Document:

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Exhibit 10.27.6

                                 DEED OF LEASE

                                 BY AND BETWEEN

                                SMII FAIRFAX, LLC
                                  ("LANDLORD")

                                      AND

                                 EUROTECH, LTD.
                                   ("TENANT")

                                 WILLOW WOOD II
                                10306 EATON PLACE
                                FAIRFAX, VIRGINIA

                                             HOLLAND & KNIGHT LLP
                                             2100 Pennsylvania Avenue, N.W.
                                             Suite 400
                                             Washington, D.C. 20037
                                             (202) 955-3000
                                             (202) 955-5564 (FAX)

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                                TABLE OF CONTENTS
                                                                            PAGE
                                                                            ----
 1.  BASIC LEASE TERMS........................................................1

 2.  PREMISES.................................................................1

 3.  TERM AND COMMENCEMENT OF TERM............................................2

 4.  RENT.....................................................................2

 5.  SECURITY DEPOSIT.........................................................5

 6.  USE......................................................................7

 7.  ASSIGNMENT AND SUBLETTING................................................8

 8.  IMPROVEMENTS AND FIXTURES...............................................10

 9.  UTILITIES AND SERVICES..................................................10

10.  RIGHTS OF LANDLORD......................................................12

11.  LIABILITY...............................................................13

12.  INSURANCE...............................................................13

13.  FIRE OR CASUALTY........................................................14

14.  EMINENT DOMAIN ..........................................................14

15.  SUBORDINATION AND ESTOPPEL CERTIFICATES.................................15

16.  DEFAULT AND REMEDIES....................................................15

17.  BANKRUPTCY..............................................................17

18.  PAYMENT OF TENANTS OBLIGATIONS BY LANDLORD AND UNPAID RENT..............18

19.  VOLUNTARY SURRENDER.....................................................18

20.  ABANDONMENT OF PERSONAL PROPERTY........................................18

21.  HOLD-OVER...............................................................19

22.  INTENTIONALLY OMITTED...................................................19

23.  PARKING.................................................................19

24.  NOTICES.................................................................19

25.  BROKERS.................................................................19

26.  ENVIRONMENTAL CONCERNS..................................................19

27.  LANDLORD'S LIEN.........................................................20

28.  RULES AND REGULATIONS...................................................20

29.  QUIET ENJOYMENT.........................................................20

30.  MISCELLANEOUS PROVISIONS................................................20

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                                LIST OF EXHIBITS

                    EXHIBIT A:   Floor Plan of Premises

                    EXHIBIT B:   Work Agreement

                    EXHIBIT C:   Declaration of Commencement Date

                    EXHIBIT D:   Rules and Regulations

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                                  DEED OF LEASE

         THIS DEED OF LEASE (this "Lease") is made AS of the 30th day of August,
2000 (the "Effective Date"), by and between SMII FAIRFAX, LLC, a Delaware
limited liability company ("Landlord") and EUROTECH, LTD., A District of
Columbia corporation ("Tenant"), who agree as follows:

1.       BASIC LEASE TERMS. The following terms shall have the following
         meanings in this Lease:

         a.       PREMISES:         Approximately 7,861 rentable square feet of
                                    space and located on the Second (2nd) floor
                                    of the Building (described in Section 1.b.,
                                    below), all as outlined on the floor plan
                                    attached hereto as Exhibit A.

         b.       BUILDING:         10306 Eaton Place, Fairfax, Virginia (the
                                    "Building"), containing approximately
                                    120,426 rentable square feet of space.

         c.       COMMENCEMENT DATE: September 1, 2000

                  TERM:             Five (5) years

         d.       INITIAL ANNUAL
                  BASE RENT*:       $28.50 per rentable square foot
                                    $224,038.50 per annum *
                                    $ 18,669.88 per month
             ['subject to escalation as provided for in this Lease]

        **        BASE YEAR:        Calendar Year 2001

        f.     TENANT'S PRO RATA SHARE       6.53 %*
               OF OPERATING EXPENSES:

               TENANT'S PRO RATA SHARE       6.53 %*
               OF REAL ESTATE TAXES:
              [*subject to adjustments provided for in this Lease]

        g.     ADDRESS FOR NOTICES:

               TO LANDLORD:         SMII Fairfax, LLC
                                    c/o Koll Bren
                                    Schreiber Realty Advisors, Inc.
                                    125 Summer Street
                                    Suite 1640 Boston, MA 02110-1616

               WITH A COPY TO:      Holland & Knight UP
                                    2100 Pennsylvania Avenue, N.W., Suite 400
                                    Washington, D.C. 20037
                                    Attention: David S. Kahn, Esquire

               TO TENANT:           (before occupancy) 1216 16th Street, N.W.
                                                       Suite 200
                                                       Washington. D.C. 20036

                                    (after occupancy)  At the Premises

        h.     SECURITY DEPOSIT:    $224,038.50

2.       PREMISES.

         a. PREMISES. In consideration of Tenant's agreement to pay Annual Base
Rent (hereinafter defined) and Additional Rent (hereinafter defined) and subject
to the covenants and conditions hereinafter set forth, Landlord hereby leases to
Tenant and Tenant hereby hires and leases from Landlord, upon the terms and
conditions set forth herein, those certain premises described in Section 1a.
hereof and located in the Building (the "Premises"). The Premises are located in
the Building described in Section 1.b. hereof. The Lease of the Premises to
Tenant includes the right, together with other tenants of the Building
(hereinafter defined) and members of the public, to use the common public areas
of the Project (hereafter defined), but includes no other rights not
specifically set forth. The parties hereto acknowledge that the Building
constitutes one of two (2) office buildings owned by Landlord in the office
project known

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as "Willow Wood Plaza,' the other building having a street addresses of 10300
Eaton Place, Fairfax, Virginia (collectively, along with the Building, the
"Buildings"). For all purposes hereunder, the Buildings, the land on which the
Buildings are located (the "Project Land") and all common areas, roadways and
public areas therein or thereon are collectively referred to herein as the
"Project." As used herein, the term "Land" shall mean the land on which the
Building is located. The rentable square footage of the Premises has been
determined in accordance with the Greater Washington Commercial Association of
Realtors Standard Method of Measurement (June 13, 1995).

         b. IMPROVEMENTS.

                  (i) Landlord shall deliver the Premises to Tenant in their
"as-is" condition, and Landlord shall not be required to perform or install any
alterations, decorations or improvements to the Premises. Tenant shall construct
in the Premises, at Tenant's sole cost and expense, subject, however, to
application of the Improvement Allowance (hereinafter defined), the Tenant
Improvements (hereinafter defined), all in accordance with the terms of the Work
Agreement attached hereto as EXHIBIT B (the "Work Agreement"). In the event that
Landlord and Tenant have not finally agreed upon the scope and details of the
Tenant Improvements as of the Effective Date, Tenant's submission to Landlord of
plans and specifications detailing such work shall be subject to Landlord's
written approval in accordance with the Work Agreement. The Tenant Improvements
shall be subject to Landlord's prior written approval, and Tenant shall insure
that all of the Tenant Improvements comply with all applicable building codes,
laws and regulations (including without limitation the Americans With
Disabilities Act, as amended), do not include any changes to or modifications of
any of the mechanical, electrical, plumbing or other systems of the Building,
and are otherwise constructed strict accordance with the terms of the Work
Agreement.

                  (ii) The cost of all design, architectural and engineering
work, demolition costs, construction costs, construction supervision,
contractors' overhead and profit, licenses and permits, and all other costs and
expenses incurred in connection with the Tenant Improvements shall be at
Tenant's sole cost and expense, subject to the application of the Improvement
Allowance. Landlord shall pay the Improvement Allowance as provided in the Work
Agreement. All costs incurred in respect of the Tenant Improvements in excess of
the Improvement Allowance shall be paid by Tenant.

         c. Acceptance. The taking of possession of the Premises by Tenant on
the Commencement Date shall constitute an acknowledgment by Tenant that the
Premises are in good condition and that Landlord has no obligations with respect
to the construction of any improvements in or to the Premises.

3.       TERM AND COMMENCEMENT OF TERM.

         a. Term. This Lease shall be in full force and effect from the
Effective Date. The term of this Lease (the "Term") shall commence on the
Commencement Date (hereinafter defined) and shall expire on the last day of the
fifth (5th) Lease Year (hereinafter defined) (the "Lease Expiration Date"),
unless such Term is otherwise extended or terminated in accordance with the
terms hereof. As used herein, the "Commencement Date" shall be the date shown in
Section I.e. hereof. As used herein, the term "Lease Year" means (a) each twelve
(12)-month period commencing on the Commencement Date, except that if the
Commencement Date does not occur on the first day of a calendar month, the first
Lease Year shall commence on the Commencement Date and terminate on the last day
of the twelfth (12th) full calendar month after the Commencement Date, and (b)
each successive period of twelve (12) calendar months thereafter during the
Term. Reference is made to the form of Declaration of Commencement Date (the
"Declaration") attached hereto as EXHIBIT C. After the Commencement Date
Landlord shall complete the Declaration and deliver the completed Declaration to
Tenant. Within five (5) days after Tenant receives the completed Declaration
from Landlord, Tenant shall execute and return the Declaration to Landlord to
confirm the Commencement Date, the Term and the actual number of rentable square
feet in the Premises. Failure to execute the Declaration shall not affect the
commencement or expiration of the Term.

         b. Delays. No delay by Landlord in delivering the Premises to Tenant
shall render Landlord liable to Tenant for such delay or otherwise affect the
enforceability of this Lease.

4. RENT. Beginning on the Commencement Date, Tenant covenants and agrees to pay
as Rent (hereinafter defined) for the Premises the following amounts set forth
in this Section 4 and as otherwise provided in this Lease. "Additional Rent"
shall mean such costs, expenses, charges and other payments to be made by (or on
behalf of) Tenant to Landlord (or to a third party if required under this
Lease), whether or not the same be designated as such. "Rent" or "rent" shall
mean all Annual Base Rent (hereinafter defined) and Additional Rent due
hereunder.

         a. ANNUAL BASE RENT.

                  (i) During each Lease Year, Tenant shall pay the annual base
rent in the amount set forth in Section 1d hereof, subject, however, to annual
adjustments thereto set forth below (the "Annual Base Rent"). Annual Base Rent
shall be payable in equal monthly installments (the "Monthly Base Rent"), in
advance, on the first day of each calendar month during the Term. Effective on
the first day of the second (2nd) Lease Year, and continuing on the first day of
each Lease Year thereafter during the Term, the Annual Base Rent shall be
increased as provided in Section 4.b. hereof.

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                  (ii) In addition to the payment of Annual Base Rent Tenant
shall be responsible for the payment of Tenant's Pass-Through Costs (hereinafter
defined) pursuant to Section 4.c. hereof.

                  (iii) All installments of Monthly Base Rent shall be payable
in advance, with the first monthly installment due and payable upon execution of
this Lease. If the Commencement Date shall be a day other than the first day of
a calendar month, (1) the Annual Base Rent for the first Lease Year shall be an
amount equal to the sum of (x) the amount of Monthly Base Rent for the partial
month in which the Commencement Date occurs, plus (y) the amount of the Annual
Base Rent set forth in Section 1.d., above, and (2) Monthly Base Rent for such
partial month shall be the prorated amount of the Monthly Base Rent payable
hereunder during the first Lease Year, which proration shall be based upon the
actual number of days of such partial month. The prorated Monthly Base Rent for
such partial month shall be payable on the first day of the calendar month after
the month in which the Commencement Date occurs.

         b. Annual Base Rent Adjustment. Commencing on the first day of the
second (2nd) Lease Year, and on the first day of each Lease Year thereafter
during the Term (the "Adjustment Date"), Annual Base Rent shall be increased by
an amount (the "Adjustment Amount") equal to three percent (30%) of the Annual
Base Rent for the immediately-preceding Lease Year. On the Adjustment Date,
Monthly Base Rent shall be increased by an amount equal to one-twelfth (1/12rh)
of such Adjustment Amount. Adjustments to Annual Base Rent pursuant to this
Section 4 b shall be in addition to the Additional Rent sent forth in Section
4.c., below.

         c. TENANT'S PASS-THROUGH COSTS.

                  (i) As used in this Lease:

                           (1) "Operating Expenses" shall mean any and all
expenses, costs and disbursements (but not specific costs billed to and paid by
specific tenants) of every kind and nature incurred by Landlord in connection
with the ownership, management, operation, maintenance, servicing and repair of
the Building and appurtenances thereto, including without limitation the common
areas thereof, and the land underlying the Building (the "Land"), including but
not limited to employees' wages, salaries, welfare and pension benefits and
other fringe benefits; payroll taxes; telephone service; painting of common
areas of the Building; exterminating service, detection and security services;
concierge services; sewer rents and charges; premiums for fire and casualty,
liability, rent, workmen's compensation, sprinkler, water damage and other
insurance; repairs and maintenance; building supplies; uniforms and dry
cleaning; snow removal; the cost of obtaining and providing electricity, water
and other public utilities to all areas of the Building; trash removal;
janitorial and cleaning supplies; and janitorial and cleaning services; window
cleaning, service contracts for the maintenance of elevators, boilers, HVAC and
other mechanical, plumbing and electrical equipment; fees for all licenses and
permits required for the ownership and operation of the Project Land and the
Building; business license fees and taxes, including those based on Landlord's
rental income from the Building; the rental value of the management office
maintained in the Building; all costs of operating, maintaining and replacing
equipment in the health and fitness facility located in the Building; sales, use
and personal property taxes payable in connection with tangible personal
property and services purchased for the management operation, maintenance,
repair, cleaning, safety and administration of the Project Land and the
Building; legal fees; accounting fees relating to the determination of Operating
Expenses and the tenants' share thereof and the preparation of statements
required by tenant's leases; management fees, whether or not paid to any '
person having an interest in or under common ownership with Landlord; purchase
and installation of indoor plants in the common areas; and landscaping
maintenance and the purchase and replacement of landscaping services, plants and
shrubbery. If Landlord makes an expenditure for a capital improvement to the
Project Land (or any portion thereof) and/or the Building by installing energy
conservation or labor-saving devices to reduce Operating Expenses, or to comply
with any law, ordinance or regulation pertaining to the Project Land and/or the
Building, and if, under generally accepted accounting principles, such
expenditure is not a current expense, then the cost thereof shall be amortized
over a period equal to the useful life of such improvement, determined in
accordance with generally accepted accounting principles, and the amortized
costs allocated to each calendar year during the Term, together with an imputed
interest amount calculated on the unamortized portion thereof using an interest
rate of twelve percent (12%) per annum, shall be treated as an Operating
Expense. Operating Expenses shall not include costs and expenses directly
resulting from the gross negligence or willful misconduct of Landlord or its
employees, contractors or agents or any amounts paid to any person, firm or
corporation related to or otherwise affiliated with Landlord or any general
partner, officer, director or shareholder of Landlord or any of the foregoing,
to the extent the same exceeds arm's length, competitive prices paid in the
Fairfax, Virginia area by landlords of first-class office buildings for similar
services or goods.

                           (2) "Real Estate Taxes" shall mean all taxes,
assessments and charges levied upon or with respect to the Project Land (or any
portion thereof), the Building, and any improvements adjacent thereto (computed
as payable in installments as permitted by law regardless of whether so paid),
including without limitation vault rents, if any. franchise taxes, any tax, fee
or excise on rents, on the square footage of the Premises including the Fairfax
County Business License Tax, on the act of entering into this Lease, on the
occupancy of Tenant, on account of the rent hereunder or the business of renting
space now or hereafter levied or assessed against Landlord by the United States
of America or the state, county, city or town in which the Building are located,
or any political subdivision, public corporation, district or other political or
public entity; and shall also include any other tax to the extent that such tax
is imposed in lieu of or in addition to such Real Estate Taxes. Reasonable legal
fees, costs and disbursements incurred by Landlord in connection with any
proceedings for appeal or reduction of any Real Estate Taxes shall also be
considered Real Estate Taxes for the year in question.

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                           (3) "Tenant's Pro Rata Share of Operating Expenses,"
as of the date hereof, shall be as provided in Section 1.f.. representing the
ratio that the rentable area of the Premises bears to the total rentable area of
office space in the Building If either the rentable area of the Premises or the
total rentable area of the Building shall be increased or decreased, as
reasonably determined by Landlord, Tenant's Pro Rata Share of Operating Expenses
shall be adjusted accordingly

                           (4) "Tenant's Pro Rata Share of Real Estate Taxes,"
as of the date hereof, shall be as provided in Section 1.f.. representing the
ratio that the area of the Premises bears to the total rentable area of the
Building. If either the rentable area of the Premises or the total rentable area
of the Building shall be increased or decreased, as reasonably determined by
Landlord, Tenant's Pro Rata Share of Real Estate Taxes shall be adjusted
accordingly

                           (5) "Base Year" means calendar year 2001.

                  (ii) If, in any calendar year during the Term, the total
amount of Operating Expenses for the Building exceeds the amount of Operating
Expenses in the Base Year, then Tenant shall pay to Landlord, as Additional
Rent, an amount which is the product of (1) the amount of such increase in
Operating Expenses, multiplied by (2) Tenant's Pro Rata Share of Operating
Expenses, Tenant's Pro Rata Share of Operating Expenses for any partial calendar
year during the Term shall be determined by multiplying the amount of Tenant's
Pro Rata Share of Operating Expenses for the full calendar year by a fraction,
the numerator of which is the number of days during such calendar year falling
within the Term and the denominator of which is three hundred sixty five (365)
If in any calendar year during the Term, the amount of Real Estate Taxes exceeds
the amount of Real Estate Taxes for the Base Year, then Tenant shall pay. as
Additional Rent, an amount which is the product of (x) the amount of such
increase in Real Estate Taxes, multiplied by (y) Tenant's Pro Rata Share of Real
Estate Taxes Tenant's Pro Rata Share of Real Estate Taxes for any partial
calendar year during the Term shall be determined by multiplying the amount of
Tenant's Pro Rata Share of Real Estate Taxes for the full calendar year by a
fraction, the numerator of which is the number of days during such calendar year
falling within the Term and the denominator of which is three hundred sixty five
(365)

                  (iii) If at any time during the Base Year, or during any
subsequent calendar year ("Subsequent Year"), less than ninety-five percent
(95%) of the total rentable square feet of office space IN THE Building is
occupied by tenants, the amount of Operating Expenses for the Base Year, or for
any such Subsequent Year, as the case may be, shall be deemed to be the amount
of Operating Expenses as reasonably estimated by Landlord that would have been
incurred if the percentage of occupancy of the Building during the Base Year or
any such Subsequent Year was ninety-five percent (95%), If at any time during
any calendar year, any part of the Building is leased to a tenant (hereinafter
referred to as a "Special Tenant") who, in accordance with the terms of its
lease, provides its own utilities, cleaning OR janitorial services or other
services or is not otherwise required to pay a share of Operating Expenses IN
accordance with the methodology set forth in this Section 4 c., and Landlord
does not incur the COST OF such services, Operating Expenses for such calendar
year shall be increased by the additional costs for cleaning and janitorial
services and such other applicable expenses as reasonably estimated by Landlord
that would have been incurred by Landlord if Landlord had furnished and paid for
cleaning and janitorial services and such other services for the space occupied
by the Special Tenant, or if Landlord had included such costs in "operating
expenses" as defined in the Special Tenant's lease,

                  (iv) During the month of December. 2001. and thereafter during
the month of December of each Lease Year, Landlord shall use reasonable efforts
to furnish to Tenant a statement of Landlord's estimate of Tenant's Pass-Through
Costs for the next calendar year. "Tenant's Pass-Through Costs" shall be an
amount equal to the sum of (1) Tenant's Pro Rata Share of Operating Expenses
multiplied by the difference between Operating Expenses incurred during any
calendar year during the Term, and Operating Expenses incurred in the Base Year,
plus (2) Tenant's Pro Rata Share of Real Estate Taxes multiplied by the
difference between Real Estate Taxes for any calendar year during the Term and
Real Estate Taxes incurred during the Base Year. Such statement shall show the
amount of Tenant's Pass-Through Costs, if any, payable by Tenant for such
calendar year pursuant to this Section 4c on the basis of Landlord's estimate.
Commencing on January 1, 2002, and continuing on each monthly rent payment date
thereafter until further adjustment pursuant to this Section 4.c. (iv), Tenant
shall pay to Landlord one-twelfth (1/12) of the amount of said estimated
Tenant's Pass-Through Costs. Within one hundred twenty (120) days after the
expiration of each calendar year during the Term, Landlord shall furnish to
Tenant a statement (the "Expense Statement") showing the actual Operating
Expenses and Real Estate Taxes for such calendar year. The Expense Statement
shall be conclusive and binding on Tenant, unless objected to in writing by
Tenant within six (6) months following Tenant's receipt thereof. In case of an
underpayment, Tenant shall, within thirty (30) days after the receipt of such
statement, pay to Landlord an amount equal to such underpayment. In case of an
overpayment. Landlord shall credit the next monthly rental payment by Tenant
with an amount equal to such overpayment. Additionally, if this Lease shall have
expired, Landlord shall apply such excess against any sums due from Tenant to
Landlord and shall refund any remainder to Tenant within one hundred and twenty
(120) days after the expiration of the Term, or as soon thereafter as possible,

                  (v) All monies received from Tenant as Tenant's Pass-Through
Costs shall be received by Landlord to pay Operating Expenses and Real Estate
Taxes of the Building and the Land. Notwithstanding the foregoing, Landlord
shall have the right to commingle Tenant's Pass-Through Costs with other funds
collected by Landlord.

                  (vi) Tenant's obligation to pay Tenant's Pass-Through Costs
pursuant to the provisions of this Section 4 C shall survive the expiration or
other termination of this Lease with respect to

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any period during the Term hereof and with respect to any holdover period of
occupancy following the expiration of the Term.

                  (vii) Notwithstanding anything contained in this Section 4.b
to the contrary, Landlord reserves the right, at any time in the future, to
calculate some or all of the Operating Expenses on the basis of the aggregate
expenses incurred in connection with the operation of the Building together with
the other buildings constituting a part of Willow Wood Plaza, in which event
Tenant's Pro Rata Share shall be adjusted accordingly.

         d. Payment of Rent All Rent shall be paid in lawful money of the United
States of America without deduction, diminution, set-off, counterclaim or prior
notice or demand, at the office of Landlord as provided in Section 1g hereof or
at such other place as Landlord may hereafter designate in writing, on the first
day of every calendar month during the Term. AH such payments shall be made by
good checks payable to Landlord or such other person, firm or corporation as
Landlord may hereafter designate in writing. No payment by Tenant or receipt and
acceptance by Landlord of a lesser amount than the Monthly Base Rent or
Additional Rent shall be deemed to be other than partial payment of the full
amount then due and payable; nor shall any endorsement or statement on any check
or any letter accompanying any check, payment of Rent or other payment, be
deemed an accord and satisfaction; and the Landlord may accept, but is not
obligated to accept, such partial payment without prejudice to the Landlord's
right to recover the balance due and payable or to pursue any other remedy
provided in this Lease or by law. If Landlord shall at any time or times accept
Rent after it becomes due and payable, such acceptance shall not excuse a
subsequent delay or constitute a waiver of Landlord's rights hereunder. Any Rent
owed by Tenant to Landlord, including without limitation Annual Base Rent,
Additional Rent, Tenant's Pass-Through Costs and Late Charges, which is not paid
within five (5) days after the date such payment is due shall bear interest from
the due date at a rate equal to the prime rate on corporate loans quoted in the
WALL STREET JOURNAL (the "Prime Rate") plus four percent (4%). In addition, if
any amount of Rent required to be paid by Tenant to Landlord under the terms of
this Lease is not paid within five (5) days after the date such payment is due,
then in addition to paying the amount of Rent then due, Tenant shall pay to
Landlord a late charge (the "Late Charge") equal to five percent (5%) of the
amount of Rent then required to be paid, provided, however on the first occasion
of the late payment of Rent in any twelve (12) month period, and no more than
once in any twelve (12) month period, Landlord agrees to waive its right to
collect such Late Charge on such payment of Rent if such payment is made no
later than the fifth (5*) day after Landlord delivers to Tenant written notice
of such late payment of Rent. Payment of such Late Charge will not excuse the
untimely payment of Rent. In the event Tenant makes any payment of Rent by check
and said check is returned by the bank unpaid, Tenant shall pay to Landlord the
sum of One Hundred Dollars ($100.00) to cover the costs and expenses of
processing the returned check, in addition to the Rent payment and any other
charges provided for herein. Any interest, Late Charge and other amounts charged
hereunder shall constitute Additional Rent.

         e. Separate Metering and Rent Reduction. Landlord may elect to
discontinue the distribution or furnishing of electricity and/or water to the
Premises if such services may feasibly be 'furnished directly to Tenant by the
utility company supplying same. In the event of any such election by Landlord:
(i) Landlord agrees to give reasonable advance notice of such discontinuance to
Tenant; (ii) Landlord agrees to permit Tenant to receive electricity and/or
water directly from the utilities supplying such service to the Building and to
permit the existing feeders, risers, wiring, pipes and other facilities serving
the Premises to be used by Tenant for such purpose to the extent they are
suitable and safely capable of carrying Tenant's requirements; (iii) Landlord
agrees to pay such charges and costs, if any, as such public utility may impose
in connection with the installation of Tenant's meters; and (iv) the amount of
Additional Rent payable in respect to the Operating Expenses shall be decreased
appropriately to reflect such discontinuance. This Lease shall remain in full
force and effect and such discontinuance shall not constitute an actual or
constructive eviction, in whole or in part, or relieve Tenant from any of its
obligations under this Lease.

5.       SECURITY DEPOSIT.

         a. On or before the date which is ten (10) days after the Effective
Date (the "Security Deposit Delivery Date"), time being of the essence, Tenant
shall deliver to Landlord a security deposit in the amount set forth in Section
1h hereof (the "Security Deposit") to be held by Landlord during the Term as
collateral security (and not prepaid rent), for the payment of Annual Base Rent
and Additional Rent and for the faithful performance by Tenant of all other
covenants, conditions and agreements of this Lease. Failure by Tenant to deliver
the Security Deposit to Landlord on or before the Security Deposit Delivery Date
shall constitute an Event of Default (hereinafter defined) under this Lease.
Landlord shall not be obligated to hold the Security Deposit in a separate
account. Any portion of the Security Deposit tendered by Tenant in cash shall be
referred to as the "Cash Security Deposit." The Cash Security Deposit shall not
earn interesL If any sum payable by Tenant to Landlord shall be overdue and
unpaid, or if Landlord makes any payment(s) on behalf of Tenant, or if, after
all applicable notice and cure periods (except in the event of an emergency), if
any. under the Lease, Tenant fails to perform any of the terms of this Lease,
then Landlord, at its option and without prejudice to any other remedy which
Landlord may have, may apply all or part of the Security Deposit to compensate
Landlord for the payment of Annual Base Rent or. Additional Rent, or any loss or
damage sustained by Landlord. Tenant shall restore the Security Deposit to the
original sum deposited after written notice from Landlord specifying the portion
of the Security Deposit applied by Landlord. Subject to the provisions of
Section 5.e, below, and provided that Tenant shall have made all payments and
performed all covenants and agreements of this Lease, Landlord shall return the
Security Deposit to Tenant (except to the extent of any portion of the Security
Deposit which has been applied by Landlord and not restored by Tenant) within
forty-five (45)

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days after the expiration of this Lease or the vacation of the Premises by
Tenant, whichever is later, or as soon thereafter as possible.

         b. In lieu of the Cash Security Deposit under Section 5a above, Tenant
may deliver to Landlord, on or before the Security Deposit Delivery Date, an
unconditional and irrevocable letter of credit reasonably acceptable to Landlord
issued by the Bank (hereinafter defined) in the face amount of Two Hundred
Twenty-Four Thousand Thirty-Eight and 50/100 Dollars ($224,038.50) (the "Letter
of Credit"), as a security deposit to be held by Landlord until applied or
disposed of in accordance with the provisions of this Section 5. As used herein,
the term "Security Deposit" shall mean, collectively, the Cash Security Deposit
and the Letter of Credit. As used herein, the term "Bank" shall mean
federally-insured banking institution reasonably acceptable to Landlord, having
offices in the Washington, D.C. metropolitan area, and having total assets of at
least Three Billion Dollars ($3,000,000,000) and a Standard & Poor's commercial
paper rating of at least A-1. If the Letter of Credit (or any replacement
thereof) is issued for an effective period of time less than the remaining Term
of this Lease (or any renewal thereof), Tenant shall from time to time, and not
later than sixty (60) days prior to the expiration of the Letter of Credit,
replace each such expiring Letter of Credit with a new Letter of Credit in the
same amount and upon the same terms. The Letter of Credit (and any replacement
thereof) may be drawn upon by Landlord under the terms and conditions as
provided in this Section 5. Failure of Tenant to renew the Letter of Credit at
least sixty (60) days prior to its expiration shall constitute an Event of
Default under this Lease and shall entitle Landlord, in addition to the other
remedies contained in this Lease, to draw upon the Letter of Credit.

         c. Landlord (or the beneficiary under the Letter of Credit, if such
beneficiary is not Landlord) shall have the right to draw upon the Letter of
Credit in any of the following circumstances (in addition to any other right to
draw on the Letter of Credit that is set forth in this Section 5): (i) if the
total assets of the Bank are at anytime less than Three Billion Dollars
($3,000,000,000), or the Bank has a Standard & Poor's commercial paper rating of
less than A-1 (provided if at anytime the current Standard & Poor's commercial
paper rating system is no longer in existence, a comparable rating of a
comparable commercial paper rating system from a comparable company shall be
selected by Landlord, in its reasonable discretion, for purposes of this Section
5) and Tenant fails to deliver to Landlord a replacement Letter of Credit
complying with the terms of this Lease within thirty (30) days of request
therefor from Landlord, (ii) if the credit rating of the Bank is downgraded from
the credit rating of such issuer at the time of the issuance of the Letter of
Credit, the Bank shall enter into any supervisory agreement with any
governmental authority, or the Bank shall fail to meet any capital requirements
imposed by applicable law, and Tenant fails to deliver to Landlord (or the
beneficiary under the Letter of Credit, if such beneficiary is not Landlord) a
replacement Letter of Credit complying with the terms of this Lease within
thirty (30) days of request from Landlord, (iii) if Tenant fails to provide
Landlord with any renewal or replacement Letter of Credit complying with the
terms of this Lease at least sixty (60) days prior to expiration of the
then-current Letter of Credit where the Bank has advised Landlord of its
intention not to renew the Letter of Credit, (iv) if Tenant fails to provide
Landlord with any renewal or replacement Letter of Credit complying with the
terms of this Lease at least sixty (60) days prior to the final expiration date
(I.E., the date that, by the terms of the Letter of Credit, the Letter of Credit
expires and is either not subject to any automatic renewal or extension or the
conditions to such automatic renewal or extension have not then been satisfied)
of the then-current Letter of Credit if such Letter of Credit expires prior to
the date that is thirty (30) days after the end of the Term, or (v) any
voluntary in involuntary proceedings are filed by or against Tenant or any
Guarantor of this Lease under any bankruptcy, insolvency or similar laws. In the
event the Letter of Credit is drawn upon due solely to the circumstances
described in the foregoing clauses (i), (ii), (iii), (iv) or (v), the amount
drawn shall be held by Landlord as an additional Cash Security Deposit in
accordance with the terms of this Section 5, and shall be otherwise retained,
expended or disbursed by Landlord for any amounts or sums due under this Lease
to which the proceeds of the Letter of Credit could have been applied pursuant
to this Lease, and Tenant shall be liable to Landlord for restoration, in cash
or Letter of Credit complying with the terms of this Lease, of any amount so
expended to the same extent as set forth in this Section 5.

         d. In the event of the sale or transfer of Landlord's interest in the
Building, Landlord shall have the right to transfer the Cash Security Deposit
and/or the Letter of Credit to the purchaser or assignee, and upon notification
to Tenant of such transfer Tenant shall look only to the new landlord for the
return of the Cash Security Deposit, and Landlord shall thereupon be released
from all liability to Tenant for the return of the Cash Security Deposit or
Letter of Credit. Tenant hereby agrees not to look to the mortgagee, as
mortgagee, mortgagee in possession, or successor in title to the property, for
accountability for any Security Deposit required by the Landlord hereunder,
unless said sums have actually been received by said mortgagee AS security for
Tenant's performance of this Lease. In the event of any permitted assignment of
Tenant's interest in this Lease, the Cash Security Deposit and the Letter of
Credit may, at Landlord's sole option, be held by Landlord as a deposit made by
the assignee, and Landlord shall have no further liability to Tenant with
respect to the return of the Cash Security Deposit or the Letter of Credit.

         e. Notwithstanding anything to the contrary set forth herein, provided
that (i) no default then exists under the Lease, and (ii) Tenant is then
occupying 100% of the Premises, on the first day of the second (2nd), third
(3rd) and fourth (4th) Lease Years during the Term, the Security Deposit shall
be reduced by Thirty-Seven Thousand Three Hundred Thirty-Nine and 76/100ths
Dollars ($37,339.76). The aforesaid reductions shall be effectuated by, at
Landlord's option, a reduction of the Cash Security Deposit (with the reduction
being refunded to Tenant or applied to Tenant's next due obligations for Rent),
and/or the replacement of the Letter of Credit for the appropriate reduced
amount issued to Landlord in accordance with the terms of this Lease. If the
Security Deposit is in the form of a Letter of Credit, no reduction in the
Letter of Credit shall be effected unless and until Landlord confirms in

                                       6
<PAGE>

writing that the conditions set forth in subsections 5.e(i)-{iii) have been met.
The balance of the Cash Security Deposit or the Letter of Credit, as applicable,
which has not been reduced as aforesaid shall t>e retained by Landlord
throughout the Term.

         f. Tenant will deliver to Landlord, no later than May 15th of each
calendar year. Tenant's annual report for the immediately-preceding calendar
year on Form 10K filed with the Securities and Exchange Commission, (which Form
10K shall be sworn to as complete and correct by Tenant's chief financial
officer in a certificate addressed to Landlord and appended to the Form 10K).
Tenant will prepare unaudited financial statements on a quarterly basis
(consisting of a Balance Sheet, Income Statement and Cash Flow Statement, and
related footnotes, prepared in accordance with generally accepted accounting
principles). Tenant shall, from time-to-time, upon fifteen (15) days notice from
Landlord, provide Landlord with a copy of Tenant's most recent quarterly and/or
annual financial statements, as requested by Landlord.. Quarterly statements
must be certified by a certified public accountant or sworn to as to their
accuracy by Tenant's President or Chief Financial Officer. The financial
statements provided must be as of a date not more than fifteen (15) months prior
to the date of request Landlord shall retain such statements in confidence, but
may provide copies to lenders and potential lenders as required.

6.       USE.

         a. Tenant covenants with the Landlord not to use the Premises for any
purpose other than general office use for the conduct of the Tenant's business.
Tenant shall not use the Premises or allow the Premises to be used for any other
purpose without the prior written consent of the Landlord. Tenant, at Tenant's
expense, shall comply with all laws, codes, rules, orders, ordinances,
directions, regulation, and requirements of federal, state, county, and
municipal authorities, now in force or which may hereafter be in force, which
shall impose any duty upon Landlord or Tenant with respect to the condition,
maintenance, use, occupation, operation or alteration of the Premises, or the
conduct of Tenant's business therein, including without limitation the Americans
With Disabilities Act, as amended and all applicable zoning, recycling and
environmental laws and regulations. Tenant hereby agrees to indemnify and hold
harmless Landlord and its agents, officers, directors and employees from and
against any cost, damage, claim, liability and expense (including attorneys'
fees) arising out of claims or suits brought by third parties against Landlord,
its agents, officers, directors and employees alleging or relating to the
failure of the Premises to comply with the terms of the Americans With
Disabilities Act, as amended, or any other law or regulation applicable to the
Premises and/or its occupancy by Tenant. Without limiting the foregoing,
Landlord shall be responsible for removing barriers in the common areas of the
Building to the extent that Landlord or an appropriate governmental authority
determines that such removal is required by the Americans with Disabilities Act,
as amended and to the extent that such removal was not caused by any action or
inaction of Tenant. Tenant shall not use or permit the Premises or any part
thereof to be used in any manner that constitutes waste, nuisance or
unreasonable disturbances to other tenants of the Building or for any
disorderly, unlawful or hazardous purpose and will not store or maintain therein
any hazardous, toxic or highly combustible items other than usual and customary
office supplies intended for Tenant's use and in such event, only in such
amounts as permitted by applicable law. Tenant covenants not to change Tenant's
use of the Premises without the prior written approval of Landlord.

         b. Tenant shall not put the Premises to any use, the effect of which
use is reasonably likely to cause cancellation of any insurance covering the
Premises or the Building, or an increase in the premium rates for such
insurance. In the event that Tenant performs or commits any act, the effect of
which is to raise the premium rates for such insurance, Tenant shall pay
Landlord the amount of the additional premium, as Additional Rent payable by
Tenant upon demand therefor by Landlord. The Premises shall not be used for any
illegal purpose or in violation of any regulation of any governmental body or
the regulations or directives of Landlord's insurance carriers, or in any manner
which interferes with the quiet enjoyment of any other tenant of the Building.
Tenant will not install or operate in the Premises any electrical or other
equipment, other than such equipment as is commonly used in modern offices
(specifically excluding mainframe computers), without first obtaining the prior
written consent of Landlord, who may condition such consent upon the payment by
Tenant of Additional Rent in compensation for excess consumption of water,
electricity and/or other utilities, excess wiring and other similar
requirements, and any changes, replacements or additions to any base building
system, as may be occasioned by the operation of said equipment or machinery.

         c. Tenant agrees to maintain the Premises, and the Tenant Improvements
and other Alterations (hereinafter defined) therein, in good order, repair and
condition during the Term at Tenant's sole cost and expense, and Tenant will, at
the expiration or other termination of the Term, surrender and deliver the same
and all keys, locks and other fixtures connected therewith (excepting only
Tenant's personal property) in good order, repair and condition, as the same
shall be at the Commencement Date, except as repaired, rebuilt, restored,
altered or added to pursuant to this Lease, and except for ordinary wear and
tear. Landlord shall have no obligation to Tenant to make any repairs in or to
the Premises, the Tenant Improvements or any Alterations. Any and all damage or
injury to the Premises (including, but not limited to, the Tenant Improvements),
the Building or the Land caused by Tenant, or by any employee, agent,
contractor, assignee, subtenant, invitee or customer of Tenant shall be promptly
reported to Landlord and repaired by Tenant at Tenant's sole cost; provided,
however, that Landlord shall have the option of repairing any such damage, in
which case Tenant shall reimburse Landlord for all costs incurred by Landlord in
respect thereof as Additional Rent within fifteen (15) days after Tenant
receives Landlord's notice of such costs.

