Document:

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                                                                   Exhibit 10.34

                               WILLEY BROTHERS INC

                            BRANDPARTNERS GROUP, INC

                                       And

                          CORPORATE MEZZANINE II, L.P.
                          SUBORDINATED NOTE AND WARRANT
                               PURCHASE AGREEMENT

                                OCTOBER 22, 2001
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                                TABLE OF CONTENTS
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1.       Definitions .............................................................................     1

         1.1      Definitions ....................................................................     1

         1.2      Accounting Terms ...............................................................    12

         1.3      Knowledge of an Issuer Party ...................................................    12

         1.4      Definitional Provisions ........................................................    12

2.       Purchase and Sale of Notes and Warrants .................................................    12

         2.1      Purchase and Sale of the Notes and Warrants ....................................    12

         2.2      Fees and Closing; Placement Fee ................................................    13

         2.3      Closing ........................................................................    13

         2.4      Financial Accounting Positions; Tax Reporting ..................................    13

         2.5      Payments .......................................................................    13

         2.6      Taxes, Etc .....................................................................    14

3.       Conditions to Obligations of CMII to Purchase the Notes and Warrants ....................    17

         3.1      Representations and Warranties .................................................    17

         3.2      Compliance with this Agreement .................................................    17

         3.3      Secretary's Certificates .......................................................    17

         3.4      Documents; Due Diligence .......................................................    17

         3.5      Purchase of Notes and Warrants Permitted by Applicable Laws ....................    18

         3.6      Opinion of Counsel .............................................................    18

         3.7      Approval Of Counsel To CMII ....................................................    18

         3.8      Consents and Approvals .........................................................    18

         3.9      No Material Judgment or Order ..................................................    18

         3.10     Good Standing Certificates .....................................................    19

         3.11     No Material Adverse Change .....................................................    19

         3.12     Warrants .......................................................................    19

         3.13     Amendment of Senior Credit Agreement ...........................................    19

         3.14     Reserved .......................................................................    19
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         3.15     Notes ..........................................................................    19

         3.16     Subordination Agreement ........................................................    19

         3.17     Fees ...........................................................................    19

         3.18     Reserved .......................................................................    20

         3.19     Reserved .......................................................................    20

         3.20     Registration Rights Agreement ..................................................    20

         3.21     Reserved .......................................................................    20

         3.22     Disbursement Letter ............................................................    20

         3.23     Lien Searches ..................................................................    20

         3.24     Certificates ...................................................................    20

4.       Conditions to the Obligation of BPG and Willey to Issue and Sell the Notes and Warrants .    20

         4.1      Representations and Warranties .................................................    20

         4.2      Compliance with this Agreement .................................................    21

5.       Representations and Warranties of Issuer Parties ........................................    21

         5.1      Disclosure .....................................................................    21

         5.2      No Material Adverse Effect .....................................................    21

         5.3      No Default .....................................................................    21

         5.4      Organization, Powers, Capitalization and Good Standing .........................    21

         5.5      Financial Statements and Projections ...........................................    22

         5.6      Intellectual Property ..........................................................    23

         5.7      Investigations, Audits, etc ....................................................    23

         5.8      Employee Matters ...............................................................    24

         5.9      Solvency .......................................................................    24

         5.10     Reserved .......................................................................    24

         5.11     Use of Proceeds; Margin Regulations ............................................    24

         5.12     Litigation .....................................................................    24

         5.13     ERISA ..........................................................................    25

         5.14     Environmental Matters ..........................................................    25

         5.15     Investment Company/Government Regulations ......................................    26
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         5.16     Reserved .......................................................................    26

         5.17     Private Offering ...............................................................    26

         5.18     Broker's, Finder's or Similar Fees .............................................    26

         5.19     Employee Benefit Plans .........................................................    27

         5.20     Insurance ......................................................................    27

         5.21     Investments ....................................................................    27

         5.22     Other Documents ................................................................    27

6.       Representations and Warranties of CMII ..................................................    28

         6.1      Authorization; No Contravention ................................................    28

         6.2      Binding Effect .................................................................    28

         6.3      No Legal Bar ...................................................................    28

         6.4      Purchase for Own Account .......................................................    28

         6.5      ERISA ..........................................................................    29

         6.6      Broker's, Finder's or Similar Fees .............................................    29

         6.7      Governmental Authorization; Third Party Consent ................................    29

         6.8      Accredited Investor ............................................................    29

         6.9      Litigation .....................................................................    30

7.       Indemnification .........................................................................    30

         7.1      Indemnification ................................................................    30

         7.2      Notification ...................................................................    31

         7.3      Survival of Indemnification Provisions .........................................    31

8.       Covenants ...............................................................................    32

         8.1      Affirmative Covenants ..........................................................    32

         8.2      Negative Covenants .............................................................    40

         8.3      Financial Covenants ............................................................    47

9.       Prepayment ..............................................................................    48

         9.1      Optional Prepayment ............................................................    48

         9.2      Mandatory Prepayment ...........................................................    48

10.      Miscellaneous ...........................................................................    48

         10.1     Survival of Representations and Warranties .....................................    48
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         10.2     Notices ........................................................................    48

         10.3     Successors and Assigns .........................................................    50

         10.4     Amendment and Waiver ...........................................................    50

         10.5     Signatures and Counterparts ....................................................    51

         10.6     Headings .......................................................................    51

         10.7     GOVERNING LAW ..................................................................    51

         10.8     WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION ..................................    52

         10.9     Severability ...................................................................    53

         10.10    Rules of Construction ..........................................................    53

         10.11    Entire Agreement ...............................................................    53

         10.12    Certain Expenses ...............................................................    53

         10.13    Publicity ......................................................................    54

         10.14    Further Assurances .............................................................    54

         10.15    Note Register ..................................................................    54

         10.16    Multiple Holders ...............................................................    54

         10.17    Confidentiality ................................................................    55

Exhibit A         Form of Note ...................................................................    A-1
Exhibit B         Compliance Certificate .........................................................    B-1
Exhibit C         Form of Opinion of Counsel .....................................................    C-1
Exhibit D         Form of Subordination Agreement ................................................    D-1
Exhibit E         Form of Warrant ................................................................    E-1
Exhibit F         Form of Registration Rights Agreement ..........................................    F-1
Exhibit G         Form of Subsidiary Guarantee ...................................................    G-1
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Schedule 5.4(a)            Jurisdictions of Organization
Schedule 5.4(b)            Capitalization
Schedule 5.4(d)            Foreign Qualifications
Schedule 5.5               Financial Statements and Projections
Schedule 5.6               Intellectual Property
Schedule 5.7               Investigations and Audits
Schedule 5.8               Employee Matters
Schedule 5.12              Litigation
Schedule 5.14              Environmental Matters

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Schedule 5.18              Broker's, Finder's or Similar Fees
Schedule 5.19              Employee Benefit Plans
Schedule 5.20              Insurance
Schedule 5.21              Investments
Schedule 5.22              Material Agreements
Schedule 8.2(a)(ii)        Existing Indebtedness
Schedule 8.2(b)(ii)        Existing Liens
Schedule 8.2(h)            Restrictive Agreements

                                        v
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                                                                       EXECUTION

SUBORDINATED NOTE AND WARRANT PURCHASE AGREEMENT (this "AGREEMENT"), dated as of
October 22, 2001,

BY AND AMONG

BRANDPARTNERS GROUP, INC, a Delaware corporation ("BPG"),

WILLEY BROTHERS INC., a New Hampshire corporation ("WILLEY"), and

CORPORATE MEZZANINE II, L.P., a British Virgin Island limited partnership
(together with its successors and registered assigns, subject to Section 10.16,
"CMII").

WITNESSETH:

WHEREAS, Willey wishes to sell to CMII, and CMII wishes to purchase from Willey,
Notes (as hereinafter defined) in the aggregate principal amount of US$5,000,000
upon the terms and subject to the conditions hereinafter set forth; and

WHEREAS, BPG wishes to sell to CMII and CMII wishes to purchase from BPG certain
warrants to purchase 405,000 shares of common stock (collectively, together with
any replacements or additional warrants issued in connection therewith, the
"WARRANTS"), upon the terms and subject to the conditions hereinafter set forth
and in the Warrants.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.       DEFINITIONS

1.1      Definitions

         As used in this Agreement, and unless the context requires a different
         meaning, the following terms have the meanings indicated:

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

         "AGREEMENT" shall mean this Subordinated Note and Warrant Purchase
         Agreement, including the exhibits and schedules attached hereto, as the
         same may be amended, supplemented or modified in accordance with the
         terms hereof.

         "BANKRUPTCY CODE" shall mean Title 11 of the United States Code
         entitled "Bankruptcy", as amended from time to time or any applicable
         bankruptcy, insolvency or other similar law now or hereafter in effect
         and all rules and regulations promulgated thereunder.
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         "BPG" shall have the meaning assigned to such term in the recitals
         hereto.

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or
         other day on which commercial banks in the State of New York are
         authorized or required by law or executive order to close.

         "CAPITAL EXPENDITURES" shall mean expenditures made or liabilities
         incurred for the acquisition of any fixed assets or improvements,
         replacements, substitutions or additions thereto which have a useful
         life of more than one year, including the total principal portion of
         Capitalized Lease Obligations.

         "CAPITAL LEASE OBLIGATIONS" shall mean any Indebtedness represented by
         obligations under a lease that is required to be capitalized for
         financial reporting purposes in accordance with GAAP.

         "CASH INTEREST EXPENSE" shall mean, with respect to any Person for any
         period, the Interest Expense of such Person for such period less all
         non-cash items constituting Interest Expense during such period
         (including, without limitation, (i) amortization of debt discounts,
         (ii) amortization of Closing Date fees and expenses and (iii) payments
         of interest on Indebtedness by issuance of Indebtedness).

         "CHANGE IN CONTROL" shall mean (i) BPG shall cease to own and control
         beneficially and of record, free and clear of all Liens, other
         encumbrances, or voting agreements, restrictions or trusts of any kind,
         67% of the equity interests of Willey, (ii) Jeffrey Silverman ceases to
         be the Chairman of the Board of BPG or (iii) Jeffrey Silverman ceases
         to own and control beneficially, pursuant to Rule 13d-3 under the
         Exchange Act, at least 1,500,0000 shares of common stock of BPG (or an
         equivalent number after giving effect to splits, combinations,
         reclassifications and similar events).

         "CLOSING" shall have the meaning given that term in Section 2.3.

         "CLOSING DATE" shall have the meaning given that term in Section 2.3.

         "COMPLIANCE CERTIFICATE" shall mean a certificate in substantially the
         same form as Exhibit B signed by a Financial Officer of any Issuer
         Party and delivered by such Issuer Party to CMII.

         "CONSOLIDATED" shall mean the consolidation in accordance with GAAP of
         the accounts or other items as to which such term applies.

         "CONTROL" shall mean, with respect to a specified Person, 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 ability to exercise voting power, by contract or otherwise.
         "CONTROLLING" and "CONTROLLED" have meanings correlative thereto.

         "CMII" shall have the meaning assigned to such term in the preamble
         hereto.

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         "CONDITION OF BPG" shall mean the assets, business, properties,
         prospects, operations and financial condition of BPG and its
         Subsidiaries taken as a whole.

         "CONDITION OF WILLEY" shall mean the assets, business, properties,
         prospects, operations and financial condition of Willey and its
         Subsidiaries taken as a whole.

         "CONTRACTUAL OBLIGATIONS" as applied to any Person shall mean any
         indenture, mortgage, deed of trust, contract, undertaking, agreement or
         other instrument to which that Person is a party or by which it or any
         of its properties is bound or to which it or any of its properties is
         subject including, without limitation, the Transactions Documents.

         "DEFAULT" shall mean any Event of Default or any event that would
         constitute an Event of Default but for the requirement expressly set
         forth in Section 7 of the Notes that notice be given or time elapse or
         both.

         "DEFERRED AMOUNT" shall have the meaning assigned to such term in
         Section 8.2(f).

         "DEFINED BENEFIT PLAN" shall mean a defined benefit plan within the
         meaning of Section 3(35) of ERISA or Section 414(j) of the Internal
         Revenue Code, whether funded or unfunded, qualified or non-qualified
         (whether or not subject to ERISA or the Internal Revenue Code).

         "EBITDA" shall mean with respect to any fiscal period, the Consolidated
         Net Income of Willey and its Subsidiaries in such period plus (to the
         extent deducted in determining such Consolidated Net Income) the sum of
         (i) the Interest Expense of Willey and its Subsidiaries in such period,
         plus (ii) depreciation, amortization and other noncash charges of
         Willey and its subsidiaries in such period, plus (iii) all income and
         franchise taxes of Willey and its Subsidiaries paid or provided for in
         such period, on a Consolidated basis in conformity with GAAP; provided,
         however, that Growth Capital Expenditures in amounts not to exceed
         $200,000 in Fiscal Year, 2001 and $750,000 in each of Fiscal Years 2002
         and 2003, (upon notification thereof in writing to CMII together with
         reasonable supporting documentation) shall be permitted to be added
         back into EBITDA in each such respective Fiscal Year but no other
         Fiscal Year.

         "ENVIRONMENTAL LAW" shall mean any federal, state, local or foreign
         statute, law, ordinance, rule, regulation, code, order, writ, judgment,
         injunction, decree or judicial or agency interpretation, relating to
         pollution or protection of the environment, protection of occupational
         health or safety or protection or preservation of natural resources,
         including, without limitation, those relating to the use, handling,
         transportation, treatment, storage, disposal, release or discharge of
         Hazardous Materials.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
         as amended from time to time, and the rules and regulations promulgated
         thereunder.

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         "ERISA AFFILIATE" shall mean any Person that for purposes of Title IV
         of ERISA is a member of the controlled group of any Issuer Party, or
         under common control with any Issuer Party, within the meaning of
         Section 414 of the Internal Revenue Code.

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

         "EVENT OF DEFAULT" shall have the meaning assigned to such term in the
         Notes.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
         amended, and the rules and regulations of the SEC thereunder.

         "EXERCISABLE SHARES" shall have the meaning assigned to that term in
         Section 8.1(n).

         "FINANCIAL OFFICER" shall mean, with respect to any Person, the chief
         executive officer, chief financial officer, principal accounting
         officer, treasurer or controller of such Person.

         "FISCAL YEAR" shall mean a year ending December 31.

         "FULLY LOADED FIXED CHARGE COVERAGE RATIO" shall mean the ratio of (A)
         EBITDA minus Capital Expenditures to (B) the sum of (i) Interest
         Expense, (ii) scheduled principal payments of Indebtedness under the
         Senior Credit Agreement and under the Notes, (iii) payments of
         Capitalized Lease Obligations and (iv) taxes.

         "GAAP" shall mean the generally accepted accounting principles in the
         United States of America in effect from time to time.

         "GOVERNMENTAL AUTHORITY" shall mean the government of any nation,
         state, city, locality or other political subdivision of any thereof,
         any entity exercising executive, legislative, judicial, regulatory or
         administrative functions of or pertaining to government, and any
         corporation or

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         other entity owned or controlled, through stock or capital ownership or
         otherwise, by any of the foregoing.

         "GROWTH CAPITAL EXPENDITURES" shall mean certain one-off expenditures
         not included as Capital Expenditures to be funded solely from the
         proceeds of the Notes and utilized to develop and grow the business of
         Willey.

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

         "GUARANTOR" shall mean each Person that has issued a Guarantee of the
         Obligations.

         "HAZARDOUS MATERIALS" shall mean all explosive or radioactive
         substances or wastes and all hazardous or toxic substances, wastes or
         other pollutants, including petroleum or petroleum distillates,
         asbestos or asbestos containing materials, polychlorinated biphenyls,
         radon gas, infectious or medical wastes and all other substances or
         wastes of any nature regulated pursuant to any Environmental Law.

         "HEDGING AGREEMENT" shall mean any interest rate protection agreement,
         foreign currency exchange agreement, commodity price protection
         agreement or other interest or currency exchange rate or commodity
         price hedging arrangement

         "INDEBTEDNESS" as applied to any Person, shall mean, without
         duplication, (a) all items which in accordance with GAAP would be
         included in determining total liabilities as shown on the liability
         side of a balance sheet of such Person as at the date as of which
         Indebtedness is to be determined, including, without limitation,
         Capitalized Lease Obligations, (b) all obligations of other Persons
         which such Person has Guaranteed, (c) all reimbursement obligations in
         connection with letters of credit or letter of credit guaranties issued
         for the account of such Person, and (d) in the case of Willey (without
         duplication), the Obligations.

         "INTEREST COVERAGE RATIO" shall mean, for any period, the ratio of (i)
         EBITDA for such period less all non-financed Capital Expenditures made
         in such period less dividends and distributions

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         made by Willey to the extent permitted under this Agreement and paid
         during such period to (ii) the Cash Interest Expense of Willey for such
         period.

         "INDEMNIFIED PARTY" shall have the meaning assigned to that term in
         Section 7.1.

         "INTEREST EXPENSE" shall mean, for any period, the sum of total
         interest expense (including that portion attributable to Capitalized
         Lease Obligations in accordance with GAAP and capitalized interest) of
         Willey and its Subsidiaries on a Consolidated basis with respect to all
         outstanding Indebtedness of Willey and its Subsidiaries, including all
         commissions, discounts and other fees and charges owed with respect to
         Letters of Credit and banker's acceptance financing.

         "INTERNAL REVENUE CODE" shall mean the Internal Revenue Code of 1986,
         as amended from time to time (or any successor statute thereto), and
         the regulations promulgated and rulings issued thereunder.

         "INVESTMENT" shall mean (i) any direct or indirect purchase or other
         acquisition by Willey or any of its Subsidiaries of any beneficial
         interest in, including stock, partnership interest or other equity
         securities of, or ownership interest in, any other Person; and (ii) any
         direct or indirect loan, advance or capital contribution by Willey or
         any of its Subsidiaries to any other Person, including all indebtedness
         and accounts receivable from that other Person that are not current
         assets or did not arise from sales to that other Person in the ordinary
         course of business.

         "LC GUARANTY" shall mean any guarantee pursuant to which a Senior
         Lender or any Affiliate of a Senior Lender shall guaranty the payment
         or performance by Willey of its reimbursement obligation under any
         Letter of Credit.

         "LETTERS OF CREDIT" shall mean any letter of credit, including without
         limitation, standby letters of credit and documentary letters of credit
         issued by a Senior Lender or any Affiliates of a Senior Lender for the
         account of Willey.

         "ISSUER PARTY" shall mean, at any time, Willey and its Subsidiaries and
         BPG.

         "LIABILITIES" shall have the meaning assigned to that term in Section
         7.1.

         "LIEN" shall mean, with respect to any asset, (a) any mortgage, deed of
         trust, lien, pledge, hypothecation, encumbrance, charge or security
         interest in, on or of such asset, (b) the interest of a vendor or a
         lessor under any conditional sale agreement, capital lease or title
         retention agreement (or any financing lease having substantially the
         same economic effect as any of the foregoing) relating to such asset
         and (c) in the case of securities, any purchase option, call or similar
         right of a third party with respect to such securities.

         "MANAGEMENT FEE" shall mean the fees paid by Willey to BPG for managing
         the business of Willey, which fees shall be paid quarterly and shall
         not exceed $100,000 per quarter.

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         "MATERIAL ADVERSE EFFECT" shall mean as to any Person, a material
         adverse effect on (a) the business, assets, operations, prospects or
         condition, financial or otherwise, of such Person and its Subsidiaries
         taken as a whole, (b) the ability of any such Person to perform any of
         its material obligations under this Agreement and the other Transaction
         Documents, taken as a whole, or (c) the rights of or benefits available
         to the holders of the Notes or Warrants under this Agreement and the
         other Transaction Documents, taken as a whole.

         "MATURITY DATE" shall have the meaning assigned to such term in the
         Note(s).

         "MONEY BORROWED" shall mean (i) Indebtedness arising from the lending
         of money by any Person to Willey or any of its Subsidiaries; (ii)
         Indebtedness, whether or not in any such case arising from the lending
         by any Person of money to Willey or any of its Subsidiaries, (A) which
         is represented by notes payable or drafts accepted that evidence
         extensions of credit, (B) which constitutes obligations evidenced by
         bonds, debentures, notes or similar instruments, or (C) upon which
         interest charges are customarily paid (other than accounts payable) or
         that was issued or assumed as full or partial payment for property;
         (iii) Indebtedness that constitutes a Capitalized Lease Obligation;
         (iv) reimbursement obligations with respect to Letters of Credit or LC
         Guaranties and (v) Indebtedness for Money Borrowed under clauses (i)
         through (iii) hereof, if owed directly by Willey or any of its
         Subsidiaries.

         "NET INCOME" shall mean, for any period, the net income (or loss) of
         Willey and its Subsidiaries on a Consolidated basis for such period
         taken as a single accounting period determined in conformity with GAAP;
         provided that there shall be excluded therefrom (i) the income (or
         loss) of any Person (other than a Subsidiary of Willey) in which any
         other Person (other than Willey or any of its Subsidiaries) has a joint
         interest, except to the extent of the amount of dividends or other
         distributions actually paid to Willey or any of its Subsidiaries by
         such Person during such period, (ii) the income of any Subsidiary of
         Willey to the extent that the declaration or payment of dividends or
         similar distributions by that Subsidiary of that income is not at the
         time permitted by operation of the terms of its charter or any
         agreement, instrument, judgment, decree, order, statute, rule or
         governmental regulation applicable to that Subsidiary.

         "NOTE" shall mean each subordinated promissory note due October 22,
         2008, to be purchased by CMII from Willey on the Closing Date, which
         promissory notes shall be substantially in the form attached hereto as
         Exhibit A and which shall be in the aggregate principal amount of
         US$5,000,000, as each may be amended, modified, replaced, substituted
         or renewed from time to time in accordance with their terms

         "OBLIGATIONS" shall mean the obligations, liabilities and indebtedness
         of the Issuer Parties under the Transaction Documents including,
         without limitation, (a) the obligation to pay principal, interest
         (including, without limitation, interest accrued after the commencement
         of a proceeding under the Bankruptcy Code in which any Issuer Party is
         a debtor, whether or not a claim in respect of such interest is an
         allowed claim in such proceeding), charges, expenses, fees,

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         attorneys' fees and disbursements, indemnities and other amounts
         (including amounts payable as the purchase price (together with
         interest thereon and other amounts payable in connection therewith) in
         connection with any repurchase by BPG of the Warrants) payable by any
         Issuer Party under any Transaction Document and (b) the obligation of
         any Issuer Party to reimburse any amount in respect of any of the
         foregoing that CMII, in accordance with the provisions of any
         Transaction Document, may elect to pay or advance on behalf of any
         Issuer Party.

         "PERMITTED ENCUMBRANCES" shall mean:

         (a)      Liens imposed by law for taxes, assessments, governmental
                  charges or levies that are not yet due or are being contested
                  in compliance with Section 8.2(g);

         (b)      Liens arising in the ordinary course of Willey's business by
                  operation of law or regulation, but only if payment in respect
                  of any such Lien is not at the time required and such Liens do
                  not, in the aggregate, materially detract from the value of
                  the Property of Willey or materially impair the use thereof in
                  the operation of Willey's business;

         (c)      omitted;

         (d)      omitted;

         (e)      judgment liens in respect of judgments that do not constitute
                  an Event of Default under Section 7(a)(x) of a Note;

         (f)      omitted;

         (g)      Liens securing Indebtedness owing by Willey to one of Willey's
                  Subsidiaries or by one of Willey's Subsidiaries to Willey or
                  another Subsidiary of Willey; and

         (h)      such other Liens as CMII may hereafter approve in writing.

         provided, that the term "Permitted Encumbrances" shall not include any
         Lien securing Indebtedness or Money Borrowed.

        "PERMITTED INVESTMENTS" shall mean:

         (a)      any Property received in connection with a bankruptcy
                  proceeding or a settlement;

         (b)      direct obligations of, or obligations the principal of and
                  interest on which are unconditionally guaranteed by, the
                  United States of America (or by any agency thereof to the
                  extent such obligations are backed by the full faith and
                  credit of the United States of America), in each case maturing
                  within one year from the date of acquisition thereof;

                                       8
<PAGE>
         (c)      investments in commercial paper maturing within 270 days from
                  the date of acquisition thereof and having, at such date of
                  acquisition, the highest credit rating obtainable from
                  Standard & Poor's Corporation or Moody's Investors Service,
                  Inc.;

         (d)      investments in certificates of deposit, banker's acceptances
                  and time deposits maturing within one year from the date of
                  acquisition thereof issued or guaranteed by or placed with,
                  and money market deposit accounts issued or offered by, any
                  domestic office of any commercial bank organized under the
                  laws of the United States of America or any State thereof
                  which has a combined capital and surplus and undivided profits
                  of not less than $100,000,000;

         (e)      investments in money market mutual funds having assets in
                  excess of $2,000,000,000;

         (f)      fully collateralized repurchase agreements with a term of not
                  more than 30 days for securities described in clause (a) above
                  and entered into with a financial institution satisfying the
                  criteria described in clause (c) above; and

         (g)      investments in a Subsidiary that has complied with Section
                  8.1(j).

         "PERMITTED PURCHASE MONEY INDEBTEDNESS" shall mean Purchase Money
         Indebtedness of Willey and its Subsidiaries incurred after the date
         hereof which is secured by a Purchase Money Lien and which, when
         aggregated with the principal amount of all other Purchase Money
         Indebtedness and Capitalized Lease Obligations of Willey and its
         Subsidiaries at the time outstanding, does not exceed $1,000,000. For
         purposes of this definition, the principal amount of any Purchase Money
         Indebtedness consisting of capitalized leases shall be computed as a
         Capitalized Lease Obligation.

         "PERMITTED SELLER NOTES AMOUNT" shall mean the sum of the $7.5 Million
         Note Amount (as such term in defined in the Senior Credit Agreement as
         in effect on the Closing Date) and the Two Million Note Amount (as such
         term in defined in the Senior Credit Agreement as in effect on the
         Closing Date).

         "PERMITTED SELLER NOTES PRINCIPAL" shall have the meaning given in the
         Senior Credit Agreement as in effect on the Closing Date.

         "PERSON" shall mean and includes natural persons, corporations, limited
         liability companies, limited partnerships, limited liability
         partnerships, general partnerships, joint stock companies, joint
         ventures, associations, companies, trusts, banks, trust companies, land
         trusts, business trusts or other organizations, whether or not legal
         entities, and governments and agencies and political subdivisions
         thereof and their respective permitted successors and assigns (or in
         the case of a governmental person, the successor functional equivalent
         of such Person).

         "PLANS" shall have the meaning given in Section 5.19.

                                       9
<PAGE>
         "PROJECTIONS" shall mean forecasted consolidated and consolidating: (a)
         balance sheets; (b) profit and loss statements; (c) cash flow
         statements; and (d) capitalization statements, all prepared, to the
         extent applicable, on a division-by-division and
         Subsidiary-by-Subsidiary basis on a consistent basis with any
         historical financial statements, together with appropriate supporting
         details and a statement of material underlying assumptions.

         "PROPERTY" shall mean any interest in any kind of property or asset,
         whether real, personal or mixed, general or intangible.

         "PURCHASE MONEY INDEBTEDNESS" shall mean and include (i) Indebtedness
         for the payment of all or any part of the purchase price of any fixed
         assets, (ii) any Indebtedness incurred at the time of or within 10 days
         prior to or after the acquisition of any fixed assets for the purpose
         of financing all or any part of the purchase price thereof and (iii)
         any renewals, extensions or refinancings thereof, but not any increases
         in the principal amounts thereof outstanding at the time.

         "PURCHASE MONEY LIEN" shall mean a Lien upon fixed assets of Willey or
         any of its Subsidiaries which secures Purchase Money Indebtedness, but
         only if such Lien shall at all times be confined solely to the fixed
         assets the purchase price of which was financed through the incurrence
         of the Purchase Money Indebtedness secured by such Lien.

         "REGISTRATION RIGHTS AGREEMENT" shall mean the Registration Rights
         Agreement substantially in the form of Exhibit F hereto, as the same
         may be amended, modified or supplemented from time to time.

         "REGULATION U" shall mean Regulation U of the Board of Governors of the
         Federal Reserve System, as the same is from time to time in effect, and
         all rulings and interpretations thereunder or thereof.

         "REQUIREMENTS OF LAW" shall mean as to any Person, the certificate of
         incorporation and by-laws or other organizational or governing
         documents of such Person, and any law, treaty, rule, regulation, right,
         privilege, qualification, license or franchise or determination of an
         arbitrator or a court or other Governmental Authority, in each case
         applicable or binding upon such Person or any of its property or to
         which such Person or any of its property is subject or pertaining to
         any or all of the transactions contemplated or referred to herein.

         "RESTRICTED JUNIOR PAYMENT" shall mean: (i) any dividend or other
         distribution, direct or indirect, on account of any shares of any class
         of stock or other equity security of, or ownership interest in, Willey
         or any Subsidiary thereof now or hereafter outstanding, except a
         dividend payable solely in shares of that class of stock to the holders
         of that class; (ii) any redemption, conversion, exchange, retirement,
         sinking fund or similar payment, purchase or other acquisition for
         value, direct or indirect, of any shares of any class of stock or other
         equity security of, or ownership interest in, Willey or any Subsidiary
         thereof now or hereafter outstanding; (iii) any payment or prepayment
         of interest on, principal of, premium, if any, redemption, conversion,

                                       10
<PAGE>
         exchange, purchase, retirement, defeasance, sinking fund or similar
         payment with respect to, any Indebtedness subordinated to the
         Obligations; and (iv) any payment made to retire, or to obtain the
         surrender of, any outstanding warrants, options or other rights to
         acquire shares of any class of stock or other equity security of, or
         ownership interest in, Willey or any Subsidiary thereof now or
         hereafter outstanding other than pursuant to the Warrants or in
         connection with transactions relating to the Warrants or Put Notes (as
         such term is defined in the Warrants).

         "SEC" shall mean the Securities and Exchange Commission or any similar
         agency then having jurisdiction to enforce the Securities Act.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, and
         the rules and regulations of the SEC thereunder.

         "SELLER NOTES" shall have the meaning given in the Senior Credit
         Agreement as in effect on the Closing Date.

         "SENIOR CREDIT AGREEMENT" shall mean the credit agreement dated as of
         January 11, 2001 among Willey and Fleet Capital Corporation, as amended
         from time to time in accordance with its terms and the terms of Section
         3.4.2 of the Subordination Agreement. References to the "Senior Credit
         Agreement as in effect on the Closing Date" shall mean and refer to the
         Senior Credit Agreement as amended through the amendments contained in
         the Second Amendment and Waiver Agreement, dated the date hereof,
         between Willey and Fleet Capital Corporation.

         "SENIOR DEBT" has the meaning given to "Bank Indebtedness" in the
         Subordination Agreement.

         "SENIOR DOCUMENTS" shall mean "Bank Documents" as defined in the
         Subordination Agreement.

         "SENIOR LENDERS" shall mean each Person that is or shall become a
         Lender under the Senior Credit Agreement for so long as such Person
         shall be a party to that agreement.

         "SUBORDINATION AGREEMENT" shall mean a subordination and intercreditor
         agreement to be entered into by CMII, Willey and Fleet Capital
         Corporation, which agreement shall be substantially in the form of
         Exhibit D, as such agreement may be amended, modified or supplemented
         from time to time in accordance with its terms.

         "SUBSIDIARY" shall mean, with respect to any Person, any corporation,
         partnership, association or other business entity of which more than
         fifty percent (50%) of the total voting power of shares of stock (or
         equivalent ownership or controlling interest) 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 that Person or one or more of
         the other Subsidiaries of that Person or a combination thereof.

                                       11
<PAGE>
         "SUBSIDIARY GUARANTEE" shall mean the guarantee substantially in the
         form attached hereto as Exhibit G executed and delivered by each
         Subsidiary of Willey at the Closing, as the same shall be amended and
         modified from time to time in accordance with its terms.

         "TAXES" shall have the meaning assigned to that term in Section 2.6.

         "TOTAL DEBT" shall mean, as at any date of determination, the aggregate
         stated balance sheet amount of all Indebtedness for Money Borrowed of
         Willey and its Subsidiaries, including without limitation, the Senior
         Debt, the Notes and Capitalized Lease Obligations, determined on a
         consolidated basis in accordance with GAAP.

         "TRANSACTION DOCUMENTS" shall mean, collectively, this Agreement, the
         Notes, the Warrants, the Registration Rights Agreement, and the
         Subordination Agreement (and each other agreement entered into between
         any Issuer Party and CMII with respect to the payment of fees or
         otherwise in connection with any of the foregoing).

         "WARRANTS" shall mean the warrants to purchase shares of common stock
         of BPG to be issued pursuant to Section 2.1 substantially in the form
         of Exhibit E hereto, as the same may be amended, modified or
         supplemented from time to time.

         "WARRANT SHARES" shall mean the shares of common stock of BPG issuable
         upon the exercise of the Warrants.

         "WILLEY" shall have the meaning assigned to such term in the preamble
         hereto.

1.2      Accounting Terms

         Except as otherwise expressly provided herein, all terms of an
         accounting or financial nature shall be construed in accordance with
         GAAP; provided that, if Willey notifies CMII that Willey requests an
         amendment to any provision hereof to eliminate the effect of any change
         occurring after the date hereof in GAAP or in the application thereof
         on the operation of such provision (or if CMII notifies Willey that
         CMII requests an amendment to any provision hereof for such purpose),
         regardless of whether any such notice is given before or after such
         change in GAAP or in the application thereof, then such provision shall
         be interpreted on the basis of GAAP as in effect and applied
         immediately before such change shall have become effective until such
         notice shall have been withdrawn or such provision amended in
         accordance herewith.

1.3      Knowledge of an Issuer Party

         All references to the knowledge of an Issuer Party or to facts known by
         an Issuer Party shall mean actual knowledge or notice of any officer of
         such Issuer Party or any Subsidiary or division thereof.

                                       12
<PAGE>
1.4      Definitional Provisions

         References in the Transaction Documents to any agreement or contract,
         or section or provision thereof or definition contained therein shall
         mean and be a reference to such agreement or contract, or correlative
         section, provision or definition as amended, amended and restated,
         refinanced, supplemented or otherwise modified from time to time in
         accordance with its terms.

2.       PURCHASE AND SALE OF NOTES AND WARRANTS

2.1      Purchase and Sale of the Notes and Warrants

                  (a)      Subject to the terms and conditions herein set forth,
                           Willey agrees that it will issue and sell to CMII,
                           and CMII agrees that it will acquire from Willey on
                           the Closing Date, the Notes in the aggregate original
                           principal amount of US$5,000,000 in substantially the
                           form attached hereto as Exhibit A, appropriately
                           completed in conformity herewith, the purchase price
                           for which shall be US$4,500,000;

                  (b)      Subject to the terms and conditions herein set forth
                           and in the Warrants, BPG agrees that it will issue
                           and sell to CMII and CMII agrees that it will acquire
                           from BPG on the Closing Date for the purchase price
                           of $500,000 and in consideration for the purchase of
                           the Notes, the Warrants for the purchase of, 405,000
                           shares of common stock of BPG (subject to adjustment
                           as set forth in the Warrant) at a price of US$0.01
                           per share (subject to adjustment as set forth in the
                           Warrant) (the "EXERCISE PRICE"). The Warrants are
                           being issued substantially in the form of Exhibit E
                           hereto. The holders of Warrant Shares will be
                           entitled to the benefits of the Registration Rights
                           Agreement; and

                  (c)      Each of Willey, BPG and CMII acknowledges that the
                           purchase prices set forth above for each of the Notes
                           and the Warrants represent their relative fair market
                           values, and agree to be bound by this allocation for
                           all tax purposes pursuant to Treasury Regulation
                           Section 1.1273-2(h).

2.2      Fees and Closing; Placement Fee

         On the Closing Date, Willey shall pay to CMII a placement fee equal to
         US$75,000. In addition, on the Closing Date, Willey shall pay or
         reimburse all of CMII's reasonable out-of-pocket expenses (including
         reasonable lawyers' fees, charges and disbursements and reasonable
         consultants' fees and expenses) incurred in connection with the
         transactions described herein. All payments made pursuant to this
         Section 2.2 shall be made by wire transfer of immediately available
         funds to an account or accounts designated by CMII.

                                       13
<PAGE>
2.3      Closing

         The purchase and issuance of the Notes and the Warrants shall take
         place at the closing (the "CLOSING") to be held at the offices of
         Clifford Chance Rogers & Wells LLP in New York City, on October 22,
         2001, or at such other time and place as the parties may agree upon
         (the date and time of the Closing, the "CLOSING DATE"). On the Closing
         Date, (a) Willey shall deliver its Note(s) to CMII against delivery by
         CMII to Willey of the purchase price therefor, and (b) BPG shall
         deliver the Warrants to CMII against delivery by CMII to BPG of the
         purchase price therefor, in each case such purchase price to be paid by
         wire transfer of immediately available funds to an account or accounts
         specified in writing by Willey or BPG, as applicable.

2.4      Financial Accounting Positions; Tax Reporting

         Each of the parties hereto agrees to take reporting and other positions
         with respect to the Notes and Warrants that are consistent with the
         purchase price of the Notes and Warrants set forth herein for all
         financial accounting purposes, unless otherwise required by applicable
         GAAP or SEC rules. Each of the parties to this Agreement agrees to take
         reporting and other positions with respect to the Notes and Warrants
         that are consistent with the purchase price of the Notes and Warrants
         set forth herein for all other purposes, including, without limitation,
         for all federal, state and local tax purposes.

2.5      Payments

         The Issuer Parties shall make all payments under the Transaction
         Documents irrespective of any right of counterclaim or set-off. Unless
         otherwise stated therein, the Issuer Parties shall make all such
         payments not later than 1:00 p.m. (New York City time) on the day when
         due in U.S. Dollars to the bank account most recently designated by
         CMII (by at least two Business Days' prior notice) by a wire transfer
         of immediately available funds, with payments being received by CMII
         after such time being deemed to have been received on the next
         succeeding Business Day. Whenever any payment under any of the
         Transaction Documents is stated to be due on a day other than a
         Business Day, such payment shall be due on the next succeeding Business
         Day.

2.6      Taxes, Etc.

                  (a)      Any and all payments by each Issuer Party under any
                           Transaction Document shall be made, in accordance
                           with Section 2.5 of this Agreement, free and clear of
                           and without deduction for any and all present or
                           future taxes, levies, imposts, deductions, charges or
                           withholdings, and all liabilities with respect
                           thereto, excluding, in the case of CMII, net income
                           taxes that are imposed by the United States and
                           franchise taxes and net income and/or capital gain
                           taxes that are imposed on CMII by the state or
                           foreign jurisdiction under the laws of which CMII is
                           organized or any political subdivision thereof or in
                           which CMII's lending

                                       14
<PAGE>
                           office is located or by a jurisdiction as a result of
                           a present, former or future connection with CMII
                           (other than a connection resulting from or
                           attributable to such Person having executed,
                           delivered or performed its obligations or received a
                           payment under, or enforced, this Agreement) or any
                           branch profits tax imposed by the United States or
                           any similar tax imposed by any other jurisdiction in
                           which CMII is located (all such non-excluded taxes,
                           levies, imposts, deductions, charges, withholdings
                           and liabilities being referred to in this Section 2.6
                           as "TAXES"). If any Issuer Party shall be required by
                           law to deduct any Taxes from or in respect of any sum
                           payable under any of the Transaction Documents to
                           CMII, (i) the sum payable shall be increased by such
                           Issuer Party as may be necessary so that after making
                           all required deductions (including deductions
                           applicable to additional sums payable under this
                           Section) CMII receives an amount equal to the sum it
                           would have received had no such deductions been made,
                           (ii) such Issuer Party shall make such deductions and
                           withholding and (iii) such Issuer Party shall pay the
                           full amount deducted to the relevant taxation
                           authority or other authority in accordance with
                           applicable law.

                  (b)      In addition, each Issuer Party shall pay any present
                           or future stamp, documentary, excise, property or
                           similar taxes, charges or levies that arise from any
                           payment made by such Issuer Party under any of the
                           Transaction Documents or from the execution, delivery
                           or registration of, or otherwise with respect to, any
                           of the Transaction Documents (referred to in this
                           Section 2.6 as "OTHER TAXES").

                  (c)      Each Issuer Party shall indemnify CMII for the full
                           amount of Taxes and Other Taxes, and for the full
                           amount of Taxes and Other Taxes imposed by any
                           jurisdiction on amounts payable under this Section,
                           paid by CMII and any liability (including penalties,
                           additions to tax, interest and expenses but excluding
                           penalties, additions to tax, interest and expenses
                           caused by the gross negligence or willful misconduct
                           of CMII) arising therefrom or with respect thereto.
                           This indemnification shall be made within 30 days
                           from the date CMII makes written demand therefor.

                  (d)      Within 30 days after the date of any payment of Taxes
                           by or on behalf of any Issuer Party, such Issuer
                           Party shall furnish to CMII, at its address referred
                           to in Section 10.2, the original receipt of payment
                           thereof or a certified copy of such receipt. In the
                           case of any payment under any Transaction Document by
                           or on behalf of any Issuer Party through an account
                           or branch outside the United States or on behalf of
                           such Issuer Party by a payor that is not a United
                           States person, if such Issuer Party determines that
                           no Taxes are payable in respect thereof, such Issuer
                           Party shall furnish, or shall cause such payor to
                           furnish, to CMII, at such address, an opinion of
                           counsel acceptable to CMII stating that such payment
                           is exempt from Taxes. For purposes of this paragraph
                           (d) and Section 2.6(e), the

                                       15
<PAGE>
                           terms "UNITED STATES" and "UNITED STATES PERSON"
                           shall have the meanings specified in Section 7701 of
                           the Internal Revenue Code.

                  (e)      CMII (and any successor or transferee of CMII
                           organized under the laws of a jurisdiction outside
                           the United States) shall, on or prior to the date of
                           its execution and delivery of this Agreement as at
                           the date hereof, and in the case of CMII or any
                           successor or transferee of CMII after the date hereof
                           and as soon as practicable thereafter (and from time
                           to time thereafter if requested in writing by any
                           Issuer Party at the time or times prescribed by law,
                           but only so long thereafter as it remains lawfully
                           able to do so), provide such Issuer Party with
                           Internal Revenue Service form W8-IMY, W8-BEN and/or
                           W8-ECI, as appropriate, or any successor form[s]
                           prescribed by the Internal Revenue Service,
                           certifying that the beneficial owner of the Notes is
                           exempt from or is entitled to a reduced rate of
                           United States withholding tax on interest payments on
                           the Notes. If the forms provided by such Person at
                           the time it first becomes a party to this Agreement
                           indicate a United States interest withholding tax
                           rate in excess of zero, withholding tax at such rate
                           shall be considered excluded from Taxes unless and
                           until it provides the appropriate forms certifying
                           that a lesser rate applies, whereupon withholding tax
                           at such lesser rate shall be considered excluded from
                           Taxes only for periods governed by such forms;
                           provided, however, that, if at the date of the
                           succession or transfer pursuant to which such Person
                           becomes a party to this Agreement, its immediate
                           predecessor was entitled to payments under Section
                           2.6(a) in respect of United States withholding tax
                           with respect to interest paid at such date, then, to
                           such extent, the term "Taxes" shall include (in
                           addition to withholding taxes that may be imposed in
                           the future or other amounts otherwise includable in
                           Taxes) United States withholding tax, if any,
                           applicable with respect to the successor/transferee
                           on such date. If any form or document referred to in
                           this paragraph (e) and requested by any Issuer Party
                           pursuant to this paragraph (e) requires the
                           disclosure of information, other than information
                           necessary to compute the tax payable and information
                           required by Internal Revenue Service forms W8-IMY,
                           W8-BEN and/or W8-ECI (including any amended or
                           successor forms) that the provider reasonably
                           considers to be confidential, the provider shall give
                           notice thereof to such Issuer Party and shall not be
                           obligated to include in such form or document such
                           confidential information, provided that if the
                           failure to provide such information results in the
                           imposition of United States withholding tax at a rate
                           in excess of the rate at which such tax would be
                           imposed if such information were provided, then such
                           excess withholding tax shall be considered excluded
                           from Taxes.

                  (f)      For any period with respect to which CMII or any
                           successor or transferee of CMII has failed to provide
                           any Issuer Party with the appropriate form described
                           in

                                       16
<PAGE>
                           Section 2.6(e) (other than if such failure is due to
                           a change in law occurring after the date on which a
                           form originally was required to be provided or if
                           such form otherwise is not required under Section
                           2.6(e)), such Person shall not be entitled to
                           indemnification under Section 2.6(a) or (c) with
                           respect to Taxes imposed by the United States
                           relating to interest payments on the Notes of such
                           Issuer Party; provided, however, that should such
                           Person become subject to Taxes because of its failure
                           to deliver a form required hereunder, once such forms
                           are delivered to the relevant Issuer Party, such
                           Issuer Party shall take such reasonable steps as such
                           Person shall reasonably request to assist such Person
                           to recover such Taxes.

                  (g)      If CMII receives a refund for (or determines that
                           there has been an overpayment of) any Taxes or other
                           amounts as to which CMII has been indemnified
                           pursuant to Section 2.6(c) or on account of which
                           additional amounts have been paid pursuant to Section
                           2.6(a), CMII shall promptly notify the relevant
                           Issuer Party and pay over such refund or overpayment
                           to such Issuer Party (but only to the extent CMII has
                           been indemnified pursuant to Section 2.6(c)) or of
                           additional amounts paid by such Issuer Party under
                           this Section 2.6 with respect to Taxes or other
                           amounts on account of which additional amounts have
                           been paid) net of all out-of-pocket expenses of CMII
                           and without interest (other than any interest
                           actually received thereon from the respective
                           Governmental Authority with respect to such refund
                           net of any Taxes estimated by CMII to be payable by
                           it in respect of such interest). If, at any time
                           after CMII makes a payment to any Issuer Party
                           pursuant to the preceding sentence, CMII determines
                           that it was not entitled to the full amount of any
                           refund or overpayment (together with interest thereon
                           (if any)) reimbursed to such Issuer Party, such
                           Issuer Party upon the demand of CMII shall promptly
                           pay to CMII the amounts so refunded or overpaid and
                           paid over to such Issuer Party (plus any penalties,
                           interest or other charges imposed by the relevant
                           Governmental Authority and attributable solely to the
                           amount of such refund or overpayment paid over to
                           such Issuer Party). If any Issuer Party determines in
                           good faith that a reasonable basis exists for
                           contesting a Tax or Other Tax, and if it so requests,
                           CMII shall cooperate in challenging such Tax or Other
                           Tax at such Issuer Party's expense. If CMII becomes
                           aware that it is entitled to claim a refund in
                           respect of a Tax or Other Tax as to which it has been
                           indemnified by an Issuer Party pursuant to Section
                           2.6(c) or with respect to which an Issuer Party paid
                           additional amounts pursuant to Section 2.6(a), it
                           shall promptly notify the Issuer Parties of the
                           availability of such refund claim and shall, within
                           30 days after receipt of a request by such Issuer
                           Party, make a claim to the applicable Governmental
                           Authority for such refund at such Issuer Party's
                           expense. Nothing contained in this Section 2.6(g)
                           shall require CMII to make available its tax returns
                           (or any other information relating to its taxes that
                           it deems confidential) to any Issuer, Party or any
                           other Person.

                                       17
<PAGE>
                  (h)      If an Issuer Party is required to make additional
                           payments or indemnification payments pursuant to this
                           Section 2.6 to or on account of a party to this
                           Agreement other than CMII or an Affiliate thereof as
                           a result of a change in law or treaty occurring after
                           such party first becomes a party to this Agreement or
                           designates a new lending office, then such party
                           will, at the Issuer Party's request, change the
                           jurisdiction of its lending office, provided that (i)
                           the Issuer Party has a reasonable basis for
                           determining that such change will eliminate or reduce
                           any additional or indemnification payment which may
                           thereafter accrue and (ii) such party determines in
                           its discretion that such change is not
                           disadvantageous to it.

3.       CONDITIONS TO OBLIGATIONS OF CMII TO PURCHASE THE NOTES AND WARRANTS

         The obligation of CMII to purchase the Notes and Warrants, to pay the
         purchase price therefor on the Closing Date and to perform any of its
         obligations hereunder, shall be subject to the satisfaction as
         determined by, or waived by, CMII of the conditions set forth in this
         Section 3 on or before the Closing Date. CMII shall not be obligated to
         purchase any Note unless the purchase and sale of the Warrants occurs
         simultaneously therewith and shall not be obligated to purchase the
         Warrants unless the purchase and sale of the Notes occurs
         simultaneously therewith.

3.1      Representations and Warranties

         The representations and warranties contained in Section 5 hereof shall
         be true and correct at and as of the Closing Date, as if made at and as
         of such date.

3.2      Compliance with this Agreement

         The Issuer Parties shall have performed and complied in all material
         respects with all of their agreements and satisfied the conditions set
         forth or contemplated herein that are required to be performed or
         complied with or satisfied by each of them, respectively, on or before
         the Closing Date.

3.3      Secretary's Certificates

         CMII shall have received certificates from each of BPG and Willey, each
         dated the Closing Date, and signed by an officer thereof, certifying
         (a) that the attached copies of its Certificate of Incorporation and
         By-laws and resolutions of the Board of Directors approving the
         Transaction Documents to which it is a party and the transactions
         contemplated hereby and thereby, are all true, complete and correct and
         remain unamended and in full force and effect, and (b) as to the
         incumbency and specimen signature of each officer thereof executing any
         Transaction Document or any other document delivered in connection
         herewith on behalf thereof.

