................................19
         SECTION 6.02          Collection of Indebtedness and Suits for Enforcement by Trustee...................21
         SECTION 6.03          Application of Moneys Collected...................................................22

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         SECTION 6.04          Limitation on Suits...............................................................23
         SECTION 6.05          Rights and Remedies Cumulative; Delay or Omission Not Waiver......................23
         SECTION 6.06          Control by Securityholders........................................................24
         SECTION 6.07          Undertaking to Pay Costs..........................................................24

ARTICLE VII  CONCERNING THE TRUSTEE..............................................................................25
         SECTION 7.01          Certain Duties and Responsibilities of Trustee....................................25
         SECTION 7.02          Certain Rights of Trustee.........................................................26
         SECTION 7.03          Trustee Not Responsible for Recitals or Issuance or Securities....................27
         SECTION 7.04          May Hold Securities...............................................................27
         SECTION 7.05          Moneys Held in Trust..............................................................27
         SECTION 7.06          Compensation and Reimbursement....................................................28
         SECTION 7.07          Reliance on Officers'Certificate..................................................28
         SECTION 7.08          Disqualification; Conflicting Interests...........................................28
         SECTION 7.09          Corporate Trustee Required; Eligibility...........................................28
         SECTION 7.10          Resignation and Removal; Appointment of Successor.................................29
         SECTION 7.11          Acceptance of Appointment By Successor............................................30
         SECTION 7.12          Merger, Conversion, Consolidation or Succession to Business.......................31
         SECTION 7.13          Preferential Collection of Claims Against the Company.............................32

ARTICLE VIII  CONCERNING THE SECURITYHOLDERS.....................................................................32
         SECTION 8.01          Evidence of Action by Securityholders.............................................32
         SECTION 8.02          Proof of Execution by Securityholders.............................................32
         SECTION 8.03          Who May be Deemed Owners..........................................................33
         SECTION 8.04          Certain Securities Owned by Company Disregarded...................................33
         SECTION 8.05          Actions Binding on Future Securityholders.........................................33

ARTICLE IX  SUPPLEMENTAL INDENTURES..............................................................................34
         SECTION 9.01          Supplemental Indentures Without the Consent of Securityholders....................34
         SECTION 9.02          Supplemental Indentures With Consent of Securityholders...........................35
         SECTION 9.03          Effect of Supplemental Indentures.................................................35
         SECTION 9.04          Securities Affected by Supplemental Indentures....................................35
         SECTION 9.05          Execution of Supplemental Indentures..............................................36

ARTICLE X  SUCCESSOR ENTITY......................................................................................36
         SECTION 10.01         Company May Consolidate, Etc......................................................36
         SECTION 10.02         Successor Entity Substituted......................................................37
         SECTION 10.03         Evidence of Consolidation, Etc. to Trustee........................................37

ARTICLE XI  SATISFACTION AND DISCHARGE...........................................................................37
         SECTION 11.01         Satisfaction and Discharge of Indenture...........................................37
         SECTION 11.02         Discharge of Obligations..........................................................38
         SECTION 11.03         Deposited Moneys to be Held in Trust..............................................38
         SECTION 11.04         Payment of Moneys Held by Paying Agents...........................................38
         SECTION 11.05         Repayment to Company..............................................................39

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ARTICLE XII  IMMUNITY OF INCORPORATORS, STOCKHOLDERS,
OFFICERS  AND DIRECTORS..........................................................................................39
         SECTION 12.01         No Recourse.......................................................................39

ARTICLE XIII  MISCELLANEOUS PROVISIONS...........................................................................39
         SECTION 13.01         Effect on Successors and Assigns..................................................39
         SECTION 13.02         Actions by Successor..............................................................40
         SECTION 13.03         Surrender of Company Powers.......................................................40
         SECTION 13.04         Notices...........................................................................40
         SECTION 13.05         Governing Law.....................................................................40
         SECTION 13.06         Treatment of Securities as Debt...................................................40
         SECTION 13.07         Compliance Certificates and Opinions..............................................40
         SECTION 13.08         Payments on Business Days.........................................................41
         SECTION 13.09         Conflict with Trust Indenture Act.................................................41
         SECTION 13.10         Counterparts......................................................................41
         SECTION 13.11         Separability......................................................................41
         SECTION 13.12         Assignment........................................................................41

ARTICLE XIV  SUBORDINATION OF SECURITIES.........................................................................42
         SECTION 14.01         Subordination Terms...............................................................42

</TABLE>

(2)      This Table of Contents does not constitute part of the Indenture and
         shall not have any bearing on the interpretation of any of its terms or
         provisions.

                                       iv

<PAGE>

         INDENTURE, dated as of [ ], 200[ ], among NEON Communications, Inc., a
Delaware corporation (the "Company"), and [ ], as trustee (the "Trustee"):

         WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of unsecured subordinated debt securities (hereinafter referred to as
the "Securities"), in an unlimited aggregate principal amount to be issued from
time to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the
Trustee;

         WHEREAS, to provide the terms and conditions upon which the Securities
are to be authenticated, issued and delivered, the Company has duly authorized
the execution of this Indenture; and

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

         NOW, THEREFORE, in consideration of the premises and the purchase of
the Securities by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of Securities:

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.01      Definitions of Terms.

         The terms defined in this Section (except as in this Indenture
otherwise expressly provided or unless the context otherwise requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section and shall include the plural
as well as the singular. All other terms used in this Indenture that are defined
in the Trust Indenture Act of 1939, as amended, or that are by reference in such
Act defined in the Securities Act of 1933,as amended (except as herein otherwise
expressly provided or unless the context otherwise requires), shall have the
meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

         "Authenticating Agent" means an authenticating agent with respect to
all or any of the series of Securities appointed with respect to all or any
series of the Securities by the Trustee pursuant to Section 2.10.

         "Bankruptcy Law" means Title 11, U.S. Code, or any similar federal or
state law for the relief of debtors.

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

<PAGE>

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

         "Business Day" means, with respect to any series of Securities, any day
other than a day on which Federal or State banking institutions in the Borough
of Manhattan, The City of New York, are authorized or obligated by law,
executive order or regulation to close.

         "Certificate" means a certificate signed by the principal executive
officer, the principal financial officer or the principal accounting officer of
the Company. The Certificate need not comply with the provisions of Section
13.07.

         "Company" means NEON Communications, Inc., a corporation duly organized
and existing under the laws of the State of Delaware, and, subject to the
provisions of Article Ten, shall also include its successors and assigns.

         "Corporate Trust Office" means the office of the Trustee at which, at
any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at [ ], except that
whenever a provision herein refers to an office or agency of the Trustee in the
Borough of Manhattan, The City of New York, such office is located, at the date
hereof, at [ ].

         "Custodian" means any receiver, trustee, assignee, liquidator, or
similar official under any Bankruptcy Law.

         "Default" means any event, act or condition that with notice or lapse
of time, or both, would constitute an Event of Default.

         "Depositary" means, with respect to Securities of any series, for which
the Company shall determine that such Securities will be issued as a Global
Security, The Depository Trust Company, New York, New York, another clearing
agency, or any successor registered as a clearing agency under the Securities
and Exchange Act of 1934, as amended (the "Exchange Act"), or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.

         "Event of Default" means, with respect to Securities of a particular
series any event specified in Section 6.01, continued for the period of time, if
any, therein designated.

         "Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.

         "Governmental Obligations" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America that, in either case, are not
callable or redeemable at

                                       3
<PAGE>

the option of the issuer thereof, and shall also include a depositary receipt
issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933,
as amended) as custodian with respect to any such Governmental Obligation or a
specific payment of principal of or interest on any such Governmental Obligation
held by such custodian for the account of the holder of such depositary receipt;
provided, however, 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
Governmental Obligation or the specific payment of principal of or interest on
the Governmental Obligation evidenced by such depositary receipt.

         "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.

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into in accordance with the terms hereof.

         "Interest Payment Date", when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

         "Officers' Certificate" means a certificate signed by the President or
a Vice President and by the Treasurer or an Assistant Treasurer or the
Controller or an Assistant Controller or the Secretary or an Assistant Secretary
of the Company that is delivered to the Trustee in accordance with the terms
hereof. Each such certificate shall include the statements provided for in
Section 13.07, if and to the extent required by the provisions thereof.

         "Opinion of Counsel" means an opinion in writing of legal counsel, who
may be an employee of or counsel for the Company that is delivered to the
Trustee in accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.07, if and to the extent required by the
provisions thereof.

         "Outstanding", when used with reference to Securities of any series,
means, subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions
thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been set
aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of
such Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as in Article Three provided, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section 2.07.

                                       3
<PAGE>

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

         "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 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

         "Responsible Officer" when used with respect to the Trustee means the
Chairman of the Board of Directors, the President, any Vice President, the
Secretary, the Treasurer, any trust officer, any corporate trust officer or any
other officer or assistant officer of the Trustee customarily performing
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of his or her knowledge of and familiarity with the particular subject.

         "Securities" means the debt Securities authenticated and delivered
under this Indenture.

         "Securityholder", "holder of Securities", "registered holder", or other
similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose
in accordance with the terms of this Indenture.

         "Subsidiary" means, with respect to any Person, (i) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, (ii) any general
partnership, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by such
Person, or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership of which such Person or
any of its Subsidiaries is a general partner.

         "Trustee" means [ ], and, subject to the provisions of Article Seven,
shall also include its successors and assigns, and, if at any time there is more
than one Person acting in such capacity hereunder, "Trustee" shall mean each
such Person. The term "Trustee" as used with respect to a particular series of
the Securities shall mean the trustee with respect to that series.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, subject to the provisions of Sections 9.01, 9.02, and 10.01, as in
effect at the date of execution of this instrument.

         "Voting Stock", as applied to stock of any Person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person having ordinary voting power for the election of a
majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason
of the occurrence of a contingency.

                                       4
<PAGE>

                                   ARTICLE II

                      ISSUE, DESCRIPTION, TERMS, EXECUTION,
                     REGISTRATION AND EXCHANGE OF SECURITIES

SECTION 2.01      Designation and Terms of Securities.

         (a) The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued in one or more series up to the aggregate principal amount of
Securities of that series from time to time authorized by or pursuant to a Board
Resolution of the Company or pursuant to one or more indentures supplemental
hereto. Prior to the initial issuance of Securities of any series, there shall
be established in or pursuant to a Board Resolution of the Company, and set
forth in an Officers' Certificate of the Company, or established in one or more
indentures supplemental hereto:

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

              (2) any limit upon the aggregate principal amount of the
Securities of that series that 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 that
series);

              (3) the date or dates on which the principal of the Securities of
the series is payable and the place(s) of payment;

              (4) the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

              (5) the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates, the place(s) of payment, and the
record date for the determination of holders to whom interest is payable on any
such Interest Payment Dates;

              (6) the right, if any, to extend the interest payment periods and
the duration of such extension;

              (7) the period or periods within which, the price or prices at
which and the terms and conditions upon which, Securities of the series may be
redeemed, in whole or in part, at the option of the Company;

              (8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions
(including payments made in cash in satisfaction of future sinking fund
obligations) or at the option of a holder thereof and the period or periods
within which, the price or prices at which, and the terms and conditions upon
which, Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation;

                                       5
<PAGE>

              (9) the subordination terms of the Securities of the series;

              (10) the form of the Securities of the series including the form
of the Certificate of Authentication for such series;

              (11) if other than denominations of one thousand U.S. dollars
($1,000) or any integral multiple thereof, the denominations in which the
Securities of the series shall be issuable;

              (12) any and all other terms with respect to such series (which
terms shall not be inconsistent with the terms of this Indenture, as amended by
any supplemental indenture) including any terms which may be required by or
advisable under United States laws or regulations or advisable in connection
with the marketing of Securities of that series;

              (13) whether the Securities are issuable as a Global Security and,
in such case, the identity of the Depositary for such series;

              (14) whether the Securities will be convertible into shares of
common stock or other securities of the Company and, if so, the terms and
conditions upon which such Securities will be so convertible, including the
conversion price and the conversion period;

              (15) if other than the principal amount thereof, the portion of
the principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.01;
and

              (16) any additional or different Events of Default or restrictive
covenants provided for with respect to the Securities of the series.

         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 any such Board Resolution or in any indentures supplemental hereto.

         If any of the terms of the series are established by action taken
pursuant to a Board Resolution of the Company, 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
Officers' Certificate of the Company setting forth the terms of the series.

         Securities of any particular series may be issued at various times,
with different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by which
rates of interest may be determined, with different dates on which such interest
may be payable and with different redemption dates.

SECTION 2.02      Form of Securities and Trustee's Certificate.

         The Securities of any series and the Trustee's certificate of
authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution of the Company and as set forth in an
Officers' Certificate of the Company and the and may have such letters, numbers
or

                                       6
<PAGE>

other marks of identification or designation and such legends or endorsements
printed, lithographed or engraved thereon as the Company may deem appropriate
and as are not inconsistent with the provisions of this Indenture, or as may be
required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which Securities
of that series may be listed, or to conform to usage.

SECTION 2.03      Denominations:  Provisions for Payment.

         The Securities shall be issuable as registered Securities and in the
denominations of one thousand U.S. dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(11). The Securities of a particular series
shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any
series, as well as any premium thereon in case of redemption thereof prior to
maturity, shall be payable in the coin or currency of the United States of
America that at the time is legal tender for public and private debt, at the
office or agency of the Company maintained for that purpose in the Borough of
Manhattan, the City and State of New York. Each Security shall be dated the date
of its authentication. Interest on the Securities shall be computed on the basis
of a 360-day year composed of twelve 30-day months.

         The interest installment on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date for
Securities of that series shall be paid to the Person in whose name said
Security (or one or more Predecessor Securities) is registered at the close of
business on the regular record date for such interest installment. In the event
that any Security of a particular series or portion thereof is called for
redemption and the redemption date is subsequent to a regular record date with
respect to any Interest Payment Date and prior to such Interest Payment Date,
interest on such Security will be paid upon presentation and surrender of such
Security as provided in Section 3.03.

         Any interest on any Security that is payable, but is not punctually
paid or duly provided for, on any Interest Payment Date for Securities of the
same series (herein called "Defaulted Interest") shall forthwith cease to be
payable to the registered holder on the relevant regular record date by virtue
of having been such holder; and such Defaulted Interest shall be paid by the
Company, at its election, as provided in clause (1) or clause (2) below:

              (1) The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (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 such Security and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a special record date for the payment of such
Defaulted Interest which shall not be more than 15 nor less than 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

                                       7
<PAGE>

promptly notify the Company of such special record date and, in the name and at
the expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Security Register (as hereinafter defined), not less than 10 days
prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date.

              (2) The Company may make payment of any Defaulted Interest on any
Securities 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.

         Unless otherwise set forth in a Board Resolution of the Company or one
or more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month, or the last day of the month
immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a
Business Day.

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

SECTION 2.04      Execution and Authentications.

         The Securities shall be signed on behalf of the Company by its
President, or one of its Vice Presidents, or its Treasurer, or one of its
Assistant Treasurers, or its Secretary, or one of its Assistant Secretaries,
under its corporate seal attested by its Secretary or one of its Assistant
Secretaries. Signatures may be in the form of a manual or facsimile signature.
The Company may use the facsimile signature of any Person who shall have been a
President or Vice President thereof, or of any Person who shall have been a
Secretary or Assistant Secretary thereof, notwithstanding the fact that at the
time the Securities shall be authenticated and delivered or disposed of such
Person shall have ceased to be the President or a Vice President, or the
Secretary or an Assistant Secretary, of the Company. The seal of the Company may
be in the form of a facsimile of such seal and may be impressed, affixed,
imprinted or otherwise reproduced on the Securities. The Securities may contain
such notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication by the
Trustee.

                                       8
<PAGE>

         A Security shall not be valid until authenticated manually by an
authorized signatory of the Trustee, or by an Authenticating Agent. Such
signature shall be conclusive evidence that the Security so authenticated has
been duly authenticated and delivered hereunder and that the holder is entitled
to the benefits of this Indenture.

         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 written order of the
Company for the authentication and delivery of such Securities, signed by its
President or any Vice President and its Secretary or any Assistant Secretary,
and the Trustee in accordance with such written order shall authenticate and
deliver such Securities.

         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 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

         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 that is not reasonably acceptable to the
Trustee.

SECTION 2.05      Registration of Transfer and Exchange.

              (1) Securities of any series may be exchanged upon presentation
thereof at the office or agency of the Company designated for such purpose in
the Borough of Manhattan, the City and State of New York, for other Securities
of such series of authorized denominations, and for a like aggregate principal
amount, upon payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, all as provided in this Section. In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

              (2) The Company shall keep, or cause to be kept, at its office or
agency designated for such purpose in the Borough of Manhattan, the City and
State of New York, or such other location designated by the Company a register
or registers (herein referred to as the "Security Register") in which, subject
to such reasonable regulations as it may prescribe, the Company shall register
the Securities and the transfers of Securities as in this Article provided and
which at all reasonable times shall be open for inspection by the Trustee. The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
"Security Registrar").

         Upon surrender for transfer of any Security at the office or agency of
the Company designated for such purpose, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as the
Security presented for a like aggregate principal amount.

                                       9
<PAGE>

         All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section, shall be accompanied (if so required by
the Company or the Security Registrar) by a written instrument or instruments of
transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by such holder's duly authorized attorney
in writing.

              (3) No service charge shall be made for any exchange or
registration of transfer of Securities, or issue of new Securities in case of
partial redemption of any series, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge in relation thereto,
other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04
not involving any transfer.

         The Company shall not be required (i) to issue, exchange or register
the transfer of any Securities during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of less
than all the Outstanding Securities of the same series and ending at the close
of business on the day of such mailing, nor (ii) to register the transfer of or
exchange any Securities of any series or portions thereof called for redemption.
The provisions of this Section 2.05 are, with respect to any Global Security,
subject to Section 2.11 hereof.

SECTION 2.06      Temporary Securities.

         Pending the preparation of definitive Securities of any series, the
Company may execute, and the Trustee shall authenticate and deliver, temporary
Securities (printed, lithographed or typewritten) of any authorized
denomination. Such temporary Securities shall be substantially in the form of
the definitive Securities in lieu of which they are issued, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security of
any series shall be executed by the Company and be authenticated by the Trustee
upon the same conditions and in substantially the same manner, and with like
effect, as the definitive Securities of such series. Without unnecessary delay
the Company will execute and will furnish definitive Securities of such series
and thereupon any or all temporary Securities of such series may be surrendered
in exchange therefor (without charge to the holders), at the office or agency of
the Company designated for the purpose in the Borough of Manhattan, the City and
State of New York, and the Trustee shall authenticate and such office or agency
shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company
advises the Trustee to the effect that definitive Securities need not be
executed and furnished until further notice from the Company. Until so
exchanged, the temporary Securities of such series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

SECTION 2.07      Mutilated, Destroyed, Lost or Stolen Securities.

         In case any temporary or definitive Security shall become mutilated or
be destroyed, lost or stolen, the Company (subject to the next succeeding
sentence) shall execute, and upon the Company's request the Trustee (subject as
aforesaid) shall authenticate and deliver, a new Security of the same series,
bearing a number not contemporaneously outstanding, in exchange

                                       10
<PAGE>

and substitution for the mutilated Security, or in lieu of and in substitution
for the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security
or indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant's Security and of the ownership thereof. The
Trustee may authenticate any such substituted Security and deliver the same upon
the written request or authorization of any officer of the Company. Upon the
issuance of any substituted Security, 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. In case any Security that has matured or is
about to mature shall become mutilated or be destroyed, lost or stolen, the
Company may, instead of issuing a substitute Security, pay or authorize the
payment of the same (without surrender thereof except in the case of a mutilated
Security) if the applicant for such payment shall furnish to the Company and the
Trustee such security or indemnity as they may require to save them harmless,
and, in case of destruction, loss or theft, evidence to the satisfaction of the
Company and the Trustee of the destruction, loss or theft of such Security and
of the ownership thereof.

         Every replacement Security issued pursuant to the provisions of this
Section shall constitute an additional contractual obligation of the Company
whether or not the mutilated, destroyed, lost or stolen Security shall be found
at any time, or be enforceable by anyone, and shall be entitled to all the
benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. All Securities shall be
held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

SECTION 2.08      Cancellation.