                                       7
<PAGE>

         D. Tenant shall not place a TOAD UPON the floor of the Premises
exceeding the designated floor load capacity of the Building (e.g. 100 POUNDS
per square foot: 80 pounds per square foot, live bad. and 20 pounds per square
foot dead load) without Landlord's prior written consent Business machines,
mechanical equipment and materials belonging to Tenant which cause vibration,
noise, cold, heat or fumes that may be transmitted to the Building or to any
other leased SPACE THEREIN to such a degree as to be objectionable to Landlord
or to any other tenant in the Building shall be placed, maintained, isolated,
stored and/or vented by Tenant at its sate expense so as to absorb and prevent
such vibration, noise, cold, heat or fumes.

7.       ASSIGNMENT AND SUBLETTING.

         A. Tenant shall not, without the prior written consent of Landlord
(which consent may be granted or withheld by Landlord in its sole discretion
except as expressly set forth below) in each instance: (i) assign or otherwise
transfer this Lease or any of Tenant's rights hereunder. (ii) sublet the
Premises or any part thereof, or permit the use of the Premises or any part
thereof by any persons other than Tenant or its employees, agent and invitees,
or (iii) permit the assignment or other transfer of this Lease or any of
Tenant's rights hereunder by operation of law. Landlord's consent to a proposed
assignment or sublease shall not be unreasonably withheld, conditioned or
delayed, provided Landlord determines that the proposed assignee or subtenant
(A) is of a type and quality consistent with the first- class nature of the
Building, (B) has the financial capacity and creditworthiness to undertake and
perform the obligations of this Lease or the sublease, (C) is not a party by
whom any suit or action could be defended on the ground of sovereign immunity or
diplomatic immunity and (D) will not impose any additional material burden upon
Landlord in the operation of the Building (to an extent greater than the burden
to which Landlord would have been had Tenant continued to use such part of the
Premises), In addition, the following conditions must be satisfied at the time
Tenant requests Landlord's consent to an assignment or sublease

                  (1) no Event of Default (hereinafter defined) exists and no
         event has occurred WHICH, with notice and/or the passage of time, would
         constitute an Event of Default if not cured within THE time, including
         any applicable grace period, specified herein

                  (2) Landlord receives at least thirty (30) days' prior written
         notice of Tenant's intention to assign this Lease or sublet any portion
         of the Premises;

                  (3) the proposed use of the Premises will not violate any
         agreement affecting the Premises or the Building;

                  (4) Tenant submits to Landlord at least thirty (30) days prior
         to the proposed DATE OF subletting or assignment whatever information
         Landlord reasonably requests in order to PERMIT Landlord to make a
         judgment on the proposed subletting or assignment, including without
         limitation the name, business experience, financial history, net worth
         and business references of the proposed assignee or subtenant (and each
         of its principals), an in-depth description of the transaction, and the
         consideration delivered to Tenant for the assignment or sublease;

                  (5) the proposed assignee or subtenant is not a tenant of the
         Building or a prospective tenant who, within the six (6) months prior
         to Tenant's request, has talked to Landlord or its brokers or agents
         about the possibility of leasing space in the Building;

                  (6) Tenant has not requested approval of a sublease within the
         prior twelve (12) months and Tenant has not previously sublet more than
         twenty-five percent (25%) of the rentable square feet of the Premises;
         and

                  (7) Tenant has paid to Landlord an administrative fee in the
         amount of Seven Hundred Fifty Dollars ($750,00) which shall be retained
         by Landlord whether or not such consent is granted.

         b. All proposed subleases and assignments shall be on Landlord's
approved form of sublease or assignment, whichever is applicable; and shall
contain, inter alia, the following provisions: (i) any such assignment or
sublease shall include an assumption by the assignee or subtenant, from and
after the effective date of such assignment or sublease, of the performance and
observance of the covenants and conditions to be performed and observed on the
part of Tenant as contained in this Lease, and (ii)any such sublease or
assignment shall specify that this Lease or sublease shall not be further
assigned nor the Premises further sublet and shall specify that the term of such
sublease shall not extend beyond one (1) day prior to the expiration of this
Lease. The consent by Landlord to any assignment, transfer or subletting to any
person or entity shall not be construed as a waiver or release of Tenant from
any provision of this Lease, unless expressly agreed to in writing by Landlord
(it being understood that Tenant shall remain primarily liable as a principal
and not as a guarantor or surety), nor shall the collection or acceptance of
rent from any such assignee, transferee, subtenant or occupant constitute a
waiver or release of Tenant from any such provision. No consent by Landlord to
any such assignment, transfer or subletting in any one instance shall constitute
a waiver of the necessity for such consent in a subsequent instance.

         c. In the event that Tenant assigns this Lease or sublets all or any
portion of the Premises. Tenant shall pay to Landlord as Additional Rent an
amount equal to fifty percent (50%) of the difference between (i) all sums paid
to Tenant or its agent by or on behalf of such assignee or subtenant under the

                                       8
<PAGE>

assignment or sublease, and (ii) the Annual Base Rent and Additional Rent paid
by Tenant under this Lease and attributable to the portion of the Premises
assigned or sublet.

         d. For purposes of this Section, a transfer, conveyance, grant or
pledge, directly or indirectly, in one or more transactions, of an interest in
Tenant (whether stock, partnership interest or other form of ownership or
control, or the issuance of new interests) by which an aggregate of more than
fifty percent (50%) of the beneficial interest in Tenant shall be vested in a
party or parties who are not holders of such interests) as of the date hereof)
shall be deemed an assignment of this Lease; provided, however, that this
limitation shall not apply to any corporation, all of the outstanding voting
stock of which is listed on a national securities exchange as defined in the
Securities Exchange Act of 1934. The merger or consolidation of Tenant into or
with any other entity, the sale of all or substantially all of Tenant's assets,
or the dissolution of Tenant shall each be deemed to be an assignment within the
meaning of this Section.

         e. Any assignment or subletting not in conformance with the terms of
this Lease shall be void AB INITIO and shall, subject to the provisions of
Section 16, constitute a default under the Lease.

         f. Upon receipt of the notice referred to in Section 7.a.(2), above,
Landlord may, at its option, in lieu of approving or rejecting the proposed
assignment or subletting, exercise all or any of the following rights by written
notice to Tenant of Landlord's intent to do so within fifteen (15) business days
of Landlord's receipt of Tenant's notice:

               (i) with respect to a proposed assignment of this Lease, the
        right to terminate this Lease on the effective date of proposed
        assignment as though it were the Lease Expiration Date;

               (ii) with respect to a proposed sublease of the entire Premises,
        the right to terminate this Lease on the effective date of the sublease
        as though it were the Lease Expiration Date;

               (iii) with respect to a proposed sublease of less than the entire
        Premises, the right to terminate this Lease as to the portion of the
        Premises affected by such sublease on the effective date of the
        sublease, as though it were the Lease Expiration Date, in which case
        Tenant shall execute and deliver to Landlord an appropriate modification
        of this Lease, in form satisfactory to Landlord in all respects within
        ten (10) days of Landlord's notice of partial termination, which
        modification of this Lease shall provide that the number of rentable
        square feet of the Premises shall be decreased by, and the Monthly Base
        Rent and Additional Rent payable by Tenant hereunder shall be adjusted
        in proportion to, the number of rentable square feet of the Premises
        affected by such termination, as determined by Landlord; or

               (iv) with respect to a proposed sublease for less than the
        balance of the Term, the right to sublet the portion of the Premises
        from Tenant upon the same terms and conditions (including Annual Base
        Rent and Additional Rent) set forth in this Lease for the term of the
        proposed sublease.

        9. If Landlord exercises any of its options under Section 7.f., above,
 Landlord may then lease (or sublease) the Premises or any portion thereof to
 Tenant's proposed assignee or subtenant, AS the case may be, without any
 liability whatsoever to Tenant.

        h. Upon any assignment of this Lease or sublease of all or a portion of
 the Premises, any and all option rights, rights of first refusal, rights of
 first negotiation, and expansion rights shall terminate, it being understood
 that any and all such rights are personal to Tenant (and not to any assignee or
 subtenant) and are not appurtenant to the Premises or this Lease. Further,
 Tenant shall not have the right to exercise any such rights unless Tenant (and
 not any assignee or subtenant of Tenant) shall be in occupancy of all of the
 Premises at the time of the exercise of any such right. In addition to the
 administrative fee described in Section 7.a.(7), above, Tenant shall reimburse
 Landlord for its attorneys' fees and other third party expenses incurred in
 reviewing any requested consent whether or not such consent is granted. Tenant
 shall not collaterally assign, mortgage, pledge, hypothecate or otherwise
 encumber this Lease or any of Tenant's rights hereunder without the prior
 written consent of Landlord, which consent Landlord may withhold in its sole
 discretion.

        i. Notwithstanding any consent by Landlord to an assignment or
 subletting, Tenant shall remain primarily liable for the performance of all
 covenants and obligations contained in this Lease. Each approved assignee or
 subtenant shall also automatically become liable for the obligations of Tenant
 hereunder. Landlord shall be permitted to enforce the provisions of this Lease
 directly against Tenant and/or against any assignee or sublessee without
 proceeding in any way against any other person. Collection or acceptance of
 Annual Base Rent or Additional Rent from any such assignee, subtenant or
 occupant shall not constitute a waiver or release of Tenant from the terms of
 any covenant or obligation contained in this Lease, nor shall such collection
 or acceptance in any way be construed to relieve Tenant from obtaining the
 prior written consent of Landlord to such assignment or subletting or any
 subsequent assignment or subletting.

8.       IMPROVEMENTS AND FIXTURES.

         a. Tenant shall neither make nor allow any alterations, decorations,
replacements, changes, additions or improvements (collectively referred to as
"Alterations") to the Premises or any part thereof that will or may affect the
mechanical, electrical, plumbing, HVAC or other systems or the exterior or

                                       9
<PAGE>

structure of the Building, without the prior written consent of Landlord, which
may be withheld by Landlord in its sole discretion. Tenant shall not make or
allow any other kind of Alterations to the Premises or any part thereof without
the prior written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed. All of such Alterations, structural or
otherwise, must conform to all rules and regulations established from time to
time by Landlord, must be performed in a good and workmanlike manner, must
comply with all applicable building codes, laws and regulations (including
without limitation the Americans With Disabilities Act, as amended), shall not
require any changes to or modifications of any of the mechanical, electrical,
plumbing, HVAC or other systems or the exterior or structure of the Building,
and shall otherwise be constructed in strict accordance with the terms and
conditions of this Section 8. Prior to undertaking any Alterations in the
Premises, Tenant shall furnish to Landlord duplicate original policies or
certificates thereof of worker's compensation insurance (covering all persons to
be employed by Tenant, and Tenant's contractors and subcontractors in connection
with such Alteration), builder's all-risk insurance, and comprehensive public
liability insurance (including property damage coverage) in such form, with such
companies, for such periods and in such amounts as Landlord may reasonably
require, naming Landlord and its agents, and any mortgagee as additional
insureds.

         b. It is understood and agreed by Landlord and Tenant that any
Alterations undertaken in the Premises shall be constructed at Tenant's sole
expense. The costs of Alterations shall include without limitation the cost of
all architectural work, engineering studies, materials, supplies, plans, permits
and insurance. If requested by Landlord, Tenant shall provide to Landlord
satisfactory evidence of Tenant's ability to pay for such Alterations
(including, but not limited to, a payment or performance bond). No consent by
Landlord to any Alterations shall be deemed to be an agreement or consent by
Landlord to subject Landlord's interest in the Premises, the Building or the
Land to any mechanic's or materialman's liens which may be filed in respect to
such Alterations made by or on behalf of Tenant. If Landlord gives its consent
as specified in Section 8a above, Landlord may impose as a condition to such
consent such requirements as Landlord may deem necessary or desirable, in its
sole discretion exercised in good faith, including without limitation the right
to approve the plans and specifications for any work, supervision of the work by
Landlord or its agents or by Landlord's architect or contractor and the payment
to Landlord or its agents, architect or contractor of a construction supervision
fee in connection therewith, the right to require security for the full payment
of any work and the right to impose requirements as to the manner in which or
the time or times at which work may be performed. Landlord shall also have the
right to approve the contractor or contractors who shall perform any
Alterations, repairs in, to or about the Premises and to post notices of
non-responsibility and similar notices, as appropriate. In addition, immediately
after completion of any Alterations, Tenant shall assign to Landlord any and all
warranties applicable to such Alterations and shall provide Landlord with
as-built plans of the Premises depicting such Alterations.

         c. Tenant shall keep the Premises free from any liens arising out of
any work performed on, or materials furnished to, the Premises, or arising from
any other obligation incurred by Tenant. If any mechanic's or materialmen's lien
is filed against the Premises, the Building and/or the Land for work claimed to
have been done for or materials claimed to have been furnished to Tenant, such
lien shall be discharged by Tenant within ten (10) days thereafter, at Tenant's
sole cost and expense, by the payment thereof or by filing any bond required by
law. If Tenant shall fail to timely discharge any such mechanic's or
materialman's lien, Landlord may, at its option, discharge the same and treat
the cost thereof as Additional Rent payable with the installment of rent next
becoming due; it being expressly covenanted and agreed that such discharge by
Landlord shall not be deemed to waive or release the default of Tenant in not
discharging the same. Tenant shall indemnify and hold harmless Landlord, the
Premises and the Building from and against any and all expenses, liens, claims,
actions or damages to person or property in connection with any such lien or the
performance of such work or the furnishing of such materials. Tenant shall be
obligated to, and Landlord reserves the right to, post and maintain on the
Premises at any time such notices as shall in the reasonable judgment of
Landlord be necessary to protect Landlord against liability for all such liens
or actions.

         d. Any Alterations of any kind to the Premises or any part thereof,
except Tenant's furniture and moveable trade fixtures, shall at once become part
of the realty and belong to Landlord and shall be surrendered with the Premises,
as a part thereof, at the end of the Term hereof; provided, however, that
Landlord may, by written notice to Tenant at least thirty (30) days prior to the
end of the Term, require Tenant to remove any Alterations and to repair any
damage to the Premises caused by such removal, all at Tenant's sole expense. Any
article of personal property, including business and trade fixtures, not
attached to or built into the Premises, which were installed or placed in the
Premises by Tenant at its sole expense, shall be and remain the property of
Tenant and may be removed by Tenant at any time during the Term as long as
Tenant is not in default hereunder and provided that Tenant repairs any damage
to the Premises or the Building caused by such removal. Notwithstanding the
foregoing, Tenant shall not be required to remove the initial Tenant
Improvements performed by Tenant in accordance with the Work Agreement attached
hereto as EXHIBIT B.

9.       UTILITIES AND SERVICES.

         a. Landlord shall furnish the following utilities and services to the
Premises: electric current (for lighting and operation of normal desk-type
office machines); hot and cold water; lavatory supplies; heat and
air-conditioning during the appropriate seasons of the year as reasonably
required; elevator service; and trash removal, cleaning and char service (after
normal business hours Monday through Friday, excluding Holidays (hereinafter
defined)). Heating and air conditioning shall be provided to the Premises only
during normal business hours (;.e., Monday through Friday 8:00 a.m. to 6:00
p.m., and Saturday 8:00 a.m. to 1:00 p.m.. excluding Holidays). As used herein,
the term "Holidays" shall mean New Year's Day, Martin Luther King's Birthday,
President's Day, Memorial Day, Independence Day,

                                       10
<PAGE>

Labor Day. Columbus Day, Thanksgiving Day and Christmas Day. At times other than
the normal business hours and days aforesaid, central air conditioning and
heating shall be provided to Tenant upon at least twenty-four (24) hours' prior
notice from Tenant, and upon payment by Tenant of the hourly charge established
by Landlord from time to time for each hour (or a portion thereof) of
after-hours usage. The current hourly charge for each hour (or portion thereof)
of after-hours usage of central air conditioning and heating is $20 per hour (or
portion thereof). Landlord shall use reasonable efforts to ensure that at least
one (1) passenger elevator is operating in the Building twenty-four (24) hours
per day, seven (7) days per week. All light bulbs and tubes in the Premises
shall be replaced at Tenant's expense. In addition, Landlord may impose a
reasonable additional charge for any additional or unusual services required to
be provided by Landlord to Tenant because of the carelessness of Tenant, the
nature of Tenant's business or the removal of any refuse and rubbish from the
Premises except for discarded material placed in wastepaper baskets and left for
emptying as an incident to Tenant's normal cleaning of the Premises. In the
event that Landlord must temporarily suspend or curtail services because of
accident and repair, Landlord shall have no liability to Tenant for such
suspension or curtailment or due to any restrictions on use arising therefrom or
relating thereto, and Landlord shall proceed diligently to restore such service.
No interruption or malfunction of any such services shall constitute an actual
or constructive eviction or disturbance of Tenant's use and possession of the
Premises, the Building or the parking garage or parking areas in or around the
Building or constitute a breach by Landlord of any of its obligations hereunder
or render Landlord liable for damages or entitle Tenant to be relieved from any
of Tenant's obligations hereunder (including the obligation to pay rent) or
grant Tenant any right of setoff or claim against Landlord or constitute a
constructive or other eviction of Tenant. In the event of any such interruption,
Landlord shall use reasonable diligence to restore such services.

         b. Tenant will not, without the prior written consent of Landlord, use
any apparatus or device in the Premises, including without limitation electric
data processing machines, punch card machines and machines using current in
excess of 110 volts which will in any way increase the amount of the electricity
or water which would otherwise be furnished or supplied for the intended use of
the Premises under this Section 9; and Tenant will not connect to electric
current any apparatus or device for the purpose of using electric current or
water, except through existing electrical outlets in the Premises or water
pipes. If Tenant shall require water or electricity in excess of that which
would otherwise be furnished or supplied for the intended use of the Premises,
Tenant shall first secure the written consent of Landlord for the use thereof,
which consent Landlord may refuse in its absolute discretion. Landlord may
condition its consent upon the requirement that a water meter or electric
current meter be installed in the Premises, so as to measure the amount of water
and electric current consumed for any such excess use. The cost of such meters
and installation, maintenance and repair thereof, the cost of any such excess
utility use as shown by said meter, the cost of any new or additional utility
installations, including without limitation wiring and plumbing, resulting from
such excess utility use, and the cost of any additional expenses incurred in
keeping count of such excess utility use shall be paid by Tenant promptly upon
demand by Landlord or, if Tenant is billed separately therefor, promptly upon
receipt of a bill for same. Whenever heat generating machines or equipment are
used in the Premises which affect the temperature otherwise maintained by the
air conditioning system, Landlord reserves the right to install supplementary
air conditioning units in the Premises and the cost thereof, including the cost
of installation, operation and maintenance thereof, shall be paid by Tenant to
Landlord upon demand by Landlord.

         c. Tenant shall have the right to install and operate in the Premises
personal computers and other electrically operated office equipment normally
used in modern offices. Tenant shall not install equipment of any kind or nature
whatsoever nor engage in any practice or use which will or may necessitate any
changes, replacements or additions to, or in the use of, the water system,
heating system, plumbing system, air conditioning system, electrical system,
floor load capacities, or other mechanical or structural system of the Premises
or the Building without first obtaining the prior written consent of Landlord,
which consent may be conditioned upon, but not limited to, Tenant first securing
at its expense additional capacity for any said service in the Building;
provided, however, Tenant shall be responsible for paying for any excess utility
consumption arising from any such change, replacement, use or addition, such
payments to be based on Landlord's reasonable estimate or, at Landlord's option,
a submeter or similar device to measure such usage (said device to be installed
at Tenant's expense). Additionally, in the event that Landlord reasonably
determines that Tenant's electrical consumption exceeds standard office use,
Tenant shall pay the amount of such excess electrical consumption, as reasonably
determined by Landlord, within thirty (30) days after demand therefor. Machines,
equipment and materials belonging to Tenant which cause vibration, noise, cold,
heat, fumes or odors that may be transmitted outside of the Premises to such a
degree as to be objectionable to Landlord in Landlord's sole opinion or to any
other tenant in the Building shall be treated by Tenant at its sole expense so
as to eliminate such objectionable condition, and shall not be allowed to
operate until such time as the objectionable condition is remedied to Landlord's
satisfaction.

         d. Tenant shall comply, at its sole cost and expense, with all orders,
requirements and conditions now or hereafter imposed by any ordinances, laws,
orders and/or regulations (hereinafter collectively called "regulations") of any
governmental body having jurisdiction over the Premises or the Building, whether
required of Landlord or otherwise, regarding the collection, sorting, separation
and recycling of waste products, garbage, refuse and trash (hereinafter
collectively called "waste products") including but not limited to the
separation of such waste products into receptacles reasonably approved by
Landlord and the removal of such receptacles in accordance with any collection
schedules prescribed by such regulations. Landlord reserves the right (i) to
refuse to accept from Tenant any waste products that are not prepared for
collection in accordance with any such regulations, (ii) to require Tenant to
arrange for waste product collection at Tenant's sole cost and expense,
utilizing a contractor reasonably satisfactory to Landlord, and (iii) to require
Tenant to pay all costs, expenses, fines, penalties, or damages that may be
imposed on Landlord or Tenant by reason of Tenant's failure to comply with any

                                       11
<PAGE>

such regulations. Notwithstanding the foregoing, if Tenant is unable to comply
with Landlord's standard procedures regarding the internal collection, sorting,
separation and recycling of waste products, Landlord shall use reasonable
efforts to arrange for alternative procedures for Tenant, and Tenant shall pay
Landlord all additional costs incurred by Landlord with respect thereto.

10.      RIGHTS OF LANDLORD.

         a. Landlord reserves the following rights:

                  (i) to change the name or street address of the Building with
         thirty (30) days prior notice or liability to Tenant, provided,
         however, if the name of the Building is changed by Landlord, and such
         change is not made, directed, or requested by the postal service or any
         public, governmental or quasi-governmental authority, then Landlord
         shall reimburse Tenant for the reasonable costs, not in excess of Five
         Hundred Dollars ($500.00), of any of Tenant's letterhead, stationery
         and business cards then on hand that bears the old address and cannot
         be used by Tenant as a result thereof;

                  (ii) to approve the design, location, number, size and color
         of all signs or lettering on the Premises or visible from the exterior
         of the Premises, provided, however, that Landlord shall provide a
         single listing of Tenant's name in the Building directory, if any, and
         the initial Building standard suite identification signage near
         Tenant's suite entry door at no charge to Tenant;

                  (iii) to have pass keys and/or access cards to the Premises
         and key codes or cards for the telephone access system installed by
         Tenant;

                  (iv) to grant to anyone the exclusive right to conduct any
         particular business or undertaking in the Building;

                  (v) to enter the Premises at any reasonable time for
         inspection upon reasonable prior notice to Tenant (which notice may be
         oral), or at any time, without prior notice, in the event of any
         emergency; to supply any service to be provided by Landlord hereunder
         to submit the Premises to prospective purchasers or tenants; to post
         notices of non-responsibility; to affix and display "For Rent" signs;
         and to make repairs, alterations, additions or improvements to the
         Premises or the Building; and

                  (vi) to approve the design, location, number, size and color
         of all signs located on the exterior of the Building.

         b. Without limiting the generality of the provisions of Section 10a,
above, at any time during the Term of this Lease, Landlord shall have the right
to remove, alter, improve, renovate or rebuild the common areas of the Building
(including but not limited to the lobby, hallways and corridors thereof), and to
install, repair, replace, alter, improve or rebuild in the Premises, other
tenants' premises and/or the common areas of the Building (including the lobby,
hallways and corridors thereof), any mechanical, electrical, water, sprinkler,
plumbing, heating, air conditioning and ventilating systems, at any time during
the Term of this Lease. In connection with making any such installations,
repairs, replacements, alterations, additions and improvements under the terms
of this Section 10, Landlord shall have the right to access through the Premises
as well as the right to take into and upon and through the Premises or any other
part of the Building, all materials that may be required to make any such
repairs, replacements, alterations, additions or improvements, as well as the
right in the course of such work to close entrances, doors, corridors, elevators
or other facilities located in the Building or temporarily to cease the
operations of any services or facilities therein or to take portion(s) of the
Premises reasonably necessary in connection with such work, without being deemed
or held guilty of an eviction of Tenant; provided, however that Landlord agrees
to use all reasonable efforts not to interfere with or interrupt Tenant's
business operation in the Premises. Landlord shall have the right to install,
use and maintain pipes and conduits in and through the Premises, including
without limitation telephone and computer installations, provided that they do
not permanently materially adversely affect Tenant's access to or use of the
Premises.

         c. Landlord shall not be liable to Tenant for any expense, injury, toss
or damage resulting from Landlord's exercise of any rights under this Section
10, all claims against Landlord for any and all such liability being hereby
expressly released by Tenant. Except for injury, loss or damage to Tenant
resulting directly from Landlord's gross negligence or willful misconduct
Landlord shall not be liable for damages to Tenant's property, business or
person to Tenant by reason of interference with the business of Tenant or
inconvenience or annoyance to Tenant or the customers of Tenant, provided,
however that in any event Landlord shall not be liable for consequential or
punitive damages. The Rent reserved herein shall not abate while the Landlord's
rights under this Section 10 are exercised, and Tenant shall not be entitled to
any set-off or counterclaims for damages of any kind against Landlord by reason
thereof, all such claims being hereby expressly released by Tenant

         d. Landlord shall have the right to use any and all means which
Landlord may deem proper to open all of the doors in, upon and about the
Premises, excluding Tenant's vaults and safes, in any emergency in order to
obtain entry to the Premises. Any entry to the Premises obtained by Landlord by
any of said means shall not be construed or deemed to be a forcible or unlawful
entry into, or a detainer of, the Premises, or an eviction of Tenant from the
Premises or any portion thereof.

                                       12
<PAGE>

11.      LIABILITY.

         a. Landlord and its agents, officers, directors and employees assume no
liability or responsibility whatsoever with respect to the conduct or operation
of the business to be conducted in the Premises and shall have no liability for
any claim of loss of business or interruption of operations (or any claim
related thereto). Landlord and its agents, officers, directors and employees
shall not be liable for any accident to or injury to any person or persons or
property in or about the Premises which are caused by the conduct and operation
of said business or by virtue of equipment or property of Tenant in said
Premises. Tenant agrees to hold Landlord and its agents, officers, directors and
employees harmless against all such claims, except to the extent resulting from
Landlord's negligence or willful misconduct Landlord and its agents, officer,
directors and employees shall not be liable to Tenant, its employees, agents,
business invitees, licensees, customers, clients, family members or guests for
any damage, compensation or claim arising out of or related to managing the
Premises or the Building, repairing any portion of the Premises or the Building,
the interruption in the use of the Premises, accident or damage resulting from
the use or operation (by Landlord and its agents, officers, directors and
employees, Tenant, or any other person or persons whatsoever) or failure of
elevators, or heating, cooling, electrical or plumbing equipment or apparatus,
or the termination of this Lease by reason of the destruction of the Premises,
or from any fire, robbery, theft, mysterious disappearance and/or any other
casualty, or from any leakage in any part of portion of the Premises or the
Building, or from water, rain or snow that may leak into or flow from any part
of the Premises or the Building, or from any other cause whatsoever, unless
occasioned by the willful misconduct or acts of negligence of Landlord. In no
event shall Landlord be liable for punitive or consequential damages, nor shall
Landlord be liable with respect to utilities furnished to the Premises, or the
lack of any utilities. Any goods, property or personal effects, stored or placed
by Tenant in or about the Premises or in the Building, shall be at the sole risk
of Tenant, and Landlord and its agents, officers, directors and employees shall
not in any manner be held responsible therefor, except if such injury or damage
results from Landlord's negligence or willful misconduct. The agents and
employees of Landlord are prohibited from receiving any packages or other
articles delivered to the Building for Tenant, and if any such agent or employee
receives any such package or articles, such agent or employee shall be the agent
of Tenant for such purposes and not of Landlord.

         b. Tenant hereby agrees to indemnify and hold Landlord and its agents,
officers, directors and employees harmless from and against any cost, damage,
claim, liability or expense (including attorneys' fees) incurred by or claimed
against Landlord and its agents, officers, directors and employees, directly or
indirectly, as a result of or in any way arising from (i) Tenant's use and
occupancy of the Premises or in any other manner which relates to the business
of Tenant, including, but not limited to, any cost, damage, claim, liability or
expense arising from any violation of any zoning, health, environmental or other
law, ordinance, order, rule or regulation of any governmental body or agency;
(ii) the negligence or willful misconduct of Tenant, its officers, directors,
employees and agents; (iii) any default, breach or violation of this Lease by
Tenant; or (iv) injury or death to individuals or damage to property sustained
in or about the Premises.

         c. Notwithstanding any other provision of this Lease to the contrary,
Landlord and Tenant agree that in the event that the Building, the Premises or
the contents thereof are damaged or destroyed by fire or other casualty, each
party hereto waives its rights, if any, against the other party with respect to
such damage or destruction to the extent such damage or destruction is covered
under the property insurance policy(ies) of the party waiving such rights (or
would have been covered had the party waiving such rights carried the property
insurance required hereunder to be carried by such party); provided however, if
any fire or other casualty caused by Tenant shall have damaged or destroyed any
part of the Building or the contents thereof, Tenant shall be responsible for
any deductible amount under Landlord's property insurance policy(ies). All
policies of fire and/or extended coverage or other insurance covering the
Premises or the contents thereof obtained by Landlord or Tenant shall contain a
clause or endorsement providing in substance that (i) such insurance shall not
be prejudiced if the insureds thereunder have waived in whole or in part the
right of recovery from any person or persons prior to the date and time of loss
or damage, if any, and (ii) the insurer waives any rights of subrogation against
Landlord (in the case of Tenant's insurance policy) or Tenant (in the case of
Landlord's insurance policy), as the case may be.

12.      INSURANCE.

         a. Tenant shall maintain at all times during the Term hereof and at its
sole cost and expense, broad-form commercial general liability insurance for
bodily injury and property damage naming Landlord as an additional insured, in
such amounts as are adequate to protect Landlord and Landlord's managing agents
against liability for injury to or death of any person in connection with the
use, operation or condition of the Premises. Such insurance at all times shall
be in an amount of not less than Three Million Dollars ($3,000,000) combined
single limit aggregate for bodily injury or death or damage to property. If, in
the opinion of the insurance broker retained by Landlord, the amount of public
liability and property damage insurance coverage at any time during the Term is
not adequate, Tenant shall increase the insurance coverage as required by
Landlord's insurance broker. In no event shall the limits of such policy be
considered as limiting the liability of Tenant under this Lease.

         b. Tenant shall at all times during the Term hereof maintain in effect
policies of insurance covering the Leasehold Improvements (including any
Alterations, additions or improvements as may be made by Tenant after the
Commencement Date), plate glass, trade fixtures, merchandise and all other
personal property from time to time in or on the Premises, in an amount not less
than one hundred percent (100%) of their actual replacement cost, providing
protection against all risks covered by standard

                                       13
<PAGE>

form of "Fire and Extended Coverage Insurance," together with insurance against
vandalism and malicious mischief. Tenant shall also maintain at its sole cost
and expense workman's compensation insurance in the maximum amount required by
law.

         c. All insurance required to be carried by Tenant shall be issued by
responsible insurance companies, qualified to do business in the Commonwealth of
Virginia and reasonably acceptable to Landlord. Each policy shall name Landlord,
Landlord's mortgagee and the property management company retained by Landlord at
the Building, as additional insureds, and shall contain a provision that the
same may not be cancelled or reduced without providing Landlord not less than
thirty (30) days' prior written notice. Copies of all policies or, at Landlord's
option, certificates of insurance (ACORD 27 only) evidencing the existence and
amounts of said insurance shall be delivered to Landlord no later than five (5)
days prior to the Commencement Date, and renewals thereof shall be delivered to
Landlord at least ten (10) days prior to the expiration of any such policy. If
Tenant fails to adhere to the requirements of this Section 12, Landlord may
order such insurance and charge the cost thereof to Tenant, which amount shall
be deemed Additional Rent hereunder and shall be payable by Tenant upon demand.
Tenant's failure to provide and keep in force the aforementioned insurance shall
be regarded as a material default hereunder, entitling Landlord to exercise any
or all of the remedies provided in this Lease. Any policy may be carried under
so-called "blanket coverage" form of insurance policies. Tenant shall obtain and
furnish evidence to Landlord of the waiver by Tenant's insurance carriers of any
right of subrogation against Landlord and Landlord's management company at the
Building.

         d. Each party hereby waives any and every right or cause of action for
any and all loss of, or damage to, any of its property (whether or not such loss
or damage is caused by the fault or negligence of the other party or anyone for
whom said other party may be responsible), which loss or damage is covered by
valid and collectible fire, extended coverage, "All Risk" or similar policies,
maintained by such party or required to be maintained by such party under this
Lease, but only to the extent that such loss or damage is recovered under said
insurance policies (if such policy or policies have been obtained) or would have
been recovered if such party had obtained the required insurance coverage
hereunder. Written notice of the terms of said mutual waivers shall be given to
each insurance carrier and said insurance policies shall be properly endorsed,
if necessary, to prevent the invalidation of said insurance coverages by reason
of said waivers.

13.      FIRE OR CASUALTY.

         a. If the Premises or any part thereof shall be damaged by fire or any
other cause, Tenant shall give prompt notice thereof to Landlord. If, in the
reasonable judgment of Landlord's architect, restoration of the Premises is
feasible within a period of nine (9) months from the date of the damage, and
provided such damage was not caused by Tenant, its agents, servants or invitees,
Landlord shall restore the Premises to the extent of the Tenant Improvements set
forth in the Work Agreement, provided that adequate insurance proceeds are made
available to Landlord. Tenant agrees to make all proceeds of Tenant's insurance
policies available to Landlord in accordance with Tenant's insurance obligations
set forth in Section 12, above. In addition, Tenant shall repair and restore, at
Tenant's sole expense, all Alterations, furniture, fixtures and other property
of Tenant located in the Premises prior to such casualty. If the Premises are
unusable, in whole or in part, during such restoration, the Monthly Base Rent
and Additional Rent hereunder shall be abated to the extent and for the period
that the Premises are unusable; provided, however, that if such damage or
destruction shall result from the act or omission of Tenant, its employees,
agents or invitees, Tenant shall not be entitled to any abatement of Monthly
Base Rent or Additional Rent.

         b. If restoration is not feasible in the reasonable judgment of
Landlord's architect within the aforesaid nine (9) month period, Landlord shall
so notify Tenant, and Landlord and Tenant shall each have the right to terminate
this Lease by giving written notice thereof to the other party within sixty (60)
days after the occurrence of such damage, in which event this Lease and the
tenancy hereunder shall terminate as of the date of such damage or destruction
and the Monthly Base Rent and Additional Rent will be apportioned as of the date
of such damage or destruction. If neither party exercises its right of
termination, the Premises shall be restored as provided above.

         c. In case the Building is so severely damaged by fire or other
casualty (although the Premises may not be affected) that Landlord shall decide
in its sole discretion not to rebuild or reconstruct such Building, then this
Lease and the tenancy hereunder shall terminate on the date specified by
Landlord in a notice given no later than sixty (60) days after the date of such
casualty.

14. EMINENT DOMAIN, if the Premises or any part thereof shall be taken by any
governmental or quasi-governmental authority pursuant to the power of eminent
domain, Tenant shall make no claim for compensation in such proceedings and
shall have no right to participate in any condemnation proceedings under any
statutes, laws or ordinances of the Commonwealth of Virginia. All sums awarded
or agreed upon between Landlord and the condemning authority for the taking of
the interest of Landlord or Tenant, whether as damages or as compensation, will
be the property of Landlord. In the event of such taking, Rent shall be paid to
the date of vesting of title in the condemning authority. Notwithstanding the
foregoing, Tenant shall have the right to make a separate claim with the
condemning authority for Tenant's expenses associated with moving from the
Premises and Tenant's personal property, including without limitation, Tenant's
equipment located in the Premises; provided said claim in no way affects or
reduces Landlord's claims hereunder.

                                       14
<PAGE>

15.      SUBORDINATION AND ESTOPPEL CERTIFICATES.

         a. This Lease shall be subject and subordinate at all times to all
ground or underlying leases which now exist or may hereafter be executed
affecting the Building or any part thereof or the Land, and to the lien of any
mortgages or deeds of trust in any amount or amounts whatsoever now or hereafter
placed on or against the Building or any part thereof or the Land, or on or
against Landlord's interest or estate therein or on or against any ground or
underlying lease without the necessity of having further instruments on the part
of Tenant to effect such subordination. Upon request of Landlord, Tenant will
execute any further written instrument necessary to subordinate its rights
hereunder to any such underlying leases or liens. If, at any time, or from time
to time during the Term, any mortgagee shall request that this Lease have
priority over the lien of such mortgage, and if Landlord consents thereto, this
Lease shall have priority over the lien of such mortgage and all renewals,
modifications, replacements, consolidations and extensions thereof and all
advances made thereunder and interest thereon, and Tenant shall, within ten (10)
days after receipt of a request therefor from Landlord, execute, acknowledge and
deliver any and all documents and instruments confirming the priority of this
Lease. In any event, however, if this Lease shall have priority over the lien of
a first mortgage, this Lease shall not become subject or subordinate to the lien
of any subordinate mortgage, and Tenant shall not execute any subordination
documents or instruments for any subordinate mortgagee, without the written
consent of the first mortgagee.

         b. In the event oft (i) a transfer of Landlord's interest in the
Building, (ii) the termination of any ground or underlying lease of the
Building, or the Land, or both, or (iii) the purchase or other acquisition of
the Building, or Landlord's interest therein in a foreclosure sale or by deed in
lieu of foreclosure under any mortgage or deed of trust, or pursuant to a power
of sale contained in any mortgage or deed of trust, then in any of such events
Tenant shall, at the request of Landlord or Landlord's successor in interest,
attorn to and recognize the transferee or purchaser of Landlord's interest or
the interest of the lessor under the terminated ground or underlying lease, as
the case may be, as "Landlord" under this Lease for the balance then remaining
of the Term, and thereafter this Lease shall continue as a direct lease between
such person or entity, as "Landlord," and Tenant, as "Tenant," except that such
lessor, transferee or purchaser shall not be liable for any act or omission of
Landlord before such lease termination or before such person's succession to
title, nor be subject to any offset, defense or counterclaim accruing before
such lease termination or before such person's succession to title, nor be bound
by any payment of Monthly Base Rent or Additional Rent before such lease
termination or before such person's succession to title for more than one month
in advance.

         c. Tenant agrees, at any time, and from time to time, upon not less
than fifteen (15) days' prior notice by Landlord, to execute, acknowledge and
deliver to Landlord, a statement in writing certifying that (i) this Lease is
unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as modified and stating the
modifications); (ii) the Term of the Lease has commenced and the full rental is
now accruing hereunder; (iii) Tenant has accepted possession of the Premises and
is presently occupying the same; (iv) all improvements required by the terms of
the Lease to be made by Landlord have been completed and all tenant improvement
allowances have been paid in full; (v) there are no offsets, counterclaims,
abatements or defenses against or with respect to the payment of any rent or
other charges due under the Lease; (vi) no rent under the Lease has been paid
more than thirty (30) days in advance of its due date; (vii) to the best of the
knowledge of the Tenant, Landlord is not in default in the performance of any
covenant, agreement, provision or condition contained in the Lease or, if so,
specifying each such default of which Tenant may have knowledge; (viii) the
address for notices to be sent to Tenant; (ix) the only security deposit
tendered by Tenant is as set forth in the Lease, and such security deposit has
been paid to Landlord; and (x) any other information requested by Landlord or
any mortgagee or ground lessor of the Building and/or the Land it being intended
that any such statement delivered pursuant hereto may be relied upon by any
prospective purchaser or lessee of the Building or any part thereof, any
mortgagee or prospective mortgagee thereof, any prospective assignee of any
mortgage thereof, any ground lessor or prospective ground lessor of the Land
and/or the Building, or any prospective assignee of any such ground lease.
Tenant also agrees to execute and deliver from time to time such estoppel
certificates as an institutional lender may require with respect to this Lease.