                                       18
<PAGE>
3.4      Documents; Due Diligence

         CMII shall have received prior to the Closing Date true, complete and
         correct copies of such agreements, schedules, exhibits, certificates,
         documents, financial information and filings as it may reasonably
         request in connection with or relating to the transactions contemplated
         hereby, all in form and substance satisfactory to CMII; and shall have
         completed, to its reasonable satisfaction, all legal and financial due
         diligence of BPG and Willey.

3.5      Purchase of Notes and Warrants Permitted by Applicable Laws

         The acquisition of and payment for the Notes and Warrants to be
         acquired by CMII hereunder and the consummation of the transactions
         contemplated hereby (a) shall not be prohibited by any Requirements of
         Law, (b) shall not subject CMII to any penalty or other onerous
         condition under or pursuant to any Requirement of Law, and (c) shall be
         permitted by all Requirements of Law to which CMII or the transactions
         contemplated by or referred to herein or in the Transaction Documents
         are subject; and CMII shall have received such certificates or other
         evidence as it may reasonably request to establish compliance with this
         condition.

3.6      Opinion of Counsel

         CMII shall have received opinions of outside counsel to the Issuer
         Parties, dated as of the Closing Date, relating to the transactions
         contemplated by or referred to herein, in substantially the form of
         Exhibit C attached hereto.

3.7      Approval Of Counsel To CMII

         All actions and proceedings hereunder and all agreements, schedules,
         exhibits, certificates, financial information, filings and other
         documents required to be delivered by Willey and BPG or in connection
         with the consummation of the transactions contemplated hereby, and all
         other related matters, shall have been in form and substance acceptable
         to Clifford Chance Rogers & Wells LLP, counsel to CMII, in its
         reasonable judgment (including, without limitation, the opinion of
         counsel referred to in Section 3.6 hereof).

3.8      Consents and Approvals

         All consents, exemptions, authorizations, or other actions by, or
         notices to, or filings with, Governmental Authorities and other Persons
         in respect of all Requirements of Law and with respect to the
         Contractual Obligations of Willey and BPG necessary in connection with
         the execution, delivery or performance (including, without limitation,
         the payment of interest on the Notes and the issuance of the shares of
         common stock of BPG upon the exercise of the Warrants) by Willey and
         BPG or enforcement against Willey and BPG of the Transaction Documents
         and the Related Transaction Documents shall have been obtained and be
         in full force and effect, and CMII shall have been furnished with
         appropriate evidence thereof, and all

                                       19
<PAGE>
         waiting periods shall have lapsed without extension or the imposition
         of any conditions or restrictions.

3.9      No Material Judgment or Order

         There shall not be on the Closing Date any judgment or order of a court
         of competent jurisdiction or any ruling of any Governmental Authority
         or any condition imposed under any Requirement of Law that, in the
         judgment of CMII, would prohibit the purchase of the Notes or Warrants
         hereunder or subject CMII to any penalty or other onerous condition if
         the Notes or Warrants were to be purchased hereunder.

3.10     Good Standing Certificates

         CMII shall have received as of the Closing Date, good standing and
         franchise (or similar) tax status certificates for BPG and Willey,
         dated a recent date, from each of their respective jurisdictions of
         incorporation or organization and all other jurisdictions where they
         are required to be qualified as foreign corporations, in each case in
         form and substance satisfactory to CMII.

3.11     No Material Adverse Change

         Since December 31, 2000 there has not been any material adverse change
         or any development that has caused a Material Adverse Effect and there
         has not been any material transaction entered into or any material
         transaction that is probable of being entered into by Willey or its
         Subsidiaries, other than transactions in the ordinary course of
         business, that could reasonably be expected to result in a Material
         Adverse Effect.

3.12     Warrants

         BPG shall have authorized and reserved for issuance to CMII that number
         of shares of its common stock necessary for the purpose of issuance to
         CMII upon conversion of the Warrants and shall have issued to CMII and
         CMII shall have received one or more Warrants to purchase not less than
         an aggregate of 405,000 shares of common stock of BPG (subject to
         adjustment as set forth in the Warrants).

3.13     Amendment of Senior Credit Agreement

         The Senior Credit Agreement shall have been amended by amendment in the
         form of Exhibit I.

3.14     Reserved

3.15     Notes

         CMII shall have received the duly executed Notes.

                                       20
<PAGE>
3.16     Subordination Agreement

         CMII shall have entered into the Subordination Agreement with Fleet
         Capital Corporation and Willey in the form of Exhibit D.

3.17     Fees

         The payment by Willey, by wire transfer of immediately available funds,
         of the placement fee referred to in Section 2.2 and the reasonable fees
         and expenses of Clifford Chance Rogers & Wells LLP, counsel to CMII,
         related to this transaction.

3.18     Reserved

3.19     Reserved

3.20     Registration Rights Agreement

         The Registration Rights Agreement shall have been duly executed and
         delivered by all Persons named as parties thereto.

3.21     Reserved

3.22     Disbursement Letter

         CMII shall have received a disbursement authorization letter for the
         disbursement of funds hereunder, from BPG and Willey in form and
         substance satisfactory to CMII.

3.23     Lien Searches

         CMII shall have received results of such lien searches as to Willey and
         BPG as it may have requested, the results of which shall be
         satisfactory to CMII.

3.24     Certificates

         CMII shall have received from a Financial Officer of Willey a
         certificate, in form and substance satisfactory to CMII, as to the
         solvency of Willey and a certificate from a Financial Officer of Willey
         as to the satisfaction of the condition listed in Section 3.1.

4.       Conditions to the Obligation of BPG and Willey to Issue and Sell the
         Notes and Warrants

         The respective obligations of BPG and Willey to issue and sell the
         Warrants and to issue and sell the Notes, and to perform their other
         respective obligations hereunder relating thereto shall be

                                       21
<PAGE>
         subject to the satisfaction as determined by, or waived by BPG and
         Willey, of the following conditions on or before the Closing Date:

4.1      Representations and Warranties

         The representations and warranties of CMII contained in Article 6
         hereof shall be true and correct at and as of the Closing Date in all
         material respects, as if made at and as of such date.

4.2      Compliance with this Agreement

         CMII shall have performed and complied with all of its agreements and
         conditions set forth or contemplated herein that are required to be
         performed or complied with by CMII on or before the Closing Date.

5.       REPRESENTATIONS AND WARRANTIES OF ISSUER PARTIES

         Each of Willey and BPG hereby represents and warrants, only as to
         itself (whether specifically named or referred to as an Issuer Party),
         to CMII (which representations and warranties shall survive the
         purchase and sale of the Notes and Warrants but which no Issuer Party
         shall have an obligation to update for any changes or events occurring
         after the Closing Date), both immediately prior to and after giving
         effect to the transactions contemplated by this Agreement, as follows:

5.1      Disclosure

         No representation or warranty of any Issuer Party contained in this
         Agreement, the financial statements referred to in Section 5.5, the
         other Transaction Documents or any other document, certificate or
         written statement furnished by any Issuer Party to CMII, taken as a
         whole, by or on behalf of any such Person for use in connection with
         the Transaction Documents contains any untrue statement of a material
         fact or omitted, or omits to state a material fact necessary in order
         to make the statements contained herein or therein not misleading in
         light of the circumstances in which the same were made.

5.2      No Material Adverse Effect

         Since December 31, 2000 there shall have occurred no Material Adverse
         Effect that has not been disclosed herein or in the attached Schedules.

5.3      No Default

         The consummation of the transactions contemplated by the Transaction
         Documents do not violate or conflict with any laws, rules, regulations
         or orders of any Governmental Authority or violate, conflict with,
         result in a breach of, or constitute a Default under any Contractual
         Obligation of any Issuer Party except if such violations, conflicts,
         breaches or Defaults have either been

                                       22
<PAGE>
         waived on or before the Closing Date or could not reasonably be
         expected to have, either individually or in the aggregate, a Material
         Adverse Effect.

5.4      Organization, Powers, Capitalization and Good Standing

                  (a)      Organization and Powers

                           Each of the Issuer Parties is a corporation duly
                           organized, validly existing and in good standing
                           under the laws of its jurisdiction of incorporation
                           or formation, as applicable (which jurisdiction is
                           set forth on Schedule 5.4(a)). Each of the Issuer
                           Parties has all requisite corporate power and
                           authority to own and operate its properties, to carry
                           on its business as now conducted and proposed to be
                           conducted, to enter into each Transaction Document to
                           which it is a party and to carry out the transactions
                           contemplated thereby.

                  (b)      Capitalization

                           The authorized equity securities and outstanding
                           options, warrants, conversion rights and similar
                           agreements for the purchase or issuance thereby of
                           each of the Issuer Parties is as set forth on
                           Schedule 5.4(b). All issued and outstanding shares of
                           capital stock of each of the Issuer Parties are duly
                           authorized and validly issued, fully paid and
                           nonassessable, and in the case of shares of capital
                           stock of Willey free and clear of all Liens other
                           than Liens in favor of the Senior Lenders. All issued
                           and outstanding shares of capital stock of the Issuer
                           Parties were issued in compliance in all material
                           respects with all applicable state and federal laws
                           concerning the issuance of securities. The capital
                           stock of Willey is owned by the stockholders of
                           Willey in the amounts set forth on Schedule 5.4(b).
                           No shares of the capital stock of any Issuer Party,
                           other than those described above, are issued and
                           outstanding. Except as provided in Schedule 5.4(b),
                           there are no preemptive or other outstanding rights,
                           options, warrants, conversion rights or similar
                           agreements or understandings for the purchase or
                           acquisition from any Issuer Party relating to any
                           shares of capital stock or other securities of any
                           such entity.

                  (c)      Binding Obligation

                           This Agreement is, and the other Transaction
                           Documents when executed and delivered will be, the
                           legally valid and binding obligations of the
                           applicable parties thereto, each enforceable against
                           each of such parties, as applicable, in accordance
                           with their respective terms except as limited by
                           bankruptcy, insolvency, reorganization, moratorium,
                           fraudulent conveyance or other similar laws affecting
                           creditors' rights generally and by general principles
                           of equity relating to enforceability.

                                       23
<PAGE>
                  (d)      Qualification

                           Willey is duly qualified and in good standing
                           wherever necessary to carry on its business and
                           operations, except in jurisdictions in which the
                           failure to be so qualified and in good standing could
                           not reasonably be expected to have a Material Adverse
                           Effect. All jurisdictions in which Willey is
                           qualified to do business are set forth on Schedule
                           5.4(d).

5.5      Financial Statements and Projections

         Except as set forth in Schedule 5.5, all financial statements
         concerning Willey that have been furnished to CMII pursuant to this
         Agreement, as listed below, have been prepared in accordance with GAAP
         consistently applied (except as disclosed therein), subject to year-end
         audit adjustments and the absence of footnotes in the case of unaudited
         interim financial statements, and such financial statements and the
         notes thereto disclose all material liabilities, direct or contingent,
         of the applicable Person, as of the dates thereof as required to be
         disclosed by GAAP.

                  (a)      The consolidated balance sheet at December 31, 2000
                           and the related statement of income of Willey and its
                           Subsidiaries, for the Fiscal Year then ended, audited
                           by Grant Thornton LLP.

                  (b)      The unaudited balance sheet at August 31, 2001 and
                           the related unaudited statement of income of Willey
                           and its Subsidiaries, for the eight month period then
                           ended.

        Willey has heretofore furnished to CMII the Projections attached as
        Schedule 5.5. The Projections are based upon what are believed to be (as
        of the date made) by management of Willey reasonable estimates and
        assumptions, all of which are believed to be (as of the Closing Date) by
        management of Willey reasonable in light of the conditions which existed
        at the time the Projections were made, have been prepared on the basis
        of the assumptions stated therein, and reflect as of the Closing Date
        the good faith estimate of Willey of the results of operations and other
        information projected therein, provided, that no representation is made
        that any of such assumptions will be correct or that any of the
        projected results will be realized.

                                       24
<PAGE>
5.6      Intellectual Property

         Willey owns, is licensed to use or otherwise has the right to use, all
         patents, trademarks, trade names, copyrights, technology, know-how and
         processes used in or necessary for the conduct of its business as
         currently conducted that are material to the Condition of Willey
         (collectively called "INTELLECTUAL PROPERTY") and all such Intellectual
         Property which is in the form of trademarks, service marks, patents and
         registered copyrights is identified on Schedule 5.6 and fully protected
         and/or duly and properly registered, filed or issued in the appropriate
         office and jurisdictions for such registrations, filings or issuances,
         except where the failure to effect such protection or registration
         could not reasonably be expected to have a Material Adverse Effect. To
         the knowledge of Willey, except as disclosed in Schedule 5.6, the use
         of such Intellectual Property by Willey, did not, does not and, has not
         been alleged by any Person to infringe on the rights of any Person
         except for such infringements which could not reasonably be expected to
         have a Material Adverse Effect.

5.7      Investigations, Audits, etc.

         Except as set forth on Schedule 5.7, there is no review or audit by the
         Internal Revenue Service concerning BPG or Willey pending, and, to the
         knowledge of any Issuer Party, there is no governmental investigation
         concerning the violation or possible violation of any law by any of BPG
         or Willey pending or threatened.

5.8      Employee Matters

         Except as set forth on Schedule 5.8, (a) neither Willey nor any of its
         employees is subject to any collective bargaining agreement, (b) no
         petition for certification or union election is pending with respect to
         the employees of Willey and no union or collective bargaining unit has
         sought such certification or recognition with respect to the employees
         of Willey and (c) there are no strikes, slowdowns, work stoppages or
         controversies pending or, to the best knowledge of Willey after due
         inquiry, threatened between Willey and its employees, other than
         employee grievances arising in the ordinary course of business that
         could not reasonably be expected to have, either individually or in the
         aggregate, a Material Adverse Effect. Except as set forth on Schedule
         5.8, Willey is not party to an employment contract, other than oral
         at-will employment arrangements.

5.9      Solvency

                  (a)      The fair saleable value of the businesses of Willey
                           on a going concern basis is not less than the amount
                           that will be required to be paid on or with respect
                           of the probable liability on the existing debts and
                           other liabilities (including contingent liabilities)
                           of Willey, as such debts and liabilities (including
                           contingent liabilities) become absolute and mature.

                  (b)      The assets of Willey do not constitute unreasonably
                           small capital for Willey to carry out its business as
                           now conducted and as proposed to be conducted
                           including

                                       25
<PAGE>
                           the capital needs of Willey taking into account the
                           particular capital requirements of the business
                           conducted by Willey and projected capital
                           requirements and capital availability thereof.

                  (c)      Willey does not intend to incur debts beyond its
                           ability to pay such debts as they become due (taking
                           into account the timing and amounts of cash to be
                           received by such Persons, and of amounts to be
                           payable on or with respect of debt of Willey).

5.10     Reserved

5.11     Use of Proceeds; Margin Regulations

         Willey is not engaged principally, or as one of its important
         activities, in the business of extending credit for the purpose of
         purchasing or carrying margin stock (within the meaning of Regulation
         U) and no part of the proceeds of the sale of the Notes or Warrants
         will be used to acquire any margin stock.

5.12     Litigation

         Except as set forth on Schedule 5.12, there are no legal actions,
         suits, proceedings, claims or disputes pending or to the knowledge of
         any Issuer Party threatened, at law, in equity, in arbitration or
         before any Governmental Authority against or affecting any Issuer Party
         or any of its Subsidiaries that could reasonably be expected to have a
         Material Adverse Effect. No injunction, writ, temporary restraining
         order, decree or any order of any nature has been issued by any court
         or other Governmental Authority against any Issuer Party purporting to
         enjoin or restrain the execution, delivery or performance of the
         Transaction Documents by any Issuer Party.

5.13     ERISA

         Provided that the representation and warranty in Section 6.5 is true
         and correct (including with respect to all assignees of CMII pursuant
         to Section 10.3) the execution and delivery of the Transaction
         Documents, the purchase and sale of the Notes and Warrants hereunder
         and the consummation of the transactions contemplated hereby and
         thereby will not result in any prohibited transaction within the
         meaning of Section 406 of ERISA or Section 4975 of the Internal Revenue
         Code.

5.14     Environmental Matters

         Except as described on Schedule 5.14, to the knowledge of each Issuer
         Party:

                  (a)      The property, assets and operations of the Issuer
                           Parties are and have been in compliance in all
                           material respects with all applicable Environmental
                           Laws; there

                                       26
<PAGE>
                           are no Hazardous Materials stored or otherwise
                           located in, on or under any of the property or assets
                           of any Issuer Party including the groundwater except
                           in compliance with applicable Environmental Laws or
                           as would not give rise to liability under
                           Environmental Law; and there have been no releases
                           or, to the knowledge of any Issuer Party, threatened
                           releases of Hazardous Materials in, on or under any
                           property adjoining any of the property or assets of
                           any Issuer Party and affecting the assets or
                           properties of any Issuer Party that have not been
                           remediated to the satisfaction of the appropriate
                           Governmental Authorities; in each case that could
                           reasonably be expected to have a Material Adverse
                           Effect.

                  (b)      None of the property, assets or operations of any
                           Issuer Party is the subject of any federal, state or
                           local investigation evaluating whether (i) any
                           remedial action is needed to respond to a release or
                           threatened release of any Hazardous Materials into
                           the environment or (ii) any release or threatened
                           release of any Hazardous Materials into the
                           environment is in contravention of any Environmental
                           Law; in each case that could reasonably be expected
                           to have a Material Adverse Effect.

                  (c)      No Issuer Party has received any notice or claim, nor
                           are there pending or, to the knowledge of any Issuer
                           Party, threatened or reasonably anticipated, lawsuits
                           or proceedings against it, with respect to violations
                           of an Environmental Law or in connection with the
                           presence of or exposure to any Hazardous Materials in
                           the environment or any release or threatened release
                           of any Hazardous Materials into the environment, and
                           no Issuer Party is or was the owner or operator of
                           any property that (i) pursuant to any Environmental
                           Law has been placed on any list of Hazardous
                           Materials disposal sites, including, without
                           limitation, the "National Priorities List" or
                           "CERCLIS List", (ii) has, or had, any underground
                           storage tanks located thereon, or (iii) has ever been
                           used as or for a waste disposal facility, a mine, a
                           gasoline service station or, other than for petroleum
                           substances stored in the ordinary course of business,
                           a petroleum products storage facility; in each case
                           that could reasonably be expected to have a Material
                           Adverse Effect.

                  (d)      No Issuer Party has any absolute or contingent
                           liability in connection with the presence either on
                           or off the property of any Issuer Party of any
                           Hazardous Materials in the environment or any release
                           or threatened release of any Hazardous Materials into
                           the environment; in each case that could reasonably
                           be expected to have a Material Adverse Effect.

        For the purposes of this Section 5.14, the term "PROPERTY" of any Issuer
        Party includes, without limitation, property owned, operated or leased
        by such Issuer Party. This Section 5.14 is the exclusive representation
        and warranty relating to Environmental Law and Hazardous Materials.

                                       27
<PAGE>
5.15     Investment Company/Government Regulations

         Willey is not an "investment company" within the meaning of the
         Investment Company Act of 1940, as amended. Willey is not subject to
         regulation under the Public Utility the Holding Company Act of 1935, as
         amended, the Federal Power Act, the Interstate Commerce Act, or to the
         knowledge of Willey, any federal or state statute or regulation
         limiting its ability to incur Indebtedness.

5.16     Reserved

5.17     Private Offering

         No form of general solicitation or general advertising was used by any
         Issuer Party or its representatives in connection with the offer or
         sale of the Notes or Warrants. Assuming the accuracy and validity of
         representations of CMII in Section 6.4 hereof, no registration of the
         Notes or Warrants pursuant to the provisions of the Securities Act or
         the state securities or "blue sky" laws will be required in connection
         with the offer, sale or issuance of the Notes or Warrants pursuant to
         this Agreement. Each Issuer Party covenants and agrees that neither it,
         nor anyone acting on its behalf, will offer or sell the Notes or
         Warrants or any other security so as to require the registration of the
         Notes or Warrants pursuant to the provisions of the Securities Act or
         any state securities or "blue sky" laws, unless such Notes or Warrants
         are so registered.

5.18     Broker's, Finder's or Similar Fees

         Except as set forth on Schedule 5.18, there are no brokerage
         commissions, finder's fees or similar fees or commissions payable in
         connection with the transactions contemplated under any of the
         Transaction Documents based on any agreement, arrangement or
         understanding with any Issuer Party or any of its Subsidiaries.

5.19     Employee Benefit Plans

         No Issuer Party nor any ERISA Affiliate has any actual or contingent,
         direct or indirect, liability in respect of any employee benefit plan
         (as defined in Section 3(3) of ERISA) or other material employee
         benefit arrangement, other than in respect of any such plan or
         arrangement listed on Schedule 5.19 (collectively, the "PLANS"). Each
         Issuer Party has made available to CMII accurate and complete copies of
         all of the Plans applicable to it. All of the Plans are in substantial
         compliance with all applicable Requirements of Law. No "prohibited
         transaction," as defined in Section 406 of ERISA and Section 4975 of
         the Internal Revenue Code, has occurred in respect of any of the Plans
         that has, or could reasonably be expected to, result in excise taxes or
         other penalties or liabilities that could reasonably be expected to
         have a Material Adverse Effect, and no civil or criminal action brought
         pursuant to Part 5 of Title I of ERISA is pending or, to the best
         knowledge of each Issuer Party, is threatened against any fiduciary of
         any such Plan. No Plan: (i) is subject to Title IV of ERISA, or is
         otherwise a Defined Benefit Plan, or is a multiple employer plan
         (within the meaning of Section 413(c) of the Internal Revenue Code);

                                       28
<PAGE>
         or (ii) provides for post-retirement welfare benefits (other than the
         continuation coverage requirements of the Consolidated Omnibus
         Reconciliation Act of 1985, as amended) or, except as listed on
         Schedule 5.19, a "parachute payment" (within the meaning of Section
         280G(b) of the Internal Revenue Code).

5.20     Insurance

         Schedule 5.20 accurately summarizes or lists all of the insurance
         policies or programs of Willey. All such policies are in full force and
         effect, and are in compliance with the criteria set forth in Section
         8.1(b). All such policies will remain in full force and effect and will
         not in any way be affected by, or terminate or lapse by reason of the
         consummation of any of the transactions contemplated by any of the
         Transaction Documents.

5.21     Investments

         Except as set forth on Schedule 5.21 Willey holds no Investments.

5.22     Other Documents

         Each Issuer Party has made available to CMII true, complete and correct
         copies of all material agreements, schedules, exhibits, certificates,
         financial information, filings and other documents relating to such
         Issuer Party, and all amendments and modifications thereto as requested
         by CMII. Such documents (including the Senior Credit Agreement)
         comprise a full and complete copy of all material agreements and
         understandings between the parties thereto with respect to the subject
         matter thereof and all transactions related thereto, and there are no
         material agreements or understandings, oral or written, or side
         agreements not contained therein that relate to or modify the substance
         thereof. Except as set forth in Schedule 5.22, and except for such as
         could not reasonably be expected to have a Material Adverse Effect,
         each of such material agreements to which it is a party has been duly
         authorized by all necessary corporate action on the part of such Issuer
         Party, was validly executed and delivered thereby and is the legal,
         valid and binding obligation thereof, enforceable in accordance with
         its terms, except as limited by bankruptcy, insolvency, reorganization,
         moratorium, fraudulent conveyance or other similar laws affecting
         creditors' rights generally and by general principles of equity
         relating to enforceability, and except for such as could not reasonably
         be expected to have a Material Adverse Effect. Except for such as could
         not reasonably be expected to have a Material Adverse Effect, each of
         such material agreements is in full force and effect, and none of their
         provisions have been waived by any party thereto.

                                       29

<PAGE>

6.    REPRESENTATIONS AND WARRANTIES OF CMII

      CMII hereby represents and warrants as follows:

6.1   Authorization; No Contravention

      The execution, delivery and performance by it of this Agreement and the
      other Transaction Documents to which it is a party and the consummation of
      the transactions contemplated hereby, including, without limitation, the
      purchase of the Notes and the Warrants: (a) is within its limited
      partnership power and authority and has been duly authorized by all
      necessary limited partnership action; (b) does not contravene the terms of
      its organizational documents or any amendment thereof; and (c) will not
      violate, conflict with or result in any breach or contravention of any of
      its Contractual Obligations, or any order or decree directly relating to
      it.

6.2   Binding Effect

      This Agreement and the other Transaction Documents to which it is a party
      have been duly executed and delivered by it and constitute its legal,
      valid and binding obligations, enforceable against it in accordance with
      their terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, or similar laws affecting the enforcement of
      creditors' rights generally or by equitable principles relating to
      enforceability.

6.3   No Legal Bar

      The execution, delivery and performance of this Agreement by it will not
      violate any Requirement of Law applicable to it.

6.4   Purchase for Own Account

      The Notes and Warrants to be acquired by it pursuant to this Agreement and
      the shares of common stock underlying the Warrants are being or will be
      acquired for its own account and with no present intention of distributing
      or reselling such Notes, Warrants and shares of common stock or any part
      thereof without prejudice, however, to its right at all times to sell or
      otherwise dispose of all or any part of the Warrants and the shares of
      common stock underlying the Warrants under an effective registration
      statement under the Securities Act, or the Notes, the Warrants and such
      shares of common stock under an exemption from such registration available
      under the Securities Act, and subject, nevertheless, to the disposition of
      its property being at all times within its control, subject to the terms
      and conditions of the Transaction Documents. If CMII should in the future
      decide to dispose of the Notes, the Warrants and/or the underlying shares
      of common stock, CMII understands and agrees that it may do so only in
      compliance with the Securities Act and applicable state securities laws,
      as then in effect, and subject to any applicable provisions of any
      Transaction Documents to which CMII is a party or is bound. CMII agrees to
      the imprinting of a legend on each of the Notes to the following effect:
      "THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS

                                       30
<PAGE>

      AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
      OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS
      OF SUCH ACT AND SUCH LAWS." Also, CMII agrees to the imprinting of a
      legend on the Warrants (and the common stock or other securities
      underlying the Warrants) to the following effect: "THIS WARRANT AND THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN
      VIOLATION OF SUCH ACT, THE RULES AND REGULATIONS THEREUNDER OR THE
      PROVISIONS OF THIS WARRANT."

6.5   ERISA

      No part of the funds used by it to purchase the Notes or the Warrants
      hereunder constitutes assets of any "employee benefit plan" (as defined in
      Section 3(3) of ERISA) or "plan" (as defined in Section 4975 of the
      Internal Revenue Code) listed on Schedule 5.19.

6.6   Broker's, Finder's or Similar Fees

      There are no brokerage commissions, finder's fees or similar fees or
      commissions payable in connection with the transactions contemplated
      hereby based on any agreement, arrangement or understanding with it or any
      action taken by it.

6.7   Governmental Authorization; Third Party Consent

      No approval, consent, compliance, exemption, authorization, or other
      action by, or notice to, or filing with, any Governmental Authority or any
      other Person in respect of any Requirement of Law, and no lapse of a
      waiting period under a Requirement of Law, is necessary or required in
      connection with the execution, delivery or performance by it or
      enforcement against it of this Agreement or the transactions contemplated
      hereby.

6.8   Accredited Investor

      It is an "accredited investor" within the meaning of Rule 501(a)
      promulgated under the Securities Act of 1933, as amended.

6.9   Litigation

      No injunction, writ, temporary restraining order, decree or any order of
      any nature has been issued by any court or other Governmental Authority
      against CMII purporting to enjoin or restrain the execution, delivery or
      performance of the Transaction Documents by CMII.

                                       31
<PAGE>

7.    INDEMNIFICATION

7.1   Indemnification

      In addition to all other sums due hereunder or provided for in this
      Agreement, each Issuer Party agrees, severally and not jointly, to
      indemnify and hold harmless CMII and its Affiliates and each of its
      officers, directors, agents, advisors, employees, subsidiaries, partners,
      attorneys, accountants and controlling persons (each, an "INDEMNIFIED
      PARTY") to the fullest extent permitted by law from and against any and
      all losses, claims, damages, costs, expenses (including, without
      limitation, reasonable fees, disbursements and other charges of counsel
      incurred by an Indemnified Party in any action or proceeding between such
      Issuer Party and such Indemnified Party (or Indemnified Parties) or
      between an Indemnified Party (or Indemnified Parties) and any third party
      or otherwise) or other liabilities, losses or diminution in value
      (collectively, "LIABILITIES") (1) resulting from or arising out of any
      breach of any representation or warranty of such Issuer Party or (2) any
      legal, administrative or other actions (including actions brought by CMII
      or any equity holders of such Issuer Party or derivative actions brought
      by any Person claiming through or in the name of such Issuer Party),
      proceedings or investigations (whether formal or informal), or written
      threats thereof, based upon, relating to or arising out of this Agreement,
      the transactions contemplated hereby or any Indemnified Party's role
      herein or in the transactions contemplated hereby; provided, however, that
      (x) no Issuer Party shall be obligated to indemnify an Indemnified Party
      hereunder to the extent that any Liabilities are determined by a court of
      competent jurisdiction to have been the result of the gross negligence or
      willful misconduct of such Indemnified Party or the breach of a
      Transaction Document by an Indemnified Party (not resulting from a breach
      or misrepresentation by any Issuer Party) and (y) BPG shall have no
      liability under clause (2) of this Section 7.1, except to the extent that
      the action, proceeding or investigation referred to therein pertains to
      the Indemnified Party in its capacity as the holder of a Warrant or Issued
      Warrant Share. In connection with the obligation of each Issuer Party to
      indemnify for expenses as set forth above, such Issuer Party further
      agrees, upon presentation of appropriate invoices containing reasonable
      detail, promptly to (and in no event later than 30 days after the
      presentation of such invoice(s)) reimburse each Indemnified Party for all
      such reasonable expenses (including fees, disbursements and other charges
      of counsel incurred by an Indemnified Party in any action or proceeding
      between such Issuer Party and such Indemnified Party (or Indemnified
      Parties) or between an Indemnified Party (or Indemnified Parties) and any
      third party or otherwise) as they are incurred by such Indemnified Party;
      provided, however, that if an Indemnified Party is reimbursed hereunder
      for any expenses, such reimbursement of expenses shall be refunded to the
      extent it is finally judicially determined that the Liabilities in
      question resulted primarily from (i) the willful misconduct or gross
      negligence of such Indemnified Party or (ii) the breach by such
      Indemnified Party of any representation, warranty, covenant or other
      agreement of such Indemnified Party contained in this Agreement or any
      other Transaction Document.

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<PAGE>

7.2   Notification

      Each Indemnified Party under this Section 7 will, promptly after the
      receipt of notice of the commencement of any action, investigation, claim
      or other proceeding against such Indemnified Party in respect of which
      indemnity may be sought from the relevant Issuer Party under this Section
      7, notify such Issuer Party in writing of the commencement thereof. The
      omission of any Indemnified Party so to notify such Issuer Party of any
      such action shall not relieve such Issuer Party from any liability that it
      may have to such Indemnified Party unless, and only to the extent that,
      such omission has a material adverse effect on such Issuer Party,
      including a material adverse effect on the ability of such Issuer Party to
      conduct the defense. Notwithstanding Section 7.1, in case any such action,
      claim or other proceeding shall be brought against any Indemnified Party
      and it shall notify the relevant Issuer Party of the commencement thereof,
      such Issuer Party shall be entitled to assume the defense thereof at its
      own expense, with counsel reasonably satisfactory to such Indemnified
      Party in its reasonable judgment; provided, however, that any Indemnified
      Party may, at its own expense, retain separate counsel to participate in
      such defense. Notwithstanding the foregoing, in any action, claim or
      proceeding in which any Issuer Party on the one hand, and an Indemnified
      Party, on the other hand, is, or is reasonably likely to become, a party,
      such Indemnified Party shall have the right to employ separate counsel at
      the expense of such Issuer Party and to control its own defense of such
      action, claim or proceeding if, in the reasonable opinion of counsel to
      such Indemnified Party, a conflict or potential conflict exists between
      such Issuer Party, on the one hand, and such Indemnified Party, on the
      other hand, that would make such separate representation advisable. Each
      Issuer Party agrees that it will not, without the prior written consent of
      the Indemnified Parties, settle, compromise or consent to the entry of any
      judgment in any pending or threatened claim, action or proceeding relating
      to the matters contemplated hereby (if any Indemnified Party is a party
      thereto or has been actually threatened to be made a party thereto) unless
      such settlement, compromise or consent includes an unconditional release
      of CMII and each other Indemnified Party from all liability arising or
      that may arise out of such claim, action or proceeding. No Issuer Party
      shall be liable for any settlement of any claim, action or proceeding
      effected against an Indemnified Party without its written consent, which
      consent shall not be unreasonably withheld. The rights accorded to
      Indemnified Parties hereunder shall be in addition to any rights that any
      Indemnified Party may have at common law, by separate agreement or
      otherwise; provided, however, that any claim that could be brought upon
      the same facts as a claim brought under this Section 7 shall be subject to
      the limitations of Section 7.1.

7.3   Survival of Indemnification Provisions

      The provisions of this Section 7 shall survive the term of this Agreement
      and repayment of the Notes and exercise of the Warrants.

                                       33
<PAGE>

8.    COVENANTS

8.1   Affirmative Covenants

      Until the payment by Willey of all principal of and interest on the Notes
      and by the Issuer Parties of all other amounts due at the time of payment
      of such principal and interest to CMII under this Agreement, including,
      without limitation, all expenses and amounts due at such time in respect
      of indemnity obligations under Section 7, each Issuer Party will at all
      times perform and comply with all covenants applicable to such Person in
      this Section 8.1 and thereafter, until the full exercise of the Warrant
      pursuant to the terms thereof, BPG will at all times perform and comply
      with the covenants applicable to BPG contained in paragraphs (a)(v),
      (a)(xi), (a)(xiii), (d), (k), (l) and (n) of Section 8.1:

            (a)   Information.

                  (i)   Willey shall deliver to CMII, within 90 days after the
                        end of each Fiscal Year, (x) a consolidated balance
                        sheet and consolidated income statement showing the
                        financial position of Willey and its Subsidiaries as of
                        the close of such Fiscal Year and the results of their
                        operations during such year, and (y) a consolidated
                        statement of stockholders' equity and a consolidated
                        statement of cash flow, as of the close of such Fiscal
                        Year, all the foregoing financial statements to be
                        audited by Grant Thornton LLP or other independent
                        public accountants reasonably acceptable to CMII (which
                        report shall not contain any qualification except with
                        respect to new accounting principles mandated by the
                        Financial Accounting Standards Board), and together with
                        supplemental consolidating balance sheets and statements
                        of income, stockholders' equity and cash flow prepared
                        by such independent public accountants as being fairly
                        stated in all material respects in relation to such
                        audited financial statements taken as a whole and
                        together with management's discussion and analysis
                        presented to the management of Willey and its
                        Subsidiaries;

                  (ii)  Willey shall deliver to CMII, with 45 days after the end
                        of each of the first three (3) fiscal quarters of each
                        fiscal year, (x) unaudited consolidated and
                        consolidating balance sheets and consolidated and
                        consolidating income statements showing the financial
                        position and results of operations of Willey and its
                        Subsidiaries as of the end of each such quarter, (y) a
                        consolidated and consolidating statement of
                        shareholders' equity and (z) a consolidated and
                        consolidating statement of cash flow, in each case for
                        the fiscal quarter just ended and for the period
                        commencing at the end of the immediately preceding
                        fiscal year and ending with the last day of such
                        quarter, in each case prepared and certified by a
                        Financial Officer of Willey as presenting fairly in all
                        material respects the financial position and results of
                        operations

                                       34
<PAGE>

                        of Willey and its Subsidiaries and as having been
                        prepared in accordance with GAAP (except the absence of
                        footnote disclosure), in each case subject to normal
                        year-end audit adjustments, together with in the case of
                        the second fiscal quarter of each fiscal year only,
                        management's discussion and analysis presented to the
                        Board of Directors of Willey and its Subsidiaries;

                  (iii) Willey shall deliver to CMII, within 30 days after the
                        end of each month, (x) unaudited consolidated and
                        consolidating balance sheets and income statements
                        showing the financial position and results of operations
                        of Willey and its Subsidiaries as of the end of each
                        such month, (y) a consolidated and consolidating
                        statement of stockholders' equity and (z) a consolidated
                        and consolidating statement of cash flow, in each case
                        for the month just ended and for the period commencing
                        at the end of the immediately preceding Fiscal Year and
                        ending with the last day of such month, prepared and
                        certified by a Financial Officer of Willey as presenting
                        fairly in all material respects the financial condition
                        and results of operations of Willey and its Subsidiaries
                        and as having been prepared in accordance with GAAP
                        (except the absence of footnote disclosure), in each
                        case subject to normal year-end audit adjustments;

                  (iv)  Willey shall deliver to CMII, (x) concurrently with each
                        delivery under clause (a)(i) and with each delivery in
                        respect of the second fiscal quarter of any fiscal year
                        under clause (a)(ii) above, a management discussion and
                        analysis describing any differences between the reported
                        financial results under the financial statements
                        delivered thereunder from the budget required by (vii)
                        below, which shall include, among any other information
                        or explanation reasonably requested by CMII, an
                        explanation of any revenues, EBITDA, Capital
                        Expenditures and new or lost customers that would assist
                        CMII to better understand the results being reported and
                        (y) concurrently with any delivery under clause (a)(i)
                        or clause (a)(ii) above, a certificate of the firm or
                        Person referred to therein (A) which certificate shall,
                        in the case of the certificate of a Financial Officer of
                        Willey, certify on behalf of Willey that to the best of
                        his or her knowledge no Default has occurred (including
                        calculations demonstrating compliance, as of the dates
                        of the financial statements being furnished, with the
                        covenants set forth in paragraphs (a) through (e) of
                        Section 8.3) or, if such a Default or Event of Default
                        has occurred, specifying the nature and extent thereof
                        and any corrective action taken or proposed to be taken
                        with respect thereto and (B) which report, in the case
                        of the report furnished by the independent public
                        accountants referred in clause (a)(i) above, may be
                        limited to accounting matters and disclaim
                        responsibility for legal interpretations, but shall in
                        any event state

                                       35
<PAGE>

                        that to the best of such accountants' knowledge, as of
                        the dates of the financial statements being furnished no
                        Default has occurred under any of the covenants set
                        forth in Sections paragraphs (a) through (e) of Section
                        8.3 and, if such a Default has occurred, specifying the
                        nature and extent thereof; provided, however, that any
                        certificate delivered concurrently with clause (a)(i)
                        above shall be accompanied by a Compliance Certificate
                        confirming the accuracy of the accountants' certificate
                        (and shall in any event include calculations
                        demonstrating compliance with the covenants set forth in
                        paragraphs (a) through (e) of Section 8.3) and signed by
                        a Financial Officer of Willey;

                  (v)   BPG and Willey shall deliver to CMII, promptly after the
                        same become publicly available, copies of such
                        registration statements, annual, periodic and other
                        reports, and such proxy statements and other
                        information, if any, as shall be filed by BPG, Willey or
                        any of their respective Subsidiaries with the Securities
                        and Exchange Commission pursuant to the requirements of
                        the Securities Act of 1933, as amended (other than
                        filings on Form D) or the Securities Exchange Act of
                        1934, as amended, if any;

                  (vi)  Willey shall deliver to CMII, concurrently with any
                        delivery under (a)(i) above, a management letter, if
                        any, prepared by the independent public accountants who
                        reported on the financial statements delivered under
                        (a)(i) above, with respect to the internal audit and
                        financial controls of Willey and its Subsidiaries;

                  (vii) Willey shall deliver to CMII, within 30 days prior to
                        the beginning of each Fiscal Year, for Willey and its
                        Subsidiaries for such Fiscal Year (monthly balance
                        sheets, statements of income and of cash flow) for the
                        forthcoming Fiscal Year and annual projections for the
                        three Fiscal Years following such forthcoming Fiscal
                        Year;

                  (viii) Willey shall deliver to CMII, as soon as practicable,
                        copies of all material financial reports, forms,
                        filings, loan documents and financial information
                        submitted to governmental agencies, and copies of
                        material financial reports generally distributed to its
                        equity holders;

                  (ix)  Willey shall deliver to CMII, promptly upon becoming
                        aware thereof, notice to CMII of the breach by any party
                        of any material agreement with Willey or any of its
                        Subsidiaries which, in the case of this clause, could
                        reasonably be expected to have a Material Adverse
                        Effect;

                  (x)   Willey shall deliver to CMII, promptly upon becoming
                        aware thereof, notice to CMII of the termination by any
                        party of any material agreement with Willey

                                       36
<PAGE>

                        or any of its Subsidiaries which, in the case of this
                        clause, could reasonably be expected to have a Material
                        Adverse Effect;

                  (xi)  BPG and Willey shall deliver to CMII, notice that any
                        Issuer Party is the subject of any review or audit by
                        the Internal Revenue Service or any governmental
                        investigation concerning the violation or possible
                        violation of any law;

                  (xii) BPG and Willey shall deliver to CMII, (w) the name of a
                        jurisdiction in which Willey or any of its Subsidiaries
                        becomes qualified after the Closing Date to transact
                        business, (x) written notice of any material change
                        after the Closing Date in the authorized and issued
                        capital stock or other equity interests of any Issuer
                        Party or any other material amendment to their charter,
                        bylaws or other organization documents, and (y) written
                        notice of any Subsidiary created or acquired by Willey
                        or any of its Subsidiaries after the Closing Date, such
                        notice, in each case, to identify the applicable
                        jurisdictions, capital structures or Subsidiaries, as
                        applicable;

                  (xiii) BPG shall deliver to CMII, for any fiscal quarter or
                        fiscal year for which BPG is not required to file
                        reports under Section 13 or Section 15(d) of the
                        Securities and Exchange Act of 1934, as amended,
                        consolidated and consolidating financial statements for
                        BPG and its Subsidiaries and other documents of this
                        type, at the times and accompanied by the documents
                        described in Section 8.1(a)(i), 8.1(a)(ii), 8.1(a)(iii),
                        8.1(a)(iv) and 8.1(a)(vi);

                  (xiv) not later than 20 days after the end of each month (a) a
                        copy of the "Backlog Report" (as defined in the Senior
                        Credit Agreement as in effect on the Closing Date); and
                        (b) a "proposal/opportunity report" describing potential
                        new contracts; and

                  (xv)  such other information as CMII may reasonably request.

            (b)   Maintenance of Property; Insurance

                  (i)   Willey will keep, and will cause each of its
                        Subsidiaries to keep, all property useful and necessary
                        in its business as then conducted in good working order
                        and condition, ordinary wear and tear excepted, except
                        as could not reasonably be expected to cause a Material
                        Adverse Effect.

                  (ii)  Willey will maintain and will cause each of its
                        Subsidiaries to maintain, to the extent commercially
                        available, (i) physical damage insurance on
                        substantially all its real and personal property in the
                        United States with such insurance carriers, covering
                        such risks and containing such terms, as is reasonably
                        acceptable to CMII and in accordance with industry
                        standards, (ii) public

                                       37
<PAGE>

                        liability insurance (including products liability
                        coverage) in amounts heretofore customarily maintained
                        by Willey, (iii) business interruption insurance in
                        amounts heretofore customarily maintained by Willey and
                        (iv) key-man life insurance on such Persons and in such
                        amounts as may be required under the Senior Credit
                        Agreement from time to time. Prior to the Closing Date,
                        Willey will cause CMII to be named as an additional
                        insured on all liability insurance.

            (c)   Compliance with Laws

                  Willey will comply, and cause each of its Subsidiaries to
                  comply, with all applicable laws, ordinances, rules,
                  regulations, and requirements of governmental authorities
                  (including, without limitation, Environmental Laws and ERISA
                  and the rules and regulations thereunder) and all Contractual
                  Obligations, which involve amounts which are or may become
                  payable by Willey and its Subsidiaries of more than $100,000,
                  (other than under the Senior Documents), in each case, except
                  where failure to comply could not reasonably be expected to
                  have a Material Adverse Effect, or where the necessity of
                  compliance therewith is being contested in good faith by
                  appropriate proceedings.

            (d)   Inspection of Property, Books and Records

                  Willey will keep, and will cause each of its Subsidiaries to
                  keep, proper books of record and account reflecting its
                  business and activities; and will permit, and will cause each
                  of its Subsidiaries to permit, representatives of CMII at
                  CMII's expense to visit and inspect any of their respective
                  properties, to examine and make abstracts from any of their
                  respective books and records and to discuss their respective
                  affairs, finances and accounts with their respective officers,
                  senior employees and independent public accountants, all
                  during normal business hours and as often as may reasonably be
                  desired and upon reasonable notice, which may be telephonic
                  (except during the occurrence and continuance of an Event of
                  Default, no such notice shall be required); provided that
                  Willey may, at its option, have one or more employees or
                  representatives present at any such inspection, examination or
                  discussion.

            (e)   Use of Proceeds

                  The proceeds from the sale of the Notes under this Agreement
                  will be used by Willey to reduce its borrowings under its
                  revolving credit facility, in an amount of $2,000,000, and for
                  ongoing working capital. None of such proceeds will be used,
                  directly or indirectly, for the purpose, whether immediate,
                  incidental or ultimate, of buying or carrying any "margin
                  stock" within the meaning of Regulation U.

                                       38
<PAGE>

            (f)   Environmental Matters

                  BPG and Willey will, and will cause their respective
                  Subsidiaries to, promptly give to CMII notice in writing of
                  any complaint, order, citation or notice of violation with
                  respect to, or if BPG, Willey or their Subsidiaries becomes
                  aware of, (i) the existence or alleged existence of a
                  violation of any applicable Environmental Law, (ii) any
                  release into the environment of Hazardous Materials in a
                  quantity that is reportable under applicable Environmental
                  Law, (iii) the commencement of any cleanup pursuant to or in
                  accordance with any applicable Environmental Law of any
                  Hazardous Materials, (iv) any pending legislative or
                  threatened proceeding for the termination, suspension or
                  non-renewal of any permit required under any applicable
                  Environmental Law, (v) any property of BPG, Willey or any
                  Subsidiary thereof that is or will be subject to a Lien
                  imposed pursuant to any Environmental Law, (vi) any pending
                  legislative changes to existing Environmental Laws, and (vii)
                  any proposed acquisitions or leasing of property, which, in
                  each of cases (i) through (vii) above, individually or in the
                  aggregate, could reasonably be expected have a Material
                  Adverse Effect.

            (g)   Taxes

                  BPG and Willey will, and will cause each of their respective
                  Subsidiaries to, pay and discharge promptly when due all
                  taxes, assessments and governmental charges or levies imposed
                  upon BPG and Willey and their respective Subsidiaries or upon
                  their respective income or profits or in respect of their
                  respective property before the same shall become delinquent or
                  in default, as well as all lawful claims for labor, materials
                  and supplies or otherwise, which, if unpaid, would give rise
                  to Liens upon such properties or any part thereof; provided,
                  however, that such payment and discharge shall not be required
                  with respect to (i) any such tax, assessment, charge, levy or
                  claim so long as the validity or amount thereof shall be
                  contested in good faith by appropriate proceedings and the
                  applicable party shall have set aside on its books adequate
                  reserves with respect thereto, and such contest operates to
                  suspend collection of the contested tax, assessment, charge,
                  levy or claims and enforcement of a Lien or (ii) any tax,
                  assessment, charge, levy or claims, the failure to pay and
                  discharge when due which, individually or in the aggregate
                  could not reasonably be expected have a Material Adverse
                  Effect.

            (h)   Existence; Conduct of Business

                  Each Issuer Party will do or cause to be done all things
                  necessary to preserve, renew and keep in full force and effect
                  its legal existence and the rights, licenses, permits,
                  privileges and franchises material to the conduct of its
                  business; provided

                                       39
<PAGE>

                  that the foregoing shall not prohibit any merger,
                  consolidation, liquidation or dissolution permitted under
                  Section 8.2(c).

            (i)   Litigation and Other Notices

                        Willey will give CMII prompt written notice of the
                        following:

                  (i)   to Willey's knowledge, the issuance by any court or
                        Governmental Authority of any injunction, order,
                        decision or other restraint prohibiting, or having the
                        effect of prohibiting, the issuance or purchase of the
                        Notes or Warrants, or invalidating, or having the effect
                        of invalidating, any provision of this Agreement or the
                        other Transaction Documents that would adversely affect
                        CMII's ability to enforce any payment obligations
                        hereunder, or the initiation of any litigation or
                        similar proceeding seeking any such injunction, order,
                        decision or other restraint;

                  (ii)  to Willey's knowledge, the filing or commencement of any
                        action, suit or proceeding against Willey or any of its
                        Subsidiaries, whether at law or in equity or by or
                        before any arbitrator or Governmental Authority, (i)
                        which is material and is brought by or on behalf of any
                        governmental agency or authority, or which is material
                        and in which injunctive or other equitable relief is
                        sought or (ii) as to which it is probable (within the
                        meaning of Statement of Financial Accounting Standards
                        No. 5) that there will be an adverse determination and
                        which, if adversely determined, would (A) reasonably be
                        expected to result in liability of Willey or a
                        Subsidiary thereof in an aggregate amount of $250,000 or
                        more, not reimbursable by insurance, or (B) materially
                        impairs the right of BPG, Willey or such Subsidiary to
                        perform its material obligations under this Agreement,
                        any Note, the Warrant or any other Transaction Document
                        to which it is a party;

                  (iii) any Default of which it becomes aware, specifying the
                        nature and extent thereof and the action (if any) which
                        is proposed to be taken with respect thereto;

                  (iv)  notices given or received (with copies thereof) with
                        respect to any Senior Debt; and

                  (v)   any development in the business or affairs of Willey or
                        any of its Subsidiaries which has had or which is likely
                        to have, in the reasonable judgment of Willey, a
                        Material Adverse Effect.

