Document:

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                                                                    EXHIBIT 4.03

                  AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

               GUARANTEED BY AMERICAN AXLE & MANUFACTURING, INC.

                 SENIOR CONVERTIBLE NOTES DUE FEBRUARY 15, 2024

                                    INDENTURE

                          Dated as of February 11, 2004

                            BNY Midwest Trust Company

                                     Trustee

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                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
Trust Indenture Act                                                                                  Indenture Section
<S>                                                                                                  <C>
310(a)(1)..........................................................................................         7.10
   (a)(2)..........................................................................................         7.10
   (a)(5)..........................................................................................         7.10
   (b) ............................................................................................         7.10
   (c) ............................................................................................         N.A.
311(a).............................................................................................         7.11
   (b).............................................................................................         7.11
312(a).............................................................................................         2.05
   (b).............................................................................................        12.03
   (c).............................................................................................        12.03
313(a).............................................................................................         7.06
   (b)(2)..........................................................................................         7.06
   (c).............................................................................................         7.06
                                                                                                           12.02
   (d).............................................................................................         7.06
314(a).............................................................................................         4.04
                                                                                                           12.05
   (c)(1)..........................................................................................        12.04
   (c)(2)..........................................................................................        12.04
   (e).............................................................................................        12.05
316(a)(last sentence)..............................................................................         2.09
   (a)(1)(A).......................................................................................         6.12
   (a)(1)(B).......................................................................................         6.13
317(a)(1)..........................................................................................         6.03
</TABLE>

* This Cross-Reference Table is not part of this Indenture.

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                                TABLE OF CONTENTS

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                                TABLE OF CONTENTS

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<CAPTION>
                                                                                                                     PAGE
<S>                                                                                                                  <C>
ARTICLE 1         DEFINITIONS AND INCORPORATION BY REFERENCE....................................................       1

         Section 1.01.         Definitions......................................................................       1
         Section 1.02.         Other Definitions................................................................       8
         Section 1.03.         Incorporation by Reference of Trust Indenture Act................................       8
         Section 1.04.         Rules of Construction............................................................       8

ARTICLE 2         THE NOTES.....................................................................................       9

         Section 2.01.         Form and Dating..................................................................       9
         Section 2.02.         Execution and Authentication.....................................................      10
         Section 2.03.         Registrar, Paying Agent and Conversion Agent.....................................      10
         Section 2.04.         Paying Agent to Hold Money in Trust..............................................      10
         Section 2.05.         Holder Lists.....................................................................      11
         Section 2.06.         Transfer and Exchange............................................................      11
         Section 2.07.         Replacement Securities...........................................................      18
         Section 2.08.         Outstanding Securities...........................................................      18
         Section 2.09.         Treasury Securities..............................................................      19
         Section 2.10.         Temporary Securities.............................................................      19
         Section 2.11.         Cancellation.....................................................................      19
         Section 2.12.         Defaulted Interest...............................................................      19
         Section 2.13.         CUSIP Numbers....................................................................      19
         Section 2.14.         Calculations.....................................................................      20
         Section 2.15.         Liquidated Damages...............................................................      20

ARTICLE 3         REDEMPTION....................................................................................      20

         Section 3.01.         Method and Effect of Redemption..................................................      20
         Section 3.02.         Exclusion of Certain Securities From Eligibility for Selection for Redemption....      22
         Section 3.03.         Deposit of Redemption Price......................................................      22
         Section 3.04.         Securities Redeemed in Part......................................................      22
         Section 3.05.         Conversion Arrangement on Call for Redemption....................................      22
         Section 3.06.         Purchase of Securities at Option of the Holder for Cash..........................      23
         Section 3.07.         Purchase of Securities at Option of the Holder upon Change in Control............      25
         Section 3.08.         Effect of Purchase Notice or Change in Control Purchase Notice...................      28
         Section 3.09.         Deposit of Purchase Price or Change in Control Purchase Price....................      29
         Section 3.10.         Securities Purchased in Part.....................................................      30
         Section 3.11.         Repayment to the Company.........................................................      30

ARTICLE 4         COVENANTS.....................................................................................      30

         Section 4.01.         Payment of Securities............................................................      30
         Section 4.02.         Maintenance of Office or Agency..................................................      31
         Section 4.03.         Statement by Officers as to Default..............................................      31
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                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
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<S>                                                                                                                  <C>
         Section 4.04.         Existence........................................................................      31
         Section 4.05.         SEC and Other Reports............................................................      32
         Section 4.06.         Further Instruments and Acts.....................................................      32
         Section 4.07.         Covenant to Comply With Securities Laws Upon Purchase of Securities..............      32
         Section 4.08.         Delivery of Certain Information..................................................      32
         Section 4.09.         Tax Treatment of Securities......................................................      32
         Section 4.10.         Calculation of Certain Amounts...................................................      33

ARTICLE 5         CONSOLIDATION, MERGER, SALE OR CONVEYANCE.....................................................      34

         Section 5.01.         Consolidations and Mergers of Company Permitted Subject to Certain Conditions....      34
         Section 5.02.         Rights and Duties of Successor Corporation.......................................      34

ARTICLE 6         DEFAULTS AND REMEDIES.........................................................................      35

         Section 6.01.         Events of Default................................................................      35
         Section 6.02.         Acceleration of Maturity; Rescission and Annulment...............................      36
         Section 6.03.         Collection of Indebtedness and Suits for Enforcement by Trustee..................      37
         Section 6.04.         Trustee May File Proofs of Claim.................................................      38
         Section 6.05.         Trustee May Enforce Claims Without Possession of Securities......................      38
         Section 6.06.         Application of Money Collected...................................................      38
         Section 6.07.         Limitation on Suits..............................................................      39
         Section 6.08.         Unconditional Right of Holders to Receive Payments...............................      39
         Section 6.09.         Restoration of Rights and Remedies...............................................      40
         Section 6.10.         Rights and Remedies Cumulative...................................................      40
         Section 6.11.         Delay or Omission Not Waiver.....................................................      40
         Section 6.12.         Control by Holders...............................................................      40
         Section 6.13.         Waiver of Past Defaults..........................................................      41
         Section 6.14.         Undertaking for Costs............................................................      41
         Section 6.15.         Waiver of Stay or Extension Laws.................................................      41

ARTICLE 7         TRUSTEE.......................................................................................      41

         Section 7.01.         Duties of Trustee................................................................      41
         Section 7.02.         Rights of Trustee................................................................      42
         Section 7.03.         Individual Rights of Trustee.....................................................      43
         Section 7.04.         Trustee's Disclaimer.............................................................      43
         Section 7.05.         Notice of Defaults...............................................................      44
         Section 7.06.         Reports by Trustee to the Holders of the Securities..............................      44
         Section 7.07.         Compensation and Indemnity.......................................................      44
         Section 7.08.         Replacement of Trustee...........................................................      45
         Section 7.09.         Successor Trustee by Merger, Etc.................................................      46
         Section 7.10.         Eligibility; Disqualification....................................................      46
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                                TABLE OF CONTENTS
                                  (continued)

<TABLE>
<CAPTION>
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<S>                                                                                                                  <C>
         Section 7.11.         Preferential Collection of Claims Against the Company............................      46

ARTICLE 8         GUARANTEE.....................................................................................      46

         Section 8.01.         Guarantee........................................................................      46
         Section 8.02.         Severability.....................................................................      48
         Section 8.03.         Priority of Guarantee............................................................      48
         Section 8.04.         Limitation of Guarantor's Liability..............................................      48
         Section 8.05.         Subrogation......................................................................      48
         Section 8.06.         Reinstatement....................................................................      48
         Section 8.07.         Release of the Guarantor.........................................................      49
         Section 8.08.         Benefits Acknowledged............................................................      49

ARTICLE 9         AMENDMENT, SUPPLEMENT AND WAIVER..............................................................      49

         Section 9.01.         Supplemental Indentures Without Consent of Holders...............................      49
         Section 9.02.         Supplemental Indentures with Consent of Holders..................................      50
         Section 9.03.         Execution of Supplemental Indentures.............................................      51
         Section 9.04.         Effect of Supplemental Indentures................................................      51
         Section 9.05.         Reference in Securities to Supplemental Indentures...............................      51

ARTICLE 10        SATISFACTION AND DISCHARGE....................................................................      52

         Section 10.01.        Satisfaction and Discharge.......................................................      52
         Section 10.02.        Repayment to the Company.........................................................      52

ARTICLE 11        CONVERSIONS...................................................................................      52
         Section 11.01.        Conversion Privilege.............................................................      52
         Section 11.02.        Conversion Procedure.............................................................      53
         Section 11.03.        Fractional Shares................................................................      55
         Section 11.04.        Taxes on Conversion..............................................................      55
         Section 11.05.        The Company to Provide Stock.....................................................      55
         Section 11.06.        Adjustment for Change in Capital Stock...........................................      56
         Section 11.07.        Adjustment for Rights Issue......................................................      56
         Section 11.08.        Adjustment for Other Non-Cash Distributions......................................      57
         Section 11.09.        Adjustment for Cash Distributions................................................      59
         Section 11.10.        Adjustment for Tender Offers or Exchange Offers..................................      59
         Section 11.11.        When Adjustment May Be Deferred..................................................      60
         Section 11.12.        When No Adjustment Required......................................................      60
         Section 11.13.        Notice of Adjustment.............................................................      61
         Section 11.14.        Voluntary Increase...............................................................      61
         Section 11.15.        Notice of Certain Transactions...................................................      61
         Section 11.16.        Reorganization of Company; Special Distributions.................................      62
         Section 11.17.        Company Determination Final......................................................      62
         Section 11.18.        Trustee's Adjustment Disclaimer..................................................      63
         Section 11.19.        Simultaneous Adjustments.........................................................      63
         Section 11.20.        Successive Adjustments...........................................................      63
</TABLE>

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                                TABLE OF CONTENTS
                                  (continued)

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<S>                                                                                                             <C>
         Section 11.21.     Rights Issued in Respect of Common Stock Issued Upon Conversion..................    63

ARTICLE 12        CONTINGENT CASH INTEREST...................................................................    64

         Section 12.01.     Contingent Cash Interest.........................................................    64
         Section 12.02.     Payment of Contingent Cash Interest; Contingent Cash Interest Rights Preserved...    65
         Section 12.03.     Bid Solicitation Agent...........................................................    65

ARTICLE 13        MISCELLANEOUS..............................................................................    65

         Section 13.01.     Trust Indenture Act Controls.....................................................    65
         Section 13.02.     Notices..........................................................................    65
         Section 13.03.     Communication by Holders of Securities with Other Holders of Securities..........    67
         Section 13.04.     Certificate and Opinion as to Conditions Precedent...............................    67
         Section 13.05.     Statements Required in Certificate or Opinion....................................    67
         Section 13.06.     Rules by Trustee and Agents......................................................    68
         Section 13.07.     No Personal Liability of Directors, Officers, Employees and Stockholders.........    68
         Section 13.08.      Governing Law...................................................................    68
         Section 13.09.     No Adverse Interpretation of Other Agreements....................................    68
         Section 13.10.     Successors.......................................................................    68
         Section 13.11.     Severability.....................................................................    68
         Section 13.12.     Counterpart Originals............................................................    68
         Section 13.13.     Table of Contents, Headings, Etc.................................................    68
</TABLE>

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                               EXHIBITS AND ANNEX

Exhibit A         FORM OF NOTE
Exhibit B         FORM OF CERTIFICATE OF TRANSFER
Exhibit C         FORM OF CERTIFICATE OF EXCHANGE
Exhibit D         FORM OF GUARANTEE

Annex A           PROJECTED PAYMENT SCHEDULE

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                  INDENTURE dated as of February 11, 2004, between AMERICAN AXLE
& MANUFACTURING HOLDINGS, INC., a Delaware corporation (the "Company"), AMERICAN
AXLE & MANUFACTURING, INC., a Delaware corporation, as Guarantor (as defined
below) and BNY Midwest Trust Company, a New York banking corporation, as trustee
(the "Trustee").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of the Senior
Convertible Securities of the Company due February 15, 2024 (the "Securities").
Except as otherwise provided herein, the Securities shall be limited to
$150,000,000 in aggregate Original Principal Amount outstanding.

                                   ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  Section 1.01. Definitions.

                  "144A Global Security" means a global note in the form of
Exhibit A hereto bearing the Global Security Legend and the Private Placement
Legend and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Securities sold in reliance on Rule 144A.

                  "Accreted Principal Amount" of a Security means, until
February 15, 2011, the Original Principal Amount of the Security and, beginning
February 15, 2011, means the Original Principal Amount of the Security
increasing at the rate of 2.00% per year. The calculation of the accretion of
principal will be on a semiannual bond equivalent basis using a 360 day year of
twelve 30 day months. On February 15, 2024, the maturity date of the Securities,
a Holder will receive $1,295.25 for each $1,000 Original Principal Amount of
Securities.

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

                  "Agent" means any Registrar, Paying Agent or co-registrar.

                  "Applicable Procedures" means, with respect to any transfer or
exchange of or for beneficial interests in any Global Security, the rules and
procedures of the Depositary that apply to such transfer or exchange.

                  "Applicable Stock Price" means, in respect of a Conversion
Date, the average of the Closing Sale Prices per share of Common Stock over the
five Trading Day period starting the third Trading Day following such Conversion
Date.

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                  "Average Sale Price" means the average of the Sale Prices of
the Common Stock for the shortest of: (i) 30 consecutive Trading Days ending on
the last full Trading Day prior to the Time of Determination with respect to the
rights, warrants or options or dividends or distribution in respect of which the
Average Sale Price is being calculated, or (ii) the period (x) commencing on the
date next succeeding the first public announcement of (1) the issuance of
rights, warrants or options or (2) the distribution, in each case, in respect of
which the Average Sale Price is being calculated and (y) proceeding through the
last full Trading Day prior to the Time of Determination with respect to the
rights, warrants or options or distribution in respect of which the Average Sale
Price is being calculated (excluding days within such period, if any, which are
not Trading Days), or (iii) the period, if any, (x) commencing on the date next
succeeding the Ex-Dividend Time with respect to the next preceding (1) issuance
of rights, warrants or options or (2) distribution, in each case, for which an
adjustment is required by the provisions of Section 11.07, 11.08, 11.09 or 11.10
hereof and (y) proceeding through the last full Trading Day prior to the Time of
Determination with respect to the rights, warrants or options or distribution in
respect of which the Average Sale Price is being calculated (excluding days
within such period, if any, which are not Trading Days).

                  In the event that the Ex-Dividend Time (or in the case of a
subdivision, combination or reclassification, the effective date with respect
thereto) with respect to a dividend, distribution, subdivision, combination or
reclassification to which Section 11.06(a), (b), (c) or (d) hereof applies
occurs during the period applicable for calculating "Average Sale Price"
pursuant to the definition in the preceding sentence, "Average Sale Price" shall
be calculated for such period in a manner determined by the Board of Directors
to reflect the impact of such dividend, distribution, subdivision, combination
or reclassification on the Sale Price of the Common Stock during such period.

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

                  "Beneficial Owner" has the meaning assigned to such term in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the
beneficial ownership of any particular "person" (as that term is used in Section
13(d)(3) of the Exchange Act), such "person" shall be deemed to have beneficial
ownership of all securities that such "person" has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only upon the occurrence of a subsequent
condition. The terms "Beneficially Owns" and "Beneficially Owned" shall have a
corresponding meaning.

                  "Board of Directors" means (i) with respect to a corporation,
the board of directors of the corporation; (ii) with respect to a partnership,
the Board of Directors of the general partner of the partnership; and (iii) with
respect to any other Person, the board or committee of such Person serving a
similar function.

                  "Business Day" means any day other than a Legal Holiday.

                  "Capital Stock" means (i) in the case of a corporation,
corporate stock, (ii) in the case of an association or a business entity, any
and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or

                                       2

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limited liability company, partnership or membership interests (whether general
or limited), and (iv) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.

                  "Closing Sale Price" of the Common Stock on any Trading Date
means the closing sale price per share (or, if no closing sale price is
reported, the average of the closing bid and ask prices or, if more than one in
either case, the average of the average closing bid and the average closing ask
prices) on such Trading Date as reported on the principal United States
securities exchange on which the Common Stock is traded or, if the Common Stock
is not listed on a United States national or regional securities exchange, as
reported by the NYSE or by the National Quotation Bureau Incorporated. In the
absence of such quotations, the Company shall be entitled to determine the
Closing Sale Price on the basis it considers appropriate. The Closing Sale Price
shall be determined without reference to extended or after hours trading.

                  "Common Stock" means the shares of common stock, $.01 par
value per share, of the Company as it exists on the date of this Indenture or
any other shares of Capital Stock of the Company into which the Common Stock
shall be reclassified or changed.

                  "Company" means American Axle & Manufacturing Holdings, Inc.,
a Delaware corporation.

                  "Contingent Cash Interest" means such cash interest payable as
described in Article 12.

                  "Conversion Agent" shall initially mean the Trustee.

                  "Corporate Trust Office of the Trustee" shall be at the
address of the Trustee specified in Section 13.02 hereof or such other address
as to which the Trustee may give notice to the Company.

                  "Current Market Price" on any date of determination means the
average of the Closing Sale Prices per share of Common Stock for each of the 10
consecutive Trading Days ending on the earlier of such date of determination and
the day before the "ex-date" with respect to the issuance, dividend or
distribution requiring such computation immediately prior to the date in
question. For purpose of this definition, the term "ex-date," means the first
date on which the Common Stock trades, regular way, on the relevant exchange or
in the relevant market from which the Closing Sale Price was obtained without
the right to receive such dividend or distribution.

                  "Custodian" means the Trustee, as custodian with respect to
the Securities in global form, or any successor entity thereto.

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

                  "Definitive Security" means a certificated Security registered
in the name of the Holder thereof and issued in accordance with Section 2.06
hereof, in the form of Exhibit A

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hereto, except that such Security shall not bear the Global Security Legend and
shall not have the "Schedule of Exchanges of Interests in the Global Security"
attached thereto.

                  "Depositary" means, with respect to the Securities issuable or
issued in whole or in part in global form, the Person specified in Section 2.03
hereof as the Depositary with respect to the Securities, and any and all
successors thereto appointed as depositary hereunder and having become such
pursuant to the applicable provision of this Indenture.

                  "Ex-Dividend Time" means with respect to stockholders of the
Company entitled to receive rights, warrants or options or a dividend or
distribution, the time immediately prior to the commencement of "ex-dividend"
trading for such rights, warrants or options or a dividend or distribution on
the New York Stock Exchange or such other national or regional exchange or
market on which the Common Stock is then listed or quoted.

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

                  "Fair Market Value" means the amount which a willing buyer
would pay a willing seller in an arm's-length transaction between an informed
and willing seller under no compulsion to sell and an informed and willing buyer
under no compulsion to buy.

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

                  "Global Security Legend" means the legend set forth in Section
2.06(e)(ii), which is required to be placed on all Global Securities issued
under this Indenture.

                  "Global Securities" means, individually and collectively, each
of the Restricted Global Securities and the Unrestricted Global Securities,
issued in accordance with certain sections of this Indenture.

                   "guarantee" means a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, letters of
credit and reimbursement agreements in respect thereof), of all or any part of
any Indebtedness or other obligations.

                  "Guarantee" means any guarantee of the obligations of the
Company under this Indenture and the Securities by any Person in accordance with
the provisions of this Indenture.

                  "Guarantor" means American Axle & Manufacturing, Inc. and its
successors and assigns until released from its obligations under its Guarantee
and this Indenture in accordance with the terms of this Indenture.

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

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                   "Indebtedness" means (1) any liability of any Person (a) for
borrowed money, or (b) evidenced by a bond, note, debenture or similar
instrument (including purchase money obligations but excluding Trade Payables),
or (c) for the payment of money relating to a lease that is required to be
classified as a capitalized lease obligation in accordance with GAAP; (2)
preferred or preference stock of a Subsidiary of the Company held by Persons
other than the Company or a Subsidiary of the Company; (3) any liability of
others described in the preceding clause (1) that the Person has guaranteed,
that is recourse to such Person or that is otherwise its legal liability; and
(4) any amendment, supplement, modification, deferral, renewal, extension or
refunding of any liability of the types referred to in clauses (1), (2) and (3)
above.

                  "Indenture" means this Indenture, as amended or supplemented
from time to time.

                  "Indirect Participant" means a Person who holds a beneficial
interest in a Global Security through a Participant.

                   "Issue Date" means the date on which the $150 million in
aggregate principal amount of the Securities were originally issued under this
Indenture.

                  "Issue Price" of any Security means, in connection with the
original issuance of such Security, the initial issue price at which the
Security is sold as set forth on the face of the Security.

                  "Legal Holiday" means a Saturday, a Sunday or a day on which
commercial banks in The City of New York or at a place of payment are authorized
or required by law, regulation or executive order to remain closed. If a payment
date is a Legal Holiday at a place of payment, payment may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.

                   "Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law, including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction.

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

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

                  "Officers' Certificate" means a certificate signed on behalf
of the Company by two Officers of the Company, one of whom must be the principal
executive officer, the principal

                                       5

<PAGE>

financial officer, the treasurer, or the principal accounting officer of the
Company, that meets the requirements of Section 13.05 hereof.

                   "Opinion of Counsel" means an opinion from legal counsel that
meets the requirements of Section 12.05 hereof. The counsel may be an employee
of or counsel to the Company.

                  "Original Principal Amount" means the original principal
amount of such Security on the Issue Date as set forth on the face of such
Security, and shall be equal to the Issue Price.

                  "Participant" means a Person who has an account with the
Depositary.

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

                  "principal" or "principal amount" of a Security on any date
means the Accreted Principal Amount of such Security on such date.

                  "Private Placement Legend" means the legend set forth in
Section 2.06(e)(i) to be placed on all Securities issued hereunder except where
otherwise permitted by the provisions of this Indenture.

                  "QIB" means a "qualified institutional buyer" as defined in
Rule 144A.

                  "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.

                   "Registration Rights Agreement" means the Registration Rights
Agreement, dated as of February 11, 2004, by and among the Company, the
Guarantor and the other parties named on the signature pages thereof, as such
agreement may be amended, modified or supplemented from time to time.

                   "Responsible Officer" when used with respect to the Trustee,
means any officer within the Corporate Trust Office of the Trustee (or any
successor group of the Trustee) or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject and who shall have direct
responsibility for the administration of this Indenture.

                  "Restricted Definitive Security" means a Definitive Security
bearing the Private Placement Legend.

                  "Restricted Global Security" means a Global Security bearing
the Private Placement Legend.

                  "Rule 144" means Rule 144 promulgated under the Securities
Act.

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                  "Rule 144A" means Rule 144A promulgated under the Securities
Act.

                  "Sale Price" of Common Stock on any date means (a) the closing
per share sale price (or, if no closing sale price is reported, the average of
the bid and ask prices or, if more than one in either case, the average of the
average bid and the average ask prices) on such date as reported in the
composite transactions for the principal United States securities exchange on
which the Common Stock is traded or, if the Common Stock is not listed on a
United States national or regional securities exchange, as reported by the
National Association of Securities Dealers Automated Quotation System or by the
National Quotation Bureau Incorporated or (b) in the absence of such quotation,
such price as the Company shall reasonably determine on the basis of such
quotations as most accurately reflecting the price that a fully-informed buyer,
acting on his own accord, would pay to a fully-informed seller, acting on his
own accord in an arm's-length transaction, for a share of such Common Stock.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities" means the Notes and the Guarantee.

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

                  "Shelf Registration Statement" means the Shelf Registration
Statement as defined in the Registration Rights Agreement.

                  "Significant Subsidiary" means any Subsidiary that would
constitute a "significant subsidiary" within the meaning of Article 1 of
Regulation S-X of the Securities Act as in effect on the date of this Indenture.

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

                  "Subsidiary" means any corporation of which at least a
majority of the outstanding stock having by the terms thereof ordinary voting
power for the election of directors of such corporation (irrespective of whether
or not at the time stock of any other class or classes of such corporation shall
have or might have voting power by reason of the happening of any contingency)
is at the time directly or indirectly owned by the Company, the Guarantor or by
one or more other Subsidiaries, or by the Company, the Guarantor and one or more
other Subsidiaries.

                  "TIA" means the Trust Indenture Act of 1939, as amended (15
U.S.C. Sections 77aaa-77bbbb) as in effect on the date on which this Indenture
is qualified under the TIA.

                  "Time of Determination" means the time and date of the earlier
of (a) the determination of stockholders entitled to receive rights, warrants or
options or a distribution, in each case, to which Section 11.07 or 11.08 hereof
applies, and (b) the Ex-Dividend Time.

                                       7

<PAGE>

                  "Trading Day" means a day during which trading in securities
generally occurs on the NYSE or, if the Common Stock is not listed on the NYSE,
on the principal other national or regional securities exchange on which the
Common Stock is then listed or, if the Common Stock is not listed on a national
or regional securities exchange, on the National Association of Securities
Dealers Automated Quotation System or, if the Common Stock is not quoted on the
National Association of Securities Dealers Automated Quotation System, on any
Business Day.

                   "Trustee" means the party named as such in the preamble to
this Indenture until a successor replaces it in accordance with the applicable
provisions of this Indenture and thereafter means the successor serving
hereunder.

                  "Unrestricted Definitive Security" means one or more
Definitive Securities that do not bear and are not required to bear the Private
Placement Legend.

                  "Unrestricted Global Security" means a permanent global
Security in the form of Exhibit A attached hereto that bears the Global Security
Legend and that has the "Schedule of Exchanges of Interests in the Global
Security" attached thereto, and that is deposited with or on behalf of and
registered in the name of the Depositary, representing a series of Securities
that do not bear the Private Placement Legend.

                  Section 1.02. Other Definitions.

<TABLE>
<CAPTION>
                                                                        DEFINED IN
TERM                                                                     SECTION
----                                                                     -------
<S>                                                                     <C>
"Associate" ......................................................         3.07
"Authentication Order"............................................         2.02
"Average Security Market Price" ..................................        12.01
"Change in Control" ..............................................         3.07
"Change in Control Purchase Date" ................................         3.07
"Change in Control Purchase Notice" ..............................         3.07
"Change in Control Purchase Price" ...............................         3.07
"Company Notice" .................................................         3.06
"Contingent Cash Interest Payment Date" ..........................        12.02
"Contingent Cash Interest Record Date" ...........................        12.02
"Conversion Agent" ...............................................         2.03
"Conversion Date" ................................................        11.02
"Conversion Rate" ................................................        11.01
"Covenant Defeasance".............................................         8.03
"DTC".............................................................         2.03
"Event of Default"................................................         6.01
"Ex-Dividend Date" ...............................................        11.08
"Expiration Time" ................................................        11.10
"Interest Payment Date" ..........................................        Ex. A
"Legal Defeasance"................................................         8.02
"Measurement Period" .............................................        Ex. A
"Notice of Default" ..............................................         6.01
"Paying Agent"....................................................         2.03
</TABLE>

                                       8

<PAGE>

<TABLE>
<CAPTION>
                                                                        DEFINED IN
TERM                                                                     SECTION
----                                                                     -------
<S>                                                                     <C>
"Post-Distribution Price" ........................................        11.08
"Purchase Date" ..................................................         3.06
"Purchase Notice" ................................................         3.06
"Purchased Shares" ...............................................        11.10
"Redemption Price" ...............................................        Ex. A
"Registrar".......................................................         2.03
"Regular Record Date" ............................................        Ex. A
"Relevant Value" .................................................        12.01
"Resale Restriction Termination Date" ............................         2.06
"Rights" .........................................................        11.21
"Rights Agreement" ...............................................        11.21
"Rule 144A Information" ..........................................         4.08
"Semiannual Period" ..............................................        12.01
</TABLE>

                  Section 1.03. Incorporation by Reference of Trust Indenture
Act. Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture.

                  The following TIA terms used in this Indenture have the
following meanings:

                  (i)      "indenture securities" means the Securities;

                  (ii)     "indenture security Holder" means a Holder of a
                           Security;

                  (iii)    "indenture to be qualified" means this Indenture;

                  (iv)     "indenture trustee" or "institutional trustee" means
                           the Trustee; and

                  (v)      "obligor" on the Securities means the Company and any
                           successor obligor upon the Securities.

                  All other terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by SEC rule under
the TIA have the meanings so assigned to them.

                  Section 1.04. Rules of Construction. Unless the context
otherwise requires:

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

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

                  (iii)    "or" is not exclusive;

                                       9

<PAGE>

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

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

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

                                    ARTICLE 2

                                    THE NOTES

                  Section 2.01. Form and Dating. (a) General. The Notes and the
Trustee's certificate of authentication shall be substantially in the form of
Exhibit A hereto and the Guarantee shall be substantially in the form of Exhibit
D hereto. The Securities may have notations, legends or endorsements required by
law, stock exchange rule or usage. Each Security shall be dated the date of its
authentication. The Securities shall be in denominations of Original Principal
Amount of $1,000 and integral multiples thereof.

                  The terms and provisions contained in the Securities shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company, the Guarantor and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of any Security conflicts with the express
provisions of this Indenture, the provisions of this Indenture shall govern and
be controlling.

                  (b) Global Securities. Securities issued in global form shall
be substantially in the form of Exhibit A attached hereto (including the Global
Security Legend thereon and the "Schedule of Exchanges of Interests in the
Global Security" attached thereto). Securities issued in definitive form shall
be substantially in the form of Exhibit A attached hereto (but without the
Global Security Legend thereon and without the "Schedule of Exchanges of
Interests in the Global Security" attached thereto). Each Global Security shall
represent such of the outstanding Original Principal Amount of Securities as
shall be specified therein and each shall provide that it shall represent the
aggregate Original Principal Amount of outstanding Securities from time to time
endorsed thereon and that the aggregate Original Principal Amount of outstanding
Securities represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Security to reflect the amount of any increase or decrease in the aggregate
Original Principal Amount of outstanding Securities represented thereby shall be
made by the Trustee, in accordance with instructions given by the Holder thereof
as required by Section 2.06 hereof.

                  Section 2.02. Execution and Authentication. One Officer of the
Company shall sign the Securities for the Company by manual or facsimile
signature, and one Officer of the Guarantor shall sign the Guarantee for the
Guarantor by manual or facsimile signature.

                                       10

<PAGE>

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

                  A Security shall not be valid until authenticated by the
manual signature of the Trustee. The signature shall be conclusive evidence that
the Security has been authenticated under this Indenture.

                  The Trustee shall, upon a written order of the Company signed
by one Officer (an "Authentication Order"), authenticate $150 million aggregate
Original Principal Amount of Securities for original issue. The aggregate
Original Principal Amount of Securities outstanding at any time may not exceed
such amount except as provided in Section 2.07 hereof.

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

                  Section 2.03. Registrar, Paying Agent and Conversion Agent.
The Company shall maintain an office or agency where Securities may be presented
for registration of transfer or for exchange ("Registrar"), an office or agency
where Securities may be presented for purchase or payment ("Paying Agent"), and
an office or agency where Securities may be presented for conversion
("Conversion Agent"). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Company may appoint one or more
co-registrars and one or more additional paying agents and conversion agents.
The term "Registrar" includes any co-registrar, the term "Paying Agent" includes
any additional paying agent and the term "Conversion Agent" includes any
additional conversion agent. The Company may change any Paying Agent or
Registrar without notice to any Holder. The Company shall promptly notify the
Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such. The
Company or any of its Subsidiaries may act as Registrar, Paying Agent or
Conversion Agent.

                  The Company initially appoints the Trustee to act as the
Registrar, Paying Agent and Conversion Agent and to act as Custodian with
respect to the Global Securities.

                  Section 2.04. Paying Agent to Hold Money in Trust. The Company
shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent shall hold in trust for the benefit of Holders or the Trustee
all money held by the Paying Agent for the payment of principal, premium or
Additional Interest, if any, or interest on the Securities, and shall notify the
Trustee of any default by the Company or the Guarantor in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust
fund for the benefit of the Holders all money held by it as Paying Agent. Upon
any bankruptcy

                                       11

<PAGE>

or reorganization proceedings relating to the Company or the Guarantor, the
Trustee shall serve as Paying Agent for the Securities.

                  Section 2.05. Holder Lists. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of all Holders and shall otherwise comply with TIA
Section 312(a). If the Trustee is not the Registrar, the Company shall furnish
to the Trustee at least seven Business Days before each interest payment date
and at such other times as the Trustee may request in writing, a list in such
form and as of such date as the Trustee may reasonably require of the names and
addresses of the Holders of Securities and the Company shall otherwise comply
with TIA Section 312(a).

                  Section 2.06. Transfer and Exchange. (a) Transfer and Exchange
of Global Securities. A Global Security may not be transferred as a whole except
by the Depositary to a nominee of the Depositary, by a nominee of the Depositary
to the Depositary or to another nominee of the Depositary, by the Depositary or
any such nominee to a successor Depositary or a nominee of such successor
Depositary. All Global Securities shall be exchanged by the Company for
Definitive Securities if (i) the Company delivers to the Trustee notice from the
Depositary that it is unwilling or unable to continue to act as Depositary or
that it is no longer a clearing agency registered under the Exchange Act and, in
either case, a successor Depositary is not appointed by the Company within 90
days after the date of such notice from the Depositary or (ii) the Company in
its sole discretion determines that the Global Securities (in whole but not in
part) should be exchanged for Definitive Securities and delivers a written
notice to such effect to the Trustee or (iii) there shall have occurred and be
continuing a Default or Event of Default with respect to the Securities. Upon
the occurrence of any of the preceding events in (i), (ii) or (iii) above,
Definitive Securities shall be issued in such names as the Depositary shall
instruct the Trustee. Global Securities also may be exchanged or replaced, in
whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every Security
authenticated and delivered in exchange for, or in lieu of, a Global Security or
any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Security. A Global Security may not be exchanged for another Security
other than as provided in this Section 2.06(a); however, beneficial interests in
a Global Security may be transferred and exchanged as provided in Section
2.06(b) or (c) hereof.

                  (b) Transfer and Exchange of Beneficial Interests in the
Global Securities. The transfer and exchange of beneficial interests in the
Global Securities shall be effected through the Depositary, in accordance with
the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Securities shall be subject to restrictions
on transfer comparable to those set forth herein to the extent required by the
Securities Act. Transfers of beneficial interests in the Global Securities also
shall require compliance with either subparagraph (i) or (ii) below, as
applicable, as well as one or more of the other following subparagraphs, as
applicable:

                  (i)      Transfer of Beneficial Interests in the Same Global
         Security. Beneficial interests in any Restricted Global Security may be
         transferred to Persons who take delivery thereof in the form of a
         beneficial interest in the same Restricted Global Security in
         accordance with the transfer restrictions set forth in the Private
         Placement Legend. Beneficial interests in any Unrestricted Global
         Security may be transferred to Persons

                                       12

<PAGE>

         who take delivery thereof in the form of a beneficial interest in an
         Unrestricted Global Security. No written orders or instructions shall
         be required to be delivered to the Registrar to effect the transfers
         described in this Section 2.06(b)(i).

                  (ii)     All Other Transfers and Exchanges of Beneficial
         Interests in Global Securities. In connection with all transfers and
         exchanges of beneficial interests that are not subject to Section
         2.06(b)(i) above, the transferor of such beneficial interest must
         deliver to the Registrar either: (A)(1) a written order from a
         Participant or an Indirect Participant given to the Depositary in
         accordance with the Applicable Procedures directing the Depositary to
         credit or cause to be credited a beneficial interest in the Global
         Security in an Original Principal Amount equal to the beneficial
         interest to be transferred or exchanged and (2) instructions given in
         accordance with the Applicable Procedures containing information
         regarding the Participant account to be credited with such increase, or
         (B)(1) a written order from a Participant or an Indirect Participant
         given to the Depositary in accordance with the Applicable Procedures
         directing the Depositary to cause to be issued a Definitive Security in
         an Original Principal Amount equal to the beneficial interest to be
         transferred or exchanged and (2) instructions given by the Depositary
         to the Registrar containing information regarding the Person in whose
         name such Definitive Security shall be registered to effect the
         transfer or exchange referred to in (1) above. Upon satisfaction of all
         of the requirements for transfer or exchange of beneficial interests in
         Global Securities contained in this Indenture and the Securities or
         otherwise applicable under the Securities Act, the Trustee shall adjust
         the Original Principal Amount of the relevant Global Security(ies)
         pursuant to Section 2.06(f) hereof; and

                  (iii)    Transfer and Exchange of Beneficial Interests in a
         Restricted Global Security for Beneficial Interests in an Unrestricted
         Global Security. A beneficial interest in any Restricted Global
         Security may be transferred to a Person who takes delivery thereof in
         the form of a beneficial interest in an Unrestricted Global Security if
         the transfer complies with the requirements of Section 2.06(b)(ii)
         above and:

                           (A) such transfer is effected pursuant to the Shelf
                  Registration Statement in accordance with the Registration
                  Rights Agreement; or

                           (B) the Registrar receives the following:

                                    (1)      if the holder of such beneficial
                           interest in a Restricted Global Security proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Security, a
                           certificate from such holder in the form of Exhibit C
                           hereto, including the certifications in item (1)(a)
                           thereof; or

                                    (2)      if the holder of such beneficial
                           interest in a Restricted Global Security proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in an Unrestricted Global
                           Security, a certificate from such holder in the form
                           of Exhibit B hereto, including the certifications in
                           item (3) thereof;

                                       13

<PAGE>

                  and, in each such case set forth in this subparagraph (B), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on transfer contained herein and in the Private
                  Placement Legend are no longer required in order to maintain
                  compliance with the Securities Act.

                  If any such transfer is effected pursuant to subparagraph (A)
or (B) above at a time when an Unrestricted Global Security has not yet been
issued, the Company and the Guarantor shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall
authenticate one or more Unrestricted Global Securities in an aggregate Original
Principal Amount equal to the aggregate Original Principal Amount of beneficial
interests transferred pursuant to subparagraph (A) or (B) above.

                  Beneficial interests in an Unrestricted Global Security cannot
be exchanged for, or transferred to Persons who take delivery thereof in the
form of, a beneficial interest in a Restricted Global Security.

                  (c) Transfer or Exchange of Beneficial Interests for
Definitive Securities.

                  (i)      Beneficial Interests in Restricted Global Securities
         to Unrestricted Definitive Securities. A holder of a beneficial
         interest in a Restricted Global Security may exchange such beneficial
         interest for an Unrestricted Definitive Security or may transfer such
         beneficial interest to a Person who takes delivery thereof in the form
         of an Unrestricted Definitive Security only if:

                           (A)      such transfer is effected pursuant to the
                  Shelf Registration Statement in accordance with the
                  Registration Rights Agreement; or

                           (B)      the Registrar receives the following:

                                    (1)      if the holder of such beneficial
                           interest in a Restricted Global Security proposes to
                           exchange such beneficial interest for a Definitive
                           Security that does not bear the Private Placement
                           Legend, a certificate from such holder in the form of
                           Exhibit C hereto, including the certifications in
                           item (1)(b) thereof; or

                                    (2)      if the holder of such beneficial
                           interest in a Restricted Global Security proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           Definitive Security that does not bear the Private
                           Placement Legend, a certificate from such holder in
                           the form of Exhibit B hereto, including the
                           certifications in item (3) thereof;

                  and, in each such case set forth in this subparagraph (B), if
                  the Registrar so requests or if the Applicable Procedures so
                  require, an Opinion of Counsel in form reasonably acceptable
                  to the Registrar to the effect that such exchange or transfer
                  is in compliance with the Securities Act and that the
                  restrictions on

                                       14

<PAGE>

                  transfer contained herein and in the Private Placement Legend
                  are no longer required in order to maintain compliance with
                  the Securities Act.

                  (ii)     Beneficial Interests in Unrestricted Global
         Securities to Unrestricted Definitive Securities. If any holder of a
         beneficial interest in an Unrestricted Global Security proposes to
         exchange such beneficial interest for a Definitive Security or to
         transfer such beneficial interest to a Person who takes delivery
         thereof in the form of a Definitive Security, then, upon satisfaction
         of the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee
         shall cause the aggregate Original Principal Amount of the applicable
         Global Security to be reduced accordingly pursuant to Section 2.06(f)
         hereof, and the Company and the Guarantor shall execute and the Trustee
         shall authenticate and deliver to the Person designated in the
         instructions a Definitive Security in the appropriate Original
         Principal Amount. Any Definitive Security issued in exchange for a
         beneficial interest pursuant to this Section 2.06(c)(ii) shall be
         registered in such name or names and in such authorized denomination or
         denominations as the holder of such beneficial interest shall instruct
         the Registrar through instructions from the Depositary and the
         Participant or Indirect Participant. The Trustee shall deliver such
         Definitive Securities to the Persons in whose names such Securities are
         so registered. Any Definitive Security issued in exchange for a
         beneficial interest pursuant to this Section 2.06(c)(ii) shall not bear
         the Private Placement Legend.

                  (d)      Transfer and Exchange of Definitive Securities for
Definitive Securities. Upon request by a Holder of Definitive Securities and
such Holder's compliance with the provisions of this Section 2.06(d), the
Registrar shall register the transfer or exchange of Definitive Securities.
Prior to such registration of transfer or exchange, the requesting Holder shall
present or surrender to the Registrar the Definitive Securities duly endorsed or
accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by his attorney, duly authorized in
writing. In addition, the requesting Holder shall provide any additional
certifications, documents and information, as required or requested by the
Trustee.

                  (e)      Legends. The following legends shall appear on the
face of all Global Securities and Definitive Securities issued under this
Indenture unless specifically stated otherwise in the applicable provisions of
this Indenture.

                  (i)      Private Placement Legend.

                           (A)      Except as permitted by subparagraph (B)
                  below, each Global Security and each Definitive Security (and
                  all Securities issued in exchange therefor or substitution
                  thereof) shall bear the legend in substantially the following
                  form:

                 "THIS SECURITY, THE COMMON STOCK INTO WHICH THE NOTES ARE
                  CONVERTIBLE AND THE GUARANTEE HAVE NOT BEEN REGISTERED UNDER
                  THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"),
                  OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE
                  GUARANTEE NOR ANY INTEREST OR PARTICIPATION

                                       15

<PAGE>

                  HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
                  TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
                  THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
                  EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

                  THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1)
                  REPRESENTS THAT IT IS A ""QUALIFIED INSTITUTIONAL BUYER" (AS
                  DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (2) AGREES TO
                  OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE
                  DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO
                  YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
                  THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF ANY OF
                  THE FOREGOING WAS THE OWNER OF THIS SECURITY (OR ANY
                  PREDECESSOR OF SUCH SECURITY) ONLY (A) TO THE COMPANY OR ANY
                  SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITY IS
                  ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT
                  REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
                  DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES
                  FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
                  INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER
                  IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO A
                  REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER
                  THE SECURITIES ACT OR (D) PURSUANT TO ANOTHER AVAILABLE
                  EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
                  ACT, INCLUDING UNDER RULE 144, IF AVAILABLE, SUBJECT TO THE
                  COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER,
                  SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO, PRIOR TO THE
                  RESALE RESTRICTION TERMINATION DATE, REQUIRE THE DELIVERY OF
                  AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
                  SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING
                  CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE
                  OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
                  TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON
                  THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
                  TERMINATION DATE."

                           (B)      Notwithstanding the foregoing, any Global
                  Security or Definitive Security issued pursuant to
                  subparagraphs (b)(iii), (c)(i), (c)(ii) or (d) to this Section
                  2.06 (and all Securities issued in exchange therefor or
                  substitution thereof) shall not bear the Private Placement
                  Legend.

                           (ii)     Global Security Legend. Each Global Security
                  shall bear a legend in substantially the following form:

                                       16

<PAGE>

                  "THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN
                  THE INDENTURE GOVERNING THE SECURITY) OR ITS NOMINEE IN
                  CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
                  IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
                  EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
                  MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE,
                  (II) THIS GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN
                  PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (III) THIS
                  GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR
                  CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND
                  (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A SUCCESSOR
                  DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY."

                           (iii)    U.S. Tax Legend. All Securities shall bear
                  the following legend:

                  "THE NOTES WILL BE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR
                  U.S. FEDERAL INCOME TAX PURPOSES. THE ISSUE PRICE FOR EACH
                  NOTE WILL BE $1,000 AND THE ISSUE DATE FOR THE NOTES IS
                  FEBRUARY 11, 2004. THE COMPARABLE YIELD FOR THE NOTES IS 4.58%
                  PER ANNUM, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS
                  THE YIELD TO MATURITY FOR U.S. FEDERAL INCOME TAX PURPOSES).
                  FOR INFORMATION REGARDING THE YIELD TO MATURITY ON THE NOTES,
                  THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE NOTES, AND THE
                  PROJECTED PAYMENT SCHEDULE FOR THE NOTES, HOLDERS SHOULD
                  CONTACT THE GENERAL COUNSEL OF AMERICAN AXLE & MANUFACTURING
                  HOLDINGS, INC., AT ONE DAUCH DRIVE, DETROIT, MICHIGAN
                  48211-1198."

                  (f) Cancellation and/or Adjustment of Global Securities. At
such time as all beneficial interests in a particular Global Security have been
exchanged for Definitive Securities or a particular Global Security has been
redeemed, repurchased, converted or canceled in whole and not in part, each such
Global Security shall be returned to or retained and canceled by the Trustee in
accordance with Section 2.11 hereof. At any time prior to such cancellation, if
any beneficial interest in a Global Security is exchanged for or transferred to
a Person who shall take delivery thereof in the form of a beneficial interest in
another Global Security or for Definitive Securities, the Original Principal
Amount of Securities represented by such Global Security shall be reduced
accordingly and an endorsement shall be made on such Global Security by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who shall take delivery thereof in the form of a beneficial interest
in another Global Security, such other Global Security shall be increased
accordingly and an endorsement shall be made on such Global Security by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

                  (g) General Provisions Relating to Transfers and Exchanges.

                                       17

<PAGE>

                  (i)      To permit registrations of transfers and exchanges,
         the Company and the Guarantor shall execute and the Trustee shall
         authenticate Global Securities and, if necessary, Definitive Securities
         upon the Company' order or at the Registrar's request.

                  (ii)     No service charge shall be made to a holder of a
         beneficial interest in a Global Security or to a Holder of a Definitive
         Security for any registration of transfer or exchange, but the Company
         may require payment of a sum sufficient to cover any transfer tax or
         similar governmental charge payable in connection therewith (other than
         any such transfer taxes or similar governmental charge payable upon
         exchange or transfer pursuant to Sections 2.10, 3.04, 3.10, 9.05, 11.02
         and 11.04 hereof).

                  (iii)    The Registrar shall not be required to register the
         transfer of or exchange any Security selected for redemption in whole
         or in part, except the unredeemed portion of any Security being
         redeemed in part.

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

                  (v)      The Company shall not be required (A) to issue, to
         register the transfer of or to exchange any Securities during a period
         beginning at the opening of business 15 days before the day of any
         selection of Securities for redemption under Section 3.01 hereof and
         ending at the close of business on the day of selection, or (B) to
         register the transfer of or to exchange any Security so selected for
         redemption in whole or in part, except the unredeemed portion of any
         Security being redeemed in part, or any Security in respect of which a
         Purchase Notice or a Change in Control Purchase Notice has been give
         and not withdrawn by the Holder thereof in accordance with the terms of
         this Indenture, except the portion of any Security not to be purchased.

                  (vi)     Prior to due presentment for the registration of a
         transfer of any Security, the Trustee, any Agent and the Company may
         deem and treat the Person in whose name any Security is registered as
         the absolute owner of such Security for the purpose of receiving
         payment of principal of and interest on such Securities and for all
         other purposes, and none of the Trustee, any Agent or the Company shall
         be affected by notice to the contrary.

                  (vii)    The Trustee shall authenticate Global Securities and
         Definitive Securities in accordance with the provisions of Section 2.02
         hereof.