         All Securities surrendered for the purpose of payment, redemption,
exchange or registration of transfer shall, if surrendered to the Company or any
paying agent, be delivered to the Trustee for cancellation, or, if surrendered
to the Trustee, shall be cancelled by it, and no Securities shall be issued in
lieu thereof except as expressly required or permitted by any of the provisions
of this Indenture. On request of the Company at the time of such surrender, the
Trustee shall deliver to the Company canceled Securities held by the Trustee. In
the absence of such request the Trustee may dispose of canceled Securities in
accordance with its standard procedures and deliver a certificate of disposition
to the Company. If the Company shall otherwise acquire any of the Securities,
however, such acquisition shall not operate as a redemption or satisfaction of
the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

SECTION 2.09      Benefits of Indenture.

         Nothing in this Indenture or in the Securities, express or implied,
shall give or be construed to give to any Person, other than the parties hereto
and the holders of the Securities

                                       11
<PAGE>

(and, with respect to the provisions of Article Fourteen, the holders of Senior
Indebtedness) any legal or equitable right, remedy or claim under or in respect
of this Indenture, or under any covenant, condition or provision herein
contained; all such covenants, conditions and provisions being for the sole
benefit of the parties hereto and of the holders of the Securities (and, with
respect to the provisions of Article Fourteen, the holders of Senior
Indebtedness).

SECTION 2.10      Authenticating Agent.

         So long as any of the Securities of any series remain Outstanding there
may be an Authenticating Agent for any or all such series of Securities which
the Trustee shall have the right to appoint. Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption thereof, 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. All references in this Indenture to the authentication of
Securities by the Trustee shall be deemed to include authentication by an
Authenticating Agent for such series. Each Authenticating Agent shall be
acceptable to the Company and shall be a corporation that has a combined capital
and surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination
by Federal or State authorities. If at any time any Authenticating Agent shall
cease to be eligible in accordance with these provisions, it shall resign
immediately.

         Any Authenticating Agent may at any time resign by giving written
notice of resignation to the Trustee and to the Company. The Trustee may at any
time (and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor Authenticating Agent acceptable to the Company. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, shall become
vested with all the rights, powers and duties of its predecessor hereunder as if
originally named as an Authenticating Agent pursuant hereto.

SECTION 2.11      Global Securities.

(a) If the Company shall establish pursuant to Section 2.01 that the Securities
of a particular series are to be issued as a Global Security, then the Company
shall execute and the Trustee shall, in accordance with Section 2.04,
authenticate and deliver, a Global Security that (i) shall represent, and shall
be denominated in an amount equal to the aggregate principal amount of, all of
the Outstanding Securities of such series, (ii) shall be registered in the name
of the Depositary or its nominee, (iii) shall be delivered by the Trustee to the
Depositary or pursuant to the Depositary's instruction and (iv) shall bear a
legend substantially to the following effect: "Except as otherwise provided in
Section 2.11 of the Indenture, this Security may be transferred, in whole but
not in part, only to another nominee of the Depositary or to a successor
Depositary or to a nominee of such successor Depositary."

                                       12
<PAGE>

         (b) Notwithstanding the provisions of Section 2.05, the Global Security
of a series may be transferred, in whole but not in part and in the manner
provided in Section 2.05, only to another nominee of the Depositary for such
series, or to a successor Depositary for such series selected or approved by the
Company or to a nominee of such successor Depositary.

         (c) If at any time the Depositary for a series of the Securities
notifies the Company that it is unwilling or unable to continue as Depositary
for such series or if at any time the Depositary for such series shall no longer
be registered or in good standing under the Exchange Act, or other applicable
statute or regulation, and a successor Depositary for such series is not
appointed by the Company within 90 days after the Company receives such notice
or becomes aware of such condition, as the case may be, this Section 2.11 shall
no longer be applicable to the Securities of such series and the Company will
execute, and subject to Section 2.05, the Trustee will authenticate and deliver
the Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the
principal amount of the Global Security of such series in exchange for such
Global Security. In addition, the Company may at any time determine that the
Securities of any series shall no longer be represented by a Global Security and
that the provisions of this Section 2.11 shall no longer apply to the Securities
of such series. In such event the Company will execute and subject to Section
2.05, the Trustee, upon receipt of an Officers' Certificate evidencing such
determination by the Company, will authenticate and deliver the Securities of
such series in definitive registered form without coupons, in authorized
denominations, and in an aggregate principal amount equal to the principal
amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in
definitive registered form without coupons, in authorized denominations, the
Global Security shall be canceled by the Trustee. Such Securities in definitive
registered form issued in exchange for the Global Security pursuant to this
Section 2.11(c) shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Securities to the Depositary for delivery to the Persons in
whose names such Securities are so registered.

                                   ARTICLE III

              REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01      Redemption.

         The Company may redeem the Securities of any series issued hereunder on
and after the dates and in accordance with the terms established for such series
pursuant to Section 2.01 hereof.

SECTION 3.02      Notice of Redemption.

         (a) In case the Company shall desire to exercise such right to redeem
all or, as the case may be, a portion of the Securities of any series in
accordance with the right reserved so to do, the Company shall, or shall cause
the Trustee to, give notice of such redemption to holders of the Securities of
such series to be redeemed by mailing, first class postage prepaid, a notice of
such redemption not less than 30 days and not more than 90 days before the date
fixed for

                                       13
<PAGE>

redemption of that series to such holders at their last addresses as they shall
appear upon the Security Register unless a shorter period is specified in the
Securities to be redeemed. Any notice that is mailed in the manner herein
provided shall be conclusively presumed to have been duly given, whether or not
the registered holder receives the notice. In any case, failure duly to give
such notice to the holder of any Security of any series designated for
redemption in whole or in part, or any defect in the notice, shall not affect
the validity of the proceedings for the redemption of any other Securities of
such series or any other series. 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 Officers' Certificate evidencing compliance with any
such restriction.

         Each such notice of redemption shall specify the date fixed for
redemption and the redemption price at which Securities of that series are to be
redeemed, and shall state that payment of the redemption price of such
Securities to be redeemed will be made at the office or agency of the Company in
the Borough of Manhattan, the City and State of New York, upon presentation and
surrender of such Securities, that interest accrued to the date fixed for
redemption will be paid as specified in said notice, that from and after said
date interest will cease to accrue and that the redemption is for a sinking
fund, if such is the case. If less than all the Securities of a series are to be
redeemed, the notice to the holders of Securities of that series to be redeemed
in whole or in part shall specify the particular Securities to be so redeemed.
In case any Security is to be redeemed in part only, the notice that relates to
such Security shall state the portion of the principal amount thereof to be
redeemed, and shall state that on and after the redemption date, upon surrender
of such Security, a new Security or Securities of such series in principal
amount equal to the unredeemed portion thereof will be issued.

         (b) If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such
other manner as it shall deem appropriate and fair in its discretion and that
may provide for the selection of a portion or portions (equal to one thousand
U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount
of such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part.

         The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by its President or any Vice President,
instruct the Trustee or any paying agent to call all or any part of the
Securities of a particular series for redemption and to give notice of
redemption in the manner set forth in this Section, such notice to be in the
name of the Company or its own name as the Trustee or such paying agent may deem
advisable. In any case in which notice of redemption is to be given by the
Trustee or any such paying agent, the Company shall deliver or cause to be
delivered to, or permit to remain with, the Trustee or such paying agent, as the
case may be, such Security Register, transfer books or other records, or
suitable copies or extracts therefrom, sufficient to enable the Trustee or such
paying agent to give any notice by mail that may be required under the
provisions of this Section.

                                       14
<PAGE>

SECTION 3.03    Payment Upon Redemption.

         (a) If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the date
fixed for redemption, unless the Company shall default in the payment of such
redemption price and accrued interest with respect to any such Security or
portion thereof. On presentation and surrender of such Securities on or after
the date fixed for redemption at the place of payment specified in the notice,
said Securities shall be paid and redeemed at the applicable redemption price
for such series, together with interest accrued thereon to the date fixed for
redemption (but if the date fixed for redemption is an interest payment date,
the interest installment payable on such date shall be payable to the registered
holder at the close of business on the applicable record date pursuant to
Section 2.03).

         (b) Upon presentation of any Security of such series that is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.

SECTION 3.04      Sinking Fund.

         The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to
any sinking fund for the retirement of Securities of a series, except as
otherwise specified as contemplated by Section 2.01 for Securities of such
series.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment," and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as
provided in Section 3.05. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

SECTION 3.05      Satisfaction of Sinking Fund Payments with Securities.

         The Company (i) may deliver Outstanding Securities of a series (other
than any Securities previously called for redemption) and (ii) may apply as a
credit Securities of a series that have been 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 the Securities of such series required to be made
pursuant to the terms of such Securities as provided for by the terms of such
series, provided that such Securities have not been previously so credited. Such
Securities shall be received and credited for such purpose by

                                       15
<PAGE>

the Trustee at the redemption price specified in such Securities for redemption
through operation of the sinking fund and the amount of such sinking fund
payment shall be reduced accordingly.

SECTION 3.06      Redemption of Securities for Sinking Fund.

         Not less than 45 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of the series, the portion thereof, if any,
that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.05 and the basis for such credit and will, together with
such Officers' Certificate, deliver to the Trustee any Securities to be so
delivered. Not less than 30 days before each such sinking fund payment date the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.02 and cause notice of the
redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 3.02. Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 3.03.

                                   ARTICLE IV

                                    COVENANTS

SECTION 4.01      Payment of Principal, Premium and Interest.

         The Company will duly and punctually pay or cause to be paid the
principal of (and premium, if any) and interest on the Securities of that series
at the time and place and in the manner provided herein and established with
respect to such Securities.

SECTION 4.02      Maintenance of Office or Agency.

         So long as any series of the Securities remain Outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City and
State of New York, with respect to each such series and at such other location
or locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as herein above authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its President or a Vice President and
delivered to the trustee, designate some other office or agency for such
purposes or any of them. 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, 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, notices and demands.

SECTION 4.03      Paying Agents.

         (a) If the Company shall appoint one or more paying agents for all or
any series of the Securities, other than the Trustee, the Company will cause
each such paying agent to execute

                                       16
<PAGE>

and deliver to the Trustee an instrument in which such agent shall agree with
the Trustee, subject to the provisions of this Section:

              (1) that it will hold all sums held by it as such agent for the
payment of the principal of (and premium, if any) or interest on the Securities
of that series (whether such sums have been paid to it by the Company or by any
other obligor of such Securities) in trust for the benefit of the Persons
entitled thereto;

              (2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment of the
principal of (and premium, if any) or interest on the Securities of that series
when the same shall be due and payable;

              (3) that it will, at any time during the continuance of any
failure referred to in the preceding paragraph (a)(2) above, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust
by such paying agent; and

              (4) that it will perform all other duties of paying agent as set
forth in this Indenture.

         (b) If the Company shall act as its own paying agent with respect to
any series of the Securities, it will on or before each due date of the
principal of (and premium, if any) or interest on Securities of that series, set
aside, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum sufficient to pay such principal (and premium, if any) or interest
so becoming due on Securities of that series until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and will promptly
notify the Trustee of such action, or any failure (by it or any other obligor on
such Securities) to take such action. 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 (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (an
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.

         (c) Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 11.05, and (ii) 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 direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the
Trustee upon the same terms and conditions 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.

SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee.

         The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in Section 7.10, a
Trustee, so that there shall at all times be a Trustee hereunder.

                                       17
<PAGE>

SECTION 4.05      Compliance with Consolidation Provisions.

         The Company will not, while any of the Securities remain Outstanding,
consolidate with or merge into any other Person, in either case where the
Company is not the survivor of such transaction, or sell or convey all or
substantially all of its property to any other company unless the provisions of
Article Ten hereof are complied with.

                                   ARTICLE V

                       SECURITYHOLDERS' LISTS AND REPORTS
                         BY THE COMPANY AND THE TRUSTEE

SECTION 5.01      Company to Furnish Trustee Names and Addresses of
                  Securityholders.

         The Company will furnish or cause to be furnished to the Trustee (a) on
each regular record date (as defined in Section 2.03) a list, in such form as
the Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

SECTION 5.02      Preservation Of Information; Communications With
                  Securityholders.

         (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 5.01 and as to the names and addresses of holders of Securities received
by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

         (b) The Trustee may destroy any list furnished to it as provided in
Section 5.01 upon receipt of a new list so furnished.

         (c) Securityholders may communicate as provided in Section 312(b) of
the Trust Indenture Act with other Securityholders with respect to their rights
under this Indenture or under the Securities.

SECTION 5.03      Reports by the Company.

         (a) The Company covenants and agrees to file with the Trustee, within
15 days after the Company is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other reports
(or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) that the Company may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act; or, if the Company is not required to file information,
documents or reports

                                       18
<PAGE>

pursuant to either of such sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations.

         (b) The Company covenants and agrees to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from to time
by the Commission, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations.

         (c) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or reputable over-night delivery service that provides for
evidence of receipt, to the Securityholders, as their names and addresses appear
upon the Security Register, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to subsections (a) and (b) of this Section as may
be required by rules and regulations prescribed from time to time by the
Commission.

SECTION 5.04      Reports by the Trustee.

         (a) On or before [ ] in each year in which any of the Securities are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to
the Securityholders, as their names and addresses appear upon the Security
Register, a brief report dated as of the preceding [ ], if and to the extent
required under Section 313(a) of the Trust Indenture Act.

         (b) The Trustee shall comply with Section 313(b) and 313(c) of the
Trust Indenture Act.

         (c) A copy of each such report shall, at the time of such transmission
to Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission. The Company agrees to notify the Trustee when any Securities become
listed on any stock exchange.

                                   ARTICLE VI

                   REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS
                               ON EVENT OF DEFAULT

SECTION 6.01      Events of Default.

         (a) Whenever used herein with respect to Securities of a particular
series, "Event of Default" means any one or more of the following events that
has occurred and is continuing:

              (1) the Company defaults in the payment of any installment of
interest upon any of the Securities of that series, as and when the same shall
become due and payable, and continuance of such default for a period of 90 days;
provided, however, that a valid extension of

                                       19
<PAGE>

an interest payment period by the Company in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
interest for this purpose;

              (2) the Company defaults in the payment of the principal of (or
premium, if any, on) any of the Securities of that series as and when the same
shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any;

              (3) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this Indenture
or otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on
which written notice of such failure, requiring the same to be remedied and
stating that such notice is a "Notice of Default" hereunder, shall have been
given to the Company by the Trustee, by registered or certified mail, or to the
Company and the Trustee by the holders of at least 25% in principal amount of
the Securities of that series at the time Outstanding;

              (4) the Company pursuant to or within the meaning of any
Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an
order for relief against it in an involuntary case, (iii) consents to the
appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors; or

              (5) a court of competent jurisdiction enters an order under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company for all or substantially all of
its property, or (iii) orders the liquidation of the Company, and the order or
decree remains unstayed and in effect for 90 days.

         (b) In each and every such case, unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by notice in writing to
the Company (and to the Trustee if given by such Securityholders), may declare
the principal of all the Securities of that series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, notwithstanding anything contained in this
Indenture or in the Securities of that series or established with respect to
that series pursuant to Section 2.01 to the contrary.

         (c) At any time after the principal of the Securities of that series
shall have been so declared due and payable, and before any judgment or decree
for the payment of the moneys due shall have been obtained or entered as
hereinafter provided, the holders of a majority in aggregate principal amount of
the Securities of that series then Outstanding hereunder, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its
consequences if: (i) the Company has paid or deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of (and premium, if any, on) any and all
Securities of that series that shall have become due otherwise

                                       20
<PAGE>

than by acceleration (with interest upon such principal and premium, if any,
and, to the extent that such payment is enforceable under applicable law, upon
overdue installments of interest, at the rate per annum expressed in the
Securities of that series to the date of such payment or deposit) and the amount
payable to the Trustee under Section 7.06, and (ii) any and all Events of
Default under the Indenture with respect to such series, other than the
nonpayment of principal on Securities of that series that shall not have become
due by their terms, shall have been remedied or waived as provided in Section
6.06.

         No such rescission and annulment shall extend to or shall affect any
subsequent default or impair any right consequent thereon.

         (d) In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case, subject to any determination in such
proceedings, the Company, and the Trustee shall be restored respectively to
their former positions and rights hereunder, and all rights, remedies and powers
of the Company and the Trustee shall continue as though no such proceedings had
been taken.

SECTION 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee.

         (a) The Company covenants that (1) in case it shall default in the
payment of any installment of interest on any of the Securities of a series, or
any payment required by any sinking or analogous fund established with respect
to that series as and when the same shall have become due and payable, and such
default shall have continued for a period of 90 Business Days, or (2) in case it
shall default in the payment of the principal of (or premium, if any, on) any of
the Securities of a series when the same shall have become due and payable,
whether upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Securities of that series,
the whole amount that then shall have been become due and payable on all such
Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to
the extent that payment of such interest is enforceable under applicable law)
upon overdue installments of interest at the rate per annum expressed in the
Securities of that series; and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, and the
amount payable to the Trustee under Section 7.06.

         (b) If the Company shall fail to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company or other obligor upon the
Securities of that series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or
other obligor upon the Securities of that series, wherever situated.

                                       21
<PAGE>

         (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affected the Company, or its creditors or property, the Trustee shall have power
to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to distribute the same after the
deduction of the amount payable to the Trustee under Section 7.06; and any
receiver, assignee or trustee in bankruptcy or reorganization is hereby
authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the
making of such payments directly to such Securityholders, to pay to the Trustee
any amount due it under Section 7.06.

         (d) All rights of action and of asserting claims under this Indenture,
or under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other proceeding relative thereto, and
any such suit or 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 payment to the Trustee of any amounts due under Section
7.06, be for the ratable benefit of the holders of the Securities of such
series.

         In case of an Event of Default hereunder, the Trustee may in its
discretion proceed to protect and enforce the rights vested in it by this
Indenture by such appropriate judicial proceedings as the Trustee shall deem
most effectual to protect and enforce any of such rights, either at law or in
equity or in bankruptcy or otherwise, whether for the specific enforcement of
any covenant or agreement contained in the Indenture or in aid of the exercise
of any power granted in this Indenture, or to enforce any other legal or
equitable right vested in the Trustee by this Indenture or by law.

         Nothing contained herein shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Securityholder any
plan of reorganization, arrangement, adjustment or composition affecting the
Securities of that series or the rights of any holder thereof or to authorize
the Trustee to vote in respect of the claim of any Securityholder in any such
proceeding.

SECTION 6.03      Application of Moneys Collected.

         Any moneys collected by the Trustee pursuant to this Article with
respect to a particular series of Securities shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal (or premium, if any) or
interest, upon presentation of the Securities of that series, and notation
thereon the payment, if only partially paid, and upon surrender thereof if fully
paid:

                                       22
<PAGE>

         FIRST: To the payment of costs and expenses of collection and of all
amounts payable to the Trustee under Section 7.06;

         SECOND: To the payment of all Senior Indebtedness of the Company if and
to the extent required by Article Fourteen; and

         THIRD: To the payment of the amounts then due and unpaid upon
Securities of such series for principal (and premium, if any) and interest, 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 premium, if any) and
interest, respectively.

SECTION 6.04      Limitation on Suits.

         No holder of any Security of any series shall have any right by virtue
or by availing of any provision of this Indenture to institute any suit, action
or proceeding in equity or at law upon or under or with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (i) such holder previously shall have given to the
Trustee written notice of an Event of Default and of the continuance thereof
with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (ii) the holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby;
and (iv) the Trustee for 60 days after its receipt of such notice, request and
offer of indemnity, shall have failed to institute any such action, suit or
proceeding and (v) during such 60 day period, the holders of a majority in
principal amount of the Securities of that series do not give the Trustee a
direction inconsistent with the request.

         Notwithstanding anything contained herein to the contrary, any other
provisions of this Indenture, the right of any holder of any Security to receive
payment of the principal of (and premium, if any) and interest on such Security,
as therein provided, on or after the respective due dates expressed in such
Security (or in the case of redemption, on the redemption date), or to institute
suit for the enforcement of any such payment on or after such respective dates
or redemption date, shall not be impaired or affected without the consent of
such holder and by accepting a Security hereunder it is expressly understood,
intended and covenanted by the taker and holder of every Security of such series
with every other such taker and holder and the Trustee, that no one or more
holders of Securities of such series shall have any right in any manner
whatsoever by virtue or by availing of any provision of this Indenture to
affect, disturb or prejudice the rights of the holders of any other of such
Securities, or to obtain or seek to obtain priority over or preference to any
other such holder, or to enforce any right under this Indenture, except in the
manner herein provided and for the equal, ratable and common benefit of all
holders of Securities of such series. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

SECTION 6.05      Rights and Remedies Cumulative; Delay or Omission Not Waiver.