            (j)   Additional Guarantors

                                       40
<PAGE>

                  Willey will, and will cause its Subsidiaries to, promptly
                  inform CMII of the creation or acquisition of any direct or
                  indirect Subsidiary (subject to the provisions of Section
                  8.2(k)) and cause each direct or indirect domestic Subsidiary
                  not in existence on the date hereof to enter into a Guarantee
                  of the Obligations of Willey, in form and substance
                  satisfactory to CMII and, in connection therewith, to cause to
                  be delivered to CMII such legal opinions of independent
                  counsel to such Subsidiary as CMII may reasonably request.
                  Each Guarantor shall be subject to the Subordination
                  Agreement.

            (k)   Further Assurances

                  (i)   Each Issuer Party will promptly upon request by CMII,
                        correct any material defect or error that may be
                        discovered in any Transaction Document or in the
                        execution, acknowledgment, filing or recordation
                        thereof; and

                  (ii)  Each Issuer Party will, promptly upon reasonable request
                        by CMII, do, execute, acknowledge, deliver, record,
                        re-record, file, re-file, register and re-register any
                        and all such further acts, deeds, agreements,
                        certificates, assurances and other instruments as CMII
                        may reasonably require from time to time in order to (A)
                        carry out more effectively the purposes of the
                        Transaction Documents, and/or (B) assure, preserve,
                        protect and confirm more effectively unto CMII the
                        rights granted or now or hereafter intended to be
                        granted to CMII under any Transaction Document or under
                        any other instrument executed in connection with any
                        Transaction Document to which any Issuer Party is or is
                        to be a party.

            (l)   Performance of Transaction Documents

                  Subject to the provisions of the Subordination Agreement, each
                  of BPG and Willey shall, and Willey shall cause its
                  Subsidiaries to, perform and observe all of the terms and
                  provisions of each Transaction Document to be performed or
                  observed by them, maintain each such Transaction Document in
                  full force and effect, enforce such Transaction Document in
                  accordance with its terms, and, upon reasonable request of
                  CMII, make to each other party to each such Transaction
                  Document such demands and requests for information and reports
                  or for action as such Issuer Party is entitled to make under
                  such Transaction Document.

            (m)   Issuance, Delivery and Payment of Notes

                  Subject to the provisions of the Subordination Agreement,
                  Willey shall pay the principal of, interest on and other
                  amounts due in respect of, its Notes on the dates and in the
                  manner provided in such Notes.

                                       41
<PAGE>

            (n)   Reserved

            (o)   Observation Rights

                  (i)   For so long as any amount remains due and unpaid under
                        and pursuant to any Note, Willey agrees to give CMII
                        notice of (in the same manner notice is given to
                        directors), and permit a person designated by CMII to
                        attend as observer, all meetings of Willey's Board of
                        Directors and all executive and other committee meetings
                        thereof and, subject to CMII's compliance with customary
                        confidentiality procedures, shall provide to CMII the
                        same information concerning Willey, and access thereto,
                        provided to members of Willey's Board of Directors
                        (provided, however, that such designee may be asked to
                        leave any such meeting, or be denied (but only pursuant
                        to this Section 8.1(o)) any information, if, upon advice
                        of counsel, Willey determines that such designee has a
                        conflict of interest with Willey pertaining to a
                        particular portion of such meeting or information, or
                        that the attendance or dissemination to such attendee
                        could remove any privilege of confidentiality from
                        otherwise attorney-client privileged statements or
                        information). The reasonable travel and lodging expenses
                        accrued by any such designee in attending any board or
                        committee meeting shall be reimbursed by Willey to the
                        extent consistent with Willey's then existing policy of
                        reimbursing directors generally for such expenses.

                  (ii)  Willey will cause its Board of Directors to meet not
                        less often than semi-annually.

8.2   Negative Covenants

      Until the payment in full by Willey of all principal of and interest on
      the Notes and by the Issuer Parties of all other amounts due at the time
      of payment of such principal and interest to CMII under this Agreement
      including, without limitation, all expenses and amounts due at such time
      in respect of indemnity obligations under Section 7, each Issuer Party
      will at all times perform and comply with all covenants applicable to such
      Person in this Section 8.2:

            (a)   Indebtedness

                  Willey will not, and will not permit any of its Subsidiaries
                  to, create, incur, assume or permit to exist any Indebtedness,
                  except:

                  (i)   Indebtedness created under the Transaction Documents;

                                       42
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                  (ii)  Indebtedness existing on the date hereof and set forth
                        in Schedule 8.2(a)(ii) and extensions, renewals and
                        replacements of any such Indebtedness that do not
                        increase the outstanding principal amount thereof and
                        otherwise on substantially similar terms to such
                        existing Indebtedness;

                  (iii) Permitted Purchase Money Indebtedness;

                  (iv)  Indebtedness of any Person that becomes a Subsidiary of
                        Willey after the date hereof, provided that such
                        Indebtedness exists at the time such Person becomes a
                        Subsidiary and is not created in contemplation of or in
                        connection with such Person becoming such a Subsidiary;

                  (v)   Indebtedness of Willey or any Subsidiary thereof as an
                        account party in respect of trade letters of credit;

                  (vi)  Senior Debt;

                  (vii) Reserved;

                  (viii) Guarantees permitted by Section 8.2(d);

                  (ix)  Indebtedness subject to Liens permitted under Section
                        8.2(b) (other then Section 8.2(b)(iv));

                  (x)   Indebtedness arising from Hedging Agreements entered
                        into in the ordinary course of business to hedge or
                        mitigate risks to which Willey or any Subsidiary thereof
                        is exposed in the conduct of its business or the
                        management of its liabilities;

                  (xi)  accounts payable to trade creditors and current
                        operating expenses (other than for Money Borrowed) which
                        are not aged more than 60 days from billing date or more
                        than 15 days from the due date, in each case incurred in
                        the ordinary course of business and paid within such
                        time period, unless the same are being actively
                        contested in good faith and by appropriate and lawful
                        proceedings; and Willey shall have set aside such
                        reserves, if any, with respect thereto as are required
                        by GAAP and deemed adequate by Willey and its
                        independent accounts;

                  (xii) obligations to pay all payments which Willey or any of
                        its Subsidiaries is required to make by the terms of any
                        lease, as long as the aggregate of all such payments
                        during any current or future period of 12 consecutive
                        months under the lease in question and all other leases
                        under which Willey or any of its Subsidiaries is then
                        lessee does not exceed $1,000,000;

                                       43
<PAGE>

                  (xiii) contingent liabilities arising out of endorsements of
                        checks and other negotiable instruments for deposit or
                        collection in the ordinary course of business; and

                  (xiv) other unsecured Indebtedness (and if by Guarantee,
                        without duplicate counting of the amount guaranteed and
                        the underlying Indebtedness) of Willey or any Subsidiary
                        thereof in an aggregate principal amount not exceeding
                        $500,000 at any time outstanding.

            (b)   Liens

                  Willey will not, and will not permit any of its Subsidiaries
                  to, create, incur, assume or permit to exist any Lien on any
                  property or asset now owned or hereafter acquired by it, or
                  assign or sell any income or revenues (including accounts
                  receivable) or rights in respect of any thereof, except:

                  (i)   Permitted Encumbrances;

                  (ii)  any Lien on any property or asset of Willey or any
                        Subsidiary thereof existing on the date hereof and set
                        forth in Schedule 8.2(b)(ii); provided that (i) such
                        Lien shall not apply to any other property or asset of
                        Willey or any Subsidiary thereof and (ii) such Lien
                        shall secure only those obligations which it secures on
                        the date hereof and extensions, renewals and
                        replacements thereof that do not increase the
                        outstanding principal amount thereof (except pursuant to
                        the instrument creating such Lien) and are on
                        substantially similar terms;

                  (iii) any Lien existing on any property or asset prior to the
                        acquisition thereof by Willey or any Subsidiary thereof
                        or existing on any property or asset of any Person that
                        becomes a Subsidiary of Willey after the date hereof
                        prior to the time such Person becomes a Subsidiary;
                        provided that (i) such Lien is not created in
                        contemplation of or in connection with such acquisition
                        or such Person becoming such a Subsidiary, as the case
                        may be, (ii) such Lien shall not apply to any other
                        property or assets of Willey or any Subsidiary thereof
                        and (iii) such Lien shall secure only those obligations
                        which it secures on the date of such acquisition or the
                        date such Person becomes a Subsidiary of Willey, and
                        extensions, renewals and replacements thereof that do
                        not increase the outstanding principal amount thereof
                        (or except pursuant to the instrument creating such
                        Lien) otherwise substantially alter the terms of such
                        Lien;

                  (iv)  Purchase Money Liens securing Permitted Purchase Money
                        Indebtedness;

                  (v)   Liens securing Senior Debt created by the Senior
                        Documents; and

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<PAGE>

                  (vi)  licenses, leases or subleases permitted hereunder
                        granted to others not interfering in any material
                        respect in the business of Willey or any of its
                        Subsidiaries.

            (c)   Fundamental Changes

                  (i)   Willey will not, and will not permit any of its
                        Subsidiaries to, merge into or consolidate with any
                        other Person, or permit any other Person to merge into
                        or consolidate with it, or sell, transfer, lease or
                        otherwise dispose of (in one transaction or in a series
                        of transactions) any of its assets, or any of the stock
                        or other equity units of any of its Subsidiaries (in
                        each case, whether now owned or hereafter acquired), or
                        liquidate or dissolve, except that, if at the time
                        thereof and immediately after giving effect thereto no
                        Default shall have occurred and be continuing (i) any
                        wholly-owned domestic Subsidiary of Willey may merge
                        into Willey in a transaction in which Willey is the
                        surviving corporation, (ii) any wholly-owned domestic
                        Subsidiary of Willey may merge into any other
                        wholly-owned domestic Subsidiary of Willey in a
                        transaction in which the surviving entity is a
                        wholly-owned domestic Subsidiary of Willey, as the case
                        may be, (iii) any wholly-owned domestic Subsidiary of
                        Willey may sell, transfer, lease or otherwise dispose of
                        its assets to Willey and/or to another wholly-owned
                        domestic Subsidiary of Willey and (iv) any wholly-owned
                        domestic Subsidiary of Willey may liquidate or dissolve
                        if Willey determines in good faith that such liquidation
                        or dissolution is in the best interests of Willey and is
                        not materially disadvantageous to CMII.

                  (ii)  Willey will not, and will not permit any of its
                        Subsidiaries to, (i) engage to any material extent in
                        any business other than businesses of the type conducted
                        by Willey and its Subsidiaries on the Closing Date and
                        businesses reasonably related thereto or (ii) change its
                        Fiscal Year, and BPG will not conduct business of the
                        type conducted by Willey as of the Closing Date except
                        through Willey and Subsidiaries of Willey.

                  (iii) Notwithstanding the foregoing, Willey and its
                        Subsidiaries may make:

                        (1)   purchases and sales of inventory and other assets
                              in the ordinary course;

                        (2)   (A) sales of assets (excluding capital stock of a
                              Subsidiary of Willey) including, without
                              limitation, sales of accounts receivable and (B)
                              sales of worn out, obsolete, scrap or surplus
                              assets not to exceed for (A) and (B) $200,000 in
                              the aggregate in any Fiscal Year;

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<PAGE>

                        (3)   Capital Expenditures permitted by Section 8.3(c);

                        (4)   liquidations of Permitted Investments; and

                        (5)   Permitted Investments and Guarantees permitted by
                              Section 8.2(d).

            (d)   Investments, Loans, Advances, Guarantees and Acquisitions

                  Willey will not, and will not permit any of its Subsidiaries
                  to, make, purchase, hold or acquire any Investment (including
                  any option, warrant or other right to acquire any of the
                  foregoing) in, or make or permit to exist any Guarantee any
                  obligations of, any other Person, or purchase or otherwise
                  acquire (in one transaction or a series of transactions) any
                  assets of any other Person constituting a business unit,
                  except:

                  (i)   Permitted Investments;

                  (ii)  Guarantees constituting Indebtedness permitted by
                        Section 8.2(a);

                  (iii) indemnities made and surety bonds issued in the ordinary
                        course of business;

                  (iv)  indemnities made in the Transaction Documents;

                  (v)   Guarantees made in the ordinary course of business;
                        provided that such Guarantees are not of Indebtedness
                        for borrowed money except to the extent permitted
                        pursuant to Section 8.2(a) and otherwise could not in
                        the aggregate reasonably be expected to have a Material
                        Adverse Effect.

            (e)   Modification of Operating Documents

                  Willey will not and will not permit any of its Subsidiaries to
                  amend or alter their respective certificates or articles of
                  incorporation or other organizational documents, including the
                  terms of any preferred stock (whether or not contained in a
                  certificate or articles of incorporation) documents, in a
                  manner which could reasonably be expected to have a Material
                  Adverse Effect or would otherwise be materially
                  disadvantageous to CMII.

            (f)   Restricted Junior Payments

                  Willey will not, and will not permit any of its Subsidiaries
                  to, declare or make, or agree to pay or make, directly or
                  indirectly, any Restricted Junior Payment, except that (i) any
                  Subsidiary of Willey may pay dividends or make other
                  distributions to its direct parent, (ii) Willey may pay the
                  Management Fees as and when due and payable, (iii) Willey may
                  pay the Permitted Seller Notes Amount as and when due and
                  payable in accordance with the terms of the Seller Notes and

                                       46
<PAGE>

                  (iv) Willey may pay the Permitted Seller Notes Principal as
                  and when due and payable in accordance with the terms of the
                  Seller Notes; provided, no amounts shall be paid until each of
                  the following conditions, as applicable, has been satisfied:

                  (i)   during fiscal year 2001, Willey shall pay the Permitted
                        Seller Notes Amount only as permitted by the Senior
                        Credit Agreement. Commencing in fiscal 2002 and
                        thereafter, Willey may pay the Permitted Seller Notes
                        Amount to BPG so long as each of the other following
                        conditions in this subsection 8.2(f), as applicable, has
                        been satisfied.

                  (ii)  no Management Fees shall be paid to BPG, for the fiscal
                        year 2001 until receipt by CMII of the audited financial
                        statements of Willey for such fiscal year and receipt
                        and approval by CMII of Willey's calculation of the
                        Fully Loaded Fixed Charge Coverage Ratio for such fiscal
                        year on a pro forma basis, such that after the payment
                        of the Management Fees and the Permitted Seller Notes
                        Amount for such fiscal year, the Fully Loaded Fixed
                        Charge Coverage Ratio shall be not less than 1.30:1;

                  (iii) for fiscal year 2002 and thereafter, the Management Fees
                        and the Permitted Seller Notes Amount may be paid to BPG
                        on a quarterly basis following receipt by CMII of the
                        unaudited financial statements of Willey as of the end
                        of each fiscal quarter;

                  (iv)  the Permitted Seller Notes Principal shall not be paid
                        to BPG until receipt by CMII of the audited financial
                        statements of Willey for the applicable fiscal year and
                        receipt and approval by CMII of Willey's calculation of
                        the Fully Loaded Fixed Coverage Ratio for such fiscal
                        year on a pro forma basis, such that after the payment
                        of the Management Fees, the Permitted Seller Notes
                        Amount and the Permitted Seller Notes Principal for such
                        fiscal year, the Fully Loaded Fixed Coverage Ratio shall
                        be not less than 1.30:1; and

                  (v)   no Default or Event of Default shall have occurred and
                        be continuing or shall occur as a result of the payment
                        of such amounts.

                  Notwithstanding the foregoing,Willey may pay, distribute or
                  lend money to BPG to fund the Earn-Out (as defined in the
                  Senior Credit Agreement as in effect on the Closing Date),
                  pursuant to Section 8.2.15 of the Senior Credit Agreement as
                  in effect on the Closing Date and so long as no Default is
                  continuing or occurs under this Agreement as a result of such
                  action.

                  Notwithstanding anything to the contrary contained in the
                  definition of "Management Fees" and in the first paragraph of
                  this Section 8.2(f), but subject

                                       47
<PAGE>

                  in all cases to the other terms and provisions of this
                  Agreement, including, without limitation, clauses (i) through
                  (v) of this Section 8.2(f):

                              (1) payments due by Willey under the Seller Notes
                  for the first three fiscal quarters of Fiscal Year 2001 shall
                  be deferred in each of such fiscal quarters and such payments
                  may (subject to clauses (i) through (v) of this Section 8.2(f)
                  and all other provisions of this Agreement) recommence in the
                  fourth quarter of Fiscal Year 2001, and the maturity date
                  under each of the respective Seller Notes shall be extended
                  for an additional three fiscal quarters; and

                              (2) the Management Fees due by Willey to BPG for
                  the first three fiscal quarters of Fiscal Year 2001,
                  aggregating $300,000, shall be deferred (the "DEFERRED
                  AMOUNT"), provided, that payments of such Deferred Amount may
                  (subject to clauses (i) through (v) of this Section 8.2(f) and
                  all other provisions of this Agreement) recommence on the last
                  day of the fiscal quarter ending June 30, 2002 and on the last
                  day of each of the five succeeding fiscal quarters thereafter.

            (g)   Transactions with Affiliates

                  Willey will not, and will not permit any of its Subsidiaries
                  to, sell, lease or otherwise transfer any property or assets
                  to, or purchase, lease or otherwise acquire any property or
                  assets from, or otherwise engage in any other transactions
                  with, any of its Affiliates, except (a) in the ordinary course
                  of business at prices and on terms and conditions not less
                  favorable than could be obtained on an arm's-length basis from
                  unrelated third parties (other than intercompany transactions
                  between BPG and Willey on substantially the same terms as are
                  in existence on the Closing Date and which would not violate
                  the provisions of Section 8.2(d)), (b) transactions between or
                  among Willey and its wholly-owned Subsidiaries not involving
                  any other Affiliate and (c) any Restricted Junior Payment not
                  prohibited by Section 8.2(f).

            (h)   Restrictive Agreements

                  Willey will not, and will not permit any of its Subsidiaries
                  to, directly or indirectly, enter into, incur or permit to
                  exist any agreement or other arrangement that prohibits,
                  restricts or imposes any condition upon (i) the ability of
                  Willey or any Subsidiary thereof to create, incur or permit to
                  exist any Lien upon any of its property or assets, or (ii) the
                  ability of any Subsidiary of Willey to pay dividends or other
                  distributions with respect to any shares of its capital stock
                  or to make or repay loans or advances to Willey or any other
                  Subsidiary thereof or to Guarantee Indebtedness of Willey or
                  any other Subsidiary thereof; provided that (v) the

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<PAGE>

                  foregoing shall not apply to restrictions and conditions
                  imposed by law or by this Agreement, (w) the foregoing shall
                  not apply to restrictions and conditions existing on the date
                  hereof and contained in the Senior Documents or otherwise
                  identified on Schedule 8.2(h) (but shall apply to any
                  amendment or modification expanding the scope of, any such
                  restriction or condition), (x) the foregoing shall not apply
                  to customary restrictions and conditions contained in
                  agreements relating to the sale of a Subsidiary pending such
                  sale, provided such restrictions and conditions apply only to
                  the Subsidiary that is to be sold and such sale is permitted
                  hereunder, (y) clause (i) of the foregoing shall not apply to
                  restrictions or conditions imposed by any agreement relating
                  to secured Indebtedness permitted by this Agreement if such
                  restrictions or conditions apply only to the property or
                  assets securing such Indebtedness and (z) clause (i) of the
                  foregoing shall not apply to customary provisions in leases
                  and other contracts restricting the assignment thereof.

            (i)   Fiscal Year

                  Willey will not change its Fiscal Year.

            (j)   Press Release; Public Offering Materials

                  Willey and BPG will not and will not permit any of their
                  respective Subsidiaries to disclose the name of CMII in any
                  press release or in any prospectus, proxy statement or other
                  materials filed with any governmental entity relating to a
                  public offering of the capital stock of any Issuer Party (x)
                  without CMII's prior written consent, which shall not be
                  unreasonably withheld or (y) except as required by applicable
                  law following not less than two (2) Business Days (or such
                  lesser time as may be available in any given case) prior
                  written notice to CMII.

            (k)   Subsidiaries

                  Willey will not and will not permit any of its Subsidiaries
                  directly or indirectly to establish, create or acquire any
                  Subsidiary except that Willey may establish, create or acquire
                  a domestic Subsidiary so long as concurrently with such
                  establishment, creation or acquisition, Willey complies and
                  causes such Subsidiary to comply with the obligations in
                  respect of such Subsidiary under Section 8.1(j).

            (l)   Consulting Fees

                  Willey will not, and will not permit any of its Subsidiaries
                  to, pay any management, consulting or other fees and/or any
                  reimbursements of costs and expenses of any kind to BPG or any
                  Subsidiary thereof, or to any Affiliate of BPG, any of its
                  Subsidiaries or of Willey or any Subsidiary thereof except (i)
                  as permitted by Section 8.2(f) plus (ii) reimbursement of
                  directors' meeting expenses

                                       49
<PAGE>

                  plus (iii) reasonable out of pocket expenses of BPG's personal
                  when they are engaged in efforts on behalf of Willey.

            (m)   Tax Consolidation

                  Willey will not pay the taxes covered by the Tax Sharing
                  Agreement among Willey and BPG, dated as of January 11, 2001,
                  other than in accordance with such Tax Sharing Agreement.

8.3   Financial Covenants

      Until the payment in full by Willey of all principal of and interest on
      the Notes and of all other amounts due at the time of payment of such
      principal and interest to CMII under this Agreement, including, without
      limitation, all expenses and amounts due at such time in respect of
      indemnity obligations under Section 7, Willey covenants and agrees that:

            (a)   Maximum Total Debt to EBITDA

                  Willey shall maintain a ratio of Total Debt to EBITDA for the
                  trailing twelve months ending on the dates set forth below of
                  less than or equal to 4.2 for each fiscal quarter during the
                  term of this Agreement.

            (b)   Minimum EBITDA

                  At the end of each fiscal quarter ending on or after the
                  Closing Date Willey shall have a minimum EBITDA of not less
                  than $900,000 for that quarter.

            (c)   Minimum Interest Coverage Ratio

                  Willey shall not permit the Interest Coverage Ratio for the
                  four consecutive fiscal quarter periods ending on the dates
                  set forth below to be less than 2.1:1 for each such fiscal
                  quarter period during the term of this Agreement.

            (d)   Minimum Fully Loaded Fixed Charge Coverage Ratio

                  Commencing on the last day of the first fiscal quarter of
                  fiscal year 2002 and on the last day of each fiscal quarter
                  thereafter, Willey shall not permit the Fully Loaded Fixed
                  Charge Coverage Ratio for any such fiscal quarter to be less
                  than 1.15:1.

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<PAGE>

9.    PREPAYMENT

9.1   Optional Prepayment

      Subject to the terms and conditions of its Notes, Willey may prepay the
      outstanding principal of (together with accrued interest on) the Notes in
      full, or from time to time, in part, on any date in accordance with
      Section 5 of each of such Notes.

9.2   Mandatory Prepayment

      Subject to Section 8 of each of its Notes, Willey shall prepay the
      outstanding principal of (together with accrued interest on) such Notes in
      accordance with the "MANDATORY PREPAYMENT" provisions set forth in Section
      4 of each of such Notes.

10.   MISCELLANEOUS

10.1  Survival of Representations and Warranties

      All of the representations and warranties made herein shall survive the
      execution and delivery of this Agreement, any investigation by or on
      behalf of CMII, acceptance of the Notes and Warrants and payment therefor,
      or termination of this Agreement.

10.2  Notices

      All notices, demands and other communications provided for or permitted
      under any Transaction Document shall be made in writing and shall be by
      registered or certified first class mail, return receipt requested,
      telecopier, courier service or personal delivery:

      (h)   If to CMII:

            c/o Canaan Partners
            105 Rowayton Avenue
            Rowayton, Connecticut 06853
            Attention: Earl Mix
            Facsimile No.: (203) 854-9117

            With a copy to:

            Clifford Chance Rogers & Wells LLP
            200 Park Avenue
            New York, New York 10166-0165
            Attention:  Robert S. Finley, Esq.
            Facsimile No.: (212) 878-8375

      (i)   if to BPG:

            BrandPartners Group, Inc

                                       51
<PAGE>

            777 Third Avenue
            New York, New York 10017
            Attention:  Edward T. Stolarski, Executive Vice President
            Facsimile No.: (212) 421-2933

            With copies to:

            Modlin Haftel & Nathan LLP
            777 Third Avenue, 30th Floor
            New York, New York 10017
            Attention:  Charles M. Modlin, Esq.
            Facsimile No.: (212) 832-1642

            and

            Kramer Levin Naftalis & Frankel LLP
            919 Third Avenue
            New York, New York 10022
            Attention:  Howard A. Sobel, Esq.
            Facsimile No.: (212) 715-8000

      (j)   if to Willey:

            Willey Brothers, Inc
            10 Main Street
            Rochester, New Hampshire 13839
            Attention:  Kevin Kelly, President
            Facsimile No.:

            With copies to:

                                       52
<PAGE>

            Modlin Haftel & Nathan LLP
            777 Third Avenue, 30th Floor
            New York, New York 10017
            Attention:  Charles M. Modlin, Esq.
            Facsimile No.: (212) 832-1642

            and

            Kramer Levin Naftalis & Frankel LLP
            919 Third Avenue
            New York, New York 10022
            Attention:  Howard A. Sobel, Esq.
            Facsimile No.: (212) 715-8000

      All such notices and communications shall be deemed to have been duly
      given: when delivered by hand, if personally delivered; when delivered by
      courier, if delivered by commercial overnight courier service; five
      Business Days after being deposited in the mail, postage prepaid, if
      mailed; and when receipt is acknowledged, if telecopied.

10.3  Successors and Assigns

      This Agreement shall inure to the benefit of and be binding upon the
      successors and permitted assigns of the parties hereto. Subject to
      applicable securities laws, in the case of the Notes, to the restrictions
      at Section 11 thereof and, in the case of the Warrants, to the
      restrictions in Section 10 thereof, CMII (and its permitted assigns) may
      assign any of its rights under any of the Transaction Documents to any
      Person and any holder of any of the Notes or Warrants may assign such Note
      or Warrant to any Person; provided, however, that notwithstanding the
      foregoing, other than any Affiliate of CMII, no transferee of a Note or of
      any rights under this Agreement shall succeed to the rights of CMII under
      Section 8.1(o) and provided, further, that no holder of a Note or Warrant
      shall assign such Note or Warrant if, as a result of any such assignment
      there shall be more than five (5) holders of Notes (in the case of an
      assignment of a Note) or more than five (5) holders of Warrants (in the
      case of an assignment of a Warrant) and provided, further, that no holder
      of a Note shall assign such Note to any Person that does not agree to make
      to Willey the representation and warranty contained in Section 6.5 hereof.
      Willey and BPG may not assign any of their rights under this Agreement
      without the prior written consent of CMII, any such purported assignment
      without such consent being null and void. Except for the provisions of the
      Subordination Agreement stated to be for the benefit of the Holders of the
      Senior Debt and as provided in Section 7, no Person other than the parties
      hereto and their successors and permitted assigns is intended to be a
      beneficiary of any of the Transaction Documents.

                                       53
<PAGE>

10.4  Amendment and Waiver

            (a)   No failure or delay on the part of any of the parties hereto
                  in exercising any right, power or remedy hereunder shall
                  operate as a waiver thereof, nor shall any single or partial
                  exercise of any such right, power or remedy preclude any other
                  or further exercise thereof or the exercise of any other
                  right, power or remedy. The remedies provided for herein are
                  cumulative and are not exclusive of any remedies that may be
                  available to the parties hereto at law, in equity or
                  otherwise.

            (b)   Any amendment, supplement, modification, termination or waiver
                  of or to any provision of this Agreement, the Notes, the
                  Warrants or any of the other Transaction Documents, and any
                  consent to any departure by any party from the terms of any
                  provision of this Agreement, shall be effective (i) only if it
                  is made or given in writing and signed by all of the parties
                  hereto and, subject to Section 10.16, the holders of each of
                  the Warrants and Notes, and (ii) only in the specific instance
                  and for the specific purpose for which made or given. Except
                  where notice is specifically required by this Agreement, no
                  notice to or demand on any Issuer Party in any case shall
                  entitle it to any other or further notice or demand in similar
                  or other circumstances. Subject to Section 10.16, no
                  amendment, supplement, modification, termination or waiver of
                  any provision of any Note or Warrant shall be effective
                  without the written concurrence of the holder of such Note or
                  Warrant and no such amendment, supplement, modification,
                  termination or waiver shall be valid in respect of any Note or
                  Warrant unless all Notes or Warrants as the case may be are
                  amended, supplemented, modified, terminated or waived in the
                  same respect.

10.5  Signatures and Counterparts

      Telefacsimile transmissions of any executed original document and/or
      retransmission of any executed telefacsimile transmission shall be deemed
      to be the same as the delivery of an executed original. At the request of
      any party hereto, the other parties hereto shall confirm telefacsimile
      transmissions by executing duplicate original documents and delivering the
      same to the requesting party or parties. This Agreement may be executed in
      any number of counterparts and by the parties hereto in separate
      counterparts, each of which when so executed shall be deemed to be an
      original and all of which taken together shall constitute one and the same
      agreement.

10.6  Headings

      The headings in this Agreement are for convenience of reference only and
      shall not limit or otherwise affect the meaning hereof.

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<PAGE>

10.7  GOVERNING LAW

      THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
      LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF
      CONFLICTS OF LAW OF SUCH STATE OTHER THAN SECTION 5-1401 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK.

10.8  WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION

      EACH OF THE PARTIES HERETO WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE
      LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN
      CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT AND THE OTHER
      TRANSACTION DOCUMENTS OR THE VALIDITY, PROTECTION, INTERPRETATION, OR
      ENFORCEMENT HEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE
      ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT
      AND THAT RELATE TO THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, CONTRACT
      CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND
      STATUTORY CLAIMS. EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT THIS WAIVER
      IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH
      HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS TRANSACTION, AND
      THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE
      DEALINGS. EACH OF THE PARTIES HERETO FURTHER WARRANTS AND REPRESENTS THAT
      EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH HAS
      KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING
      CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT
      IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL
      APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
      TO THIS AGREEMENT, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
      THIS AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS
      A WRITTEN CONSENT TO A TRIAL BY THE COURT. EACH OF THE PARTIES HERETO ALSO
      WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR
      THIS WAIVER, BE REQUIRED OF EACH. EACH PARTY TO THIS AGREEMENT HEREBY
      IRREVOCABLY AGREES THAT ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR
      RELATING TO THIS AGREEMENT, THE NOTES, THE WARRANTS OR ANY AGREEMENTS OR
      TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY MAY BE BROUGHT IN THE COURTS
      OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE
      SOUTHERN DISTRICT OF NEW YORK AND HEREBY EXPRESSLY SUBMITS TO THE PERSONAL
      JURISDICTION AND VENUE OF SUCH COURTS FOR

                                       55
<PAGE>

      THE PURPOSES THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND
      ANY CLAIM THAT SUCH COURTS ARE AN INCONVENIENT FORUM. EACH PARTY HEREBY
      IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OF ANY OF THE
      AFOREMENTIONED COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE
      MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE
      PREPAID, TO ITS ADDRESS SET FORTH IN SECTION 10.2, SUCH SERVICE TO BECOME
      EFFECTIVE 10 DAYS AFTER SUCH MAILING.

10.9  Severability

      If any one or more of the provisions contained herein, or the application
      thereof in any circumstance, is held invalid, illegal or unenforceable in
      any respect for any reason, the validity, legality and enforceability of
      any such provision in every other respect and of the remaining provisions
      hereof shall not be in any way impaired, unless the provisions held
      invalid, illegal or unenforceable shall substantially impair the benefits
      of the remaining provisions hereof.

10.10 Rules of Construction

      Unless the context otherwise requires, "or" is not exclusive, and
      references to sections or Sections refer to sections or Sections of this
      Agreement.

10.11 Entire Agreement

      This Agreement, together with the exhibits and schedules hereto and the
      other Transaction Documents, is intended by the parties as a final
      expression of their agreement and intended to be a complete and exclusive
      statement of the agreement and understanding of the parties hereto in
      respect of the subject matter contained herein and therein. There are no
      restrictions, promises, warranties or undertakings among the parties,
      other than those set forth or referred to herein or therein. This
      Agreement, together with the exhibits and schedules hereto, and the other
      Transaction Documents supersede all prior agreements and understandings
      between the parties with respect to such subject matter.

10.12 Certain Expenses

      Willey, will pay on demand: (i) all reasonable costs and expenses of CMII
      in connection with the preparation, negotiation, execution, delivery,
      administration, amendment, supplement, modification or waiver of or to any
      provision of any of the Transaction Documents, or in connection with the
      consent to any departure by any Issuer Party from, the terms of any
      provision of any of the Transaction Documents (including in each case,
      without limitation, (A) all reasonable due diligence, transportation,
      duplication, appraisal, audit, insurance, consultant, search, filing and
      recording fees and expenses and (B) the reasonable fees, charges and
      disbursements of counsel for CMII with respect thereto, including during a
      Default or Event of Default with respect to advising CMII of its rights
      and responsibilities or the protection or

                                       56
<PAGE>

      preservation of rights or interests, under the Transaction Documents, with
      respect to negotiations with the Issuer Parties or with other creditors of
      the Issuer Parties or any of their respective Subsidiaries arising out of
      any Default or any events or circumstances that may give rise to a Default
      and with respect to presenting claims in or otherwise participating in or
      monitoring any bankruptcy, insolvency or other similar proceeding
      involving creditors' rights generally and any proceeding ancillary
      thereto) and (ii) all costs and expenses of CMII in connection with the
      enforcement of the Transaction Documents, whether in any action, suit or
      litigation, any bankruptcy, insolvency or similar proceeding affecting
      creditors' rights generally (including without limitation the reasonable
      fees and expenses of counsel to CMII with respect thereto).

10.13 Publicity

      Except as may be required by applicable law, none of the parties hereto
      shall issue a publicity release or announcement or otherwise make any
      public disclosure concerning this Agreement or the transactions
      contemplated hereby, without prior approval by the other party hereto. If
      any announcement is required by law to be made by any party hereto, prior
      to making such announcement such party will deliver a draft of such
      announcement to the other parties and shall give the other parties an
      opportunity to comment thereon.

10.14 Further Assurances

      Each of the parties shall execute such documents and perform such further
      acts (including, without limitation, obtaining any consents, exemptions,
      authorizations, or other actions by, or giving any notices to, or making
      any filings with, any Governmental Authority or any other Person) as may
      be reasonably required or desirable to carry out or to perform the
      provisions of the Transaction Documents.

10.15 Note Register

      Willey shall keep a register in which Willey shall provide for the
      registration of its Notes and the registration of transfers of such Notes.
      Upon surrender for registration of transfer of any such Note at the office
      of Willey set forth herein, Willey shall (if such transfer is permitted
      hereunder) execute and deliver, in the name of the designated transferee
      or transferees, one or more new Notes of the same type and in a like
      aggregate principal amount. As an issuer of a Note, Willey shall have no
      obligation hereunder or under any of its Notes to any person other than
      the registered holder of such Note.

10.16 Multiple Holders

      In the event that there shall be at any time more than one registered
      holder of a Note or Warrant, then the reference to "CMII" in this
      Agreement and the Notes or in this Agreement and the Warrant shall mean
      and refer to each of such holders, each such holder shall be a deemed to
      be a party to this Agreement and bound by all agreements and theretofore
      unperformed covenants of CMII contained herein; provided, however, that
      notwithstanding the foregoing, all actions that

                                       57
<PAGE>

      are to be taken, and all consents or waivers to be granted or consents,
      amendments, waivers and other writings required to be signed by CMII under
      this Agreement or under the Notes or Warrants shall be, in each case
      (except for acceleration based upon an Event of Default under Section
      7(a)(i) or Section 7(a)(ii) of a Note), effective only if taken or
      executed and delivered by (w) in the case of any decrease in the amount of
      principal payable on any date under any Note, any reduction in the rate of
      interest payable on any Note, any postponement of any date on which any
      principal of or interest on, any Note is due and payable or any change in
      the definition of "Change in Control" or any terms relating to payment of
      principal at the option of the holder of a Note upon a Change in Control,
      the holder of such Note, (x) in any other case (except those described in
      clause (y) or (z) below), by the holders of a majority in outstanding
      principal amount of the Notes and, so long as any Warrants are
      outstanding, by the holders of a majority (calculated by reference to the
      number of shares of common stock of BPG into which the Warrants are then
      exerciseable) of the Warrants, (y) in the case of any change in any term
      of any Warrant, by the holder of such Warrant, and (z) in the case of any
      change to Section 8.1(n), by all holders of the Warrants.

10.17 Confidentiality

      Each holder of a Note and each holder of a Warrant agrees to maintain the
      confidentiality of the Information (as defined below), except that
      Information may be disclosed (a) to its and its Affiliates' directors,
      officers, employees and agents, including accountants, legal counsel and
      other advisors (it being understood that the Persons to whom such
      disclosure is made will be informed of the confidential nature of such
      Information and instructed to keep such Information confidential), (b) to
      the extent requested by any regulatory authority, (c) to the extent
      required by applicable laws or regulations or by any subpoena or similar
      legal process, (d) to any other party to this Agreement, (e) in connection
      with the exercise of any remedies hereunder or any suit, action or
      proceeding relating to this Agreement or the enforcement of rights
      hereunder, (f) subject to an agreement containing provisions substantially
      the same as those of this Section, to any assignee of or participant in,
      or any prospective assignee of or participant in, any of its rights or
      obligations under this Agreement, any Note or any Warrant, (g) with the
      consent of BPG and Willey, or (h) to the extent such Information (i)
      becomes publicly available other than as a result of a breach of this
      Section 10.17 or (ii) becomes available to any holder of a Note or Warrant
      on a nonconfidential basis from a source other than an Issuer Party. For
      the purposes of this Section, "INFORMATION" means all information received
      from the Issuer Parties relating to the Issuer Parties or their business,
      other than any such information that is available to any holder of a Note
      or any holder of a Warrant on a nonconfidential basis prior to disclosure
      by an Issuer Party. Any Person required to maintain the confidentiality of
      Information as provided in this Section shall be considered to have
      complied with its obligation to do so if such Person has exercised the
      same degree of care to maintain the confidentiality of such Information as
      such Person would accord to its own confidential information.

                                       58
<PAGE>

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered by their respective officers hereunto duly authorized as of the
date first above written.

WILLEY BROTHERS INC

By:   /s/ Kevin Kelly
      ------------------------------
      Name:  Kevin Kelly
      Title:  President

BRANDPARTNERS GROUP, INC

By:   /s/ Edward T. Stolarski
      ------------------------------
      Name:  Edward T. Stolarski
      Title:  Executive Vice President

CORPORATE MEZZANINE II, L.P.

By:   /s/ Robert Finley
      ------------------------------
      Name:  Robert Finley
      Title:  Attorney-in-Fact

                                       59
<PAGE>
                                                                   EXECUTION
                                 PROMISSORY NOTE

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR
OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS.

THIS NOTE AND THE OBLIGATIONS OF THE COMPANY ARISING HEREUNDER ARE SUBORDINATED
IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AND
INTERCREDITOR AGREEMENT DATED AS OF OCTOBER 22, 2001, AS SUCH SUBORDINATION AND
INTERCREDITOR AGREEMENT MAY BE AMENDED, MODIFIED OR SUPPLEMENTED FROM TIME TO
TIME, (THE "SUBORDINATION AGREEMENT") BY AND AMONG CORPORATE MEZZANINE II, L.P.,
WILLEY BROTHERS INC AND FLEET CAPITAL CORPORATION FROM TIME TO TIME; AND EACH
HOLDER OF THIS NOTE, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS
OF THE SUBORDINATION AGREEMENT.

                              WILLEY BROTHERS INC.

              16 PERCENT (16%) A.P.R. SUBORDINATED PROMISSORY NOTE

US$5,000,000                                                  New York, New York
                                                                October 22, 2001

FOR VALUE RECEIVED, the undersigned, WILLEY BROTHERS INC., a New Hampshire
corporation (the "COMPANY"), hereby promises to pay to the order of CORPORATE
MEZZANINE II, L.P., a British Virgin Island limited partnership (the "HOLDER"),
or its registered assigns, on the Maturity Date (as hereinafter defined) (or
earlier as hereinafter provided) the principal sum of FIVE MILLION DOLLARS
($5,000,000), plus all "PIK AMOUNTS" (as hereinafter defined) added to the
principal amount hereof pursuant to the terms of this Note, with interest on the
unpaid principal amount of this Note from time to time as provided herein. For
the purposes of this Note, the term "MATURITY DATE" shall mean October 22, 2008.

1.       Purchase Agreement

         This Subordinated Promissory Note (as amended, modified or supplemented
         from time to time, the "NOTE") is issued by the Company, on the date
         hereof, pursuant to the Subordinated Note and Warrant Purchase
         Agreement (as amended, modified or supplemented from time to time, the
         "PURCHASE AGREEMENT"), dated as of October 22, 2001, by and between the
         Company, BrandPartners Group, Inc. and the Holder. This Note and all
         notes issued pursuant to Section 11(d) or Section 12 hereof are
         hereinafter referred to as the "NOTES". The Holder is entitled to the
         benefits of this Note, the Purchase Agreement and the other Transaction
         Documents, and may enforce the agreements of the Company contained
         herein and therein and exercise the remedies provided for hereby and
         thereby or otherwise available in respect hereto and thereto, to the
         extent provided herein or therein. Capitalized terms used herein
         without definition are used herein with the meanings ascribed to such
         terms in the Purchase Agreement.

<PAGE>
2.       Interest

         (a)      The Company promises to pay interest on the Accreted Principal
                  Amount (as hereinafter defined) of this Note at the rate of
                  sixteen percent (16%) per annum. The Company shall pay accrued
                  interest quarterly on each March 31, June 30, September 30 and
                  December 31 of each calendar year, or, if any such date shall
                  not be a Business Day, on the next succeeding Business Day to
                  occur after such date (each date upon which interest shall be
                  so payable, an "INTEREST PAYMENT DATE"), beginning on December
                  31, 2001. Interest on this Note shall accrue from the date of
                  issuance until repayment of the Accreted Principal Amount and
                  payment of all accrued interest in full. Interest shall accrue
                  and be computed on the basis of the actual number of days in
                  the related period over 360 days. Interest on the Accreted
                  Principal Amount of this Note at the rate of twelve percent
                  (12%) per annum that shall have accrued and shall be unpaid as
                  of any Interest Payment Date shall be paid on such Interest
                  Payment Date by wire transfer of immediately available funds
                  to an account at a bank designated by the Holder. Interest on
                  the Accreted Principal Amount of this Note at the rate of four
                  percent (4%) per annum that shall have accrued and shall
                  remain unpaid as of any Interest Payment Date (for any
                  Interest Payment Date, a "PIK AMOUNT") shall be paid on such
                  Interest Payment Date by addition of such PIK Amount to the
                  principal amount outstanding under this Note. At any time, the
                  outstanding principal amount of this Note, including all PIK
                  Amounts added thereto through such time, is referred to in
                  this Note as the "ACCRETED PRINCIPAL AMOUNT". The Holder shall
                  promptly notify the Company in writing following the addition
                  of any PIK Amount to principal of this Note; provided,
                  however, that the failure of the Holder to do so shall not
                  impair or affect any of the rights of the Holder hereunder and
                  all PIK Amounts shall be in any event automatically added to
                  the principal amount of this Note, whether or not such notice
                  is given.

         (b)      Notwithstanding the foregoing provisions of this Section 2,
                  but subject to applicable law, upon and during the occurrence
                  of an Event of Default (as hereinafter defined), the Accreted
                  Principal Amount of this Note shall bear interest, from the
                  date of the occurrence of such Event of Default until such
                  Event of Default is cured or waived, payable on demand in
                  immediately available funds, at a rate equal to eighteen
                  percent (18%) per annum (and no PIK Amount shall be added to
                  the Accreted Principal Amount of this Note in respect of such
                  interest). In addition, any overdue interest on this Note
                  shall bear interest, payable on demand in immediately
                  available funds, at a rate equal to eighteen percent (18%) per
                  annum (and no PIK Amount shall be added to the Accreted
                  Principal Amount of this Note in respect of such interest). In
                  the event that any interest rate provided for herein shall be
                  determined to be unlawful, such interest rate shall be
                  computed at the highest rate permitted by applicable law. Any
                  payment by the Company of any interest amount in excess of
                  that permitted by law shall be considered a mistake, with the
                  excess being applied to the principal of this Note without
                  prepayment premium or penalty.

3.       Principal

         The Company shall pay the principal amount due under this Note
         including all PIK Amounts on the Maturity Date.

4.       Mandatory Prepayment

         (a)      (i)      Upon a Change in Control all amounts of principal of
                           and interest on this Note shall become immediately
                           due and payable at the option of the Holder. The
                           Holder may upon receiving notice of a Change in
                           Control, exercise its right to

                                       2

<PAGE>
                           demand payment in full of this Note, by giving the
                           Company notice of such election within five (5)
                           Business Days of receiving such notice. The Holder
                           may elect to be paid on any Business Day not less
                           than twenty (20) and not more than sixty (60)
                           Business Days following the receipt of such notice
                           from the Company.

                  (ii)     In the event that the Company consummates (x) an IPO
                           or (y) an Asset Disposition (as hereinafter defined),
                           the Company shall, within five (5) Business Days
                           following consummation of such IPO or Asset
                           Disposition, apply the Net Proceeds thereof to the
                           prepayment of principal of the Note, to the extent
                           that such Net Proceeds shall not have been required
                           to be applied to Senior Debt and the Company shall,
                           concurrently with such prepayment of principal of
                           this Note, pay interest on the amount prepaid (as
                           provided in Section 2(a) as though the date of
                           prepayment was an Interest Payment Date which
                           interest, however, shall be paid in cash and no PIK
                           Amount shall be added to the Accreted Principal
                           Amount in respect of such payment of interest.

                  (iii)    The Company shall give written notice to the Holder
                           of any Change in Control, IPO or Asset Disposition at
                           least ten (10) and not more than sixty (60) Business
                           Days prior to the consummation of same. Such notice
                           shall be given in the manner specified in Section
                           10.2 of the Purchase Agreement. Nothing contained in
                           this Section 4 shall be deemed a consent by the
                           Holder to the consummation of any Asset Disposition
                           prohibited by the Purchase Agreement and the Company
                           covenants and agrees that, notwithstanding any other
                           provisions of any Transaction Document, it shall not
                           enter into any agreement for an Asset Disposition
                           without the consent in writing of the requisite
                           percentage of Holders of the Notes, unless such
                           agreement provides for the payment in full of the
                           Notes upon consummation thereof. In the event that
                           the closing of an IPO is not consummated within sixty
                           (60) days following the notice of prepayment given by
                           the Company in connection with an IPO, the Company
                           shall be under no obligation to make the payments as
                           set forth above. In addition, in the event that such
                           a notice of prepayment is delivered by the Company in
                           connection with a Change in Control or Asset
                           Disposition transaction and such transaction is not
                           consummated within sixty (60) days of the notice of
                           prepayment, the Company shall be under no obligation
                           to make the payments as set forth above.

                  (iv)     If more than one Note (as defined in the Purchase
                           Agreement) of the Company is outstanding, the Net
                           Proceeds payable under this paragraph (a) shall be
                           applied to the Notes of the Company pro rata.

         (b)      For the purposes of this Note the following terms have the
                  meanings specified below:

                  "ASSET DISPOSITION" shall mean the disposition whether by
                  sale, lease, transfer, loss, damage, destruction, condemnation
                  or otherwise of all or substantially all of the capital stock
                  of the Company or all or substantially all of the assets of
                  the Company and its Subsidiaries.

                  "IPO" shall mean an offering of equity securities of the
                  Company (or any successor thereto), pursuant to a registration
                  statement under the Securities Act of 1933, as amended, in
                  which the gross proceeds realized by the Company equal not
                  less than $30,000,000.

                  "NET PROCEEDS" shall mean the cash proceeds in respect of an
                  IPO or Asset Disposition, net of costs and expenses relating
                  to such IPO or Asset Disposition, any taxes payable (or

                                       3
<PAGE>
                  reserved for after taking into account available credits and
                  deductions) in respect of such IPO or Asset Disposition, any
                  discount or commissions payable in respect of an IPO and, in
                  the case of an Asset Disposition, the amount required to be
                  applied to other Debt (excluding Senior Debt) relating to the
                  relevant asset with the proceeds of such Asset Disposition.

