Document:

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                                                                     EXHIBIT 4.2

                               RAYOVAC CORPORATION

                    8 1/2% SENIOR SUBORDINATED NOTES DUE 2013

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

                                    INDENTURE

                         Dated as of September 30, 2003

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

                         U.S. BANK NATIONAL ASSOCIATION

                                     TRUSTEE

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                             CROSS-REFERENCE TABLE*

<TABLE>
<CAPTION>
Trust Indenture Act                                                                                  Indenture
     Section                                                                                          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).............................................................................................     4.03
                                                                                                       12.05
   (c)(1)..........................................................................................    12.04
   (c)(2)..........................................................................................    12.04
   (e).............................................................................................    12.05
316(a)(last sentence)..............................................................................     2.09
   (a)(1)(A).......................................................................................     6.05
   (a)(1)(B).......................................................................................     6.04
317(a)(1)..........................................................................................     6.08
</TABLE>

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

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                                  <C>
                                                        ARTICLE 1
                                       DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.     Definitions....................................................................................     1
Section 1.02.     Other Definitions..............................................................................    21
Section 1.03.     Incorporation by Reference of Trust Indenture Act..............................................    22
Section 1.04.     Rules of Construction..........................................................................    22

                                                        ARTICLE 2
                                                        THE NOTES

Section 2.01.     Form and Dating................................................................................    23
Section 2.02.     Execution and Authentication...................................................................    24
Section 2.03.     Registrar and Paying Agent.....................................................................    25
Section 2.04.     Paying Agent to Hold Money in Trust............................................................    25
Section 2.05.     Holder Lists...................................................................................    25
Section 2.06.     Transfer and Exchange..........................................................................    25
Section 2.07.     Replacement Notes..............................................................................    38
Section 2.08.     Outstanding Notes..............................................................................    39
Section 2.09.     Treasury Notes.................................................................................    39
Section 2.10.     Certificated Notes.............................................................................    39
Section 2.11.     Temporary Notes................................................................................    40
Section 2.12.     Cancellation...................................................................................    41
Section 2.13.     Defaulted Interest.............................................................................    41
Section 2.14.     CUSIP and ISIN Numbers.........................................................................    41
Section 2.15.     Deposit of Moneys..............................................................................    41
Section 2.16.     Computation of Interest........................................................................    42

                                                        ARTICLE 3
                                                REDEMPTION AND PREPAYMENT

Section 3.01.     Notices to Trustee.............................................................................    42
Section 3.02.     Selection of Notes to Be Redeemed..............................................................    42
Section 3.03.     Notice of Redemption...........................................................................    42
Section 3.04.     Effect of Notice of Redemption.................................................................    43
Section 3.05.     Deposit of Redemption Price....................................................................    43
Section 3.06.     Notes Redeemed in Part.........................................................................    44
Section 3.07.     Optional Redemption............................................................................    44
Section 3.08.     Mandatory Redemption...........................................................................    44
Section 3.09.     Offer to Purchase..............................................................................    44

                                                        ARTICLE 4
                                                        COVENANTS

Section 4.01.     Payment of Notes...............................................................................    46
Section 4.02.     Maintenance of Office or Agency................................................................    46
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<TABLE>
<S>                                                                                                                  <C>
Section 4.03.     Reports........................................................................................    47
Section 4.04.     Compliance Certificate.........................................................................    47
Section 4.05.     Taxes..........................................................................................    48
Section 4.06.     Stay, Extension and Usury Laws.................................................................    48
Section 4.07.     Restricted Payments............................................................................    48
Section 4.08.     Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries......................    51
Section 4.09.     Incurrence of Indebtedness and Issuance of Preferred Stock.....................................    53
Section 4.10.     Asset Sales....................................................................................    55
Section 4.11.     Transactions with Affiliates...................................................................    57
Section 4.12.     Liens..........................................................................................    58
Section 4.13.     Corporate Existence............................................................................    58
Section 4.14.     Offer to Repurchase upon Change of Control.....................................................    58
Section 4.15.     Limitation on Senior Subordinated Debt.........................................................    59
Section 4.16.     Designation of Restricted and Unrestricted Subsidiaries........................................    59
Section 4.17.     Payments for Consent...........................................................................    61
Section 4.18.     Business Activities............................................................................    61
Section 4.19.     Limitation on Issuances and Sales of Equity Interests in Restricted Subsidiaries...............    61
Section 4.20.     Additional Note Guarantees.....................................................................    62

                                                        ARTICLE 5
                                                       SUCCESSORS

Section 5.01.     Merger, Consolidation or Sale of Assets........................................................    63
Section 5.02.     Successor Corporation Substituted..............................................................    64

                                                        ARTICLE 6
                                                  DEFAULTS AND REMEDIES

Section 6.01.     Events of Default..............................................................................    64
Section 6.02.     Acceleration...................................................................................    66
Section 6.03.     Other Remedies.................................................................................    67
Section 6.04.     Waiver of Past Defaults........................................................................    67
Section 6.05.     Control by Majority............................................................................    67
Section 6.06.     Limitation on Suits............................................................................    68
Section 6.07.     Rights of Holders of Notes to Receive Payment..................................................    68
Section 6.08.     Collection Suit by Trustee.....................................................................    68
Section 6.09.     Trustee May File Proofs of Claim...............................................................    68
Section 6.10.     Priorities.....................................................................................    69
Section 6.11.     Undertaking for Costs..........................................................................    69
Section 6.12.     Restoration of Rights and Remedies.............................................................    70
Section 6.13.     Rights and Remedies Cumulative.................................................................    70
Section 6.14.     Delay or Omission Not Waiver...................................................................    70
Section 6.15.     Record Date....................................................................................    70
</TABLE>

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<TABLE>
<S>                                                                                                                  <C>
                                                        ARTICLE 7
                                                         TRUSTEE

Section 7.01.     Duties of Trustee..............................................................................    70
Section 7.02.     Rights of Trustee..............................................................................    71
Section 7.03.     Individual Rights of Trustee...................................................................    72
Section 7.04.     Trustee's Disclaimer...........................................................................    72
Section 7.05.     Notice of Defaults.............................................................................    72
Section 7.06.     Reports by Trustee to the Holders of the Notes.................................................    73
Section 7.07.     Compensation and Indemnity.....................................................................    73
Section 7.08.     Replacement of Trustee.........................................................................    74
Section 7.09.     Successor Trustee by Merger, Etc...............................................................    75
Section 7.10.     Eligibility; Disqualification..................................................................    75
Section 7.11.     Preferential Collection of Claims Against Company..............................................    75

                                                        ARTICLE 8
                               LEGAL DEFEASANCE AND COVENANT DEFEASANCE; SATISFACTION AND
                                                        DISCHARGE

Section 8.01.     Option to Effect Legal Defeasance or Covenant Defeasance.......................................    75
Section 8.02.     Legal Defeasance and Discharge.................................................................    76
Section 8.03.     Covenant Defeasance............................................................................    76
Section 8.04.     Conditions to Legal Defeasance or Covenant Defeasance..........................................    77
Section 8.05.     Satisfaction and Discharge of Indenture........................................................    78
Section 8.06.     Survival of Certain Obligations................................................................    79
Section 8.07.     Acknowledgment of Discharge by Trustee.........................................................    79
Section 8.08.     Deposited Money and Cash Equivalents to Be Held in Trust; Other Miscellaneous Provisions.......    79
Section 8.09.     Repayment to Company...........................................................................    80
Section 8.10.     Indemnity for Government Securities............................................................    80
Section 8.11.     Reinstatement..................................................................................    80

                                                        ARTICLE 9
                                            AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01.     Without Consent of Holders of Notes............................................................    80
Section 9.02.     With Consent of Holders of Notes...............................................................    81
Section 9.03.     Compliance with Trust Indenture Act............................................................    83
Section 9.04.     Revocation and Effect of Consents..............................................................    83
Section 9.05.     Notation on or Exchange of Notes...............................................................    83
Section 9.06.     Trustee to Sign Amendments, Etc................................................................    83

                                                       ARTICLE 10
                                                      SUBORDINATION

Section 10.01.    Agreement to Subordinate.......................................................................    84
Section 10.02.    Liquidation; Dissolution; Bankruptcy...........................................................    84
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<TABLE>
<S>                                                                                                                  <C>
Section 10.03.    Default on Designated Senior Debt..............................................................    84
Section 10.04.    Acceleration of Securities.....................................................................    85
Section 10.05.    When Distribution Must Be Paid Over............................................................    85
Section 10.06.    Notice by the Company..........................................................................    86
Section 10.07.    Subrogation....................................................................................    86
Section 10.08.    Relative Rights................................................................................    86
Section 10.09.    Subordination May Not Be Impaired by the Company...............................................    86
Section 10.10.    Distribution or Notice to Representative.......................................................    86
Section 10.11.    Rights of Trustee and Paying Agent.............................................................    87
Section 10.12.    Authorization to Effect Subordination..........................................................    87

                                                       ARTICLE 11
                                                     NOTE GUARANTEES

Section 11.01.    Guarantee......................................................................................    87
Section 11.02.    Subordination of Note Guarantee................................................................    88
Section 11.03.    Limitation on Guarantor Liability..............................................................    88
Section 11.04.    Execution and Delivery of Note Guarantee.......................................................    89
Section 11.05.    Releases Following Sale of Assets..............................................................    89
Section 11.06.    Additional Guarantors..........................................................................    89
Section 11.07.    Notation Not Required..........................................................................    90
Section 11.08.    Successors and Assigns.........................................................................    90
Section 11.09.    No Waiver......................................................................................    90
Section 11.10.    Modification...................................................................................    90

                                                       ARTICLE 12
                                                      MISCELLANEOUS

Section 12.01.    Trust Indenture Act Controls...................................................................    90
Section 12.02.    Notices........................................................................................    91
Section 12.03.    Communication by Holders of Notes with Other Holders of Notes..................................    92
Section 12.04.    Certificate and Opinion as to Conditions Precedent.............................................    92
Section 12.05.    Statements Required in Certificate or Opinion..................................................    92
Section 12.06.    Rules by Trustee and Agents....................................................................    93
Section 12.07.    No Personal Liability of Directors, Officers, Employees and Stockholders.......................    93
Section 12.08.    Governing Law..................................................................................    93
Section 12.09.    No Adverse Interpretation of Other Agreements..................................................    93
Section 12.10.    Successors.....................................................................................    93
Section 12.11.    Severability...................................................................................    93
Section 12.12.    Counterpart Originals..........................................................................    93
Section 12.13.    Table of Contents, Headings, Etc...............................................................    93
</TABLE>

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                                    EXHIBITS

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

Schedule I        GUARANTORS

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                  INDENTURE dated as of September 30, 2003 among Rayovac
Corporation, a Wisconsin corporation (the "Company"), the Guarantors listed in
Schedule I hereto and U.S. Bank National Association, as trustee (the
"Trustee").

                  The Company, the Guarantors and the Trustee agree as follows
for the benefit of each other and for the equal and proportionate benefit of the
Holders of the 8 1/2% Senior Subordinated Notes due 2013 and the Exchange Notes
(as defined herein).

                                    ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  Section 1.01.     Definitions.

                  "144A Global Note" means a global note in the form of Exhibit
A hereto bearing the Global Note 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 shall be issued in a denomination equal to the outstanding
principal amount of the Notes sold in reliance on Rule 144A.

                  "Acquired Debt" means, with respect to any specified Person:

                  (a)      Indebtedness of any other Person existing at the time
         such other Person is merged with or into, or becomes a Subsidiary of,
         such specified Person, whether or not such Indebtedness is incurred in
         connection with, or in contemplation of, such other Person merging with
         or into, or becoming a Subsidiary of, such specified Person; and

                  (b)      Indebtedness secured by a Lien encumbering any asset
         acquired by such specified Person.

                  "Additional Notes" means an unlimited maximum aggregate
principal amount of Notes (other than the Notes issued on the Issue Date) issued
under this Indenture in accordance with Sections 2.02 and subject to Section
4.09 hereof.

                  "Affiliate" of any specified Person means (a) any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person or (b) any executive officer or
director of 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; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person shall be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" shall have correlative meanings; provided further that each of Paula
Grundstucksverwaltungsgesellschaft mbH & Co. Vermietungs-KG, Mannheim and ROSATA
Grundstucksvermietungsgesellschaft mbH & Co. Object Dischingen KG, Dusseldorf,
shall not be deemed Affiliates of the Company or any of its Restricted
Subsidiaries solely by

<PAGE>

virtue of the beneficial ownership by the Company or its Restricted Subsidiaries
of up to 20% of the Voting Stock of each entity.

                  "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 Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply to such
transfer or exchange.

                  "Asset Sale" means:

                  (a)      the sale, lease, conveyance or other disposition of
         any property or assets; provided that the sale, conveyance or other
         disposition of all or substantially all of the assets of the Company
         and its Restricted Subsidiaries, taken as a whole, shall be governed by
         the provisions of Section 4.14 and/or Section 5.01 and not by the
         provisions of Section 4.10; and

                  (b)      the issuance of Equity Interests by any of the
         Company's Restricted Subsidiaries or the sale by the Company or any
         Restricted Subsidiary of Equity Interests in any of its Subsidiaries.

                  Notwithstanding the preceding, the following items shall be
deemed not to be Asset Sales:

                  (i)      any single transaction or series of related
         transactions that involves assets having a fair market value of less
         than $5.0 million;

                  (ii)     a transfer of assets between or among the Company and
         its Restricted Subsidiaries;

                  (iii)    an issuance of Equity Interests by a Restricted
         Subsidiary to the Company or to another Restricted Subsidiary of the
         Company;

                  (iv)     the sale, lease or other disposition of equipment,
         inventory, accounts receivable or other assets in the ordinary course
         of business;

                  (v)      the sale or other disposition of Cash Equivalents;

                  (vi)     a Restricted Payment that is permitted by Section
         4.07;

                  (vii)    any sale or disposition of any property or equipment
         that has become damaged, worn out, obsolete or otherwise unsuitable or
         no longer required for use in the ordinary course of the business of
         the Company or its Restricted Subsidiaries;

                  (viii)   the licensing of intellectual property in the
         ordinary course of business;

                  (ix)     any sale or other disposition deemed to occur with
         creating or granting a Lien not otherwise prohibited by this Indenture;
         and

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                  (x)      upon the termination of the VARTA joint venture with
         VARTA AG, the sale, transfer or other disposition of the Equity
         Interests in FinanceCo (as defined in the VARTA Joint Venture
         Agreement) and the forgiveness of any loans owed by VARTA AG, in each
         case pursuant to, and in accordance with the terms of, the VARTA Joint
         Venture Agreement as in effect on the Issue Date.

                  "Bankruptcy Law" means any law relating to bankruptcy,
insolvency, receivership, winding-up, liquidation, reorganization or relief of
debtors or any amendment to, succession to or change in any such law, including,
without limitation, the state bankruptcy law of the Company or the Guarantor's
jurisdiction and title 11, United States Bankruptcy Code of 1978, as amended.

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

                  "Broker-Dealer" has the meaning set forth in the Registration
Rights Agreement.

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

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

                  "Capital Stock" means (a) in the case of a corporation,
corporate stock; (b) in the case of an association or business entity, any and
all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock; (c) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited); and (d) 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.

                  "Cash Equivalents" means (a) United States dollars; (b)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof (provided that the
full faith and credit of the United States is pledged in support thereof) having
maturities of not more than six months from the date of acquisition; (c)
certificates of deposit and eurodollar time deposits with maturities of six
months or less from the date of acquisition, bankers' acceptances with
maturities not exceeding six months and overnight bank deposits, in each case,
with any domestic commercial bank having capital and surplus in excess of $500.0
million and a Thomson Bank Watch Rating of "B" or better; (d) repurchase

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obligations with a term of not more than seven days for underlying securities of
the types described in clauses (b) and (c) above entered into with any financial
institution meeting the qualifications specified in clause (c) above; (e)
commercial paper having the highest rating obtainable from Moody's Investors
Service, Inc. or Standard & Poor's Rating Services and in each case maturing
within nine months after the date of acquisition; (f) marketable direct
obligations issued by any state of the United States of America or any political
subdivision of any such state or any public instrumentality thereof having the
highest ratings obtainable from Moody's or S&P and maturing within six months
from the date of acquisition thereof; and (g) money market funds at least 95% of
the assets of which constitute Cash Equivalents of the kinds described in
clauses (a) through (f) of this definition.

                  "Certificated Note" means a certificated note in registered
certificated form in the name of the Holder thereof and issued in accordance
with Section 2.06 hereof, in the form of Exhibit A hereto, except that such Note
shall not bear the Global Note Legend and shall not have the "Schedule of
Exchanges of Interests in the Global Note" attached thereto.

                  "Change of Control" means the occurrence of any of the
following: (a) the direct or indirect sale, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the properties or assets
of the Company and its Restricted Subsidiaries, taken as a whole, to any
"person" (as that term is used in Section 13(d)(3) of the Exchange Act); (b) the
adoption of a plan relating to the liquidation or dissolution of the Company;
(c) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d)
of the Exchange Act) becomes the ultimate Beneficial Owner, directly or
indirectly, of 50% or more of the voting power of the Voting Stock of the
Company; (d) the first day on which a majority of the members of the Board of
Directors of the Company are not Continuing Directors; or (e) the Company
consolidates with, or merges with or into, any Person, or any Person
consolidates with, or merges with or into the Company, in any such event
pursuant to a transaction in which any of the outstanding Voting Stock of the
Company or such other Person is converted into or exchanged for cash, securities
or other property, other than any such transaction where (i) the Voting Stock of
the Company outstanding immediately prior to such transaction is converted into
or exchanged for Voting Stock (other than Disqualified Stock) of the surviving
or transferee Person constituting a majority of the outstanding shares of such
Voting Stock of such surviving or transferee Person (immediately after giving
effect to such issuance) and (ii) immediately after such transaction, no
"person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act) becomes, directly or indirectly, the ultimate Beneficial Owner of
50% or more of the voting power of the Voting Stock of the surviving or
transferee Person.

                  "Clearstream" means Clearstream Banking, societe anonyme.

                  "Consolidated Cash Flow" means, with respect to any specified
Person for any period, the Consolidated Net Income of such Person for such
period plus, without duplication: (a) provision for taxes based on income or
profits of such Person and its Restricted Subsidiaries for such period, to the
extent that such provision for taxes was deducted in computing such Consolidated
Net Income; plus (b) Fixed Charges of such Person and its Restricted
Subsidiaries for such period, to the extent that any such Fixed Charges were
deducted in computing such Consolidated Net Income; plus (c) depreciation,
amortization (including amortization of

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goodwill and other intangibles but excluding amortization of prepaid cash
expenses that were paid in a prior period) and other non-cash expenses
(excluding any special charges and additional restructuring charges referred to
in clauses (d) and (e) without giving effect to the provisos, and any such
non-cash expense to the extent that it represents an accrual of or reserve for
cash expenses in any future period or amortization of a prepaid cash expense
that was paid in a prior period) of such Person and its Restricted Subsidiaries
for such period to the extent that such depreciation, amortization and other
non-cash expenses were deducted in computing such Consolidated Net Income; plus
(d) special charges included on the face of the Company's consolidated statement
of operations for its fiscal years ended September 30, 2002 and 2003 furnished
to Holders as provided under Section 4.03 and, in the case of fiscal 2003,
additional restructuring charges related to markdown monies included as a
reduction of net sales, to the extent such special charges and additional
restructuring charges were deducted in computing Consolidated Net Income for
such period; provided that the maximum aggregate amount of such special charges
and additional restructuring charges for the fiscal year ended September 30,
2003 shall not exceed $42.0 million; plus (e) special charges related to the
acquisition of Remington incurred during any period after June 30, 2003, and
prior to September 30, 2005, and included on the face of the Company's
consolidated statement of operations furnished to Holders as provided under
Section 4.03, to the extent such special charges were deducted in computing
Consolidated Net Income for such period; provided that the maximum aggregate
amount of such special charges shall not exceed $35.0 million; minus (f)
non-cash items increasing such Consolidated Net Income for such period, other
than the accrual of revenue consistent with past practice, in each case, on a
consolidated basis and determined in accordance with GAAP.

                  Notwithstanding the preceding, the provision for taxes based
on the income or profits of, and the depreciation and amortization and other
non-cash expenses of, a Restricted Subsidiary of the Company shall be added to
Consolidated Net Income to compute Consolidated Cash Flow of the Company (A) in
the same proportion that the Net Income of such Restricted Subsidiary was added
to compute such Consolidated Net Income of the Company and (B) only to the
extent that a corresponding amount would be permitted at the date of
determination to be dividended or distributed to the Company by such Restricted
Subsidiary without prior governmental approval (that has not been obtained), and
without direct or indirect restriction pursuant to the terms of its charter and
all agreements, instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to that Subsidiary or its stockholders.

                  "Consolidated Net Income" means, with respect to any specified
Person for any period, the aggregate of the Net Income of such Person and its
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that:

                  (a)      the Net Income (but not loss) of any Person that is
         not a Restricted Subsidiary or that is accounted for by the equity
         method of accounting shall be included only to the extent of the amount
         of dividends or distributions paid in cash to the specified Person or a
         Restricted Subsidiary thereof;

                  (b)      the Net Income of any Restricted Subsidiary shall be
         excluded to the extent that the declaration or payment of dividends or
         similar distributions by that Restricted Subsidiary of that Net Income
         is not at the date of determination permitted without any prior
         governmental approval (that has not been obtained) or, directly or

                                       5

<PAGE>

         indirectly, by operation of the terms of its charter or any agreement,
         instrument, judgment, decree, order, statute, rule or governmental
         regulation applicable to that Restricted Subsidiary or its
         equityholders;

                  (c)      the Net Income of any Person acquired during the
         specified period for any period prior to the date of such acquisition
         shall be excluded;

                  (d)      the cumulative effect of a change in accounting
         principles shall be excluded; and

                  (e)      notwithstanding clause (a) above, the Net Income (but
         not loss) of any Unrestricted Subsidiary shall be excluded, whether or
         not distributed to the specified Person or one of its Subsidiaries.

                  "Consolidated Net Tangible Assets" of any Person means, as of
any date, the amount which, in accordance with GAAP, would be set forth under
the caption "Total Assets" (or any like caption) on a consolidated balance sheet
of such Person and its Restricted Subsidiaries, as of the end of the most
recently ended fiscal quarter for which internal financial statements are
available, less (a) all intangible assets, including, without limitation,
goodwill, organization costs, patents, trademarks, copyrights, franchises, and
research and development costs and (b) current liabilities.

                  "Continuing Directors" means, as of any date of determination,
any member of the Board of Directors of the Company who (a) was a member of such
Board of Directors on the Issue Date; or (b) was nominated for election or
elected to such Board of Directors with the approval of a majority of the
Continuing Directors who were members of such Board at the time of such
nomination or election.

                  "Corporate Trust Office of the Trustee" shall be at the
address of the Trustee specified in Section 12.02 hereof or such other address
as to which the Trustee may give notice to the Company.

                  "Credit Agreement" means that certain Third Amended and
Restated Credit Agreement, dated as of October 1, 2002, by and among the
Company, VARTA, LaSalle Bank National Association, as Documentation Agent,
Citicorp North America Inc., as Syndication Agent, and Bank of America, N.A., as
Administrative Agent and the other lenders named therein providing for, as of
the Issue Date, up to $350.0 million and (euro)175.0 million in term loan
borrowings and $110.0 million and (euro)40.0 million of revolving credit
borrowings, including any related notes, Guarantees, collateral documents,
instruments and agreements executed in connection therewith, and in each case as
amended, modified, renewed, refunded, replaced or refinanced from time to time,
regardless of whether such amendment, modification, renewal, refunding,
replacement or refinancing is with the same financial institutions or otherwise.

                  "Credit Facilities" means, one or more debt facilities
(including, without limitation, the Credit Agreement) or commercial paper
facilities, in each case with banks or other institutional lenders providing for
revolving credit loans, term loans, receivables financing (including through the
sale of receivables to such lenders or to special purpose entities formed to
borrow from such lenders against such receivables) or letters of credit, in each
case, as amended,

                                       6

<PAGE>

restated, modified, renewed, refunded, replaced or refinanced in whole or in
part from time to time.

                  "Custodian" means the Trustee, as custodian with respect to
the Notes 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.

                  "Depositary" means, with respect to the Notes 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 Notes, and any and all successors
thereto appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.

                  "Designated Senior Debt" means:

                  (a)      any Indebtedness outstanding under the Credit
         Agreement; and

                  (b)      after payment in full of all Obligations under the
         Credit Agreement, any other Senior Debt permitted under this Indenture
         the principal amount of which is $50.0 million or more and that has
         been designated by the Company as "Designated Senior Debt."

                  "Disqualified Stock" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case at the option of the holder thereof), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant
to a sinking fund obligation or otherwise, or redeemable at the option of the
holder thereof, in whole or in part, on or prior to the date that is one year
after the date on which the Notes mature, except to the extent such Capital
Stock is solely redeemable with, or solely exchangeable for, any Equity
Interests of the Company that are not Disqualified Stock. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders thereof have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or an
asset sale shall not constitute Disqualified Stock if the terms of such Capital
Stock provide that the Company may not repurchase or redeem any such Capital
Stock pursuant to such provisions unless such repurchase or redemption complies
with Section 4.07. The term "Disqualified Stock" shall also include any options,
warrants or other rights that are convertible into Disqualified Stock or that
are redeemable at the option of the holder, or required to be redeemed, prior to
the date that is one year after the date on which the Notes mature.

                  "Domestic Subsidiary" means any Restricted Subsidiary of the
Company other than a Restricted Subsidiary that is (a) a "controlled foreign
corporation" under Section 957 of the Internal Revenue Code or (b) a Subsidiary
of any such controlled foreign corporation.

                  "Equity Interests" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).

                                       7

<PAGE>

                  "Equity Offering" means a public or private offer and sale of
common stock (other than Disqualified Stock) of the Company (other than common
stock sold to a Subsidiary of the Company).

                  "Euroclear" means Euroclear S.A./N.V., as operator of the
Euroclear System.

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

                  "Exchange Notes" means the Notes issued in the Exchange Offer
in accordance with Section 2.06(f) hereof.

                  "Exchange Offer" has the meaning set forth in the Registration
Rights Agreement or any similar agreement with respect to any Additional Notes.

                  "Exchange Offer Registration Statement" has the meaning set
forth in the Registration Rights Agreement or any similar agreement with respect
to any Additional Notes.

                  "Existing Indebtedness" means the aggregate principal amount
of Indebtedness of the Company and its Subsidiaries (other than Indebtedness
under the Credit Agreement) in existence on the Issue Date after giving effect
to the acquisition of Remington, the application of the proceeds of the Notes
and any Indebtedness under the Credit Agreement borrowed on the Issue Date,
until such amounts are repaid.

                  "fair market value" means the price that would be paid 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,
as determined in good faith by the Board of Directors, whose determination shall
be conclusive if evidenced by a Board Resolution.

                  "Fixed Charge Coverage Ratio" means, with respect to any
specified Person for any period, the ratio of the Consolidated Cash Flow of such
Person for such period to the Fixed Charges of such Person for such period. In
the event that the specified Person or any of its Subsidiaries incurs, assumes,
Guarantees, repays, repurchases or redeems any Indebtedness or issues,
repurchases or redeems preferred stock subsequent to the commencement of the
period for which the Fixed Charge Coverage Ratio is being calculated and on or
prior to the date on which the event for which the calculation of the Fixed
Charge Coverage Ratio is made (the "Calculation Date"), then the Fixed Charge
Coverage Ratio shall be calculated giving pro forma effect to such incurrence,
assumption, Guarantee, repayment, repurchase or redemption of Indebtedness, or
such issuance, repurchase or redemption of preferred stock, and the use of the
proceeds therefrom as if the same had occurred at the beginning of the
applicable four-quarter reference period.

                  In addition, for purposes of calculating the Fixed Charge
Coverage Ratio:

                  (a)      acquisitions and dispositions of business entities or
         property and assets constituting a division or line of business of any
         Person that have been made by the specified Person or any of its
         Restricted Subsidiaries, including through mergers or consolidations
         and including any related financing transactions, during the
         four-quarter reference period or subsequent to such reference period
         and on or prior to the Calculation

                                       8

<PAGE>

         Date shall be given pro forma effect as if they had occurred on the
         first day of the four-quarter reference period and Consolidated Cash
         Flow for such reference period shall be calculated on a pro forma basis
         in accordance with Regulation S-X under the Securities Act, but without
         giving effect to clause (c) of the proviso set forth in the definition
         of Consolidated Net Income; (b) the Consolidated Cash Flow attributable
         to discontinued operations, as determined in accordance with GAAP,
         shall be excluded; (c) the Fixed Charges attributable to discontinued
         operations, as determined in accordance with GAAP shall be excluded,
         but only to the extent that the obligations giving rise to such Fixed
         Charges shall not be obligations of the specified Person or any of its
         Subsidiaries following the Calculation Date; and (d) consolidated
         interest expense attributable to interest on any Indebtedness (whether
         existing or being incurred) computed on a pro forma basis and bearing a
         floating interest rate shall be computed as if the rate in effect on
         the Calculation Date (taking into account any interest rate option,
         swap, cap or similar agreement applicable to such Indebtedness if such
         agreement has a remaining term in excess of 12 months or, if shorter,
         at least equal to the remaining term of such Indebtedness) had been the
         applicable rate for the entire period.

                  "Fixed Charges" means, with respect to any specified Person
for any period, the sum, without duplication, of (a) the consolidated interest
expense of such Person and its Restricted Subsidiaries for such period, whether
paid or accrued, including, without limitation, amortization of debt issuance
costs and original issue discount, non-cash interest payments, the interest
component of any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations, commissions, discounts and
other fees and charges incurred in respect of letter of credit or bankers'
acceptance financings, and net of the effect of all payments made, received or
accrued in connection with Hedging Obligations; plus (b) the consolidated
interest of such Person and its Restricted Subsidiaries that was capitalized
during such period; plus (c) any interest expense on Indebtedness of another
Person that is Guaranteed by such Person or one of its Restricted Subsidiaries
or secured by a Lien on assets of such Person or one of its Restricted
Subsidiaries, whether or not such Guarantee or Lien is called upon; plus (d) the
product of (i) all dividends, whether paid or accrued and whether or not in
cash, on any series of Disqualified Stock or preferred stock of such Person or
any of its Restricted Subsidiaries, other than (A) dividends on Equity Interests
payable solely in Equity Interests of the Company (other than Disqualified
Stock) or (B) dividends to the Company or a Restricted Subsidiary of the
Company, times (ii) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state and
local statutory tax rate of such Person, expressed as a decimal, in each case,
on a consolidated basis and in accordance with GAAP; provided that Fixed Charges
shall not include any interest expense of, or dividends paid by, VARTA to VARTA
AG to the extent that the Company or a Restricted Subsidiary of the Company
receives interest or dividends in cash from VARTA AG in connection with the
VARTA Joint Venture Agreement as in effect on the Issue Date.