                  (viii)   All certifications, certificates and Opinions of
         Counsel required to be submitted to the Registrar pursuant to this
         Section 2.06 to effect a registration of transfer or exchange may be
         submitted by facsimile with the original to follow by first class mail.

                  Section 2.07. Replacement Securities. If any mutilated
Security is surrendered to the Trustee or the Company or if the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Security,
the Company and the Guarantor shall issue and the

                                       18

<PAGE>

Trustee, upon receipt of an Authentication Order, shall authenticate a
replacement Security if the Trustee's requirements are met. If required by the
Trustee or the Company, an indemnity bond must be supplied by the Holder that is
sufficient in the judgment of the Trustee and the Company to protect the
Company, the Guarantor, the Trustee, any Agent and any authenticating agent from
any loss that any of them may suffer if a Security is replaced. The Company may
charge for its expenses in replacing a Security.

                  Every replacement Security issued pursuant to this Section
2.07 is an additional obligation of the Company and the Guarantor and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Securities duly issued hereunder.

                  Section 2.08. Outstanding Securities. The Securities
outstanding at any time are all the Securities authenticated by the Trustee
except for those canceled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Security effected by the Trustee in
accordance with the provisions hereof, and those described in this Section as
not outstanding. Except as set forth in Section 2.09 hereof, a Security does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Security; however, Securities held by the Company or a Subsidiary of the
Company shall not be deemed to be outstanding for purposes of Section 3.01, 3.06
or 3.07 hereof.

                  If a Security is replaced pursuant to Section 2.07 hereof, it
ceases to be outstanding unless the Trustee receives proof satisfactory to it
that the replaced Security is held by a bona fide purchaser.

                  If the principal amount of any Security is considered paid
under Section 4.01 hereof, it ceases to be outstanding and interest on it ceases
to accrue and the Accreted Principal Amount ceases to increase.

                  If the Paying Agent (other than the Company, a Subsidiary or
an Affiliate of any thereof) holds, on a Redemption Date, or on the Business Day
following the Purchase Date or the Change in Control Purchase Date, or at
Maturity, money sufficient to pay Securities payable on that date, then on and
after that date such Securities shall be deemed to be no longer outstanding and
interest (including Contingent Cash Interest, if any) and the principal amount
shall cease to accrue or accrete, as the case may be, on such date.

                  In a Security is converted in accordance with Article 11, then
from and after the time of conversion on the Conversion Date, such Security
shall cease to be outstanding and interest (including Contingent Cash Interest,
if any) and the principal amount shall cease to accrue or accrete, as the case
may be, on such date.

                  Section 2.09. Treasury Securities. In determining whether the
Holders of the required Original Principal Amount of Securities have concurred
in any direction, waiver or consent, Securities owned by the Company, the
Guarantor, or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or the Guarantor,
shall be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction,

                                       19

<PAGE>

waiver or consent, only Securities that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.

                  Section 2.10. Temporary Securities. Until certificates
representing Securities are ready for delivery, the Company and the Guarantor
may prepare and the Trustee, upon receipt of an Authentication Order, shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of certificated Securities but may have variations that the Company
considers appropriate for temporary Securities and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company and the
Guarantor shall prepare and the Trustee shall authenticate definitive Securities
in exchange for temporary Securities.

                  Holders of temporary Securities shall be entitled to all of
the benefits of this Indenture.

                  Section 2.11. Cancellation. The Company at any time may
deliver Securities to the Trustee for cancellation. The Registrar, Paying Agent
and Conversion Agent shall forward to the Trustee any Securities surrendered to
them for registration of transfer, exchange or payment or conversion. The
Trustee and no one else shall cancel all Securities surrendered for registration
of transfer, exchange, payment, conversion, replacement or cancellation and
shall dispose of such canceled Securities in its customary manner. Subject to
Section 2.07, the Company may not issue new Securities to replace Securities
that it has paid or that have been converted or delivered to the Trustee for
cancellation.

                  Section 2.12. Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, it shall pay the defaulted interest in
any lawful manner plus, to the extent lawful, interest payable on the defaulted
interest, to the Persons who are Holders on a subsequent special record date, in
each case at the rate provided in the Securities and in Section 4.01 hereof. The
Company shall notify the Trustee in writing of the amount of defaulted interest
proposed to be paid on each Security and the date of the proposed payment. The
Company shall fix or cause to be fixed each such special record date and payment
date, provided that no such special record date shall be less than 10 days prior
to the related payment date for such defaulted interest. At least 15 days before
the special record date, the Company (or, upon the written request of the
Company, the Trustee in the name and at the expense of the Company) shall mail
or cause to be mailed to Holders a notice that states the special record date,
the related payment date and the amount of such interest to be paid.

                  Section 2.13. CUSIP Numbers. The Company in issuing the
Securities may use "CUSIP" numbers (if then generally in use), and, if so, the
Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to
Holders; provided that any such notice may state that no representation is made
as to the correctness of such numbers either as printed on the Securities or as
contained in any notice of 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 shall promptly notify the Trustee of any change in the "CUSIP"
numbers.

                  Section 2.14. Calculations. The calculation of the Purchase
Price, Change in Control Purchase Price, Conversion Rate, Sale Price of the
Common Stock and each other

                                       20

<PAGE>

calculation to be made hereunder shall be the obligation of the Company. All
calculations made by the Company as contemplated pursuant to this Section 2.14
or otherwise pursuant to the Securities shall be final and binding on the
Company, the Guarantor and the Holders absent manifest error. The Trustee,
Paying Agent and Conversion Agent shall not be obligated to recalculate,
recompute or confirm any such calculations.

                  Section 2.15. Liquidated Damages. Liquidated damages, if any,
shall be payable with respect to the Securities in accordance with the
provisions and in the amounts set forth in the Registration Rights Agreement.

                                   ARTICLE 3

                                   REDEMPTION

                  Section 3.01. Method and Effect of Redemption. (a) If the
Company elects to redeem the Securities pursuant to the optional redemption
provisions thereof, it must notify the Trustee of the Redemption Date, the
Redemption Price specified in paragraph 6 of the Securities and the Original
Principal Amount of the Securities to be redeemed by delivering written notice
at least 30 days before the Redemption Date (unless a shorter notice shall be
satisfactory to the Trustee). Any such notice may be cancelled at any time prior
to notice of such redemption being mailed to any Holder and shall thereby be
void and of no effect. If fewer than all of the Securities are being 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 not
previously called for redemption, by such method as may be specified by the
terms of such Securities or, if no such method is so specified, by lot, pro rata
or by any other method as the Trustee shall deem fair and appropriate. The
Trustee shall notify the Company promptly in writing of the Securities or
portions of Securities to be called for redemption and, in the case of any
Securities selected for partial redemption, the Original Principal Amount
thereof to be redeemed. Except as otherwise provided as to the Securities, the
Securities and portions thereof that the Trustee selects shall be in amounts
equal to the minimum authorized denomination of Original Principal Amount for
the Securities to be redeemed or any integral multiple thereof, except that if
all of the Securities are to be redeemed, the entire outstanding amount of the
Securities held by such Holder, even if not equal to the minimum authorized
denomination for the Securities, shall be redeemed. Provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption.

                  If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed may be
treated by the Trustee as outstanding for the purpose of such selection.

                  (b)      Notice of redemption must be mailed by first-class
mail by the Company or at the Company' request, by the Trustee in the name and
at the expense of the Company, to Holders at the address set forth in the most
recent noteholder list described in Section 2.05 hereof whose Securities are to
be redeemed at least 30 days but not more than 60 days before the

                                       21

<PAGE>

Redemption Date. The notice of redemption will identify the Securities to be
redeemed and will include or state the following:

                  (1)      the Redemption Date;

                  (2)      the Redemption Price fixed in accordance with the
         terms of the Securities to be redeemed, and the accrued interest,
         including Contingent Cash Interest, if any, payable on the Redemption
         Date;

                  (3)      the Conversion Rate;

                  (4)      the name and address of the Paying Agent and
         Conversion Agent;

                  (5)      that Securities called for redemption may be
         converted at any time before the close of business on the second
         Business Day immediately preceding the Redemption Date, even if not
         otherwise convertible at such time;

                  (6)      that Holders who want to convert Securities must
         satisfy the requirements set forth in paragraph 9 of the Securities;

                  (7)      that Securities called for redemption must be so
         surrendered to the Paying Agent in order to collect the Redemption
         Price and accrued and unpaid interest, if any, including Contingent
         Cash Interest, if any;

                  (8)      that on the Redemption Date, the Redemption Price
         will become due and payable on Securities called for redemption, and,
         unless the Company defaults in payment of the Redemption Price,
         interest on Securities called for redemption, including Contingent Cash
         Interest, if any, will cease to accrue and the principal amount will
         cease to accrete on and after the Redemption Date;

                  (9)      if less than all the outstanding Securities are to be
         redeemed, the identification (and, in the case of partial redemption,
         the Original Principal Amounts) of the particular Securities to be
         redeemed;

                  (10)     if any Security contains a CUSIP number, no
         representation is being made as to the correctness of the CUSIP number
         either as printed on the Securities or as contained in the notice of
         redemption and that the Holder should rely only on the other
         identification numbers printed on the Securities; and

                  (11)     any other information the Company desires, in its own
         discretion, to present.

                  (c)      Once notice of redemption is sent to the Holders,
Securities called for redemption become due and payable at the Redemption Price
(together with accrued and unpaid cash interest, if any, including Contingent
Cash Interest, if any) on the Redemption Date, and upon surrender of the
Securities called for redemption, the Company shall redeem such Securities at
the Redemption Price, except for Securities that are converted in accordance
with the terms of this Indenture. Commencing on the Redemption Date, Securities
redeemed will

                                       22

<PAGE>

cease to accrue interest and the principal amount of such Securities shall cease
to accrete. Upon surrender of any Security redeemed in part, the Holder will
receive a new Security equal in Original Principal Amount to the unredeemed
portion of the surrendered Security.

                  Section 3.02. Exclusion of Certain Securities From Eligibility
for Selection for Redemption. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration and certificate
number in an Officers' Certificate delivered to the Trustee at least 40 days
prior to the last date on which notice of redemption may be given as being owned
of record and beneficially by, and not pledged or hypothecated by either (a) the
Company or the Guarantor or (b) an entity specifically identified in such
written statement as directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company or the Guarantor.

                  Section 3.03. Deposit of Redemption Price. Prior to 11:00 a.m.
on any Redemption Date, the Company shall deposit with the Trustee or with a
Paying Agent (or, if the Company is acting as its own Paying Agent, segregate
and hold in trust as provided in Section 4.02) an amount of money sufficient to
pay the Redemption Price of, and (except if the Redemption Date shall be an
Interest Payment Date, unless otherwise specified in or pursuant to the Board
Resolutions) any accrued interest, including Contingent Cash Interest, if any,
on all the Securities or portions thereof which are to be redeemed on that date,
other than Securities or portions of Securities called for redemption which on
or prior thereto have been delivered by the Company to the Trustee for
cancellation or have been converted. The Paying Agent shall as promptly as
practicable return to the Company any money not required for that purpose
because of conversion of Securities pursuant to Article 11 hereof. If such money
is then held by the Company in trust and is not required for such purpose it
shall be discharged from such trust.

                  Section 3.04. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company and the Guarantor shall issue
and, upon the Company's written request, the Trustee shall authenticate for the
Holder at the expense of the Company a new Security equal in Original Principal
Amount to the Original Principal Amount of the unredeemed portion of the
Security surrendered.

                  Section 3.05. Conversion Arrangement on Call for Redemption.
In connection with any redemption of Securities, the Company may arrange for the
purchase and conversion of any Securities called for redemption by an agreement
with one or more investment banks or other purchasers to purchase such
Securities by paying to the Trustee in trust for the Holders of Securities, on
or prior to 10:00 a.m. New York City time on the Redemption Date, an amount
that, together with any amounts deposited with the Trustee by the Company for
the redemption of such Securities, is not less than the Redemption Price of, and
any accrued and unpaid interest (either cash interest or Contingent Cash
Interest) with respect to, such Securities. Notwithstanding anything to the
contrary contained in this Article 3, the obligation of the Company to pay the
Redemption Prices of such Securities shall be deemed to be satisfied and
discharged to the extent such amount is so paid by such purchasers. If such an
agreement is entered into, any Securities not duly surrendered for conversion by
the Holders thereof may, at the option of the Company, be deemed, to the fullest
extent permitted by law, acquired by such purchasers from such Holders and
(notwithstanding anything to the contrary contained in Article 11) surrendered
by such purchasers for conversion, all as of immediately prior to the close of

                                       23

<PAGE>

business on the second Business Day prior to the Redemption Date, subject to
payment of the above amount as aforesaid. The Trustee shall hold and pay to the
Holders whose Securities are selected for redemption any such amount paid to it
for purchase and conversion in the same manner as it would moneys deposited with
it by the Company for the redemption of Securities. Without the Trustee's prior
written consent, no arrangement between the Company and such purchasers for the
purchase and conversion of any Securities shall increase or otherwise affect any
of the powers, duties, responsibilities or obligations of the Trustee as set
forth in this Indenture, and the Company agrees to indemnify the Trustee from,
and hold it harmless against, any loss, liability or expense arising out of or
in connection with any such arrangement for the purchase and conversion of any
Securities between the Company and such purchasers, including the costs and
expenses incurred by the Trustee in the defense of any claim or liability
arising out of or in connection with the exercise or performance of any of its
powers, duties, responsibilities or obligations under this Indenture.

                  Section 3.06. Purchase of Securities at Option of the Holder
for Cash. (a) Securities shall be purchased by the Company pursuant to the terms
of the Securities at the option of the Holder thereof on the purchase dates of
February 20, 2011, February 15, 2014 and February 15, 2019 (each a "Purchase
Date"), for cash at the purchase price of $1,000.28 per $1,000 Original
Principal Amount of Securities on February 20, 2011, $1,061.52 per $1,000
Original Principal Amount of Securities on February 15, 2014 and $1,172.58 per
$1,000 Original Principal Amount of Securities on February 15, 2019, plus in
each case accrued and unpaid cash interest, including Contingent Cash Interest,
if any, to the Purchase Date, upon:

                           (i) delivery to the Paying Agent, by the Holder, of a
                  written notice of purchase (a "Purchase Notice") at any time
                  from the opening of business on the date that is 20 Business
                  Days prior to a Purchase Date until the close of business on
                  the Business Day immediately preceding such Purchase Date
                  stating:

                           (A) the certificate number of the Security which the
                           Holder will deliver to the purchased (if it is a
                           Definitive Security),

                           (B) the portion of the Original Principal Amount of
                           the Security which the Holder will deliver to be
                           purchased, which portion must be an Original
                           Principal Amount of $1,000 or an integral multiple
                           thereof, and

                           (C) that such Security shall be purchased as of the
                           Purchase Date pursuant to the terms and conditions
                           specified in the Securities and in this Indenture;

                           and

                           (ii) delivery of such Security to the Paying Agent
                  prior to, on or after the Purchase Date (together with all
                  necessary endorsements) at the offices of the Paying Agent,
                  such delivery being a condition to receipt by the Holder of
                  the Purchase Price therefor; provided, however, that such
                  Purchase Price shall be so paid pursuant to this Section 3.06
                  only if the Security so delivered to the Paying

                                       24

<PAGE>

                  Agent shall conform in all respects to the description thereof
                  in the related Purchase Notice, as determined by the Company.

                  The Company shall purchase from the Holder thereof, pursuant
to this Section 3.06, a portion of a Security if the Original Principal Amount
of such portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

                  Any purchase by the Company contemplated pursuant to the
provisions of this Section 3.06 shall be consummated by the delivery of the
consideration to be received by the Holder (together with accrued and unpaid
cash interest, including Contingent Cash Interest, if any) promptly following
the later of the Purchase Date and the time of delivery of the Security.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent the Purchase Notice contemplated by this Section
3.06(a) shall have the right to withdraw such Purchase Notice at any time prior
to the close of business on the Business Day prior to the Purchase Date by
delivery of a written notice of withdrawal to the Paying Agent in accordance
with Section 3.08 hereof.

                  The Paying Agent shall promptly notify the Company of the
receipt by it of any Purchase Notice or written notice of withdrawal thereof.

                  (b) The Purchase Price of Securities in respect of which a
Purchase Notice pursuant to Section 3.06(a) hereof has been given may only be
paid by the Company with cash equal to the aggregate Purchase Price of such
Securities.

                  (c) The Company shall send a notice (the "Company Notice") to
the Trustee and the Holders (and to beneficial owners as required by applicable
law) not more than 60 Business Days and not less than 20 Business Days prior to
each Purchase Date. Each Company Notice shall include a form of Purchase Notice
to be completed by a Holder of Securities and shall state:

                           (i) the Purchase Price, the Conversion Rate and
                  accrued and unpaid cash interest, if any, including Contingent
                  Cash Interest, if any, that will be accrued and payable with
                  respect to the Securities as of the Purchase Date;

                           (ii) the name and address of the Paying Agent and the
                  Conversion Agent;

                           (iii) that Securities as to which a Purchase Notice
                  has been given may be converted pursuant to Article 11 hereof
                  only if the applicable Purchase Notice has been withdrawn in
                  accordance with the terms of this Indenture;

                           (iv) that Securities must be surrendered to the
                  Paying Agent to collect payment of the Purchase Price and
                  accrued and unpaid cash interest (or accrued and unpaid
                  Contingent Cash Interest), if any;

                           (v) that the Purchase Price for any Security as to
                  which a Purchase Notice has been given and not withdrawn,
                  together with any cash interest payable or any Contingent Cash
                  Interest payable with respect thereto, will be paid promptly

                                       25

<PAGE>

                  following the later of the Purchase Date and the time of
                  surrender of such Security as described in clause (iv);

                           (vi) the procedures the Holder must follow to
                  exercise rights under this Section 3.06 and a brief
                  description of those rights;

                           (vii) briefly, the conversion rights of the
                  Securities and that Holders who want to convert Securities
                  must satisfy the requirements set forth in paragraph 9 of the
                  Securities;

                           (viii) the procedures for withdrawing a Purchase
                  Notice;

                           (ix) that, unless the Company defaults in making
                  payment of such Purchase Price and cash interest, including
                  Contingent Cash Interest, if any, on Securities surrendered
                  for purchase, cash interest will cease to accrue and the
                  principal amount will cease to accrete on such Securities on
                  and after the Purchase Date; and

                           (x) the CUSIP number of the Securities.

                  At the Company's written request, the Trustee shall give the
Company Notice in the Company's name and at the Company's expense; provided,
however, that, in all cases, the text of such Company Notice shall be prepared
by the Company and the Trustee shall have no liability whatsoever with respect
to the contents of such notice.

                  (d) The Company shall deposit cash at the time and in the
manner as provided in Section 3.09 hereof, sufficient to pay the aggregate
Purchase Price of, and any accrued and unpaid cash interest, including any
Contingent Cash Interest, if any, with respect to all Securities to be purchased
pursuant to this Section 3.06.

                  Section 3.07. Purchase of Securities at Option of the Holder
upon Change in Control. (a) If there shall have occurred a Change in Control,
Securities shall be purchased by the Company, at the option of the Holder
thereof, at a purchase price specified in the Securities (the "Change in Control
Purchase Price"), as of the date that is no later than 30 Business Days after
the occurrence of the Change in Control but in no event prior to the date on
which such Change in Control occurs (the "Change in Control Purchase Date").

                  A "Change in Control" shall be deemed to have occurred at such
time as either of the following events shall occur:

                           (i) any "person" including its Affiliates or
                  Associates (for the purpose of this Section 3.07 only, as the
                  term "person" is used in Section 13(d)(3) or Section 14(d)(2)
                  of the Exchange Act) other than the Company, its Subsidiaries
                  or their employee benefit plans, becomes the beneficial owner
                  (as the term "beneficial owner" is defined under Rule 13d-3 or
                  any successor rule or regulation promulgated under the
                  Exchange Act) of more than 50% of the aggregate voting power
                  of the Company' Capital Stock entitled under ordinary
                  circumstances to elect at least a majority of its directors;
                  or

                                       26

<PAGE>

                           (ii) the Company is consolidated with, or merged
         into, another Person or such other Person is merged into the Company
         (other than a transaction pursuant to which the holders of 50% or more
         of the total voting power of all shares of the Company' Capital Stock
         entitled to vote generally in the election of directors immediately
         prior to such transaction have, directly or indirectly, at least 50% or
         more of the total voting power of all capital stock of the continuing
         or surviving corporation entitled to vote generally in the election of
         directors of such continuing or surviving corporation immediately after
         such transaction).

                  Notwithstanding the foregoing provisions of this Section 3.07,
no Change of Control will be deemed to have occurred in connection with any
merger or similar transaction the purpose of which is to change the state of
incorporation of the relevant Person.

                  "Associate" shall have the meaning ascribed to such term in
Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in
effect on the date hereof.

                  (b) Within 15 days after the occurrence of a Change in Control
or at the Company's option prior to such Change in Control but after it is
publicly announced, the Company shall mail a written notice of Change in Control
by first-class mail to the Trustee and to each Holder (and to beneficial owners
as required by applicable law). The notice shall include a form of Change in
Control Purchase Notice to be completed by the Holder and shall state:

                           (i) briefly, the events causing a Change in Control
                  and the date or expected date of such Change in Control, and
                  that the purchase of the Securities by the Company may be
                  conditioned on the occurrence of a Change in Control;

                           (ii) the date by which the Change in Control Purchase
                  Notice pursuant to this Section 3.07 must be given;

                           (iii) the Change in Control Purchase Price and any
                  accrued and unpaid cash interest payable with respect to the
                  Securities as of the Change in Control Purchase Date;

                           (iv) the Change in Control Purchase Date;

                           (v) the name and address of the Paying Agent and the
                  Conversion Agent;

                           (vi) the Conversion Rate and any adjustments thereto
                  resulting from the Change in Control;

                           (vii) that Securities as to which a Change in Control
                  Purchase Notice has been given may be converted pursuant to
                  Article 11 hereof only if the Change in Control Purchase
                  Notice has been withdrawn in accordance with the terms of this
                  Indenture;

                                       27

<PAGE>

                           (viii) that Securities must be surrendered to the
                  Paying Agent to collect payment of the Change in Control
                  Purchase Price and accrued and unpaid cash interest, including
                  Contingent Cash Interest, if any;

                           (ix) that the Change in Control Purchase Price for
                  any Security as to which a Change in Control Purchase Notice
                  has been duly given and not withdrawn, together with any
                  accrued and unpaid cash interest payable, including any
                  Contingent Cash Interest, if any, with respect thereto, will
                  be paid promptly following the later of the Change in Control
                  Purchase Date and the time of surrender of such Security as
                  described in Section 3.07(b)(viii) hereof;

                           (x) briefly, the procedures the Holder must follow to
                  exercise rights under this Section 3.07;

                           (xi) briefly, the conversion rights of the
                  Securities;

                           (xii) the procedures for withdrawing a Change in
                  Control Purchase Notice;

                           (xiii) that, unless the Company defaults in making
                  payment of such Change in Control Purchase Price and cash
                  interest, if any on Securities surrendered for purchase, any
                  cash interest on Securities surrendered for purchase will
                  cease to accrue and the principal amount will cease to accrete
                  on such Securities on and after the Change in Control Purchase
                  Date; and

                           (xiv) the CUSIP number of the Securities.

                  (c) A Holder may exercise its rights specified in Section
3.07(a) hereof upon delivery of a written notice of purchase (a "Change in
Control Purchase Notice") to the Paying Agent at any time prior to the close of
business on the Business Day prior to the Change in Control Purchase Date,
stating:

                           (i) the certificate number or numbers of the Security
                  or Securities which the Holder will deliver to be purchased
                  (if it is a Definitive Security);

                           (ii) the portion of the Original Principal Amount of
                  the Security which the Holder will deliver to be purchased,
                  which portion must be $1,000 or an integral multiple thereof;
                  and

                           (iii) that such Security shall be purchased pursuant
                  to the terms and conditions specified in the Securities.

                  The delivery of such Security to the Paying Agent at any time
after the delivery of the Change in Control Purchase Notice (together with all
necessary endorsements) at the offices of the Paying Agent shall be a condition
to the receipt by the Holder of the Change in Control Purchase Price therefor;
provided, however, that such Change in Control Purchase Price shall be so paid
pursuant to this Section 3.07 only if the Security so delivered to the Paying
Agent shall

                                       28

<PAGE>

conform in all respects to the description thereof set forth in the related
Change in Control Purchase Notice.

                  The Company shall purchase from the Holder thereof, pursuant
to this Section 3.07, a portion of a Security if the Original Principal Amount
of such portion is $1,000 or an integral multiple of $1,000. Provisions of this
Indenture that apply to the purchase of all of a Security also apply to the
purchase of such portion of such Security.

                  Any purchase by the Company contemplated pursuant to the
provisions of this Section 3.07 shall be consummated by the delivery of the
consideration to be received by the Holder together with accrued and unpaid cash
interest, if any, including Contingent Cash Interest, if any, promptly following
the later of the Change in Control Purchase Date and the time of delivery of the
Security to the Paying Agent in accordance with this Section 3.07.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent the Change in Control Purchase Notice
contemplated by this Section 3.07(c) shall have the right to withdraw such
Change in Control Purchase Notice at any time prior to the close of business on
the Business Day prior to the Change in Control Purchase Date by delivery of a
written notice of withdrawal to the Paying Agent in accordance with Section 3.09
hereof.

                  The Paying Agent shall promptly notify the Company of the
receipt by it of any Change in Control Purchase Notice or written withdrawal
thereof.

                  The Company shall not be required to comply with this Section
3.07 if a third party mails a written notice of Change in Control in the manner,
at the times and otherwise in compliance with this Section 3.07 and repurchases
all Securities for which a Change in Control Purchase Notice shall be delivered
and not withdrawn in accordance with this Section 3.07 and the Securities.

                  Section 3.08. Effect of Purchase Notice or Change in Control
Purchase Notice. Upon receipt by the Paying Agent of the Purchase Notice or
Change in Control Purchase Notice specified in Section 3.06(a) or Section
3.07(c) hereof, as applicable, the Holder of the Security in respect of which
such Purchase Notice or Change in Control Purchase Notice, as the case may be,
was given shall (unless such Purchase Notice or Change in Control Purchase
Notice is withdrawn as specified in the following two paragraphs) thereafter be
entitled to receive solely the Purchase Price or Change in Control Purchase
Price, as the case may be, and any accrued and unpaid cash interest, including
any Contingent Cash Interest, with respect to such Security. Such Purchase Price
or Change in Control Purchase Price (which price reflects the Issue Price plus
any increase in the Accreted Principal Amount) and accrued and unpaid cash
interest, including Contingent Cash Interest, if any, shall be paid to such
Holder, subject to receipt of funds and/or Securities by the Paying Agent,
promptly following the later of (x) the Purchase Date or the Change in Control
Purchase Date, as the case may be, with respect to such Security (provided that
the conditions in Section 3.06(a) or Section 3.07(c) hereof, as applicable, have
been satisfied) and (y) the time of delivery of such Security to the Paying
Agent by the Holder thereof in the manner required by Section 3.06(a) or Section
3.07(c) hereof, as applicable. Securities in respect of which a Purchase Notice
or Change in Control Purchase Notice, as the case may be, has been given by the
Holder thereof may not be converted pursuant to Article 11 hereof on or

                                       29

<PAGE>

after the date of the delivery of such Purchase Notice or Change in Control
Purchase Notice, as the case may be, unless such Purchase Notice or Change in
Control Purchase Notice, as the case may be, has first been validly withdrawn as
specified in the following two paragraphs.

                  A Purchase Notice or Change in Control Purchase Notice, as the
case may be, may be withdrawn by means of a written notice of withdrawal
delivered to the office of the Paying Agent in accordance with the Purchase
Notice or Change in Control Purchase Notice, as the case may be, at any time
prior to the close of business on the Business Day prior to the Purchase Date or
the Change in Control Purchase Date, as the case may be, specifying:

                           (i) the Original Principal Amount being withdrawn;

                           (ii) the certificate number or numbers of the
                  Security or Securities which are to be withdrawn (if it is a
                  Definitive Security); and

                           (iii) the Original Principal Amount, if any, of the
                  Securities that remain subject to the original Purchase Notice
                  or Change in Control Purchase Notice, as the case may be, and
                  which has been or will be delivered for purchase by the
                  Company.

                  There shall be no purchase of any Securities pursuant to
Section 3.06 or 3.07 hereof if there has occurred (prior to, on or after, as the
case may be, the giving, by the Holders of such Securities, of the required
Purchase Notice or Change in Control Purchase Notice, as the case may be) and is
continuing an Event of Default (other than a default in the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be, and any
accrued and unpaid cash interest or Contingent Cash Interest, if any, with
respect to such Securities). The Paying Agent will promptly return to the
respective Holders thereof any Securities (x) with respect to which a Purchase
Notice or Change in Control Purchase Notice, as the case may be, has been
withdrawn in compliance with this Indenture, or (y) held by it during the
continuance of an Event of Default (other than a default in the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be, and any
accrued and unpaid cash interest or Contingent Cash Interest, if any, with
respect to such Securities) in which case, upon such return, the Purchase Notice
or Change in Control Purchase Notice with respect thereto shall be deemed to
have been withdrawn.

                  Section 3.09. Deposit of Purchase Price or Change in Control
Purchase Price. Prior to 10:00 a.m., New York City time, on the Business Day
following the Purchase Date or the Change in Control Purchase Date, as the case
may be, the Company shall deposit with the Trustee or with the Paying Agent (or,
if the Company or a Subsidiary or an Affiliate of either of them is acting as
the Paying Agent, shall segregate and hold in trust) an amount of money (in
immediately available funds if deposited on such Business Day) sufficient to pay
the aggregate Purchase Price or Change in Control Purchase Price, as the case
may be, of, and any accrued and unpaid cash interest including Contingent Cash
Interest, if any, with respect to all the Securities or portions thereof which
are to be purchased as of the Purchase Date or Change in Control Purchase Date,
as the case may be.

                                       30

<PAGE>

                  Section 3.10. Securities Purchased in Part. Any Security which
is to be purchased only in part shall be surrendered at the office of the Paying
Agent (with, if the Company or the Trustee so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or such Holder's attorney duly
authorized in writing) and the Company and the Guarantor shall execute and the
Trustee shall authenticate and deliver to the Holder of such Security, without
service charge, a new Security or Securities, of any authorized denomination as
requested in writing by such Holder in aggregate Original Principal Amount equal
to, and in exchange for, the portion of the Original Principal Amount of the
Security so surrendered which is not purchased.

                  Section 3.11. Repayment to the Company. The Trustee and the
Paying Agent shall promptly return to the Company any cash that remains
unclaimed as provided in Section 10.02, together with interest thereon (subject
to the provisions of Section 7.01 hereof), held by them for the payment of the
Purchase Price or Change in Control Purchase Price, as the case may be, or cash
interest, if any, including Contingent Cash Interest, if any; provided, however,
that to the extent that the aggregate amount of cash deposited by the Company
pursuant to Section 3.09 hereof exceeds the aggregate Purchase Price or Change
in Control Purchase Price, as the case may be, of, and the accrued and unpaid
cash interest, if any, including Contingent Cash Interest, if any, with respect
to, the Securities or portions thereof which the Company is obligated to
purchase as of the Purchase Date or Change in Control Purchase Date, as the case
may be, whether as a result of withdrawal or otherwise, then promptly after the
second Business Day following the Purchase Date or Change in Control Purchase
Date, as the case may be, the Trustee shall return any such excess to the
Company together with interest thereon (subject to the provisions of Section
7.01 hereof).

                                    ARTICLE 4

                                    COVENANTS

                  Section 4.01. Payment of Securities. The Company shall
promptly make all payments in respect of the Securities on the dates and in the
manner provided in the Securities or pursuant to this Indenture. Any amounts to
be given to the Trustee or Paying Agent, shall be deposited with the Trustee or
Paying Agent by 11:00 a.m., New York City time, by the Company. Original
Principal Amount, Issue Price plus any increases in the Accreted Principal
Amount, Redemption Price, Purchase Price, Change in Control Purchase Price, cash
interest and Contingent Cash Interest, if any, shall be considered paid on the
applicable date due if on such date (or, in the case of a Purchase Price or
Change in Control Purchase Price, on the Business Day following the applicable
Purchase Date or Change in Control Purchase Date, as the case may be) the
Trustee or the Paying Agent holds, in accordance with this Indenture, money or
securities, if permitted hereunder, sufficient to pay all such amounts then due.

                  Section 4.02. Maintenance of Office or Agency. The Company
will maintain in Borough of Manhattan, The City of New York, an office or agency
where the Securities may be presented or surrendered for payment, where the
Securities may be surrendered for registration of transfer, exchange,
redemption, purchase or conversion and where notices and demands to or

                                       31

<PAGE>

upon the Company in respect of the Securities and this Indenture may be served.
The office of the Trustee at 101 Barclay Street, Floor 8W, New York, New York
10286, Attention: Corporate Trust Administration, shall be such office for such
aforesaid purposes. The Company will give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency. If at
any time the Company shall fail to maintain any such required office of agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demand may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.

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

                  Section 4.03. Compliance Certificate. (a) The Company and the
Guarantor will deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company ending after the date hereof, an Officers'
Certificate, one of the signers of which shall be the principal executive
officer, principal financial officer or principal accounting officer of the
Company or the Guarantor, as the case may be, stating whether or not to the best
knowledge of the signers thereof the Company or the Guarantor, as the case may
be, 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 or the
Guarantor shall be in default, specifying all such defaults and the nature and
status thereof of which they may have knowledge.

                  (b) The Company and the Guarantor shall, so long as any of the
Securities are outstanding, deliver to the Trustee, forthwith, but in no event
later than 30 Business Days, upon any Officer becoming aware of any event which
after notice or lapse of time would become a Default or Event of Default under
clauses (4) or (5) of Section 6.01, a notice specifying such Default or Event of
Default and what action the Company or the Guarantor, as the case may be, is
taking or proposes to take with respect thereto.

                  Section 4.04. Existence. Subject to Article 5, the Company and
the Guarantor will do or cause to be done all things necessary to preserve and
keep in full force and effect its respective existence, rights (charter and
statutory) and franchises; provided, however, that the Company and the Guarantor
shall not be required to preserve any such right or franchise if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company or the Guarantor, as the case may
be, and that the loss thereof is not disadvantageous in any material respect to
the Holders.

                  Section 4.05. SEC and Other Reports. The Company shall deliver
to the Trustee, within 15 days after it files such annual and quarterly reports,
information, documents and other reports with the SEC, copies of its annual
report and of the information, documents and

                                       32

<PAGE>

other reports (or copies of such portions of any of the foregoing as the SEC may
by rules and regulations prescribe) which the Company is required to file with
the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also
shall comply with 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).

                  Section 4.06. Further Instruments and Acts. Upon request of
the Trustee, the Company will execute and deliver such further instruments and
do such further acts as may be reasonably necessary or proper to carry out more
effectively the purposes of this Indenture.

                  Section 4.07. Covenant to Comply With Securities Laws Upon
Purchase of Securities. In connection with any offer to purchase or purchase of
Securities under Section 3.06 or 3.07 hereof (provided that such offer or
purchase constitutes an "issuer tender offer" for purposes of Rule 13e-4 (which
term, as used herein, includes any successor provision thereto) under the
Exchange Act at the time of such offer or purchase), the Company and the
Guarantor shall to the extent applicable (a) comply with Rule 13e-4 and Rule
14e-1 under the Exchange Act, (b) file the related Schedule TO (or any successor
schedule, form or report) under the Exchange Act, and (c) otherwise comply with
all federal and state securities laws so as to permit the rights and obligations
under Sections 3.06 and 3.07 hereof to be exercised in the time and in the
manner specified in Sections 3.06 and 3.07 hereof.

                  Section 4.08. Delivery of Certain Information. At any time
when the Company is not subject to Section 13 or 15(d) of the Exchange Act, upon
the request of a Holder or any beneficial holder of Securities or shares of
Common Stock which are restricted securities issued upon conversion thereof, the
Company will promptly furnish or cause to be furnished Rule 144A Information (as
defined below) to such Holder or any beneficial holder of Securities or holder
of shares of Common Stock issued upon conversion of Securities, or to a
prospective purchaser of any such security designated by any such holder, as the
case may be, to the extent required to permit compliance by such Holder or
holder with Rule 144A under the Securities Act in connection with the resale of
any such security. "Rule 144A Information" shall be such information as is
specified pursuant to Rule 144A(d)(4) under the Securities Act.

                  Section 4.09. Tax Treatment of Securities. The Company agrees,
and by acceptance of a Security, each holder hereof is deemed to have agreed,
with respect to each of the matters set forth below, as follows:

         (a)      Tax Treatment:

                  (i)      to treat the Securities as indebtedness of the
         Company for all tax purposes;

                  (ii)     to treat the Securities as indebtedness that are
         subject to the special regulations governing contingent payment debt
         instruments that are contained in U.S. Treasury Regulation section
         1.1275-4; and

                                       33

<PAGE>

                  (iii)    to treat any payment to and receipt by a Holder of
         Common Stock upon conversion of a Security as a contingent payment
         under U.S. Treasury Regulation section 1.1275-4(b) that will result in
         an adjustment under U.S. Treasury Regulation section 1.1275-4(b)(3)(iv)
         and U.S. Treasury Regulation section 1.1275-4(b)(6).

         (b)      Comparable Yield and Projected Payment Schedule. Solely for
purposes of applying U.S. Treasury Regulation section 1.1275-4 to the
Securities:

                  (i)      for United States federal income tax purposes, to
         accrue interest with respect to outstanding Securities as original
         issue discount according to the "noncontingent bond method," as set
         forth in U.S. Treasury Regulation section 1.1275-4(b);

                  (ii)     the comparable yield, as defined in U.S. Treasury
         Regulation section 1.1275-4(b)(4)(i), for the Securities is 4.58%,
         compounded semi-annually;

                  (iii)    the projected payment schedule, as defined in U.S.
         Treasury Regulation section 1.1275-4(b)(4)(ii) is the schedule found at
         Annex A of this Indenture; and

                  (iv)     the Company acknowledges and agrees, and each Holder
         and any beneficial owner of a Security, by its purchase of a Security
         shall be deemed to acknowledge and agree, that (A) the projected
         payment schedule is determined on the basis of an assumption of linear
         growth of stock price and a constant dividend yield, (B) the comparable
         yield and the projected payment schedule are not determined for any
         other purpose other than for the purposes of applying U.S. Treasury
         Regulation section 1.1275-4(b) to the Securities and (C) the comparable
         yield and the projected payment schedule do not constitute a projection
         or representation regarding the actual amounts payable on the
         Securities.

                  Section 4.10. Calculation of Certain Amounts. 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) 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.

                                    ARTICLE 5

                    CONSOLIDATION, MERGER, SALE OR CONVEYANCE

                  Section 5.01. Consolidations and Mergers of Company Permitted
Subject to Certain Conditions. The Company or the Guarantor shall not
consolidate with or merge into any other Person or convey, transfer or lease its
respective properties and assets substantially as an entirety to any Person,
unless:

                                       34

<PAGE>

                  (a)      the corporation formed by such consolidation or into
         which the Company or the Guarantor, as the case may be, is merged or
         the Person which acquires by conveyance or transfer, or which leases,
         the properties and assets of the Company or the Guarantor, as the case
         may be, substantially as an entirety shall be a corporation organized
         and existing under the laws of the United States, any state thereof or
         the District of Columbia and such corporation (if other than the
         Company or the Guarantor, as the case may be) expressly assumes by an
         indenture supplemental hereto, executed and delivered to the Trustee,
         in form reasonably satisfactory to the Trustee, all of the obligations
         of the Company or the Guarantor, as the case may be, under the
         Securities and this Indenture;

                  (b)      immediately after giving effect to such transaction,
         no Event of Default, and no event which, after notice or lapse of time
         or both, would become an Event of Default, shall have occurred and be
         continuing; and

                  (c)      the Company or the Guarantor, as the case may be, has
         delivered to the Trustee an Officers' Certificate and an Opinion of
         Counsel, each stating that such consolidation, merger, conveyance,
         transfer or lease and, if a supplemental indenture is required in
         connection with such transaction, such supplemental indenture, comply
         with this Article and that all conditions precedent herein provided for
         relating to such transaction have been complied with.

                  In the case of any such consolidation, merger, conveyance,
transfer or lease, the successor entity will succeed to and be substituted for
the Company or the Guarantor, as the case may be, as obligor on, or successor
of, the Notes or the Guarantee, as the case may be, with the same effect as if
it had been named therein as the Company or Guarantor; and thereafter the
Company or the Guarantor, as the case may be, shall be discharged from all
obligations under this Indenture and the Notes or the Guarantee, as the case may
be.

                  Section 5.02. Rights and Duties of Successor Corporation. Upon
any consolidation of the Company or the Guarantor with, or merger of the Company
or the Guarantor into, any other Person or any conveyance, transfer or lease of
the properties and assets of the Company or the Guarantor substantially as an
entirety in accordance with Section 5.01, the successor Person formed by such
consolidation or into which the Company or the Guarantor is merged or to which
such conveyance, transfer or lease is made shall succeed to, and be substituted
for, and may exercise every right and power of, the Company or the Guarantor, as
the case may be, under this Indenture with the same effect as if such successor
Person had been named as the Company or the Guarantor, as the case may be,
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

                                    ARTICLE 6

                              DEFAULTS AND REMEDIES

                  Section 6.01. Events of Default. "Event of Default," wherever
used herein with respect to the Securities, shall mean any one of the following
events (whatever the reason for

                                       35

<PAGE>

such Event of Default and whether 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 principal amount
         (including the Accreted Principal Amount) at maturity or any Redemption
         Price, Purchase Price, or Change in Control Purchase Price due with
         respect to the Securities, when the same become due and payable; or

                  (2)      default in payment of any interest (including
         Contingent Cash Interest) under the Securities, which default continues
         for 30 days; or

                  (3)      the Guarantee ceases to be in full force and effect
         or is declared null and void or the Guarantor denies that it has any
         further liability under its guarantee to the Security Holders, or has
         given notice to such effect (other than by reason of the termination of
         this Indenture or the release of such guarantee in accordance with this
         Indenture), and such condition shall have continued for period of 30
         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 Original Principal Amount of the outstanding
         Securities 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

                  (4)      default in the performance, or breach, of any
         covenant or warranty of the Company or the Guarantor in this Indenture
         (other than a covenant or warranty a default in whose performance or
         whose breach is elsewhere in this Section specifically dealt with), and
         continuance of such default or breach for a period of 30 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 Original Principal Amount of the outstanding Securities a
         written notice specifying such default or breach and requiring it to be
         remedied and stating that such notice is a "Notice of Default"
         hereunder, or

                  (5)      default in the payment of principal when due or
         resulting in acceleration of other Indebtedness of the Company, the
         Guarantor or any Significant Subsidiary for borrowed money where the
         aggregate principal amount with respect to which the default or
         acceleration has occurred exceeds $50 million and such acceleration has
         not been rescinded or annulled or such Indebtedness repaid within a
         period of 30 days after written notice to the Company by the Trustee or
         to the Company and the Trustee by the Holders of at least 25% in
         Original Principal Amount at maturity of the Securities then
         outstanding; provided that if any such default is cured, waived,
         rescinded or annulled, then the Event of Default by reason thereof
         would be deemed not to have occurred; or

                  (6)      the entry by a court having jurisdiction in the
         premises of (A) a decree or order for relief in respect of the Company
         or the Guarantor in an involuntary case or proceeding under Bankruptcy
         Law or (B) a decree or order adjudging the Company or the Guarantor a
         bankrupt or insolvent, or approving as properly filed a petition
         seeking reorganization, arrangement, adjustment or composition of or in
         respect of the Company or the Guarantor under any applicable Federal or
         State law, or appointing a custodian,

                                       36

<PAGE>

         receiver, liquidator, assignee, trustee, sequestrator or other similar
         official of the Company or the Guarantor or of any substantial part of
         its property, or ordering the winding up or liquidation of its affairs,
         and the continuance of any such decree or order for relief or any such
         other decree or order unstayed and in effect for a period of 60
         consecutive days; or

                  (7)      the commencement by the Company or the Guarantor of a
         voluntary case or proceeding under Bankruptcy Law or of any other case
         or proceeding to be adjudicated a bankrupt or insolvent, or the consent
         by it to the entry of a decree or order for relief in respect of the
         Company or the Guarantor is an involuntary case or proceeding under
         Bankruptcy Law or to the commencement of any bankruptcy or insolvency
         case or proceeding against it, or the filing by it of a petition or
         answer or consent seeking reorganization or relief under any applicable
         Federal or State law, or the consent by it to the filing of such
         petition or to the appointment of or taking possession by a custodian,
         receiver, liquidator, assignee, trustee, sequestrator or similar
         official of the Company or the Guarantor or of any substantial part of
         its property, or the making by it of an assignment for the benefit of
         creditors, or the admission by it in writing of its inability to pay
         its debts generally as they become due.

                  Section 6.02. Acceleration of Maturity; Rescission and
Annulment. If an Event of Default occurs and is continuing, then the Trustee or
the Holders of not less than 25% in Original Principal Amount of the Securities
then outstanding may declare the Accreted Principal Amount of all of the
Securities and any accrued and unpaid cash interest and Contingent Cash
Interest, if any, through the date of such declaration, to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such Accreted Principal Amount and
any accrued and unpaid cash interest and Contingent Cash Interest, if any, shall
become immediately due and payable.

                  At any time after such a declaration of acceleration with
respect to the Securities has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Section provided, the Holders of a majority in Original Principal Amount of the
outstanding Securities, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

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

                           (A)      all overdue interest and Contingent Cash
                  Interest, if any, on all Securities,

                           (B)      to the extent that payment of such interest
                  is enforceable under applicable law, interest upon overdue
                  interest to the date of such payment or deposit at the rate or
                  rates prescribed therefor in such Securities or, if no such
                  rate or rates are so prescribed, at the rate borne by the
                  Securities during the period of such default, and

                                       37

<PAGE>

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

                  and

                  (2)      all Events of Default with respect to the Securities,
         other than the non-payment of the Accreted Principal Amount of the
         Securities which have become due solely by such declaration of
         acceleration, have been cured or waived as provided in Section 6.13.

If an Event of Default described in clause (6) or (7) occurs and is continuing,
then the Accreted Principal Amount of all the Securities issued under this
Indenture and then outstanding, together with any accrued and unpaid cash
interest and Contingent Cash Interest, if any, through the occurrence of such
Event of Default, shall become and be due and payable immediately, without any
declaration or other act by the Trustee or any other Holder.

No such waiver or rescission and annulment shall affect any subsequent Default
or impair any right consequent thereon.

                  Section 6.03. Collection of Indebtedness and Suits for
Enforcement by Trustee. The Company covenants that (1) in case default shall be
made in the payment of any installment of cash interest, including Contingent
Cash Interest, if any, on the Securities, as and when the same shall become due
and payable, and such default shall have continued for a period of 90 days, or
(2) in case default shall be made in the payment of the principal, including the
Accreted Principal Amount, on the Securities on their Maturity and such default
shall have continued for a period of five business days then, upon demand of the
Trustee, the Company will pay to the Trustee, for the benefit of the Holders of
such Securities, the whole amount that then shall have become due and payable on
the Securities for principal, including the Accreted Principal Amount, or cash
interest, including Contingent Cash Interest, if any, or both, as the case may
be, with interest upon the overdue principal, including the Accreted Principal
Amount, and (to the extent that payment of such interest is enforceable under
applicable law) upon overdue installments of cash interest, including Contingent
Cash Interest, if any, at the rate borne by the Securities during the period of
such default; and, in addition thereto, such further amount as shall be
sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Trustee except as a result of its negligence or bad faith.