5.       Prepayment Premiums

         (a)      Except as provided in Section 5(b), the Notes are subject to
                  prepayment at the option of the Company, in whole or in part,
                  on any date at the prepayment amounts (expressed as
                  percentages of the Accreted Principal Amount) set forth below
                  plus accrued and unpaid interest thereon (which interest shall
                  be paid in cash and no PIK Amount shall be added to the
                  Accreted Principal Amount in respect of such payment of
                  interest), if any, to the applicable date of prepayment as
                  indicated below (together with costs and expenses, including,
                  without limitation, reasonable fees, charges and disbursements
                  of counsel):

<TABLE>
<CAPTION>
                  IF PREPAID DURING THE PERIOD FROM:                  PERCENTAGE
<S>                                                                   <C>
                  After the Closing Date and on or before
                  October 22, 2002                                    103.00%
                  After October 22, 2002  and on or before
                  October 22, 2003                                    102.00%
                  After October 22, 2003  and on or before
                  October 22, 2004                                    101.00%
                  After October 22, 2004                              100.00%
</TABLE>

         (b)      Notwithstanding the foregoing, in the event that any principal
                  of the Note is prepaid as a result of an IPO, an Asset
                  Disposition, a refinancing of this Note and the Holder
                  participates in such refinancing or as a result of or
                  following a Change in Control (whether through a mandatory or
                  voluntary prepayment), in each case, as provided in Section
                  4(a) hereof, there shall be no prepayment premium payable on
                  the amount prepaid (that is, the prepayment amount shall be
                  100.00% of the Accreted Principal Amount).

         (c)      The Company shall give written notice of voluntary prepayment
                  of this Note or any portion thereof not less than five (5)
                  Business Days prior to the date fixed for such prepayment.
                  Such notice of voluntary prepayment shall be given in the
                  manner specified in Section 10.2 of the Purchase Agreement.
                  Upon notice of prepayment being given by the Company, the
                  Company covenants and agrees that it will prepay, on the date
                  fixed for prepayment in the notice therefor, this Note or the
                  portion hereof so called for prepayment, at the Accreted
                  Principal Amount thereof or the portion thereof so called for
                  prepayment together with interest accrued and unpaid thereon
                  to the date fixed for such prepayment (which interest shall be
                  paid in cash and no PIK Amount shall be added to the Accreted
                  Principal Amount in respect of such payment of interest),
                  together with any prepayment premium and the costs and
                  expenses referred to in Section 5(a).

         (d)      All prepayments under this Section 5 shall include payment of
                  accrued interest on the Accreted Principal Amount so prepaid
                  (which interest shall be paid in cash and no PIK Amount shall
                  be added to the Accreted Principal Amount in respect of such
                  payment of

                                       4
<PAGE>
                  interest) and shall be applied first to all costs, expenses
                  and indemnities payable under the Purchase Agreement, then to
                  payment of default interest, if any, then to payment of
                  accrued interest, and thereafter to principal, provided,
                  however, each prepayment of less than the full outstanding
                  principal balance of the Note shall be in an aggregate
                  principal amount of $200,000 or a whole multiple thereof.

6.       Amendment

         Amendments and modifications of this Note may be made only in the
         manner provided in Sections 10.4 and 10.16 of the Purchase Agreement.

7.       Defaults and Remedies

         (a)      Events of Default

                  An "Event of Default" shall occur if:

                  (i)      the Company shall default in the payment of the
                           principal of this Note, when and as the same shall
                           become due and payable, whether at maturity or at a
                           date fixed for prepayment or by acceleration or
                           otherwise; or

                  (ii)     the Company shall default in the payment of any
                           installment of interest or prepayment premium on this
                           Note according to its terms, or the Company or any
                           other Issuer Party shall default in the payment of
                           any amount (other than principal, interest or
                           premium) payable under the Transaction Documents, in
                           any case, when and as the same shall become due and
                           payable and such default shall continue for a period
                           of 10 days; or

                  (iii)    any Issuer Party shall default in the due observance
                           or performance of any covenant to be observed or
                           performed pursuant to (i) Section 8.1 or 8.2 of the
                           Purchase Agreement, and such default shall continue
                           unremedied for 10 days or (ii) Section 4(a)(iii)
                           hereof or Section 8.3 of the Purchase Agreement; or

                  (iv)     any Issuer Party shall default in the due observance
                           or performance of any covenant, condition or
                           agreement on the part of such Issuer Party to be
                           observed or performed pursuant to the terms hereof or
                           pursuant to the terms of the Purchase Agreement or
                           any of the other Transaction Documents (other than
                           those referred to in clause (i), (ii) or (iii) of
                           this Section 7(a)) and such default shall continue
                           unremedied for a period ending on the earlier of (i)
                           20 days after any of the Issuer Parties first has
                           actual knowledge of such failure or (ii) 20 days
                           after notice of such failure is given by CMII to the
                           Company, or

                  (v)      any representation, warranty or certification made by
                           or on behalf of any Issuer Party in the Purchase
                           Agreement, any Note or any other Transaction Document
                           or in any writing, certificate or other document
                           delivered pursuant hereto or thereto shall have been
                           incorrect in any material respect when made; or

                  (vi)     (x) any default in payment shall occur under any
                           Material Indebtedness (excluding Senior Debt) that
                           entitles the holder or holders thereof (or a
                           requisite percentage thereof) to accelerate the
                           maturity of such Material Indebtedness or (y) any
                           event or condition shall occur under any Material
                           Indebtedness (including Senior Debt) that has
                           resulted in the acceleration of such Material
                           Indebtedness

                                       5

<PAGE>
                           (and such acceleration has not been rescinded) or (z)
                           any Material Indebtedness shall not be paid at its
                           final maturity; or

                  (vii)    an involuntary proceeding shall be commenced or an
                           involuntary petition shall be filed seeking (i)
                           liquidation, reorganization or other relief in
                           respect of the Company or any of its Subsidiaries or
                           its debts, or of a substantial part of its assets,
                           under any Federal, state or foreign bankruptcy,
                           insolvency, receivership or similar law now or
                           hereafter in effect or (ii) the appointment of a
                           receiver, trustee, custodian, sequestrator,
                           conservator or similar official for the Company or
                           for a substantial part of its assets, and, in any
                           such case, such proceeding or petition shall continue
                           undismissed for 60 days or an order or decree
                           approving or ordering any of the foregoing shall be
                           entered; or

                  (viii)   The Company or any of its Subsidiaries shall (i)
                           voluntarily commence any proceeding or file any
                           petition seeking liquidation, reorganization or other
                           relief under any Federal, state or foreign
                           bankruptcy, insolvency, receivership or similar law
                           now or hereafter in effect, (ii) consent to the
                           institution of, or fail to contest in a timely and
                           appropriate manner, any proceeding or petition
                           described in paragraph (vii) of this Section 7(a),
                           (iii) apply for or consent to the appointment of a
                           receiver, trustee, custodian, sequestrator,
                           conservator or similar official for the Company or
                           any of its Subsidiaries or for a substantial part of
                           its assets, (iv) file an answer admitting the
                           material allegations of a petition filed against it
                           in any such proceeding, (v) make a general assignment
                           for the benefit of creditors or (vi) take any action
                           for the purpose of effecting any of the foregoing; or

                  (ix)     The Company or any of its Subsidiaries shall become
                           unable, admit in writing its inability or fail
                           generally to pay its debts as they become due; or

                  (x)      one or more judgments for the payment of money in an
                           aggregate amount in excess of $500,000 (not covered
                           by insurance where the carrier has accepted
                           responsibility) shall be rendered against the Company
                           or any of its Subsidiaries and the same shall remain
                           undischarged for a period of 30 consecutive days
                           during which execution shall not be effectively
                           stayed, or any action shall be legally taken by a
                           judgment creditor to attach or levy upon any material
                           assets of the Company or any of its Subsidiaries to
                           enforce any such judgment and such action is not
                           stayed or bonded within such thirty (30) days; or

                  (xi)     an ERISA Event shall have occurred that, in the
                           reasonable opinion of CMII, when taken together with
                           all other ERISA Events that have occurred, could
                           reasonably be expected to result in a Material
                           Adverse Effect.

                  For the purposes of this Note the following term shall have
                  the meaning specified below:

                  "MATERIAL INDEBTEDNESS" shall mean Indebtedness (other than
                  Indebtedness arising under the Transaction Documents), or
                  obligations in respect of one or more Hedging Agreements, of
                  the Company and its Subsidiaries in an aggregate principal
                  amount exceeding $500,000. For purposes of determining
                  Material Indebtedness, the "principal amount" of the
                  obligations of the Company or any Subsidiary thereof in
                  respect of any Hedging Agreement at any time shall be the
                  maximum aggregate amount (giving effect to any netting
                  agreements) that the Company or such Subsidiary would be
                  required to pay if such Hedging Agreement were terminated at
                  such time.

                                       6

<PAGE>
         (b)      Acceleration

                  If an Event of Default occurs under Section 7(a)(vii) or
                  7(a)(viii) hereof, then the Accreted Principal Amount of,
                  accrued interest on and all other amounts payable under, this
                  Note and the Purchase Agreement shall automatically become
                  immediately due and payable, without presentment, demand,
                  protest or notice of any kind, all of which are hereby
                  expressly waived. If an Event of Default occurs and is
                  continuing under Section 7(a)(i) or 7(a)(ii) hereof and the
                  Holder so notifies the Company in writing, the Accreted
                  Principal Amount of, accrued interest on and all other amounts
                  payable under, this Note may be declared by the Holder of this
                  Note and the Purchase Agreement to be immediately due and
                  payable. If an Event of Default occurs and is continuing under
                  any one or more of Sections 7(a)(iii) through and including
                  Section 7(a)(vi) hereof or Section 7(a)(ix), Section 7(a)(x)
                  or Section 7(a)(xi) hereof and the holders of a majority in
                  outstanding principal amount of the Notes so notifies the
                  Company in writing, the Accreted Principal Amount of, accrued
                  interest on and all other amounts payable under this Note and
                  the Purchase Agreement may be declared by such majority
                  holders to be immediately due and payable. Upon any such
                  declaration, such principal, interest and other amounts shall
                  become immediately due and payable.

8.       Suits for Enforcement

         (a)      Upon the occurrence and during the continuation of any one or
                  more Events of Default, the Holder of this Note may proceed to
                  protect and enforce its rights hereunder by suit in equity,
                  action at law or by other appropriate proceeding, whether for
                  the specific performance of any covenant or agreement
                  contained in the Purchase Agreement or this Note or in aid of
                  the exercise of any power granted in the Purchase Agreement or
                  this Note, or may proceed to enforce the payment of this Note,
                  or to enforce any other legal or equitable right of the
                  Holders of this Note; provided, that in the case of any Event
                  of Default for which acceleration requires the action of the
                  holders of a majority in outstanding principal amount of the
                  Notes, the Holder shall not so proceed without the consent of
                  such majority holders (including the Holder within such
                  majority).

         (b)      In case of any default under this Note, the Company will pay
                  to the Holder such amounts as shall be sufficient to cover the
                  costs and expenses of such Holder due to such default, as
                  provided in Section 7 of the Purchase Agreement and Section
                  10.12 of the Purchase Agreement.

9.       Remedies Cumulative

         No remedy herein conferred upon the Holder is intended to be exclusive
         of any other remedy and each and every such remedy shall be cumulative
         and shall be in addition to every other remedy given hereunder or now
         or hereafter existing at law or in equity or by statute or otherwise.

10.      Remedies Not Waived

         No course of dealing between the Company and the Holder or any delay on
         the part of the Holder in exercising any rights hereunder shall operate
         as a waiver of any right.

11.      Transfer; Registration

         (a)      The term "HOLDER" as used herein shall also include any
                  registered transferee of this Note. Each transferee of this
                  Note acknowledges that this Note has not been registered under
                  the Securities Act, and each Holder agrees that, prior to any
                  proposed transfer of

                                       7

<PAGE>
                  this Note, if such transfer is not made pursuant to either an
                  effective Registration Statement under the Securities Act of
                  1933, as amended (the "ACT"), or an opinion of counsel,
                  reasonably satisfactory in form and substance to the Company,
                  that this Note may be sold without registration under the Act,
                  the Holder will, if requested by the Company, deliver to the
                  Company:

                  (i)      an investment covenant reasonably satisfactory to the
                           Company signed by the proposed transferee;

                  (ii)     an agreement by such transferee to the impression of
                           the restrictive investment legend set forth at
                           Section 16 below on the Note; and

                  (iii)    an agreement by such transferee to be bound by the
                           provisions of this Section 11 relating to the
                           transfer of such Note.

         (b)      This Note is a registered instrument. The Company shall
                  maintain a register (the "NOTE REGISTER") in its principal
                  offices for the purpose of registering the Note and any
                  transfer thereof, which register shall reflect and identify,
                  at all times, the ownership of any interest in the Note. Upon
                  the issuance of this Note, the Company shall record the name
                  of the initial purchaser of this Note in the Note Register as
                  the first Holder. Upon surrender for registration of transfer
                  or exchange of this Note at the principal offices of the
                  Company, the Company shall, at its expense, execute and
                  deliver a new Note of like tenor and of a like aggregate
                  principal amount, registered in the name of the Holder or a
                  transferee or transferees. Every Note surrendered for
                  registration of transfer or exchange shall be duly endorsed,
                  or be accompanied by written instrument of transfer duly
                  executed by the Holder of such Note or such holder's attorney
                  duly authorized in writing. The Company shall have no
                  obligation hereunder to any person other than the registered
                  Holder of this Note.

         (c)      This Note may be transferred or assigned by the Holder at any
                  time subject to Sections 11(a), 11(b) and 13 hereof and
                  Section 10.3 of the Purchase Agreement.

         (d)      In the event that the Holder intends to transfer the Note to
                  more than one transferee, the Company shall, in good faith,
                  cooperate with the Holder to effectuate such a transfer and to
                  issue replacement Notes in the appropriate denominations.

         (e)      The Holder shall bear the costs if any of any transfer or
                  assignment of the Note.

12.      Replacement of Note

         On receipt by the Company of an affidavit of an authorized
         representative of the Holder stating the circumstances of the loss,
         theft, destruction or mutilation of this Note (and in the case of any
         such mutilation, on surrender and cancellation of such Note), the
         Company, at its expense, will promptly execute and deliver, in lieu
         thereof, a new Note of like tenor. If required by the Company, such
         Holder must provide an agreement to indemnify the Company, which in the
         judgment of the Company, is sufficient to protect the Company from any
         loss that it may suffer if a lost, stolen or destroyed Note is
         replaced.

13.      Covenants Bind Successors and Assigns

         All the covenants, stipulations, promises and agreements in this Note
         shall inure to the benefit of and be binding upon the successors and
         permitted assigns of the Company. Subject to Section 11, the Holder may
         assign any of its respective rights under this Note to any Person. The
         Company

                                       8

<PAGE>
         may not assign any of its rights under this Note without the prior
         written consent of the Holder, any such purported assignment without
         such consent being null and void. Except for the provisions of the
         Subordination Agreement stated to be for the benefit of the holders of
         Senior Debt and except as provided in Section 7 of the Purchase
         Agreement, no Person other than the Holder of this Note and its
         successors and permitted assigns is intended to be a beneficiary of any
         of the Transaction Documents.

14.      GOVERNING LAW

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
         LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF
         CONFLICTS OF LAW OF SUCH STATE OTHER THAN SECTION 5-1401 OF THE GENERAL
         OBLIGATIONS LAW OF THE STATE OF NEW YORK.

15.      WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION

         EACH OF THE COMPANY AND THE HOLDER OF THIS NOTE HEREBY WAIVES, TO THE
         EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN
         ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS
         NOTE OR ANY AGREEMENTS OR TRANSACTIONS CONTEMPLATED HEREBY OR THE
         VALIDITY, PROTECTION, INTERPRETATION, OR ENFORCEMENT HEREOF OR THEREOF.
         THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND
         ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THIS
         NOTE, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS,
         BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.
         EACH OF THE COMPANY AND THE HOLDER OF THIS NOTE ACKNOWLEDGES THAT THIS
         WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP,
         THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS
         TRANSACTION, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS
         RELATED FUTURE DEALINGS. EACH OF THE COMPANY AND THE HOLDER OF THIS
         NOTE FURTHER WARRANTS AND REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER
         WITH ITS LEGAL COUNSEL, AND THAT EACH HAS KNOWINGLY AND VOLUNTARILY
         WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
         THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
         ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
         AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE ISSUER
         DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
         NOTE. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A
         WRITTEN CONSENT TO A TRIAL BY THE COURT. EACH OF THE COMPANY AND THE
         HOLDER OF THIS NOTE ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON
         SUCH BOND THAT MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF EACH. EACH OF
         THE COMPANY AND THE HOLDER OF THIS NOTE HEREBY IRREVOCABLY AGREES THAT
         ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE
         OR ANY AGREEMENTS OR TRANSACTIONS CONTEMPLATED HEREBY MAY BE BROUGHT IN
         THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA
         FOR THE SOUTHERN DISTRICT OF NEW YORK AND HEREBY EXPRESSLY SUBMITS TO
         THE PERSONAL JURISDICTION AND VENUE OF SUCH COURTS FOR THE PURPOSES
         THEREOF AND EXPRESSLY WAIVES ANY CLAIM OF IMPROPER VENUE AND ANY CLAIM
         THAT SUCH COURTS ARE AN INCONVENIENT FORUM. EACH OF THE COMPANY AND THE
         HOLDER OF THIS NOTE HEREBY IRREVOCABLY CONSENTS TO THE SERVICE OF
         PROCESS OF ANY OF THE AFOREMENTIONED

                                       9

<PAGE>
         COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING BY THE MAILING OF COPIES
         THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ITS
         ADDRESS SET FORTH IN SECTION 10.2 OF THE PURCHASE AGREEMENT, SUCH
         SERVICE TO BECOME EFFECTIVE 10 DAYS AFTER SUCH MAILING.

16.      Legends

         Until the Subordination Termination Date (as that term is defined in
         that certain Subordination Agreement described below), the Note at all
         times shall contain in a conspicuous manner the following legend:

         THIS NOTE AND THE OBLIGATIONS OF COMPANY ARISING HEREUNDER ARE
         SUBORDINATED IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN
         SUBORDINATION AND INTERCREDITOR AGREEMENT, DATED AS OF October 22,
         2001, AS SUCH SUBORDINATION AGREEMENT MAY BE AMENDED, MODIFIED OR
         SUPPLEMENTED FROM TIME TO TIME (THE "SUBORDINATION AGREEMENT"), BY AND
         AMONG CORPORATE MEZZANINE II, L.P., WILLEY BROTHERS INC. AND FLEET
         CAPITAL CORPORATION FROM TIME TO TIME; AND EACH HOLDER OF THIS NOTE, BY
         ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS OF THE
         SUBORDINATION AGREEMENT.

17.      Headings

         The headings in this Note are for convenience of reference only and
         shall not limit or otherwise affect the meaning hereof.

18.      Severability

         If any one or more of the provisions contained herein, or the
         application thereof in any circumstance, is held invalid, illegal or
         unenforceable in any respect for any reason, the validity, legality and
         enforceability of any such provision in every other respect and of the
         remaining provisions hereof shall not be in any way impaired, unless
         the provisions held invalid, illegal or unenforceable shall
         substantially impair the benefits of the remaining provisions hereof.

                            [Signature Page Follows]

                                       10

<PAGE>
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

WILLEY BROTHERS INC.

By:      /s/Kevin Kelly
   ---------------------------------
         Name:    Kevin Kelly
         Title:   President

<PAGE>

                                                                   EXECUTION

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAW OF ANY STATE AND MAY NOT BE SOLD,
TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR
PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH
ACT AND SUCH LAWS. THE SALE OR OTHER TRANSFER OF THIS WARRANT IS ALSO SUBJECT TO
THE RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 10.3 OF THE "PURCHASE
AGREEMENT" (AS HEREINAFTER DEFINED).

THIS WARRANT AND THE OBLIGATIONS OF THE COMPANY AND WILLEY BROTHERS INC.
("WILLEY") ARISING HEREUNDER ARE SUBORDINATED IN THE MANNER AND TO THE EXTENT
SET FORTH IN THAT CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT DATED AS OF
OCTOBER 22, 2001, AS SUCH SUBORDINATION AND INTERCREDITOR AGREEMENT MAY BE
AMENDED, MODIFIED OR SUPPLEMENTED FROM TIME TO TIME, (THE "SUBORDINATION
AGREEMENT") BY AND AMONG CORPORATE MEZZANINE II, L.P., WILLEY AND FLEET CAPITAL
CORPORATION FROM TIME TO TIME; AND EACH HOLDER OF THIS WARRANT, BY ITS
ACCEPTANCE HEREOF, SHALL BE BOUND BY THE PROVISIONS OF THE SUBORDINATION
AGREEMENT.

                                                             Warrant to Purchase
                                                               405,000 shares of
                                                                    Common Stock
                                                                OCTOBER 22, 2001

                            BRANDPARTNERS GROUP, INC.

                          COMMON STOCK PURCHASE WARRANT

                           Void after October 22, 2011

BRANDPARTNERS GROUP, INC. (the "COMPANY"), a Delaware corporation, hereby
certifies that for value received, CORPORATE MEZZANINE II, L.P., a British
Virgin Island limited partnership, or its successors or assigns (the "HOLDER"),
is entitled to purchase, subject to the terms and conditions hereinafter set
forth, an aggregate of 405,000 fully paid and nonassessable Shares of Common
Stock of the Company, at an aggregate exercise price of US$0.01 per Share (as
adjusted from time to time in accordance with the terms hereof, the "PURCHASE
PRICE"), subject to adjustment as provided herein, at any time or from time to
time beginning on the date hereof and prior to 5:00 P.M., New York City time, on
October 22, 2011 (the "EXPIRATION DATE").

<PAGE>
This Warrant is issued pursuant to the Subordinated Note and Warrant Purchase
Agreement (as amended, modified or supplemented from time to time, the "PURCHASE
AGREEMENT"), dated as of October 22, 2001, by and among the Company, Willey
Brothers Inc. and the Holder, and is subject to the terms thereof. Capitalized
terms used herein and not otherwise defined shall have the meanings assigned
such terms in the Purchase Agreement. The Holder is entitled to the rights and
subject to the obligations contained in the Purchase Agreement.

1.       Definitions

         For the purposes of this Warrant, the following terms shall have the
         meanings indicated:

         "ACT" means the Securities Act of 1933, as amended, together with the
         rules and regulations promulgated thereunder from time to time.

         "AFFILIATE" shall mean any Person directly or indirectly controlling,
         controlled by or under common control with, the Holder. For purposes of
         this definition, "control" (including with correlative meanings, the
         terms "controlling", "controlled by" and "under common control with")
         shall mean the possession, directly or indirectly, of the power to
         direct or cause the direction of the management and policies of a
         Person, whether through the ownership of voting securities, by contract
         or otherwise.

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday or
         other day on which commercial banks in the City of New York are
         authorized or required by law or executive order to close.

         "CALL CLOSING DATE" shall have the meaning ascribed to such term in
         Section 17 below.

         "CALL NOTICE" shall have the meaning ascribed to such term in Section
         17 below.

         "CLOSING PRICE" shall mean, with respect to each Share for any day, (a)
         the last reported sale price regular way or, in case no such sale takes
         place on such day, the average of the closing bid and asked prices
         regular way, in either case as reported on the principal national
         securities exchange on which the Shares are listed or admitted for
         trading or (b) if the Shares are not listed or admitted for trading on
         any national securities exchange, the last reported sale price or, in
         case no such sale takes place on such day, the average of the highest
         reported bid and the lowest reported asked quotation for the Shares, in
         either case as reported on the NASDAQ or a similar service if NASDAQ is
         no longer reporting such information.

         "CMII" shall mean Corporate Mezzanine II, L.P.

         "CMII HOLDER" means CMII and following the assignment (prior to any
         full or partial exercise hereunder) by CMII of this Warrant in whole,
         the Person to whom this Warrant shall have been so assigned.

         "COMMISSION" shall mean the Securities and Exchange Commission or other
         federal agency then administering the Act and other federal securities
         laws.

                                       2

<PAGE>
         "COMMON STOCK" shall mean each class of capital stock of the Company
         that is not limited as to a fixed sum or percentage of par or stated
         value in respect of rights of the holders thereof to participate in
         dividends or distributions of assets upon any liquidation or winding up
         of the Company.

         "COMPANY" shall have the meaning ascribed to such term in the first
         paragraph of this Warrant.

         "ELECTION TO PURCHASE COMMON STOCK" shall have the meaning ascribed to
         such term in Subsection 2(a).

         "EXERCISE DATE" shall have the meaning ascribed to such term in
         Subsection 2(d).

         "EXERCISE RATE" shall have the meaning ascribed to such term in Section
         3(c).

         "EXCLUDED ISSUED WARRANT SHARE" shall mean, at any time, an Issued
         Warrant Share that (i) has been registered pursuant to a Registration
         Statement as of such time or (ii) can be sold under and in accordance
         with Rule 144K of the Rules under the Act, at such time.
         Notwithstanding the foregoing, an Issued Warrant Share that would be an
         Excluded Warrant Share, but for the exercise of this Warrant for such
         Issued Warrant Share under Section 2(b)(i) hereof (i.e., a "cash"
         exercise), shall constitute an Excluded Issued Warrant Share.

         "EXPIRATION DATE" shall have the meaning ascribed to such term in the
         first paragraph of this Warrant.

         "EXCLUDED WARRANT SHARES" shall mean Warrant Shares that, upon issuance
         pursuant to a cashless exercise under 2(b)(ii), 2(b)(iii) or 2(b)(iv)
         hereof could be sold under and in accordance with Rule 144K of the
         Rules under the Act. Upon actual issuance, Warrant Shares shall not
         constitute "Excluded Warrant Shares" and shall constitute "Excluded
         Issued Warrant Shares" to the extent and so long as they satisfy the
         requirements of such definition.

         "FAIR MARKET VALUE" shall be determined in accordance with Section
         3(b).

         "FIRST TRADING DAY" shall have the meaning ascribed to such term in
         Section 15(c).

         "FORMULA PRICE" shall mean, at any time, the value for each Warrant
         Share or Issued Warrant Share obtained by dividing (A) the product
         obtained by multiplying (I) .045 times (II) the amount, if any, that
         (i) the sum of (a) the product of (x) the trailing twelve months EBITDA
         of Willey ending on the last day of the calendar month ending on or
         most recently prior to the date of the Put Notice, Issued Warrant Put
         Notice or Call Notice times (y) 6.5, plus (b) cash and cash equivalents
         on hand of Willey, exceeds (ii) the sum of (x) Senior Debt of Willey
         plus (y) the then outstanding principal amount of the Notes, plus (z)
         the then outstanding principal of the Seller Notes by (B) the aggregate
         number of Warrant Shares issuable upon exercise of this Warrant and
         Issued Warrant Shares; provided, that, the aggregate value of all
         Warrant Shares and Issued Warrant Shares calculated pursuant to this
         definition of Formula Price shall not exceed that amount, which when
         added to all

                                       3

<PAGE>
         interest, premium and the placement fee, paid to the CMII (it
         successors and assigns) with respect to the Notes (in each case in
         cash), and assuming the timely and complete payment of principal of the
         Notes in cash, would result in CMII (its successors and assigns)
         realizing the sum of (i) a 35% internal rate of return on its
         investment in the Notes and this Warrant as of the Put Closing Date,
         Issued Warrant Share Put Closing Date or Call Closing Date specified in
         the Put Notice, Issued Warrant Share Put Notice or Call Notice, as
         applicable, plus (ii) interest at 16% per annum on the amount of the
         Warrant Repurchase Price from such Put Closing Date, Issued Warrant
         Share Put Closing Date or Call Closing Date, as applicable, through the
         date of receipt by CMII (its successors and assigns) of payment in full
         of the Warrant Repurchase Price (whether payable in cash, a Put Note or
         a combination thereof and whether the Company has taken the
         Registration Option). For the purposes of calculating such internal
         rate of return, payment in cash of that portion of principal of Notes
         constituting "PIK Amounts" (as defined therein) added to the "Accreted
         Principal Amount" (as defined therein) in lieu of cash payment interest
         shall be included as payments to CMII (its successors and assigns) of
         interest.

         "FULLY DILUTED SHARES" shall mean at any time (i) all Shares
         outstanding as of such time, and (ii) all Shares into or for which
         rights, options, warrants or other securities outstanding as of such
         time are exercisable, exchangeable or convertible (other than the
         Warrants).

         "HOLDER" shall have the meaning ascribed to such term in the first
         paragraph and Section 9 of this Warrant.

         "ISSUED WARRANT SHARES" shall have the meaning ascribed to such term in
         Section 16 below.

         "ISSUED WARRANT SHARE PUT NOTICE" shall have the meaning ascribed to
         such term in Section 16 below.

         "ISSUED WARRANT SHARE PUT CLOSING DATE" shall have the meaning ascribed
         to such term in Section 16 below.

         "LIQUIDITY EVENT" shall mean (i) a consolidation or merger involving
         the Company in which a Change in Control occurs or (ii) a sale of all
         or substantially all of the assets of the Company.

         "NASDAQ" shall mean the Automatic Quotation System of the National
         Association of Securities Dealers, Inc.

         "NEW WARRANT" shall have the meaning ascribed to such term in Section
         4.

         "PERSON" shall mean any individual, firm, corporation, partnership,
         trust, incorporated or unincorporated association, joint venture, joint
         stock company, government (or an agency or political subdivision
         thereof) or other entity of any kind, and shall include any successor
         (by merger or otherwise) of such entity.

                                       4

<PAGE>
         "PURCHASE AGREEMENT" shall have the meaning ascribed to such term in
         the second paragraph of this Warrant.

         "PURCHASE PRICE" shall have the meaning ascribed to such term in the
         first paragraph of this Warrant.

         "PUT NOTICE" shall have the meaning ascribed to such term in Section 15
         below.

         "PUT CLOSING DATE" shall have the meaning ascribed to such term in
         Section 15 below.

         "PUT NOTE" shall have the meaning ascribed to such term in Section 15
         below.

         "PUT RESTRICTIONS" shall have the meaning ascribed to such term in
         Section 15 below.

         "REGISTRATION OPTION" shall have the meaning ascribed to such term in
         Section 15 below.

         "REGISTRATION STATEMENT" shall mean a registration statement under the
         Act.

         "REPURCHASE EVENT" shall have the meaning ascribed to such term in
         Section 15 below.

         "SHARES" shall mean the shares of Common Stock of the Company, and any
         other securities resulting from successive changes or reclassification
         of such shares.

         "TIME OF DETERMINATION" shall have the meaning ascribed to such term in
         Section 3(c) below.

         "WARRANT" shall mean this Warrant and any subsequent Warrant issued
         pursuant to Subsection 2(c).

         "WARRANT REGISTER" shall have the meaning ascribed to such term in
         Subsection 10(c).

         "WARRANT REPURCHASE PRICE" shall be the amount obtained by (i)
         multiplying (a) the number of Warrants Shares or Issued Warrant Shares
         subject to repurchase by (b) (1) in the event the Warrant Repurchase
         Price is payable to a CMII Holder, the greater of (x) the Fair Market
         Value per Share and (y) the Formula Price per Share or (2) in any other
         event, the Fair Market Value per Share and (ii) subtracting therefrom
         the aggregate Purchase Price for such Warrant Shares (without such
         subtraction in the case of repurchase of Issued Warrant Shares).

         "WARRANT SHARES" shall mean the Shares issuable upon exercise of the
         Warrant and, except where the context otherwise requires, shall include
         Issued Warrant Shares.

         "WILLEY" shall have the meaning given in the first paragraph of this
         Warrant.

2.       Exercise of Warrant

         (a)      Exercise

                  This Warrant may be exercised, in whole or in part, at any
                  time or from time to time during the period beginning on the
                  date hereof and ending on the Expiration Date, by

                                       5

<PAGE>
                  surrendering to the Company at its principal office this
                  Warrant, with the form of Election to Purchase Common Stock
                  (the "ELECTION TO PURCHASE COMMON STOCK") attached hereto as
                  Exhibit A duly executed by the Holder and accompanied by
                  payment of the Purchase Price for the number of Shares
                  specified in such form.

         (b)      Delivery of Shares; Payment of Purchase Price

                  As soon as practicable after surrender of this Warrant and
                  receipt of payment, the Company shall promptly issue and
                  deliver to the Holder a certificate or certificates for the
                  number of Shares set forth in the Election to Purchase Common
                  Stock, in such name or names as may be designated by such
                  Holder, along with a check for the amount of cash to be paid
                  in lieu of issuance of fractional Shares, if any, pursuant to
                  Section 6. Payment of the Purchase Price may be made as
                  follows (or by any combination of the following): (i) in
                  United States currency by cash or delivery of a certified
                  check, bank draft or postal or express money order payable to
                  the order of the Company, (ii) by assigning to the Company all
                  or any part of the unpaid principal amount of the Notes held
                  by the Holder in a principal amount equal to the Purchase
                  Price, (iii) by surrender of a number of Shares held by the
                  Holder at least equal to the quotient obtained by dividing (A)
                  the Purchase Price payable with respect to the portion of this
                  Warrant then being exercised by (B) the Fair Market Value on
                  the Exercise Date, or (iv) by cancellation of any portion of
                  this Warrant with respect to the number of Shares equal at
                  least to the quotient obtained by dividing (A) the product
                  obtained by multiplying (i) the number of Shares with respect
                  to which this Warrant is being exercised times (ii) the
                  Purchase Price per Share by (B) the difference between (1)
                  Fair Market Value of the number of Shares to be cancelled on
                  the Exercise Date, and (2) the Purchase Price per Share.

         (c)      Partial Exercise

                  If this Warrant is exercised for less than all of the Shares
                  purchasable under this Warrant, the Company shall cancel this
                  Warrant upon surrender hereof and shall execute and deliver to
                  the Holder a new Warrant of like tenor for the balance of the
                  Shares purchasable hereunder.

         (d)      When Exercise Effective

                  The exercise of this Warrant shall be deemed to have been
                  effective immediately prior to the close of business on the
                  Business Day on which this Warrant is surrendered to and the
                  Purchase Price is received by the Company as provided in this
                  Section 2 (the "EXERCISE DATE") and the Person in whose name
                  any certificate for Shares shall be issuable upon such
                  exercise, as provided in Subsection 2(b), shall be deemed to
                  be the record holder of such Shares for all purposes on the
                  Exercise Date provided, that the Holder shall be responsible
                  for any taxes or other costs and expenses incurred in
                  connection with transferring the Warrant.

                                       6

<PAGE>
3.       Adjustment of Purchase Price and Number of Capital Shares

         The Purchase Price and the number of Shares issuable upon exercise of
         this Warrant shall be adjusted from time to time upon the occurrence of
         the following events:

         (a)      Dividend, Subdivision, Combination or Reclassification of
                  Capital Shares

                  If the Company shall, at any time or from time to time, (i)
                  declare (A) a dividend on, or (B) a distribution in respect of
                  Shares payable in additional Shares, (ii) subdivide the
                  outstanding Shares into a larger number of Shares, (iii)
                  combine the outstanding Shares into a smaller number of
                  Shares, or (iv) issue any Shares or other interests in a
                  reclassification of the Shares (including any such
                  reclassification in connection with a consolidation or
                  merger), then in each such case, the Purchase Price in effect
                  at the time of the record date for such dividend or of the
                  effective date of such subdivision, combination or
                  reclassification or other event, and the number and kind of
                  Shares or interests issuable on such date shall be
                  proportionately adjusted so that the Holder of any Warrant
                  exercised after such date shall be entitled to receive, upon
                  payment of the same aggregate amount as would have been
                  payable before such date, the aggregate number and kind of
                  Shares or interests which, if such Warrant had been exercised
                  immediately prior to such date, such Holder would have owned
                  upon such exercise and been entitled to receive by virtue of
                  such dividend, subdivision, combination or reclassification.
                  Any such adjustment shall become effective immediately after
                  the record date of such dividend or the effective date of such
                  subdivision, combination or reclassification. Such adjustment
                  shall be made successively whenever any event listed above
                  shall occur. If such a dividend is declared and such dividend
                  of the type described above is not paid, the Purchase Price
                  shall again be adjusted to be the Purchase Price in effect
                  immediately prior to such record date and any adjustment made
                  to the number of Shares issuable to the Holder under this
                  Warrant as a consequence of the declaration of such dividend
                  shall be reversed. Notwithstanding the foregoing, in the event
                  that the Company shall, at any time or from time to time,
                  declare a dividend on or distribution in respect of Shares
                  payable in cash or other property (except Shares), then the
                  Holder shall be entitled to receive, and the Company shall pay
                  the Holder, the amount obtained by multiplying (x) the amount
                  of the cash dividend declared per Share or the value (as
                  determined in good faith by the Board of Directors of the
                  Company) of any such non-cash dividend per Share by (y) the
                  total number of Shares into which this Warrant is exercisable
                  on the record date set for the payment of such dividend
                  notwithstanding the fact that the Warrant has not been
                  exercised by the Holder on such date.

         (b)      Determination of Fair Market Value

                  For the purposes hereof, the Fair Market Value per Share on
                  any date shall be as is agreed to by the Company and the
                  Holder (and the Company and the Holder shall

                                       7

<PAGE>
                  attempt to agree upon such Fair Market Value within ten (10)
                  days). If the Company and the Holder are unable to agree upon
                  the Fair Market Value per Share within said ten (10) day
                  period, then the Fair Market Value per Share on any date shall
                  be deemed to be the average of the daily Closing Price per
                  Share for the 20 consecutive trading days ending on such date
                  (or, for the purposes of Section 15(c), ending on the First
                  Trading Day). If the Shares are not listed or admitted for
                  trading on any national securities exchange or quoted by
                  NASDAQ or a similar service, and the parties are unable
                  otherwise to mutually and promptly agree upon Fair Market
                  Value, then the Company, on the one hand, and the Holder, on
                  the other hand, shall each promptly appoint as an appraiser an
                  individual who shall be a member of a nationally recognized
                  investment banking firm. Each appraiser shall be instructed
                  within 30 days of appointment to determine the Fair Market
                  Value per Share as of such date. If the two appraisers
                  thereupon are unable to agree on the Fair Market Value per
                  Share within such 30-day period, then the two appraisers,
                  within 10 days after the end of such 30-day period, shall
                  jointly select a third appraiser. The third appraiser shall,
                  within 30 days of its appointment, determine, in good faith,
                  the Fair Market Value per Share and such determination shall
                  be controlling. If any party fails to appoint an appraiser or
                  if one of the two initial appraisers fails after appointment
                  to submit its appraisal within the required period, then the
                  appraisal submitted by the remaining appraiser shall be
                  controlling. The cost of the foregoing appraisals shall be
                  shared one-half by the Company and one-half by the Holder;
                  provided, however, in the event a third appraiser is utilized
                  and one of the two initial appraisals (but not the other
                  initial appraisal) is greater than or less than the appraisal
                  by such third appraiser by 10% or more, then the cost of all
                  of the foregoing appraisals shall be borne by the party who
                  appointed the appraiser who made such initial appraisal.

         (c)      Dilutive Issuances

                  If the Company shall, at any time and from time to time, after
                  the date hereof, directly or indirectly, sell or issue any
                  Shares (regardless of whether originally issued or from the
                  Company's treasury), or rights, options, warrants or
                  convertible or exchangeable securities containing the right to
                  subscribe for or purchase any Capital Shares, or make any
                  distributions (other than (i) distributions received by the
                  Holder pursuant to Section 3(b), (ii) upon exercise of this
                  Warrant, (iii) the issuance of Shares pursuant to options,
                  warrants, convertible securities and similar rights
                  outstanding on the date of this Warrant and described in
                  reports filed by the Company with the Securities and Exchange
                  Commission pursuant to Section 13 or 15(d) of the Securities
                  and Exchange Act or (iv) issued pursuant to any employee stock
                  option, stock purchase or other benefit plan) as a result of
                  which the Fair Market Value per Share immediately after such
                  sale, issuance or distribution represents a lesser amount than
                  the Fair Market Value per Share immediately prior to such
                  sale, issuance or distribution (the "TIME OF DETERMINATION"),
                  then, the number of Shares issuable upon the exercise of this
                  Warrant

                                       8

<PAGE>
                  (the "EXERCISE RATE") shall be adjusted in accordance with the
                  formula:

<TABLE>
<S>                                          <C>         <C>   <C>
                                             E'  =  E    x     O  +  N
                                                               -------
                                                               O + N x P
                                                                   -----
                                                                     M
</TABLE>

                  and the Purchase Price shall be adjusted in accordance with
                  the following formula:

<TABLE>
<S>                                          <C>         <C>   <C>
                                             PP' =  PP   x      E
                                                                -
                                                                E'
</TABLE>

                  where:

                           E'       =        the adjusted Exercise Rate.
                           E        =        the Exercise Rate immediately
                                             prior to the time of determination
                                             for any such issuance, sale or
                                             distribution.

                          PP'       =        the adjusted Purchase Price.

                          PP        =        the Purchase Price immediately
                                             prior to the Time of Determination
                                             for any such issuance, sale or
                                             distribution.

                          O         =        the number of Fully Diluted
                                             Shares outstanding immediately
                                             prior to the time of determination
                                             for any such issuance, sale or
                                             distribution.

                          N         =        the number of additional Shares
                                             issued, sold or issuable upon
                                             exercise of such rights, options,
                                             warrants or other securities.

                          P         =        the per share price received and
                                             receivable by the Company in the
                                             case of any issuance or sale of
                                             Shares or rights, options, warrants
                                             or other securities (inclusive of
                                             the consideration per share of
                                             Shares payable upon exercise of
                                             such rights, options, warrants or
                                             other securities.

                          M         =        the Fair Market Value per share
                                             of Shares at the time of
                                             determination for any such
                                             issuance, sale or distribution.

Notwithstanding the foregoing, there shall be no adjustment under this Section
3(c) in respect of the issuance of any Shares in the event that the
consideration received by the Company for such Shares equal at least the Fair
Market Value of such Shares at the time of issuance or at the time of execution
of a binding agreement to issue Shares within two weeks of such execution, so
long as such issuance occurs within such period of two weeks. In the event that
(i) the consideration for such Shares is determined by an underwriter, placement
agent or other independent evaluator (acting in such capacity in connection with
such issuance) that is not an Affiliate of the Company, or (ii) the
consideration for

                                       9

<PAGE>
such Shares is at least equal to the Closing Price (if any) on the date of
issuance or at the time of execution of a binding agreement to issue shares so
long as such issuance occurs within such period of two weeks, then such
consideration shall be deemed, for the purposes of this Section 3(c), to be
equal to at least the Fair Market Value of such Shares.

4.       Reorganization, Reclassification, Merger and Sale of Assets

         If there occurs any capital reorganization or any reclassification or
         other modification of the economic terms of the Shares of the Company,
         the consolidation or merger of the Company with or into another Person
         (other than a merger or consolidation of the Company in which the
         Company is the continuing entity and which does not result in any
         reorganization, reclassification or modification of its outstanding
         Shares) or the sale or conveyance of all or substantially all of the
         assets of the Company to another Person, then, the Holder will be
         entitled to receive upon surrender of the Warrant to the Company (x) to
         the extent there are cash proceeds resulting from the consummation of
         such reorganization, reclassification, consolidation, merger, sale or
         conveyance, in exchange for such Warrant, cash in an amount equal to
         the cash proceeds that would have been payable to the Holder had the
         Holder exercised such Warrant immediately prior to the consummation of
         such reorganization, reclassification, consolidation, merger, sale or
         conveyance, and (y) to the extent that the Holder would be entitled to
         receive securities (in addition to or in lieu of cash in connection
         with any such reorganization, reclassification, consolidation, merger,
         sale or conveyance), the same kind and amounts of securities or other
         assets, or both, that are issuable or distributable to the holders of
         outstanding Shares of the Company with respect to their Shares upon
         such reorganization, reclassification, consolidation, merger, sale or
         conveyance, as would have been deliverable to the Holder had the Holder
         exercised such Warrant immediately prior to the consummation of such
         reorganization, reclassification, consolidation, merger, sale or
         conveyance; provided, however, that upon the occurrence of any such
         reorganization, reclassification, consolidation, merger, sale or other
         conveyance, at the sole option and discretion of the Holder, the Holder
         may, by notice to the Company, require the Company to issue to the
         Holder a warrant (the "NEW WARRANT") for the purchase of all or any
         portion of any such securities upon terms and conditions which provide
         to the Holder the same rights, protections and benefits in respect of
         such securities as this Warrant provides to such Holder with respect to
         the Shares, including, without limitation, the right to exercise rights
         of the type granted pursuant to Section 15 and Section 16 hereof
         pursuant to the provisions thereof, and in any event, the right to
         require the Company to purchase the New Warrants or Shares issued upon
         exercise thereof upon the same terms and conditions as contained in
         Section 15 and Section 16. The Company will not effect any such
         reclassification, reorganization, consolidation or merger in which the
         Company is not the surviving entity unless upon or prior to the
         consummation thereof the successor entity (being other than the
         Company) resulting from such reclassification, reorganization,
         consolidation or merger shall assume by written instrument, executed
         and mailed or delivered to each Holder at the last address thereof
         appearing on the books of the Company, the obligation to deliver to
         such Holder New Warrants for such securities that, in accordance with
         the foregoing provisions, the Holder may be entitled

                                       10

<PAGE>
         to purchase. In the event that the Company and the Holder are unable to
         mutually agree upon an appropriate adjustment as described above, the
         parties shall utilize one or more third party appraisers, in the manner
         described in Section 3(b) above, to determine the appropriate
         adjustment. Nothing contained in this Section 4 shall limit or affect
         the right of the Holder to exercise its rights under Section 15 and
         Section 16.

5.       Certificate as to Adjustments

         Whenever the Purchase Price and/or the number of Shares issuable, or
         the securities or other property deliverable, upon the exercise of this
         Warrant shall be adjusted pursuant to the provisions hereof, the
         Company shall promptly give written notice thereof to the Holder, in
         accordance with Section 14, in the form of a certificate signed by a
         Financial Officer of the Company stating the adjusted Purchase Price,
         the number of Shares issuable, or the securities or other property
         deliverable, upon exercise of the Warrant calculated to the nearest
         cent or the nearest Share and setting forth in reasonable detail the
         method of calculation and the facts requiring such adjustment and upon
         which such calculation is based. Each adjustment shall remain in effect
         until a subsequent adjustment is required.

6.       Fractional Shares

         Notwithstanding an adjustment pursuant to Section 3 in the number of
         Shares covered by this Warrant or any other provision of this Warrant,
         the Company shall not be required to issue fractions of Shares upon
         exercise of this Warrant or to distribute certificates that evidence
         fractional Shares. In lieu of fractional Shares, the Company may make
         payment to the Holder, at the time of exercise of this Warrant as
         herein provided, of an amount in cash equal to such fraction multiplied
         by the greater of the Fair Market Value on the Exercise Date and the
         Purchase Price.

7.       Notice of Proposed Actions

         In case the Company shall propose at any time or from time to time (a)
         to declare or pay any dividend to the holders of Shares or to make any
         other distribution to the holders of Shares, (b) to offer to the
         holders of Shares rights or warrants to subscribe for or to purchase
         any additional Shares of any class or any other securities, rights or
         options, (c) to effect any reorganization, reclassification or
         modification of its Shares, (d) to effect any consolidation, merger,
         sale or other conveyance of all or substantially all of the property,
         assets or business of the Company which would, if consummated, adjust
         the Purchase Price or the securities issuable upon exercise of this
         Warrant, (e) to effect the liquidation, dissolution or winding up of
         the Company, or (f) to take any other action that would require a vote
         of the holders of the Company's Shares, then, in each such case, the
         Company shall give to the Holder, in accordance with Section 14, a
         written notice of such proposed action, which shall specify (i) the
         record date for the purposes of such dividend, distribution of rights
         or warrants or vote of the holders of the Company's Shares, or if a
         record is not to be taken, the date as of which the holders of Shares
         of record to be entitled to such dividend, distribution of rights or
         warrants or vote is to be

                                       11

<PAGE>
         determined, or (ii) the date on which such reorganization,
         reclassification, modification, consolidation, merger, sale or other
         conveyance, liquidation, dissolution or winding up or other action is
         expected to become effective, and such notice shall be so given as
         promptly as possible but in any event at least ten (10) Business Days
         prior to the applicable record, determination or effective date
         specified in such notice.

8.       No Dilution or Impairment

         The Company will not, by amendment of its governance documents or
         through any reorganization, reclassification, modification, transfer of
         assets, consolidation, merger, dissolution, issue or sale of securities
         or any other action, avoid or seek to avoid the observance or
         performance of any of the terms of this Warrant, but will at all times
         in good faith assist in the carrying out of all such terms and in the
         taking of all such action as may be necessary or appropriate in order
         to protect the rights of the Holder of this Warrant against dilution
         (for which an adjustment hereunder is not specifically provided and
         which would have the same type of adverse financial effect on the
         Holder as that for which an anti-dilution adjustment is specifically
         provided hereunder) or other impairment. Without limiting the
         generality of the foregoing, the Company (a) will at all times reserve
         and keep available the maximum number of its authorized Shares, free
         from all preemptive rights therein, which number of authorized Shares
         will be sufficient to permit the full exercise of this Warrant, and (b)
         will take all such action as may be necessary or appropriate in order
         that all Shares as may be issued pursuant to the exercise of this
         Warrant will, upon issuance, be duly and validly issued, fully paid and
         nonassessable, and free from all taxes, liens and charges with respect
         to the issue thereof. The Company will not amend its certificate of
         incorporation in any manner which would affect the Shares into which
         the Warrants are exercisable in a manner that is different than the
         effect which such amendment would have on other Shares (and is adverse
         in respect of the Shares).