                  "Foreign Subsidiary" means any Restricted Subsidiary of the
Company other than a Domestic Subsidiary.

                  "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, the opinions and
pronouncements of the Public Company Accounting

                                       9

<PAGE>

Oversight Board and in the 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 Note Legend" means the legend set forth in Section
2.06(g)(ii), which is required to be placed on all Global Notes issued under
this Indenture.

                  "Global Notes" means, individually and collectively, each of
the Restricted Global Notes and the Unrestricted Global Notes, issued in
accordance with certain sections of this Indenture and deposited with or on
behalf of, and registered in the name of, the Depositary or its nominee.

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

                  "Guarantee" means, as to any Person, 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, by
way of a pledge of assets or through letters of credit or reimbursement
agreements in respect thereof, of all or any part of any Indebtedness of another
Person.

                  "Guarantors" means:

                  (a)      each direct or indirect Domestic Subsidiary of the
         Company on the Issue Date; and

                  (b)      any other subsidiary that executes a Note Guarantee
         in accordance with the provisions of this Indenture;

         and their respective successors and assigns until released from their
obligations under their Note Guarantees and this Indenture in accordance with
the terms of this Indenture.

         "Hedging Obligations" means, with respect to any specified Person, the
obligations of such Person under (a) interest rate swap agreements, interest
rate cap agreements, interest rate collar agreements and other agreements or
arrangements designed for the purpose of fixing, hedging or swapping interest
rate risk; (b) commodity swap agreements, commodity option agreements, forward
contracts and other agreements or arrangements designed for the purpose of
fixing, hedging or swapping commodity price risk; and (c) foreign exchange
contracts, currency swap agreements and other agreements or arrangements
designed for the purpose of fixing, hedging or swapping foreign currency
exchange rate risk.

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

                  "incur" means, with respect to any Indebtedness, to incur,
create, issue, assume, Guarantee or otherwise become directly or indirectly
liable for or with respect to, or become responsible for, the payment of,
contingently or otherwise, such Indebtedness; provided that (a) any Indebtedness
of a Person existing at the time such Person becomes a Restricted Subsidiary of

                                       10

<PAGE>

the Company shall be deemed to be incurred by such Restricted Subsidiary at the
time it becomes a Restricted Subsidiary of the Company; and (b) neither the
accrual of interest nor the accretion of original issue discount nor the payment
of interest in the form of additional Indebtedness with the same terms and the
payment of dividends on Disqualified Stock in the form of additional shares of
the same class of Disqualified Stock (to the extent provided for when the
Indebtedness or Disqualified Stock on which such interest or dividend is paid
was originally issued) shall be considered an incurrence of Indebtedness;
provided that in each case the amount thereof is for all other purposes included
in the Fixed Charges and Indebtedness of the Company or its Restricted
Subsidiary as accrued.

                  "Indebtedness" means, with respect to any specified Person,
any indebtedness of such Person, whether or not contingent:

                  (a)      in respect of borrowed money;

                  (b)      evidenced by bonds, notes, debentures or similar
         instruments or letters of credit (or reimbursement agreements in
         respect thereof), but excluding obligations with respect to letters of
         credit (including trade letters of credit) securing obligations entered
         into in the ordinary course of business of such Person to the extent
         such letters of credit are not drawn upon or, if drawn upon, to the
         extent such drawing is reimbursed no later than the fifth Business Day
         following receipt by such Person of a demand for reimbursement);

                  (c)      in respect of banker's acceptances;

                  (d)      in respect of Capital Lease Obligations and
         Attributable Debt;

                  (e)      in respect of the balance deferred and unpaid of the
         purchase price of any property, except any such balance that
         constitutes an accrued expense or trade payable;

                  (f)      representing Hedging Obligations, other than Hedging
         Obligations that are incurred in the ordinary course of business for
         the purpose of fixing, hedging or swapping interest rate, commodity
         price or foreign currency exchange rate risk (or to reverse or amend
         any such agreements previously made for such purposes), and not for
         speculative purposes, and that do not increase the Indebtedness of the
         obligor outstanding at any time other than as a result of fluctuations
         in interest rates, commodity prices or foreign currency exchange rates
         or by reason of fees, indemnities and compensation payable thereunder;
         or

                  (g)      representing Disqualified Stock valued at the greater
         of its voluntary or involuntary maximum fixed repurchase price plus
         accrued dividends;

if and to the extent that any of the preceding items (other than letters of
credit and Hedging Obligations) would appear as liability upon a balance sheet
of the specified Person prepared in accordance with GAAP. In addition, the term
"Indebtedness" includes (x) all Indebtedness of others secured by a Lien on any
asset of the specified Person (whether or not such Indebtedness is assumed by
the specified Person), provided that the amount of such Indebtedness shall be
the lesser of (A) the fair market value of such asset at such date of
determination and (B) the amount

                                       11

<PAGE>

of such Indebtedness, and (y) to the extent not otherwise included, the
Guarantee by the specified Person of any Indebtedness of any other Person. For
purposes hereof, the "maximum fixed repurchase price" of any Disqualified Stock
which does not have a fixed repurchase price shall be calculated in accordance
with the terms of such Disqualified Stock as if such Disqualified Stock were
purchased on any date on which Indebtedness shall be required to be determined
pursuant to this Indenture, and if such price is based upon, or measured by, the
fair market value of such Disqualified Stock, such fair market value shall be
determined in good faith by the Board of Directors of the issuer of such
Disqualified Stock.

                  The amount of any Indebtedness outstanding as of any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and, with respect to contingent obligations, the maximum
liability upon the occurrence of the contingency giving rise to the obligation,
and shall be:

                  (A)      the accreted value thereof, in the case of any
         Indebtedness issued with original issue discount; and

                  (B)      the principal amount thereof, together with any
         interest thereon that is more than 30 days past due, in the case of any
         other Indebtedness;

provided that Indebtedness shall not include:

                  (1)      any liability for federal, state, local or other
         taxes;

                  (2)      performance, surety or appeal bonds provided in the
         ordinary course of business; or

                  (3)      agreements providing for indemnification, adjustment
         of purchase price or similar obligations, or Guarantees or letters of
         credit, surety bonds or performance bonds securing any obligations of
         the Company or any of its Restricted Subsidiaries pursuant to such
         agreements, in any case incurred in connection with the disposition of
         any business, assets or Restricted Subsidiary (other than Guarantees of
         Indebtedness incurred by any Person acquiring all or any portion of
         such business, assets or Restricted Subsidiary for the purpose of
         financing such acquisition), so long as the principal amount does not
         exceed the gross proceeds actually received by the Company or any
         Restricted Subsidiary in connection with such disposition.

                  "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 Note through a Participant.

                  "Interest Payment Date" means April 1 and October 1 of each
year to Stated Maturity.

                  "Investments" means, with respect to any Person, all direct or
indirect investments by such Person in other Persons (including Affiliates) in
the forms of loans or other extensions of credit (including Guarantees, but
excluding advances to customers or suppliers in the ordinary

                                       12

<PAGE>

course of business that are, in conformity with GAAP, recorded as accounts
receivable, prepaid expenses or deposits on the balance sheet of the Company or
its Restricted Subsidiaries and endorsements for collection or deposit arising
in the ordinary course of business), advances (excluding commission, travel,
payroll and similar advances to officers and employees made consistent with past
practices), capital contributions (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities, together with all items that
are or would be classified as investments on a balance sheet prepared in
accordance with GAAP.

                  If the Company or any Restricted Subsidiary of the Company
sells or otherwise disposes of any Equity Interests of any direct or indirect
Restricted Subsidiary of the Company such that, after giving effect to any such
sale or disposition, such Person is no longer a Restricted Subsidiary of the
Company, the Company shall be deemed to have made an Investment on the date of
any such sale or disposition equal to the fair market value of the Investment in
such Restricted Subsidiary not sold or disposed of in an amount determined as
provided in Section 4.07. The acquisition by the Company or any Restricted
Subsidiary of the Company of a Person that holds an Investment in a third Person
shall be deemed to be an Investment by the Company or such Restricted Subsidiary
in such third Person only if such Investment was made in contemplation of, or in
connection with, the acquisition of such Person by the Company or such
Restricted Subsidiary and the amount of any such Investment shall be determined
as provided in the final paragraph of Section 4.07.

                  "Issue Date" means the date on which $350.0 million in
aggregate principal amount of the Notes were originally issued under this
Indenture.

                  "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 on such
payment shall accrue for the intervening period.

                  "Letter of Transmittal" means the letter of transmittal to be
prepared by the Company and sent to all Holders of the Notes for use by such
Holders in connection with the Exchange Offer.

                  "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.

                  "Liquidated Damages" means the additional amounts (if any)
payable by the Company in the event of a Registration Default under, and as
defined in, the Registration Rights Agreement.

                                       13

<PAGE>

                  "Maturity" means, with respect to any Indebtedness, the date
on which any principal of such Indebtedness 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.

                  "Moody's" means Moody's Investors Service, Inc. or any
successor to the rating agency business thereof.

                  "Net Income" means, with respect to any specified Person, the
net income (loss) of such Person, determined in accordance with GAAP and before
any reduction in respect of preferred stock dividends, excluding, however, (a)
any gain or loss, together with any related provision for taxes on such gain or
loss, realized in connection with (i) any sale of assets outside the ordinary
course of business of such Person; or (ii) the disposition of any securities by
such Person or any of its Restricted Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Restricted Subsidiaries; and (b) any
extraordinary gain or loss, together with any related provision for taxes on
such extraordinary gain or loss.

                  "Net Proceeds" means the aggregate cash proceeds, including
payments in respect of deferred payment obligations (to the extent corresponding
to the principal, but not the interest component, thereof) received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
(a) the direct costs relating to such Asset Sale, including, without limitation,
legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result thereof; (b) taxes paid or payable as a
result thereof, in each case, after taking into account any available tax
credits or deductions arising therefrom and any tax sharing arrangements in
connection therewith; (c) amounts required to be applied to the repayment of
Indebtedness or other liabilities, secured by a Lien on the asset or assets that
were the subject of such Asset Sale, or required to be paid as a result of such
sale; and (d) any reserve for adjustment in respect of the sale price of such
asset or assets established in accordance with GAAP.

                  "Non-U.S. Person" means a Person who is not a U.S. Person.

                  "Note Guarantee" means the Guarantee by each Guarantor of the
Company's payment obligations under this Indenture and on the Notes, executed
pursuant to this Indenture.

                  "Notes" means the 8 1/2% Senior Subordinated Notes due 2013 of
the Company issued on the Issue Date, the Exchange Notes and the Additional
Notes. The Notes shall be treated as a single class for all purposes under this
Indenture.

                  "Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities payable under
the documentation governing any Indebtedness.

                  "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.

                                       14

<PAGE>

                  "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 financial officer, the treasurer, or the
principal accounting officer of the Company, that meets the requirements of
Section 12.05 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, any subsidiary of the Company or the Trustee.

                  "Participant" means, with respect to the Depositary, Euroclear
or Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to The Depository Trust Company,
shall include Euroclear and Clearstream).

                  "Permitted Business" means any business conducted or proposed
to be conducted by the Company and its Restricted Subsidiaries on the Issue Date
and other businesses similar or reasonably related, ancillary or incidental
thereto or reasonable extensions thereof.

                  "Permitted Investments" means:

                  (a)      any Investment in the Company or in a Restricted
         Subsidiary of the Company;

                  (b)      any Investment in Cash Equivalents;

                  (c)      any Investment by the Company or any Restricted
         Subsidiary of the Company in a Person, if as a result of such
         Investment:

                           (i)      such Person becomes a Restricted Subsidiary
                  of the Company; or

                           (ii)     such Person is merged, consolidated or
                  amalgamated with or into, or transfers or conveys
                  substantially all of its assets to, or is liquidated into, the
                  Company or a Restricted Subsidiary of the Company;

                  (d)      any Investment made as a result of the receipt of
         non-cash consideration from an Asset Sale that was made pursuant to and
         in compliance with Section 4.10;

                  (e)      Investments to the extent acquired in exchange for
         the issuance of Equity Interests (other than Disqualified Stock) of the
         Company;

                  (f)      Hedging Obligations that are incurred in the ordinary
         course of business for the purpose of fixing, hedging or swapping
         interest rate, commodity price or foreign currency exchange rate risk
         (or to reverse or amend any such agreements previously made for such
         purposes), and not for speculative purposes, and that do not increase
         the Indebtedness of the obligor outstanding at any time other than as a
         result of fluctuations in interest rates, commodity prices or foreign
         currency exchange rates or by reason of fees, indemnities and
         compensation payable thereunder;

                  (g)      stock, obligations or securities received in
         satisfaction of judgments;

                                       15

<PAGE>

                  (h)      Investments in securities of trade debtors or
         customers received pursuant to any plan of reorganization or similar
         arrangement upon the bankruptcy or insolvency of such trade creditors
         or customers or in good faith settlement of delinquent obligations of
         such trade debtors or customers or in compromise or resolution of
         litigation, arbitration or other disputes with Persons who are not
         Affiliates; and

                  (i)      other Investments in any Person that is not an
         Affiliate of the Company (other than a Restricted Subsidiary) having an
         aggregate fair market value (measured on the date each such Investment
         was made and without giving effect to subsequent changes in value),
         when taken together with all other Investments made pursuant to this
         clause (i) since the Issue Date, not to exceed $15.0 million.

                  "Permitted Junior Securities" means (a) Equity Interests in
the Company or any Guarantor or any other business entity provided for by a plan
of reorganization; and (b) debt securities of the Company or any Guarantor or
any other business entity provided for by a plan of reorganization that are
subordinated to the payment of all Senior Debt and any debt securities issued in
exchange for Senior Debt to substantially the same extent as, or to a greater
extent than, the Notes and the Note Guarantees are subordinated to Senior Debt
under this Indenture.

                  "Permitted Liens" means:

                  (a)      Liens on the assets of the Company and any Guarantor
         securing Senior Debt that was permitted by the terms of this Indenture
         to be incurred;

                  (b)      Liens in favor of the Company or any Restricted
         Subsidiary;

                  (c)      Liens on property of a Person existing at the time
         such Person is merged with or into or consolidated with the Company or
         any Restricted Subsidiary of the Company; provided that such Liens were
         in existence prior to the contemplation of such merger or consolidation
         and do not extend to any assets other than those of the Person merged
         into or consolidated with the Company or the Restricted Subsidiary;

                  (d)      Liens on property existing at the time of acquisition
         thereof by the Company or any Restricted Subsidiary of the Company,
         provided that such Liens were in existence prior to the contemplation
         of such acquisition and do not extend to any property other than the
         property so acquired by the Company or the Restricted Subsidiary;

                  (e)      Liens existing on the Issue Date; and

                  (f)      Liens incurred in the ordinary course of business of
         the Company or any Restricted Subsidiary of the Company with respect to
         obligations that do not exceed $5.0 million at any one time
         outstanding.

                  "Permitted Refinancing Indebtedness" means any Indebtedness of
the Company or any of its Restricted Subsidiaries issued in exchange for, or the
net proceeds of which are used to extend, refinance, renew, replace, defease or
refund other Indebtedness of the Company or any of its Restricted Subsidiaries
(other than intercompany Indebtedness); provided that:

                                       16

<PAGE>

                  (a)      the principal amount (or accreted value, if
         applicable) of such Permitted Refinancing Indebtedness does not exceed
         the principal amount (or accreted value, if applicable) of the
         Indebtedness so extended, refinanced, renewed, replaced, defeased or
         refunded (plus all accrued interest thereon and the amount of any
         reasonably determined premium necessary to accomplish such refinancing
         and such reasonable expenses incurred in connection therewith);

                  (b)      such Permitted Refinancing Indebtedness has a final
         maturity date later than the final maturity date of, and has a Weighted
         Average Life to Maturity equal to or greater than the Weighted Average
         Life to Maturity of, the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded;

                  (c)      if the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded is subordinated in right of
         payment to the Notes or the Note Guarantees, such Permitted Refinancing
         Indebtedness has a final maturity date later than the final maturity
         date of, and is subordinated in right of payment to, the Notes on terms
         at least as favorable to the Holders of Notes as those contained in the
         documentation governing the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded;

                  (d)      if the Indebtedness being extended, refinanced,
         renewed, replaced, defeased or refunded is pari passu in right of
         payment with the Notes or any Note Guarantees, such Permitted
         Refinancing Indebtedness is pari passu with, or subordinated in right
         of payment to, the Notes or such Note Guarantees; and

                  (e)      such Indebtedness is incurred either by the Company
         or by the Restricted Subsidiary who is the obligor on the Indebtedness
         being extended, refinanced, renewed, replaced, defeased or refunded.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
limited liability company or government or other entity.

                  "preferred stock" means, with respect to any Person, any
Capital Stock of such Person that has preferential rights to any other Capital
Stock of such Person with respect to dividends or redemption upon liquidation.

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

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

                  "Record Date" for the interest payable on any Interest Payment
Date means March 15 or September 15 (whether or not a Business Day), as the case
may be, next preceding such Interest Payment Date.

                                       17

<PAGE>

                  "Registration Rights Agreement" means the Registration Rights
Agreement, dated September 30, 2003, among the Company, the Guarantors, Banc of
America Securities LLC, Citigroup Global Capital Markets Inc. and ABN AMRO
Incorporated.

                  "Regulation S" means Regulation S promulgated under the
Securities Act.

                  "Regulation S Global Note" means a Regulation S Temporary
Global Note or a Regulation S Permanent Global Note, as appropriate.

                  "Regulation S Permanent Global Note" means a permanent Global
Note in the form of Exhibit A hereto bearing the Global Note Legend and the
Private Placement Legend and deposited with or on behalf of and registered in
the name of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

                  "Regulation S Temporary Global Note" means a temporary global
Note in the form of Exhibit A hereto bearing the Global Note Legend, the Private
Placement Legend and the Temporary Regulation S Legend and deposited with or on
behalf of and registered in the name of the Depositary or its nominee, issued in
a denomination equal to the outstanding principal amount of the Notes initially
sold in reliance on Rule 903 of Regulation S.

                  "Remington" means Remington Products Company, L.L.C.

                  "Replacement Assets" means (a) non-current assets that shall
be used or useful in a Permitted Business or (b) all or substantially all of the
assets of a Permitted Business or a majority of the Voting Stock of any Person
engaged in a Permitted Business that shall become on the date of acquisition
thereof a Restricted Subsidiary of the Company.

                  "Representative" means the Trustee, agent or representative
for any Senior Debt.

                  "Responsible Officer" when used with respect to the Trustee,
means any officer within the Corporate Trust Administration 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 Certificated Note" means a Certificated Note
bearing the Private Placement Legend.

                  "Restricted Global Note" means individually and collectively a
144A Global Note, a Regulation S Permanent Global Note and a Regulation S
Temporary Global Note.

                  "Restricted Investment" means an Investment other than a
Permitted Investment.

                  "Restricted Period" means the 40-day restricted period as
defined in Regulation S.

                                       18

<PAGE>

                  "Restricted Subsidiary" of a Person means any Subsidiary of
the referent Person that is not an Unrestricted Subsidiary.

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

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

                  "Rule 903" means Rule 903 promulgated under the Securities
Act.

                  "Rule 904" means Rule 904 promulgated the Securities Act.

                  "S&P" means Standard and Poor's Rating Services or any
successor to the rating agency business thereof and its successors.

                  "Sale and Leaseback Transaction" means, with respect to any
Person, any transaction involving any of the assets or properties of such Person
whether now owned or hereafter acquired, whereby such Person sells or transfers
such assets or properties and then or thereafter leases such assets or
properties or any part thereof or any other assets or properties which such
Person intends to use for substantially the same purpose or purposes as the
assets or properties sold or transferred.

                  "SEC" means the Securities and Exchange Commission.

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

                  "Senior Debt" means:

                  (a)      all Indebtedness of the Company or any Guarantor
         outstanding under Credit Facilities and all Hedging Obligations with
         respect thereto;

                  (b)      any other Indebtedness of the Company or any
         Guarantor permitted to be incurred under the terms of this Indenture,
         unless the instrument under which such Indebtedness is incurred
         expressly provides that it is on a parity with or subordinated in right
         of payment to the Notes or any Note Guarantee; and

                  (c)      all Obligations with respect to the items listed in
         the preceding clauses (a) and (b).

                  Notwithstanding anything to the contrary in the preceding
paragraph, Senior Debt shall not include:

                  (i)      any liability for federal, state, local or other
         taxes owed or owing by the Company or any Guarantor;

                  (ii)     any Indebtedness of the Company or any Guarantor to
         any of their Subsidiaries or other Affiliates;

                  (iii)    any trade payables;

                                       19

<PAGE>

                  (iv)     the portion of any Indebtedness that is incurred in
         violation of this Indenture;

                  (v)      any Indebtedness of the Company or any Guarantor
         that, when incurred, was without recourse to the Company or such
         Guarantor; or

                  (vi)     any repurchase, redemption or other obligation in
         respect of Disqualified Stock.

                  "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.

                  "Stated Maturity" means, with respect to any installment of
interest or principal on any series of Indebtedness, the date on which such
payment of interest or principal was scheduled to be paid in the original
documentation governing such Indebtedness, and shall not include any contingent
obligations to repay, redeem or repurchase any such interest or principal prior
to the date originally scheduled for the payment thereof.

                  "Subsidiary" means, with respect to any specified Person: (a)
any corporation, association or other business entity of which more than 50% of
the total voting power of shares of Capital Stock entitled (without regard to
the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and any partnership (i) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of such Person or (ii) the only general partners of which are such Person or one
or more Subsidiaries of such Person (or any combination thereof).

                  "Temporary Regulation S Legend" means the legend set forth in
Section 2.06(h), which is required to be placed on the Regulation S Temporary
Global Note.

                  "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.

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

                  "Unrestricted Certificated Note" means one or more
Certificated Notes that do not bear and are not required to bear the Private
Placement Legend.

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

                                       20

<PAGE>

                  "Unrestricted Subsidiary" means any Subsidiary of the Company
that is designated by the Board of Directors of the Company as an Unrestricted
Subsidiary pursuant to a Board Resolution in compliance with Section 4.16 and
any Subsidiary of such Subsidiary.

                  "U.S. Person" means a U.S. person as defined in Rule 902(o)
under the Securities Act.

                  "VARTA" means Varta Geratebatterie GmbH and its successors or
assignees.

                  "VARTA Joint Venture Agreement" means the agreement among
VARTA AG, the Company and ROV German Limited GmbH dated July 28, 2002, as
amended.

                  "Voting Stock" of any Person as of any date means the Capital
Stock of such Person that is at the time entitled to vote in the election of the
Board of Directors of such Person.

                  "Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing: (a) the sum
of the products obtained by multiplying (i) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment at final maturity, in respect thereof, by (ii) the
number of years (calculated to the nearest one-twelfth) that shall elapse
between such date and the making of such payment; by (b) the then outstanding
principal amount of such Indebtedness.

                  "Wholly Owned Restricted Subsidiary" of any specified Person
means a Restricted Subsidiary of such Person all of the outstanding Capital
Stock or other ownership interests of which (other than directors' qualifying
shares or Investments by foreign nationals mandated by applicable law) shall at
the time be owned by such Person or by one or more Wholly Owned Restricted
Subsidiaries of such Person and one or more Wholly Owned Restricted Subsidiaries
of such Person.

                  Section 1.02.     Other Definitions.

<TABLE>
<CAPTION>
                                                                        DEFINED IN
          TERM                                                           SECTION
          ----                                                          ----------
<S>                                                                     <C>
"Affiliate Transaction"...........................................         4.11
"Asset Sale Offer"................................................         4.10
"Authentication Order"............................................         2.02
"Change of Control Offer".........................................         4.14
"Change of Control Payment".......................................         4.14
"Change of Control Payment Date"..................................         4.14
"Company"                                                                Preamble
"Covenant Defeasance".............................................         8.03
"DTC".............................................................         2.03
"Event of Default"................................................         6.01
"Excess Proceeds".................................................         4.10
"Legal Defeasance"................................................         8.02
"Offer Amount"....................................................         3.09
"Offer Period"....................................................         3.09
</TABLE>

                                       21

<PAGE>

<TABLE>
<CAPTION>
                                                                        DEFINED IN
          TERM                                                           SECTION
          ----                                                          ----------
<S>                                                                     <C>
"Paying Agent"....................................................         2.03
"Payment Blockage Notice".........................................        10.03
"Permitted Debt"..................................................         4.09
"Purchase Date"...................................................         3.09
"Registrar".......................................................         2.03
"Repurchase Offer"................................................         3.09
"Restricted Payments".............................................         4.07
</TABLE>

                  Section 1.03.     Incorporation by Reference of Trust
Indenture Act. The mandatory provisions of the TIA that are required to be a
part of and govern indentures qualified under the TIA are incorporated by
reference in and are a part of this Indenture, whether or not this Indenture is
so qualified. 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:

                  "indenture securities" means the Notes;

                  "indenture security Holder" means a Holder of a Note;

                  "indenture to be qualified" means this Indenture;

                  "indenture trustee" or "institutional trustee" means the
Trustee; and

                  "obligor" on the Notes means the Company and any successor
obligor upon the Notes.

                  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:

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

                  (b)      "or" is not exclusive;

                  (c)      "including" or "include" means including or include
                           without limitation;

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

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

                                       22

<PAGE>

                  (f)      "$," "U.S. Dollars" and "United States Dollars" each
                           refer to United States dollars, or such other money
                           of the United States that at the time of payment is
                           legal tender for payment of public and private debts;

                  (g)      provisions apply to successive events and
                           transactions;

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

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

                                    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. The Notes may have notations, legends or endorsements
required by law, stock exchange rule or usage. Each Note shall be dated the date
of its authentication. The Notes shall be issued in registered, global form and
shall be in denominations of $1,000 and integral multiples of $1,000 in excess
thereof.

                  The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company, the Guarantors 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 Note conflicts with this Indenture,
this Indenture shall govern and be controlling.

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

                  (c)      Temporary Global Notes. Notes offered and sold in
reliance on Regulation S shall be issued initially in the form of the Regulation
S Temporary Global Note,

                                       23

<PAGE>

which shall be deposited on behalf of the purchasers of the Notes represented
thereby with the Trustee, as custodian for The Depository Trust Company in New
York, New York, and registered in the name of the Depositary or the nominee of
the Depositary for the accounts of designated agents holding on behalf of
Euroclear or Clearstream, duly executed by the Company and authenticated by the
Trustee as hereinafter provided. The Restricted Period shall be terminated upon
the receipt by the Trustee of (i) a written certificate from Euroclear and
Clearstream certifying that they have received certification of non-United
States beneficial ownership of 100% of the aggregate principal amount of the
Regulation S Temporary Global Note (except to the extent of any Beneficial
Owners thereof who acquired an interest therein during the Restricted Period
pursuant to another exemption from registration under the Securities Act and who
shall take delivery of a beneficial ownership interest in a 144A Global Note
bearing a Private Placement Legend, all as contemplated by Section 2.06(b)(ii)
hereof), and (ii) an Officers' Certificate from the Company. Following the
termination of the Restricted Period, beneficial interests in the Regulation S
Temporary Global Note shall be exchanged for beneficial interests in Regulation
S Permanent Global Notes pursuant to the Applicable Procedures. Simultaneously
with the authentication of Regulation S Permanent Global Notes, the Trustee
shall cancel the Regulation S Temporary Global Note. The aggregate principal
amount of the Regulation S Temporary Global Note and the Regulation S Permanent
Global Notes may from time to time be increased or decreased by adjustments made
on the records of the Trustee and the Depositary or its nominee, as the case may
be, in connection with transfers of interest as hereinafter provided.

                  (d)      Euroclear and Clearstream Procedures Applicable. The
provisions of the "Operating Procedures of the Euroclear System" and "Terms and
Conditions Governing Use of Euroclear" and the "General Terms and Conditions of
Clearstream Banking" and "Customer Handbook" of Clearstream shall be applicable
to transfers of beneficial interests in the Regulation S Global Notes that are
held by Participants through Euroclear or Clearstream.

                  Section 2.02.     Execution and Authentication. One Officer
shall sign the Notes for the Company by manual or facsimile signature.

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

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

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

                  The Trustee shall, upon a written order of the Company signed
by one Officer (an "Authentication Order"), authenticate Notes for original
issue up to the aggregate principal amount authorized pursuant to this
Indenture.

                  The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Notes. An authenticating agent may authenticate
Notes whenever the Trustee may

                                       24

<PAGE>

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 and Paying Agent. The Company
shall maintain an office or agency where Notes may be presented for registration
of transfer or for exchange ("Registrar") and an office or agency where Notes
may be presented for payment ("Paying Agent"). The Registrar shall keep a
register of the Notes and of their transfer and exchange. The Company may
appoint one or more co-registrars and one or more additional paying agents. The
term "Registrar" includes any co-registrar and the term "Paying Agent" includes
any additional paying 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 or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.

                  The Company initially appoints The Depository Trust Company
("DTC") to act as Depositary with respect to the Global Notes.

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

                  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, if any, or Liquidated Damages, if any, or interest on the Notes, and
shall notify the Trustee of any default by the Company 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
thereof) shall have no further liability for the money. If the Company or a
Subsidiary thereof 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 or reorganization proceedings relating to the
Company, the Trustee shall serve as Paying Agent for the Notes.

                  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 Notes and the Company shall otherwise comply with
TIA Section 312(a).