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

                  Section 6.04. Trustee May File Proofs of Claim. In case of the
pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment,

                                       38

<PAGE>

composition or other judicial proceeding relative to the Company or the
Guarantor or any other obligor upon the Securities or the property of the
Company or the Guarantor or of such other obligor or their creditors, the
Trustee, irrespective of whether the principal of the Securities shall then be
due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest, shall be emitted and
empowered, by intervention in such proceeding or otherwise,

                  (i)      to file and prove a claim for the whole amount of
         principal, including the Accreted Principal Amount, if any, and
         interest, including Contingent Cash 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

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07.

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

                  Section 6.05. Trustee May Enforce Claims Without Possession of
Securities. All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.

                  Section 6.06. Application of Money Collected. Any money
collected by the Trustee pursuant to this Article shall be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or interest, including
Contingent Cash Interest, if any, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

                  FIRST: To the payment of all amounts due the Trustee under
Section 7.07;

                                       39

<PAGE>

                  SECOND: To the payment of the amounts then due and unpaid for
         the principal amount, including the Accreted Principal Amount,
         Redemption Price, Purchase Price, Change in Control Purchase Price or
         cash interest, including Contingent Cash Interest, if any, on the
         Securities in respect of which or for the benefit of which such money
         has been collected, ratably, without preference or priority of any
         kind, according to such amounts due and payable on such Securities; and

                  THIRD: To the payment of the remainder, if any, to the
         Company, its successors or assigns or to whosoever may be lawfully
         entitled to receive the same, or as a court of competent jurisdiction
         may direct.

                  Section 6.07. Limitation on Suits. No Holder of any Securities
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 shall have previously given written
         notice to the Trustee of a continuing Event of Default with respect to
         the Securities;

                  (2)      the Holders of not less than 25% in Original
         Principal Amount of the Securities then outstanding shall have made
         written request to the Trustee to institute proceedings in respect of
         such Event of Default in its own name as Trustee hereunder;

                  (3)      such Holder or Holders shall have offered to the
         Trustee reasonable indemnity satisfactory to it 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 shall have failed to institute
         any such proceeding; and

                  (5)      no direction inconsistent with such written request
         shall have been given to the Trustee pursuant to Section 6.12 during
         such 60-day period by the Holders of a majority in Original Principal
         Amount of the Securities then outstanding;

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 and common benefit of
all of such Holders.

                  Section 6.08. Unconditional Right of Holders to Receive
Payments. Notwithstanding any other provision in this Indenture, the Holder of
any Securities shall have the right, which is absolute and unconditional, to
receive payment of the Original Principal Amount, the Accreted Principal Amount,
Redemption Price, Purchase Price, Change in Control Purchase Price and cash
interest, including Contingent Cash Interest, if any, on such Securities on the
respective due dates expressed in the Securities or any Redemption Date, and to
convert the Securities in accordance with Article 11 hereof, and to institute
suit for the enforcement of any such payment, and such rights shall not be
impaired without the consent of such Holder.

                                       40

<PAGE>

                  Section 6.09. Restoration of Rights and Remedies. If the
Trustee or any Holder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such
proceeding, the Company, the Guarantor, the Trustee and the Holders shall be
restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.

                  Section 6.10. Rights and Remedies Cumulative. Except as
otherwise provided with respect to replacement Securities pursuant to Section
2.07, no right or remedy herein conferred upon or reserved to the Trustee or to
the Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

                  Section 6.11. Delay or Omission Not Waiver. No delay or
omission of the Trustee or of any Holder of any Securities to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or
remedy or constitute a waiver of any such Event of Default or an acquiescence
therein. Every right and remedy given by this Article or by law to the Trustee
or to the Holders may be exercised from time to time, and as often as may be
deemed expedient, by the Trustee or by the Holders, as the case may be.

                  Section 6.12. Control by Holders. The Holders of a majority in
aggregate Original Principal Amount of the outstanding Securities 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; provided, however, 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,

                  (3)      such direction is not unduly prejudicial to the
         rights of Holders not taking part in such direction, and

                  (4)      such direction would not involve the Trustee in
         personal liability, as the Trustee, upon being advised by counsel,
         shall reasonably determine.

                  Section 6.13. Waiver of Past Defaults. Subject to Section
6.02, the Holders of a majority in aggregate Original Principal Amount of the
outstanding Securities, by written notice to the Trustee (and without notice to
any other Holder), may on behalf of the Holders of all of the Securities waive
an existing Default and its consequences except (a) an Event of Default
described in Section 6.01(1) or (2), (b) a Default in respect of a provision
that under Section 9.02

                                       41

<PAGE>

cannot be amended without the consent of each Holder affected or (c) a Default
which constitutes a failure to convert any Security in accordance with the terms
of Article 11. When a Default is waived, such Default shall cease to exist and
any Event of Default arising therefrom shall be deemed cured for every purpose
of the Indenture, but no such waiver shall extend to any subsequent or other
Default or impair any consequent right. This Section 6.13 shall be in lieu of
Section 316(a)1(B) of the TIA and such Section 316(a)1(B) is hereby expressly
excluded from this Indenture, as permitted by the TIA.

                  Section 6.14. Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof shall
be deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in any
suit against the Trustee for any action taken, suffered or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in Original Principal Amount of the outstanding Securities, or to any
suit instituted by any Holder pursuant to Section 6.08. This Section 6.14 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 the TIA.

                  Section 6.15. Waiver of Stay or Extension Laws. Each of the
Company and the Guarantor covenant (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 wherever
enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and each of the Company and the Guarantor
(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 7

                                     TRUSTEE

                  Section 7.01. Duties of Trustee. (a) If an Event of Default
has occurred and is continuing, the Trustee shall exercise such of 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 man would exercise or use under the
circumstances in the conduct of his own affairs.

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

                  (i)      the duties of the Trustee shall be determined solely
         by the express provisions of this Indenture and the Trustee need
         perform only those duties that are specifically set forth in this
         Indenture and no others, and no implied covenants or obligations shall
         be read into this Indenture against the Trustee; and

                                       42

<PAGE>

                  (ii)     in the absence of bad faith on its part, the Trustee
         may conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, in the case of certificates or opinions
         specifically required by any provision hereof to be furnished to it,
         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 purported to be stated therein).

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

                  (i)      this paragraph does not limit the effect of paragraph
         [(b)] of this Section;

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

                  (iii)    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 6.12 hereof.

                  (c) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b), and (c) of this Section.

                  (d) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or incur any liability. The Trustee shall be
under no obligation to exercise any of its rights and powers under this
Indenture at the request of any Holders, unless such Holder shall have offered
to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense.

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

                  Section 7.02. Rights of Trustee. (a) The Trustee may
conclusively rely upon any document (whether in its original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in the
document.

                  (b) Before the Trustee acts or refrains from acting, it may
consult with counsel and may require an Officers' Certificate or an Opinion of
Counsel or both. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such Officers' Certificate or Opinion
of Counsel. The Trustee may consult with counsel and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection from liability in respect of any action taken, suffered or omitted by
it hereunder in good faith and in reliance thereon.

                                       43

<PAGE>

                  (c) The Trustee may act through its attorneys and agents and
shall not be responsible for the misconduct or negligence of any agent or
attorney appointed with due care.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith that it believes to be authorized or within the
rights or powers conferred upon it by this Indenture.

                  (e) Unless otherwise specifically provided in this Indenture,
any demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.

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

                  (g) The Trustee shall not be deemed to have knowledge of any
Default or Event of Default except (i) any Event of Default occurring pursuant
to Section 6.01(1) or (2) or (ii) any Event of Default of which the Trustee
shall have received written notification or otherwise obtained actual knowledge.

                  (h) 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 each agent, Custodian and other person employed
to act hereunder.

                  (i) In no event shall the Trustee be responsible or liable for
special, indirect or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the
Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action.

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

                  Section 7.03. Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company, the Guarantor or any Affiliate of the
Company or the Guarantor with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as Trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

                  Section 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Company's
use of the proceeds from the Securities or any money paid

                                       44

<PAGE>

to the Company or upon the Company's direction under any provision of this
Indenture, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it shall not be
responsible for any statement or recital herein or any statement in the
Securities or any other document in connection with the sale of the Securities
or pursuant to this Indenture other than its certificate of authentication.

                  Section 7.05. Notice of Defaults. If a Default or Event of
Default occurs and is continuing and if it is known to the Trustee, the Trustee
shall mail to the Holders of the Securities a notice of the Default or Event of
Default within 90 days after it occurs. Except in the case of a Default or Event
of Default described in Section 6.01(1) or (2), the Trustee may withhold the
notice if and so long as the Board of Directors, the executive committee or a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of the Holders of the Securities.

                  Section 7.06. Reports by Trustee to the Holders of the
Securities. Within 60 days after each May 15 beginning with the May 15 following
the date of this Indenture, and for so long as Securities remain outstanding,
the Trustee shall mail to the Holders of the Securities a brief report dated as
of such reporting date that complies with TIA Section 313(a) (but if no event
described in TIA Section 313(a) has occurred within the twelve months preceding
the reporting date, no report need be transmitted). The Trustee also shall
comply with TIA Section 313(b)(2). The Trustee shall also transmit by mail all
reports as required by TIA Section 313(c).

                  A copy of each report at the time of its mailing to the
Holders of the Securities shall be mailed to the Company and filed with the SEC
and each stock exchange on which the Securities are listed in accordance with
TIA Section 313(d). The Company shall promptly notify the Trustee when the
Securities are listed on any securities exchange or of any delisting thereof.

                  Section 7.07. Compensation and Indemnity. Each of the Company
and the Guarantor shall pay to the Trustee from time to time reasonable
compensation for its acceptance of this Indenture and services hereunder. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company and the Guarantor, jointly and
severally, shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses shall include the reasonable
compensation, disbursements and expenses of the Trustee's agents and counsel.

                  Each of the Company and the Guarantor, jointly and severally,
shall indemnify the Trustee and its agents against any and all losses,
liabilities, claims, damages or expenses (including compensation, fees,
disbursements and expenses of Trustee's Agents and counsel) incurred by it
arising out of or in connection with the acceptance or administration of its
duties under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company and the Guarantor (including this Section 7.07)
and defending itself against any claim (whether asserted by the Company, the
Guarantor or any Holder or any other person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the
extent any such loss, liability or expense is judicially determined to have been
caused by its own negligence or willful misconduct. The Trustee shall notify the
Company and the Guarantor promptly of any claim for which it may seek indemnity.
Failure by the Trustee to so

                                       45

<PAGE>

notify the Company and the Guarantor shall not relieve the Company or the
Guarantor of its obligations hereunder. The Company and the Guarantor shall
defend the claim and the Trustee shall cooperate in the defense. The Trustee may
have separate counsel and the Company and the Guarantor shall pay the reasonable
fees and expenses of such counsel. The Company and the Guarantor need not pay
for any settlement made without its consent, which consent shall not be
unreasonably withheld.

                  The obligations of the Company and the Guarantor under this
Section 7.07 shall survive the satisfaction and discharge of this Indenture and
resignation or removal of the Trustee.

                  To secure the Company's and the Guarantor's payment
obligations in this Section 7.07, the Trustee shall have a Lien prior to the
Securities on all money or property held or collected by the Trustee, except
that held in trust to pay the Accreted Principal Amount, Redemption Price,
Purchase Price, Change in Control Purchase Price or cash interest, including
Contingent Cash Interest, if any, on particular Securities. Such Lien shall
survive the satisfaction and discharge of this Indenture. The Trustee's right to
receive payment of any amounts due under this Section 7.07 shall not be
subordinated to any other liability or Indebtedness of the Company or the
Guarantor.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(6) or (7) hereof occurs, the expenses
and the compensation for the services (including the fees and expenses of its
Agents and counsel) are intended to constitute expenses of administration under
Bankruptcy Law.

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

                  Section 7.08. Replacement of Trustee. A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective
only upon the successor Trustee's acceptance of appointment as provided in this
Section 7.08.

                  The Trustee may resign in writing at any time and be
discharged from the trust hereby created by so notifying the Company. The
Holders of a majority in Original Principal Amount of the then outstanding
Securities may remove the Trustee by so notifying the Trustee and the Company in
writing. The Company may remove the Trustee if:

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

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

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

                  (d) the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in Original Principal Amount of the

                                       46

<PAGE>

then outstanding Securities may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

                  If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company, or the Holders of Securities of at least 10% in Original Principal
Amount of the then outstanding Securities may petition at the expense of the
Company any court of competent jurisdiction for the appointment of a successor
Trustee.

                  If the Trustee, after written request by any Holder of a
Security who has been a Holder of a Security for at least six months, fails to
comply with Section 7.10, such Holder of a Security may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders of the Securities. The retiring Trustee shall promptly
transfer all property held by it as Trustee to the successor Trustee; provided
all sums owing to the Trustee hereunder have been paid and subject to the Lien
provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee
pursuant to this Section 7.08, the Company's and the Guarantor's obligations
under Section 7.07 hereof shall continue for the benefit of the retiring
Trustee.

                  Section 7.09. Successor Trustee by Merger, Etc. If the Trustee
consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation
without any further act shall be the successor Trustee.

                  Section 7.10. Eligibility; Disqualification. There shall at
all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof
that is authorized under such laws to exercise corporate trustee power, that is
subject to supervision or examination by federal or state authorities and that
has a combined capital and surplus of at least $50 million as set forth in its
most recently published annual report of condition.

                  This Indenture shall always have a Trustee who satisfies the
requirements of TIA Sections 310(a)(1), (2) and (5). The Trustee is subject to
TIA Section 310(b); provided, however, that there shall be excluded from the
operation of TIA Section 310(b)(1) any indenture or indentures under which other
securities, or certificates of interest or participation in other securities, of
the Company or the Guarantor are outstanding, if the requirements for such
exclusion set forth in TIA Section 310(b)(1) are met.

                  Section 7.11. Preferential Collection of Claims Against the
Company. The Trustee is subject to TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). A Trustee who has resigned or been
removed shall be subject to TIA Section 311(a) to the extent indicated therein.

                                       47

<PAGE>

                                    ARTICLE 8

                                    GUARANTEE

                  Section 8.01. Guarantee. Subject to this Article 8, the
Guarantor hereby absolutely, unconditionally and irrevocably guarantees the
Securities and obligations of the Company hereunder and thereunder, and
guarantees to each Holder of a Security authenticated and delivered by the
Trustee in accordance with the terms hereof, and to the Trustee for itself and
on behalf of such Holder, that: (a) the Accreted Principal Amount of and cash
interest, including Contingent Cash Interest, if any, on the Securities will be
paid in full when due, whether at Stated Maturity (including, without
limitation, the amount that would become due but for the operation of the
automatic stay under Section 362(a) of federal Bankruptcy Law), by acceleration,
redemption, purchase or otherwise, together with interest on the overdue
principal, if any, and interest on any overdue interest, to the extent lawful,
all in accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of the Securities, the same shall be
paid in full when due in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration, redemption, purchase or otherwise,
subject, however, in the case of clauses (a) and (b) above, to the limitation
set forth in Section 8.05 hereof.

                  The Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder with respect to any
provisions hereof or thereof, the recovery of any judgment against the Company,
any action to enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of the Guarantor.

                  The Guarantor hereby waives (to the extent permitted by law)
the benefits of diligence, presentment, demand for payment, filing of claims
with a court in the event of insolvency or bankruptcy of the Company, any right
to require a proceeding first against the Company or any other Person, protest,
notice and all demands whatsoever and covenants that the Guarantee shall not be
discharged as to the Securities except by complete performance of the
obligations contained in such Securities, this Indenture and the Guarantee. The
Guarantor acknowledges that the Guarantee is a guarantee of payment and not of
collection.

                  The Guarantor hereby agrees that, in the event of a default in
payment of the Accreted Principal Amount of or cash interest, including
Contingent Cash Interest, if any, on the Securities, whether at Stated Maturity,
by acceleration, redemption, purchase or otherwise, legal proceedings may be
instituted by the Trustee on behalf of, or by, the Holder of such Securities,
subject to the terms and conditions set forth in this Indenture, directly
against the Guarantor to enforce the Guarantee without first proceeding against
the Company. The Guarantor agrees that if, after the occurrence and during the
continuance of an Event of Default, the Trustee or any of the Holders are
prevented by applicable law from exercising their respective rights to
accelerate the Maturity of the Securities, to collect interest on the
Securities, or to enforce or exercise any other right or remedy with respect to
the Securities, the Guarantor shall pay to the Trustee for the account of the
Holder, upon demand therefor, the amount that would otherwise have been due

                                       48

<PAGE>

and payable had such rights and remedies been permitted to be exercised by the
Trustee or any of the Holders.

                  If any Holder or the Trustee is required by any court or
otherwise to return to the Company or the Guarantor, or any custodian, trustee,
liquidator or other similar official acting in relation to either the Company or
the Guarantor, any amount paid by any of them to the Trustee or such Holder, the
Guarantee, to the extent theretofore discharged, shall be reinstated in full
force and effect.

                  The Guarantee shall remain in full force and effect and
continue to be effective should any petition be filed by or against the Company
for liquidation, reorganization, should the Company become insolvent or make an
assignment for the benefit of creditors or should a receiver or trustee be
appointed for all or any significant part of the Company' assets, and shall, to
the fullest extent permitted by law, continue to be effective or be reinstated,
as the case may be, if at any time payment and performance of the Securities
are, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any obligee on the Securities, whether as a
"voidable preference", "fraudulent transfer" or otherwise, all as though such
payment or performance had not been made. In the event that any payment or any
part thereof is rescinded, reduced, restored or returned, the Securities shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned. The form
of Guarantee is attached hereto as Exhibit D.

                  Section 8.02. Severability. In case any provision of the
Guarantee 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 8.03. Priority of Guarantee. The Guarantee shall be
unsecured and unsubordinated obligations of the Guarantor, ranking pari passu
with all other existing and future unsubordinated and unsecured indebtedness of
the Guarantor.

                  Section 8.04. Limitation of Guarantor's Liability. The
Guarantor and by its acceptance hereof each Holder confirms that it is the
intention of all such parties that the Guarantee does not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar
federal or state law or the provisions of its local law relating to fraudulent
transfer or conveyance. To effectuate the foregoing intention, the Holders and
the Guarantor hereby irrevocably agree that the obligations of the Guarantor
under the Guarantee shall be limited to the maximum amount that will not, after
giving effect to all other contingent and fixed liabilities of the Guarantor
result in the obligations of the Guarantor under the Guarantee constituting such
fraudulent transfer or conveyance.

                  Section 8.05. Subrogation. The Guarantor shall be subrogated
to all rights of Holders against the Company in respect of any amounts paid by
the Guarantor pursuant to the provisions of Section 8.01; provided, however,
that, if an Event of Default has occurred and is continuing, the Guarantor shall
not be entitled to enforce or receive any payments arising out of, or based
upon, such right of subrogation until all amounts then due and payable by the
Company under this Indenture or the Securities shall have been paid in full.

                                       49

<PAGE>

                  Section 8.06. Reinstatement. The Guarantor hereby agrees that
the Guarantee provided for in Section 8.01 shall continue to be effective or be
reinstated, as the case may be, if at any time, payment, or any part thereof, of
any obligations or interest thereon is rescinded or must otherwise be restored
by a Holder to the Company upon the bankruptcy or insolvency of the Company or
the Guarantor.

                  Section 8.07. Release of the Guarantor. Concurrently with the
discharge of the Securities under Section 10.01, the Guarantor shall be released
from all obligations under its Guarantee under this Article 8.

                  So long as no Default exists or, upon the occurrence of the
following events, with notice or lapse of time or both, would exist, the
Guarantee and any Liens securing the Guarantee shall be automatically and
unconditionally released and discharged upon: any sale, exchange, transfer to
any Person that is not an Affiliate of the Company of all of the Company'
Capital Stock in the Guarantor, which transaction is otherwise in compliance
with this Indenture.

                  Section 8.08. Benefits Acknowledged. The Guarantor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and that its guarantee and
waivers pursuant to the Guarantee are knowingly made in contemplation of such
benefits.

                                   ARTICLE 9

                        AMENDMENT, SUPPLEMENT AND WAIVER

                  Section 9.01. Supplemental Indentures Without Consent of
Holders. The Company, the Guarantor and the Trustee may from time to time and at
any time enter into an indenture or indentures supplemental hereto (which shall
conform to the provisions of the TIA as in force at the date of the execution
thereof) for one or more of the following purposes:

                  (1) to evidence the succession of another corporation or
         entity to the Company or the Guarantor, or successive successions, and
         the assumption by the successor corporation or entity of the covenants,
         agreements and obligations of the Company or the Guarantor, as the case
         may be, pursuant to Article 5 or Section 11.16 hereof;

                  (2) to add to the covenants of the Company or to add
         additional rights for the benefit of the Holders of all the Securities
         or to surrender any right or power herein conferred upon the Company;

                  (3) to secure the Company's obligations under the Securities
         and this Indenture;

                  (4) to evidence and provide for the acceptance of appointment
         hereunder by a successor Trustee with respect to the Securities and to
         add to or change any of the provisions of this Indenture as shall be
         necessary to provide for or facilitate the administration of the trusts
         hereunder by more than one Trustee, pursuant to the requirements of
         Section 7.08;

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<PAGE>

                  (5) to comply with any requirement of the SEC in order to
         effect or maintain the qualification of this Indenture under the TIA;

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

                  (7) to make any change that does not adversely affect the
         rights of the Holders of the Securities in any material respect.

                  The Trustee is hereby authorized to join with the Company in
the execution of any such supplemental indenture, to make any further
appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer, assignment, mortgage or pledge of any property
thereunder.

                  Any supplemental indenture authorized by the provisions of
this Section 9.01 may be executed by the Company, the Guarantor and the Trustee
without the consent of the Holders of any of the outstanding Securities,
notwithstanding any of the provisions of Section 9.02.

                  Section 9.02. Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than a majority in Original
Principal Amount of the outstanding Securities affected by such supplemental
indenture, by act of said Holders delivered to the Company, the Guarantor and
the Trustee, the Company, the Guarantor and the Trustee may from time to time
and at any time enter into an indenture or indentures supplemental hereto (which
shall conform to the provisions of the TIA as in force at the date of execution
thereof) for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Indenture or of any supplemental
indenture or of modifying in any manner the rights of the Holders of such
Securities under this Indenture; provided, however, that without the consent of
the Holder of each outstanding Security, no such supplemental indenture shall:

                  (1) make any change in the manner of calculation or rate of
         accrual of cash interest, including Contingent Cash Interest, or
         accretion of the Accreted Principal Amount, reduce the rate of cash
         interest, including Contingent Cash Interest, specified in the
         Securities or extend the time for payment of the Accreted Principal
         Amount or cash interest, including Contingent Cash Interest, if any, on
         any Security;

                  (2) make any Security payable in money or securities other
         than that stated in the Security;

                  (3) change the Stated Maturity of any Security;

                  (4) reduce the Original Principal Amount, Accreted Principal
         Amount, Issue Price, Redemption Price, Purchase Price or Change in
         Control Purchase Price with respect to any Security;

                                       51

<PAGE>

                  (5) make any change that adversely affects the right to
         convert any Security as provided in paragraph 9 of the Securities or
         pursuant to Article 11 in any material respect;

                  (6) make any change that adversely affects the right to
         require the Company to purchase the Securities in accordance with the
         terms thereof and this Indenture in any material respect;

                  (7) impair the right to institute suit for the enforcement of
         any payment with respect to, or conversion of, the Securities; or

                  (8) change the provisions of this Indenture that relate to
         modifying or amending this Indenture.

                  Upon the request of the Company accompanied by a copy of a
Board Resolution authorizing the execution of any such supplemental indenture,
and upon the filing with the Trustee of evidence of the consent of Holders as
aforesaid, the Trustee shall join with the Company in the execution of such
supplemental indenture.

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

                  Section 9.03. Execution of Supplemental Indentures. In
executing, or accepting the additional trusts created by, any supplemental
indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be provided with, and (subject to
Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel
stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture. The Trustee may, but shall not be obligated to
enter into any such supplemental indenture which affects the Trustee's own
rights, duties or immunities under this Indenture or otherwise.

                  Section 9.04. Effect of Supplemental Indentures. Upon the
execution of any supplemental indenture pursuant to the provisions of this
Article, this Indenture shall be and be deemed to be modified and amended in
accordance therewith, and the respective rights, limitations of rights,
obligations, duties and immunities under this Indenture of the Trustee, the
Company, the Guarantor and the Holders shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

                  Section 9.05. Reference in Securities to Supplemental
Indentures. Securities 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 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

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<PAGE>

and the Guarantor and authenticated and delivered by the Trustee in exchange for
outstanding Securities.

                                   ARTICLE 10

                           SATISFACTION AND DISCHARGE

                  Section 10.01. Satisfaction and Discharge. When either (a) all
Securities that have been authenticated (except Securities that have been
replaced pursuant to Section 2.07) have been delivered to the Trustee for
cancellation, or (b) all Securities that have not been delivered to the Trustee
for cancellation have become due and payable and the Company or the Guarantor
has irrevocably deposited or caused to be deposited with the Trustee, the Paying
Agent (if the Paying Agent is not the Company, the Guarantor or an Affiliate of
the Company or the Guarantor) or the Conversion Agent, as trust funds in trust
solely for the benefit of the Holders, cash in U.S. dollars or, if expressly
permitted by the terms of the Securities or the Indenture, Common Stock,
sufficient to pay all amounts due and owing on all outstanding Securities (other
than Securities replaced pursuant to Section 2.07), and if in either case the
Company or the Guarantor has paid or caused to be paid all sums payable by it
under this Indenture, then this Indenture shall, subject to Section 7.07, cease
to be of further effect. The Trustee shall join in the execution of a document
prepared by the Company acknowledging satisfaction and discharge of this
Indenture upon demand of the Company accompanied by an Officer's Certificate and
Opinion of Counsel at the cost and expense of the Company stating that all
conditions precedent to satisfaction and discharge have been satisfied.

                  Section 10.02. Repayment to the Company. The Trustee and the
Paying Agent shall return to the Company or, to the extent the Trustee collects
any amount pursuant to the Guarantee from the Guarantor, to the Guarantor, upon
written request any money or securities held by them for the payment of any
amount with respect to the Securities that remains unclaimed for two years,
subject to applicable unclaimed property law. After the return to the Company or
the Guarantor, as the case may be, Holders entitled to the money or securities
must look to the Company or the Guarantor for payment as general creditors
unless an applicable abandoned property law designates another person, and the
Trustee and the Paying Agent shall have no further liability to the Holders with
respect to such money or securities for that period commencing after the return
thereof.

                                   ARTICLE 11

                                   CONVERSIONS

                  Section 11.01. Conversion Privilege. A Holder of a Security
may convert such Security into shares of Common Stock prior to the close of
business on February 14, 2024, at the times permitted by, and subject to the
provisions of this Article 11 and provisions of the Securities. Upon
determination that Holders are or will be entitled to convert their Securities
into Common Stock in accordance with paragraph 9 of the Securities, the Company
will issue a press release and use its reasonable efforts to post such
determination on the Company's website or through such other public medium as
the Company may use at that time. The number of shares of Common Stock issuable
upon conversion of each $1,000 of Original Principal Amount of

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<PAGE>

Securities (the "Conversion Rate") shall be determined in accordance with the
provisions of the Securities.

                  A Holder may convert a portion of the Original Principal
Amount of a Security if the portion is $1,000 or an integral multiple of $1,000.
Provisions of this Indenture that apply to conversion of all of a Security also
apply to conversion of a portion of a Security.

                 The Holders' rights to convert Securities into shares of Common
Stock is subject to the Company's right to elect instead to pay each such Holder
the amount of cash set forth in the next succeeding sentence, in lieu of
delivering such shares of Common Stock, subject to the last sentence of this
paragraph, which notice must be given within two Business Days after the
Conversion Date. The amount of cash to be paid pursuant to Section 11.02 hereof
for each $1,000 Original Principal Amount of a Security upon conversion shall be
equal to the Average Sale Price of the Common Stock for the five consecutive
Trading Days immediately following either (i) the date of the Company's notice
of its election to deliver cash upon conversion, if the Company shall not have
given a notice of redemption pursuant to Section 3.01 hereof, or (ii) the
Conversion Date, in the case of a conversion following such a notice of
redemption specifying an intent to deliver cash upon conversion, in either case,
multiplied by the Conversion Rate in effect on such Conversion Date. The Company
shall not pay cash in lieu of delivering shares of Common Stock upon the
conversion of any Security pursuant to the terms of this Article 11 (other than
cash in lieu of fractional shares pursuant to Section 11.03 hereof) if there has
occurred (prior to, on or after, as the case may be, the Conversion Date or the
date on which the Company delivers its notice of whether such Security shall be
converted into Common Stock or cash pursuant to Section 11.02 hereof) and is
continuing an Event of Default (other than a default in a cash payment upon
conversion of such Security).

                  Section 11.02. Conversion Procedure. To convert a Security, a
Holder must satisfy the requirements in the Securities. The date on which the
Holder satisfies all those requirements is the conversion date (the "Conversion
Date"). The Conversion Agent shall notify the Company of the Conversion Date
within one Business Day following the Conversion Date. Within two Business Days
following the Conversion Date, the Company shall deliver to the Holder, through
the Trustee, written notice of whether such Security shall be converted into
shares of Common Stock or paid in cash, unless the Company shall have previously
delivered a notice of redemption pursuant to Section 3.01 hereof. If the Company
shall have notified the Holder that all or a portion of such Securities shall be
converted into shares of Common Stock, the Company shall deliver to the Holder
through the Conversion Agent, as promptly as practicable but in any event no
later than the tenth Business Day following the Conversion Date, a certificate
for the number of full shares of Common Stock deliverable upon the conversion
and, if applicable, and except as provided in the last sentence of the third
paragraph of Section 11.01 hereof, any cash to be delivered in lieu of Common
Stock, and cash in lieu of any fractional share determined pursuant to Section
11.03 hereof. Except as provided in the last sentence in the third paragraph of
Section 11.01 hereof, if the Company shall have notified the Holder that all of
such Security shall be paid in cash, the Company shall deliver to the Holder
surrendering such Security the amount of cash payable with respect to such
Security no later than the tenth Business Day following such Conversion Date.
Except as provided in the last sentence in the third paragraph of Section 11.01
hereof, at any time prior to Maturity, the Company may at its option elect by
written notice to the Trustee and Holders of the Securities that upon conversion

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<PAGE>

of a Security at any time following the date of such notice, the Company shall
be required to deliver cash in an amount at least equal to the Accreted
Principal Amount of the Securities converted. If shares of Common Stock are
delivered as consideration, then the Person in whose name the certificate
representing such shares is registered shall be treated as a stockholder of
record of the Company on and after the Conversion Date; provided, however, that
no surrender of a Security on any date when the stock transfer books of the
Company shall be closed shall be effective to constitute the Person or Persons
entitled to receive the shares of Common Stock upon such conversion as the
record holder or holders of such shares of Common Stock on such date, but such
surrender shall be effective to constitute the Person or Persons entitled to
receive such shares of Common Stock as the record holder or holders thereof for
all purposes at the close of business on the next succeeding day on which such
stock transfer books are open; such conversion shall be at the Conversion Rate
in effect on the date that such Security shall have been surrendered for
conversion, as if the stock transfer books of the Company had not been closed.
Upon conversion of a Security, such Person shall no longer be a Holder of such
Security.

                  No payment or adjustment shall be made for dividends on, or
other distributions with respect to, any Common Stock except as provided in this
Article 11. On conversion of a Security prior to February 15, 2011, except as
provided below in the case of certain Securities or portions thereof called for
redemption, that portion of accrued and unpaid interest on the converted
Security attributable to the period from the most recent Interest Payment Date
(or, if no Interest Payment Date has occurred, from the Issue Date) through the
Conversion Date shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through delivery of the
Common Stock (together with the cash payment, if any, in lieu of fractional
shares), or cash or a combination of cash and Common Stock in lieu thereof, in
exchange for the Security being converted pursuant to the provisions hereof, and
the Fair Market Value of such shares of Common Stock (together with any such
cash payment in lieu of fractional shares), or cash or a combination of cash and
Common Stock in lieu thereof, shall be treated as issued, to the extent thereof,
first in exchange for accrued and unpaid interest (including Contingent Cash
Interest, if any) accrued through the Conversion Date and the balance, if any,
of such fair market value of such Common Stock (and any such cash payment), or
cash in lieu thereof, shall be treated as issued in exchange for the Original
Principal Amount of the Security being converted pursuant to the provisions
hereof.

                  On conversion of a Security on or after February 15, 2011,
that portion of increases in the Accreted Principal Amount attributable to the
period from and including February 15, 2011 through the Conversion Date, and
(except as provided below) accrued Contingent Cash Interest, if any, with
respect to the converted Security shall not be cancelled, extinguished or
forfeited, but rather shall be deemed to be paid in full to the Holder thereof
through delivery of the Common Stock (together with the cash payment, if any, in
lieu of fractional shares) in exchange for the Security being converted pursuant
to the provisions hereof; and the Fair Market Value of such shares of Common
Stock (together with any such cash payment in lieu of fractional shares) shall
be treated as issued, to the extent thereof, first in exchange for accrued tax
original issue discount and the increase in Accreted Principal Amount from the
Issue Date through the Conversion Date and accrued Contingent Cash Interest, and
the balance, if any, of such fair market value of such Common Stock (and any
such cash payment) shall be treated as issued in exchange for the Issue Price of
the Security being converted pursuant to the provisions hereof.

                                       55

<PAGE>

                  Securities or portions thereof surrendered for conversion
during the period from the close of business on any Regular Record Date
immediately preceding any Interest Payment Date to the opening of business on
such Interest Payment Date shall (except for Securities called for redemption
pursuant to Article 3 hereof on a Redemption Date that occurs during the period
between a Regular Record Date and the Interest Payment Date to which such
Regular Record Date relates) be accompanied by payment to the Company or its
order, in New York Clearing House funds or other funds acceptable to the
Company, of an amount equal to the interest payable on such Interest Payment
Date (both regular cash interest and Contingent Cash Interest, if any) on the
Accreted Principal Amount of Securities or portions thereof being surrendered
for conversion.

                  Notwithstanding the foregoing, accrued cash interest, if any,
including Contingent Cash Interest, if any, will be payable upon conversion of
Securities made concurrently with or after acceleration of Securities following
an Event of Default.

                  If the Holder converts more than one Security at the same
time, the number of shares of Common Stock issuable upon the conversion shall be
based on the total Original Principal Amount of the Securities converted.

                  If the last day on which a Security may be converted is not a
Business Day, the Security may be surrendered on the next succeeding day that is
a Business Day.

                  A Security surrendered for conversion based on (a) the Common
Stock price may be surrendered for conversion on a Conversion Date at any time
after March 31, 2004 as more fully described in paragraph 9 of the Securities,
(b) the Security being called for redemption may be surrendered for conversion
at any time prior to the close of business on the second Business Day
immediately preceding the Redemption Date, even if it is not otherwise
convertible at such time, (c) a credit downgrade may be surrendered for
conversion until the close of business on any Business Day during the period of
the continuance of the credit downgrade as more fully described in paragraph 9
of the Security, and (d) upon the occurrence of certain corporate transactions
more fully described in paragraph 9 of the Securities may be surrendered for
conversion at any time from and after the date which is 15 days prior to the
anticipated effective date of such transaction until 15 days after the actual
date of such transaction, and if such day is not a Business Day, the next
occurring Business Day following such day; but in each of clauses (a), (b), (c)
and (d) above, in no event later than the close of business on February 14,
2024.

                   Upon surrender of a Security that is converted in part, the
Company shall execute, and the Trustee shall authenticate and deliver to the
Holder, a new Security in an authorized denomination equal in Original Principal
Amount to the unconverted portion of the Security surrendered.

                  Section 11.03. Fractional Shares. The Company will not issue a
fractional share of Common Stock upon conversion of a Security. Instead, the
Company will deliver cash for the current market value of the fractional share.
The current market value of a fractional share shall be determined, to the
nearest 1/1,000th of a share, by multiplying the per share Sale Price of the
Common Stock, on the last Trading Day prior to the Conversion Date, by the
fractional amount and rounding the product to the nearest whole cent.

                                       56

<PAGE>

                  Section 11.04. Taxes on Conversion. If a Holder converts a
Security, the Company shall pay any documentary, stamp or similar issue or
transfer tax due on the issue of shares of Common Stock upon the conversion.
However, the Holder shall pay any such tax which is due because the Holder
requests the shares to be issued in a name other than the Holder's name and any
income tax which is imposed on the Holder as a result of the conversion. The
Conversion Agent may refuse to deliver the certificates representing the Common
Stock being issued in a name other than the Holder's name until the Conversion
Agent receives a sum sufficient to pay any tax which will be due because the
shares are to be issued in a name other than the Holder's name. Nothing herein
shall preclude the Company from any tax withholding or directing the withholding
of any tax required by law or regulations.

                  Section 11.05. The Company to Provide Stock. The Company
shall, prior to issuance of any Securities under this Article 11, and from time
to time as may be necessary, reserve out of its authorized but unissued Common
Stock a sufficient number of shares of Common Stock to permit the conversion of
the Securities.

                  All shares of Common Stock delivered upon conversion of the
Securities shall be newly issued shares or treasury shares, shall be duly and
validly issued and fully paid and nonassessable and shall be free from
preemptive rights and free of any lien or adverse claim created by the Company.

                  The Company will endeavor promptly to comply with all federal
and state securities laws regulating the offer and delivery of shares of Common
Stock upon conversion of Securities, if any, and will list or cause to have
quoted such shares of Common Stock on each national securities exchange or in
the over-the-counter market or such other market on which the Common Stock is
then listed or quoted.

                  Section 11.06. Adjustment for Change in Capital Stock. Except
as set forth in Section 11.16 hereof, if, after the Issue Date of the
Securities, the Company:

                           (a) pays a dividend or makes a distribution on its
         Common Stock in shares of its Common Stock or other Capital Stock;

                           (b) subdivides its outstanding shares of Common Stock
         into a greater number of shares;

                           (c) combines its outstanding shares of Common Stock
         into a smaller number of shares; or

                           (d) issues by reclassification of its Common Stock
         any shares of its Capital Stock (other than rights, warrants or options
         for its Capital Stock);

then the conversion privilege and the Conversion Rate in effect immediately
prior to such action shall be adjusted so that the Holder of a Security
thereafter converted may receive the number of shares or other units of Capital
Stock of the Company which such Holder would have owned immediately following
such action if such Holder had converted the Security immediately prior to such
action.

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<PAGE>

                  The adjustment shall become effective immediately after the
record date in the case of a dividend or distribution and immediately after the
effective date in the case of a subdivision, combination or reclassification.

                  If after an adjustment a Holder of a Security upon conversion
of such Security may receive shares of two or more classes of Capital Stock of
the Company, the Conversion Rate shall thereafter be subject to adjustment upon
the occurrence of an action taken with respect to any such class of Capital
Stock as is contemplated by this Article 11 with respect to the Common Stock, on
terms comparable to those applicable to Common Stock in this Article 11.

                  Section 11.07. Adjustment for Rights Issue. Except as set
forth in Sections 11.16 and 11.21 hereof, if after the Issue Date, the Company
distributes any rights, warrants or options to all holders of its Common Stock
entitling them, for a period expiring within 60 days of the issue date for each
distribution, to purchase shares of Common Stock at a price per share less than
the Sale Price of the Common Stock as of the Time of Determination, the
Conversion Rate shall be adjusted in accordance with the formula:

                                       (O + N)
                      R' = R x  --------------------
                                   (O + [N x P/M])

                  where:

                  R' = the adjusted Conversion Rate.

                  R = the current Conversion Rate.

                  O = the number of shares of Common Stock outstanding on the
         record date for the distribution to which this Section 11.07 is being
         applied.

                  N = the number of additional shares of Common Stock offered
         pursuant to the distribution.

                  P = the offering price per share of the additional shares.

                  M = the Average Sale Price.

                           The Board of Directors shall determine Fair Market
Values for the purposes of this Section 11.07.

                  The adjustment shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
rights, warrants or options to which this Section 11.07 applies. If all of the
shares of Common Stock subject to such rights, warrants or options have not been
issued when such rights, warrants or options expire, then the Conversion Rate
shall promptly be readjusted to the Conversion Rate which would then be in
effect had the adjustment upon the issuance of such rights, warrants or options
been made on the basis of the

                                       58

<PAGE>

actual number of shares of Common Stock issued upon the exercise of such rights,
warrants or options.

                  No adjustment shall be made under this Section 11.07 if the
application of the formula stated above in this Section 11.07 would result in a
value of R' that is equal to or less than the value of R.

                  Section 11.08. Adjustment for Other Non-Cash Distributions.
(a) If, after the Issue Date of the Securities, the Company distributes to all
holders of its Common Stock any of its non-cash assets, excluding distributions
of Capital Stock or equity interests referred to in Section 11.08(b), or debt
securities or any rights, warrants or options to purchase securities of the
Company (including securities but excluding distributions of Capital Stock
referred to in Section 11.06 and distributions of rights, warrants or options
referred to in Section 11.07), the Conversion Rate shall be adjusted in
accordance with the formula

                                       M
                         R' = R x  ---------
                                     M - F

                           where:

                           R' = the adjusted Conversion Rate.

                           R = the current Conversion Rate.

                           M = the Average Sale Price.

                           F = the Fair Market Value (on the record date for the
         distribution to which this Section 11.08(a) applies) of the assets,
         securities, rights, warrants or options to be distributed in respect of
         each share of Common Stock in the distribution to which this Section
         11.08(a) is being applied.

                  The Board of Directors shall determine Fair Market Values for
the purposes of this Section 11.08(a).

                  The adjustment shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
distribution to which this Section 11.08(a) applies.

                   (b) If, after the Issue Date of the Securities, the Company
pays a dividend or makes a distribution to all holders of its Common Stock
consisting of Capital Stock of any class or series, or similar equity interests,
of or relating to a Subsidiary or other business unit of the Company, the
Conversion Rate shall be adjusted in accordance with the formula:

                           R' =  R x (1 + F/M)

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<PAGE>

                           where:

                           R' = the adjusted Conversion Rate.

                           R = the current Conversion Rate.

                           M = the average of the Post-Distribution Prices of
         the Common Stock for the 10 Trading Days commencing on and including
         the fifth Trading Day after the date on which "ex-dividend trading"
         commences for such dividend or distribution on the principal United
         States exchange or market which such securities are then listed or
         quoted (the "Ex-Dividend Date").

                           F = the Fair Market Value of the securities
         distributed in respect of each share of Common Stock in the
         distribution to which this Section 11.08(b) applies, which shall be
         determined by multiplying the number of securities distributed in
         respect of each share of Common Stock in the distribution by the
         average of the Post-Distribution Prices of those securities for the 10
         Trading Days commencing on and including the fifth Trading Day after
         the Ex-Dividend Date.

                  "Post-Distribution Price" of Capital Stock or any similar
equity interest on any date means the closing per unit sale price (or, if no
closing sale price is reported, the average of the bid and ask prices or, if
more than one in either case, the average of the average bid and the average ask
prices) on such date for trading of such units on a "when issued" basis without
due bills (or similar concept) as reported in the composite transactions for the
principal United States securities exchange on which such Capital Stock or
equity interest is traded or, if the Capital Stock or equity interest, as the
case may be, is not listed on a United States national or regional securities
exchange, as reported by the National Association of Securities Dealers
Automated Quotation System or by the National Quotation Bureau Incorporated;
provided that if on any date such units have not traded on a "when issued"
basis, the Post-Distribution Price shall be the closing per unit sale price (or,
if no closing sale price is reported, the average of the bid and ask prices or,
if more than one in either case, the average of the average bid and the average
ask prices) on such date for trading of such units on a "regular way" basis
without due bills (or similar concept) as reported in the composite transactions
for the principal United States securities exchange on which such Capital Stock
or equity interest is traded or, if the Capital Stock or equity interest, as the
case may be, is not listed on a United States national or regional securities
exchange, as reported by the National Association of Securities Dealers
Automated Quotation System or by the National Quotation Bureau Incorporated. In
the absence of such quotation, the Company shall be entitled to determine the
Post-Distribution Price on the basis of such quotations which reflect the
post-distribution value of the Capital Stock or equity interests as it considers
appropriate.

                  (c) In the event that, with respect to any distribution to
which this Section 11.08 would otherwise apply, the difference "M - F" as
defined in the formula set forth in this Section 11.08 is less than $1.00 or "F"
is equal to or greater than "M", then the adjustment provided by Section 11.08
shall not be made and in lieu thereof the provisions of Section 11.16 shall
apply to such distribution.

                                       60

<PAGE>

                  Section 11.09. Adjustment for Cash Distributions. In case the
Company shall, by dividend or otherwise, distribute to all holders of its Common
Stock cash, excluding any dividend or distribution in connection with the
liquidation, dissolution or winding up of the Company, whether voluntary or
involuntary, then, in such case, the Conversion Rate shall be increased so that
the Conversion Rate shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the close of business on such
record date by a fraction,

                               (i) the numerator of which shall be the Current
              Market Price on such record date; and

                               (ii) the denominator of which shall be the
              Current Market Price on such record date less the amount of cash
              so distributed applicable to one share of Common Stock (determined
              as set forth below),

such adjustment to be effective immediately prior to the opening of business on
the day following the record date for such dividend or distribution; provided
that if the portion of the cash so distributed applicable to one share of Common
Stock is equal to or greater than the Current Market Price on the record date,
in lieu of the foregoing adjustment, adequate provision shall be made so that
each Holder of Securities shall have the right to receive upon conversion the
amount of cash such Holder would have received had such Holder converted each
Security on such record date. If any such dividend or distribution is not so
paid or made, the Conversion Rate shall again be adjusted to be the Conversion
Rate that would then be in effect if such dividend or distribution had not been
declared. If an adjustment is required to be made as set forth in this Section
11.09 above, such adjustment shall be based upon the full amount of the
distribution.

                  Section 11.10. Adjustment for Tender Offers or Exchange
Offers. In case a tender or exchange offer made by the Company or any Subsidiary
for all or any portion of the Common Stock (excluding repurchases pursuant to
any stock repurchase program approved by the Board of Directors and announced by
the Company prior to the date of this Indenture, or any similar program that
does not constitute a tender offer) shall expire and such tender or exchange
offer (as amended upon the expiration thereof) shall require the payment to
stockholders of consideration per share of Common Stock having a Fair Market
Value (as determined by the Board of Directors, whose determination shall be
conclusive and described in a resolution of the Board of Directors) that as of
the last time (the "Expiration Time") tenders or exchanges may be made pursuant
to such tender or exchange offer (as it may be amended) exceeds the average of
the Closing Sale Price of a share of Common Stock for each of the 10 consecutive
Trading Days next succeeding the Expiration Time, the Conversion Rate shall be
increased so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to the Expiration Time by a
fraction,

                           (i)      the numerator of which shall be the sum of
         (x) the Fair Market Value (determined as aforesaid) of the aggregate
         consideration payable to stockholders based on the acceptance (up to
         any maximum specified in the terms of the tender or exchange offer) of
         all shares validly tendered or exchanged and not withdrawn as of the
         Expiration Time (the shares deemed so accepted up to any such maximum,
         being referred

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<PAGE>

         to as the "Purchased Shares") and (y) the product of the number of
         shares of Common Stock outstanding (less any Purchased Shares) at the
         Expiration Time and the average of the Closing Sale Price of a share of
         Common Stock for each of the 10 consecutive Trading Days next
         succeeding the Expiration Time, and

                           (ii)     the denominator of which shall be the number
         of shares of Common Stock outstanding (including any tendered or
         exchanged shares) at the Expiration Time multiplied by the average of
         the Closing Sale Price of a share of Common Stock for each of the 10
         consecutive Trading Days next succeeding the Expiration Time,

such adjustment to become effective immediately prior to the opening of business
on the day following the Expiration Time. If the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company
is permanently prevented by applicable law from effecting any such purchases or
all such purchases are rescinded, the Conversion Rate shall again be adjusted to
be the Conversion Rate that would then be in effect if such tender or exchange
offer had not been made.