16.      DEFAULT AND REMEDIES.

         a. If Tenant shall (i) fail to pay any installment of Monthly Base
Rent, although no legal or formal demand has been made therefor, within five (5)
calendar days after the due date therefor, or (ii) fail to make any payment of
Additional Rent or any other payment required by the terms and provisions
hereof, within five (5) days after notice or demand therefor; or (iii) convey,
assign, mortgage or sublet this Lease, the Premises or any part thereof, or
Tenant's interest therein, or attempt any of the foregoing, without the prior
written consent of Landlord; or (iv) abandon the Premises for a period of ten
(10) consecutive calendar days; or (v) commit or suffer to exist an Event of
Bankruptcy (hereinafter defined), or (vi)fail to maintain the insurance coverage
required by Section 12, above, or (vii) violate or fail to perform any of the
other terms, conditions, covenants, or agreements herein made by Tenant and
fails to cure such default within fifteen (15) calendar days after notice,
provided, however, that if the nature of Tenant's failure is such that more than
fifteen (15) days are reasonably required for its cure, then Tenant shall not be
in default if it begins such cure within the fifteen (15) day period described
above and thereafter diligently prosecutes such cure to completion within an
additional fifteen (15) days; then there shall be deemed to have been committed
an "Event of Default". Notwithstanding the foregoing cure periods, in the event
that Tenant breaches its covenant set forth in Section 6.a. hereof on more than
two (2) occasions in any twelve (12) consecutive month period, or on more than
three (3) occasions in any

                                       15
<PAGE>

twenty-four (24) consecutive month period, then any subsequent breach of such
covenant during the Term of this Lease shall be deemed to be an immediate Event
of Default. Upon such immediate Event of Default, at Landlord's option, this
Lease shall terminate without prejudice, however to the right of Landlord to
recover from Tenant all rent and any other sums accrued up to the later of: (a)
the date of termination of this Lease or (b) the date Landlord recovers
possession of the Premises, and without release of Tenant from any
indemnification obligations to Landlord under this Lease, which indemnification
obligations arose or accrued prior to the later oft (a) the date of termination
of this Lease or (b) the date Landlord recovers possession of the Premises. The
foregoing is not intended to, and shall not, limit Landlord in the exercise of
any other remedy for such immediate Event of Default.

         b. In the event of any Event of Default by Tenant as defined in Section
16a, Landlord may at any time thereafter, without notice and demand and without
limiting Landlord in the exercise of any other right or remedy which Landlord
may have by reason of such default or breach do any of the following:

                  (i) Landlord may terminate this Lease, by giving written
notice of such termination to Tenant, whereupon this Lease shall automatically
cease and terminate and Tenant shall be immediately obligated to quit the
Premises. Any other notice to quit or notice of Landlord's intention to re-enter
the Premises is hereby expressly waived. If Landlord elects to terminate this
Lease, everything contained in this Lease on the part of Landlord to be done and
performed shall cease without prejudice, subject, however, to the right of
Landlord to recover from Tenant all rent and any other sums accrued up to the
time of termination or recovery of possession by Landlord, whichever is later.

                  (ii) With or without the termination of this Lease, Landlord
may proceed to recover possession of the Premises under and by virtue of the
provisions of the laws of the jurisdiction in which the Building is located, or
by such other proceedings, including re-entry and possession, as may be
applicable. If this Lease is terminated or Landlord recovers possession of the
Premises before the expiration of the Term by reason of Tenant's default as
hereinabove provided, or if Tenant shall abandon or vacate the Premises before
the Lease Expiration Date without having paid the full rental for the remainder
of such Term, Landlord shall have the option to take reasonable steps to relet
the Premises for such rent and upon such terms as are not unreasonable under the
circumstances and, if the full rental reserved under this Lease (and any of the
costs, expenses or damages indicated below) shall not be realized by Landlord,
Tenant shall be liable for all damages sustained by Landlord, including without
limitation deficiency in rent during any period of vacancy or otherwise; the
costs of removing and storing the property of Tenant or of any other occupant;
the then-remaining unamortized portion of the Improvement Allowance described in
the Work Agreement; all reasonable expenses incurred by Landlord in enforcing
Landlord's remedies, including without limitation reasonable attorneys' fees and
Late Charges as provided herein, and advertising, brokerage fees and expenses of
placing the Premises in first class rentable condition. Landlord, in putting the
Premises in good order or preparing the same for rerental may, at Landlord's
option, make such alterations, repairs, or replacements in the Premises as
Landlord, in its sole judgment, considers advisable and necessary for the
purpose of reletting the Premises, and the making of such alterations, repairs,
or replacements shall not operate or be construed to release Tenant from
liability hereunder as aforesaid.

                  (iii) Any damage or loss of rent sustained by Landlord may be
recovered by Landlord, at Landlord's option, at the time of termination of this
Lease, the time of the reletting, or in separate actions, from time to time, as
said damage shall have been made more easily ascertainable by successive
relettings, or at Landlord's option in a single proceeding deferred until the
expiration of the Term (in which event Tenant hereby agrees that the cause of
action shall not be deemed to have accrued until the date of expiration of said
Term) or in a single proceeding prior to either the time of reletting or the
expiration of the Term. If the Landlord elects to repossess the Premises without
terminating this Lease, then Tenant shall be liable for and shall pay to
Landlord all Rent and other indebtedness accrued to the date of such
repossession, plus Rent required to be paid by Tenant to Landlord during the
remainder of this Lease until the date of expiration of the Term, diminished by
any net sums thereafter received by Landlord through reletting the Premises
during such period (after deducting expenses incurred by Landlord as provided in
Section 16.b.(ii), above). In no event shall Tenant be entitled to any excess of
any Rent obtained by reletting over and above the Rent herein reserved. Actions
to collect amounts due from Tenant as provided in this Section 16(a)(iii) may be
brought from time to time, on one or more occasions, without the necessity of
Landlord's waiting until expiration of this Lease term. Upon termination of this
Lease or repossession of the Premises following a default hereunder, Landlord
shall have no obligation to relet or attempt to relet the Premises or any
portion thereof or to collect rental after reletting; and in the event of
reletting Landlord may relet the whole or any portion of the Premises for any
period, to any tenant, and for any use and purpose on such terms and at such
rentals as Landlord in its exclusive judgment may determine.

         c. Notwithstanding the foregoing, if Landlord terminates this Lease
pursuant to Section 16.b.(i), above, Landlord shall be entitled to recover from
Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and
agreed final damages for Tenant's default, an amount equal to the difference
between (i) all Monthly Base Rent, Additional Rent and other sums which would
t>e payable under this Lease from the date of such demand (or, if it is earlier,
the date to which Tenant shall have satisfied in full its obligations under
Section 16b(ii), above) for what would be the then unexpired Term in the absence
of such termination, and (ii) the fair market rental value of the Premises over
the same period (net of all expenses and all vacancy periods reasonably
projected by Landlord to be incurred in connection with the reletting of the
Premises), with such differential discounted at the rate of five percent (5%)
per annum. Nothing herein shall be construed to affect or prejudice Landlord's
right to prove, and claim in full, unpaid Rent or any other amounts accrued
prior to termination of this Lease.

                                       16
<PAGE>

         d. Notwithstanding anything herein to the contrary, upon the occurrence
of an Event of Default hereunder, Landlord, with or without terminating the
Lease, may immediately reenter and take possession of the Premises and evict
Tenant therefrom, without legal process of any kind, using such force as may be
necessary, without being liable for or guilty of trespass, forcible entry or any
other tort. Landlord's right to exercise such "self-help" remedy shall be in
addition to, and not in limitation of. Landlord's other rights and remedies
hereunder for a breach by Tenant of its obligations under the Lease.

         e. Tenant hereby expressly waives any and all rights of redemption
granted by or under any present of future laws in the event Tenant is evicted or
dispossessed for any cause, or in the event Landlord obtains possession of the
Premises, by reason of the violation by Tenant of any of the covenants and
conditions of this Lease or otherwise. In addition, Tenant hereby expressly
waives any and all rights to bring any action whatsoever against any tenant
taking possession after Tenant has been dispossessed or evicted hereunder, or to
make any such tenant or party to any action brought by Tenant against Landlord.

         f. Landlord and Tenant shall and each does hereby waive trial by jury
in any action, proceeding or counterclaim brought by either of the parties
hereto against the other on any matters whatsoever arising out of or in any way
connected with this Lease or its termination, the relationship of Landlord and
Tenant, Tenant's use or occupancy of the Premises or any claim of injury or
damage and any emergency statutory or any other statutory remedy. In the event
Landlord commences any summary proceeding for nonpayment of Rent or Additional
Rent, or commences any other action or proceeding against Tenant in connection
with this Lease, Tenant will interpose no counterclaim of whatever nature or
description in any such proceeding.

         9. Nothing contained herein shall prevent the enforcement of any claim
Landlord may have against Tenant for anticipatory breach of the unexpired Term.
In the event of a breach or anticipatory breach by Tenant of any of the
covenants or provisions hereof, Landlord shall have the right of injunction and
the right to invoke any remedy allowed at law or in equity as if reentry,
summary proceedings and other remedies were not provided for herein.

         h. In the event of any default by Landlord, Tenant's exclusive remedy
shall be an action for damages (Tenant hereby waiving the benefit of any laws
granting Tenant a lien upon the property of Landlord or upon Rent due Landlord),
but prior to any such action Tenant will give Landlord notice specifying such
default with particularity, and Landlord shall have thirty (30) days after
receipt of such notice in which to cure any such default; provided, however,
that if such default cannot, by its nature, be cured within such period,
Landlord shall not be deemed in default if Landlord shall within such period
commence to cure such default and shall diligently prosecute the same to
completion. Unless and until Landlord fails so to cure any default after notice,
Tenant shall have no remedy or cause of action by reason thereof. All
obligations of Landlord hereunder will be construed as covenants, not
conditions; all such obligations will be binding upon Landlord only during the
period of its ownership of the Building and not thereafter; and no default or
alleged default by Landlord shall relieve or delay performance by Tenant of its
obligations to continue to pay Annual Base Rent and Additional Rent hereunder as
and when the same shall be due.

17.      BANKRUPTCY.

         a. For purposes of this Lease, the following shall be deemed "Events of
Bankruptcy": (i) if a receiver or custodian is appointed for any or all of
Tenant's property or assets, or if there is instituted a foreclosure action on
any of Tenant's property; or (ii) if Tenant files a voluntary petition under 11
U.S.C. Article 101, ET SEQ., as amended (the "Bankruptcy Code"), or under the
insolvency laws of any jurisdiction (the "Insolvency Laws"); or (iii) if there
is filed an involuntary petition against Tenant as the subject debtor under the
Bankruptcy Code or Insolvency Laws, which is not dismissed within thirty (30)
days of filing; or (iv) if Tenant makes or consents to an assignment of its
assets, in whole or in part, for the benefit of creditors, or a common law
composition of creditors; or (v) if Tenant generally is not paying its debts as
its debts become due.

         b. Upon the occurrence of an Event of Bankruptcy, Landlord, at its
option and sole discretion, may terminate this Lease by written notice to Tenant
(subject, however, to applicable provisions of the Bankruptcy Code or Insolvency
Laws during the pendency of any action thereunder). If this Lease is terminated
under this Section 17, Tenant shall immediately surrender and vacate the
Premises, waives all statutory or other notice to quit, and agrees that Landlord
shall have all rights and remedies against Tenant provided in Section 16 in case
of an Event of Default by Tenant.

         c. If Tenant becomes the subject debtor in a case pending under the
Bankruptcy Code (the "Bankruptcy Case"), Landlord's right to terminate this
Lease under this Section 17 shall be subject to the applicable rights (if any)
of the debtor-in-possession or the debtor's trustee in bankruptcy (collectively,
the "Trustee") to assume or assign this Lease as then provided for in the
Bankruptcy Code, however, the Trustee must give to Landlord, and Landlord must
receive, proper written notice of the Trustee's assumption or rejection of this
Lease, within sixty (60) days (or such other applicable period as is provided
pursuant to the Bankruptcy Code, it being agreed that sixty (60) days is a
reasonable period of time for election of an assumption or rejection of this
Lease) after the commencement of the Bankruptcy Case; it being agreed that
failure of the Trustee to give notice of such assumption hereof within said
period shall conclusively and irrevocably constitute the Trustee's rejection of
this Lease and waiver of any right of the Trustee to assume or assign this
Lease. The Trustee shall not have the right to assume or assign this Lease
unless said Trustee (i) promptly and fully cures all defaults under this Lease,

                                       17
<PAGE>

(ii) promptly and fully compensates Landlord and any third party (including
other tenants) for all monetary damages incurred as a result of such default,
and (iii) provides to Landlord "adequate assurance of future performance."
Landlord and Tenant (which term may include the debtor or any permitted assignee
of debtor) hereby agree in advance that "adequate assurance of performance" as
used in this paragraph, shall mean that all of the following minimum criteria
must be met (1) the source of Monthly Base Rent, Additional Rent, and other
consideration due under this Lease, and the financial condition and operating
performance of Tenant, and its guarantor, if any, shall be similar to the
financial condition and operating performance of Tenant as of the Commencement
Date; (2) Trustee or Tenant must pay to Landlord all Monthly Base Rent and
Additional Rent payable by Tenant hereunder in advance, (3) Trustee or Tenant
must agree (by writing delivered to Landlord) that the use of the Premises shall
be used only for the permitted use as stated in this Lease, and that any
assumption or assignment of this Lease is subject to all of the provisions
thereof and will not violate or affect the rights or agreements of any other
tenants or occupants in the Building or of Landlord (including any mortgage or
other financing agreement for the Building, (4) Trustee or Tenant must pay to
Landlord at the time the next Monthly Base Rent is due under this Lease, in
addition to such installment of Monthly Base Rent, an amount equal to the
installments of Monthly Base Rent and Additional Rent due under this Lease for
the next six (6) months of this Lease, said amount to be held by Landlord in
escrow until either Trustee or Tenant defaults in its payment of Monthly Base
Rent and Additional Rent or other obligations under this Lease (whereupon
Landlord shall have the right to draw on such escrowed funds) or until the
expiration of this Lease (whereupon the funds shall be returned to Trustee or
Tenant except to the extent the funds have been drawn and not replaced); and (5)
Trustee or Tenant must agree to pay to Landlord at any time Landlord is
authorized to and does draw on the escrow account the amount necessary to
restore such escrow account to the original level required by clause (4), above.
The criteria stated above are not intended to be exhaustive or all-inclusive and
Landlord may determine that the circumstances of Tenant or of this Lease require
other or further assurances of future performance. In the event Tenant is unable
to: (a) cure its defaults, (b) reimburse Landlord for its monetary damages, (c)
pay the Monthly Base Rent and Additional Rent due under this Lease on time, or
(d) meet that criteria and obligations imposed by (1) through (5), above, then
Tenant hereby agrees in advance that it has not met its burden to provide
adequate assurance of future performance, and this Lease may be terminated by
Landlord in accordance with Section 17b, above.

18. PAYMENT OF TENANTS OBLIGATIONS BY LANDLORD AND UNPAID RENT. All covenants
and agreements to be performed by Tenant under any of the terms of this Lease
shall be performed by Tenant at Tenant's sole cost and expense. If Tenant shall
fail to pay any sum of money, other than Rent, required to be paid by it
hereunder or shall fail to perform any other act on its part to be performed
hereunder, and such failure shall continue beyond any applicable grace period
set forth in this Lease, Landlord may, without waiving or releasing Tenant from
any of its obligations hereunder, make any such payment or perform any such
other required act on Tenant's part. All sums so paid by Landlord, and all
necessary incidental costs, together with interest thereon at four percentage
points (4%) over the Prime Rate then in effect, from the date of such payment by
Landlord, shall be payable by Tenant to Landlord as Additional Rent hereunder,
on demand, and Tenant covenants and agrees to pay any such sums. Landlord shall
have (in addition to any other right or remedy of Landlord hereunder or at law)
the same rights and remedies in the event of the nonpayment thereof by Tenant as
in the case of default by Tenant in the payment of Additional Rent. In addition,
any Rent, including without limitation Annual Base Rent, Additional Rent,
Tenant's Pass-Through Costs and/or Late Charges, which is not paid timely will
accrue interest per annum at four percentage points (4%) over the Prime Rate
from the date such payment is due until the date paid in full (including all
accrued interest)-

19. VOLUNTARY SURRENDER, the voluntary or other surrender of this Lease by
Tenant, or a mutual cancellation thereof, shall not work a merger, and shall, at
the sole option of Landlord, terminate all or any existing subleases or
subtenancies, or may, at the sole option of Landlord, operate as an assignment
to Landlord of any or all such subleases or subtenancies; provided however, that
if Landlord elects to treat such termination as an assignment of any such
sublease, Landlord shall have no obligation or liability to the subtenant
thereunder for any claim, damage or injury which accrued prior to the date of
surrender or mutual cancellation hereunder.

20. ABANDONMENT OF PERSONAL PROPERTY. Upon the expiration of the Term or earlier
termination of this Lease, Tenant shall forthwith remove Tenant's goods and
effects and those of any other persons claiming through or under Tenant, or
subtenancies assigned to it, and quit and deliver the Premises to the Landlord
peaceably and quietly. Goods and effects not removed by Tenant after termination
of this Lease (or within forty-eight (48) hours after a termination by reason of
Tenant's default) shall be considered abandoned. Landlord shall give Tenant
notice of right to reclaim abandoned property pursuant to applicable local law
and may thereafter dispose of the same as Landlord deems expedient, including
public or private sale and/or storage in a public warehouse or elsewhere at the
sole cost, and for the account, of Tenant, and Tenant shall promptly upon demand
reimburse Landlord for any expenses incurred by Landlord in connection
therewith, including reasonable attorneys' fees.

21. HOLD-OVER, if Tenant shall not immediately surrender the Premises at the
expiration of the Term then Tenant shall, by virtue of the provisions of this
Section 21, become a tenant by the month. In such event Tenant shall be required
to pay (i) during the first sixty (60) days of such holdover by Tenant, One
Hundred Fifty Percent (150%) of the amount of the Monthly Base Rent in effect
during the last month of the Term and (ii) commencing on the sixty-first (61st)
day of such hold over by Tenant, twice the amount of the Monthly Base Rent in
effect during the last month of the Term of this Lease, escalated in accordance
with the provisions hereof, together, in each instance, with all Additional Rent
in effect during the last month of the Term, commencing said monthly tenancy
with the first day next after the end of the

                                       18
<PAGE>

Term; and said Tenant, as a month-to-month tenant, shall be subject to all of
the conditions and covenants of this Lease as though the same had originally
been a monthly tenancy, except as otherwise provided above with respect to the
payment of Rent. Each party hereto shall give to the other at least thirty (30)
days' written notice to quit the Premises, except in the event of non-payment of
Rent provided for herein when due, or of the breach of any other covenant by the
said Tenant, in which event, Tenant shall not be entitled to any notice to quit,
the usual thirty (30) days' notice to quit being expressly waived; provided,
however, that in the event that Tenant shall hold over after expiration of the
Term, and if Landlord shall desire to regain possession of said Premises
promptly at the expiration of the Term, then at any time prior to the acceptance
of the Rent by Landlord from Tenant, as a monthly tenant hereunder. Landlord, at
its election or option, may reenter and take possession of the Premises
forthwith, without process, or by any legal action or process in the
Commonwealth of Virginia.

22.      INTENTIONALLY OMITTED.

23.      PARKING.

         a. Tenant shall be provided, without charge, twenty-five (25)
unreserved parking spaces (or 3.22 spaces per 1,000 r.s.f. of the Premises then
being leased by Tenant) located on the surface lot adjacent to the Building, for
use by Tenant's employees, agents and guests.

         b. Tenant agrees that it and its employees shall observe reasonable
safety precautions in the use of the surface parking lot, and shall at all times
abide by all rules and regulations promulgated by Landlord or the parking
operator governing the use of the surface parking lot. Tenant understands and
agrees that Landlord does not assume any responsibility for any damage or loss
to any automobiles parked on the surface parking lot, or to any personal
property located therein or thereon, or for any injury, sustained by any person
in or about the surface parking lot.

24. NOTICES. Any and all notices or demands required or permitted herein shall
be in writing and served (a) personally, (b) by certified mail, return receipt
requested, or (c) by guaranteed overnight courier, at the addresses provided in
Section 1.g. above. If served personally, service shall be conclusively deemed
made at the time of such delivery. If served by certified mail, service shall be
conclusively deemed made forty-eight (48) hours after the deposit thereof in the
United States mail, postage prepaid, pursuant to this Section 24. If served by
overnight courier, service shall be conclusively deemed made one (1) business
day after deposit with such courier. Either party may specify a different
address according to the terms of this Section 24.

25. BROKERS. Landlord and Tenant recognize Insignial ESG, Inc. and CB Richard
Ellis (collectively, the "Brokers") as the sole brokers with respect to this
Lease and Landlord agrees to be responsible for the payment of any leasing
commissions owed to the aforesaid Brokers in accordance with the terms of
separate commission agreements entered into between Landlord and each of said
Brokers. Landlord and Tenant each represents and warrants to the other that,
except for the Brokers, no other broker has been employed in carrying on any
negotiations relating to this Lease and shall each indemnify and hold harmless
the other from any claim for brokerage or other commission arising from or out
of any breach of the foregoing representation and warranty.

26.      ENVIRONMENTAL CONCERNS.

         a. Tenant, its agents, employees, contractors or invitees shall not (i)
cause or permit any Hazardous Materials (hereinafter defined) to be brought
upon, stored, used or disposed on, in or about the Premises and/or the Building,
or (ii) knowingly permit the release, discharge, spill or emission of any
Hazardous Material in or from the Premises.

         b. Tenant hereby agrees that it is and shall be fully responsible for
all costs, expenses, damages or liabilities (including, but not limited to those
incurred by Landlord and/or its mortgagee) which may occur from the use,
storage, disposal, release, spill, discharge or emissions of Hazardous Materials
by Tenant whether or not the same may be permitted by this Lease. Tenant shall
defend, indemnify and hold harmless Landlord, its mortgagee and its agents from
and against any claims, demands, administrative orders, judicial orders,
penalties, fines, liabilities, settlements, damages, costs or expenses
(including, without limitation, reasonable attorney and consultant fees, court
costs and litigation expenses) of whatever kind or nature, known or unknown,
contingent or otherwise, arising out of or in any way related to the use,
storage, disposal, release, discharge, spill or emission of any Hazardous
Material, or the violation of any Environmental Laws, by Tenant, its agents,
employees, contractors or invitees. The provisions of this Section 26 shall be
in addition to any other obligations and liabilities Tenant may have to Landlord
at law or in equity and shall survive the transactions contemplated herein or
any termination of this Lease.

         c. As used in this Lease, the term "Hazardous Materials" shall include,
without limitation:

                  (i) those substances included within the definitions of
         "hazardous substances", "hazardous materials," toxic substances," or
         "solid waste" in the Comprehensive Environmental Response Compensation
         and Liability Act of 1980 (42 U.S.C.ss.9601 EL SEQ.) ("CERCLA"), as
         amended by Superfund Amendments and Reauthorization Act of 1986
         ("SARA"), the Resource

                                       19
<PAGE>

         Conservation and Recovery Act of 1976 ("RCRA"), and the Hazardous
         Materials Transportation Act, and in the regulations promulgated
         pursuant to said laws, all as amended;

               (ii) those substances listed in the United States Department of
         Transportation Table (49 CFR 172.101 and amendments thereto) or by the
         Environmental Protection Agency (of any successor agency) as hazardous
         substances (40 CFR Part 302 and amendments thereto); and

                  (iii) any material, waste or substance which is (A) petroleum,
         (B) asbestos, (C) polychlorinated biphenyl, (D) designated as a
         "hazardous substance" pursuant to Section 311 of the Clean Water Act,
         33 U.S.C.ss.1251 ET SEQ. (33 U.S.C.ss.1321) or listed pursuant to
         Section of the Clean Water Act (33 U.S.C. ss.1317); (E) flammables or
         explosives; or (F) radioactive materials.

         d. All federal, state or local laws, statutes, regulations, rules,
ordinances, codes, standards, orders, licenses and permits of any governmental
authority or issued or promulgated thereunder shall be referred to as the
"Environmental Laws".

27. LANDLORD'S LIEN. TO secure the payment of all Rent and Additional Rent due
and to become due hereunder and to assure the faithful performance of all of the
other covenants of this Lease required to be performed by Tenant, Tenant hereby
grants to Landlord an express contractual lien on and security interest in all
property, chattels or merchandise which may be placed in the Premises and also
upon all proceeds of any insurance which may accrue to Tenant by reason of
damage to or destruction of any such property, chattels or merchandise. All
exemption laws are hereby waived by Tenant. Such contractual lien and security
interest are: granted in addition to Landlord's statutory and common law liens
and shall be cumulative thereto; and may be foreclosed with or without court
proceedings, by public or private sale, upon not less than three (3) days' prior
notice. Landlord shall have the right to become purchaser upon being the highest
bidder at such sale. Upon request of Landlord, Tenant shall execute Uniform
Commercial Code financing statements relating to the aforesaid security
interest.

28. RULES AND REGULATIONS. Tenant shall at all times comply with the rules and
regulations set forth in EXHIBIT D attached hereto and with any reasonable
additions thereto and modifications thereof adopted from time to time by
Landlord; Tenant shall be given five (5) days' written notice of any such
additions and modifications. Each such rule or regulation shall be deemed to be
a covenant of this Lease to be performed and observed by Tenant.

29. QUIET ENJOYMENT. Landlord covenants that, if Tenant is not in default
hereunder, Tenant shall at all times during the Term peaceably and quietly have,
hold and enjoy the Premises without disturbance from Landlord, subject to the
terms of this Lease and to the rights of the parties presently or hereinafter
secured by any deed of trust or mortgage against the Building.

30.      MISCELLANEOUS PROVISIONS.

         a. Time is of the essence with respect to each and every obligation
under this Lease.

         b. The waiver by Landlord or Tenant of any term, covenant or condition
herein contained shall not be deemed to be a waiver of such term, covenant or
condition of any prior or subsequent breach of the same or any other term,
covenant or condition herein contained. The subsequent acceptance of rent
hereunder by Landlord shall not be deemed to be a waiver of any prior breach by
Tenant of any term, covenant or condition of this Lease, other than the failure
of Tenant to pay the particular rental so accepted, regardless of Landlord's
knowledge of such prior breach at the time of acceptance of such rent.

         c. In the event of any action or proceeding brought by either party
against the other under this Lease, the prevailing party shall be entitled to
recover from the other party the fees of its attorneys in such action or
proceeding in such amount as the court may judge to be reasonable for such
attorneys' fees.

         d. Except as expressly otherwise provided in this Lease, all of the
provisions of this Lease shall bind and inure to the benefit of the parties
hereto and to their heirs, successors, representatives, executors,
administrators, transferees and assigns. The term "Landlord," as used herein,
shall mean only the owner of the Building and the Land or of a lease of the
Building and the Land, at the time in question, so that in the event of any
transfer or transfers of title to the Building and the Land, or of Landlord's
interest in a lease of the Building and the Land, the transferor shall be and
hereby is relieved and freed of all obligations of Landlord under this Lease
accruing before such transfer, and it shall be deemed, without further
agreement, that such transferee has assumed and agreed to perform and observe
all obligations of Landlord herein during the period it is the holder of
Landlord's interest under this Lease.

         e. At Landlord's request, Tenant will execute a memorandum of this
Lease in recordable form setting forth such provisions hereof as Landlord deems
desirable. Further, at Landlord's request, Tenant shall acknowledge before a
notary public its execution of this Lease, so that this Lease shall be in form
for recording. The cost of recording this Lease or memorandum thereof shall be
borne by Tenant.

         f. Notwithstanding any provision to the contrary herein, Tenant shall
look solely to the estate and property of Landlord in and to the Land and the
Building in the event of any claim against

                                       20
<PAGE>

Landlord arising out of or in connection with this Lease, the relationship of
Landlord and Tenant, or Tenant's use of the Premises, and Tenant agrees that the
liability of Landlord arising out of or in connection with this Lease, the
relationship of Landlord and Tenant, or Tenant's use of the Premises, shall be
limited to such estate and property of Landlord in and to the Land and the
Building. No properties or assets of Landlord other than the estate and property
of Landlord in and to the Building and no property owned by any partner of
Landlord shall be subject to levy, execution or other enforcement procedures for
the satisfaction of any judgment (or other judicial process) or for the
satisfaction of any other remedy of Tenant arising out of or in connection with
this Lease, the relationship of Landlord and Tenant or Tenant's use of the
Premises.

         g. Landlord and Landlord's agents have made no representations or
promises with respect to the Building, the Land or the Premises except as herein
expressly set forth.

         h. Landlord and Tenant shall be excused from performing an obligation
or undertaking provided for in this Lease so long as such performance is
prevented or delayed, retarded or hindered by an Act of God, force majeure,
fire, earthquake, flood, explosion, action of the elements, war, invasion,
insurrection, riot, mob violence, sabotage, inability to procure or a general
shortage of labor, equipment, facilities, materials or supplies in the open
market, failure of transportation, strike, lockout, action of labor unions, a
taking by eminent domain, requisition, laws orders of government, or of civil,
military or naval authorities, or any other cause whether similar or dissimilar
to the foregoing, not within the reasonable control of Landlord or Tenant, as
applicable, including reasonable delays for adjustments of insurance
(collectively, "Force Majeure"); provided, however, that no such event or cause
shall relieve Tenant of its obligations hereunder to make full and timely
payments of Rent as provided herein.

         i. Tenant hereby elects domicile at the Premises for the purpose of
service of all notices, writs of summons or other legal documents or process in
any suit, action or proceeding which Landlord or any mortgagee may undertake
under this Lease.

         j. Landlord shall not be liable to Tenant for any damage caused by
other tenants or persons in the Building or caused by operations of others in
the construction of any private, public or quasi-public work.

         k. If in this Lease it is provided that Landlord's consent or approval
as to any matter will not be unreasonably withheld or delayed, and it is
established by a court or body having final jurisdiction thereover that Landlord
has been unreasonable, the sole effect of such finding shall be that Landlord
shall be deemed to have given its consent or approval, but Landlord shall not be
liable to Tenant in any respect for money damages or expenses incurred by Tenant
by reason of Landlord having withheld its consent. Nothing contained in this
paragraph shall be deemed to limit Landlord's right to give or withhold consent
unless such limitation is expressly contained in the paragraph to which such
consent pertains.

         l. If any governmental entity or authority hereafter imposes a tax or
assessment upon or against any of the rent or other charges payable by Tenant to
Landlord hereunder (whether such tax takes the form of a lease tax, sales tax or
other tax), Tenant shall be responsible for the timely payment thereof. Unless
Landlord and Tenant otherwise agree in writing with respect to the payment
thereof, Tenant shall pay the applicable tax to Landlord in monthly installments
on the date upon which Tenant pays to Landlord the installments of Monthly Base
Rent due under this Lease.

         m. This Lease and the Exhibits hereto constitute the entire agreement
between the parties, and supersedes any prior agreements or understandings
between them. This Lease is not effective until executed and delivered by
Landlord and Tenant and approved by any current mortgagee of the Building and/or
the Project Land. The provisions of this Lease may not be modified in any way
except by written agreement signed by both parties.

         n. This Lease shall be subject to and construed in accordance with the
laws of the Commonwealth of Virginia.

         o. Landlord shall provide an electronic access system with computerized
card access at the front entrance of the Building. Landlord shall provide Tenant
with twelve (12) access cards free of charge. Any cards requested by Tenant in
excess of twelve (12) shall be provided at Tenant's sole cost and expense.
Landlord shall not be responsible for the quality, action or inaction of the
Building's or Premises' access system or for any damage or injury to Tenant, its
employees, agents, invitees or their respective property resulting from any
failure, action or inaction of the Building's and/or Premises' access systems.

                                       21
<PAGE>

         IN WITNESS WHEREOF, duly authorized representatives of Landlord and
Tenant have executed this Deed of Lease under seal on the day and year first
above written.

            SMII FAIRFAX, LLC. a Delaware limited liability company

     /S/ MLA                        BY: /S/ PETER E. POTRIKUS
    [INITIALS]                          ---------------------
                                         Name: Peter E. Potrikus
                                         Title:  Vice President

WITNESS:

                                    TENANT:

                                    EUROTECH, LTD., a District of Columbia
                                      corporation

/S/ EDMOND B. FROST                 By:
                                         Name:
                                         Title:

                                     LIST OF EXHIBITS

                       EXHIBIT A:   Floor Plan of Premises
                       EXHIBIT B:   Work Agreement
                       EXHIBIT C:   Declaration of Commencement Date
                       EXHIBIT D:   Rules and Regulations

                                       22
<PAGE>

                                    EXHIBIT A

                             FLOOR PLAN OF PREMISES

                        [FLOOR PLAN GRAPH APPEARS HERE]

                                WILLOWWOOD PLAZA
                                   SUITE 220

<PAGE>

                                    EXHIBIT B

                                 WORK AGREEMENT

         This Work Agreement (the 'Work Agreement") is attached to and made a
part of that certain Deed of Lease (the "Lease") dated August _, 2000, by and
between SMII FAIRFAX, LLC, as landlord ("Landlord") and EUROTECH, LTD., as
tenant ('Tenant") for the premises (the "Premises") described therein in the
building known as 10306 Eaton Place, Fairfax, Virginia (the "Building"). It is
the intent of this Work Agreement that Tenant shall be permitted freedom in the
design and layout of the Premises, consistent with applicable building codes and
requirements of law, including without limitation the Americans With
Disabilities Act, as amended, and with sound architectural and construction
practice in first-class office buildings, provided that neither the design nor
the implementation of the Tenant Improvements (hereinafter defined) shall cause
any interference to the operation of the Building's HVAC, mechanical, plumbing,
life safety, electrical or other systems or to other Building operations or
functions, nor shall they increase maintenance or utility charges for operating
the Building. Capitalized terms not otherwise defined in this Work Agreement
shall have the meanings set forth in the Lease. In the event of any conflict
between the terms hereof and the terms of the Lease, the terms hereof shall
prevail for the purposes of design and construction of the Tenant Improvements.

         A.       LEASEHOLD IMPROVEMENTS.

                  1- Improvements. Except as set forth immediately below,
Landlord shall not be obligated to make any improvements in or to the Premises
and Tenant shall accept the Premises in "as is" condition as of the Commencement
Date.

                  2. Tenant Improvements. Tenant shall furnish and install in
the Premises in accordance with the terms of this Work Agreement, the
improvements set forth in the Tenant's Plans (hereinafter defined) which have
been approved by Landlord in accordance with Paragraph B-2, below (the "Tenant
Improvements"). The parties agree that (a) no furniture (including systems
furniture) or equipment shall be included in the Tenant Improvements; and (b) no
delay in installing Tenant's furniture (including systems furniture) or
equipment in the Premises shall delay or otherwise affect the Commencement Date
under the Lease. The costs of all design, space planning, and architectural and
engineering work for or in connection with the Tenant Improvements, including
without limitation all drawings, plans, specifications, permits or other
approvals relating thereto, and all insurance, bonds and other requirements and
conditions hereunder, and all costs of demolition and construction, including
supervision thereof, shall be at Tenant's sole cost and expense, subject to the
application of the Space Plan Allowance and the Improvement Allowance in
accordance with the terms of this Work Agreement.

         B.       PLANS AND SPECIFICATIONS

                  1. Space Planner. Tenant has retained the services of (the
"Space Planner"), who will design the Premises and prepare the Contract
Documents (hereinafter defined). The Space Planner shall meet with the
Construction Supervisor (hereinafter defined) from time to time to obtain
information about the Building and to insure that the improvements envisioned in
the Contract Documents do not interfere with and/or adversely affect the
Building or any systems therein. The Space Planner and the Engineers
(hereinafter defined), shall prepare all plans and specifications described in
Paragraph B.2, below, in conformity with the base Building plans and systems,
and the Space Planner shall coordinate its plans and specifications with the
Engineers and the Construction Supervisor. All fees of the Space Planner and the
Engineers shall be borne solely by Tenant, subject to application of the Space
Plan Allowance as hereinafter provided.

                  2. Engineers. Tenant shall retain the services of mechanical,
electrical, plumbing and structural engineers approved by Landlord in its
reasonable discretion (the "Engineers") to: (i) design the type, number and
location of all mechanical systems in the Premises, including without limitation
the heating, ventilating and air conditioning system therein, and to prepare all
of the mechanical plans; (ii) assist Tenant and the Space Planner in connection
with the electrical design of the Premises, including the location and capacity
of light fixtures, electrical receptacles and other electrical elements, and to
prepare all of the electrical plans; (iii) assist Tenant and the Space Planner
in connection with plumbing-related issues involved in designing the Premises
and to prepare all of the plumbing plans; and (iv) assist Tenant and the Space
Planner in connection with the structural elements of the Space Planner's design
of the Premises and to prepare all the structural plans. All fees of the
Engineers shall be borne solely by Tenant, subject to application of the
Improvement Allowance as hereinafter provided.