                  Section 2.06.     Transfer and Exchange. (a) Transfer and
Exchange of Global Notes. A Global Note 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

                                       25

<PAGE>

Depositary, by the Depositary or any such nominee to a successor Depositary or a
nominee of such successor Depositary. All Global Notes shall be exchanged by the
Company for Certificated Notes 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 120 days after the date of such notice from the Depositary or
(ii) the Company in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for Certificated Notes and delivers a
written notice to such effect to the Trustee; provided that in no event shall
the Regulation S Temporary Global Note be exchanged by the Company for
Certificated Notes prior to (x) the expiration of the Restricted Period and (y)
the receipt by the Registrar of any certificates required pursuant to Rule
903(b)(3)(ii)(B) under the Securities Act or (iii) there shall have occurred and
be continuing a Default or Event of Default with respect to the Notes. Upon the
occurrence of any of the preceding events in (i), (ii) or (iii) above,
Certificated Notes shall be issued in such names as the Depositary shall
instruct the Trustee. Global Notes also may be exchanged or replaced, in whole
or in part, as provided in Sections 2.07, 2.10 and 2.11 hereof. Every Note
authenticated and delivered in exchange for, or in lieu of, a Global Note or any
portion thereof, pursuant to this Section 2.06 or Section 2.07, 2.10 or 2.11
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a), however, beneficial interests in a Global Note
may be transferred and exchanged as provided in Section 2.06(b), (c) or (f)
hereof.

                  (b)      Transfer and Exchange of Beneficial Interests in the
Global Notes. The transfer and exchange of beneficial interests in the Global
Notes shall be effected through the Depositary, in accordance with this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes 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 Notes 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
         Note. Beneficial interests in any Restricted Global Note may be
         transferred to Persons who take delivery thereof in the form of a
         beneficial interest in the same Restricted Global Note in accordance
         with the transfer restrictions set forth in the Private Placement
         Legend; provided, however, that prior to the expiration of the
         Restricted Period, transfers of beneficial interests in the Regulation
         S Temporary Global Note may not be made to a U.S. Person or for the
         account or benefit of a U.S. Person (other than an Initial Purchaser).
         Beneficial interests in any Unrestricted Global Note may be transferred
         to Persons who take delivery thereof in the form of a beneficial
         interest in an Unrestricted Global Note. 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 Notes. 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 shall
         deliver to the Registrar either (A) a written order from a Participant
         or an Indirect Participant given to the Depositary in accordance with
         the Applicable Procedures directing the

                                       26

<PAGE>

         Depositary to credit or cause to be credited a beneficial interest in
         the Global Note in an amount equal to the beneficial interest to be
         transferred or exchanged and instructions given in accordance with the
         Applicable Procedures containing information regarding the Participant
         account to be credited with such increase or (B) 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 Certificated Note in an amount equal to the
         beneficial interest to be transferred or exchanged and instructions
         given by the Depositary to the Registrar containing information
         regarding the Person in whose name such Certificated Note shall be
         registered to effect the transfer or exchange referred to in (A) above;
         provided that in no event shall Certificated Notes be issued upon the
         transfer or exchange of beneficial interests in the Regulation S
         Temporary Global Note prior to (x) the expiration of the Restricted
         Period and (y) the receipt by the Registrar of any certificates
         required pursuant to Rule 903 under the Securities Act. Upon
         consummation of an Exchange Offer by the Company in accordance with
         Section 2.06(f) hereof, the requirements of this Section 2.06(b)(ii)
         shall be deemed to have been satisfied upon receipt by the Registrar of
         the instructions contained in the Letter of Transmittal delivered by
         the Holder of such beneficial interests in the Restricted Global Notes.
         Upon satisfaction of all of the requirements for transfer or exchange
         of beneficial interests in Global Notes contained in this Indenture and
         the Notes or otherwise applicable under the Securities Act, the Trustee
         shall adjust the principal amount of the relevant Global Note(s)
         pursuant to Section 2.06(h) hereof.

                  (iii)    Transfer of Beneficial Interests to Another
         Restricted Global Note. A beneficial interest in any Restricted Global
         Note may be transferred to a Person who takes delivery thereof in the
         form of a beneficial interest in another Restricted Global Note if the
         transfer complies with the requirements of Section 2.06(b)(ii) above
         and the Registrar receives the following:

                           (A)      if the transferee shall take delivery in the
                  form of a beneficial interest in the 144A Global Note, then
                  the transferor must deliver a certificate in the form of
                  Exhibit B hereto, including the certifications in item (1)
                  thereof; and

                           (B)      if the transferee shall take delivery in the
                  form of a beneficial interest in the Regulation S Global Note,
                  then the transferor must deliver a certificate in the form of
                  Exhibit B hereto, including the certifications in item (2)
                  thereof.

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

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the holder of the beneficial
                  interest to be transferred, in the case of an exchange, or the
                  transferee,

                                       27

<PAGE>

                  in the case of a transfer, certifies in the applicable Letter
                  of Transmittal that it is not (1) a Broker-Dealer, (2) a
                  Person participating in the distribution of the Exchange Notes
                  or (3) a Person who is an affiliate (as defined in Rule 144)
                  of the Company;

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

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a beneficial
                           interest in an Unrestricted Global Note, 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 Note 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 Note, a
                           certificate from such Holder in the form of Exhibit B
                           hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), 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 (B)
or (D) above at a time when an Unrestricted Global Note has not yet been issued,
the Company 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 Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to
subparagraph (B) or (D) above.

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

                  (c)      Transfer or Exchange of Beneficial Interests for
         Certificated Notes.

                  (i)      Beneficial Interests in Restricted Global Notes to
         Restricted Certificated Notes. If any Holder of a beneficial interest
         in a Restricted Global Note proposes to

                                       28

<PAGE>

         exchange such beneficial interest for a Restricted Certificated Note or
         to transfer such beneficial interest to a Person who takes delivery
         thereof in the form of a Restricted Certificated Note, then, upon
         receipt by the Registrar of the following documentation:

                           (A)      if the Holder of such beneficial interest in
                  a Restricted Global Note proposes to exchange such beneficial
                  interest for a Restricted Certificated Note, a certificate
                  from such Holder in the form of Exhibit C hereto, including
                  the certifications in item (2)(a) thereof;

                           (B)      if such beneficial interest is being
                  transferred to a QIB in accordance with Rule 144A under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (C)      if such beneficial interest is being
                  transferred to a Non-U.S. Person in an offshore transaction in
                  accordance with Rule 903 or Rule 904 under the Securities Act,
                  a certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (2) thereof;

                           (D)      if such beneficial interest is being
                  transferred pursuant to an exemption from the registration
                  requirements of the Securities Act in accordance with Rule 144
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(a) thereof;

                           (E)      if such beneficial interest is being
                  transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                           (F)      if such beneficial interest is being
                  transferred pursuant to an effective registration statement
                  under the Securities Act, a certificate to the effect set
                  forth in Exhibit B hereto, including the certifications in
                  item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and the
Company shall execute and the Trustee shall authenticate and deliver to the
Person designated in the instructions a Certificated Note in the appropriate
principal amount. Any Certificated Note issued in exchange for a beneficial
interest in a Restricted Global Note pursuant to this Section 2.06(c) 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 Certificated Notes to the
Persons in whose names such Notes are so registered. Any Certificated Note
issued in exchange for a beneficial interest in a Restricted Global Note
pursuant to this Section 2.06(c)(i) shall bear the Private Placement Legend and
shall be subject to all restrictions on transfer contained therein.

                  (ii)     Beneficial Interests in Regulation S Temporary Global
         Note to Definitive Notes. Notwithstanding Sections 2.06(c)(i)(A) and
         (C), a beneficial interest in the Regulation S Temporary Global Note
         may not be exchanged for a Certificated Note or transferred to a Person
         who takes delivery thereof in the form of a Certificated Note prior

                                       29

<PAGE>

         to (x) the expiration of the Restricted Period and (y) the receipt by
         the Registrar of any certificates required pursuant to Rule
         903(b)(3)(ii)(B) under the Securities Act, except in the case of a
         transfer pursuant to an exemption from the registration requirements of
         the Securities Act other than Rule 903 or Rule 904.

                  (iii)    Beneficial Interests in Restricted Global Notes to
         Unrestricted Certificated Notes. A Holder of a beneficial interest in a
         Restricted Global Note may exchange such beneficial interest for an
         Unrestricted Certificated Note or may transfer such beneficial interest
         to a Person who takes delivery thereof in the form of an Unrestricted
         Certificated Note only if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the Holder of such
                  beneficial interest, in the case of an exchange, or the
                  transferee, in the case of a transfer, certifies in the
                  applicable Letter of Transmittal that it is not (1) a
                  Broker-Dealer, (2) a Person participating in the distribution
                  of the Exchange Notes or (3) a Person who is an affiliate (as
                  defined in Rule 144) of the Company;

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

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such beneficial
                           interest in a Restricted Global Note proposes to
                           exchange such beneficial interest for a Certificated
                           Note 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 Note proposes to
                           transfer such beneficial interest to a Person who
                           shall take delivery thereof in the form of a
                           Certificated Note 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 (4) thereof;

                  and, in each such case set forth in this subparagraph (D), 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.

                  (iv)     Beneficial Interests in Unrestricted Global Notes to
         Unrestricted Certificated Notes. If any Holder of a beneficial interest
         in an Unrestricted Global Note

                                       30

<PAGE>

         proposes to exchange such beneficial interest for a Certificated Note
         or to transfer such beneficial interest to a Person who takes delivery
         thereof in the form of a Certificated Note, then, upon satisfaction of
         the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee
         shall cause the aggregate principal amount of the applicable Global
         Note to be reduced accordingly pursuant to Section 2.06(h) hereof, and
         the Company shall execute and the Trustee shall authenticate and
         deliver to the Person designated in the instructions a Certificated
         Note in the appropriate principal amount. Any Certificated Note issued
         in exchange for a beneficial interest pursuant to this Section
         2.06(c)(iv) 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 Certificated Notes to the Persons in whose
         names such Notes are so registered. Any Certificated Note issued in
         exchange for a beneficial interest pursuant to this Section 2.06(c)(iv)
         shall not bear the Private Placement Legend.

                  (d)      Transfer and Exchange of Certificated Notes for
         Beneficial Interests.

                  (i)      Restricted Certificated Notes to Beneficial Interests
         in Restricted Global Notes. If any Holder of a Restricted Certificated
         Note proposes to exchange such Note for a beneficial interest in a
         Restricted Global Note or to transfer such Restricted Certificated Note
         to a Person who takes delivery thereof in the form of a beneficial
         interest in a Restricted Global Note, then, upon receipt by the
         Registrar of the following documentation:

                           (A)      if the Holder of such Restricted
                  Certificated Note proposes to exchange such Note for a
                  beneficial interest in a Restricted Global Note, a certificate
                  from such Holder in the form of Exhibit C hereto, including
                  the certifications in item (2)(b) thereof;

                           (B)      if such Restricted Certificated Note is
                  being transferred to a QIB in accordance with Rule 144A under
                  the Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (1)
                  thereof;

                           (C)      if such Restricted Certificated Note is
                  being transferred to a Non-U.S. Person in an offshore
                  transaction in accordance with Rule 903 or Rule 904 under the
                  Securities Act, a certificate to the effect set forth in
                  Exhibit B hereto, including the certifications in item (2)
                  thereof;

                           (D)      if such Restricted Certificated Note is
                  being transferred pursuant to an exemption from the
                  registration requirements of the Securities Act in accordance
                  with Rule 144 under the Securities Act, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(a) thereof;

                           (E)      if such Restricted Certificated Note is
                  being transferred to the Company or any of its Subsidiaries, a
                  certificate to the effect set forth in Exhibit B hereto,
                  including the certifications in item (3)(b) thereof; or

                                       31

<PAGE>

                           (F)      if such Restricted Certificated Note is
                  being transferred pursuant to an effective registration
                  statement under the Securities Act, a certificate to the
                  effect set forth in Exhibit B hereto, including the
                  certifications in item (3)(c) thereof,

the Trustee shall cancel the Restricted Certificated Note, increase or cause to
be increased the aggregate principal amount of, in the case of clause (A) above,
the appropriate Restricted Global Note, in the case of clause (B) above, the
144A Global Note, and in the case of clause (C) above, the Regulation S Global
Note.

                  (ii)     Restricted Certificated Notes to Beneficial Interests
         in Unrestricted Global Notes. A Holder of a Restricted Certificated
         Note may exchange such Note for a beneficial interest in an
         Unrestricted Global Note or transfer such Restricted Certificated Note
         to a Person who takes delivery thereof in the form of a beneficial
         interest in an Unrestricted Global Note only if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the Holder, in the case of
                  an exchange, or the transferee, in the case of a transfer,
                  certifies in the applicable Letter of Transmittal that it is
                  not (1) a Broker-Dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company;

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

                           (C)      such transfer is effected by a Broker-Dealer
                  pursuant to the Exchange Offer Registration Statement in
                  accordance with the Registration Rights Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such Certificated
                           Notes proposes to exchange such Notes for a
                           beneficial interest in the Unrestricted Global Note,
                           a certificate from such Holder in the form of Exhibit
                           C hereto, including the certifications in item (1)(c)
                           thereof; or

                                    (2)      if the Holder of such Certificated
                           Notes proposes to transfer such Notes to a Person who
                           shall take delivery thereof in the form of a
                           beneficial interest in the Unrestricted Global Note,
                           a certificate from such Holder in the form of Exhibit
                           B hereto, including the certifications in item (4)
                           thereof;

                  and, in each such case set forth in this subparagraph (D), 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

                                       32

<PAGE>

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

Upon satisfaction of the conditions of any of the subparagraphs in this Section
2.06(d)(ii), the Trustee shall cancel the Certificated Notes and increase or
cause to be increased the aggregate principal amount of the Unrestricted Global
Note.

                  (iii)    Unrestricted Certificated Notes to Beneficial
         Interests in Unrestricted Global Notes. A Holder of an Unrestricted
         Certificated Note may exchange such Note for a beneficial interest in
         an Unrestricted Global Note or transfer such Certificated Notes to a
         Person who takes delivery thereof in the form of a beneficial interest
         in an Unrestricted Global Note at any time. Upon receipt of a request
         for such an exchange or transfer, the Trustee shall cancel the
         applicable Unrestricted Certificated Note and increase or cause to be
         increased the aggregate principal amount of one of the Unrestricted
         Global Notes.

                  If any such exchange or transfer from a Certificated Note to a
beneficial interest is effected pursuant to subparagraph (ii)(B), (ii)(D) or
(iii) above at a time when an Unrestricted Global Note has not yet been issued,
the Company 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 Notes in an aggregate principal amount equal to the
principal amount of Certificated Notes so transferred.

                  (e)      Transfer and Exchange of Certificated Notes for
Certificated Notes. Upon request by a Holder of Certificated Notes and such
Holder's compliance with this Section 2.06(e), the Registrar shall register the
transfer or exchange of Certificated Notes. Prior to such registration of
transfer or exchange, the requesting Holder shall present or surrender to the
Registrar the Certificated Notes 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 applicable, required pursuant to the following clauses of this
Section 2.06(e).

                  (i)      Restricted Certificated Notes to Restricted
         Certificated Notes. Any Restricted Certificated Note may be transferred
         to and registered in the name of Persons who take delivery thereof in
         the form of a Restricted Certificated Note if the Registrar receives
         the following:

                           (A)      if the transfer shall be made pursuant to
                  Rule 144A under the Securities Act, then the transferor must
                  deliver a certificate in the form of Exhibit B hereto,
                  including the certifications in item (1) thereof;

                           (B)      if the transfer shall be made pursuant to
                  Rule 903 or Rule 904, then the transferor must deliver a
                  certificate in the form of Exhibit B hereto, including the
                  certifications in item (2) thereof; and

                           (C)      if the transfer shall be made pursuant to
                  any other exemption from the registration requirements of the
                  Securities Act, then the transferor must deliver

                                       33

<PAGE>

                  a certificate in the form of Exhibit B hereto, including the
                  certifications, certificates and Opinion of Counsel required
                  by item (3) thereof, if applicable.

                  (ii)     Restricted Certificated Notes to Unrestricted
         Certificated Notes. Any Restricted Certificated Note may be exchanged
         by the Holder thereof for an Unrestricted Certificated Note or
         transferred to a Person or Persons who take delivery thereof in the
         form of an Unrestricted Certificated Note if:

                           (A)      such exchange or transfer is effected
                  pursuant to the Exchange Offer in accordance with the
                  Registration Rights Agreement and the Holder, in the case of
                  an exchange, or the transferee, in the case of a transfer,
                  certifies in the applicable Letter of Transmittal that it is
                  not (1) a Broker-Dealer, (2) a Person participating in the
                  distribution of the Exchange Notes or (3) a Person who is an
                  affiliate (as defined in Rule 144) of the Company;

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

                           (C)      any such transfer is effected by a
                  Broker-Dealer pursuant to the Exchange Offer Registration
                  Statement in accordance with the Registration Rights
                  Agreement; or

                           (D)      the Registrar receives the following:

                                    (1)      if the Holder of such Restricted
                           Certificated Notes proposes to exchange such Notes
                           for an Unrestricted Certificated Note, a certificate
                           from such Holder in the form of Exhibit C hereto,
                           including the certifications in item (1)(d) thereof;
                           or

                                    (2)      if the Holder of such Restricted
                           Certificated Notes proposes to transfer such Notes to
                           a Person who shall take delivery thereof in the form
                           of an Unrestricted Certificated Note, a certificate
                           from such Holder in the form of Exhibit B hereto,
                           including the certifications in item (4) thereof;

                  and, in each such case set forth in this subparagraph (D), if
                  the Registrar so requests, an Opinion of Counsel in form
                  reasonably acceptable to the Company 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.

                  (iii)    Unrestricted Certificated Notes to Unrestricted
         Certificated Notes. A Holder of Unrestricted Certificated Notes may
         transfer such Notes to a Person who takes delivery thereof in the form
         of an Unrestricted Certificated Note. Upon receipt of a request to
         register such a transfer, the Registrar shall register the Unrestricted
         Certificated Notes pursuant to the instructions from the Holder
         thereof.

                                       34

<PAGE>

                  (f)      Exchange Offer. Upon the occurrence of the Exchange
Offer in accordance with the Registration Rights Agreement, the Company shall
issue and, upon receipt of an Authentication Order in accordance with Section
2.02, the Trustee shall authenticate (i) one or more Unrestricted Global Notes
in an aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
Broker-Dealers, (y) they are not participating in a distribution of the Exchange
Notes and (z) they are not affiliates (as defined in Rule 144) of the Company,
and accepted for exchange in the Exchange Offer and (ii) Certificated Notes in
an aggregate principal amount equal to the principal amount of the Restricted
Certificated Notes accepted for exchange in the Exchange Offer. Concurrently
with the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Certificated Notes so accepted Certificated
Notes in the appropriate principal amount. Any Notes that remain outstanding
after the consummation of the Exchange Offer, and Exchange Notes issued in
connection with the Exchange Offer, shall be treated as a single class of
securities under this Indenture.

                  (g)      Legends. The following legends shall appear on the
face of Global Notes and Certificated Notes issued under this Indenture as
specified in this Indenture.

                  (i)      Private Placement Legend. (A) Except as permitted by
         subparagraph (B) below, each Global Note and each Certificated Note
         (and all Notes issued in exchange therefor or substitution thereof)
         shall bear the legend in substantially the following form:

                  "THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
                  "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. NEITHER THIS
                  NOTE NOR THE GUARANTEES ENDORSED HEREON NOR ANY INTEREST OR
                  PARTICIPATION HEREIN MAY BE OFFERED, 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, THE REGISTRATION REQUIREMENTS
                  OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE
                  GUARANTEES ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO
                  OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE
                  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 THE COMPANY WAS THE OWNER OF THIS NOTE AND THE
                  GUARANTEES ENDORSED HEREON (OR ANY PREDECESSOR OF THIS NOTE
                  AND THE GUARANTEES ENDORSED HEREON OF THIS NOTE) (THE "RESALE
                  RESTRICTION TERMINATION DATE") ONLY (A) TO THE COMPANY OR ANY
                  SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION
                  STATEMENT UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
                  NOTES ARE ELIGIBLE FOR RESALE PURSUANT TO

                                       35

<PAGE>

                  RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON
                  IT REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS
                  DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR
                  THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
                  IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE
                  144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS
                  THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
                  REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO
                  ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
                  OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE
                  TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER (i)
                  PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40-DAY
                  DISTRIBUTION COMPLIANCE PERIOD WITHIN THE MEANING OF
                  REGULATION S UNDER THE SECURITIES ACT OR PURSUANT TO CLAUSE
                  (E) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO
                  REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
                  AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND
                  (ii) IN EACH OF THE FOREGOING CASES, TO REQUIRE THAT A
                  CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS NOTE IS
                  COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER
                  AGENT. THIS LEGEND SHALL BE REMOVED UPON THE REQUEST OF A
                  HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE."

                  (B)      Notwithstanding the foregoing, any Global Note or
         Certificated Note issued pursuant to subparagraph (b)(iv), (c)(iii),
         (c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this Section
         2.06 (and all Notes issued in exchange therefor or substitution
         thereof) shall not bear the Private Placement Legend.

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

                  "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 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
                  TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
                  CONSENT OF THE COMPANY."

                                       36

<PAGE>

                  (h)      Regulation S Temporary Global Note Legend. Each
Regulation S Temporary Global Note shall bear a legend in substantially the
following form:

                  "THE NOTE IS A TEMPORARY REGULATION S GLOBAL NOTE WITHIN THE
                  MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. EXCEPT IN
                  THE CIRCUMSTANCES DESCRIBED IN SECTION 2.06 OF THE INDENTURE,
                  NO TRANSFER OR EXCHANGE OF AN INTEREST IN THIS TEMPORARY
                  GLOBAL NOTE MAY BE MADE FOR AN INTEREST IN THE RESTRICTED
                  GLOBAL NOTE. NO EXCHANGE OF AN INTEREST IN THIS TEMPORARY
                  REGULATION S GLOBAL NOTE MAY BE MADE FOR AN INTEREST IN THE
                  PERMANENT REGULATION S GLOBAL NOTE EXCEPT (A) ON OR AFTER THE
                  TERMINATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED
                  IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED
                  (THE "SECURITIES ACT")) AND (B) UPON DELIVERY OF THE OWNER
                  SECURITIES CERTIFICATION AND THE TRANSFEREE SECURITIES
                  CERTIFICATION RELATING TO SUCH INTEREST IN ACCORDANCE WITH THE
                  TERMS OF THE INDENTURE.

                  UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING OF THE
                  NOTES, AN OFFER OR SALE OF THE NOTES WITHIN THE UNITED STATES
                  BY A DEALER (AS DEFINED IN THE SECURITIES ACT OF 1933, AS
                  AMENDED) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE
                  SECURITIES ACT OF 1933, AS AMENDED IF SUCH OFFER OR SALE IS
                  MADE OTHERWISE THAN IN ACCORDANCE WITH RULE 144A UNDER THE
                  SECURITIES ACT OF 1933, AS AMENDED."

                  (i)      Cancellation and/or Adjustment of Global Notes. At
such time as all beneficial interests in a particular Global Note have been
exchanged for Certificated Notes or a particular Global Note has been redeemed,
repurchased or canceled in whole and not in part, each such Global Note shall be
returned to or retained and canceled by the Trustee in accordance with Section
2.12 hereof. At any time prior to such cancellation, if any beneficial interest
in a Global Note is exchanged for or transferred to a Person who shall take
delivery thereof in the form of a beneficial interest in another Global Note or
for Certificated Notes, the principal amount of Notes represented by such Global
Note shall be reduced accordingly and an endorsement shall be made on such
Global Note 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 Note, such other Global Note shall be
increased accordingly and an endorsement shall be made on such Global Note by
the Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

                                       37

<PAGE>

                  (j)      General Provisions Relating to Transfers and
Exchanges. (i) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate Global Notes and Certificated
Notes upon the Company's order or at the Registrar's request.

                  (ii)     No service charge shall be made to a holder of a
         beneficial interest in a Global Note or to a Holder of a Certificated
         Note 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 2.11, 3.06, 3.09, 4.10, 4.14
         and 9.05 hereof).

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

                  (iv)     All Global Notes and Certificated Notes issued upon
         any registration of transfer or exchange of Global Notes or
         Certificated Notes 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 Notes or Certificated
         Notes 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 Notes during a period
         beginning at the opening of business 15 days before the day of any
         selection of Notes for redemption under Section 3.02 hereof and ending
         at the close of business on the day of selection, (B) to register the
         transfer of or to exchange any Note so selected for redemption in whole
         or in part, except the unredeemed portion of any Note being redeemed in
         part or (C) to register the transfer of or to exchange a Note between a
         record date and the next succeeding Interest Payment Date.

                  (vi)     Prior to due presentment for the registration of a
         transfer of any Note, the Trustee, any Agent and the Company may deem
         and treat the Person in whose name any Note is registered as the
         absolute owner of such Note for the purpose of receiving payment of
         principal of and interest on such Notes 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 Notes and
         Certificated Notes in accordance with 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.

                  Section 2.07.     Replacement Notes. If any mutilated Note is
surrendered to the Trustee or the Company and the Trustee receives evidence to
its satisfaction of the destruction, loss or theft of any Note, the Company
shall issue and the Trustee, upon receipt of an Authentication Order, shall
authenticate a replacement Note if the Trustee's requirements are met. If
required by the Trustee or the Company, an indemnity bond must be supplied by
the

                                       38
<PAGE>

Holder that is sufficient in the judgment of the Trustee and the Company to
protect the Company, the Trustee, any Agent and any authenticating agent from
any loss that any of them may suffer if a Note is replaced. The Company may
charge for its expenses in replacing a Note.

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

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

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

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

                  If the Paying Agent (other than the Company, a Subsidiary or
an Affiliate of any of the foregoing) holds, on a redemption date or maturity
date, money sufficient to pay Notes payable on that date in full, then on and
after that date such Notes shall be deemed to be no longer outstanding and shall
cease to accrue interest.

                  Section 2.09.     Treasury Notes. In determining whether the
Holders of the required principal amount of the Notes have concurred in any
direction, waiver or consent, Notes owned by the Company, any direct or indirect
Subsidiary of the Company or any Affiliate of the Company 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, waiver or consent,
only Notes that the Trustee knows are so owned shall be so disregarded. Notes so
owned which have been pledged in good faith shall not be disregarded if the
pledgee establishes to the satisfaction of the Trustee the pledgee's right to
deliver any such direction, waiver or consent with respect to the Notes and that
the pledgee is not the Company or any obligor upon the Notes or any Affiliate of
the Company or of such other obligor.

                  Section 2.10.     Certificated Notes. (a) A Global Note
deposited with the Depositary or other custodian for the Depositary pursuant to
Section 2.01 shall be transferred to the beneficial owners thereof in the form
of certificated Notes only if such transfer complies with Section 2.06 and (i)
the Depositary notifies the Company that it is unwilling or unable to continue
as the Depositary for such Global Note, or if at any time the Depositary ceases
to be a "clearing agency" registered under the Exchange Act and a successor
depositary is not appointed by the Company within 90 days of the earlier of such
notice or the Company becoming aware of

                                       39
<PAGE>

such cessation, or (ii) the Company, at its option, executes and delivers to the
Trustee a notice that such Global Note be so transferable, registrable and
exchangeable, or (iii) a Default or an Event of Default has occurred and is
continuing with respect to the Notes and the Registrar has received a request
for such transfer from either the Depositary or a Person with a beneficial
interest in such Notes or (iv) the issuance of such certificated Notes is
necessary in order for a Holder or beneficial owner to present its Note or Notes
to a Paying Agent in order to avoid any tax that is imposed on or with respect
to a payment made to such Holder or beneficial owner and the Holder or
beneficial owner (through the Depositary) so certifies to the Company and the
Trustee. Notice of any such transfer shall be given by the Company in accordance
with the provisions of Section 12.02.

                  (b)      Any Global Note that is transferable to the
beneficial owners thereof in the form of certificated Notes pursuant to this
Section 2.10 shall be surrendered by the Depositary to the Transfer Agent, to be
so transferred, in whole or from time to time in part, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of
such Global Note, an equal aggregate principal amount of Notes of authorized
denominations in the form of certificated Notes.

                  (c)      In connection with the exchange of an entire Global
Note for certificated Notes pursuant to this Section 2.10, such Global Note
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by the Depositary in exchange for its beneficial
interest in such Global Note, an equal aggregate principal amount of
certificated Notes. In the event that such certificated Notes are not issued to
each beneficial owner promptly after the Registrar has received a request from
the Depositary or (through the Depositary) a beneficial owner to issue such
certificated Notes, the Company expressly acknowledges, with respect to the
right of any Holder to pursue a remedy pursuant to Article Six hereof, the right
of any beneficial owner of Notes to pursue such remedy with respect to the
portion of the Global Note that represents such beneficial owner's Notes as if
such certificated Notes had been issued.

                  (d)      Any portion of a Global Note transferred or exchanged
pursuant to this Section 2.10 shall be executed, authenticated and delivered
only in registered form in denominations of $1,000 and any integral multiple
thereof and registered in such names as the Depositary shall direct. Subject to
the foregoing, a Global Note is not exchangeable except for a Global Note of
like denomination to be registered in the name of the Depositary or its nominee.
In the event that a Global Note becomes exchangeable for certificated Notes,
payment of principal, premium, if any, and Liquidated Damages, if any, and
interest on the certificated Notes will be payable, and the transfer of the
certificated Notes will be registrable, at the office or agency of the Company
maintained for such purposes in accordance with Section 2.03.

                  (e)      In the event of the occurrence of any of the events
specified in Section 2.10(a), the Company will promptly make available to the
Trustee a reasonable supply of certificated Notes in definitive, fully
registered form without interest coupons.

                  Section 2.11.     Temporary Notes. Until certificates
representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, shall authenticate temporary
Notes. Temporary Notes shall be substantially in the form of

                                       40
<PAGE>

certificated Notes but may have variations that the Company considers
appropriate for temporary Notes and as shall be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company shall prepare and the Trustee
shall authenticate definitive Notes in exchange for temporary Notes.

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

                  Section 2.12.     Cancellation. The Company at any time may
deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent
shall forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else shall cancel all
Notes surrendered for registration of transfer, exchange, payment, replacement
or cancellation and shall dispose of such canceled Notes in its customary manner
(subject to record retention requirements of the Exchange Act). Subject to
Section 2.07, the Company may not issue new Notes to replace Notes that it has
paid or that have been delivered to the Trustee for cancellation.