                  Section 11.11. When Adjustment May Be Deferred. No adjustment
in the Conversion Rate need be made unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Rate. Any adjustments that
are not made shall be carried forward and taken into account in any subsequent
adjustment and all adjustments that are made and carried forward shall be taken
in the aggregate in order to determine if the 1% threshold is met.

                  All calculations under this Article 11 shall be made to the
nearest cent or to the nearest 1/1,000th of a share, as the case may be.

                  Section 11.12. When No Adjustment Required. No adjustment need
be made for a transaction referred to in Section 11.06, 11.07, 11.08, 11.09,
11.10 or 11.16 hereof if Holders of Securities may participate in the
transaction. Such participation by Holders of Securities may include
participation without conversion or upon conversion; provided, that, if such
participation is upon conversion, an adjustment shall be made at such time as
the Holders are no longer entitled to participate.

                  No adjustment need be made for rights to purchase Common Stock
pursuant to a the Company plan for reinvestment of dividends or interest.

                  Unless otherwise required by a provision of this Article 11,
no adjustment need be made for a change in the par value or no par value of the
Common Stock.

                  To the extent the Securities become convertible into cash,
assets, property or securities (other than Capital Stock of the Company),
subject to provisions of the Securities, pursuant to this Article 11, no
adjustment need be made thereafter as to the cash, assets, property or such
securities. Interest will not accrue on the cash.

                  No adjustment will be made pursuant to this Article 11 that
would result, through the application of two or more provisions hereof, in the
duplication of any adjustment.

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<PAGE>

                  Section 11.13. Notice of Adjustment. Whenever the Conversion
Rate is adjusted, the Company shall promptly mail to Holders of Securities a
notice of the adjustment. The Company shall file with the Trustee and the
Conversion Agent such notice of adjustment and an Officers' Certificate briefly
stating the facts requiring the adjustment and the manner of computing it. Upon
receipt by it of such notice, and at the written request of the Company, the
Conversion Agent will promptly mail such notice to Holders of Securities at the
Company's expense. The Officers' Certificate shall be conclusive evidence that
the adjustment is correct. Neither the Trustee nor any Conversion Agent shall be
under any duty or responsibility and shall have no liability with respect to any
such certificate and the calculations relating to such adjustment except the
duty and responsibility to exhibit the same to any Holder desiring inspection
thereof.

                  Section 11.14. Voluntary Increase. the Company from time to
time may increase the Conversion Rate by any amount for any period of time.
Whenever the Conversion Rate is increased, the Company shall mail to Holders of
Securities and file with the Trustee and the Conversion Agent a notice of the
increase. The Company shall mail the notice at least 15 days before the date the
increased Conversion Rate takes effect. The notice shall state the increased
Conversion Rate and the period it will be in effect.

                  A voluntary increase of the Conversion Rate does not change or
adjust the Conversion Rate otherwise in effect for purposes of Section 11.06,
11.07, 11.08, 11.09, 11.10 or 11.16 hereof.

                  Section 11.15. Notice of Certain Transactions. If:

                           (a) the Company takes any action that would require
         an adjustment in the Conversion Rate pursuant to Section 11.06, 11.07,
         11.08, 11.09 or 11.10 hereof (unless no adjustment is to occur pursuant
         to Section 11.12 hereof); or

                           (b) the Company takes any action that would require a
         supplemental indenture pursuant to Section 11.16; or

                           (c) there is a liquidation or dissolution of the
         Company;

then the Company shall mail to Holders of Securities and file with the Trustee
and the Conversion Agent a notice stating the proposed record date for a
dividend or distribution or the proposed effective date of a subdivision,
combination, reclassification, consolidation, merger, binding share exchange,
transfer, liquidation or dissolution. The Company shall file and mail the notice
at least 15 days before such date. Failure to file or mail the notice or any
defect in it shall not affect the validity of the transaction.

                  Section 11.16. Reorganization of Company; Special
Distributions. If the Company is a party to a transaction subject to Article 5
hereof (other than a sale of all or substantially all of the assets of the
Company in a transaction in which the holders of Common Stock immediately prior
to such transaction do not receive securities, cash, property or other assets of
the Company or any other Person) or a merger or binding share exchange which
reclassifies or changes its outstanding Common Stock, the Person obligated to
deliver securities, cash or other assets upon conversion of Securities shall, no
later than the closing date of such

                                       63

<PAGE>

transaction, enter into a supplemental indenture. If the issuer of securities
deliverable upon conversion of Securities is an Affiliate of the successor
company, that issuer shall, no later than the closing date of such transaction,
join in the supplemental indenture.

                  The supplemental indenture shall provide that the Holder of a
Security may convert it into the kind and amount of securities, cash or other
assets which such Holder would have received immediately after the
consolidation, merger, binding share exchange or transfer if such Holder had
converted the Security immediately before the effective date of the transaction,
assuming (to the extent applicable) that such Holder was not a constituent
Person or an Affiliate of a constituent Person to such transaction. The
supplemental indenture shall provide for adjustments which shall be as nearly
equivalent as may be practical to the adjustments provided for in this Article
11. The successor Company shall mail to Holders of Securities a notice briefly
describing the supplemental indenture.

                  If this Section applies, none of Sections 11.06, 11.07, 11.09
nor 11.10 hereof shall apply.

                  If the Company makes a distribution to all holders of its
Common Stock of any of its assets, or debt securities or any rights, warrants or
options to purchase securities of the Company that would otherwise result in an
adjustment in the Conversion Rate pursuant to the provisions of Section 11.08
hereof, then, from and after the record date for determining the holders of
Common Stock entitled to receive the distribution, a Holder of a Security that
converts such Security in accordance with the provisions of this Indenture shall
upon such conversion be entitled to receive, in addition to the shares of Common
Stock into which the Security is convertible, the kind and amount of securities,
cash or other assets comprising the distribution that such Holder would have
received if such Holder had converted the Security immediately prior to the
record date for determining the holders of Common Stock entitled to receive the
distribution.

                  Section 11.17. Company Determination Final. Whenever
adjustments to the Conversion Rate are called for pursuant to Article 11, such
adjustments shall be made to the Conversion Rate as may be necessary or
appropriate to effectuate the intent of this Article 11 and to avoid unjust or
inequitable results as determined in good faith by the Board of Directors.

                  Any determination that the Company or the Board of Directors
must make pursuant to Section 11.03, 11.06, 11.07, 11.08, 11.09, 11.10, 11.11,
11.12, 11.16 or 11.19 hereof is conclusive.

                  Section 11.18. Trustee's Adjustment Disclaimer. The Trustee
has no duty to determine when an adjustment under this Article 11 should be
made, how it should be made or what it should be and shall have no liability
with respect to the calculation of such adjustment. The Trustee has no duty to
determine whether a supplemental indenture under Section 11.16 hereof need be
entered into or whether any provisions of any supplemental indenture are
correct. The Trustee shall not be accountable for and makes no representation as
to the validity or value of any securities or assets issued upon conversion of
Securities. The Trustee shall not be responsible for the Company' failure to
comply with this Article 11. Each Conversion Agent

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<PAGE>

(other than the Company or an Affiliate of the Company) shall have the same
protection under this Section 11.18 as the Trustee.

                  Section 11.19. Simultaneous Adjustments. If more than one
issuance, distribution, subdivision, tender offer or combination or other event
to which Article 11 applies occurs during the period applicable for calculating
adjustments to the Conversion Rate, such adjustments shall be calculated for
such period in a manner determined by the Board of Directors to most
appropriately reflect the combined impact of such issuance, distribution, tender
offer, subdivision or combination or other event on the Conversion Rate of the
Common Stock during such period.

                  Section 11.20. Successive Adjustments. After an adjustment to
the Conversion Rate under this Article 11, any subsequent event requiring an
adjustment under this Article 11 shall cause an adjustment to the Conversion
Rate as so adjusted.

                  Section 11.21. Rights Issued in Respect of Common Stock Issued
Upon Conversion. Each share of Common Stock issued upon conversion of Securities
pursuant to this Article 11 shall be entitled to receive the appropriate number
of Common Stock or Preferred Stock purchase rights, as the case may be (the
"Rights"), if any, that all shares of Common Stock are entitled to receive and
the certificates representing the Common Stock issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of any
stockholder rights agreement adopted by the Company, as the same may be amended
from time to time (in each case, a "Rights Agreement"). If such Rights Agreement
requires that each share of Common Stock issued upon conversion of Securities at
any time prior to the distribution of separate certificates representing the
Rights be entitled to receive such Rights, then, notwithstanding anything else
to the contrary in the foregoing sections of this Article 11, there shall not be
any adjustment to the conversion privilege or Conversion Rate or any other term
or provision of the Securities as a result of the issuance of Rights, the
distribution of separate certificates representing the Rights, the exercise or
redemption of such Rights in accordance with any such Rights Agreement, or the
termination or invalidation of such Rights. Notwithstanding the foregoing, if a
Holder of Securities exercising its right of conversion after the distribution
of Rights pursuant to a "Rights Agreement" is not entitled to receive the Rights
that would otherwise be attributable (but for the date of conversion) to the
shares of Common Stock to be received upon such conversion, if any, the
Conversion Rate will be adjusted as though the Rights were being distributed to
holders of Common Stock on the Conversion Date. If such an adjustment is made
and such Rights are later redeemed, invalidated or terminated, then a
corresponding reversing adjustment will be made to the Conversion Rate on a
equitable basis.

                                   ARTICLE 12

                            CONTINGENT CASH INTEREST

                  Section 12.01. Contingent Cash Interest. The Company shall
make Contingent Cash Interest payments to the Holders during any six-month
period from February 16 to August 15 and from August 16 to February 15,
beginning with the six-month period commencing on February 16, 2011 (each a
"Semiannual Period"), if, but only if, the Average Security Market Price for the
five Trading Days ending on the third Trading Day immediately preceding the
first day of the applicable Semiannual Period equals 120% or more of the
Relevant Value per Note.

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<PAGE>

During any Semiannual Period when Contingent Cash Interest is payable pursuant
to this Section 12.01, each Contingent Cash Interest payment due and payable on
each $1,000 Original Principal Amount of Securities for the applicable
Semiannual Period, shall equal the annual rate of 0.25% of the Average Security
Market Price for the five Trading Day measuring period referred to in the
preceding sentence. Contingent Cash Interest shall be calculated on the basis of
a 360-day year of twelve 30-day months.

                  As used in this Section 12.01, "Relevant Value" means the sum
of the Issue Price, accretion in the principal amount from February 15, 2011,
and accrued cash interest, if any, on such Security to the day immediately
preceding the first day of the applicable Semiannual Period. "Average Security
Market Price" means, on any date, the average of the secondary market bid
quotations per $1,000 Original Principal Amount of Securities obtained by the
Bid Solicitation Agent for $2,500,000 Original Principal Amount of Securities at
approximately 4:00 p.m., New York City time, on such date from at least one
independent nationally recognized securities dealer (none of which shall be an
Affiliate of the Company) selected by the Company; provided, however, that if
(a) the Bid Solicitation Agent cannot reasonably obtain at least one bid for
$2,500,000 Original Principal Amount of Securities from a nationally recognized
securities dealer or (b) in the Company's reasonable judgment, the bid
quotations are not indicative of the secondary market value of the Securities as
of such date, then the Average Security Market Price for such date shall equal
the product of (i) the Conversion Rate in effect as of such determination date
multiplied by (ii) the average Sale Price of the Common Stock for the five
Trading Days ending on such date, appropriately adjusted, without duplication,
to take into account the occurrence, during the period commencing on the first
of such Trading Days during such five Trading Day period and ending on such
determination date, of any event described in Section 11.06. 11.07, 11.08, 11.09
or 11.10 hereof (subject to the conditions set forth in Section 11.12 hereof).

                  The Accreted Principal Amount of the Securities will continue
to increase in accordance with the terms of this Indenture and the Securities
whether or not Contingent Cash Interest payments are made.

                  Section 12.02. Payment of Contingent Cash Interest; Contingent
Cash Interest Rights Preserved. If payable, Contingent Cash Interest on a
Security shall be paid to the Person who is the Holder of that Security on the
15th day preceding the last day of the applicable Semiannual Period (the
"Contingent Cash Interest Record Date"). Such payments shall be paid on the last
day of the Semiannual Period (in each case, a "Contingent Cash Interest Payment
Date"). Each payment of Contingent Cash Interest on any Security shall be paid
(A) if such Security is held in the form of a Global Note, in same-day funds by
transfer to an account maintained by the payee located inside the United States,
or (B) if such Security is held in the form of a certificated Security, by
check, mailed to the address of such Holder as set forth in the Security
Register. In the case of a Global Security, interest payable on any Contingent
Cash Interest Payment Date will be paid to the Depositary for the purpose of
permitting the Depository to credit the interest received by it in respect of
such Global Security to the accounts of the beneficial owners thereof. Upon
determination that Holders of Securities will be entitled to receive Contingent
Cash Interest during a Semiannual Period, the Company will issue a press release
and use its reasonable best efforts to post such information on its website or
through such other public medium as the Company may use at the time.

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<PAGE>

                  The Company may unilaterally increase the amount of interest
or Contingent Cash Interest it is required to pay but shall have no obligation
to do so.

                  Section 12.03. Bid Solicitation Agent. The Company shall
appoint a bid solicitation agent (the "Bid Solicitation Agent") to act pursuant
to Section 12.01 when necessary. The Company may change the Bid Solicitation
Agent at its discretion; provided, however, that the Bid Solicitation Agent may
not be an Affiliate of the Company or the Guarantor.

                                   ARTICLE 13

                                  MISCELLANEOUS

                  Section 13.01. Trust Indenture Act Controls. This Indenture is
subject to the provisions of the TIA that are required to be a part of this
Indenture, and shall, to the extent applicable, be governed by such provisions.
If any provision of this Indenture modifies any TIA provision that may be so
modified, such TIA provision shall be deemed to apply to this Indenture as so
modified. If any provision of this Indenture excludes any TIA provision that may
be so excluded, such TIA provision shall be excluded from this Indenture.

                  The provisions of TIA Sections 310 through 317 that impose
duties on any Person (including the provisions automatically deemed included
unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein.

                  Section 13.02. Notices. Any notice or communication required
or permitted hereunder to be given by the Company, the Guarantor or the Trustee
to the other is duly given if in writing and delivered in person or mailed by
first class mail (registered or certified, return receipt requested), telex,
telecopier or overnight air courier guaranteeing next day delivery, addressed as
follows:

                  If to the Company or the Guarantor:

                  c/o American Axle & Manufacturing Holdings, Inc.
                  One Dauch Drive
                  Detroit, Michigan 48211-1198
                  Facsimile:  (313) 758-3897

                  Attention:  General Counsel

                  With a copy to:

                  Shearman & Sterling LLP
                  599 Lexington Avenue
                  New York, New York 10022

                  Attention:  Lisa L. Jacobs

                  If to the Trustee:

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<PAGE>

                  BNY Midwest Trust Company
                  2 North LaSalle, Suite 1020
                  Chicago, Illinois 60602
                  Facsimile:  (312) 827-8542

                  Attn:  Corporate Trust Administration

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

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

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

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

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

                  Section 13.03. Communication by Holders of Securities with
Other Holders of Securities. Holders may communicate pursuant to TIA Section
312(b) with other Holders with respect to their rights under this Indenture or
the Securities. the Company, the Trustee, the Registrar and anyone else shall
have the protection of TIA Section 312(c).

                  Section 13.04. Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company or the Guarantor to
the Trustee to take any action under this Indenture (other than under Section
2.02 hereof unless required by the TIA), the Company or the Guarantor, as the
case may be, shall furnish to the Trustee:

                  (a) an Officers' Certificate in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof) stating that, in the opinion of the
         signers, all conditions precedent and covenants, if any, provided for
         in this Indenture relating to the proposed action have been satisfied;

                  (b) an Opinion of Counsel in form and substance reasonably
         satisfactory to the Trustee (which shall include the statements set
         forth in Section 13.05 hereof) stating that, in the opinion of such
         counsel, all such conditions precedent and covenants have been
         satisfied; and

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<PAGE>

                  (c) where applicable, a certificate or opinion by an
         independent certified public accountant satisfactory to the Trustee
         that complies with TIA Section 314(c).

                  Section 13.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

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

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

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

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

                  Section 13.06. Rules by Trustee and Agents. The Trustee may
make reasonable rules for action by or at a meeting of Holders. The Registrar or
Paying Agent may make reasonable rules and set reasonable requirements for its
functions.

                  Section 13.07. No Personal Liability of Directors, Officers,
Employees and Stockholders. No director, officer, employee, incorporator or
shareholder of the Company or the Guarantor shall have any liability for any
obligations of the Company or the Guarantor, as the case may be, under the
Securities, this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Securities by
accepting a Security waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Securities. Such
waiver may not be effective to waive liabilities under the federal securities
laws and it is the view of the SEC that such a waiver is against public policy.

                  Section 13.08. Governing Law. THE INTERNAL LAW OF THE STATE OF
NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE AND THE NOTES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

                  Section 13.09. No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Company or its Subsidiaries or of any other Person. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

                  Section 13.10. Successors. All agreements of the Company and
the Guarantor in this Indenture and the Securities shall bind their respective
successors. All agreements of the Trustee in this Indenture shall bind its
successors.

                                       69

<PAGE>

                  Section 13.11. Severability. In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

                  Section 13.12. Counterpart Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement.

                  Section 13.13. Table of Contents, Headings, Etc. The Table of
Contents, Cross-Reference Table and Headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not to
be considered a part of this Indenture and shall in no way modify or restrict
any of the terms or provisions hereof.

                         [SIGNATURES ON FOLLOWING PAGE]

                                       70

<PAGE>

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

                                    Very truly yours,

                                    AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

                                    By: /s/ MICHAEL K. SIMONTE
                                        --------------------------------------
                                        Name: MICHAEL K. SIMONTE
                                        Title: TREASURER

                                    AMERICAN AXLE & MANUFACTURING, INC.
                                        as Guarantor

                                    By: /s/  MICHAEL K. SIMONTE
                                        ---------------------------------------
                                        Name: MICHAEL K. SIMONTE
                                        Title: TREASURER

                                    BNY MIDWEST TRUST COMPANY
                                        as Trustee

                                    By: /s/ L. GARCIA
                                        ---------------------------------------
                                        Name: L. GARCIA
                                        Title: ASSISTANT VICE PRESIDENT

                                      S-1

<PAGE>

                                                                       EXHIBIT A

                                 (Face of Note)

                  AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

                        SENIOR CONVERTIBLE NOTE DUE 2024

No. 1                                                         CUSIP: 024061 AA 1
Issue Date: February 11, 2004

Issue Price: $1,000                     Original Principal Amount:  $150,000,000
(for each $1,000 of
Original Principal Amount)

                  AMERICAN AXLE & MANUFACTURING HOLDINGS, INC., a Delaware
corporation (herein called the "Company"), promises to pay to Cede & Co. or
registered assigns, the Accreted Principal Amount at Maturity on February 15,
2024. This Security is issued with an Original Principal Amount of ONE HUNDRED
AND FIFTY MILLION DOLLARS ($150,000,000).

                  This Security shall not bear interest except as specified on
the other side of this Security. The Accreted Principal Amount of this Security
will accrue as specified on the other side of this Security. This Security is
convertible as specified on the other side of this Security.

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

                         [SIGNATURES ON FOLLOWING PAGES]

<PAGE>

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

Dated: February 11, 2004

                                    AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

                                    By: /s/ MICHAEL K. SIMONTE
                                        ----------------------------------------
                                    Name: MICHAEL K. SIMONTE
                                    Title: TREASURER

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHORIZATION

This is one of the Global Securities referred to in the within-mentioned
Indenture:

Dated: February 11, 2004

                                    BNY MIDWEST TRUST COMPANY,
                                    as Trustee

                                    By: /s/ L. GARCIA
                                        ----------------------------------------
                                        (Authorized Signatory)

<PAGE>

                                 (BACK OF NOTE)

               Senior Convertible Securities Due February 15, 2024

THE NOTES WILL BE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR U.S. FEDERAL INCOME
TAX PURPOSES. THE ISSUE PRICE FOR EACH NOTE WILL BE $1,000 AND THE ISSUE DATE
FOR THE NOTES IS FEBRUARY 11, 2004. THE COMPARABLE YIELD FOR THE NOTES IS 4.58%
PER ANNUM, COMPOUNDED SEMI-ANNUALLY (WHICH WILL BE TREATED AS THE YIELD TO
MATURITY FOR U.S. FEDERAL INCOME TAX PURPOSES). FOR INFORMATION REGARDING THE
YIELD TO MATURITY ON THE NOTES, THE AMOUNT OF ORIGINAL ISSUE DISCOUNT ON THE
NOTES, AND THE PROJECTED PAYMENT SCHEDULE FOR THE NOTES, HOLDERS SHOULD CONTACT
THE GENERAL COUNSEL OF AMERICAN AXLE & MANUFACTURING HOLDINGS, INC., AT ONE
DAUCH DRIVE, DETROIT, MICHIGAN 48211-1198.

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.06 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE,
(III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT
TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO
A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

THIS SECURITY, THE COMMON STOCK INTO WHICH THE NOTES ARE CONVERTIBLE AND THE
GUARANTEE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY, THE
GUARANTEE NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED,
SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT
SUBJECT TO, REGISTRATION.

THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, (1) REPRESENTS THAT IT IS
A ""QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT), (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO
THE DATE (THE "RESALE RESTRICTION TERMINATION DATE") WHICH IS TWO YEARS AFTER
THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF ANY OF THE FOREGOING WAS THE OWNER OF THIS

                                      A-1

<PAGE>

SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT
PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON
RULE 144A, (C) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT OR (D) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, INCLUDING
UNDER RULE 144, IF AVAILABLE, SUBJECT TO THE COMPANY'S AND THE TRUSTEE'S RIGHT
PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) TO, PRIOR TO
THE RESALE RESTRICTION TERMINATION DATE, REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM,
AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM
APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE
TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE
HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

                  Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.

                  1.       Interest. American Axle & Manufacturing Holdings,
Inc., a Delaware corporation (the "Company"), promises to pay interest in cash
on the Original Principal Amount of this Security at the rate per annum of 2.00%
from the Issue Date, or from the most recent date to which interest has been
paid or provided for, until February 15, 2011. During such period, the Company
will pay cash interest semiannually in arrears on February 15 and August 15 of
each year (each an "Interest Payment Date"), beginning August 15, 2004, to
Holders of record at the close of business on each January 31 and July 31
(whether or not a business day) (each a "Regular Record Date") immediately
preceding such Interest Payment Date. Cash interest will be computed on the
basis of a 360-day year of twelve 30-day months.

                  Beginning February 15, 2011, this Security shall not bear
interest, except as specified in this paragraph or in paragraph 5 hereof. From
such date, the Original Principal Amount shall commence increasing at the rate
of 2.00% per annum to produce the Accreted Principal Amount. At Stated Maturity,
the Holder of this Security will receive $1,295.26 for each $1,000 Original
Principal Amount of Securities, which is the fully Accreted Principal Amount of
this Security on such date, unless the Security has been earlier redeemed or
converted, which for each $1,000 Original Principal Amount will be equal to such
Original Principal Amount of $1,000 per Security increased by 2.00% per year as
provided in the Indenture. The yield will be calculated using a 360-day year
composed of twelve 30-day months. If the Accreted Principal Amount hereof or any
portion of such Accreted Principal Amount is not paid when due (whether upon
acceleration pursuant to Section 6.02 of the Indenture, upon the date set for
payment of the Redemption Price pursuant to paragraph 6 hereof, upon the date
set for payment of the Purchase Price or Change in Control Purchase Price
pursuant to paragraph 7 hereof or upon the Stated

                                      A-2

<PAGE>

Maturity of this Security) or if installments of cash interest (including
Contingent Cash Interest, if any, pursuant to paragraph 5 hereof) due hereon are
not paid when due in accordance with this paragraph, then in each such case the
overdue amount shall, to the extent permitted by law, bear interest at 2.00% per
year, as the case may be, in effect following the date such overdue amount was
due, compounded semiannually, which interest shall accrue from the date such
overdue amount was originally due to the date payment of such amount, including
interest thereon, has been made or duly provided for. All such interest shall be
payable on demand. The accrual of such interest on overdue amounts shall be in
lieu of, and not in addition to, any subsequent increase in the Accreted
Principal Amount.

                   Interest on any 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 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. Each installment of interest on any Security shall
be paid in same-day funds by transfer to an account maintained by the payee
located inside the United States.

                  2.       Method of Payment. Subject to the terms and
conditions of the Indenture, the Company will make payments in respect of the
Redemption Price, Purchase Price, Change in Control Purchase Price and at Stated
Maturity to Holders who surrender Securities to a Paying Agent to collect such
payments in respect of the Securities. In addition, the Company will pay cash
interest from the Issue Date until February 15, 2011, as more fully described in
paragraph 1 hereof, and Contingent Cash Interest as more fully described in
paragraph 5 hereof. The Company will pay any cash amounts in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. However, the Company may make such cash payments by check payable
in such money.

                  If any Interest Payment Date (other than an Interest Payment
Date coinciding with the Stated Maturity or earlier Redemption Date or Purchase
Date) falls on a day that is not a Business Day, such Interest Payment Date will
be postponed to the next succeeding Business Day and no interest on such payment
will accrue for the period from and after the Interest Payment Date to such next
succeeding Business Day. If the Stated Maturity, Redemption Date, Purchase Date
or Change in Control Purchase Date of this Security would fall on a day that is
not a Business Day, the required payment of interest, if any, and principal will
be made on the next succeeding Business Day and no interest on such payment will
accrue for the period from and after the Stated Maturity, Redemption Date,
Purchase Date or Change in Control Purchase Date to such next succeeding
Business Day.

                  3.       Paying Agent, Conversion Agent, Registrar and Bid
Solicitation Agent. Initially, BNY Midwest Trust Company, the Trustee under the
Indenture, shall act as Paying Agent, Conversion Agent, Registrar and Bid
Solicitation Agent. The Company may appoint and change any Paying Agent,
Conversion Agent, Registrar or co-registrar or Bid Solicitation Agent without
notice, other than notice to the Trustee, except that the Company will maintain
at least one Paying Agent in the State of New York, City of New York, Borough of
Manhattan, which shall initially be an office or agency of the Trustee. The
Company or any of its Subsidiaries or any of their Affiliates may act as Paying
Agent, Conversion Agent, Registrar or co-registrar.

                                      A-3

<PAGE>

                  4.       Indenture. The Company issued the Securities under an
Indenture dated as of February 11, 2004 (the "Indenture") between the Company,
the Guarantor and the Trustee. The terms of the Securities include those stated
in the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbbb). The
Securities are subject to all such terms, and Holders are referred to the
Indenture and the Act for a statement of such terms. To the extent any provision
of this Security conflicts with the express provisions of the Indenture, the
provisions of the Indenture shall govern and be controlling. This Security is an
obligation of the Company limited to $150 million in aggregate Original
Principal Amount (subject to Section 2.07 of the Indenture). The Indenture does
not limit other indebtedness of the Company, secured or unsecured.

                  5.       Contingent Cash Interest. Subject to the conditions
of the Indenture and the accrual and record date provisions specified in this
paragraph 5, the Company shall pay Contingent Cash Interest to the Holders
during any Semiannual Period, with the initial six-month period commencing on
February 16, 2011, if, but only if, the Average Security Market Price of the
Securities for the five Trading Days ending on the third Trading Day immediately
preceding the first day of the applicable six-month period equals 120% or more
of the Relevant Value of such Security.

                  Contingent Cash Interest, if any, will accrue and be payable
to Holders of this Security as of the Contingent Cash Interest Record Date. The
Accreted Principal Amount of this Security will continue to increase whether or
not Contingent Cash Interest is paid.

                  The amount of Contingent Cash Interest payable per $1,000
Original Principal Amount hereof in respect of any Semiannual Period shall equal
the annual rate of 0.25% of the Average Security Market Price for the five
Trading Day measuring period.

                  Upon determination that Holders of Securities will be entitled
to receive Contingent Cash Interest during a Semiannual Period, the Company
shall issue a press release and use its reasonable efforts to post such
information on its web site or through such other public medium it may use at
the time.

                  6.       Redemption at the Option of the Company. No sinking
fund is provided for the Securities. The Securities are redeemable for cash as a
whole, or from time to time in part, at any time at the option of the Company in
accordance with the Indenture at the Redemption Prices set forth below; provided
that the Securities are not redeemable prior to February 20, 2011.

                  The table below shows Redemption Prices of a Security per
$1,000 Original Principal Amount on the dates shown below and at Stated
Maturity, which prices reflect accreted principal calculated to each such date.
The Redemption Price of a Security redeemed between such dates shall include an
additional amount reflecting the increase in the Accreted Principal Amount since
the immediately preceding date in the table to, but not including, the
Redemption Date.

                                      A-4

<PAGE>

<TABLE>
<CAPTION>
                                                                         (2)                    (3)
                                                  (1)                  ACCRETED             REDEMPTION
REDEMPTION DATE                             NOTE ISSUE PRICE       PRINCIPAL AMOUNT       PRICE (1) + (2)
---------------                             ----------------       ----------------       ---------------
<S>                                         <C>                    <C>                    <C>
February 20, 2011 ......................         $1,000                 $ 0.28               $1,000.28

February 15, 2012 ......................          1,000                  20.10                1,020.10

February 15, 2013 ......................          1,000                  40.60                1,040.60

February 15, 2014 ......................          1,000                  61.52                1,061.52

February 15, 2015 ......................          1,000                  82.86                1,082.86

February 15, 2016 ......................          1,000                 104.62                1,104.62

February 15, 2017 ......................          1,000                 126.83                1,126.83

February 15, 2018 ......................          1,000                 149.47                1,149.47

February 15, 2019 ......................          1,000                 172.58                1,172.58

February 15, 2020 ......................          1,000                 196.15                1,196.15

February 15, 2021 ......................          1,000                 220.19                1,220.19

February 15, 2022 ......................          1,000                 244.72                1,244.72

February 15, 2023 ......................          1,000                 269.73                1,269.73

At stated maturity .....................          1,000                 295.26                1,295.26
</TABLE>

                  7.       Purchase by the Company at the Option of the Holder
for Cash. Subject to the terms and conditions of the Indenture, the Company
shall become obligated to purchase, at the option of the Holder, the Securities
held by such Holder on the following Purchase Dates and at the following
Purchase Prices, plus accrued and unpaid cash interest, if any, including
Contingent Cash Interest, if any, per $1,000 Original Principal Amount, upon
delivery of a Purchase Notice containing the information set forth in the
Indenture, at any time from the opening of business on the date that is 20
Business Days prior to such Purchase Date until the close of business on the day
immediately preceding such Purchase Date and upon delivery of the Securities to
the Paying Agent by the Holder as set forth in the Indenture.

<TABLE>
<S>                                           <C>
Purchase Date                                 Purchase Price
February 20, 2011                             $1,000.28
February 15, 2014                             $1,061.52
February 15, 2019                             $1,172.58
</TABLE>

                                      A-5

<PAGE>

                  Notwithstanding anything herein or in the Indenture, the
Purchase Price (equal to the Issue Price plus increases in the Accreted
Principal Amount from the Issue Date to the Purchase Date) may only be paid in
cash.

                  At the option of the Holder and subject to the terms and
conditions of the Indenture, the Company shall become obligated to purchase the
Securities held by such Holder no later than 30 Business Days after the
occurrence of a Change in Control of the Company, but in no event prior to the
date on which such a Change in Control occurs, for a Change in Control Purchase
Price equal to the Issue Price plus increases in the Accreted Principal Amount
from February 15, 2011 and accrued and unpaid cash interest, if any, including
Contingent Cash Interest, if any, to but not including the Change in Control
Purchase Date, which Change in Control Purchase Price shall be paid in cash.

                  A third party may make the offer and purchase of the
Securities in lieu of the Company in accordance with the Indenture.

                  Holders have the right to withdraw any Purchase Notice or
Change in Control Purchase Notice, as the case may be, by delivering to the
Paying Agent a written notice of withdrawal in accordance with the provisions of
the Indenture.

                  If cash sufficient to pay the Purchase Price or Change in
Control Purchase Price, as the case may be, of all Securities or portions
thereof to be purchased as of the Purchase Date or the Change in Control
Purchase Date, as the case may be, is deposited with the Paying Agent on the
Business Day following the Purchase Date or the Change in Control Purchase Date,
as the case may be, the Accreted Principal Amount shall cease to increase and
cash interest (including Contingent Cash Interest), if any, shall cease to
accrue on such Securities (or portions thereof) on such Purchase Date or Change
in Control Purchase Date, as the case may be, and the Holder thereof shall have
no other rights as such (other than the right to receive the Purchase Price or
Change in Control Purchase Price, as the case may be, if any, upon surrender of
such Security).

                  8.       Notice of Redemption. Notice of redemption will be
mailed at least 30 days but not more than 60 days before the Redemption Date to
each Holder of Securities to be redeemed at the Holder's registered address. If
money sufficient to pay the Redemption Price of, and accrued and unpaid cash
interest, if any, with respect to, all Securities (or portions thereof) to be
redeemed on the Redemption Date is deposited with the Paying Agent prior to or
on the Redemption Date, on such Redemption Date, the Accreted Principal Amount
shall cease to increase and cash interest (including Contingent Cash Interest),
if any, shall cease to accrue on such Securities or portions thereof. Securities
in denominations larger than $1,000 of Original Principal Amount may be redeemed
in part but only in integral multiples of $1,000 of Original Principal Amount.

                  9.       Conversion.

                                      A-6

<PAGE>

                  Conversion Based on Sale Price of Common Stock. Subject to the
provisions of this paragraph 9 and notwithstanding the fact that any other
condition to conversion described below has not been satisfied, Holders may
convert the Securities into Common Stock on a Conversion Date in any fiscal
quarter commencing at any time after March 31, 2004, if, as of the last day of
the preceding fiscal quarter, the Sale Price of the Common Stock for at least 20
Trading Days in a period of 30 consecutive Trading Days ending on the last
Trading Day of the most recently ended fiscal quarter, is greater than the
conversion trigger price per share. The "conversion trigger price" for any
fiscal quarter shall be 125% of the accreted conversion price per share
(calculated without giving effect to accrued cash interest, if any) of Common
Stock on the last day of such fiscal quarter. Once the foregoing condition is
satisfied for any one fiscal quarter, then the Securities will thereafter be
convertible at any time at the option of the Holder, through their maturity.

                  The "accreted conversion price per share" of Common Stock as
of any day equals the quotient of:

                  -        the Issue Price plus any increases in the Accreted
                           Principal Amount from February 15, 2011, if any, to
                           that day; divided by

                  -        the Conversion Rate then in effect.

                  Such accreted conversion price shall be calculated by the
Company in accordance with Article 11 of the Indenture.

                  Conversion Upon Credit Ratings Downgrade. Subject to the
provisions of this paragraph 9 and the Indenture and notwithstanding the fact
that any other condition to conversion has not been satisfied, the Securities
shall be convertible into Common Stock at the election of a Holder on a
Conversion Date at any time that the credit rating assigned to the Securities by
Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies Inc.
and its successors is BB or lower and Moody's Investors Service Inc. and its
successors is Ba2 or lower. The Securities will cease to be convertible pursuant
to this paragraph during any period or periods in which either rating increases
above the stated level.

                  Conversion upon Redemption. Subject to the provisions of this
paragraph 9 and notwithstanding the fact that any other condition described
herein to conversion has not been satisfied, a Holder may convert into Common
Stock a Security or portion of a Security which has been called for redemption
pursuant to paragraph 6 hereof, but such Securities may be surrendered for
conversion only until the close of business on the second Business Day
immediately preceding the Redemption Date.

                  Conversion Upon Certain Distributions. Subject to the
provisions of this paragraph 9 and notwithstanding the fact that any other
condition to conversion has not been satisfied, in the event that the Company
declares a dividend or distribution described in Section 11.07 of the Indenture,
or a dividend or a distribution described in Section 11.08 of the Indenture and,
in the case of a dividend or distribution described in Section 11.08 of the
Indenture, the sum of (a) the Fair Market Value, per share, of such dividend or
distribution per share of Common Stock, and (b) the quotient of (1) the amount
of Contingent Cash Interest paid on the Securities

                                      A-7

<PAGE>

during the Measurement Period divided by (2) the number of shares of Common
Stock issuable upon conversion of Securities at the Conversion Rate in effect at
the Ex-Dividend Time, as determined in the Indenture, exceeds 15% of the Sale
Price of the Common Stock on the Business Day immediately preceding the date of
declaration for such dividend or distribution, the Securities may be surrendered
for conversion beginning on the date the Company gives notice to the Holders of
such right, which shall not be less than 20 days prior to the Ex-Dividend Time
for such dividend or distribution, and Securities may be surrendered for
conversion at any time thereafter until the close of business on the Business
Day prior to the Ex-Dividend Time or until the Company announces that such
dividend or distribution will not take place. For the purposes of this
paragraph, the "Measurement Period" with respect to a dividend on the Common
Stock shall mean the 365 consecutive day period ending on the date prior to the
Ex-Dividend Time with respect to such dividend.

                  Conversion Upon Occurrence of Certain Corporate Transactions.
Subject to the provisions of this paragraph 9 and notwithstanding the fact that
any other condition described herein to conversion has not been satisfied, in
the event the Company is a party to a consolidation, merger, binding share
exchange or transfer of all or substantially all of its assets pursuant to which
the Common Stock would be converted into cash, securities or other property as
set forth in Section 11.16 of the Indenture, the Securities may be surrendered
for conversion at any time from and after the date which is 15 days prior to the
date announced by the Company as the anticipated effective time until 15 days
after the actual effective date of such transaction, and at the effective time
of such transaction the right to convert a Security into Common Stock will be
deemed to have changed into a right to convert it into the kind and amount of
cash, securities or other property which the Holder would have received if the
Holder had converted its Security immediately prior to the transaction.

                  A Security in respect of which a Holder has delivered a
Purchase Notice or Change in Control Purchase Notice exercising the option of
such Holder to require the Company to purchase such Security may be converted
only if such notice of exercise is withdrawn in accordance with the terms of the
Indenture.

                  The initial Conversion Rate is 18.0421 shares of Common Stock
per $1,000 Original Principal Amount, subject to adjustment in the case of
certain events described in the Indenture. The Company will deliver cash or a
check in lieu of any fractional share of Common Stock. The ability to surrender
Securities for conversion will expire at the close of business on February 14,
2024.

                  A Holder's right to convert the Securities into Common Stock
is also subject to the Company's right to elect to pay such Holder cash in lieu
of delivering shares of Common Stock in accordance with Article 11 of the
Indenture. If the Company shall elect to make such payment in shares of Common
Stock or a combination of cash and Common Stock, the Company shall deliver
notice to the Holder through the Conversion Agent, no later than two Business
Days following receipt of a conversion notice.

                  Securities surrendered for conversion during the period from
the close of business on any Regular Record Date next preceding any Interest
Payment Date to the opening of business on such Interest Payment Date shall be
entitled to receive such interest payable on such

                                      A-8

<PAGE>

Securities on the corresponding Interest Payment Date and (except Securities
with respect to which the Company has mailed a notice of redemption) Securities
surrendered for conversion during such periods must be accompanied by payment of
an amount equal to the interest that the registered Holder is to receive.

                  To convert a Security, a Holder must (a) complete and manually
sign the conversion notice (or complete and manually sign a facsimile of such
notice) and deliver such notice to the Conversion Agent, (b) surrender the
Security to the Conversion Agent, (c) furnish appropriate endorsements and
transfer documents if required by the Conversion Agent, the Company or the
Trustee and (d) pay any transfer or similar taxes, if required.

                  A Holder may convert a portion of a Security if the Original
Principal Amount of such portion is $1,000 or an integral multiple of $1,000. No
payment or adjustment will be made for dividends on the Common Stock except as
provided in the Indenture. On conversion of a Security, increases in the
Accreted Principal Amount and any accrued and unpaid cash interest, including
Contingent Cash Interest, attributable to the period from the Issue Date through
the Conversion Date shall not be cancelled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the Holder thereof through the
delivery of the Common Stock (or cash in lieu thereof) (together with the cash
payment, if any, in lieu of fractional shares) in exchange for the Security
being converted pursuant to the terms hereof; and the Fair Market Value of such
shares of Common Stock (or cash in lieu thereof) (together with any such cash
payment in lieu of fractional shares) shall be treated as issued, to the extent
thereof, first in exchange for increases in Accreted Principal Amount and any
accrued and unpaid cash interest, including Contingent Cash Interest, accrued
through the Conversion Date, and the balance, if any, of such Fair Market Value
of such Common Stock (and any such cash payments) shall be treated as issued in
exchange for the Issue Price of the Security being converted pursuant to the
provisions hereof.

                  The Conversion Rate will be adjusted in accordance with
Article 11 of the Indenture for dividends or distributions on Common Stock
payable in Common Stock or other Capital Stock; subdivisions, combinations or
certain reclassifications of Common Stock; distributions to all holders of
Common Stock of certain rights to purchase Common Stock for a period expiring
within 60 days of the Issue Date at less than the Sale Price of the Common Stock
at the Time of Determination; distributions to such holders of assets or debt
securities of the Company or certain rights to purchase securities of the
Company (excluding certain cash dividends or distributions) and certain rights
pursuant to stockholder rights plans; certain dividends or distributions of
cash; and certain tender offers or exchange offers. The Company from time to
time may voluntarily increase the Conversion Rate.

                  If the Company is a party to a consolidation, merger or
binding share exchange or a transfer of all or substantially all of its assets,
or upon certain distributions described in the Indenture, the right to convert a
Security into Common Stock may be changed into a right to convert it into
securities, cash or other assets of the Company or another person.

                  10.      Denominations, Transfer, Exchange. The Securities are
in registered form without coupons in denominations of $1,000 Original Principal
Amount and integral multiples of $1,000. The transfer of Securities may be
registered and Securities may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other

                                      A-9

<PAGE>

things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the
transfer of any Security or portion of a Security selected for redemption,
except for the unredeemed portion of any Security being redeemed in part. Also,
the Company need not exchange or register the transfer of any Securities for a
period of 15 days before a selection of Securities to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

                  11.      Persons Deemed Owners. The registered Holder of a
Security may be treated as its owner for all purposes.

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

                  (8)      Defaults and Remedies. Events of Default include: (a)
default in the payment of any principal amount (including the Accreted Principal
Amount) at maturity or any Redemption Price, Purchase Price, or Change in
Control Purchase Price due with respect to the Securities, when the same become
due and payable; (b) default in payment of any interest (including Contingent
Cash Interest) under the Securities, which default continues for 30 days; (c)
the Guarantee ceases to be in full force and effect or is declared null and void
or the Guarantor denies that it has any further liability under its guarantee to
the Security Holders, or has given notice to such effect (other than by reason
of the termination of this Indenture or the release of such guarantee in
accordance with this Indenture), and such condition shall have continued for
period of 30 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 Original Principal Amount of the outstanding Securities 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; (d) default in
the performance, or breach, of any covenant or warranty of the Company or the
Guarantor in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with), and continuance of such default or breach for a period of 30 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
Original Principal Amount of the outstanding Securities 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, (e) default in the payment
of principal when due or resulting in acceleration of other Indebtedness of the
Company, the Guarantor or any Significant Subsidiary for borrowed money where
the aggregate principal amount with respect to which the

                                      A-10

<PAGE>

default or acceleration has occurred exceeds $50 million and such acceleration
has not been rescinded or annulled or such Indebtedness repaid within a period
of 30 days after written notice to the Company by the Trustee or to the Company
and the Trustee by the Holders of at least 25% in principal amount at maturity
of the Securities then outstanding; provided that if any such default is cured,
waived, rescinded or annulled, then the Event of Default by reason thereof would
be deemed not to have occurred; and (f) certain events of bankruptcy or
insolvency affecting the Company or the Guarantor.

                  If an Event of Default occurs and is continuing, then in every
such case the Trustee or the Holders of not less than 25% in Original Principal
Amount of the Securities then outstanding may declare the Accreted Principal
Amount of all of the Securities and any accrued and unpaid cash interest and
Contingent Cash Interest, if any, through the date of such declaration, to be
due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such Accreted
Principal Amount and any accrued and unpaid cash interest and Contingent Cash
Interest, if any, shall become immediately due and payable.

                  At any time after such a declaration of acceleration with
respect to the Securities has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Section provided, the Holders of a majority in Original Principal Amount of the
outstanding Securities, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if upon satisfaction of
the conditions specified in the Indenture.

                  If an Event of Default described in clause (f) above occurs
and is continuing, then the Accreted Principal Amount of all the Securities
issued under the Indenture and then outstanding, together with any accrued
interest and Contingent Cash Interest, if any, through the occurrence of such
Event of Default, shall become and be due and payable immediately, without any
declaration or other act by the Trustee or any other Holder.

                  No such waiver or rescission and annulment shall affect any
subsequent Default or impair any right consequent thereon.

                  13.      Trustee Dealings with the Company and the Guarantor.
The Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company, the Guarantor or their
respective Affiliates, and may otherwise deal with the Company, the Guarantor or
their respective Affiliates, as if it were not the Trustee.

                  14.      No Recourse Against Others. No director, officer,
employee, incorporator or shareholder of the Company or the Guarantor, as such,
shall have any liability for any obligations of the Company or the Guarantor, as
the case may be, under the Securities or the Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Securities by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Securities. Such waiver may not be effective to waive liabilities under the
federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

                                      A-11

<PAGE>

                  15.      Authentication. This Security shall not be valid
until authenticated by the manual signature of the Trustee or an authenticating
agent.

                  16.      Abbreviations. Customary abbreviations may be used in
the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

                  17.      Additional Rights of Holders of Restricted Global
Securities. In addition to the rights provided to Holders of Securities under
the Indenture, Holders of Restricted Global Securities shall have all the rights
set forth in the Registration Rights Agreement, dated as of February 11, 2004,
between the Company, the Guarantor and each of the parties named on the
signature pages thereof (the "Registration Rights Agreement").

                  18.      CUSIP Numbers. Pursuant to a recommendation
promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused CUSIP numbers to be printed on the Securities and the Trustee
may use CUSIP numbers in notices of redemption as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on
the Securities or as contained in any notice of redemption and reliance may be
placed only on the other identification numbers placed thereon.

                  19.      Guarantee. The Company's obligations under the
Securities are fully and unconditionally guaranteed by the Guarantor.

                  The Company shall furnish to any Holder upon written request
and without charge a copy of the Indenture and/or the Registration Rights
Agreement. Requests may be made to:

                  American Axle & Manufacturing the Company, Inc.
                  One Dauch Drive
                  Detroit, Michigan 48211-1198
                  Facsimile: (313) 758-3897
                  Attention: General Counsel

                                      A-12

<PAGE>

                                 ASSIGNMENT FORM

To assign this Security, fill in the form below: (I) or (we) assign and transfer
this Security to

                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

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

--------------------------------------------------------------------------------
(Print or type assignee's name, address and zip code)
--------------------------------------------------------------------------------
and irrevocably appoint---------------------------------------------------------
to transfer this Security on the books of the Company.  The agent may substitute
another to act for him.
--------------------------------------------------------------------------------

Date:
     ---------------

                                           Your Signature:
                                                          ----------------------
                                           (Sign exactly as your name appears on
                                            the face of this Security)
SIGNATURE GUARANTEE.