                                       23
<PAGE>

         (a) Except as otherwise provided in Section 2.07, all powers and
remedies given by this Article to the Trustee or to the Securityholders shall,
to the extent permitted by law, be deemed cumulative and not exclusive of any
other powers and remedies available to the Trustee or the holders of the
Securities, by judicial proceedings or otherwise, to enforce the performance or
observance of the covenants and agreements contained in this Indenture or
otherwise established with respect to such Securities.

         (b) No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or on acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article or by law to the Trustee or the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

SECTION 6.06      Control by Securityholders.

         The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding, determined in accordance with
Section 8.01, 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 such series;
provided, however, that such direction shall not be in conflict with any rule of
law or with this Indenture or be unduly prejudicial to the rights of holders of
Securities of any other series at the time Outstanding determined in accordance
with Section 8.01. Subject to the provisions of Section 7.01, the Trustee shall
have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer or Officers of the Trustee, determine that
the proceeding so directed would involve the Trustee in personal liability. The
holders of a majority in aggregate principal amount of the Securities of any
series at the time Outstanding affected thereby, determined in accordance with
Section 8.01, may on behalf of the holders of all of the Securities of such
series waive any past default in the performance of any of the covenants
contained herein or established pursuant to Section 2.01 with respect to such
series and its consequences, except a default in the payment of the principal
of, or premium, if any, or interest on, any of the Securities of that series as
and when the same shall become due by the terms of such Securities otherwise
than by acceleration (unless such default has been cured and a sum sufficient to
pay all matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

SECTION 6.07      Undertaking to Pay Costs.

         All parties to this Indenture agree, and each holder of any Securities
by such holder's acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in

                                       24
<PAGE>

such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

                                  ARTICLE VII

                             CONCERNING THE TRUSTEE

SECTION 7.01      Certain Duties and Responsibilities of Trustee.

         (a) The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants shall be read into this Indenture against the Trustee. In
case an Event of Default with respect to the Securities of a series has occurred
(that has not been cured or waived), the Trustee shall exercise with respect to
Securities of that series such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent man would exercise or use under the circumstances in the conduct of his
own affairs.

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

              (1) prior to the occurrence of an Event of Default with respect to
the Securities of a series and after the curing or waiving of all such Events of
Default with respect to that series that may have occurred:

the duties and obligations of the Trustee shall with respect to the Securities
of such series be determined solely by the express provisions of this Indenture,
and the Trustee shall not be liable with respect to the Securities of such
series except for the performance of such duties and obligations as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and in the
absence of bad faith on the part of the Trustee, the Trustee may with respect to
the Securities of such series conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or
opinions that by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirement of this Indenture;

                                       25
<PAGE>

              (2) the Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it shall be proved that the Trustee, was negligent in ascertaining the
pertinent facts;

              (3) the Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the
direction of the holders of not less than a majority in principal amount of the
Securities of any series at the time Outstanding relating to the time, method
and place of conducting any proceeding for any remedy available to the Trustee,
or exercising any trust or power conferred upon the Trustee under this Indenture
with respect to the Securities of that series; and

              (4) None of the provisions contained in this Indenture shall
require the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that
the repayment of such funds or liability is not reasonably assured to it under
the terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

SECTION 7.02      Certain Rights of Trustee.

         Except as otherwise provided in Section 7.01:

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

         (b) Any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a Board Resolution or an instrument
signed in the name of the Company, by the President or any Vice President and by
the Secretary or an Assistant Secretary or the Treasurer or an Assistant
Treasurer thereof (unless other evidence in respect thereof is specifically
prescribed herein);

         (c) 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 or suffered or omitted hereunder in
good faith and in reliance thereon;

         (d) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request, order or
direction of any of the Securityholders, pursuant to the provisions of this
Indenture, unless such Securityholders shall have offered to the Trustee
reasonable security or indemnity against the costs, expenses and liabilities
that may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Trustee of the obligation, upon the occurrence of an Event
of Default with respect to a series of the Securities (that has not been cured
or waived) to exercise with respect to Securities of that series such of the
rights and powers vested in it by this Indenture, and to use the same degree of
care and skill in their exercise, as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs;

                                       26
<PAGE>

         (e) The Trustee shall not be liable for any action taken or omitted to
be taken by it in good faith and believed by it to be authorized or within the
discretion or rights or powers conferred upon it by this Indenture;

         (f) 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, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand; and

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

SECTION 7.03      Trustee Not Responsible for Recitals or Issuance or
                  Securities.

         (a) The recitals contained herein and in the Securities shall be taken
as the statements of the Company, and the Trustee assumes no responsibility for
the correctness of the same.

         (b) The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities.

         (c) The Trustee shall not be accountable for the use or application by
the Company of any of the Securities or of the proceeds of such Securities, or
for the use or application of any moneys paid over by the Trustee in accordance
with any provision of this Indenture or established pursuant to Section 2.01, or
for the use or application of any moneys received by any paying agent other than
the Trustee.

SECTION 7.04      May Hold Securities.

         The Trustee or any paying agent or Security Registrar, in its
individual or any other capacity, may become the owner or pledgee of Securities
with the same rights it would have if it were not Trustee, paying agent or
Security Registrar.

SECTION 7.05      Moneys Held in Trust.

         Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law.

                                       27
<PAGE>

The Trustee shall be under no liability for interest on any moneys received by
it hereunder except such as it may agree with the Company to pay thereon.

SECTION 7.06      Compensation and Reimbursement.

         (a) The Company covenants and agrees to pay to the Trustee, and the
Trustee shall be entitled to, such reasonable compensation (which shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust), as the Company, and the Trustee may from time to time agree in
writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties
hereunder of the Trustee, and, except as otherwise expressly provided herein,
the Company will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all Persons not regularly in its employ) except any such expense, disbursement
or advance as may arise from its negligence or bad faith. The Company also
covenants to indemnify the Trustee (and its officers, agents, directors and
employees) for, and to hold it harmless against, any loss, liability or expense
incurred without negligence or bad faith on the part of the Trustee and arising
out of or in connection with the acceptance or administration of this trust,
including the costs and expenses of defending itself against any claim of
liability in the premises.

         (b) The obligations of the Company under this Section to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Securities.

SECTION 7.07      Reliance on Officers' Certificate.

         Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

SECTION 7.08      Disqualification; Conflicting Interests.

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

SECTION 7.09      Corporate Trustee Required; Eligibility.

                                       28
<PAGE>

         There shall at all times be a Trustee with respect to the Securities
issued hereunder which shall at all times be a corporation organized and doing
business under the laws of the United States of America or any State or
Territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission, authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by Federal, State, Territorial, or District of Columbia authority.
If such corporation publishes reports of condition at least annually, pursuant
to law or to the requirements of the aforesaid supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. The
Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee. In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, the Trustee shall resign immediately in the manner
and with the effect specified in Section 7.10.

SECTION 7.10      Resignation and Removal; Appointment of Successor.

         (a) The Trustee or any successor hereafter appointed, may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders of such series, as their
names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such series by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing 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 Securities of such series, or any
Securityholder of that series who has been a bona fide holder of a Security or
Securities for at least six months may on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

         (b) In case at any time any one of the following shall occur:

              (1) the Trustee shall fail to comply with the provisions of
Section 7.08 after written request therefor by the Company or by any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months; or

              (2) the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder; or

              (3) the Trustee shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding,
or a receiver of the Trustee or of its property shall be appointed or consented
to, or any public officer shall take

                                       29
<PAGE>

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, the
Company may remove the Trustee with respect to all Securities and appoint a
successor trustee by written instrument, in duplicate, executed by order of the
Board of Directors, one copy of which instrument shall be delivered to the
Trustee so removed and one copy to the successor trustee, or, unless the
Trustee's duty to resign is stayed as provided herein, any Securityholder who
has been a bona fide holder of a Security or Securities for at least six months
may, on behalf of that holder and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

         (c) The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

         (d) Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

         (e) Any successor trustee appointed pursuant to this Section may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

SECTION 7.11      Acceptance of Appointment By Successor.

         (a) 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 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.

         (b) 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)
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

                                       30
<PAGE>

respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust, that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee and that no Trustee shall be responsible for any act or
failure to act on the part of any other Trustee hereunder; and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, 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, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

         (c) 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 paragraph (a) or (b) of this Section, as the case may be.

         (d) 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.

         (e) Upon acceptance of appointment by a successor trustee as provided
in this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Securityholders,
as their names and addresses appear upon the Security Register. If the Company
fails to transmit such notice within ten days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be
transmitted at the expense of the Company.

SECTION 7.12      Merger, Conversion, Consolidation or Succession to Business.

         Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. 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

                                       31
<PAGE>

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

SECTION 7.13      Preferential Collection of Claims Against the Company.

         The Trustee shall comply with Section 311(a) of the Trust Indenture
Act, excluding any creditor relationship described in Section 311(b) of the
Trust Indenture Act. A Trustee who has resigned or been removed shall be subject
to Section 311(a) of the Trust Indenture Act to the extent included therein.

                                 ARTICLE VIII

                         CONCERNING THE SECURITYHOLDERS

SECTION 8.01      Evidence of Action by Securityholders.

         Whenever in this Indenture it is provided that the holders of a
majority or specified percentage in aggregate principal amount of the Securities
of a particular series may take any action (including the making of any demand
or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action the holders
of such majority or specified percentage of that series have joined therein may
be evidenced by any instrument or any number of instruments of similar tenor
executed by such holders of Securities of that series in Person or by agent or
proxy appointed in writing.

         If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

SECTION 8.02      Proof of Execution by Securityholders.

         Subject to the provisions of Section 7.01, proof of the execution of
any instrument by a Securityholder (such proof will not require notarization) or
his agent or proxy and proof of the holding by any Person of any of the
Securities shall be sufficient if made in the following manner:

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<PAGE>

         (a) The fact and date of the execution by any such Person of any
instrument may be proved in any reasonable manner acceptable to the Trustee.

         (b) The ownership of Securities shall be proved by the Security
Register of such Securities or by a certificate of the Security Registrar
thereof.

         (c) The Trustee may require such additional proof of any matter
referred to in this Section as it shall deem necessary.

SECTION 8.03      Who May be Deemed Owners.

         Prior to the due presentment for registration of transfer of any
Security, the Company, the Trustee, any paying agent and any Security Registrar
may deem and treat the Person in whose name such Security shall be registered
upon the books of the Company as the absolute owner of such Security (whether or
not such Security shall be overdue and notwithstanding any notice of ownership
or writing thereon made by anyone other than the Security Registrar) for the
purpose of receiving payment of or on account of the principal of, premium, if
any, and (subject to Section 2.03) interest on such Security and for all other
purposes; and neither the Company nor the Trustee nor any paying agent nor any
Security Registrar shall be affected by any notice to the contrary.

SECTION 8.04      Certain Securities Owned by Company Disregarded.

         In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent of waiver under this Indenture, the Securities of that series that are
owned by the Company or any other obligor on the Securities of that series or by
any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Securities of such series that the Trustee actually knows are so owned
shall be so disregarded. The Securities so owned that have been pledged in good
faith may be regarded as Outstanding for the purposes of this Section, if the
pledgee shall establish to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Securities and that the pledgee is not a Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company or any such other obligor. In case of a dispute
as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

SECTION 8.05      Actions Binding on Future Securityholders.

         At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.01, of the taking of any action by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action,
any holder of a Security of that series that is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee, and upon proof of holding as
provided in Section 8.02, revoke such action so far as concerns such Security.
Except as aforesaid any such action taken by the

                                       33
<PAGE>

holder of any Security shall be conclusive and binding upon such holder and upon
all future holders and owners of such Security, and of any Security issued in
exchange therefor, on registration of transfer thereof or in place thereof,
irrespective of whether or not any notation in regard thereto is made upon such
Security. Any action taken by the holders of the majority or percentage in
aggregate principal amount of the Securities of a particular series specified in
this Indenture in connection with such action shall be conclusively binding upon
the Company, the Trustee and the holders of all the Securities of that series.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.01      Supplemental Indentures Without the Consent of
                  Securityholders.

         In addition to any supplemental indenture otherwise authorized by this
Indenture, the Company and the Trustee may from time to time and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect), without the
consent of the Securityholders, for one or more of the following purposes:

         (a) to cure any ambiguity, defect, or inconsistency herein, in the
Securities of any series;

         (b) to comply with Article Ten;

         (c) to provide for uncertificated Securities in addition to or in place
of certificated Securities;

         (d) 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;

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

         (f) to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or

         (g) to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or any series of Securities, or to add to the rights
of the holders of any series of Securities.

         The Trustee is hereby authorized to join with the Company in the
execution of any such supplemental indenture, and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into any such

                                       34
<PAGE>

supplemental indenture that affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

         Any supplemental indenture authorized by the provisions of this Section
may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time Outstanding, notwithstanding any of
the provisions of Section 9.02.

SECTION 9.02      Supplemental Indentures With Consent of Securityholders.

         With the consent (evidenced as provided in Section 8.01) of the holders
of not less than a majority in aggregate principal amount of the Securities of
each series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by Board Resolutions, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by
Section 9.01 the rights of the holders of the Securities of such series under
this Indenture; provided, however, that no such supplemental indenture shall,
without the consent of the holders of each Security then Outstanding and
affected thereby, (i) extend the fixed maturity of any Securities of any series,
or reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any premium payable upon the redemption
thereof or (ii) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture.

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

SECTION 9.03      Effect of Supplemental Indentures.

         Upon the execution of any supplemental indenture pursuant to the
provisions of this Article or of Section 10.01, this Indenture shall, with
respect to such series, be and be deemed to be modified and amended in
accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company and the holders of Securities of the series affected thereby shall
thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions
of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

SECTION 9.04      Securities Affected by Supplemental Indentures.

         Securities of any series, affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, may bear a
notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture. If the Company shall so
determine, new Securities of that series so modified as to conform, in the
opinion of the Board of Directors of the Company, to any modification of this
Indenture contained in any such supplemental indenture

                                       35
<PAGE>

may be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the Securities of that series then Outstanding.

SECTION 9.05      Execution of Supplemental Indentures.

         Upon the request of the Company, accompanied by its Board Resolutions
authorizing the execution of any such supplemental indenture, and upon the
filing with the Trustee of evidence of the consent of Securityholders required
to consent thereto as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may in its discretion but shall not be
obligated to enter into such supplemental indenture. The Trustee, subject to the
provisions of Section 7.01, may receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article is
authorized or permitted by, and conforms to, the terms of this Article and that
it is proper for the Trustee under the provisions of this Article to join in the
execution thereof; provided, however, that such Opinion of Counsel need not be
provided in connection with the execution of a supplemental indenture that
establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section, the Trustee
shall transmit by mail, first class postage prepaid, a notice, setting forth in
general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the Security Register. Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

                                   ARTICLE X

                                SUCCESSOR ENTITY

SECTION 10.01     Company May Consolidate, Etc.

         Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company) or successive consolidations or
mergers in which the Company or its successor or successors shall be a party or
parties, or shall prevent any sale, conveyance, transfer or other disposition of
the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium, if
any) and interest on all of the Securities of all series in accordance with the
terms of each series, according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture
with respect to each series or established with respect to such series pursuant
to Section 2.01 to be kept or performed by the Company shall be expressly
assumed, by

                                       36
<PAGE>

supplemental indenture (which shall conform to the provisions of the Trust
Indenture Act, as then in effect) satisfactory in form to the Trustee executed
and delivered to the Trustee by the entity formed by such consolidation, or into
which the Company shall have been merged, or by the entity which shall have
acquired such property.

SECTION 10.02     Successor Entity Substituted.

         (a) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition and upon the assumption by the successor entity by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the due and punctual payment of the principal of,
premium, if any, and interest on all of the Securities of all series Outstanding
and the due and punctual performance of all of the covenants and conditions of
this Indenture or established with respect to each series of the Securities
pursuant to Section 2.01 to be performed by the Company with respect to each
series, such successor entity shall succeed to and be substituted for the
Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

         (b) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.

         (c) Nothing contained in this Article shall require any action by the
Company in the case of a consolidation or merger of any Person into the Company
where the Company is the survivor of such transaction, or the acquisition by the
Company, by purchase or otherwise, of all or any part of the property of any
other Person (whether or not affiliated with the Company).

SECTION 10.03     Evidence of Consolidation, Etc. to Trustee.

         The Trustee, subject to the provisions of Section 7.01, may receive an
Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale, conveyance, transfer or other disposition, and any such assumption, comply
with the provisions of this Article.

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

SECTION 11.01     Satisfaction and Discharge of Indenture.

         If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated (other than
any Securities that shall have been destroyed, lost or stolen and that shall
have been replaced or paid as provided in Section 2.07) and Securities for whose
payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company (and thereupon repaid to
the Company or discharged from such trust, as provided in Section 11.05); or (b)
all such Securities of a particular series not theretofore delivered to the
Trustee for cancellation shall have become due and payable, or are by their
terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the

                                       37
<PAGE>

giving of notice of redemption, and the Company shall deposit or cause to be
deposited with the Trustee as trust funds the entire amount in moneys or
Governmental Obligations sufficient or a combination thereof, 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 at
maturity or upon redemption all Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if
any) and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and if the Company shall also pay or cause
to be paid all other sums payable hereunder with respect to such series by the
Company then this Indenture shall thereupon cease to be of further effect with
respect to such series except for the provisions of Sections 2.03, 2.05, 2.07,
4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or
redemption date, as the case may be, and Sections 7.06 and 11.05, that shall
survive to such date and thereafter, and the Trustee, on demand of the Company
and at the cost and expense of the Company shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture with respect to
such series.

SECTION 11.02     Discharge of Obligations.

         If at any time all such Securities of a particular series not
heretofore delivered to the Trustee for cancellation or that have not become due
and payable as described in Section 11.01 shall have been paid by the Company by
depositing irrevocably with the Trustee as trust funds moneys or an amount of
Governmental Obligations sufficient to pay at maturity or upon redemption all
such Securities of that series not theretofore delivered to the Trustee for
cancellation, including principal (and premium, if any) and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company with respect to such series, then after the
date such moneys or Governmental Obligations, as the case may be, are deposited
with the Trustee the obligations of the Company under this Indenture with
respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid.
Thereafter, Sections 7.06 and 11.05 shall survive.

SECTION 11.03     Deposited Moneys to be Held in Trust.

         All moneys or Governmental Obligations deposited with the Trustee
pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent
(including the Company acting as its own paying agent), to the holders of the
particular series of Securities for the payment or redemption of which such
moneys or Governmental Obligations have been deposited with the Trustee.

SECTION 11.04     Payment of Moneys Held by Paying Agents.

         In connection with the satisfaction and discharge of this Indenture all
moneys or Governmental Obligations then held by any paying agent under the
provisions of this Indenture shall, upon demand of the Company, be paid to the
Trustee and thereupon such paying agent shall be released from all further
liability with respect to such moneys or Governmental Obligations.

                                       38
<PAGE>

SECTION 11.05     Repayment to Company.

         Any moneys or Governmental Obligations deposited with any paying agent
or the Trustee, or then held by the Company, in trust for payment of principal
of or premium or interest on the Securities of a particular series that are not
applied but remain unclaimed by the holders of such Securities for at least two
years after the date upon which the principal of (and premium, if any) or
interest on such Securities shall have respectively become due and payable,
shall be repaid to the Company on May 31 of each year or (if then held by the
Company) shall be discharged from such trust; and thereupon the paying agent and
the Trustee shall be released from all further liability with respect to such
moneys or Governmental Obligations, and the holder of any of the Securities
entitled to receive such payment shall thereafter, as an unsecured general
creditor, look only to the Company for the payment thereof.

                                  ARTICLE XII

                IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS
                                  AND DIRECTORS

SECTION 12.01     No Recourse.

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

                                 ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION 13.01     Effect on Successors and Assigns.

                                       39
<PAGE>

         All the covenants, stipulations, promises and agreements in this
Indenture contained by or on behalf of the Company shall bind its successors and
assigns, whether so expressed or not.

SECTION 13.02     Actions by Successor.

         Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
corresponding board, committee or officer of any corporation that shall at the
time be the lawful successor of the Company.

SECTION 13.03     Surrender of Company Powers.

         The Company by instrument in writing executed by authority of its Board
of Directors and delivered to the Trustee may surrender any of the powers
reserved to the Company, and thereupon such power so surrendered shall terminate
both as to the Company and as to any successor corporation.

SECTION 13.04     Notices.

         Except as otherwise expressly provided herein any notice or demand that
by any provision of this Indenture is required or permitted to be given or
served by the Trustee or by the holders of Securities to or on the Company may
be given or served by being deposited first class postage prepaid in a
post-office letterbox addressed (until another address is filed in writing by
the Company with the Trustee), as follows: [______________]. Any notice,
election, request or demand by the Company or any Securityholder to or upon the
Trustee shall be deemed to have been sufficiently given or made, for all
purposes, if given or made in writing at the Corporate Trust Office of the
Trustee.