9.       Replacement of Warrants

         On receipt by the Company of an affidavit of an authorized
         representative of the Holder stating the circumstances of the loss,
         theft, destruction or mutilation of this Warrant (and in the case of
         any such mutilation, on surrender and cancellation of such Warrant),
         the Company at its expense will promptly execute and deliver, in lieu
         thereof, a new Warrant of like tenor which shall be exercisable for a
         like number of Shares. If required by the Company, such Holder must
         provide an agreement to indemnify the Company which, in the judgment of
         the Company, is sufficient to protect the Company from any loss which
         it may suffer if a lost, stolen or destroyed Warrant is replaced.

10.      Restrictions on Transfer

         (a)      The term "HOLDER" as used herein shall also include any
                  transferee of this Warrant whose name has been recorded by the
                  Company in the Warrant Register (as hereinafter defined). Each
                  Holder of this Warrant or the Shares issuable upon the
                  exercise hereof acknowledges that this Warrant and the Shares
                  issuable upon the exercise hereof have

                                       12
<PAGE>
                  not been registered under the Securities Act or any state
                  securities or blue sky law and may be transferred only
                  pursuant to an effective registration under the Securities Act
                  or any applicable state securities or blue sky law or pursuant
                  to an applicable exemption from the registration requirements
                  of the Securities Act or any applicable state securities or
                  blue sky law, subject to the restrictions on transfer set
                  forth in this Section 10 and in Section 10.3 of the Purchase
                  Agreement.

         (b)      With respect to a transfer that should occur prior to the time
                  that the offer and sale of this Warrant or the Shares issuable
                  upon the exercise hereof is registered under the Securities
                  Act, such Holders, at their sole expense, shall request an
                  opinion of counsel addressed to the Company (which shall be
                  rendered by counsel reasonably acceptable to the Company and
                  which opinion shall be reasonably acceptable to the Company)
                  that the proposed transfer may be effected without
                  registration or qualification under any Federal or state
                  securities or blue sky law. Counsel shall, as promptly as
                  practicable, notify the Company and the Holder of such opinion
                  and of the terms and conditions, if any, to be observed in
                  such transfer, whereupon the Holder shall be entitled to
                  transfer this Warrant or such Shares (or portion thereof),
                  subject to such terms and conditions, any other provisions and
                  limitations of this Warrant.

         (c)      The Company shall maintain a register (the "WARRANT REGISTER")
                  at its principal office for the purpose of registering the
                  Warrant and any transfer hereof, which register shall reflect
                  and identify, at all times, the ownership of any interest in
                  the Warrant. Upon the issuance of this Warrant, the Company
                  shall record the name of the initial purchaser of this Warrant
                  in the Warrant Register as the first Holder. Upon surrender
                  for registration of transfer or exchange of this Warrant
                  together with a properly executed Form of Assignment attached
                  hereto as Exhibit B at the principal office of the Company,
                  the Company shall, at its expense, (except that the Holder
                  shall pay all applicable transfer taxes) execute and deliver
                  one or more new Warrants of like tenor which shall be
                  exercisable for a like aggregate number of Shares, registered
                  in the name of the Holder or a transferee or transferees.

         (d)      Subject to the foregoing, this Warrant may be transferred or
                  assigned by the Holder at any time.

11.      No Rights or Liability as a Shareholder

         This Warrant does not entitle the Holder hereof to any voting rights or
         other rights as a holder of the Company's Shares. No provisions hereof,
         in the absence of affirmative action by the Holder hereof to exercise
         this Warrant for Shares, and no enumeration herein of the rights or
         privileges of the Holder, shall give rise to any liability of such
         Holder as a holder of the Company's Shares.

12.      Charges, Taxes and Expenses

                                       13
<PAGE>
         Issuance of certificates for Shares to the Holder upon the exercise of
         this Warrant shall be made without charge to the Holder hereof for any
         issue or transfer tax, or other incidental expense, in respect of the
         issuance or delivery of such certificates or the securities represented
         thereby, all of which taxes and expenses shall be paid by the Company.

13.      Amendment or Waiver

         This Warrant and any term hereof may be amended, waived, discharged or
         terminated only by and with the written consent of the Company, Willey
         and the Holder.

14.      Notices

         Any notice or other communication (or delivery) required or permitted
         hereunder shall be made in writing and shall be by registered mail,
         return receipt requested, telecopier, courier service or personal
         delivery to the Company at its principal office as specified in Section
         10.2 of the Purchase Agreement and to the Holder at its address as it
         appears in the Warrant Register. All such notices and communications
         (and deliveries) shall be deemed to have been duly given: when
         delivered by hand, if personally delivered; when delivered by courier,
         if delivered by commercial overnight courier service; five Business
         Days after being deposited in the mail, postage prepaid, if mailed; and
         when receipt is acknowledged, if telecopied.

15.      Willey's Obligation to Repurchase the Warrant

         (a)      The Holder shall have the right, exercisable at any time from
                  and after the earliest of (i) the fifth anniversary of the
                  Closing Date (as defined in the Purchase Agreement), (ii) the
                  later of (x) the repayment in full of the aggregate principal
                  amount (together with interest accrued thereon) outstanding
                  under the Notes and (y) the third anniversary of the Closing
                  Date (as defined in the Purchase Agreement), (iii) an
                  effective declaration by any holder of a Note that such Note
                  has become immediately due and payable or, if applicable, by
                  the required percentage of holders of Notes that such Notes
                  have become immediately due and payable, (iv) the occurrence
                  of a Change in Control or issuance by the Company pursuant to
                  a Note of notice of a Change in Control (conditional upon the
                  actual closing of such Change in Control transaction) and (v)
                  the occurrence of a sale of all or substantially all of the
                  assets of the Company (each of the events described in the
                  preceding clauses (i) through (v) a "REPURCHASE EVENT"), but
                  prior to the Expiration Date, to cause Willey to purchase all
                  or any portion of this Warrant at the Warrant Repurchase Price
                  for the number of Warrant Shares (which must omit and Willey
                  shall have no obligation to purchase any portion of this
                  Warrant in respect of Excluded Warrant Shares) specified in
                  the Put Notice. Such right shall be exercisable by the Holder
                  by delivery of written notice (the "PUT NOTICE") to Willey
                  specifying the portion of this Warrant that shall be
                  repurchased (by reference to a specific number of Warrant
                  Shares issuable upon exercise of this Warrant) and the date on
                  which such repurchase shall occur, which date shall not be
                  less than thirty (30) days (or such lesser time as may remain
                  until the Business Day immediately prior to the

                                       14

<PAGE>
                  consummation of a transaction described in clauses (iv) or (v)
                  above), nor more than sixty (60) days after the date of the
                  Put Notice (the "PUT CLOSING DATE"). Except as provided below
                  in this Section 15, on the Put Closing Date, the Holder shall
                  surrender this Warrant to Willey against (i) payment of the
                  Warrant Repurchase Price by wire transfer to an account
                  designated by the Holder and (ii) if the Holder has elected to
                  have only a portion of the Warrant repurchased, delivery of a
                  new warrant duly executed by Willey on the same terms and
                  conditions as this Warrant, except that such warrant shall be
                  exercisable for the remaining number of the Warrant Shares.

         (b)      In the event that Willey, is unable to pay the Warrant
                  Repurchase Price or any portion thereof in cash in connection
                  with a put under Section 15(a) resulting from the occurrence
                  of any Repurchase Event described in clauses (i), (ii), (iv)
                  or (v) above, in any case, due to capital surplus or similar
                  restrictions under applicable corporate law, contractual
                  restrictions in the Senior Credit Agreement as in effect as of
                  the Closing Date (or the same restrictions in any refinancing
                  thereof permitted by the Subordination Agreement) or the
                  unavailability of cash on hand of, and/or the inability to
                  borrow on customary terms and conditions the amount of the
                  Warrant Repurchase Price ("PUT RESTRICTIONS"), the Holder will
                  accept, in lieu of that portion of the Warrant Repurchase
                  Price which cannot be paid or is so unavailable a promissory
                  note of Willey (a "PUT NOTE") in the principal amount of such
                  portion of the Warrant Repurchase Price, on the same terms and
                  conditions as the Notes (including subordination on the same
                  terms, and to the same amount of Senior Debt as the Notes),
                  except that (i) the Put Note shall become due and payable in
                  full on the earlier to occur of the eighth anniversary of the
                  Closing Date and the date on which such Put Restrictions no
                  longer prevent such payment, (ii) the Put Note shall bear
                  interest, payable solely by addition of "PIK Amounts" (as
                  defined therein) to the "Accreted Principal Amount" (as
                  defined therein), at an annual rate of 18% per annum and (iii)
                  the Put Note shall have no financial covenants (that is,
                  covenants of the type contained in Section 8.3 of the Purchase
                  Agreement). Willey shall use reasonable commercial efforts to
                  cause the Put Note to be repaid as soon as practicable,
                  subject to Willey's reasonable business judgment.

         (c)      Notwithstanding the obligation to pay the Warrant Repurchase
                  Price under Section 15(a) or Section 16(a), in the event of
                  the exercise by the Holder of its put option under Section
                  15(a) or Section 16(a), Willey can elect (the "REGISTRATION
                  OPTION") by giving written notice to the Holder at least
                  twenty (20) Business Days prior to the scheduled Put Closing
                  Date or Issued Warrant Share Put Closing Date, as applicable,
                  to cause the Company to register all Warrant Shares that would
                  be issuable upon exercise of this Warrant (as of the effective
                  date of registration) or all Issued Warrant Shares subject to
                  such put exercise, as applicable, in any case, for sale by the
                  Holder under the Act. In the event of such election, if (A)
                  the Registration Statement relating to the Warrant Shares to
                  be issued to the Holder or such Issued Warrant Shares, as
                  applicable, shall be declared effective by the Commission
                  within six (6) months following the Put Closing

                                       15

<PAGE>
                  Date specified in the Put Notice; (B) such Warrant Shares or
                  such Issued Warrant Shares, as applicable, are approved for
                  listing or included for quotation, as the case may be, on the
                  principal securities exchange or market on which Shares then
                  trade; and (C) the prospectus contained in the Registration
                  Statement is current and available for use by the Holder in
                  reselling the Warrant Shares or such Issued Warrant Shares, as
                  applicable, then Willey's obligation to pay the Warrant
                  Repurchase Price under Section 15(a) or Section 16(a), as
                  applicable, shall be satisfied if Willey shall pay to the
                  Holder in cash on the first trading day immediately following
                  the satisfaction of each of the conditions listed in (A),(B)
                  and (C) above (the "FIRST TRADING DAY"), an amount equal to
                  the sum of (a) the amount, if any, by which the aggregate
                  Warrant Repurchase Price (for all Warrant Shares or such
                  Issued Warrant Shares, as applicable, so registered) exceeds
                  the product of (x) the average Closing Prices on NASDAQ (or
                  other exchange or market on which such shares are quoted or
                  traded) of such Shares for the twenty (20) consecutive trading
                  days ending on such First Trading Day times (y) the number of
                  Warrant Shares or such Issued Warrant Shares, as applicable,
                  so registered plus (b) 16% per annum on the amount of the
                  Warrant Repurchase Price (for all Warrant Shares or such
                  Issued Warrant Shares, as applicable, so registered) (without
                  regard to the interest component included in (ii) of the
                  proviso in the definition of "Formula Price", whether or not
                  the Formula Price is taken into account in calculating the
                  Warrant Repurchase Price) for the period from the date 90 days
                  following the Put Closing Date or Issued Warrant Share Put
                  Closing Date specified in the Put Notice or Issued Warrant
                  Share Put Notice to the date of payment of the Warrant
                  Repurchase Price (whether in cash, a Put Note or a combination
                  thereof). In the event that there are Put Restrictions that
                  would prevent such payment, Willey shall issue a Put Note for
                  the amount payable under this paragraph that is prevented by
                  such Put Restrictions. In the case of proper election by
                  Willey of the Registration Option, no surrender of Warrant
                  Shares or Issued Warrant Shares shall take place on the Put
                  Closing Date or Issued Warrant Put Closing Date. In such
                  event, the Holder shall fulfill the obligations of a Holder of
                  Registerable Shares under the Registration Rights Agreement in
                  order to facilitate the registration.

16.      Willey's Obligation to Repurchase Issued Warrant Shares

         (a)      The Holder shall have the right exercisable at any time, and
                  from time to time, upon the occurrence of a Repurchase Event,
                  to cause Willey to purchase all or any portion of the Warrant
                  Shares that have been issued upon the exercise of this Warrant
                  (the "ISSUED WARRANT Shares"), other than any Excluded Issued
                  Warrant Shares, at the Warrant Repurchase Price for such
                  Issued Warrant Shares. Such right shall be exercisable by the
                  Holder by delivery of written notice (the "ISSUED WARRANT
                  SHARES PUT NOTICE") to Willey, specifying the number of such
                  Issued Warrant Shares that shall be repurchased and the date
                  on which such repurchase shall occur, which date shall not be
                  less than thirty (30) days nor more than sixty (60) days after
                  the date of such Issued Warrant Put Notice (the "ISSUED
                  WARRANT SHARES PUT CLOSING DATE"). Except as provided below in

                                       16

<PAGE>
                  this Section 16 and in Section 15(c), on the Issued Warrant
                  Put Closing Date, the Holder shall surrender the Issued
                  Warrant Shares to be repurchased, against payment of the
                  Warrant Repurchase Price by wire transfer to an account
                  designated by the Holder.

         (b)      In the event that Willey, is unable to pay the Warrant
                  Repurchase Price or any portion thereof in cash in connection
                  with a put under Section 16(a) resulting from the occurrence
                  of any Repurchase Event described in clauses (i), (ii), (iv)
                  or (v) of Section 15, in any case, due to any Put
                  Restrictions, the Holder will accept, in lieu of that portion
                  of the Warrant Repurchase Price which cannot be paid or is so
                  unavailable a Put Note in the principal amount of such portion
                  of the Warrant Repurchase Price, on the same terms and
                  conditions as the Notes (including subordination on the same
                  terms, and to the same amount of Senior Debt as the Notes),
                  except that (i) the Put Note shall become due and payable in
                  full on the earlier to occur of the eighth anniversary of the
                  Closing Date and the date on which such Put Restrictions no
                  longer prevent such payment, (ii) the Put Note shall bear
                  interest, payable solely by addition of "PIK Amounts" (as
                  defined therein) to the "Accreted Principal Amount" (as
                  defined therein), at an annual rate of 18% per annum and (iii)
                  the Put Note shall have no financial covenants (that is,
                  covenants of the type contained in Section 8.3 of the Purchase
                  Agreement). Willey shall use reasonable commercial efforts to
                  cause the Put Note to be repaid as soon as practicable,
                  subject to Willey's reasonable business judgment.

         (c)      Willey's obligation to pay the Warrant Repurchase Price under
                  Section 16 (a), in the event of the exercise by the Holder of
                  its put option under Section 16(a) is subject to the
                  Registration Option as provided in Section 15(c).

17.      Willey's Right to Repurchase Warrant and Issued Warrant Shares

         (a)      From time to time on or after the date falling at the end of
                  six (6) years after the Closing Date, and until the date
                  falling ten (10) years after the Closing Date (as defined in
                  the Purchase Agreement), Willey shall have the right to
                  repurchase from such Holder, from any source of funds legally
                  available therefor this Warrant at the Warrant Repurchase
                  Price for all Warrant Shares issuable under this Warrant and
                  all Issued Warrant Shares (other than Excluded Issued Warrant
                  Shares) theretofore issued under this Warrant. Such right
                  shall be exercisable by Willey by delivery of written notice
                  (the "CALL NOTICE") to the Holder of this Warrant, specifying
                  the date on which such repurchase shall occur, which date
                  shall not be less than thirty (30) days nor more than sixty
                  (60) days after the date of such Call Notice (the "CALL
                  CLOSING DATE"). On the Call Closing Date, the Holder shall
                  surrender the Warrant and all certificates for Issued Warrant
                  Shares (specified in the Call Notice), against payment of the
                  Warrant Repurchase Price by wire transfer to an account
                  designated by the Holder.

         (b)      In the event that Willey makes a repurchase of this Warrant
                  and/or Issued Warrant Shares pursuant to Section 17(a) hereof
                  and at any time within one year following the

                                       17
<PAGE>
                  date of such repurchase the Company consummates a Liquidity
                  Event in which the proceeds realized by the Company and
                  distributed or distributable to holders of Common Stock of the
                  Company, after deducting all costs and expenses of such
                  Liquidity Event, exceed, on a per Share basis, the Warrant
                  Repurchase Price per Share, Willey shall forthwith upon the
                  consummation of such public offering or Liquidity Event pay to
                  such Holder the amount of such excess multiplied by the number
                  of Warrant Shares subject to the Warrant and Issued Warrant
                  Shares repurchased as an additional amount of Warrant
                  Repurchase Price hereunder.

18.      Certain Remedies

         The Holder shall be entitled to an injunction or injunctions to prevent
         breaches of the provisions of this Warrant and to enforce specifically
         the terms and provisions of this Warrant in any court of the United
         States or any state thereof having jurisdiction, this being in addition
         to any other remedy to which such Holder may be entitled at law or in
         equity.

19.      Governing Law

         This Warrant shall be governed by and construed in accordance with the
         laws of the State of New York, without regard to the principles of
         conflicts of law of such State, other than Section 5-1401 of the
         General Obligations Law of the State of New York.

20.      Headings

         The headings in this Warrant are for convenience of reference only and
         shall not limit or otherwise affect the meaning hereof.

21.      Survival

         The provisions of Sections 15 and 16 hereof shall survive the complete
         exercise of this Warrant and the issuance of all Issued Warrant Shares.
         For purposes of Sections 15 and 16, "HOLDER" shall include any Person
         owning any of the Issued Warrant Shares.

BRANDPARTNERS GROUP, INC.                 WILLEY BROTHERS INC.

By:/s/ Edward T. Stolarski                By: /s/ Kevin Kelly
   --------------------------------           --------------------------------
   Name:  Edward T. Stolarski                 Name:  Kevin Kelly
   Title:  Executive Vice President           Title:  President

                                       18
<PAGE>
                                                             EXHIBIT A TO COMMON
                                                          STOCK PURCHASE WARRANT

                   [FORM OF] ELECTION TO PURCHASE COMMON STOCK

The undersigned hereby irrevocably elects to exercise the Warrant to purchase
_______ shares of Class common stock ("Shares") of BRANDPARTNERS GROUP, INC.
(the "Company") and hereby [makes payment of US$_________ therefor] [or] [makes
payment therefor by assignment to the Company pursuant to Section 2(b)(ii) of
the Warrant of US$_______ aggregate principal amount of Notes (as defined in the
Purchase Agreement)] [or] [makes payment therefor by surrendering pursuant to
Section 2(b)(iii) Shares of the Company] [or] [makes payment therefor by
cancellation pursuant to Section 2(b)(iv) of a portion of the Warrant with
respect to Shares]. The undersigned hereby requests that certificates for such
units be issued and delivered as follows:

ISSUE TO:
         ----------------------------------------------------------------------
                                     (NAME)

-------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

-------------------------------------------------------------------------------
                  (SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER)

DELIVER TO:
           --------------------------------------------------------------------
                                     (NAME)

-------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

If the number of Shares purchased hereby is less than the number of Shares
covered by the Warrant, the undersigned requests that a new Warrant representing
the number of Shares not purchased be issued and delivered as follows:

ISSUE TO:
         ----------------------------------------------------------------------
                               (NAME OF HOLDER(1))

-------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

DELIVER TO:
           --------------------------------------------------------------------
                                (NAME OF HOLDER)

-------------------------------------------------------------------------------
                          (ADDRESS, INCLUDING ZIP CODE)

Dated:                                    [CORPORATE MEZZANINE II, L.P.(1)]
      -----------------------------

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

(1)      Name of Holder must conform in all respects to name of Holder as
         specified on the face of the Warrant.

                                       19

<PAGE>
                                                             EXHIBIT B TO COMMON
                                                          STOCK PURCHASE WARRANT

                              [FORM OF] ASSIGNMENT

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
the Assignee named below all of the rights of the undersigned to purchase shares
of common stock ("Shares"), of BRANDPARTNERS GROUP, INC. represented by the
Warrant, with respect to the number of Shares set forth below:

<TABLE>
<S>                      <C>                   <C>
Name of Assignee         Address               No. of Shares

</TABLE>

and does hereby irrevocably constitute and appoint ________________________
Attorney to make such transfer on the books of BRANDPARTNERS GROUP, INC.,
maintained for that purpose, with full power of substitution in the premises.

Dated:                                    [CORPORATE MEZZANINE II, L.P.(1)]
      -----------------------------

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

(1)      Name of Holder must conform in all respects to name of Holder as
         specified on the face of the Warrant.

                                       20
<PAGE>

                                                                       Execution

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT, dated as of October 22, 2001,
between BRANDPARTNERS GROUP, INC., a Delaware corporation (the "Corporation"),
and the SECURITYHOLDERS (as defined below).

         The Securityholders own or have the right to purchase or otherwise
acquire shares of the Common Stock (as defined below) of the Corporation. The
Corporation and the Securityholders deem it to be in their respective best
interests to enter into this Agreement to set forth the rights of the
Securityholders in connection with public offerings and sales of the Common
Stock.

         NOW THEREFORE, in consideration of the premises and mutual covenants
and obligations hereinafter set forth, the Corporation and the Securityholders
hereby agree as follows:

Section 1. Definitions. The following words and terms shall have the following
meanings, respectively, unless the context clearly requires otherwise:

                  "Board" means the Board of Directors of the Corporation.

                  "Business Day" means any day that is not a Saturday, Sunday or
a day on which banking institutions in New York, New York are required to be
closed.

                  "Commission" means the Securities and Exchange Commission or
any other governmental body or agency succeeding to the functions thereof.

                  "Common Stock" means the shares of the Corporation's Common
Stock, par value $.01 per share, or any other securities into which the Common
Stock may hereafter be converted or for which the Common Stock may be exchanged.

                  "Purchase Agreement" means the Subordinated Note and Warrant
Purchase Agreement, as amended, modified or supplemented from time to time,
dated as of October 22, 2001, by and among the Corporation, Willey Brothers Inc.
and Corporate Mezzanine II, L.P.

                  "Exchange Act" means the Securities Exchange Act of 1934 or
any successor Federal statute, and the rules and regulations of the Commission
promulgated thereunder, all as the same shall be in effect from time to time.

                  "Indemnified Person" shall have the meaning ascribed thereto
in Section 7.

                  "Majority of Registering Securityholders" means, at any time,
those Securityholders which or who hold at least a majority of the Registrable
Shares included or proposed to be included in a registration.

                  "Majority of Securityholders" means, at any time, those
Securityholders which or who hold at least a majority of the Registrable Shares
then held by all Securityholders.

                  "Person" shall be construed broadly and shall include, a
partnership, a corporation, an association, a joint stock company, a limited
liability company, a trust, a joint venture, an unincorporated organization and
a governmental entity or any department, agency or political subdivision
thereof.

<PAGE>
                  "Prospectus" means the prospectus included in a Registration
Statement, including any prospectus subject to completion, and any such
prospectus as amended or supplemented by any prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Shares and, in
each case, by all other amendments and supplements to such prospectus, including
post-effective amendments, and in each case including all material incorporated
by reference therein.

                  "Public Offering" means the closing of a public offering of
Common Stock pursuant to a Registration Statement declared effective under the
Securities Act, except that a Public Offering shall not include an offering of
securities to be issued as consideration in connection with a business
acquisition or an offering of securities issuable pursuant to an employee
benefit plan.

                  "Registrable Shares" means (i) shares of Common Stock held by
any Securityholder or issuable or issued upon conversion of Warrants held by any
Securityholder and (ii) any other shares of Common Stock issued as (or issuable
upon the conversion or exercise of any warrant right or other security which is
issued as) a dividend or other distribution with respect to, or in exchange for
or in replacement of, the shares described in clause (i). As to any particular
Registrable Shares, such Registrable Shares shall cease to be Registrable Shares
when (A) they have been registered under the Securities Act, the Registration
Statement in connection therewith has been declared effective, (B) they are sold
or distributed pursuant to Rule 144 or may be sold or distributed by the holder
thereof pursuant to Rule 144(k), or (C) they have ceased to be outstanding.

                  "Registration Date" means the date upon which the Registration
Statement pursuant to which the Corporation shall have initially registered
shares of Common Stock under the Securities Act for sale in a Public Offering
shall have been declared effective by the Commission.

                  "Registration Statement" shall mean any registration statement
of the Corporation which covers any of the Registrable Shares and all amendments
and supplements to any such Registration Statement, including post-effective
amendments, in each case including the Prospectus contained therein, all
exhibits thereto and all material incorporated by reference therein.

                  "Rule 144" means Rule 144 promulgated under the Securities Act
or any successor rule thereto or any complementary rule thereto.

                  "Securities Act" means the Securities Act of 1933 or any
successor Federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect from time to time.

                  "Securityholders" means, collectively, each of the
Securityholders listed on the signature pages hereto, and includes any successor
to, or assignee or transferee of, any such Person who or which agrees in writing
to be treated as a Securityholder hereunder and to be bound by the terms and
comply with all applicable provisions hereof.

                  "Securityholders' Counsel" has the meaning ascribed thereto in
Section 4(a)(ii).

                  "Subsidiary" means, with respect to any Person, any other
Person of which the securities having a majority of the ordinary voting power in
electing the board of directors (or other governing body), at the time as of
which any determination is being made, are owned by such first Person either
directly or through one or more of its Subsidiaries.

Section 2. Piggyback Registration. If the Corporation at any time proposes for
any reason to register shares of Common Stock under the Securities Act (other
than on Form S-4 or Form S-8 promulgated under the Securities Act (or any
successor forms thereto)), it shall promptly give written notice to the
Securityholders of its intention to so register such shares not less than 15
Business Days before the Corporation makes such filing. Upon the written
request, delivered to the Corporation within

                                       2

<PAGE>
five Business Days after delivery of any such notice by the Corporation, of a
Securityholder to include in such registration Registrable Shares (which request
shall specify the number of Registrable Shares proposed to be included in such
registration), the Corporation shall use commercially reasonable efforts to
cause all such Registrable Shares to be included in such registration on the
same terms and conditions as the securities otherwise being sold in such
registration, subject to conflicting contractual rights of selling stockholders
who are not Securityholders; provided, however, that if, at any time after
giving written notice of its intention to register any securities and prior to
the effective date of the registration statement filed in connection with such
registration the Corporation shall determine for any reason either not to
register or to delay registration of such securities, the Corporation may, at
its election, give written notice of such determination to each holder of
Registrable Shares and, thereupon, (i) in the case of a determination not to
register, shall be relieved of its obligation to register any Registrable Shares
in connection with such registration (but not from its obligation to pay the
registration expenses pursuant to Section 6 in connection therewith), and (ii)
in the case of a determination to delay registering any Registrable Shares,
shall be permitted to delay registering any Registrable Shares, for the same
period as the delay in registering such other securities; provided further,
however, that if the managing underwriter advises the Corporation that the
inclusion of all Registrable Shares requested to be included in such
registration would materially interfere with the successful marketing (including
pricing) of the Common Stock proposed to be registered by the Corporation, then
the number of shares of Common Stock proposed to be included in such
registration shall be included in the following order:

                           first, the Common Stock proposed to be registered by
                           the Corporation;

                           second, the Common Stock requested to be included in
                           such registration statement by selling stockholders
                           who are not Securityholders who have been granted
                           registration rights, prior to the date hereof, that
                           conflict with, or have any priority over, the
                           registration rights granted hereby

                           third, the Registrable Shares requested to be
                           included in such registration pro rata among the
                           holders thereof based upon the number of Registrable
                           Shares requested to be registered by each such
                           holder; and

                           fourth, the Common Stock held by selling stockholders
                           who are not Securityholders.

Notwithstanding anything to the contrary in this Agreement, in no event shall
the amount of Registrable Securities included in the offering be reduced below
one (1%) of the total amount of securities included in such offering. If any
Registrable Securities are to be excluded from the offering, the amount to be
excluded shall be apportioned among the selling Securityholders pro rata
according to the amount of Registrable Securities requested by each such
Securityholder to be included in the offering. For purposes of the preceding
sentence concerning apportionment, for any selling Securityholder of Registrable
Securities which is a partnership or corporation, the partners, retired partners
and stockholders of such Securityholder, or the estates and family members of
any such partners and retired partners and any trusts for the benefit of any of
the foregoing Persons shall be deemed to be a single "selling Securityholder,"
and any pro-rata reduction with respect to such "selling Securityholder" shall
be based upon the aggregate amount of shares carrying registration rights owned
by all entities and individuals included in such "selling Securityholder," as
defined in this sentence. Any Securityholder shall have the right to withdraw
its request for inclusion of its Registrable Securities in any registration
statement filed pursuant to this Section 2 by giving written notice to the
Corporation of its request to withdraw; provided, that (i) such request must be
made in writing prior to the earlier of the execution of the underwriting
agreement or the execution of the custody agreement with respect to such
registration and (ii) such withdrawal shall be irrevocable and, after making
such withdrawal, a Securityholder shall no longer have any right to include
Registrable Securities in the registration as to which such withdrawal was made.

                                       3

<PAGE>
Section 3. Holdback Agreement.

         (a) If the Corporation at any time shall register shares of Common
Stock under the Securities Act (including any registration pursuant to Section
2) for sale to the public pursuant to a Public Offering, the Securityholders
shall not sell publicly, make any short sale of, grant any option for the
purchase of, or otherwise dispose publicly of, any Registrable Shares (other
than those shares of Common Stock included in such registration pursuant to
Section 2) without the prior written consent of the Corporation, for a period
designated by the Corporation in writing to the Securityholders, which period
shall, unless otherwise required by applicable law as expressed in an opinion of
counsel to the Corporation, not begin more than 10 days prior to the
effectiveness of the Registration Statement pursuant to which such Public
Offering shall be made and shall not last more than 90 days after the closing of
the sale of shares pursuant to such Registration Statement, whether or not such
Securityholder participates in such registration; provided, however, that (i)
all officers and directors of the Corporation, all ten-percent securityholders,
and all other Persons with registration rights (whether or not pursuant to this
Agreement) enter into similar agreements and (ii) any waiver or termination of
the prohibition set forth in this Section 3(a) by the Corporation or any
underwriter shall apply to all Persons who are subject hereto or any similar
such obligation on a pro rata basis. Each holder of Registrable Securities
agrees that the Corporation may instruct its transfer agent to place stop
transfer notations in its records to enforce this Section 3(a).

         (b) If the Corporation at any time pursuant to Section 2 of this
Agreement shall register under the Securities Act Registrable Shares held by
Securityholders for sale to the public pursuant to a Public Offering, the
Corporation shall not, without the prior written consent of a Majority of
Securityholders, effect any public sale or distribution of securities similar to
those being registered, or any securities convertible into or exercisable or
exchangeable for such securities, for such period as shall be determined by the
managing underwriters, which period shall not begin more than 10 days prior to
the effectiveness of the Registration Statement pursuant to which such Public
Offering shall be made and shall not last more than 90 days after the closing of
the sale of shares pursuant to such Registration Statement, except (i) as part
of such registration, (ii) pursuant to registrations of Forms S-4 or S-8 or any
successor or similar forms thereto, (iii) as otherwise permitted by the managing
underwriter of such offering (if any), or (iv) if such offering is not
underwritten, then such period shall last not more than 90 days after the
effective date of such registration statement, or the time all shares covered
thereby are sold, if earlier.

Section 4. Preparation and Filing.

         (a) If and whenever the Corporation is under an obligation pursuant to
the provisions of this Agreement to use commercially reasonable efforts to
effect the registration of, and keep effective a Registration Statement for, any
Registrable Shares, subject to the first and second provisos of Section 2, the
Corporation shall, as expeditiously as practicable:

                  (i) If the Public Offering is not an underwritten public
offering, use its best efforts to cause a Registration Statement that registers
such Registrable Shares to remain effective for a period of 90 days (extended
for such period of time as the Securityholders whose Registrable Shares are
included therein are required to discontinue disposition of Registrable Shares
pursuant to Section 4(b)) or until all of such Registrable Shares have been
disposed of (if earlier);

                  (ii) furnish, at least five Business Days before filing a
Registration Statement that relates to the registration of such Registrable
Shares, a Prospectus relating thereto or any amendments or supplements relating
to such a Registration Statement or Prospectus, to one counsel (the
"Securityholders' Counsel") selected by a Majority of Registering
Securityholders, and copies of all such documents proposed to be filed (it being
understood that such five-Business-Day period need not apply to successive
drafts of the same document proposed to be filed so long as such successive
drafts are supplied to the

                                       4

<PAGE>
Securityholders' Counsel in advance of the proposed filing by a period of time
that is customary and reasonable under the circumstances);

                  (iii) notify the Securityholders whose Registrable Shares are
included therein of the effectiveness of such Registration Statement and prepare
and promptly file with the Commission such amendments and supplements to such
Registration Statement and the Prospectus used in connection therewith as may be
necessary to (A) keep such Registration Statement effective for at least a
period of 180 days (extended for such period of time as Securityholders whose
Registrable Shares are included therein are required to discontinue disposition
of Registrable Shares pursuant to Section 4(b)) or until all of such Registrable
Shares have been disposed of (if earlier), (B) correct any statements or
omissions if any event with respect to the Corporation shall have occurred as a
result of which any such Registration Statement or Prospectus as then in effect
would include an untrue statement of material fact or omit to state any material
fact necessary to make the statements therein not misleading, and (C) comply
with the provisions of the Securities Act with respect to the sale or other
disposition of such Registrable Shares;

                  (iv) notify in writing the Securityholders' Counsel and the
Securityholders whose Registrable Shares may be included in such Registration
Statement promptly of (A) the receipt by the Corporation of any notification
with respect to any comments by the Commission with respect to such Registration
Statement or Prospectus or any amendment or supplement thereto or any request by
the Commission for the amending or supplementing thereof or for additional
information with respect thereto, (B) the receipt by the Corporation of any
notification or written information with respect to the issuance or threatened
issuance by the Commission of any stop order suspending the effectiveness of
such Registration Statement or Prospectus or any amendment or supplement thereto
or the initiation or threatening of any proceeding for that purpose and (C) the
receipt by the Corporation of any notification with respect to the suspension of
the qualification of such Registrable Shares for sale in any jurisdiction or the
initiation or threatening of any proceeding for such purposes;

                  (v) use commercially reasonable efforts to register or qualify
such Registrable Shares under such other securities or blue sky laws of such
jurisdictions as the Securityholders holding such Registrable Shares reasonably
request, to keep such registrations or qualifications in effect for so long as
the registration statement covering such Registrable Shares remains in effect
and use commercially reasonable efforts to do any and all other acts and things
which may be reasonably necessary or advisable to enable such Securityholders to
consummate the disposition in such jurisdictions of the Registrable Shares owned
by such Securityholders; provided, however, that the Corporation will not be
required to qualify generally to do business or to file or general consent to
service of process in any jurisdiction where it would not otherwise be required
to do so but for this subclause (v);

                  (vi) furnish to the Securityholders holding such Registrable
Shares such number of copies of a summary Prospectus, if any, or other
Prospectus, including a preliminary Prospectus, in conformity with the
requirements of the Securities Act, and such other documents as such
Securityholders may reasonably request in order to facilitate the sale or other
disposition of such Registrable Shares;

                  (vii) notify the Securityholders holding such Registrable
Shares on a timely basis at any time when a Prospectus relating to such
Registrable Shares is required to be delivered under the Securities Act within
the appropriate period mentioned in clause (i) of this Section 4(a), of the
happening of any event as a result of which the Prospectus included in such
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omits to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and prepare and furnish to such
Securityholders a reasonable number of copies of, and file with the Commission,
a supplement to or an amendment of such Prospectus as may be necessary so that,
as thereafter delivered to the offerees of such shares, such Prospectus shall
not include an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading;

                                       5

<PAGE>
                  (viii) use its best efforts to obtain from its independent
certified public accountants "cold comfort" letters in customary form and at
customary times and covering matters of the type customarily covered by cold
comfort letters;

                  (ix) use its best efforts to obtain from its counsel an
opinion or opinions in customary form naming the Securityholders holding such
Registrable Shares as additional addressees or parties who may rely thereon;

                  (x) provide a transfer agent and registrar (which may be the
same entity and which may be the Corporation) and a CUSIP number for such
Registrable Shares, in each case not later than the effective date of such
registration;

                  (xi) issue to any underwriter to which the Securityholders
holding such Registrable Shares may sell shares in such offering certificates
evidencing such Registrable Shares;

                  (xii) list such Registrable Shares on any national securities
exchange on which any shares of the Common Stock are listed or, if the Common
Stock is not listed on a national securities exchange, use commercially
reasonable efforts to qualify such Registrable Shares for inclusion on The
Nasdaq Stock Market or The Nasdaq SmallCap Market;

                  (xiii) otherwise use its reasonable best efforts to comply
with all applicable rules and regulations of the Commission and make available
to the Securityholders holding such Registrable Shares earnings statements
(which need not be audited) covering a period of 12 months, which earnings
statements shall satisfy the provisions of Section 11(a) of the Securities Act
and Rule 158 thereunder (or any similar rule promulgated under the Securities
Act) no later than 45 days after the end of any 12-month period (or 90 days
after the end of any 12-month period if such period is a fiscal year) (i)
commencing at the end of any fiscal quarter in which Registrable Shares are sold
to underwriters in a firm commitment or best efforts Public Offering, and (ii)
if not sold to underwriters in such an offering, commencing on the first day of
the first fiscal quarter of the Corporation, after the effective date of a
Registration Statement, which statements shall cover said 12-month period ; and

                  (xiv) use commercially reasonable efforts to take all other
steps necessary to effect the registration of, and maintain an effective
Registration Statement with respect to, such Registrable Shares contemplated
hereby.

         (b) Each holder of the Registrable Shares, upon receipt of any notice
from the Corporation of any event of the kind described in Section 4(a)(vii) or,
shall forthwith discontinue disposition of the Registrable Shares pursuant to
the Registration Statement covering such Registrable Shares until such holder's
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 4(a)(viii), and, if so directed by the Corporation, such holder shall
deliver to the Corporation all copies, other than permanent file copies then in
such holder's possession, of the most recent Prospectus covering such
Registrable Shares at the time of receipt of such notice.

Section 5. Expenses. All expenses (other than underwriting discounts and
commissions relating to the Registrable Shares, as provided in the last sentence
of this Section 6) incurred by the Corporation in complying with Section 4,
including, without limitation, all registration and filing fees (including all
expenses incident to filings with the National Association of Securities
Dealers, Inc.), fees and expenses of complying with securities and blue sky
laws, printing expenses, fees and expenses of the Corporation's counsel and
accountants and the reasonable fees and expenses of the Securityholders'
Counsel, shall be paid by the Corporation; provided, however, that all
underwriting discounts and selling commissions applicable to the Registrable
Shares shall be borne by the holders selling such Registrable Shares and in
proportion to the number of Registrable Shares sold by each such holder.

                                       6

<PAGE>
Section 6. Indemnification. (a) In connection with any registration of any
Registrable Shares under the Securities Act pursuant to this Agreement, the
Corporation shall indemnify and hold harmless, to the fullest extent permitted
by law, each Securityholder, each underwriter, broker or any other Person acting
on behalf of the holders of Registrable Shares and each other Person, if any,
who controls any of the foregoing Persons within the meaning of the Securities
Act (each such indemnified Person being referred to herein as an "Indemnified
Person") against any losses, claims, damages or liabilities, joint or several
(or actions in respect thereof), to which any of the foregoing Persons may
become subject under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon an untrue statement or allegedly untrue statement of a material
fact contained in or incorporated by reference in the Registration Statement
under which such Registrable Shares were registered under the Securities Act,
any preliminary Prospectus or final Prospectus contained therein or otherwise
filed with the Commission, any amendment or supplement thereto or any document
incident to registration or qualification of any Registrable Shares, or arise
out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or any violation or alleged violation by the Corporation
of the Securities Act, the Exchange Act or state securities or blue sky laws and
shall promptly reimburse the Indemnified Persons for any legal or other expenses
reasonably incurred by any of them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
Corporation shall not be liable in any such case to any such Indemnified Person
to the extent that any such loss, claim, damage, liability or action (including
any legal or other expenses incurred) arises out of or is based upon an untrue
statement or allegedly untrue statement or omission or alleged omission made in
said Registration Statement, preliminary Prospectus, final Prospectus,
amendment, supplement or document incident to registration or qualification of
any Registrable Shares in reliance upon and in conformity with written
information furnished to the Corporation by or on behalf of such Indemnified
Person specifically for use in the preparation thereof;

         (b) In connection with any registration of Registrable Shares under the
Securities Act pursuant to this Agreement, each holder of Registrable Shares or
being registered shall, severally and not jointly, to the fullest extent
permitted by law, indemnify and hold harmless (in the same manner and to the
same extent as set forth in Section 6(a)) the Corporation, each director of the
Corporation, each officer of the Corporation who shall have signed such
Registration Statement, each agent, underwriter, broker or other Person acting
on behalf of the Corporation, each other holder of Registrable Shares and each
Person who controls any of the foregoing Persons within the meaning of the
Securities Act with respect to any statement or omission from such Registration
Statement, any preliminary Prospectus or final Prospectus contained therein or
otherwise filed with the Commission, any amendment or supplement thereto or any
document incident to registration or qualification of any Registrable Shares, if
such statement or omission was made in reliance upon and in conformity with
written information furnished to the Corporation or such underwriter by or on
behalf of such holder specifically for use in connection with the preparation of
such Registration Statement, preliminary Prospectus, final Prospectus,
amendment, supplement or document; provided, however, that the maximum amount of
liability in respect of such indemnification shall be limited, in the case of
each holder of Registrable Shares, to an amount equal to the net proceeds
actually received by such holder from the sale of Registrable Shares effected
pursuant to such registration.

         (c) Promptly after receipt by an indemnified party of notice of the
commencement of any action involving a claim referred to in Section 7(a) or
Section 7(b), such indemnified party will, if a claim in respect thereof is made
against an indemnifying party, give written notice to the latter of the
commencement of such action; provided, however, that the indemnified party's
failure to give such notice shall not release, relieve or in any way affect the
indemnifying party's obligation hereunder to indemnify the indemnified party
unless and to the extent that the rights of the indemnifying party are
prejudiced thereby. In case any such action is brought against an indemnified
party, the indemnifying party will be entitled to participate in and to assume
the defense thereof, jointly with any other indemnifying party

                                       7

<PAGE>
similarly notified to the extent that it may wish, with counsel reasonably
satisfactory to such indemnified party, and after notice from the indemnifying
party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party shall not be responsible for any legal or other
expenses subsequently incurred by the indemnified party in connection with the
defense thereof; provided, however, that if any indemnified party shall have
reasonably concluded (based on the written advice of counsel) that there may be
one or more legal or equitable defenses available to such indemnified party
which are additional to or conflict with those available to the indemnifying
party, or that such claim or litigation involves or could have an effect upon
matters beyond the scope of the indemnity agreement provided in this Section 7,
the indemnifying party shall not have the right to assume the defense of such
action on behalf of such indemnified party and such indemnifying party shall
reimburse such indemnified party and any Person controlling such indemnified
party for that portion of the reasonable fees and expenses of any counsel
retained by the indemnified party which is reasonably related to the matters
covered by the indemnity agreement provided in this Section 7.

         (d) (i) If the indemnification provided for in this Section 7 is held
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, claim, damage, liability or action referred to herein
(other than as a result of the applicability of the two provisos in Section
7(a)), then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amounts paid or payable by such
indemnified party as a result of such loss, claim, damage, liability or action
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions which resulted in such loss, claim,
damage, liability or action as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

                  (ii) The Corporation and the holders of Registrable Securities
agree that it would not be just and equitable if contribution pursuant to this
subdivision (d) were determined by pro rata allocation (even if the holders and
any underwriters were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations
referred to in the immediately preceding paragraph and subdivision (c) of this
Section 7. The amount paid or payable by an indemnified party as a result of the
losses, claims, damages and liabilities referred to in the immediately preceding
paragraph shall be deemed to include, subject to the limitations set forth
above, any legal or other expenses reasonably incurred by such indemnified party
in connection with investigating or defending any such action or claim.

Section 7. Underwriting Agreement. (a) Notwithstanding the provisions of Section
3, Section 4, Section 6 and Section 7, to the extent that the Corporation and at
least the Majority of Registering Securityholders shall enter into an
underwriting or similar agreement that contains provisions which conflict with
any provision of any such Sections, the provisions contained in such agreement
shall control.

         (b) The Corporation shall be entitled to receive indemnities from lead
institutions, underwriters, selling brokers, dealer managers and similar
securities industry professionals participating in the distribution, to the same
extent as provided above with respect to information so furnished in writing by
such Persons specifically for inclusion in any Prospectus or Registration
Statement and to the extent customarily given their role in such distribution.

         (c) No Securityholder may participate in any registration hereunder
that is underwritten unless such Securityholder agrees to (i) sell such
Securityholder's Registrable Shares proposed to be included therein on the basis
provided in any underwriting arrangements approved by the Corporation and

                                       8

<PAGE>
the Majority of Registering Securityholders (which approval shall not be
unreasonably withheld by such Securityholders) and (ii) as expeditiously as
possible, notify the Corporation of the occurrence of any event concerning such
Securityholder as a result of which the Prospectus relating to such registration
contains an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

Section 8. Information by Holder. The Securityholders shall furnish to the
Corporation such written information regarding the Securityholders and the
distribution proposed by the Securityholders as the Corporation may reasonably
request in writing and as shall be reasonably required in connection with any
registration, qualification or compliance referred to in this Agreement.

Section 9. Exchange Act Compliance. From the Registration Date or such earlier
date as a Registration Statement filed by the Corporation pursuant to the
Exchange Act relating to any class of the Corporation's securities shall have
become effective, the Corporation shall comply with all of the reporting
requirements of the Exchange Act applicable to it and shall comply with all
other public information reporting requirements of the Commission which are
conditions to the availability of Rule 144 for the sale of the Common Stock. The
Corporation shall cooperate with the Securityholders in supplying such
information as may be necessary for the Securityholders to complete and file any
information reporting forms presently or hereafter required by the Commission as
a condition to the availability of Rule 144.

Section 10. Mergers, Etc. The Corporation shall not, directly or indirectly,
enter into any merger, consolidation or reorganization in which the Corporation
shall not be the surviving corporation unless the surviving corporation shall,
prior to such merger, consolidation or reorganization, agree in writing to
assume the obligations of the Corporation under this Agreement.

Section 11. New Certificates. As expeditiously as possible after the
effectiveness of any Registration Statement filed pursuant to this Agreement,
the Corporation will deliver in exchange for any legended certificate evidencing
Registrable Shares so registered, new stock certificates not bearing any
restrictive legends, provided that in the event less than all of the Registrable
Shares evidenced by such legended certificate are registered, the holder thereof
agrees that a new certificate evidencing such unregistered shares will be issued
bearing the appropriate restrictive legend.

Section 12. No Conflict of Rights; Selection of Underwriter. The Corporation
shall not, at any time after the date hereof, grant any registration rights that
conflict with, or have any priority over, the registration rights granted
hereby. In any Public Offering, the managing underwriter shall be a nationally
recognized investment banking firm chosen by the Board.

Section 13. Termination. This Agreement shall terminate and be of no further
force or effect when there shall no longer be any Registrable Shares
outstanding.

Section 14. Miscellaneous.

         (a) Successors and Assigns. This Agreement shall bind and inure to the
benefit of the Corporation and the Securityholders and, subject to Section
15(b), the respective successors and assigns of the Corporation and the
Securityholders. This Agreement is not intended to create any third party
beneficiaries,

         (b) Assignment. Each Securityholder may assign its rights hereunder to
any purchaser or transferee of Registrable Shares; provided, however, that such
purchaser or transferee shall, as a condition to the effectiveness of such
assignment, be required to execute a counterpart to this Agreement agreeing to
be treated as an Securityholder, whereupon such purchaser or transferee shall
have the benefits of and

                                       9

<PAGE>
shall be subject to the restrictions contained in this Agreement as if such
purchaser or transferee was originally included in the definition of a
Securityholder and had originally been a party hereto.

         (c) Severability. It is the desire and intent of the parties hereto
that the provisions of this Agreement be enforced to the fullest extent
permissible under the laws and public policies applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Agreement shall be adjudicated by a court of competent jurisdiction to be
invalid, prohibited or unenforceable for any reason, such provision, as to such
jurisdiction, shall be ineffective, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of this
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction. Notwithstanding the foregoing, if such provision could be
more narrowly drawn so as not to be invalid, prohibited or unenforceable in such
jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

         (d) Entire Agreement. This Agreement and the other writings referred to
herein or delivered pursuant hereto contain the entire agreement among the
parties with respect to the subject matter hereof and thereof and supersede all
prior and contemporaneous arrangements or understandings with respect hereto and
thereto.