                  Section 2.13.     Defaulted Interest. If the Company defaults
in a payment of interest on the Notes, 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 Notes 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 Note 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 2.14.     CUSIP and ISIN Numbers. The Company in
issuing the Notes may use "CUSIP" and "ISIN" numbers (if then generally in use),
and, if so, the Trustee shall use "CUSIP" and "ISIN" 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 Notes or as contained in any notice of redemption and that
reliance may be placed only on the other identification numbers printed on the
Notes, 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" or "ISIN" numbers.

                  Section 2.15.     Deposit of Moneys. By or before 12:00 p.m.
(noon) Eastern Time on each due date of the principal, premium, if any, and
Liquidated Damages, if any, and interest on any Notes, the Company shall deposit
with the Paying Agent money in immediately available funds sufficient to pay
such principal, premium, if any, and Liquidated Damages, if any, and interest so
becoming due on the due date for payment under the Notes and (unless the Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its action
or failure so to act.

                                       41
<PAGE>

                  Section 2.16.     Computation of Interest. Interest on the
Notes shall be computed on the basis of a 360-day year of twelve 30-day months.

                                   ARTICLE 3

                           REDEMPTION AND PREPAYMENT

                  Section 3.01.     Notices to Trustee. If the Company elects to
redeem Notes pursuant to Section 3.07 hereof, it shall furnish to the Trustee,
at least 30 days but not more than 60 days before a redemption date (unless a
shorter notice period shall be satisfactory to the Trustee in its reasonable
discretion), an Officers' Certificate setting forth (a) the clause of this
Indenture pursuant to which the redemption shall occur, (b) the redemption date,
(c) the principal amount of Notes to be redeemed and (d) the redemption price.

                  Section 3.02.     Selection of Notes to Be Redeemed. If less
than all of the Notes are to be redeemed at any time, selection of Notes for
redemption shall be made by the Trustee in compliance with the requirements of
the principal national securities exchange, if any, on which the Notes are
listed, or, if the Notes are not so listed, on a pro rata basis, by lot or by
such method as the Trustee shall deem fair and appropriate. In the event of
partial redemption by lot, the particular Notes to be redeemed shall be
selected, unless otherwise provided herein, not less than 30 nor more than 60
days prior to the redemption date by the Trustee (unless a shorter time period
shall be satisfactory to the Trustee) from the outstanding Notes not previously
called for redemption.

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

                  Section 3.03.     Notice of Redemption. Subject to Section
3.09 hereof, at least 30 days but not more than 60 days before a redemption
date, the Company shall mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Notes are to be redeemed at its
registered address.

                  The notice shall identify the Notes to be redeemed and shall
state:

                  (a)      the redemption date;

                  (b)      the redemption price;

                  (c)      if any Note is being redeemed in part, the portion of
         the principal amount of such Note to be redeemed and that, after the
         redemption date upon surrender of such Note, a new Note or Notes in
         principal amount equal to the unredeemed portion of the

                                       42
<PAGE>

         original Note shall be issued in the name of the Holder thereof upon
         cancellation of the original Note;

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

                  (e)      that Notes called for redemption must be surrendered
         to the Paying Agent to collect the redemption price and become due on
         the date fixed for redemption;

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

                  (g)      the paragraph of the Notes and/or Section of this
         Indenture pursuant to which the Notes called for redemption are being
         redeemed; and

                  (h)      that no representation is made as to the correctness
         or accuracy of the CUSIP number, if any, listed in such notice or
         printed on the Notes.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; provided, however, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date, an Officers' Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided
in the preceding paragraph. The notice, if mailed in the manner provided herein
shall be presumed to have been given, whether or not the Holder receives such
notice.

                  Section 3.04.     Effect of Notice of Redemption. Once notice
of redemption is mailed in accordance with Section 3.03 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the
redemption price. A notice of redemption may not be conditional.

                  Section 3.05.     Deposit of Redemption Price. Not later than
one Business Day prior to the redemption date, the Company shall deposit with
the Trustee or with the Paying Agent money sufficient to pay the redemption
price of and accrued and unpaid interest and Liquidated Damages, if any, on all
Notes to be redeemed on that date. The Trustee or the Paying Agent shall
promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption price of, and accrued and unpaid interest on, all Notes to be
redeemed.

                  If the Company complies with the preceding paragraph of this
Section 3.05, on and after the redemption date, interest shall cease to accrue
on the Notes or the portions of Notes called for redemption. If a Note is
redeemed on or after a record date but on or prior to the related Interest
Payment Date, then any accrued and unpaid interest shall be paid to the Person
in whose name such Note was registered at the close of business on such record
date. If any Note called for redemption shall not be so paid upon surrender for
redemption because of the failure of the Company to comply with the preceding
paragraph, interest shall accrue on the unpaid principal, from the redemption
date until such principal is paid, and to the extent permitted by applicable law
on any interest accrued through the date of redemption but not paid on such
unpaid principal, in each case at the rate provided in the Notes and in Section
4.01 hereof.

                                       43
<PAGE>

                  Section 3.06.     Notes Redeemed in Part. Upon surrender of a
Note that is redeemed in part, the Company shall issue and, upon the Company's
written request, the Trustee shall authenticate for the Holder at the expense of
the Company a new Note equal in principal amount to the unredeemed portion of
the Note surrendered.

                  Section 3.07.     Optional Redemption. (a) Except as set forth
in clause (b) of this Section 3.07, the Notes shall not be redeemable at the
Company's option prior to October 1, 2008. Thereafter, the Company may redeem
all or a part of the Notes, from time to time, upon not less than 30 nor more
than 60 days' notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Liquidated Damages, if any, to the applicable redemption date, if redeemed
during the twelve-month period beginning on October 1 of the years indicated
below:

<TABLE>
<CAPTION>
YEAR                                                           PERCENTAGE
----                                                           ----------
<S>                                                            <C>
2008....................................................        104.250%
2009....................................................        102.833%
2010....................................................        101.417%
2011 and thereafter.....................................        100.000%
</TABLE>

                  (b)      At any time prior to October 1, 2006, the Company may
at its option on any one or more occasions redeem up to 35% of the aggregate
principal amount of Notes at a redemption price of 108.50% of the principal
amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any,
thereon to the redemption date, with the net cash proceeds of one or more Equity
Offerings; provided that (i) at least 65% of the aggregate principal amount of
Notes remains outstanding immediately after the occurrence of such redemption
(excluding Notes held by the Company or its Subsidiaries); and (ii) the
redemption must occur within 45 days of the date of the closing of such Equity
Offering.

                  (c)      Any redemption pursuant to this Section 3.07 shall be
made pursuant to Section 3.01 through 3.06 hereof.

                  Section 3.08.     Mandatory Redemption. The Company is not
required to make mandatory redemption or sinking fund payments with respect to
the Notes.

                  Section 3.09.     Offer to Purchase. In the event that,
pursuant to Sections 4.10 and 4.14 hereof, the Company shall be required to
commence an offer to all Holders to purchase Notes (a "Repurchase Offer"), it
shall follow the procedures specified below.

                  The Repurchase Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "Offer Period"). No
later than five Business Days after the termination of the Offer Period (the
"Purchase Date"), the Company shall purchase the principal amount of Notes
required to be purchased pursuant to Section 4.10 or 4.14 hereof (the "Offer
Amount") or, if less than the Offer Amount has been tendered, all Notes tendered
in response to the Repurchase Offer. Payment for any Notes so purchased shall be
made in the same manner as interest payments are made.

                                       44
<PAGE>

                  If the Purchase Date is on or after an interest Record Date
and on or before the related Interest Payment Date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the
close of business on such Record Date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Repurchase Offer.

                  Upon the commencement of a Repurchase Offer, the Company shall
send, by first class mail, a notice to the Trustee and each of the Holders, with
a copy to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Repurchase
Offer. The Repurchase Offer shall be made to all Holders. The notice, which
shall govern the terms of the Repurchase Offer, shall state:

                  (a)      that the Repurchase Offer is being made pursuant to
         this Section 3.09 and Section 4.10 or 4.14 hereof and the length of
         time the Repurchase Offer shall remain open;

                  (b)      the Offer Amount, the purchase price and the Purchase
         Date;

                  (c)      that any Note not tendered or accepted for payment
         shall continue to accrue interest and Liquidated Damages, if any;

                  (d)      that, unless the Company defaults in making such
         payment, any Note accepted for payment pursuant to the Repurchase Offer
         shall cease to accrue interest and Liquidated Damages, if any, after
         the Purchase Date;

                  (e)      that Holders electing to have a Note purchased
         pursuant to a Repurchase Offer may only elect to have all of such Note
         purchased or a portion of such Note in denominations of $1,000 or
         integral multiples thereof;

                  (f)      that Holders electing to have a Note purchased
         pursuant to any Repurchase Offer shall be required to surrender the
         Note, with the form entitled "Option of Holder to Elect Purchase" on
         the reverse of the Note completed, or transfer by book-entry transfer,
         to the Company, the Depositary, if appointed by the Company, or a
         Paying Agent at the address specified in the notice at least three days
         before the Purchase Date;

                  (g)      that Holders shall be entitled to withdraw their
         election if the Company, the Depositary or the Paying Agent, as the
         case may be, receives, not later than the expiration of the Offer
         Period, a telegram, telex, facsimile transmission or letter setting
         forth the name of the Holder, the principal amount of the Note the
         Holder delivered for purchase and a statement that such Holder is
         withdrawing his election to have such Note purchased;

                  (h)      that, if the aggregate principal amount of Notes
         surrendered by Holders exceeds the Offer Amount required pursuant to
         Section 4.10, the Company shall select the Notes to be purchased
         pursuant to the terms of Section 3.02 (with such adjustments as may be
         deemed appropriate by the Trustee so that only Notes in denominations
         of $1,000, or integral multiples thereof, shall be purchased); and

                                       45
<PAGE>

                  (i)      that Holders whose Notes were purchased only in part
         shall be issued new Notes equal in principal amount to the unpurchased
         portion of the Notes surrendered (or transferred by book-entry
         transfer).

                  On or before the Purchase Date, the Company shall, to the
extent lawful, accept for payment, on a pro rata basis to the extent necessary,
the Offer Amount of Notes or portions thereof tendered pursuant to the
Repurchase Offer, or if less than the Offer Amount has been tendered, all Notes
tendered, and shall deliver to the Trustee an Officers' Certificate stating that
such Notes or portions thereof were accepted for payment by the Company in
accordance with the terms of this Section 3.09. The Company, the Depositary or
the Paying Agent, as the case may be, shall promptly (but in any case not later
than five days after the Purchase Date) mail or deliver to each tendering Holder
an amount equal to the purchase price of the Notes tendered by such Holder and
accepted by the Company for purchase, and the Company shall promptly issue a new
Note, and the Trustee, upon written request from the Company shall authenticate
and mail or deliver such new Note to such Holder, in a principal amount equal to
any unpurchased portion of the Note surrendered. Any Note not so accepted shall
be promptly mailed or delivered by the Company to the Holder thereof. The
Company shall publicly announce the results of the Repurchase Offer on the
Purchase Date.

                  Other than as specifically provided in this Section 3.09, any
purchase pursuant to this Section 3.09 shall be made pursuant to Sections 3.01
through 3.06 hereof.

                                   ARTICLE 4

                                   COVENANTS

                  Section 4.01.     Payment of Notes. The Company shall pay or
cause to be paid the principal of, premium, if any, and Liquidated Damages, if
any, and interest on the Notes on the dates and in the manner provided in the
Notes and in this Indenture. Principal, premium, if any, and Liquidated Damages,
if any, and interest shall be considered paid on the date due if the Paying
Agent, if a Person other than the Company, a Subsidiary or affiliate thereof,
holds as of 12:00 p.m. (noon) Eastern Time on the due date money deposited by
the Company in immediately available funds and designated for and sufficient to
pay all principal, premium, if any, and Liquidated Damages, if any, and accrued
and unpaid interest then due.

                  The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the
rate equal to 1% per annum in excess of the then applicable interest rate on the
Notes to the extent lawful; it shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Liquidated Damages (without regard to any applicable grace period)
at the same rate to the extent lawful.

                  Section 4.02.     Maintenance of Office or Agency. The Company
shall maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee,
Registrar or co-registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or

                                       46
<PAGE>

upon the Company in respect of the Notes and this Indenture may be served. The
Company shall give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee.

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

                  The Company hereby designates the Corporate Trust Office of
the Trustee as one such office or agency of the Company in accordance with
Section 2.03.

                  Section 4.03.     Reports. (a) Whether or not required by the
SEC, so long as any Notes are outstanding, the Company shall prepare and furnish
to the Holders of Notes, within the time periods specified in the SEC's rules
and regulations, (i) all quarterly and annual financial information that would
be required to be contained in a filing with the SEC on Forms 10-Q and 10-K if
the Company were required to file such Forms, including a "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and,
with respect to the annual information only, a report on the annual financial
statements by the Company's certified independent accountants; and (ii) all
current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports. In addition, whether or not
required by the SEC, the Company shall file a copy of all of the information and
reports referred to in clauses (i) and (ii) above with the SEC for public
availability within the time periods specified in the SEC's rules and
regulations (unless the SEC shall not accept such a filing) and make such
information available to securities analysts and prospective investors upon
request. In addition, the Company and the Guarantors have agreed that, for so
long as any Notes remain outstanding, they shall furnish to the Holders and to
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

                  (b)      If the Company has designated any of its Subsidiaries
as Unrestricted Subsidiaries, then the quarterly and annual financial
information required by paragraph (a) above shall include a reasonably detailed
presentation, either on the face of the financial statements or in the footnotes
thereto, and in "Management's Discussion and Analysis of Financial Condition and
Results of Operations," of the financial condition and results of operations of
the Company and its Restricted Subsidiaries separate from the financial
condition and results of operations of the Unrestricted Subsidiaries of the
Company.

                  Section 4.04.     Compliance Certificate. (a) The Company and
each Guarantor (to the extent that such Guarantor is so required under the TIA)
shall deliver to the Trustee, within 90 days after the end of each fiscal year,
an Officers' Certificate stating that, to his or her knowledge the Company has
kept, observed, performed and fulfilled its obligations under this

                                       47
<PAGE>

Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to his or her knowledge no event
has occurred and is continuing by reason of which payments on account of the
principal of or interest, if any, on the Notes is prohibited or if such event
has occurred, a description of the event and what action the Company is taking
or proposes to take with respect thereto.

                  (b)      So long as not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
year-end financial statements delivered pursuant to Section 4.03(a) above shall
be accompanied by a written statement of the Company's independent public
accountants (who shall be a firm of established national reputation) that in
making the examination necessary for certification of such financial statements,
nothing has come to their attention that would lead them to believe that the
Company has violated Article 4 or Article 5 hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.

                  (c)      The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith, but in no event later than five
Business Days, upon any Officer becoming aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action the Company is taking or proposes to take with respect thereto.

                  Section 4.05.     Taxes. The Company shall pay, and shall
cause each of its Subsidiaries to pay, prior to delinquency, all material taxes,
assessments, and governmental levies except such as are contested in good faith
and by appropriate proceedings or where the failure to effect such payment is
not adverse in any material respect to the Holders of the Notes.

                  Section 4.06.     Stay, Extension and Usury Laws. Each of the
Company and the Guarantors covenants (to the extent that it is permitted by
applicable law) that it shall not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law wherever enacted, now or at any time hereafter in force, that may
affect the obligations of the Company and each of the Guarantors and the
performance of this Indenture by the Company and each of the Guarantors; and
each of the Company and the Guarantors (to the extent that it is permitted by
applicable law) hereby expressly waives all benefit or advantage of any such
law, and covenants that it shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.

                  Section 4.07.     Restricted Payments. (a) The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly:

                  (i)      declare or pay any dividend or make any other payment
         or distribution on account of the Company's or any of its Restricted
         Subsidiaries' Equity Interests (including, without limitation, any
         payment in connection with any merger or consolidation involving the
         Company or any of its Restricted Subsidiaries) or to the

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<PAGE>

         direct or indirect holders of the Company's or any of its Restricted
         Subsidiaries' Equity Interests in their capacity as such (other than
         dividends, payments or distributions payable in Equity Interests (other
         than Disqualified Stock) of the Company or to the Company or a
         Restricted Subsidiary of the Company);

                  (ii)     purchase, redeem or otherwise acquire or retire for
         value (including, without limitation, in connection with any merger or
         consolidation involving the Company) any Equity Interests of the
         Company or any Restricted Subsidiary of the Company held by Persons
         other than the Company or any of its Restricted Subsidiaries, other
         than the purchase, redemption or acquisition or retirement for value of
         all of the Equity Interests in VARTA not held by the Company or any of
         its Restricted Subsidiaries pursuant to, and in accordance with the
         terms of, the VARTA Joint Venture Agreement as in effect on the Issue
         Date to the extent the cash purchase price does not exceed (euro)l.0
         million;

                  (iii)    make any payment on or with respect to, or purchase,
         redeem, defease or otherwise acquire or retire for value any
         Indebtedness that is subordinated to the Notes or the Note Guarantees,
         except a payment of interest or principal on or after the Stated
         Maturity thereof; or

                  (iv)     make any Restricted Investment (all such payments and
         other actions set forth in clauses (i) through (iv) above being
         collectively referred to as "Restricted Payments"),

unless, at the time of and after giving effect to such Restricted Payment:

                  (A)      no Default or Event of Default shall have occurred
         and be continuing or would occur as a consequence thereof; and

                  (B)      the Company would, at the time of such Restricted
         Payment and after giving pro forma effect thereto as if such Restricted
         Payment had been made at the beginning of the applicable four-quarter
         period, have been permitted to incur at least $1.00 of additional
         Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth
         in Section 4.09; and

                  (C)      such Restricted Payment, together with the aggregate
         amount of all other Restricted Payments made by the Company and its
         Restricted Subsidiaries after the Issue Date (excluding Restricted
         Payments permitted by clauses (ii), (iii) (iv) (to the extent such
         dividends are paid to the Company or any of its Restricted
         Subsidiaries) and (v) of Section 4.07(b)), is less than the sum,
         without duplication, of:

                           (1)      50% of the Consolidated Net Income of the
                  Company for the period (taken as one accounting period) from
                  the beginning of the first fiscal quarter commencing after the
                  Issue Date to the end of the Company's most recently ended
                  fiscal quarter for which internal financial statements are
                  available at the time of such Restricted Payment (or, if such
                  Consolidated Net Income for such period is a deficit, less
                  100% of such deficit); plus

                                       49
<PAGE>

                           (2)      100% of the aggregate net cash proceeds
                  received by the Company since the Issue Date as a contribution
                  to its common equity capital or from the issue or sale of
                  Equity Interests of the Company (other than Disqualified
                  Stock) or from the issue or sale of convertible or
                  exchangeable Disqualified Stock or convertible or exchangeable
                  debt securities of the Company that have been converted into
                  or exchanged for such Equity Interests (other than Equity
                  Interests (or Disqualified Stock or debt securities) sold to a
                  Subsidiary of the Company); plus

                           (3)      with respect to Restricted Investments made
                  by the Company and its Restricted Subsidiaries after the Issue
                  Date, an amount equal to the net reduction in Investments
                  (other than reductions in Permitted Investments) in any Person
                  resulting from repayments of loans or advances, or other
                  transfers of assets, in each case to the Company or any
                  Restricted Subsidiary or from the net cash proceeds from the
                  sale of any such Investment (except, in each case, to the
                  extent any such payment or proceeds are included in the
                  calculation of Consolidated Net Income, from the release of
                  any Guarantee (except to the extent any amounts are paid under
                  such Guarantee) or from redesignations of Unrestricted
                  Subsidiaries as Restricted Subsidiaries, not to exceed, in
                  each case, the amount of Investments previously made by the
                  Company or any Restricted Subsidiary in such Person or
                  Unrestricted Subsidiary; plus

                           (4)      $20.0 million.

                  (b)      So long as no Default has occurred and is continuing
or would be caused thereby, the preceding clauses of this Section 4.07 shall not
prohibit:

                  (i)      the payment of any dividend within 60 days after the
         date of declaration thereof, if at said date of declaration such
         payment would have complied with this Indenture;

                  (ii)     the redemption, repurchase, retirement, defeasance or
         other acquisition of any subordinated Indebtedness of the Company or
         any Guarantor or of any Equity Interests of the Company or any
         Guarantor in exchange for, or out of the net cash proceeds of a
         contribution to the common equity of the Company or a substantially
         concurrent sale (other than to a Subsidiary of the Company) of, Equity
         Interests of the Company (other than Disqualified Stock); provided that
         the amount of any such net cash proceeds that are utilized for any such
         redemption, repurchase, retirement, defeasance or other acquisition
         shall be excluded from clause (C)(2) of Section 4.07(a);

                  (iii)    the defeasance, redemption, repurchase or other
         acquisition of subordinated Indebtedness of the Company or any
         Guarantor with the net cash proceeds from an incurrence of Permitted
         Refinancing Indebtedness;

                  (iv)     the payment of any dividend by a Restricted
         Subsidiary of the Company to the holders of its common Equity Interests
         on a pro rata basis;

                                       50
<PAGE>

                  (v)      Investments acquired as a capital contribution to, or
         in exchange for, or out of the net cash proceeds of a substantially
         concurrent offering of, Equity Interests (other than Disqualified
         Stock) of the Company; provided that the amount of any such net cash
         proceeds that are utilized for any such acquisition or exchange shall
         be excluded from clause (C)(2) of Section 4.07(a);

                  (vi)     the repurchase of Capital Stock deemed to occur upon
         the exercise of options or warrants if such Capital Stock represents
         all or a portion of the exercise price thereof;

                  (vii)    the repurchase, redemption or other acquisition or
         retirement for value of any Equity Interests of the Company held by any
         employee, former employee, director or former director of the Company
         (or any of its Restricted Subsidiaries) upon the death, disability or
         termination of employment of any of the foregoing pursuant to the terms
         of any employee equity subscription agreement, stock option agreement
         or similar agreement; provided that the aggregate price paid for all
         such repurchased, redeemed, acquired or retired Equity Interests in any
         fiscal year shall not exceed the sum of (x) $3.0 million and (y) the
         amount of Restricted Payments permitted but not made pursuant to this
         clause (vii) in the immediately preceding fiscal year; or

                  (viii)   the repurchase, redemption or other acquisition or
         retirement for value of any Equity Interests of any Restricted
         Subsidiary of the Company from the minority stockholders (or other
         holders of minority interest, however designated) of such Restricted
         Subsidiary for fair market value; provided that the aggregate price
         paid for all such repurchased, redeemed, acquired or retired Equity
         Interests shall not exceed $15.0 million.

                  The amount of all Restricted Payments (other than cash) shall
be the fair market value on the date of the Restricted Payment of the asset(s)
or securities proposed to be transferred or issued to or by the Company or such
Subsidiary, as the case may be, pursuant to the Restricted Payment. The fair
market value of any assets or securities that are required to be valued pursuant
to this Section 4.07 shall be determined by the Board of Directors of the
Company whose resolution with respect thereto shall be delivered to the Trustee.
Not later than the date of making any Restricted Payment, the Company shall
deliver to the Trustee an Officers' Certificate stating that such Restricted
Payment is permitted and setting forth the basis upon which the calculations
required by this Section 4.07 were computed, together with a copy of any
fairness opinion or appraisal required by this Indenture.

                  Section 4.08.     Dividend and Other Payment Restrictions
Affecting Restricted Subsidiaries. The Company shall not, and shall not permit
any of its Restricted Subsidiaries to, directly or indirectly, create or permit
to exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary to:

                  (a)      pay dividends or make any other distributions on its
         Capital Stock (or with respect to any other interest or participation
         in, or measured by, its profits) to the Company or any of its
         Restricted Subsidiaries or pay any liabilities owed to the Company or
         any of its Restricted Subsidiaries;

                                       51
<PAGE>

                  (b)      make loans or advances to the Company or any of its
         Restricted Subsidiaries; or

                  (c)      transfer any of its properties or assets to the
         Company or any of its Restricted Subsidiaries.

                  However, the preceding restrictions shall not apply to
encumbrances or restrictions existing under, by reason of, or with respect to:

                  (i)      the Credit Agreement, Existing Indebtedness or any
         other agreements in effect on the Issue Date and any amendments,
         modifications, restatements, renewals, extensions, supplements,
         refundings, replacements or refinancings thereof, provided that the
         encumbrances and restrictions in any such amendments, modifications,
         restatements, renewals, extensions, supplements, refundings,
         replacement or refinancings are no more restrictive, taken as a whole,
         than those in effect on the Issue Date;

                  (ii)     applicable law, rule, regulation or order;

                  (iii)    any Person or the property or assets of a Person
         acquired by the Company or any of its Restricted Subsidiaries existing
         at the time of such acquisition and not incurred in connection with or
         in contemplation of such acquisition, which encumbrance or restriction
         is not applicable to any Person or the properties or assets of any
         Person, other than the Person, or the property or assets of such
         Person, so acquired and any amendments, modifications, restatements,
         renewals, extensions, supplements, refundings, replacements or
         refinancings thereof, provided that the encumbrances and restrictions
         in any such amendments, modifications, restatements, renewals,
         extensions, supplements, refundings, replacement or refinancings are no
         more restrictive, taken as a whole, than those contained in the Credit
         Agreement, Existing Indebtedness or such other agreements as in effect
         on the date of the acquisition;

                  (iv)     in the case of clause (c) of the first paragraph of
         this Section 4.08:

                           (A)      provisions that restrict in a customary
                  manner the subletting, assignment or transfer of any property
                  or asset that is a lease, license, conveyance or contract or
                  similar property or asset,

                           (B)      restrictions existing by virtue of any
                  transfer of, agreement to transfer, option or right with
                  respect to, or Lien on, any property or assets of the Company
                  or any Restricted Subsidiary not otherwise prohibited by this
                  Indenture, or

                           (C)      restrictions arising or agreed to in the
                  ordinary course of business, not relating to any Indebtedness,
                  and that do not, individually or in the aggregate, detract
                  from the value of property or assets of the Company or any
                  Restricted Subsidiary in any manner material to the Company or
                  any Restricted Subsidiary;

                                       52
<PAGE>

                  (v)      provisions with respect to the disposition or
         distribution of assets or property in joint venture agreements and
         other similar agreements entered into in the ordinary course of
         business;

                  (vi)     any agreement for the sale or other disposition of
         all or substantially all of the capital stock of, or property and
         assets of, a Restricted Subsidiary that restricted distributions by
         that Restricted Subsidiary pending such sale or other disposition; and

                  (vii)    Indebtedness of a Foreign Subsidiary permitted to be
         incurred under this Indenture; provided that (A) such encumbrances or
         restrictions are ordinary and customary with respect to the type of
         Indebtedness being incurred; and (B) such encumbrances or restrictions
         will not affect the Company's ability to make principal and interest
         payments on the Notes, as determined in good faith by the Board of
         Directors of the Company.

                  Section 4.09.     Incurrence of Indebtedness and Issuance of
Preferred Stock. (a) The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, incur any Indebtedness
(including Acquired Debt), and the Company shall not permit any of its
Restricted Subsidiaries to issue any preferred stock; provided, however, that
the Company or any Guarantor may incur Indebtedness, if the Fixed Charge
Coverage Ratio for the Company's most recently ended four full fiscal quarters
for which internal financial statements are available immediately preceding the
date on which such additional Indebtedness is incurred would have been at least
2.0 to 1, determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been incurred
at the beginning of such four-quarter period.

                  (b)      So long as no Default shall have occurred and be
continuing or would be caused thereby, Section 4.09(a) shall not prohibit the
incurrence of any of the following items of Indebtedness (collectively,
"Permitted Debt"):

                  (i)      the incurrence by (A) the Company or any Foreign
         Subsidiary of the Company of Indebtedness under Credit Facilities (and
         the incurrence by the Guarantors of Guarantees thereof) in an aggregate
         principal amount at any one time outstanding pursuant to this clause
         (i) (with letters of credit being deemed to have a principal amount
         equal to the maximum potential liability of the Company and its
         Restricted Subsidiaries thereunder) not to exceed $700.0 million, less
         the aggregate amount of all Net Proceeds of Asset Sales applied by the
         Company or any Restricted Subsidiary to permanently repay any such
         Indebtedness (and, in the case of any revolving credit Indebtedness, to
         effect a corresponding commitment reduction thereunder) pursuant to
         Section 4.10; provided that the aggregate principal amount of
         Indebtedness of all Foreign Subsidiaries of the Company incurred
         pursuant to this clause (i) shall not exceed(euro)60.0 million; and (B)
         Foreign Subsidiaries of Guarantees of other Foreign Subsidiaries'
         Indebtedness under Credit Facilities;

                  (ii)     the incurrence of Existing Indebtedness;

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<PAGE>

                  (iii)    the incurrence by the Company and the Guarantors of
         Indebtedness represented by the Notes and the related Note Guarantees
         to be issued on the Issue Date and the Exchange Notes and the related
         Note Guarantees to be issued pursuant to the Registration Rights
         Agreement;

                  (iv)     the incurrence by the Company or any Guarantor of
         Indebtedness represented by Capital Lease Obligations, mortgage
         financings or purchase money obligations, in each case, incurred for
         the purpose of financing all or any part of the purchase price or cost
         of construction or improvement of property, plant or equipment used in
         the business of the Company or such Guarantor, in an aggregate
         principal amount, including all Permitted Refinancing Indebtedness
         incurred to refund, refinance or replace any Indebtedness incurred
         pursuant to this clause (iv), not to exceed $30.0 million at any time
         outstanding;

                  (v)      the incurrence by the Company or any Restricted
         Subsidiary of the Company of Permitted Refinancing Indebtedness in
         exchange for, or the net proceeds of which are used to refund,
         refinance or replace Indebtedness (other than intercompany
         Indebtedness) that was permitted by this Indenture to be incurred under
         Section 4.09(a) or clauses (ii) (other than Indebtedness incurred in
         connection with the acquisition of Remington), (iii), (iv), (v), or
         (viii) of this Section 4.09(b);

                  (vi)     the incurrence by the Company or any of its
         Restricted Subsidiaries of intercompany Indebtedness owing to and held
         by the Company or any of its Restricted Subsidiaries; provided,
         however, that:

                           (x)      if the Company or any Guarantor is the
                  obligor on such Indebtedness, such Indebtedness must be
                  unsecured and expressly subordinated to the prior payment in
                  full in cash of all Obligations with respect to the Notes, in
                  the case of the Company, or the Note Guarantee, in the case of
                  a Guarantor;

                           (y)      Indebtedness owed to the Company or any
                  Guarantor must be evidenced by an unsubordinated promissory
                  note, unless the obligor under such Indebtedness is the
                  Company or a Guarantor; and

                           (z)      (A) any subsequent issuance or transfer of
                  Equity Interests that results in any such Indebtedness being
                  held by a Person other than the Company or a Restricted
                  Subsidiary thereof and (B) any sale or other transfer of any
                  such Indebtedness to a Person that is not either the Company
                  or a Restricted Subsidiary thereof, shall be deemed, in each
                  case, to constitute an incurrence of such Indebtedness by the
                  Company or such Restricted Subsidiary, as the case may be,
                  that was not permitted by this clause (vi);

                  (vii)    the Guarantee by the Company or any of the Guarantors
         of Indebtedness of the Company or a Restricted Subsidiary of the
         Company that was permitted to be incurred by another provision of this
         Section 4.09;

                  (viii)   the incurrence by the Company or any Guarantor of
         additional Indebtedness in an aggregate principal amount (or accreted
         value, as applicable) at any

                                       54
<PAGE>

         time outstanding, including all Permitted Refinancing Indebtedness
         incurred to refund, refinance or replace any Indebtedness incurred
         pursuant to this clause (8), not to exceed $30.0 million;

                  (ix)     the incurrence of Indebtedness by the Company or any
         Restricted Subsidiary of the Company arising from the honoring by a
         bank or other financial institution of a check, draft or similar
         instrument inadvertently (except in the case of daylight overdrafts)
         drawn against insufficient funds in the ordinary course of business;
         provided that such Indebtedness is extinguished within five business
         days of incurrence; and

                  (x)      the incurrence of Indebtedness by a Foreign
         Subsidiary in an aggregate principal amount for all Foreign
         Subsidiaries at any one time outstanding pursuant to this clause (x)
         not to exceed 10% of Consolidated Net Tangible Assets of the Company;
         provided that after giving effect to the incurrence of any such
         Indebtedness, the Company would be permitted to incur at least $1.00 of
         additional Indebtedness pursuant to the Fixed Charge Coverage Ratio
         test set forth in Section 4.09(a).