SECTION 13.05     Governing Law.

         This Indenture and each Security shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be
construed in accordance with the laws of said State.

SECTION 13.06     Treatment of Securities as Debt.

         It is intended that the Securities will be treated as indebtedness and
not as equity for federal income tax purposes. The provisions of this Indenture
shall be interpreted to further this intention.

SECTION 13.07     Compliance Certificates and Opinions.

         (a) Upon any application or demand by the Company to the Trustee to
take any action under any of the provisions of this Indenture, the Company,
shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent have been complied with,
except that in the case of any such application or demand as to which the
furnishing of such documents is

                                       40
<PAGE>

specifically required by any provision of this Indenture relating to such
particular application or demand, no additional certificate or opinion need be
furnished.

         (b) Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
in this Indenture shall include (1) a statement that the Person making such
certificate or opinion has read such covenant or condition; (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 such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

SECTION 13.08     Payments on Business Days.

         Except as provided pursuant to Section 2.01 pursuant to a Board
Resolution, and as set forth in an Officers' Certificate, or established in one
or more indentures supplemental to this Indenture, in any case where the date of
maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal
(and premium, if any) may be made on the next succeeding Business Day with the
same force and effect as if made on the nominal date of maturity or redemption,
and no interest shall accrue for the period after such nominal date.

SECTION 13.09     Conflict with Trust Indenture Act.

         If and to the extent that any provision of this Indenture limits,
qualifies or conflicts with the duties imposed by Sections 310 to 317,
inclusive, of the Trust Indenture Act, such imposed duties shall control.

SECTION 13.10     Counterparts.

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

SECTION 13.11     Separability.

         In case any one or more of the provisions contained in this Indenture
or in the Securities of any series shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provisions of this Indenture or of
such Securities, but this Indenture and such Securities shall be construed as if
such invalid or illegal or unenforceable provision had never been contained
herein or therein.

SECTION 13.12     Assignment.

         The Company will have the right at all times to assign any of its
rights or obligations under this Indenture to a direct or indirect wholly- owned
Subsidiary of the Company, provided that, in the event of any such assignment,
the Company, will remain liable for all such obligations. Subject to the
foregoing, the Indenture is binding upon and inures to the benefit of

                                       41
<PAGE>

the parties thereto and their respective successors and assigns. This Indenture
may not otherwise be assigned by the parties thereto.

                                   ARTICLE XIV

                           SUBORDINATION OF SECURITIES

SECTION 14.01     Subordination Terms.

         The payment by the Company of the principal of, premium, if any, and
interest on any series of Securities issued hereunder shall be subordinated to
the extent set forth in an indenture supplemental hereto relating to such
Securities.

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

                                     NEON COMMUNICATIONS, INC.

                                     By:
                                         -------------------------------
                                         Name:
                                         Title:
                                     [                ],
                                     as Trustee

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

                                       42<PAGE>

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

                            SHARE EXCHANGE AGREEMENT

                                  by and among

                                HEALTHSTAR CORP.,
                             a Delaware corporation,

                                       and

                             SALESMATION.COM, INC.,
                             a Delaware corporation,

                                M2 LIMITED, INC.
                             a Maryland corporation,

                       KEY INDIVIDUALS OF M2 LIMITED, INC.

                       Dated as of _________________, 2001

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

<PAGE>

                                                 TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                               Page No.
                                                                                                               --------
<S>        <C>                                                                                                 <C>
ARTICLE I         EXCHANGE OF SHARES................................................................................2

           Section 1.1 Exchange Of M2 Shares........................................................................2
           Section 1.2 Issuance And Exchange Of HealthStar Shares...................................................2
           Section 1.3 Closing......................................................................................2
                  (a)  CLOSING DELIVERIES BY SALESMATION, M2 AND THE KEY INDIVIDUALS................................2
                  (b)  CLOSING DELIVERIES BY HEALTHSTAR.............................................................2
                  (c)  DIRECTORS OF HEALTHSTAR ON AND AFTER THE CLOSING DATE........................................2
                  (d)  OFFICERS OF HEALTHSTAR ON AND AFTER THE CLOSING DATE.........................................3
           Section 1.4 Transfer Taxes...............................................................................3

ARTICLE II        REPRESENTATIONS AND WARRANTIES OF THE SELLERS.....................................................3

          Section 2.1 Organization..................................................................................3
          Section 2.2 Capitalization................................................................................4
          Section 2.3 Ownership Of Stock............................................................................4
          Section 2.4 Authorization; Validity Of Agreement..........................................................4
          Section 2.5 Consents And Approvals; No Violations.........................................................4
          Section 2.6 M2 Financial Statements.......................................................................5
          Section 2.7 No Undisclosed Liabilities....................................................................5
          Section 2.8 Absence Of Certain Changes....................................................................5
          Section 2.9 Employee Benefit Plans; ERISA.................................................................6
          Section 2.10 Major Customers..............................................................................7
          Section 2.11 [Reserved]...................................................................................7
          Section 2.12 Litigation...................................................................................7
          Section 2.13 No Default; Compliance With Applicable Laws..................................................8
          Section 2.14 Taxes........................................................................................8
          Section 2.15 Real Property Leases.........................................................................9
          Section 2.16 Properties...................................................................................9
          Section 2.17 Intellectual Property........................................................................10
          Section 2.18 Contracts....................................................................................10
          Section 2.19 Labor Matters................................................................................11
          Section 2.20 Environmental Matters........................................................................11
          Section 2.21 Subsidiaries.................................................................................11
          Section 2.22 Broker Or Finders............................................................................12
          Section 2.23 Performance Of Services......................................................................12
          Section 2.24 Insurance....................................................................................12
          Section 2.25 Related Party Transactions...................................................................13

                                                           i

<PAGE>

                                                                                                               Page No.
                                                                                                               --------
          Section 2.26 Full Disclosure..............................................................................14
          Section 2.27 Investment Representations Of Salesmation....................................................14
                  (a) QUALIFICATIONS................................................................................14
                  (b) INVESTMENT INTENT.............................................................................15
                  (c) HEALTHSTAR INFORMATION........................................................................15
                  (d) RESALE RESTRICTIONS...........................................................................15
                  (e) EXEMPT SALE...................................................................................15
                  (f) LEGENDS ON CERTIFICATES.......................................................................15
                  (g) OTHER.........................................................................................16
          Section 2.28 Investment Representations of Sellers........................................................16
          Section 2.29 Corporate Name...............................................................................16
          Section 2.30 Knowledge Of Individuals.....................................................................16
          Section 2.31 Stockholder Distributions....................................................................17

ARTICLE III REPRESENTATIONS AND WARRANTIES OF HEALTHSTAR............................................................17

          Section 3.1 Organization..................................................................................17
          Section 3.2 Authorization; Validity Of Agreement;
                      Necessary Action..............................................................................17
          Section 3.3 Consents And Approvals; No Violations.........................................................17
          Section 3.4 Brokers Or Finders............................................................................18
          Section 3.5 Capitalization................................................................................18
          Section 3.6 Investment Intent.............................................................................18

ARTICLE IV COVENANTS................................................................................................18

          Section 4.1 Tax Matters...................................................................................18
          Section 4.2 Further Assurances............................................................................19
          Section 4.3 Proprietary Information.......................................................................19
          Section 4.4 Form 8-K......................................................................................19

ARTICLE V INDEMNIFICATION...........................................................................................19

          Section 5.1 Indemnification By Sellers....................................................................19
          Section 5.2 Indemnification By HealthStar.................................................................20
          Section 5.3 Survival Of Representations And Warranties;
                      Limitations On Indemnity......................................................................20
          Section 5.4 Notice And Opportunity To Defend..............................................................20
          Section 5.5 Mitigation Of Loss............................................................................21
          Section 5.6 Subrogation...................................................................................21
          Section 5.7 Tax Indemnification...........................................................................21
          Section 5.8 Remedy........................................................................................21
          Section 5.9 Investigation.................................................................................21

                                                          ii

<PAGE>

                                                                                                               Page No.
                                                                                                               --------
ARTICLE VI PRE-CLOSING COVENANTS OF SELLERS.........................................................................21

          Section 6.1 Access And Investigation......................................................................21
          Section 6.2 Operation Of Business.........................................................................22
          Section 6.3 Filings And Consents..........................................................................24
          Section 6.4 Notification..................................................................................24
          Section 6.5 No Negotiation................................................................................25
          Section 6.6 Best Efforts..................................................................................25
          Section 6.7 Confidentiality; Publicity....................................................................25
          Section 6.8 Stockholder Distributions.....................................................................26
          Section 6.9 Transition....................................................................................26

ARTICLE VII PRE-CLOSING COVENANTS OF HEALTHSTAR.....................................................................26

          Section 7.1 Best Efforts..................................................................................26

ARTICLE VIII CONDITIONS.............................................................................................26

          Section 8.1 Conditions To Each Party's Obligation To Effect
                      The Closing...................................................................................26
          Section 8.2 Conditions To The Obligations Of HealthStar...................................................26
          Section 8.3 Conditions To The Obligations Of Sellers......................................................28

ARTICLE IX TERMINATION..............................................................................................29

          Section 9.1 Termination...................................................................................29
          Section 9.2 Effect Of Termination.........................................................................29

ARTICLE X MISCELLANEOUS.............................................................................................30

          Section 10.1 Knowledge....................................................................................30
          Section 10.2 Governing Law And Consent To Jurisdiction....................................................30
          Section 10.3 Amendment And Modification...................................................................30
          Section 10.4 Notices......................................................................................30
          Section 10.5 [Reserved]...................................................................................32
          Section 10.6 Counterparts.................................................................................32
          Section 10.7 Incorporation By Reference...................................................................32
          Section 10.8 Entire Agreement; Third Party Beneficiaries..................................................32
          Section 10.9 Severability.................................................................................32
          Section 10.10 Service Of Process..........................................................................32
          Section 10.11 Specific Performance........................................................................32
          Section 10.12 Assignment..................................................................................32
          Section 10.13 Expenses....................................................................................32

                                                         iii

<PAGE>

                                                                                                               Page No.
                                                                                                               --------
          Section 10.14 Waivers.....................................................................................33
          Section 10.15 Attorney Fees...............................................................................33

</TABLE>

                                                          iv

<PAGE>

                             INDEX OF DEFINED TERMS

<TABLE>
<CAPTION>

DEFINED TERMS                                                                       SECTION
-------------                                                                       -------
<S>                                                                                 <C>
Accredited Investor...................................................................2.27(a)(iii)
Acquisition Transaction...............................................................6.2(d)
Agreement.............................................................................Preamble
Blue Sky laws.........................................................................2.27(d)
Closing...............................................................................1.3
Closing Date..........................................................................1.3
COBRA.................................................................................2.9(b)
Code..................................................................................Recitals
Employee Benefit Plans................................................................2.9(a)
Encumbrances..........................................................................1.1
ERISA.................................................................................2.9(a)
GAAP..................................................................................2.5
Government Entity.....................................................................2.5
Group Health Plans....................................................................2.9(b)
Hazardous.............................................................................2.20
Hazardous Materials...................................................................2.20
HealthStar............................................................................Preamble
HealthStar Acquisition Shares.........................................................1.2
HealthStar Shares.....................................................................Recitals
Indemnifying Party....................................................................5.4
Indemnitee............................................................................5.4
Intellectual Property.................................................................2.17
Key Individual........................................................................Preamble
Key Individuals.......................................................................Preamble
Knowledge.............................................................................10.1
Landlord..............................................................................2.15
Legends...............................................................................2.27(f)
Letter of Intent......................................................................Recitals
Liability.............................................................................2.23(a)
Listed Individuals....................................................................2.30
Losses................................................................................5.1
M2....................................................................................Preamble
M2 Contract...........................................................................2.5
M2 Financial Statements...............................................................2.6
M2 Intellectual Property..............................................................2.17
M2 Shares.............................................................................Recitals
Material Adverse Effect...............................................................2.8
Material Agreement(s).................................................................2.18
Ordinary Course of Business...........................................................2.7
Parties...............................................................................Preamble

                                            v

<PAGE>

Party.................................................................................Preamble
PCBs..................................................................................2.20
Permits...............................................................................2.13(a)
Person................................................................................2.8
Pre-Closing Period....................................................................6.1
Preferred Stock.......................................................................3.5
Proprietary Information...............................................................4.3
Qualified Beneficiaries...............................................................2.9(b)
Reasonable Inquiry....................................................................10.1
Related Party.........................................................................2.25(e)
Representatives.......................................................................2.25(f)
Salesmation...........................................................................Preamble
Salesmation Contract..................................................................2.5
SEC...................................................................................2.27(c)
Securities Act........................................................................2.27(a)(iii)
Sellers...............................................................................Article
Tax Return............................................................................2.14
Taxes.................................................................................2.14
Toxic.................................................................................2.20
Transaction...........................................................................Recitals

</TABLE>

                                           vi

<PAGE>

                                      SCHEDULES

<TABLE>

     <S>               <C>
     Schedule 2.1(a)   M2: No subsidiaries or equity interests

     Schedule 2.1(b)   M2: Foreign State Qualification

     Schedule 2.1(c)   Salesmation: Foreign State Qualification

     Schedule 2.1(d)   Certificate of Incorporation and Bylaws of Salesmation

     Schedule 2.1(e)   Articles of Incorporation and Bylaws of M2

     Schedule 2.2(a)   Capitalization of M2

     Schedule 2.2(b)   Encumbrances on M2 Capital Stock, Including M2 Shares

     Schedule 2.5      Third Party Consents Necessary or Required for M2 to Perform the
                       Agreement

     Schedule 2.6(a)   M2 Unaudited Financial Statements

     Schedule 2.6(b)   M2 Audited Financial Statements (within 15 days of signing the
                       Agreement)

     Schedule 2.7      Liabilities of M2, including each note, bond, mortgage, indenture,
                       pledge, security agreement, credit agreement, guarantee, suretyship
                       arrangement, endorsement or other instrument in respect of
                       indebtedness for borrowed money or guarantees or promises

     Schedule 2.8      Adverse Changes Suffered by M2

     Schedule 2.9      Employee Benefit Plans; ERISA

     Schedule 2.10     Major Customers of M2

     Schedule 2.12     Litigation

     Schedule 2.13     No Default; Compliance with Applicable Laws; Permits

     Schedule 2.14     Tax Matters

     Schedule 2.15     Real Property Leases

     Schedule 2.16     Properties

     Schedule 2.17(a)  All M2 Intellectual Property

     Schedule 2.17(b)  Pending or Threatened Intellectual Property Claims Against M2

     Schedule 2.18     Contracts/Material Agreements; Indebtedness Instruments and
                       Guarantees of M2

     Schedule 2.19     Labor Matters

     Schedule 2.23     Performance of Services

     Schedule 2.24     Insurance

                                     vii

<PAGE>

     Schedule 2.25     Related Party Transactions

     Schedule 2.30     Knowledge; Listed Individuals of M2

</TABLE>

                                    viii

<PAGE>

                                    EXHIBITS

<TABLE>

           <S>          <C>
           EXHIBIT A    Letter of Intent dated January 24, 2001

           EXHIBIT B    Accredited Investor Questionnaire

</TABLE>

                                      ix

<PAGE>

                            SHARE EXCHANGE AGREEMENT

         Share Exchange Agreement, dated as of February ___, 2001 (this
"Agreement") by and among HealthStar Corp., a Delaware corporation
("HealthStar"), and Salesmation.com, Inc., a Delaware corporation
("Salesmation"), M2(M-squared) Limited, Inc., a Maryland corporation ("M2"),
and each of Michael R. Pellet, the President and Chief Executive Officer of M2,
Mercedes M. Pellet, the Chief Operating Officer of M2, and Andre-Paul Pellet,
Senior Vice President of M2 (collectively, the "Key Individuals" and
individually, a "Key Individual"). Each of HealthStar, Salesmation, M2 and each
of the Key Individuals is deemed a "party" to this Agreement and hereinafter
may collectively be referred to as the "parties."

                                    RECITALS

         A. M2 is a wholly owned subsidiary of Salesmation, which is the holder
and owner of all of the Sixty Six Thousand Two Hundred (66,200) issued and
outstanding shares of capital stock, par value $1.00 per share, of M2 (the "M2
Shares");

         B. As set forth in a letter of intent, dated January 24, 2001, by and
among HealthStar, Salesmation and M2 (the "Letter of Intent"), attached hereto
as Exhibit A, Salesmation wishes to exchange such M2 Shares for shares of
common stock of HealthStar, par value $.00l per share (the "HealthStar
Shares"), and HealthStar wishes to issue the HealthStar Shares in exchange for
the M2 Shares, upon the terms and subject to the conditions set forth in this
Agreement; and

         C. The parties intend that the share exchange transaction contemplated
by this Agreement (the "Transaction") qualifies as a reorganization within the
meaning of Section 368(a)(1)(B) of the Internal Revenue Code of 1986, as
amended (the "Code").

         NOW, THEREFORE, in consideration of the foregoing and the
representations, warranties, covenants and agreements as set forth herein, and
other good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

<PAGE>

                                    ARTICLE I
                               EXCHANGE OF SHARES

         SECTION 1.1 EXCHANGE OF M2 SHARES. Upon the terms and subject to the
conditions set forth in this Agreement, on the Closing Date (as hereinafter
defined), Salesmation shall sell, assign, transfer and deliver to HealthStar,
and HealthStar shall purchase from Salesmation, the M2 Shares, free and clear
of all options, pledges, security interests, liens, claims, preemptive rights,
imperfections of title, conditions or restrictions of any nature, or other
encumbrances, or restrictions on voting or transfer ("Encumbrances"), other
than restrictions imposed by Federal or state securities laws.

         SECTION 1.2 ISSUANCE AND EXCHANGE OF HEALTHSTAR SHARES. On the Closing
Date (as hereinafter defined) and subject to the terms and conditions set forth
in this Agreement, in consideration of the sale, assignment, transfer and
delivery of the M2 Shares, HealthStar shall deliver to Salesmation an aggregate
of four million (4,000,000) HealthStar Shares (collectively, the "HealthStar
Acquisition Shares"). In order that the Transaction qualifies as a
reorganization under Section 368(a)(1)(B) of the Code, the consideration paid
by HealthStar shall consist solely of the HealthStar Acquisition Shares (which
are voting common stock) and no other consideration shall be paid by HealthStar.

         SECTION 1.3 CLOSING. The Transaction contemplated by this Agreement
shall take place at a closing (the "Closing") to be held on or before April 15,
2001 at the offices of Ruben & Aronson, LLP, 3299 K Street, N.W., Suite 403,
Washington, D.C. 20007 at 12:00 Noon, Washington, D.C. time or at such other
place, time or date on which the parties may mutually agree in writing
following satisfaction of Articles VI, VII and VIII, below (the date on which
the Closing takes place being the "Closing Date"), and effective as of 12:01
a.m. on the Closing Date.

         (a) CLOSING DELIVERIES BY SALESMATION, M2 AND THE KEY INDIVIDUALS. At
the Closing, Salesmation shall deliver or cause to be delivered to HealthStar
(i) stock certificates evidencing the M2 Shares (or delivery of affidavits
accounting for any lost certificates), duly endorsed in blank with Medallion
Guarantee or accompanied by stock powers duly executed in blank, and (ii) all
other previously undelivered documents required to be delivered by Salesmation,
M2 and the Key Individuals to HealthStar at or prior to the Closing Date in
connection with the Transaction contemplated hereby including those documents
required to be delivered by Article VIII hereof.

         (b) CLOSING DELIVERIES BY HEALTHSTAR. At the Closing, HealthStar shall
deliver to Salesmation, stock certificates evidencing the HealthStar
Acquisition Shares, and (ii) all other previously undelivered documents
required to be delivered by HealthStar to Salesmation, M2 and the Key
Individuals at or prior to the Closing Date in connection with the Transaction
contemplated hereby including those documents required to be delivered by
Article VIII hereof.

         (c) DIRECTORS OF HEALTHSTAR ON AND AFTER THE CLOSING DATE. On the
Closing Date, David J. Lewis shall resign as a director of HealthStar. Edward
M. Chism, who shall remain Chairman of HealthStar's board of directors, Dr.
Michael D. Flax, Dr. Luis A. Queral and Isidor Buholzer, Jr.,

                                       2
<PAGE>

currently serving as directors of HealthStar immediately prior to the Closing
Date, shall continue to serve on HealthStar's board of directors. In addition,
HealthStar's board of directors shall be expanded to include Michael R. Pellet
and Andre-Paul Pellet. Each director shall hold office, subject to the
applicable provisions of HealthStar's certificate of incorporation and bylaws,
until the next annual stockholder's meeting of HealthStar and until their
respective successors shall be duly elected or appointed and qualified.