         (e) Notices. All communications hereunder to any party shall be 'deemed
to be sufficient if contained in a written instrument delivered in person or
sent by telecopy, nationally-recognized overnight courier guaranteeing next day
delivery or first class registered or certified mail, return receipt requested,
postage prepaid, addressed to such party at its address below or such other
address as such party may hereafter designate in writing:

                  if to the Corporation, to:

                  BrandPartners Group, Inc.
                  777 Third Avenue
                  New York, New York 10017
                  Facsimile: (212) 421-2933
                  Attention: Edward Stolarski, Executive Vice President

                  with a copy to:

                  Modlin Haftel & Nathan LLP
                  777 Third Avenue, 30th Floor
                  New York, New York 10017
                  Facsimile:  (212) 832-1642
                  Attention:  Charles M. Modlin, Esq.

                  and

                  Kramer Levin Naftalis & Frankel LLP
                  919 Third Avenue
                  New York, New York 10022
                  Facsimile: (212) 715-8000
                  Attention: Howard A. Sobel, Esq.

                  if to any Securityholder, to such Securityholder at the
                  address indicated on Schedule I hereto.

                                       10

<PAGE>
         All such notices, requests, consents and other communications shall be
deemed to have been given and received (i) in the case of personal delivery or
delivery by telecopy, on the date of such delivery, (ii) in the case of dispatch
by nationally-recognized overnight courier, on the next Business Day following
such dispatch and (iii) in the case of mailing, on the third Business Day after
the posting thereof.

         (f) Modifications; Amendments; Waivers. The terms and provisions of
this Agreement may not be modified or amended, nor may any provision be waived,
except pursuant to a writing signed by the Corporation and the Majority of
Securityholders; provided, however, that no such modification, amendment or
waiver that would treat any Securityholder in a non-ratable, discriminatory
manner shall be made without the prior written consent of such Securityholder.
The failure of any party to enforce any of the provisions of this Agreement
shall in no way be construed as a waiver of such provisions and shall not affect
the right of such party thereafter to enforce each and every provision of this
Agreement in accordance with its terms. The Securityholders, to the fullest
extent permitted by applicable laws, release the members of the Board from any
and all claims for breach of fiduciary duty arising out of the application of
this Section 15(f).

         (g) Counterparts. This Agreement may be executed in any number of
counterparts, and each such counterpart hereof shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

         (h) Headings. The headings of the various sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed to
be a part of this Agreement.

         (i) GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO ANY CHOICE OF LAW OR CONFLICTING PROVISION OR RULE (WHETHER OF THE
STATE OF NEW YORK OR ANY OTHER JURISDICTION), THAT WOULD CAUSE THE LAWS OF ANY
JURISDICTION OTHER THAN THE STATE OF NEW YORK TO BE APPLIED.

         (j) Jurisdiction and Venue.

                  (i) Each of the parties hereto hereby irrevocably and
unconditionally submits, for itself or himself and its or his property, to the
nonexclusive jurisdiction of any New York State court sitting in the Borough of
Manhattan, the City of New York, or any federal court of the United States of
America sitting in the Southern District of New York, and any appellate court
from any court thereof, in any action or proceeding arising out of or relating
to this Agreement or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in any
such New York court or, to the extent permitted by law, in such federal court.
Each of the parties hereto irrevocably waives, to the fullest extent permitted
by law, the defense of an inconvenient forum to the maintenance of such action
or proceeding in any such court. Each of the parties hereto agrees that a final
judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

                  (ii) Each of the parties hereto irrevocably and
unconditionally waives, to the fullest extent it or he may legally and
effectively do so, any objection that it or he may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to
the Agreement in any New York State court sitting in the Borough of Manhattan,
the City of New York, or federal court sitting in the Southern District of New
York. Each of the parties hereto irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of
such action or proceeding in any such court.

                                       11
<PAGE>
                  (iii) The parties further agree that the mailing by certified
or registered mail, return receipt requested to both (i) the other party and
(ii) counsel for the other party (or such substitute counsel as such party may
have given written notice of prior to the date of such mailing), of any process
required by any such court shall constitute valid and lawful service of process
against them, without the necessity for service by any other means provided by
law. Notwithstanding the foregoing, if and to the extent that a court holds such
means to be unenforceable, each of the parties' respective counsel (as referred
to above) shall be deemed to have been designated agent for service of process
on behalf of its respective client, and any service upon such respective counsel
effected in a manner which is permitted by New York law shall constitute valid
and lawful service of process against the applicable party.

         (k) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS AGREEMENT.

         (l) Nouns and Pronouns. Whenever the context may require, any pronouns
used herein shall include the corresponding masculine, feminine or neuter forms,
and the singular form of nouns and pronouns shall include the plural and
vice-versa.

         (m) Construction. Where specific language is used to clarify by example
a general statement contained herein, such specific language shall not be deemed
to modify, limit or restrict in any manner the construction of the general
statement to which it relates. The language used in this Agreement shall be
deemed to be the language chosen by the parties to express their mutual intent,
and no rule of strict construction shall be applied against any party.

                                    * * * * *

                                       12

<PAGE>
         IN WITNESS WHEREOF, the parties hereto have executed this Registration
Rights Agreement on the date first written above.

                                          BRANDPARTNERS GROUP, INC.

                                          By: /s/ Edward T. Stolarski
                                              ---------------------------------
                                              Name:  Edward T. Stolarski
                                              Title:  Executive Vice President

                                          CORPORATE MEZZANINE II, L.P.

                                          By: /s/ Robert Finley
                                              ---------------------------------
                                              Name:  Robert Finley
                                              Title:  Attorney-in-Fact

<PAGE>
                                                                      SCHEDULE I

                                 Securityholders

Corporate Mezzanine II, L.P.
c/o Canaan Partners
105 Rowayton Avenue
Rowayton, Connecticut 06853
Facsimile: (203) 854-9117

with a copy to:

Clifford Chance Rogers & Wells LLP
200 Park Avenue, 50th Floor
New York, New York 10166-0158
Attention: Robert S. Finley, Esq.

<PAGE>

                                                                   EXECUTION

SUBORDINATION AND INTERCREDITOR AGREEMENT (this "AGREEMENT"), dated as of
October 22, 2001,

BY AND AMONG

WILLEY BROTHERS INC., a New Hampshire corporation ("WILLEY"),

CORPORATE MEZZANINE II, L.P., a British Virgin Island limited partnership
("CMII"); and

FLEET CAPITAL CORPORATION, a Rhode Island corporation, as the Lender under the
Bank Original Documents (defined below) or any successor or assignee thereof
(together with each agent or similar representative for the lenders under any
Bank Refinancing Documents (as defined below), "BANK").

WITNESSETH:

WHEREAS, Willey, CMII and the Bank are entering into this Agreement with each
other to set forth fully the provisions by which the Subordinated Indebtedness
is subordinate and junior in right of payment to all Bank Indebtedness.

WHEREAS, in order to induce the Bank to continue to extend credit under the Loan
and Security Agreement, dated as of January 11, 2001 (as amended by the
Amendment and Waiver Agreement, dated as of May 21, 2001, by the Second
Amendment and Waiver dated as of the date hereof and as further amended,
modified, restated or supplemented from time to time in accordance with its
terms (but excluding any amendments, modifications, restatements or supplements
(or portions thereof) effected in contravention of the terms of this Agreement),
the "CREDIT AGREEMENT"), among Willey and the Bank and the other documents,
instruments and/or agreements executed and/or delivered in connection therewith
(collectively, as amended, modified, restated, extended, renewed or supplemented
from time to time in accordance with their respective terms (but excluding any
amendments, modifications or supplements (or portions thereof) effected in
contravention of the terms of this Agreement), the "BANK ORIGINAL DOCUMENTS"),
Willey and CMII have agreed to subordinate, pursuant to the terms hereof, the
Subordinated Indebtedness to the Bank Indebtedness.

NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, and in
consideration of the transactions contemplated herein and under the CMII
Documents and the Bank Documents, do hereby agree as follows:

1.    CERTAIN DEFINITIONS. For purposes of this Agreement, the following terms
have the following meanings:

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

<PAGE>
the purposes of this definition, "Person" shall mean any individual,
corporation, partnership, limited liability company, joint venture, trust,
unincorporated organization or government or any agency or political subdivision
thereof. A Person shall be deemed to control another Person if such Person owns
10% or more of the voting power for the election of the Board of Directors or
similar management group of such other Person. For purposes of this definition,
none of CMII, the Bank, or any Affiliate of any thereof shall be deemed to be an
Affiliate of any Company.

"BANK" shall have the meaning assigned to such term in the preamble hereto. In
the event that the Bank ceases to be a party to the Bank Documents and there is
no agent or similar representative under the Bank Documents, "Bank" shall mean
any and all banks thereunder. In any such circumstance, any reference herein to
the "Bank" shall be deemed to be a reference to any and all "Holders of Bank
Indebtedness", and any consent, direction, waiver, amendment or other action to
be taken by the Bank hereunder shall be effective if taken by the Holders of a
majority in interest of the Bank Indebtedness. If there is an agent or
representative for the lenders under the Bank Documents, then "Bank" shall mean
such agent or representative.

"BANK DEFAULT NOTICE" is defined in Section 2.4.2 hereof.

"BANK DOCUMENTS" means the Bank Original Documents and the Bank Refinancing
Documents.

"BANK INDEBTEDNESS" means all indebtedness, liabilities and obligations of the
Companies or any Affiliate of any Company to the Bank under or pursuant to the
Bank Documents , whether direct or indirect, absolute or contingent, secured or
unsecured, now existing or hereafter arising and whether with respect to
principal, interest, reimbursement obligations, premiums, fees, expenses,
post-bankruptcy interest, letters of credit, interest rate swaps, interest rate
caps or otherwise, together with, subject to Section 3.4.2, all amendments,
refinancings and refundings thereof in whole or in part (including with another
bank or financial institution) in an amount not exceeding (a) $16,100,000 less
(b) the sum of (i) all payments of term loans constituting Bank Indebtedness
made after the date hereof (excluding any Bank Refinancing Payments) plus (ii)
the aggregate amount of all permanent reductions of revolving or similar loan
commitments made after the date hereof (excluding Bank Refinancing Payments)
(the "BANK INDEBTEDNESS CAP"); provided, further, that the foregoing limitation
shall apply only to principal (and letter of credit reimbursement) amounts and
not to interest, premium, expenses, charges, indemnities, fees or to any
advances made for the purpose of protecting the value of the Collateral.
Principal and letter of credit reimbursement amounts in excess of the Bank
Indebtedness Cap shall not constitute "Bank Indebtedness." Notwithstanding the
foregoing, Bank Indebtedness held by any Company or any Affiliate of any Company
(whether as a result of subrogation or otherwise) or in which any Company or any
Affiliate of any Company holds a participation or other interest or by any
person who has acquired (whether as a result of subrogation or otherwise) Bank
Indebtedness, directly or indirectly, which has been held by any Company or any
Affiliate of any Company (or in which any Company or any Affiliate of any
Company held or holds a participation or other interest), shall not constitute
"BANK INDEBTEDNESS" under this Agreement (other than under this sentence), and
no such Holder shall acquire any rights hereunder by virtue of holding such Bank
Indebtedness.

"BANK INDEBTEDNESS CAP" is defined in the definition of Bank Indebtedness.

                                       2
<PAGE>
"BANK NONMONETARY DEFAULT" is defined in Section 2.4.2 hereof.

"BANK NOTE" means any of the promissory notes evidencing Bank Indebtedness.

"BANK ORIGINAL DOCUMENTS" is defined in the preamble hereto.

"BANK PAYMENT DEFAULT" is defined in Section 2.4.1 hereof.

"BANK REFINANCING DOCUMENTS" means any document evidencing a replacement,
refinancing, renewal, extension, amendment or refunding of Bank Indebtedness and
replacing any Bank Document, excluding, however, any terms thereof which would
violate Section 3.4.2 hereof if contained in an amendment to any Bank Original
Document.

"BANK REFINANCING PAYMENTS" means payments of Bank Indebtedness from the
proceeds of loans or advances made pursuant to Bank Refinancing Documents, which
permanently reduce Bank Indebtedness.

"BANKRUPTCY CODE" means Title II of the United States Code, as amended from time
to time.

"BORROWER" means Willey.

"BPG" shall mean Brandpartners Group, Inc., a Delaware corporation.

"BUSINESS DAY" shall mean any day other than a Saturday, Sunday or other day on
which commercial banks in the State of New York or Commonwealth of Massachusetts
are authorized or required by law or executive order to close.

"CMII" shall have the meaning assigned to such term in the preamble hereto.

"CMII DOCUMENTS" means the CMII Original Documents and the CMII Refinancing
Documents.

"CMII NOTE" means any of the promissory notes issued pursuant to the CMII
Documents.

"CMII WARRANT" means any of the warrants issued under the CMII Documents.

"CMII ORIGINAL DOCUMENTS" means the Subordinated Note and Warrant Purchase
Agreement, dated as of the date hereof (as amended, modified, restated or
supplemented from time to time in accordance with its terms), among Willey, BPG
and CMII, and the Transaction Documents (as defined in the Subordinated Note and
Warrant Purchase Agreement) (as amended, modified, restated or supplemented from
time to time in accordance with their respective terms).

"CMII PAYMENT BLOCKAGE PERIOD" is defined in Section 2.4.2 hereof.

"CMII REFINANCING DOCUMENTS" means documents evidencing a replacement,
refinancing or refunding of Subordinated Indebtedness.

"CMII REFINANCING PAYMENTS" means payments from the proceeds of note purchases,
loans or advances

                                       3
<PAGE>
made pursuant to CMII Refinancing Documents, so long as any such CMII
Refinancing Documents do not contain any terms which would violate Section 3.4.1
hereof if contained in any amendment of any CMII Original Documents.

"COLLATERAL" means all of the property and interests in property, tangible, real
or personal, now owned or hereafter acquired by any Company, in or upon which
any Company has granted a Lien, and including, without limitation, all proceeds
and products of such property and interests in property.

"COMPANY" shall mean Willey and each Subsidiary thereof that shall have
guaranteed or may (subject to the terms of this Agreement) hereafter guarantee
payment or performance of any Subordinated Indebtedness or Bank Indebtedness.

"HOLDER" means a person who holds of record Bank Indebtedness or Subordinated
Indebtedness, as the context dictates. No Person shall be entitled or required
to receive notice as a Holder under this Agreement unless such Person (i) is a
signatory to (or has assumed in writing the obligations of a Holder under) this
Agreement in a manner reasonably acceptable to CMII and the Companies, and (ii)
notice of the acquisition by such Person of Bank Indebtedness or Subordinated
Indebtedness has been given to each party to this Agreement in the manner
provided in this Agreement. Notwithstanding the foregoing, neither any Company
nor any Affiliate thereof, shall constitute a Holder and no such person shall
acquire any rights hereunder.

"LIEN" means any lien, collateral assignment, mortgage, pledge or security
interest on the Collateral.

"PERIOD" is defined in Section 2.4.2 hereof.

"PROCEEDING" is defined in Section 2.3.1 hereof.

"SENIOR LIENS" means all Liens previously or hereafter granted by any Company to
or for the benefit of the Bank and its successors, assigns and participants,
securing in whole or in part any of the Bank Indebtedness.

"SUBORDINATED INDEBTEDNESS" means all present and future obligations,
liabilities and indebtedness of the Companies of every type and nature,
currently or hereafter due, incurred or created, arising under or in connection
with the CMII Documents, including, without limitation: (i) all Obligations (as
defined in the CMII Original Documents) or similar term contained in the CMII
Refinancing Documents, (ii) all interest provided for in the CMII Original
Documents or CMII Refinancing Documents (including, without limitation, interest
arising prior to and after the commencement of any Proceeding in which any
Company is the debtor, whether or not such interest is an allowed claim in such
Proceeding) at the rates specified in the CMII Original Documents or CMII
Refinancing Documents; and (iii) all fees, charges, expenses, indemnities and
other amounts payable under or incidental to the CMII Original Documents or CMII
Refinancing Documents.

"SUBORDINATED INDEBTEDNESS CAP" is defined in Section 3.4.1.

"SUBORDINATED LIENS" is defined in Section 2.3.1 hereof.

                                       4
<PAGE>
"SUBORDINATED PARTIES" is defined in Section 2.1 hereof.

"SUBORDINATED PAYMENT" is defined in Section 2.3.1 hereof.

"SUBORDINATION TERMINATION DATE" means the first date on which all amounts due
or to become due on or in respect of Bank Indebtedness have been paid in full in
cash and all commitments under the Bank Documents have been irrevocably
terminated.

If the definition contained in this Agreement of any document or agreement shall
exclude any amendment, modification or supplement (or any portion thereof), then
such definition shall be deemed to mean such document or agreement and all
amendments, modifications and supplements (or portions thereof) not so excluded.

2.    SUBORDINATION OF SUBORDINATED INDEBTEDNESS

2.1   SUBORDINATION. Each Company covenants and agrees, and CMII and, by its
acceptance of a CMII Note, each other Holder of Subordinated Indebtedness (CMII
and each such Holder, a "SUBORDINATED PARTY"), likewise covenants and agrees,
that all rights of each present and future Holder of Subordinated Indebtedness
and their representatives to payments or distributions of any kind or character
under or in respect of Subordinated Indebtedness are hereby expressly
subordinated and junior in right of payment, to the extent and in the manner set
forth in this Section 2, to the prior payment in full in cash of all Bank
Indebtedness in accordance with the terms of the Bank Documents.

      "SUBORDINATE AND JUNIOR IN RIGHT OF PAYMENT" means that no part of the
Subordinated Indebtedness shall have any claim to the assets of the Companies on
a parity with or prior to the claim of the Bank in respect of Bank Indebtedness.
Unless and until the Bank Indebtedness shall have been fully and paid and
satisfied, except as permitted by the terms of this Agreement: (i) the
Subordinated Parties shall not take, demand or receive from the Companies and
the Companies shall not make, give or permit, directly or indirectly, by setoff,
offset, redemption, purchase or in any other manner, any payment or security for
the whole or any part of the Subordinated Indebtedness and (ii) the Subordinated
Parties shall not accelerate the scheduled maturity of any amount owing under
any Subordinated Indebtedness.

      2.1.1 The Companies may make, and the Subordinated Parties may receive,
payments of principal and scheduled payments of interest under the CMII
Documents in the amounts and at the rates per annum specified therein, and
payments of indemnities, fees, expenses and other amounts (excluding amounts in
respect of the repurchase of any CMII Warrant), in each case, in accordance with
the CMII Documents and subject to the provisions of Section 2.4 hereof;
provided, however, that the Companies may make and the Subordinated Parties may
receive, without regard to the provisions of Section 2.4 hereof, payments of
indemnities, fees and expenses in an amount not exceeding $50,000 in any
calendar year, of which not more than $25,000 shall be in respect of fees and
expenses (excluding expenses relating to indemnification in respect of a third
party claim).

      2.1.2 From and after the payment and satisfaction in full of the Bank
Indebtedness, the Companies may make and the Subordinated Parties may receive
payments in respect of Subordinated Indebtedness and the Subordinated Parties
may exercise rights and remedies in respect of the Subordinated Indebtedness
free of the restrictions of this Agreement (except for Section 2.10 hereof).

                                       5
<PAGE>
Notwithstanding the foregoing, no failure for any reason to give written notice
to the Subordinated Parties of the occurrence of any Default or Event of Default
shall affect the subordination of the Subordinated Indebtedness to the Bank
Indebtedness pursuant to the terms hereof (including, without limitation, the
obligation of the Subordinated Lenders to turn over any payment received by them
upon, or in respect of, any Subordinated Indebtedness if any Event of Default
under the Bank Documents shall have occurred and is then continuing or if any
such payment would cause an Event of Default under the Bank Documents to occur
or be continuing), or any rights or remedies of the Bank under this Agreement or
under applicable law; provided, however, that no Subordinated Party shall have
any obligation or be subject to any restriction arising from a Bank Non-Monetary
Default unless such Subordinated Party has received a Bank Default Notice in
respect thereof.

2.2   CONSENTS OF HOLDERS OF SUBORDINATED INDEBTEDNESS. Notwithstanding any of
the terms of the CMII Documents, each Subordinated Party does hereby acknowledge
the existence of the Bank Indebtedness and the Senior Liens; provided, however,
that the foregoing provisions are intended solely for the benefit of the Bank
and the Holders of Bank Indebtedness, and shall not constitute in any manner a
waiver by any Holder of Subordinated Indebtedness of any default under any of
the CMII Documents that may result from the performance by any Company under the
Bank Documents.

2.3   LIQUIDATION, ETC.

      2.3.1 Upon any payment or distribution of any assets of any Company of any
kind or character, whether in cash, property or securities (including, without
limitation, payments or distributions payable to the Holders of Subordinated
Indebtedness by virtue of the terms of any indebtedness which is subordinated in
right of payment to Subordinated Indebtedness, including, without limitation,
proceeds of subordinated liens ("SUBORDINATED LIENS") payable to the Holders of
Subordinated Indebtedness by virtue of any subordination agreement in which CMII
is a senior creditor (such payment or distribution being hereinafter referred to
as a "SUBORDINATED PAYMENT")), by set-off or otherwise, to creditors in any
liquidation or other winding-up of such Company or in the event of any
receivership, insolvency, reorganization or bankruptcy proceeding, assignment
for the benefit of creditors or any proceeding by or against such Company for
any relief under any bankruptcy, reorganization or insolvency law or laws,
Federal or state, or any law, Federal or state, relating to the relief of
debtors, readjustment of indebtedness, reorganization, composition or extension
of indebtedness (each, a "PROCEEDING"), the Bank shall first be entitled to
receive payment in full in cash, in accordance with the terms of the Bank
Documents and of this Agreement, of all amounts payable under or in respect of
such Bank Indebtedness, before any payment or distribution (including, without
limitation, Subordinated Payments and any proceeds of any Subordinated Lien) is
made on, or in respect of, any Subordinated Indebtedness; and, in any such
Proceeding, any distribution or payment, to which the Bank would be entitled
except for the provisions hereof (including, without limitation, Subordinated
Payments and any proceeds of any Subordinated Lien), shall be paid by such
Company, or by any receiver, trustee in bankruptcy, liquidating trustee, agent
or other person making such payment or distribution directly to the Bank to the
extent necessary to pay all such Bank Indebtedness in full in cash, after giving
effect to any concurrent payment or distribution to the Bank.

                                       6

<PAGE>
      2.3.2 In the event that, notwithstanding the foregoing, in any such
Proceeding any payment or distribution of any assets of any Company, of any kind
or character, whether in cash, property or securities, by set-off or otherwise,
shall be received by any Holder of Subordinated Indebtedness (including, without
limitation, Subordinated Payments and any proceeds of any Subordinated Lien)
before all Bank Indebtedness is paid in full in cash, such payment or
distribution shall be received (whether or not such payment or distribution
shall have been made in accordance with a plan of reorganization or arrangement
approved in bankruptcy or other proceedings) in trust on behalf of the Bank and
shall be paid over to the Bank for application to the payment of all Bank
Indebtedness remaining unpaid until such Bank Indebtedness shall have been paid
in full in cash, after giving effect to any concurrent payment or distribution
to the Bank. In the event of the failure of any Holder of Subordinated
Indebtedness to endorse or assign to the Bank any such payment or distribution,
the Bank is hereby irrevocably authorized to endorse or assign the same on
behalf of any Holder of Subordinated Indebtedness.

      2.3.3 For purposes of this Section 2.3 only, the words "any payment or
distribution of any assets of any Company of any kind or character, whether in
cash, property or securities" shall be deemed not to include a payment or
distribution of stock or securities (including, without limitation, Subordinated
Payments and proceeds of any Subordinated Lien) of such Company provided for by
a plan of reorganization or readjustment authorized by an order or decree of a
court of competent jurisdiction in a reorganization proceeding under any
applicable bankruptcy law [or of any other corporation provided for by such plan
of reorganization or readjustment] authorized by an order or decree of a court
of competent jurisdiction which stock or securities are subordinate in right of
payment to all then outstanding Bank Indebtedness at least to the same extent as
the Subordinated Indebtedness is so subordinate as provided in this Agreement.

2.4   DEFAULT.

      2.4.1 In the event that any Bank Payment Default (as defined below) shall
have occurred and be continuing, then no payment or distribution of any kind,
whether in cash, property or securities (including, without limitation, any
Subordinated Payment and proceeds of any Subordinated Lien), by set-off or
otherwise, shall be made on, or in respect of, any Subordinated Indebtedness or
for the acquisition, retirement, repurchase, redemption or defeasance thereof,
and no Holder of Subordinated Indebtedness shall receive or accept any of the
foregoing, unless and until the Holders of Subordinated Indebtedness have
received written confirmation from the Bank that all amounts then due and
payable in respect of the Bank Indebtedness shall have been paid in full in cash
or cash equivalents; provided, however, that the foregoing limitation on
payments and distributions in respect of Subordinated Indebtedness on account of
such Bank Payment Default shall end upon the earliest to occur of (i) the 366th
day after the occurrence of such Bank Payment Default and (ii) the date upon
which such Bank Payment Default shall be cured or waived in accordance with the
terms of the Bank Documents. "BANK PAYMENT DEFAULT" means any default in the
payment when due of any Bank Indebtedness, whether at the stated maturity of any
such payment or by declaration of acceleration or otherwise (any period during
which the restriction under this Section 2.4.1 is continuing, a "SUBORDINATED
PAYMENT BLOCKAGE Period"). The Bank shall provide prompt written notification to
the Subordinated Parties of such Bank

                                       7
<PAGE>
Payment Default within twenty (20) Business Days following the occurrence
thereof, specifying the amount in default and the date of such default and shall
provide written confirmation that all amounts due and payable in respect of the
Bank Indebtedness shall have been paid in full within twenty (20) Business Days
following the occurrence thereof.

      2.4.2 In the event any Bank Nonmonetary Default (as defined below) shall
have occurred and be continuing, then, upon the receipt of the Holders of
Subordinated Indebtedness of written notice of such Bank Nonmonetary Default
from the Bank (a "BANK DEFAULT NOTICE"), no payment or distribution of any kind,
whether in cash, property or securities (including, without limitation,
Subordinated Payments and proceeds of any Subordinated Lien), by set-off or
otherwise, shall be made on, or in respect of, any Subordinated Indebtedness or
for the acquisition, retirement, repurchase, redemption or defeasance thereof,
and no Holder of Subordinated Indebtedness shall accept or receive any of the
foregoing, during the period (the "SUBORDINATED NON-MONETARY PAYMENT BLOCKAGE
Period", and together with a Subordinated Payment Blockage Period, each a
"PERIOD") commencing on the date such Bank Default Notice is given to the
Holders of Subordinated Indebtedness and ending on the earlier of (i) the date
on which the Bank provides written notice to the Holders of Subordinated
Indebtedness that such Bank Nonmonetary Default has been cured or waived in
accordance with the terms of the Bank Indebtedness or has been rescinded or
annulled or the Bank Indebtedness to which such Bank Nonmonetary Default relates
has been fully discharged in a manner satisfactory to the Bank, which notice the
Bank agrees to provide promptly, or (ii) the 181st day after the date such Bank
Default Notice is given to the Holders of Subordinated Indebtedness. "BANK
NONMONETARY DEFAULT" means the occurrence or existence and continuance of any
event of default permitting Bank or one or more Holders of Bank Indebtedness to
declare such Bank Indebtedness due and payable prior to the date on which it
would otherwise become due and payable, other than a Bank Payment Default. No
Bank Default Notice shall be effective under this Section 2.4.2 if (i) such Bank
Default Notice shall be based upon or refer to any Bank Nonmonetary Default
which shall have been in existence at the time of issuance of any previous Bank
Default Notice unless such Bank Nonmonetary Default shall have ceased to exist
for a period of at least 60 consecutive days prior to the date of such Bank
Default Notice or (ii) such Bank Default Notice shall be based on or refer to
any event of default existing at the time that any other Bank Default Notice was
sent by Bank or such other agent. Notwithstanding the foregoing portions of this
Section 2.4.2, nothing contained in this Section 2.4.2 shall prohibit any
Company from making, or any one or more Holders of Subordinated Indebtedness
from receiving and retaining, payments in respect of the Subordinated
Indebtedness for more than 180 days in any period of 365 consecutive days.

      2.4.3 During the period commencing on the earlier of the first day of any
Period and ending on the earliest to occur of (i) the date on which such Period
ends, (ii) the date 180 days after such first day; and (iii) the date that the
Bank Indebtedness shall have become immediately due and payable, without the
prior written consent of the Bank, no Holder of Subordinated Indebtedness will
take any action to enforce payment of any Subordinated Indebtedness (including,
without limitation, giving any notice of acceleration, making demand for any
payment, instituting any suit, commencing any legal proceeding or enforcement
action or joining in a petition instituting a Proceeding in which any Company is
a debtor or affecting any assets of such Company).

                                       8

<PAGE>
      2.4.4 In the event that notwithstanding the foregoing, any Holder of
Subordinated Indebtedness shall receive any payment or distribution of any
assets of any Company of any kind or character, whether in cash, property or
securities (including, without limitation, any Subordinated Payment and proceeds
of any Subordinated Lien), by set-off or otherwise, in violation of this Section
2.4, such cash, property or securities shall be held in trust by the recipient
thereof on behalf of the Bank and shall be paid over to the Bank for application
to the payment of all Bank Indebtedness until all Bank Indebtedness shall have
been paid in full in cash or cash equivalents, after giving effect to any
concurrent payment or distribution to the Holders of such Bank Indebtedness. In
the event of the failure of any Holder of any Subordinated Indebtedness to
endorse or assign to the Bank any such payment or distribution, the Bank is
hereby irrevocably authorized to endorse or assign the same on behalf of any
Holder of Subordinated Indebtedness.

      2.4.5 Nothing contained in this Agreement shall prevent the addition of
"PIK Amounts" (as such term is defined in the CMII Note) to the "Accreted
Principal Amount" (as such term is defined in the CMII Note).

2.5   RESUMPTION OF PAYMENTS; NO DEFAULT, ETC. From and after the date on which
any Period ends (and until the commencement of any other Period) each Company
may pay and each Holder of Subordinated Indebtedness may receive and retain any
payments otherwise permitted under Section 2.1 which shall have accrued and
become due and payable through such time. Whether or not Section 2.3 or Section
2.4 prevents any payment or distribution in respect of Subordinated
Indebtedness, the failure of any Company to make any payment in respect of the
Subordinated Indebtedness as required by the CMII Documents shall nonetheless
constitute a default thereunder.

2.6   SUBROGATION TO RIGHTS OF THE BANK. Upon the payment in full in cash of all
amounts due or to become due on or in respect of Bank Indebtedness and the
irrevocable termination of all commitments under the Bank Documents, to the
extent cash, property or securities otherwise payable or deliverable to the
Holders of Subordinated Indebtedness shall have been applied to the payment of
Bank Indebtedness pursuant to this Agreement, then the Holders of Subordinated
Indebtedness shall be subrogated to the rights of the Bank to receive such
payments and distributions of cash, property and securities applicable to the
Bank Indebtedness until the principal of and any interest on the Subordinated
Indebtedness and all other amounts payable in respect of Subordinated
Indebtedness shall be paid in full in cash. For purposes of such subrogation, no
payments or distributions to the Bank of any cash, property or securities to
which the Holders of Subordinated Indebtedness would be entitled except for the
provisions of this Agreement, and no payment over pursuant to the provisions of
this Agreement to the Bank by the Holders of Subordinated Indebtedness, shall,
as among each Company and its creditors (other than the applicable Holders of
Bank Indebtedness and Holders of Subordinated Indebtedness), be deemed to be a
payment or distribution by such Company to or on account of any Bank
Indebtedness. At such time as the Holders of Subordinated Indebtedness become
subrogated to the rights of the Bank to receive payments and distributions of
cash, property and securities applicable to Bank Indebtedness as set forth in
this Section 2.6, the Bank shall (at the cost and expense of the Holders of
Subordinated Indebtedness) execute and deliver to the Holders of the
Subordinated Indebtedness such assignments of the Bank Documents (without
recourse and without representation or warranty of any kind, other than the
authority of the Bank

                                       9
<PAGE>
to execute and deliver such assignments) to the Holders of Subordinated
Indebtedness, as such Holders may reasonably request, such assignments to be in
form, scope and substance satisfactory to such Holders of Subordinated
Indebtedness and the Bank.

2.7   CERTAIN RIGHTS. Each Subordinated Party, agrees to execute and deliver to
the Bank such assignments or other instruments as may be reasonably requested by
the Bank in order to enable the Bank to enforce its rights hereunder and to
collect, to the extent entitled thereto under this Agreement, any and all
dividends or other payments or disbursements which may be made at any time on
account of all or any of the Subordinated Indebtedness so long as any Bank
Indebtedness is outstanding.

2.8   BENEFIT OF SUBORDINATION PROVISIONS. Each Subordinated Party, agrees that
the Bank shall not be liable for any action or failure to act under or in
connection with any of the Bank Documents, it being understood that the
decisions as to whether or not to act and the manner of proceeding under such
instruments and documents are within the sole discretion of the Bank, and shall
not be affected in any manner by the existence of the Subordinated Indebtedness.
It is further agreed that such obligations as may be imposed under the Bank
Documents or under the Uniform Commercial Code or other applicable law shall run
exclusively to the benefit of the Bank and may be enforced or waived only by the
Bank.

2.9   NO PAYMENTS IN VIOLATION OF THIS AGREEMENT. Each Company and each
Subordinated Party agrees that no payments or distributions, by set-off or
otherwise, will be made by or on behalf of such Company, and no payments or
distributions will be received by or on behalf of any Subordinated Party in
violation of the terms of this Agreement.

2.10  RETURNED PAYMENTS. Without limiting any other provision of this Agreement,
Bank Indebtedness shall not be deemed to have been paid in full for purposes of
this Agreement if any payment in respect thereof shall have been restored or
returned to the payor or its trustee in accordance with the order of any court
of competent jurisdiction in any insolvency, bankruptcy, dissolution,
liquidation or reorganization of the payor (or a settlement of any claim or
potential claim made in connection with any such proceeding), or as required or
agreed upon or as a result of the appointment of a custodian, receiver, trustee
or other officer with respect to the payor or any substantial part of its
property or otherwise, and this Agreement shall be reinstated as to any Bank
Indebtedness as to which any such restoration or return shall have occurred.

2.11  NOTICE OF DEFAULT. Each Subordinated Party agrees to notify each Holder of
Bank Indebtedness (or any representative thereof), in writing, at least seven
(7) Business Days prior to taking any action to accelerate any Subordinated
Indebtedness or to otherwise commence the exercise of its rights in respect of
any default under the CMII Documents, in each case as is permitted by this
Agreement.

2.12  CERTAIN POWERS OF THE BANK. Each Subordinated Party agrees that, subject
to Section 3.4.2 hereof, without notice to or consent by it, (a) the liability
of any Company in respect of the Bank Indebtedness may, in whole or in part, be
renewed, extended, modified, restated, released, replaced, refinanced or
refunded by the Bank and the Bank Documents may be amended or supplemented, as
the Bank may deem advisable, (b) any Collateral and/or security interests in
respect of Bank Indebtedness may, from time to time, in whole or in part, be
exchanged, released, continued, not perfected, not timely

                                       10
<PAGE>
perfected, sold or surrendered by the Bank, (c) the amount of the Bank
Indebtedness may, from time to time, be increased through further loans, or
otherwise, (d) any deposit balance or balances to the credit of any Company may,
from time to time, in whole or in part, be surrendered or released by the Bank,
and (e) any of the provisions hereof may be waived partially or entirely by the
Bank as to some Subordinated Indebtedness but not other Subordinated
Indebtedness, all without impairing or in any way affecting the subordination of
the Subordinated Indebtedness contained in this Agreement; nor shall the
subordination of the Subordinated Indebtedness herein contained be impaired or
affected in any way by any other action, inaction or omission in respect of the
Bank Indebtedness or the Senior Liens or this Agreement.

2.13  RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING AGENT. Upon any
payment or distribution of assets of any Company, the Holders of the
Subordinated Indebtedness shall be entitled to rely upon any order or decree
entered by any court of competent jurisdiction in which such Proceeding is
pending, or a certificate of the trustee in bankruptcy, receiver, liquidating
trustee, custodian, assignee for the benefit of creditors, agent or other person
making such payment or distribution, delivered to the Holders for the purpose of
ascertaining the persons entitled to participate in such payment or
distribution, the Bank and other indebtedness of such Company, the amount
thereof or payable thereon, the amount or amounts paid or distributed thereon
and all other facts pertinent thereto or to this Section 2, in each case, so
long as such order or decree is consistent with this Agreement.

2.14  POWER OF ATTORNEY; AGREEMENT TO COOPERATE. Each Subordinated Party agrees
that in the event that as of the time thirty (30) days prior to the bar date in
any Proceeding, no proof of claim shall have been filed in such Proceeding in
respect of Subordinated Indebtedness, then, and in any such event, the Bank is
irrevocably authorized and empowered to file, for and on behalf of the Holders
of Subordinated Indebtedness, a proof of claim in respect of Subordinated
Indebtedness in such Proceeding and following the time of such filing of such a
proof of claim in accordance with the terms of this Section 2.14 by the Bank and
until any Holder of Subordinated Indebtedness shall, in writing, provide notice
to the Bank terminating the authority granted in this Section 2.14 (which notice
may be given by any Holder of Subordinated Indebtedness at any time) to the
Bank, the Bank is authorized for and on behalf of the Holders of Subordinated
Indebtedness to demand, sue for, collect and receive every payment or
distribution in respect of Subordinated Indebtedness (to which CMII and each
other Holder of Subordinated Indebtedness would, but for the subordination
provisions contained herein, be entitled), and to give acquittance therefor and
to take such other actions (including, without limitation, voting for or against
plans of reorganization, seeking or opposing adequate protection, seeking or
opposing relief from the automatic stay, supporting or opposing applications of
any Company or other parties and taking or refraining from taking any other
action which CMII or such other Holder of Subordinated Indebtedness is entitled
to take or refrain from taking in any such Proceeding), as the Bank may deem
necessary or advisable for the enforcement of the provisions of this Agreement.
Notwithstanding any such termination of authority by such Holder, the Bank is
authorized to vote claims in respect of Subordinated Indebtedness on behalf of
such Holder of Subordinated Indebtedness if such Holder of Subordinated
Indebtedness shall not have voted such claim within ten (10) days before the
expiration of the time to vote any such claim (unless there is less than thirty
(30) days in total for voting on the matter at issue).

3.    REPRESENTATIONS, WARRANTIES AND COVENANTS.

                                        11
<PAGE>
3.1   INDEBTEDNESS. Each Company jointly and severally represents, and CMII, to
the best of its knowledge, represents, to the Bank that there are at present no
documents or instruments evidencing, creating or convertible into or
exchangeable for any Subordinated Indebtedness other than the documents listed
on Schedule 3.1 hereto. CMII hereby represents to the Bank that it owns the CMII
Notes for its own account. CMII hereby further represents to the Bank that no
Company has granted to CMII or any Affiliate of CMII a lien, mortgage or
security interest of any type or nature in respect of the Subordinated
Indebtedness in any of such Company's assets.

3.2   EXISTENCE AND AUTHORITY. CMII represents to the Bank that:

      3.2.1 it is a limited partnership duly formed, validly existing and in
good standing under the laws of the British Virgin Island; and

      3.2.2 its execution, delivery and performance of this Agreement are within
its company power, have been authorized by all necessary company actions and are
not in contravention of its limited partnership agreement or any law binding on
it.

3.3   NO CONFLICT. CMII represents to the Bank that CMII's execution, delivery
and performance of this Agreement will not conflict with or result in the breach
or termination of, constitute a default under, or accelerate any performance
required under, any other agreement to which CMII is party.

3.4   CERTAIN COVENANTS.

      3.4.1 COVENANTS OF CMII. Until the Subordination Termination Date and
notwithstanding anything contained in the CMII Documents or the Bank Documents
to the contrary, CMII shall not and by its acceptance of a CMII Note and/or CMII
Warrant, each other Holder of Subordinated Indebtedness agrees that it shall not
without the prior written consent of Bank (which consent shall not be
unreasonably withheld), agree to any amendment, modification or supplement to
the CMII Original Documents or CMII Refinancing Documents, the effect of which
is to (i) increase the maximum principal amount of the Subordinated Indebtedness
above at any time, the sum of (x) $5,000,000 and interest added to principal of
the CMII Notes, minus (y) the sum of all payments of principal constituting
Subordinated Indebtedness made after the date hereof and through such time
(excluding CMII Refinancing Payments) or increase the rate of interest on any of
the Subordinated Indebtedness (which shall not include the imposition of any
default rate of interest contemplated by the CMII Documents), (ii) change to an
earlier date the dates upon which any payment of principal or interest on the
Subordinated Indebtedness is due, (iii) change (in a manner adverse to a Company
or to any Holder of Bank Indebtedness) or add any event of default or any
covenant with respect to the Subordinated Indebtedness, (iv) change the
redemption, repurchase, put or prepayment provisions of the Subordinated
Indebtedness to require earlier redemption, repurchase or prepayment or permit
an earlier put, (v) alter the subordination provisions with respect to the
Subordinated Indebtedness, including, without limitation, subordinating the
Subordinated Indebtedness to any other debt, (vi) change the maturity date or
the date when payable of any of the Subordinated Indebtedness to an earlier date
or otherwise to alter the repayment terms of the Subordinated Indebtedness to
require earlier repayment, (vii) take any Liens in any assets of any Company or
(viii) change or amend any other term of the CMII Original Documents or CMII
Refinancing Documents if such change or

                                        12
<PAGE>
amendment would increase the obligations of any Company (or any other Note
Party, as defined in the CMII Original Documents as in effect on the date
hereof) in any material manner or confer additional material rights on CMII or
any other Holder of Subordinated Indebtedness or otherwise have a Material
Adverse Effect (as defined in the Bank Documents) on the Bank. In the event of a
replacement, refinancing or refunding of the Bank Indebtedness pursuant to Bank
Refinancing Documents, CMII shall, upon request of the Bank, execute a
confirmation (in a form reasonably acceptable to CMII) that the Bank is entitled
to the benefits of this Agreement.

      3.4.2 COVENANTS OF THE BANK. Until the Subordination Termination Date and
notwithstanding anything contained in the Bank Documents to the contrary, the
Bank agrees that it shall not without the prior written consent of the Holders
of a majority in principal amount of the Subordinated Indebtedness (which
consent shall not be unreasonably withheld) (i) increase the Bank Indebtedness
above the Bank Indebtedness Cap, (ii) increase the interest rate with respect to
the Bank Indebtedness by more than 200 basis points, except in connection with
the imposition of a default rate under subsection 2.1.2 of the Credit Agreement
(as in effect on the date hereof) (or a comparable provision under any Bank
Refinancing Document), or (c) extend the final maturity of the Bank Indebtedness
(including without limitation through automatic renewals under subsection 4.1 of
the Credit Agreement) until a date later than September 22, 2008.

      3.4.3 COVENANTS OF THE COMPANIES. Each Company agrees and covenants that
it will not take or omit to take any action if the effect of such action or
omission would be contrary to or would result in a violation of any of the
provisions of this Agreement.

4.    PRIORITY OF LIENS; NO CONTEST. CMII and, by its acceptance of a CMII Note
and/or CMII Warrant, each other Holder of Subordinated Indebtedness, agrees that
it will not contest the validity, perfection, priority or enforceability of the
Senior Liens and that as between CMII or any such other Holder of a CMII Note or
CMII Warrant on the one hand and the Bank on the other hand, the terms of this
Agreement shall govern even if all or part of the Bank Indebtedness or the
Senior Liens are avoided, disallowed, set aside or otherwise invalidated in any
judicial proceeding or otherwise; provided, however, that the terms, provisions
and restrictions of this Section 4 shall be void and of no further force and
effect upon the payment in full in cash of all Bank Indebtedness and the
irrevocable termination of all commitments under the Bank Documents.

5.    PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS. The provisions of this
Agreement are and are intended solely for the purpose of defining the relative
rights of the Holders of Subordinated Indebtedness, on the one hand, and the
Bank, on the other hand. [Nothing contained in this Agreement is intended to or
shall (a) impair, as between any Company and its creditors (other than the Bank
and the Holders of Subordinated Indebtedness), the obligation of such Company,
which is absolute and unconditional (and which, subject to the rights under this
Agreement of the Bank and the Holders of Subordinated Indebtedness, except as
expressly set forth in the CMII Documents and herein, is intended to rank
equally with all other general obligations of such Company), to pay to the
Holders of Subordinated Indebtedness the principal of and interest on the
Subordinated Indebtedness and all other amounts payable thereunder in accordance
with the terms of the Subordinated Indebtedness; (b) affect the

                                     13
<PAGE>
relative rights against such Company of the Holders of Subordinated Indebtedness
on the one hand and the creditors of such Company other than the Bank on the
other hand; or (c) except as provided in Sections 2, 3 and 4 hereof, prevent any
Holders of Subordinated Indebtedness from exercising all remedies otherwise
permitted by applicable law and under the CMII Documents upon default, subject
to the rights, under this Agreement of the Bank.

6.    LEGEND Until such time as all amounts due or to become due on or in
respect of Bank Indebtedness have been paid in full in cash and the Bank
Documents have been irrevocably terminated, the CMII Notes shall at all times
contain in a conspicuous manner a legend substantially similar to the following:

      "This Note and the indebtedness evidenced hereby are subordinate in the
      manner and to the extent set forth in that certain Subordination and
      Intercreditor Agreement (as amended, modified or supplemented from time to
      time, the "SUBORDINATION AGREEMENT") dated as of October 22, 2001; by and
      among Willey Brothers Inc.; Corporate Mezzanine II, L.P.; and Fleet
      Capital Corporation ("BANK"); and each of their respective successors and
      assigns, to the "Bank Indebtedness" as defined therein; and each holder of
      this Note, by its acceptance hereof, shall be bound by the provisions of
      the Subordination Agreement."

7.    MISCELLANEOUS.

7.1   NOTICE TO HOLDERS. Each Company shall give prompt written notice to the
Holders of any fact known to such Company which would prohibit the making of any
payment or distribution by such Company in respect of Subordinated Indebtedness.

7.2   NO WAIVER OF SUBORDINATION PROVISIONS. No right of any present or future
Holder of any Bank Indebtedness to enforce subordination as herein provided
shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of any Company or by any act or failure to act, in good faith,
by any such Holder, or by any noncompliance by any Company with the terms,
provisions and covenants of this Agreement, regardless of any knowledge thereof
any such Holder may have or be otherwise charged with.

7.3   BINDING NATURE. Except as provided in Section 7.15 hereof, this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, legal representatives, successors and assigns.

7.4   CONFLICT. As between the Holders of Bank Indebtedness, on the one hand,
and the Holders of Subordinated Indebtedness, on the other hand, in the event of
any conflict between any term, covenant or condition of this Agreement and any
term, covenant or condition of any of the CMII Documents or Bank Documents, the
provisions of this Agreement shall control and govern.

7.5   INTENTIONALLY OMITTED.

                                       14
<PAGE>
7.6   COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which shall constitute an original Agreement but all of which together
shall constitute one and the same instrument.

7.7   HEADINGS. The descriptive headings herein are for convenience only and
shall not affect the meaning or construction of any of the provisions hereof.
Words used herein, regardless of the number and gender specifically used shall
be deemed and construed to include any other number, singular or plural, and any
other gender, masculine, feminine or neuter, as the context requires.

7.8   NOTICES. All notices, requests, consents, demands, approvals and other
communications hereunder shall be deemed to have been duly given, made or served
if in writing and when delivered personally (including without limitation by
means of telecopier before 4:00 p.m. (New York time)), or the day following
delivery to a nationally recognized, reputable overnight courier service which
guarantees delivery within twenty-four hours, charges prepaid, to the respective
parties to this Agreement as follows:

      7.8.1  if to any Company:

             Willey Brothers, Inc
             10 Main Street
             Rochester, New Hampshire 13839
             Attention:  Kevin Kelly, President
             Facsimile No.:

             With copies to:

             Modlin Haftel & Nathan LLP
             777 Third Avenue, 30th Floor
             New York, New York 10017
             Attention:  Charles M. Modlin, Esq.
             Facsimile No.: (212) 832-1642

             and

             Kramer Levin Naftalis & Frankel LLP
             919 Third Avenue
             New York, New York 10022
             Attention:  Howard A. Sobel, Esq.
             Facsimile No.: (212) 715-8000

                                       15
<PAGE>
      7.8.2  If to CMII:

             c/o Canaan Partners
             105 Rowayton Avenue
             Rowayton, Connecticut 06853

             Attention: Earl Mix
             Facsimile No.: (203) 854-9117

             With a copy to:

             Clifford Chance Rogers & Wells LLP
             200 Park Avenue
             New York, New York 10166-0165

             Attention:  Robert S. Finley, Esq.
             Facsimile No.: (212) 878-8375

      7.8.3  If to the Bank:

             Fleet Capital Corporation
             60 East 42nd Street
             New York, New York 10017
             Attention:  Loan Administration Manager
             Facsimile No.:  (212) 885-8808

             With a copy to:

             Kramer Levin Naftalis & Frankel LLP
             919 Third Avenue
             New York, New York 10022
             Attention:  Carl Frischling, Esq.
             Facsimile No.:  (212) 715-8000

The designation of the person to be so notified or the address of such person
for the purposes of such notice may be changed from time to time by similar
notice in writing, except that any communication with respect to a change of
address shall be deemed to be given and made when received by the party to whom
such communication was sent. Unless the Bank otherwise specifies in writing in
the manner provided herein, all notices which must be provided to Holders of
Bank Indebtedness may be sent to the Bank.