                  3. TIME SCHEDULE.

                           a. On or before September 8, 2000, Tenant shall
furnish to Landlord for its review and approval a proposed detailed space plan
for the Tenant Improvements (the "Final Space Plan") prepared by the Space
Planner, in consultation with the Construction Supervisor and the Engineers. The
Final Space Plan shall contain the information and otherwise comply with the
requirements therefor described in SCHEDULE B-1 attached hereto. Landlord shall
advise Tenant of Landlord's approval or disapproval of the Final Space Plan
within seven (7) days after Tenant submits the Final Space Plan to Landlord.
Tenant shall revise the proposed Final Space Plan to meet Landlord's objections,
if any, and resubmit the Final Space Plan to Landlord for its review and
approval within five (5) days after Landlord notifies Tenant of Landlord's
objections, if any.

<PAGE>

                           b. Within ten (10) days following Landlord's approval
of the Final Space Plan, Tenant shall furnish to Landlord for its review and
approval, all architectural plans, working drawings and specifications (the
"Contract Documents") necessary and sufficient (i) for the construction of the
Tenant Improvements in accordance with the Final Space Plan; and (ii) to enable
the Contractor (hereinafter defined) to obtain a building permit for the
construction of the Tenant Improvements. The Contract Documents shall contain
the information and otherwise comply with the requirements therefore described
in SCHEDULE B-2 attached hereto. Landlord shall advise Tenant of Landlord's
approval or disapproval of the Contract Documents, or any of them, within seven
(7) days after Tenant submits the Contract Documents to Landlord. Tenant shall
revise the Contract Documents to meet Landlord's objections, if any, and
resubmit the Contract Documents to Landlord for its review and approval within
five (5) business days after Landlord notifies Tenant of Landlord's objections,
if any. Notwithstanding anything herein to the contrary, approval by Landlord of
the Contract Documents shall not constitute an assurance by Landlord that the
Contract Documents: (A) satisfy applicable code requirements, (B) are sufficient
to enable the Contractor to obtain a building permit for the undertaking of the
Tenant Improvements in the Premises, or (C) will not interfere with, and/or
otherwise adversely affect, base Building systems.

                           c. The Final Space Plan and the Contract Documents
are referred to collectively herein as the Tenant's Plans."

                           d. The Tenant's Plans shall be prepared in accordance
with a Data Cadd or convertible DXF format for working drawings in conformity
with the base Building plans and systems and with information furnished by and
in coordination with the Construction Supervisor and Engineers. Tenant's Plan
shall comply with all applicable building codes, laws and regulations (including
without limitation the Americans With Disabilities Act, as amended), shall not
interfere with or require any changes to or modifications of the base Building's
HVAC, mechanical, electrical, plumbing, life safety or other systems or to other
Building operations or functions, and shall not increase maintenance or utility
charges for operating the Building in excess of the standard requirements for
normal first-class office buildings in the Hernon, Virginia area.

                  4. Base Building Changes. If Tenant requests work to be done
in the Premises or for the benefit of the Premises that necessitates revisions
or changes in the design or construction of the base Building or Building
systems, any such changes shall be subject to prior written approval of
Landlord, in its sole discretion, and Tenant shall be responsible for all costs
and delays resulting from such design revisions or construction changes,
including architectural and engineering charges, and any special permits or fees
attributed thereto. Before any such design and/or construction changes are made,
Tenant shall pay to Landlord the full costs incurred by Landlord in connection
with such changes including without limitation the Construction Supervision Fee
(hereinafter defined) attributable thereto.

                  5. CHANGES.

                           a. In the event that Tenant requests any changes to
the Final Space Plan or the Contract Documents after Landlord has approved same,
or if it is determined that the Contract Documents prepared in accordance with
the Final Space Plan deviate from the requirements of applicable law, or
interfere with, and/or otherwise adversely affect, base Building systems, Tenant
shall be responsible for all costs and expenses and for all delay resulting
therefrom, including without limitation costs or expenses relating to (i) any
additional architectural or engineering services and related design expenses,
(ii) any changes to materials in process of fabrication, (iii) cancellation or
modification of supply or fabricating contracts, or (iv) removal or alteration
of work or plans completed or in process. In addition, Tenant shall pay Landlord
or, at Landlord's direction, the Construction Supervisor (hereinafter defined),
a change order fee equal to five percent (5%) of any costs or expenses charged
in connection with a change or modification of the Contract Documents.

                           b. No changes shall be made to the Contract Documents
without the prior written approval of Landlord, which approval shall not be
unreasonably withheld, conditioned or delayed except to the extent such change
affects the base Building or Building systems. Landlord shall not be responsible
for delay in occupancy by Tenant, nor shall the Commencement Date shall be
delayed, because of any changes to the Final Space Plan or the Contract
Documents after approval by Landlord, or because of delay caused by or
attributable to any deviation from applicable code requirements contained in the
Contract Documents. Tenant shall be required to pay the costs incurred in
connection with any changes to the Contract Documents or Final Space Plan to
Landlord, in full, within ten (10) days after invoice.

         C.       COST OF TENANT IMPROVEMENTS

                  1. Construction Costs. All costs of design and construction of
the Tenant Improvements, including without limitation the costs of all space
planning, architectural and engineering work related thereto, all governmental
and quasi-governmental approvals and permits required therefor, all demolition
costs, all direct and indirect construction costs, insurance, bonds and other
requirements, any changes and the Construction Supervision Fee (collectively,
"Construction Costs"), shall be paid by Tenant, subject, however, to the
application of the Improvement Allowance described in Paragraph C.2 below, not
previously disbursed pursuant to this Work Agreement (collectively, the
"Available Allowance").

                  2. Improvement Allowance. Provided that Tenant has fully
performed all of its obligations under this Work Agreement and the Lease,
Landlord agrees to provide to Tenant an

                               EXHIBIT B. PAGE 2
<PAGE>

allowance (the "Improvement Allowance") in the amount of up to Fifteen Thousand
Seven Hundred Twenty-Two Dollars ($15,722.00) (Two Dollars ($2.00) per rentable
square foot of the Premises), to be applied solely to the Construction Costs.
Subject to the provisions of Paragraph C.4, below, the Construction Costs shall
be reimbursed by Landlord to Tenant from the Available Allowance, as invoices
therefor are rendered to Landlord as and when Construction Costs are actually
incurred by Tenant; provided, however, that Landlord shall have received partial
lien waivers and such other documentation as Landlord may require from the party
requesting such payment.

                  3. Costs Exceeding Available Allowance. All Construction Costs
outstanding upon exhaustion of the Space Plan Allowance and Improvement
Allowance shall be borne exclusively by Tenant, and Tenant agrees to indemnify
Landlord from and against any such costs. All amounts payable by Tenant pursuant
to this Work Agreement shall be deemed to be Additional Rent for purposes of the
Lease. If required by Landlord, Tenant shall provide evidence satisfactory to
Landlord that Tenant has sufficient funds available to pay all Construction
Costs in excess of the Space Plan Allowance and Improvement Allowance.

                  4. Disbursement of Improvement Allowance. Not more than once
each calendar month, Tenant shall present to Landlord Tenant's request for
payment ("Draw Request") for such Tenant Improvements work which has been
completed to date. Each Draw Request shall include Tenant's certification that
the Tenant Improvements covered thereby have been completed, and shall be
substantiated by invoices or other evidence of payment for such Tenant
Improvements. Within thirty (30) days of Landlord's receipt of a complete and
correct Draw Request, Landlord shall make payment to Tenant (or to the
Contractor or Tenant's vendors, as hereinafter provided).

                  (i) All Draw Requests covering construction work shall be
                  accompanied by the AIA Application and Certificate for Payment
                  (AIA Documents G702 and G703), certified by Tenant's
                  architect, and covering only such work as is actually
                  installed in the Premises. All Certificates for Payment shall
                  include full, partial, or conditional releases of lien, as the
                  case may be, and other such documentation as Landlord may
                  reasonably request. Prior to substantial completion of Tenant
                  Improvements, all Certificates for Payment shall include
                  retainage of not less than ten percent (10%) of the value of
                  the work in place.

                  (ii) In the case of invoices greater than Five Thousand
                  Dollars ($5,000.00), Tenant may request that Landlord make
                  payment directly to the Contractor, or to any supplier or
                  vendor involved in the construction of the Tenant
                  Improvements. Any such request(s) shall be included in the
                  applicable Draw Request, and shall be accompanied by the
                  vendor's original invoice for the work.

                  (iii) In the event that Tenant is in default of the Lease,
                  Landlord shall have no obligation to make any disbursement of
                  the Improvement Allowance, until such time as Tenant has cured
                  the default.

                  (iv) Landlord shall have the right, but not the obligation, to
                  pay the Contractor or any workers, material and service
                  suppliers, and all other persons who have performed work or
                  supplied materials or services in connection with Tenant
                  Improvements if Tenant has failed to do so, and Tenant shall
                  pay Landlord on demand the amount Landlord has so paid (and
                  such amount shall constitute Additional Rent under the Lease),
                  unless such payment is made by Landlord prior to the
                  disbursement of ninety percent (90%) of the Improvement
                  Allowance, in which case the amount of such payment shall be
                  deducted from the Improvement Allowance.

         D.       CONSTRUCTION

                  1. Selection of General Contractor. Once Landlord has approved
the Contract Documents, Tenant shall prepare a bid package ('Bid Package"),
which Bid Package shall be subject to Landlord's approval in its reasonable
discretion. Tenant shall submit the Bid Package to at least three (3) general
contractors selected by Tenant and approved by Landlord, such approval not to be
unreasonably withheld (the "Approved Bidders"), in order to obtain from such
Approved Bidders market rate, fixed price bids (the "Bid Price") for the
contract for construction of the Tenant Improvements. Within three (3) business
days after Tenant receives bids from those Approved Bidders which timely submit
conforming bids, Tenant shall (a) discuss with the Approved Bidders the bids
they submitted; (b) select the contractor ("Contractor") which will undertake
construction of the Tenant Improvements from among the Approved Bidders
submitting conforming bids; and (c) enter into the Construction Contract
(hereinafter defined) and begin construction of the Tenant Improvements.

                  2. Construction Supervision. All Tenant Improvements shall be
performed by the Contractor selected in accordance with this Work Agreement.
Landlord shall retain LPC Commercial Services, Inc. ("Construction Supervisor")
as Landlord's construction supervisor in connection with the construction of the
Tenant Improvements, and Tenant shall pay the Construction Supervisor a
construction supervision fee ("Construction Supervision Fee") equal to five
percent (5.0%) of the total Construction Costs (excluding design and
architectural fees) incurred in connection with the Tenant Improvements, to
cover the costs of coordination and supervision of the Tenant Improvements work.
The Construction Supervision Fee shall be deducted from the Improvement
Allowance.

                               EXHIBIT B, PAGE 3
<PAGE>

                  3. LANDLORD INSPECTION. Landlord and its representatives are
authorized by Tenant to make periodic inspections of the Premises during
construction of the Tenant Improvements to examipe the work being performed and
to discuss with the Contractor anything having to do with the Tenant
Improvements, the Building and/or the base Building systems. The Construction
Contract shall specify that the Contractor shall cooperate with Landlord and its
representatives, including the Construction Supervisor, in connection with the
undertaking of the Tenant Improvements, and that the Contractor shall provide
to, and discuss with, Landlord and its representatives whatever information that
Landlord reasonably requires.

                  4. DELAYS, if Tenant shall be delayed in substantially
completing the Tenant Improvements for any reason whatsoever, such delay (a
'Tenant Delay") shall not postpone or defer the Commencement Date or Tenant's
obligations under this Lease.

         E. Contractor's Rules and Regulations. The Contractor and all
subcontractors, vendors, and materialmen who participate in the construction of
the Tenant Improvements shall observe all rules and regulations (the
"Construction Rules and Regulations") promulgated by Landlord in connection with
the performance of work in the Building, attached hereto as SCHEDULE B-3.

         F. TENANT'S AGENT Tenant hereby designates Conrad DeLateur, whose
address is 1216 16th Street, N.W., Suite 200, Washington, D.C. 20036, to act as
Tenant's agent for purposes of authorizing and executing any and all documents,
workletters or other writings and changes thereto needed to effect this Work
Agreement, and any and all changes, additions or deletions to the work
contemplated herein, and Landlord shall have the right to rely on any documents
executed by such authorized party.

                                LIST OF SCHEDULES

                 SCHEDULE B-1  REQUIREMENTS FOR FINAL SPACE PLAN
                 SCHEDULE B-2  REQUIREMENTS FOR CONTRACT DOCUMENTS
                 SCHEDULE B-3  CONSTRUCTION RULES AND REGULATIONS

                               EXHIBIT B, PAGE 4
<PAGE>

                                  SCHEDULE B-1

                        REQUIREMENTS FOR FINAL SPACE PLAN

         Floor plans, together with related information for mechanical,
electrical and plumbing design work, showing partition arrangement and reflected
ceiling plans (three (3) sets), including without limitation the following
information:

         a.       identify the location of conference rooms and density of
                  occupancy;

         b.       indicate the density of occupancy for all rooms;

         c.       identify the location of any food service areas or vending
                  equipment rooms;

         d.       identify areas, if any, requiring twenty-four (24) hour air
                  conditioning;

         e.       indicate those partitions that are to extend from floor to
                  underside of structural slab above or require special
                  acoustical treatment;

         f.       identify the location of rooms for, and layout of, telephone
                  equipment other than building core telephone closet;

         g.       identify the locations and types of plumbing required for
                  toilets (other than core facilities), sinks, drinking
                  fountains, etc.;

         h.       indicate light switches in offices, conference rooms and all
                  other rooms in the Premises;

         i.       indicate the layouts for specially installed equipment,
                  including computer and duplicating equipment, the size and
                  capacity of mechanical and electrical services required and
                  heat rejection of the equipment;

         j.       indicate the dimensioned location of: (A) electrical
                  receptacles (one hundred twenty (120) volts), including
                  receptacles for wall clocks, and telephone outlets and their
                  respective locations (wall or floor), (B) electrical
                  receptacles for use in the operation of Tenant's business
                  equipment which requires two hundred eight (208) volts or
                  separate electrical circuits, (C) electronic calculating and
                  CRT systems, etc., and (D) special audio-visual requirements;

         k.       indicate proposed layout of sprinkler and other life safety
                  and fire protection equipment, including any special equipment
                  and raised flooring;

         l.       indicate the swing of each door;

         m.       indicate a schedule for doors and frames, complete with
                  hardware, if applicable; and

         n.       indicate any special file systems to be installed.

<PAGE>

                                  SCHEDULE B-2

                       REQUIREMENTS FOR CONTRACT DOCUMENTS

         Final architectural detail and working drawings, finish schedules and
related plans (three (3) reproducible sets) including without limitation the
following information and/or meeting the following conditions:

         a.       materials, colors and designs of wallcoverings, floor
                  coverings and window coverings and finishes;

         b.       paintings and decorative treatment required to complete all
                  construction;

         c.       complete, finished, detailed mechanical, electrical, plumbing
                  and structural plans and specifications for the Tenant
                  Improvements, including but not limited to the fire and life
                  safety systems and all work necessary to connect any special
                  or non-standard facilities to the Building's base mechanical
                  systems;

         d.       all final drawings and blueprints must be drawn to a scale of
                  one-eighth (1/8) inch to one (1) foot. Any architect or
                  designer acting for or on behalf of Tenant shall be deemed to
                  be Tenant's agent and authorized to bind Tenant in all
                  respects with respect to the design and construction of the
                  Premises;

         e.       for all new construction, Tenant shall purchase from Landlord
                  (or its suppliers) and install in the Premises the following
                  building standard equipment and materials: (1) ceiling tiles
                  and suspension system, (2) diffusers, (3) doors (interior and
                  exterior) and (4) door frames and hinges; and

         f.       notwithstanding anything to the contrary set forth herein, in
                  the Work Agreement or in the Lease, Tenant shall not request
                  any work which would: (1) require changes to structural
                  components of the Building or the exterior design of the
                  Building; (2) require any material modification to the
                  Building's mechanical installations or installations outside
                  the Premises; (3) not comply with all applicable laws, rules,
                  regulations and requirements of any governmental department
                  having jurisdiction over the construction of the Building
                  and/or the Premises, including specifically, but without
                  limitation, the Americans With Disabilities Act, as amended;
                  (4) be incompatible with the building plans filed with the
                  appropriate governmental agency from which a building permit
                  is obtained for the construction of the Tenant Improvements or
                  with the occupancy of the Building as a first- class office
                  building; or (5) delay the completion of the Premises or any
                  part thereof. Tenant shall not oppose or delay changes
                  required by any governmental agency affecting the construction
                  of the Building and/or the Tenant Improvements in the
                  Premises.

<PAGE>

                                  SCHEDULE B-3

                       CONSTRUCTION RULES AND REGULATIONS

1.       Tenant and/or the general contractor will supply Landlord with a copy
         of all permits prior to the start of any work.

2.       Tenant and/or the general contractor will post applicable permits on a
         wall of the construction site while work is being performed.

3.       Public area corridor, and carpet, is to be protected by plastic runners
         or a series of walk-off mats from the elevator to the suite under
         reconstruction.

4.       Walk-off mats are to be provided at entrance doors.

5.       Contractors will remove their trash and debris daily, or as often as
         necessary to maintain cleanliness in the building. Building trash
         containers are not to be used for construction debris. Landlord
         reserves the right to bill Tenant for any cost incurred to clean up
         debris left by the general contractor or any subcontractor. Further,
         the building staff is instructed to hold the driver's license of any
         employee of the contractor while using the freight elevator to ensure
         that all debris is removed from the elevator.

6.       No utilities (electricity, water, gas, plumbing) or services to the
         tenants are to be cut off or interrupted without first having
         requested, in writing, and secured, in writing, the permission of the
         Landlord.

7.       No electrical services are to be put on the emergency circuit, without
         specific written approval from the Landlord.

8.       When utility meters are installed, the general contractor must provide
         the property manager with a copy of the operating instructions for that
         particular meter.

9.       The Landlord will be notified of all work schedules of all workmen on
         the job and will be notified, in writing, of names of those who may be
         working in the building after "normal" business hours.

10.      Passenger elevators shall not be used for moving building materials and
         shall not be used for construction personnel except in the event of an
         emergency. The designated freight elevator is the only elevator to be
         used for moving materials and construction personnel. This elevator may
         be used only when it is completely protected as determined by
         Landlord's building engineer.

11.      Contractors or personnel will use loading dock area for all deliveries
         and will not use loading dock for vehicle parking.

12.      Contractors will be responsible for daily removal of waste foods, milk
         and soft drink containers, etc. to trash room and will not use any
         building trash receptacles but trash receptacles supplied by them.

13.      No building materials are to enter the building by way of main lobby,
         and no materials are to be stored in any lobbies at any time.

14.      Construction personnel are not to eat in the lobby or in front of
         building nor are they to congregate in the lobby or in front of
         building.

15.      The Landlord is to be contacted by Tenant when work is completed for
         inspection. All damage to building will be determined at that time.

16.      All key access, fire alarm work, or interruption of security hours must
         be arranged with the Landlord's building engineer.

17.      There will be no radios allowed on job site.

18.      All workers are required to wear a shirt, shoes, and full length
         trousers.

19.      Protection of hallway carpets, wall coverings, and elevators from
         damage with masonite board, carpet, cardboard, or pads is required.

20.      Public spaces-- corridors, elevators, bathrooms, lobby, etc.-- must be
         cleaned immediately after use. Construction debris or materials found
         in public areas will be removed at Tenant's cost

21.      There will be no smoking, eating, or open food containers in the
         elevators, carpeted areas or public lobbies.

<PAGE>

                                    EXHIBIT C

                        DECLARATION OF COMMENCEMENT DATE

         This Declaration of Commencement Date is made as of ______________,
2000, by SMII FAIRFAX, LLC ("Landlord"), and EUROTECH, LTD. ('Tenant"), who
agree as follows:

         1. Landlord and Tenant entered into a Deed of Lease dated August _,
2000, in which Landlord leased to Tenant and Tenant leased from Landlord certain
Premises described therein in the office building located at 10306 Eaton Place,
Fairfax, Virginia (the "Building"). All capitalized terms herein are as defined
in the Lease.

         2. Pursuant to the Lease, Landlord and Tenant agreed to and do hereby
confirm the following matters as of the Commencement Date of the Term:

                  a.       the Commencement Date of the Lease is ________;

                  b.       the Lease Expiration Date of the Lease is _______;

                  c.       the number of rentable square feet of the Premises
                           is.

                  d.       Tenant's Pro Rata Share of Operating Expenses is
                           _______%; and

                  e.       Tenant's Pro Rata Share of Real Estate Taxes is
                           ________%

         3.       Tenant confirms that:

                  a.       it has accepted possession of the Premises as
                           provided in the Lease;

                  b.       Landlord is not required to perform any work or
                           furnish any improvements to the Premises under the
                           Lease;

                  c.       Landlord has fulfilled all of its obligations under
                           the Lease as of the date hereof;

                  d.       the Lease is in full force and effect and has not
                           been modified, altered, or amended, except as
                           follows: ______________________; and

                  e.       there are no set-offs or credits against Rent, and no
                           Security Deposit or prepaid Rent has been paid except
                           as provided by the Lease.

         4. The provisions of this Declaration of Commencement Date shall inure
to the benefit of, or bind, as the case may require, the parties and their
respective successors and assigns, and to all mortgagees of the Building,
subject to the restrictions on assignment and subleasing contained in the Lease,
and are hereby attached to and made a part of this Lease.

                                    LANDLORD:

WITNESS:                            SMII FAIRFAX, LLC, a Delaware limited
                                      liability company

                                    By:  /S/ PETER E. POTRIKUS
                                         ---------------------
                                    Name: /S/ PETER E. POTRIKUS
                                          ---------------------
                                    Title: Vice President

                                    TENANT:
WITNESS:

/S/ EDMOND B Frost                  EUROTECH, LTD., a District of Columbia
------------------                    corporation
Edmond B Frost

                                    By: /S/ DON V. HAHNFELDT
                                        --------------------
                                    Name: Don V. Hahnfeldt
                                    Title:  President  & CEO

<PAGE>

                                    EXHIBIT D

                               RULES & REGULATIONS

1.       The water and wash closets and other plumbing fixtures shall not be
         used for any purposes other than those for which they were constructed,
         and no sweepings, rubbish, rags or other substances (including without
         limitation coffee grounds) shall be thrown therein. All damages
         resulting from misuse of the fixtures shall be borne by Tenant if
         Tenant or its servants, employees, agents, visitors or licensees shall
         have caused the same.

2.       No cooking (except for hot-plate and microwave cooking by Tenants'
         employees for their own consumption, the location and equipment of
         which is first approved by Landlord), sleeping or lodging shall be
         permitted by any tenant on the Premises. No tenant shall cause or
         permit any unusual or objectionable odors to be produced upon or
         permeate from the Premises.

3.       No inflammable, combustible, or explosive fluid, material, chemical or
         substance shall be brought or kept upon, in or about the Premises. Fire
         protection devices, in and about the Building, shall not be obstructed
         or encumbered in any way.

4.       Canvassing, soliciting and peddling in the Building is prohibited and
         each tenant shall cooperate to prevent the same.

5.       There shall not be used in any space, or in the public halls of the
         Building, either by any tenant or by its agents, contractors, jobbers
         or others, in the delivery or receipt of merchandise, freight, or other
         matters, any hand trucks or other means of conveyance except those
         equipped with rubber tires, rubber side guards, and such other
         safeguards as Landlord may require, and Tenant shall be responsible to
         Landlord for any loss or damage resulting from any deliveries to Tenant
         in the Building. Deliveries of mail, freight or bulky packages shall be
         made through the freight entrance or through doors specified by
         Landlord for such purpose.

6.       Mats, trash or other objects shall not be placed in the public
         corridors. The sidewalks, entries, passages, elevators, public
         corridors and staircases and other parts of the Building which are not
         occupied by Tenant shall not be obstructed or used for any other
         purpose than ingress or egress.

7.       Tenant shall not install or permit the installation of any awnings,
         shades, draperies and/or other similar window coverings, treatments or
         like items visible from the exterior of the Premises other than those
         approved by the Landlord in writing.

8.       Tenant shall not construct, maintain, use or operate within said
         Premises or elsewhere in the Building or on the outside of the
         Building, any equipment or machinery which produces music, sound or
         noise which is audible beyond the Premises.

9.       Bicycles, motor scooters or any other type of vehicle shall not be
         brought into the lobby or elevators of the Building or into the
         Premises except for those vehicles which are used by a physically
         disabled person in the Premises.

10.      All blinds for exterior windows shall be building standard and shall be
         maintained by Tenant.

11.      No additional locks shall be placed upon doors to or within the
         Premises except as shall be necessary adequately to safeguard United
         States Government security classified documents stored with the
         Premises. The doors leading to the corridors or main hall shall be kept
         closed during business hours, except as the same may be used for
         ingress or egress.

12.      Tenant shall maintain and clean all areas or rooms within the Premises
         in which security classified work is being conducted or in which such
         work is stored; Landlord shall not provide standard janitorial service
         to such areas, the provisions of Section 9 of this Lease
         notwithstanding.

13.      Landlord reserves the right to shut down the air conditioning,
         electrical systems, heating, plumbing and/or elevators when necessary
         by reason of accident or emergency, or for repair, alterations,
         replacements or improvement

14.      No carpet, rug or other article shall be hung or shaken out of any
         window of the Building; and Tenant shall not sweep or throw or permit
         to be swept or thrown from the Premises any dirt or other substances
         into any of the corridors or halls, elevator, or out of the doors or
         windows or stairways of the Building. Tenant shall not use, keep or
         permit to be used or kept any foul or noxious gas or substance in the
         Premises, or permit or suffer the Premises to be occupied or used in a
         manner offensive or objectionable to Landlord or other occupants of the
         Building by reason of noise, odors and/or vibrations, or interfere in
         any way with other tenants or those having business therein, nor shall
         any animals or birds be kept in or about the Building. Smoking or
         carrying lighted cigars or cigarettes in the elevators of the Building
         is prohibited.

15.      Landlord reserves the right to exclude from the Building on weekdays
         between the hours of 6:00 p.m. and 8:00 a.m. and at all hours on
         weekends and legal holidays, all persons who do not present a pass to
         the Building signed by Landlord; provided, however, that reasonable
         access for

<PAGE>

         Tenant's employees and customers shall be accorded. Landlord will
         furnish passes to persons for whom Tenant requires same in writing.
         Tenant shall be responsible for all persons for whom it requests such
         passes and shall be liable to Landlord for all acts of such persons.

16.      Tenant agrees to keep all windows closed at all times and to abide by
         all rules and regulations issued by Landlord with respect to the
         Building's air conditioning and ventilation systems.

17.      Tenant will replace all broken or cracked plate glass windows and doors
         at its own expense, with glass of like kind and quality, provided that
         such windows and doors are not broken or cracked by Landlord, its
         employees, agents or contractors.

18.      In the event it becomes necessary for the Landlord to gain access to
         the underfloor electric and telephone distribution system for purposes
         of adding or removing wiring, then upon request by Landlord, Tenant
         agrees to temporarily remove the carpet over the access covers to the
         underfloor ducts for such period of time until work to be performed has
         been completed. The cost of such work shall be borne by Landlord except
         to the extent such work was requested by or is intended to benefit
         Tenant or the Premises, in which case the cost shall be borne by
         Tenant.

19.      Violation of these rules, or any amendments thereof or additions
         thereto, may be considered a default of Tenant's lease and shall be
         sufficient cause for termination of this Lease at the option of
         Landlord.

                               EXHIBIT C, PAGE 2<PAGE>

                                                                     EXHIBIT 4.2

                                                        FORM OF SENIOR INDENTURE

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

                              KPMG CONSULTING, INC.

                                       TO

                              ____________________,

                                   as TRUSTEE

                                    Indenture

                            Dated as of _____________

                           Providing for the Issuance

                                       of

                             Senior Debt Securities

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

<PAGE>

                              KPMG CONSULTING, INC.
           Reconciliation and tie between Trust Indenture Act of 1939
                    and Indenture, dated as of _____________

<TABLE>
<CAPTION>
TRUST INDENTURE ACT SECTION                                             INDENTURE SECTION
---------------------------                                             -----------------
<S>                                                                    <C>
Section 310 (a)(1) .................................................         607
            (a)(2) .................................................         607
            (b) ....................................................         608
Section 311 (a) ....................................................         604
            (b) ....................................................         604
Section 312 (c) ....................................................         701
Section 314 (a) ....................................................         703
            (a)(4) .................................................        1005
            (c)(1) .................................................         102
            (c)(2) .................................................         102
            (e) ....................................................         102
Section 315 (a) ....................................................         602
            (b) ....................................................         601
            (d) ....................................................         602
            (e) ....................................................         513
Section 316 (a) (last sentence) ....................................     101 ("Outstanding")
            (a)(1)(A) ..............................................         512
            (a)(1)(B) ..............................................         514
            (b) ....................................................         508
Section 317 (a)(1) .................................................         503
            (a)(2) .................................................         504
Section 318 (a) ....................................................         111
            (c) ....................................................         111
</TABLE>

_________________

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                            <C>
ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION ......................       1

  SECTION 101  Definitions ...............................................................       1
  SECTION 102  Compliance Certificates and Opinions ......................................      10
  SECTION 103  Form of Documents Delivered to Trustee ....................................      11
  SECTION 104  Acts of Holders ...........................................................      12
  SECTION 105  Notices, Etc., to Trustee and Company .....................................      13
  SECTION 106  Notice to Holders; Waiver .................................................      14
  SECTION 107  Effect of Headings and Table of Contents ..................................      15
  SECTION 108  Successors and Assigns ....................................................      15
  SECTION 109  Separability Clause .......................................................      15
  SECTION 110  Benefits of Indenture .....................................................      15
  SECTION 111  Governing Law .............................................................      15
  SECTION 112  Legal Holidays ............................................................      16
  SECTION 113  Conflict of Any Provision of Indenture With Trust Indenture Act ...........      16
  SECTION 114  No Recourse against Others ................................................      16
  SECTION 115  Waiver of Trial by Jury ...................................................      16

ARTICLE TWO SECURITIES FORMS .............................................................      17

  SECTION 201  Forms of Securities .......................................................      17
  SECTION 202  Form of Trustee's Certificate of Authentication ...........................      17
  SECTION 203  Securities Issuable in Global Form ........................................      18
  SECTION 204  Form of Legend for Book-Entry Securities ..................................      19

ARTICLE THREE THE SECURITIES .............................................................      19

  SECTION 301  Amount Unlimited; Issuable in Series ......................................      19
  SECTION 302  Denominations                                                                    23
  SECTION 303  Execution, Authentication, Delivery and Dating ............................      24
  SECTION 304  Temporary Securities ......................................................      26
  SECTION 305  Registration, Registration of Transfer and Exchange .......................      28
  SECTION 306  Mutilated, Destroyed, Lost and Stolen Securities ..........................      32
  SECTION 307  Payment of Interest; Interest Rights Preserved; Optional Interest Reset ...      33
  SECTION 308  Optional Extension of Maturity ............................................      36
  SECTION 309  Persons Deemed Owners .....................................................      37
  SECTION 310  Cancellation ..............................................................      38
  SECTION 311  Computation of Interest ...................................................      38
  SECTION 312  Currency and Manner of Payments in Respect of Securities ..................      38
  SECTION 313  Appointment and Resignation of Successor Exchange Rate Agent ..............      42
  SECTION 314  CUSIP Numbers .............................................................      43

ARTICLE FOUR SATISFACTION AND DISCHARGE ..................................................      43

  SECTION 401  Satisfaction and Discharge of Indenture ...................................      43
  SECTION 402  Application of Trust Funds ................................................      45
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                                            <C>
ARTICLE FIVE REMEDIES .......................................................................   45

   SECTION 501 Events of Default ............................................................   45
   SECTION 502 Acceleration of Maturity; Rescission and Annulment ...........................   46
   SECTION 503 Collection of Indebtedness and Suits for Enforcement by Trustee ..............   47
   SECTION 504 Trustee May File Proofs of Claim .............................................   48
   SECTION 505 Trustee May Enforce Claims Without Possession of Securities or Coupons .......   49
   SECTION 506 Application of Money Collected ...............................................   49
   SECTION 507 Limitation on Suits ..........................................................   49
   SECTION 508 Unconditional Right of Holders to Receive Principal, Premium and
               Interest and Additional Amounts, if Any ......................................   50
   SECTION 509 Restoration of Rights and Remedies ...........................................   50
   SECTION 510 Rights and Remedies Cumulative ...............................................   50
   SECTION 511 Delay or Omission Not Waiver .................................................   51
   SECTION 512 Control by Holders of Securities .............................................   51
   SECTION 513 Undertaking for Costs ........................................................   51
   SECTION 514 Waiver of Past Defaults ......................................................   52
   SECTION 515 Waiver of Usury, Stay or Extension Laws ......................................   52

ARTICLE SIX THE TRUSTEE .....................................................................   52

   SECTION 601 Notice of Defaults ...........................................................   52
   SECTION 602 Certain Rights of Trustee ....................................................   53
   SECTION 603 Not Responsible for Recitals or Issuance of Securities .......................   55
   SECTION 604 May Hold Securities ..........................................................   56
   SECTION 605 Money Held in Trust ..........................................................   56
   SECTION 606 Compensation and Reimbursement ...............................................   56
   SECTION 607 Corporate Trustee Required; Eligibility ......................................   57
   SECTION 608 Resignation and Removal; Appointment of Successor ............................   57
   SECTION 609 Acceptance of Appointment by Successor .......................................   58
   SECTION 610 Merger, Conversion, Consolidation or Succession to Business ..................   59
   SECTION 611 Appointment of Authenticating Agent ..........................................   60
   SECTION 612 Conflicting Interests ........................................................   62
   SECTION 613 Appointment of Co-Trustee ....................................................   62
   SECTION 614 Trustee's Application for Instructions from the Company ......................   63

ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY .............................   64

   SECTION 701 Disclosure of Names and Addresses of Holders .................................   64
   SECTION 702 Reports by Trustee ...........................................................   64
   SECTION 703 Reports by Company ...........................................................   65
   SECTION 704 Calculation of Original Issue Discount .......................................   65

ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER .................................   66

   SECTION 801 Company May Consolidate, Etc., Only on Certain Terms .........................   66
   SECTION 802 Successor Person Substituted .................................................   66
   SECTION 803 Officers' Certificate and Opinion of Counsel .................................   67
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                                         <C>
ARTICLE NINE SUPPLEMENTAL INDENTURES .....................................................   67

   SECTION 901 Supplemental Indentures Without Consent of Holders ........................   67
   SECTION 902 Supplemental Indentures With Consent of Holders ...........................   69
   SECTION 903 Execution of Supplemental Indentures ......................................   70
   SECTION 904 Effect of Supplemental Indentures .........................................   71
   SECTION 905 Conformity with Trust Indenture Act .......................................   71
   SECTION 906 Reference in Securities to Supplemental Indentures ........................   71

ARTICLE TEN COVENANTS ....................................................................   71

  SECTION 1001 Payment of Principal, Premium, if Any, and Interest .......................   71
  SECTION 1002 Maintenance of Office or Agency ...........................................   72
  SECTION 1003 Money for Securities Payments to Be Held in Trust .........................   73
  SECTION 1004 Additional Amounts ........................................................   74
  SECTION 1005 Statement as to Compliance ................................................   75
  SECTION 1006 Waiver of Certain Covenants ...............................................   76

ARTICLE ELEVEN REDEMPTION OF SECURITIES ..................................................   76

  SECTION 1101 Applicability of Article ..................................................   76
  SECTION 1102 Election to Redeem; Notice to Trustee .....................................   76
  SECTION 1103 Selection by Trustee of Securities to Be Redeemed .........................   76
  SECTION 1104 Notice of Redemption ......................................................   77
  SECTION 1105 Deposit of Redemption Price ...............................................   78
  SECTION 1106 Securities Payable on Redemption Date .....................................   78
  SECTION 1107 Securities Redeemed in Part ...............................................   79

ARTICLE TWELVE SINKING FUNDS .............................................................   80

  SECTION 1201 Applicability of Article ..................................................   80
  SECTION 1202 Satisfaction of Sinking Fund Payments With Securities .....................   80
  SECTION 1203 Redemption of Securities for Sinking Fund .................................   81

ARTICLE THIRTEEN REPAYMENT AT THE OPTION OF HOLDERS ......................................   81

  SECTION 1301 Applicability of Article ..................................................   81
  SECTION 1302 Repayment of Securities ...................................................   81
  SECTION 1303 Exercise of Option ........................................................   82
  SECTION 1304 When Securities Presented for Repayment Become Due and Payable. ...........   82
  SECTION 1305 Securities Repaid in Part .................................................   83

ARTICLE FOURTEEN DEFEASANCE AND COVENANT DEFEASANCE ......................................   83

  SECTION 1401 Applicability of Article; Company's Option to Effect Defeasance or
               Covenant Defeasance .......................................................   83
  SECTION 1402 Defeasance and Discharge ..................................................   84
  SECTION 1403 Covenant Defeasance .......................................................   84
  SECTION 1404 Conditions to Defeasance or Covenant Defeasance ...........................   85
  SECTION 1405 Deposited Money and Government Obligations to Be Held in Trust;
               Other Miscellaneous Provisions ............................................   87
  SECTION 1406 Reinstatement .............................................................   88
</TABLE>

                                     -iii-

<PAGE>

<TABLE>
<S>                                                                            <C>
ARTICLE FIFTEEN MEETINGS OF HOLDERS OF SECURITIES ...........................   88

  SECTION 1501 Purposes for Which Meetings May Be Called ....................   88
  SECTION 1502 Call, Notice and Place of Meetings ...........................   88
  SECTION 1503 Persons Entitled to Vote at Meetings .........................   88
  SECTION 1504 Quorum; Action ...............................................   89
  SECTION 1505 Determination of Voting Rights; Conduct and Adjournment of
               Meetings .....................................................   90
  SECTION 1506 Counting Votes and Recording Action of Meetings ..............   91
</TABLE>

                                      -iv-

<PAGE>

                  INDENTURE, dated as of ______________, between KPMG
CONSULTING, INC., a Delaware corporation (hereinafter called the "Company"),
having its principal office at 1676 International Drive, McLean, Virginia
22102-4828, and ______________, a __________ banking corporation, as Trustee
(hereinafter called the "Trustee").