                                      A-13

<PAGE>

                                CONVERSION NOTICE

To convert this Security into Common Stock of the Company, check the box: [ ]

To convert only part of this Security, state the Original Principal Amount to be
converted (which must be $1,000 or an integral multiple of $1,000):

$_______________________________________________________________________________

If you want the stock certificate made out in another person's name, fill in the
form below:

________________________________________________________________________________

________________________________________________________________________________

(Insert other person's soc. sec. or tax ID no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________
(Print or type other person's name, address and zip code)

________________________________________________________________________________

Date: _____________________ Your Signature: ____________________________________

________________________________________________________________________________
(SIGN EXACTLY AS YOUR NAME APPEARS ON THE OTHER SIDE OF THIS SECURITY)

                                      A-14

<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

American Axle & Manufacturing the Company, Inc.
One Dauch Drive
Detroit, Michigan 48211-1198
Facsimile: (313) 758-3897

Attention: General Counsel

BNY Midwest Trust Company
101 Barclay Street, Fl. 8W
New York, NY 10286
Facsimile: (212) 815-5707

Attn:  Corporate Trust Administration

                  Re: Senior Convertible Securities due 2024

                  Reference is hereby made to the Indenture, dated as of
February 11, 2004 (the "Indenture"), between American Axle & Manufacturing
Holdings, Inc., as issuer ("the Company"), American Axle & Manufacturing, Inc.,
as guarantor and BNY Midwest Trust Company, as trustee. Capitalized terms used
but not defined herein shall have the meanings given to them in the Indenture.

                  ______________ (the "Transferor") owns and proposes to
transfer the Security[s] or interest in such Security[s] specified in Annex A
hereto, in the principal amount of $___________ in such Security[s] or interests
(the "Transfer"), to __________ (the "Transferee"), as further specified in
Annex A hereto. In connection with the Transfer, the Transferor hereby certifies
that:

                  [CHECK ALL THAT APPLY]

                  1.       [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN THE 144A GLOBAL SECURITY OR A DEFINITIVE SECURITY
PURSUANT TO RULE 144A. The Transfer is being effected pursuant to and in
accordance with Rule 144A under the United States Securities Act of 1933, as
amended (the "Securities Act"), and, accordingly, the Transferor hereby further
certifies that the beneficial interest or Definitive Security is being
transferred to a Person that the Transferor reasonably believed and believes is
purchasing the beneficial interest or Definitive Security for its own account,
or for one or more accounts with respect to which such Person exercises sole
investment discretion, and such Person and each such account is a "qualified
institutional buyer" within the meaning of Rule 144A in a transaction meeting
the requirements of Rule 144A and such Transfer is in compliance with any
applicable blue sky securities laws of

                                      B-1

<PAGE>

any state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Security will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the 144A Global Security
and/or the Definitive Security and in the Indenture and the Securities Act.

                  2.       [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL SECURITY OR OF AN UNRESTRICTED
DEFINITIVE SECURITY.

                  (a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The
Transfer is being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Security will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Securities, on Restricted Definitive Securities and in the Indenture.

                  (b) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i)
The Transfer is being effected pursuant to and in compliance with an exemption
from the registration requirements of the Securities Act other than Rule 144 and
in compliance with the transfer restrictions contained in the Indenture and any
applicable blue sky securities laws of any state of the United States and (ii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Security will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Securities or
Restricted Definitive Securities and in the Indenture.

                  This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.

                                    [Insert Name of Transferor]

                                    By:_________________________________________
                                       Name:
                                       Title:

Dated:  _____________,____

                                      B-2

<PAGE>

                       ANNEX A TO CERTIFICATE OF TRANSFER

         1.       The Transferor owns and proposes to transfer the following:

                            [CHECK ONE OF (a) OR (b)]

         (a)      a beneficial interest in the 144A Global Security (CUSIP
                  _________), or

         (b)      a Restricted Definitive Security.

         2.       After the Transfer the Transferee will hold:

                                   [CHECK ONE]

         (a)      a beneficial interest in the:

                  (i)      144A Global Security (CUSIP ), or

                  (ii)     Unrestricted Global Security (CUSIP ); or

         (b)      a Restricted Definitive Security; or

         (c)      an Unrestricted Definitive Security,

         in accordance with the terms of the Indenture.

                                      B-3

<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

American Axle & Manufacturing the Company, Inc.
One Dauch Drive
Detroit, Michigan 48211-1198
Facsimile:  (313) 758-3897

Attention:  General Counsel

BNY Midwest Trust Company
101 Barclay Street, Fl. 8W
New York, NY  10286
Facsimile:  (212) 815-5707

Attn: Corporate Trust Administration

                  Re: Senior Convertible Notes due 2024

                              (CUSIP______________)

Reference is hereby made to the Indenture, dated as of February 11, 2004 (the
"Indenture"), between American Axle & Manufacturing Holdings, Inc., as issuer
("the Company"), American Axle & Manufacturing, Inc., as guarantor, and BNY
Midwest Trust Company, as trustee. Capitalized terms used but not defined herein
shall have the meanings given to them in the Indenture.

____________ (the "Owner") owns and proposes to exchange the Security[s] or
interest in such Security[s] specified herein, in the principal amount of
$____________ in such Security[s] or interests (the "Exchange"). In connection
with the Exchange, the Owner hereby certifies that:

                  EXCHANGE OF RESTRICTED DEFINITIVE SECURITIES OR BENEFICIAL
INTERESTS IN A RESTRICTED GLOBAL SECURITY FOR UNRESTRICTED DEFINITIVE SECURITIES
OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL SECURITY

                  (a)      [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN
         A RESTRICTED GLOBAL SECURITY TO BENEFICIAL INTEREST IN AN UNRESTRICTED
         GLOBAL SECURITY. In connection with the Exchange of the Owner's
         beneficial interest in a Restricted Global Security for a beneficial
         interest in an Unrestricted Global Security in an equal principal
         amount, the Owner hereby certifies (i) the beneficial interest is being
         acquired for the Owner's own account without transfer, (ii) such
         Exchange has been effected in compliance with the transfer restrictions
         applicable to the Global Securities and pursuant to and in accordance
         with the United States Securities Act of 1933, as amended (the

                                      C-1

<PAGE>

         "Securities Act"), (iii) the restrictions on transfer contained in the
         Indenture and the Private Placement Legend are not required in order to
         maintain compliance with the Securities Act and (iv) the beneficial
         interest in an Unrestricted Global Security is being acquired in
         compliance with any applicable blue sky securities laws of any state of
         the United States.

                  (b)      [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN
         A RESTRICTED GLOBAL SECURITY TO UNRESTRICTED DEFINITIVE SECURITY. In
         connection with the Exchange of the Owner's beneficial interest in a
         Restricted Global Security for an Unrestricted Definitive Security, the
         Owner hereby certifies (i) the Definitive Security is being acquired
         for the Owner's own account without transfer, (ii) such Exchange has
         been effected in compliance with the transfer restrictions applicable
         to the Restricted Global Securities and pursuant to and in accordance
         with the Securities Act, (iii) the restrictions on transfer contained
         in the Indenture and the Private Placement Legend are not required in
         order to maintain compliance with the Securities Act and (iv) the
         Definitive Security is being acquired in compliance with any applicable
         blue sky securities laws of any state of the United States.

                  This certificate and the statements contained herein are made
for your benefit and the benefit of the Company.

                             [Insert Name of Owner]

                                             By: _______________________________
                                                 Name:
                                                 Title:

Dated:  ________________, ____

                                      C-2

<PAGE>

                                                                       EXHIBIT D

                                FORM OF GUARANTEE

                  American Axle & Manufacturing, Inc. (the "Guarantor," which
term includes any successor Person under the Indenture dated as of February 11,
2004 among American Axle & Manufacturing Holdings, Inc., as issuer, the
Guarantor and BNY Midwest Trust Company, as trustee (the "Indenture")) has
unconditionally guaranteed, to the extent set forth in the Indenture and subject
to the provisions of the Indenture, the due and punctual payment of the
principal of and interest or liquidated damages on the Securities, when and as
the same shall become due and payable, whether at maturity, redemption,
repayment or otherwise, all in accordance with the terms set forth in Article 8
of the Indenture.

                  The obligation of the undersigned to the Holders of the
Securities and to the Trustee pursuant to this Guarantee and in the Indenture
are expressly set forth in the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee and all of the other provisions
of the Indenture to which this Guarantee relates.

                  THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
OR INSTRUMENTS ENTERED INTO AND, IN EACH CASE, PERFORMED IN SAID STATE.

                          [SIGNATURE ON FOLLOWING PAGE]

                                      E-1

<PAGE>

                  IN WITNESS WHEREOF, the Guarantor has caused this instrument
to be duly executed.

Dated: February 11, 2004

                                            By and on Behalf of:

                                            AMERICAN AXLE & MANUFACTURING, INC.

                                            By: /s/ MICHAEL K. SIMONTE
                                                --------------------------------
                                                Name: MICHAEL K. SIMONTE
                                                Title: TREASURER

                                       E-2

<PAGE>

                                                                         ANNEX A

                           PROJECTED PAYMENT SCHEDULE*

Comparable Yield = 4.58%, compounded semi-annually

<TABLE>
<CAPTION>
         YEARS 1-7                              YEARS 8-14                             YEARS 15-20
         ---------                              ----------                             -----------
              PROJECTED PAYMENT                        PROJECTED PAYMENT                       PROJECTED PAYMENT
             PER $1,000 PRINCIPAL                     PER $1,000 PRINCIPAL                    PER $1,000 PRINCIPAL
   DATE        AMOUNT OF NOTE             DATE           AMOUNT OF NOTE          DATE           AMOUNT OF NOTE
   ----        --------------             ----           --------------          ----           --------------
<S>          <C>                       <C>            <C>                      <C>            <C>
8/15/2004           $10.00             8/15/2011              $1.71            8/15/2018            $    3.43
2/15/2005           $10.00             2/15/2012              $1.79            2/15/2019            $    3.61
8/15/2005           $10.00             8/15/2012              $1.89            8/15/2019            $    3.79
2/15/2006           $10.00             2/15/2013              $1.98            2/15/2020            $    3.99
8/15/2006           $10.00             8/15/2013              $2.08            8/15/2020            $    4.19
2/15/2007           $10.00             2/15/2014              $2.19            2/15/2021            $    4.41
8/15/2007           $10.00             8/15/2014              $2.30            8/15/2021            $    4.63
2/15/2008           $10.00             2/15/2015              $2.42            2/15/2022            $    4.87
8/15/2008           $10.00             8/15/2015              $2.54            8/15/2022            $    5.12
2/15/2009           $10.00             2/15/2016              $2.68            2/15/2023            $    5.38
8/15/2009           $10.00             8/15/2016              $2.81            8/15/2023            $    5.65
2/15/2010           $10.00             2/15/2017              $2.96            2/15/2024            $5,258.02
8/15/2010           $10.00             8/15/2017              $3.11
2/15/2011           $10.00             2/15/2018              $3.27
</TABLE>

------------------
*        PROJECTED PAYMENT SCHEDULE BASED ON FIXED RATE EQUIVALENT YIELD TO
         MATURITY OF 2.0% PER ANNUM. ASSUMES 20 YEAR MATURITY, 40% CONVERSION
         PREMIUM, $38.59 STOCK PRICE, PUTS IN YEAR 7, 10 AND 15, AND SEVEN YEARS
         OF CALL PROTECTION. ASSUMES CONTINGENT INTEREST FOR ANY SIX-MONTH
         PERIOD OF 0.25% OF THE MARKET PRICE OF A NOTE PER ANNUM IF THE MARKET
         PRICE OF A NOTE EXCEEDS 120% OF THE SUM OF THE ISSUE PRICE PLUS
         ACCRETED PRINCIPAL AMOUNT AND ACCRUED CASH INTEREST, IF ANY.

                                      E-3<PAGE>

                                                                   EXHIBIT 10.40

                                                                  EXECUTION COPY

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

                                CREDIT AGREEMENT

                                   dated as of

                                 January 9, 2004

                                      among

                      AMERICAN AXLE & MANUFACTURING, INC.,

                  AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.,

                            The Lenders Party Hereto

                                       and

                              JPMORGAN CHASE BANK,
                             as Administrative Agent

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

                           J.P. MORGAN SECURITIES INC.

                                       and

                         BANC OF AMERICA SECURITIES LLC,

                  as Joint Lead Arrangers and Joint Bookrunners

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                    Page
                                                                                    ----
<S>                                                                                 <C>

                                    ARTICLE I

                                   Definitions

SECTION 1.01.     Defined Terms.................................................      1
SECTION 1.02.     Types of Loans and Borrowings.................................     22
SECTION 1.03.     Terms Generally...............................................     22
SECTION 1.04.     Accounting Terms; GAAP........................................     22

                                   ARTICLE II

                                   The Credits

SECTION 2.01.     Commitments...................................................     23
SECTION 2.02.     Loans and Borrowings..........................................     23
SECTION 2.03.     Requests for Revolving Borrowings.............................     24
SECTION 2.04.     Swingline Loans...............................................     25
SECTION 2.05.     Letters of Credit.............................................     26
SECTION 2.06.     Funding of Borrowings.........................................     31
SECTION 2.07.     Interest Elections............................................     32
SECTION 2.08.     Termination and Reduction of Commitments......................     33
SECTION 2.09.     Repayment of Loans; Evidence of Debt..........................     34
SECTION 2.10.     Prepayment of Loans...........................................     35
SECTION 2.11.     Fees..........................................................     35
SECTION 2.12.     Interest......................................................     36
SECTION 2.13.     Alternate Rate of Interest....................................     37
SECTION 2.14.     Increased Costs...............................................     38
SECTION 2.15.     Break Funding Payments........................................     40
SECTION 2.16.     Taxes.........................................................     40
SECTION 2.17.     Payments Generally; Pro Rata Treatment; Sharing of Set-offs...     43
SECTION 2.18.     Additional Reserve Costs......................................     44
SECTION 2.19.     Mitigation Obligations; Replacement of Lenders................     45
SECTION 2.20.     Redenomination of Sterling....................................     46
SECTION 2.21.     Assigned Dollar Value.........................................     46

                                   ARTICLE III

                         Representations and Warranties

SECTION 3.01.     Organization; Powers..........................................     47
SECTION 3.02.     Authorization; Enforceability.................................     47
</TABLE>

<PAGE>

                                                                               2

<TABLE>
<S>                                                                                 <C>
SECTION 3.03.     Governmental Approvals; No Conflicts..........................     48
SECTION 3.04.     Financial Condition; No Material Adverse Change...............     48
SECTION 3.05.     Litigation and Environmental Matters..........................     48
SECTION 3.06.     Compliance with Laws and Agreements...........................     49
SECTION 3.07.     Investment Company Status.....................................     49
SECTION 3.08.     Taxes.........................................................     49
SECTION 3.09.     ERISA.........................................................     49
SECTION 3.10.     Disclosure....................................................     49
SECTION 3.11.     Subsidiaries..................................................     50

                                   ARTICLE IV

                                   Conditions

SECTION 4.01.     Effective Date................................................     50
SECTION 4.02.     Each Credit Event.............................................     51

                                    ARTICLE V

                              Affirmative Covenants

SECTION 5.01.     Financial Statements and Other Information....................     52
SECTION 5.02.     Notices of Material Events....................................     53
SECTION 5.03.     Existence; Conduct of Business................................     54
SECTION 5.04.     Payment of Obligations........................................     54
SECTION 5.05.     Maintenance of Properties; Insurance..........................     54
SECTION 5.06.     Books and Records; Inspection Rights..........................     54
SECTION 5.07.     Compliance with Laws..........................................     55
SECTION 5.08.     Use of Proceeds and Letters of Credit.........................     55
SECTION 5.09.     Additional Guarantors.........................................     55

                                   ARTICLE VI

                               Negative Covenants

SECTION 6.01.     Indebtedness..................................................     55
SECTION 6.02.     Liens.........................................................     56
SECTION 6.03.     Fundamental Changes...........................................     57
SECTION 6.04.     Investments, Loans, Advances, Guarantees and Acquisitions.....     58
SECTION 6.05.     Transactions with Affiliates..................................     58
SECTION 6.06.     Restrictive Agreements........................................     59
SECTION 6.07.     Leverage Ratio................................................     59
SECTION 6.08.     Net Worth.....................................................     59
</TABLE>

<PAGE>

                                                                               3

<TABLE>
<S>                                                                                 <C>

                                   ARTICLE VII

                                Events of Default

                                  ARTICLE VIII

                            The Administrative Agent

                                   ARTICLE IX

                                  Miscellaneous

SECTION 9.01.     Notices.......................................................     64
SECTION 9.02.     Waivers; Amendments...........................................     65
SECTION 9.03.     Expenses; Indemnity; Damage Waiver............................     66
SECTION 9.04.     Successors and Assigns........................................     68
SECTION 9.05.     Survival......................................................     71
SECTION 9.06.     Counterparts; Integration; Effectiveness......................     71
SECTION 9.07.     Severability..................................................     71
SECTION 9.08.     Right of Setoff...............................................     71
SECTION 9.09.     Governing Law; Jurisdiction; Consent to Service of Process....     72
SECTION 9.10.     WAIVER OF JURY TRIAL..........................................     73
SECTION 9.11.     Judgment Currency.............................................     73
SECTION 9.12.     Headings......................................................     73
SECTION 9.13.     Confidentiality...............................................     74
SECTION 9.14.     Interest Rate Limitation......................................     74
</TABLE>

SCHEDULES:

Schedule 2.01 -- Commitments

Schedule 3.05 -- Disclosed Matters

Schedule 3.11 -- Subsidiaries

Schedule 6.01 -- Existing Indebtedness

Schedule 6.02 -- Existing Liens

Schedule 6.05 -- Existing Transactions with Affiliates

Schedule 6.06 -- Existing Restrictions

EXHIBITS:

<PAGE>

                                                                               4

Exhibit A -- Form of Guarantee Agreement

Exhibit B -- Form of Assignment and Assumption

Exhibit C-1 -- Form of Opinion of General Counsel to the Borrower

Exhibit C-2 -- Form of Opinion of Shearman & Sterling LLP

Exhibit D -- Mandatory Costs Rate

<PAGE>

                                 CREDIT AGREEMENT dated as of January 9, 2004
                           among AMERICAN AXLE & MANUFACTURING, INC., AMERICAN
                           AXLE & MANUFACTURING HOLDINGS, INC., the LENDERS
                           party hereto, and JPMORGAN CHASE BANK, as
                           Administrative Agent.

                  The parties hereto agree as follows:

                                   ARTICLE I

                                   Definitions

                  SECTION 1.01. Defined Terms. As used in this Agreement, the
following terms have the meanings specified below:

                  "ABR", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.

                  "Account" means, collectively, (a) an "account" as such term
is defined in the Uniform Commercial Code as in effect from time to time in the
State of New York or under other relevant law, (b) a "payment intangible" as
such term is defined in the Uniform Commercial Code as in effect from time to
time in the State of New York or under other relevant law, and (c) the Parent's
or any Subsidiary's rights to payment for goods sold or leased or services
performed or rights to payment in respect of any monetary obligation owed to the
Parent or any Subsidiary, including all such rights evidenced by an account,
note, contract, security agreement, chattel paper, or other evidence of
indebtedness or security.

                  "Acquired/Disposed EBITDA" means, with respect to any Acquired
Entity or Business or any Sold Entity or Business (any of the foregoing, a "Pro
Forma Entity") for any period, the Consolidated Net Income of such Pro Forma
Entity for such period plus (a) without duplication and to the extent deducted
in determining such Consolidated Net Income for such Pro Forma Entity, the sum
of (i) income tax expense for such period, (ii) gross interest expense for such
period (including interest-equivalent costs associated with any Permitted
Receivables Financing, whether accounted for as interest expense or loss on the
sale of Receivables), (iii) depreciation and amortization expense for such
period, (iv) any special charges and any extraordinary or nonrecurring losses
for such period and (v) other non-cash items reducing Consolidated Net Income
for such period, and minus (b) without duplication and to the extent included in
determining Consolidated Net Income, (i) interest income for such period, (ii)
extraordinary or nonrecurring gains for such period and (iii) other noncash
items increasing Consolidated Net Income for such period, all determined on a
consolidated basis for such Pro Forma Entity in accordance with GAAP.

                  "Acquired Entity or Business" has the meaning assigned to such
term in the definition of "Consolidated EBITDA".
<PAGE>

                                                                               2

                  "Adjusted EURIBO Rate" means, with respect to any Eurodollar
Borrowing denominated in Euro for any Interest Period, an interest rate per
annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to (a) the
EURIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate.

                  "Adjusted LIBO Rate" means, with respect to any Eurodollar
Borrowing (other than a Eurodollar Borrowing denominated in Euro) for any
Interest Period, an interest rate per annum (rounded upwards, if necessary, to
the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.

                  "Administrative Agent" means JPMorgan Chase Bank, in its
capacity as administrative agent for the Lenders hereunder.

                  "Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.

                  "Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.

                  "Alternate Base Rate" means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change
in the Alternate Base Rate due to a change in the Prime Rate or the Federal
Funds Effective Rate shall be effective from and including the effective date of
such change in the Prime Rate or the Federal Funds Effective Rate, respectively.
If for any reason the Administrative Agent shall have determined that it is
unable after due inquiry to ascertain the Federal Funds Effective Rate for any
reason, including the inability or failure of the Administrative Agent to obtain
sufficient quotations in accordance with the terms hereof, the Alternate Base
Rate shall be determined without regard to clause (b) of the first sentence of
this definition until the circumstances giving rise to such inability no longer
exist.

                  "Alternative Currency" means Sterling or Euro.

                  "Alternative Currency Borrowing" means a Borrowing comprised
of Alternative Currency Loans.

                  "Alternative Currency Equivalent" means, with respect to an
amount in Dollars on any date in relation to a specified Alternative Currency,
the amount of such specified Alternative Currency that may be purchased with
such amount of Dollars at the Spot Exchange Rate with respect to such
Alternative Currency on such date.

                  "Alternative Currency Letter of Credit" means a Letter of
Credit denominated in an Alternative Currency.

                  "Alternative Currency Loan" means any Revolving Loan
denominated in an Alternative Currency.
<PAGE>

                                                                               3

                  "Applicable Percentage" means, with respect to any Lender, the
percentage of the total Commitments represented by such Lender's Commitment. If
the Commitments have terminated or expired, the Applicable Percentages shall be
determined based upon the Commitments most recently in effect, giving effect to
any assignments.

                  "Applicable Rate" means, for any day, with respect to any ABR
Loan or Eurodollar Revolving Loan, or with respect to the commitment fees
payable hereunder, as the case may be, the applicable rate per annum set forth
below under the caption "ABR Spread", "Eurodollar Spread" or "Commitment Fee
Rate", as the case may be, based upon the ratings by Moody's and S&P,
respectively, applicable on such date to the Index Debt:

<TABLE>
<CAPTION>
                   Index Debt                                Eurodollar    Commitment
                    Ratings                   ABR Spread       Spread       Fee Rate
                    -------                   ----------       ------       --------
<S>               <C>                         <C>            <C>           <C>
Category 1        > or = BBB+/Baa1              0.00%          0.625%        0.150%

Category 2        > or = BBB/Baa2               0.00%           1.00%        0.200%

Category 3        > or = BBB-/Baa3              0.25%           1.25%        0.250%

Category 4        > or = than BB+/Ba1           0.50%           1.50%        0.375%

Category 5        < BB+/Ba1                     1.00%           2.00%        0.400%
</TABLE>

                  For purposes of the foregoing, (i) if Moody's shall not have
in effect a rating for the Index Debt (other than by reason of the circumstances
referred to in the last sentence of this definition), then the Applicable Rate
shall be based on Moody's senior implied rating in respect of the Borrower (or
if Moody's has not established such senior implied rating, Moody's shall be
deemed to have established a rating in Category 5); (ii) if S&P shall not have
in effect a rating for the Index Debt (other than by reason of the circumstances
referred to in the last sentence of this definition), then the Applicable Rate
shall be based on S&P's corporate credit rating in respect of the Borrower (or
if S&P has not established such rating, S&P shall be deemed to have established
a rating in Category 5); (iii) if the ratings established or deemed to have been
established by Moody's for the Index Debt (or Moody's senior implied rating in
respect of the Borrower, if applicable) and S&P for the Index Debt (or S&P's
corporate credit rating in respect of the Borrower, if applicable) shall fall
within different Categories, the Applicable Rate shall be based on the higher of
the two ratings unless one of the two ratings is two or more Categories lower
than the other, in which case the Applicable Rate shall be determined by
reference to the Category next below that of the higher of the two ratings; and
(iv) if the ratings established or deemed to have been established by Moody's
for the Index Debt (or Moody's senior implied rating in respect of the Borrower,
if applicable) and S&P for the Index Debt (or S&P's corporate credit rating in
respect of the Borrower, if applicable) shall be changed (other than as a result
of a change in the rating system of Moody's or
<PAGE>

                                                                               4

S&P), such change shall be effective as of the date on which it is first
announced by the applicable rating agency. Each change in the Applicable Rate
shall apply during the period commencing on the effective date of such change
and ending on the date immediately preceding the effective date of the next such
change. If the rating system of Moody's or S&P shall change, or if either such
rating agency shall cease to be in the business of rating corporate debt
obligations, the Borrower and the Lenders shall negotiate in good faith to amend
this definition to reflect such changed rating system or the unavailability of
ratings from such rating agency and, pending the effectiveness of any such
amendment, the Applicable Rate shall be determined by reference to the rating
most recently in effect prior to such change or cessation.

                  "Approved Fund" has the meaning assigned to such term in
Section 9.04.

                  "Arrangers" means JPMorgan Securities Inc. and Banc of America
Securities LLC, each in its capacity as joint lead arranger in respect of the
credit facility established hereunder.

                  "Assigned Dollar Value" shall have the meaning set forth in
Section 2.21.

                  "Assignment and Assumption" means an assignment and assumption
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in the form of Exhibit B or any other form approved by the Administrative Agent.

                  "Availability Period" means the period from and including the
Effective Date to but excluding the earlier of the Maturity Date and the date of
termination of the Commitments.

                  "Board" means the Board of Governors of the Federal Reserve
System of the United States of America.

                  "Borrower" means American Axle & Manufacturing, Inc., a
Delaware corporation.

                  "Borrowing" means (a) Revolving Loans of the same currency and
Type, made, converted or continued on the same date and, in the case of
Eurodollar Loans, as to which a single Interest Period is in effect, or (b) a
Swingline Loan.

                  "Borrowing Request" means a request by the Borrower for a
Revolving Borrowing in accordance with Section 2.03.

                  "Business Day" means any day that is not a Saturday, Sunday or
other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided that, when used in connection with a
Eurodollar Loan or an Alternative Currency Loan the term "Business Day" shall
also exclude any day on which dealings in foreign currencies and exchange
between banks may not be carried on in London, England or New York, New York or,
in the case of an Alternative Currency

<PAGE>

                                                                               5

Loan denominated in Euro, any day on which the Trans-European Automated
Real-Time Gross Settlement Express Transfer (TARGET) System is not open.

                  "Capital Lease Obligations" of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

                  "Change in Control" means (a) the acquisition of ownership,
directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the
Securities and Exchange Commission thereunder as in effect on the date hereof),
of Equity Interests representing more than 35% of the aggregate ordinary voting
power represented by the issued and outstanding Equity Interests of the Parent;
(b) occupation of a majority of the seats (other than vacant seats) on the board
of directors of the Parent by Persons who were neither (i) nominated by the
board of directors of the Borrower or the Parent nor (ii) appointed by directors
so nominated; (c) the acquisition of direct or indirect Control of the Parent by
any Person or group; (d) the failure of the Parent to own, directly or
indirectly, at least 75% of the outstanding Equity Interests of the Borrower; or
(e) at any time that any Existing Subordinated Debt is outstanding, the
occurrence of a Change of Control, as defined in the Indenture referred to in
the definition of "Existing Subordinated Debt".

                  "Change in Law" means (a) the adoption of any law, rule or
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender or
Issuing Bank (or, for purposes of Section 2.14(b), by any lending office of such
Lender or by such Lender's or such Issuing Bank's holding company, if any) with
any request, guideline or directive (whether or not having the force of law) of
any Governmental Authority made or issued after the date of this Agreement.

                  "Code" means the Internal Revenue Code of 1986, as amended
from time to time.

                  "Commitment" means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans and to acquire participations
in Letters of Credit and Swingline Loans hereunder, expressed as an amount
representing the maximum aggregate amount of such Lender's Revolving Credit
Exposure hereunder, as such commitment may be (a) reduced from time to time
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04. The initial amount
of each Lender's Commitment is set forth on Schedule 2.01, or in the Assignment
and Assumption pursuant to which such Lender shall have assumed its Commitment,
as applicable. The initial aggregate amount of the Lenders' Commitments is
$600,000,000.

<PAGE>

                                                                               6

                  "Consolidated EBITDA" means, of any Person for any period,
Consolidated Net Income of such Person for such period plus (a) without
duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) income tax expense for such period, (ii) gross interest
expense for such period (including interest-equivalent costs associated with any
Permitted Receivables Financing, whether accounted for as interest expense or
loss on the sale of Receivables), (iii) depreciation and amortization expense
for such period, (iv) any special charges and any extraordinary or nonrecurring
losses for such period and (v) other non-cash items reducing such Consolidated
Net Income for such period, and minus (b) without duplication and to the extent
included in determining such Consolidated Net Income, (i) interest income for
such period, (ii) extraordinary or nonrecurring gains for such period and (iii)
other noncash items increasing such Consolidated Net Income for such period, all
determined on a consolidated basis in accordance with GAAP; provided, that for
purposes of determining the Leverage Ratio only, (A) there shall be included in
determining the Consolidated EBITDA of the Parent for any period the
Acquired/Disposed EBITDA of any Person, property, business or asset acquired
outside the ordinary course of business during or after the end of such period
by the Parent or a Subsidiary, to the extent not subsequently sold, transferred
or otherwise disposed of by the Parent or a Subsidiary (each such Person,
property, business or asset acquired and not subsequently so disposed of, an
"Acquired Entity or Business"), based on the actual Acquired/Disposed EBITDA of
such Acquired Entity or Business for such period (including the portion thereof
occurring prior to such acquisition) and (B) there shall be excluded in
determining Consolidated EBITDA of the Parent for any period the
Acquired/Disposed EBITDA of any Person, property, business or asset sold,
transferred or otherwise disposed of outside the ordinary course of business by
the Parent or any Subsidiary during or after the end of such period (each such
Person, property, business or asset so sold or disposed of, a "Sold Entity or
Business") based on the actual Acquired/Disposed EBITDA of such Sold Entity or
Business for such period (including the portion thereof occurring prior to such
sale, transfer or disposition).

                  "Consolidated Net Worth" means, as of any date, (a) the amount
of total assets of the Parent and the Subsidiaries minus (b) the amount of total
liabilities of the Parent and the Subsidiaries, in each case, that would be
reflected on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP.

                  "Consolidated Net Income" means, of any Person for any period,
the net income or loss of such Person for such period determined on a
consolidated basis in accordance with GAAP.

                  "Control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of a
Person, whether through the ability to exercise voting power, by contract or
otherwise. "Controlling" and "Controlled" have meanings correlative thereto.

                  "Currency Equivalent" means the Dollar Equivalent or the
Alternative Currency Equivalent, as the case may be.
<PAGE>

                                                                               7

                  "Default" means any event or condition which constitutes an
Event of Default or which upon notice, lapse of time or both would, unless cured
or waived, become an Event of Default.

                  "Denomination Date" means, in relation to any Alternative
Currency Borrowing, the date that is three Business Days before the date such
Borrowing is made.

                  "Designated Secured Indebtedness" means Indebtedness secured
by a Lien permitted under clause (d) or (e) of Section 6.02.

                  "Disclosed Matters" means the actions, suits and proceedings
and the environmental matters disclosed in Schedule 3.05.

                  "Dollar Letter of Credit" means a Letter of Credit denominated
in Dollars.

                  "Dollars" or "$" refers to lawful money of the United States
of America.

                  "Dollar Equivalent" means, with respect to any amount of an
Alternative Currency on any date, the amount of Dollars that may be purchased
with such amount of the Alternative Currency at the Spot Exchange Rate with
respect to the Alternative Currency on such date.

                  "Effective Date" means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section
9.02).

                  "EMU Legislation" means the legislative measures of the
European Union for the introduction of, changeover to, or operation of the Euro
in one or more member states.

                  "Environmental Laws" means all laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions or binding agreements
issued, promulgated or entered into by any Governmental Authority, relating in
any way to the environment, preservation or reclamation of natural resources or
the management, release or threatened release of any Hazardous Material.

                  "Environmental Liability" means any liability, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Parent or any Subsidiary
directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

                  "Equity Interests" means shares of capital stock, partnership
interests, membership interests in a limited liability company, beneficial
interests in a trust or other
<PAGE>

                                                                               8

equity ownership interests in a Person, and any warrants, options or other
rights entitling the holder thereof to purchase or acquire any such equity
interest.

                  "ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time and the regulations promulgated and rulings
issued thereunder.

                  "ERISA Affiliate" means any trade or business (whether or not
incorporated) that, together with the Parent, is treated as a single employer
under Section 414(b) or (c) of the Code or, solely for purposes of Section 302
of ERISA and Section 412 of the Code, is treated as a single employer under
Section 414 of the Code.

                  "ERISA Event" means (a) any "reportable event", as defined in
Section 4043 of ERISA with respect to a Plan (other than an event for which the
30-day notice period is waived); (b) the existence with respect to any Plan of
an "accumulated funding deficiency" (as defined in Section 412 of the Code or
Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section
412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of
the minimum funding standard with respect to any Plan; (d) the incurrence by the
Parent or any of its ERISA Affiliates of any liability under Title IV of ERISA
with respect to the termination of any Plan; (e) the receipt by the Parent or
any ERISA Affiliate from the PBGC or a plan administrator of any notice relating
to an intention to terminate any Plan or Plans or to appoint a trustee to
administer any Plan; (f) the incurrence by the Parent or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal
from any Plan or Multiemployer Plan; or (g) the receipt by the Parent or any
ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the
Parent or any ERISA Affiliate of any notice, concerning the imposition of
Withdrawal Liability or a determination that a Multiemployer Plan is, or is
expected to be, insolvent or in reorganization, within the meaning of Title IV
of ERISA.

                  "EURIBO Rate" means, with respect to any Eurodollar Borrowing
denominated in Euro for any Interest Period, the Euro interbank offered rate per
annum determined by reference to the Banking Federation of the European Union
for deposits with a maturity comparable to such Interest Period denominated in
Euro, as reflected on page 248 of the Telerate Service (or on any successor or
substitute page of such Service, or any successor to or substitute for such
Service, providing rate quotations comparable to those currently provided on
such page of such Service, as determined by the Administrative Agent from time
to time for purposes of providing quotations of interest rates applicable to
deposits in Euro in the European interbank market) at approximately 10:00 a.m.,
London time, two Business Days prior to the commencement of such Interest
Period, as the rate for Euro deposits with a maturity comparable to such
Interest Period. In the event that such rate is not available at such time for
any reason, then the "EURIBO Rate" with respect to such Eurodollar Borrowing for
such Interest Period shall be the rate at which Euro deposits equal to the
Dollar Equivalent of $5,000,000 and for a maturity comparable to such Interest
Period are offered by the principal London office of the Administrative Agent in
immediately available funds in the European interbank market at
<PAGE>

                                                                               9

approximately 10:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period.

                  "Eurodollar", when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Adjusted LIBO Rate or the
Adjusted EURIBO Rate, as applicable.

                  "Euro" means the single currency of the Participating Member
States of the European Union as constituted by the Treaty on European Union and
as referred to in the EMU Legislation.

                  "Event of Default" has the meaning assigned to such term in
Article VII.

                  "Excluded Subsidiary" means, at any time, any Subsidiary
affected by an event referred to in clause (i), (j) or (k) of Article VII at
such time that would constitute an Event of Default if such Subsidiary was not
an "Excluded Subsidiary"; provided, that (a) no Loan Party shall be an Excluded
Subsidiary and (b) a Subsidiary shall not be an Excluded Subsidiary if such
Subsidiary (on a consolidated basis with all other Excluded Subsidiaries
affected by an event referred to in clause (i), (j) or (k) of Article VII and
their respective subsidiaries) (i) account for more than 10% of Total Assets of
the Parent or (ii) account for more than 10% of the consolidated revenues of the
Parent and the Subsidiaries for the most recently ended period of four
consecutive fiscal quarters for which financial statements are available, in
each case, determined in accordance with GAAP.

                  "Excluded Taxes" means, with respect to the Administrative
Agent, any Lender, any Issuing Bank or any other recipient of any payment to be
made by or on account of any obligation of the Borrower hereunder, (a) income,
franchise or similar taxes imposed on (or measured by) its net income or, in the
case of franchise or similar taxes, gross receipts, by the United States of
America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any
Lender, in which its applicable lending office is located or in which such
Lender is otherwise doing business, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction in
which the Borrower is located, (c) in the case of a Foreign Lender (other than
an assignee pursuant to a request by the Borrower under Section 2.18(b)), any
Tax that is imposed on amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party to this Agreement (or designates a new lending
office) except to the extent that such Foreign Lender (or its assignor, if any)
was entitled, at the time of designation of a new lending office (or
assignment), to receive additional amounts from the Borrower with respect to
such withholding tax pursuant to Section 2.16(a), (d) any taxes attributable to
a failure by a Lender, the Administrative Agent or an Issuing Bank to comply
with Section 2.16(e), (e) any taxes imposed as a result of a change in the
circumstances of such Lender or Issuing Bank after becoming a Lender or Issuing
Bank hereunder, other than a change in law or regulation or the introduction of
any law or regulation or a change in interpretation
<PAGE>

                                                                              10

or administration of any law and (f) all liabilities, penalties and interest
with respect to any of the foregoing Excluded Taxes.

                  "Existing Credit Agreement" means the Credit Agreement, dated
as of October 27, 1997, as amended and in effect on the Effective Date, among
the Borrower, the Parent, the several lenders party thereto, JPMorgan Chase
Bank, as Administrative Agent and Collateral Agent and JPMorgan Chase Bank
Delaware, as Fronting Bank.

                  "Existing Letters of Credit" means letters of credit
outstanding under the Existing Credit Agreement on and as of the Effective Date.

                  "Existing Subordinated Debt" means the 9-3/4% senior
subordinated notes due 2009 issued pursuant to the Indenture, dated as of March
5, 1999, between the Borrower and Bank of New York, as Trustee, outstanding as
of the Effective Date.

                  "Federal Funds Effective Rate" means, for any day, the
weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers, as published on the next
succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average
(rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for
such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it; provided, that if
such day is not a Business Day, the Federal Funds Effective Rate for such day
shall be the same as that for the next preceding Business Day.

                  "Financial Officer" means, with respect to the Parent or the
Borrower, the chief financial officer, principal accounting officer, treasurer
or controller thereof, as applicable.

                  "Foreign Lender" means any Lender that is organized under the
laws of a jurisdiction other than that in which the Borrower is located. For
purposes of this definition, the United States of America, each State thereof
and the District of Columbia shall be deemed to constitute a single
jurisdiction.

                  "Foreign Subsidiary" means any Subsidiary that is organized
under the laws of a jurisdiction other than the United States of America or any
State thereof or the District of Columbia.

                  "GAAP" means generally accepted accounting principles in the
United States of America.

                  "Governmental Authority" means the government of the United
States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.
<PAGE>

                                                                              11

                  "Guarantee" of or by any Person (the "guarantor") means any
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
endorsements for collection or deposit in the ordinary course of business or
customary and reasonable indemnity obligations entered into in connection with
any acquisition or disposition of assets permitted under this Agreement.

                  "Guarantee Agreement" means the Guarantee Agreement,
substantially in the form of Exhibit A, among the Borrower, the Guarantors and
the Administrative Agent.

                  "Guarantors" means, as of any date, the Parent and each
Subsidiary that is a party to the Guarantee Agreement as a guarantor thereunder
as of such date. The Subsidiaries required to become the initial Guarantors on
the Effective Date shall be any Subsidiary that is a Material Subsidiary as of
such date.

                  "Hazardous Materials" means all explosive or radioactive
substances or wastes and all hazardous or toxic substances, wastes or other
pollutants, including petroleum or petroleum distillates, asbestos or asbestos
containing materials, polychlorinated biphenyls, radon gas and all other
substances or wastes of any nature regulated pursuant to any Environmental Law.

                  "Indebtedness" of any Person means, without duplication, (a)
all obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or similar instruments, (c) all
obligations of such Person upon which interest charges are customarily paid
(excluding current accounts payable incurred in the ordinary course of
business), (d) all obligations of such Person under conditional sale or other
title retention agreements relating to property acquired by such Person, (e) all
obligations of such Person in respect of the deferred purchase price of property
or services (excluding current accounts payable incurred in the ordinary course
of business), (f) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty, (j) all
obligations, contingent or otherwise, of such Person in respect of
<PAGE>

                                                                              12

bankers' acceptances and (k) Receivables Financing Debt. The Indebtedness of any
Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such Person
is liable therefor as a result of such Person's ownership interest in or other
relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor; provided, that if
the sole asset of such Person is its ownership interest in such other entity,
the amount of such Indebtedness shall be deemed equal to the value of such
ownership interest. For the avoidance of doubt, the Indebtedness of the Borrower
or any other Subsidiary shall not include any obligations of the Borrower or
such other Subsidiary arising in the ordinary course of business from the
establishment, offering and maintenance by the Borrower or such other
Subsidiary, as the case may be, of trade payables financing programs under which
suppliers to the Borrower or such other Subsidiary, as the case may be, can
request accelerated payment from one or more designated financial institutions;
provided, that (i) the Borrower or such other Subsidiary, as the case may be,
reimburses the designated financial institution or institutions for such
accelerated payment on the date specified in the purchase terms and conditions
previously agreed upon by the applicable supplier and the Borrower or such other
Subsidiary, as the case may be and (ii) had such financial institution or
institutions not paid such obligations to the applicable supplier, such
obligations would have been required to be classified as a trade payable in the
consolidated financial statements of the Borrower or such other Subsidiary, as
the case may be, prepared in accordance with GAAP.

                  "Indemnified Taxes" means Taxes other than Excluded Taxes.

                  "Index Debt" means senior, unsecured, long-term indebtedness
for borrowed money of the Borrower or the Parent, as the case may be, that is
not guaranteed by any other Person (other than a Guarantor or the Borrower) or
subject to any other credit enhancement.

                  "Information Memorandum" means the Confidential Information
Memorandum dated December 2003 relating to the Parent, the Borrower and the
Transactions.

                  "Interest Election Request" means a request by the Borrower to
convert or continue a Revolving Borrowing in accordance with Section 2.07.

                  "Interest Payment Date" means (a) with respect to any ABR Loan
(other than a Swingline Loan), the last day of each March, June, September and
December, (b) with respect to any Eurodollar Loan, the last day of the Interest
Period applicable to the Borrowing of which such Loan is a part and, in the case
of a Eurodollar Loan with an Interest Period of more than three months'
duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months' duration after the first day of such Interest Period,
and (c) with respect to any Swingline Loan, the day that such Loan is required
to be repaid.
<PAGE>

                                                                              13

                  "Interest Period" means, with respect to any Eurodollar
Borrowing, the period commencing on the date of such Borrowing and ending on the
date that is 21 days thereafter or on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter (or such other
period agreed to by each Lender participating in such Borrowing), as the
Borrower may elect; provided, that (i) if any Interest Period would end on a day
other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in
the next calendar month, in which case such Interest Period shall end on the
next preceding Business Day and (ii) any Interest Period that is measured in
months and that commences on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the last calendar
month of such Interest Period) shall end on the last Business Day of the last
calendar month of such Interest Period. For purposes hereof, the date of a
Borrowing initially shall be the date on which such Borrowing is made and
thereafter shall be the effective date of the most recent conversion or
continuation of such Borrowing.

                  "Issuing Bank" means (a) JPMorgan Chase Bank, in its capacity
as an issuer of Letters of Credit hereunder, (b) any other Lender that agrees in
writing with the Borrower to become an issuer of Letters of Credit hereunder
(with notice to the Administrative Agent), and (c) their respective successors
in such capacity as provided in Section 2.05(i). An Issuing Bank may, in its
discretion, arrange for one or more Letters of Credit to be issued by Affiliates
of such Issuing Bank, in which case the term "Issuing Bank" shall include any
such Affiliate with respect to Letters of Credit issued by such Affiliate.

                  "LC Disbursement" means a payment made by an Issuing Bank
pursuant to a Letter of Credit.

                  "LC Exposure" means, at any time, the sum of (a) the aggregate
undrawn amount of all outstanding Dollar Letters of Credit at such time plus (b)
the aggregate amount of all LC Disbursements denominated in Dollars that have
not yet been reimbursed by or on behalf of the Borrower at such time plus (c)
the Assigned Dollar Value of the aggregate undrawn amount of all outstanding
Alternative Currency Letters of Credit at such time plus (d) the Assigned Dollar
Value of the aggregate amount of all LC Disbursements denominated in an
Alternative Currency that have not yet been reimbursed by or on behalf of the
Borrower at such time. The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time.

                  "Lenders" means the Persons listed on Schedule 2.01 and any
other Person that shall have become a party hereto pursuant to an Assignment and
Assumption, other than any such Person that ceases to be a party hereto pursuant
to an Assignment and Assumption. Unless the context otherwise requires, the term
"Lenders" includes the Swingline Lender.

                  "Letter of Credit" means any letter of credit issued pursuant
to this Agreement (whether a standby letter of credit, a commercial letter of
credit or otherwise).
<PAGE>

                                                                              14

The Existing Letters of Credit shall be deemed to be issued pursuant to this
Agreement on the Effective Date and shall be considered Letters of Credit
hereunder.

                  "Leverage Ratio" means, on any date, the ratio of (a) Total
Net Indebtedness as of such date to (b) Consolidated EBITDA of the Parent for
the period of four consecutive fiscal quarters of the Parent ended on such date
(or, if such date is not the last day of a fiscal quarter, ended on the last day
of the fiscal quarter of the Parent most recently ended prior to such date).

                  "LIBO Rate" means, with respect to any Eurodollar Borrowing
denominated in Dollars or Sterling for any Interest Period, the rate appearing
on Page 3750 of the Telerate Service (or on any successor or substitute page of
such Service, or any successor to or substitute for such Service, providing rate
quotations comparable to those currently provided on such page of such Service,
as determined by the Administrative Agent from time to time for purposes of
providing quotations of interest rates applicable to Dollar or Sterling
deposits, as the case may be, in the London interbank market) at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period, as the rate for Dollar or Sterling deposits, as applicable,
with a maturity comparable to such Interest Period. In the event that such rate
is not available at such time for any reason, then the "LIBO Rate" with respect
to such Eurodollar Borrowing for such Interest Period shall be the rate at which
Dollar or Sterling deposits, as applicable, of $5,000,000 (or the Dollar
Equivalent, if applicable) and for a maturity comparable to such Interest Period
are offered by the principal London office of the Administrative Agent in
immediately available funds in the London interbank market at approximately
11:00 a.m., London time, two Business Days prior to the commencement of such
Interest Period.

                  "Lien" means, with respect to any asset, (a) any mortgage,
deed of trust, lien, pledge, hypothecation, encumbrance, charge or security
interest in, on or of such asset and (b) the interest of a vendor or a lessor
under any conditional sale agreement, capital lease or title retention agreement
(or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset.

                  "Loans" means the loans made by the Lenders to the Borrower
pursuant to this Agreement.

                  "Loan Parties" means the Borrower and the Guarantors.

                  "Loan Documents" means this Agreement and the Guarantee
Agreement.