7.9   SEVERABILITY. In the event that any provision of this Agreement is deemed
to be invalid, illegal or unenforceable by reason of the operation of any law or
by reason of the interpretation placed thereon by any court or governmental
authority, the validity, legality and enforceability of the remaining provisions
of this Agreement shall not in any way be affected or impaired thereby, and the
affected provision shall

                                       16
<PAGE>
be modified to the minimum extent permitted by law so as most fully to achieve
the intention of this Agreement.

7.10  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE
PRINCIPLES OF CONFLICTS OF LAW OF SUCH STATE OTHER THAN SECTION 5-1401 OF THE
GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK.

7.11  WAIVER OF JURY TRIAL AND SET OFF; CONSENT TO JURISDICTION.

      7.11.1 EACH OF THE PARTIES HERETO HEREBY WAIVES, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, TRIAL BY JURY IN ANY LITIGATION IN ANY COURT WITH RESPECT TO,
IN CONNECTION WITH, OR ARISING OUT OF THIS AGREEMENT OR THE VALIDITY,
PROTECTION, INTERPRETATION, OR ENFORCEMENT HEREOF. EACH OF SUCH PARTIES HEREBY
IRREVOCABLY CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE
OF NEW YORK LOCATED IN THE CITY OF NEW YORK AND, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, OF ANY FEDERAL COURT LOCATED IN THE SOUTHERN DISTRICT OF NEW
YORK IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT OR THE VALIDITY, PROTECTION INTERPRETATION OR ENFORCEMENT HEREOF.

      7.11.2 In any litigation hereunder each of the parties hereto waives, to
the fullest extent it may effectively do so, personal service of any summons,
compliant or other process and agrees that the service thereof may be made by
certified or registered mail directed to any such party at its address set forth
in Section 7.8 hereof or as set forth in the next sentence.

7.12  ENTIRE AGREEMENT. This Agreement represents the entire agreement among the
parties hereto with respect to the subject matter hereof and, except as
expressly provided herein, shall not be affected by reference to any other
document. Neither this Agreement nor any provision hereof may be changed,
waived, discharged or terminated orally, but such may be accomplished only by an
instrument in writing signed by all parties hereto.

7.13  AMENDMENT. No provision of this Agreement may be amended, modified or
waived except by a writing signed by each of the parties hereto.

7.14  TERMINATION. This Agreement shall terminate on the Subordination
Termination Date.

7.15  NO BENEFIT TO COMPANIES. No Company is a beneficiary of any portion of
this Agreement or shall have any rights arising under this Agreement or any
right to enforce any provision hereof.

7.16  OBLIGATIONS JOINT AND SEVERAL. All obligations of the Companies under this
Agreement are joint and several.

                                       17
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date fist above written.

WILLEY BROTHERS INC.

By:   /s/ Kevin Kelly
      ----------------------------
      Name:  Kevin Kelly
      Title:  President

CORPORATE MEZZANINE II, L.P.

By:   /s/ Robert Finley
      ---------------------
      Name:  Robert Finley
      Title:  Attorney-in-Fact

FLEET CAPITAL CORPORATION

By:   /s/ Michael Kerneklian
      ----------------------------
      Name:  Michael Kerneklian
      Title:  Vice President<PAGE>
                                                                     EXHIBIT 4.2

                      THE READER'S DIGEST ASSOCIATION, INC.

                                     Issuer

                              JPMorgan Chase Bank,

                                     Trustee

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

                                    INDENTURE

                           Dated as of November   , 2001

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

                                 Debt Securities
<PAGE>
                                TABLE OF CONTENTS

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

RECITALS .....................................................................................................    1

ARTICLE 1 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION ............................................    1
         Section 101. Definitions ............................................................................    1
         Section 102. Compliance Certificates and Opinions ...................................................   11
         Section 103. Form of Documents Delivered to Trustee .................................................   11
         Section 104. Acts of Holders ........................................................................   12
         Section 105. Notices, Etc., to Trustee and the Company ..............................................   13
         Section 106. Notice to Holders; Waiver ..............................................................   14
         Section 107. Conflict with Trust Indenture Act ......................................................   15
         Section 108. Effect of Headings and Table of Contents ...............................................   15
         Section 109. Successors and Assigns .................................................................   15
         Section 110. Separability Clause ....................................................................   15
         Section 111. Benefits of Indenture ..................................................................   15
         Section 112. Governing Law ..........................................................................   15
         Section 113. Non-Business Day .......................................................................   15
         Section 114. Immunity of Incorporators, Stockholders, Officers and Directors ........................   16
         Section 115. Certain Matters Relating to Currencies .................................................   16
         Section 116. Language of Notices, Etc. ..............................................................   16

ARTICLE 2 SECURITY FORMS .....................................................................................   17
         Section 201. Forms of Securities ....................................................................   17
         Section 202. Form of Trustee's Certificate of Authentication ........................................   17
         Section 203. Securities in Global Form ..............................................................   17

ARTICLE 3 THE SECURITIES .....................................................................................   18
         Section 301. Title; Payment and Terms ...............................................................   18
         Section 302. Denominations and Currencies ...........................................................   21
         Section 303. Execution, Authentication, Delivery and Dating .........................................   22
         Section 304. Temporary Securities and Exchange of Securities ........................................   23
         Section 305. Registration, Registration of Transfer and Exchange ....................................   26
         Section 306. Mutilated, Destroyed, Lost and Stolen Securities and Coupons ...........................   28
         Section 307. Payment of Interest; Interest Rights Preserved .........................................   29
         Section 308. Persons Deemed Owners ..................................................................   31
         Section 309. Cancellation ...........................................................................   31
         Section 310. Computation of Interest ................................................................   32
         Section 311. Currency and Manner of Payments in Respect of Securities ...............................   32
         Section 312. Appointment and Resignation of Currency Determination Agent ............................   34

ARTICLE 4 SATISFACTION AND DISCHARGE .........................................................................   35
         Section 401. Option to Effect Legal Defeasance or Covenant Defeasance ...............................   35
         Section 402. Legal Defeasance and Discharge .........................................................   35
</TABLE>

                                       i
<PAGE>
<TABLE>
<S>                                                                                                             <C>
         Section 403. Covenant Defeasance ....................................................................   35
         Section 404. Conditions to Legal or Covenant Defeasance .............................................   36
         Section 405. Satisfaction and Discharge of Indenture ................................................   37
         Section 406. Survival of Certain Obligations ........................................................   37
         Section 407. Acknowledgment of Discharge by Trustee .................................................   38
         Section 408. Application of Trust Moneys ............................................................   38
         Section 409. Repayment to the Company; Unclaimed Money ..............................................   38
         Section 410. Reinstatement ..........................................................................   39

ARTICLE 5 REMEDIES ...........................................................................................   39
         Section 501. Events of Default ......................................................................   39
         Section 502. Acceleration of Maturity; Rescission and Annulment .....................................   41
         Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee ........................   42
         Section 504. Trustee May File Proofs of Claim .......................................................   42
         Section 505. Trustee May Enforce Claims Without Possession of Securities or Coupons .................   43
         Section 506. Application of Money Collected .........................................................   44
         Section 507. Limitation on Suits ....................................................................   44
         Section 508. Unconditional Right of Holders to Receive Principal (and Premium, if any) and
                        Interest, if any .....................................................................   45
         Section 509. Restoration of Rights and Remedies .....................................................   45
         Section 510. Rights and Remedies Cumulative .........................................................   45
         Section 511. Delay or Omission Not Waiver ...........................................................   45
         Section 512. Control by Holders .....................................................................   45
         Section 513. Waiver of Past Defaults ................................................................   46
         Section 514. Undertaking for Costs ..................................................................   46
         Section 515. Waiver of Stay or Extension Laws .......................................................   46
         Section 516. Judgment Currency ......................................................................   47

ARTICLE 6 THE TRUSTEE ........................................................................................   47
         Section 601. Certain Duties and Responsibilities ....................................................   47
         Section 602. Notice of Defaults .....................................................................   48
         Section 603. Certain Rights of Trustee ..............................................................   48
         Section 604. Not Responsible for Recitals or Issuance of Securities .................................   49
         Section 605. May Hold Securities ....................................................................   49
         Section 606. Money Held in Trust ....................................................................   50
         Section 607. Compensation and Reimbursement .........................................................   50
         Section 608. Disqualification; Conflicting Interests ................................................   50
         Section 609. Corporate Trustee Required; Different Trustees for Different Series; Eligibility .......   51
         Section 610. Resignation and Removal; Appointment of Successor ......................................   51
         Section 611. Acceptance of Appointment by Successor .................................................   52
         Section 612. Merger, Conversion, Consolidation or Succession to Business ............................   53
         Section 613. Preferential Collection of Claims Against Company ......................................   53
         Section 614. Authenticating Agents ..................................................................   54

ARTICLE 7 HOLDERS' LISTS AND REPORTS BY TRUSTEE AND THE COMPANY ..............................................   55
         Section 701. Company to Furnish Trustee Names and Addresses of Holders ..............................   55
         Section 702. Preservation of Information; Communications to Holders .................................   55
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                                                             <C>
         Section 703. Reports by Trustee .....................................................................   56
         Section 704. Reports by Company .....................................................................   57

ARTICLE 8 CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER ......................................................   57
         Section 801. Company May Consolidate, Etc., Only on Certain Terms ...................................   57
         Section 802. Successor Corporation Substituted ......................................................   58

ARTICLE 9 SUPPLEMENTAL INDENTURES ............................................................................   58
         Section 901. Supplemental Indentures Without Consent of Holders .....................................   58
         Section 902. Supplemental Indentures With Consent of Holders ........................................   60
         Section 903. Execution of Supplemental Indentures ...................................................   61
         Section 904. Effect of Supplemental Indentures ......................................................   61
         Section 905. Conformity With Trust Indenture Act ....................................................   61
         Section 906. Reference in Securities to Supplemental Indentures .....................................   61

ARTICLE 10 COVENANTS .........................................................................................   61
         Section 1001. Payment of Principal (and Premium, if any) and Interest, if any .......................   61
         Section 1002. Maintenance of Office or Agency .......................................................   62
         Section 1003. Money for Securities Payments To Be Held in Trust .....................................   63
         Section 1004. Payment of Taxes and Other Claims .....................................................   64
         Section 1005. Statements as to Compliance ...........................................................   64
         Section 1006. Corporate Existence ...................................................................   64
         Section 1007. Lien on Assets ........................................................................   65
         Section 1008. Sale and Leaseback Transactions .......................................................   66
         Section 1009. Waiver of Certain Covenants ...........................................................   66
         Section 1010. Payment of Additional Amounts .........................................................   67

ARTICLE 11 REDEMPTION OF SECURITIES ..........................................................................   69
         Section 1101. Applicability of This Article .........................................................   69
         Section 1102. Election to Redeem; Notice to Trustee .................................................   69
         Section 1103. Selection by Trustee of Securities to Be Redeemed .....................................   69
         Section 1104. Notice of Redemption ..................................................................   70
         Section 1105. Deposit of Redemption Price ...........................................................   70
         Section 1106. Securities Payable on Redemption Date .................................................   71
         Section 1107. Securities Redeemed in Part ...........................................................   71
         Section 1108. Tax Redemption; Special Tax Redemption ................................................   72

ARTICLE 12 SINKING FUNDS .....................................................................................   74
         Section 1201. Applicability of This Article .........................................................   74
         Section 1202. Satisfaction of Sinking Fund Payments With Securities .................................   74
         Section 1203. Redemption of Securities for Sinking Fund .............................................   75

ARTICLE 13 MEETINGS OF HOLDERS OF SECURITIES .................................................................   75
         Section 1301. Purposes for Which Meetings May Be Called .............................................   75
         Section 1302. Call, Notice and Place of Meetings ....................................................   75
         Section 1303. Persons Entitled to Vote at Meetings ..................................................   76
         Section 1304. Quorum; Action ........................................................................   76
</TABLE>

                                      iii
<PAGE>
<TABLE>
<S>                                                                                                             <C>
         Section 1305. Determination of Voting Rights; Conduct and Adjournment of Meetings ...................   76
         Section 1306. Counting Votes and Recording Action of Meetings .......................................   77
</TABLE>

EXHIBITS

         EXHIBIT A.   Form of Certificate To Be Delivered to Euroclear or
                      Clearstream by a Beneficial Owner of Securities, in Order
                      to Receive a Definitive Bearer Security in Exchange for an
                      Interest in a Temporary Global Security or to Exchange an
                      Interest in a Temporary Global Security for an Interest in
                      a Permanent Global Security.

         EXHIBIT B.   Form of Certificate To Be Given to the Appropriate Trustee
                      by Euroclear or Clearstream Regarding the Exchange of a
                      Temporary Global Security for Definitive Securities or for
                      a Portion of a Permanent Global Security.

         EXHIBIT C.   Form of Certificate To Be Delivered to Euroclear or
                      Clearstream by a Beneficial Owner of Securities, in Order
                      to Receive Payment on a Temporary Global Security.

         EXHIBIT D.   Form of Certificate To Be Given to the Appropriate Trustee
                      by Euroclear or Clearstream Regarding Payment on a
                      Temporary Global Security.

                                       iv
<PAGE>
         INDENTURE dated as of November , 2001, between THE READER'S DIGEST
ASSOCIATION, INC., a corporation duly incorporated and existing under the laws
of Delaware and having its principal executive office in Pleasantville, New York
10570 (hereinafter called "the Company") and JPMORGAN CHASE BANK, a banking
corporation organized and existing under the laws of the State of New York, as
Trustee (hereinafter called the "Trustee").

                             RECITALS OF THE COMPANY

         The Company deems it necessary to issue from time to time for its
lawful purposes securities (hereinafter called the "Securities") evidencing its
unsecured indebtedness and has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of the Securities,
unlimited as to principal amount, to have such titles, to bear such rates of
interest, to mature at such time or times and to have such other provisions as
shall be fixed as hereinafter provided.

         All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done, and the Company proposes
to do all things necessary to make the Securities, when executed by the Company
and authenticated and delivered by the Trustee hereunder and duly issued by the
Company, the valid obligations of the Company as hereinafter provided.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE 1

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101.      Definitions.

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

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

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

                  (3) all accounting terms not otherwise defined herein have the
         meanings assigned to them in accordance with generally accepted
         accounting principles in the United States, and the term "generally
         accepted accounting principles" with respect to any computation
         required or permitted hereunder shall mean such accounting principles
         as are generally accepted in the United States at the date or time of
         such computation; and
<PAGE>
                  (4) the words "herein", "hereof" and "hereunder" and other
         words of similar import refer to this Indenture as a whole and not to
         any particular Article, Section or other subdivision.

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

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

         "Affiliate" means, with respect to any Person, any other Person that
directly, or indirectly through one or more intermediaries, controls, or is
controlled by, or is under common control with, such Person. For the purposes of
this definition, "control" when used with respect to any specified Person means
the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the term "controlled" has meaning correlative to the foregoing.

         "Attributable Debt" means, in respect of a Sale and Lease-back
Transaction, at the time of determination, the lesser of (x) the fair market
value of the property subject to such arrangement or (y) the present value
(discounted at the rate per annum equal to the interest borne by the Securities
on a weighted average basis) of the total obligations of the lessee for rental
payments during the remaining term of the lease included in such arrangement
after excluding all amounts required to be paid on account of maintenance and
repairs, insurance, taxes and similar charges.

          "Authenticating Agent" means any Person authorized to authenticate and
deliver Securities on behalf of the Trustee for the Securities of any series
pursuant to Section 614.

         "Authorized Newspapers" means a newspaper customarily published at
least once a day for at least five days in each calendar week and of general
circulation in New York City and in London and, to the extent the Securities are
listed on the Luxembourg Stock Exchange and the Luxembourg Stock Exchange shall
so require, in Luxembourg or, if it shall be impracticable in the opinion of the
Trustee for the Securities of the appropriate series to make such publication,
in another capital city in Western Europe. Such publication (which may be in
different newspapers) is expected to be made in the Eastern edition of The Wall
Street Journal, in the London edition of the Financial Times and, if applicable,
in the Luxemburger Wort.

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

         "Board of Directors", when used with reference to the Company, means
either the board of directors or any duly authorized committee of that board or
any director or directors and/or officer or officers to whom that board or
committee shall have duly delegated its authority, of the Company.

         "Board Resolution", when used with reference to the Company, means (1)
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company, as the case may be, to have been duly adopted by its Board of
Directors and to be in full force and effect on the date of such certification,
or (2) a certificate signed by the director or directors or officer or officers
to whom the Board of Directors of the Company shall have duly delegated its
authority, and delivered to the Trustee for the Securities of any series.

         "Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are authorized or
required by law, regulation or executive order to close in The City of New York;
provided, however, that, with respect to Securities not denominated in Dollars,
the day is also not a day on which commercial banks are authorized or required
by law,

                                      -2-
<PAGE>
regulation or executive order to close in the Principal Financial Center of the
country issuing the Foreign Currency or currency unit or, if the Foreign
Currency or currency unit is euro, the day is also a day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET)
System is open; provided, further, that, with respect to LIBOR Securities, the
day is also a London Business Day.

         "Capital Lease Obligations" means indebtedness represented by
obligations under a lease that is required to be capitalized for financial
reporting purposes in accordance with generally accepted accounting principles.
The amount of indebtedness will be the capitalized amount of the obligations
determined in accordance with generally accepted accounting principles
consistently applied.

         "Capital Stock" of any Person means shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests
in (however designated) equity of such Person, including any preferred stock,
but excluding any debt securities convertible into such equity.

         "Certificate of a Firm of Independent Public Accountants" means a
certificate signed by any firm of independent public accountants of recognized
standing selected by the Company. The term "independent" when used with respect
to any specified firm of public accountants means such a firm which (1) is in
fact independent, (2) does not have any direct financial interest or any
material indirect financial interest in the Company or in any other obligor upon
the Securities of any series or in any Affiliate of the Company or of such other
obligor, and (3) is not connected with the Company or such other obligor or any
Affiliate of the Company or of such other obligor, as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions, but such firm may be the regular auditors employed by the Company.
Whenever it is herein provided that any Certificate of a Firm of Independent
Public Accountants shall be furnished to the Trustee for Securities of any
series, such Certificate shall state that the signer has read this definition
and that the signer is independent within the meaning hereof.

         "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

         "Clearstream" means Clearstream Banking S.A., or its successors.

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

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

         "Company Request" and "Company Order" mean a written request or order
signed in the name of the Company, as the case may be by (1) the Chairman of the
Board, a Vice Chairman of the Board, the Chief Executive Officer, the President
or a Vice President and by the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary of
the Company, as the case may be, or (2) by any two Persons designated in a
Company Order previously delivered to the Trustee for Securities of any series
by any two of the foregoing officers and delivered to the Trustee for Securities
of any series.

         "Component Currency" has the meaning specified in Section 311(e).

                                      -3-
<PAGE>
         "Consolidated Assets" of the Company and its Subsidiaries means the
consolidated total assets of the Company and its Subsidiaries as reflected in
the Company's most recent balance sheet preceding the date of determination
prepared in accordance with generally accepted accounting principles
consistently applied.

         "Conversion Event" means the unavailability of any Foreign Currency or
currency unit due to the imposition of exchange controls or other circumstances
beyond the Company's control.

         "Corporate Trust Office" means the office of the Trustee for Securities
of any series at which at any particular time its corporate trust business shall
be principally administered, which office of JPMorgan Chase Bank, at the date of
the execution of this Indenture, is located at 450 West 33rd Street, 15th Floor,
New York, NY, 10001, Attention: Institutional Trust Services.

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

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

         "Covenant Defeasance" has the meaning specified in Section 403.

         "Currency Determination Agent", with respect to Securities of any
series, means, unless otherwise specified in the Securities of any series, a New
York Clearing House bank designated pursuant to Section 301 or Section 312.

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

         "Depositary" means, with respect to the Securities of any series
issuable or issued in the form of a Global Security, the Person designated as
Depositary by the Company pursuant to Section 301 until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any such series shall
mean the Depositary with respect to the Securities of that series.

         "Determination Notice" has the meaning specified in Section 1108(b).

         "Dollars" and the sign "$" mean the currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.

         "Election Date" has the meaning specified in Section 311(e).

         "Euroclear" means Euroclear Bank S.A./N.V., or its successors, as
operator of the Euroclear system.

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

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
as in force at the date as of which this Indenture was executed; provided,
however, that in the event the Securities Exchange Act of 1934 is amended after
such date, "Exchange Act" means, to the extent required by any such amendment,
the Securities Exchange Act of 1934 as so amended.

         "Exchange Date" has the meaning specified in Section 304.

                                      -4-
<PAGE>
         "Foreign Currency" means a currency issued and actively maintained as a
country's recognized unit of domestic exchange by the government of any country
other than the United States and such term shall include the euro.

         "Global Exchange Agent" has the meaning specified in Section 304.

         "Global Securities" means Securities in global form.

         "Government Obligations" means securities which are (i) direct
obligations of the government which issued the currency in which the Securities
of a particular series are payable (except as provided in Sections 311(b) and
311(d), in which case with respect to Securities for which an election has
occurred pursuant to Section 311(b), or a Conversion Event has occurred as
provided in Section 311(d), such obligations shall be issued in the currency or
currency unit in which such Securities are payable as a result of such election
or Conversion Event) or (ii) obligations of a Person controlled or supervised by
or acting as an agency or instrumentality of the government which issued the
currency in which the Securities of such series are payable (except as provided
in Sections 311(b) and 311(d), in which case with respect to Securities for
which an election has occurred pursuant to Section 311(b), or a Conversion Event
has occurred as provided in Section 311(d)), such obligations shall be issued in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event), the payment of which is unconditionally
guaranteed by such government, which, in either case, are full faith and credit
obligations of such government payable in such currency and are not callable or
redeemable at the option of the issuer thereof.

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

         "Indebtedness" means, with respect to any Person, (without
duplication):

                  (1) any liability of such Person (A) for borrowed money, or
         under any reimbursement obligation relating to a letter of credit, or
         (B) evidenced by a bond, note, debenture or similar instrument
         (including a purchase money obligation arising in connection with the
         acquisition of any businesses, properties or assets of any kind) (other
         than a trade payable or a current liability arising in the ordinary
         course of business), or (C) for the payment of money relating to any
         Capital Lease Obligations;

                  (2) any liability of others described in the preceding clause
         (1) that the Person has guaranteed or that is otherwise its legal
         liability;

                  (3) any amendment, supplement, modification, deferral,
         renewal, extension or refunding of any liability of the types referred
         to in clause (1) or (2) above; and

                  (4) in the case of any Restricted Subsidiary, the aggregate
         preference in respect of amounts payable on the issued and outstanding
         shares of preferred stock of such Restricted Subsidiary in the event of
         any voluntary or involuntary liquidation, dissolution or winding up
         (excluding any such preference attributable to such shares of preferred
         stock that are owned by the Company or any Restricted Subsidiary).

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the

                                      -5-
<PAGE>
applicable provisions hereof and shall include the terms of a particular series
of Securities established as contemplated by Section 301.

         "Indexed Security" means any Security as to which the amount of
payments of principal, premium, if any, and/or interest, if any, due thereon is
determined with reference to the rate of exchange between the currency or
currency unit in which the Security is denominated and any other specified
currency or currency unit, to the relationship between two or more currencies or
currency units, to the price of one or more specified securities or commodities,
to one or more securities or commodities exchange indices or other indices or by
other similar methods or formulas, all as specified in accordance with Section
301.

         "interest", when used with respect to an OID Security which by its
terms bears interest only after Maturity, means interest payable after Maturity.

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

         "Issue Date" means the date on which the Securities of a particular
series are originally issued under this Indenture.

         "Judgment Date" has the meaning specified in Section 516.

         "Legal Defeasance" has the meaning specified in Section 402.

         "LIBOR" means, with respect to any series of Securities, the rate
specified as LIBOR for such Securities in accordance with Section 301.

         "LIBOR Currency" means the currency specified pursuant to Section 301
as to which LIBOR will be calculated or, if no currency is specified pursuant to
Section 301, Dollars.

         "LIBOR Security" means any Security which bears interest at a floating
rate calculated with reference to LIBOR.

         "Lien" means any mortgage, pledge, lien, security interest, charge or
other encumbrance or preferential arrangement (including any conditional sale or
other title retention agreement or lease in the nature thereof other than a
title retention agreement in connection with the purchase of goods in the
ordinary course of business which is outstanding for not more than 90 days).

         "London Business Day" means, with respect to any LIBOR Security, a day
on which commercial banks are open for business, including dealings in the LIBOR
Currency, in London.

         "Luxembourg Stock Exchange", unless specified with respect to any
particular series of Securities, means the Luxembourg Stock Exchange.

         "Market Exchange Rate" with respect to any Foreign Currency or currency
unit on any date means, unless otherwise specified in accordance with Section
301, the noon buying rate in The City of New York for cable transfers in such
Foreign Currency or currency unit as certified for customs purposes by the
Federal Reserve Bank of New York for such Foreign Currency or currency unit.

         "Maturity", when used with respect to any Security, means the date on
which the principal (or, if the context so requires, in the case of an OID
Security, a lesser amount or, in the case of an Indexed

                                      -6-
<PAGE>
Security, an amount determined in accordance with the specified terms of that
Security) of that Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity or by declaration of acceleration, call
for redemption, request for redemption, repayment at the option of the holder,
pursuant to any sinking fund or otherwise.

         "Notice of Default" has the meaning specified in Section 501(3).

         "Officers' Certificate", when used with reference to the Company, means
a certificate signed by the Chairman of the Board, a Vice Chairman of the Board,
the Chief Executive Officer, the President or a Vice President (any reference
herein to a Vice President of the Company, as the case may be, shall be deemed
to include any Vice President of the Company, as the case may be, whether or not
designated by a number or a word or words added before or after the title "Vice
President"), and by the Treasurer, an Assistant Treasurer, the Controller, an
Assistant Controller, the Secretary or an Assistant Secretary of the Company, as
the case may be, and delivered to the Trustee for the Securities of any series.

         "Opinion of Counsel" means, for purposes of Section 1108, a written
opinion of independent legal counsel of recognized standing and, for all other
purposes hereof, means a written opinion of counsel, who may be an employee of
or regular counsel for the Company or may be other counsel reasonably
satisfactory to the Trustee for the Securities of any series.

         "OID Security" means a Security which provides for an amount (excluding
any amounts attributable to accrued but unpaid interest thereon) less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502.

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

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

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

                  (3) Securities which have been paid pursuant to Section 306 or
         in exchange for or in lieu of which other Securities have been
         authenticated and delivered pursuant to this Indenture, other than any
         such Securities in respect of which there shall have been presented
         proof satisfactory to the Trustee for such Securities that any such
         Securities are held by bona fide holders in due course;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (a) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee for such Securities
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Securities which such

                                      -7-
<PAGE>
Trustee knows to be so owned shall be so disregarded. Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of such Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such
other obligor, (b) the principal amount of an OID Security that shall be deemed
to be Outstanding for such purposes shall be the amount of the principal thereof
that would be due and payable as of the date of such determination upon a
declaration of acceleration pursuant to Section 502 and (c) the principal amount
of a Security denominated in a Foreign Currency or currency unit that shall be
deemed to be outstanding for such purposes shall be determined in accordance
with Section 115.

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

         "Permitted Liens" means

                  (1) Liens imposed by law for taxes, fees, assessments or other
         governmental charges or levies that are not yet due;

                  (2) carriers', warehousemen's, mechanics', materialmen's,
         repairmen's, vendors' or lessors' Liens (and deposits to obtain the
         release of such Liens), set-off rights and other like Liens imposed by
         law (or contract, to the extent that such contractual Liens are similar
         in nature and scope to Liens imposed by law), in each case arising in
         the ordinary course of business and securing obligations that are not
         overdue by more than 60 days or are being contested in good faith;

                  (3) Liens incurred and pledges and deposits made in the
         ordinary course of business in connection with workers' compensation,
         disability or unemployment insurance, old-age pensions, retiree health
         benefits and other social security laws or regulations;

                  (4) deposits (including deposits made to satisfy statutory or
         other legal obligations in connection with sweepstakes or similar
         contests) to secure the performance of bids, trade contracts, leases,
         statutory obligations, surety and appeal bonds, performance bonds and
         other obligations of a like nature, in each case in the ordinary course
         of business;

                  (5) (A) easements, covenants, conditions, restrictions,
         leases, subleases, licenses, rights of way, minor irregularities in, or
         lack of, title and similar encumbrances affecting real property, (B)
         with respect to any lessee's or licensee's interest in real or personal
         property, mortgages, liens, rights and obligations and other
         encumbrances arising by, through or under any owner, lessor or licensor
         thereof, with or without the lessee's or licensee's consent, and (C)
         leases, licenses, rights and obligations in connection with patents,
         copyrights, trademarks, trade names and other intellectual property, in
         each case that do not secure the payment of borrowed money (other than,
         with respect to any lessee's or licensee's interest in real or personal
         property, mortgages, liens, rights and obligations and other
         encumbrances arising by, through or under any owner, lessor or licensor
         thereof) to the extent, in the case of each of (A), (B) and (C), that
         the Liens referred to therein do not, in the aggregate, materially
         detract from the value of the affected property as used by the Company
         or any Subsidiary in the ordinary course of business or materially
         interfere with the ordinary conduct of the business of the Company and
         its Subsidiaries taken as a whole; and

                  (6) Liens in favor of customs and revenue authorities to
         secure payment of customs duties in connection with the importation of
         goods.

                                      -8-
<PAGE>
         "Person" means any individual, firm, corporation, partnership,
association, joint venture, tribunal, limited liability company, trust,
government or political subdivision or agency or instrumentality thereof, or any
other entity or organization.

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

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

         "Principal Financial Center" means, unless otherwise specified in
accordance with Section 301:

                  (1) the capital city of the country issuing the Foreign
         Currency or currency unit, except that with respect to Dollars,
         Australian dollars, Canadian dollars, Deutsche marks, Dutch guilders,
         South African rand and Swiss francs, the "Principal Financial Center"
         will be The City of New York, Sydney and Melbourne, Toronto, Frankfurt,
         Amsterdam, Johannesburg and Zurich, respectively; or

                  (2) the capital city of the country to which the LIBOR
         Currency relates, except that with respect to Dollars, Canadian
         dollars, Deutsche marks, Dutch guilders, Portuguese escudos, South
         African rand and Swiss francs, the "Principal Financial Center" will be
         The City of New York, Toronto, Frankfurt, Amsterdam, London,
         Johannesburg and Zurich, respectively.

         "Property" means any asset, revenue or any other property, whether
tangible or intangible, real or personal, including, without limitation, any
right to receive income.

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

         "Redemption Price", when used with respect to any Security to be
redeemed, means, unless otherwise specified in such Security, an amount, in the
currency or currency unit in which such Security is denominated or which is
otherwise provided for pursuant hereto, equal to the principal amount thereof
(and premium, if any, thereon) together with accrued interest, if any, to the
Redemption Date.

         "Registered Security" means any Security established pursuant to
Section 201 which is registered in the Security Register.

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

         "Responsible Officer", when used with respect to the Trustee for any
series of Securities, means any trust officer

                                      -9-
<PAGE>
of such Trustee with direct responsibility for the administration of this
Indenture 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.

         "Restricted Subsidiary" means any Subsidiary of the Company if at the
end of the most recent fiscal quarter, the total assets of such Subsidiary
exceeds 5% of consolidated total assets of the Company and its Subsidiaries,
determined in accordance with generally accepted accounting principles
consistently applied.

         "Sale and Leaseback Transaction" means any transaction or series of
related transactions pursuant to which the Company or any Restricted Subsidiary
sells or transfers any Property to any Person with the intention of taking back
a lease of such Property.

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

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

         A "series" of Securities means all Securities denoted as part of the
same series authorized by or pursuant to a particular Board Resolution.

         "Significant Subsidiary" has the meaning specified, as of the date
hereof, in Rule 1-02 of Regulation S-X promulgated under the Securities Act of
1933, as amended.

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

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

         "Subsidiary" means any company or other business entity which the
Company owns or controls (either directly or through one or more other
subsidiaries) more than 50% of the total voting power of the shares of capital
stock or other interests (including partnership interests) entitled (without
regard to the occurrence of any contingency) to vote in the election of
directors, managers or trustees of such company or other business entity.

         "Substitute Date" has the meaning specified in Section 516.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
by the Trust Indenture Reform Act of 1990, as in force at the date as of which
this Indenture was executed, except as provided in Section 905; provided,
however, that in the event the Trust Indenture Act of 1939 is amended after such
date, "Trust Indenture Act" means, to the extent required by any such amendment,
the Trust Indenture Act of 1939 as so amended.

         "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument and, subject to the provisions of Article Six
hereof, shall also include its successors and assigns as Trustee

                                      -10-
<PAGE>
hereunder. If there shall be at one time more than one Trustee hereunder,
"Trustee" shall mean each such Trustee and shall apply to each such Trustee only
with respect to those series of Securities with respect to which it is serving
as Trustee.

         "United States" means, unless otherwise specified with respect to
Securities of any series, the United States of America (including the states and
the District of Columbia), its territories, its possessions (which include, at
the date of this Indenture, Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands) and other areas subject to
its jurisdiction.

         "United States Alien" has the meaning specified in Section 1010.

         "U.S. GAAP" means generally accepted accounting principles which are in
effect in the United States as of the date hereof.

         "Yield to Maturity", when used with respect to any OID Security, means
the yield to maturity, if any, set forth on the face thereof.

Section 102. Compliance Certificates and Opinions.

         Except as otherwise expressly provided by this Indenture, upon any
application or request by the Company to the Trustee for any series of
Securities to take any action under any provision of this Indenture, the Company
shall furnish to such Trustee an Officers' Certificate stating that all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with, and an Opinion of Counsel stating that
in the opinion of such counsel such action is authorized or permitted by this
indenture and that all such conditions precedent, if any, have been complied
with, except that in the case of any such application or request as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or request, no additional
certificate or opinion need be furnished.

         Every certificate (other than certificates provided pursuant to Section
1005) or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

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

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

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

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

                  (5) a statement that no Event of Default exists under this
         Indenture.

Section 103. Form of Documents Delivered to Trustee.

         In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person

                                      -11-
<PAGE>
may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give
an opinion as to such matters in one or several documents.

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

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

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

Section 104. Acts of Holders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided or permitted by this Indenture to be given, made
or taken by Holders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given by Holders of such
series may, alternatively, be embodied in and evidenced by the record of Holders
of Securities of such series voting in favor thereof, either in person or by
proxies duly appointed in writing, at any meeting of Holders of Securities of
such series duly called and held in accordance with the provisions of Article
Thirteen, or a combination of such instruments and any such record. Except as
herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
for the appropriate series of Securities and, where it is hereby expressly
required, to the Company. Such instrument or instruments and any such record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Holders signing such instrument or instruments
or so voting at any such meeting. Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 601) conclusive in favor of the Trustee for the appropriate series of
Securities and the Company and any agent of such Trustee or the Company, if made
in the manner provided in this Section. The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 1306.

         The Company may at its discretion set a record date for purposes of
determining the identity of Holders of Registered Securities entitled to vote or
consent to any action by vote or consent authorized or permitted under this
Indenture, but the Company shall have no obligation to do so. If not set by the
Company prior to the first solicitation of Holders of Registered Securities of a
particular series made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action
or vote shall be 30 days prior to the first solicitation of such vote or
consent. Upon the fixing of such a record date, those persons who were Holders
of Registered Securities at such record date (or their duly designated proxies),
and only those persons, shall be entitled with respect to such Registered
Securities to take such action by vote or consent or to revoke any vote or
consent previously given, whether or not such persons continue to be Holders
after such record date.

                                      -12-
<PAGE>
         (b) The fact and date of the execution by any Person of any such
instrument or writing or proxy may be proved by the affidavit of a witness of
such execution or by the certificate of any notary public or other officer
authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing or proxy acknowledged to him or
her the execution thereof. Where such execution is by an officer of a
corporation or association or a member of a partnership, or an official of a
public or governmental body, on behalf of such corporation, association,
partnership or public or governmental body or by a fiduciary, such certificate
or affidavit shall also constitute sufficient proof of his authority.

         (c) The fact and date of the execution by any Person of any such
instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee for the appropriate series
of Securities deems sufficient.

         (d) The principal amount and serial numbers of Registered Securities
held by any Person, and the date of holding the same, shall be proved by the
Security Register.

         (e) The principal amount and serial numbers of Bearer Securities held
by any Person, and the date of holding the same, may be proved by the production
of such Bearer Securities or by a certificate executed, as depositary, by any
trust company, bank, banker or other depositary, wherever situated, if such
certificate shall be deemed by the Trustee for such Securities to be
satisfactory, showing that at the date therein mentioned such Person had on
deposit with such depositary, or exhibited to it, the Bearer Securities therein
described; or such facts may be proved by the certificate or affidavit of the
Person holding such Bearer Securities, if such certificate or affidavit is
deemed by such Trustee to be satisfactory. The Trustee for such Securities and
the Company may assume that such ownership of any Bearer Security continues
until (1) another certificate or affidavit bearing a later date issued in
respect of the same Bearer Security is produced, (2) such Bearer Security is
produced to such Trustee by some other Person, (3) such Bearer Security is
surrendered in exchange for a Registered Security, or (4) such Bearer Security
is no longer Outstanding. The principal amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may also be
proved in any other manner which the Company and the Trustee for such Securities
deem sufficient.

         (f) Subject to Section 115, in determining whether the Holders of the
requisite principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver under this
Indenture, the principal amount of an OID Security that may be counted in making
such determination and that shall be deemed to be Outstanding for such purposes
shall be equal to the amount of the principal thereof that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502 at the time the taking of such action by the Holders of such
requisite principal amount is evidenced to the Trustee for such Securities.

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

Section 105. Notices, Etc., to Trustee and the Company.

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

                                      -13-
<PAGE>
                  (1) the Trustee for a series of Securities by any Holder or by
         the Company shall be sufficient for every purpose hereunder if made,
         given, furnished or filed in writing to or with such Trustee at its
         Corporate Trust Office, Attention: Institutional Trust Services, or if
         sent by facsimile transmission, to a facsimile number provided by the
         Trustee, with a copy mailed, first class postage prepaid to the Trustee
         addressed to it as provided above, or

                  (2) the Company by such Trustee or by any Holder shall be
         sufficient for every purpose hereunder (except as provided in
         paragraphs (3), (4) and (5) of Section 501) if furnished in writing and
         mailed, first class postage prepaid, addressed in the case of the
         Company to it at the address of its principal office specified in the
         first paragraph of this instrument or at any other address previously
         furnished in writing to such Trustee by the Company, or if sent by
         facsimile transmission, to a facsimile number provided to the Trustee
         by the Company, with a copy mailed, first class postage prepaid, to the
         Company addressed to it as provided above.

Section 106. Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of any event, (1)
such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Registered Securities if in writing and mailed, first
class postage prepaid, to each Holder affected by such event, at his address as
it appears in the Security Register, not later than the latest date, and not
earlier than the earliest date, prescribed for the giving of such notice; and
(2) such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Bearer Securities who have filed their names and
addresses with the Trustee for such purpose within the previous two years if in
writing and mailed, first class postage prepaid, to each such Holder at his
address as so filed not later than the latest date and not earlier than the
earliest date prescribed for the giving of such notice, or to all other Holders
of Bearer Securities if published in an Authorized Newspaper on a Business Day
at least twice, the first such publication to be not earlier than the earliest
date, and the second such publication to be not later than the latest date,
prescribed herein for the giving of such notice.

         In any case where notice to Holders of Registered Securities is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice mailed in the manner prescribed by this
Indenture shall be deemed to have been given whether or not received by any
particular Holder. In case by reason of the suspension of regular mail service
or by reason of any other cause it shall be impracticable to give such notice to
Holders of Registered Securities by mail, then such notification as shall be
made with the approval (not to be unreasonably withheld) of the Trustee for such
Securities shall constitute a sufficient notification for every purpose
hereunder.

         In case by reason of the suspension of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be made with the
approval (not to be unreasonably withheld) of the Trustee for such Securities
shall constitute sufficient notice to such Holders for every purpose hereunder.
Neither the failure to give notice by publication to Holders of Bearer
Securities as provided above, nor any defect in any notice so published, shall
affect the sufficiency of any notice to Holders of Registered Securities given
as provided herein.

         Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee for such
Securities,

                                      -14-
<PAGE>
but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

Section 107. Conflict with Trust Indenture Act.

         If any provision hereof limits, qualifies or conflicts with any
provision of the Trust Indenture Act or with another provision hereof which is
required or deemed to be included in this Indenture by any of the provisions of
the Trust Indenture Act, such required provision or the requirement of the Trust
Indenture Act shall control.

Section 108. Effect of Headings and Table of Contents.

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

Section 109. Successors and Assigns.

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

Section 110. Separability Clause.

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

Section 111. Benefits of Indenture.

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

Section 112. Governing Law.

         This Indenture and the Securities shall be governed by and construed in
accordance with the laws of the State of New York without regard to principles
of conflicts of law.

Section 113. Non-Business Day.

         Unless otherwise stated with respect to Securities of any series, in
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
a Security of any particular series shall not be a Business Day at any Place of
Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Indenture or of the Securities or coupons) payment of
principal of (and premium, if any) and interest, if any, with respect to such
Security need not be made at such Place of Payment on such date, but may be made
on the next succeeding Business Day at such Place of Payment with the same force
and effect as if made on the Interest Payment Date or Redemption Date, or at the
Stated Maturity, provided that no interest shall accrue for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be.

                                      -15-
<PAGE>
Section 114. Immunity of Incorporators, Stockholders, Officers and Directors.

         No recourse shall be had for the payment of the principal of (and
premium, if any), or the interest, if any, on any Security or coupon of any
series, or for any claim based thereon, or upon any obligation, covenant or
agreement of this Indenture, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or indirectly through the Company or any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment of penalty or otherwise; it being expressly
agreed and understood that this Indenture and all the Securities and coupons of
each series are solely corporate obligations, and that no personal liability
whatever shall attach to, or is incurred by, any incorporator, stockholder,
officer or director, past, present or future, of the Company or of any successor
corporation, either directly or indirectly through the Company or any successor
corporation, because of the incurring of the indebtedness hereby authorized or
under or by reason of any of the obligations, covenants or agreements contained
in this Indenture or in any of the Securities or coupons of any series, or to be
implied herefrom or therefrom; and that all such personal liability is hereby
expressly released and waived as a condition of, and as part of the
consideration for, the execution of this Indenture and the issuance of the
Securities and coupons of each series.

Section 115. Certain Matters Relating to Currencies.

         Subject to Section 311, each reference to any currency or currency unit
in any Security, or in the Board Resolution or supplemental indenture relating
thereto, shall mean only the referenced currency or currency unit and no other
currency or currency unit.

         The Trustee shall segregate moneys, funds and accounts held by the
Trustee in one currency or currency unit from any moneys, funds or accounts held
in any other currencies or currency units, notwithstanding any provision herein
which would otherwise permit the Trustee to commingle such amounts.

         Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in a Foreign Currency or currency unit, then for purposes
of determining the principal amount of Securities held by such Holders, the
aggregate principal amount of the Securities denominated in a Foreign Currency
or currency unit shall be deemed to be that amount of Dollars that could be
obtained for such principal amount on the basis of a spot rate of exchange
specified to the Trustee for such series in an Officers' Certificate for such
Foreign Currency or currency unit into Dollars as of the date the taking of such
action or Act by the Holders of the requisite percentage in principal amount of
the Securities is evidenced to such Trustee.

Section 116. Language of Notices, Etc.

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

                                      -16-
<PAGE>
                                   ARTICLE 2

                                 SECURITY FORMS

Section 201. Forms of Securities.

         The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in such form or
forms (including global form) as shall be established by or pursuant to a Board
Resolution of the Company, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture or any indenture supplemental hereto and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with any law, with any rule or regulation
made pursuant thereto, with any rules of any securities exchange or Depositary
therefor, automated quotation system or clearing agency or to conform to usage,
as may, consistently herewith, be determined by the officers executing such
Securities or coupons, as evidenced by their execution of such Securities or
coupons. If temporary Securities of any series are issued in global form as
permitted by Section 304, the form thereof shall be established as provided in
the preceding sentence.

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

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

         Any form of Security approved by or pursuant to a Board Resolution must
be reasonably acceptable as to form to the Trustee, such acceptance to be
evidenced by the Trustee's authentication of Securities in that form or a
certificate signed by a Responsible Officer of the Trustee and delivered to the
Company.

Section 202. Form of Trustee's Certificate of Authentication.

         The Certificate of Authentication on all Securities shall be in
substantially the following form:

                  "This is one of the Securities of the series designated
         therein described in the within-mentioned Indenture.

                                      JPMORGAN CHASE BANK,
                                      as Trustee

                                      By
                                        ---------------------------------------
                                          Authorized Officer"

Section 203. Securities in Global Form.

         If any Security of a series is issuable in global form, such Security
may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be reduced to reflect exchanges. Any endorsement of a Security in global
form to reflect the amount, or any increase or decrease in the amount, of
Outstanding Securities represented thereby shall be made by the Trustee and in
such manner as shall be specified in such Security. Any instructions by the
Company with respect to a Security in global form, after its initial issuance,
shall be in writing but need not comply with Section 102.

                                      -17-
<PAGE>
         Global Securities may be issued in either registered or bearer form and
in either temporary or permanent form.

                                   ARTICLE 3

                                 THE SECURITIES

Section 301. Title; Payment and Terms.

         The aggregate principal amount of Securities which may be authenticated
and delivered and Outstanding under this Indenture is unlimited. The Securities
may be issued up to the aggregate principal amount of Securities from time to
time authorized by or pursuant to Board Resolutions of the Company.

         The Securities may be issued in one or more series, each of which shall
be issued pursuant to Board Resolutions of the Company. There shall be
established in one or more Board Resolutions or pursuant to one or more Board
Resolutions of the Company and, subject to Section 303, set forth in, or
determined in the manner provided in, an Officer's Certificate of the Company,
or established in one or more supplemental indentures hereto, prior to the
issuance of Securities of any series all or any of the following, as applicable
(each of which, if so provided, may be determined from time to time by the
Company with respect to unissued Securities of that series and set forth in the
Securities of that series when issued from time to time):

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

                  (2) any limit upon the aggregate principal amount of the
         Securities of that series which may be authenticated and delivered
         under this Indenture (except for Securities authenticated and delivered
         upon registration of transfer of, or in exchange for, or in lieu of,
         other Securities of that series pursuant to Section 304, 305, 306, 906
         or 1107);

                  (3) whether Securities of that series are to be issuable as
         Registered Securities, Bearer Securities or both and any restrictions
         on the exchange of one form of Securities for another and on the offer,
         sale and delivery of the Securities in either form;

                  (4) the date or dates (or manner of determining the same) on
         which the principal of the Securities of that series is payable (which,
         if so provided in such Board Resolutions, may be determined by the
         Company from time to time and set forth in the Securities of the series
         issued from time to time);

                  (5) the rate or rates (or the manner of calculation thereof)
         at which the Securities of that series shall bear interest (if any),
         the date or dates from which such interest shall accrue, the Interest
         Payment Dates on which such interest shall be payable (or manner of
         determining the same) and the Regular Record Date for the interest
         payable on any Registered Securities on any Interest Payment Date and
         the extent to which, or the manner in which, any interest payable on a
         temporary Global Security on an Interest Payment Date will be paid if
         other than in the manner provided in Section 307;

                  (6) the place or places where, subject to the provisions of
         Section 1002, the principal of (and premium, if any) and interest, if
         any, on Securities of that series shall be payable, any

                                      -18-
<PAGE>
         Registered Securities of that series may be surrendered for
         registration of transfer, any Securities of that series may be
         surrendered for exchange, and notices and demands to or upon the
         Company in respect of the Securities of that series and this Indenture
         may be served;

                  (7) the period or periods within which (or manner of
         determining the same), the price or prices at which (or manner of
         determining the same), the currency or currency unit in which, and the
         terms and conditions upon which Securities of that series may be
         redeemed, in whole or in part, at the option of the Company, and any
         remarketing arrangements with respect to the Securities of that series;

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

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

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

                  (11) any Events of Default and covenants of the Company with
         respect to the Securities of that series, whether or not such Events of
         Default or covenants are consistent with the Events of Default or
         covenants set forth herein;

                  (12) if a Person other than JPMorgan Chase Bank is to act as
         Trustee for the Securities of that series, the name and location of the
         Corporate Trust Office of such Trustee;

                  (13) if other than Dollars, the currency or currency unit in
         which payment of the principal of (and premium, if any) or interest, if
         any, on the Securities of that series shall be made or in which the
         Securities of that series shall be denominated and the particular
         provisions applicable thereto in accordance with, in addition to or in
         lieu of the provisions of Section 311;

                  (14) if the principal of (and premium, if any) and interest,
         if any, on the Securities of that series are to be payable, at the
         election of the Company or a Holder thereof, in a currency or currency
         unit other than that in which such Securities are denominated or stated
         to be payable, in accordance with provisions in addition to or in lieu
         of, or in accordance with the provisions of, Section 311, the period or
         periods within which (including the Election Date), and the terms and
         conditions upon which, such election may be made, and the time and
         manner of determining the exchange rate between the currency or
         currency unit in which such Securities are denominated or stated to be
         payable and the currency or currency unit in which such Securities are
         to be so payable;

                  (15) if the principal of (and premium, if any) or interest, if
         any, or the securities of that series are to be payable, at the
         election of the Company or a Holder thereof, in securities or other
         property, the type and amount of such securities or other property, or
         the formulary or other

                                      -19-
<PAGE>
         method or other means by which such amount shall be determined, and the
         terms and conditions upon which, such election may be made;

                  (16) the designation of the original Currency Determination
         Agent, if any;

                  (17) if the Securities of such series are issuable as Indexed
         Securities, the manner in which the amount of payments of principal,
         premium, if any, and interest, if any, on that series shall be
         determined;

                  (18) if the Securities of that series do not bear interest,
         the applicable dates for purposes of Section 701;

                  (19) if other than as set forth in Article Four, provisions
         for the satisfaction and discharge of this Indenture with respect to
         the Securities of that series;

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

                  (21) the application, if any, of Section 1010 to the
         Securities of that series;

                  (22) whether the Securities of the series shall be issued in
         whole or in part in the form of a Global Security or Securities and, in
         such case, the Depositary and Global Exchange Agent, if any, for such
         Global Security or Securities, whether such global form shall be
         permanent or temporary and, if applicable, the Exchange Date;

                  (23) if Securities of the series are to be issuable initially
         in the form of a temporary Global Security, the circumstances under
         which the temporary Global Security can be exchanged for definitive
         Securities and whether the definitive Securities will be Registered
         Securities and/or Bearer Securities and will be in global form and
         whether interest in respect of any portion of such Global Security
         payable in respect of an Interest Payment Date prior to the Exchange
         Date shall be paid to any clearing organization with respect to a
         portion of such Global Security held for its account and, in such
         event, the terms and conditions (including any certification
         requirements) upon which any such interest payment received by a
         clearing organization will be credited to the Persons entitled to
         interest payable on such Interest Payment Date if other than as
         provided in this Article Three;

                  (24) to the extent not established pursuant to subsection (23)
         of this paragraph, any limitations on the rights of the Holders of the
         Securities of such series to transfer or exchange such Securities or to
         obtain the registration or transfer thereof, and if a service charge
         will be made for the registration of transfer or exchange of securities
         of such series, the amount or terms thereof;

                  (25) the extent and manner, if any, to which payment on or in
         respect of Securities of that series will be subordinated to the prior
         payment of other liabilities and obligations of the Company;

                  (26) the forms of the Securities of that series; and

                  (27) any other terms of that series (which terms shall not be
         inconsistent with the provisions of this Indenture).