         (d) OFFICERS OF HEALTHSTAR ON AND AFTER THE CLOSING DATE. On the
Closing Date, Edward M. Chism shall continue to serve as Chief Executive
Officer and President of HealthStar, and Steven A. Marcus shall continue to
serve as the Chief Financial Officer of HealthStar, subject to the applicable
provisions of the certificate of incorporation and bylaws of HealthStar, until
their respective successors shall be duly elected or appointed and qualified.

         SECTION 1.4 TRANSFER TAXES. All transfer taxes, fees and duties under
applicable law incurred in connection with the sale and transfer of the M2
Shares under this Agreement will be borne and paid by Sellers (as hereinafter
defined) and Sellers shall promptly reimburse HealthStar for any such tax, fee
or duty paid by HealthStar. All transfer taxes, fees and duties under
applicable law incurred in connection with the sale and transfer of the
HealthStar Acquisition Shares under this Agreement will be borne and paid by
HealthStar and HealthStar shall promptly reimburse Sellers for any tax, fee or
duty paid by Sellers. Notwithstanding anything in this Section 1.4 to the
contrary, however, HealthStar shall not pay, or reimburse Sellers for, any
transfer taxes, fees and duties imposed upon Sellers under applicable law.

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE SELLERS

         Salesmation, M2 and each of the Key Individuals hereby jointly and
severally (collectively, the "Sellers"), represent and warrant to HealthStar as
of the date hereof and as of the Closing Date, as set forth below.

         SECTION 2.1 ORGANIZATION. Each of Salesmation, M2 and Salesmation's
subsidiaries is a corporation duly organized, validly existing and in good
standing under the laws of the respective jurisdiction of its incorporation and
each of Salesmation, M2 and Salesmation's subsidiaries has all requisite
corporate power and authority to own, lease and operate its properties and to
carry on its business as it is now being conducted. As set forth on Schedule
2.1(a), M2 has no subsidiaries nor does it hold any equity interests in any
other person or entity including any other corporation, partnership, limited
liability company, business trust or joint venture. As set forth on Schedules
2.1(b) and 2.1(c), respectively, each of Salesmation and M2 is duly qualified
or licensed to do business as a foreign corporation or other entity and is in
good standing in each jurisdiction in which the nature of the business
conducted by it makes such qualification or licensing necessary. Each of
Salesmation and M2 has made available to HealthStar complete and correct copies
of the articles or certificate of incorporation and bylaws, as currently in
effect.

                                       3
<PAGE>

         SECTION 2.2 CAPITALIZATION. Schedule 2.2(a) sets forth all of the
authorized, issued and outstanding capital stock of M2 on a fully diluted
basis. All of the issued and outstanding shares of capital stock of M2
including the M2 Shares, are duly authorized, validly issued, fully paid,
nonassessable and free of preemptive rights. Except as set forth in Schedule
2.2(b), there are no existing Encumbrances including, but not limited to, (a)
options, warrants, calls, subscriptions or other rights, convertible
securities, agreements or commitments of any character obligating M2 to issue,
transfer or sell any shares of capital stock or other equity interest in M2 or
securities convertible into or exchangeable for such shares or equity
interests; (b) contractual obligations of M2 to repurchase, redeem or otherwise
acquire any capital stock of M2 or (c) voting trusts or similar agreements to
which M2 is a party with respect to the voting of the capital stock of M2.

         SECTION 2.3 OWNERSHIP OF STOCK. Except as set forth in Schedule 2.3,
the M2 Shares are owned by Salesmation free and clear of all Encumbrances,
other than restrictions imposed by Federal and state securities laws. Upon the
consummation of the Transaction contemplated hereby, HealthStar will acquire
title to the M2 Shares free and clear of all Encumbrances, other than
restrictions imposed by Federal and state securities laws.

         SECTION 2.4 AUTHORIZATION; VALIDITY OF AGREEMENT. Each of Salesmation
and M2 has the power and authority and each of the Key Individuals, in their
individual capacity, have full power and authority, without the need for
spousal, trustee or guardian consent, to enter into execute, deliver and
perform this Agreement and to consummate the Transaction contemplated hereby.
This Agreement has been duly executed and delivered by each of the Sellers and,
assuming due and valid authorization, execution and delivery hereof by
HealthStar, this Agreement constitutes a valid and binding obligation of each
of the Sellers, enforceable against each of the Sellers in accordance with its
terms, except that (a) such enforcement may be subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws, now
or hereafter in effect, affecting enforcement of creditors' rights generally;
and (b) the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of
the court before which any proceeding therefor may be brought.

         SECTION 2.5 CONSENTS AND APPROVALS; NO VIOLATIONS. Except as set forth
in Schedule 2.5, neither the execution, delivery, nor performance of this
Agreement by each of Salesmation and M2 nor the consummation of the Transaction
contemplated hereby will (a) violate any provision of the certificate or
articles of incorporation or bylaws of either of Salesmation or M2; (b) result
in a violation or breach of, conflict with, constitute (with or without due
notice or lapse of time or both) a default (or give rise to any obligation,
right of termination, cancellation, payment or acceleration) under, or result
in the creation of any lien, security interest, charge or encumbrance upon any
of the properties or assets of each of Salesmation or M2, or give rise to any
obligation, right of termination, cancellation, acceleration or increase of any
obligation or a loss of material benefit under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, lease, license, contract,
agreement or other instrument or obligation to which each of Salesmation or M2
is a party or by which each of Salesmation or M2 or any of its properties or
assets may be bound (each, an "M2 Contract" or a "Salesmation Contract" as the
context may require); (c) violate any order, writ, judgment, injunction,
decree, law, statute, rule or regulation applicable to each of Salesmation, M2
or any of Salesmation's or M2's properties or assets, or (d)

                                       4
<PAGE>

except for those filings required pursuant to applicable state and federal
securities laws, require on the part of each of Salesmation and M2 any filing
or registration with, notification to, or authorization, consent or approval
of, any court, legislative, executive or regulatory authority or agency
("Government Entity").

         SECTION 2.6 M2 FINANCIAL STATEMENTS. As set forth on Schedule 2.6(a),
Sellers have, prior to the date of this Agreement, made available to HealthStar
true and complete copies of M2's unaudited year-end balance sheets for each of
the fiscal years ended August 31, 2000 and August 31, 1999 and an unaudited
balance sheet as of December 31, 2000 with successive months as such become
available and the related statements of operations of M2 for such fiscal years
or interim period, as the case may be, ended on such date (the "M2 Financial
Statements"). As set forth on Schedule 2.6(b), within fifteen days of executing
this Agreement, Sellers shall provide audited M2 Financial Statements to
HealthStar. The M2 Financial Statements were prepared in accordance with
generally accepted accounting principles ("GAAP") (except that there are no
notes attached thereto and the interim statements do not have year-end
adjustments) and present fairly the financial position of M2 as of the dates
thereof and the results of its operations for the periods then ended.

         SECTION 2.7 NO UNDISCLOSED LIABILITIES. Except as set forth on
Schedule 2.7 and except (a) for liabilities and obligations incurred in the
Ordinary Course of Business (as hereinafter defined) after August 31, 2000, (b)
for liabilities and obligations disclosed in or covered by the M2 Financial
Statements, and (c) for liabilities and obligations incurred in connection with
the Transaction contemplated hereby or otherwise as contemplated by this
Agreement, since August 31, 2000, M2 has not incurred any liabilities or
obligations that would be required to be reflected or reserved against in a
balance sheet of M2, prepared in accordance with GAAP. Action taken by or on
behalf of M2 shall not be deemed to have been taken in the "Ordinary Course of
Business" unless such action is: (a) recurring in nature, consistent with M2's
past practices with regard to M2's normal day-to-day operations; (b) taken in
good faith in accordance with sound and prudent business practices; and (c) not
required to be authorized by M2's sole stockholder, Salesmation, M2's board of
directors or any committee of M2's board of directors, and does not require any
other separate or special authorization of any nature.

         SECTION 2.8 ABSENCE OF CERTAIN CHANGES. Except as set forth in
Schedule 2.8, since August 31, 2000, M2 has not (a) suffered any change or
changes constituting in the aggregate, a Material Adverse Effect (as
hereinafter defined) and to each of Sellers' Knowledge (as defined in Section
10.1), no event has occurred that is reasonably likely to have a Material
Adverse Effect; (b) suffered any loss, damage or destruction to, or any
interruption in the use of any of M2's assets (whether or not covered by
insurance) that would constitute a Material Adverse Effect; (c) amended its
articles of incorporation or bylaws; (d) split, combined or reclassified the
capital stock of M2; (e) declared or set aside or paid any dividend or other
distribution with respect to the capital stock of M2, (f) changed its
accounting principles, practices or methods, except as required by GAAP or
applicable law; (g) made any capital expenditure in excess of Twenty Thousand
Dollars ($20,000); (h) written off as uncollectible, or established any
extraordinary reserve with respect to, any account receivable or other
indebtedness; (i) pledged or hypothecated any of its assets or otherwise
permitted any of its assets to become subject to any Encumbrance; (j) entered
into any transaction outside the Ordinary Course of Business; (k) incurred,
assumed or otherwise become

                                       5
<PAGE>

subject to any liability or obligation, other than in the Ordinary Course of
Business; (l) waived or released any material right; (m) approved any material
increase, direct or indirect, or other material change in the compensation paid
or payable to any officer, director, employee, independent contractor or agent
of M2, or established or created any employment, deferred compensation or
severance agreement or employee benefit plan or amended any of the foregoing;
(n) suffered any material loss of personnel, authorized any change in the terms
and conditions of the employment of senior members of management of M2 or
incurred any labor trouble; (o) made any arrangements relating to any royalty,
dividend or similar payment entered into by M2 based on the sales volume of M2
(other than sales commission arrangements), other than in the Ordinary Course
of Business; (p) entered into any material agreement with respect to the
endorsement of products or services, other than in the Ordinary Course of
Business; (q) revalued any of its material assets; (r) amended or terminated
any Material Agreement (as defined in Section 2.18); or (s) agreed, committed,
offered, or attempted to take any of the actions referred to in clauses (a)
through (r).

         As used in this Agreement, "Material Adverse Effect" means any
material adverse change in, or material adverse effect on, the business,
financial condition, prospects or operations of a Person (as hereinafter
defined), taken as a whole; provided, however, that any adverse effect on a
Person resulting from the execution of this Agreement, the announcement of this
Agreement and the Transaction contemplated hereby shall be excluded from the
determination of Material Adverse Effect. "Person" means a natural person or
any partnership, limited liability company, trust, estate, association,
corporation, custodian, nominee or any other individual or entity in its own or
any representative, capacity or any other entity.

         SECTION 2.9 EMPLOYEE BENEFIT PLANS; ERISA. (a) Except as set forth on
Schedule 2.9, there are no Employee Plans (defined below) that are currently
maintained or contributed to by M2, that have previously been maintained or
contributed to by M2, or with respect to which M2 has incurred or could incur
any liability. For purposes of this Section 2.9, the term Employee Plan shall
include (a) all "Employee Benefit Plans" as defined by Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended ("ERISA"), (b) all
specified fringe benefit plans as defined in Section 6039D of the Code, and (c)
all other bonus, incentive compensation, deferred compensation, profit sharing,
stock option, stock appreciation right, stock bonus, stock purchase, employee
stock ownership, savings, life insurance, group insurance, or fringe benefit
plan, and any other employee compensation or benefit plan, agreement, policy,
practice, commitment, contract, or understanding (whether qualified or
nonqualified, currently effective or terminated, written or unwritten, funded
or unfunded), and any trust, escrow or other agreement related thereto.

         (b) Except as disclosed on Schedule 2.9, M2 has complied with the
continuation coverage provisions of the Consolidated Omnibus Budget
Reconciliation Act of 1985, as amended ("COBRA") with respect to all current
employees and former employees and other "Qualified Beneficiaries" (as defined
in Code Section 4980B(g)(1) and ERISA Section 607(3)). All Employee Plans that
are "Group Health Plans," as defined in Section 5000(b) of the Code, have been
operated in conformance with the Medicare as Secondary Payer provisions of the
Social Security Act, and no Person is subject to liability under Section
5000(a) of the Code with respect to any such Employee Plan.

                                       6
<PAGE>

         (c) Except as set forth in Schedule 2.9, M2 has maintained workers'
compensation coverage as required by applicable state law through purchase of
insurance and not by self-insurance or otherwise.

         (d) Except as required by law, the consummation of the Transaction
contemplated by this Agreement will not accelerate the time of vesting or the
time of payment, or increase the amount, of compensation due to any employee,
officer, former employee or former officer of M2.

         (e) Except for the continuation coverage requirements of COBRA, the
requirements of other applicable law, or benefits, the full cost of which is
borne by the current or former employee (or his or her beneficiary), M2 has no
obligations or potential liability for medical expenses incurred by employees
following termination of employment or retirement under any of the Employee
Plans.

         (f) None of the transactions contemplated by this Agreement will
result in an amendment, modification or termination of any of the Employee
Plans. No written or oral representations have been made to any employee or
former employee of M2 promising or guaranteeing any employer payment or funding
for the continuation of medical, dental, life or disability coverage for any
period of time beyond the Closing (except to the extent of coverage required
under COBRA). No written or oral representations have been made to any employee
or former employee of M2 concerning the employee benefits of HealthStar.

         SECTION 2.10 MAJOR CUSTOMERS. Schedule 2.10 accurately identifies each
such customer or other Person that accounted for more than Twenty Thousand
Dollars ($20,000) of the gross revenues of M2 during the M2's fiscal year
ending August 31, 2000 or during the four month period ending December 31,
2000. Except as set forth in Schedule 2.10, Sellers have not received any
written notice or other communication and Sellers do not have Knowledge
indicating that any customer of M2 or other Person described in Schedule 2.10
is reasonably likely to cease dealing with M2, to change the applicable payment
methodology such that M2 revenues received from such customer are reduced, or
is reasonably likely to otherwise reduce the volume of business transacted by
such customer or other Persons or entity with M2 below the levels set forth in
Schedule 2.10.

         SECTION 2.11 [RESERVED]

         SECTION 2.12 LITIGATION. (a) Except as set forth in Schedule 2.12,
there is no action, suit, proceeding or investigation pending or, to the
Knowledge of Sellers, threatened, involving M2, by or before any Government
Entity or by any third party. There is no action, suit, proceeding or
investigation, which Sellers currently intend to initiate.

         (b) Except as set forth in Schedule 2.12, M2 is not subject to any
continuing order of, consent decree, settlement agreement or other similar
written agreement with, or, to the Knowledge of Sellers, continuing
investigation by, any Government Entity, or any judgment, order, writ,
injunction, decree, or award of any Government Entity, court, or arbitrator,
including, without limitation, cease-and-desist or other orders.

                                       7
<PAGE>

         SECTION 2.13 NO DEFAULT; COMPLIANCE WITH APPLICABLE LAWS.

         (a) Except as set forth in Schedule 2.13, M2 is not, nor have Sellers
received written notice or any similar communication alleging that M2 may be,
in default or violation of any term, condition or provision of (i) its
certificate of incorporation or bylaws; (ii) any of the Material Agreements (as
defined in Section 2.18); (iii) any note, bond, mortgage, indenture, pledge,
security agreement, credit agreement, guarantee, suretyship arrangement or
other instrument in respect of indebtedness for borrowed money to which M2 is a
party or M2 or any of its assets is bound; or (iv) any statute, law, ordinance,
rule, regulation, judgment, decree, order, arbitration award or material
licenses, permits, consents, approvals and authorizations of a Government
Entity (collectively "Permits") applicable to M2 including, without limitation,
laws, rules and regulations relating to the environment, insurance,
occupational health and safety, employee benefits, wages, workplace safety,
equal employment opportunity, and race, religious or sex discrimination.

         (b) Except as set forth in Schedule 2.13, M2 has all Permits necessary
to conduct its business in the manner and in the areas in which it is presently
being conducted, and all such Permits are valid and in full force and effect.

         SECTION 2.14 TAXES.

         (a) Except as set forth in Schedule 2.14, M2 has (i) timely filed all
Tax Returns (as hereinafter defined) required to be filed by it, and all such
Tax Returns were true, correct and complete in all material respects when filed
and (ii) paid or accrued (in accordance with GAAP) all Taxes (as hereinafter
defined) whether or not shown to be due on such Tax Returns other than such
Taxes that are being contested in good faith by M2;

         (b) Except as set forth on Schedule 2.14, Sellers have not received
written notice of any ongoing federal, state, local or foreign audits or
examinations of any Tax Return of M2;

         (c) There are no outstanding written requests, agreements, consents or
waivers to extend the statutory period of limitations applicable to the
assessment of any material Taxes or deficiencies against M2;

         (d) There are no material statutory liens for Taxes upon the assets of
M2 which are not provided for in the Financial Statements, except liens for
Taxes not yet due and payable and liens for Taxes that are being contested in
good faith and which are set forth on Schedule 2.14;

         (e) The provisions for Taxes on the Financial Statements are
sufficient in all material respects for the payment of all accrued and unpaid
federal, state, county and local Taxes of any nature, and any applicable Taxes
owing to any foreign jurisdiction, whether or not assessed or disputed, as of
such date;

         (f) Schedule 2.14 sets forth accrued and unpaid Federal and State
withholding taxes (including interest and penalties with respect thereto).
Except as set forth in Schedule 2.14, all Taxes and other assessments and
levies which M2 was required to withhold or collect have been

                                       8
<PAGE>

withheld and collected and have been paid over to the proper governmental
authorities when due (without regard to any extensions); and

         (g) M2 is not a party to any agreement, contract or obligation which
requires a distribution, dividend or similar payment of money to any
shareholder of M2.

         "Taxes" shall mean any and all taxes, charges, fees, levies or other
assessments, including, without limitation, income, gross receipts, excise,
real or personal property, sales, withholding, social security, occupation,
use, service, service use, value added, license, net worth, payroll, franchise,
transfer and recording taxes, fees and charges, imposed by the United States
Internal Revenue Service or any taxing authority (whether domestic or foreign,
including, without limitation, any state, local or foreign government or any
subdivision or taxing agency thereof (including a United States possession),
whether computed on separate, consolidated, unitary, combined or any other
basis; and such term shall include any interest, penalties or additional
amounts attributable to, or imposed upon, or with respect to, any such Taxes,
charges, fees, levies or other assessments.

         "Tax Return" shall mean any report, return, document, declaration or
other information or filing required to be supplied to any taxing authority or
jurisdiction (foreign or domestic) with respect to Taxes.

         SECTION 2.15 REAL PROPERTY LEASES. Schedule 2.15 sets forth all real
property leases to which M2 is a party together with a summary of lease terms,
size, rental amounts, expiration dates, escalation provisions and landlord
contacts. M2 does not own any real property. Except as set forth in Schedule
2.15, M2 has good, valid and (if applicable) marketable title to or valid
leasehold interests in all real property leases, free and clear of any claims
of default or breaches which over the passage of time could result in claim of
default or payment of amounts other than as disclosed, other than liens for
taxes not yet delinquent, liens imposed by law for obligations not past due to
carriers, warehousemen, laborers, materialmen and the like, liens in respect of
pledges or deposits under workers' compensation laws or similar legislation,
purchase money security interests given in connection with the acquisition of
assets and minor liens and encumbrances that do not materially detract from the
value of the assets subject thereto or materially impair the operations of M2.
All of the premises subject to the lease are in good condition and repair
(ordinary wear and tear excepted) and are fully effective and afford M2
peaceful and undisturbed possession of the property subject to the lease. The
property and assets of M2 are sufficient for the conduct of its business as
presently conducted. To the Knowledge of Sellers on due inquiry, M2 is not in
violation of any zoning, building or safety ordinance, regulation or
requirement or other law or regulation applicable to the operation of its owned
or leased properties, nor has M2 received any notice of any such violation.
There are no defaults by M2 or, to the Knowledge of Sellers, by any other
party, including the "Landlord" as defined under each such lease, under any
lease of real property which might curtail in any material respect the present
use by M2 of its respective properties.