                  "Local Time" means (a) with respect to any Loan, Borrowing or
Letter of Credit denominated in Dollars, New York City time and (b) with respect
to any Loan, Borrowing or Letter of Credit denominated in any Alternative
Currency, London time.

                  "Material Adverse Effect" means a material adverse effect on
(a) the business, assets, operations, or financial condition of the Parent and
the Subsidiaries taken as a whole, (b) the ability of any Loan Party to perform
any of its material obligations under the Loan Documents or (c) the validity and
enforceability of any Loan
<PAGE>

                                                                              15

Document, or the rights and remedies of the Lenders hereunder or under any other
Loan Document, taken as a whole.

                  "Material Indebtedness" means Indebtedness (other than the
Loans and Letters of Credit), or obligations in respect of one or more Swap
Agreements, of any one or more of the Parent and its Subsidiaries in an
aggregate principal amount exceeding $35,000,000. For purposes of determining
Material Indebtedness, the "principal amount" of the obligations of the Parent
or any Subsidiary in respect of any Swap Agreement at any time shall be the
maximum aggregate amount (giving effect to any netting agreements) that the
Parent or such Subsidiary would be required to pay if such Swap Agreement were
terminated at such time.

                  "Material Subsidiary" means, as of any date, any Subsidiary
(other than the Borrower, a Foreign Subsidiary or a Receivables Subsidiary) that
either (a) accounts (together with its subsidiaries on a consolidated basis) for
more than 10% of Total Assets of the Parent or (b) accounts (together with its
subsidiaries on a consolidated basis) for more than 10% of the consolidated
revenues of the Parent and the Subsidiaries for the most recently ended period
of four consecutive fiscal quarters for which financial statements are
available, in each case, determined in accordance with GAAP.

                  "Maturity Date" means January 9, 2009.

                  "Moody's" means Moody's Investors Service, Inc.

                  "Multiemployer Plan" means a multiemployer plan as defined in
Section 4001(a)(3) of ERISA to which the Parent or any ERISA Affiliate is making
or accruing an obligation to make contributions, or has within any of the
preceding five plan years made or accrued an obligation to make contributions.

                  "Other Taxes" means any and all present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or from the execution, delivery
or enforcement of, or otherwise with respect to, this Agreement.

                  "Parent" means American Axle & Manufacturing Holdings, Inc., a
Delaware corporation.

                  "Participant" has the meaning set forth in Section 9.04.

                  "PBGC" means the Pension Benefit Guaranty Corporation referred
to and defined in ERISA and any successor entity performing similar functions.

                  "Permitted Encumbrances" means:

                  (a) Liens imposed by law for taxes that are not yet due or are
         being contested in compliance with Section 5.04;
<PAGE>

                                                                              16

                  (b) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's construction, artisan's and other like Liens imposed by
         law, arising in the ordinary course of business and securing
         obligations that are not overdue by more than 60 days or are being
         contested in compliance with Section 5.04;

                  (c) pledges and deposits made in the ordinary course of
         business in compliance with workers' compensation, unemployment
         insurance and other social security laws or regulations and deposits
         securing liability to insurance carriers under insurance or
         self-insurance arrangements in respect of such obligations;

                  (d) deposits to secure or in connection with the performance
         of bids, trade contracts, leases, statutory obligations, surety and
         appeal bonds, performance bonds and other obligations of a like nature,
         in each case in the ordinary course of business, including those
         incurred to secure health, safety and environmental obligations in the
         ordinary course of business;

                  (e) judgment liens in respect of judgments that do not
         constitute an Event of Default under clause (l) of Article VII;

                  (f) easements, zoning restrictions, rights-of-way and similar
         encumbrances on real property imposed by law or arising in the ordinary
         course of business which, in the aggregate, are not substantial in
         amount and do not materially detract from the value of the affected
         property or materially interfere with the ordinary conduct of business
         of the Parent or any Subsidiary;

                  (g) Liens arising by virtue of any statutory or common law
         provision relating to banker's liens, rights of setoff or similar
         rights as to deposit accounts or other funds maintained with creditor
         depository institution; and

                  (h) landlord's Liens under leases of property to which the
         Parent or a Subsidiary is a party;

provided that the term "Permitted Encumbrances" shall not include any Lien
securing Indebtedness.

                  "Permitted Investments" means:

                  (a) direct obligations of, or obligations the principal of and
         interest on which are unconditionally guaranteed by, the United States
         of America (or by any agency or instrumentality thereof to the extent
         such obligations are backed by the full faith and credit of the United
         States of America),

                  (b) investments in commercial paper maturing within 270 days
         from the date of acquisition thereof and having, at such date of
         acquisition, a rating of at least A-1 by S&P or P-1 by Moody's;
<PAGE>

                                                                              17

                  (c) investments in certificates of deposit, banker's
         acceptances and time deposits maturing within 270 days from the date of
         acquisition thereof issued or guaranteed by or placed with, and money
         market deposit accounts issued or offered by, (i) any Lender, (ii) any
         domestic office of any commercial bank organized under the laws of the
         United States of America or any State thereof or any foreign country
         recognized by the United States of America which has a combined capital
         and surplus and undivided profits of not less than $250,000,000 (or the
         foreign currency equivalent thereof) or (iii) any bank whose short-term
         commercial paper rating from S&P is at least A-1 or the equivalent
         thereof or from Moody's is at least P-1 or the equivalent thereof;

                  (d) fully collateralized repurchase agreements with a term of
         not more than 30 days for securities described in clause (a) above and
         entered into with a financial institution satisfying the criteria
         described in clause (c) above;

                  (e) money market funds that (i) comply with the criteria set
         forth in Securities and Exchange Commission Rule 2a-7 under the
         Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by
         Moody's and (iii) have portfolio assets of at least $5,000,000,000;

                  (f) securities with maturities of six months or less from the
         date of acquisition issued or fully guaranteed by any State,
         commonwealth or territory of the United States of America, or by any
         political subdivision or taxing authority thereof, and rated at least A
         by S&P or Moody's;

                  (g) in the case of any Foreign Subsidiary, (i) direct
         obligations of the sovereign nation (or any agency thereof) in which
         such Subsidiary is organized and is conducting business or in
         obligations fully and unconditionally guaranteed by such sovereign
         nation (or any agency thereof), (ii) investments of the type and
         maturity described in clauses (a) through (f) above of foreign
         obligors, which investments or obligors (or the parents of such
         obligors) have ratings described in such clauses or equivalent ratings
         from comparable foreign rating agencies and (iii) investments of the
         type and maturity described in clauses (a) through (f) above of foreign
         obligors (or the parents of such obligors), which investments of
         obligors (or the parents of such obligors) are not rated as provided in
         such clauses or in clause (ii) above but which are, in the reasonable
         judgment of the Parent and the Borrower, comparable in investment
         quality to such investments and obligors (or the parents of such
         obligors);

                  (h) shares of mutual funds whose investment guidelines
         restrict 95% of such funds' investments to those satisfying the
         provisions of clauses (a) through (f) above; and

                  (i) time deposit accounts, certificates of deposits and money
         market deposits in an aggregate face amount not in excess 1% of Total
         Assets of the Parent as of the end of the Parent's most recently
         completed fiscal year.
<PAGE>

                                                                              18

                  "Permitted Receivables Financing" means transactions pursuant
to which the Parent or one or more of the Subsidiaries (or a combination
thereof) realizes cash proceeds in respect of Receivables and Related Security
by selling or otherwise transferring such Receivables and Related Security (on a
non-recourse basis with respect to the Parent and the Subsidiaries, other than
Standard Securitization Undertakings) to one or more Receivables Subsidiaries,
and such Receivables Subsidiary or Receivables Subsidiaries realize cash
proceeds in respect of such Receivables and Related Security; provided that the
Parent or the Borrower shall deliver to the Administrative Agent copies of all
documentation entered into in connection with any such transaction.

                  "Person" means any natural person, corporation, limited
liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity.

                  "Plan" means any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section
412 of the Code or Section 302 of ERISA, and in respect of which the Parent or
any ERISA Affiliate is (or, if such plan were terminated, would under Section
4069 of ERISA be deemed to be) an "employer" as defined in Section 3(5) of
ERISA.

                  "Prime Rate" means the rate of interest per annum publicly
announced from time to time by JPMorgan Chase Bank as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

                  "Receivable" means an Account owing to the Parent or any
Subsidiary (before its transfer to a Receivables Subsidiary), whether now
existing or hereafter arising, together with all cash collections and other cash
proceeds in respect of such Account, including all yield, finance charges or
other related amounts accruing in respect thereof and all cash proceeds of
Related Security with respect to such Receivable.

                  "Receivables Financing Debt" means, as of any date with
respect to any Receivables Subsidiary and any Permitted Receivables Financing,
the amount of the outstanding uncollected Receivables subject to such Permitted
Receivables Financing that would be required for such Receivables Subsidiary to
discharge all principal obligations to financing parties (and would not be
returned, directly or indirectly, to the Parent or the Borrower) if all such
Receivables were to be collected at such date and such Permitted Receivables
Financing were to be terminated at such date.

                  "Receivables Subsidiary" means a wholly owned Subsidiary that
does not engage in any activities other than participating in one or more
Permitted Receivables Financings and activities incidental thereto; provided
that (a) such Subsidiary does not have any Indebtedness other than Indebtedness
incurred pursuant to a Permitted Receivables Financing owed to financing parties
(including the Parent or the applicable seller of Receivables) supported by
Receivables and Related Security and (b) neither the Parent nor any Subsidiary
Guarantees any Indebtedness or other obligation of such Subsidiary, other than
Standard Securitization Undertakings.
<PAGE>

                                                                              19

                  "Register" has the meaning set forth in Section 9.04.

                  "Related Parties" means, with respect to any specified Person,
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

                  "Related Security" means, with respect to any Receivables
subject to a Permitted Receivables Financing, all assets that are customarily
transferred or in respect of which security interests are customarily granted in
connection with asset securitization transactions involving Receivables,
including all collateral securing such Receivables, all contracts and all
Guarantee or other obligations in respect of such Receivables, and all proceeds
of such Receivables.

                  "Required Lenders" means, at any time, Lenders having
Revolving Credit Exposures and unused Commitments representing more than 50% of
the sum of the total Revolving Credit Exposures and unused Commitments at such
time.

                  "Revaluation Date" means, (a) with respect to an Alternative
Currency Borrowing, (i) each date that is three Business Days before an Interest
Payment Date with respect to such Borrowing and (ii) if the Borrower elects a
new Interest Period prior to the end of the existing Interest Period with
respect to such Borrowing, the date of commencement of such new Interest Period
and (b) with respect to an Alternative Currency Letter of Credit, each date that
is the first Monday following the fourth Saturday of each month or, if such date
is not a Business Day, the next succeeding Business Day.

                  "Revolving Borrowing" means a Borrowing comprised of Revolving
Loans.

                  "Revolving Credit Exposure" means, with respect to any Lender
at any time, the sum of (a) the outstanding principal amount of such Lender's
Revolving Loans denominated in Dollars at such time, (b) the Assigned Dollar
Value of the outstanding principal amount of such Lender's Revolving Loans
denominated in an Alternative Currency at such time and (c) such Lender's LC
Exposure and Swingline Exposure at such time.

                  "Revolving Loan" means a Loan made pursuant to Section 2.03.

                  "S&P" means Standard & Poor's.

                  "Sold Entity or Business" has the meaning assigned to such
term in the definition of "Consolidated EBITDA".

                  "Spot Exchange Rate" means, on any day, (a) with respect to
any Alternative Currency in relation to Dollars, the spot rate at which Dollars
are offered on such day for such Alternative Currency which appears on page FXFX
of the Reuters Screen at approximately 11:00 a.m., London time (and if such spot
rate is not available on the applicable page of the Reuters Screen, such spot
rate as is quoted by the

<PAGE>

                                                                              20

Administrative Agent to major money center banks at approximately 11:00 a.m.,
New York City time) and (b) with respect to Dollars in relation to any specified
Alternative Currency, the spot rate at which such specified Alternative Currency
is offered on such day for Dollars which appears on page FXFX of the Reuters
Screen at approximately 11:00 a.m., London time (and if such spot rate is not
available on the applicable page of the Reuters Screen, such spot rate as is
quoted by the Administrative Agent to major money center banks at approximately
11:00 a.m., New York City time). For purposes of determining the Spot Exchange
Rate in connection with an Alternative Currency Borrowing, such Spot Exchange
Rate shall be determined as of the Denomination Date for such Borrowing with
respect to the transactions in the applicable Alternative Currency that will
settle on the date of such Borrowing.

                  "Standard Securitization Undertakings" means representations,
warranties, covenants and indemnities made by the Parent or any of the
Subsidiaries in connection with a Permitted Receivables Financing that are
customary for accounts receivables securitization financings; provided that
Standard Securitization Undertakings shall not include any Guarantee of any
Indebtedness or collectability of any Receivables.

                  "Statutory Reserve Rate" means a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which the Administrative Agent is
subject with respect to the Adjusted LIBO Rate or the Adjusted EURIBO Rate for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

                  "Sterling" means lawful money of the United Kingdom.

                  "subsidiary" means, with respect to any Person (the "parent")
at any date, any corporation, limited liability company, partnership,
association or other entity the accounts of which would be consolidated with
those of the parent in the parent's consolidated financial statements if such
financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership,
association or other entity (a) of which securities or other ownership interests
representing more than 50% of the equity or more than 50% of the ordinary voting
power or, in the case of a partnership, more than 50% of the general partnership
interests are, as of such date, owned, controlled or held, or (b) that is, as of
such date, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.

                  "Subsidiary" means any subsidiary of the Parent, including the
Borrower.

<PAGE>

                                                                              21

                  "Swap Agreement" means any agreement with respect to any swap,
forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or
any similar transaction or any combination of these transactions; provided that
no phantom stock or similar plan providing for payments only on account of
services provided by current or former directors, officers, employees or
consultants of the Parent or the Subsidiaries shall be a Swap Agreement.

                  "Swingline Exposure" means, at any time, the aggregate
principal amount of all Swingline Loans outstanding at such time. The Swingline
Exposure of any Lender at any time shall be its Applicable Percentage of the
total Swingline Exposure at such time.

                  "Swingline Lender" means (a) Standard Federal Bank N.A., in
its capacity as lender of Swingline Loans hereunder or (b) any other Lender that
agrees in writing with the Borrower to become the Swingline Lender hereunder
(with notice to the Administrative Agent); provided, that there shall not be
more than one Swingline Lender hereunder at any time.

                  "Swingline Loan" means a Loan made pursuant to Section 2.04.

                  "Taxes" means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

                  "Total Assets" means, with respect to any Person as of any
date, the amount of total assets of such Person and its subsidiaries that would
be reflected on a balance sheet of such Person prepared as of such date on a
consolidated basis in accordance with GAAP.

                  "Total Indebtedness" means, as of any date, the sum (without
duplication) of (a) the aggregate principal amount of Indebtedness of the Parent
and the Subsidiaries outstanding as of such date that consists of Capital Lease
Obligations, obligations for borrowed money and obligations in respect of the
deferred purchase price of property or services, determined on a consolidated
basis, plus (b) the amount, if any, by which the aggregate amount of Receivables
Financing Debt of the Parent and the Subsidiaries outstanding as of such date
exceeds $150,000,000.

                  "Total Net Indebtedness" means, as of any date, Total
Indebtedness minus the aggregate amount of cash and cash equivalents that would
be set forth on a balance sheet of the Parent and the Subsidiaries as of such
date prepared on a consolidated basis in accordance with GAAP.

                  "Transactions" means the execution, delivery and performance
by the Loan Parties of the Loan Documents, the borrowing of Loans, the use of
the proceeds thereof and the issuance of Letters of Credit hereunder.
<PAGE>

                                                                              22

                  "Type", when used in reference to any Loan or Borrowing,
refers to whether the rate of interest on such Loan, or on the Loans comprising
such Borrowing, is determined by reference to (a) the Adjusted LIBO Rate or the
Adjusted EURIBO Rate or (b) the Alternate Base Rate.

                  "Withdrawal Liability" means liability to a Multiemployer Plan
as a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

                  SECTION 1.02. Types of Loans and Borrowings. For purposes of
this Agreement, Loans may be classified and referred to by Type (e.g., a
"Eurodollar Loan") . Borrowings also may be classified and referred to by Type
(e.g., a "Eurodollar Borrowing") .

                  SECTION 1.03. Terms Generally. The definitions of terms herein
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein),
(b) any reference herein to any Person shall be construed to include such
Person's successors and assigns, (c) the words "herein", "hereof" and
"hereunder", and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all
references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
this Agreement and (e) the words "asset" and "property" shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and properties, including cash, securities, accounts and
contract rights.

                  SECTION 1.04. Accounting Terms; GAAP. Except as otherwise
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided
that, if the Borrower notifies the Administrative Agent that the Borrower
requests an amendment to any provision hereof to eliminate the effect of any
change occurring after the date hereof in GAAP or in the application thereof on
the operation of such provision (or if the Administrative Agent notifies the
Borrower that the Required Lenders request an amendment to any provision hereof
for such purpose), regardless of whether any such notice is given before or
after such change in GAAP or in the application thereof, then such provision
shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.
<PAGE>

                                                                              23

                                   ARTICLE II

                                   The Credits

                  SECTION 2.01. Commitments. Subject to the terms and conditions
set forth herein, each Lender severally agrees to make Revolving Loans (in
Dollars or, subject to Section 2.02(d), an Alternative Currency) to the Borrower
from time to time during the Availability Period in an aggregate principal
amount that will not result in (a) such Lender's Revolving Credit Exposure
exceeding such Lender's Commitment, (b) the sum of the total Revolving Credit
Exposures exceeding the total Commitments, (c) the sum of the Assigned Dollar
Values of the aggregate principal amount of all outstanding Revolving Loans
denominated in Euro plus the total LC Exposure attributable to Letters of Credit
and LC Disbursements denominated in Euro exceeding $100,000,000 or (d) the sum
of the Assigned Dollar Values of the aggregate principal amount of all
outstanding Revolving Loans denominated in Sterling plus the total LC Exposure
attributable to Letters of Credit and LC Disbursements denominated in Sterling
exceeding $50,000,000. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrower may borrow, prepay and reborrow
Revolving Loans.

                  SECTION 2.02. Loans and Borrowings. (a) Each Revolving Loan
shall be made as part of a Borrowing consisting of Revolving Loans made by the
Lenders ratably in accordance with their respective Commitments. The failure of
any Lender to make any Loan required to be made by it shall not relieve any
other Lender of its obligations hereunder; provided that the Commitments of the
Lenders are several and no Lender shall be responsible for any other Lender's
failure to make Loans as required.

                  (b) Subject to Section 2.13, (i) each Revolving Borrowing
denominated in Dollars shall be comprised entirely of ABR Loans or Eurodollar
Loans as the Borrower may request in accordance herewith and (ii) each Revolving
Borrowing denominated in an Alternative Currency shall be comprised entirely of
Eurodollar Loans. Each Swingline Loan shall, at the option of the Borrower, be
(i) an ABR Loan or (ii) a Swingline Loan that bears interest at a rate per annum
negotiated between the Borrower and the Swingline Lender. Each Lender at its
option may make any Eurodollar Loan by causing any domestic or foreign branch or
Affiliate of such Lender to make such Loan; provided that any exercise of such
option shall not affect the obligation of the Borrower to repay such Loan in
accordance with the terms of this Agreement and such Lender shall not be
entitled to any amounts payable under Section 2.14, 2.16 or 2.18 to the extent
such amounts would not have been payable had such Lender not exercised such
option.

                  (c) Subject to paragraph (d) of this Section, at the
commencement of each Interest Period for any Eurodollar Revolving Borrowing,
such Borrowing shall be in an aggregate amount that is an integral multiple of
$500,000 and not less than $5,000,000; provided that, for purposes of the
foregoing, each Alternative Currency Borrowing shall be deemed to be in an
amount equal to the Dollar Equivalent of the amount of such Borrowing at the
time such Borrowing was made, without giving effect to any adjustments to such
amount pursuant to Section 2.21; provided further, that a Eurodollar
<PAGE>

                                                                              24

Revolving Borrowing may be in an aggregate amount that is required to finance
the reimbursement of an LC Disbursement denominated in an Alternative Currency
as contemplated by Section 2.05(e). At the time that each ABR Revolving
Borrowing is made, such Borrowing shall be in an aggregate amount that is an
integral multiple of $500,000 and not less than $1,000,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire
unused balance of the total Commitments or that is required to finance the
reimbursement of an LC Disbursement denominated in Dollars as contemplated by
Section 2.05(e). Each Swingline Loan shall be in an amount that is an integral
multiple of $500,000 and not less than $500,000. Borrowings of more than one
Type may be outstanding at the same time; provided that there shall not at any
time be more than a total of 10 Eurodollar Revolving Borrowings outstanding.

                  (d) Loans made pursuant to any Alternative Currency Borrowing
shall be made in the Alternative Currency specified in the applicable Borrowing
Request in an aggregate amount equal to the Alternative Currency Equivalent of
the Dollar amount specified in such Borrowing Request; provided, that for
purposes of the Borrowing amounts specified in paragraph (c), each Alternative
Currency Borrowing shall be deemed to be in a principal amount equal to its
Assigned Dollar Value.

                  (e) Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing if the Interest Period requested with respect thereto would end
after the Maturity Date.

                  SECTION 2.03. Requests for Revolving Borrowings. To request a
Revolving Borrowing, the Borrower shall notify the Administrative Agent of such
request by telephone (a) in the case of a Eurodollar Borrowing, not later than
12:00 noon, New York City time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than 12:00
noon, New York City time, on the date of the proposed Borrowing. Each such
telephonic Borrowing Request shall be irrevocable and shall be confirmed
promptly by hand delivery or telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02:

                  (i) the aggregate amount (expressed in Dollars) and currency
         (which must be Dollars or an Alternative Currency) of the requested
         Borrowing;

                  (ii) the date of such Borrowing, which shall be a Business
         Day;

                  (iii) whether such Borrowing is to be an ABR Borrowing or a
         Eurodollar Borrowing;

                  (iv) in the case of a Eurodollar Borrowing, the initial
         Interest Period to be applicable thereto, which shall be a period
         contemplated by the definition of the term "Interest Period"; and

<PAGE>

                                                                              25

                  (v) the location and number of the Borrower's account to which
         funds are to be disbursed, which shall comply with the requirements of
         Section 2.06.

If no election as to the Type of any Revolving Borrowing denominated in Dollars
is specified, then the requested Revolving Borrowing shall be an ABR Borrowing.
If no currency is specified with respect to any Revolving Borrowing, then the
Borrower shall be deemed to have requested that such Borrowing be denominated in
Dollars. If no Interest Period is specified with respect to any requested
Eurodollar Revolving Borrowing, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration. Promptly following receipt
of a Borrowing Request in accordance with this Section, the Administrative Agent
shall advise each Lender of the details thereof and of the amount of such
Lender's Loan to be made as part of the requested Borrowing.

                  SECTION 2.04. Swingline Loans. (a) Subject to the terms and
conditions set forth herein, the Swingline Lender agrees to make Swingline Loans
to the Borrower in Dollars from time to time during the Availability Period, in
an aggregate principal amount at any time outstanding that will not result in
(i) the aggregate principal amount of all outstanding Swingline Loans exceeding
$30,000,000 or (ii) the total Revolving Credit Exposures exceeding the total
Commitments. Notwithstanding the foregoing, the Borrower shall not request, and
the Swingline Lender shall not make, any Swingline Loan if, after giving effect
to the making of such Swingline Loan, the aggregate amount of the unused
Commitments would be less than zero. The Borrower may refinance all or any part
of a Swingline Loan with another Swingline Loan. Within the foregoing limits and
subject to the terms and conditions set forth herein, the Borrower may borrow,
prepay and reborrow Swingline Loans.

                  (b) To request a Swingline Loan from the Swingline Lender, the
Borrower shall notify the Swingline Lender of such request by telephone
(confirmed by telecopy), not later than 4:00 p.m., New York City time, on the
day of a proposed Swingline Loan. Each such notice shall be irrevocable and
shall specify the requested date (which shall be a Business Day) and the amount
of the requested Swingline Loan. The Swingline Lender will, prior to making such
Swingline Loan available to the Borrower, notify the Administrative Agent of
such notice. The Swingline Lender shall make each Swingline Loan to be made by
it hereunder available to the Borrower by means of a credit to the general
deposit account of the Borrower with the Swingline Lender (or, in the case of a
Swingline Loan made to finance the reimbursement of an LC Disbursement as
provided in Section 2.05(e), by remittance to the applicable Issuing Bank) by
5:00 p.m., New York City time, on the requested date of such Swingline Loan.

                  (c) The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on any
Business Day require the Lenders to acquire participations on such Business Day
in all or a portion of its Swingline Loans outstanding. Such notice shall
specify the aggregate amount of Swingline Loans in which Lenders will
participate. Promptly upon receipt of such notice, the Administrative Agent will
give notice thereof to each Lender, specifying in such notice such Lender's
Applicable Percentage of such Swingline Loan or Loans. Each Lender hereby
absolutely and unconditionally agrees, upon receipt of notice as provided
<PAGE>

                                                                              26

above, to pay to the Administrative Agent, for the account of the Swingline
Lender, such Lender's Applicable Percentage of such Swingline Loan or Loans.
Each Lender acknowledges and agrees that its obligation to acquire
participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever,
including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever. Each Lender shall
comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.06 with respect to
Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to
the payment obligations of the Lenders), and the Administrative Agent shall
promptly pay to the Swingline Lender the amounts so received by it from the
Lenders. The Administrative Agent shall notify the Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and
thereafter payments in respect of such Swingline Loan shall be made to the
Administrative Agent and not to the Swingline Lender. Any amounts received by
the Swingline Lender from the Borrower (or other party on behalf of the
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender
of the proceeds of a sale of participations therein shall be promptly remitted
to the Administrative Agent; any such amounts received by the Administrative
Agent shall be promptly remitted by the Administrative Agent to the Lenders that
shall have made their payments pursuant to this paragraph and to the Swingline
Lender, as their interests may appear; provided that any such payment so
remitted shall be repaid to the Swingline Lender or to the Administrative Agent,
as applicable, if and to the extent such payment is required to be refunded to
the Borrower for any reason. The purchase of participations in a Swingline Loan
pursuant to this paragraph shall not relieve the Borrower of any default in the
payment thereof.

                  (d) The Swingline Lender may be replaced at any time by
written agreement among the Borrower and a successor Swingline Lender (with
notice to the Administrative Agent and the replaced Swingline Lender). The
Administrative Agent shall notify the Lenders of any such replacement of the
Swingline Lender. From and after the effective date of any such replacement, (i)
the successor Swingline Lender shall have all the rights and obligations of the
previous Swingline Lender under this Agreement with respect to Swingline Loans
made thereafter and (ii) references herein to the term "Swingline Lender" shall
be deemed to refer to such successor or to the previous Swingline Lender, as the
context shall require. On the date of the replacement of a Swingline Lender
hereunder, the Borrower shall repay all Swingline Loans made by such Swingline
Lender that are outstanding as of such date and such Swingline Lender shall not
have any obligation to make any Swingline Loans thereafter.

                  SECTION 2.05. Letters of Credit. (a) General. Subject to the
terms and conditions set forth herein, the Borrower may request the issuance of
Letters of Credit for its own account, in a form reasonably acceptable to the
Administrative Agent and the applicable Issuing Bank, at any time and from time
to time during the Availability Period. In the event of any inconsistency
between the terms and conditions of this Agreement and the terms and conditions
of any form of letter of credit application or other agreement
<PAGE>

                                                                              27

submitted by the Borrower to, or entered into by the Borrower with, any Issuing
Bank relating to any Letter of Credit, the terms and conditions of this
Agreement shall control.

                  (b) Notice of Issuance, Amendment, Renewal, Extension; Certain
Conditions. To request the issuance of a Letter of Credit (or the amendment,
renewal or extension of an outstanding Letter of Credit), the Borrower shall
hand deliver or telecopy (or transmit by electronic communication, if
arrangements for doing so have been approved by the applicable Issuing Bank) to
the applicable Issuing Bank and the Administrative Agent (reasonably in advance
of the requested date of issuance, amendment, renewal or extension) a notice
requesting the issuance of a Letter of Credit, or identifying the Letter of
Credit to be amended, renewed or extended, and specifying the date of issuance,
amendment, renewal or extension (which shall be a Business Day), the date on
which such Letter of Credit is to expire (which shall comply with paragraph (c)
of this Section), the currency in which such Letter of Credit is to be
denominated (which shall be Dollars or an Alternative Currency), the amount of
such Letter of Credit (expressed in the applicable currency), the name and
address of the beneficiary thereof and such other information as shall be
necessary to prepare, amend, renew or extend such Letter of Credit. If requested
by the applicable Issuing Bank, the Borrower also shall submit a letter of
credit application on such Issuing Bank's standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended,
renewed or extended only if (and upon issuance, amendment, renewal or extension
of each Letter of Credit the Borrower shall be deemed to represent and warrant
that), after giving effect to such issuance, amendment, renewal or extension (i)
the LC Exposure shall not exceed $100,000,000, (ii) the total Revolving Credit
Exposures shall not exceed the total Commitments, (iii) the sum of the Assigned
Dollar Values of the aggregate principal amount of all outstanding Revolving
Loans denominated in Euro plus the total LC Exposure attributable to Letters of
Credit and LC Disbursements denominated in Euro shall not exceed $100,000,000
and (iv) the sum of the Assigned Dollar Values of the aggregate principal amount
of all outstanding Revolving Loans denominated in Sterling plus the total LC
Exposure attributable to Letters of Credit and LC Disbursements denominated in
Sterling shall not exceed $50,000,000.

                  (c) Expiration Date. Each Letter of Credit shall expire at or
prior to the close of business on the earlier of (i) the date one year after the
date of the issuance of such Letter of Credit (or, in the case of any renewal or
extension thereof, one year after such renewal or extension), subject to
automatic renewal provisions acceptable to the Issuing Bank, and (ii) the date
that is five Business Days prior to the Maturity Date.

                  (d) Participations. By the issuance of a Letter of Credit (or
an amendment to a Letter of Credit increasing the amount thereof) and without
any further action on the part of the applicable Issuing Bank or the Lenders,
the applicable Issuing Bank hereby grants to each Lender, and each Lender hereby
acquires from such Issuing Bank, a participation in such Letter of Credit equal
to such Lender's Applicable Percentage of the aggregate amount available to be
drawn under such Letter of Credit. In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to
the Administrative Agent, for the account of such Issuing Bank, such

<PAGE>

                                                                              28

Lender's Applicable Percentage of each LC Disbursement made by such Issuing Bank
and not reimbursed by the Borrower on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the
Borrower for any reason. Each Lender acknowledges and agrees that its obligation
to acquire participations pursuant to this paragraph in respect of Letters of
Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any
Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without
any offset, abatement, withholding or reduction whatsoever.

                  (e) Reimbursement. If an Issuing Bank shall make any LC
Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such
LC Disbursement by paying to the Administrative Agent an amount equal to such LC
Disbursement not later than 12:00 noon, Local time, on the date that is one
Business Day after such LC Disbursement is made, if the Borrower shall have
received notice of such LC Disbursement prior to 10:00 a.m., Local time, on the
date that such LC Disbursement is made, or, if such notice has not been received
by the Borrower prior to such time on such date, then not later than 12:00 noon,
Local time, on (i) the next Business Day after the Borrower receives such
notice, if such notice is received prior to 10:00 a.m., Local time, on the day
of receipt, or (ii) the second Business Day following the day that the Borrower
receives such notice, if such notice is not received prior to such time on the
day of receipt; provided that, if such LC Disbursement is not less than the
applicable minimum borrowing amount set forth herein, the Borrower may, subject
to the conditions to borrowing set forth herein, request in accordance with
Section 2.03 or 2.04 that such payment be financed with an ABR Revolving
Borrowing (with respect to a payment in Dollars), a Eurodollar Revolving
Borrowing (with respect to a payment in an Alternative Currency) or Swingline
Loan in an equivalent amount and, to the extent so financed, the Borrower's
obligation to make such payment shall be discharged and replaced by the
resulting ABR Revolving Borrowing, Eurodollar Revolving Borrowing or Swingline
Loan. If the Borrower fails to make such payment when due, the Administrative
Agent shall notify each Lender of the applicable LC Disbursement, the payment
then due from the Borrower in respect thereof and such Lender's Applicable
Percentage thereof. Promptly following receipt of such notice, each Lender shall
pay to the Administrative Agent its Applicable Percentage of the payment then
due from the Borrower, in the same manner as provided in Section 2.06 with
respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis
mutandis, to the payment obligations of the Lenders), and the Administrative
Agent shall promptly pay to the applicable Issuing Bank the amounts so received
by it from the Lenders. Promptly following receipt by the Administrative Agent
of any payment from the Borrower pursuant to this paragraph, the Administrative
Agent shall distribute such payment to the applicable Issuing Bank or, to the
extent that Lenders have made payments pursuant to this paragraph to reimburse
such Issuing Bank, then to such Lenders and such Issuing Bank as their interests
may appear. Any payment made by a Lender pursuant to this paragraph to reimburse
an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving
Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and
shall not relieve the Borrower of its obligation to reimburse such LC
Disbursement.
<PAGE>

                                                                              29

                  (f) Obligations Absolute. The Borrower's obligation to
reimburse LC Disbursements as provided in paragraph (e) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed strictly in
accordance with the terms of this Agreement under any and all circumstances
whatsoever and irrespective of (it being understood that any such payment by the
Borrower is without prejudice to, and does not constitute a waiver of, any
rights the Borrower may have or may acquire as a result of the payment by an
Issuing Bank of any draft or the reimbursement of the Borrower thereof) (i) any
lack of validity or enforceability of any Letter of Credit or this Agreement, or
any term or provision therein, (ii) any draft or other document presented under
a Letter of Credit proving to be forged, fraudulent or invalid in any respect or
any statement therein being untrue or inaccurate in any respect, (iii) payment
by an Issuing Bank under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit, or
(iv) any other event or circumstance whatsoever, whether or not similar to any
of the foregoing, that might, but for the provisions of this Section, constitute
a legal or equitable discharge of, or provide a right of setoff against, the
Borrower's obligations hereunder. Neither the Administrative Agent, the Lenders
nor any Issuing Bank, nor any of their Related Parties, shall have any liability
or responsibility by reason of or in connection with the issuance or transfer of
any Letter of Credit or any payment or failure to make any payment thereunder
(irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in transmission
or delivery of any draft, notice or other communication under or relating to any
Letter of Credit (including any document required to make a drawing thereunder),
any error in interpretation of technical terms or any consequence arising from
causes beyond the control of the applicable Issuing Bank; provided that the
foregoing shall not be construed to excuse the applicable Issuing Bank from
liability to the Borrower to the extent of any direct damages (as opposed to
consequential damages, claims in respect of which are hereby waived by the
Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the applicable Issuing Bank's failure to exercise care when
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof. The parties hereto expressly agree that,
in the absence of gross negligence or wilful misconduct on the part of an
Issuing Bank (as finally determined by a court of competent jurisdiction), such
Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their
face to be in substantial compliance with the terms of a Letter of Credit, an
Issuing Bank may, in its sole discretion, either accept and make payment upon
such documents without responsibility for further investigation, regardless of
any notice or information to the contrary, or refuse to accept and make payment
upon such documents if such documents are not in strict compliance with the
terms of such Letter of Credit.

                  (g) Disbursement Procedures. The applicable Issuing Bank
shall, promptly following its receipt thereof, examine all documents purporting
to represent a demand for payment under a Letter of Credit. Such Issuing Bank
shall promptly notify the Administrative Agent and the Borrower by telephone
(confirmed by telecopy) of such demand for payment and whether such Issuing Bank
has made or will make an LC Disbursement thereunder; provided that any failure
to give or delay in giving such notice

<PAGE>

                                                                              30

shall not relieve the Borrower of its obligation to reimburse such Issuing Bank
and the Lenders with respect to any such LC Disbursement.

                  (h) Interim Interest. If any Issuing Bank shall make any LC
Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in
full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is
made to but excluding the date that the Borrower reimburses such LC
Disbursement, at (i) in the case of an LC Disbursement denominated in Dollars,
the rate per annum then applicable to ABR Revolving Loans or (ii) in the case of
an LC Disbursement denominated in an Alternative Currency, the LIBO Rate (in the
case of an LC Disbursement denominated in Sterling) or EURIBO Rate (in the case
of an LC Disbursement denominated in Euro) that would apply to a Eurodollar Loan
with an interest period of one day plus the Applicable Rate with respect to
Eurodollar Loans; provided that, if the Borrower fails to reimburse such LC
Disbursement when due pursuant to paragraph (e) of this Section, then Section
2.12(c) shall apply. Interest accrued pursuant to this paragraph shall be for
the account of the applicable Issuing Bank, except that interest accrued on and
after the date of payment by any Lender pursuant to paragraph (e) of this
Section to reimburse the Issuing Bank shall be for the account of such Lender to
the extent of such payment.

                  (i) Replacement or Termination of an Issuing Bank. Any Issuing
Bank may be replaced at any time by written agreement among the Borrower and the
successor Issuing Bank (with notice to the Administrative Agent and the replaced
Issuing Bank). An Issuing Bank also may be terminated as an Issuing Bank
hereunder by mutual agreement of the Borrower and such Issuing Bank and notice
to the Administrative Agent, if after giving effect to such termination there
remains at least one Issuing Bank hereunder. The Administrative Agent shall
notify the Lenders of any such replacement or termination of an Issuing Bank. At
the time any such replacement or termination shall become effective, the
Borrower shall pay all unpaid fees accrued for the account of the replaced or
terminated Issuing Bank pursuant to Section 2.11(b). From and after the
effective date of any such replacement or termination, (i) in the case of a
replacement, the successor Issuing Bank shall have all the rights and
obligations of an Issuing Bank under this Agreement with respect to Letters of
Credit to be issued thereafter and (ii) references herein to the term "Issuing
Bank" shall be deemed to refer to such successor (in the case of a replacement)
or to any previous Issuing Bank or to such successor and all previous Issuing
Banks, or to such terminated Issuing Bank (in the case of a termination), as the
context shall require. After the replacement or termination of an Issuing Bank
hereunder, the replaced or terminated Issuing Bank shall remain a party hereto
and shall continue to have all the rights and obligations of an Issuing Bank
under this Agreement with respect to Letters of Credit issued by it prior to
such replacement, but shall not be required to issue additional Letters of
Credit.

                  (j) Cash Collateralization. If any Event of Default shall
occur and be continuing, on the Business Day that the Borrower receives notice
from the Administrative Agent or the Required Lenders (or, if the maturity of
the Loans has been accelerated, Lenders with LC Exposure representing greater
than 50% of the total LC Exposure) demanding the deposit of cash collateral
pursuant to this paragraph, the

<PAGE>

                                                                              31

Borrower shall deposit in an account with the Administrative Agent, in the name
of the Administrative Agent and for the benefit of the Lenders, an amount in
cash equal to the aggregate undrawn amount of all outstanding Letters of Credit
plus the aggregate amount of all LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower as of such date (in the currency in
which such Letters of Credit and LC Disbursements are denominated) plus any
accrued and unpaid interest thereon; provided that the obligation to deposit
such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind,
upon the occurrence of any Event of Default with respect to the Borrower
described in clause (i) or (j) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the
obligations of the Borrower under this Agreement. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of
withdrawal, over such account. Other than any interest earned on the investment
of such deposits in Permitted Investments, which investments shall be made at
the option and sole discretion of the Administrative Agent (provided, that the
Administrative Agent shall use reasonable efforts to make such investments) such
deposits shall not bear interest. Interest or profits, if any, on such
investments shall accumulate in such account. Moneys in such account shall be
applied by the Administrative Agent to reimburse the applicable Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so
applied, shall be held for the satisfaction of the reimbursement obligations of
the Borrower for the LC Exposure at such time or, if the maturity of the Loans
has been accelerated (but subject to the consent of Lenders with LC Exposure
representing greater than 50% of the total LC Exposure), be applied to satisfy
other obligations of the Borrower under this Agreement. If the Borrower is
required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount and any interest or profits
thereon (to the extent not applied as aforesaid) shall be returned to the
Borrower within three Business Days after all Events of Default have been cured
or waived.

                  SECTION 2.06. Funding of Borrowings. (a) Each Lender shall
make each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 noon, Local Time (in the case
of a Eurodollar Loan) or 2:00 p.m., Local Time (in the case of an ABR Loan), to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders; provided that Swingline Loans shall be made as
provided in Section 2.04. The Administrative Agent will make such Loans
available to the Borrower by promptly crediting the amounts so received, in like
funds, to an account of the Borrower (i) in the United States, in the case of
Loans denominated in Dollars or (ii) in London, in the case of Loans denominated
in any Alternative Currency, in each case designated by the Borrower in the
applicable Borrowing Request; provided that Revolving Loans made to finance the
reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be
remitted by the Administrative Agent to the applicable Issuing Bank.

                  (b) Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender's share of such
Borrowing, the

<PAGE>

                                                                              32

Administrative Agent may assume that such Lender has made such share available
on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the
applicable Borrowing available to the Administrative Agent, then the applicable
Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each
day from and including the date such amount is made available to the Borrower to
but excluding the date of payment to the Administrative Agent, at (i) in the
case of such Lender, the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules
on interbank compensation or (ii) in the case of the Borrower, the interest rate
applicable to the Type of Borrowing for which such Lender has not made its share
available. If such Lender pays such amount to the Administrative Agent, then
such amount shall constitute such Lender's Loan included in such Borrowing.

                  SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing
initially shall be of the Type specified in the applicable Borrowing Request
and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower
may elect to convert such Borrowing to a different Type (if such Borrowing is
denominated in Dollars) or to continue such Borrowing and, in the case of a
Eurodollar Revolving Borrowing, may elect Interest Periods therefor, all as
provided in this Section. The Borrower may elect different options with respect
to different portions of the affected Borrowing, in which case each such portion
shall be allocated ratably among the Lenders holding the Loans comprising such
Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Swingline Borrowings, which
may not be converted. Notwithstanding any other provision of this Section, the
Borrower shall not be permitted to (i) change the currency of any Borrowing or
(ii) convert any Alternative Currency Borrowing to an ABR Borrowing.

                  (b) To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under Section 2.03 if the Borrower
were requesting a Revolving Borrowing of the Type resulting from such election
to be made on the effective date of such election. Each such telephonic Interest
Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or telecopy to the Administrative Agent of a written Interest Election
Request in a form approved by the Administrative Agent and signed by the
Borrower.

                  (c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02:

                  (i) the Borrowing to which such Interest Election Request
         applies and, if different options are being elected with respect to
         different portions thereof, the portions thereof to be allocated to
         each resulting Borrowing (in which case the information to be specified
         pursuant to clauses (iii) and (iv) below shall be specified for each
         resulting Borrowing);

<PAGE>

                                                                              33

                  (ii) the effective date of the election made pursuant to such
         Interest Election Request, which shall be a Business Day;

                  (iii) for any Borrowing denominated in Dollars, whether the
         resulting Borrowing is to be an ABR Borrowing or a Eurodollar
         Borrowing; and

                  (iv) if the resulting Borrowing is a Eurodollar Borrowing, the
         Interest Period to be applicable thereto after giving effect to such
         election, which shall be a period contemplated by the definition of the
         term "Interest Period".

If any such Interest Election Request requests a Eurodollar Borrowing but does
not specify an Interest Period, then the Borrower shall be deemed to have
selected an Interest Period of one month's duration.

                  (d) Promptly following receipt of an Interest Election
Request, the Administrative Agent shall advise each Lender of the details
thereof and of such Lender's portion of each resulting Borrowing.

                  (e) If the Borrower fails to deliver a timely Interest
Election Request with respect to a Eurodollar Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing (unless such Borrowing is denominated in an
Alternative Currency, in which case such Borrowing shall be continued as a
Eurodollar Borrowing having an Interest Period of one month's duration).
Notwithstanding any contrary provision hereof, if an Event of Default has
occurred and is continuing and the Administrative Agent, at the request of the
Required Lenders, so notifies the Borrower, then, so long as an Event of Default
is continuing (i) no outstanding Revolving Borrowing denominated in Dollars may
be converted to or continued as a Eurodollar Borrowing and (ii) unless repaid,
each Eurodollar Borrowing denominated in Dollars shall be converted to an ABR
Borrowing at the end of the Interest Period applicable thereto and (iii) unless
repaid, each Eurodollar Borrowing denominated in an Alternative Currency shall,
at the end of the Interest Period applicable thereto, be continued as a
Eurodollar Borrowing having an Interest Period of one month's duration.

                  SECTION 2.08. Termination and Reduction of Commitments. (a)
Unless previously terminated, the Commitments shall terminate on the Maturity
Date.

                  (b) The Borrower may at any time terminate, or from time to
time reduce, the Commitments, in either case, without premium or penalty;
provided that (i) each reduction of the Commitments shall be in an amount that
is an integral multiple of $500,000 and not less than $5,000,000 and (ii) the
Borrower shall not terminate or reduce the Commitments if, after giving effect
to any concurrent prepayment of the Loans in accordance with Section 2.10, the
Revolving Credit Exposures would exceed the total Commitments.

                  (c) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Commitments under paragraph (b) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying

<PAGE>

                                                                              34

such election and the effective date thereof. Promptly following receipt of any
notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each notice delivered by the Borrower pursuant to this Section shall be
irrevocable; provided that a notice of termination of the Commitments delivered
by the Borrower may state that such notice is conditioned upon the effectiveness
of other credit facilities, in which case such notice may be revoked by the
Borrower (by notice to the Administrative Agent on or prior to the specified
effective date) if such condition is not satisfied. Any termination or reduction
of the Commitments shall be permanent. Except as provided in Section 2.19(b),
each reduction of the Commitments shall be made ratably among the Lenders in
accordance with their respective Commitments.

                  SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The
Borrower hereby unconditionally promises to pay (i) to the Administrative Agent
for the account of each Lender the then unpaid principal amount of each
Revolving Loan on the Maturity Date and (ii) to the Swingline Lender the then
unpaid principal amount of each Swingline Loan on the earlier of the Maturity
Date and the first date after such Swingline Loan is made that is the 15th or
last day of a calendar month and is at least two Business Days after such
Swingline Loan is made.

                  (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts
of principal and interest payable and paid to such Lender from time to time
hereunder.

                  (c) The Administrative Agent shall maintain accounts in which
it shall record (i) the amount of each Loan made hereunder, the currency and
Type thereof and the Interest Period applicable thereto, (ii) the amount of any
principal or interest due and payable or to become due and payable from the
Borrower to each Lender hereunder and (iii) the amount of any sum received by
the Administrative Agent hereunder for the account of the Lenders and each
Lender's share thereof.

                  (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

                  (e) Any Lender may request that Loans made by it be evidenced
by a promissory note. In such event, the Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) and
in a form approved by the Administrative Agent. Thereafter, the Loans evidenced
by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).
<PAGE>

                                                                              35

                  SECTION 2.10. Prepayment of Loans. (a) The Borrower shall have
the right at any time and from time to time to prepay any Borrowing in whole or
in part, subject to Section 2.15 but otherwise without premium or penalty,
subject to prior notice in accordance with paragraph (c) of this Section.

                  (b) If, on any Revaluation Date for any Alternative Currency
Borrowing or any Alternative Currency Letter of Credit, the total Revolving
Credit Exposures exceed 105% of the total Commitments, the Borrower shall, on
the next Interest Payment Date in respect of such Borrowing (or, in the case of
a Revaluation Date for an Alternative Currency Letter of Credit, on the next
Interest Payment Date that is at least three Business Days after such
Revaluation Date), prepay Revolving Borrowings or Swingline Borrowings in an
aggregate amount such that, after giving effect thereto, the total Revolving
Credit Exposures do not exceed the total Commitments.