                  (c)      For purposes of determining compliance with this
Section 4.09, in the event that any proposed Indebtedness meets the criteria of
more than one of the categories of Permitted Debt described in clauses (i)
through (x) of Section 4.09(b) above, or is entitled to be incurred pursuant to
Section 4.09(a), the Company shall be permitted to classify at the time of its
incurrence such item of Indebtedness in any manner that complies with this
Section 4.09. Indebtedness under Credit Facilities outstanding on the date on
which Notes are first issued under this Indenture shall be deemed to have been
incurred on such date in reliance on the exception provided by clause (i) of
Section 4.09(b). In addition, any Indebtedness originally classified as incurred
pursuant to clauses (i) through (x) of Section 4.09(b) may later be reclassified
by the Company such that it shall be deemed as having been incurred pursuant to
another of such clauses to the extent that such reclassified Indebtedness could
be incurred pursuant to such new clause at the time of such reclassification.

                  (d)      Notwithstanding any other provision of this Section
4.09, the maximum amount of Indebtedness that may be incurred pursuant to this
Section 4.09 shall not be deemed to be exceeded, with respect to any outstanding
Indebtedness due solely to the result of fluctuations in the exchange rates of
currencies.

                  Section 4.10.     Asset Sales. (a) The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, consummate an Asset Sale
unless:

                  (i)      the Company (or the Restricted Subsidiary, as the
         case may be) receives consideration at the time of such Asset Sale at
         least equal to the fair market value of the assets or Equity Interests
         issued or sold or otherwise disposed of;

                  (ii)     such fair market value is determined by the Company's
         Board of Directors and evidenced by a resolution of the Board of
         Directors set forth in an Officers' Certificate delivered to the
         Trustee; and

                                       55
<PAGE>

                  (iii)    at least 75% of the consideration therefor received
         by the Company or such Restricted Subsidiary is in the form of cash or
         Replacement Assets or a combination of both. For purposes of this
         clause, each of the following shall be deemed to be cash:

                           (A)      any liabilities (as shown on the Company's
                  or such Restricted Subsidiary's most recent balance sheet), of
                  the Company or any Restricted Subsidiary (other than
                  contingent liabilities, Indebtedness that is by its terms
                  subordinated to the Notes or any Note Guarantee and
                  liabilities to the extent owed to the Company or any Affiliate
                  of the Company) that are assumed by the transferee of any such
                  assets pursuant to a written novation agreement that releases
                  the Company or such Restricted Subsidiary from further
                  liability; and

                           (B)      any securities, notes or other obligations
                  received by the Company or any such Restricted Subsidiary from
                  such transferee that are converted by the Company or such
                  Restricted Subsidiary into cash (to the extent of the cash
                  received in that conversion) within 90 days of the applicable
                  Asset Sale.

                  (b)      Within 360 days after the receipt of any Net Proceeds
from an Asset Sale, the Company may apply such Net Proceeds at its option:

                  (i)      to repay Senior Debt and, if the Senior Debt repaid
         is revolving credit Indebtedness, to correspondingly reduce commitments
         with respect thereto; or

                  (ii)     to purchase Replacement Assets or make a capital
         expenditure in or that is used or useful in a Permitted Business.

Pending the final application of any such Net Proceeds, the Company may
temporarily reduce revolving credit borrowings or otherwise invest such Net
Proceeds in any manner that is not prohibited by this Indenture.

                  (c)      Any Net Proceeds from Asset Sales that are not
applied or invested as provided in the preceding paragraph shall constitute
"Excess Proceeds." Within 10 days after the aggregate amount of Excess Proceeds
exceeds $10.0 million, the Company shall make an offer (an "Asset Sale Offer")
to all Holders of Notes and all holders of other Indebtedness that is pari passu
with the Notes or any Note Guarantee containing provisions similar to those set
forth in this Indenture with respect to offers to purchase with the proceeds of
sales of assets, to purchase the maximum principal amount of Notes and such
other pari passu Indebtedness that may be purchased out of the Excess Proceeds.
The offer price in any Asset Sale Offer shall be equal to 100% of the principal
amount of the Notes and such other pari passu Indebtedness plus accrued and
unpaid interest and Liquidated Damages, if any, to the date of purchase, and
shall be payable in cash. If any Excess Proceeds remain after consummation of an
Asset Sale Offer, the Company may use such Excess Proceeds for any purpose not
otherwise prohibited by this Indenture. If the aggregate principal amount of
Notes and such other pari passu Indebtedness tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Notes and such other pari passu
Indebtedness shall be purchased on a pro rata basis based on the principal
amount of Notes and such other pari passu Indebtedness tendered. Upon completion
of each Asset Sale Offer, the amount of Excess Proceeds shall be reset at zero.

                                       56
<PAGE>

                  (d)      Any Asset Sale Offer shall be made in accordance with
Section 3.09. The Company shall comply with the requirements of Rule 14e-1 under
the Exchange Act and any other securities laws and regulations thereunder to the
extent such laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with this Section 4.10
or Section 3.04, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.10 or Section 3.04 by virtue of such compliance.

                  Section 4.11.     Transactions with Affiliates. (a) The
Company shall not, and shall not permit any of its Restricted Subsidiaries to,
make any payment to, or sell, lease, transfer or otherwise dispose of any of its
properties or assets to, or purchase any property or assets from, or enter into,
make, amend, renew or extend any transaction, contract, agreement,
understanding, loan, advance or Guarantee with, or for the benefit of, any
Affiliate (each, an "Affiliate Transaction"), unless:

                  (i)      such Affiliate Transaction is on terms that are no
         less favorable to the Company or the relevant Restricted Subsidiary
         than those that would have been obtained in a comparable arm's-length
         transaction by the Company or such Restricted Subsidiary with a Person
         that is not an Affiliate of the Company; and

                  (ii)     the Company delivers to the Trustee:

                           (A)      with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $5.0 million, a resolution of the
                  Board of Directors of the Company set forth in an Officers'
                  Certificate certifying that such Affiliate Transaction or
                  series of related Affiliate Transactions complies with this
                  Section 4.11 and that such Affiliate Transaction or series of
                  related Affiliate Transactions has been approved by a majority
                  of the disinterested members of the Board of Directors of the
                  Company; and

                           (B)      with respect to any Affiliate Transaction or
                  series of related Affiliate Transactions involving aggregate
                  consideration in excess of $15.0 million, an opinion as to the
                  fairness to the Company or such Restricted Subsidiary of such
                  Affiliate Transaction or series of related Affiliate
                  Transactions from a financial point of view issued by an
                  independent accounting, appraisal or investment banking firm
                  of national standing.

                  (b)      The following items shall not be deemed to be
Affiliate Transactions and, therefore, shall not be subject to Section 4.11(a):

                  (i)      transactions between or among the Company and/or its
         Restricted Subsidiaries;

                  (ii)     payment of reasonable and customary fees and
         compensation to, and reasonable and customary indemnification
         arrangements and similar payments on behalf of, directors of the
         Company;

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<PAGE>

                  (iii)    Restricted Payments that are permitted by this
         Indenture;

                  (iv)     any sale of Capital Stock (other than Disqualified
         Stock) of the Company;

                  (v)      loans and advances to officers and employees of the
         Company or any of its Restricted Subsidiaries for bona fide business
         purposes in the ordinary course of business consistent with past
         practice;

                  (vi)     any employment, consulting, service or termination
         agreement, or reasonable and customary indemnification arrangements,
         entered into by the Company or any of its Restricted Subsidiaries with
         officers and employees of the Company or any of its Restricted
         Subsidiaries and the payment of compensation to officers and employees
         of the Company or any of its Restricted Subsidiaries (including amounts
         paid pursuant to employee benefit plans, employee stock option or
         similar plans), in each case in the ordinary course of business and
         consistent with past practice; and

                  (vii)    any agreements or arrangements in effect on the Issue
         Date, or any amendment, modification, or supplement thereto or any
         replacement thereof, as long as such agreement or arrangement, as so
         amended, modified, supplemented or replaced, taken as a whole, is not
         more disadvantageous to the Company and its Restricted Subsidiaries
         than the original agreement as in effect on the Issue Date, as
         determined in good faith by the Company's Board of Directors, and any
         transactions contemplated by any of the foregoing agreements or
         arrangements.

                  Section 4.12.     Liens. The Company shall not, and shall not
permit any of its Restricted Subsidiaries to, create, incur, assume or otherwise
cause or suffer to exist or become effective any Lien of any kind securing
Indebtedness (other than Permitted Liens) upon any of their property or assets,
now owned or hereafter acquired, unless all payments due under this Indenture
and the Notes are secured on an equal and ratable basis with the obligations so
secured until such time as such obligations are no longer secured by a Lien.

                  Section 4.13.     Corporate Existence. Subject to Article 5
hereof, the Company shall do or cause to be done all things reasonably necessary
to preserve and keep in full force and effect (a) its corporate existence, and
the corporate, partnership or other existence of each of its subsidiaries, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such subsidiary and (b) the
material rights (charter and statutory), licenses and franchises of the Company
and its subsidiaries; provided, however, that the Company shall not be required
to preserve any such right, license or franchise, or the corporate, partnership
or other existence of any of its subsidiaries, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and its subsidiaries, taken as a whole, and that the
loss thereof is not adverse in any material respect to the Holders of the Notes.

                  Section 4.14.     Offer to Repurchase upon Change of Control.
(a) If a Change of Control occurs, each Holder of Notes shall have the right to
require the Company to repurchase all or any part (equal to $1,000 or an
integral multiple thereof) of such Holder's Notes pursuant to the offer
described below (the "Change of Control Offer") at an offer price in cash equal
to

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101% of the aggregate principal amount thereof plus accrued and unpaid interest
and Liquidated Damages thereon, if any, to the date of purchase (the "Change of
Control Payment").

                  (b)      Within 30 days following any Change of Control, the
Company shall mail a notice to each Holder describing the transaction or
transactions that constitute the Change of Control and which shall be no earlier
than 30 days and no later than 60 days from the date such notice is mailed (the
"Change of Control Payment Date") and stating that the Change of Control Offer
is being made pursuant to this Section 4.14 and that all Notes properly tendered
pursuant to the Change of Control Offer will be accepted for payment.

                  (c)      Any Change of Control offer shall be made in
accordance with Section 3.09. The Company shall comply with the requirements of
Rule 14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of the Notes as a result of a Change of Control. To the
extent that the provisions of any securities laws or regulations conflict with
this Section 4.14, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.14 by virtue of such compliance.

                  (d)      Prior to complying with this Section 4.14, but in any
event within 30 days following a Change of Control, the Company shall either
repay all outstanding Senior Debt or obtain the requisite consents, if any,
under all agreements governing outstanding Senior Debt to permit the repurchase
of Notes required by this Section 4.14.

                  (e)      Clause (b) of this Section 4.14 shall be applicable
regardless of whether any other Sections of this Indenture are applicable.
Except as described above with respect to a Change of Control, this Indenture
does not contain provisions that permit the Holders of the Notes to require that
the Company repurchase or redeem the Notes in the event of a takeover,
recapitalization or similar transaction.

                  (f)      The Company shall not be required to make a Change of
Control Offer upon a Change of Control if a third party makes the Change of
Control Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control Offer
made by the Company and purchases all Notes validly tendered and not withdrawn
under such Change of Control Offer.

                  Section 4.15.     Limitation on Senior Subordinated Debt. The
Company shall not incur any Indebtedness that is subordinate or junior in right
of payment to any Senior Debt of the Company unless it is pari passu or
subordinate in right of payment to the Notes to the same extent. No Guarantor
shall incur any Indebtedness that is subordinate or junior in right of payment
to the Senior Debt of such Guarantor unless it is pari passu or subordinate in
right of payment to such Guarantor's Note Guarantee to the same extent.

                  Section 4.16.     Designation of Restricted and Unrestricted
Subsidiaries. (a) The Board of Directors of the Company may designate any
Restricted Subsidiary of the Company to be an Unrestricted Subsidiary; provided
that:

                  (i)      any Guarantee by the Company or any Restricted
         Subsidiary of any Indebtedness of the Subsidiary being so designated
         shall be deemed to be an incurrence

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         of Indebtedness by the Company or such Restricted Subsidiary (or both,
         if applicable) at the time of such designation, and such incurrence of
         Indebtedness would be permitted under Section 4.09;

                  (ii)     the aggregate fair market value of all outstanding
         Investments owned by the Company and its Restricted Subsidiaries in the
         Subsidiary being so designated (including any Guarantee by the Company
         or any Restricted Subsidiary of any Indebtedness of such Subsidiary)
         shall be deemed to be a Restricted Investment made as of the time of
         such designation and that such Investment would be permitted under
         Section 4.07;

                  (iii)    such Subsidiary does not own any Equity Interests of,
         or hold any Liens on any Property of, the Company or any Restricted
         Subsidiary;

                  (iv)     the Subsidiary being so designated:

                           (A)      is not party to any agreement, contract,
                  arrangement or understanding with the Company or any
                  Restricted Subsidiary of the Company unless the terms of any
                  such agreement, contract, arrangement or understanding are no
                  less favorable to the Company or such Restricted Subsidiary
                  than those that might be obtained at the time from Persons who
                  are not Affiliates of the Company;

                           (B)      is a Person with respect to which neither
                  the Company nor any of its Restricted Subsidiaries has any
                  direct or indirect obligation (x) to subscribe for additional
                  Equity Interests or (y) to maintain or preserve such Person's
                  financial condition or to cause such Person to achieve any
                  specified levels of operating results;

                           (C)      has not Guaranteed or otherwise directly or
                  indirectly provided credit support for any Indebtedness of the
                  Company or any of its Restricted Subsidiaries, except to the
                  extent such Guarantee or credit support would be released upon
                  such designation; and

                           (D)      has at least one director on its Board of
                  Directors that is not a director or officer of the Company or
                  any of its Restricted Subsidiaries and has at least one
                  executive officer that is not a director or officer of the
                  Company or any of its Restricted Subsidiaries; and

                  (v)      no Default or Event of Default would be in existence
         following such designation.

                  (b)      Any designation of a Restricted Subsidiary of the
Company as an Unrestricted Subsidiary shall be evidenced to the Trustee by
filing with the Trustee a certified copy of the Board Resolution giving effect
to such designation and an Officers' Certificate certifying that such
designation complied with the preceding conditions and was permitted by this
Indenture. If, at any time, any Unrestricted Subsidiary would fail to meet any
of the preceding requirements described in clause (iv) above, it shall
thereafter cease to be an

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<PAGE>

Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness,
Investments, or Liens on the property, of such Subsidiary shall be deemed to be
incurred by a Restricted Subsidiary of the Company as of such date and, if such
Indebtedness, Investments or Liens are not permitted to be incurred as of such
date under this Indenture, the Company shall be in default under this Indenture.

                  (c)      The Board of Directors of the Company may at any time
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided
that:

                  (i)      such designation shall be deemed to be an incurrence
         of Indebtedness by a Restricted Subsidiary of the Company of any
         outstanding Indebtedness of such Unrestricted Subsidiary and such
         designation shall only be permitted if such Indebtedness is permitted
         under Section 4.09, calculated on a pro forma basis as if such
         designation had occurred at the beginning of the four-quarter reference
         period;

                  (ii)     all outstanding Investments owned by such
         Unrestricted Subsidiary shall be deemed to be made as of the time of
         such designation and such Investments shall only be permitted if such
         Investments would be permitted under Section 4.07;

                  (iii)    all Liens upon property or assets of such
         Unrestricted Subsidiary existing at the time of such designation would
         be permitted under Section 4.12; and

                  (iv)     no Default or Event of Default would be in existence
         following such designation.

                  Section 4.17.     Payments for Consent. The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, directly or
indirectly, pay or cause to be paid any consideration to or for the benefit of
any Holder of Notes for or as an inducement to any consent, waiver or amendment
of any of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders of the Notes that
consent, waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or agreement.

                  Section 4.18.     Business Activities. The Company shall not,
and shall not permit any of its Restricted Subsidiaries to, engage in any
business other than Permitted Businesses, except to such extent as would not be
material to the Company and its Restricted Subsidiaries taken as a whole.

                  Section 4.19.     Limitation on Issuances and Sales of Equity
Interests in Restricted Subsidiaries. The Company shall not transfer, convey,
sell, lease or otherwise dispose of, and shall not permit any of its Restricted
Subsidiaries to, issue, transfer, convey, sell, lease or otherwise dispose of
any Equity Interests in any Restricted Subsidiary of the Company to any Person
(other than the Company or a Restricted Subsidiary of the Company or, if
necessary, shares of its Capital Stock constituting directors' qualifying shares
or issuances of shares of Capital Stock of foreign Restricted Subsidiaries to
foreign nationals, to the extent required by applicable law), except:

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<PAGE>

                  (1)      if, immediately after giving effect to such issuance,
         transfer, conveyance, sale, lease or other disposition, such Restricted
         Subsidiary would no longer constitute a Restricted Subsidiary and any
         Investment in such Person remaining after giving effect to such
         issuance or sale would have been permitted to be made under Section
         4.07 if made on the date of such issuance or sale and the cash Net
         Proceeds from such transfer, conveyance, sale, lease or other
         disposition are applied in accordance with Section 4.10; or

                  (2)      other sales of Capital Stock of a Restricted
         Subsidiary by the Company or a Restricted Subsidiary, provided that the
         Company or such Restricted Subsidiary complies with Section 4.10.

                  Section 4.20.     Additional Note Guarantees. (a) If the
Company or any of its Restricted Subsidiaries acquires or creates another
Domestic Subsidiary on or after the Issue Date, then that newly acquired or
created Domestic Subsidiary must become a Guarantor and execute a supplemental
indenture and deliver an Opinion of Counsel to the Trustee.

                  (b)      The Company shall not permit any of its Restricted
Subsidiaries, directly or indirectly, to Guarantee or pledge any assets to
secure the payment of any other Indebtedness of the Company or any Restricted
Subsidiary thereof, other than Foreign Subsidiaries, unless such Restricted
Subsidiary is a Guarantor or simultaneously executes and delivers a supplemental
indenture providing for the Guarantee of the payment of the Notes by such
Restricted Subsidiary, which Guarantee shall be senior to or pari passu with
such Subsidiary's Guarantee of such other Indebtedness unless such other
Indebtedness is Senior Debt, in which case the Guarantee of the Notes may be
subordinated to the Guarantee of such Senior Debt to the same extent as the
Notes are subordinated to such Senior Debt. The form of the Note Guarantee is
attached as Exhibit D hereto.

                  (c)      A Guarantor may not sell or otherwise dispose of all
or substantially all of its assets to, or consolidate with or merge with or into
(whether or not such Guarantor is the surviving Person), another Person, other
than the Company or another Guarantor, unless:

                  (i)      immediately after giving effect to that transaction,
         no Default or Event of Default exists; and

                  (ii)     either:

                           (A)      the Person acquiring the property in any
                  such sale or disposition or the Person formed by or surviving
                  any such consolidation or merger (if other than the Guarantor)
                  is a corporation organized or existing under the laws of the
                  United States, any state thereof or the District of Columbia
                  and assumes all the obligations of that Guarantor under this
                  Indenture, its Note Guarantee and the Registration Rights
                  Agreement pursuant to a supplemental indenture satisfactory to
                  the Trustee; or

                           (B)      such sale or other disposition or
                  consolidation or merger complies with Section 4.10.

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<PAGE>

                  (d)      The Note Guarantee of a Guarantor will be released:

                  (i)      in connection with any sale or other disposition of
         all of the Capital Stock of a Guarantor to a Person that is not (either
         before or after giving effect to such transaction) an Affiliate of the
         Company, if the sale of all such Capital Stock of that Guarantor
         complies with Section 4.10;

                  (ii)     if the Company properly designates any Restricted
         Subsidiary that is a Guarantor as an Unrestricted Subsidiary under this
         Indenture; or

                  (iii)    solely in the case of a Note Guarantee created
         pursuant to Section 4.20(a), upon the release or discharge of the
         Guarantee which resulted in the creation of such Note Guarantee
         pursuant to this Section 4.20, except a discharge or release by or as a
         result of payment under such Guarantee.

                                   ARTICLE 5

                                   SUCCESSORS

                  Section 5.01.     Merger, Consolidation or Sale of Assets. (a)
The Company shall not, directly or indirectly consolidate or merge with or into
another Person (whether or not the Company is the surviving corporation) or
sell, assign, transfer, convey or otherwise dispose of all or substantially all
of the properties and assets of the Company and its Restricted Subsidiaries,
taken as a whole, in one or more related transactions, to another Person or
Persons, unless:

                  (i)      either: (A) the Company is the surviving corporation;
         or (B) the Person formed by or surviving any such consolidation or
         merger (if other than the Company) or to which such sale, assignment,
         transfer, conveyance or other disposition shall have been made (x) is a
         corporation organized or existing under the laws of the United States,
         any state thereof or the District of Columbia and (y) assumes all the
         obligations of the Company under the Notes, this Indenture, and the
         Registration Rights Agreement pursuant to agreements reasonably
         satisfactory to the Trustee;

                  (ii)     immediately after giving effect to such transaction
         no Default or Event of Default exists;

                  (iii)    immediately after giving effect to such transaction
         on a pro forma basis, the Company or the Person formed by or surviving
         any such consolidation or merger (if other than the Company), or to
         which such sale, assignment, transfer, conveyance or other disposition
         shall have been made, shall, on the date of such transaction after
         giving pro forma effect thereto and any related financing transactions
         as if the same had occurred at the beginning of the applicable
         four-quarter period, be permitted to incur at least $1.00 of additional
         Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth
         in Section 4.09(a);

                  (iv)     each Guarantor, unless such Guarantor is the Person
         with which the Company has entered into a transaction under this
         Section 5.01, shall have by amendment

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<PAGE>

         to its Note Guarantee confirmed that its Note Guarantee shall apply to
         the obligations of the Company or the surviving Person in accordance
         with the Notes and this Indenture; and

                  (v)      the Company shall have delivered to the Trustee an
         Opinion of Counsel to the effect that the Holders will not recognize
         income, gain or loss for Federal income tax purposes as a result of
         such transaction and will be subject to Federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such transaction had not occurred.

                  (b)      Neither the Company nor any Restricted Subsidiary
may, directly or indirectly, lease all or substantially all of its properties or
assets, in one or more related transactions, to any other Person. Clause (iii)
above of this Section 5.01 shall not apply to any merger, consolidation or sale,
assignment, transfer, lease, conveyance or other disposition of assets between
or among the Company and any of its Restricted Subsidiaries.

                  Section 5.02.     Successor Corporation Substituted. Upon any
consolidation or merger, or any sale, assignment, transfer, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.01 hereof, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, conveyance or other disposition is made shall succeed to,
and be substituted for (so that from and after the date of such consolidation,
merger, sale, conveyance or other disposition, the provisions of this Indenture
referring to the "Company" shall refer instead to the successor corporation and
not to the Company), and may exercise every right and power of the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein; provided, however, that the predecessor Company shall not
be relieved from the obligation to pay the principal of and interest on the
Notes except in the case of a sale of all of the Company's assets that meets the
requirements of Section 5.01 hereof.

                                   ARTICLE 6

                             DEFAULTS AND REMEDIES

                  Section 6.01.     Events of Default. Each of the following is
an "Event of Default":

                  (i)      default for 30 days in the payment when due of
         interest on, or Liquidated Damages with respect to, the Notes whether
         or not prohibited by Article 10 of this Indenture;

                  (ii)     default in payment when due (whether at maturity,
         upon acceleration, redemption or otherwise) of the principal of, or
         premium, if any, on the Notes, whether or not prohibited by Article 10
         of this Indenture;

                  (iii)    failure by the Company or any of its Restricted
         Subsidiaries to comply with Section 4.10, Section 4.14, Section 4.20 or
         Section 5.01;

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<PAGE>

                  (iv)     failure by the Company or any of its Restricted
         Subsidiaries for 60 days after written notice by the Trustee or Holders
         representing 25% or more of the aggregate principal amount of Notes
         outstanding to comply with any of the other agreements in this
         Indenture;

                  (v)      default under any mortgage, indenture or instrument
         under which there may be issued or by which there may be secured or
         evidenced any Indebtedness for money borrowed by the Company or any of
         its Restricted Subsidiaries (or the payment of which is Guaranteed by
         the Company or any of its Restricted Subsidiaries) whether such
         Indebtedness or Guarantee now exists, or is created after the Issue
         Date, if that default:

                           (A)      is caused by a failure to make any payment
                  when due at the final maturity of such Indebtedness (a
                  "Payment Default"); or

                           (B)      results in the acceleration of such
                  Indebtedness prior to its express maturity,

                  and, in each case, the principal amount of any such
                  Indebtedness, together with the principal amount of any other
                  such Indebtedness under which there has been a Payment Default
                  or the maturity of which has been so accelerated, aggregates
                  $10.0 million or more;

                  (vi)     failure by the Company or any of its Restricted
         Subsidiaries to pay final judgments (to the extent such judgments are
         not paid or covered by insurance provided by a carrier that has
         acknowledged coverage in writing and has the ability to perform)
         aggregating in excess of $10.0 million, which judgments are not paid,
         discharged or stayed for a period of 60 days;

                  (vii)    except as permitted by this Indenture, any Note
         Guarantee shall be held in any judicial proceeding to be unenforceable
         or invalid or shall cease for any reason to be in full force and effect
         or any Guarantor, or any Person acting on behalf of any Guarantor,
         shall deny or disaffirm its obligations under its Note Guarantee; and

                  (viii)   the Company or any of its Restricted Subsidiaries
         that is a Significant Subsidiary (or any group of Restricted
         Subsidiaries that together would constitute a Significant Subsidiary of
         the Company), pursuant to or within the meaning of Bankruptcy Law:

                           (A)      commences a voluntary case,

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

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

                           (D)      generally is not paying its debts as they
                  become due; and

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<PAGE>

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

                           (A)      is for relief against the Company or any of
                  its Restricted Subsidiaries that is a Significant Subsidiary
                  (or any group of Restricted Subsidiaries that together would
                  constitute a Significant Subsidiary of the Company), in an
                  involuntary case;

                           (B)      appoints a custodian of the Company or any
                  of its Restricted Subsidiaries that is a Significant
                  Subsidiary (or any group of Restricted Subsidiaries that
                  together would constitute a Significant Subsidiary of the
                  Company) or for all or substantially all of the property of
                  the Company or any of its Restricted Subsidiaries that is a
                  Significant Subsidiary (or any group of Restricted
                  Subsidiaries that together would constitute a Significant
                  Subsidiary of the Company), or

                           (C)      orders the liquidation of the Company or any
                  of its Restricted Subsidiaries that is a Significant
                  Subsidiary (or any group of Restricted Subsidiaries that
                  together would constitute a Significant Subsidiary of the
                  Company);

                  and the order or decree remains undismissed or unstayed and in
                  effect for 60 consecutive days.

                  Section 6.02.     Acceleration. In the case of an Event of
Default specified in clause (viii) or (ix) of Section 6.01 with respect to the
Company, any Guarantor or any Significant Subsidiary (or any group of Restricted
Subsidiaries that together would constitute a Significant Subsidiary of the
Company), all outstanding Notes will become due and payable immediately without
further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the then outstanding Notes may declare all the Notes to be due and payable
immediately by notice in writing to the Company specifying the Event of Default.

                  In the event of a declaration of acceleration of the Notes
because an Event of Default has occurred and is continuing as a result of the
acceleration of any Indebtedness described in clause (v) of Section 6.01 hereof,
the declaration of acceleration of the Notes shall be automatically annulled if
the holders of any Indebtedness described in clause (v) of Section 6.01 hereof
have rescinded the declaration of acceleration in respect of the Indebtedness
if:

                  (i)      the annulment of the acceleration of Notes would not
         conflict with any judgment or decree of a court of competent
         jurisdiction; and

                  (ii)     all existing Events of Default, except nonpayment of
         principal or interest on the Notes that became due solely because of
         the acceleration of the Notes, have been cured or waived.

                  In the case of any Event of Default occurring by reason of any
willful action or inaction taken or not taken by or on behalf of the Company
with the intention of avoiding

                                       66
<PAGE>

payment of the premium that the Company would have had to pay if the Company
then had elected to redeem the Notes pursuant to Section 3.07 hereof, an
equivalent premium shall also become and be immediately due and payable to the
extent permitted by law upon the acceleration of the Notes. If an Event of
Default occurs prior to October 1, 2008, by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of the Company with the intention
of avoiding the prohibition on redemption of the Notes, prior to October 1,
2008, then the premium specified Section 3.07 shall also become immediately due
and payable to the extent permitted by law upon the acceleration of the Notes.