         SECTION 2.16 PROPERTIES. Schedule 2.16 sets forth (a) all of M2's
equipment leases and the most recent rent (on an annualized basis) with respect
to each of such leases, (b) the vehicles owned or leased by M2 and the
designation of the primary driver with respect to such

                                       9
<PAGE>

vehicles, and (c) a listing of M2's bank accounts (including account numbers).
Except as set forth in Schedule 2.16, M2 has good, valid and (if applicable)
marketable title to or valid leasehold interests in all assets material to its
business and to those assets reflected on the Financial Statements (except for
assets disposed of, cash used and accounts receivable collected or written down
in ordinary course since August 31, 2000), free and clear of Encumbrances,
other than liens for taxes not yet delinquent, liens imposed by law for
obligations not past due to carriers, warehousemen, laborers, materialmen and
the like, liens in respect of pledges or deposits under workers' compensation
laws or similar legislation, purchase money security interests given in
connection with the acquisition of assets and minor liens and encumbrances that
do not materially detract from the value of the assets subject thereto or
materially impair the operations of M2. All equipment included in such assets
which is necessary to the business of M2 is in good condition and repair
(ordinary wear and tear excepted) and all leases of real or personal property
to which M2 is a party are fully effective and afford M2 peaceful and
undisturbed possession of the property subject to the lease. The property and
assets of M2 are sufficient for the conduct of its business as presently
conducted. To the Knowledge of Sellers, M2 is not in violation of any zoning,
building or safety ordinance, regulation or requirement or other law or
regulation applicable to the operation of its owned or leased properties, nor
has M2 received any notice of any such violation. There are no defaults by M2
or, to the Knowledge of Sellers, by any other party under any lease of real or
personal property which might curtail in any material respect the present use
by M2 of its respective properties.

         SECTION 2.17 INTELLECTUAL PROPERTY. Schedule 2.17(a) sets forth all M2
Intellectual Property (as defined below). Except as set forth in Schedule
2.17(b), there are no pending or threatened claims against M2 of which Sellers
have been given written notice, by any Person relating to M2's use or ownership
of any trademarks, trademark registrations, trade names, trade secrets, service
marks, service names, logos, assumed names, copyrights and copyright
registrations, patents and all applications therefor, or other intellectual
property ("Intellectual Property"). M2 has such rights, by license, lease or
other agreement, with respect to the Intellectual Property used in M2's
business as currently conducted (collectively, the "M2 Intellectual Property")
as are necessary to permit M2 to conduct its business as currently conducted,
except where the failure to have such rights, individually or in the aggregate,
would not have a Material Adverse Effect. Except as set forth in Schedule
2.17(b), M2 has not received any notice or other communication (in writing or
otherwise) of, and no inquiry by Sellers has revealed, any actual, alleged,
possible or potential infringement of any M2 Intellectual Property by any other
Person.

         SECTION 2.18 CONTRACTS.

         Schedule 2.18 sets forth all the written Material Agreements (defined
below) relating to M2. Sellers have delivered or made available to HealthStar
copies of all written Material Agreements. Each Material Agreement is in full
force and effect and is valid and enforceable by M2 in accordance with its
terms. To the Knowledge of Sellers, no other Person is in default in the
observance or the performance of any term or obligation to be performed by it
under any Material Agreement. As used in this Agreement, "Material
Agreement(s)" shall mean each agreement, arrangement, instrument, bond,
commitment, franchise, indemnity, indenture, lease, license or understanding to
which M2 is a party or to which M2 or any of its respective properties is
subject that (i) obligates M2 to pay an amount in excess of Twenty Five
Thousand Dollars ($25,000) in any

                                      10
<PAGE>

twelve (12) month period beginning after August 31, 2000; (ii) provides for the
extension of credit to an unaffiliated third party in an amount greater than
Twenty Five Thousand Dollars ($25,000); (iii) provides for a guaranty by M2 of
obligations of others in excess of Twenty Five Thousand Dollars ($25,000); (iv)
constitutes an employment agreement, consulting agreement or personal service
contract not terminable on less than sixty (60) days' notice without penalty;
(v) expressly limits, in any material respect, the ability of M2 to engage in
any business, compete with any Person or expand the nature or geographic scope
of its business; (vi) pursuant to which M2 is entitled to receive an amount in
excess of Twenty Five Thousand Dollars ($25,000) in any twelve month period
beginning after August 31, 2000; or (vii) pursuant to which M2 leases real
property.

         SECTION 2.19 LABOR MATTERS. M2 is neither a party to, nor bound by,
any collective bargaining agreement, contract or other agreement or
understanding with any labor union or labor or organization and there is no
unfair labor practice or labor arbitration proceeding pending or, to the
Knowledge of Sellers, threatened against Sellers relating to M2. M2 is not
delinquent in payments to any of its employees for any wages, salaries,
commissions, bonuses or other direct compensation for any services performed
for it or amounts required to be reimbursed to such employees. Except as set
forth in Schedule 2.19, upon termination of employment of any of said
employees, no severance or other payments will become due. Except as set forth
in Schedule 2.19, M2 does not have any policy, practice, plan or program of
paying severance pay or any form of severance compensation in connection with
the termination of employment or services. M2 is and heretofore has been in
compliance with all applicable laws and regulations respecting labor,
employment, fair employment practices, terms and conditions of employment, and
wages and hours. There are no charges of employment discrimination or unfair
labor practices. There are no grievances, complaints or charges that have been
filed under any dispute resolution procedure (including, but not limited to,
any proceedings under any dispute resolution procedure under any collective
bargaining agreement).

         SECTION 2.20 ENVIRONMENTAL MATTERS. M2 is not in violation of any
applicable statute, law or regulation relating to the environment or
occupational health and safety, and no material expenditures are or will be
required in order to comply with any such existing statute, law or regulation.
No Hazardous Materials (as defined below) are used or have been used, stored,
or disposed of by M2 or, to the Knowledge of Sellers, by any other Person on
any property leased or used by M2. For the purposes of the preceding sentence,
"Hazardous Materials" shall mean (a) materials which are listed or otherwise
defined as "Hazardous" or "Toxic" under any applicable local, state, federal
and/or foreign laws and regulations that govern the existence and/or remedy of
contamination on property, the protection of the environment from
contamination, the control of hazardous wastes, or other activities involving
hazardous substances, including building materials, or (b) any petroleum
products or nuclear materials. To the Knowledge of Sellers, no site operated or
leased by M2 contains any asbestos or asbestos-containing material, any
polychlorinated biphenyls ("PCBs") or equipment containing PCBs, or any urea
formaldehyde foam insulation.

         SECTION 2.21 SUBSIDIARIES. M2 does not own or control any equity
security or other interest of any other corporation, limited partnership or
other business entity. M2 is not a participant in any joint venture,
partnership or similar agreement.

                                      11
<PAGE>

         SECTION 2.22 BROKER OR FINDERS. Sellers represent that no agent,
broker, investment banker, financial advisor or other firm or Person is or will
be entitled to any broker's or finder's fee or any other commission or similar
fee from Sellers in connection with the Transaction contemplated by this
Agreement.

         SECTION 2.23 PERFORMANCE OF SERVICES.

         (a) To the Knowledge of Sellers, except as set forth in Schedule 2.23,
M2 will not incur or otherwise become subject to any Liability (as defined
below) arising directly or indirectly from any services performed by, or on
behalf of, M2 on or at any time prior to the Closing Date other than a Liability
arising in the Ordinary Course of Business. "Liability" shall mean any debt,
obligation, duty or liability of any nature (including any unknown, undisclosed,
unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied,
vicarious, derivative, joint, several or secondary liability), regardless of
whether such debt, obligation, duty or liability would be required to be
disclosed on a balance sheet prepared in accordance with GAAP and regardless of
whether such debt, obligation, duty or liability is immediately due and payable.

         (b) No customer or other Person has asserted or, to the Knowledge of
Sellers, threatened to assert, any material claim against M2 (i) under or based
upon any warranty provided by or on behalf of M2, or (ii) under or based upon
any other warranty relating to any services provided by or on behalf of M2. To
the Knowledge of Sellers, no event has occurred, and no condition or
circumstance exists, that might (with or without notice or lapse of time)
directly or indirectly give rise to or serve as a basis for the assertion of any
such claim, against M2.

         SECTION 2.24 INSURANCE.

         (a) Schedule 2.24 sets forth, with respect to each insurance policy
maintained by or at the expense of, or for the direct or indirect benefit of,
M2:

                  (i)   the name of the insurance carrier that issued such
policy and the policy number of such policy;

                  (ii)  whether such policy is a "Claims Made" or an
"Occurrences" policy; and

                  (iii) the per incident and aggregate policy coverage limit.

         Schedule 2.24 also identifies (A) each pending application for
insurance that has been submitted by or on behalf of M2, and (B) each
self-insurance or risk-sharing arrangement affecting M2 or any of its assets.
Sellers have delivered to HealthStar accurate and complete copies of all of the
insurance policies identified in Schedule 2.24 (including all renewals thereof
and endorsements thereto) and all of the pending applications identified in
Schedule 2.24.

         (b) Each of the policies identified in Schedule 2.24 is valid,
enforceable and in full force and effect, and has been issued by an insurance
carrier that is solvent, financially sound and reputable. All of the information
contained in the applications submitted in connection with said policies was (at
the times said applications were submitted) accurate and complete, and all

                                      12
<PAGE>

premiums and other amounts owing with respect to said policies have been paid in
full on a timely basis. The nature, scope and dollar amounts of the insurance
coverage provided by said policies are sufficient to adequately insure M2's
business, assets, operations, key employees, services and potential liabilities.

         (c) There is no pending claim under or based upon any of the policies
identified in Schedule 2.24, and to the Knowledge of Sellers, no event has
occurred, and no condition or circumstance exists, that might (with or without
notice or lapse of time) directly or indirectly give rise to or serve as a basis
for any such claim.

         (d)      Sellers' have not received:

                  (i)   any notice or other communication (in writing or
otherwise) regarding the actual or possible cancellation or invalidation of any
of the policies identified in Schedule 2.24 or regarding any actual or possible
adjustment in the amount of the premiums payable with respect to any of said
policies;

                  (ii)  any notice or other communication (in writing or
otherwise) regarding any actual or possible refusal of coverage under, or any
actual or possible rejection of any claim under, any of the policies identified
in Schedule 2.24; or

                  (iii) any indication that the issuer of any of the policies
identified in Schedule 2.24 may be unwilling or unable to perform any of its
obligations thereunder.

         SECTION 2.25 RELATED PARTY TRANSACTIONS.

         (a) Except as set forth in Schedule 2.25, no Related Party (as defined
below) has (i) entered into, or has had any direct or indirect financial
interest in, any M2 Contract, any Salesmation Contract, transaction or business
dealing of any nature involving M2, (ii) had any direct or indirect interest of
any nature in any amount and in or otherwise relating to M2, or (iii) been
indebted to M2.

         (b) Except as set forth in Schedule 2.25, no Related Party (or any
employee of, consultant to or other Representative (as defined below) of a
Related Party) provides, or has provided, any materials, services or support to
M2, whether or not for compensation.

         (c) Except as set forth in Schedule 2.25, no Related Party presently
acquires, or has acquired, any materials, services or support from M2, whether
or not for compensation.

         (d) Except as set forth in Schedule 2.25, no Related Party has any
claim or right against M2. No event has occurred, and to the Knowledge of
Sellers, no condition or circumstance exists, that would (with or without notice
or lapse of time) directly or indirectly give rise to or serve as a basis for
any claim or right in favor of any Related Party against M2.

                                      13
<PAGE>

         (e) A "Related Party" means any person who is or has been a
stockholder, director or officer of M2 or Salesmation, any member of the family
of any such individual, or any entity that is an affiliate of any one of the
foregoing.

         (f) "Representatives" of a specified party shall mean officers,
directors, employees, attorneys, accountants, advisors and other representatives
of such party.

         SECTION 2.26 FULL DISCLOSURE.

         (a) Neither this Agreement nor any schedule, exhibit or certificate
delivered pursuant hereto contains or will contain any untrue statement of a
material fact, nor omits or will omit to state any fact necessary to make any of
the representations, warranties or other statements or information contained
herein and therein not materially misleading. To the extent such representations
permit omission of items within the Knowledge of Sellers which would otherwise
be required to be discussed because they are not material or do not or would not
have a Material Adverse Effect, such omissions in the aggregate will not and do
not have a Material Adverse Effect on M2 or HealthStar.

         (b) There is no fact within the Knowledge of Sellers that (i) is
reasonably likely to have a Material Adverse Effect on M2 or on the ability of
M2 to comply with or perform any covenant or obligation under this Agreement, or
(ii) is reasonably likely to have the effect of preventing, delaying, making
illegal or otherwise interfering with any of the transactions contemplated
hereby.

         (c) All of the information set forth in the schedules, and all other
information regarding M2 and its business, condition, assets, liabilities,
operations, financial performance and net income that has been furnished to
HealthStar or any of its Representatives by or on behalf of Sellers or his or
its Representatives, including copies of M2 Contracts, Salesmation Contracts,
Material Agreements and other documents, is accurate and complete in all
material respects.

         (d) Sellers have provided HealthStar and HealthStar's Representatives
with full and complete access to all of Seller's records and other documents and
data.

         SECTION 2.27 INVESTMENT REPRESENTATIONS OF SALESMATION.

         (a)      QUALIFICATIONS.

                  (i)   Salesmation (x) has prior investment experience,
         including investment in non-listed and non-registered securities,
         (y) has the capacity to evaluate the merits and risks of the
         acquisition of the HealthStar Acquisition Shares, and (z) understands
         the nature of an investment in the HealthStar Acquisition Shares and
         is able to bear the economic risks of such an investment;

                  (ii)  Salesmation is experienced in evaluating the merits and
         risks of investing in the businesses and industries in which HealthStar
         operates; and

                                      14
<PAGE>

                  (iii) Salesmation is an "accredited investor" as defined in
         Rule 501(a) of Regulation D under the Securities Act of 1933 (the
         "Securities Act") and has completed the Accredited Investor
         Questionnaire attached hereto as Exhibit B to the satisfaction of
         HealthStar.

         (b) INVESTMENT INTENT. Salesmation will acquire the HealthStar
         Acquisition Shares pursuant to this Agreement for investment for its
         own account, and not with a view to the distribution (as such term is
         used in Section 2(11) of the Securities Act) thereof.

         (c) HEALTHSTAR INFORMATION. Salesmation acknowledges that it (i) has
         received and reviewed copies of the HealthStar Filings with the
         Securities and Exchange Commission (the "SEC"); (ii) has been furnished
         such information with respect to HealthStar's operations, business and
         prospects as it believes necessary and appropriate to evaluate the
         merits of an investment in the HealthStar Acquisition Shares; and (iii)
         has been given the opportunity to ask questions of and receive answers
         from HealthStar and its representatives concerning such information.

         (d) RESALE RESTRICTIONS. Salesmation understands and acknowledges that
         the HealthStar Acquisition Shares will not be registered under the
         Securities Act and applicable state "Blue Sky" laws at or after the
         time of issuance, and must be held indefinitely unless or until (i)
         they are subsequently registered under the Securities Act and
         applicable state "Blue Sky" laws or (ii) an exemption from such
         registration is available for any subsequent sale or distribution.

         (e) EXEMPT SALE. Salesmation understands and acknowledges that the
         offer and sale of the HealthStar Acquisition Shares by HealthStar under
         this Agreement has not been registered (i) under the Securities Act and
         is intended to be exempt from the registration and prospectus delivery
         requirements of the Securities Act by virtue of Section 4(2) of the
         Securities Act and/or Regulation D thereunder, or (ii) under applicable
         state securities laws and regulations in reliance upon exemptions
         contained in such laws and regulations, and (iii) that the reliance of
         HealthStar on such exemption is predicated in part on Salesmation's
         representations set forth in this Section 2.27. Salesmation has not
         offered the HealthStar Acquisition Shares to any Person or taken any
         other action that of itself would cause the aforesaid non-public
         offering exemption not to be available to HealthStar with respect to
         the issuance of the HealthStar Acquisition Shares.

         (f) LEGENDS ON CERTIFICATES. Salesmation understands and acknowledges
         that any certificate or other instrument evidencing any of the
         HealthStar Acquisition Shares shall be stamped or otherwise imprinted
         with the legends (the "Legends") substantially in the form set forth
         below:

                  (i)      The following legend under the Securities Act:

                  "THE SECURITIES REPRESENTED BY THIS CERTFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT") OR UNDER THE SECURITIES

                                      15
<PAGE>

                  LAW OF ANY STATE. SUCH SECURITIES MAY NOT BE SOLD OR OFFERED
                  FOR SALE OR OTHERWISE HYPOTHECATED OR DISTRIBUTED EXCEPT
                  (A)(i) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FOR
                  SUCH SECURITIES UNDER THE SECURITIES ACT OR (ii) PURSUANT TO
                  A VALID EXEMPTION FROM SUCH REGISTRATION UNDER THE SECURITIES
                  ACT AND UNDER THE SECURITIES LAW OF ANY STATE, AND (B) UPON
                  RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL FOR THE
                  HOLDER, WHICH OPINION SHALL BE SATISFACTORY IN FORM AND
                  SUBSTANCE TO THE COMPANY THAT SUCH SALE IS IN COMPLIANCE WITH
                  THE SECURITIES ACT AND SUCH STATE SECURITIES LAW."

                  (ii) Any legend imposed or required by HealthStar's
certificate of incorporation or bylaws or applicable state securities laws.

                  Salesmation understands and acknowledges that HealthStar will
make, or cause to be made, a notation in its stock transfer registry with
respect to the restrictions on offer and sale of the HealthStar Acquisition
Shares.

         (g) OTHER. Salesmation acknowledges and represents that the M2 Shares
being transferred to HealthStar as a result of the Transaction are being
transferred by Salesmation to HealthStar pursuant to and in reliance upon an
exemption from the registration requirements of Section 5 of the Securities Act,
and upon exemptions contained in applicable state securities laws.

         SECTION 2.28 INVESTMENT REPRESENTATIONS OF SELLERS.

         (a) Sellers understand that the HealthStar Acquisition Shares may not
be sold, transferred, or otherwise disposed of without registration under the
Securities Act or an exemption therefrom, and that in the absence of an
effective registration statement covering the HealthStar Acquisition Shares or
an available exemption from registration under the Securities Act, the
HealthStar Acquisition Shares must be held indefinitely. In particular, Sellers
understand that HealthStar Acquisition Shares may not be sold pursuant to Rule
144 promulgated under the Securities Act unless all of the conditions of that
Rule are met.

         (b) HealthStar shall not be obligated to register for resale, nor shall
Sellers seek to register for resale, any HealthStar Acquisition Shares obtained
in the Transaction.

         SECTION 2.29 CORPORATE NAME. M2 has not done or conducted business
under, and currently is not conducting business under, any name or other
corporate identity other than "M2 Limited."

         SECTION 2.30 KNOWLEDGE OF INDIVIDUALS. Schedule 2.30 sets forth those
current officers, directors or employees (collectively, the "Listed
Individuals") that hold positions such that the Listed Individuals, in the
aggregate, have access to information relating to, and responsibility for, the
conduct and operation of M2's business.

                                      16

<PAGE>

         SECTION 2.31 STOCKHOLDER DISTRIBUTIONS. M2 has not, since August 31,
2000, (a) declared, set aside or paid any dividend or other distribution,
whether payable in cash, stock or other property, in respect of its capital
stock or (b) directly or indirectly redeemed, purchased or otherwise acquired
any shares of its capital stock or other securities.

                                   ARTICLE III
                  REPRESENTATIONS AND WARRANTIES OF HEALTHSTAR

         HealthStar hereby represents and warrants to Sellers as follows:

         SECTION 3.1 ORGANIZATION. HealthStar is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation and has all requisite corporate power and authority to own, lease
and operate its properties and to carry on its business as is now being
conducted. HealthStar is duly qualified or licensed to do business and is in
good standing in each jurisdiction in which the property owned, leased or
operated by it or the nature of the business conducted by it makes such
qualification or licensing necessary, except where the failure to be so duly
qualified or licensed and in good standing would not have a Material Adverse
Effect.

         SECTION 3.2 AUTHORIZATION; VALIDITY OF AGREEMENT; NECESSARY ACTION.
HealthStar has the corporate power and authority to execute and deliver this
Agreement and to consummate the Transaction contemplated hereby. The execution,
delivery and performance by HealthStar of this Agreement, and the consummation
of the Transaction contemplated hereby, have been duly authorized by all
necessary corporate proceedings, and no other corporate action on the part of
HealthStar is necessary to authorize the execution and delivery by HealthStar of
this Agreement and the consummation by it of the Transaction contemplated
hereby. This Agreement has been duly executed and delivered by HealthStar and,
assuming due and valid authorization, execution and delivery hereof by Sellers,
is a valid and binding obligation of HealthStar, enforceable against it in
accordance with its terms, except that (a) such enforcement may be subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar
laws, now or hereafter in effect, affecting creditors' rights generally, and (b)
the remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court
before which any proceeding therefor may be brought.