                             RECITALS OF THE COMPANY

                  WHEREAS, the Company deems it necessary to issue from time to
time for its lawful purposes senior debt securities (hereinafter called the
"Securities") evidencing its unsecured and unsubordinated indebtedness, which
may or may not be convertible into or exchangeable for any securities of any
Person (including the Company), and has duly authorized the execution and
delivery of this Indenture to provide for the issuance from time to time of the
Securities, unlimited as to principal amount, to bear such rates of interest, to
mature at such times and to have such other provisions as shall be fixed as
hereinafter provided;

                  WHEREAS, this Indenture is subject to the provisions of the
Trust Indenture Act of 1939, as amended, that are required to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions;
and

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

                  NOW, THEREFOR, THIS INDENTURE WITNESSETH:

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

                                  ARTICLE ONE

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

                  SECTION 101     Definitions.
                                  -----------

                  For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires or unless such
definition is changed or amended in a supplement or amendment to this Indenture:

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

               (2) all other terms used herein which are defined in the Trust
              Indenture Act, either directly or by reference therein, have the
              meanings assigned to them therein, and the terms "cash
              transaction" and "self-liquidating paper", as used in

<PAGE>

     TIA Section 311, shall have the meanings assigned to them in the rules of
     the Commission adopted under the Trust Indenture Act;

        (3) all accounting terms not otherwise defined herein have the meanings
     assigned to them in accordance with accounting principles generally
     accepted in the United States; and

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

            Certain terms, used principally in Article Three, Article Five,
Article Six and Article Eleven are defined in those Articles.

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

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

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

            "Authenticating Agent" means any authenticating agent appointed by
the Trustee pursuant to Section 611.

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

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

            "Board of Directors" means the board of directors of the Company or
any committee of that board duly authorized to act hereunder.

                                      -2-

<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, and delivered to the Trustee.

                  "Business Day", when used with respect to any Place of Payment
or any other particular location referred to in this Indenture or in the
Securities, means, unless otherwise specified with respect to any Securities
pursuant to Section 301, each Monday, Tuesday, Wednesday, Thursday and Friday
which is not a day on which banking institutions in that Place of Payment or
particular location are authorized or obligated by law or executive order to
close.

                  "Clearstream" means Clearstream Banking societe anonyme or its
successor.

                  "Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Securities Exchange Act of
1934, or, if at any time after execution of this Indenture such Commission is
not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties on such date.

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

                  "Company Request" and "Company Order" mean, respectively, a
written request or order signed in the name of the Company by any two Officers
and delivered to the Trustee.

                  "Conversion Date" has the meaning specified in Section 312(d).

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

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

                  "Corporation" includes corporations, associations, limited
liability companies, companies and business trusts.

                                       -3-

<PAGE>

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

                  "Currency" means any currency or currencies, composite
currency or currency unit or currency units, including, without limitation, the
euro, issued by the government of one or more countries or by any recognized
confederation or association of such governments.

                  "Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.

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

                  "Depository Participant" means, with respect to the Depositary
Trust Company (the "Depository") or its nominee, an institution that has an
account therewith.

                  "Dollar" or "$" means a dollar or other equivalent unit in
such coin or currency of the United States of America as at the time shall be
legal tender for the payment of public and private debts.

                  "Election Date" has the meaning specified in Section 312(h).

                  "Euroclear" means Morgan Guaranty Trust Company of New York,
Brussels Office, or its successor as operator of the Euroclear System.

                  "European Communities" means the European Union, the European
Coal and Steel Community and the European Atomic Energy Community.

                  "Event of Default" has the meaning specified in Article Five.

                  "Exchange Rate Agent", with respect to Securities of or within
any series, means, unless otherwise specified with respect to any Securities
pursuant to Section 301, a New York Clearing House bank designated pursuant to
Section 301 or Section 313.

                  "Exchange Rate Officer's Certificate" means a certificate
setting forth (i) the applicable Market Exchange Rate or the applicable bid
quotation and (ii) the Dollar or Foreign Currency amounts of principal (and
premium, if any) and interest, if any (on an aggregate basis and on the basis of
a Security having the lowest denomination principal amount determined in
accordance with Section 302 in the relevant Currency), payable with respect to a
Security of any series on the basis of such Market Exchange Rate or the
applicable bid quotation signed by an Officer.

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

                  "Government Obligations" means securities which are (i) direct
obligations of the United States of America or the government which issued the
Foreign Currency in which the Securities of a particular series are payable, for
the payment of

                                       -4-

<PAGE>

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 or such government which issued the Foreign Currency in
which the Securities of such series are payable, the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America or such other government, which, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank or trust company as custodian with
respect to any such Government Obligation or a specific payment of interest on
or principal of any such Government Obligation held by such custodian for the
account of the holder of a depository receipt; provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by the
custodian in respect of the Government Obligation or the specific payment of
interest on or principal of the Government Obligation evidenced by such
depository receipt.

                  "Holder" means, in the case of a Registered Security, the
Person in whose name a Security is registered in the Security Register and, in
the case of a Bearer Security, the bearer thereof and, when used with respect to
any coupon, shall mean the bearer thereof.

                  "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 pursuant to the applicable provisions hereof,
including the provisions of the Trust Indenture Act that are deemed to be a part
hereof, and shall include the terms of particular series of Securities
established as contemplated by Section 301; provided, however, that, if at any
time more than one Person is acting as Trustee under this instrument,
"Indenture" shall mean, with respect to any one or more series of Securities for
which such Person is Trustee, this instrument as originally executed or as it
may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of the or those particular series of Securities for
which such Person is Trustee established as contemplated by Section 301,
exclusive, however, of any provisions or terms which relate solely to other
series of Securities for which such Person is not Trustee, regardless of when
such terms or provisions were adopted, and exclusive of any provisions or terms
adopted by means of one or more indentures supplemental hereto executed and
delivered after such Person had become such Trustee but to which such Person, as
such Trustee, was not a party.

                  "Indexed Security" means a Security as to which all or certain
interest payments and/or the principal amount payable at Maturity are determined
by reference to prices, changes in prices, or differences between prices, of
securities, Currencies, intangibles, goods, articles or commodities or by such
other objective price, economic or other measures as are specified in Section
301 hereof.

                  "Interest", when used with respect to an Original Issue
Discount Security which by its terms bears interest only after Maturity, shall
mean interest payable after Maturity, and, when used with respect to a Security
which provides for the payment of

                                       -5-

<PAGE>

Additional Amounts pursuant to Section 1004 or otherwise, includes such
Additional Amounts.

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

                  "Market Exchange Rate" means, unless otherwise specified with
respect to any Securities pursuant to Section 301, (i) for any conversion
involving a currency unit on the one hand and Dollars or any Foreign Currency on
the other, the exchange rate between the relevant currency unit and Dollars or
such Foreign Currency calculated by the method specified pursuant to Section 301
for the Securities of the relevant series, (ii) for any conversion of Dollars
into any Foreign Currency, the noon buying rate for such Foreign Currency for
cable transfers quoted in New York City as certified for customs purposes by the
Federal Reserve Bank of New York and (iii) for any conversion of one Foreign
Currency into Dollars or another Foreign Currency, the spot rate at noon local
time in the relevant market at which, in accordance with normal banking
procedures, the Dollars or Foreign Currency into which conversion is being made
could be purchased with the Foreign Currency from which conversion is being made
from major banks located in either New York City, London or any other principal
market for Dollars or such purchased Foreign Currency, in each case determined
by the Exchange Rate Agent. Unless otherwise specified with respect to any
Securities pursuant to Section 301, in the event of the unavailability of any of
the exchange rates provided for in the foregoing clauses (i), (ii) and (iii),
the Exchange Rate Agent shall use, in its sole discretion and without liability
on its part, such quotation of the Federal Reserve Bank of New York as of the
most recent available date, or quotations from one or more major banks in New
York City, London or other principal market for such Currency in question, or
such other quotations as the Exchange Rate Agent shall deem appropriate. Unless
otherwise specified by the Exchange Rate Agent, if there is more than one market
for dealing in any Currency by reason of foreign exchange regulations or
otherwise, the market to be used in respect of such Currency shall be that upon
which a nonresident issuer of securities designated in such Currency would
purchase such Currency in order to make payments in respect of such securities.

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

                  "Officer" means the Chairman of the Board, the Vice Chairman,
the Chief Executive Officer, the President, any Executive Vice President, any
Senior Vice President, any Vice President, the Treasurer or the Secretary or any
Assistant Treasurer or Assistant Secretary of the Company.

                  "Officers' Certificate" means a certificate signed in the name
of the Company by any two Officers, one of whom shall be the principal financial
officer, and delivered to the Trustee.

                                       -6-

<PAGE>

                  "Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company or who may be an employee of or other counsel for
the Company satisfactory to the Trustee.

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

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

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

                   (B)      Securities, or portions thereof, for whose payment
         or redemption or repayment at the option of the Holder money in the
         necessary amount has been theretofore deposited with the Trustee or any
         Paying Agent (other than the Company) in trust or set aside and
         segregated in trust by the Company (if the Company shall act as its own
         Paying Agent) for the Holders of such Securities and any coupons
         appertaining thereto, provided that, if such Securities are to be
         redeemed, notice of such redemption has been duly given pursuant to
         this Indenture or provision therefor satisfactory to the Trustee has
         been made;

                   (C)      Securities, except to the extent provided in
         Sections 1402 and 1403, with respect to which the Company has effected
         defeasance and/or covenant defeasance as provided in Article Fourteen;
         and

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

provided, however, that in determining whether the Holders of the requisite
--------  -------
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, and for the purpose of making the
calculations required by TIA Section 313, (i) the principal amount of an
Original Issue Discount Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for such
purpose shall be equal to the amount of principal thereof that would be (or
shall have been declared to be) due and payable, at the time of such
determination, upon a declaration of acceleration of the Maturity thereof
pursuant to Section 502, (ii) the principal amount of any Security denominated
in a Foreign Currency that may be counted in making such determination or
calculation and that shall be deemed Outstanding for such purpose shall be equal
to the Dollar equivalent, determined as of the date such

                                       -7-

<PAGE>

Security is originally issued by the Company as set forth in an Exchange Rate
Officer's Certificate delivered to the Trustee, of the principal amount (or, in
the case of an Original Issue Discount Security or Indexed Security, the Dollar
equivalent as of such date of original issuance of the amount determined as
provided in clause (i) above or (iii) below, respectively) of such Security,
(iii) the principal amount of any Indexed Security that may be counted in making
such determination or calculation and that shall be deemed outstanding for such
purpose shall be equal to the principal face amount of such Indexed Security at
original issuance, unless otherwise provided with respect to such Security
pursuant to Section 301, and (iv) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other
obligor shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in making such calculation or
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee actually knows to be so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
satisfaction of the Trustee the pledgee's right so to act with respect to such
Securities and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.

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

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

                  "Place of Payment", when used with respect to the Securities
of or within any series, means the place or places where the principal of (and
premium, if any) and interest, if any, on such Securities are payable as
specified and as contemplated by Sections 301 and 1002.

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

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

                                       -8-

<PAGE>

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

                  "Registered Security" shall mean any Security which is
registered in the Security Register.

                  "Regular Record Date" for the interest payable on any Interest
Payment Date on the Registered Securities of or within any series means the date
specified for that purpose as contemplated by Section 301, whether or not a
Business Day.

                  "Repayment Date" means, when used with respect to any Security
to be repaid at the option of the Holder, the date fixed for such repayment by
or pursuant to this Indenture.

                  "Repayment Price" means, when used with respect to any
Security to be repaid at the option of the Holder, the price at which it is to
be repaid by or pursuant to this Indenture.

                  "Responsible Officer" shall mean, when used with respect to
the Trustee, any officer within the corporate trust department of the Trustee
with direct responsibility for the administration of this Indenture or any other
officer to whom any corporate trust matter is referred because of such person's
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.

                  "Security" or "Securities" has the meaning stated in the first
recital of this Indenture and, more particularly, means any Security or
Securities authenticated and delivered under this Indenture; provided, however,
that, if at any time there is more than one Person acting as Trustee under this
Indenture, "Securities" with respect to the Indenture as to which such Person is
Trustee shall have the meaning stated in the first recital of this Indenture and
shall more particularly mean Securities authenticated and delivered under this
Indenture, exclusive, however, of Securities of any series as to which such
Person is not Trustee.

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

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

                  "Stated Maturity", when used with respect to any Security or
any installment of principal thereof or interest thereon, means the date
specified in such Security or a coupon representing such installment of interest
as the fixed date on which the principal of such Security or such installment of
principal or interest is due and payable, as such date may be extended pursuant
to the provisions of Section 308.

                                       -9-

<PAGE>

                  "Subsidiary" of any Person means (1) a corporation, a majority
of the outstanding voting stock of which is, at the time, directly or
indirectly, owned by such Person by one or more Subsidiaries of such Person, or
by such Person and one or more Subsidiaries thereof or (2) any other Person
(other than a corporation), including, without limitation, a partnership or
joint venture, in which such Person, one or more Subsidiaries thereof or such
Person and one or more Subsidiaries thereof, directly or indirectly, at the date
of determination thereof, has at least majority ownership interest entitled to
vote in the election of directors, managers or Trustees thereof (or other Person
performing similar functions).

                  "Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939 as in force at the date as of which this Indenture was executed, except
as provided in Section 905.

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

                  "United States" means, unless otherwise specified with respect
to any Securities pursuant to Section 301, the United States of America
(including the states and the District of Columbia), its territories, its
possessions and other areas subject to its jurisdiction.

                  "United States Person" means, unless otherwise specified with
respect to any Securities pursuant to Section 301, an individual who is a
citizen or resident of the United States, a corporation, partnership or other
entity created or organized in or under the laws of the United States or an
estate or trust the income of which is subject to United States federal income
taxation regardless of its source.

                  "Valuation Date" has the meaning specified in Section 312(c).

                  "Yield to Maturity" means the yield to maturity, computed at
the time of issuance of a Security (or, if applicable, at the most recent
redetermination of interest on such Security) and as set forth in such Security
in accordance with generally accepted United States bond yield computation
principles.

                   SECTION 102    Compliance Certificates and Opinions.
                                  ------------------------------------

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

                                       -10-

<PAGE>

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

                  Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than pursuant to
Section 1004) shall include:

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

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

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

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

                  SECTION 103       Form of Documents Delivered to Trustee.
                                    --------------------------------------

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

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

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

                                       -11-

<PAGE>

                  SECTION 104       Acts of Holders.
                                    ---------------

                  (a) Any request, demand, authorization, direction, notice,
         consent, waiver or other action provided by this Indenture to be given
         or taken by Holders of the Outstanding Securities of all series or one
         or more series, as the case may be, may be embodied in and evidenced by
         one or more instruments of substantially similar tenor signed (which
         may be electronically signed) by such Holders in person or by agents
         duly appointed in writing (which may be in electronic form). If
         Securities of a series are issuable as Bearer Securities, any request,
         demand, authorization, direction, notice, consent, waiver or other
         action provided by this Indenture to be given or taken by Holders of
         Securities of such series may, alternatively, be embodied in and
         evidenced by the record of Holders of Securities of such series voting
         in favor thereof, either in person or by proxies duly appointed in
         writing, at any meeting of Holders of Securities of such series duly
         called and held in accordance with the provisions of Article Fifteen,
         or a combination of such instruments and any such record. Except as
         herein otherwise expressly provided, such action shall become effective
         when such instrument or instruments or record or both are delivered to
         the Trustee and, where it is hereby expressly required, to the Company.
         Such instrument or instruments and any such record (and the action
         embodied therein and evidenced thereby) are herein sometimes referred
         to as the "Act" of the Holders signing such instrument or instruments
         or so voting at any such meeting. Proof of execution of any such
         instrument or of a writing appointing any such agent, or of the holding
         by any Person of a Security, shall be sufficient for any purpose of
         this Indenture and conclusive in favor of the Trustee and the Company
         and any agent of the Trustee or the Company, if made in the manner
         provided in this Section. The record of any meeting of Holders of
         Securities shall be proved in the manner provided in Section 1506.

                  (b) The fact and date of the execution of any such instrument
         or writing, or the authority of the Person executing the same, may be
         proved in any manner which the Trustee deems sufficient.

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

                  (d) The ownership of Bearer Securities may be proved by the
         production of such Bearer Securities or by a certificate executed, as
         depositary, by any trust company, bank, banker or other depositary,
         wherever situated, if such certificate shall be deemed by the Trustee
         to be satisfactory, showing that at the date therein mentioned such
         Person had on deposit with such depositary, or exhibited to it, the
         Bearer Securities therein described; or such facts may be proved by the
         certificate or affidavit of the Person holding such Bearer Securities,
         if such certificate or affidavit is deemed by the Trustee to be
         satisfactory. The Trustee and the Company may assume that such
         ownership of any Bearer Security continues until (1) another
         certificate or affidavit bearing a later date issued in respect of the
         same Bearer Security is produced, or (2) such Bearer Security is

                                       -12-

<PAGE>

         produced to the Trustee by some other Person, or (3) such Bearer
         Security is surrendered in exchange for a Registered Security, or (4)
         such Bearer Security is no longer Outstanding. The ownership of Bearer
         Securities may also be proved in any other manner that the Trustee
         deems sufficient.

                  (e) If the Company shall solicit from the Holders of
         Registered Securities any request, demand, authorization, direction,
         notice, consent, waiver or other Act, the Company may, at its option,
         in or pursuant to a Board Resolution, fix in advance a record date for
         the determination of Holders entitled to give such request, demand,
         authorization, direction, notice, consent, waiver or other Act, but the
         Company shall have no obligation to do so. Notwithstanding TIA Section
         316(c), such record date shall be the record date specified in or
         pursuant to such Board Resolution, which shall be a date not earlier
         than the date 30 days prior to the first solicitation of Holders
         generally in connection therewith and not later than the date such
         solicitation is completed. If such a record date is fixed, such
         request, demand, authorization, direction, notice, consent, waiver or
         other Act may be given before or after such record date, but only the
         Holders of record at the close of business on such record date shall be
         deemed to be Holders for the purposes of determining whether Holders of
         the requisite proportion of Outstanding Securities have authorized or
         agreed or consented to such request, demand, authorization, direction,
         notice, consent, waiver or other Act, and for that purpose the
         Outstanding Securities shall be computed as of such record date;
         provided that no such authorization, agreement or consent by the
         Holders on such record date shall be deemed effective unless it shall
         become effective pursuant to the provisions of this Indenture not later
         than 180 days after the record date and that no such authorization,
         agreement or consent may be amended, withdrawn or revoked once given by
         a Holder, unless the Company shall provide for such amendment,
         withdrawal or revocation in conjunction with such solicitation of
         authorizations, agreements or consents or unless and to the extent
         required by applicable law.

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

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

                  Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with, (1) the
Trustee by any Holder or by the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing and mailed to or with
the Trustee at its Corporate Trust Office, Attention: Corporate Trust Office, or
at any other address previously furnished in writing by the

                                       -13-

<PAGE>

Trustee to the Holders or the Company or (2) the Company by the Trustee or by
any Holder shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing and mailed, given, furnished or filed
with or to the Company addressed to it at the address of its principal office
specified in the first paragraph of this Indenture or at any other address
previously furnished in writing to the Trustee by the Company.

                  SECTION 106       Notice to Holders; Waiver.
                                    -------------------------

                  Where this Indenture provides for notice of any event to
Holders of Registered Securities by the Company or the Trustee, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
writing and mailed, first-class postage prepaid, or by email, to each such
Holder affected by such event, at his physical address or email address as such
address appears in the Security Register, not later than the latest date, and
not earlier than the earliest date, prescribed for the giving of such notice. In
any case where notice to Holders of Registered Securities is given by mail,
neither the failure to mail such notice, nor any defect in any notice so mailed,
to any particular Holder shall affect the sufficiency of such notice with
respect to other Holders of Registered Securities or the sufficiency of any
notice to Holders of Bearer Securities given as provided herein. Any notice
mailed to a Holder in the manner herein prescribed shall be conclusively deemed
to have been received by such Holder, whether or not such Holder actually
receives such notice.

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

                  Except as otherwise expressly provided herein or otherwise
specified with respect to any Securities pursuant to Section 301, where this
Indenture provides for notice to Holders of Bearer Securities of any event, such
notice shall be sufficiently given if published in (1)an Authorized Newspaper in
The City of New York and in such other city or cities as may be specified in
such Securities on a Business Day, or (2) an electronic medium easily accessible
by the Holders as may be specified to such Holders, such publication to be not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice. Any such notice shall be deemed to have been
given on the date of such publication or, if published more than once, on the
date of the first such publication.

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

                                       -14-

<PAGE>

sufficiency of such notice with respect to other Holders of Bearer Securities
or the sufficiency of any notice to Holders of Registered Securities given as
provided herein.

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

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

                  SECTION 107       Effect of Headings and Table of Contents.
                                    ----------------------------------------

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

                  SECTION 108       Successors and Assigns.
                                    ----------------------

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

                  SECTION 109       Separability Clause.
                                    -------------------

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

                  SECTION 110       Benefits of Indenture.
                                    ---------------------

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

                  SECTION 111       Governing Law.
                                    -------------

                  This Indenture and the Securities and coupons shall be
governed by and construed in accordance with the law of the State of New York
without regard to principles of conflicts of laws. This Indenture is subject to
the provisions of the Trust Indenture Act that are required to be part of this
Indenture and shall, to the extent applicable, be governed by such provisions.

                                       -15-

<PAGE>

                  SECTION 112       Legal Holidays.
                                    --------------

                  In any case where any Interest Payment Date, Redemption Date,
Repayment Date, sinking fund payment date, Stated Maturity or Maturity of any
Security shall not be a Business Day at any Place of Payment, then
(notwithstanding any other provision of this Indenture or any Security or coupon
other than a provision in the Securities of any series which specifically states
that such provision shall apply in lieu of this Section), payment of principal
(or premium, if any) or interest, if any, need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date, Redemption Date, Repayment Date or sinking fund payment date, or
at the Stated Maturity or Maturity; provided that no interest shall accrue on
the amount so payable for the period from and after such Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity, as the case may be.

                  SECTION 113       Conflict of Any Provision of Indenture with
                                    --------------------------------------------
                                    Trust Indenture Act.
                                    -------------------

                  If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by TIA Sections 310 to
318, inclusive, or conflicts with any provision (an "incorporated provision")
required by or deemed to be included in this Indenture by operation of such TIA
Sections or any section of the TIA, such imposed duties or incorporated
provisions shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to this Indenture as so
modified or excluded, as the case may be.

                  SECTION 114       No Recourse against Others.
                                    --------------------------

                  A director, officer, employee, agent, representative,
stockholder or equity holder, as such, of the Company shall not have any
liability for any obligations of the Company under the Securities or this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder by accepting any of the Securities
waives and releases all such liability. The waiver and release shall be part of
the consideration for the issue of the Securities.

                  SECTION 115       Waiver of Trial by Jury.
                                    -----------------------

                  The Company, Trustee, and Holders hereby irrevocably and
unconditionally waive the right to trial by jury in connection with any claim
arising out of or relating to the Securities and under this Indenture.

                                       -16-

<PAGE>

                                  ARTICLE Two

                                SECURITIES FORMS

              SECTION 201       Forms of Securities.
                                -------------------

              The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in
substantially the forms as shall be established in one or more indentures
supplemental hereto or approved from time to time by or pursuant to a Board
Resolution in accordance with Section 301, shall have such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture or any indenture supplemental hereto, and may have
such letters, numbers or other marks of identification or designation and such
legends or endorsements placed 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 the
Securities may be listed, or to conform to usage. If the forms of Securities of
any series are established by action taken pursuant to a Board Resolution, a
copy of an appropriate record of such action shall be certified by the Secretary
or an Assistant Secretary of the Company and delivered to the Trustee at or
prior to the delivery of the Company Order contemplated by Section 303 for the
authentication and delivery of such Securities.

              The Trustee's  certificate of  authentication  on all Securities
shall be in substantially the form set forth in this Article.

              Unless otherwise specified as contemplated by Section 301, Bearer
Securities shall have interest coupons attached.

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

              SECTION 202       Form of Trustee's Certificate of Authentication.
                                -----------------------------------------------

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

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

                                       -17-

<PAGE>

                  _________________________,
                  as Trustee

                  By:    _____________________
                         Authorized Officer

                  SECTION 203       Securities Issuable in Global Form.
                                    ---------------------------------- -

                  If Securities of or within a series are issuable in global
form, as specified as contemplated by Section 301, then, notwithstanding clause
(8) of Section 301 and the provisions of Section 302, any such Security shall
represent such of the Outstanding Securities of such series as shall be
specified therein and may provide that it shall represent the aggregate amount
of Outstanding Securities of such series from time to time endorsed thereon and
that the aggregate amount of Outstanding Securities of such series represented
thereby may from time to time be increased or decreased to reflect exchanges.
Any endorsement of a Security in global form to reflect the amount, or any
increase or decrease in the amount, of Outstanding Securities represented
thereby shall be made by the Trustee in such manner and upon instructions given
by such Person or Persons as shall be specified therein or in the Company Order
to be delivered to the Trustee pursuant to Section 303 or 304. Subject to the
provisions of Section 303 and, if applicable, Section 304, the Trustee shall
deliver and redeliver any Security in permanent global form in the manner and
upon instructions given by the Person or Persons specified therein or in the
applicable Company Order. If a Company Order pursuant to Section 303 or 304 has
been, or simultaneously is, delivered, any instructions by the Company with
respect to endorsement, delivery or redelivery of a Security in global form
shall be in writing but need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel.

                  The provisions of the last sentence of Section 303 shall apply
to any Security represented by a Security in global form if such Security was
never issued and sold by the Company and the Company delivers to the Trustee the
Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Securities represented
thereby, together with the written statement contemplated by the last sentence
of Section 303.

                  Notwithstanding the provisions of Section 307, unless
otherwise specified as contemplated by Section 301, payment of principal of (and
premium, if any) and interest, if any, on any Security in permanent global form
shall be made to the Person or Persons specified therein.

                  Notwithstanding the provisions of Section 309 and except as
provided in the preceding paragraph, the Company, the Trustee and any agent of
the Company and the Trustee shall treat as the Holder of such principal amount
of Outstanding Securities represented by a permanent global Security (i) in the
case of a permanent global Security

                                       -18-

<PAGE>

in registered form, the Holder of such permanent global Security in registered
form, or (ii) in the case of a permanent global Security in bearer form,
Euroclear or Clearstream.

                  SECTION 204  Form of Legend for Book-Entry Securities.
                               ----------------------------------------

                  Any Global Security authenticated and delivered hereunder
shall bear a legend (which would be in addition to any other legends required in
the case of a restricted Security) in substantially the following form:

                  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR
A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITORY OR ITS
NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

                  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITARY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND SUCH CERTIFICATE ISSUED IN
EXCHANGE FOR THIS CERTIFICATE IS REGISTERED IN THE NAME OF CEDE & CO., OR SUCH
OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY, ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL, SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

                                 ARTICLE THREE

                                 THE SECURITIES

                  SECTION 301  Amount Unlimited; Issuable in Series.
                               ------------------------------------

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

                  The Securities shall rank equally and pari passu and may be
issued in one or more series. Each series of Securities may be reopened and more
securities of such series issued unless otherwise specified in an indenture
supplement. There shall be established in one or more Board Resolutions or
pursuant to authority granted by one or more Board Resolutions and, subject to
Section 303, set forth, or determined in the manner provided, in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series, any or all of the following, as
applicable (each of which (except for the matters set forth in clauses (1), (2)
and (15) below), if so provided, may be determined from time to time by the
Company with respect to unissued Securities of the series when issued from time
to time):

                                       -19-

<PAGE>

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

         (2)      any limit upon the aggregate principal amount of the
Securities of the 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 the
series pursuant to Section 304, 305, 306, 906, 1107 or 1305) and if such series
may not be reopened for additional Securities of that series; in the event that
such series of Securities may be reopened from time to time for issuances of
additional Securities of such series, the terms thereof may indicate whether the
Company may establish additional or different terms with respect to such
additional Securities;

         (3)      the date or dates, or the method by which such date or dates
will be determined or extended, on which the principal (and premium, if any,) of
 the Securities of the series shall be payable;

         (4)      the rate or rates at which the Securities of the series shall
bear interest, if any, or the method by which such rate or rates shall be
determined, the date or dates from which such interest shall accrue or the
method by which such date or dates shall be determined, the Interest Payment
Dates on which such interest will be payable and the Regular Record Date, if
any, for the interest payable on any Registered Security on any Interest Payment
Date, or the method by which such date or dates shall be determined, and the
basis upon which such interest shall be calculated if other than that of a 360
-day year of twelve 30-day months;

         (5)      the place or places, if any, other than or in addition to
the Borough of Manhattan, The City of New York, where the principal of (and
premium, if any) and interest, if any, on Securities of the series shall be
payable, where any Registered Securities of the series may be surrendered for
registration of transfer and exchange, where Securities of the series may be
surrendered for exchange, where Securities of that series that are convertible
or exchangeable may be surrendered for conversion or exchange, as applicable,
and where notices or demands to or upon the Company in respect of the Securities
of the series and this Indenture may be served;

         (6)      the period or periods within which, or the date or dates on
which, the price or prices at which, the Currency or Currencies in which, and
other terms and conditions upon which Securities of the series may be redeemed,
in whole or in part, at the option of the Company, if the Company is to have the
option;

         (7)      the obligation, if any, of the Company to redeem, repay or
purchase Securities of the series pursuant to any sinking fund or analogous
provision or at the option of a Holder thereof, and the period or periods within
which or the date or dates on which, the price or prices at which, the Currency
or Currencies in which, and other terms and conditions upon which Securities of
the

                              -20-

<PAGE>

series shall be redeemed, repaid or purchased, in whole or in part,
pursuant to such obligation;

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

          (9)    if other than the Trustee, the identity of each
Security Registrar and/or Paying Agent;

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

          (11)   if other than Dollars, the Currency or Currencies in
which payment of the principal of (or premium, if any) or interest, if
any, on the Securities of the series shall be made or in which the
Securities of the series shall be denominated and the particular
provisions applicable thereto in accordance with, in addition to or in
lieu of any of the provisions of Section 312;

          (12)   whether the amount of payments of principal of (or
premium, if any) or interest, if any, on the Securities of the series
may be determined with reference to an index, formula or other method
(which index, formula or method may be based, without limitation, on
one or more Currencies, commodities, equity indices or other indices),
and the manner in which such amounts shall be determined;

          (13)   whether the principal of (or premium, if any) or
interest, if any, on the Securities of the series are to be payable, at
the election of the Company or a Holder thereof, in one or more
Currencies other than that in which such Securities are denominated or
stated to be payable, the period or periods within which (including the
Election Date), and the terms and conditions upon which, such election
may be made, and the time and manner of determining the exchange rate
between the Currency or Currencies in which such Securities are
denominated or stated to be payable and the Currency or Currencies in
which such Securities are to be paid, in each case in accordance with,
in addition to or in lieu of any of the provisions of Section 312;

          (14)   provisions,  if any,  granting special rights to the
Holders of Securities of the series upon the occurrence of such events
as may be specified;

          (15)   any deletions from, modifications of or additions to the
Events of Default or covenants or other provisions (including any
deletions from, modifications of or additions to any of the provisions
of Section 1006) of the Company with respect to Securities of the
series, whether or not such Events of

                                       -21-

<PAGE>

         Default or covenants or other provisions are consistent with the
         Events of Default or covenants or other provisions set forth herein;

                  (16) whether Securities of the series are to be issuable as
         Registered Securities, Bearer Securities or both, any restrictions
         applicable to the offer, sale or delivery of Bearer Securities and the
         terms upon which Bearer Securities of the series may be exchanged for
         Registered Securities of the series and vice versa (if permitted by
         applicable laws and regulations), whether any Securities of the series
         are to be issuable initially in temporary global form and whether any
         Securities of the series are to be issuable in permanent global form
         with or without coupons and, if so, whether beneficial owners of
         interests in any such permanent global Security may exchange such
         interests for Securities of such series in certificated form and of
         like tenor of any authorized form and denomination and the
         circumstances under which any such exchanges may occur, if other than
         in the manner provided in Section 305, and, if Registered Securities of
         the series are to be issuable as a global Security, the identity of the
         depository for such series;

                  (17) the date as of which any Bearer Securities of the series
         and any temporary global Security representing Outstanding Securities
         of the series shall be dated if other than the date of original
         issuance of the first Security of the series to be issued;

                  (18) the Person to whom any interest on any Registered
         Security of the series shall be payable, if other than the Person in
         whose name such Security (or one or more Predecessor Securities) is
         registered at the close of business on the Regular Record Date for such
         interest, the manner in which, or the Person to whom, any interest on
         any Bearer Security of the series shall be payable, if otherwise than
         upon presentation and surrender of the coupons appertaining thereto as
         they severally mature, and the extent to which, or the manner in which,
         any interest payable on a temporary global Security on an Interest
         Payment Date will be paid if other than in the manner provided in
         Section 304;

                  (19) the applicability, if any, of Sections 1402 and 1403 to
         the Securities of the series (and, in the case of Section 1403, if
         applicable, any additional covenants subject to covenant defeasance)
         and any provisions in modification of, in addition to or in lieu of any
         of the provisions of Article Fourteen;

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

                  (21) whether, under what circumstances and the Currency in
         which, the Company will pay Additional Amounts as contemplated by
         Section 1004 on the Securities of the series to any Holder who is not a
         United States person (including

                                      -22-

<PAGE>

         any modification to the definition of such term) in respect of any tax,
         assessment or governmental charge and, if so, whether the Company
         will have the option to redeem such Securities rather than pay such
         Additional Amounts (and the terms of any such option);

                  (22) the designation of the initial Exchange Rate Agent, if
         any;

                  (23) if the Securities of the series are to be convertible
         into or exchangeable for any securities or property of any Person
         (including the Company), the terms and conditions upon which such
         Securities of the series will be so convertible or exchangeable
         (including, without limitation, the initial conversion price or rate,
         the conversion period, the conversion agent, if any, adjustments of the
         applicable conversion price or rate and any requirements with respect
         to the reservation of shares or Securities for purposes of conversion);

                  (24) whether  payment of any  amounts due  hereunder  will be
         guaranteed  by one or more  guarantors,  including subsidiaries of the
         Company; and

                  (25) any other terms of the series (which terms shall not be
         inconsistent with the requirements of the Trust Indenture Act).

                  All Securities of any one series and the coupons appertaining
to any Bearer Securities of such series shall be substantially identical except,
in the case of Registered Securities, as to denomination and except as may
otherwise be provided in or pursuant to such Board Resolution (subject to
Section 303) and set forth in such Officers' Certificate or in any such
indenture supplemental hereto. All Securities of any one series need not be
issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series or to establish additional terms of such series of
Securities (which additional terms shall only be applicable to unissued or
additional Securities of such series).

                  If any of the terms of the Securities of any series are
established by action taken pursuant to one or more Board Resolutions, a copy of
an appropriate record of such action(s) 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 setting forth the terms of the
Securities of such series.

                  SECTION 302  Denominations.
                               -------------

                  The Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 301. In the
absence of any such provision with respect to Securities of any series, the
principal, premium and interest and Additional Amounts with respect to the
Securities shall be payable in Dollars. With respect to Securities of any series
denominated in Dollars, in the absence of any such provisions with respect to
the Securities of any series, the Registered Securities of such series, other
than Registered Securities issued in global form (which may be of any
denomination) shall be issuable in denominations of $1,000 and any integral
multiple thereof, and the Bearer Securities of such series, other than Bearer
Securities issued in

                                      -23-

<PAGE>

global form (which may be of any denomination), shall be issuable in
denominations of $5,000 or any integral multiple thereof.

                  SECTION 303  Execution, Authentication, Delivery and Dating.
                               ----------------------------------------------

                  The Securities and any coupons appertaining thereto shall be
executed on behalf of the Company by any Officer. The signature of any Officers
on the Securities and coupons may be manual or facsimile signatures of the
present or any future Officer and may be imprinted or otherwise reproduced on
the Securities.

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

                  At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series,
together with any coupon appertaining thereto, executed by the Company, to the
Trustee for authentication, together with a Company Order for the authentication
and delivery of such Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Securities; either to the Company or
according to the directions contained in the Company Order; provided, however,
that, in connection with its original issuance, no Bearer Security shall be
mailed or otherwise delivered to any location in the United States; and provided
further that, unless otherwise specified with respect to any series of
Securities pursuant to Section 301, a Bearer Security may be delivered in
connection with its original issuance only if the Person entitled to receive
such Bearer Security shall have furnished a certificate in the form set forth in
Exhibit A-1 to this Indenture or such other certificate as may be specified with
respect to any series of Securities pursuant to Section 301, dated no earlier
than 15 days prior to the earlier of the date on which such Bearer Security is
delivered and the date on which any temporary Security first becomes
exchangeable for such Bearer Security in accordance with the terms of such
temporary Security and this Indenture. If any Security shall be represented by a
permanent global Bearer Security, then, for purposes of this Section and Section
304, the notation of a beneficial owner's interest therein upon original
issuance of such Security or upon exchange of a portion of a temporary global
Security shall be deemed to be delivery in connection with its original issuance
of such beneficial owner's interest in such permanent global Security. Except as
permitted by Section 306, the Trustee shall not authenticate and deliver any
Bearer Security unless all appurtenant coupons for interest then matured have
been detached and cancelled. If all the Securities of any series are not to be
issued at one time and if the Board Resolution or supplemental indenture
establishing such series shall so permit, such Company Order may set forth
procedures acceptable to the Trustee for the issuance of such Securities and
determining the terms of particular Securities of such series, such as interest
rate, maturity date, date of issuance and date from which interest shall accrue.
In authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the

                                      -24-

<PAGE>

Trustee shall be entitled to receive, and (subject to TIA Sections 315(a)
through 315(d)) shall be fully protected in relying upon,

                  (A)      an Opinion of Counsel stating,

                           (a)  that the form or forms of such Securities and
                  any coupons have been  established in conformity with the
                  provisions of this Indenture;

                           (b)  that the terms of such Securities and any
                  coupons have been  established  in conformity  with the
                  provisions of this Indenture; and

                           (c)  that such Securities, together with any coupons
                  appertaining thereto, when completed by appropriate insertions
                  and executed and delivered by the Company to the Trustee for
                  authentication in accordance with this Indenture,
                  authenticated and delivered by the Trustee in accordance with
                  this Indenture and issued by the Company in the manner and
                  subject to any conditions specified in such Opinion of
                  Counsel, will constitute legal, valid and binding obligations
                  of the Company, enforceable in accordance with their terms,
                  subject to applicable bankruptcy, insolvency, reorganization
                  and other similar laws of general applicability relating to or
                  affecting the enforcement of creditors' rights, to general
                  equitable principles and to such other qualifications as such
                  counsel shall conclude do not materially affect the rights of
                  Holders of such Securities and any coupons;

                  (B)      an Officers' Certificate stating, to the best of the
         knowledge of the signers of such certificate, that no Event of Default
         with respect to any of the Securities shall have occurred and be
         continuing; and

                  (C)      an executed supplemental indenture (if any).