                  Section 6.03.     Other Remedies. If an Event of Default
occurs and is continuing, the Trustee may pursue any available remedy to collect
the payment of principal, premium, if any, and Liquidated Damages, if any, and
interest, if any, on the Notes or to enforce the performance of any provision of
the Notes or this Indenture.

                  The Trustee may maintain a proceeding even if it does not
possess any of the Notes or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Holder of a Note in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. All remedies
are cumulative to the extent permitted by law.

                  Section 6.04.     Waiver of Past Defaults. Holders of a
majority in aggregate principal amount of the then outstanding Notes by notice
to the Trustee may on behalf of the Holders of all of the Notes waive any
existing Default or Event of Default and its consequences hereunder (including
rescinding any related acceleration of the payment of the Notes), except a
continuing Default or Event of Default (and any related acceleration of the
payment of the Notes) in the payment of the principal of, premium and Liquidated
Damages, if any, or interest on, the Notes. The Company shall deliver to the
Trustee an Officers' Certificate stating that the requisite percentage of
Holders have consented to such waiver and attaching copies of such consents. In
case of any such waiver, the Company, the Trustee and the Holders shall be
restored to their former positions and rights hereunder and under the Notes,
respectively. This Section 6.04 shall be in lieu of Section 316(a)(1)(B) of the
TIA and such Section 316(a)(1)(B) of the TIA is hereby expressly excluded from
this Indenture and the Notes, as permitted by the TIA. Upon any such waiver,
such Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured for every purpose of this Indenture; but no
such waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

                  Section 6.05.     Control by Majority. Subject to Section
2.09, holders of a majority in principal amount of the then outstanding Notes
may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture, that may involve the Trustee in personal
liability or that the Trustee determines in good faith may be unduly prejudicial
to the rights of Holders of Notes not joining in the giving of such direction,
and the Trustee shall have the right to decline to follow any such direction, if
the Trustee, being advised by counsel, determines that such action so directed
may not be lawfully taken or if the Trustee, in good faith shall by a
Responsible Officer, determine that the proceedings so directed may involve the
Trustee in personal liability; provided that the Trustee may take any other
action deemed proper by the Trustee which is not

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<PAGE>

inconsistent with such direction. In the event the Trustee takes any action or
follows any direction pursuant to this Indenture, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion against any loss or
expense caused by taking such action or following such direction. This Section
6.05 shall be in lieu of Section 316(a)(1)(A) of the TIA, and such Section
316(a)(1)(A) of the TIA is hereby expressly excluded from this Indenture and the
Notes, as permitted by the TIA.

                  Section 6.06.     Limitation on Suits. A Holder of a Note may
not pursue a remedy with respect to this Indenture, the Notes or the Note
Guarantees unless:

                  (a)      the Holder of a Note gives to the Trustee written
         notice of a continuing Event of Default;

                  (b)      the Holders of at least 25% in aggregate principal
         amount of the then outstanding Notes make a written request to the
         Trustee to pursue the remedy;

                  (c)      such Holder of a Note or Holders of Notes offer and,
         if requested, provide to the Trustee indemnity satisfactory to the
         Trustee against any loss, liability or expense;

                  (d)      the Trustee does not comply with the request within
         60 days after receipt of the request and the offer and, if requested,
         the provision of indemnity; and

                  (e)      during such 60-day period the Holders of a majority
         in principal amount of the then outstanding Notes do not give the
         Trustee a direction inconsistent with the request.

                  A Holder of a Note may not use this Indenture to prejudice the
rights of another Holder of a Note or to obtain a preference or priority over
another Holder of a Note.

                  Section 6.07.     Rights of Holders of Notes to Receive
Payment. Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium, if any, and
Liquidated Damages, if any, and interest on the Note, on or after the respective
due dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

                  Section 6.08.     Collection Suit by Trustee. If an Event of
Default specified in Section 6.01 occurs and is continuing, the Trustee is
authorized to recover judgment in its own name and as trustee of an express
trust against the Company for the whole amount of principal of, premium and
Liquidated Damages, if any, and interest remaining unpaid on the Notes and
interest on overdue principal and, to the extent lawful, interest and such
further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

                  Section 6.09.     Trustee May File Proofs of Claim. The
Trustee is authorized to file such proofs of claim and 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 the Holders of

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the Notes allowed in any judicial proceedings relative to the Company or any
Guarantor (or any other obligor upon the Notes), its creditors or its property
and shall be entitled and empowered to collect, receive and distribute any money
or other securities or property payable or deliverable on any such claims and
any custodian 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 to 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 hereof. To the extent that the
payment of any such compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof out of the estate in any such proceeding, shall be denied
for any reason, payment of the same shall be secured by a Lien on, and shall be
paid out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise. 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 Notes or
the rights of any Holder, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

                  Section 6.10.     Priorities. If the Trustee collects any
money pursuant to this Article, it shall pay out the money in the following
order:

                  First: to the Trustee, its agents and attorneys for amounts
         due under Section 7.07 hereof, including payment of all compensation,
         expense and liabilities incurred, and all advances made, by the Trustee
         and the costs and expenses of collection;

                  Second: to Holders of Notes for amounts due and unpaid on the
         Notes for principal, premium, if any, and Liquidated Damages, if any,
         and interest, ratably, without preference or priority of any kind,
         according to the amounts due and payable on the Notes for principal,
         premium, if any, and Liquidated Damages, if any and interest,
         respectively; and

                  Third: to the Company or to such party as a court of competent
         jurisdiction shall direct.

                  The Trustee may fix a record date and payment date for any
payment to Holders of Notes pursuant to this Section 6.10.

                  Section 6.11.     Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as a Trustee, a court in its
discretion may require the filing by any party litigant in the suit of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07
hereof, or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes.

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<PAGE>

                  Section 6.12.     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, any Subsidiary 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 6.13.     Rights and Remedies Cumulative. Except as
otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in 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 of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

                  Section 6.14.     Delay or Omission Not Waiver. No delay or
omission of the Trustee or of any Holder of any Note 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 Six 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 6.15.     Record Date. The Company may set a record
date for purposes of determining the identity of Holders entitled to vote or to
consent to any action by vote or consent authorized or permitted by Sections
6.04, 6.05 and 9.02. Unless the Company provides otherwise, such record date
shall be the later of 30 days prior to the first solicitation of such consent or
the date of the most recent list of Holders furnished to the Trustee pursuant to
Section 2.05 prior to such solicitation.

                                   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 person would exercise or use under
the circumstances in the conduct of its own affairs.

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

                  (i)      the duties of the Trustee shall be determined solely
         by this Indenture and the Trustee need perform only those duties that
         are specifically set forth in this Indenture

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<PAGE>

         and no others, and no implied covenants or obligations shall be read
         into this Indenture against the Trustee; and

                  (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, 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).

                  (c)      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 6.05 hereof.

                  (d)      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.

                  (e)      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.

                  (f)      The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Company. Money 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 (other than in connection with the
Exchange Offer contemplated by Section 2.06(f) unless required by the TIA) 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

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<PAGE>

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.

                  (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 or (ii) any Event of Default of which the Trustee shall
have received written notification or otherwise obtained actual knowledge.

                  Section 7.03.     Individual Rights of Trustee. The Trustee in
its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company 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 Notes, it shall not be accountable for the Company's use
of the proceeds from the Notes or any money paid 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 Notes or any other document in connection
with the sale of the Notes 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 Notes 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 in payment of principal of, premium and Liquidated Damages, if

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<PAGE>

any, or interest on any Note, 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 Notes.

                  Section 7.06.     Reports by Trustee to the Holders of the
Notes. Within 60 days after each May 15 beginning with the May 15 following the
Issue Date, and for so long as Notes remain outstanding, the Trustee shall mail
to the Holders of the Notes 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 Notes shall be mailed to the Company and filed with the SEC and
each stock exchange on which the Notes are listed in accordance with TIA Section
313(d). The Company shall promptly notify the Trustee when the Notes are listed
on any securities exchange or of any delisting thereof.

                  Section 7.07.     Compensation and Indemnity. The Company
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 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 and any taxes or other expenses incurred by a trust created pursuant to
Section 8.04 hereof.

                  The Company 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 (including this Section
7.07) and defending itself against any claim (whether asserted by the Company or
any Holder or any other person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any
such loss, liability or expense is judicially determined to have been caused by
to its own negligence or bad faith. The Trustee shall notify the Company
promptly of any claim for which it may seek indemnity. Failure by the Trustee to
so notify the Company shall not relieve the Company of its obligations
hereunder. The Company shall defend the claim and the Trustee shall cooperate in
the defense. The Trustee may have separate counsel and the Company shall pay the
reasonable fees and expenses of such counsel. The Company need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.

                  The obligations of the Company under this Section 7.07 shall
survive the satisfaction and discharge of this Indenture.

                  To secure the Company's payment obligations in this Section
7.07, the Trustee shall have a Lien prior to the Notes on all money or property
held or collected by the Trustee,

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<PAGE>

except that held in trust to pay principal and interest on particular Notes.
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.

                  When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(viii) or (ix) 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 any 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 principal amount of the then outstanding Notes 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 any
         Bankruptcy Law;

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

                  (d)      the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the then outstanding Notes 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 Notes of at least 10% in principal amount of the then
outstanding Notes 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 Note
who has been a Holder of a Note for at least six months, fails to comply with
Section 7.10, such Holder of a Note may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

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<PAGE>

                  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 Notes. 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 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 recent 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 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
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.
The Trustee hereby waives any right to set off any claim that it may have
against the Company in any capacity (other than as Trustee and Paying Agent)
against any of the assets of the Company held by the Trustee; provided, however,
that if the Trustee is or becomes a lender of any other Indebtedness permitted
hereunder to be pari passu with the Notes, then such waiver shall not apply to
the extent of such Indebtedness.

                                   ARTICLE 8

           LEGAL DEFEASANCE AND COVENANT DEFEASANCE; SATISFACTION AND
                                   DISCHARGE

                  Section 8.01.     Option to Effect Legal Defeasance or
Covenant Defeasance. The Company may, at the option of its Board of Directors
evidenced by a resolution set forth in an Officers' Certificate, at any time,
elect to have either Section 8.02 or Section 8.03 hereof be

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<PAGE>

applied to all outstanding Notes upon compliance with the conditions set forth
below in this Article 8.

                  Section 8.02.     Legal Defeasance and Discharge. Upon the
Company's exercise under Section 8.01 hereof of the option applicable to this
Section 8.01, the Company shall, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from its
obligations with respect to all outstanding Notes and all obligations of the
Guarantors shall be deemed to have been discharged with respect to their
obligations under the Note Guarantees on the date the conditions set forth below
are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal
Defeasance means that the Company and the Guarantors shall be deemed to have
paid and discharged the entire Indebtedness represented by the outstanding Notes
and Note Guarantees, respectively, which shall thereafter be deemed to be
"outstanding" only for the purposes of Section 8.08 hereof and the other
Sections of this Indenture referred to in (a) and (b) below, and to have
satisfied all its other obligations under such Notes and this Indenture (and the
Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following clauses, which
shall survive until otherwise terminated or discharged hereunder: (a) the rights
of Holders of outstanding Notes to receive solely from the trust fund described
in Section 8.04 hereof, and as more fully set forth in such Section, payments in
respect of the principal of, premium and Liquidated Damages, if any, and
interest on such Notes when such payments are due, (b) the Company's obligations
with respect to such Notes under Article 2 and Section 4.02 hereof, (c) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company's obligations in connection therewith and (d) this Article 8. Subject to
compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03
hereof.

                  Section 8.03.     Covenant Defeasance. Upon the Company's
exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company and each of the Guarantors shall, subject to the satisfaction
of the conditions set forth in Section 8.04 hereof, be released from their
respective obligations under the covenants set forth in Sections 4.07, 4.08,
4.09, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20,
hereof with respect to the outstanding Notes on and after the date the
conditions set forth in Section 8.04 are satisfied (hereinafter, "Covenant
Defeasance"), and the Notes shall thereafter be deemed not "outstanding" for the
purposes of any direction, waiver, consent or declaration or act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the
outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and such
Notes shall be unaffected thereby. In addition, upon the Company's exercise
under Section 8.01 hereof of the option applicable to this Section 8.03, subject
to the satisfaction of the conditions set forth in Section 8.04 hereof, clauses
(i) through (iii) of Section 6.01 and

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<PAGE>

clauses (v) through (vii) of Section 6.01 hereof shall cease to operate and not
constitute Events of Default.

                  Section 8.04.     Conditions to Legal Defeasance or Covenant
Defeasance. The following shall be the conditions to the application of either
Section 8.02 or 8.03 hereof to the outstanding Notes:

                  In order to exercise either Legal Defeasance or Covenant
Defeasance:

                  (a)      the Company shall irrevocably deposit with the
         Trustee, in trust, for the benefit of the Holders of the Notes, cash in
         U.S. dollars, non-callable Government Securities, or a combination
         thereof, in such amounts as shall be sufficient, in the opinion of a
         nationally recognized firm of independent public accountants, to pay
         the principal of, premium and Liquidated Damages, if any, and interest
         on the outstanding Notes on the Stated Maturity or on the applicable
         redemption date, as the case may be, and the Company shall specify
         whether the Notes are being defeased to maturity or to a particular
         redemption date;

                  (b)      in the case of an election under Section 8.02 hereof,
         the Company shall have delivered to the Trustee an Opinion of Counsel
         reasonably acceptable to the Trustee confirming that (i) the Company
         has received from, or there has been published by, the Internal Revenue
         Service a ruling or (ii) since the Issue Date, there has been a change
         in the applicable federal income tax law, in either case to the effect
         that, and based thereon such Opinion of Counsel shall confirm that, the
         Holders of the outstanding Notes shall not recognize income, gain or
         loss for federal income tax purposes as a result of such Legal
         Defeasance and shall be subject to federal income tax on the same
         amounts, in the same manner and at the same times as would have been
         the case if such Legal Defeasance had not occurred;

                  (c)      in the case of an election under Section 8.03 hereof,
         the Company shall have delivered to the Trustee an Opinion of Counsel
         reasonably acceptable to the Trustee confirming that the Holders of the
         outstanding Notes shall not recognize income, gain or loss for federal
         income tax purposes as a result of such Covenant Defeasance and shall
         be subject to federal income tax on the same amounts, in the same
         manner and at the same times as would have been the case if such
         Covenant Defeasance had not occurred;

                  (d)      no Default or Event of Default shall have occurred
         and be continuing either (i) on the date of such deposit, or (ii)
         insofar as an Event of Default set forth in Section 6.01(viii) shall
         have occurred and be continuing, at any time in the period ending on
         the 123rd day after the date of deposit;

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

                  (f)      the Company shall have delivered to the Trustee an
         Opinion of Counsel to the effect that, (i) assuming no intervening
         bankruptcy of the Company or any Guarantor

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<PAGE>

         between the date of deposit and the 123rd day following the deposit and
         assuming that no Holder is an "insider" of the Company under applicable
         bankruptcy law, after the 123rd day following the deposit, the trust
         funds shall not be subject to the effect of Section 547 of the United
         States Bankruptcy Code or Section 15 of the New York Debtor and
         Creditor Law and (ii) the creation of the defeasance trust does not
         violate the Investment Company Act of 1940;

                  (g)      the Company shall have delivered to the Trustee an
         Officers' Certificate stating that the deposit was not made by the
         Company with the intent of preferring the Holders of Notes over any
         other creditors of the Company with the intent of defeating, hindering,
         delaying or defrauding any other creditors of the Company or others;

                  (h)      if the Notes are to be redeemed prior to their Stated
         Maturity, the Company shall have delivered to the Trustee irrevocable
         instructions to redeem all of the Notes on the specified redemption
         date; and

                  (i)      the Company shall have delivered to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent, including, without limitation, the conditions set
         forth in this Section 8.04, provided for or relating to the Legal
         Defeasance or the Covenant Defeasance have been complied with.

                  Section 8.05.     Satisfaction and Discharge of Indenture.
This Indenture shall be discharged and shall cease to be of further effect as to
all Notes issued hereunder when:

                  (i)      either:

                           (A)      all Notes that have been authenticated
                  (except lost, stolen or destroyed Notes that have been
                  replaced or paid and Notes for whose payment money has
                  theretofore been deposited in trust and thereafter repaid to
                  the Company) have been delivered to the Trustee for
                  cancellation; or

                           (B)      all Notes that have not been delivered to
                  the Trustee for cancellation have become due and payable by
                  reason of the making of a notice of redemption or otherwise or
                  will become due and payable within one year and the Company or
                  any Guarantor has irrevocably deposited or caused to be
                  deposited with the Trustee as trust funds in trust solely for
                  the benefit of the Holders, cash in U.S. dollars, non-callable
                  Government Securities, or a combination thereof, in such
                  amounts as will be sufficient without consideration of any
                  reinvestment of interest, to pay and discharge the entire
                  indebtedness on the Notes not delivered to the Trustee for
                  cancellation for principal, premium, if any, and Liquidated
                  Damages, if any, and accrued interest to the date of maturity
                  or redemption;

                  (ii)     no Default or Event of Default shall have occurred
         and be continuing on the date of such deposit or shall occur as a
         result of such deposit and such deposit will not result in a breach or
         violation of, or constitute a default under, any other instrument to
         which the Company or any Guarantor is a party or by which the Company
         or any Guarantor is bound;

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                  (iii)    the Company or any Guarantor has paid or caused to be
         paid all sums payable by it under this Indenture; and

                  (iv)     the Company has delivered irrevocable instructions to
         the Trustee under this Indenture to apply the deposited money toward
         the payment of the Notes at maturity or the redemption date, as the
         case may be.

                  In addition, the Company must deliver an Officers' Certificate
and an Opinion of Counsel to the Trustee stating that all conditions precedent
to satisfaction and discharge have been satisfied.

                  Section 8.06.     Survival of Certain Obligations.
Notwithstanding Sections 8.02, 8.03 and 8.05, any obligations of the Company and
the Guarantors in Sections 2.03 through 2.16 (excluding Sections 2.08 and 2.14),
6.07, 7.07, 7.08, and 8.07 through 8.11 shall survive until the Notes have been
paid in full. Thereafter, any obligations of the Company and the Guarantors in
Sections 7.07, 8.07, 8.08 and 8.10 shall survive such satisfaction and
discharge. Nothing contained in this Article Eight shall abrogate any of the
obligations or duties of the Trustee under this Indenture.

                  Section 8.07.     Acknowledgment of Discharge by Trustee.
After the conditions of Section 8.02, 8.03 or 8.05 have been satisfied, the
Trustee upon written request shall acknowledge in writing the discharge of all
of the Company's obligations under this Indenture except for those surviving
obligations specified in this Article Eight.

                  Section 8.08.     Deposited Money and Cash Equivalents to Be
Held in Trust; Other Miscellaneous Provisions. Subject to Section 8.09 hereof,
all money and non-callable Cash Equivalents (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.08, the "Trustee") pursuant to Section 8.04 hereof in
respect of the outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to
the payment, either directly or through any Paying Agent (including the Company
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and Liquidated Damages, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.

                  The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the cash or non-callable
Cash Equivalents deposited pursuant to Section 8.04(a) hereof or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.

                  Anything in this Article 8 to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon the
request of the Company any money or non-callable Cash Equivalents held by it as
provided in Section 8.04 hereof which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee (which may be the opinion delivered under

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Section 8.04 hereof), are in excess of the amount thereof that would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

                  Section 8.09.     Repayment to Company. Any money deposited
with the Trustee or any Paying Agent, or then held by the Company, in trust for
the payment of the principal of, premium and Liquidated Damages, if any, and
interest on any Note and remaining unclaimed for two years after such principal,
and premium and Liquidated Damages, if any, and interest has become due and
payable shall be paid to the Company on its request or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Note shall
thereafter, as a secured creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
shall be repaid to the Company.

                  Section 8.10.     Indemnity for Government Securities.
The Company shall pay and shall indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against deposited U.S. Government
Obligations or the principal and interest, if any, received on such U.S.
Government Obligations.

                  Section 8.11.     Reinstatement. If the Trustee or Paying
Agent is unable to apply any United States dollars or non-callable Government
Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be,
by reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, then the
Company's obligations under this Indenture and the Notes shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03
hereof until such time as the Trustee or Paying Agent is permitted to apply all
such money in accordance with Section 8.02 or 8.03 hereof, as the case may be;
provided, however, that, if the Company makes any payment of principal of,
premium, if any, or interest on any Note following the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money held by the Trustee or Paying
Agent.

                                    ARTICLE 9

                        AMENDMENT, SUPPLEMENT AND WAIVER

                  Section 9.01.     Without Consent of Holders of Notes.
Notwithstanding Section 9.02 of this Indenture, without the consent of any
Holder of Notes, the Company, the Guarantors and the Trustee may amend or
supplement this Indenture, or the Notes or the Note Guarantees:

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

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                  (b)      to provide for uncertificated Notes in addition to or
         in place of certificated Notes;

                  (c)      to provide for the assumption of the Company's or any
         Guarantor's obligations to Holders of Notes in the case of a merger or
         consolidation or sale of all or substantially all of the assets of the
         Company or of such Guarantor;

                  (d)      to make any change that would provide any additional
         rights or benefits to the Holders of Notes or that does not adversely
         affect the legal rights under this Indenture of any such Holder;

                  (e)      to comply with requirements of the SEC in order to
         effect or maintain the qualification of this Indenture under the Trust
         Indenture Act;

                  (f)      to comply with the requirements of Section 4.17;

                  (g)      to evidence and provide for the acceptance of
         appointment by a successor Trustee, or

                  (h)      to provide for the issuance of Additional Notes in
         accordance with this Indenture.

                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon receipt by the Trustee of the documents
described in Section 7.02(b) hereof stating that such amended or supplemental
Indenture complies with this Section 9.01, the Trustee shall join with the
Company in the execution of any amended or supplemental Indenture authorized or
permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into such amended or supplemental Indenture that
affects its own rights, duties or immunities under this Indenture or otherwise.

                  Section 9.02.     With Consent of Holders of Notes. Except as
provided below in this Section 9.02, this Indenture (including Sections 3.09,
4.10 and 4.14 hereof), the Notes or the Note Guarantees may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer
for, Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default
or Event of Default or compliance with any provision of this Indenture or the
Notes may be waived with the consent of the Holders of a majority in principal
amount of the then outstanding Notes (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for, Notes).
Without the consent of the Holders of at least 75% in principal amount of the
Notes then outstanding voting as a single class (including, without limitation,
consents obtained in connection with a purchase of, or tender offer or exchange
offer for, the Notes), an amendment or waiver may not amend or modify any of the
provisions of this Indenture or the related definitions affecting the
subordination or ranking of the Notes or any Note Guarantee in any manner
adverse to the holders of the Notes or any Note Guarantee. Section 2.08 hereof
shall determine which Notes are considered to be "outstanding" for purposes of
this Section 9.02.

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                  Upon the request of the Company accompanied by a resolution of
its Board of Directors authorizing the execution of any such amended or
supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid,
and upon receipt by the Trustee of the documents described in Section 7.02(b)
hereof stating that any such amended or supplemental Indenture complies with
this Section 9.02, the Trustee shall join with the Company in the execution of
such amended or supplemental Indenture unless such amended or supplemental
Indenture directly affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise, in which case the Trustee may in its discretion,
but shall not be obligated to, enter into such amended or supplemental
Indenture.

                  It shall not be necessary for the consent of the Holders of
Notes under this Section 9.02 to approve the particular form of any proposed
amendment or waiver, but it shall be sufficient if such consent approves the
substance thereof.

                  After an amendment, supplement or waiver under this Section
9.02 becomes effective, the Company shall mail to the Holders of Notes affected
thereby a notice briefly describing the amendment, supplement or waiver. Any
failure of the Company to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such amended or
supplemental Indenture or waiver.

                  Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a
single class may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Notes. However, without the consent of
each Holder affected, an amendment or waiver under this Section 9.02 may not
(with respect to any Notes held by a non-consenting Holder):

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

                  (b)      reduce the principal of or change the fixed maturity
         of any Note or alter the provisions, or waive any payment, with respect
         to the redemption of the Notes;

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

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

                  (e)      make any Note payable in money other than U.S.
         dollars;

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

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                  (g)      release any Guarantor from any of its obligations
         under its Note Guarantee of these Notes or this Indenture, except in
         accordance with the terms of this Indenture;

                  (h)      impair the right to institute suit for the
         enforcement of any payment on or with respect to the Notes or the Note
         Guarantees;

                  (i)      amend, change or modify the obligation of the Company
         to make and consummate an Asset Sale Offer with respect to any Asset
         Sale in accordance with Section 4.10 after the obligation to make such
         an Asset Sale Offer has arisen, or the obligation of the Company to
         make and consummate a Change of Control Offer in the event of a Change
         of Control in accordance with Section 4.14 after such Change of Control
         has occurred, including, in each case, amending, changing or modifying
         any definition relating thereto;

                  (j)      except as otherwise permitted under Section 5.01 and
         Article 11, consent to the assignment or transfer by the Company or any
         Guarantor of any of their rights or obligations under this Indenture;
         or

                  (k)      make any change in Section 6.04 or 6.07 hereof or in
         the foregoing amendment and waiver provisions.

                  Section 9.03.     Compliance with Trust Indenture Act. Every
amendment or supplement to this Indenture or the Notes shall be set forth in a
amended or supplemental Indenture that complies with the TIA as then in effect.

                  Section 9.04.     Revocation and Effect of Consents. Until an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
of a Note is a continuing consent by such Holder of a Note and every subsequent
Holder of a Note or portion of a Note that evidences the same debt as the
consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder of a Note or subsequent Holder of a Note may
revoke the consent as to its Note if the Trustee receives written notice of
revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.

                  Section 9.05.     Notation on or Exchange of Notes. The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. The Company in exchange for all
Notes may issue and the Trustee shall, upon receipt of an Authentication Order,
authenticate new Notes that reflect the amendment, supplement or waiver.

                  Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment, supplement or
waiver.

                  Section 9.06.     Trustee to Sign Amendments, Etc. The
Trustee shall sign any amended or supplemental indenture or Note authorized
pursuant to this Article 9 if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amendment or supplemental indenture or Note until the Board of
Directors approves it. In executing any amended or supplemental indenture or

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Note, the Trustee shall be entitled to receive and (subject to Section 7.01
hereof) shall be fully protected in relying upon, in addition to the documents
required by Section 11.04 hereof, an Officer's Certificate and an Opinion of
Counsel stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture. The Trustee may, but shall not be
obligated to, execute any such amendment, supplement or waiver which affects the
Trustee's rights, duties or immunities under this Indenture or otherwise. In
signing any amendment, supplement or waiver, the Trustee shall be entitled to
receive an indemnity reasonably satisfactory to it.

                                   ARTICLE 10

                                  SUBORDINATION

                  Section 10.01.    Agreement to Subordinate. The Company
agrees, and each Holder by accepting a Note agrees, that the Indebtedness
evidenced by the Notes is subordinated in right of payment, to the extent and in
the manner provided in this Article 10, to the prior payment in full in cash or
Cash Equivalents of all Senior Debt (whether outstanding on the Issue Date or
hereafter created, incurred, assumed or guaranteed), and that the subordination
is for the benefit of the holders of Senior Debt.

                  Section 10.02.    Liquidation; Dissolution; Bankruptcy. The
holders of Senior Debt of the Company shall be entitled to receive payment in
full in cash or Cash Equivalents of all Obligations due in respect of Senior
Debt of the Company (including interest after the commencement of any bankruptcy
proceeding at the rate specified in the applicable Senior Debt of the Company
whether or not an allowed claim) before the Holders of Notes shall be entitled
to receive any payment with respect to the Notes (except that Holders of Notes
may receive and retain Permitted Junior Securities and payments made from the
trust pursuant to Article 8 hereof), in the event of any distribution to
creditors of the Company in connection with (a) any liquidation or dissolution
of the Company; (b) any bankruptcy, reorganization, insolvency, receivership or
similar proceeding relating to the Company or its property; (c) any assignment
by the Company for the benefit of its creditors; or (d) any marshaling of the
Company's assets and liabilities.

                  Section 10.03.    Default on Designated Senior Debt. The
Company shall not make any payment in respect of the Notes (except in Permitted
Junior Securities or from the trust pursuant to Article 8 hereof) if:

                  (a)      a payment default on Designated Senior Debt of the
         Company occurs and is continuing; or

                  (b)      any other default (a "nonpayment default") occurs and
         is continuing on any series of Designated Senior Debt of the Company
         that permits holders of that series of Designated Senior Debt of the
         Company to accelerate its maturity and the Trustee receives a notice of
         such default (a "Payment Blockage Notice") from the Company or (i) with
         respect to Designated Senior Debt incurred pursuant to the Credit
         Agreement, the

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         agent for the lenders thereunder and (ii) with respect to any other
         Designated Senior Debt, the holders of such Designated Senior Debt.

                  (c)      Payments on the Notes may and shall be resumed:

                           (i)      in the case of a payment default on
                  Designated Senior Debt of the Company, upon the date on which
                  such default is cured or waived; and

                           (ii)     in case of a nonpayment default, the earlier
                  of the date on which such default is cured or waived or 179
                  days after the date on which the applicable Payment Blockage
                  Notice is received, unless the maturity of such Designated
                  Senior Debt of the Company has been accelerated.

                  (d)      No new Payment Blockage Notice may be delivered
         unless and until:

                           (i)      360 days have elapsed since the delivery of
                  the immediately prior Payment Blockage Notice; and

                           (ii)     all scheduled payments of principal,
                  interest and premium and Liquidated Damages, if any, on the
                  Notes that have come due have been paid in full in cash.

                  (e)      No nonpayment default that existed or was continuing
         on the date of delivery of any Payment Blockage Notice to the Trustee
         shall be, or be made, the basis for a subsequent Payment Blockage
         Notice.

                  Section 10.04.    Acceleration of Securities. If payment of
the Notes is accelerated because of an Event of Default, the Company and the
Trustee shall promptly notify holders of Senior Debt of the acceleration.