         SECTION 3.3 CONSENTS AND APPROVALS; NO VIOLATIONS. Neither the
execution, delivery nor performance of this Agreement by HealthStar nor the
consummation by HealthStar of the Transaction contemplated hereby will (a)
violate any provision of the certificate of incorporation or bylaws of
HealthStar; (b) result in a violation or breach of, or constitute (with or
without due notice or lapse of time or both) a default (or give rise to any
right of termination, cancellation or acceleration) under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
properties or assets of HealthStar, or give rise to any obligation, right of
termination, cancellation, acceleration or increase of any obligation or a loss
of material benefit under, any of the terms, conditions or provisions of any
note, bond, mortgage, indenture, lease, license, contract, agreement or other
instrument or obligation to which HealthStar is a party or by

                                      17
<PAGE>

which HealthStar or any of its properties or assets may be bound; (c) violate
any order, writ, judgment, injunction, decree, law, statute, rule or
regulation applicable to HealthStar or any of its properties or assets, or
(d) except for those filings required pursuant to applicable state and
federal securities laws, require on the part of HealthStar any filing or
registration with, notification to, or authorization, consent or approval of
any Government Entity.

         SECTION 3.4 BROKERS OR FINDERS. HealthStar represents that no agent,
broker, investment banker, financial advisor or other firm or Person is or will
be entitled to any broker's or finder's fee or any other commission or similar
fee from HealthStar in connection with the Transaction contemplated by this
Agreement.

         SECTION 3.5 CAPITALIZATION. As of the date hereof, the total authorized
capital stock of HealthStar is (a) 15,000,000 shares of HealthStar Common Stock,
par value $.001 per share and (b) 1,000,000 shares of Preferred Stock, par value
$.001 per share (the "Preferred Stock"). As of November 13, 2000, 4,345,872
shares of HealthStar Common Stock were issued and outstanding, and an additional
1,000,000 shares of HealthStar Common Stock were reserved for issuance with
respect to options or awards that have been or may be granted under HealthStar's
stock option and award plans or other employee agreements.

         SECTION 3.6 INVESTMENT INTENT. The M2 Shares to be acquired under this
Agreement are being acquired by HealthStar with the intention of investment and
not with a view to any public distribution thereof, and HealthStar will not sell
or otherwise dispose of any such M2 Shares so acquired by it in violation of the
Securities Act or any applicable securities laws of any jurisdiction.

                                   ARTICLE IV
                                    COVENANTS

         SECTION 4.1 TAX MATTERS. Sellers shall be liable for, and shall
indemnify and hold HealthStar harmless against, all Taxes with respect to M2
payable for any taxable year or taxable period ending on or before the Closing
Date. HealthStar and M2 shall be liable for, and shall indemnify and hold
Sellers harmless against, any and all Taxes imposed on M2 relating or
apportioned to any taxable year or portion thereof ending after the Closing
Date. To appropriately apportion any income Taxes relating to any taxable year
beginning before and ending after the Closing Date, the parties shall apportion
such income Taxes to the taxable period ending on or before the Closing Date by
a closing of M2's books consistent with their past practices for reporting
items, except that exemptions, allowances or deductions that are calculated on a
time basis shall be apportioned on a time basis. The existing management of
HealthStar shall be responsible for preparing the Tax Returns of HealthStar, and
Salesmation shall be responsible for preparing the Tax Returns of M2, for all
periods ending on or before the Closing Date. Each party shall cooperate and
consult with the other party in connection with the preparation of such Tax
Returns. The obligations of the parties set forth in this Section 4.1 shall be
unconditional and absolute, and shall remain in effect until thirty (30) days
after the expiration of the applicable statute of limitations.

                                      18
<PAGE>

         SECTION 4.2 FURTHER ASSURANCES. Each party agrees to use all reasonable
efforts to take, or cause to be taken, all action, and to do, or cause to be
done, all things necessary, proper or advisable under applicable laws and
regulations to consummate and make effective the Transaction contemplated by
this Agreement.

         SECTION 4.3 PROPRIETARY INFORMATION. Unless and until the Closing
occurs, each party shall keep and retain in confidence and shall not use for any
purpose other than to evaluate the Transaction contemplated under this Agreement
any and all of the confidential and proprietary information respecting the other
parties set forth or referenced in the schedules or otherwise provided to the
receiving party by the disclosing party in connection with or in anticipation of
the Closing, irrespective of the form in which it is delivered or when delivered
(the "Proprietary Information"). The preceding requirement shall not apply to
Proprietary Information that (a) a party was in the possession of, or was
rightfully known by, the receiving party or its Representatives, without an
obligation to maintain its confidentiality prior to receipt from the disclosing
party or its Representatives, (b) is or becomes generally known to the public
without violation of this Agreement, (c) is obtained by the receiving party or
its Representatives in good faith from a third party having the right to
disclose it without an obligation of confidentiality, or (d) is independently
developed by the receiving party or its Representatives without the
participation of individuals who have had access to the Proprietary Information.
In the event the Agreement is terminated prior to Closing for any reason, the
receiving party agrees to either return to the disclosing party all of the
Proprietary Information subject to this Section 4.4 (including all copies) in
its possession or under its control or to purge, shred or otherwise destroy all
such Proprietary Information not returned, at the option of the disclosing
party. The receiving party shall, and shall cause each of its Representatives
to, keep and maintain all Proprietary Information subject to this Section 4.4
confidential in any case in which the Closing does not occur and not avail
itself of or use any of such Proprietary Information for its own benefit. The
receiving party shall promptly certify its compliance with the foregoing in the
event of any termination of the Agreement.

         SECTION 4.4 FORM 8-K. HealthStar and the Sellers will cooperate with
each other in the preparation of a Form 8-K to be filed with the SEC describing
the Transaction contemplated by this Agreement and such other items as are
required by the rules and regulations of the SEC.

                                    ARTICLE V
                                 INDEMNIFICATION

         SECTION 5.1 INDEMNIFICATION BY SELLERS. Subject to the limits set forth
in this Article V, Sellers agree to indemnify, defend and hold HealthStar, and
its respective officers, directors and agents, harmless from and in respect of
any and all losses, damages, Liability, costs and expenses (including, without
limitation, reasonable expenses of investigation and defense fees and
disbursements of counsel and other professionals) (collectively, "Losses"),
arising directly or indirectly out of or directly or indirectly due to any
inaccuracy of any representation or the breach of any warranty, covenant,
undertaking or other agreement of Sellers contained in this Agreement, including
the Exhibits and Schedules attached hereto and incorporated by reference herein
as set forth in Section 10.7 hereof.

                                      19
<PAGE>

         SECTION 5.2 INDEMNIFICATION BY HEALTHSTAR. Subject to the limits set
forth in this Article V, HealthStar agrees to indemnify, defend and hold Sellers
harmless from and in respect of any and all Losses that arising directly or
indirectly out of or directly or indirectly due to any inaccuracy of any
representation or the breach of any warranty, covenant, undertaking or other
agreement of HealthStar contained in this Agreement.

         SECTION 5.3 SURVIVAL OF REPRESENTATIONS AND WARRANTIES; LIMITATIONS ON
INDEMNITY. The representations and warranties of the parties contained in this
Agreement or in any instrument delivered pursuant to this Agreement will survive
the Closing Date and will remain in full force and effect thereafter for a
period of eighteen (18) months from the Closing Date; provided, however, that
the representations and warranties contained in Section 2.14 will remain in full
force and effect for a period equal to the applicable statute of limitations;
and provided, further, that such representations or warranties shall survive (if
at all) beyond such period with respect to any inaccuracy therein or breach
thereof, notice of which shall have been duly given within such time period in
accordance with this Article V. Anything to the contrary contained herein
notwithstanding, HealthStar shall not be entitled to recover Losses from the
Sellers nor shall the Sellers be entitled to recover Losses from HealthStar
unless and until the total of all claims for Losses with respect to any
inaccuracy or breach of any such representations or warranties or breach of any
covenants, undertakings or other agreements, whether such claims are brought
under this Article V or otherwise, exceeds Fifty Thousand Dollars ($50,000) in
the aggregate. If the total amount of such Losses exceeds Fifty Thousand Dollars
($50,000), then the party entitled to recover hereunder shall be entitled to
recover the full amount of such losses and not merely the portion of such
damages exceeding Fifty Thousand Dollars ($50,000).

         SECTION 5.4 NOTICE AND OPPORTUNITY TO DEFEND. If an event occurs which
a party asserts is an indemnifiable event pursuant to Section 5.1 or 5.2, the
party seeking indemnification (the "Indemnitee") shall promptly notify the other
party obligated to provide indemnification (the "Indemnifying Party"). If such
event involves (a) any claim or (b) the commencement of any action or proceeding
by a third Person, the Indemnitee will give such Indemnifying Party prompt
written notice of such claim or the commencement of such action or proceeding;
provided, however, that the Indemnitee's failure to provide prompt notice as
provided herein will relieve the Indemnifying Party of its obligations hereunder
only to the extent that such failure prejudices the Indemnifying Party
hereunder. If any such action is brought against any Indemnitee and it notifies
the Indemnifying Party of the commencement thereof, the Indemnifying Party shall
be entitled to participate therein and, to the extent that it wishes, to assume
the defense thereof, with counsel reasonably satisfactory to the Indemnitee.
After notice from the Indemnifying Party to the Indemnitee of such election to
so assume the defense thereof, the Indemnifying Party shall not be liable to the
Indemnitee for any legal expenses of other counsel or any other expenses
subsequently incurred by the Indemnitee in connection with the defense thereof,
and the Indemnitee agrees to cooperate fully with the Indemnifying Party and its
counsel in the defense against any such asserted liability. The Indemnitee shall
have the right to participate at its own expense in the defense of such asserted
liability. In no event shall an Indemnifying Party be liable for any settlement
effected by the Indemnitee without the consent of the Indemnifying Party, which
will not be unreasonably withheld. In no event shall an Indemnifying Party
effect any settlement without the consent of the Indemnitee, which will not be
unreasonably withheld.

                                      20
<PAGE>

         SECTION 5.5 MITIGATION OF LOSS. Each Indemnitee is obligated to use
reasonable efforts to mitigate to the fullest extent practicable the amount of
any Loss for which it is entitled to seek indemnification hereunder.

         SECTION 5.6 SUBROGATION. Upon making any payment of Losses of the
Indemnitee, the Indemnifying Party will, to the extent of such payment, be
subrogated to all rights of the Indemnitee against any third party in respect of
the Loss to which the payment relates; provided, however, that until the
Indemnitee recovers full payment of its Loss, any and all claims of the
Indemnifying Party against any such third party on account of such payment are
hereby made expressly subordinated and subjected in right of payment of the
Indemnitee's rights against such third party. Without limiting the generality of
any other provision hereof, each such Indemnitee and Indemnifying Party will
duly execute upon request all instruments reasonably necessary to evidence and
perfect the above described subrogation and subordination rights.

         SECTION 5.7 TAX INDEMNIFICATION. None of the provisions of Article V,
with the exception of Section 5.5, shall apply to the claims, obligations,
liabilities, covenants and representations under Section 4.1, which shall be
governed solely by the terms thereof.

         SECTION 5.8 REMEDY. Following the Closing, a party suffering a Loss,
due to any breach of or inaccuracy in any representation or warranty or any
breach, nonfulfillment or default in the performance of any of the covenants or
agreements contained in this Agreement (but not any such covenants or agreements
to the extent they are by their terms to be performed after the Closing Date),
shall have, in its sole and absolute discretion, the right to seek redress for
such Loss either through the indemnification provided for in this ARTICLE V or
through a claim for rescission of the entire transaction under appropriate
contract law, common law, statute, law, regulation or otherwise, including,
without limitation, under the Racketeer Influence and Corrupt Organizations Act
of 1970, as amended, all of which the parties hereby expressly reserve
notwithstanding the absence of fraud with respect to such breach, inaccuracy,
nonfulfillment or default.

         SECTION 5.9 INVESTIGATION. The representations, warranties, covenants
and obligations of the parties, and the rights and remedies that may be
exercised by the Indemnitees, shall not be limited or otherwise affected by or
as a result of any information furnished to, or any investigation made by or the
knowledge of, the other parties, any of the other Indemnitees or any of their
Representatives.

                                   ARTICLE VI
                        PRE-CLOSING COVENANTS OF SELLERS

         SECTION 6.1 ACCESS AND INVESTIGATION. Sellers shall ensure that, at all
times from the date hereof to and until the Closing Date (the "Pre-Closing
Period"):

         (a) Sellers will provide HealthStar and its Representatives with free
and complete access at reasonable times and with reasonable notice to M2's
premises and assets, and to all existing books, records, Tax Returns, work
papers and other documents and information relating to M2;

                                      21
<PAGE>

         (b) Subject to standards and procedures acceptable to Sellers, Sellers
and their Representatives will provide HealthStar and its Representatives the
opportunity to meet with M2's personnel and a reasonable number of parties to
M2's Material Agreements; and

         (c) Sellers and their Representatives will compile and provide
HealthStar and its Representatives with such additional financial, operating and
other data and information regarding M2 as HealthStar may request in good faith.

         SECTION 6.2 OPERATION OF BUSINESS. Unless Sellers first obtain a
written waiver or consent from HealthStar, Sellers shall ensure that, during the
Pre-Closing Period:

         (a) M2 conducts its operations exclusively in the Ordinary Course of
Business and consistent with past practice and uses its best efforts to preserve
intact its current business organization, keep available the services of its
current officers and employees and maintain its relations and goodwill with all
suppliers, customers, landlords, creditors, licensors, licensees, employees and
other Persons having business relationships with M2;

         (b) Sellers keep in full force all insurance policies covering M2
identified in Schedule 2.24;

         (c) Sellers confer regularly with HealthStar concerning operational
matters and otherwise report regularly to HealthStar concerning the status of
M2's business, condition, assets, liabilities, operations, financial performance
and prospects;

         (d) Sellers immediately notify HealthStar of any inquiry, proposal or
offer from any Person relating to any Acquisition Transaction (as defined
herein); "Acquisition Transaction" shall mean any transaction involving: (a) the
sale or other disposition of all or any portion of M2's business or assets
(other than in the Ordinary Course of Business); (b) the issuance, sale or other
disposition of (i) any capital stock of M2, (ii) any option, call, warrant or
right (whether or not immediately exercisable) to acquire any capital stock of
M2, or (iii) any security, instrument or obligation that is or may become
convertible into or exchangeable for any capital stock of M2; or (c) any merger,
consolidation, business combination, share exchange, reorganization or similar
transaction involving M2;

         (e) M2 does not effect or become a party to any Acquisition
Transaction;

         (f) M2 does not form any subsidiary or acquire any equity interest or
other interest in any other Person;

         (g) M2 does not make any capital expenditure in excess of Ten Thousand
Dollars ($10,000) or otherwise outside the Ordinary Course of Business;

         (h) M2 does not enter into any contract involving annual payments by M2
in excess of Twenty-Five Thousand Dollars ($25,000);

                                      22

<PAGE>

         (i) M2 does not incur, assume or otherwise become subject to any
liability, except for current liabilities (of the type required to be reflected
in a balance sheet prepared in accordance with GAAP) incurred in the Ordinary
Course of Business;

         (j) M2 does not establish or adopt any new Employee Plan, does not
amend any existing Employee Plan and does not pay any bonus or make any profit
sharing or similar payment to, or increase the amount of the wages, salary,
commissions, fringe benefits or other compensation or remuneration payable to,
any of its directors, officers or employees, except for merit increases made to
employees in the Ordinary Course of Business;

         (k) M2 does not change any of its methods of accounting or accounting
practices in any respect, except as required by GAAP or applicable laws;

         (l) M2 does not make any Tax election;

         (m) M2 does not commence any action, suit, litigation, arbitration,
proceeding (including any civil, criminal, administrative, investigative or
appellate proceeding and any informal proceeding), prosecution, contest,
hearing, inquiry, inquest, audit, examination or investigation involving any
Government Entity or third party;

         (n) M2 does not (i) acquire, dispose of, transfer, lease, license,
mortgage, pledge or encumber any fixed or other assets, other than in the
Ordinary Course of Business; (ii) incur, assume or prepay any indebtedness,
liability or obligation or any other liabilities or issue any debt securities,
other than in the Ordinary Course of Business; (iii) assume, guarantee, endorse
or otherwise become liable or responsible (whether directly, contingently or
otherwise) for the obligations of any other Person, other than in the Ordinary
Course of Business; or (iv) make any loans, advances or capital contributions
to, or investments in, any other Person, other than in the Ordinary Course of
Business;

         (o) M2 pays debts and Taxes when due subject to good faith disputes
thereof, and pays or performs other obligations when due;

         (p) M2 does not transfer to any Person or entity any Intellectual
Property or intangible asset other than in the Ordinary Course of Business;

         (q) M2 does not enter into or amend any Material Agreements;

         (r) M2 does not pay, discharge or satisfy in any amount in excess of
Ten Thousand Dollars ($10,000) in any one case or Thirty Thousand Dollars
($30,000) in the aggregate, any claim, liability or obligation (absolute,
accrued, asserted or unasserted, contingent or otherwise) arising other than in
the Ordinary Course of Business, other than the payment, discharge or
satisfaction of liabilities reflected or reserved against the Financial
Statements or reasonably incurred in connection with the transactions
contemplated by this Agreement;

                                       23
<PAGE>

         (s) M2 gives all notices and other information required prior to the
Closing Date to be given to the employees of M2 and any applicable Government
Entity pursuant to applicable law in connection with the transactions provided
for in this Agreement; and

         (t) M2 shall not enter into any transaction, related party
transaction, or take any other action that likely would cause or constitute a
breach of any, representation, warranty or covenant made by Sellers in this
Agreement.

         SECTION 6.3 FILINGS AND CONSENTS.

         (a) Sellers covenant and agree that each filing or notice required to
be made or given (pursuant to any applicable legal requirement, order or
contract, or otherwise) by Sellers in connection with the execution and
delivery of this Agreement or in connection with the consummation or
performance of the Transaction contemplated hereby shall be made or given as
promptly as practicable after the date of this Agreement;

         (b) Sellers shall use his or its best efforts to obtain or cause to be
obtained each consent or estoppel letter required to be obtained (pursuant to
any applicable legal requirement, order or contract, or otherwise) by Sellers
in connection with the execution and delivery of this Agreement or in
connection with the consummation or performance of the Transaction contemplated
hereby (including each of the consents identified in Section 2.5 of the
Disclosure Schedule) as promptly as practicable after the date of this
Agreement and each of such consents shall remain in full force and effect
through the Closing Date;

         (c) Sellers shall promptly deliver to HealthStar a copy of each filing
made, each notice given and each consent obtained by Sellers during the
Pre-Closing Period; and

         (d) During the Pre-Closing Period, Sellers and their Representatives
shall cooperate with HealthStar and with HealthStar's Representatives, and
prepare and make available such documents and take such other actions as
HealthStar may request in good faith.

         SECTION 6.4 NOTIFICATION.

         (a) During the Pre-Closing Period, Sellers shall promptly notify
HealthStar of:

                  (i) the discovery by Sellers of any event, condition, fact or
Circumstance that occurred or existed on or prior to the date of this Agreement
and that caused or constitutes a breach of any representation or warranty made
by Sellers in this Agreement;

                  (ii) any event, condition, fact or circumstance that occurs,
arises or exists after the date of this Agreement and that would cause or
constitute a breach of any representation or warranty made by Sellers in this
Agreement if (i) such representation or warranty had been made as of the time
of the occurrence, existence or discovery of such event, condition, fact or
circumstance, or (ii) such extent, condition, fact or circumstance had
occurred, arisen or existed on or prior to the date of this Agreement;

                                      24
<PAGE>

                  (iii) any breach of any covenant or obligation of Sellers; and

                  (iv) any event, condition, fact or circumstance that may make
the timely satisfaction of any of the conditions set forth Article VIII
impossible or unlikely; and

         (b) Sellers shall have the obligation to supplement any section of the
schedules prior to Closing with respect to any transaction permitted under
Section 6.2 or any matter described in Section 6.4(a) above which occurs during
the Pre-Closing Period. Such supplementation is not a waiver by HealthStar of
any breach of a representation or warranty as to the matter so supplemented.