                  Notwithstanding the provisions of Section 301 and of this
Section 303, if all the Securities of any series are not to be issued at one
time, it shall not be necessary to deliver an Officers' Certificate otherwise
required pursuant to Section 301 or the Company Order, Opinion of Counsel or
Officers' Certificate otherwise required pursuant to the preceding paragraph at
the time of issuance of each Security of such series, but such order, opinion
and certificates, with appropriate modifications to cover such future issuances,
shall be delivered at or before the time of issuance of the first Security of
such series.

                  If such form or terms have been so established, the Trustee
shall not be required to authenticate and deliver any such Securities if the
issue of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties, obligations or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the
Trustee. Notwithstanding the generality of the foregoing, the Trustee will not
be required to authenticate Securities denominated in a Foreign Currency if the
Trustee reasonably believes that it would be unable to perform its duties with
respect to such Securities.

                                      -25-

<PAGE>

                  Each Registered Security shall be dated the date of its
authentication and each Bearer Security shall be dated as of the date specified
as contemplated by Section 301.

                  No Security or coupon shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose unless there appears on
such Security or Security to which such coupon appertains a certificate of
authentication substantially in the form provided for herein duly executed by
the Trustee or an Authenticating Agent by manual signature of an authorized
signatory, and such certificate upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and
delivered hereunder and is entitled to the benefits of this Indenture.
Notwithstanding the foregoing, if any Security shall have been authenticated and
delivered hereunder but never issued and sold by the Company, and the Company
shall deliver such Security to the Trustee for cancellation as provided in
Section 310 together with a written statement (which need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel) stating that
such Security has never been issued and sold by the Company, for all purposes of
this Indenture such Security shall be deemed never to have been authenticated
and delivered hereunder and shall never be entitled to the benefits of this
Indenture.

                  SECTION 304  Temporary Securities.
                               --------------------

                  (a) Pending the preparation of definitive Securities of any
series, the Company may execute, and upon Company Order the Trustee shall
authenticate and deliver, temporary Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Securities in lieu of which they
are issued, in registered form, or, if authorized, in bearer form with one or
more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the Officers executing such
Securities may determine, as conclusively evidenced by their execution of such
Securities. In the case of Securities of any series, such temporary Securities
may be in global form.

                  Except in the case of temporary Securities in global form
(which shall be exchanged in accordance with Section 304(b) or as otherwise
provided in or pursuant to a Board Resolution), if temporary Securities of any
series are issued, the Company will cause definitive Securities of that series
to be prepared without unreasonable delay. After the preparation of definitive
Securities of such series, the temporary Securities of such series shall be
exchangeable for definitive Securities of such series upon surrender of the
temporary Securities of such series at the office or agency of the Company in a
Place of Payment for that series, without charge to the Holder. Upon surrender
for cancellation of any one or more temporary Securities of any series
(accompanied by any non-matured coupons appertaining thereto), the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
like principal amount of definitive Securities of the same series of authorized
denominations; provided, however, that no definitive Bearer Security shall be
delivered in exchange for a temporary Registered Security; and provided further
that a definitive Bearer Security shall be delivered in

                                      -26-

<PAGE>

exchange for a temporary Bearer Security only in compliance with the conditions
set forth in Section 303. Until so exchanged, the temporary Securities of any
series shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities of such series.

                  (b) Unless otherwise provided in or pursuant to a Board
Resolution, this Section 304(b) shall govern the exchange of temporary
Securities issued in global form. If temporary Securities of any series are
issued in global form, any such temporary global Security shall, unless
otherwise provided therein, be delivered to the London office of a depositary or
common depositary (the "Common Depositary"), for the benefit of Euroclear and
Clearstream, for credit to the respective accounts of the beneficial owners of
such Securities (or to such other accounts as they may direct).

                  Without unnecessary delay but in any event not later than the
date specified in, or determined pursuant to the terms of, any such temporary
global Security (the "Exchange Date"), the Company shall deliver to the Trustee
definitive Securities, in aggregate principal amount equal to the principal
amount of such temporary global Security, executed by the Company. On or after
the Exchange Date, such temporary global Security shall be surrendered by the
Common Depositary to the Trustee, as the Company's agent for such purpose, to be
exchanged, in whole or from time to time in part, for definitive Securities
without charge, and the Trustee shall authenticate and deliver, in exchange for
each portion of such temporary global Security and upon receipt of the Company
Order described in Section 303, an equal aggregate principal amount of
definitive Securities of the same series of authorized denominations and of like
tenor as the portion of such temporary global Security to be exchanged. The
definitive Securities to be delivered in exchange for any such temporary global
Security shall be in bearer form, registered form, permanent global bearer form
or permanent global registered form, or any combination thereof, as specified as
contemplated by Section 301, and, if any combination thereof is so specified, as
requested by the beneficial owner thereof; provided, however, that, unless
otherwise specified in such temporary global Security, upon such presentation by
the Common Depositary, such temporary global Security is accompanied by a
certificate dated the Exchange Date or a subsequent date and signed by Euroclear
as to the portion of such temporary global Security held for its account then to
be exchanged and a certificate dated the Exchange Date or a subsequent date and
signed by Clearstream as to the portion of such temporary global Security held
for its account then to be exchanged, each in the form set forth in Exhibit A-2
to this Indenture or in such other form as may be established pursuant to
Section 301; and provided further that definitive Bearer Securities shall be
delivered in exchange for a portion of a temporary global Security only in
compliance with the requirements of Section 303.

                  Unless otherwise specified in such temporary global Security,
the interest of a beneficial owner of Securities of a series in a temporary
global Security shall be exchanged for definitive Securities of the same series
and of like tenor following the Exchange Date when the account holder instructs
Euroclear or Clearstream, as the case may be, to request such exchange on his
behalf and delivers to Euroclear or Clearstream, as the case may be, a
certificate in the form set forth in Exhibit A-1 to this Indenture (or in such
other form as may be established pursuant to Section 301), dated no earlier than

                                      -27-

<PAGE>

15 days prior to the Exchange Date, copies of which certificate shall be
available from the offices of Euroclear and Clearstream, the Trustee, any
Authenticating Agent appointed for such series of Securities and each Paying
Agent. Unless otherwise specified in such temporary global Security, any such
exchange shall be made free of charge to the beneficial owners of such temporary
global Security, except that a Person receiving definitive Securities must bear
the cost of insurance, postage, transportation and the like unless such Person
takes delivery of such definitive Securities in person at the offices of
Euroclear or Clearstream. Definitive Securities in bearer form to be delivered
in exchange for any portion of a temporary global Security shall be delivered
only outside the United States.

                  Until exchanged in full as hereinabove provided, the temporary
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities of the same series and of like
tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 301, interest payable on a temporary global
Security on an Interest Payment Date for Securities of such series occurring
prior to the applicable Exchange Date shall be payable to Euroclear and
Clearstream on such Interest Payment Date upon delivery by Euroclear and
Clearstream to the Trustee of a certificate or certificates in the form set
forth in Exhibit A-2 to this Indenture (or in such other forms as may be
established pursuant to Section 301), for credit without further interest on or
after such Interest Payment Date to the respective accounts of Persons who are
the beneficial owners of such temporary global Security on such Interest Payment
Date and who have each delivered to Euroclear or Clearstream, as the case may
be, a certificate dated no earlier than 15 days prior to the Interest Payment
Date occurring prior to such Exchange Date in the form set forth as Exhibit A-1
to this Indenture (or in such other forms as may be established pursuant to
Section 301). Notwithstanding anything to the contrary herein contained, the
certifications made pursuant to this paragraph shall satisfy the certification
requirements of the preceding two paragraphs of this Section 304(b) and of the
third paragraph of Section 303 of this Indenture and the interests of the
Persons who are the beneficial owners of the temporary global Security with
respect to which such certification was made will be exchanged for definitive
Securities of the same series and of like tenor on the Exchange Date or the date
of certification if such date occurs after the Exchange Date, without further
act or deed by such beneficial owners. Except as otherwise provided in this
paragraph, no payments of principal (or premium, if any) or interest, if any,
owing with respect to a beneficial interest in a temporary global Security will
be made unless and until such interest in such temporary global Security shall
have been exchanged for an interest in a definitive Security. Any interest so
received by Euroclear and Clearstream and not paid as herein provided shall be
returned to the Trustee prior to the expiration of two years after such Interest
Payment Date in order to be repaid to the Company.

                  SECTION 305  Registration, Registration of Transfer and
                               ------------------------------------------
                               Exchange.
                               --------

                  The Company shall cause to be kept at the Corporate Trust
Office of the Trustee or in any office or agency of the Company in a Place of
Payment a register for each series of Securities (the registers maintained in
such office or in any such office or

                                      -28-

<PAGE>

agency of the Company in a Place of Payment being herein sometimes referred to
collectively as the "Security Register") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Registered Securities and of transfers of Registered Securities. The Security
Register shall be in written form or any other form capable of being converted
into written form within a reasonable time. The Trustee, at its Corporate Trust
Office, is hereby initially appointed "Security Registrar" for the purpose of
registering Registered Securities and transfers of Registered Securities on such
Security Register as herein provided. In the event that the Trustee shall cease
to be Security Registrar, it shall have the right to examine the Security
Register at all reasonable times.

                  Upon surrender for registration of transfer of any Registered
Security of any series at any office or agency of the Company in a Place of
Payment for that series, the Company shall execute, and the Trustee shall
authenticate and deliver, subject to the terms and conditions of this Article
Three, in the name of the designated transferee or transferees, one or more new
Registered Securities of the same series, of any authorized denominations and of
a like aggregate principal amount, bearing a number not contemporaneously
outstanding and containing identical terms and provisions.

                  At the option of the Holder, Registered Securities of any
series may be exchanged for other Registered Securities of the same series, of
any authorized denomination or denominations and of a like aggregate principal
amount, containing identical terms and provisions, upon surrender of the
Registered Securities to be exchanged at any such office or agency. Whenever any
Registered Securities are so surrendered for exchange, the Company shall
execute, and the Trustee shall authenticate and deliver, the Registered
Securities which the Holder making the exchange is entitled to receive. Unless
otherwise specified with respect to any series of Securities as contemplated by
Section 301, Bearer Securities may not be issued in exchange for Registered
Securities.

                  If (but only if) permitted by the applicable Board Resolution
and (subject to Section 303) set forth in the applicable Officers' Certificate,
or in any indenture supplemental hereto, delivered as contemplated by Section
301, at the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and tenor, upon surrender
of the Bearer Securities to be exchanged at any such office or agency, with all
unmatured coupons and all matured coupons in default thereto appertaining. If
the Holder of a Bearer Security is unable to produce any such unmatured coupon
or coupons or matured coupon or coupons in default, any such permitted exchange
may be effected if the Bearer Securities are accompanied by payment in funds
acceptable to the Company in an amount equal to the face amount of such missing
coupon or coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless. If thereafter the Holder of such Security shall surrender to any
Paying Agent any such missing coupon in respect of which such a payment shall
have been made, such Holder shall be entitled to receive the amount of such
payment; provided, however, that, except as otherwise

                                      -29-

<PAGE>

provided in Section 1002, interest represented by coupons shall be payable only
upon presentation and surrender of those coupons at an office or agency located
outside the United States. Notwithstanding the foregoing, in case a Bearer
Security of any series is surrendered at any such office or agency in a
permitted exchange for a Registered Security of the same series and like tenor
after the close of business at such office or agency on (i) any Regular Record
Date and before the opening of business at such office or agency on the relevant
Interest Payment Date, or (ii) any Special Record Date and before the opening of
business at such office or agency on the related proposed date for payment of
Defaulted Interest, such Bearer Security shall be surrendered without the coupon
relating to such Interest Payment Date or proposed date for payment, as the case
may be, and interest or Defaulted Interest, as the case may be, will not be
payable on such Interest Payment Date or proposed date for payment, as the case
may be, in respect of the Registered Security issued in exchange for such Bearer
Security, but will be payable only to the Holder of such coupon when due in
accordance with the provisions of this Indenture.

                  Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

                  Notwithstanding the foregoing, except as otherwise specified
as contemplated by Section 301, any permanent global Security shall be
exchangeable only as provided in this paragraph. If any beneficial owner of an
interest in a permanent global Security is entitled to exchange such interest
for Securities of such series and of like tenor and principal amount of another
authorized form and denomination, as specified as contemplated by Section 301
and provided that any applicable notice provided in the permanent global
Security shall have been given, then without unnecessary delay but in any event
not later than the earliest date on which such interest may be so exchanged, the
Company shall deliver to the Trustee definitive Securities in aggregate
principal amount equal to the principal amount of such beneficial owner's
interest in such permanent global Security, executed by the Company. On or after
the earliest date on which such interests may be so exchanged, such permanent
global Security shall be surrendered by the Common Depositary or such other
depositary as shall be specified in the Company Order with respect thereto to
the Trustee, as the Company's agent for such purpose, to be exchanged, in whole
or from time to time in part, for definitive Securities without charge and the
Trustee shall authenticate and deliver, in exchange for each portion of such
permanent global Security, an equal aggregate principal amount of definitive
Securities of the same series of authorized denominations and of like tenor as
the portion of such permanent global Security to be exchanged which, unless the
Securities of the series are not issuable both as Bearer Securities and as
Registered Securities, as specified as contemplated by Section 301, shall be in
the form of Bearer Securities or Registered Securities, or any combination
thereof, as shall be specified by the beneficial owner thereof; provided,
however, that no such exchanges may occur during a period beginning at the
opening of business 15 days before any selection of Securities to be redeemed
and ending on the relevant Redemption Date if the Security for which exchange is
requested may be among those selected for redemption; and provided further that
no Bearer Security delivered in exchange for a portion of a permanent global
Security shall be

                                      -30-

<PAGE>

mailed or otherwise delivered to any location in the United States. If a
Registered Security is issued in exchange for any portion of a permanent global
Security after the close of business at the office or agency where such exchange
occurs on (i) any Regular Record Date and before the opening of business at such
office or agency on the relevant Interest Payment Date, or (ii) any Special
Record Date and before the opening of business at such office or agency on the
related proposed date for payment of Defaulted Interest, interest or Defaulted
Interest, as the case may be, will not be payable on such Interest Payment Date
or proposed date for payment, as the case may be, in respect of such Registered
Security, but will be payable on such Interest Payment Date or proposed date for
payment, as the case may be, only to the Person to whom interest in respect of
such portion of such permanent global Security is payable in accordance with the
provisions of this Indenture.

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

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

                  No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 304, 906, 1107 or 1305 not involving any
transfer.

                  The Company shall not be required (i) to issue, register the
transfer of or exchange any Security if such Security may be among those
selected for redemption during a period beginning at the opening of business 15
days before selection of the Securities to be redeemed under Section 1103 or
1203 and ending at the close of business on (A) if such Securities are issuable
only as Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if such Securities are issuable as Bearer Securities, the day
of the first publication of the relevant notice of redemption or, if such
Securities are also issuable as Registered Securities and there is no
publication, the mailing of the relevant notice of redemption, or (ii) to
register the transfer of or exchange any Registered Security so selected for
redemption in whole or in part, except, in the case of any Registered Security
to be redeemed in part, the portion thereof not to be redeemed, or (iii) to
exchange any Bearer Security so selected for redemption except that such a
Bearer Security may be exchanged for a Registered Security of that series and
like tenor, provided that such Registered Security shall be simultaneously
surrendered for redemption, or (iv) to issue, register the transfer of or
exchange any Security which has been surrendered for repayment at the option of
the Holder, except the portion, if any, of such Security not to be so repaid.

                                      -31-

<PAGE>

          Each Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder's Security in violation of any provision of this
Indenture and/or applicable United States Federal or state securities law.

          The Trustee shall have no obligation or duty to monitor, determine or
inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest
in any Security (including any transfers between or among depository
participants or beneficial owners of interests in any global Security) other
than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by, the terms of this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

          SECTION 306   Mutilated, Destroyed, Lost and Stolen Securities.
                        ------------------------------------------------

          If any mutilated Security or a Security with a mutilated coupon
appertaining to it is surrendered to the Trustee or the Company, together with,
in proper cases, such security or indemnity as may be required by the Company or
the Trustee to save each of them or any agent of either of them harmless, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and principal amount, containing
identical terms and provisions and bearing a number not contemporaneously
outstanding, with coupons corresponding to the coupons, if any, appertaining to
the surrendered Security.

          If there shall be delivered to the Company and to the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
or coupon, and (ii) such security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the absence
of notice to the Company or the Trustee that such Security or coupon has been
acquired by a protected purchaser (as defined in Article 8 of the Uniform
Commercial Code), the Company shall execute and upon receipt of a Company Order
indicating its request and according to its directions the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen Security
or in exchange for the Security to which a destroyed, lost or stolen coupon
appertains (with all appurtenant coupons not destroyed, lost or stolen), a new
Security of the same series and principal amount, containing identical terms and
provisions and bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to such destroyed, lost or
stolen Security or to the Security to which such destroyed, lost or stolen
coupon appertains.

          Notwithstanding the provisions of the previous two paragraphs, in case
any such mutilated, destroyed, lost or stolen Security or coupon has become or
is about to become due and payable, the Company in its discretion may, instead
of issuing a new Security, with coupons corresponding to the coupons, if any,
appertaining to such mutilated, destroyed, lost or stolen Security or to the
Security to which such mutilated, destroyed, lost or stolen coupon appertains,
pay such Security or coupon; provided, however, that payment of principal of
(and premium, if any) and interest, if any, on

                                      -32-

<PAGE>

Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 301, any interest on
Bearer Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

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

          Every new Security of any series, together with its coupons, if any,
issued pursuant to this Section in lieu of any destroyed, lost or stolen
Security, or in exchange for a Security to which a destroyed, lost or stolen
coupon appertains, shall constitute a valid, original additional contractual
obligation of the Company evidencing the same debt as the Security and coupon in
lieu of which it is issued, whether or not the destroyed, lost or stolen
Security and its coupons, if any, or the destroyed, lost or stolen coupon shall
be at any time enforceable by anyone, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Securities
of that series and their coupons, if any, duly issued hereunder.

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

          SECTION 307   Payment of Interest; Interest Rights Preserved; Optional
                        --------------------------------------------------------
                        Interest Reset.
                        --------------

          (a) Except as otherwise specified with respect to a series of
Securities in accordance with the provisions of Section 301, interest, if any,
on any Registered Security that is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest at the office or
agency of the Company maintained for such purpose pursuant to Section 1002;
provided, however, that each installment of interest, if any, on any Registered
Security may at the Company's option be paid by (i) mailing a check for such
interest, payable to or upon the written order of the Person entitled thereto
pursuant to Section 309, to the address of such Person as it appears on the
Security Register or (ii) transfer to an account maintained by the payee located
inside the United States.

          Unless otherwise provided as contemplated by Section 301 with respect
to the Securities of any series, payment of interest, if any, may be made, in
the case of a Bearer Security, by transfer to an account maintained by the payee
with a bank located outside the United States.

          Unless otherwise provided as contemplated by Section 301, every
permanent global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to each of Euroclear and Clearstream with
respect to that

                                      -33-

<PAGE>

portion of such permanent global Security held for its account by the Common
Depositary, for the purpose of permitting each of Euroclear and Clearstream to
credit the interest, if any, received by it in respect of such permanent global
Security to the accounts of the beneficial owners thereof.

          In case a Bearer Security of any series is surrendered in exchange for
a Registered Security of such series after the close of business (at an office
or agency in a Place of Payment for such series) on any Regular Record Date and
before the opening of business (at such office or agency) on the next succeeding
Interest Payment Date, such Bearer Security shall be surrendered without the
coupon relating to such Interest Payment Date and interest will not be payable
on such Interest Payment Date in respect of the Registered Security issued in
exchange for such Bearer Security, but will be payable only to the Holder of
such coupon when due in accordance with the provisions of this Indenture.

          Except as otherwise specified with respect to a series of Securities
in accordance with the provisions of Section 301, any interest on any Registered
Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called "Defaulted Interest")
shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to
     the Persons in whose names the Registered Securities of such series (or
     their respective Predecessor Securities) are registered at the close of
     business on a Special Record Date for the payment of such Defaulted
     Interest, which shall be fixed in the following manner. The Company shall
     notify the Trustee in writing of the amount of Defaulted Interest proposed
     to be paid on each Registered Security of such series and the date of the
     proposed payment (which shall not be less than 20 days after such notice is
     received by the Trustee), and at the same time the Company shall deposit
     with the Trustee an amount of money in the Currency in which the Securities
     of such series are payable (except as otherwise specified pursuant to
     Section 301 for the Securities of such series and except, if applicable, as
     provided in Sections 312(b), 312(d) and 312(e)) equal to the aggregate
     amount proposed to be paid in respect of such Defaulted Interest or shall
     make arrangements satisfactory to the Trustee for such deposit on or prior
     to the date of the proposed payment, such money when deposited to be held
     in trust for the benefit of the Persons entitled to such Defaulted Interest
     as in this clause provided. Thereupon the Trustee shall fix a Special
     Record Date for the payment of such Defaulted Interest which shall be not
     more than 15 days and not less than 10 days prior to the date of the
     proposed payment and not less than 10 days after the receipt by the Trustee
     of the notice of the proposed payment. The Trustee shall promptly notify
     the Company of such Special Record Date and, in the name and at the expense
     of the Company, shall cause notice of the proposed payment of such
     Defaulted Interest and the Special Record Date therefor to be mailed,
     first-class postage prepaid, to each Holder of Registered Securities of
     such series at his

                                      -34-

<PAGE>

     address as it appears in the Security Register 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 the Registered Securities of such series (or their respective
     Predecessor Securities) are registered at the close of business on such
     Special Record Date and shall no longer be payable pursuant to the
     following clause (2). In case a Bearer Security of any series is
     surrendered at the office or agency in a Place of Payment for such series
     in exchange for a Registered Security of such series after the close of
     business at such office or agency on any Special Record Date and before the
     opening of business at such office or agency on the related proposed date
     for payment of Defaulted Interest, such Bearer Security shall be
     surrendered without the coupon relating to such proposed date of payment
     and Defaulted Interest will not be payable on such proposed date of payment
     in respect of the Registered Security issued in exchange for such Bearer
     Security, but will be payable only to the Holder of such coupon when due in
     accordance with the provisions of this Indenture.

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

          (b) The provisions of this Section 307(b) may be made applicable to
any series of Securities pursuant to Section 301 (with such modifications,
additions or substitutions as may be specified pursuant to such Section 301).
The interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable) on any Security of such series may be reset by the
Company on the date or dates specified on the face of such Security (each an
"Optional Reset Date"). The Company may exercise such option with respect to
such Security by notifying the Trustee of such exercise at least 45 but not more
than 60 days prior to an Optional Reset Date for such Security. Not later than
40 days prior to each Optional Reset Date, the Trustee shall transmit, in the
manner provided for in Section 106, to the Holder of any such Security a notice
(the "Reset Notice") indicating whether the Company has elected to reset the
interest rate (or the spread or spread multiplier used to calculate such
interest rate, if applicable), and if so (i) such new interest rate (or such new
spread or spread multiplier, if applicable) and (ii) the provisions, if any, for
redemption during the period from such Optional Reset Date to the next Optional
Reset Date or if there is no such next Optional Reset Date, to the Stated
Maturity of such Security (each such period a "Subsequent Interest Period"),
including the date or dates on which or the period or periods during which and
the price or prices at which such redemption may occur during the Subsequent
Interest Period.

          Notwithstanding the foregoing, not later than 20 days prior to the
Optional Reset Date, the Company may, at its option, revoke the interest rate
(or the spread or spread multiplier used to calculate such interest rate, if
applicable) provided for in the

                                      -35-

<PAGE>

Reset Notice and establish a higher interest rate (or a spread or spread
multiplier providing for a higher interest rate, if applicable) for the
Subsequent Interest Period by causing the Trustee to transmit, in the manner
provided for in Section 106, notice of such higher interest rate (or such spread
or spread multiplier providing for a higher interest rate, if applicable) to the
Holder of such Security. Such notice shall be irrevocable. All Securities with
respect to which the interest rate (or the spread or spread multiplier used to
calculate such interest rate, if applicable) is reset on an Optional Reset Date,
and with respect to which the Holders of such Securities have not tendered such
Securities for repayment (or have validly revoked any such tender) pursuant to
the next succeeding paragraph, will bear such higher interest rate (or such
spread or spread multiplier providing for a higher interest rate, if
applicable).

          The Holder of any such Security may have the option to elect repayment
by the Company of the principal of such Security on each Optional Reset Date at
a price equal to the principal amount thereof plus interest accrued to such
Optional Reset Date. In order to obtain repayment on an Optional Reset Date, the
Holder must follow the procedures set forth in Article Thirteen for repayment at
the option of Holders except that the period for delivery or notification to the
Trustee shall be at least 25 but not more than 35 days prior to such Optional
Reset Date and except that, if the Holder has tendered any Security for
repayment pursuant to the Reset Notice, the Holder may, by written notice to the
Trustee, revoke such tender or repayment until the close of business on the
tenth day before such Optional Reset Date.

          Subject to the foregoing provisions of this Section and Section 305,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

          SECTION 308   Optional Extension of Maturity.
                        ------------------------------

          The provisions of this Section 308 may be made applicable to any
series of Securities pursuant to Section 301 (with such modifications, additions
or substitutions as may be specified pursuant to such Section 301). The Stated
Maturity of any Security of such series may be extended at the option of the
Company for the period or periods specified on the face of such Security (each
an "Extension Period") up to but not beyond the date (the "Final Maturity") set
forth on the face of such Security. The Company may exercise such option with
respect to any Security by notifying the Trustee of such exercise at least 45
but not more than 60 days prior to the Stated Maturity of such Security in
effect prior to the exercise of such option (the "Original Stated Maturity"). If
the Company exercises such option, the Trustee shall transmit, in the manner
provided for in Section 106, to the Holder of such Security not later than 40
days prior to the Original Stated Maturity a notice (the "Extension Notice")
indicating (i) the election of the Company to extend the Stated Maturity, (ii)
the new Stated Maturity, (iii) the interest rate (or spread, spread multiplier
or other formula used to calculate such interest rate, if applicable), if any,
applicable to the Extension Period and (iv) the provisions, if any, for
redemption during such Extension Period. Upon the Trustee's transmittal of the
Extension Notice, the Stated Maturity of such Security shall be extended
automatically

xc                                      -36-

<PAGE>

and, except as modified by the Extension Notice and as described in the next
paragraph, such Security will have the same terms as prior to the transmittal of
such Extension Notice.

          Notwithstanding the foregoing, not later than 20 days before the
Original Stated Maturity of such Security, the Company may, at its option,
revoke the interest rate (or spread, spread multiplier or other formula used to
calculate such interest rate, if applicable) provided for in the Extension
Notice and establish a higher interest rate (or spread, spread multiplier or
other formula used to calculate such higher interest rate, if applicable) for
the Extension Period by causing the Trustee to transmit, in the manner provided
for in Section 106, notice of such higher interest rate (or spread, spread
multiplier or other formula used to calculate such interest rate, if applicable)
to the Holder of such Security. Such notice shall be irrevocable. All Securities
with respect to which the Stated Maturity is extended will bear such higher
interest rate.

          If the Company extends the Stated Maturity of any Security, the Holder
will have the option to elect repayment of such Security by the Company on the
Original Stated Maturity at a price equal to the principal amount thereof, plus
interest accrued to such date. In order to obtain repayment on the Original
Stated Maturity once the Company has extended the Stated Maturity thereof, the
Holder must follow the procedures set forth in Article Thirteen for repayment at
the option of Holders, except that the period for delivery or notification to
the Trustee shall be at least 25 but not more than 35 days prior to the Original
Stated Maturity and except that, if the Holder has tendered any Security for
repayment pursuant to an Extension Notice, the Holder may by written notice to
the Trustee revoke such tender for repayment until the close of business on the
tenth day before the Original Stated Maturity.

          SECTION 309    Persons Deemed Owners.
                         ---------------------

          Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Registered Security is registered as the
owner of such Security for the purpose of receiving payment of principal of (and
premium, if any) and (subject to Sections 305 and 307) interest, if any, on such
Registered Security and for all other purposes whatsoever, whether or not such
Registered Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

          Title to any Bearer Security and any coupons appertaining thereto
shall pass by delivery. The Company, the Trustee and any agent of the Company or
the Trustee may treat the bearer of any Bearer Security and the bearer of any
coupon as the absolute owner of such Security or coupon for the purpose of
receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Security or coupon be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

                                      -37-

<PAGE>

          None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Security in global form or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests.

          Notwithstanding the foregoing, with respect to any global Security,
nothing herein shall prevent the Company, the Trustee, or any agent of the
Company or the Trustee, from giving effect to any written certification, proxy
or other authorization furnished by any depositary, as a Holder, with respect to
such global Security or impair, as between such depositary and owners of
beneficial interests in such global Security, the operation of customary
practices governing the exercise of the rights of such depositary (or its
nominee) as Holder of such global Security.

          SECTION 310    Cancellation.
                         ------------

          All Securities and coupons surrendered for payment, redemption,
repayment at the option of the Holder, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person
other than the Trustee, be delivered to the Trustee, and any such Securities and
coupons and Securities and coupons surrendered directly to the Trustee for any
such purpose shall be promptly cancelled by it. The Company may at any time
deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. If the Company shall so
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 surrendered to the Trustee for cancellation. No
Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this
Indenture. Cancelled Securities and coupons held by the Trustee shall be
destroyed by the Trustee and the Trustee shall deliver a certificate of such
destruction to the Company, unless by a Company Order the Company directs the
return of any cancelled Securities to it.

          SECTION 311    Computation of Interest.
                         -----------------------

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

          SECTION 312    Currency and Manner of Payments in Respect of
                         ---------------------------------------------
                         Securities.
                         ----------

          (a)  Unless otherwise specified with respect to any Securities
pursuant to Section 301, with respect to Registered Securities of any series not
permitting the

                                      -38-

<PAGE>

election provided for in paragraph (b) below or the Holders of which have not
made the election provided for in paragraph (b) below, and with respect to
Bearer Securities of any series, except as provided in paragraph (d) below,
payment of the principal of (and premium, if any) and interest, if any, on any
Registered or Bearer Security of such series will be made in the Currency in
which such Registered Security or Bearer Security, as the case may be, is
payable. The provisions of this Section 312 may be modified or superseded with
respect to any Securities pursuant to Section 301.

          (b)  It may be provided pursuant to Section 301 with respect to
Registered Securities of any series that Holders shall have the option, subject
to paragraphs (d) and (e) below, to receive payments of principal of (or
premium, if any) or interest, if any, on such Registered Securities in any of
the Currencies which may be designated for such election by delivering to the
Trustee for such series of Registered Securities a written election with
signature guarantees and in the applicable form established pursuant to Section
301, not later than the close of business on the Election Date immediately
preceding the applicable payment date. If a Holder so elects to receive such
payments in any such Currency, such election will remain in effect for such
Holder or any transferee of such Holder until changed by such Holder or such
transferee by written notice to the Trustee for such series of Registered
Securities (but any such change must be made not later than the close of
business on the Election Date immediately preceding the next payment date to be
effective for the payment to be made on such payment date and no such change of
election may be made with respect to payments to be made on any Registered
Security of such series with respect to which an Event of Default has occurred
or with respect to which the Company has deposited funds pursuant to Article
Four or Fourteen or with respect to which a notice of redemption has been given
by the Company or a notice of option to elect repayment has been sent by such
Holder or such transferee). Any Holder of any such Registered Security who shall
not have delivered any such election to the Trustee of such series of Registered
Securities not later than the close of business on the applicable Election Date
will be paid the amount due on the applicable payment date in the relevant
Currency as provided in Section 312(a). The Trustee for each such series of
Registered Securities shall notify the Exchange Rate Agent as soon as
practicable after the Election Date of the aggregate principal amount of
Registered Securities for which Holders have made such written election.

          (c) Unless otherwise specified pursuant to Section 301, if the
election referred to in paragraph (b) above has been provided for pursuant to
Section 301, then, unless otherwise specified pursuant to Section 301, not later
than the fourth Business Day after the Election Date for each payment date for
Registered Securities of any series, the Exchange Rate Agent will deliver to the
Company a written notice specifying the Currency in which Registered Securities
of such series are payable, the respective aggregate amounts of principal of
(and premium, if any) and interest, if any, on the Registered Securities to be
paid on such payment date, specifying the amounts in such Currency so payable in
respect of the Registered Securities as to which the Holders of Registered
Securities denominated in any Currency shall have elected to be paid in another
Currency as provided in paragraph (b) above. If the election referred to in
paragraph (b) above has been provided for pursuant to Section 301 and if at
least one Holder has made such election, then, unless otherwise specified
pursuant to Section 301,

                                      -39-

<PAGE>

on the second Business Day preceding such payment date the Company will deliver
to the Trustee for such series of Registered Securities an Exchange Rate
Officer's Certificate in respect of the Dollar or Foreign Currency or Currencies
payments to be made on such payment date. Unless otherwise specified pursuant to
Section 301, the Dollar or Foreign Currency or Currencies amount receivable by
Holders of Registered Securities who have elected payment in a Currency as
provided in paragraph (b) above shall be determined by the Company on the basis
of the applicable Market Exchange Rate in effect on the second Business Day (the
"Valuation Date") immediately preceding each payment date, and such
determination shall be conclusive and binding for all purposes, absent manifest
error.

          (d)  If a Conversion Event occurs with respect to a Foreign Currency
in which any of the Securities are denominated or payable other than pursuant to
an election provided for pursuant to paragraph (b) above, then with respect to
each date for the payment of principal of (and premium, if any) and interest, if
any, on the applicable Securities denominated or payable in such Foreign
Currency occurring after the last date on which such Foreign Currency was used
(the "Conversion Date"), the Dollar shall be the Currency of payment for use on
each such payment date. Unless otherwise specified pursuant to Section 301, the
Dollar amount to be paid by the Company to the Trustee of each such series of
Securities and by such Trustee or any Paying Agent to the Holders of such
Securities with respect to such payment date shall be, in the case of a Foreign
Currency other than a currency unit, the Dollar Equivalent of the Foreign
Currency or, in the case of a currency unit, the Dollar Equivalent of the
Currency Unit, in each case as determined by the Exchange Rate Agent in the
manner provided in paragraph (f) or (g) below.

          (e)  Unless otherwise specified pursuant to Section 301, if the Holder
of a Registered Security denominated in any Currency shall have elected to be
paid in another Currency as provided in paragraph (b) above, and a Conversion
Event occurs with respect to such elected Currency, such Holder shall receive
payment in the Currency in which payment would have been made in the absence of
such election; and if a Conversion Event occurs with respect to the Currency in
which payment would have been made in the absence of such election, such Holder
shall receive payment in Dollars as provided in paragraph (d) of this Section
312.

          (f)  The "Dollar Equivalent of the Foreign Currency" shall be
determined by the Exchange Rate Agent and shall be obtained for each subsequent
payment date by converting the specified Foreign Currency into Dollars at the
Market Exchange Rate on the Conversion Date.

          (g)  The "Dollar Equivalent of the Currency Unit" shall be determined
by the Exchange Rate Agent and subject to the provisions of paragraph (h) below
shall be the sum of each amount obtained by converting the Specified Amount of
each Component Currency into Dollars at the Market Exchange Rate for such
Component Currency on the Valuation Date with respect to each payment.

                                      -40-

<PAGE>

          (h)  For purposes of this Section 312, the following terms shall have
the following meanings:

          A "Component Currency" shall mean any Currency which, on the
Conversion Date, was a component currency of the relevant currency unit,
including, but not limited to, the euro.

          A "Specified Amount" of a Component Currency shall mean the number of
units of such Component Currency or fractions thereof which were represented in
the relevant currency unit, including, but not limited to, the euro, on the
Conversion Date. If after the Conversion Date the official unit of any Component
Currency is altered by way of combination or subdivision, the Specified Amount
of such Component Currency shall be divided or multiplied in the same
proportion. If after the Conversion Date two or more Component Currencies are
consolidated into a single currency, the respective Specified Amounts of such
Component Currencies shall be replaced by an amount in such single Currency
equal to the sum of the respective Specified Amounts of such consolidated
Component Currencies expressed in such single Currency, and such amount shall
thereafter be a Specified Amount and such single Currency shall thereafter be a
Component Currency. If after the Conversion Date any Component Currency shall be
divided into two or more currencies, the Specified Amount of such Component
Currency shall be replaced by amounts of such two or more currencies, having an
aggregate Dollar Equivalent value at the Market Exchange Rate on the date of
such replacement equal to the Dollar Equivalent of the Specified Amount of such
former Component Currency at the Market Exchange Rate immediately before such
division, and such amounts shall thereafter be Specified Amounts and such
currencies shall thereafter be Component Currencies.

          If, after the Conversion Date of the relevant currency unit,
including, but not limited to, the euro, a Conversion Event (other than any
event referred to above in this definition of "Specified Amount") occurs with
respect to any Component Currency of such currency unit and is continuing on the
applicable Valuation Date, the Specified Amount of such Component Currency
shall, for purposes of calculating the Dollar Equivalent of the Currency Unit,
be converted into Dollars at the Market Exchange Rate in effect on the
Conversion Date of such Component Currency.

          "Election Date" shall mean the Regular Record Date for the applicable
series of Registered Securities or at least 16 days prior to Maturity, as the
case may be, or such other prior date for any series of Registered Securities as
specified pursuant to clause (13) of Section 301 by which the written election
referred to in Section 312(b) may be made.

          All decisions and determinations of the Exchange Rate Agent regarding
the Dollar Equivalent of the Foreign Currency, the Dollar Equivalent of the
Currency Unit, the Market Exchange Rate and changes in the Specified Amounts as
specified above shall be in its sole discretion and shall, in the absence of
manifest error, be conclusive for all purposes and irrevocably binding upon the
Company, the Trustee for the appropriate series of Securities and all Holders of
such Securities denominated or

                                      -41-

<PAGE>

payable in the relevant Currency. The Exchange Rate Agent shall promptly give
written notice to the Company and the Trustee for the appropriate series of
Securities of any such decision or determination.