                  Section 10.05.    When Distribution Must Be Paid Over. In the
event that the Trustee or any Holder receives any payment of any Obligations
with respect to the Notes (except in Permitted Junior Securities or from the
trust pursuant to Article 8 hereof) at a time when the payment is prohibited by
this Article and the Trustee or such Holder, as applicable, has actual knowledge
that such payment is prohibited by Article 10 hereof, such payment shall be held
by the Trustee or such Holder, as applicable, in trust for the benefit of the
holders of the Senior Debt of the Company, upon written request of the holders
of the Senior Debt of the Company shall be paid forthwith over and delivered, to
the holders of Senior Debt as their interests may appear or their proper
Representative, for application to the payment of all Obligations with respect
to Senior Debt remaining unpaid to the extent necessary to pay such Obligations
in full in accordance with their terms, after giving effect to any concurrent
payment or distribution to or for the holders of Senior Debt.

                  With respect to the holders of Senior Debt, the Trustee
undertakes to perform only such obligations on the part of the Trustee as are
specifically set forth in this Article 10, and no implied covenants or
obligations with respect to the holders of Senior Debt shall be read into this
Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt, and shall not be liable to any
such holders if the Trustee shall pay over or

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<PAGE>

distribute to or on behalf of Holders or the Company or any other Person money
or assets to which any holders of Senior Debt shall be entitled by virtue of
this Article 10, except if such payment is made as a result of the willful
misconduct or gross negligence of the Trustee.

                  Section 10.06.    Notice by the Company. The Company shall
promptly notify the Trustee and the Paying Agent in writing of any facts known
to the Company that would cause a payment of any Obligations with respect to the
Notes to violate this Article 10, but failure to give such notice shall not
affect the subordination of the Notes to the Senior Debt as provided in this
Article 10.

                  Section 10.07.    Subrogation. After all Senior Debt is paid
in full and until the Notes are paid in full, Holders of Notes shall be
subrogated (equally and ratably with all other Indebtedness pari passu with the
Notes) to the rights of holders of Senior Debt to receive distributions
applicable to Senior Debt to the extent that distributions otherwise payable to
the Holders of Notes have been applied to the payment of Senior Debt. A
distribution made under this Article 10 to holders of Senior Debt that otherwise
would have been made to Holders of Notes is not, as between the Company and
Holders, a payment by the Company on the Notes.

                  Section 10.08.    Relative Rights. This Article 10 defines the
relative rights of Holders of Notes and holders of Senior Debt. Nothing in this
Indenture shall:

                  (a)      impair, as between the Company and Holders of Notes,
         the obligation of the Company, which is absolute and unconditional, to
         pay principal of and interest on the Notes in accordance with their
         terms;

                  (b)      affect the relative rights of Holders of Notes and
         creditors of the Company other than their rights in relation to holders
         of Senior Debt; or

                  (c)      prevent the Trustee or any Holder of Notes from
         exercising its available remedies upon a Default or Event of Default,
         subject to the rights of holders and owners of Senior Debt to receive
         distributions and payments otherwise payable to Holders of Notes.

                  If the Company fails because of this Article 10 to pay
principal of or interest on a Note on the due date, the failure is still a
Default or Event of Default.

                  Section 10.09.    Subordination May Not Be Impaired by the
Company. No right of any holder of Senior Debt to enforce the subordination of
the Indebtedness evidenced by the Notes shall be impaired by any act or failure
to act by the Company or any Holder or by the failure of the Company or any
Holder to comply with this Indenture.

                  Section 10.10.    Distribution or Notice to Representative.
Whenever a distribution is to be made or a notice given to holders of Senior
Debt, the distribution may be made and the notice given to their Representative.

                  Upon any payment or distribution of assets of the Company
referred to in this Article 10, the Trustee and the Holders of Notes shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction or upon any certificate of such Representative or of

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the liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders of Notes for the purpose of ascertaining the Persons
entitled to participate in such distribution, the holders of the Senior Debt and
other Indebtedness of the Company, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 10.

                  Section 10.11.    Rights of Trustee and Paying Agent.
Notwithstanding this Article 10 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts that
would prohibit the making of any payment or distribution by the Trustee, and the
Trustee and the Paying Agent may continue to make payments on the Notes, unless
the Trustee shall have received at its Corporate Trust Office at least five
Business Days prior to the date of such payment written notice of facts that
would cause the payment of any Obligations with respect to the Notes to violate
this Article 10. Only the Company or a Representative may give the notice.
Nothing in this Article 10 shall impair the claims of, or payments to, the
Trustee under or pursuant to Section 7.07 hereof.

                  The Trustee in its individual or any other capacity may hold
Senior Debt with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights.

                  Section 10.12.    Authorization to Effect Subordination. Each
Holder of Notes, by the Holder's acceptance thereof, authorizes and directs the
Trustee on such Holder's behalf to take such action as may be necessary or
appropriate to effectuate the subordination as provided in this Article 10, and
appoints the Trustee to act as such Holder's attorney-in-fact for any and all
such purposes. If the Trustee does not file a proper proof of claim or proof of
debt in the form required in any proceeding referred to in Section 6.09 hereof
at least 30 days before the expiration of the time to file such claim, the
lenders under the Credit Agreement are hereby authorized to file an appropriate
claim for and on behalf of the Holders of the Notes.

                                   ARTICLE 11

                                 NOTE GUARANTEES

                  Section 11.01.    Guarantee. Subject to this Article 11 each
of the Guarantors hereby, jointly and severally, unconditionally guarantees to
each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company
hereunder or thereunder, that:

                  (a)      (i) the principal of and interest on the Notes will
be promptly paid in full when due, whether at maturity, by acceleration,
redemption or otherwise, and interest on the overdue principal of and interest
on the Notes, if any, if lawful (subject in all cases to any applicable grace
period provided herein), and all other obligations of the Company to the Holders
or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (ii) in case
of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal,

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whether at Stated Maturity, by acceleration or otherwise. Failing payment when
due of any amount so guaranteed or any performance so guaranteed for whatever
reason, the Guarantors shall be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a
guarantee of collection.

                  (b)      The Guarantors hereby agree that their obligations
hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Notes with respect
to this Indenture, 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 a Guarantor. Subject to Section 6.06
hereof and to the extent permitted by applicable law, each Guarantor hereby
waives diligence, presentment, demand of 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, protest, notice and all demands whatsoever
and covenant that this Note Guarantee shall not be discharged except by complete
performance of the obligations contained in the Notes and this Indenture.

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

                  (d)      Each Guarantor agrees that it shall not be entitled
to any right of subrogation in relation to the Holders in respect of any
obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby. Each Guarantor further agrees that, as between the
Guarantors, on the one hand, and the Holders and the Trustee, on the other hand,
(x) the maturity of the obligations guaranteed hereby may be accelerated as
provided in Article 6 hereof for the purposes of this Note Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the
event of any declaration of acceleration of such obligations as provided in
Article 6 hereof, such obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantors for the purpose of this Note
Guarantee. The Guarantors shall have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Note Guarantee.

                  Section 11.02.    Subordination of Note Guarantee. The
Obligations of each Guarantor under its Note Guarantee pursuant to this Article
11 shall be subordinated to the Guarantee of any Senior Debt of such Guarantor
on the same basis as the Notes are subordinated to Senior Debt of the Company.
For the purposes of the foregoing sentence, the Trustee and the Holders shall
have the right to receive and/or retain payments by any of the Guarantors only
at such times as they may receive and/or retain payments in respect of the Notes
pursuant to this Indenture, including Article 10 hereof.

                  Section 11.03.    Limitation on Guarantor Liability. Each
Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it
is the intention of all such parties that the Note Guarantee of such Guarantor
not constitute a fraudulent transfer or conveyance for

                                       88

<PAGE>

purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Note Guarantee. To effectuate the foregoing intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the
obligations of such Guarantor shall, after giving effect to such maximum amount
and all other contingent and fixed liabilities of such Guarantor that are
relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under this
Article 11, result in the obligations of such Guarantor under its Note Guarantee
not constituting a fraudulent transfer or conveyance.

                  Section 11.04.    Execution and Delivery of Note Guarantee. To
evidence its Note Guarantee set forth in Section 11.01, each Guarantor hereby
agrees that a notation of such Note Guarantee substantially in the form included
in Exhibit D attached hereto shall be endorsed by an Officer of such Guarantor
on each Note authenticated and delivered by the Trustee and that this Indenture
shall be executed on behalf of such Guarantor by its President or one of its
Vice Presidents.

                  Each Guarantor hereby agrees that its Note Guarantee set forth
in Section 11.01 shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Note Guarantee.

                  If an Officer whose signature is on this Indenture or on the
Note Guarantee no longer holds that office at the time the Trustee authenticates
the Note on which a Note Guarantee is endorsed, the Note Guarantee shall be
valid nevertheless.

                  The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the Note
Guarantee set forth in this Indenture on behalf of the Guarantors.

                  Section 11.05.    Releases Following Sale of Assets. Any
Guarantor shall be released and relieved of any obligations under its Note
Guarantee, (a) in connection with any sale of all of the Capital Stock of that
Guarantor (including by way of merger or consolidation) to a Person that is not
(either before or after giving effect to such transaction) an Affiliate of the
Company, if the sale of all of such Capital Stock of that Guarantor complies
with Section 4.10 hereof, including the application of the Net Proceeds
therefrom; (b) if the Company designated such Subsidiary Guarantor as an
Unrestricted Subsidiary in accordance with this Indenture; or (c) solely in the
case of a Note Guarantee created pursuant to Section 4.20(a), upon the release
or discharge of the Guarantee which resulted in the creation of such Note
Guarantee pursuant to Section 4.20, except a discharge or release by or as a
result of payment under such Guarantee.

                  Any Guarantor not released from its obligations under its Note
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under this Indenture
as provided in this Article Eleven.

                  Section 11.06.    Additional Guarantors. The Company covenants
and agrees that it shall cause any Person which becomes obligated to become a
Guarantor, pursuant to the terms of Section 4.20, to execute a supplemental
indenture substantially in the form of Exhibit E hereto

                                       89

<PAGE>

and any other documentation requested by the Trustee satisfactory in form to the
Trustee in accordance with Section 4.20 pursuant to which such Restricted
Subsidiary shall guarantee the obligations of the Company under the Notes and
this Indenture in accordance with this Article Eleven with the same effect and
to the same extent as if such Person had been named herein as a Subsidiary
Guarantor.

                  Section 11.07.    Notation Not Required. Neither the Company
nor the Guarantors shall be required to make a notation on the Notes to reflect
any Note Guarantee or any release, termination or discharge thereof.

                  Section 11.08.    Successors and Assigns. This Article Eleven
shall be binding upon the Guarantors and each of their successors and assigns
and shall inure to the benefit of the successors and assigns of the Trustee and
the Holders and, in the event of any transfer or assignment of rights by any
Holder or the Trustee, the rights and privileges conferred upon that party in
this Indenture and in the Notes shall automatically extend to and be vested in
such transferee or assigns, all subject to the terms and conditions of this
Indenture.

                  Except as set forth in Article 4 and 5 hereof, and
notwithstanding the provisions of this Section, nothing contained in this
Indenture shall prevent any consolidation or merger of a Guarantor with or into
the Company or another Guarantor, or will prevent the sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to the
Company or another Guarantor.

                  Section 11.09.    No Waiver. Neither a failure nor a delay on
the part of either the Trustee or the Holders in exercising any right, power or
privilege under this Article Eleven shall operate as a waiver thereof, nor shall
a single or partial exercise thereof preclude any other or further exercise of
any right, power or privilege. The rights, remedies and benefits of the Trustee
and the Holders herein expressly specified are cumulative and are not exclusive
of any other rights, remedies or benefits which either may have under this
Article Eleven at law, in equity, by statute or otherwise.

                  Section 11.10.    Modification. No modification, amendment or
waiver of any provision of this Article Eleven, nor the consent to any departure
by the Guarantor therefrom, shall in any event be effective unless the same
shall be in writing and signed by the Trustee, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on the Guarantor in any case shall entitle the
Guarantor to any other or further notice or demand in the same, similar or other
circumstance.

                                   ARTICLE 12

                                  MISCELLANEOUS

                  Section 12.01.    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

                                       90

<PAGE>

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

If to the Company and/or any Guarantor:

         Rayovac Corporation
         601 Rayovac Drive
         Madison, WI 53711
         Facsimile: 608-275-4406
         Attention: General Counsel

with a copy to:

         Skadden, Arps, Slate, Meagher & Flom LLP
         One Beacon Street
         Boston, Massachusetts 02108-3194
         Facsimile: 617-573-4822
         Attention: Margaret Brown

If to the Trustee:

         U.S. Bank National Association
         60 Livingston Avenue
         St. Paul, MN 55107-2292
         Facsimile: 651- 495-8097
         Attention: Corporate Trust Department

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

                  All notices and communications (other than those sent to
Holders) shall be deemed to have been duly given: (i) at the time delivered by
hand, if personally delivered; (ii) five Business Days after being deposited in
the mail, postage prepaid, if mailed; (iii) when answered back, (iv) if telexed;
when receipt acknowledged, if telecopied; and (v) 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

                                       91

<PAGE>

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

                  Section 12.04.    Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
any action under this Indenture (other than in connection with the Exchange
Offer contemplated by Section 2.06(f) or under Section 2.02 hereof unless
required by the TIA), the Company 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 12.05 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 12.05 hereof) stating that, in the
         opinion of such counsel, all such conditions precedent and covenants
         have been satisfied; and

                  (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 12.05.    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;

                                       92

<PAGE>

                  (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 or not such
         covenant or condition has been satisfied; and

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

                  Section 12.06.    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 12.07.    No Personal Liability of Directors,
Officers, Employees and Stockholders. No director, officer, employee, agent,
manager, member, incorporator, stockholder or other equityholder of the Company
or any Guarantor, as such, shall have any liability for any obligations of the
Company or the Guarantors under the Notes, the Exchange Notes, the Note
Guarantees, this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. Such waiver may not be effective
to waive liabilities under the federal securities laws.

                  Section 12.08.    Governing Law. THE INTERNAL LAW OF THE STATE
OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND
THE NOTE GUARANTEES.

                  Section 12.09.    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. All agreements of each Guarantor in this Indenture shall bind
its successors.

                  Section 12.10.    Successors. All agreements of the Company in
this Indenture and the Notes shall bind its successors. All agreements of the
Trustee in this Indenture shall bind its successors. All agreements of each
Guarantor in this Indenture shall bind its successors.

                  Section 12.11.    Severability. In case any provision in this
Indenture or in the Notes 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 12.12.    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 12.13.    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]

                                       93

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Indenture as of
September 30, 2003

                                             RAYOVAC CORPORATION

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             ROV HOLDING, INC.

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             ROVCAL, INC.

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             VESTAR SHAVER CORP.

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             VESTAR RAZOR CORP.

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                       94

<PAGE>

                                             REMINGTON PRODUCTS COMPANY, L.L.C.

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             REMINGTON CAPITAL CORPORATION

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             REMINGTON RAND CORPORATION

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                               Name: James T. Lucke
                                               Title: Secretary

                                             REMINGTON CORPORATION, L.L.C.,
                                             as Guarantors

                                             By:    /s/ James T. Lucke
                                                --------------------------------
                                                Name: James T. Lucke
                                                Title: Secretary

                                             U.S. BANK NATIONAL ASSOCIATION,
                                             as trustee

                                             By:    /s/ Richard H. Prokosch
                                                --------------------------------
                                                Name: Richard H. Prokosch
                                                Title: Vice President

                                       95

<PAGE>

                                                                       EXHIBIT A

                                 [Face of Note]

[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 2.12 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO
A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

THIS NOTE AND THE GUARANTEES ENDORSED HEREON HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THIS NOTE NOR THE GUARANTEES ENDORSED HEREON NOR ANY
INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, 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, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS NOTE AND THE GUARANTEES
ENDORSED HEREON BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE 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 THE COMPANY WAS THE OWNER OF THIS NOTE AND THE GUARANTEES ENDORSED
HEREON (OR ANY PREDECESSOR OF THIS NOTE AND THE GUARANTEES ENDORSED HEREON OF
THIS NOTE) (THE "RESALE RESTRICTION TERMINATION DATE") ONLY (A) TO THE COMPANY
OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A PERSON IT
REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A
THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS THAT
OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE

<PAGE>

EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO
THE COMPANY'S AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
(I) PURSUANT TO CLAUSE (D) PRIOR TO THE END OF THE 40-DAY DISTRIBUTION
COMPLIANCE PERIOD WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR
PURSUANT TO CLAUSE (E) PRIOR TO THE RESALE RESTRICTION TERMINATION DATE TO
REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER
INFORMATION SATISFACTORY TO EACH OF THEM, AND (II) IN EACH OF THE FOREGOING
CASES, TO REQUIRE THAT A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THIS
NOTE IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRANSFER AGENT. THIS
LEGEND SHALL BE REMOVED UPON THE REQUEST OF A HOLDER AFTER THE RESALE
RESTRICTION TERMINATION DATE.]

[IF TEMPORARY REGULATION S GLOBAL NOTE- THE NOTE IS A TEMPORARY REGULATION S
GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER. EXCEPT
IN THE CIRCUMSTANCES DESCRIBED IN SECTION 2.06 OF THE INDENTURE, NO TRANSFER OR
EXCHANGE OF AN INTEREST IN THIS TEMPORARY GLOBAL NOTE MAY BE MADE FOR AN
INTEREST IN THE RESTRICTED GLOBAL NOTE. NO EXCHANGE OF AN INTEREST IN THIS
TEMPORARY REGULATION S GLOBAL NOTE MAY BE MADE FOR AN INTEREST IN THE PERMANENT
REGULATION S GLOBAL NOTE EXCEPT (A) ON OR AFTER THE TERMINATION OF THE
DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED IN REGULATION S UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")) AND (B) UPON DELIVERY OF THE
OWNER SECURITIES CERTIFICATION AND THE TRANSFEREE SECURITIES CERTIFICATION
RELATING TO SUCH INTEREST IN ACCORDANCE WITH THE TERMS OF THE INDENTURE.

UNTIL 40 DAYS AFTER THE COMMENCEMENT OF THE OFFERING OF THE NOTES, AN OFFER OR
SALE OF THE NOTES WITHIN THE UNITED STATES BY A DEALER (AS DEFINED IN THE
SECURITIES ACT OF 1933, AS AMENDED) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT OF 1933, AS AMENDED IF SUCH OFFER OR SALE IS MADE OTHERWISE
THAN IN ACCORDANCE WITH RULE 144A UNDER THE SECURITIES ACT OF 1933, AS AMENDED.]

                                      A-2

<PAGE>

[If Restricted Global Note - CUSIP Number 755081 AC 0/ISIN Number US755081AC07]

[If Temporary Regulation S Global Note or Regulation S Global Note - CUSIP
Number U75320 AA 6/ISIN Number USU75320AA63]

   No. _______                                                    **$_________**

                               RAYOVAC CORPORATION

                    8 1/2% Senior Subordinated Notes due 2013

         Rayovac Corporation (the "Company"), for value received, promises to
pay to CEDE & Co., or its registered assigns, the principal sum of [Amount of
Note] $______________ Dollars on October 1, 2013.

Interest Payment Dates: April 1 and October 1 of each year, starting on April 1,
2004.

Record Dates: March 15 and September 15.

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

                                      A-3

<PAGE>

IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by
facsimile by its duly authorized officers.

                                             RAYOVAC CORPORATION

                                             By:________________________________
                                                Name:
                                                Title:

                    (Trustee's Certificate of Authentication)

This is one of the 8 1/2% Senior Subordinated Notes due 2013 referred to in the
within-mentioned Indenture.

Dated:

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By:________________________
   Authorized Signatory

                                      A-4

<PAGE>

                             [Reverse Side of Note]

                               RAYOVAC CORPORATION

                    8 1/2% Senior Subordinated Notes due 2013

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

                  1.       Interest. The Company promises to pay interest on the
principal amount and premium, if any, of this Note at 8.50% per annum from the
date hereof until Maturity and shall pay the Liquidated Damages, if any, payable
pursuant to Section 5 of the Registration Rights Agreement referred to below.
The Company shall pay interest and Liquidated Damages, if any, semi-annually on
April 1 and October 1 of each year, or if any such day is not a Business Day, on
the next succeeding Business Day (each an "Interest Payment Date"). Interest on
the Notes shall accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from the date of issuance; provided that if
there is no existing Default in the payment of interest, and if this Note is
authenticated between a Record Date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be April 1, 2004. The Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
principal and premium, if any, from time to time on demand at a rate that is 1%
per annum in excess of the rate then in effect; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Liquidated Damages (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful. Interest shall be computed on the basis of a 360-day year of
twelve 30-day months.

                  2.       Method of Payment. The Company shall pay interest on
the Notes (except defaulted interest) and Liquidated Damages, if any, to the
Persons who are registered Holders of Notes at the close of business on the
Record Date immediately preceding the Interest Payment Date, even if such Notes
are canceled after such Record Date and on or before such Interest Payment Date,
except as provided in Section 2.13 of the Indenture with respect to defaulted
interest. The Notes shall be payable as to principal, premium, if any, and
Liquidated Damages, if any, and interest at the office or agency of the Company
maintained for such purpose within or without the City and State of New York,
or, at the option of the Company, payment of interest and Liquidated Damages, if
any, may be made by check mailed to the Holders at their addresses set forth in
the register of Holders, and provided that payment by wire transfer of
immediately available funds shall be required with respect to principal of and
interest, premium and Liquidated Damages on, all Global Notes and all other
Notes the Holders of which shall have provided wire transfer instructions to the
Company or the Paying Agent. Such payment shall be in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.

                  3.       Paying Agent and Registrar. Initially, U.S. Bank
National Association, the Trustee under the Indenture, shall act as Paying Agent
and Registrar. The Company may

                                      A-5

<PAGE>

change any Paying Agent or Registrar without notice to any Holder. The Company
or any of its Subsidiaries may act in any such capacity.

                  4.       Indenture. The Company issued the Notes under an
Indenture dated as of September 30, 2003 (the "Indenture") among the Company,
the Guarantors and the Trustee. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended. The Notes are subject to all such terms, and
Holders are referred to the Indenture and such Act for a statement of such
terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be
controlling. The Indenture pursuant to which this Note is issued provides that
an unlimited aggregate principal amount of Additional Notes may be issued
thereunder.

                  5.       Optional Redemption. (a) Except as set forth in
paragraph 5 (b) below, the Notes shall not be redeemable at the Company's option
prior to October 1, 2008. Thereafter, the Company may redeem all or a part of
these Notes, upon not less than 30 nor more than 60 days' notice, at the
redemption prices (expressed as percentages of principal amount) set forth below
plus accrued and unpaid interest and Liquidated Damages, if any, thereon to the
applicable redemption date, if redeemed during the twelve-month period beginning
on October 1 of the years indicated below:

<TABLE>
<CAPTION>
YEAR                                            PERCENTAGE
----                                            ----------
<S>                                             <C>
2008 .........................................   104.250%
2009 .........................................   102.833%
2010 .........................................   101.417%
2011 and thereafter ..........................   100.000%
</TABLE>

                  (b)      At any time prior to October 1, 2006, the Company may
on one or more occasions redeem up to 35% of the aggregate principal amount of
Notes at a redemption price of 108.50% of the principal amount thereof, plus
accrued and unpaid interest and Liquidated Damages thereon, if any, to the
redemption date, with the net cash proceeds of one or more Equity Offerings of
the Company; provided that at least 65% of the aggregate principal amount of
Notes remains outstanding immediately after the occurrence of such redemption
(excluding Notes held by the Company or its Subsidiaries); and such redemption
shall occur within 45 days of the date of the closing of such Equity Offering.

                  6.       Repurchase at Option of Holder. (a) If a Change of
Control occurs, each Holder of Notes shall have the right to require the Company
to repurchase all or any part (equal to $1,000 or an integral multiple thereof)
of such Holder's Notes pursuant to the offer described below (the "Change of
Control Offer") at an offer price in cash equal to 101% of the aggregate
principal amount of Notes repurchased plus accrued and unpaid interest and
Liquidated Damages, if any, thereon to the date of purchase (the "Change of
Control Payment"). Within 30 days following any Change of Control, the Company
shall mail a notice to each Holder describing the transaction or transactions
that constitute the Change of Control and which shall be no earlier than 30 days
and no later than 60 days from the date such notice is mailed (the "Change of
Control Payment Date"), pursuant to the procedures required by the Indenture and
described in such notice;

                                      A-6

<PAGE>

                  (b)      Within 360 days after the receipt of any Net Proceeds
from an Asset Sale, the Company may apply such Net Proceeds at its option: (i)
to repay Senior Debt and, if the Senior Debt being repaid is revolving credit
Indebtedness, to correspondingly reduce commitments with respect thereto; or
(ii) to purchase Replacement Assets or make a capital expenditure in or that is
used or useful in a Permitted Business. Pending the final applications of any
such Net Proceeds, the Company may temporarily reduce revolving credit
borrowings or otherwise invest such Net Proceeds in any manner that is not
prohibited by the Indenture. Any Net Proceeds from Asset Sales that are not
applied or invested as provided in the preceding paragraph will constitute
"Excess Proceeds." Within 10 days after the aggregate amount of Excess Proceeds
exceeds $10.0 million, the Company will make an offer (an "Asset Sale Offer") to
all Holders of Notes and all holders of other Indebtedness that is pari passu
with the Notes or any Note Guarantee containing provisions similar to those set
forth in the Indenture with respect to offers to purchase with the proceeds of
sales of assets to purchase the maximum principal amount of Notes and such other
pari passu Indebtedness that may be purchased out of the Excess Proceeds at an
offer price in cash equal to 100% of the principal amount thereof of the Notes
and such other pari passu Indebtedness plus accrued and unpaid interest and
Liquidated Damages, if any, to the date of purchase, and will be payable in
cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
the Company may use such Excess Proceeds for any purpose not otherwise
prohibited by the Indenture. If the aggregate principal amount of Notes and such
other pari passu Indebtedness tendered into such Asset Sale Offer exceeds the
amount of Excess Proceeds, the Notes and such other pari passu Indebtedness to
be purchased on a pro rata basis based on the principal amount of Notes and such
other pari passu Indebtedness tendered. Upon completion of each Asset Sale
Offer, the amount of Excess Proceeds shall be reset at zero.

                  7.       Selection and Notice of Redemption If less than all
of the Notes are to be redeemed or purchased in an offer to purchase at any
time, the Trustee shall select the Notes to be redeemed or purchased among the
Holders in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed, or, if the Notes are not so
listed, on a pro rata basis, by lot or in accordance with any other method the
Trustee shall deem fair and appropriate. At least 30 days but not more than 60
days before a redemption date, the Company shall mail or cause to be mailed, by
first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed at its registered address. The notice shall identify the Notes to be
redeemed and shall state:(i) the redemption date; (ii) the redemption price;
(iii) if any Note is being redeemed in part, the portion of the principal amount
of such Note to be redeemed and that, after the redemption date upon surrender
of such Note, a new Note or Notes in principal amount equal to the unredeemed
portion of the original Note shall be issued in the name of the Holder thereof
upon cancellation of the original Note; (iv) the name and address of the Paying
Agent; (v) that Notes called for redemption must be surrendered to the Paying
Agent to collect the redemption price and become due on the date fixed for
redemption; (vi) that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and after
the redemption date; (vii) the paragraph of the Notes and/or Section of the
Indenture pursuant to which the Notes called for redemption are being redeemed;
and (viii) that no representation is made as to the correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Notes.

                                      A-7

<PAGE>

                  8.       Denominations, Transfer, Exchange. The Notes are in
registered form without coupons in denominations of $1,000 and integral
multiples of $1,000. The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other 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 Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed in
part. Also, the Company need not exchange or register the transfer of any Notes
for a period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

                  9.       Persons Deemed Owners. The registered Holder of a
Note will be treated as its owner for all purposes.

                  10.      Amendment, Supplement and Waiver. Subject to certain
exceptions, the Indenture, the Note Guarantees, or the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the then outstanding Notes and Additional Notes, if any, voting as a
single class, and any existing default or compliance with any provision of the
Indenture, the Note Guarantees, or the Notes may be waived with the consent of
the Holders of a majority in principal amount of the then outstanding Notes, if
any, voting as a single class. Without the consent of the Holders of at least
75% in principal amount of the Notes then outstanding voting as a single class
(including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, the Notes), an amendment or waiver
may not amend or modify any of the provisions of the Indenture or the related
definitions affecting the subordination or ranking of the Notes or any Note
Guarantee in any manner adverse to the holders of the Notes or any Note
Guarantee. Without the consent of any Holder of a Note, the Indenture, the Note
Guarantees, or the Notes may be amended or supplemented to cure any ambiguity,
defect or inconsistency, to provide for uncertificated Notes in addition to or
in place of certificated Notes, to provide for the assumption of the Company's
obligations to Holders of the Notes in case of a merger or consolidation or sale
of all or substantially all of the assets of the Company, to make any change
that would provide any additional rights or benefits to the Holders of the Notes
or that does not adversely affect the legal rights under the Indenture of any
such Holder, to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the Trust Indenture Act or to
allow any Subsidiary to guarantee the Notes, to provide for the issuance of
Additional Notes in accordance with the limitations set forth in the Indenture,
or to allow any Guarantor to execute a supplemental indenture to the Indenture
with respect to the Notes.

                  11.      Defaults and Remedies. In the case of an Event of
Default arising from certain events of bankruptcy or insolvency, with respect to
the Company or any of its Restricted Subsidiaries that is a Significant
Subsidiary, all outstanding Notes will become due and payable immediately
without further action or notice. If any other Event of Default occurs and is
continuing, the Trustee or the Holders of at least 25% in principal amount of
the Notes may declare all the Notes to be due and payable immediately by notice
in writing to the Company specifying the Event of Default. Holders of the Notes
may not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority

                                      A-8

<PAGE>

in principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal, premium, if any, or
interest) if it determines that withholding notice is in their interest. The
Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under
the Indenture except a continuing Default or Event of Default in the payment of
interest, premium or Liquidated Damages on, or the principal of, the Notes.

                  In the case of any Event of Default occurring by reason of any
willful action or inaction taken or not taken by or on behalf of the Company
with the intention of avoiding payment of the premium that the Company would
have had to pay if the Company then had elected to redeem the Notes pursuant to
Section 3.07 of the Indenture concerning optional redemption, an equivalent
premium shall also become and be immediately due and payable to the extent
permitted by law upon the acceleration of the Notes.