                  (c) The Borrower shall notify the Administrative Agent (and,
in the case of prepayment of a Swingline Loan, the Swingline Lender) by
telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving Borrowing, not later than 11:00 a.m., New
York City time, three Business Days before the date of prepayment, (ii) in the
case of prepayment of an ABR Revolving Borrowing, not later than 11:00 a.m., New
York City time, on the date of prepayment or (iii) in the case of prepayment of
a Swingline Loan, not later than 12:00 noon, New York City time, on the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date and the principal amount of each Borrowing or portion thereof to
be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of
termination is revoked in accordance with Section 2.08. Promptly following
receipt of any such notice relating to a Revolving Borrowing, the Administrative
Agent shall advise the Lenders of the contents thereof. Each partial prepayment
of any Revolving Borrowing shall be in an amount that would be permitted in the
case of an advance of a Revolving Borrowing of the same currency and Type as
provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be
applied ratably to the Loans included in the prepaid Borrowing. Prepayments
shall be accompanied by accrued interest to the extent required by Section 2.12.

                  SECTION 2.11. Fees. (a) The Borrower agrees to pay to the
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Applicable Rate on the average daily unused amount of the
Commitment of such Lender during the period from and including the Effective
Date to but excluding the date on which such Commitment terminates. Accrued
commitment fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the date on which the Commitments
terminate, commencing on the first such date to occur after the date hereof. All
commitment fees shall be computed on the basis of a year of 360 days and shall
be payable for the actual number of days elapsed (including the first day but
excluding the last day). For purposes of computing commitment fees, a Commitment
of a Lender shall be deemed to be used to the extent of the outstanding
Revolving Loans (based on Assigned Dollar Values, in the case of Alternative
Currency

<PAGE>

                                                                              36

Loans) and LC Exposure of such Lender (and the Swingline Exposure of such Lender
shall be disregarded for such purpose).

                  (b) The Borrower agrees to pay (i) to the Administrative Agent
for the account of each Lender a participation fee with respect to its
participations in Letters of Credit, which shall accrue at the same Applicable
Rate used to determine the interest rate applicable to Eurodollar Revolving
Loans on the average daily amount of such Lender's LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period
from and including the Effective Date to but excluding the later of the date on
which such Lender's Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to each Issuing Bank a fronting fee,
which shall accrue at the rate or rates per annum separately agreed upon between
the Borrower and such Issuing Bank on the average daily amount of the LC
Exposure attributable to Letters of Credit issued by such Issuing Bank
(excluding any portion thereof attributable to unreimbursed LC Disbursements)
during the period from and including the Effective Date to but excluding the
later of the date of termination of the Commitments and the date on which there
ceases to be any LC Exposure, as well as such Issuing Bank's standard fees with
respect to the issuance, amendment, renewal or extension of any Letter of Credit
or processing of drawings thereunder. Participation fees and fronting fees
accrued through and including the last day of March, June, September and
December of each year shall be payable on the third Business Day following such
last day, commencing on the first such date to occur after the Effective Date;
provided that all such fees shall be payable on the date on which the
Commitments terminate and any such fees accruing after the date on which the
Commitments terminate shall be payable on demand. Any other fees payable to an
Issuing Bank pursuant to this paragraph shall be payable within 10 days after
demand. All participation fees and fronting fees shall be computed on the basis
of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day).

                  (c) The Borrower agrees to pay to the Administrative Agent,
for its own account, fees payable in the amounts and at the times separately
agreed upon between the Borrower and the Administrative Agent.

                  (d) All fees payable hereunder shall be paid on the dates due,
in immediately available funds, to the Administrative Agent (or to the
applicable Issuing Bank, in the case of fees payable to it) for distribution, in
the case of commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

                  SECTION 2.12. Interest. (a) The Loans comprising each ABR
Borrowing (including each Swingline Loan that is an ABR Loan) shall bear
interest at the Alternate Base Rate plus the Applicable Rate.

                  (b) The Loans comprising each Eurodollar Borrowing shall bear
interest (i) in the case of a Eurodollar Revolving Borrowing denominated in
Dollars or Sterling, at the Adjusted LIBO Rate for the Interest Period in effect
for such Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar
Revolving Borrowing denominated in

<PAGE>

                                                                              37

Euro, at the Adjusted EURIBO Rate for the Interest Period in effect for such
Borrowing plus the Applicable Rate.

                  (c) Notwithstanding the foregoing, if any principal of or
interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of
any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the
preceding paragraphs of this Section or (ii) in the case of any other amount, 2%
plus the rate applicable to ABR Loans as provided in paragraph (a) of this
Section.

                  (d) Accrued interest on each Loan shall be payable in arrears
on each Interest Payment Date for such Loan and, in the case of Revolving Loans,
upon termination of the Commitments; provided that (i) interest accrued pursuant
to paragraph (c) of this Section shall be payable on demand, (ii) in the event
of any repayment or prepayment of any Loan (other than a prepayment of an ABR
Revolving Loan prior to the end of the Availability Period), accrued interest on
the principal amount repaid or prepaid shall be payable on the date of such
repayment or prepayment and (iii) in the event of any conversion of any
Eurodollar Revolving Loan prior to the end of the current Interest Period
therefor, accrued interest on such Loan shall be payable on the effective date
of such conversion.

                  (e) All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed on Revolving Borrowings
denominated in Sterling and interest computed by reference to the Alternate Base
Rate at times when the Alternate Base Rate is based on the Prime Rate shall be
computed on the basis of a year of 365 days (or 366 days in a leap year), and in
each case shall be payable for the actual number of days elapsed (including the
first day but excluding the last day). The applicable Alternate Base Rate,
Adjusted LIBO Rate or Adjusted EURIBO Rate or the EURIBO Rate shall be
determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error.

                  SECTION 2.13. Alternate Rate of Interest. If prior to the
commencement of any Interest Period for a Eurodollar Borrowing:

                  (a) the Administrative Agent reasonably determines (which
         reasonable determination shall be conclusive absent manifest error)
         that adequate and reasonable means do not exist for ascertaining the
         Adjusted LIBO Rate or the Adjusted EURIBO Rate as applicable, for such
         Interest Period; or

                  (b) the Administrative Agent is advised by the Required
         Lenders that the Adjusted LIBO Rate or the Adjusted EURIBO Rate, as
         applicable, for such Interest Period will not adequately and fairly
         reflect the cost to such Lenders of making or maintaining their Loans
         included in such Borrowing for such Interest Period;

<PAGE>

                                                                              38

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Revolving Borrowing to, or
continuation of any Revolving Borrowing as, a Eurodollar Borrowing shall be
ineffective and such Borrowing shall be converted to or continued on the last
day of the Interest Period applicable thereto as (A) if such Borrowing is
denominated in Dollars, an ABR Borrowing or (B) if such Borrowing is denominated
in an Alternative Currency, as a Borrowing with an Interest Period of one
month's duration bearing interest at a rate reasonably determined by the
Administrative Agent to be the cost to the Lenders of making or maintaining the
Loans comprising such Borrowing for such period plus the Applicable Rate with
respect to Eurodollar Loans (and such Borrowing shall be treated as a Eurodollar
Borrowing for all other purposes of this Agreement); provided that, at the at
the request of the Administrative Agent or the Borrower, the Administrative
Agent and the Borrower shall enter into negotiations for a period of no more
than 30 days for the purpose of agreeing to a substitute basis for determining
the rate of interest to be applied to such Borrowing and any substitute basis
agreed upon shall be, with the consent of the Lenders, binding on all parties to
this Agreement, (ii) if any Borrowing Request requests a Eurodollar Revolving
Borrowing denominated in Dollars, such Borrowing shall be made as an ABR
Borrowing (or such Borrowing shall not be made if the Borrower revokes (and in
such circumstances, such Borrowing Request may be revoked notwithstanding any
other provision of this Agreement) such Borrowing Request by telephonic notice,
confirmed promptly in writing, not later than 10:00 a.m., New York City time, on
the proposed date of such Borrowing) and (iii) if any Borrowing Request requests
a Eurodollar Revolving Borrowing denominated in an Alternative Currency, such
Borrowing shall be made as an ABR Borrowing denominated in Dollars (or such
Borrowing shall not be made if the Borrower revokes (and in such circumstances,
such Borrowing Request may be revoked notwithstanding any other provision of
this Agreement) such Borrowing request by telephonic notice, confirmed promptly
in writing, not later than 10:00 a.m., New York City time, on the proposed date
of such Borrowing); provided that if the circumstances giving rise to such
notice do not affect all applicable currencies, then Revolving Borrowings in the
currencies that are not affected shall be permitted.

                  SECTION 2.14. Increased Costs. (a) If any Change in Law (other
than with respect to Taxes, which shall be governed exclusively by Section 2.16)
shall:

                  (i) impose, modify or deem applicable any reserve, special
         deposit or similar requirement against assets of, deposits with or for
         the account of, or credit extended by, any Lender (except any such
         reserve requirement reflected in the Adjusted LIBO Rate or the Adjusted
         EURIBO rate, as applicable) or any Issuing Bank; or

                  (ii) impose on any Lender or any Issuing Bank or the London
         interbank market any other condition affecting this Agreement or
         Eurodollar Loans made by such Lender or any Letter of Credit or
         participation therein;

<PAGE>

                                                                              39

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its
obligation to make any such Loan) or to increase the cost to such Lender or such
Issuing Bank of participating in, issuing or maintaining any Letter of Credit or
to reduce the amount of any sum received or receivable by such Lender or the
Issuing Bank hereunder (whether of principal, interest or otherwise) by an
amount deemed by such Lender or Issuing Bank to be material (excluding for
purposes of this Section 2.14 any such increased costs resulting from Taxes or
Other Taxes, as to which Section 2.16 shall govern), then the Borrower will pay
to such Lender or such Issuing Bank, as the case may be, such additional amount
or amounts as will compensate such Lender or such Issuing Bank, as the case may
be, for such additional costs incurred or reduction suffered.

                  (b) If any Lender or Issuing Bank determines that any Change
in Law regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender's or Issuing Bank's capital or on the capital
of such Lender's or Issuing Bank's holding company, if any, as a consequence of
this Agreement or the Loans made by, or participations in Letters of Credit held
by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a
level below that which such Lender or Issuing Bank or such Lender's or Issuing
Bank's holding company could have achieved but for such Change in Law (taking
into consideration such Lender's or Issuing Bank's policies and the policies of
such Lender's or Issuing Bank's holding company with respect to capital
adequacy) by an amount deemed by such Lender or Issuing Bank to be material,
then from time to time the Borrower will pay to such Lender or Issuing Bank, as
the case may be, such additional amount or amounts as will compensate such
Lender or Issuing Bank or such Lender's or Issuing Bank's holding company for
any such reduction suffered.

                  (c) A certificate of a Lender or the applicable Issuing Bank
setting forth the amount or amounts necessary to compensate such Lender or
Issuing Bank or its holding company, as the case may be, as specified in
paragraph (a) or (b) of this Section, together with a reasonably detailed
description of the basis therefor, and including a certification by such Lender
or Issuing Bank that its claim for such compensation has been calculated and
made in the same manner as under other credit agreements with other borrowers
that are similarly situated and with respect to which the event entitling such
Lender or Issuing Bank to compensation hereunder also entitled such Lender or
Issuing Bank to compensation thereunder, shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender or
Issuing Bank, as the case may be, the amount shown as due on any such
certificate within 30 days after receipt thereof.

                  (d) Failure or delay on the part of any Lender or Issuing Bank
to demand compensation pursuant to this Section shall not constitute a waiver of
such Lender's or Issuing Bank's right to demand such compensation; provided that
the Borrower shall not be required to compensate a Lender or an Issuing Bank
pursuant to this Section for any increased costs or reductions incurred more
than 180 days prior to the date that such Lender or Issuing Bank, as the case
may be, notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender's or Issuing Bank's intention to claim
compensation therefor; provided further that, if the Change in Law

<PAGE>

                                                                              40

giving rise to such increased costs or reductions is retroactive, then the
180-day period referred to above shall be extended to include the period of
retroactive effect thereof.

                  (e) For the avoidance of doubt, the amount or amounts payable
by the Borrower pursuant to this Section 2.14 shall not include any amount or
amounts payable by the Borrower pursuant to Section 2.18.

                  SECTION 2.15. Break Funding Payments. In the event of (a) the
payment of any principal of any Eurodollar Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any Eurodollar Loan other than on the last day
of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Loan on the date specified in any notice
delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.10(c) and is revoked in accordance therewith), or (d) the
assignment of any Eurodollar Loan other than on the last day of the Interest
Period applicable thereto as a result of a request by the Borrower pursuant to
Section 2.19, then, in any such event, the Borrower shall compensate each Lender
for the loss, cost and expense attributable to such event. In the case of a
Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount reasonably determined by such Lender to be the excess, if any,
of (i) the amount of interest which would have accrued on the principal amount
of such Loan had such event not occurred, at the Adjusted LIBO Rate (or, in the
case of a Loan denominated in Euro, the Adjusted EURIBO Rate) that would have
been applicable to such Loan, for the period from the date of such event to the
last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the
Interest Period for such Loan), over (ii) the amount of interest (as reasonably
determined by such Lender) which would accrue on such principal amount for such
period at the interest rate which such Lender would bid were it to bid, at the
commencement of such period, for deposits in the applicable currency and of a
comparable amount and period from other banks in the eurocurrency market. A
certificate of any Lender setting forth any amount or amounts that such Lender
is entitled to receive pursuant to this Section, together with a reasonably
detailed calculation of such amount, shall be delivered to the Borrower and
shall be conclusive absent manifest error. The Borrower shall pay such Lender
the amount shown as due on any such certificate within 30 days after receipt
thereof.

                  SECTION 2.16. Taxes. (a) Any and all payments by or on account
of any obligation of the Borrower hereunder shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that if the
Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from
such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions for Indemnified Taxes and Other Taxes
(including any such deductions applicable to additional sums payable under this
Section 2.16(a)) the Administrative Agent, Lender or Issuing Bank (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrower shall make such deductions and (iii) the
Borrower shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

<PAGE>

                                                                              41

                  (b) In addition, and without duplication of paragraph (a)
hereof, the Borrower shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

                  (c) The Borrower shall indemnify the Administrative Agent,
each Lender and each Issuing Bank, within 30 days after written demand therefor,
for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or such Issuing Bank, as the case may be, on
or with respect to any payment by or on account of any obligation of the
Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.16) and any
penalties, interest and reasonable expenses (other than Excluded Taxes) arising
therefrom or with respect thereto; provided, that the Administrative Agent or
such Lender or Issuing Bank, as the case may be, provides the Borrower with a
written record therefor setting forth in reasonable detail the basis and
calculation of such amounts.

                  (d) As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, to the
extent such a receipt is issued therefor, or other evidence of such payment
reasonably satisfactory to the Administrative Agent.

                  (e) Any Foreign Lender that is entitled to an exemption from
or reduction of any Tax under the law of the jurisdiction in which the Borrower
is located, or any treaty to which such jurisdiction is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate. Without limiting the generality of the
foregoing, each Foreign Lender shall deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender
under this Agreement (and from time to time thereafter as required upon the
expiration, obsolescence or invalidity upon the request of the Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do
so), whichever of the following is applicable:

                  (i) duly completed copies of the Internal Revenue Service Form
         W-8BEN claiming eligibility for benefits of an income tax treaty to
         which the United States of America is a party;

                  (ii) duly completed copies of Internal Revenue Service Form
         W-8ECI;

                  (iii) in the case of a Foreign Lender claiming the benefits of
         the exemption for portfolio interest under section 881(c) of the Code,
         (x) a certificate to the effect that such Foreign Lender is not (A) a
         "bank" within the meaning of section
<PAGE>

                                                                              42

         881(c)(3)(A) of the code, (B) a "10 percent shareholder" of the Parent
         within the meaning of section 881(c)(3)(B) of the Code, or (C) a
         "controlled foreign corporation" described in section 8981(c)(3)(C) of
         the Code, and (y) duly completed copies of Internal Revenue Service
         Form W-8BEN;

                  (iv) any Lender that is not a Foreign Lender shall deliver to
         the Borrower Internal Revenue Service Form W-9 or any subsequent
         versions thereof or successors thereto, properly completed and duly
         executed. If any Lender fails to deliver Form W-9 or any subsequent
         versions thereof or successors thereto as required herein, then the
         Borrower may withhold from any payment to such party an amount
         equivalent to the applicable backup withholding Tax imposed by the
         Code, without reduction, or

                  (v) any other form prescribed by applicable law as a basis for
         claiming exemption from or a reduction in United States Federal
         withholding tax duly completed together with such supplementary
         documentation as may be prescribed by applicable law to permit the
         Borrower to determine the withholding or deduction required to be made.

                  (f) If the Administrative Agent or a Lender or an Issuing Bank
determines, in its sole discretion, that it has received a refund of any Taxes
or Other Taxes as to which it has been indemnified by the Borrower or with
respect to which the Borrower has paid additional amounts pursuant to this
Section 2.16, it shall pay over such refund to the Borrower (but only to the
extent of indemnity payments made, or additional amounts paid, by the Borrower
under this Section 2.16 with respect to the Taxes or Other Taxes giving rise to
such refund), net of all out-of-pocket expenses of the Administrative Agent or
such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the
Borrower, upon the request of the Administrative Agent or such Lender or Issuing
Bank, agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other reasonable charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender or Issuing Bank in the
event the Administrative Agent or such Lender or Issuing Bank is required to
repay such refund to such Governmental Authority. This Section shall not be
construed to require the Administrative Agent or any Lender to make available
its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrower or any other Person.

                  (g) Any Lender or Issuing Bank claiming any indemnity payment
or additional amounts payable pursuant to this Section 2.16 shall use reasonable
efforts (consistent with legal and regulatory restrictions) to file any
certificate or document reasonably requested by the Borrower following the
reasonable written request by the Borrower if the making of such a filing would
avoid the need for or reduce the amount of any such indemnity payment or
additional amounts that may thereafter accrue and would not, in the sole
determination of such Lender or Issuing Bank, require the disclosure of
information that the Lender or Issuing Bank reasonably considers confidential or
be otherwise disadvantageous to such Lender or Issuing Bank.

<PAGE>

                                                                              43

                  SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing
of Set-offs. (a) The Borrower shall make each payment required to be made by it
hereunder (whether of principal, interest, fees or reimbursement of LC
Disbursements, or of amounts payable under Section 2.14, 2.15 or 2.16, or
otherwise) prior to 2:00 p.m., Local Time, on the date when due, in immediately
available funds, without set-off or counterclaim. Any amounts received after
such time on any date may, in the discretion of the Administrative Agent (or, in
the case of any amounts received in respect of a Swingline Loan, at the
discretion of the Swingline Lender), be deemed to have been received on the next
succeeding Business Day for purposes of calculating interest thereon. All such
payments shall be made to the Administrative Agent at its offices at 270 Park
Avenue, New York, New York (or, in the case of amounts payable in an Alternative
Currency, at such other office in London as the Administrative Agent shall
specify for such purpose by notice the Borrower), except payments to be made
directly to an Issuing Bank or the Swingline Lender as expressly provided herein
and except that payments pursuant to Sections 2.14, 2.15, 2.16 and 9.03 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall
distribute any such payments received by it for the account of any other Person
to the appropriate recipient promptly following receipt thereof. If any payment
hereunder shall be due on a day that is not a Business Day, the date for payment
shall be extended to the next succeeding Business Day, and, in the case of any
payment accruing interest, interest thereon shall be payable for the period of
such extension. All payments hereunder shall be made in Dollars, except that (i)
all payments of principal or interest in respect of any Loan (or of any amount
payable under Section 2.15 or 2.18 or, at the request of the applicable Lender,
Section 2.14 or 2.16 in respect of any Loan) shall be made in the currency in
which such Loan is denominated, (ii) all payments in respect of an LC
Disbursement denominated in an Alternative Currency shall be payable in the
currency in which such LC Disbursement is denominated and (iii) all fees payable
in respect of an Alternative Currency Letter of Credit shall be payable in the
currency in which such Letter of Credit is denominated.

                  (b) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of interest and fees then due to such parties, and (ii) second, towards
payment of principal and unreimbursed LC Disbursements then due hereunder,
ratably among the parties entitled thereto in accordance with the amounts of
principal and unreimbursed LC Disbursements then due to such parties.

                  (c) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Revolving Loans or participations in LC Disbursements or
Swingline Loans resulting in such Lender receiving payment of a greater
proportion of the aggregate amount of its Revolving Loans and participations in
LC Disbursements and Swingline Loans and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater
proportion shall purchase (for cash at face value) participations in the
Revolving Loans and participations in LC Disbursements and

<PAGE>

                                                                              44

Swingline Loans of other Lenders to the extent necessary so that the benefit of
all such payments shall be shared by the Lenders ratably in accordance with the
aggregate amount of principal of and accrued interest on their respective
Revolving Loans and participations in LC Disbursements and Swingline Loans;
provided that (i) if any such participations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations
shall be rescinded and the purchase price restored to the extent of such
recovery, without interest, and (ii) the provisions of this paragraph shall not
be construed to apply to any payment made by the Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a
Lender as consideration for the assignment of or sale of a participation in any
of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

                  (d) Unless the Administrative Agent shall have received notice
from the Borrower prior to the date on which any payment is due to the
Administrative Agent for the account of the Lenders or an Issuing Bank hereunder
that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance
herewith and may, in reliance upon such assumption, distribute to the Lenders or
the applicable Issuing Bank, as the case may be, the amount due. In such event,
if the Borrower has not in fact made such payment, then each of the Lenders or
the applicable Issuing Bank, as the case may be, severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such
Lender or such Issuing Bank with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of
payment to the Administrative Agent, at the greater of the Federal Funds
Effective Rate and a rate determined by the Administrative Agent in accordance
with banking industry rules on interbank compensation.

                  (e) If any Lender shall fail to make any payment required to
be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b) or 2.17(d),
then the Administrative Agent may, in its discretion (notwithstanding any
contrary provision hereof), apply any amounts thereafter received by the
Administrative Agent for the account of such Lender to satisfy such Lender's
obligations under such Sections until all such unsatisfied obligations are fully
paid.

                  SECTION 2.18. Additional Reserve Costs. (a) If and so long as
any Lender is required to make special deposits with the Financial Services
Authority or the Bank of England or to maintain reserve asset ratios or pay fees
(other than deposits or reserves reflected in the determination of the Adjusted
LIBO Rate or Adjusted EURIBO Rate, as the case may be), in each case in respect
of any of such Lender's Alternative Currency Loans, such Lender may require the
Borrower to pay, contemporaneously with each payment of interest on such Loan,
additional interest on such Loan at a rate per

<PAGE>

                                                                              45

annum equal to the Mandatory Costs Rate, as defined in (and calculated in
accordance with the formula and in the manner set forth in) Exhibit D.

                  (b) If and so long as any Lender lending from a branch or
office located in a Participating Member State of the European Union that has
adopted the Euro is required to comply with reserve assets, liquidity, cash
margin or other requirements imposed by the European Central Bank or the
European System of Central Banks (but excluding requirements reflected in the
Statutory Reserve Rate or the Mandatory Costs Rate) in respect of any of such
Lender's Alternative Currency Loans, such Lender may require the Borrower to
pay, contemporaneously with each payment of interest on such Loan, additional
interest on such Loan at a rate per annum determined by such Lender to be the
cost to such Lender of complying with such requirements in relation to such
Loan.

                  (c) Any additional interest owed pursuant to paragraph (a) or
(b) above shall be determined by the relevant Lender, which determination shall
be conclusive absent manifest error, and notified to the Borrower (with a copy
to the Administrative Agent) at least five Business Days before each date on
which interest is payable for the relevant Loan, and such additional interest so
notified to the relevant Borrower by such Lender shall be payable to the
Administrative Agent for the account of such Lender on each date on which
interest is payable for such Loan.

                  SECTION 2.19. Mitigation Obligations; Replacement of Lenders.
(a) If any Lender requests compensation under Section 2.14, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.16, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.14 or 2.16, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not, in the reasonable judgment of such Lender, otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable
costs and expenses incurred by any Lender in connection with any such
designation or assignment.

                  (b) If any Lender requests compensation under Section 2.14, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.16,
or if any Lender defaults in its obligation to fund Loans hereunder, then the
Borrower may, (i) at its sole expense and effort, upon notice to such Lender and
the Administrative Agent, require such Lender to assign and delegate, without
recourse (in accordance with and subject to the restrictions contained in
Section 9.04), all its interests, rights and obligations under this Agreement to
an assignee that shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (A) such Lender
shall have received payment of an amount equal to the outstanding principal of
its Loans and participations in LC Disbursements and Swingline Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder,
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the Borrower (in the

<PAGE>

                                                                              46

case of all other amounts) and (B) in the case of any such assignment resulting
from a claim for compensation under Section 2.14 or payments required to be made
pursuant to Section 2.16, such assignment will result in a reduction in such
compensation or payments or (ii) terminate the Commitment of such Lender and
prepay all outstanding Loans of such Lender; provided, that (A) the Borrower
shall have provided prior notice to the Administrative Agent of such termination
and (B) after giving effect to such termination, the total amount of all
Commitments shall not be less than $300,000,000. A Lender shall not be required
to make any such assignment and delegation if, prior thereto, as a result of a
waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

                  SECTION 2.20. Redenomination of Sterling. (a) Each obligation
of any party to this Agreement to make a payment in Sterling shall be
redenominated into Euro if the United Kingdom adopts the Euro as its lawful
currency after the date hereof, at the time of such adoption (in accordance with
the EMU Legislation). If, in relation to Sterling, the basis of accrual of
interest expressed in this Agreement in respect of Sterling shall be
inconsistent with any convention or practice in the London interbank market for
the basis of accrual of interest in respect of the Euro, such expressed basis
shall be replaced by such convention or practice with effect from the date on
which the United Kingdom adopts the Euro as its lawful currency; provided that
if any Borrowing denominated in Sterling is outstanding immediately prior to
such date, such replacement shall take effect, with respect to such Borrowing,
at the end of the then current Interest Period.

                  (b) Each provision of this Agreement shall be subject to such
reasonable changes of construction as the Administrative Agent (in consultation
with the Borrower) may from time to time specify to be appropriate to reflect
the adoption of the Euro by the United Kingdom.

                  SECTION 2.21. Assigned Dollar Value. (a) With respect to each
Alternative Currency Borrowing, its "Assigned Dollar Value" shall mean the
following:

                  (i) the Dollar amount specified in the Borrowing Request
         therefor unless and until adjusted pursuant to the following clause
         (ii), and

                  (ii) as of each Revaluation Date with respect to such
         Alternative Currency Borrowing, the "Assigned Dollar Value" of such
         Borrowing shall be adjusted to be the Dollar Equivalent thereof (as
         determined by the Administrative Agent based upon the applicable Spot
         Exchange Rate, which determination shall be conclusive absent manifest
         error), subject to further adjustment in accordance with this clause
         (ii) thereafter.

                  (b) The Assigned Dollar Value of an Alternative Currency Loan
shall equal the Assigned Dollar Value of the Alternative Currency Borrowing of
which such Loan is a part multiplied by the percentage of such Borrowing
represented by such Loan.

<PAGE>

                                                                              47

                  (c) With respect to each Alternative Currency Letter of
Credit, its "Assigned Dollar Value" shall mean the following:

                  (i) the Dollar Equivalent of the amount of such Alternative
         Currency Letter of Credit (as determined by the Administrative Agent
         based on the applicable Spot Exchange Rate as of the date such
         Alternative Currency Letter of Credit was issued, which determination
         shall be conclusive absent manifest error), unless and until adjusted
         pursuant to the following clause (ii), and

                  (ii) as of each Revaluation Date with respect to such
         Alternative Currency Letter of Credit, the "Assigned Dollar Value" of
         such Letter of Credit shall be adjusted to be the Dollar Equivalent
         thereof (as determined by the Administrative Agent based upon the
         applicable Spot Exchange Rate as of the date that is one Business Day
         before such Revaluation Date, which determination shall be conclusive
         absent manifest error), subject to further adjustment in accordance
         with this clause (ii) thereafter.

                  (d) The "Assigned Dollar Value" of an LC Disbursement in
respect of an Alternative Currency Letter of Credit shall mean the Dollar
Equivalent thereof based upon the same Spot Exchange Rate used to determine the
Assigned Dollar Value of such Alternative Currency Letter of Credit in
accordance with paragraph (c) above.

                  (e) The Administrative Agent shall notify the Borrower and the
Lenders of any change in the Assigned Dollar Value of any Alternative Currency
Borrowing or Alternative Currency Letter of Credit (or LC Disbursement
thereunder) promptly following determination of such change.

                                  ARTICLE III

                         Representations and Warranties

                  Each of the Parent and the Borrower represents and warrants to
the Lenders that:

                  SECTION 3.01. Organization; Powers. Each of the Parent and the
Subsidiaries is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, has all requisite power and
authority to carry on its business as now conducted and, except where the
failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Material Adverse Effect, is qualified to do business in,
and is in good standing in, every jurisdiction where such qualification is
required.

                  SECTION 3.02. Authorization; Enforceability. The Transactions
to be entered into by each Loan Party are within such Loan Party's corporate
powers and have been duly authorized by all necessary corporate and, if
required, stockholder action. This Agreement has been duly executed and
delivered by the Parent and the Borrower and constitutes, and each other Loan
Document to which any Loan Party is to be a party,

<PAGE>

                                                                              48

when executed and delivered by such Loan Party, will constitute, a legal, valid
and binding obligation of the Parent, the Borrower and such other Loan Party (as
the case may be), enforceable in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors' rights generally and subject to general principles of
equity, regardless of whether considered in a proceeding in equity or at law.

                  SECTION 3.03. Governmental Approvals; No Conflicts. The
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as
have been obtained or made and are in full force and effect, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents any Loan Party or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon the Parent or any Subsidiary or its
assets the violation or breach of which would result in or would reasonably be
expected to result in a Material Adverse Effect, or give rise to a right
thereunder to require any payment to be made by the Parent or any Subsidiary,
and (d) will not result in the creation or imposition of any Lien on any asset
of the Parent or any Subsidiary.

                  SECTION 3.04. Financial Condition; No Material Adverse Change.
(a) The Parent has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of and
for the fiscal year ended December 31, 2002, reported on by Deloitte & Touche
LLP, independent public accountants, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended September 30, 2003, certified by its
chief financial officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash
flows of the Parent and its consolidated Subsidiaries as of such dates and for
such periods in accordance with GAAP, subject to year-end audit adjustments and
the absence of footnotes in the case of the statements referred to in clause
(ii) above.

                  (b) Since December 31, 2002, there has been no material
adverse change in the business, assets, operations or financial condition of the
Parent and the Subsidiaries, taken as a whole.

                  SECTION 3.05. Litigation and Environmental Matters. (a) There
are no actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of the Parent or the Borrower,
threatened against or affecting the Parent or any Subsidiary (i) as to which
there is a reasonable possibility of an adverse determination and that, if
adversely determined, would reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed
Matters) or (ii) that involve any of the Loan Documents or the Transactions.

                  (b) Except for the Disclosed Matters and except with respect
to any other matters that, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect, neither the
Parent nor any Subsidiary (i) has failed to comply with any Environmental Law or
to obtain, maintain or comply with any permit,

<PAGE>

                                                                              49

license or other approval required under any Environmental Law, (ii) has become
subject to any Environmental Liability, (iii) has received notice of any claim
with respect to any Environmental Liability or (iv) knows of any basis for any
Environmental Liability.

                  (c) Since the date of this Agreement, there has been no change
in the status of the Disclosed Matters that, individually or in the aggregate,
has resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

                  SECTION 3.06. Compliance with Laws and Agreements. Each of the
Parent and the Subsidiaries is in compliance with all laws, regulations and
orders of any Governmental Authority applicable to it or its property and all
indentures, agreements and other instruments binding upon it or its property,
except where the failure to do so, individually or in the aggregate, would not
reasonably be expected to result in a Material Adverse Effect. No Default has
occurred and is continuing.

                  SECTION 3.07. Investment Company Status. Neither the Parent
nor any of the Subsidiaries is an "investment company" as defined in, or subject
to regulation under, the Investment Company Act of 1940.

                  SECTION 3.08. Taxes. Each of the Parent and the Subsidiaries
has timely filed or caused to be filed all Federal and other material Tax
returns and reports required to have been filed and has paid or caused to be
paid all Taxes required to have been paid by it, except (a) Taxes that are being
contested in good faith by appropriate proceedings and for which the Parent or
such Subsidiary, as applicable, has set aside on its books adequate reserves or
(b) to the extent that the failure to do so would not reasonably be expected to
result in a Material Adverse Effect.

                  SECTION 3.09. ERISA. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such ERISA
Events for which liability is reasonably expected to occur, would reasonably be
expected to result in a Material Adverse Effect.

                  SECTION 3.10. Disclosure. Neither the Information Memorandum
nor any of the other reports, financial statements or other information
furnished by or on behalf of the Parent or the Borrower to the Administrative
Agent or any Lender in connection with the negotiation of the Loan Documents or
delivered thereunder, taken as a whole, contains any material misstatement of
fact or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information or
any information concerning future proposed and intended activities of the Parent
and the Subsidiaries, the Parent and the Borrower represent only that such
information was prepared in good faith based upon assumptions believed to be
reasonable at the time (it being understood that such projections and
information are forward looking statements which by their nature are subject to
significant uncertainties and contingencies, many of which are beyond the
Parent's and the Borrower's control, and that actual results may differ, perhaps
materially, from those expressed or implied in such

<PAGE>

                                                                              50

forward looking statements, and no assurance can be given that the projections
will be realized).

                  SECTION 3.11. Subsidiaries. Schedule 3.11 sets forth the name
and jurisdiction of organization of, and the direct or indirect ownership
interest of the Parent in, each Subsidiary, and identifies each Subsidiary that
is a Material Subsidiary, in each case, as of the Effective Date.

                                   ARTICLE IV

                                   Conditions

                  SECTION 4.01. Effective Date. The obligations of the Lenders
to make Loans and of the Issuing Banks to issue Letters of Credit hereunder
shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 9.02):

                  (a) The Administrative Agent (or its counsel) shall have
         received (i) from each party hereto either a counterpart of this
         Agreement signed on behalf of such party or written evidence
         satisfactory to the Administrative Agent (which may include telecopy
         transmission of a signed signature page of this Agreement) that such
         party has signed a counterpart of this Agreement and (ii) from each of
         the Borrower and each Guarantor a counterpart of the Guarantee
         Agreement signed on behalf of such party or written evidence
         satisfactory to the Administrative Agent (which may include telecopy
         transmission of a signed signature page of the Guarantee Agreement)
         that such party has signed a counterpart of the Guarantee Agreement.

                  (b) The Administrative Agent shall have received favorable
         written opinions (addressed to the Administrative Agent and the Lenders
         and dated the Effective Date) of each of Richard G. Raymond, General
         Counsel of the Borrower, and Shearman & Sterling LLP, counsel to the
         Loan Parties, substantially in the form of Exhibits C-1 and C-2,
         respectively, and covering such other matters relating to the Loan
         Parties, the Loan Documents or the Transactions as the Required Lenders
         shall reasonably request. The Parent and the Borrower hereby request
         such counsel to deliver such opinions.

                  (c) The Administrative Agent shall have received such
         documents and certificates as the Administrative Agent or its counsel
         may reasonably request relating to the organization, existence and good
         standing of the Loan Parties and the authorization of the Transactions,
         all in form and substance satisfactory to the Administrative Agent and
         its counsel.

                  (d) The Administrative Agent shall have received a
         certificate, dated the Effective Date and signed by the President, the
         Chief Executive Officer, a Vice President or a Financial Officer of
         each of the Parent and the Borrower,

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                                                                              51

         confirming compliance with the conditions set forth in paragraphs (a)
         and (b) of Section 4.02.

                  (e) The Administrative Agent shall have received all fees and
         other amounts due and payable on or prior to the Effective Date,
         including, to the extent invoiced, reimbursement or payment of all
         out-of-pocket expenses required to be reimbursed or paid by the
         Borrower hereunder.

                  (f) The Borrower shall have made arrangements satisfactory to
         the Administrative Agent for the termination of all commitments under,
         payment of all amounts accrued and owing under, and the release and
         termination of all Liens securing obligations under, the Existing
         Credit Agreement, in each case on the Effective Date.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding. Notwithstanding
the foregoing, the obligations of the Lenders to make Loans and of the Issuing
Bank to issue Letters of Credit hereunder shall not become effective unless each
of the foregoing conditions is satisfied (or waived pursuant to Section 9.02) at
or prior to 3:00 p.m., New York City time, on January 31, 2004 (and, in the
event such conditions are not so satisfied or waived, the Commitments shall
terminate at such time).

                  SECTION 4.02. Each Credit Event. The obligation of each Lender
to make a Loan on the occasion of any Borrowing, and of each Issuing Bank to
issue, amend, renew or extend any Letter of Credit (other than any extension or
renewal of any Letter of Credit without any increase in the stated amount of
such Letter of Credit), is subject to the satisfaction of the following
conditions:

                  (a) The representations and warranties of the Loan Parties set
         forth in the Loan Documents (except, in the case of Loans made and
         Letters of Credit issued after the Effective Date, the representation
         and warranty set forth in Section 3.04(b)) shall be true and correct in
         all material respects on and as of the date of such Borrowing or the
         date of issuance, amendment, renewal or extension of such Letter of
         Credit, as applicable, except to the extent such representations and
         warranties expressly relate to an earlier date (in which case such
         representations and warranties shall have been true and correct in all
         material respects with respect to such earlier date).

                  (b) At the time of and immediately after giving effect to such
         Borrowing or the issuance, amendment, renewal or extension of such
         Letter of Credit, as applicable, no Default shall have occurred and be
         continuing.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of
Credit (except those specified in the parenthetical contained in the
introductory paragraph of this Section 4.02) shall be deemed to constitute a
representation and warranty by the Parent and the Borrower on the date thereof
as to the matters specified in paragraphs (a) and (b) of this Section.

<PAGE>

                                                                              52

                                   ARTICLE V

                              Affirmative Covenants

                  Until the Commitments have expired or been terminated and the
principal of and interest on each Loan and all fees payable hereunder shall have
been paid in full and all Letters of Credit shall have expired or terminated and
all LC Disbursements shall have been reimbursed, the Parent and the Borrower
covenant and agree with the Lenders that:

                  SECTION 5.01. Financial Statements and Other Information. The
Parent or the Borrower will furnish to the Administrative Agent (and, when
furnished, the Administrative Agent will promptly furnish to the Lenders):

                  (a) within 90 days after the end of each fiscal year of the
         Parent, its audited consolidated balance sheet and related statements
         of operations, stockholders' equity and cash flows as of the end of and
         for such year, setting forth in each case in comparative form the
         figures for the previous fiscal year, all reported on by independent
         public accountants of recognized national standing (without a "going
         concern" or like qualification or exception and without any
         qualification or exception as to the scope of such audit) to the effect
         that such consolidated financial statements present fairly in all
         material respects the financial condition and results of operations of
         the Parent and its consolidated Subsidiaries on a consolidated basis in
         accordance with GAAP consistently applied; provided that it is
         understood and agreed that the delivery of the Parent's Form 10-K and
         annual report for the applicable fiscal year shall satisfy the
         requirements of this clause (a) if such materials contain the
         information required by this clause (a);

                  (b) within 45 days after the end of each of the first three
         fiscal quarters of each fiscal year of the Parent, its condensed
         consolidated balance sheet and related statements of operations,
         stockholders' equity and cash flows as of the end of and for such
         fiscal quarter and the then elapsed portion of the fiscal year, setting
         forth in each case in comparative form the figures for the
         corresponding period or periods of (or, in the case of the balance
         sheet, as of the end of) the previous fiscal year, all certified by one
         of its Financial Officers as presenting fairly in all material respects
         the financial condition and results of operations of the Parent and its
         consolidated Subsidiaries on a consolidated basis in accordance with
         GAAP consistently applied, subject to normal year-end audit adjustments
         and the absence of footnotes; provided that it is understood and agreed
         that the delivery of the Parent's Form 10-Q for the applicable fiscal
         quarter shall satisfy the requirements of this clause (b) if such
         materials contain the information required by this clause (b);

                  (c) concurrently with any delivery of financial statements
         under clause (a) or (b) above, a certificate of a Financial Officer of
         the Parent (i) certifying as to whether a Default has occurred and, if
         a Default has occurred, specifying the
<PAGE>

                                                                              53

         details thereof and any action taken or proposed to be taken with
         respect thereto, (ii) setting forth reasonably detailed calculations
         demonstrating compliance with Sections 6.07 and 6.08 and (iii) stating
         whether any change in GAAP or in the application thereof affecting the
         financial statements accompanying such certificate in any material
         respect has occurred since the date of the audited financial statements
         referred to in Section 3.04 and, if any such change has occurred,
         specifying the effect of such change on such financial statements;

                  (d) promptly after the same become publicly available, copies
         of all periodic and other reports, proxy statements and other materials
         filed by the Parent or any Subsidiary with the Securities and Exchange
         Commission, or any Governmental Authority succeeding to any or all of
         the functions of said Commission, or with any national securities
         exchange, or distributed by the Parent to its shareholders generally,
         as the case may be; and

                  (e) promptly following any request therefor, such other
         information regarding the operations, business affairs and financial
         condition of the Parent or any Subsidiary, or compliance with the terms
         of the Loan Documents, as the Administrative Agent or any Lender
         through the Administrative Agent may reasonably request.

Any financial statement, report, proxy statement or other material required to
be delivered pursuant to clause (a), (b) or (d) of this Section shall be deemed
to have been furnished to the Administrative Agent and each Lender on the date
that the Parent notifies the Administrative Agent that such financial statement,
report, proxy statement or other material is posted on the Securities and
Exchange Commission's website at www.sec.gov or on the Parent's website at
www.aam.com; provided, that the Administrative Agent will promptly inform the
Lenders of any such notification by the Parent; provided, further, that the
Parent will furnish paper copies of such financial statement, report, proxy
statement or material to the Administrative Agent or any Lender that requests,
by notice to the Parent, that the Parent do so, until the Parent receives notice
from the Administrative Agent or such Lender, as applicable, to cease delivering
such paper copies.

                  SECTION 5.02. Notices of Material Events. The Parent or the
Borrower will furnish to the Administrative Agent (and when furnished, the
Administrative Agent will promptly furnish to the Lenders) written notice of the
following, promptly after any executive officer or Financial Officer of the
Parent or the Borrower obtains actual knowledge thereof:

                  (a) the occurrence of any Default;

                  (b) the filing or commencement of any action, suit or
         proceeding by or before any arbitrator or Governmental Authority
         against or affecting the Parent or any Subsidiary that involves a
         reasonable possibility of an adverse determination and that, if
         adversely determined, would reasonably be expected to result in a
         Material Adverse Effect;

<PAGE>

                                                                              54

                  (c) the occurrence of any ERISA Event that, alone or together
         with any other ERISA Events that have occurred, would result in or
         would reasonably be expected to result in a Material Adverse Effect;
         and

                  (d) any other development that would result in or would
         reasonably be expected to result in a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Parent or the Borrower
setting forth the details of the event or development requiring such notice and
any action taken or proposed to be taken with respect thereto.

                  SECTION 5.03. Existence; Conduct of Business. The Parent and
the Borrower will, and will cause each of the other Subsidiaries to, do or cause
to be done all things necessary to preserve, renew and keep in full force and
effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of its business; provided that (i) the
foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (ii) neither the Parent nor any of
its Subsidiaries shall be required to preserve any rights, licenses, permits or
franchises, if the Parent or such Subsidiary shall determine that the
preservation thereof is no longer desirable in the conduct of its business and
if the loss thereof would not have and would not reasonably be expected to have
a Material Adverse Affect.

                  SECTION 5.04. Payment of Obligations. The Parent and the
Borrower will, and will cause each of the other Subsidiaries to, pay its
obligations, including Tax liabilities (but excluding Indebtedness), that, if
not paid, would reasonably be expected to result in a Material Adverse Effect
before the same shall become delinquent or in default, except where (a) the
validity or amount thereof is being contested in good faith by appropriate
proceedings and (b) the Parent, the Borrower or such other Subsidiary has set
aside on its books adequate reserves with respect thereto in accordance with
GAAP.

                  SECTION 5.05. Maintenance of Properties; Insurance. The Parent
and the Borrower will, and will cause each of the other Subsidiaries to, (a)
keep and maintain all property material to the conduct of its business in good
working order and condition, ordinary wear and tear excepted, and (b) maintain,
with financially sound and reputable insurance companies, insurance in such
amounts and against such risks as are reasonable and prudent.

                  SECTION 5.06. Books and Records; Inspection Rights. The Parent
and the Borrower will, and will cause each of the other Subsidiaries to, keep
proper financial books of record and account in which full, true and correct
entries are made of all financial dealings and transactions in relation to its
business and activities in order to produce its financial statements in
accordance with GAAP. The Parent and the Borrower will, and will cause each of
the other Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice and at the
applicable Lender's expense, to visit and inspect its properties, to examine and
make extracts from its books and records, and to discuss its affairs, finances
and
<PAGE>

                                                                              55

condition with its officers and independent accountants, all at such reasonable
times during normal business hours and as often as reasonably requested (subject
to reasonable requirements of confidentiality, including requirements imposed by
law or contract).

                  SECTION 5.07. Compliance with Laws. The Parent and the
Borrower will, and will cause each of the other Subsidiaries to, comply with all
laws, rules, regulations and orders of any Governmental Authority applicable to
it or its property, except where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect.

                  SECTION 5.08. Use of Proceeds and Letters of Credit. The
proceeds of the Loans will be used for general corporate purposes, including to
refinance Indebtedness under the Existing Credit Agreement. No part of the
proceeds of any Loan will be used, whether directly or indirectly, for any
purpose that entails a violation of any of the Regulations of the Board,
including Regulations T, U and X. Letters of Credit will be issued only to
support obligations of the Parent and Subsidiaries incurred in the ordinary
course of business.

                  SECTION 5.09. Additional Guarantors. If any Material
Subsidiary is formed or otherwise acquired after the date hereof or any
Subsidiary that is not a Material Subsidiary subsequently becomes a Material
Subsidiary, then, in each case, within 10 Business Days thereafter the Parent or
the Borrower shall notify the Administrative Agent thereof and cause such
Subsidiary to execute a supplement to the Guarantee Agreement (in the form
provided as an annex thereto or otherwise in form and substance reasonably
satisfactory to the Administrative Agent) in order to become a Guarantor.

                                   ARTICLE VI

                               Negative Covenants

                  Until the Commitments have expired or terminated and the
principal of and interest on each Loan and all fees payable hereunder have been
paid in full and all Letters of Credit have expired or terminated and all LC
Disbursements shall have been reimbursed, the Parent and the Borrower covenant
and agree with the Lenders that:

                  SECTION 6.01. Indebtedness. The Parent and the Borrower will
not permit any Subsidiary (other than the Borrower or a Guarantor) to create,
incur, assume or permit to exist any Indebtedness, including pursuant to any
Guarantee of Indebtedness of the Parent or another Subsidiary, except:

                  (a) Indebtedness owing to the Parent or another Subsidiary;

                  (b) Indebtedness of any Receivables Subsidiary incurred
         pursuant to any Permitted Receivables Financing; provided, that the
         aggregate amount of Receivables Financing Debt shall not exceed
         $200,000,000 at any time outstanding;
<PAGE>

                                                                              56

                  (c) Designated Secured Indebtedness incurred by any such
         Subsidiary; provided, that the aggregate principal amount of Designated
         Secured Indebtedness shall not exceed $200,000,000 at any time
         outstanding;

                  (d) Indebtedness of any such Subsidiary secured by a Lien
         permitted by clause (g) of Section 6.02, subject to the limitations set
         forth therein; and

                  (e) Guarantees by any such Subsidiary of Indebtedness of
         another Subsidiary (other than the Borrower or a Guarantor);

                  (f) Indebtedness of any Person that becomes a Subsidiary after
         the date hereof; provided, that such Indebtedness exists at the time
         such Person becomes a Subsidiary and is not created in contemplation of
         or in connection with such Person becoming a Subsidiary;

                  (g) Indebtedness of any such Subsidiary existing on the
         Effective Date and set forth on Schedule 6.01; and

                  (h) other unsecured Indebtedness of any such Subsidiary;
         provided that, at the time that any such Indebtedness is incurred,
         after giving effect to such incurrence and any related transactions
         then being consummated, the aggregate principal amount of all such
         Indebtedness of all such Subsidiaries then outstanding shall not exceed
         15% of Total Assets of the Parent.