          In the event that the Company determines in good faith that a
Conversion Event has occurred with respect to a Foreign Currency, the Company
will immediately give written notice thereof to the Trustee of the appropriate
series of Securities and to the Exchange Rate Agent (and such Trustee will
promptly thereafter give notice in the manner provided in Section 106 to the
affected Holders) specifying the Conversion Date. In the event the Company so
determines that a Conversion Event has occurred with respect to the euro or any
other currency unit in which Securities are denominated or payable, the Company
will immediately give written notice thereof to the Trustee of the appropriate
series of Securities and to the Exchange Rate Agent (and such Trustee will
promptly thereafter give notice in the manner provided in Section 106 to the
affected Holders) specifying the Conversion Date and the Specified Amount of
each Component Currency on the Conversion Date. In the event the Company
determines in good faith that any subsequent change in any Component Currency as
set forth in the definition of Specified Amount above has occurred, the Company
will similarly give written notice to the Trustee of the appropriate series of
Securities and to the Exchange Rate Agent.

          The Trustee of the appropriate series of Securities shall be fully
justified and protected in conclusively relying and acting upon information
received by it from the Company and the Exchange Rate Agent and shall not
otherwise have any duty or obligation to determine the accuracy or validity of
such information independent of the Company or the Exchange Rate Agent.

          SECTION 313   Appointment and Resignation of Successor Exchange Rate
                        ------------------------------------------------------
                        Agent.
                        -----

          (a) Unless otherwise specified pursuant to Section 301, if and so long
as the Securities of any series (i) are denominated in a Foreign Currency or
(ii) may be payable in a Foreign Currency, or so long as it is required under
any other provision of this Indenture, then the Company will maintain with
respect to each such series of Securities, or as so required, at least one
Exchange Rate Agent. The Company will cause the Exchange Rate Agent to make the
necessary foreign exchange determinations at the time and in the manner
specified pursuant to Section 301 for the purpose of determining the applicable
rate of exchange and, if applicable, for the purpose of converting the issued
Foreign Currency into the applicable payment Currency for the payment of
principal (and premium, if any) and interest, if any, pursuant to Section 312.

          (b) No resignation of the Exchange Rate Agent and no appointment of a
successor Exchange Rate Agent pursuant to this Section shall become effective
until the acceptance of appointment by the successor Exchange Rate Agent as
evidenced by a written instrument delivered to the Company and the Trustee of
the appropriate series of Securities accepting such appointment executed by the
successor Exchange Rate Agent.

                                      -42-

<PAGE>

          (c) If the Exchange Rate Agent shall resign, be removed or become
incapable of acting, or if a vacancy shall occur in the office of the Exchange
Rate Agent for any cause, with respect to the Securities of one or more series,
the Company, by or pursuant to a Board Resolution, shall promptly appoint a
successor Exchange Rate Agent or Exchange Rate Agents with respect to the
Securities of that or those series (it being understood that any such successor
Exchange Rate Agent may be appointed with respect to the Securities of one or
more or all of such series and that, unless otherwise specified pursuant to
Section 301, at any time there shall only be one Exchange Rate Agent with
respect to the Securities of any particular series that are originally issued by
the Company on the same date and that are initially denominated and/or payable
in the same Currency).

          SECTION 314   CUSIP Numbers.
                        -------------

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

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

          SECTION 401   Satisfaction and Discharge of Indenture.
                        ---------------------------------------

          Unless otherwise specified pursuant to Section 301, this Indenture
shall upon Company Request cease to be of further effect with respect to any
series of Securities specified in such Company Request (except as to any
surviving rights of registration of transfer or exchange of Securities of such
series expressly provided for herein or pursuant hereto and any right to receive
Additional Amounts, as provided in Section 1004), and the Trustee, upon receipt
of a Company Order, and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to
such series when

          (1)  either

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

                                      -43-

<PAGE>

     redemption and maturing after the relevant Redemption Date, whose surrender
     has been waived as provided in Section 1106, and (iv) Securities and
     coupons of such series for whose payment money has theretofore been
     deposited in trust or segregated and held in trust by the Trustee or Paying
     Agent (which may be the Company) and thereafter repaid to the Company or
     discharged from such trust, as provided in Section 1003) have been
     delivered to the Trustee for cancellation; or

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

                    (i)    have become due and payable, or

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

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

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

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee and any predecessor Trustee under
Section 606, the obligations of the Company to any Authenticating Agent under
Section 611, if money shall have been deposited with the Trustee pursuant to
subclause (B) of clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 and the obligations of
the Company and the Trustee with respect to Securities of such series under
Sections 305, 306, 1002 and 1004, with respect to the payment of Additional
Amounts, if any, with respect to any rights of Holders to require the Company to
repay such Securities as contemplated by Section 1301 and with respect to any
rights of

                                      -44-

<PAGE>

Holders to convert or exchange such Securities into other Securities, shall
survive. These obligations shall continue to be governed and construed in
accordance with Section 111.

          SECTION 402   Application of Trust Funds.
                        --------------------------

          Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Securities, the
coupons and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest, if any, for whose payment such money has been
deposited with or received by the Trustee, but such money need not be segregated
from other funds except to the extent required by law.

                                  ARTICLE FIVE

                                    REMEDIES

          SECTION 501   Events of Default.
                        -----------------

          "Event of Default", wherever used herein with respect to any
particular series of Securities, means any one of the following events as such
events may be otherwise amended in accordance with Section 301 (whatever the
reason for such Event of Default and whether or not it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

          (1) default in the payment of any interest upon, or any Additional
Amount payable in respect of, any Security of that series or of any coupon
appertaining thereto, when such interest or coupon becomes due and payable, and
continuance of such default for a period of 30 days; or

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

          (3) default in the deposit of any sinking fund payment, when and as
due by the terms of any Security of that series; or

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

                                      -45-

<PAGE>

          (5) the Company pursuant to or within the meaning of any Bankruptcy
Law: (A) commences a voluntary case or proceedings, (B) consents to the entry of
an order for relief against it in an involuntary case or proceedings, (C)
consents to the appointment of a Custodian of it or for all or substantially all
of its property, (D) makes a general assignment for the benefit of its
creditors, (E) files a petition in bankruptcy or answer or consent seeking
reorganization or relief, or (F) consents to the filing of such petition or the
appointment of or taking possession by a Custodian; or

          (6) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that: (A) is for relief against the Company in an involuntary
case, or adjudicates the Company insolvent or bankrupt, (B) appoints a Custodian
of the Company or for all or substantially all of its property, or (C) orders
the winding-up or liquidation of the Company, and the order or decree remains
unstayed and in effect for 60 days; or

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

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

          SECTION 502   Acceleration of Maturity; Rescission and Annulment.
                        --------------------------------------------------

          If an Event of Default (other than an Event of Default specified in
Section 501(5) or 501(6) with respect to the Company) with respect to Securities
of any series at the time Outstanding occurs and is continuing, then and in
every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Securities of that series may declare the principal
amount and premium if any (or, if any Securities are Original Issue Discount
Securities or Indexed Securities, such portion of the principal as may be
specified in the terms thereof) and accrued interest of all the Securities of
that series to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by the Holders), and upon any such
declaration such principal or specified portion thereof and interest shall
become immediately due and payable. If an Event of Default specified in Section
501(5) or 501(6) with respect to the Company occurs, the amounts described above
with respect to the Outstanding Securities of all series shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder. Upon payment of such principal and interest,
all of the Company's obligations under the Securities of such Series and this
Indenture, other than obligations under Section 606, shall terminate.

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

                                       -46-

<PAGE>

by written notice to the Company and the Trustee, may rescind and annul such
declaration and its consequences if:

         (1)  the Company has paid or deposited with the Trustee a sum
sufficient in cash to pay all principal (and premium, if any), interest and
Additional Amounts which have become due other than by such declaration of
acceleration, interest or any such overdue amounts, and amounts owing to the
Trustee;

         (2)  all Events of Default with respect to Securities of that series,
other than the nonpayment of the principal of (or premium, if any) or interest
on Securities of that series which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 514; and

         (3)  such rescission would not conflict with any judgment or decree of
a court of competent jurisdiction.

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

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

         The Company covenants that if:

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

         (2)  default is made in the payment of the principal of (or premium,
if any, on) any Security of any series at its Maturity, then the Company will,
upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders
of Securities of such series and coupons, the whole amount then due and payable
on such Securities and coupons for principal (and premium, if any) and interest,
if any, with interest upon any overdue principal (and premium, if any) and, to
the extent that payment of such interest shall be legally enforceable, upon any
overdue installments of interest, if any, at the rate or rates borne by or
provided for in such Securities, and, in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

         If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, and may
prosecute such proceeding to judgment or final decree, and may enforce the same
against the Company or any other obligor upon Securities of such 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 any other obligor upon such Securities
of such series, wherever situated.

                                       -47-

<PAGE>

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

         SECTION 504  Trustee May File Proofs of Claim.
                      -------------------------------- -

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

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

         (B)  to collect and receive any moneys or other property payable or
    deliverable on any such claims and to distribute the same; and any
    custodian, receiver, assignee, trustee, liquidator, sequestrator (or other
    similar official) in any such judicial proceeding is hereby authorized by
    each Holder of Securities of such series and coupons to make such payments
    to the Trustee, and in the event that the Trustee shall consent to the
    making of such payments directly to the Holders, to pay to the Trustee any
    amount due to it for the reasonable compensation, expenses, disbursements
    and advances of the Trustee and any predecessor Trustee, their agents and
    counsel, and any other amounts due the Trustee or any predecessor Trustee
    under Section 606.

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

                                       -48-

<PAGE>

              SECTION 505  Trustee May Enforce Claims Without Possession of
                           ------------------------------------------------
                           Securities or Coupons.
                           ---------------------

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

              SECTION 506  Application of Money Collected.
                           ------------------------------ -

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

              FIRST:  To the payment of all amounts due the Trustee and any
predecessor Trustee under Section 606;

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

              THIRD:  To the payment of the remainder, if any, to the Company or
any other Person or Persons entitled thereto.

              SECTION 507  Limitation on Suits.
                           -------------------

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

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

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

                                       -49-

<PAGE>

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

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

              (5)  no direction inconsistent with such written request has
been given to the Trustee during such 60-day period by the Holders of a majority
in principal amount of the Outstanding Securities of that series; it being
understood and intended that no one or more of such Holders shall have any right
in any manner whatever by virtue of, or by availing of, any provision of this
Indenture to affect, disturb or prejudice the rights of any other of such
Holders, or to obtain or to seek to obtain priority or preference over any other
of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all such
Holders.

              SECTION 508  Unconditional Right of Holders to Receive Principal,
                           ---------------------------------------------------
                           Premium and Interest and Additional Amounts, if Any.
                           ---------------------------------------------------

              Notwithstanding any other provision in this Indenture, the Holder
of any Security or coupon shall have the right which is absolute and
unconditional to receive payment of the principal of (and premium, if any) and
(subject to Sections 305 and 307) interest, if any, and Additional Amounts, if
any, on such Security or payment of such coupon on the respective due dates
expressed in such Security or coupon (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

              SECTION 509  Restoration of Rights and Remedies.
                           ---------------------------------- -

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

              SECTION 510  Rights and Remedies Cumulative.
                           ------------------------------

              Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities or coupons in the
last paragraph of Section 306, no right or remedy herein conferred upon or
reserved to the Trustee or to the Holders of Securities or coupons is intended
to be exclusive of any other right or remedy, and every right and remedy shall,
to the extent permitted by law, be cumulative and in addition to every other
right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy

                                       -50

<PAGE>

hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

          SECTION 511   Delay or Omission Not Waiver.
                        ----------------------------

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

          SECTION 512   Control by Holders of Securities.
                        --------------------------------

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

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

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

          (3)     the Trustee need not take any action, as determined in the
good faith of Trustee, which might involve it in personal liability or be unduly
prejudicial to the Holders of Securities of such series not consenting unless
the Trustee is offered indemnity satisfactory to it. This Section 512 shall be
in lieu of Section 316(a)1(A) of the TIA and such Section 316(a)1(A) is hereby
expressly excluded from this Indenture as permitted by the TIA.

          SECTION 513   Undertaking for Costs.
                        ---------------------

          All parties to this Indenture agree that 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 a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorney's fees and expenses,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant, provided that this
Section 513 shall not apply to a suit by the Trustee, a suit by a Holder
pursuant to Section 508 hereof, or a suit by Holders of more than 10% in
principal amount of the then Outstanding Securities. This Section 513 shall be
in lieu of Section 315(e) of the TIA and such Section 315(e) is hereby expressly
excluded from this Indenture, as permitted by TIA.

                                       -51-

<PAGE>

           SECTION 514  Waiver of Past Defaults.
                        -----------------------

           Subject to Section 502, the Holders of not less than a majority in
principal amount of the Outstanding Securities of any series may on behalf of
the Holders of all the Securities of such series and any related coupons waive
any past default hereunder with respect to such series and its consequences,
except a default

           (1)   in the payment of the principal of (or premium, if any) or
interest, if any, or Additional Amounts on any Security of such series or any
related coupons, or

           (2)   in respect of a covenant or provision hereof which under
Article Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Security of such series affected. Upon any such waiver, such
default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or Event of Default or
impair any right consequent thereon.

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

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

                                   ARTICLE SIX

                                   THE TRUSTEE

           SECTION 601  Notice of Defaults.
                        ------------------

           If a Default or Event of Default occurs and is known to the Trustee,
the Trustee shall give to each Holder of Securities of such series in a manner
and to the extent provided in TIA Section 313(c), notice of the Default within
90 days after it occurs, unless such Default shall have been cured or waived
before giving such notice; provided, however, that, except in the case of a
Default in the payment of the principal of (or premium, if any) or interest, if
any, on any Security of such series, or in the payment of any sinking fund
installment with respect to the Securities of such series, the Trustee shall be
protected in withholding such notice if and so long as the board of directors,
the executive committee or a trust committee of directors and/or Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interests of the Holders of the Securities and coupons of such
series; and provided further that in the case of any Default or breach of the
character specified in Section 501(4) with respect to

                                       -52-

<PAGE>

the Securities and coupons of such series, no such notice to Holders shall be
given until at least 60 days after the occurrence thereof unless otherwise
specified in accordance with Section 301. The Trustee shall not be deemed to
have knowledge of a Default unless a Responsible Officer of the Trustee has
received written notice of such Default.

                  SECTION 602  Certain Rights of Trustee.
                               -------------------------

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

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

                  (a) the Trustee need perform only those duties that are
                  specifically set forth in this Indenture and no others; and

                  (b) in the absence of bad faith on its part, the Trustee may
                  conclusively rely, as to the truth of the statements and the
                  correctness of the opinions expressed therein, upon
                  certificates or opinions furnished to the Trustee and
                  conforming to the requirements of this Indenture, but in case
                  of any such certificates or opinions which by any provision
                  hereof are specifically required to be furnished to the
                  Trustee, the Trustee shall examine the certificates and
                  opinions to determine whether or not they conform to the
                  requirements of this Indenture, but need not confirm or
                  investigate the accuracy of mathematical calculations or other
                  facts stated therein.

This Section 602(2) shall be in lieu of Section 315(a) of the TIA and such
Section 315(a) is hereby expressly excluded from this Indenture, as permitted by
the TIA.

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

                  (a) this paragraph (3) does not limit the effect of paragraph
                  (2) of this Section 602;

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

                  (c) the Trustee shall not be liable with respect to any action
                  it takes or omits to take in good faith in accordance with a
                  direction received by it pursuant to Section 512.

                                       -53-

<PAGE>

Subparagraphs (3)(a), (b) and (c) shall be in lieu of Sections 315(d)(1),
315(d)(2) and 315(d)(3) of the TIA and such Sections 315(d)(1), 315(d)(2) and
315(d)(3) are hereby expressly excluded from this Indenture, as permitted by the
TIA.

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

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

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

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

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

         (9)  The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
and shall incur no liability or additional liability of any kind by reason of
such inquiry or investigation.

         (10) 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

                                       -54-

<PAGE>

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.

         (11) The Trustee shall not be liable for any action taken, suffered or
omitted 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.

         (12) The rights, privileges, protections, immunities and benefits given
to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and to each agent, custodian and other Person employed by the Trustee
to act hereunder.

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

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

         The Trustee shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

         SECTION 603  Not Responsible for Recitals or Issuance of Securities.
                      ------------------------------------------------------

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

                                       -55-

<PAGE>

         SECTION 604  May Hold Securities.
                      -------------------

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

         SECTION 605  Money Held in Trust.
                      -------------------

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

         SECTION 606  Compensation and Reimbursement.
                      ------------------------------

         The Company agrees:

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

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

         (3) to indemnify each of the Trustee and any predecessor Trustee and
     their agents for, and to hold it harmless against, any loss, damage,
     claims, liability or expense (including reasonable attorney's fees and
     taxes (other than taxes based upon, measured by or determined by the income
     of the Trustee)) incurred without negligence or bad faith on its own part,
     arising out of or in connection with the acceptance or administration of
     the trust or trusts hereunder, including the reasonable costs and expenses
     of defending itself against any claim (whether asserted by the Company or
     any Holder or any other Person) or liability in connection with the
     exercise or performance of any of its powers or duties hereunder.

         As security for the performance of the obligations of the Company under
this Section, the Trustee shall have a claim prior to the Securities upon all
property and funds held or collected by the Trustee as such, except funds held
in trust for the payment

                                       -56-

<PAGE>

of principal of (or premium, if any) or interest, if any, on particular
Securities or any coupons.

         When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 501(5) or (6) occurs, the expenses and compensation
for the services are intended to constitute expenses of administration under any
Bankruptcy Law.

         SECTION 607  Corporate Trustee Required; Eligibility.
                      ---------------------------------------

         There shall at all times be a Trustee hereunder which shall be eligible
to act as Trustee under TIA Section 310(a)(1) and shall have a combined capital
and surplus of at least $50,000,000. If such corporation publishes reports of
condition at least annually, pursuant to law or the requirements of Federal,
State, Territorial or District of Columbia 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. If at any time the Trustee
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect hereinafter specified
in this Article.

         SECTION 608  Resignation and Removal; Appointment of Successor.
                      ------------------------------------------------- -

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

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

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

         (d)   The Company shall remove the Trustee if:

               (1) the Trustee fails to comply with Section 607;

               (2) the Trustee is adjudged bankrupt or insolvent;

               (3) a receiver or public officer takes charge of the Trustee
                   or its property; or

               (4) the Trustee otherwise becomes incapable of acting.

         (e)   If a successor Trustee does not take office within 30 days after
the retiring Trustee resigns or is removed, the retiring Trustee, the Company
or, with respect to the Securities of any particular series, the Holders of a
majority in principal amount of

                                       -57-

<PAGE>

the Outstanding Securities of that series may petition any court of competent
jurisdiction at the expense of the Company for the appointment of a successor
Trustee.

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

         (g) If the Trustee fails to comply with Section 607, any Securityholder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.

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

         SECTION 609  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 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 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

                                       -58-

<PAGE>

held by such retiring Trustee hereunder, subject nevertheless to its claim, if
any, provided for in Section 606.

         (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)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates; but, on request of the Company or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment of
such successor Trustee relates, subject nevertheless to the claim, if any,
provided for in Section 606.

       (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.

       SECTION 610  Merger, Conversion, Consolidation or Succession to Business.
                    -----------------------------------------------------------

       Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation

                                       -59-

<PAGE>

succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities or coupons shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Securities or coupons so authenticated with
the same effect as if such successor Trustee had itself authenticated such
Securities or coupons. In case any Securities or coupons shall not have been
authenticated by such predecessor Trustee, any such successor Trustee may
authenticate and deliver such Securities or coupons, in either its own name or
that of its predecessor Trustee, with the full force and effect which this
Indenture provides for the certificate of authentication of the Trustee.

        SECTION 611  Appointment of Authenticating Agent.
                     -----------------------------------

                  At any time when any of the Securities remain Outstanding, the
Trustee may appoint an Authenticating Agent or Agents with respect to one or
more series of Securities which shall be authorized to act on behalf of the
Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof and the Trustee shall
give written notice of such appointment to all Holders of Securities of the
series with respect to which such Authenticating Agent or Agent will serve, in
the manner provided for in Section 106, 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. Any such appointment
shall be evidenced by an instrument in writing signed by a Responsible Officer
of the Trustee, a copy of which instrument shall be promptly furnished to the
Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be reasonably acceptable to the Company and,
except as may otherwise be provided pursuant to Section 301, shall at all times
be a bank or trust company or corporation organized and doing business and in
good standing under the laws of the United States of America or of any State or
the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or the requirements of the aforesaid supervising or examining authority,
then for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

                                       -60-

<PAGE>

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

         An Authenticating Agent for any series of Securities may at any time
resign by giving written notice of resignation to the Trustee for such series
and to the Company. The Trustee for any series of Securities may at any time
terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment to all Holders of Securities of the series with
respect to which such Authenticating Agent will serve in the manner set forth in
Section 106. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and duties
of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

         The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation including reimbursement of its reasonable expenses
for its services under this Section.

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

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

                                       -61-

<PAGE>

         _______________________,
         as Trustee

         By:    __________________________
                as Authenticating Agent

         By:    __________________________
                as Authorized Signatory

         SECTION 612  Conflicting Interests.
                      ---------------------

         The Trustee shall comply with the provisions of Section 310(b) of the
Trust Indenture Act.

         SECTION 613  Appointment of Co-Trustee.
                      -------------------------

         (A) For the purpose of meeting any legal requirements of any
jurisdiction in which the Company may at the time be located in connection with
the enforcement of any right or the taking of any action on behalf of the
Holders of any Securities issued hereunder, the Trustee shall have the power and
may execute and deliver all instruments necessary to appoint one or more Persons
to act as a co-trustee or co-trustees, or separate trustee or separate trustees,
such powers, duties, obligations, rights and trusts as the Trustee may consider
necessary or desirable. Each co-trustee or separate trustee hereunder shall be
required to meet the terms of eligibility as a trustee under Section 607. The
Trustee shall promptly notify the Holders and the Company of the appointment of
a co-trustee or separate trustee under this Section.

         (B) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

             (a) all rights, powers, duties and obligations conferred or imposed
         upon the Trustee shall be conferred or imposed upon and exercised or
         performed by the Trustee and such separate trustee or co-trustee
         jointly (it being understood that such separate trustee or co-trustee
         is not authorized to act separately without the Trustee joining in such
         act), except to the extent that under any law of any jurisdiction in
         which any particular act or acts are to be performed the Trustee shall
         be incompetent or unqualified to perform such act or acts, in which
         event such rights, powers, duties and obligations shall be exercised
         and performed singly by such separate trustee or co-trustee, but solely
         at the direction of the Trustee;

             (b) no trustee hereunder shall be personally liable by reason of
         any act or omission of any other trustee hereunder;

                                       -62-

<PAGE>

                           (c)  the Trustee may at any time accept the
                  resignation of or remove any separate trustee or co-trustee;

                           (d)  any notice, request or other writing given to
                  the Trustee shall be deemed to have been given to each of the
                  then separate trustees and co-trustees, as effectively as if
                  given to each of them. Every instrument appointing any
                  separate trustee or co-trustee shall refer to this Indenture
                  and the conditions of this Article Six. Each separate trustee
                  and co-trustee, upon its acceptance of the trusts conferred,
                  shall be vested with the estates or property specified in its
                  instrument of appointment, either jointly with the Trustee or
                  separately, as may be provided therein, subject to all the
                  provisions of this Indenture, specifically including every
                  provision of this Indenture relating to the conduct of,
                  affecting the liability of, or affording protection or rights
                  (including the rights to compensation, reimbursement and
                  indemnification hereunder) to, the Trustee. Every such
                  instrument shall be filed with the Trustee; and

                           (e)  any separate trustee or co-trustee may at any
                  time constitute the Trustee its agent or attorney-in-fact with
                  full power and authority, to the extent not prohibited by law,
                  to do any lawful act under or in respect of this Indenture on
                  its behalf and in its name for the purposes of enforcing any
                  rights or taking any other action on behalf of the Holders of
                  any Securities issued hereunder.

                  SECTION 614  Trustee's Application for Instructions from the
                               -----------------------------------------------
                               Company.
                               -------

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

                                       -63-

<PAGE>

                                  ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

                  SECTION 701  Disclosure of Names and Addresses of Holders.
                               --------------------------------------------

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

                  (A) semiannually, not later than 15 days after each Regular
         Record Date for Securities of each series at the time Outstanding, a
         list in such form as the Trustee may reasonably require, of the names
         and addresses of the Holders of Registered Securities as of such
         Regular Record Date, or if there is no Regular Record Date for interest
         for such series of Securities, semiannually, upon such dates as are set
         forth in the Board Resolution, Officers' Certificates or indenture
         supplemental hereto authorizing such series, 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 so long as the Trustee is the Security Registrar, no
such list shall be required to be furnished.

                  The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders contained in the most
recent list furnished to the Trustee as provided in this Section 701 and the
names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided
in this Section 701 upon receipt of a new list so furnished.

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

                  Every Holder of Securities or coupons, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor
any Security Registrar shall be held accountable by reason of the disclosure of
any information as to the names and addresses of the Holders of Securities in
accordance with TIA Section 312, regardless of the source from which such
information was derived, and that the Trustee shall not be held accountable by
reason of mailing any material pursuant to a request made under TIA Section
312(b).

                  SECTION 702  Reports by Trustee.
                               ------------------

                  Within 60 days after May 15 of each year commencing with the
first May 15 after the first issuance of Securities pursuant to this Indenture,
the Trustee shall

                                       -64-

<PAGE>

transmit by mail to all Holders of Securities as provided in TIA Section 313(c)
a brief report dated as of such May 15 if required by TIA Section 313(a).

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

                  SECTION 703   Reports by Company.
                                ------------------

                  The Company will:

                  (1) if requested by the Trustee, deliver to the Trustee,
         within 15 days after it files such annual and quarterly reports,
         information, documents and other reports with the Commission, copies of
         its annual report and of the information, documents and other reports
         (or copies of such portions of any of the foregoing as the Commission
         may by rules and regulations prescribe) which the Company is required
         to file with the Commission pursuant to Section 13 or 15(d) of the
         Exchange Act. The Company shall send to the Trustee all reports
         required pursuant to the provisions of TIA Section 314(a). Delivery of
         such reports, information and documents to the Trustee is for
         informational purposes only and the Trustee's receipt of the same shall
         not constitute constructive notice of any information contained therein
         or determinable from information contained therein, including the
         Company's compliance with any of its covenants hereunder (as to which
         the Trustee is entitled to rely exclusively on Officers' Certificates);

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

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

                  SECTION 704  Calculation of Original Issue Discount.
                               --------------------------------------

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

                                       -65-

<PAGE>

                                 ARTICLE EIGHT

                  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

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

                  The Company shall not consolidate with or merge with or into
any other Person or sell, transfer or lease all or substantially all of its
assets to any Person, unless:

                  (1) either the Company shall be the continuing corporation, or
         the corporation (if other than the Company) formed by such
         consolidation or into which the Company is merged or the Person which
         acquires by sale, transfer or lease of all or substantially all of the
         Company's assets shall expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Trustee, in form satisfactory to
         the Trustee, all of the obligations of the Company under the Securities
         and this Indenture;

                  (2) immediately after giving effect to such transaction, no
         Default or Event of Default shall have occurred and be continuing; and

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

                  SECTION 802  Successor Person Substituted.
                               ----------------------------

                  Upon any consolidation or merger, or any conveyance or
transfer of the properties and assets of the Company substantially as an
entirety in accordance with Section 801, the successor corporation formed by
such consolidation or into which the Company is merged or the successor Person
to which such conveyance or transfer is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the
Company herein; and in the event of any such conveyance or transfer (except by a
lease), the Company shall be discharged from all obligations and covenants under
this Indenture and the Securities and coupons and may be dissolved and
liquidated.

                  Such successor entity thereupon may cause to be signed, and
may issue either in its own name or in the name of the Company, any or all of
the Securities issuable hereunder which theretofore shall not have been signed
by the Company and delivered to the Trustee; and, upon the order of such
successor entity, instead of the Company, and subject to all the terms,
conditions and limitations prescribed in this Indenture, the Trustee shall
authenticate and shall deliver any Securities which previously shall have been
signed and delivered by the officers of the Company to the Trustee for
authentication, and any Securities which such successor entity thereafter shall
cause to be signed and delivered to the Trustee for that purpose. All the
Securities of any series so

                                      -66-

<PAGE>

issued shall in all respects have the same legal rank and benefit under this
Indenture as the Securities of such series theretofore or thereafter issued in
accordance with the terms of this Indenture as though all of such Securities had
been issued at the date of the execution hereof.

                  In case of any such merger in which the Company is not the
surviving corporation or any such consolidation, sale, lease, assignment,
transfer or conveyance, such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate.

                  SECTION 803  Officers' Certificate and Opinion of Counsel.
                               --------------------------------------------

                  Any consolidation, merger, sale, conveyance, assignment,
transfer or lease permitted under Section 801 is also subject to the condition
that the Trustee shall have received an Officers' Certificate and an Opinion of
Counsel to the effect that any such consolidation, merger, sale, conveyance,
transfer, assignment or lease, and the assumption by any successor Person and
any such supplemental indenture, comply with the provisions of this Article and
that all conditions precedent herein provided for relating to such transaction
have been complied with.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

                  SECTION 901  Supplemental Indentures Without Consent of
                               ------------------------------------------
                                Holders.
                                -------

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

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

                  (2) to provide for uncertificated Securities in addition to or
         in place of certificated Securities; provided, however, that the
         uncertificated Securities are issued in registered form for purposes of
         Section 163(f) of the Code or in a manner such that the uncertificated
         Securities are as described in Section 163(f)(2)(B) of the Code; or

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

                                       -67-

<PAGE>

                  (4) to add any additional Events of Default for the benefit of
         the Holders of all or any series of Securities (and if such Events of
         Default are to be for the benefit of less than all series of
         Securities, stating that such Events of Default are expressly being
         included solely for the benefit of such series); provided, however,
         that in respect of any such additional Events of Default such
         supplemental indenture may provide for a particular period of grace
         after default (which period may be shorter or longer than that allowed
         in the case of other defaults) or may provide for an immediate
         enforcement upon such default or may limit the remedies available to
         the Trustee upon such default or may limit the right of the Holders of
         a majority in aggregate principal amount of that or those series of
         Securities to which such additional Events of Default apply to waive
         such default; or

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

                  (6) to change or eliminate any of the provisions of this
         Indenture; provided that any such change or elimination shall become
         effective only when there is no Security Outstanding of any series
         created prior to the execution of such supplemental indenture which is
         entitled to the benefit of such provision; or

                  (7) to secure the Securities pursuant to the requirements of
         such indenture supplement, if applicable; or

                  (8) to establish the form or terms of Securities of any series
         and any related coupons as permitted by Sections 201 and 301, including
         the provisions and procedures relating to Securities convertible into
         or exchangeable for any securities of any Person (including the
         Company); or

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

                  (10) to cure any ambiguity or defect, to correct or supplement
         any provision herein which may be inconsistent with any other provision
         herein, or to make any other provisions with respect to matters or
         questions arising under this Indenture; provided that such action shall
         not adversely affect the interests of the

                                       -68-

<PAGE>

         Holders of outstanding Securities of any series or any related coupons
         in any material respect; or

                  (11) to supplement any of the provisions of this Indenture to
         such extent as shall be necessary to permit or facilitate the
         defeasance and discharge of any series of Securities pursuant to
         Sections 401, 1402 and 1403; provided that any such action shall not
         adversely affect the interests of the Holders of outstanding Securities
         of such series and any related coupons or any other series of
         outstanding Securities in any material respect; or

                  (12) to add a guarantor or guarantors for any series or all
         series of the Securities; or

                  (13) to comply with the requirements of the Commission in
         order to effect or maintain the qualification of this Indenture under
         the Trust Indenture Act.

                  SECTION 902  Supplemental Indentures With Consent of Holders.
                               -----------------------------------------------

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

                  (1)  extend the Stated Maturity of the principal of (or
         premium, if any, on) or any installment of principal of or interest on,
         any Security, subject to the provisions of Section 308; or reduce the
         principal amount thereof or the rate of interest (or change the manner
         of calculation of interest), thereon, or any Additional Amounts with
         respect thereto, or any premium payable upon the redemption thereof, or
         change any obligation of the Company to pay Additional Amounts pursuant
         to Section 1004 (except as contemplated by Section 801(1) and permitted
         by Section 901(1)), or reduce the portion of the principal of an
         Original Issue Discount Security or Indexed Security that would be due
         and payable upon a declaration of acceleration of the Maturity thereof
         pursuant to Section 502 or the amount thereof provable in bankruptcy
         pursuant to Section 504 or change any Place of Payment where, or the
         Currency in which, any Security or any premium or interest or
         Additional Amount thereon is payable, or impair the right to institute
         suit for the enforcement of any such payment on or after the Stated
         Maturity thereof (or, in the case of redemption or repayment at the
         option of the Holder, on or after the Redemption Date or the Repayment
         Date, as the case may be), or

                                       -69-

<PAGE>

         adversely affect any right to convert or exchange any Security as may
         be provided pursuant to Section 301 herein, or

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

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

                  (4) cause the Securities to be expressly subordinated to other
         indebtedness of the Company. It shall not be necessary for any Act of
         Holders under this Section to approve the particular form of any
         proposed supplemental indenture, but it shall be sufficient if such Act
         shall approve the substance thereof.

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

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to consent to any
indenture supplemental hereto. If a record date is fixed, the Holders at the
close of business on such record date, or their duly designated proxies, and
only such Persons, shall be entitled to consent to such supplemental indenture,
whether or not such Holders remain Holders after such record date; provided that
unless such consent shall have become effective by virtue of the requisite
percentage having been obtained prior to the date which is 90 days after such
record date, any such consent previously given shall automatically and without
further action by any Holder be cancelled and of no further effect.

                  SECTION 903       Execution of Supplemental Indentures.
                                    ------------------------------------

                  In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modification thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, in addition to the documents required by Section 102, and shall be
fully protected in relying upon (subject to the provisions of Article Six
hereof), an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee

                                       -70-

<PAGE>

may, but shall not be obligated to, enter into any such supplemental indenture
which affects the Trustee's own rights, duties or immunities under this
Indenture or otherwise.

                  SECTION 904       Effect of Supplemental Indentures.
                                    ---------------------------------

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

                  SECTION 905       Conformity With Trust Indenture Act.
                                    -----------------------------------

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

                  SECTION 906       Reference in Securities to Supplemental
                                    ---------------------------------------
                                    Indentures.
                                    ----------

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

                                   ARTICLE TEN

                                    COVENANTS

                  SECTION 1001      Payment of Principal, Premium, if Any, and
                                    ------------------------------------------
                                    Interest.
                                    --------

                  The Company covenants and agrees for the benefit of the
Holders of each series of Securities that it will duly and punctually pay the
principal of (and premium, if any) and interest and Additional Amounts, if any,
on the Securities of that series in accordance with the terms of such series of
Securities, any coupons appertaining thereto and this Indenture. Any interest
due on Bearer Securities on or before Maturity, other than Additional Amounts,
if any, payable as provided in Section 1004 in respect of principal of (or
premium, if any, on) such a Security, shall be payable only upon presentation
and surrender of the several coupons for such interest installments as are
evidenced thereby as they severally mature. Unless otherwise specified with
respect to Securities of any series pursuant to Section 301, at the option of
the Company, all payments of principal may be paid by check to the registered
Holder of the Registered Security or other person entitled thereto against
surrender of such Security or wire transfer to an account in the United States
maintained by the Payee.

                                       -71-

<PAGE>

                  SECTION 1002   Maintenance of Office or Agency.
                                 -------------------------------

                  If Securities of a series are issuable only as Registered
Securities, the Company shall maintain in each Place of Payment for any series
of Securities an office or agency where Securities of that series may be
presented or surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange, where Securities of that
series that are convertible or exchangeable may be surrendered for conversion or
exchange, as applicable, and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. If
Securities of a series are issuable as Bearer Securities, the Company will
maintain (A) in the Borough of Manhattan, The City of New York, an office or
agency where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where Securities of that series that are convertible
or exchangeable may be surrendered for conversion or exchange, as applicable,
and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served and where Bearer
Securities of that series and related coupons may be presented or surrendered
for payment in the circumstances described in the following paragraph (and not
otherwise), (B) subject to any laws or regulations applicable thereto, in a
Place of Payment for that series which is located outside the United States, an
office or agency where Securities of that series and related coupons may be
presented and surrendered for payment; provided, however, that if the Securities
of that series are listed on the Luxembourg Stock Exchange or any other stock
exchange located outside the United States and such stock exchange shall so
require, the Company will maintain a Paying Agent for the Securities of that
series in Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are listed
on such exchange, and (C) subject to any laws or regulations applicable thereto,
in a Place of Payment for that series located outside the United States an
office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where Securities of that series that are convertible
or exchangeable may be surrendered for conversion or exchange, as applicable,
and where notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and any change in the
location, of each such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee,
except that Bearer Securities of that series and the related coupons may be
presented and surrendered for payment at the offices specified in the Security,
in London, England, and the Company hereby appoints the same as its agent to
receive such respective presentations, surrenders, notices and demands, and the
Company hereby appoints the Trustee its agent to receive all such presentations,
surrenders, notices and demands.

                  Unless otherwise specified with respect to any Securities
pursuant to Section 301, no payment of principal, premium or interest on Bearer
Securities shall be

                                       -72-

<PAGE>

made at any office or agency of the Company in the United States or by check
mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, that, if
the Securities of a series are payable in Dollars, payment of principal of (and
premium, if any) and interest, if any, on any Bearer Security shall be made at
the office of the Company's Paying Agent in the Borough of Manhattan, The City
of New York, if (but only if) payment in Dollars of the full amount of such
principal, premium or interest, as the case may be, at all offices or agencies
outside the United States maintained for such purpose by the Company in
accordance with this Indenture, is illegal or effectively precluded by exchange
controls or other similar restrictions.

          The Company may from time to time designate one or more other offices
or agencies where the Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Securities of
any series for such purposes. The Company will give prompt written notice to the
Trustee of any such designation or rescission and of any change in the location
of any such other office or agency. Unless otherwise specified with respect to
any Securities pursuant to Section 301 with respect to a series of Securities,
the Company hereby designates as a Place of Payment for each series of
Securities the office or agency of the Company in the Borough of Manhattan, The
City of New York, and initially appoints the Trustee at its Corporate Trust
Office as Paying Agent in such city and as its agent to receive all such
presentations, surrenders, notices and demands.