         SECTION 6.5 NO NEGOTIATION. During the Pre-Closing Period, none of
Sellers nor their Representatives directly or indirectly:

         (a) shall solicit or encourage the initiation of any inquiry, proposal
or offer from any Person (other than HealthStar) relating to any Acquisition
Transaction;

         (b) shall participate in any discussions or negotiations with, or
provide any non-public information to, any Person (other than HealthStar)
relating to any Acquisition Transaction; or

         (c) shall consider the merits of any unsolicited inquiry, proposal or
offer from any Person (other than HealthStar) relating to any Acquisition
Transaction.

         SECTION 6.6 BEST EFFORTS. During the Pre-Closing Period, Sellers shall
use their best efforts to cause the conditions set forth in Article VIII to be
satisfied on a timely basis, and shall not take any action or omit to take any
action, the taking or omission of which would or could reasonably be expected
to result in any of the representations and warranties set forth in Article II
of this Agreement becoming untrue, in any of the conditions of Closing set
forth in Article VIII not being satisfied.

         SECTION 6.7 CONFIDENTIALITY; PUBLICITY.  During the Pre-Closing Period:

         (a) Sellers and their Representatives shall keep strictly confidential
the existence and terms of this Agreement prior to the issuance or
dissemination of any mutually agreed upon press release or other disclosure of
the Transaction contemplated hereunder;

         (b) none of Sellers nor their Representatives shall issue or
disseminate any press release or other publicity or otherwise make any
disclosure of any nature (to any of M2's suppliers, customers, landlords,
creditors or employees or to any other Person) regarding the Transaction
contemplated by this Agreement, except as required by federal securities laws
or other applicable laws and except as otherwise agreed by the parties; and

         (c) if Sellers are required by law to make any disclosure regarding
the Transaction contemplated by this Agreement, Sellers shall advise
HealthStar, at least two (2) business days prior to making such disclosure, of
the nature and content of the intended disclosure.

                                      25
<PAGE>

         SECTION 6.8 STOCKHOLDER DISTRIBUTIONS. M2 shall not, from the date
hereof through the Closing, (a) declare, set aside or pay any dividend or other
distribution, whether payable in cash, stock or other property, in respect of
its capital stock or (b) directly or indirectly redeem, purchase or otherwise
acquire any shares of its capital stock or other securities.

         SECTION 6.9 TRANSITION. Sellers shall take all reasonable steps to
ensure that the business of M2 shall be integrated with the business of
HealthStar following the Closing.

                                   ARTICLE VII
                       PRE-CLOSING COVENANTS OF HEALTHSTAR

         SECTION 7.1 BEST EFFORTS. During the Pre-Closing Period, HealthStar
shall not take any action or omit to take any action, the taking or omission of
which would or could reasonably be expected to result in any of the
representations and warranties set forth in Article III of this Agreement
becoming untrue or in any of the conditions of closing set forth in Article
VIII not being satisfied, other than in accordance with the fiduciary
obligation of the Board of Directors, as determined under applicable law.

                                  ARTICLE VIII
                                   CONDITIONS

         SECTION 8.1 CONDITIONS TO EACH PARTY'S OBLIGATION TO EFFECT THE
CLOSING. The obligations of Sellers, on the one hand, and HealthStar, on the
other, to consummate the Closing are subject to the satisfaction (or, if
permissible, waiver by the party for whose benefit such conditions exist) of
the following conditions:

         (a) no arbitrator or Government Entity shall have issued any order,
decree or ruling, and there shall not be any statute, rule or regulation,
restraining, enjoining or prohibiting the consummation of the Transaction
contemplated by this Agreement; provided that the parties shall have used their
best efforts to cause any such order, decree, statute, rule or regulation to be
vacated or lifted; and

         (b) all action necessary to authorize the execution, delivery and
performance of this Agreement, and the consummation of the Transaction
contemplated hereby shall have been duly and validly taken by the respective
boards of directors of HealthStar, Salesmation and M2 and, where applicable,
their shareholders.

         SECTION 8.2 CONDITIONS TO THE OBLIGATIONS OF HEALTHSTAR. The
obligations of HealthStar to consummate the Transaction contemplated hereby are
subject to the satisfaction (or waiver by HealthStar) of the following further
conditions:

         (a) the representations and warranties of Sellers shall be true and
accurate as of the Closing Date as if made at and as of such time (other than
those representations and warranties that

                                      26
<PAGE>

address matters only as of a particular date or only with respect to a specific
period of time which need to be true and accurate only as of such date or with
respect to such period);

         (b) Sellers shall have performed in all material respects the
obligations hereunder required to be performed by them at or prior to the
Closing Date;

         (c) HealthStar shall have received (i) a certificate signed by two
duly authorized executive officers of Salesmation, dated as of the Closing
Date, to the effect that, to the best of their Knowledge, the conditions set
forth in Section 8.2(a) and 8.2(b) have been satisfied; and (ii) a certificate
of the secretary or assistant secretary of Salesmation certifying that each
officer was authorized under Salesmation's bylaws to sign the certificate in
his or her capacity as stated in the officer's certificate;

         (d) HealthStar shall have received an opinion letter from counsel for
Sellers, as of the Closing Date, in a form acceptable to HealthStar;

         (e) On, before or simultaneously with the Closing, M2 shall have paid
all Federal, Maryland, and any other state withholding taxes (including
interest and penalties with respect thereto) for all quarters ending on or
before the Closing Date and, at HealthStar's request, shall provide
documentation from the applicable Government Entity that such withholding taxes
have been paid;

         (f) there shall have been no Material Adverse Effect with respect to
M2's business, condition (financial or otherwise), assets, liabilities,
operations or financial performance since August 31, 2000;

         (g) there shall be no outstanding bank loans to or on behalf of M2
(including, but not limited to, loans from Potomac Valley Bank which shall have
been paid off prior to or simultaneously with the Closing);

         (h) there shall have been no distributions, payments or similar
transfers of money (except for duly earned or accrued salary);

         (i) since the date of this Agreement, there shall not have been
commenced or threatened against M2 or against any Person affiliated with M2,
any proceeding:

                  (1) involving any challenge to, or seeking damages or other
relief in connection with, the Transaction contemplated hereunder, or

                  (2) that are reasonably likely to have the effect of
preventing, delaying, making illegal or otherwise interfering with the
Transaction contemplated hereunder or having a Material Adverse Effect on M2.

         (j) Sellers shall have obtained the consents and estoppel letters
referenced in Schedule 2.5 and such other consents and estoppel letters
necessary to ensure, on and after the Closing Date, the continuation in full
force of the real property and equipment leases referenced in Schedules 2.15

                                      27
<PAGE>

and 2.16 or shall have arranged pursuant to a sublease or otherwise to ensure
that M2 shall be entitled to all of the same rights and benefits of such leases
after the Closing Date as M2 is entitled to immediately before the execution of
this Agreement;

         (k) the receipt of a fairness opinion by HealthStar from Ferris Baker
Watts, Inc. (or another recognized investment banker) in a form acceptable to
HealthStar;

         (l) M2 shall have net working capital at the time of Closing of
$35,000. For purposes of this Section 8.2(l), net working capital (excluding
amounts referred to in Section 8.2(e) and Section 8.2(g)) shall be defined as
current assets minus current liabilities;

         (m) the execution by Key Individuals and such other key personnel of
M2 of employment agreements in a form acceptable to HealthStar;

         (n) M2 shall have obtained key man insurance policies on Andre-Paul
Pellet and Michael R. Pellet, each in the amount of $1 million.

         SECTION 8.3 CONDITIONS TO THE OBLIGATIONS OF SELLERS. The obligations
of Sellers to consummate the Transaction contemplated hereby are subject to the
satisfaction (or waiver by Seller) of the following conditions:

         (a) the representations and warranties of HealthStar shall be true and
accurate as of the Closing Date as if made at and as of such time (other than
those representations and warranties that address matters only as of a
particular date or only with respect to a specific period of time which need to
be true and accurate only as of such date or with respect to such period);

         (b) HealthStar shall have performed in all material respects all of
the obligations hereunder required to be performed by HealthStar, at or prior
to the Closing Date;

         (c) Sellers shall have received (i) a certificate signed by two duly
authorized executive officers of HealthStar, dated as of the Closing Date, to
the effect that, to the best of their Knowledge the conditions set forth in
Section 8.3(a) and Section 8.3(b) have been satisfied and (ii) a certificate of
the secretary or assistant secretary of HealthStar certifying that each officer
was authorized under HealthStar's bylaws to sign the certificate in his or her
capacity as stated in the officer's certificate;

         (d) At the Closing, HealthStar Shares shall continue to be listed on
the NASD OTC Bulletin Board and no inquiry or proceeding by the NASD shall then
be in progress for the possible delisting of such shares; and

         (e) since the date of this Agreement, there shall not have been
commenced or threatened against HealthStar or against any Person affiliated
with HealthStar, any proceeding;

                  (1) involving any challenge to, or seeking damages or other
relief in connection with, the Transaction contemplated hereunder, or

                                      28
<PAGE>

                  (2) that are reasonably likely to have the effect of
preventing, delaying, making illegal or otherwise interfering with the
Transaction contemplated hereunder or having a Material Adverse Effect on
HealthStar.

                                   ARTICLE IX
                                   TERMINATION

         SECTION 9.1 TERMINATION. This Agreement may be terminated and the
Transaction contemplated hereby abandoned at any time prior to the Closing Date:

         (a) by mutual written consent of Sellers and HealthStar;

         (b) by either Sellers or HealthStar if the Transaction contemplated
hereby shall not have been consummated by April 15, 2001;

         (c) by either Sellers or HealthStar if any Governmental Entity shall
have issued an order, decree or ruling or taken any other action restraining,
enjoining or otherwise prohibiting the consummation of the Transaction
contemplated hereby and such order, decree, ruling or any other action shall
have become final and non-appealable;

         (d) by HealthStar if there shall have been any material breach of a
representation and warranty or material obligation of Sellers hereunder and, if
such breach is curable, such default shall not have been remedied within ten
(10) days after receipt by Sellers of notice in writing from HealthStar
specifying such breach and requesting that it be remedied; provided, that such
ten (10) day period shall be extended for so long as Sellers shall be making all
reasonable attempts to cure such breach, unless the breach is not susceptible of
a cure;

         (e) by Sellers if there shall have been any material breach of a
representation and warranty or material obligation of HealthStar hereunder and,
if such breach is curable, such default shall have not been remedied within ten
(10) days after receipt by HealthStar of notice in writing from Sellers
specifying such breach and requesting that it be remedied; provided, that such
ten (10) day period shall be extended for so long as HealthStar shall be making
all reasonable attempts to cure such breach, unless the breach is not
susceptible of a cure; or

         (f) by HealthStar if the Board of Directors of HealthStar determines in
good faith after consulting with outside counsel, and in the absence of a breach
by Sellers, giving grounds for termination pursuant to Section 9.1(d), that such
action is necessary to comply with the fiduciary duties of the Board of
Directors of HealthStar under applicable law.

         SECTION 9.2 EFFECT OF TERMINATION. In the event of the termination of
this Agreement pursuant to Sections 9.1(a), 9.1(b), and 9.1(c) above, this
Agreement shall forthwith become of no further effect and there shall be no
liability or obligation on the part of any party or their respective officers or
directors. In the event of the termination of this Agreement pursuant to Section
9.1(d) above, Sellers shall pay HealthStar, as liquidated damages, the sum of
two hundred fifty thousand dollars ($250,000). In the event of the termination
of this Agreement pursuant to

                                      29
<PAGE>

Section 9.1(e) and Section 9.1(f) above, HealthStar shall pay Sellers, as
liquidated damages, the sum of two hundred fifty thousand dollars ($250,000).
The liquidated damages shall be paid by HealthStar or Sellers, as applicable,
within ten (10) days of the termination of this Agreement. If HealthStar or
Sellers, as applicable, fail to pay any amount pursuant to this Section 9.2
when due, HealthStar or Sellers, as applicable, shall pay interest thereon,
from the date due until the date paid in full, at the prime rate as announced
from time to time in the Wall Street Journal and shall reimburse the other
party for all reasonable attorneys' fees and other costs and expenses
incurred in collecting the amount due. Each party agrees that it would be
impracticable or extremely difficult to fix the actual damages resulting from
a termination of this Agreement pursuant to Sections 9.1(d), 9.1(e) or
9.1(f). The parties believe that the payment pursuant to this Section 9.2
represents a reasonable endeavor by the parties to estimate a fair
compensation for the foreseeable losses that might result from such a
termination and, consequently, that such payment represents liquidated
damages and not a penalty. The sole remedy with respect to a termination of
this Agreement pursuant to Sections 9.1(d), 9.1(e) or Section 9.1(f) shall be
liquidated damages provided for in this Section 9.2.

                                    ARTICLE X
                                  MISCELLANEOUS

         SECTION 10.1 KNOWLEDGE. The term "Knowledge" as used in this Agreement
with respect to the Sellers shall mean the actual knowledge of any of the Listed
Individuals (set forth on Schedule 2.29) after Reasonable Inquiry. "Reasonable
Inquiry" with respect to any such Listed Individuals shall mean such inquiry and
investigation as are reasonable and customary under the circumstances, which
circumstances shall include the proposed sale of all of M2's stock, based upon
the nature and scope of such individual's specific position and responsibilities
with M2.

         SECTION 10.2 GOVERNING LAW AND CONSENT TO JURISDICTION. The laws of the
State of Florida (irrespective of its choice of law principles) shall govern all
issues concerning the validity of this Agreement, the construction of its terms
and the interpretation and enforcement of the right and duties of the parties.
Each party irrevocably submits to the exclusive jurisdiction of the courts of
the State of Florida and the Federal courts of the United States of America
located in Florida (and the Florida state and Federal courts having jurisdiction
over appeals therefrom) in respect of the transaction contemplated by this
Agreement, the other agreements and documents referred to herein and the
Transaction contemplated by this Agreement and such other documents and
agreements.

         SECTION 10.3 AMENDMENT AND MODIFICATION. Subject to applicable law,
this Agreement may be amended, modified and supplemented in any and all respects
only by written agreement duly executed and delivered by all of the parties.

         SECTION 10.4 NOTICES. All notices, consents and other communications
hereunder shall be in writing and shall be deemed to have been duly given (a)
when delivered by hand or by Federal Express or a similar overnight courier; (b)
five (5) days after being deposited in any United States Post Office enclosed in
a postage prepaid, registered or certified envelope addressed; or (c) when
successfully transmitted by telecopier (with a confirming copy of such
communication to be

                                      30
<PAGE>

sent as provided in clauses (a) or (b) above), to the receiving party at the
address or telecopier number set forth below (or at such other address or
telecopier number for a party as shall be specified by like notice); provided
however, that any notice of change of address or telecopier number shall be
effective only upon receipt:

         (a)      if to HealthStar, to:

                  HealthStar Corp.
                  2875 N.E. 191st Street
                  Turnberry Plaza
                  Suite 601
                  Aventura, FL 33180
                  Telephone:  (305) 933-8779
                  Telecopier: (305) 933-8755
                  Attn: Edward M. Chism, President

                  with a copy (which shall not constitute notice) to:

                  Ruben & Aronson, LLP
                  3299 K Street, N.W.
                  Suite 403
                  Washington, D.C. 20007
                  Telephone:  (202) 965-3600
                  Telecopier: (202) 965-3700
                  Attn: Louis M. Aronson, Esq.

         (b)      if to Salesmation, to:

                  Salesmation.com, Inc.
                  3 Corporate Plaza, Suite 250
                  Newport Beach, CA 92660
                  Telephone:  (949) 219-0169
                  Telecopier: (949) 219-0173
                  Attn: Brendon Kensel, President and Chief Executive Officer

         (c)      if to M2 and the Key Individuals, to:

                  M2 Limited, Inc.
                  9210 Wightman Road
                  Montgomery Village, MD 20886-1278
                  Telephone:  (301) 977-4281
                  Telecopier: (301) 926-5046
                  Attn: Michael R. Pellet, President and Chief Executive Officer

                                      31
<PAGE>

         SECTION 10.5 [Reserved].

         SECTION 10.6 COUNTERPARTS. This Agreement may be executed in multiple
counterparts, all of which shall together be considered out and the same
agreement.

         SECTION 10.7 INCORPORATION BY REFERENCE. The Preamble and Recitals to
this Agreement and the Exhibits and Schedules identified in this Agreement are
incorporated herein by reference and made a part hereof.

         SECTION 10.8 ENTIRE AGREEMENT; THIRD PARTY BENEFICIARIES. This
Agreement (including the documents incorporated herein by reference in Section
10.7 hereof and other documents and instruments referred to herein) (a)
constitutes the entire agreement and supersedes any prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof and (b) except as expressly provided herein, are not
intended to confer upon any Person other than the parties herein any rights or
remedies hereunder.

         SECTION 10.9 SEVERABILITY. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction or
other authority to be invalid, void, unenforceable or against its regulatory
policy, the remainder of the terms, provisions, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected, impaired or invalidated.

         SECTION 10.10 SERVICE OF PROCESS. Each party irrevocably consents to
the service of process outside the territorial jurisdiction of the courts
referred to in Section 10.2 hereof in any such action or proceeding by mailing
copies thereof by registered United States mail, postage prepaid, return receipt
requested, to its address as specified in or pursuant to Section 10.4 hereof.
However, the foregoing shall not limit the right of a party to effect service of
process on the other party by any other legally available method.

         SECTION 10.11 SPECIFIC PERFORMANCE. Each party acknowledges and agrees
that in the event of any breach of this Agreement each nonbreaching party would
be irreparably and immediately harmed and could not be made whole by monetary
damages. It is accordingly agreed that the parties will (a) waive, in any action
for specific performance, the defense of adequacy of a remedy at law and (b) be
entitled, in addition to any other remedy to which they may be entitled at law
or in equity, to compel specific performance of this Agreement in any action
instituted in accordance with Section 10.2.

         SECTION 10.12 ASSIGNMENT. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by either party (whether by
operation of law or otherwise) without the prior written consent of the other
party. Subject to the preceding sentence, this Agreement will be binding upon,
inure to the benefit of, and be enforceable by the parties and their respective
permitted successors and assigns.

         SECTION 10.13 EXPENSES. Except as otherwise provided herein, all costs
and expenses incurred in connection with the transactions contemplated hereby,
this Agreement and the

                                      32
<PAGE>

consummation of the Transaction contemplated hereby shall be paid by the
party incurring such costs and expenses, whether or not the Transaction
contemplated hereby is consummated.

         SECTION 10.14 WAIVERS. Except as otherwise provided in this Agreement,
any failure of either party to comply with any obligation, covenant, agreement
or condition herein may be waived by the party or parties entitled to the
benefits thereof only by a written instrument signed by the party granting such
waiver, but such waiver or failure to insist upon strict compliance with such
obligation, covenant, agreement or condition shall not operate as a waiver of,
or estoppel with respect to, any subsequent or other failure.

         SECTION 10.15 ATTORNEY FEES. In the event of a dispute with respect to
the subject matter of this Agreement, the prevailing party in any proceeding,
including arbitration commenced to resolve such disputes, shall be entitled to
an award of its reasonable attorney fees and court or arbitration costs incurred
in resolving or settling the dispute, in addition to any and all other damages
or relief which the court or arbitrator may deem proper.

                                      33
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement, or have caused this Agreement to be duly executed with legal and
binding effect by their respective authorized officers, in their individual
capacity, as of the date first written above.

                                       HEALTHSTAR CORP.,
                                       a Delaware corporation

                                       By: /s/ Edward M. Chism
                                          -------------------------------------
                                          Name:   Edward M. Chism
                                          Title:  President

                                       SALESMATION.COM, INC.,
                                       a Delaware corporation

                                       By: /s/ Brendon Kensel
                                          -------------------------------------
                                          Name:   Brendon Kensel
                                          Title:  President

                                       M2 LIMITED, INC.,
                                       a Maryland corporation

                                       By: /s/ Brendon Kensel
                                          -------------------------------------
                                          Name:   Brendon Kensel
                                          Title:  President
                                                  Salesmation.com, Inc.
                                                  Sole Shareholder of
                                                  M2 Limited, Inc.

                                      34
<PAGE>

                                       KEY INDIVIDUALS OF M2 LIMITED, INC.

                                       By: /s/ Michael R. Pellet
                                          -------------------------------------
                                          Name:   Michael R. Pellet
                                          Title:  President and Chief Executive
                                                  Officer of M2 Limited, Inc.

                                       By: /s/ Mercedes M. Pellet
                                          -------------------------------------
                                          Name:   Mercedes M. Pellet
                                          Title:  Chief Financial Officer of
                                                  M2 Limtied, Inc.

                                       By: /s/ Andre-Paul Pellet
                                          -------------------------------------
                                          Name:   Andre-Paul Pellet
                                          Title:  Senior Vice President of
                                                  M2 Limited, Inc.

                                       35

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