                  SECTION 6.02. Liens. The Parent and the Borrower will not, and
will not permit any other Subsidiary to, create, incur, assume or permit to
exist any Lien on any property or asset now owned or hereafter acquired by it,
or assign or sell any income or revenues (including accounts receivable) or
rights in respect of any thereof, except:

                  (a) Permitted Encumbrances;

                  (b) any Lien on any property or asset of the Parent or any
         Subsidiary existing on the date hereof (other than Liens of the type
         permitted under clause (d) or (f) of this Section) and set forth in
         Schedule 6.02; provided that (i) such Lien shall not apply to any other
         property or asset of the Parent or any Subsidiary and (ii) such Lien
         shall secure only those obligations which it secures on the date hereof
         and extensions, renewals and replacements thereof that do not increase
         the outstanding principal amount thereof;

                  (c) any Lien existing on any property or asset prior to the
         acquisition thereof by the Parent or any Subsidiary or existing on any
         property or asset of any Person that becomes a Subsidiary after the
         date hereof prior to the time such Person becomes a Subsidiary;
         provided that (i) such Lien is not created in contemplation of or in
         connection with such acquisition or such Person becoming a Subsidiary,
         as the case may be, (ii) such Lien shall not apply to any other
         property or assets of the Parent or any Subsidiary and (iii) such Lien
         shall secure only those obligations which it secures on the date of
         such acquisition or the date such Person becomes a Subsidiary, as the
         case may be, and extensions, renewals
<PAGE>

                                                                              57

         and replacements thereof that do not increase the outstanding principal
         amount thereof;

                  (d) Liens on fixed or capital assets acquired, constructed or
         improved by the Parent or any Subsidiary; provided that (i) such Liens
         secure Indebtedness incurred to finance the acquisition, construction
         or improvement of such fixed or capital assets, including Capital Lease
         Obligations and any Indebtedness assumed in connection with the
         acquisition of any such assets or secured by a Lien on any such assets
         prior to the acquisition thereof, and extensions, renewals and
         replacements of any such Indebtedness that do not increase the
         outstanding principal amount thereof, (ii) such Liens and the
         Indebtedness secured thereby are incurred prior to or within 360 days
         after such acquisition or the completion of such construction or
         improvement, (iii) the Indebtedness secured thereby does not exceed the
         cost of acquiring, constructing or improving such fixed or capital
         assets, (iv) such Liens shall not apply to any other property or assets
         of the Parent or any Subsidiary (other than to accessions to such fixed
         or capital assets and provided that individual financings of equipment
         provided by a single lender may be cross-collateralized to other
         financings of equipment provided solely by such lender) and (v) the
         aggregate principal amount of Designated Secured Indebtedness shall not
         exceed $200,000,000 at any time outstanding;

                  (e) any other Lien on any property or asset of any Subsidiary
         that is not a Loan Party; provided, that (i) such Lien secures
         Indebtedness of such Subsidiary that is not Guaranteed by any Loan
         Party and (ii) the aggregate principal amount of Designated Secured
         Indebtedness shall not exceed $200,000,000 at any time outstanding;

                  (f) assignments and sales of Receivables and Related Security
         pursuant to a Permitted Receivables Financing and Liens arising
         pursuant to a Permitted Receivables Financing on Receivables and
         Related Security sold or financed in connection with such Permitted
         Receivables Financing; provided, that the aggregate amount of
         Receivables Financing Debt shall not exceed $200,000,000 at any time
         outstanding; and

                  (g) any other Lien securing Indebtedness of the Parent or any
         Subsidiary; provided, that the aggregate principal amount of all
         Indebtedness secured by such Liens shall not exceed $50,000,000 at any
         time outstanding.

                  SECTION 6.03. Fundamental Changes. The Parent and the Borrower
will not, and will not permit any other Subsidiary to, merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate
with it, or sell, transfer, lease or otherwise dispose of (in one transaction or
in a series of transactions) all or substantially all of the assets of the
Parent and the Subsidiaries, taken as a whole, or liquidate or dissolve, except
that, if at the time thereof and immediately after giving effect thereto no
Default shall have occurred and be continuing (a) any Person (other than the
Borrower) may merge into the Parent in a transaction in which the Parent is the
surviving corporation, (b) any Person may merge into any Subsidiary in a
transaction in which the
<PAGE>

                                                                              58

surviving entity is a Subsidiary and, if a Loan Party is a party to such merger,
then the surviving entity is a Loan Party, (c) any Subsidiary may sell,
transfer, lease or otherwise dispose of its assets to another Subsidiary and (d)
any Subsidiary (other than the Borrower or a Guarantor) may liquidate or
dissolve if the Parent determines in good faith that such liquidation or
dissolution is in the best interests of the Parent and is not materially
disadvantageous to the Lenders; provided that any such merger involving a Person
that is not a wholly owned Subsidiary immediately prior to such merger shall not
be permitted unless also permitted by Section 6.04.

                  SECTION 6.04. Investments, Loans, Advances, Guarantees and
Acquisitions. The Parent and Borrower will not, and will not permit any of the
other Subsidiaries (other than a Receivables Subsidiary) to, purchase, hold or
acquire (including pursuant to any merger with any Person that was not a wholly
owned Subsidiary prior to such merger) any Equity Interests, evidences of
indebtedness or other securities (including any option, warrant or other right
to acquire any of the foregoing) of, make or permit to exist any loans or
advances to, Guarantee any obligations of, or make or permit to exist any
investment or any other interest in, any other Person, or purchase or otherwise
acquire (in one transaction or a series of transactions) any assets of any other
Person constituting a business unit, except:

                  (a) Permitted Investments;

                  (b) investments in the Equity Interests of Subsidiaries;

                  (c) loans or advances made by the Parent to any Subsidiary and
         made by any Subsidiary to the Parent or any other Subsidiary;

                  (d) Guarantees by the Parent of obligations of any Subsidiary
         and Guarantees by any Subsidiary of obligations of the Parent or any
         other Subsidiary, subject to Section 6.01 in the case of Guarantees by
         a Subsidiary that is not a Loan Party;

                  (e) loans and advances to employees in the ordinary course of
         business of the Parent and the Subsidiaries as presently conducted in
         an aggregate amount not to exceed $10,000,000 at any time outstanding;
         and

                  (f) other investments, loans, advances, acquisitions and
         Guarantees; provided that, at the time any such investment, loan,
         advance, acquisition or Guarantee is made and immediately after giving
         effect thereto, no Default shall have occurred or be continuing.

                  SECTION 6.05. Transactions with Affiliates. The Parent and the
Borrower will not, and will not permit any of the other Subsidiaries to, sell,
lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (a) at prices and on terms and
conditions not less favorable to the Parent, the Borrower or such Subsidiary
than could be obtained on an arm's-length basis from unrelated third parties,
(b) transactions between or among the Parent and its
<PAGE>

                                                                              59

Subsidiaries not involving any other Affiliate, (c) advances to employees
permitted by Section 6.04, (d) any payment of dividends or any other
distribution upon any shares of any class of Equity Interests of the Borrower or
any of the other Subsidiaries, (e) fees, compensation and other benefits paid
to, and customary indemnity and reimbursement provided on behalf of, officers,
directors and employees of any Loan Party in the ordinary course of business,
(f) any employment agreement entered into by the Parent or any of the
Subsidiaries in the ordinary course of business, (g) any Permitted Receivables
Financing and (h) transactions and agreements in existence on the Effective Date
and listed on Schedule 6.05 and, in each case, any amendment thereto that is not
disadvantageous to the Lenders in any material respect.

                  SECTION 6.06. Restrictive Agreements. The Parent will not
permit any Subsidiary (other than a Receivables Subsidiary) that is not a Loan
Party to, directly or indirectly, enter into, incur or permit to exist any
agreement or other arrangement in respect of Indebtedness of such Subsidiary
that is secured or that is Guaranteed by a Loan Party that prohibits, restricts
or imposes any condition upon (a) the ability of such Subsidiary to create,
incur or permit to exist any Lien upon any of its property or assets, or (b) the
ability of such Subsidiary to pay dividends or other distributions with respect
to any of its Equity Interests or to make or repay loans or advances to the
Parent or any other Loan Party or to Guarantee Indebtedness of the Parent or any
other Loan Party; provided, that (i) the foregoing shall not apply to
restrictions and conditions imposed by law or this Agreement, (ii) the foregoing
shall not apply to restrictions and conditions existing on the date hereof
identified on Schedule 6.06 or to any extension or renewal thereof, or any
amendment or modification thereto that does not expand the scope of any such
restriction or condition, (iii) the foregoing shall not apply to customary
restrictions and conditions contained in agreements relating to the sale of a
Subsidiary pending such sale, provided such restrictions and conditions apply
only to the Subsidiary that is to be sold and such sale is permitted hereunder,
(iv) clause (a) of the foregoing shall not apply to restrictions or conditions
imposed by any agreement relating to secured Indebtedness permitted by this
Agreement if such restrictions or conditions apply only to the property or
assets securing such Indebtedness and (v) clause (a) of the foregoing shall not
apply to customary provisions in leases and other contracts restricting the
assignment thereof.

                  SECTION 6.07. Leverage Ratio. The Parent will not permit the
Leverage Ratio to exceed to 2.75 to 1.00 at any time.

                  SECTION 6.08. Net Worth. The Parent will not permit
Consolidated Net Worth, at the end of any fiscal quarter, to be less than the
sum of (a) 75% of Consolidated Net Worth as of December 31, 2003 plus (b) 50% of
Consolidated Net Income for each fiscal quarter with positive Consolidated Net
Income that ends after December 31, 2003 and at or prior to the end of such
fiscal quarter, plus (c) 100% of each increase in Consolidated Net Worth that
occurs after the Effective Date and at or prior to the end of such fiscal
quarter and is attributable to the issuance of Equity Interests.
<PAGE>

                                                                              60

                                  ARTICLE VII

                                Events of Default

                  If any of the following events ("Events of Default") shall
occur:

                  (a) the Borrower shall fail to pay any principal of any Loan
         or any reimbursement obligation in respect of any LC Disbursement when
         and as the same shall become due and payable, whether at the due date
         thereof or at a date fixed for prepayment thereof or otherwise;

                  (b) the Borrower shall fail to pay any interest on any Loan or
         any fee or any other amount (other than an amount referred to in clause
         (a) of this Article) payable under this Agreement, when and as the same
         shall become due and payable, and such failure shall continue
         unremedied for a period of five Business Days;

                  (c) any representation or warranty made or deemed made by or
         on behalf any Loan Party in or in connection with any Loan Document or
         any amendment or modification thereof or waiver thereunder, or in any
         report, certificate or financial statement furnished pursuant to or in
         connection with any Loan Document or any amendment or modification
         thereof or waiver thereunder, shall prove to have been incorrect in any
         material respect when made or deemed made;

                  (d) the Parent or the Borrower shall fail to observe or
         perform any covenant, condition or agreement contained in clause (a) of
         Section 5.02 or in Section 5.03 (with respect to the existence of the
         Parent or the Borrower) or 5.08 or in Article VI (other than Section
         6.05);

                  (e) any Loan Party shall fail to observe or perform any
         covenant, condition or agreement contained in any Loan Document (other
         than those specified in clause (a), (b) or (d) of this Article), and
         such failure shall continue unremedied for a period of 30 days after
         notice thereof from the Administrative Agent to the Borrower (which
         notice will be given at the request of any Lender);

                  (f) the Parent or any Subsidiary shall fail to make any
         payment of principal, interest or premium (regardless of amount) in
         respect of any Material Indebtedness when and as the same shall become
         due and payable, and such failure shall continue after the expiration
         of the grace period (if any) for such failure specified in the
         agreement or instrument governing such Indebtedness;

                  (g) the Parent or any Subsidiary shall fail to observe or
         perform any term, covenant, condition or agreement contained in any
         agreement or instrument evidencing or governing any Material
         Indebtedness, if such failure results in any Material Indebtedness
         becoming due prior to its scheduled maturity; provided that this clause
         (g) shall not apply to secured Indebtedness that becomes due as a
         result of the voluntary sale or transfer of the property or assets
         securing such Indebtedness;
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                                                                              61

                  (h) the Parent or any Subsidiary shall fail to observe or
         perform any term, covenant, condition or agreement (other than the
         failure to pay principal, interest or premiums) contained in the
         indenture governing the Existing Subordinated Debt, and such failure
         shall continue after the expiration of the grace period (if any) for
         such failure specified in such indenture, if such failure enables or
         permits (with or without the giving of notice, the lapse of time or
         both) the holder or holders of the Existing Subordinated Debt or the
         trustee on its or their behalf to cause the Existing Subordinated Debt
         to become due, or to require the prepayment, repurchase, redemption or
         defeasance thereof, prior to its scheduled maturity;

                  (i) an involuntary proceeding shall be commenced or an
         involuntary petition shall be filed in a court of competent
         jurisdiction seeking (i) liquidation, reorganization or other relief in
         respect of the Parent or any Subsidiary (other than an Excluded
         Subsidiary) or its debts, or of a substantial part of its assets, under
         any Federal, state or foreign bankruptcy, insolvency, receivership or
         similar law now or hereafter in effect or (ii) the appointment of a
         receiver, trustee, custodian, sequestrator, conservator or similar
         official for the Parent or any Subsidiary (other than an Excluded
         Subsidiary) or for a substantial part of its assets, and, in any such
         case, such proceeding or petition shall continue undismissed for 60
         days or an order or decree approving or ordering any of the foregoing
         shall be entered;

                  (j) the Parent or any Subsidiary (other than an Excluded
         Subsidiary) shall (i) voluntarily commence any proceeding or file any
         petition seeking liquidation, reorganization or other relief under any
         Federal, state or foreign bankruptcy, insolvency, receivership or
         similar law now or hereafter in effect, (ii) consent to the institution
         of, or fail to contest in a timely and appropriate manner, any
         proceeding or petition described in clause (i) of this Article, (iii)
         apply for or consent to the appointment of a receiver, trustee,
         custodian, sequestrator, conservator or similar official for the Parent
         or any Subsidiary (other than an Excluded Subsidiary) or for a
         substantial part of its assets, (iv) file an answer admitting the
         material allegations of a petition filed against it in any such
         proceeding, (v) make a general assignment for the benefit of creditors
         or (vi) take any action for the purpose of effecting any of the
         foregoing;

                  (k) the Parent or any Subsidiary (other than an Excluded
         Subsidiary) shall become unable, admit in writing its inability or fail
         generally to pay its debts as they become due;

                  (l) one or more judgments for the payment of money in an
         aggregate amount in excess of $35,000,000 (to the extent such amount is
         not either (i) covered by insurance and the applicable insurer has
         acknowledged liability or has been notified and is not disputing
         coverage or (ii) required to be indemnified by another Person that is
         reasonably likely to be able to satisfy its indemnity obligation (other
         than the Parent or a Subsidiary) and such Person has acknowledged such
         obligation or has been notified and is not disputing such obligation)
         shall be rendered against the Parent, any Subsidiary or any
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                                                                              62

         combination thereof and the same shall remain undischarged and
         unsatisfied for a period of 30 consecutive days during which execution
         shall not be effectively stayed, or any action shall be legally taken
         by a judgment creditor to attach or levy upon any assets of the Parent
         or any Subsidiary to enforce any such judgment;

                  (m) an ERISA Event shall have occurred that, in the opinion of
         the Required Lenders, when taken together with all other ERISA Events
         that have occurred, would reasonably be expected to result in a
         Material Adverse Effect; or

                  (n) a Change in Control shall occur;

then, and in every such event (other than an event with respect to the Parent or
the Borrower described in clause (i) or (j) of this Article), and at any time
thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the Borrower,
take either or both of the following actions, at the same or different times:
(i) terminate the Commitments, and thereupon the Commitments shall terminate
immediately, and (ii) declare the Loans then outstanding to be due and payable
in whole (or in part, in which case any principal not so declared to be due and
payable may thereafter be declared to be due and payable), and thereupon the
principal of the Loans so declared to be due and payable, together with accrued
interest thereon and all fees and other obligations of the Borrower accrued
hereunder, shall become due and payable immediately, without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by
the Borrower; and in case of any event with respect to the Parent or the
Borrower described in clause (i) or (j) of this Article, the Commitments shall
automatically terminate and the principal of the Loans then outstanding,
together with accrued interest thereon and all fees and other obligations of the
Borrower accrued hereunder, shall automatically become due and payable, without
presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrower.

                                  ARTICLE VIII

                            The Administrative Agent

                  Each of the Lenders and the Issuing Banks hereby irrevocably
appoints the Administrative Agent as its agent and authorizes the Administrative
Agent to take such actions on its behalf and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents,
together with such actions and powers as are reasonably incidental thereto.

                  The bank serving as the Administrative Agent hereunder shall
have the same rights and powers in its capacity as a Lender as any other Lender
and may exercise the same as though it were not the Administrative Agent, and
such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business
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                                                                              63

with the Parent or any Subsidiary or other Affiliate thereof as if it were not
the Administrative Agent hereunder.

                  The Administrative Agent shall not have any duties or
obligations except those expressly set forth in the Loan Documents. Without
limiting the generality of the foregoing, (a) the Administrative Agent shall not
be subject to any fiduciary or other implied duties, regardless of whether a
Default has occurred and is continuing, (b) the Administrative Agent shall not
have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated by the
Loan Documents that the Administrative Agent is required to exercise in writing
as directed by the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary under the circumstances as provided in Section
9.02), and (c) except as expressly set forth in the Loan Documents, the
Administrative Agent shall not have any duty to disclose, and shall not be
liable for the failure to disclose, any information relating to the Parent or
any of the Subsidiaries that is communicated to or obtained by the bank serving
as Administrative Agent or any of its Affiliates in any capacity. The
Administrative Agent shall not be liable for any action taken or not taken by it
with the consent or at the request of the Required Lenders (or such other number
or percentage of the Lenders as shall be necessary under the circumstances as
provided in Section 9.02) or in the absence of its own gross negligence or
wilful misconduct. The Administrative Agent shall be deemed not to have
knowledge of any Default unless and until written notice thereof is given to the
Administrative Agent by the Parent, the Borrower or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain
or inquire into (i) any statement, warranty or representation made in or in
connection with any Loan Document, (ii) the contents of any certificate, report
or other document delivered thereunder or in connection therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth in any Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in
Article IV or elsewhere in any Loan Document, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

                  The Administrative Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Administrative Agent may consult
with legal counsel (who may be counsel for a Loan Party), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

                  The Administrative Agent may perform any and all its duties
and exercise its rights and powers by or through any one or more sub-agents
appointed by the Administrative Agent. The Administrative Agent and any such
sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the
preceding paragraphs shall apply to any such
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                                                                              64

sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the
syndication of the credit facilities provided for herein as well as activities
as Administrative Agent.

                  Subject to the appointment and acceptance of a successor
Administrative Agent as provided in this paragraph, the Administrative Agent may
resign at any time by notifying the Lenders, the Issuing Banks and the Borrower.
Upon any such resignation, the Required Lenders shall have the right, in
consultation with the Borrower, to appoint a successor. If no successor shall
have been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may, on behalf of the
Lenders and the Issuing Banks, appoint a successor Administrative Agent which
shall be a bank with an office in New York, New York, and having a combined
capital and surplus of at least $500,000,000. Upon the acceptance of its
appointment as Administrative Agent hereunder by a successor, such successor
shall succeed to and become vested with all the rights, powers, privileges and
duties of the retiring Administrative Agent, and the retiring Administrative
Agent shall be discharged from its duties and obligations hereunder. The fees
payable by the Borrower to a successor Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between the Borrower
and such successor. After the Administrative Agent's resignation hereunder, the
provisions of this Article and Section 9.03 shall continue in effect for the
benefit of such retiring Administrative Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while it was acting as Administrative Agent.

                  Each Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender and based on
such documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
the Guarantee Agreement, any related agreement or any document furnished
hereunder or thereunder.

                  The parties hereto acknowledge that the Arrangers (in their
capacity as such) do not have any duties or responsibilities under any of the
Loan Documents and will not be subject to liability thereunder to any of the
Loan Parties for any reason.

                                   ARTICLE IX

                                  Miscellaneous

                  SECTION 9.01. Notices. (a) Except in the case of notices and
other communications expressly permitted to be given by telephone (and subject
to paragraph (b) below), all notices and other communications provided for
herein shall be in writing
<PAGE>

                                                                              65

and shall be delivered by hand or overnight courier service, mailed by certified
or registered mail or sent by telecopy, as follows:

                  (i) if to the Parent or the Borrower, to it at One Dauch
         Drive, Detroit, Michigan 48211, Attention of the Chief Financial
         Officer (Telecopy No. 313-758-4238) with a copy to the Treasurer
         (Telecopy No. 313-758-3936) and the General Counsel (Telecopy No.
         313-758-3897);

                  (ii) if to the Administrative Agent, to JPMorgan Chase Bank,
         Loan and Agency Services Group, 111 Fannin -10th Floor, Houston, TX
         77002, Attention of Clifford Trappani (Telecopy No. 713-750-2938), with
         a copy to JPMorgan Chase Bank, 270 Park Avenue - 4th Floor, NY 10017,
         Attention of Richard Duker (Telecopy No. 212-270-5127);

                  (iii) if to JPMorgan Chase Bank in its capacity as Issuing
         Bank, to it at JPMorgan Chase Bank, Standby Letter of Credit Department
         - 4th Floor, 10420 Highland Manor Drive, Tampa, FL 33610, Attention of
         James Alonzo (Telecopy No. 813-432-5161);

                  (iv) if to Standard Federal Bank N.A. in its capacity as a
         Swingline Lender, to it at 2600 West Big Beaver Road, Troy, MI 48084,
         Attention of Jason Bierlein (Telecopy No. 248-822-5748); and

                  (v) if to any other Lender, Issuing Bank or Swingline Lender,
         to it at its address (or telecopy number) set forth in its
         Administrative Questionnaire.

                  (b) Notices and other communications to the Lenders hereunder
may be delivered or furnished by electronic communications pursuant to
procedures approved by the Administrative Agent; provided that the foregoing
shall not apply to notices pursuant to Article II unless otherwise agreed by the
Administrative Agent and the applicable Lender. The Administrative Agent or the
Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it; provided that approval of such procedures may be
limited to particular notices or communications.

                  (c) Any party hereto may change its address or telecopy number
or the contact person for notices and other communications hereunder by notice
to the other parties hereto. All notices and other communications given to any
party hereto in accordance with the provisions of this Agreement shall be deemed
to have been given on the date of receipt.

                  SECTION 9.02. Waivers; Amendments. (a) No failure or delay by
the Administrative Agent, any Issuing Bank or any Lender in exercising any right
or power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Administrative Agent, the Issuing
Banks and the Lenders hereunder are cumulative
<PAGE>

                                                                              66

and are not exclusive of any rights or remedies that they would otherwise have.
No waiver of any provision of any Loan Document or consent to any departure by
any Loan Party therefrom shall in any event be effective unless the same shall
be permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. Without limiting the generality of the foregoing, the making of a Loan or
issuance of a Letter of Credit shall not be construed as a waiver of any
Default, regardless of whether the Administrative Agent, any Lender or any
Issuing Bank may have had notice or knowledge of such Default at the time.

                  (b) Neither this Agreement nor any other Loan Document nor any
provision hereof or thereof may be waived, amended or modified except, in the
case of this Agreement, pursuant to an agreement or agreements in writing
entered into by the Parent, the Borrower and the Required Lenders or by the
Parent, the Borrower and the Administrative Agent with the consent of the
Required Lenders or, in the case of any other Loan Document, pursuant to an
agreement or agreements in writing entered into by the Administrative Agent and
each Loan Party that is a party thereto with the consent of the Required
Lenders; provided that no such agreement shall (i) increase the Commitment of
any Lender without the written consent of such Lender, (ii) reduce the principal
amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or
reduce any fees payable hereunder, without the written consent of each Lender
affected thereby, (iii) postpone the scheduled date of payment of the principal
amount of any Loan or LC Disbursement, or any interest thereon, or any fees
payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the written
consent of each Lender affected thereby, (iv) change Section 2.17(b) or (c) in a
manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender, (v) change any of the provisions of
this Section or the definition of "Required Lenders" or any other provision
hereof specifying the number or percentage of Lenders required to waive, amend
or modify any rights hereunder or make any determination or grant any consent
hereunder, without the written consent of each Lender or (vi) release the Parent
or any Material Subsidiary from its Guarantee under the Guarantee Agreement, or
limit its liability in respect of such Guarantee, without the written consent of
each Lender; provided further, that no such agreement shall amend, modify or
otherwise affect the rights or duties of the Administrative Agent, any Issuing
Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, such Issuing Bank or the Swingline Lender, as the case may
be.

                  SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The
Borrower shall pay (i) all reasonable and documented out-of-pocket expenses
incurred by the Administrative Agent and its Affiliates, including the
reasonable fees, charges and disbursements of a single counsel for the
Administrative Agent, in connection with the syndication of the credit
facilities provided for herein, the preparation and administration of the Loan
Documents or any amendments, modifications or waivers of the provisions thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable and documented out-of-pocket expenses incurred
by each Issuing Bank in connection with the issuance, amendment, renewal or
extension of
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                                                                              67

any Letter of Credit or any demand for payment thereunder and (iii) all
reasonable and documented out-of-pocket expenses incurred by the Administrative
Agent, any Issuing Bank or any Lender, including the fees, charges and
disbursements of any counsel for the Administrative Agent, any Issuing Bank or
any Lender, in connection with the enforcement or protection of its rights in
connection with the Loan Documents, including its rights under this Section, or
in connection with the Loans made or Letters of Credit issued hereunder,
including all such out-of-pocket expenses incurred during any workout,
restructuring or negotiations in respect of such Loans or Letters of Credit.

                  (b) The Borrower shall indemnify the Administrative Agent,
each Issuing Bank and each Lender, and each Related Party of any of the
foregoing Persons (each such Person being called an "Indemnitee") against, and
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the reasonable fees, charges and
disbursements of any counsel for any Indemnitee, incurred by or asserted against
any Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of the Loan Documents or any agreement or instrument
contemplated hereby or thereby, the performance by the parties hereto of their
respective obligations hereunder or thereunder or the consummation of the
Transactions or any other transactions contemplated hereby or thereby, (ii) any
Loan or Letter of Credit or the use of the proceeds therefrom (including any
refusal by an Issuing Bank to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged
presence or release of Hazardous Materials on or from any property owned or
operated by the Parent or any of the Subsidiaries, or any Environmental
Liability related in any way to the Parent or any of the Subsidiaries, or (iv)
any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other
theory and regardless of whether any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or wilful misconduct of such
Indemnitee or any of its directors, trustees, officers or employees.

                  (c) To the extent that the Borrower fails to pay any amount
required to be paid by it to the Administrative Agent, any Issuing Bank or the
Swingline Lender under paragraph (a) or (b) of this Section, each Lender
severally agrees (but without limiting the obligation of the Borrower to pay
such amount) to pay to the Administrative Agent, the applicable Issuing Bank or
the Swingline Lender, as the case may be, such Lender's Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or indemnity
payment is sought) of such unpaid amount; provided that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, the
applicable Issuing Bank or the Swingline Lender in its capacity as such.

                  (d) To the extent permitted by applicable law, the Borrower
shall not assert, and hereby waives, any claim against any Indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages
(as opposed to direct or actual
<PAGE>

                                                                              68

damages) arising out of, in connection with, or as a result of, the Loan
Documents or any agreement or instrument contemplated thereby, the Transactions,
any Loan or Letter of Credit or the use of the proceeds thereof.

                  (e) All amounts due under this Section shall be payable
promptly after written demand therefor.

                  SECTION 9.04. Successors and Assigns. (a) The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns permitted hereby (including
any Affiliate of an Issuing Bank that issues any Letter of Credit), except that
(i) the Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender (and any
attempted assignment or transfer by the Borrower without such consent shall be
null and void) and (ii) no Lender may assign or otherwise transfer its rights or
obligations hereunder except in accordance with this Section. Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns
permitted hereby (including any Affiliate of an Issuing Bank that issues any
Letter of Credit), Participants (to the extent provided in paragraph (c) of this
Section) and, to the extent expressly contemplated hereby, the Related Parties
of each of the Administrative Agent, the Issuing Banks and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

                  (b) (i) Subject to the conditions set forth in paragraph
(b)(ii) below, any Lender may assign to one or more assignees all or a portion
of its rights and obligations under this Agreement (including all or a portion
of its Commitment and the Loans at the time owing to it) with the prior written
consent (such consent not to be unreasonably withheld) of:

                  (A) the Borrower; provided that no consent of the Borrower
         shall be required for an assignment to a Lender, an Affiliate of a
         Lender, an Approved Fund or, if an Event of Default under clause (a),
         (b), (i) or (j) of Article VII has occurred and is continuing, any
         other assignee;

                  (B) the Administrative Agent; provided that no consent of the
         Administrative Agent shall be required for an assignment of a
         Commitment to an assignee that is a Lender with a Commitment
         immediately prior to giving effect to such assignment; and

                  (C) each Issuing Bank.

                  (ii) Assignments shall be subject to the following additional
         conditions:

                  (A) except in the case of an assignment to a Lender or an
         Affiliate of a Lender or an assignment of the entire remaining amount
         of the assigning Lender's Commitment, the amount of the Commitment of
         the assigning Lender subject to each such assignment (determined as of
         the date the Assignment and Assumption with respect to such assignment
         is delivered to the Administrative Agent) shall
<PAGE>

                                                                              69

         not be less than $10,000,000 unless each of the Borrower and the
         Administrative Agent otherwise consent; provided that no such consent
         of the Borrower shall be required if an Event of Default under clause
         (a), (b), (i) or (j) of Article VII has occurred and is continuing;

                  (B) each partial assignment shall be made as an assignment of
         a proportionate part of all the assigning Lender's rights and
         obligations under this Agreement;

                  (C) the parties to each assignment shall execute and deliver
         to the Administrative Agent (and, in the case of an assignment
         requiring the consent of the Borrower pursuant to subparagraph
         (b)(i)(A) of this Section 9.04, the Borrower) an Assignment and
         Assumption, and shall pay to the Administrative Agent a processing and
         recordation fee of $3,500;

                  (D) the Administrative Agent shall notify the Borrower of each
         assignment of which the Administrative Agent becomes aware; provided
         that the failure of the Administrative Agent to provide such notice
         shall in no way affect any of the rights or obligations of the
         Administrative Agent under this Agreement or otherwise subject the
         Administrative Agent to any liability; and

                  (E) the assignee, if it shall not be a Lender, shall deliver
         to the Administrative Agent an Administrative Questionnaire.

                  For purposes of this Section 9.04(b), the term "Approved Fund"
has the following meaning:

                  "Approved Fund" means any Person (other than a natural person)
that is engaged in making, purchasing, holding or investing in bank loans and
similar extensions of credit in the ordinary course of its business and that is
administered or managed by a Lender, an Affiliate of a Lender or an entity or an
Affiliate of an entity that administers or manages a Lender.

                  (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified
in each Assignment and Assumption the assignee thereunder shall be a party
hereto and, to the extent of the interest assigned by such Assignment and
Assumption, have the rights and obligations of a Lender under this Agreement,
and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering
all of the assigning Lender's rights and obligations under this Agreement, such
Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.14, 2.15, 2.16 and 9.03). Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this Section 9.04 shall be treated for purposes of this Agreement as a sale by
such Lender of a participation in such rights and obligations in accordance with
paragraph (c) of this Section.
<PAGE>

                                                                              70

                  (iv) The Administrative Agent, acting for this purpose as an
agent of the Borrower, shall maintain at one of its offices a copy of each
Assignment and Assumption delivered to it and a register for the recordation of
the names and addresses of the Lenders, and the Commitment of, and principal
amount of the Loans and LC Disbursements owing to, each Lender pursuant to the
terms hereof from time to time (the "Register"). The entries in the Register
shall be conclusive, and the Parent, the Borrower, the Administrative Agent, the
Issuing Banks and the Lenders may treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes
of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Parent, the Borrower, any Issuing Bank, any
Lender and their respective representatives (including counsel and accountants),
at any reasonable time and from time to time upon reasonable prior notice.

                  (v) Upon its receipt of a duly completed Assignment and
Assumption executed by an assigning Lender and an assignee, the assignee's
completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph
(b) of this Section and any written consent to such assignment required by
paragraph (b) of this Section, the Administrative Agent shall accept such
Assignment and Assumption and record the information contained therein in the
Register. No assignment shall be effective for purposes of this Agreement unless
it has been recorded in the Register as provided in this paragraph.

                  (c) Any Lender may, without the consent of the Borrower, the
Administrative Agent, the Issuing Banks or the Swingline Lender, sell
participations to one or more banks or other entities (a "Participant") in all
or a portion of such Lender's rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender's obligations under this Agreement shall remain
unchanged, (B) such Lender shall remain solely responsible to the other parties
hereto for the performance of such obligations, (C) such Lender shall deliver to
the Administrative Agent and the Borrower (in such number of copies as shall be
requested by the recipient) duly signed completed copies of Internal Revenue
Service Form W-8IMY (or any successor thereto), together with any information
statements of exemption required under the Code for each Participant and (D) the
Loan Parties, the Administrative Agent, the Issuing Banks and the other Lenders
shall continue to deal solely and directly with such Lender in connection with
such Lender's rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement

                  (d) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender
<PAGE>

                                                                              71

from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender as a party hereto.

                  SECTION 9.05. Survival. All covenants, agreements,
representations and warranties made by the Parent and Borrower herein and in the
certificates or other instruments delivered in connection with or pursuant to
this Agreement shall be considered to have been relied upon by the other parties
hereto and shall survive the execution and delivery of this Agreement and the
making of any Loans and issuance of any Letters of Credit, regardless of any
investigation made by any such other party or on its behalf and notwithstanding
that the Administrative Agent, any Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at
the time any credit is extended hereunder, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any
fee or any other amount payable under this Agreement is outstanding and unpaid
or any Letter of Credit is outstanding and so long as the Commitments have not
expired or terminated. The provisions of Sections 2.14, 2.15, 2.16 and 9.03 and
Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the
Commitments or the termination of this Agreement or any provision hereof.

                  SECTION 9.06. Counterparts; Integration; Effectiveness. This
Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract. This Agreement,
the Guarantee Agreement and any separate letter agreements with respect to fees
payable to the Administrative Agent or any Issuing Bank constitute the entire
contract among the parties relating to the subject matter hereof and supersede
any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof. Except as provided in Section 4.01, this Agreement
shall become effective when it shall have been executed by the Administrative
Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties
hereto, and thereafter shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be
effective as delivery of a manually executed counterpart of this Agreement.

                  SECTION 9.07. Severability. Any provision of this Agreement
held to be invalid, illegal or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such invalidity, illegality
or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision
in a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

                  SECTION 9.08. Right of Setoff. Upon the occurrence and during
the continuance of an Event of Default, and provided that the Loans shall have
become or shall have been declared due and payable pursuant to the provisions of
Article VII, each
<PAGE>

                                                                              72

Lender is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
obligations at any time owing by such Lender to or for the credit or the account
of the Parent or the Borrower against any of and all the obligations of the
Borrower now or hereafter existing under this Agreement held by such Lender,
irrespective of whether or not such Lender shall have made any demand under this
Agreement and although such obligations may be unmatured. Any such deposits and
obligations may be combined in such setoff and application, regardless of the
currency in which such deposits and obligations are denominated. Each Lender
agrees to promptly notify the Parent and the Borrower after any such set-off and
application; provided, that the failure of any Lender to so notify the Parent
and the Borrower shall not affect the validity of any such set-off and
application. The rights of each Lender under this Section are in addition to
other rights and remedies (including other rights of setoff) which such Lender
may have.

                  SECTION 9.09. Governing Law; Jurisdiction; Consent to Service
of Process. (a) This Agreement shall be construed in accordance with and
governed by the law of the State of New York.

                  (b) Each of the Parent and the Borrower hereby irrevocably and
unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to any Loan Document, or for recognition or
enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent
permitted by law, in such Federal court. Each of the parties hereto agrees that
a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law. Nothing in this Agreement or any other Loan Document shall
affect any right that the Administrative Agent, any Issuing Bank or any Lender
may otherwise have to bring any action or proceeding relating to this Agreement
against the Borrower or its properties in the courts of any jurisdiction.

                  (c) Each of the Parent and the Borrower hereby irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do
so, any objection which it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to any Loan Document
in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

                  (d) Each party to this Agreement irrevocably consents to
service of process in the manner provided for notices in Section 9.01. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
<PAGE>

                                                                              73

                  SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS
AND CERTIFICATIONS IN THIS SECTION.

                  SECTION 9.11. Judgment Currency. The obligations hereunder of
the Borrower to make payments in Dollars or in an Alternative Currency, as the
case may be (the "Obligation Currency"), shall not be discharged or satisfied by
any tender or recovery pursuant to any judgment expressed in or converted into
any currency other than the Obligation Currency, except to the extent that such
tender or recovery results in the effective receipt by the Administrative Agent
or a Lender of the full amount of the Obligation Currency expressed to be
payable to the Administrative Agent or such Lender under this Agreement or the
other Loan Documents. If, for the purpose of obtaining or enforcing judgment
against the Parent, the Borrower or any other Loan Party in any court or in any
jurisdiction, it becomes necessary to convert into or from any currency other
than the Obligation Currency (such other currency being thereinafter referred to
as the "Judgment Currency") an amount due in the Obligation Currency, the
conversion shall be made, at the Currency Equivalent of such amount, as of the
date immediately preceding the day on which the judgment is given (such Business
Day being hereinafter referred to as the "Judgment Currency Conversion Date").

                  (a) If there is a change in the rate of exchange prevailing
between the Judgment Currency Conversion Date and the date of actual payment of
the amount due, the Parent or the Borrower, as the case may be, covenants and
agrees to pay, or cause to be paid, such additional amounts, if any (but in any
event not a lesser amount), as may be necessary to ensure that the amount paid
in the Judgment Currency, when converted at the rate of exchange prevailing on
the date of payment, will produce the amount of the Obligation Currency which
could have been purchased with the amount of Judgment Currency stipulated in the
judgment or judicial award at the rate of exchange prevailing on the Judgment
Currency Conversion Date.

                  (b) For purposes of determining the Currency Equivalent under
this Section 9.11, such amounts shall include any premium and costs payable in
connection with the purchase of the Obligation Currency.

                  SECTION 9.12. Headings. Article and Section headings and the
Table of Contents used herein are for convenience of reference only, are not
part of this
<PAGE>

                                                                              74

Agreement and shall not affect the construction of, or be taken into
consideration in interpreting, this Agreement.

                  SECTION 9.13. Confidentiality. Each of the Administrative
Agent, the Issuing Banks and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed
(a) to its and its Affiliates' directors, officers, employees and agents,
including accountants, legal counsel and other advisors (it being understood
that the Persons to whom such disclosure is made will be informed of the
confidential nature of such Information and instructed to keep such Information
confidential), (b) to the extent requested by any regulatory authority, (c) to
the extent required by applicable laws or regulations or by any subpoena or
similar legal process, (d) to any other party to this Agreement, (e) in
connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder,
(f) subject to an agreement containing provisions substantially the same as
those of this Section, to (i) any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower and its
obligations, (g) with the consent of the Parent or the Borrower or (h) to the
extent such Information (i) becomes publicly available other than as a result of
a breach of this Section or (ii) becomes available to the Administrative Agent,
any Issuing Bank or any Lender on a nonconfidential basis from a source other
than the Parent or the Borrower. For the purposes of this Section, "Information"
means all information received from the Parent or the Borrower relating to the
Parent or the Borrower or their respective businesses, other than any such
information that is available to the Administrative Agent, any Issuing Bank or
any Lender on a nonconfidential basis prior to disclosure by the Parent or the
Borrower. Any Person required to maintain the confidentiality of Information as
provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information. Notwithstanding anything express or implied
herein or in any other Loan Document to the contrary, "Information" shall not
include, and the Administrative Agent, each Lender, and each Loan Party (and the
respective partners, directors, officers, employees, agents, advisors and other
representatives of each of the foregoing) may disclose without limitation of any
kind, (a) any information with respect to the "tax treatment" and "tax
structure" (in each case within the meaning of Treasury Regulation Section
1.6011-4) of the transactions contemplated hereby and any facts that may be
relevant to understanding such tax treatment or tax structure, which facts shall
not include for this purpose the names of the parties or any other Person named
herein, or information that would permit identification of the parties or such
other Persons and (b) all materials of any kind (including opinions or other tax
analyses) that are provided to the Administrative Agent, such Lender, or any
Loan Party relating to such treatment and tax structure.

                  SECTION 9.14. Interest Rate Limitation. Notwithstanding
anything herein to the contrary, if at any time the interest rate applicable to
any Loan, together with all fees, charges and other amounts which are treated as
interest on such Loan under applicable law (collectively the "Charges"), shall
exceed the maximum lawful rate (the
<PAGE>

                                                                              75

"Maximum Rate") which may be contracted for, charged, taken, received or
reserved by the Lender holding such Loan in accordance with applicable law, the
rate of interest payable in respect of such Loan hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, such excess amount shall be paid to such Lender on subsequent
payment dates to the extent not exceeding the Maximum Rate.

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed by their respective authorized officers as of the
day and year first above written.

                                    AMERICAN AXLE & MANUFACTURING, INC.

                                       by
                                          /s/ Michael K. Simonte
                                          -------------------------------------
                                          Name: Michael K. Simonte
                                          Title: Treasurer

                                    AMERICAN AXLE & MANUFACTURING HOLDINGS, INC.

                                       by
                                          /s/ Michael K. Simonte
                                          -------------------------------------
                                          Name: Michael K. Simonte
                                          Title: Treasurer

                                    JPMORGAN CHASE BANK, individually and as
                                    Administrative Agent

                                       by
                                          /s/ John C. Riordan
                                          -------------------------------------
                                          Name: John C. Riordan
                                          Title: Vice President

                                    KEY BANK NATIONAL ASSOCIATION

                                       by
                                           /s/ W. Robert Perkins
                                          -------------------------------------
                                          Name: W. Robert Perkins
                                          Title: Vice President
<PAGE>

                                                                               2

                                    CREDIT LYONNAIS NEW YORK BRANCH

                                       by
                                           /s/ Lee E. Greve
                                          -------------------------------------
                                          Name: Lee E. Greve
                                          Title: First Vice President

                                    BANK OF CHINA, NEW YORK BRANCH

                                       by
                                          /s/ Kitty Sin
                                          -------------------------------------
                                          Name: Kitty Sin
                                          Title: First Vice President

                                       by /s/ William W. Smith
                                          -------------------------------------
                                          Name: William W. Smith
                                          Title: Chief Loan Officer

                                    UFJ BANK LIMITED

                                       by
                                           /s/ Stephen C. Small
                                          -------------------------------------
                                          Name: Stephen C. Small
                                          Title: Senior Vice President & Area
                                          Manager

                                    BNP PARIBAS

                                       by
                                          /s/ Rosalie C. Hawley
                                          -------------------------------------
                                          Name: Rosalie C. Hawley
                                          Title: Director

                                       by /s/ Peter C. Labrie
                                          -------------------------------------
                                          Name: Peter C. Labrie
                                          Title: Central Region Manager

                                    W.S. BANK, NATIONAL ASSOCIATION

                                       by
                                          /s/ Jeff Janza
                                          -------------------------------------
                                          Name: Jeff Janza
                                          Title: Vice President
<PAGE>

                                                                               3

                                    THE BANK OF TOKYO-MITUSBISHI, LTD.,
                                    CHICAGO BRANCH

                                       by
                                          /s/ Shinichiro Munechika
                                          -------------------------------------
                                          Name: Shinichiro Munechika
                                          Title: Deputy General Manager

                                    MERRILL LYNCH BANK USA

                                       by
                                          /s/ Louis Alder
                                          -------------------------------------
                                          Name: Louis Alder
                                          Title: Vice President

                                    STANDARD FEDERAL BANK, N.A.

                                       by
                                          /s/ Jason W. Bierlein
                                          -------------------------------------
                                          Name: Jason W. Bierlein
                                          Title: Vice President

                                    SUNTRUST BANK

                                       by
                                          /s/ Michael Murphey
                                          -------------------------------------
                                          Name: Michael Murphey
                                          Title: Director

                                    NATIONAL CITY BANK OF MICHIGAN/ILLINOIS

                                       by
                                          /s/ Brian H. Harbin
                                          -------------------------------------
                                          Name: Brian H. Harbin
                                          Title: Vice President

                                    HSBC BANK USA

                                       by
                                          /s/ John G. Tierney
                                          -------------------------------------
                                          Name: John G. Tierney
                                          Title: Vice President
<PAGE>

                                                                               4

                                    THE BANK OF NEW YORK

                                       by
                                          /s/ John M. Lokay, Jr.
                                          -------------------------------------
                                          Name: John M. Lokay, Jr.
                                          Title: Vice President

                                    SUMITOMO MITSUI BANKING CORPORATION

                                       by
                                          /s/ Robert H. Riley, III
                                          -------------------------------------
                                          Name: Robert H. Riley, III
                                          Title: Senior Vice President

                                    MIZUHO CORPORATE BANK, LTD.

                                       by
                                          /s/ Robert Gallagher
                                          -------------------------------------
                                          Name: Robert Gallagher
                                          Title: Vice President & Team Leader

                                    THE BANK OF NOVA SCOTIA

                                       by
                                          /s/ V. Gibson
                                          -------------------------------------
                                          Name: V. Gibson
                                          Title: Assistant Agent

                                    BANK OF CHINA, LOS ANGELES BRANCH

                                       by
                                          /s/ Haiping Liu
                                          -------------------------------------
                                          Name: Haiping Liu
                                          Title: First Vice President and Head
                                          of Los Angeles Branch

                                    BANK ONE, NA

                                       by
                                          /s/ Hassan Qayyum
                                          -------------------------------------
                                          Name: Hassan Qayyum
                                          Title: Associate
<PAGE>

                                                                               5

                                    WACHOVIA BANK, NATIONAL ASSOCIATION

                                       by
                                          /s/ Karen H. McClain
                                          -------------------------------------
                                          Name: Karen H. McClain
                                          Title: Managing Director

                                    THE NORINGHUKIN BANK, NEW YORK BRANCH

                                       by
                                          /s/ Fumiaki Ono
                                          -------------------------------------
                                          Name: Fumiaki Ono
                                          Title: General Manager

                                    BANK OF AMERICA, N.A.

                                       by
                                          /s/ Chas McDonell
                                          -------------------------------------
                                          Name: Chas McDonell
                                          Title: Managing Director

                                    MANUFACTURERS AND TRADERS TRUST COMPANY

                                       by
                                          /s/ Stewart Shettle
                                          -------------------------------------
                                          Name: Stewart Shettle
                                          Title: Vice President

                                    COMERICA BANK

                                       by
                                          /s/ Robert M. Ramirez
                                          -------------------------------------
                                          Name: Robert M. Ramirez
                                          Title: Vice President

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