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

                  13.      No Recourse Against Others. No past, present or
future director, officer, employee, incorporator, stockholder or agent of the
Company or any Guarantor, as such, shall have any liability for any obligations
of the Company or any Guarantor under the Notes, any Note Guarantees, the
Indenture or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder of the Notes by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes. Such waiver may not be effective to
waive liabilities under the federal securities laws.

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

                  15.      Additional Rights of Holders of Restricted Global
Notes and Restricted Certificated Notes. In addition to the rights provided to
Holders of Notes under the Indenture, Holders of Restricted Global Notes and
Restricted Definitive Notes shall have all the rights set forth in the
Registration Rights Agreement, dated as of September 30, 2003, among the
Company, the Guarantors and the parties named on the signature pages thereof or,
in the case of Additional Notes, Holders of Restricted Global Notes and
Restricted Definitive Notes shall have the rights set forth in one or more
registration rights agreements, if any, among the Company, the Guarantors and
the other parties thereto, relating to rights given by the Company to the
purchasers of Additional Notes (collectively, the "Registration Rights
Agreement").

                  16.      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 Notes 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

                                      A-9

<PAGE>

numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

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:

If to the Company and/or any Guarantor:

         Rayovac Corporation
         601 Rayovac Drive
         Madison, WI 53711
         Facsimile: 608-275-4406
         Attention: General Counsel

with a copy to:

         Skadden, Arps, Slate, Meagher & Flom LLP
         One Beacon Street
         Boston, Massachusetts 02108-3194
         Facsimile: 617-573-4822
         Attention: Margaret Brown

                                      A-10

<PAGE>

                                 ASSIGNMENT FORM

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

________________________________________________________________________________

________________________________________________________________________________
                         (Insert assignee's legal name)
________________________________________________________________________________

________________________________________________________________________________
                  (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 Note 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 Note)
Signature Guarantee.*

*    Participant is recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A-11

<PAGE>

                       OPTION OF HOLDER TO ELECT PURCHASE

                  If you want to elect to have this Note purchased by the
Company pursuant to Section 4.10 or 4.14 of the Indenture, check the box below:

                      [ ]                                [ ]

                  Section 4.10                      Section 4.14

                  If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 4.10 or Section 4.14 of the Indenture, state
the amount you elect to have purchased: $________

Date: _______________                        Your Signature: __________________
                                             (Sign exactly as your name appears
                                             on the Note)
                                             Tax Identification No: ___________
Signature Guarantee.*

*    Participant is recognized Signature Guarantee Medallion Program (or other
     signature guarantor acceptable to the Trustee).

                                      A-12

<PAGE>

                      SCHEDULE OF EXCHANGES OF GLOBAL NOTE

                  The following exchanges of a part of this Global Note for an
interest in another Global Note or of another Global Note for an interest in
this Global Note, have been made:

<TABLE>
<CAPTION>
                                                                      Principal Amount         Signature of
                   Amount of Decrease in   Amount of Increase in     of this Global Note    Authorized Officer
                         Principal               Principal             Following such          of Trustee or
Date of Exchange    of this Global Note     of this Global Note    decrease (or increase)     Note Custodian
----------------    -------------------     -------------------    ----------------------     --------------
<S>                <C>                     <C>                     <C>                      <C>
</TABLE>

                                      A-13
<PAGE>

                                                                       EXHIBIT B

                         FORM OF CERTIFICATE OF TRANSFER

                  Re: 8 1/2% Senior Subordinated Notes due 2013

                  Reference is hereby made to the Indenture, dated as of
September 30, 2003 (the "Indenture"), between Rayovac Corporation, as issuer
(the "Company"), the Guarantors, as defined therein (the "Guarantors") and U.S.
Bank National Association, 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 Note[s] or interest in such Note[s] specified in Annex A hereto, in
the principal amount of $___________ in such Note[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 SHALL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN THE 144A GLOBAL NOTE OR A CERTIFICATED NOTE 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 Certificated Note is being transferred to a
Person that the Transferor reasonably believed and believes is purchasing the
beneficial interest or Certificated Note 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 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 Certificated Note shall be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the 144A Global
Note and/or the Certificated Note and in the Indenture and the Securities Act.

              [ ] 2.       CHECK IF TRANSFEREE SHALL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN THE REGULATION S GLOBAL NOTE OR A CERTIFICATED NOTE
PURSUANT TO REGULATION S. The Transfer is being effected pursuant to and in
accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly,
the Transferor hereby further certifies that (a) the Transfer is not being made
to a person in the United States and (x) at the time the buy order was
originated, the Transferee was outside the United States or such Transferor and
any Person acting on its behalf reasonably believed and believes that the
Transferee was outside the United States or (y) the transaction was executed in,
on or through the facilities of a designated offshore securities market and
neither such Transferor nor any Person acting on its behalf knows that the
transaction was prearranged with a buyer in the United States, (b) no directed
selling efforts have been made in contravention of the requirements of Rule
903(b) or Rule 904(b) of Regulation S under the Securities Act, (c) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (d) if the proposed transfer is being
made prior to the expiration of the Restricted Period, the transfer is not being
made to a U.S. Person or for the account or benefit of

                                      B-1

<PAGE>

a U.S. Person (other than an Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Certificated Note shall be subject to the restrictions on
Transfer enumerated in the Private Placement Legend printed on the Regulation S
Global Note and/or the Certificated Note and in the Indenture and the Securities
Act.

              [ ] 3.       CHECK AND COMPLETE IF TRANSFEREE SHALL TAKE DELIVERY
OF A BENEFICIAL INTEREST IN A CERTIFICATED NOTE PURSUANT TO ANY PROVISION OF THE
SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Certificated Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

              [ ] (a)      such Transfer is being effected pursuant to and in
accordance with Rule 144 under the Securities Act;

                                       or

              [ ] (b)      such Transfer is being effected to the Company or a
subsidiary thereof;

                                       or

              [ ] (c)      such Transfer is being effected pursuant to an
effective registration statement under the Securities Act and in compliance with
the prospectus delivery requirements of the Securities Act.

              [ ] 4.       CHECK IF TRANSFEREE SHALL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED
CERTIFICATED NOTE.

              [ ] (a)      CHECK IF TRANSFER IS PURSUANT TO RULE 144. (a) 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 (b) 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
Certificated Note shall no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Certificated Notes and in the Indenture.

              [ ] (b)      CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (a)
The Transfer is being effected pursuant to and in accordance with Rule 903 or
Rule 904 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 (b) 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 Certificated Note shall no longer be subject to the
restrictions on transfer enumerated in the Private

                                      B-2

<PAGE>

Placement Legend printed on the Restricted Global Notes, on Restricted
Certificated Notes and in the Indenture.

              [ ] (c)      CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (a)
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,
Rule 903 or Rule 904 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 (b) 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 Certificated Note shall not be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes or Restricted Certificated Notes 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-3

<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:

                  (i)      144A Global Note (CUSIP ______); or

                  (ii)     Regulation S Global Note (CUSIP ______); or

     [ ] (b)      a Restricted Certificated Note.

2.       After the Transfer the Transferee shall hold:

                                   [CHECK ONE]

     [ ] (c)      a beneficial interest in the:

                  (i)      144A Global Note (CUSIP ______); or

                  (ii)     Regulation S Global Note (CUSIP ______); or

                  (iii)    Unrestricted Global Note (CUSIP ______); or

     [ ] (d)      a Restricted Certificated Note; or

     [ ] (e)      an Unrestricted Certificated Note,

         in accordance with the terms of the Indenture.

                                       B-4

<PAGE>

                                                                       EXHIBIT C

                         FORM OF CERTIFICATE OF EXCHANGE

                  Re: 8 1/2% Senior Subordinated Notes due 2013

                              (CUSIP______________)

                  Reference is hereby made to the Indenture, dated as of
September 30, 2003 (the "Indenture"), between Rayovac Corporation, as issuer
(the "Company"), the Guarantors named therein (the "Guarantors") and U.S. Bank
National Association, 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
Note[s] or interest in such Note[s] specified herein, in the principal amount of
$____________ in such Note[s] or interests (the "Exchange"). In connection with
the Exchange, the Owner hereby certifies that:

                  1.       EXCHANGE OF RESTRICTED CERTIFICATED NOTES OR
BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL NOTE FOR UNRESTRICTED CERTIFICATED
NOTES OR BENEFICIAL INTERESTS IN AN UNRESTRICTED GLOBAL NOTE.

              [ ] (a)      CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note 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 Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (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
beneficial interest in an Unrestricted Global Note 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 NOTE TO UNRESTRICTED CERTIFICATED NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for an
Unrestricted Certificated Note, the Owner hereby certifies (i) the Certificated
Note 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 Notes 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 Certificated Note is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.

              [ ] (c)      CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED
NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with
the Owner's Exchange of a

                                      C-1

<PAGE>

Restricted Certificated Note for a beneficial interest in an Unrestricted Global
Note, 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 Restricted
Certificated Notes 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 beneficial interest is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

              [ ] (d)      CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED
NOTE TO UNRESTRICTED CERTIFICATED NOTE. In connection with the Owner's Exchange
of a Restricted Certificated Note for an Unrestricted Certificated Note, the
Owner hereby certifies (i) the Unrestricted Certificated Note 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 Restricted
Certificated Notes 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 Unrestricted Certificated Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

                  2.       EXCHANGE OF RESTRICTED CERTIFICATED NOTES OR
BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES FOR RESTRICTED CERTIFICATED
NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES.

              [ ] (a)      CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO RESTRICTED CERTIFICATED NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for a
Restricted Certificated Note with an equal principal amount, the Owner hereby
certifies that the Restricted Certificated Note is being acquired for the
Owner's own account without transfer. Upon consummation of the proposed Exchange
in accordance with the terms of the Indenture, the Restricted Certificated Note
issued shall continue to be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Restricted Certificated Note and
in the Indenture and the Securities Act.

              [ ] (b)      CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED
NOTE TO BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the
Exchange of the Owner's Restricted Certificated Note for a beneficial interest
in the [CHECK ONE] 144A Global Note, Regulation S Global Note, the Owner hereby
certifies (i) the beneficial interest is being acquired for the Owner's own
account without transfer and (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, and in compliance with
any applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued shall be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

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

                                      C-2

<PAGE>

                                                          [Insert Name of Owner]

                                                     By: _______________________
                                                         Name:
                                                         Title:

Dated: ________________, ____

                                       C-3

<PAGE>

                                                                       EXHIBIT D

                          FORM OF NOTATION OF GUARANTEE

                  For value received, each Guarantor (which term includes any
successor Person under the Indenture) has, jointly and severally,
unconditionally guaranteed, to the extent set forth in the Indenture and subject
to the provisions in the Indenture dated as of September 30, 2003 (the
"Indenture") among Rayovac Corporation (the "Company"), the Guarantors named
therein and U.S. Bank National Association, as trustee (the "Trustee"), (a) the
due and punctual payment of the principal of, premium and Liquidated Damages (as
defined in the Indenture), if any, and interest on the Notes (as defined in the
Indenture), whether at maturity, by acceleration, redemption or otherwise, the
due and punctual payment of interest on overdue principal and premium, and, to
the extent permitted by law, interest and Liquidated Damages, and the due and
punctual performance of all other obligations of the Company to the Holders or
the Trustee all in accordance with the terms of the Indenture and (b) in case of
any extension of time of payment or renewal of any Notes or any of such other
obligations, that the same shall be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise. The obligations of the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Note Guarantee and the
Indenture are expressly set forth in Article Eleven of the Indenture and
reference is hereby made to the Indenture for the precise terms of the Note
Guarantee. Each Holder of a Note, by accepting the same, (a) agrees to and shall
be bound by such provisions, (b) authorizes and directs the Trustee, on behalf
of such Holder, to take such action as may be necessary or appropriate to
effectuate the subordination as provided in the Indenture and (c) appoints the
Trustee attorney-in-fact of such Holder for such purpose; provided, however,
that the Indebtedness evidenced by this Note Guarantee shall cease to be so
subordinated and subject in right of payment upon any defeasance of this Note in
accordance with the provisions of the Indenture.

                                       D-1

<PAGE>

IN WITNESS HEREOF, the Guarantors have caused this Notation of Guarantee to be
executed by a duly authorized officer.

                                               [Name of Guarantor]

                                               By: _____________________________
                                                   Name:
                                                   Title

                                       D-2

<PAGE>

                                                                       EXHIBIT E

                         FORM OF SUPPLEMENTAL INDENTURE
                    TO BE DELIVERED BY SUBSEQUENT GUARANTORS

                  Supplemental Indenture (this "Supplemental Indenture"), dated
as of _____________, among __________________ (the "Guaranteeing Subsidiary"),
Rayovac Corporation, a Wisconsin Corporation, (the "Company"), the Guarantors
(as defined in the Indenture referred to herein) and U.S. Bank National
Association, as Trustee (the "Trustee").

                               W I T N E S S E T H

                  WHEREAS, the Company and the Guarantors have heretofore
executed and delivered to the Trustee an indenture (the "Indenture"), dated as
of September 30, 2003 providing for the issuance of an unlimited aggregate
principal amount of 8-1/2% Senior Subordinated Notes due 2013 (the "Notes");

                  WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the
Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Company's obligations under the Notes
and the Indenture on the terms and conditions set forth herein (the "Note
Guarantee"); and

                  WHEREAS, pursuant to Section 9.01 of the Indenture, the
Trustee is authorized to execute and deliver this Supplemental Indenture.

                  NOW THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

                  1. Capitalized Terms. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

                  2. Agreement to Guarantee. The Guaranteeing Subsidiary hereby
agrees as follows:

                  (a)      Along with all other Guarantors, to jointly and
         severally Guarantee to each Holder of a Note authenticated and
         delivered by the Trustee and to the Trustee and its successors and
         assigns, irrespective of the validity and enforceability of the
         Indenture, the Notes or the obligations of the Company hereunder or
         thereunder, that:

                           (i)      the principal of and interest on the Notes
                  shall be promptly paid in full when due, whether at maturity,
                  by acceleration, redemption or otherwise, and interest on the
                  overdue principal of and interest on the Notes, if any, if
                  lawful (subject in all cases to any applicable grace period
                  provided in the Indenture), and all other obligations of the
                  Company to the Holders or the Trustee hereunder or

                                      E-1

<PAGE>

                  thereunder shall be promptly paid in full or performed, all in
                  accordance with the terms hereof and thereof; and

                           (ii)     in case of any extension of time of payment
                  or renewal of any Notes or any of such other obligations, the
                  same shall be promptly paid in full when due or performed in
                  accordance with the terms of the extension or renewal, whether
                  at Stated Maturity, by acceleration or otherwise. Failing
                  payment when due of any amount so guaranteed or any
                  performance so guaranteed for whatever reason, the Guarantors
                  shall be jointly and severally obligated to pay the same
                  immediately.

                  (b)      The obligations hereunder shall be unconditional,
         irrespective of the validity, regularity or enforceability of the Notes
         or the Indenture, the absence of any action to enforce the same, any
         waiver or consent by any Holder of the Notes 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 that
         might otherwise constitute a legal or equitable discharge or defense of
         a guarantor.

                  (c)      Subject to Section 6.06 of the Indenture and to the
         extent permitted by applicable law, each Guarantor hereby waives:
         diligence presentment, demand of 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, protest, notice and all
         demands whatsoever.

                  (d)      Subject to Section 6.06 of the Indenture and to the
         extent permitted by applicable law, this Note Guarantee shall not be
         discharged except by complete performance of the obligations contained
         in the Notes and the Indenture.

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

                  (f)      The Guaranteeing Subsidiary shall not be entitled to
         any right of subrogation in relation to the Holders in respect of any
         obligations guaranteed hereby until payment in full of all obligations
         guaranteed hereby.

                  (g)      As between the Guarantors, on the one hand, and the
         Holders and the Trustee, on the other hand, (x) the maturity of the
         obligations guaranteed hereby may be accelerated as provided in Article
         6 of the Indenture for the purposes of this Note Guarantee,
         notwithstanding any stay, injunction or other prohibition preventing
         such acceleration in respect of the obligations guaranteed hereby, and
         (y) in the event of any declaration of acceleration of such obligations
         as provided in Article 6 of the Indenture, such obligations (whether or
         not due and payable) shall forthwith become due and payable by the
         Guarantors for the purpose of this Note Guarantee.

                                       E-2

<PAGE>

                  (h)      The Guarantors shall have the right to seek
         contribution from any non-paying Guarantor so long as the exercise of
         such right does not impair the rights of the Holders under the Note
         Guarantee.

                  (i)      Pursuant to Section 11.03 of the Indenture, after
         giving effect to any maximum amount and any other contingent and fixed
         liabilities of the Guarantor that are relevant under any applicable
         Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
         Fraudulent Transfer Act or any similar federal or state law to the
         extent applicable, and after giving effect to any collections from,
         rights to receive contribution from or payments made by or on behalf of
         any other Guarantor in respect of the obligations of such other
         Guarantor under Article 11 of the Indenture, the Trustee, the Holders
         and the Guarantor irrevocably agree that the obligation of such
         Guarantor shall result in the obligations of such Guarantor under its
         Note Guarantee not constituting a fraudulent transfer or conveyance.

                  3.       Subordination. The Obligations of the Guaranteeing
Subsidiary under its Note Guarantee pursuant to this Supplemental Indenture
shall be junior and subordinated to the Senior Debt of the Guaranteeing
Subsidiary on the same basis as the Notes are junior and subordinated to the
Senior Debt of the Company. For the purposes of the foregoing sentence, the
Trustee and the Holders shall have the right to receive and/or retain payments
by the Guaranteeing Subsidiary only at such time as they may receive and/or
retain payments in respect of the Notes pursuant to the Indenture, including
Article 10 thereof.

                  4.       Execution and Delivery. Each Guaranteeing Subsidiary
agrees that the Note Guarantees shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.

                  5.       Guaranteeing Subsidiary May Consolidate, Etc., on
Certain Terms. Except as otherwise provided in Section 11.05 of the Indenture, a
Guarantor may not sell or otherwise dispose of all or substantially all of its
assets, or consolidate with or merge with or into (whether or not such Guarantor
is the surviving Person) another Person unless:

         (a)      immediately after giving effect to such transaction, no
         Default or Event of Default exists; and

         (b)      either:

                           (i)      the Person acquiring the property in any
                  such sale or disposition or the Person formed by or surviving
                  any such consolidation or merger is a corporation, organized
                  or existing under (i) the laws of the United States, any state
                  thereof or the District of Columbia or (ii) the laws of the
                  same jurisdiction as that Guarantor and, in each case, assumes
                  all the obligations of that Guarantor under the Indenture, its
                  Note Guarantee and the Registration Rights Agreement pursuant
                  to a supplemental indenture satisfactory to the Trustee; or

                                      E-3

<PAGE>

                           (ii)     in the case of a Subsidiary Guarantor, such
                  sale or other disposition (A) complies with Section 4.10 of
                  the Indenture, including the application of the Net Proceeds
                  therefrom and (B) is to a Person that is not a Restricted
                  Subsidiary of the Company.

                  In case of any such consolidation, merger, sale or conveyance
and upon the assumption by the successor Person, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Note Guarantee endorsed upon the Notes and the due and punctual
performance of all of the obligations and conditions of the Indenture to be
performed by a Guarantor, such successor Person shall succeed to and be
substituted for a Guarantor with the same effect as if it had been named herein
as a Guarantor. Such successor Person thereupon may cause to be signed any or
all of the Note Guarantees to be endorsed upon all of the Notes issuable
hereunder which theretofore shall not have been signed by the Company and
delivered to the Trustee. All the Note Guarantees so issued shall in all
respects have the same legal rank and benefit under the Indenture as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of the
Indenture as though all of such Note Guarantees had been issued at the date of
the execution hereof.

                  Except as set forth in Articles 4 and 5 of the Indenture, and
notwithstanding clauses (a) and (b) above, nothing contained in the Indenture or
in any of the Notes shall prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or shall prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

                  6.       Releases. (a) Any Guarantor shall be released and
relieved of any obligations under its Note Guarantee, (i) in connection with any
sale or other disposition of all or substantially all of the assets of that
Guarantor (including by way of merger or consolidation) to a Person that is not
(either before or after giving effect to such transaction) a Restricted
Subsidiary of the Company, if the sale or other disposition of all or
substantially all of the assets of that Guarantor complies with Section 4.10 of
the Indenture, including the application of the Net Proceeds therefrom; (ii) in
connection with any sale of all of the Capital Stock of a Guarantor to a Person
that is not (either before or after giving effect to such transaction) a
Restricted Subsidiary of the Company, if the sale of all such Capital Stock of
that Guarantor complies with Section 4.10 of the Indenture, including the
application of the Net Proceeds therefrom; (iii) if the Company designates any
Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary in
accordance with the terms hereof; or (iv) in connection with any sale of Capital
Stock of a Guarantor to a Person that results in the Guarantor no longer being a
Subsidiary of the Company, if the sale of such Capital Stock of that Guarantor
complies with Section 4.10, including the application of the Net Proceeds
therefrom. Upon delivery by the Company to the Trustee of an Officers'
Certificate and an Opinion of Counsel to the effect that such sale or other
disposition was made by the Company in accordance with the provisions of the
Indenture, including without limitation Section 4.10 hereof, the Trustee shall
execute any documents reasonably required in order to evidence the release of
any Guarantor from its obligations under its Note Guarantee.

                                      E-4

<PAGE>

                  (b)      Any Guarantor not released from its obligations under
its Note Guarantee shall remain liable for the full amount of principal of and
interest on the Notes and for the other obligations of any Guarantor under the
Indenture as provided in Article 10 of the Indenture.

                  7.       No Recourse Against Others. No past, present or
future director, officer, employee, incorporator, stockholder or agent of the
Guaranteeing Subsidiary, as such, shall have any liability for any obligations
of the Company or any Guaranteeing Subsidiary under the Notes, any Note
Guarantees, the Indenture or this Supplemental Indenture or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each
Holder of the Notes by accepting a Note waives and releases all such liability.
The waiver and release are part of the consideration for issuance of the Notes.
Such waiver may not be effective to waive liabilities under the federal
securities laws.

                  8.       NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE
OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.

                  9.       Counterparts. The parties may sign any number of
copies of this Supplemental Indenture. Each signed copy shall be an original,
but all of them together represent the same agreement.

                  10.      Effect of Headings. The Section headings herein are
for convenience only and shall not affect the construction hereof.

                  11.      Trustee. The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary and the
Company.

                                       E-5

<PAGE>

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

Dated:  _______________, ____

                                    [Guaranteeing Subsidiary]

                                    By: _____________________________
                                        Name:
                                        Title:

                                    [Name of Guarantor]

                                    By: _____________________________
                                        Name:
                                        Title:

                                    RAYOVAC CORPORATION

                                    By: _____________________________
                                        Name:
                                        Title:

                                    U.S. BANK NATIONAL ASSOCIATION, AS
                                    TRUSTEE

                                    By: _____________________________
                                        Name:
                                        Title:

                                       E-6

<PAGE>

                                   SCHEDULE I
                                   GUARANTORS

ROV Holding, Inc.
Rovcal, Inc.
Vestar Shaver Corp.
Vestar Razor Corp.
Remington Products Company, L.L.C.
Remington Capital Corporation
Remington Rand Corporation
Remington Corporation, L.L.C.

                                      Sch-I<PAGE>

                                                                    EXHIBIT 10.3

                        SECOND AMENDMENT TO THIRD AMENDED
                          AND RESTATED CREDIT AGREEMENT

         THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
dated as of June 27, 2003 (this "Amendment") amends the Third Amended and
Restated Credit Agreement dated as of October 1, 2002 (as previously amended,
the "Credit Agreement") among RAYOVAC CORPORATION (the "Company"), VARTA
GERATEBATTERIE GmbH (the "Subsidiary Borrower"), various financial institutions
(the "Lenders") and BANK OF AMERICA, N.A., as administrative agent (in such
capacity, the "Administrative Agent"). Capitalized terms used but not defined
herein have the respective meanings given thereto in the Credit Agreement.

         WHEREAS, the parties hereto desire to amend the Credit Agreement in
certain respects as set forth below; and

         WHEREAS, the Company has requested that the Lenders consent to certain
organizational restructurings as described in the Company's Lender's
Presentation dated June 6, 2003 (the "Restructurings"), a copy of which has been
made available to each Lender;

         NOW, THEREFORE, for good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties hereto agree as
follows:

         SECTION 1. AMENDMENTS.

         1.1      Amendments to Definitions. Section 1.1 of the Agreement is
amended as set forth below:

         (a)      The definitions of "Acquisition Restructuring Charges" and
"Other Restructuring Charges" are deleted and the following new definition of
"Restructuring Charges" is inserted in appropriate alphabetical sequence:

                  "Restructuring Charges means restructuring charges of not more
         than $42,500,000 identified to the Administrative Agent in writing
         prior to November 15, 2003 and taken by the Company prior to September
         30, 2003, of which not more than $24,000,000 shall be cash
         restructuring charges and not more than $21,000,000 shall be non-cash
         restructuring charges."

         (b)      The definition of "Adjusted EBITDA" is amended in its entirety
to read as follows:

                  "Adjusted EBITDA means, for any Computation Period, the total
         of (i) EBITDA for such Computation Period plus (ii) any Restructuring
         Charges taken during such Computation Period. In addition, if the
         Company or any Subsidiary makes an Acquisition or a material
         divestiture during any Computation Period, then the historical
         financial results for such period of the Person or assets acquired
         shall be added to Adjusted EBITDA (without taking account of cost
         savings or other synergies unless

<PAGE>

         approved by the Required Lenders) and/or the portion of the financial
         results of the Company and its Subsidiaries for such period
         attributable to the Person or assets divested shall be subtracted in
         calculating Adjusted EBITDA, all as reasonably determined by the
         Company and certified to the Administrative Agent and the Lenders."

         (c)      Clause (a) of the definition of "Excess Cash Flow" is amended
to read as follows:

                  "(a)     EBITDA for such period plus any non-cash
         Restructuring Charges,"

         1.2      Extension of Date for Completion of Transformation. Section
9.1(k) of the Credit Agreement is amended by replacing the date "June 30, 2003"
therein with the date "March 31, 2004".

         1.3      Tax Shelter Regulations.

         (a)      Article VI of the Credit Agreement is amended by adding
thereto the following new Section 6.24:

                  "6.24 Tax Shelter Regulations. The Borrowers do not intend to
         treat the Loans or the Letters of Credit as being a "reportable
         transaction" (within the meaning of Treasury Regulation Section
         1.6014-4). In the event a Borrower determines to take any action
         inconsistent with such intention, it will promptly notify the
         Administrative Agent thereof. If a Borrower so notifies the
         Administrative Agent, the Borrowers acknowledge that one or more of the
         Lenders may treat its Loans and/or its interest in Swing Line Loans
         and/or Letters of Credit as a part of a transaction that is subject to
         Treasury Regulation Section 301.6112-1, and such Lender or Lenders, as
         applicable, will maintain the lists and other records required by such
         Treasury Regulation."

         (b)      Section 7.2 of the Credit Agreement is amended by deleting the
word "and" at the end of clause (e), adding the following new clause (f) after
clause (e) and re-lettering existing clause (f) as clause (g):

                  "(f)     promptly after a Borrower has notified the
         Administrative Agent of any intention by such Borrower to treat the
         Loans and/or Letters of Credit as being a "reportable transaction"
         (within the meaning of Treasury Regulation Section 1.6011-4), a duly
         completed copy of IRS Form 8886 or any successor form; and"

         (c)      Section 11.9 of the Credit Agreement is amended by adding at
the end thereof the following language:

         "Notwithstanding anything herein to the contrary, information subject
         to the foregoing confidentiality restrictions shall not include, and
         the Administrative Agent and each Lender may disclose without
         limitation of any kind, 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 all materials of any kind (including opinions or other tax
         analyses) that are provided to the Administrative Agent or such Lender
         relating to such tax treatment and tax structure; provided that with
         respect to any document or similar item that in either case contains

                                      -2-

<PAGE>

         information concerning the tax treatment or tax structure of the
         transaction as well as other information, this sentence shall only
         apply to such portions of such document or item that relate to the tax
         treatment or tax structure of the Loans, Letters of Credit and
         transactions contemplated hereby."

         SECTION 2. CONSENT. The Administrative Agent and the Required Lenders
consent to the Restructurings and the related releases and substitutions of
collateral and agree with the Company and the Subsidiary Borrower that the
transfers and investments effected as part of the Restructurings shall be
disregarded in determining usage of the basket amounts for permitted exceptions
under Sections 8.2 and 8.4 of the Credit Agreement.

         SECTION 3. CONDITIONS PRECEDENT. This Amendment shall become effective
when the Administrative Agent has received counterpart signature pages (by
facsimile or otherwise) of this Amendment signed by the Company, the Subsidiary
Borrower, the Administrative Agent and the Required Lenders.

         SECTION 4. MISCELLANEOUS.

         4.1      Continuing Effectiveness, etc. The Credit Agreement, as
amended hereby, shall remain in full force and effect and is hereby ratified,
approved and confirmed in all respects.

         4.2      Headings. The headings in this Amendment are inserted for
convenience only and shall not affect the meaning or interpretation of this
Amendment.

         4.3      Execution in Counterparts. This Amendment may be executed by
the parties hereto in several counterparts, each of which shall be deemed to be
an original and all of which shall constitute together but one and the same
agreement. A counterpart signature page delivered by facsimile shall be
effective as an original.

         4.4      Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.

                             [Signatures to Follow]

                                      -3-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                   RAYOVAC CORPORATION

                                   By:  /s/ Kent J. Hussey
                                      ------------------------------------------
                                   Name:  Kent J. Hussey
                                   Title:President and COO

                                   VARTA GERATEBATTERIE GmbH

                                   By:  /s/Andreas Rouve
                                      ------------------------------------------
                                   Name:  Dr. Andreas Rouve
                                   Title:CFO

                                   VARTA GERATEBATTERIE GmbH

                                   By:  /s/Remy Burel
                                      ------------------------------------------
                                   Name:  Remy Burel
                                   Title:CEO

                                      S-1
<PAGE>

                                   BANK OF AMERICA, N.A., as
                                   Administrative Agent and as a Lender

                                   By:__________________________________________
                                   Name:
                                   Title:

                                      S-2

<PAGE>

                                   _____________________________________________
                                    [PRINT OR TYPE NAME OF LENDER]

                                   By:__________________________________________
                                   Name:________________________________________
                                   Title:_______________________________________

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