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

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

          If the Company shall at any time act as its own Paying Agent with
respect to any series of any Securities and any related coupons, it will, on or
before each due date of the principal of (or premium, if any) or interest, if
any, on any of the Securities of that series, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum in the Currency in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such series and except, if applicable, as
provided in Sections 312(b), 312(d) and 312(e)) sufficient to pay the principal
of (and premium, if any) and interest, if any, on Securities of such series so
becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and will promptly notify the Trustee of its action or
failure so to act.

                                      -73-

<PAGE>

          Whenever the Company shall have one or more Paying Agents for any
series of Securities and any related coupons, it will, on or before each due
date of the principal of (or premium, if any) or interest, if any, on any
Securities of that series, deposit with a Paying Agent a sum (in the Currency
described in the preceding paragraph) sufficient to pay the principal (or
premium, if any) or interest, if any, 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 its action or failure so to act.

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

          Except as otherwise provided in the Securities of any series, any
money deposited with the Trustee or any Paying Agent, or then held by the
Company, in trust for the payment of the principal of (or premium, if any) or
interest, if any, on any Security of any series and remaining unclaimed for two
years after such principal, premium or interest has become due and payable shall
be paid to the Company upon Company Request or (if then held by the Company)
shall be discharged from such trust; and the Holder of such Security shall
thereafter, as an unsecured general creditor, look only to the Company for
payment of such principal, premium or interest on any Security, without interest
thereon, and all liability of the Trustee or such Paying Agent with respect to
such trust money, and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in an Authorized Newspaper in each Place of
Payment for such series, or mailed to each Holder of Registered Securities of
such series, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid
to the Company.

          SECTION 1004  Additional Amounts.
                        ------------------

          If any Securities of a series provide for the payment of Additional
Amounts, the Company will pay to the Holder of a Security of such series or any
coupon appertaining thereto Additional Amounts as may be specified as
contemplated by Section 301. Whenever in this Indenture there is mentioned, in
any context, the payment of the principal of (or premium, if any) or interest,
if any, on any Security of any series or payment of any related coupon or the
net proceeds received on the sale or exchange of any Security of any series,
such mention shall be deemed to include mention of the payment of Additional
Amounts provided by the terms of such series established pursuant to Section 301
to the extent that, in such context, Additional Amounts are, were or would be
payable in respect thereof pursuant to such terms and express mention of the

                                      -74-

<PAGE>

payment of Additional Amounts (if applicable) in any provisions hereof shall not
be construed as excluding Additional Amounts in those provisions hereof where
such express mention is not made.

          Except as otherwise specified as contemplated by Section 301, if the
Securities of a series provide for the payment of Additional Amounts, at least
10 days prior to the first Interest Payment Date with respect to that series of
Securities (or if the Securities of that series will not bear interest prior to
Maturity, the first day on which a payment of principal and any premium is
made), and at least 10 days prior to each date of payment of principal, premium
or interest if there has been any change with respect to the matters set forth
in the below-mentioned Officers' Certificate, the Company will furnish the
Trustee and the Company's principal Paying Agent or Paying Agents, if other than
the Trustee, with an Officers' Certificate instructing the Trustee and such
Paying Agent or Paying Agents whether such payment of principal, premium or
interest on the Securities of that series shall be made to Holders of Securities
of that series or any related coupons who are not United States persons without
withholding for or on account of any tax, assessment or other governmental
charge described in the Securities of the series. If any such withholding shall
be required, then such Officers' Certificate shall specify by country the
amount, if any, required to be withheld on such payments to such Holders of
Securities of that series or related coupons and the Company will pay to the
Trustee or such Paying Agent the Additional Amounts required by the terms of
such Securities. In the event that the Trustee or any Paying Agent, as the case
may be, shall not so receive the above-mentioned certificate, then the Trustee
or such Paying Agent shall be entitled (i) to assume that no such withholding or
deduction is required with respect to any payment of principal or interest with
respect to any Securities of a series or related coupons until it shall have
received a certificate advising otherwise and (ii) to make all payments of
principal and interest with respect to the Securities of a series or related
coupons without withholding or deductions until otherwise advised. The Company
covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section or in reliance on the Company's not
furnishing such an Officers' Certificate.

          SECTION 1005  Statement as to Compliance.
                        --------------------------

          The Company shall deliver to the Trustee within 120 days after the end
of each fiscal year of the Company (beginning with the fiscal year ending on
June 30, 2002) an Officers' Certificate, stating whether or not to the best
knowledge of the signers thereof the Company is in default in the performance
and observance of any of the terms, provisions and conditions of this Indenture
(without regard to any period of grace or requirement of notice provided
hereunder) and if the Company shall be in default, specifying all such defaults
and the nature and status thereof of which they may have knowledge.

                                      -75-

<PAGE>

          SECTION 1006  Waiver of Certain Covenants.
                        ---------------------------

          The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Article Eight, Sections 1004 and 1005
and, as specified pursuant to Section 301(15) for Securities of any series, in
any covenants of the Company added to Article Ten pursuant to Section 301(14) or
Section 301(15), if before or after the time for such compliance the Holders of
at least a majority in principal amount of all outstanding Securities, by Act of
such Holders, waive such compliance in such instance or generally waive
compliance with such term, provision or condition, but no such waiver shall
extend to or affect such term, provision or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

          SECTION 1101  Applicability of Article.
                        ------------------------

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

          SECTION 1102  Election to Redeem; Notice to Trustee.
                        -------------------------------------

          The election of the Company to redeem any Securities shall be
evidenced by or pursuant to a Board Resolution. In case of any redemption at the
election of the Company of less than all of the Securities of any series, the
Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee in writing of such Redemption Date and of the principal amount of
Securities of such series to be redeemed. In the case of any redemption of
Securities prior to the expiration of any restriction on such redemption
provided in the terms of such Securities or elsewhere in this Indenture, the
Company shall furnish the Trustee with an Officers' Certificate evidencing
compliance with such restriction.

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

          If less than all the Securities of any series issued on the same day
with the same terms are to be redeemed, the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series issued on such date with
the same terms not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of

                                      -76-

<PAGE>

the principal amount of Securities of such series of a denomination larger than
the minimum authorized denomination for Securities of that series.

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

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

          SECTION 1104  Notice of Redemption.
                        --------------------

          Notice of redemption shall be given in the manner provided in Section
106, not less than 30 days nor more than 60 days prior to the Redemption Date,
unless a shorter period is specified by the terms of such series established
pursuant to Section 301, to each Holder of Securities to be redeemed, but
failure to give such notice in the manner herein provided to the Holder of any
Security designated for redemption as a whole or in part, or any defect in the
notice to any such Holder, shall not affect the validity of the proceedings for
the redemption of any other such Security or portion thereof.

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

          All notices of redemption shall state:

          (1)  the Redemption Date,

          (2)  the Redemption Price and accrued interest, if any, to the
     Redemption Date payable as provided in Section 1106,

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

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

          (5)  that on the Redemption Date, the Redemption Price and accrued
     interest, if any, to the Redemption Date payable as provided in Section
     1106 will become due and payable upon each such Security, or the portion
     thereof, to be

                                      -77-

<PAGE>

          redeemed and, if applicable, that interest thereon shall cease to
          accrue on and after said date,

               (6)  the Place or Places of Payment where such Securities,
          together in the case of Bearer Securities with all coupons
          appertaining thereto, if any, maturing after the Redemption Date, are
          to be surrendered for payment of the Redemption Price and accrued
          interest, if any,

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

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

               (9)  if Bearer Securities of any series are to be redeemed and
          any Registered Securities of such series are not to be redeemed, and
          if such Bearer Securities may be exchanged for Registered Securities
          not subject to redemption on this Redemption Date pursuant to Section
          305 or otherwise, the last date, as determined by the Company, on
          which such exchanges may be made,

               (10) the CUSIP number of such Security, if any, and

               (11) any other information the Company wants to present.

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

               SECTION 1105   Deposit of Redemption Price.
                              ---------------------------

               Prior to 10:00 a.m. (New York City time), on the Redemption Date,
the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, which it may not do in the case of a
sinking fund payment under Article Twelve, segregate and hold in trust as
provided in Section 1003) an amount of money in the Currency in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such series and except, if applicable, as
provided in Sections 312(b), 312(d) and 312(e)) sufficient to pay on the
Redemption Date the Redemption Price of, and (unless otherwise specified
pursuant to Section 301) accrued interest on, all the Securities or portions
thereof which are to be redeemed on that date.

               SECTION 1106   Securities Payable on Redemption Date.
                              -------------------------------------

               Notice of redemption having been given as aforesaid, the
Securities of any series so to be redeemed shall, on the Redemption Date, become
due and payable at the

                                      -78-

<PAGE>

Redemption Price therein specified in the Currency in which the Securities of
such series are payable (except as otherwise specified pursuant to Section 301
for the Securities of such series and except, if applicable, as provided in
Sections 312(b), 312(d) and 312(e)) (together with accrued interest, if any, to
the Redemption Date), and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest, if any)
such Securities shall if the same were interest-bearing cease to bear interest
and the coupons for such interest appertaining to any Bearer Securities so to be
redeemed, except to the extent provided below, shall be void. Upon surrender of
any such Security for redemption in accordance with said notice, together with
all coupons, if any, appertaining thereto maturing after the Redemption Date,
such Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, to the Redemption Date; provided, however, that
installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of coupons for such interest; and provided further
that installments of interest on Registered Securities whose Stated Maturity is
prior to (or, if specified pursuant to Section 301, on) the Redemption Date
shall be payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307.

                If any Bearer Security surrendered for redemption shall not be
accompanied by all appurtenant coupons maturing after the Redemption Date, such
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to the Trustee or any Paying Agent any such missing coupon in
respect of which a deduction shall have been made from the Redemption Price,
such Holder shall be entitled to receive the amount so deducted; provided,
however, that interest represented by coupons shall be payable only at an office
or agency located outside the United States (except as otherwise provided in
Section 1002) and, unless otherwise specified as contemplated by Section 301,
only upon presentation and surrender of those coupons.

                If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the Redemption Price shall, until paid, bear
interest from the Redemption Date at the rate of interest set forth in such
Security or, in the case of an Original Issue Discount Security, at the Yield to
Maturity of such Security.

                SECTION 1107  Securities Redeemed in Part.
                              ---------------------------

                Any Registered Security which is to be redeemed only in part
(pursuant to the provisions of this Article or of Article Twelve) shall be
surrendered at a Place of Payment therefor (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee

                                       -79-

<PAGE>

duly executed by, the Holder thereof or his attorney duly authorized in writing)
and the Company shall execute and the Trustee shall authenticate and deliver to
the Holder of such Security without service charge a new Security or Securities
of the same series, of any authorized denomination as requested by such Holder
in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered. However, if less than
all the Securities of any series with differing issue dates, interest rates and
stated maturities are to be redeemed, the Company in its sole discretion shall
select the particular Securities to be redeemed and shall notify the Trustee in
writing thereof at least 45 days prior to the relevant redemption date.

                                 ARTICLE TWELVE

                                  SINKING FUNDS

                  SECTION 1201   Applicability of Article.
                                 ------------------------

                  The provisions of this Article shall be applicable to any
sinking fund for the retirement of Securities of a series except as otherwise
specified as contemplated by Section 301 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 such Securities of any series is herein referred to as an
"optional sinking fund payment". If provided for by the terms of any Securities
of any series, the cash amount of any mandatory sinking fund payment may be
subject to reduction as provided in Section 1202. Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for
by the terms of Securities of such series.

                  SECTION 1202   Satisfaction of Sinking Fund Payments With
                                 ------------------------------------------
                                 Securities.
                                 ----------

                  Except as otherwise specifically contemplated by Section 301
for Securities of such series, the Company may, in satisfaction of all or any
part of any mandatory sinking fund payment with respect to the Securities of a
series, (1) deliver Outstanding Securities to the Trustee of such series (other
than any previously called for redemption) together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto and
(2) apply as a credit Securities of such series which have been redeemed either
at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, as provided for by the terms of such Securities;
provided that such Securities so delivered or applied as a credit have not been
previously so credited. Such Securities shall be received and credited for such
purpose by the Trustee at the applicable Redemption Price specified in such
Securities for redemption through operation of the sinking fund and the amount
of such mandatory sinking fund payment shall be reduced accordingly.

                                       -80-

<PAGE>

                  SECTION 1203  Redemption of Securities for Sinking Fund.
                                -----------------------------------------

                  Not less than 60 days prior to each sinking fund payment date
for Securities of any series, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing mandatory
sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, which is to be satisfied by payment of cash in the
Currency in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except,
if applicable, as provided in Sections 312(b), 312(d) and 312(e)) and the
portion thereof, if any, which is to be satisfied by delivering and crediting
Securities of that series pursuant to Section 1202, and the optional amount, if
any, to be added in cash to the next ensuing mandatory sinking fund payment, and
will also deliver to the Trustee any Securities to be so delivered and credited.
If such Officers' Certificate shall specify an optional amount to be added in
cash to the next ensuing mandatory sinking fund payment, the Company shall
thereupon be obligated to pay the amount therein specified. Not less than 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 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

                                ARTICLE THIRTEEN

                       REPAYMENT AT THE OPTION OF HOLDERS

                  SECTION 1301  Applicability of Article.
                                ------------------------

                  Repayment of Securities of any series before their Stated
Maturity at the option of Holders thereof shall be made in accordance with the
terms of such Securities and (except as otherwise specified by the terms of such
series established pursuant to Section 301) in accordance with this Article.

                  SECTION 1302  Repayment of Securities.
                                -----------------------

                  Securities of any series subject to repayment in whole or in
part at the option of the Holders thereof will, unless otherwise provided in the
terms of such Securities, be repaid at the Repayment Price thereof, together
with interest, if any, thereon accrued to the Repayment Date specified in or
pursuant to the terms of such Securities. The Company covenants that on or
before the Repayment Date it will deposit with the Trustee or with a Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 1003) an amount of money in the Currency in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series and except, if
applicable, as provided in Sections 312(b), 312(d) and 312(e)) sufficient to pay
the Repayment Price of, and (unless otherwise specified pursuant to Section 301)
accrued

                                       -81-

<PAGE>

interest on, all the Securities or portions thereof, as the case may be, to be
repaid on such date.

                  SECTION 1303  Exercise of Option.
                                ------------------

                  Securities of any series subject to repayment at the option of
the Holders thereof will contain an "Option to Elect Repayment" form on the
reverse of such Securities. To be repaid at the option of the Holder, any
Security so providing for such repayment, with the "Option to Elect Repayment"
form on the reverse of such Security duly completed by the Holder (or by the
Holder's attorney duly authorized in writing), must be received by the Company
at the Place of Payment therefor specified in the terms of such Security (or at
such other place or places of which the Company shall from time to time notify
the Holders of such Securities) not earlier than 45 days nor later than 30 days
prior to the Repayment Date. If less than the entire Repayment Price of such
Security is to be repaid in accordance with the terms of such Security, the
portion of the Repayment Price of such Security to be repaid, in increments of
the minimum denomination for Securities of such series, and the denomination or
denominations of the Security or Securities to be issued to the Holder for the
portion of such Security surrendered that is not to be repaid, must be
specified. Any Security providing for repayment at the option of the Holder
thereof may not be repaid in part if, following such repayment, the unpaid
principal amount of such Security would be less than the minimum authorized
denomination of Securities of the series of which such Security to be repaid is
a part. Except as otherwise may be provided by the terms of any Security
providing for repayment at the option of the Holder thereof, exercise of the
repayment option by the Holder shall be irrevocable unless waived by the
Company.

                  SECTION 1304  When Securities Presented for Repayment Become
                                ----------------------------------------------
                                Due and Payable.
                                ---------------

                  If Securities of any series providing for repayment at the
option of the Holders thereof shall have been surrendered as provided in this
Article and as provided by or pursuant to the terms of such Securities, such
Securities or the portions thereof, as the case may be, to be repaid shall
become due and payable and shall be paid by the Company on the Repayment Date
therein specified, and on and after such Repayment Date (unless the Company
shall default in the payment of such Securities on such Repayment Date) such
Securities shall, if the same were interest-bearing, cease to bear interest and
the coupons for such interest appertaining to any Bearer Securities so to be
repaid, except to the extent provided below, shall be void. Upon surrender of
any such Security for repayment in accordance with such provisions, together
with all coupons, if any, appertaining thereto maturing after the Repayment
Date, the Repayment Price of such Security so to be repaid shall be paid by the
Company, together with accrued interest, if any, to the Repayment Date;
provided, however, that coupons whose Stated Maturity is on or prior to the
Repayment Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified pursuant to Section 301, only upon presentation and
surrender of such coupons; and provided further that installments of interest on
Registered Securities, whose Stated Maturity is prior to (or, if specified
pursuant to

                                       -82-

<PAGE>

Section 301, on) the Repayment Date shall be payable (but without interest
thereon, unless the Company shall default in the payment thereof) to the Holders
of such Securities, or one or more Predecessor Securities, registered as such at
the close of business on the relevant Record Dates according to their terms and
the provisions of Section 307.

                  If any Bearer Security surrendered for repayment shall not be
accompanied by all appurtenant coupons maturing after the Repayment Date, such
Security may be paid after deducting from the amount payable therefor as
provided in Section 1302 an amount equal to the face amount of all such missing
coupons, or the surrender of such missing coupon or coupons may be waived by the
Company and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to the Trustee or any
Paying Agent any such missing coupon in respect of which a deduction shall have
been made as provided in the preceding sentence, such Holder shall be entitled
to receive the amount so deducted; provided, however, that interest represented
by coupons shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of those coupons.

                  If any Security surrendered for repayment shall not be so
repaid upon surrender thereof, the Repayment Price shall, until paid, bear
interest from the Repayment Date at the rate of interest set forth in such
Security or, in the case of an Original Issue Discount Security, at the Yield to
Maturity of such Security.

                  SECTION 1305  Securities Repaid in Part.
                                -------------------------

                  Upon surrender of any Registered Security which is to be
repaid in part only, the Company shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge
and at the expense of the Company, a new Registered Security or Securities of
the same series, of any authorized denomination specified by the Holder, in an
aggregate principal amount equal to and in exchange for the portion of the
principal of such Security so surrendered which is not to be repaid.

                                ARTICLE FOURTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

                  SECTION 1401  Applicability of Article; Company's Option to
                                ---------------------------------------------
                                Effect Defeasance or Covenant Defeasance.
                                ----------------------------------------

                  If pursuant to Section 301 provision is made for either or
both of (a) defeasance of the Securities of or within a series under Section
1402 or (b) covenant defeasance of the Securities of or within a series under
Section 1403, then the provisions of such Section or Sections, as the case may
be, together with the other provisions of this Article (with such modifications
thereto as may be specified pursuant to Section 301 with

                                       -83-

<PAGE>

respect to any Securities), shall be applicable to such Securities and any
coupons appertaining thereto, and the Company may at its option by Board
Resolution, at any time, with respect to such Securities and any coupons
appertaining thereto, elect to have Section 1402 (if applicable) or Section 1403
(if applicable) be applied to such Outstanding Securities and any coupons
appertaining thereto upon compliance with the conditions set forth below in this
Article.

         SECTION 1402      Defeasance and Discharge.
                           ------------------------

         Upon the Company's exercise of the above option applicable to this
Section with respect to any Securities of or within a series, the Company shall
be deemed to have been discharged from its obligations with respect to such
Outstanding Securities and any coupons appertaining thereto on the date the
conditions set forth in Section 1404 are satisfied (hereinafter, "defeasance").
For this purpose, such defeasance means that the Company shall be deemed to have
paid and discharged the entire indebtedness represented by such Outstanding
Securities and any coupons appertaining thereto, which shall thereafter be
deemed to be "Outstanding" only for the purposes of Section 1405 and the other
Sections of this Indenture referred to in clauses (A) and (B) of this Section,
and to have satisfied all its other obligations under such Securities and any
coupons appertaining thereto and this Indenture insofar as such Securities and
any coupons appertaining thereto are concerned (and the Trustee, at the expense
of the Company, shall execute proper instruments acknowledging the same), except
for the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of such Outstanding Securities and any
coupons appertaining thereto to receive, solely from the trust fund described in
Section 1404 and as more fully set forth in such Section, payments in respect of
the principal of (and premium, if any) and interest, if any, on such Securities
and any coupons appertaining thereto when such payments are due, (B) the
Company's obligations with respect to such Securities under Sections 305, 306,
1002 and 1003 and with respect to the payment of Additional Amounts, if any, on
such Securities as contemplated by Section 1004 with respect to the rights, if
any, of the holders of such Securities to require the Company to repay such
Securities as contemplated by Article Thirteen and with respect to the rights,
if any, of holders to convert or exchange such Securities into other Securities,
(C) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (D) this Article Fourteen. Subject to compliance with this Article Fourteen,
the Company may exercise its option under this Section notwithstanding the prior
exercise of its option under Section 1403 with respect to such Securities and
any coupons appertaining thereto.

         SECTION 1403      Covenant Defeasance.
                           -------------------

         Upon the Company's exercise of the above option applicable to this
Section with respect to any Securities of or within a series, the Company shall
be released from its obligations under Sections 1004 and 1005 if specified
pursuant to Section 301, from its obligations under any other covenant, with
respect to such Outstanding Securities and any coupons appertaining thereto on
and after the date the conditions set forth in Section 1404 are satisfied
(hereinafter, "covenant defeasance"), and such Securities and any coupons
appertaining thereto shall thereafter be deemed to be not

                                       -84-

<PAGE>

"Outstanding" for the purposes of any direction, waiver, consent or declaration
or Act of Holders (and the consequences of any thereof) in connection with any
restrictive covenants that may be added pursuant to Section 301, or such other
covenant, but shall continue to be deemed "Outstanding" for all other purposes
hereunder. For this purpose, such covenant defeasance means that, with respect
to such Outstanding Securities and any coupons appertaining thereto, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such Section or such other covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other
document and such omission to comply shall not constitute a Default or an Event
of Default under Section 501(4) or 501(7) or otherwise except as specified in
accordance with Section 301, as the case may be, but, except as specified above,
the remainder of this Indenture and such Securities and any coupons appertaining
thereto shall be unaffected thereby.

                  SECTION 1404     Conditions to Defeasance or Covenant
                                   ------------------------------------
                                   Defeasance.
                                   ----------

                  The following shall be the conditions to application of
Section 1402 or Section 1403 to any Outstanding Securities of or within a series
and any coupons appertaining thereto:

                  (a) The Company shall irrevocably have deposited or caused to
         be deposited with the Trustee (or another trustee satisfying the
         requirements of Section 607 who shall agree to comply with the
         provisions of this Article Fourteen applicable to it) as trust funds in
         trust for the purpose of making the following payments, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of such Securities and any coupons appertaining thereto, (1) an
         amount (in such Currency in which such Securities and any coupons
         appertaining thereto are then specified as payable at Stated Maturity),
         or (2) Government Obligations applicable to such Securities and coupons
         appertaining thereto (determined on the basis of the Currency in which
         such Securities and coupons appertaining thereto are then specified as
         payable at Stated Maturity) which through the scheduled payment of
         principal and interest in respect thereof in accordance with their
         terms will provide, not later than one day before the due date of any
         payment of principal of (and premium, if any) and interest, if any, on
         such Securities and any coupons appertaining thereto, money in an
         amount, or (3) a combination thereof in an amount, sufficient, in the
         opinion of a nationally recognized firm of independent public
         accountants or nationally recognized independent investment banking
         firm expressed in a written certification thereof delivered to the
         Trustee, to pay and discharge, and which shall be applied by the
         Trustee (or other qualifying trustee) to pay and discharge, (i) the
         principal of (and premium, if any), including Redemption Price and
         Repayment Price, and interest, if any, on such Outstanding Securities
         and any coupons appertaining thereto on the Stated Maturity of such
         principal or installment of principal or interest and (ii) any
         mandatory sinking fund payments or analogous payments applicable to
         such Outstanding Securities and any coupons appertaining thereto on the
         day on which such payments are due and payable in

                                       -85-

<PAGE>

         accordance with the terms of this Indenture and of such Securities and
         any coupons appertaining thereto.

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

                  (c) No Default or Event of Default with respect to such
         Securities and any coupons appertaining thereto shall have occurred and
         be continuing on the date of such deposit or, insofar as Sections
         501(5) and 501(6) are concerned, at any time during the period ending
         on the 91st day after the date of such deposit (it being understood
         that this condition shall not be deemed satisfied until the expiration
         of such period).

                  (d) In the case of an election under Section 1402, the Company
         shall have delivered to the Trustee an Opinion of Counsel stating that
         (i) the Company has received from, or there has been published by, the
         Internal Revenue Service a ruling, or (ii) since the date of execution
         of this Indenture, there has been a change in the applicable Federal
         income tax law, in either case to the effect that, and based thereon
         such opinion shall confirm that, the Holders of such Outstanding
         Securities and any coupons appertaining thereto will not recognize
         income, gain or loss for Federal income tax purposes as a result of
         such defeasance and will be subject to Federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such defeasance had not occurred.

                  (e) In the case of an election under Section 1403, the Company
         shall have delivered to the Trustee an Opinion of Counsel to the effect
         that the Holders of such Outstanding Securities and any coupons
         appertaining thereto will not recognize income, gain or loss for
         Federal income tax purposes as a result of such covenant defeasance and
         will be subject to Federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         covenant defeasance had not occurred.

                  (f) The Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent to the defeasance under Section 1402 or the
         covenant defeasance under Section 1403 (as the case may be) have been
         complied with and an Opinion of Counsel to the effect that either (i)
         as a result of a deposit pursuant to subsection (a) above and the
         related exercise of the Company's option under Section 1402 or Section
         1403 (as the case may be), registration is not required under the
         Investment Company Act of 1940, as amended, by the Company, with
         respect to the trust funds representing such deposit or by the trustee
         for such trust funds or (ii) all necessary registrations under said Act
         have been effected.

                  (g) Notwithstanding  any other  provisions of this
         Section, such defeasance or covenant defeasance shall be effected in
         compliance with any

                                       -86-

<PAGE>

additional or substitute terms, conditions or limitations which may be imposed
on the Company in connection therewith pursuant to Section 301.

         SECTION 1405      Deposited Money and Government Obligations to Be Held
                           -----------------------------------------------------
                           in Trust; Other Miscellaneous Provisions.
                           ----------------------------------------

         Subject to the provisions of the last paragraph of Section 1003, all
money and Government Obligations (or other property as may be provided pursuant
to Section 301) (including the proceeds thereof) deposited with the Trustee (or
other qualifying trustee, collectively for purposes of this Section 1405, the
"Trustee") pursuant to Section 1404 in respect of any Outstanding Securities of
any series and any coupons appertaining thereto shall be held in trust and
applied by the Trustee, in accordance with the provisions of such Securities and
any coupons appertaining thereto and this Indenture, to the payment, either
directly or through any Paying Agent (including the Company acting as its own
Paying Agent) as the Trustee may determine, to the Holders of such Securities
and any coupons appertaining thereto of all sums due and to become due thereon
in respect of principal (and premium, if any) and interest, if any, but such
money need not be segregated from other funds except to the extent required by
law.

         Unless otherwise specified with respect to any Security pursuant to
Section 301, if, after a deposit referred to in Section 1404(a) has been made,
(a) the Holder of a Security in respect of which such deposit was made is
entitled to, and does, elect pursuant to Section 312(b) or the terms of such
Security to receive payment in a Currency other than that in which the deposit
pursuant to Section 1404(a) has been made in respect of such Security, or (b) a
Conversion Event occurs as contemplated in Section 312(d) or 312(e) or by the
terms of any Security in respect of which the deposit pursuant to Section
1404(a) has been made, the indebtedness represented by such Security and any
coupons appertaining thereto shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium,
if any) and interest, if any, on such Security as the same becomes due out of
the proceeds yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property deposited in respect of
such Security into the Currency in which such Security becomes payable as a
result of such election or Conversion Event based on the applicable Market
Exchange Rate for such Currency in effect on the second Business Day prior to
each payment date, except, with respect to a Conversion Event, for such Currency
in effect (as nearly as feasible) at the time of the Conversion Event.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 1404 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Securities and any coupons
appertaining thereto.

         Anything in this Article Fourteen to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or Government Obligations (or other property and any proceeds
therefrom) held by it as provided in Section 1404 which, in the opinion of a
nationally recognized

                                       -87-

<PAGE>

firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect a defeasance or covenant
defeasance, as applicable, in accordance with this Article.

         SECTION 1406      Reinstatement.
                           -------------

         If the Trustee or Paying Agent is unable to apply any money or
Government Obligations in accordance with this Article 14 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's obligations under this Indenture and the Securities shall be revived
and reinstated as though no deposit had occurred pursuant to Section 1402, 1403
or 1404, as the case may be, until such time as the Trustee or Paying Agent is
permitted to apply all such money or Government Obligations in accordance with
Section 1405; provided that, if the Company has made any payment of principal of
or interest on the Securities of any series because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money or Government Obligations
held by the Trustee or Paying Agent.

                                ARTICLE FIFTEEN

                        MEETINGS OF HOLDERS OF SECURITIES

         SECTION 1501      Purposes for Which Meetings May Be Called.
                           -----------------------------------------

         If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article Fifteen to make, give or take any request,
demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be made, given or taken by Holders of Securities
of such series.

         SECTION 1502      Call, Notice and Place of Meetings.
                           ----------------------------------

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

         SECTION 1503      Persons Entitled to Vote at Meetings.
                           ------------------------------------

         To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or

                                       -88-

<PAGE>

Holders of one or more Outstanding Securities of such series by such Holder or
Holders. The only Persons who shall be entitled to be present or to speak at any
meeting of Holders of Securities of any series shall be the Persons entitled to
vote at such meeting and their counsel, any representatives of the Trustee and
its counsel and any representatives of the Company and its counsel.

          SECTION 1504  Quorum; Action.
                        --------------

          The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series; provided, however, that if any action is
to be taken at such meeting with respect to a consent or waiver which this
Indenture expressly provides may be given by the Holders of not less than a
specified percentage in principal amount of the Outstanding Securities of a
series, the Persons entitled to vote such specified percentage in principal
amount of the Outstanding Securities of such series shall constitute a quorum.
In the absence of a quorum within 30 minutes of the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Securities
of such series, be dissolved. In any other case the meeting may be adjourned for
a period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any such
adjourned meeting, such adjourned meeting may be further adjourned for a period
of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such adjourned meeting. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1502, except that such
notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of
any adjourned meeting shall state expressly the percentage, as provided above,
of the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

          Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage, which is
less than a majority, in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series.

          Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related coupons,
whether or not present or represented at the meeting.

                                      -89-

<PAGE>

          Notwithstanding the foregoing provisions of this Section 1504, if any
action is to be taken at a meeting of Holders of Securities of any series with
respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage in principal amount of all
Outstanding Securities affected thereby, or of the Holders of such series and
one or more additional series:

          (A) there shall be no minimum quorum requirement for such meeting; and

          (B) the principal amount of the Outstanding Securities of such series
     that vote in favor of such request, demand, authorization, direction,
     notice, consent, waiver or other action shall be taken into account in
     determining whether such request, demand, authorization, direction, notice,
     consent, waiver or other action has been made, given or taken under this
     Indenture.

          SECTION 1505  Determination of Voting Rights; Conduct and Adjournment
                        -------------------------------------------------------
                        of Meetings.
                        -----------

          (a) Notwithstanding any provisions of this Indenture, the Company may
make such reasonable regulations as it may deem advisable for any meeting of
Holders of Securities of a series in regard to proof of the holding of
Securities of such series and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the holding
of Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the Person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities. Such regulations may provide that
written instruments appointing proxies, regular on their face, may be presumed
valid and genuine without the proof specified in Section 104 or other proof.

          (b) The Company shall, by an instrument in writing, appoint a
temporary chairman of the meeting. A permanent chairman and a permanent
secretary of the meeting shall be elected by vote of the Persons entitled to
vote a majority in principal amount of the Outstanding Securities of such series
represented at the meeting.

          (c) At any meeting each Holder of a Security of such series or proxy
shall be entitled to one vote for each $1,000 principal amount of the
Outstanding Securities of such series held or represented by him; provided,
however, that no vote shall be cast or counted at any meeting in respect of any
Security challenged as not Outstanding and ruled by the chairman of the meeting
to be not Outstanding. The chairman of the meeting shall have no right to vote,
except as a Holder of a Security of such series or proxy.

                                       -90-

<PAGE>

          (d) Any meeting of Holders of Securities of any series duly called
pursuant to Section 1502 at which a quorum is present may be adjourned from time
to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting, and the
meeting may be held as so adjourned without further notice.

          SECTION 1506  Counting Votes and Recording Action of Meetings.
                        -----------------------------------------------

          The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
Series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1502 and, if
applicable, Section 1504. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the former to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                      -91-

<PAGE>

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

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

                                                 KPMG CONSULTING, INC.

                                                 By: _________________________
                                                     Name:
                                                     Title:

                                                 ____________________________,
                                                 as Trustee

                                                 By: ________________________
                                                     Name:
                                                     Title:

                                      -92-

<PAGE>

                                                                       Exhibit A

                              FORMS OF CERTIFICATES

                                       A-1

<PAGE>

                                                                    Exhibit A-1

              FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO
           RECEIVE BEARER SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR
                              TO THE EXCHANGE DATE

                                   CERTIFICATE

                  [Insert title or sufficient description of Securities to be
delivered]

                  This is to certify that, as of the date hereof, and except as
set forth below, the above-captioned Securities held by you for our account (i)
are owned by person(s) that are not citizens or residents of the United States,
domestic partnerships, domestic corporations or any estate or trust as defined
in Section 7701(a)(30) of the United States Internal Revenue Code of 1986, as
amended, (the "Code") ("United States person(s)"), (ii) are owned by United
States person(s) that are (a) foreign branches of United States financial
institutions (financial institutions, as defined in United States Treasury
Regulations Section 1.165-12(c)(1)(iv) are herein referred to as "financial
institutions") purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United
States financial institutions and who hold the Securities through such United
States financial institutions on the date hereof (and in either case (a) or (b),
each such United States financial institution hereby agrees, on its own behalf
or through its agent, that you may advise KPMG Consulting, Inc. or its agent
that such financial institution will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Code and the regulations promulgated
thereunder), or (iii) are owned by United States or foreign financial
institution(s) for purposes of resale during the restricted period (as defined
in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)), and, in
addition, if the owner is a United States or foreign financial institution
described in clause (iii) above (whether or not also described in clause (i) or
(ii)), this is to further certify that such financial institution has not
acquired the Securities for purposes of resale directly or indirectly to a
United States person or to a person within the United States or its possessions.

                  As used herein, "United States" means the United States of
America (including the States and the District of Columbia); and its
"possessions" include Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands.

                  We undertake to advise you promptly by tested telex on or
prior to the date on which you intend to submit your certification relating to
the above-captioned Securities held by you for our account in accordance with
your Operating Procedures if any applicable statement herein is not correct on
such date, and in the absence of any such notification it may be assumed that
this certification applies as of such date.

                  This certificate excepts and does not relate to $____________
of such interest in the above-captioned Securities in respect of which we are
not able to certify and as to which we understand an exchange for an interest in
a Permanent Global

                                      A-1-1

<PAGE>

Security or an exchange for and delivery of definitive Securities (or, if
relevant, collection of any interest) cannot be made until we do so certify.

                  We understand that this certificate may be required in
connection with certain United States tax laws. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated: ___________

[To be provided to the issuer on the earlier
of (i) the Exchange Date or (ii) the relevant
Interest Payment Date occurring prior to
the Exchange Date.]
[Name of Person Making Certification]

____________________________
(Authorized Signatory)
Name:
Title:

                                     A-1-2

<PAGE>

                                                                     Exhibit A-2

                FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR AND
             CLEARSTREAM BANKING SOCIETE ANONYME IN CONNECTION WITH
            THE EXCHANGE OF A PORTION OF A TEMPORARY GLOBAL SECURITY
            OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

                                   CERTIFICATE

                  [Insert title or sufficient description of Securities to be
delivered]

                  This is to certify that, based solely on written
certifications that we have received in writing, by tested telex or by
electronic transmission from each of the persons appearing in our records as
persons entitled to a portion of the principal amount set forth below (our
"Member Organizations") substantially in the form attached hereto, as of the
date hereof, $__________________ principal amount of the above-captioned
Securities (i) is owned by person(s) that are not citizens or residents of the
United States, domestic partnerships, domestic corporations or any estate or
trust as defined in Section 7701(a)(30) of the United States Internal Revenue
Code of 1986, as amended, (the "Code") ("United States person(s)"), (ii) is
owned by United States person(s) that are (a) foreign branches of United States
financial institutions (financial institutions, as defined in U.S. Treasury
Regulations Section 1.165-12(c)(1)(iv) are herein referred to as "financial
institutions") purchasing for their own account or for resale, or (b) United
States person(s) who acquired the Securities through foreign branches of United
States financial institutions and who hold the Securities through such United
States financial institutions on the date hereof (and in either case (a) or (b),
each such financial institution has agreed, on its own behalf or through its
agent, that we may advise KPMG Consulting, Inc. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A),(B) or (C)
of the Code and the regulations promulgated thereunder), or (iii) is owned by
United States or foreign financial institution(s) for purposes of resale during
the restricted period (as defined in United States Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), and, to the further effect, that financial institutions
described in clause (iii) above (whether or not also described in clause (i) or
(ii)) have certified that they have not acquired the Securities for purposes of
resale directly or indirectly to a United States person or to a person within
the United States or its possessions.

                  As used herein, "United States" means the United States of
America (including the States and the District of Columbia); and its
"possessions" include Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands.

                  We further certify that (i) we are not making available
herewith for exchange (or, if relevant, collection of any interest) any portion
of the temporary global Security representing the above-captioned Securities
excepted in the above-referenced certificates of Member Organizations and (ii)
as of the date hereof we have not received any notification from any of our
Member Organizations to the effect that the statements made by such Member
Organizations with respect to any portion of the part submitted

                                      A-2-1

<PAGE>

herewith for exchange (or, if relevant, collection of any interest) are no
longer true and cannot be relied upon as of the date hereof.

                  We understand that this certification is required in
connection with certain United States tax laws. If administrative or legal
proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated: ____________

[To be provided to the issuer on the earlier
of the Exchange Date or the relevant Interest
Payment Date occurring prior to the
Exchange Date.]

[Morgan Guaranty Trust Company of New
York, Brussels Office,] as Operator
of the Euroclear System
[Clearstream Banking societe anonyme]

By ___________________________________

                                      A-2-2

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