                                      -20-
<PAGE>
         All Securities of any particular series and the coupons appertaining to
any Bearer Securities of such series shall be substantially identical except as
to denomination, rate of interest, Stated Maturity and the date from which
interest, if any, shall accrue, and except as may otherwise be provided in or
pursuant to such Board Resolutions and set forth in such Officer's Certificate
relating thereto or provided in or pursuant to any supplemental indenture
hereto. The terms of such Securities, as set forth above, may be determined by
the Company from time to time if so provided in or established pursuant to the
authority granted in Board Resolutions. All Securities of any one series need
not be issued at the same time, and unless otherwise provided, a series may be
reopened, without the consent of the Holders, for increases in aggregate
principal amount of such series of Securities and issuances of additional
Securities of such series or for the establishment of additional terms with
respect to the Securities of such series. No additional Securities may be issued
if an Event of Default under the Indenture has occurred and is continuing with
respect to the Securities.

         Prior to the delivery of a Security of any series in any such form to
the Trustee for the Securities of such series for authentication, the Company
shall deliver to such Trustee the following:

                  (1) The Board Resolutions of the Company by or pursuant to
         which such form of Security has been approved and, if applicable, the
         supplemental indenture by or pursuant to which such form of Security
         has been approved;

                  (2) An Officers' Certificate of the Company dated the date
         such Certificate is delivered to such Trustee stating that all
         conditions precedent provided for in this Indenture relating to the
         authentication and delivery of Securities in such forms have been
         complied with; and

                  (3) An Opinion of Counsel stating that Securities in such
         form, together with any coupons appertaining thereto, when (a)
         completed by appropriate insertions and executed and delivered by the
         Company to such Trustee for authentication in accordance with this
         Indenture, (b) authenticated and delivered by such Trustee in
         accordance with this Indenture within the authorization as to aggregate
         principal amount established from time to time by the Board of
         Directors of the Company, and (c) sold in the manner specified in such
         Opinion of Counsel, will be the legal, valid and binding obligations of
         the Company, subject to the effects of applicable bankruptcy,
         reorganization, fraudulent conveyance, moratorium, insolvency and other
         similar laws generally affecting creditors' rights, to general
         equitable principles, to an implied covenant of good faith and fair
         dealing and to such other qualifications as such counsel shall conclude
         do not materially affect the rights of Holders of such Securities.

Section 302. Denominations and Currencies.

         Unless otherwise provided with respect to any series of Securities as
contemplated by Section 301, any Registered Securities of a series shall be
issuable in denominations of $1,000 and any integral multiple thereof, and any
Bearer Securities of a series shall be issuable in the denomination of $5,000,
or the equivalent amounts thereof in the case of Registered Securities and
Bearer Securities denominated in a Foreign Currency or currency unit.

                                      -21-
<PAGE>
Section 303. Execution, Authentication, Delivery and Dating.

         The Securities and any related coupons shall be executed on behalf of
the Company by its Chairman of the Board, a Vice Chairman of the Board, or its
President, Chief Executive Officer or one of its Vice Presidents. The Securities
shall be so executed under the corporate seal of the Company reproduced thereon
and attested to by its Secretary or any one of its Assistant Secretaries. The
signature of any of these officers on the Securities may be manual or facsimile.

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

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series together with
any coupons appertaining thereto, executed by the Company to the Trustee for the
Securities of such series for authentication, together with a Company Order for
the authentication and delivery of such Securities, and such Trustee, in
accordance with the Company Order, shall authenticate and deliver such
Securities; provided, however, that, during the "restricted period" (as defined
in Section 1.163-5(c)(2)(i)(D)(7) of the United States Treasury Regulations), no
Bearer Security shall be mailed or otherwise delivered to any location in the
United States; and provided, further, that a Bearer Security may be delivered
outside the United States in connection with its original issuance only if the
Person entitled to receive such Bearer Security shall have furnished to the
Trustee for the Securities of such series a certificate substantially in the
form set forth in Exhibit A to this Indenture. If any Security shall be
represented by a permanent Global Security, then, for purposes of this Section
and Section 304, the notation of a beneficial owner's interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
Global Security shall be deemed to be delivery in connection with the original
issuance of such beneficial owner's interest in such permanent Global Security.
Except as permitted by Section 306 or 307, the Trustee for the Securities of a
series shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured other than matured coupons in
default have been detached and cancelled. If all the Securities of any one
series are not to be issued at one time and if a Board Resolution relating to
such Securities shall so permit, such Company Order may set forth procedures
acceptable to the Trustee for the issuance of such Securities, including,
without limitation, procedures with respect to interest rate, Stated Maturity,
date of issuance and date from which interest, if any, shall accrue.

         Notwithstanding any contrary provision herein, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary to
deliver the Board Resolution, Officers' Certificate and Opinion of Counsel
otherwise required pursuant to Sections 102 and 301 at or prior to the time of
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.

         Each Registered Security shall be dated the date of its authentication,
and, unless otherwise specified as contemplated by Section 301, each Bearer
Security shall be dated as of the date of original issuance of the first
Security of such series to be issued.

         No Security or coupon appertaining thereto shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein manually executed by the Trustee for such Security
or on its behalf pursuant to Section 614, and such certificate upon any Security
shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder.

                                      -22-
<PAGE>
         In case any Securities shall have been authenticated, but not
delivered, by the Trustee or the Authenticating Agent for such series then in
office, any successor by merger, conversion or consolidation to such Trustee, or
any successor Authenticating Agent, as the case may be, may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee or successor Authenticating Agent had itself
authenticated such Securities.

         Each Depositary designated pursuant to Section 301 for a Global
Security in registered form must, at the time of its designation and at all
times while it serves as Depositary, be a clearing agency registered under the
Exchange Act and any other applicable statute or regulation.

Section 304. Temporary Securities and Exchange of Securities.

         Pending the preparation of definitive Securities of any particular
series, the Company may execute, and upon Company Order the Trustee for the
Securities of such series shall authenticate and deliver, in the manner
specified in Section 303, temporary Securities which are printed, lithographed,
typewritten, photocopied or otherwise produced, in any denomination, with like
terms and conditions as the definitive Securities of like series in lieu of
which they are issued in registered form or, if authorized, in bearer form with
one or more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Securities may determine, as evidenced by their execution of such Securities.
Any such temporary Securities may be in global form, representing such of the
Outstanding Securities of such series as shall be specified therein.

         Except in the case of temporary Securities in global form (which shall
be exchanged only in accordance with the provisions of the following
paragraphs), if temporary Securities of any particular series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of such definitive Securities, the
temporary Securities of such series shall be exchangeable for such definitive
Securities and of a like Stated Maturity and with like terms and provisions upon
surrender of the temporary Securities of such series, together with all
unmatured and matured coupons in default, if any, at the office or agency of the
Company in a Place of Payment for that series, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Securities of any
particular series, the Company shall execute and (in accordance with a Company
Order delivered at or prior to the authentication of the first definitive
Security of such series) the Trustee for the Securities of such series or the
Global Exchange Agent shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations of the
same series and of a like Stated Maturity and with like terms and provisions;
provided, however, unless otherwise specified pursuant to Section 301, no
definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided, further, that a definitive Bearer Security
shall be delivered in exchange for a temporary Bearer Security only in
compliance with the conditions set forth in Section 303. Until exchanged as
hereinabove provided, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and with like terms and conditions, except as to
payment of interest, if any, authenticated and delivered hereunder.

         Any temporary Global Security and any permanent Global Security shall,
unless otherwise provided therein, be delivered to a Depositary designated
pursuant to Section 301.

         Without unnecessary delay but in any event not later than the date
specified in or determined pursuant to the terms of any such temporary Global
Security (the "Exchange Date"), the Securities represented by any temporary
Global Security of a series of Securities issuable in bearer form may be
exchanged for definitive Securities (subject to the second succeeding paragraph)
or Securities to be represented thereafter by one or more permanent Global
Securities, without interest coupons. On or after

                                      -23-
<PAGE>
the Exchange Date such temporary Global Security shall be surrendered by the
Depositary to the Trustee for such Security, as the Company's agent for such
purpose, or the agent appointed by the Company pursuant to Section 301 to effect
the exchange of the temporary Global Security for definitive Securities (the
"Global Exchange Agent"), and following such surrender, such Trustee or the
Global Exchange Agent (as authorized by the Trustee as an Authenticating Agent
pursuant to Section 614) shall (1) endorse the temporary Global Security to
reflect the reduction of its principal amount by an equal aggregate principal
amount of such Security, (2) endorse the applicable permanent Global Security,
if any, to reflect the initial amount, or an increase in the amount of
Securities represented thereby, (3) manually authenticate such definitive
Securities or such permanent Global Security, as the case may be, (4) subject to
Section 303, deliver such definitive Securities to the Holder thereof or, as the
case may be, deliver such permanent Global Security to the Depositary to be held
outside the United States for the accounts of Euroclear and Clearstream, for
credit to the respective accounts at Euroclear and Clearstream, designated by or
on behalf of the beneficial owners of such Securities (or to such other accounts
as they may direct) and (5) redeliver such temporary Global Security to the
Depositary, unless such temporary Global Security shall have been cancelled in
accordance with Section 309 hereof; provided, however, that, unless otherwise
specified in such temporary Global Security, upon such presentation by the
Depositary, such temporary Global Security shall be accompanied by a certificate
dated the Exchange Date or a subsequent date and signed by Euroclear as to the
portion of such temporary Global Security held for its account then to be
exchanged for definitive Securities or one or more permanent Global Securities,
as the case may be, and a certificate dated the Exchange Date or a subsequent
date and signed by Clearstream, as to the portion of such temporary Global
Security held for its account then to be exchanged for definitive Securities or
one or more permanent Global Securities, as the case may be, each substantially
in the form set forth in Exhibit B to this Indenture. Each certificate
substantially in the form of Exhibit B hereto of Euroclear or Clearstream, as
the case may be, shall be based on certificates of the account holders listed in
the records of Euroclear or Clearstream, as the case may be, as being entitled
to all or any portion of the applicable temporary Global Security. An account
holder of Euroclear or Clearstream, as the case may be, desiring to effect the
exchange of interest in a temporary Global Security for an interest in
definitive Securities or one or more permanent Global Securities shall instruct
Euroclear or Clearstream, as the case may be, to request such exchange on its
behalf and shall deliver to Euroclear or Clearstream, as the case may be, a
certificate substantially in the form of Exhibit A hereto and dated no earlier
than 15 days prior to the Exchange Date. Until so exchanged, temporary Global
Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Securities and permanent Global Securities of the same
series authenticated and delivered hereunder, except as provided in the fourth
succeeding paragraph.

         The delivery to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent by Euroclear or Clearstream of any
certificate substantially in the form of Exhibit B hereto may be relied upon by
the Company and such Trustee or the Global Exchange Agent as conclusive evidence
that a corresponding certificate or certificates has or have been delivered to
Euroclear or to Clearstream, as the case may be, pursuant to the terms of this
Indenture.

         On or prior to the Exchange Date, the Company shall deliver to the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent definitive Securities in aggregate principal amount equal to the principal
amount of such temporary Global Security, executed by the Company in the case of
the Securities. At any time, on or after the Exchange Date, upon 30 days' notice
to the Trustee for the Securities of the appropriate series or the Global
Exchange Agent by Euroclear or Clearstream, as the case may be, acting at the
request of or on behalf of the beneficial owner, a Security represented by a
temporary Global Security or a permanent Global Security, as the case may be,
may be exchanged, in whole or from time to time in part, for definitive
Securities without charge and such Trustee or the Global Exchange Agent shall
authenticate and deliver, in exchange for each portion of such temporary Global
Security or such permanent Global Security, an equal aggregate principal amount
of definitive Securities of the same series of authorized denominations and with
like terms and provisions as the portion of such

                                      -24-
<PAGE>
temporary Global Security or such permanent Global Security to be exchanged,
which, unless the Securities of the series are not issuable both as Bearer
Securities and as Registered Securities, as contemplated by Section 301, shall
be in the form of Bearer Securities or Registered Securities, or any combination
thereof, as shall be specified by the beneficial owner thereof; provided,
however, that definitive Bearer Securities shall be delivered in exchange for a
portion of the temporary Global Security or the permanent Global Security only
in compliance with the requirements of the second preceding paragraph. On or
prior to the thirtieth day following receipt by the Trustee for the Securities
of the appropriate series or the Global Exchange Agent of such notice with
respect to a Security, or, if such day is not a Business Day, the next
succeeding Business Day, the temporary Global Security or the permanent Global
Security, as the case may be, shall be surrendered by the Depositary to such
Trustee, as the Company's agent for such purpose, or the Global Exchange Agent
to be exchanged in whole, or from time to time in part, for definitive
Securities without charge following such surrender, upon the request of
Euroclear or Clearstream, as the case may be, and such Trustee or the Global
Exchange Agent shall (1) endorse the applicable temporary Global Security or the
permanent Global Security to reflect the reduction of its principal amount by
the aggregate principal amount of such Security, (2) in accordance with
procedures acceptable to the Trustee cause the terms of such Security and
coupons, if any, to be entered on a definitive Security, (3) manually
authenticate such definitive Security and (4) if a Bearer Security is to be
delivered, deliver such definitive Security outside the United States to
Euroclear or Clearstream, as the case may be, for or on behalf of the beneficial
owner thereof, in exchange for a portion of such permanent Global Security.

         Unless otherwise specified in such temporary Global Security or
permanent Global Security, any such exchange shall be made free of charge to the
beneficial owners of such temporary Global Security or permanent Global
Security, except that a Person receiving definitive Securities must bear the
cost of insurance, postage, transportation and the like in the event that such
Person does not take delivery of such definitive Securities in person at the
offices of Euroclear or Clearstream. Definitive Securities in bearer form to be
delivered in exchange for any portion of a temporary Global Security or a
permanent Global Security shall be delivered only outside the United States.

         Until exchanged in full as hereinabove provided, any temporary Global
Security or permanent Global Security shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of the same series
and with like terms and conditions, except as to payment of interest, if any,
authenticated and delivered hereunder. Unless otherwise specified as
contemplated by Section 301, interest payable on such temporary Global Security
on an Interest Payment Date for Securities of such series shall be payable to
Euroclear and Clearstream on such Interest Payment Date upon delivery by
Euroclear and Clearstream to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent in the case of payment of interest on a
temporary Global Security with respect to an Interest Payment Date occurring
prior to the applicable Exchange Date of a certificate or certificates
substantially in the form set forth in Exhibit C to this Indenture, for credit
without further interest on or after such Interest Payment Date to the
respective accounts of the Persons who are the beneficial owners of such Global
Security on such Interest Payment Date and who have, in the case of payment of
interest on a temporary Global Security with respect to an Interest Payment Date
occurring prior to the applicable Exchange Date, each delivered to Euroclear or
Clearstream, as the case may be, a certificate substantially in the form set
forth in Exhibit D to this Indenture.

         Any definitive Bearer Security authenticated and delivered by the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent in exchange for a portion of a temporary Global Security or a permanent
Global Security shall not bear a coupon for any interest which shall theretofore
have been duly paid by such Trustee to Euroclear or Clearstream or by the
Company to such Trustee in accordance with the provisions of this Section 304.

                                      -25-
<PAGE>
         With respect to Exhibits A, B, C and D to this Indenture, the Company
may, in its discretion and if required or desirable under applicable law,
substitute one or more other forms of such exhibits for such exhibits, eliminate
the requirement that any or all certificates be provided, or change the time
that any certificate may be required, provided that such substitute form or
forms or notice of elimination or change of such certification requirement have
theretofore been delivered to the Trustee with a Company Request and such form
or forms, elimination or change is reasonably acceptable to the Trustee.

Section 305. Registration, Registration of Transfer and Exchange.

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

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

         Except as set forth below, at the option of the Holder, Registered
Securities of any particular series may be exchanged for other Registered
Securities of any authorized denominations, and of a like Stated Maturity and of
a like series and aggregate principal amount and with like terms and conditions
upon surrender of the Registered Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee for such Securities shall authenticate and
deliver, the Securities which the Holder making the exchange is entitled to
receive. Except as otherwise specified pursuant to Section 301, Registered
Securities may not be exchanged for Bearer Securities.

         Notwithstanding any other provision of this Section or Section 304,
unless and until it is exchanged in whole or in part for Registered Securities
in definitive form, a Global Security representing all or a portion of the
Registered Securities of a series may not be transferred except as a whole by
the Depositary for such series to a nominee of such Depositary or by a nominee
of such Depositary to such Depositary or another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for such series
or a nominee of such successor Depositary.

         At the option of the Holder, Bearer Securities of any series may be
exchanged for Registered Securities of the same series of any authorized
denominations and of a like aggregate principal amount and with like terms and
provisions upon surrender of the Bearer Securities to be exchanged at any office
or agency of the Company in a Place of Payment for that series, with all
unmatured coupons and all matured coupons in default thereto appertaining. If
the Holder of a Bearer Security is unable to produce any such unmatured coupon
or coupons or matured coupon or coupons in default, such exchange may be
effected if the Bearer Securities are accompanied by payment in funds acceptable
to the Company (or to the Trustee for the Security in case of matured coupons in
default) in an amount equal to the face amount of such missing coupon or
coupons, or the surrender of such missing coupon or coupons may be waived by the
Company and such Trustee if there is furnished to them such security or
indemnity as they may require to save each of them and any Paying Agent
harmless. If thereafter the Holder of such Security

                                      -26-
<PAGE>
shall surrender to any Paying Agent any such missing coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; provided, however, that, except as otherwise
provided in Section 1002, interest represented by coupons shall be payable only
upon presentation and surrender of those coupons at an office or agency of the
Company in a Place of Payment for that series located outside the United States.
Notwithstanding the foregoing, in case a Bearer Security of any series is
surrendered at any such office or agency in exchange for a Registered Security
of the same series and with like terms and conditions after the close of
business at such office or agency on or after (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating
to such Interest Payment Date or proposed date for payment, as the case may be
(or, if such coupon is so surrendered with such Bearer Security, such coupon
shall be returned to the person so surrendering the Bearer Security), and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture.

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

         If at any time the Depositary for Securities of a series in registered
form notifies the Company that it is unwilling or unable to continue as
Depositary for the Securities of such series or if at any time the Depositary
for the Securities of such series shall no longer be eligible under Section 303,
the Company shall appoint a successor Depositary with respect to the Securities
for such series. If (i) a successor Depositary for the Securities of such series
is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, (ii) the Company delivers to the
Trustee for Securities of such series in registered form a Company Order stating
that the Securities of such series shall be exchangeable, or (iii) an Event of
Default under Section 501 hereof has occurred and is continuing with respect to
the Securities of such series, the Company's election pursuant to Section 301
shall no longer be effective with respect to the Securities for such series and
the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing such series in exchange for such Global Security or
Securities.

         The Company may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more Global
Securities shall no longer be represented by such Global Security or Securities.
In such event the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive Registered
Securities of such series, will authenticate and deliver, Registered Securities
of such series in definitive form and in an aggregate principal amount equal to
the principal amount of the Global Security or Securities representing such
series in exchange for such Global Security or Securities.

         If specified by the Company pursuant to Section 301 with respect to a
series of Securities in registered form, the Depositary for such series of
Securities may surrender a Global Security for such series of Securities in
exchange in whole or in part for Securities of such series of like tenor and
terms and in definitive form on such terms as are acceptable to the Company and
such Depositary. Thereupon the Company shall execute, and the Trustee shall
authenticate and deliver, without service charge, (i) to each Person specified
by such Depositary a new Security or Securities of the same series, of like
tenor and terms and of any authorized denomination as requested by such Person
in aggregate principal amount

                                      -27-
<PAGE>
equal to and in exchange for such Person's beneficial interest in the Global
Security; and (ii) to such Depositary a new Global Security of like tenor and
terms and in a denomination equal to the difference, if any, between the
principal amount of the surrendered Global Security and the aggregate principal
amount of Securities delivered to Holders thereof.

         Upon the exchange of a Global Security for Securities in definitive
form, such Global Security shall be cancelled by the Trustee. Registered
Securities issued in exchange for a Global Security pursuant to this Section
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee in writing. The
Trustee shall deliver such Registered Security to the persons in whose names
such Securities are so registered.

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

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

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

         The Company shall not be required (i) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 1104 and ending
at the close of business on (A) if Securities of the series are issuable only as
Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if Securities of the series are issuable as Bearer
Securities, the day of the first publication of the relevant notice of
redemption or, if Securities of the series are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption as a whole or in part, except the unredeemed
portion of any Security being redeemed in part, or (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security of that series and like tenor; provided,
however, that such Registered Security shall be simultaneously surrendered for
redemption.

         Furthermore, notwithstanding any other provision of this Section 305,
the Company will not be required to exchange any Securities if, as a result of
the exchange, the Company would suffer adverse consequences under any United
States law or regulation.

Section 306. Mutilated, Destroyed, Lost and Stolen Securities and Coupons.

         If (i) any mutilated Security or a Security with a mutilated coupon
appertaining thereto is surrendered to the Trustee for such Security or the
Company and the Trustee for a Security receive evidence to their satisfaction of
the destruction, loss or theft of any Security or coupon and (ii) there is
delivered to the Company and such Trustee such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless,
then, in the absence of notice to the Company or such Trustee that such Security
or coupon has been acquired by a protected purchaser (as defined in Article 8
of the Uniform Commercial Code), the Company

                                      -28-
<PAGE>
shall execute and upon its request such Trustee shall authenticate and deliver,
in lieu of any such destroyed, lost or stolen Security or in exchange for such
mutilated Security, or in exchange for the Security to which a mutilated,
destroyed, lost or stolen coupon appertains (with all appurtenant coupons not
mutilated, destroyed, lost or stolen) a new Security of the same series and in a
like principal amount and of a like Stated Maturity and with like terms and
conditions, and bearing a number not contemporaneously outstanding with coupons
corresponding to the coupons, if any, appertaining to such mutilated, destroyed,
lost or stolen Security or to the Security to which such mutilated, destroyed,
lost or stolen coupon appertains.

         In case any such mutilated, destroyed, lost or stolen Security or
coupon has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Security, pay such Security or coupon
(without surrender thereof except in the case of a mutilated Security or coupon)
if the applicant for such payment shall furnish to the Company and the Trustee
for such Security such security or indemnity as may be required by them to save
each of them harmless, and in case of destruction, loss or theft, evidence
satisfactory to the Company and such Trustee and any agent of any of them of the
destruction, loss or theft of such Security and the ownership thereof; provided,
however, that the principal of (and premium, if any) and interest, if any, on
Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 301, any interest on
Bearer Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

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

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

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

Section 307. Payment of Interest; Interest Rights Preserved.

         Interest on any Registered Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall, if so provided in
such Security, be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest payment.

         Unless otherwise provided with respect to the Securities of any series,
payment of interest may be made at the Corporate Trust Office or, at the option
of the Company (i) in the case of Registered Securities, may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register, or (ii) in the case of Bearer Securities, upon
presentation and surrender of the appropriate coupon appertaining thereto or by
transfer to an account maintained by the

                                      -29-
<PAGE>
payee with a bank located outside the United States. Notwithstanding the
foregoing, a Holder of $1,000,000 or more in aggregate principal amount of
Securities of any series in definitive form, whether having identical or
different terms and provisions, having the same Interest Payment Dates will, at
the option of the Company, be entitled to receive interest payments, other than
at Maturity, by wire transfer of immediately available funds if appropriate wire
transfer instructions have been received in writing by the Trustee for the
Securities of such series at least 15 days prior to the applicable Interest
Payment Date. Any wire instructions received by the Trustee for the Securities
of such series shall remain in effect until revoked by the Holder in writing.

         Unless otherwise provided or contemplated by Section 301, every
permanent Global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to each of Euroclear and Clearstream with
respect to that portion of such permanent Global Security held for its account
by the Depositary. Each of Euroclear and Clearstream will in such circumstances
credit the interest received by it in respect of such permanent Global Security
to the accounts of the beneficial owners thereof.

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

              (1) The Company may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Registered Securities of
         that series (or their respective Predecessor Securities) are registered
         at the close of business on a Special Record Date for the payment of
         such Defaulted Interest, which shall be fixed in the following manner.
         The Company shall notify the Trustee for the Registered Securities of
         such series in writing of the amount of Defaulted Interest proposed to
         be paid on each Registered Security of that series and the date of the
         proposed payment, and at the same time the Company shall deposit with
         such Trustee an amount of money in the currency or currency unit in
         which the Securities of such series are payable (except as otherwise
         specified pursuant to Section 301 for the Securities of such series and
         except as provided in Sections 311(b) and 311(d)), equal to the
         aggregate amount proposed to be paid in respect of such Defaulted
         Interest or shall make arrangements satisfactory to such Trustee for
         such deposit prior to the date of the proposed payment, such money when
         deposited to be held in trust for the benefit of the Persons entitled
         to such Defaulted Interest as in this clause provided. Thereupon such
         Trustee shall fix a Special Record Date for the payment of such
         Defaulted Interest which shall not be more than 15 days and not less
         than 10 days prior to the date of the proposed payment and not less
         than 10 days after the receipt by such Trustee of the notice of the
         proposed payment. Such Trustee shall promptly notify the Company of
         such Special Record Date and, in the name and at the expense of the
         Company, shall cause notice of the proposed payment of such Defaulted
         Interest and the Special Record Date therefor to be mailed, first-class
         postage prepaid, to each Holder of Registered Securities of that series
         at his address as it appears in the Security Register not less than 10
         days prior to such Special Record Date. Such Trustee may, in its
         discretion, in the name and at the expense of the Company, cause a
         similar notice to be published at least once in a newspaper published
         in the English language, customarily on each Business Day and of
         general circulation in New York, New York, but such publication shall
         not be a condition precedent to the establishment of such Special
         Record Date. Notice of the proposed payment of such Defaulted Interest
         and the Special Record Date therefor having been mailed as aforesaid,
         such Defaulted Interest shall be paid to the Persons in whose names the
         Registered Securities of that series (or their respective Predecessor
         Securities) are registered on such Special Record Date and shall no
         longer be payable pursuant to the following clause (2).

                                      -30-
<PAGE>
              (2) The Company may make payment of any Defaulted Interest on
         Registered Securities of any particular series in any other lawful
         manner not inconsistent with the requirements of any securities
         exchange on which the Registered Securities may be listed, and upon
         such notice as may be required by such exchange, if, after notice is
         given by the Company to the Trustee for the Securities of such series
         of the proposed manner of payment pursuant to this clause, such manner
         of payment shall be deemed practicable by such Trustee.

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

Section 308. Persons Deemed Owners.

         Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee for such Security and any agent of the
Company or such Trustee may treat the Person in whose name any such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 307) interest, if
any, on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and none of the Company, such Trustee or any agent of the
Company or such Trustee shall be affected by notice to the contrary.

         Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee for such Security and any agent of
the Company or such Trustee may treat the bearer of any Bearer Security and the
bearer of any coupon as the absolute owner of such Bearer Security or coupon for
the purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not such Security or coupon be overdue, and none
of the Company, such Trustee or any agent of the Company or such Trustee shall
be affected by notice to the contrary.

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

Section 309. Cancellation.

         All Securities and coupons surrendered for payment, redemption,
registration of transfer or exchange, or delivered in satisfaction of any
sinking fund payment, shall, if surrendered to any Person other than the Trustee
for such Securities, be delivered to such Trustee and, in the case of Registered
Securities and matured coupons, shall be promptly cancelled by it. All Bearer
Securities and unmatured coupons so delivered to the Trustee for such Securities
shall be cancelled by such Trustee. The Company may at any time deliver to the
Trustee for Securities of a series for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by such Trustee. Notwithstanding any other provision of this Indenture to the
contrary, in the case of a series, all the Securities of which are not to be
originally issued at one time, a Security of such series shall not be deemed to
have been Outstanding at any time hereunder if and to the extent that,
subsequent to the authentication and delivery thereof, such Security is
delivered to the Trustee for such Security for cancellation by the Company or
any agent thereof upon the failure of the original purchaser thereof to make
payment therefor against delivery thereof, and any Security so delivered to such
Trustee shall be promptly cancelled by it. No Securities shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Securities and coupons held by the Trustee for such Securities shall be disposed
of by such Trustee in accordance with its standard procedures and upon receipt
of a Company Order, a

                                      -31-
<PAGE>
certificate of disposition evidencing such disposition of Securities and coupons
shall be provided to the Company by such Trustee. In the case of any temporary
Global Security, which shall be disposed of if the entire aggregate principal
amount of the Securities represented thereby has been exchanged, the certificate
of disposition shall state that all certificates required pursuant to Section
304 hereof, substantially in the form of Exhibit B hereto (or in the form of any
substitute exhibit as provided in the last paragraph of Section 304), to be
given by Euroclear or Clearstream, have been duly presented to the Trustee for
such Securities by Euroclear or Clearstream, as the case may be. Permanent
Global Securities shall not be disposed of until exchanged in full for
definitive Securities or until payment thereon is made in full.

Section 310. Computation of Interest.

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

Section 311. Currency and Manner of Payments in Respect of Securities.

         Unless otherwise specified in accordance with Section 301 with respect
to any series of Securities, the following provisions shall apply:

         (a) Except as provided in paragraphs (b) and (d) below, the principal
of, premium, if any, and interest on Securities of any series denominated in a
Foreign Currency or currency unit will be payable by the Company in Dollars
based on the equivalent of that Foreign Currency or currency unit converted into
Dollars in the manner described in paragraph (c) below.

         (b) It may be provided pursuant to Section 301 with respect to
Registered Securities of any series denominated in a Foreign Currency or
currency unit that Holders shall have the option, subject to paragraph (d)
below, to receive payments of principal of, premium, if any, and interest on
such Registered Securities in such Foreign Currency or currency unit by
delivering to the Trustee (or to any duly appointed Paying Agent) for the
Registered Securities of that series a written election, to be in form and
substance satisfactory to such Trustee (or to any such Paying Agent), not later
than the close of business on the Election Date immediately preceding the
applicable payment date. If a Holder so elects to receive such payments in such
Foreign Currency or currency unit, such election will remain in effect for such
Holder until changed by such Holder by written notice to the Trustee (or to any
such Paying Agent) for the Registered Securities of that series; provided,
however, that any such change must be made not later than the close of business
on the Election Date immediately preceding the next payment date to be effective
for the payment to be made on such payment date; and provided, further, that no
such change or election may be made with respect to payments to be made on any
Registered Security of such series with respect to which an Event of Default has
occurred, the Company has exercised any defeasance, satisfaction or discharge
options pursuant to Article Four or notice of redemption has been given by the
Company pursuant to Article Eleven. If any Holder makes any such election, such
election will not be effective as to any transferee of such Holder and such
transferee shall be paid in Dollars unless such transferee makes an election as
specified above; provided, however, that such election, if in effect while funds
are on deposit with respect to the Registered Securities of such series as
described in Section 404 or Section 405, will be effective on any transferee of
such Holder unless otherwise specified pursuant to Section 301 for such
Registered Securities. Any Holder of any such Registered Security who shall not
have delivered any such election to the Trustee (or to any duly appointed Paying
Agent) for the Registered Securities of such series prior to the close of
business on the applicable Election Date will be paid the amount due on the
applicable payment date in Dollars.

                                      -32-
<PAGE>
         (c) With respect to any Registered Securities of any series denominated
in a Foreign Currency or currency unit and payable in Dollars, the amount of
Dollars so payable will be determined by the Currency Determination Agent based
on the highest indicative quotation in The City of New York selected by the
Currency Determination Agent at approximately 11:00 A.M., New York City time, on
the second Business Day preceding the applicable payment date. Such selection
shall be made from among the quotations appearing on the bank composite or
multi-contributor pages of the Reuters Monitor Foreign Exchange Service or, if
not available, the Telerate Monitor Foreign Exchange Service, for three (or two
if three are not available) major banks in New York City. The first three (or
two) such banks selected by the Currency Determination Agent which are offering
quotes on the Reuters Foreign Exchange Service, as the case may be, shall be
used. If such quotations are unavailable from either such foreign exchange
service, such selection shall be made from the quotations received by the
Currency Determination Agent from no more than three nor less than two
recognized foreign exchange dealers in The City of New York selected by the
Currency Determination Agent and approved by the Company (one of which may be
the Currency Determination Agent) for the purchase by the quoting dealer, for
settlement on such payment date, of the aggregate amount of the Foreign Currency
or currency unit payable on such payment date in respect of all Registered
Securities denominated in such Foreign Currency or currency unit and for which
the applicable dealer commits to execute a contract. If fewer than two such bid
quotations are available at 11:00 a.m., New York City time, on the second
Business Day preceding the applicable payment date, such payment will be based
on the Market Exchange Rate as of the second Business Day preceding the
applicable payment date. If the Market Exchange Rate for such date is not then
available, payments shall be made in the Foreign Currency or currency unit. All
currency exchange costs associated with any payment in Dollars on any such
Registered Securities will be borne by the Holder thereof by deductions from
such payment.

         (d) If a Conversion Event occurs with respect to a Foreign Currency or
currency unit in which Registered Securities of any series are payable, then
with respect to each date for the payment of principal of, premium, if any, and
interest on the Registered Securities of that series occurring after the last
date on which such Foreign Currency or currency unit was used, the Company may
make such payment in Dollars. The Dollar amount to be paid by the Company to the
Trustee for the Registered Securities of such series and by such Trustee or any
Paying Agent for the Registered Securities of such series to the Holders of such
Registered Securities with respect to such payment date shall be determined by
the Currency Determination Agent on the basis of the Market Exchange Rate as of
the second Business Day preceding the applicable payment date or, if such Market
Exchange Rate is not then available, on the basis of the most recently available
Market Exchange Rate, or as otherwise established pursuant to Section 301 with
respect to such Notes. Any payment in respect of such Registered Security made
under such circumstances in Dollars will not constitute an Event of Default
hereunder.

         (e) For purposes of this Indenture the following terms shall have the
following meanings:

              A "Component Currency" shall mean any currency which is a
         component currency of any currency unit.

              "Election Date" shall mean, for the Registered Securities of any
         series, the date specified pursuant to Section 301(14).

         (f) Notwithstanding any other provisions of this Section 311, the
following shall apply: (i) if the official unit of any Component Currency is
altered by way of combination or subdivision, the number of units of that
currency as a component shall be divided or multiplied in the same proportion,
(ii) if two or more Component Currencies are consolidated into a single
currency, the amounts of those currencies as components shall be replaced by an
amount in such single currency equal to the sum of the amounts of the
consolidated Component Currencies expressed in such a single currency, (iii) if
any Component

                                      -33-
<PAGE>
Currency is divided into two or more currencies, the amount of that original
Component Currency as a component shall be replaced by the amounts of such two
or more currencies having an aggregate value on the date of division equal to
the amount of the former Component Currency immediately before such division and
(iv) in the event of an official redenomination of any currency (including,
without limitation, a currency unit), the obligations of the Company to make
payments in or with reference to such currency on the Registered Securities of
any series shall, in all cases, be deemed immediately following such
redenomination to be obligations to make payments in or with reference to that
amount of redenominated currency representing the amount of such currency
immediately before such redenomination.

         (g) All determinations referred to in this Section 311 made by the
Currency Determination Agent shall be in its sole discretion and shall, in the
absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Holders of the applicable Securities. The Currency
Determination Agent shall promptly give written notice to the Trustee for the
Securities of such series of any such decision or determination. The Currency
Determination Agent shall promptly give written notice to the Trustee of any
such decision or determination. The Currency Determination Agent shall have no
liability for any determinations referred to in this Section 311 made by it.

         (h) The Trustee for the Securities of a particular series shall be
fully justified and protected in relying and acting upon information received by
it from the Company and the Currency Determination Agent with respect to any of
the matters addressed in or contemplated by this Section 311 and shall not
otherwise have any duty or obligation to determine such information
independently.

Section 312. Appointment and Resignation of Currency Determination Agent.

         (a) If and so long as the Securities of any series (i) are denominated
in a currency unit or a currency other than Dollars or (ii) may be payable in a
currency unit or a currency other than Dollars, or so long as it is required
under any other provision of this Indenture, then the Company shall maintain
with respect to each such series of Securities, or as so required, a Currency
Determination Agent. The Company shall cause the Currency Determination Agent to
make the necessary foreign exchange determinations at the time and in the manner
specified pursuant to Section 301 for the purpose of determining the applicable
rate of exchange and for the purpose of converting the issued currency or
currency unit into the applicable payment currency or currency unit for the
payment of principal (and premium, if any) and interest, if any, pursuant to
Section 311.

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

         (c) If the Currency Determination Agent shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of the
Currency Determination Agent for any cause, with respect to the Securities of
one or more series, the Company, by a Board Resolution, shall promptly appoint a
successor Currency Determination Agent or Currency Determination Agents with
respect to the Securities of that or those series (it being understood that any
such successor Currency Determination Agent may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
only be one Currency Determination Agent with respect to the Securities of any
particular series).

                                      -34-
<PAGE>
                                   ARTICLE 4

                           SATISFACTION AND DISCHARGE

Section 401. Option to Effect Legal Defeasance or Covenant Defeasance.

         The Company may, at the option of its Board of Directors evidenced by a
Board Resolution set forth in an Officers' Certificate, at any time, with
respect to the Securities of any series, elect to have either Section 402 or 403
be applied to all of the Outstanding Securities of that series upon compliance
with the conditions set forth below in this Article Four.

Section 402. Legal Defeasance and Discharge.

         Upon the Company's exercise under Section 401 of the option applicable
to this Section 402, the Company shall be deemed to have been discharged from
its obligations with respect to all Outstanding Securities of the particular
series on the date the conditions set forth below are satisfied (hereinafter,
"Legal Defeasance"). For this purpose, such Legal Defeasance means that the
Company shall be deemed to have paid and discharged all the obligations relating
to the Outstanding Securities of that series and the Securities of that series
shall thereafter be deemed to be "outstanding" only for the purposes of Section
406, Section 408 and the other Sections of this Indenture referred to below in
this Section 402, and to have satisfied all of its other obligations under such
Securities and this Indenture and cured all then existing Events of Default (and
the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (a) the rights of
Holders of outstanding Securities of the particular series and coupons, if any,
of such series to receive payments in respect of the principal of, premium, if
any, and interest, if any, on such Securities when such payments are due or on
the Redemption Date solely out of the trust created pursuant to this Indenture;
(b) the Company's obligations with respect to such Securities concerning issuing
temporary Securities of that series, or, where relevant, registration of such
Securities, mutilated, destroyed, lost or stolen Securities of that series and
the maintenance of an office or agency for payment and money for Security
payments held in trust; (c) the rights, powers, trusts, duties and immunities of
the Trustee for the Securities of that series, and the Company's obligations in
connection therewith; and (d) this Article Four and the obligations set forth in
Section 406 hereof.

         Subject to compliance with this Article Four, the Company may exercise
its option under Section 402 notwithstanding the prior exercise of its option
under Section 403 with respect to the Securities of a particular series.

Section 403. Covenant Defeasance.

         Upon the Company's exercise under Section 401 of the option applicable
to this Section 403, the Company shall be released from any obligations under
the covenants contained in Sections 704, 801, 1007 and 1008 hereof with respect
to the Outstanding Securities of the particular series on and after the date the
conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"),
and the Securities of that series 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 Securities shall not be deemed outstanding for
accounting purposes). For this purpose, such Covenant Defeasance means that,
with respect to the Outstanding Securities of that series, 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

                                      -35-
<PAGE>
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 Event of Default under
subsection 501(3) but, except as specified above, the remainder of this
Indenture and the Securities of that series shall be unaffected thereby.

Section 404. Conditions to Legal or Covenant Defeasance.

         The following shall be the conditions to the application of either
Section 402 or Section 403 to the outstanding Securities of a particular series:

              (a) the Company must irrevocably deposit, or cause to be
         irrevocably deposited, with the Trustee for the Securities of that
         series, in trust, for the benefit of the Holders of the Securities of
         that series, cash in the currency or currency unit in which the
         Securities of that series are payable (except as otherwise specified
         pursuant to Section 301 for the Securities of that series and except as
         provided in Sections 311(b) and 311(d), in which case the deposit to be
         made with respect to Securities for which an election has occurred
         pursuant to Section 311(b), or a Conversion Event has occurred as
         provided in Section 311(d), shall be made in the currency or currency
         unit in which the Securities of that series are payable as a result of
         such election or Conversion Event), Government Obligations or a
         combination thereof in such amounts as will be sufficient, in the
         opinion of an internationally recognized firm of independent public
         accountants, to pay the principal of, premium, if any, and interest, if
         any, due on the outstanding Securities of that series and any related
         coupons at the Stated Maturity, or on the applicable Redemption Date,
         as the case may be, with respect to the outstanding Securities of that
         series and any related coupons;

              (b) in the case of Legal Defeasance, the Company shall have
         delivered to the Trustee for the Securities of that series an Opinion
         of Counsel in the United States reasonably acceptable to such Trustee
         confirming that, subject to customary assumptions and exclusions, (1)
         the Company has received from, or there has been published by, the U.S.
         Internal Revenue Service a ruling or (2) since the Issue Date, there
         has been a change in the applicable U.S. federal income tax law, in
         either case to the effect that, and based thereon such Opinion of
         Counsel in the United States shall confirm that, subject to customary
         assumptions and exclusions, the Holders of the Outstanding Securities
         of that series will not recognize income, gain or loss for U.S. federal
         income tax purposes as a result of such Legal Defeasance and will be
         subject to U.S. 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 Covenant Defeasance, the Company shall have
         delivered to the Trustee for the Securities of that series an Opinion
         of Counsel in the United States reasonably acceptable to such Trustee
         confirming that, subject to customary assumptions and exclusions, the
         Holders of the Outstanding Securities of that series will not recognize
         income, gain or loss for U.S. federal income tax purposes as a result
         of such Covenant Defeasance and will be subject to such 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 Event of Default or event which with the giving of notice
         or the lapse of time, or both, would become an Event of Default with
         respect to the Securities of that series shall have occurred and be
         continuing on the date of such deposit and no Event of Default under
         Section 501(5) or Section 501(6) shall have occurred and be continuing
         on the 123rd day after such date;

                                      -36-
<PAGE>
              (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 to which the Company is a party or by which the
         Company is bound;

              (f) the Company shall have delivered to the Trustee for the
         Securities of that series an Officers' Certificate and an Opinion of
         Counsel in the United States, subject to customary assumptions and
         exclusions, each stating that all conditions precedent provided for or
         relating to the Legal Defeasance or the Covenant Defeasance, as the
         case may be, have been complied with.

Section 405. Satisfaction and Discharge of Indenture.

         This Indenture will be discharged and will cease to be of further
effect as to all Securities of any particular series issued hereunder when
either (i) all Securities of that series theretofore authenticated and delivered
and all coupons, if any, appertaining thereto (except (A) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and
maturing after such exchange, whose surrender is not required or has been waived
as provided in Section 305, (B) lost, stolen or destroyed Securities or coupons
of such series which have been replaced or paid as provided in Section 306, (C)
coupons appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender is not required as provided in Section
1106 and (D) Securities and coupons of such series for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company or
discharged from such trust, as provided in the last paragraph of Section 1003)
have been delivered to the Trustee for the Securities of that series for
cancellation or (ii) (A) all Securities of that series and any coupons
appertaining thereto not theretofore delivered to the Trustee for cancellation
are due and payable by their terms within one year or have become due and
payable by reason of the making of a notice of redemption and the Company has
irrevocably deposited or caused to be deposited with such Trustee as trust funds
in trust an amount of cash in any combination of currency or currency unit in
which the Securities of such series are payable (except as otherwise specified
pursuant to Section 301 for the Securities of such series and except as provided
in Sections 311(b) and 311(d), in which case the deposit to be made with respect
to Securities for which an election has occurred pursuant to Section 311(b) or a
Conversion Event has occurred as provided in Section 311(d), shall be made in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event) sufficient to pay and discharge the entire
indebtedness on such Securities and coupons not theretofore delivered to the
Trustee for the Securities of that series for cancellation for principal,
premium, if any, and accrued and unpaid interest, if any, to the Stated Maturity
or Redemption Date, as the case may be; (B) no Event of Default or event which
with the giving of notice or the lapse of time, or both, would become an Event
of Default shall have occurred and be continuing on the date of such deposit and
no Event of Default under Section 501(5) or Section 501(6) shall have occurred
and be continuing on the 123rd day after such date; (C) the Company has paid, or
caused to be paid, all sums payable by it under this Indenture; and (D) the
Company has delivered irrevocable instructions to the Trustee for the Securities
of that series under this Indenture to apply the deposited money toward the
payment of such Securities and coupons at the Stated 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 for the Securities of that
series stating that all conditions precedent to satisfaction and discharge have
been satisfied.

Section 406. Survival of Certain Obligations.

         Notwithstanding the satisfaction and discharge of this Indenture and of
the Securities of a particular series referred to in Sections 401, 402, 404, or
405, the respective obligations of the Company and the Trustee for the
Securities of a particular series under Sections 303, 304, 305, 307, 309, 407,
408, 409, 410, and 508, Article Six, and Sections 701, 702, 1002, 1003, 1004 and
1006, shall survive with respect to Securities of that series until the
Securities of that series are no longer outstanding, and

                                      -37-
<PAGE>
thereafter the obligations of the Company and the Trustee for the Securities of
a particular series with respect to that series under Sections 407, 408, 409,
and 410 shall survive. Nothing contained in this Article Four shall abrogate any
of the obligations or duties of the Trustee of any series of Securities under
this Indenture.

         Notwithstanding the satisfaction of the conditions set forth in
Sections 404 or 405 with respect to all the Securities of any series not payable
in Dollars, upon the happening of any Conversion Event the Company shall be
obligated to make the payments in Dollars required by Section 311(d) to the
extent that the Trustee is unable to convert any Foreign Currency or currency
unit or currency unit in its possession pursuant to Sections 404 or 405 into the
Dollar equivalent of such Foreign Currency or currency unit, as the case may be.
If, after the deposits referred to in Sections 404 or 405 have been made, (x)
the Holder of a Security is entitled to, and does, elect pursuant to Section
311(b) to receive payment in a currency or currency unit other than that in
which the deposit pursuant to Sections 404 or 405 was made, or (y) a Conversion
Event occurs as contemplated in Section 311(d), then the indebtedness
represented by such Security shall be fully discharged to the extent that the
deposit made with respect to such Security shall be converted into the currency
or currency unit in which such Security is payable. The Trustee shall return to
the Company any non-converted funds or securities in its possession after such
payments have been made.

Section 407. Acknowledgment of Discharge by Trustee.

         Subject to Section 410, after (i) the conditions of Section 404 or 405
have been satisfied with respect to the Securities of a particular series, (ii)
the Company has paid or caused to be paid all other sums payable hereunder by
the Company and (iii) the Company has delivered to the Trustee for the
Securities of that series an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i) above
relating to the satisfaction and discharge of this Indenture have been complied
with, the Trustee for the Securities of that series 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
Four.

Section 408. Application of Trust Moneys.

         All money and Government Obligations deposited with the Trustee for the
Securities of a particular series pursuant to Section 404 or 405 in respect of
the Securities of that series shall be held in trust and applied by it, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of the Securities and all related coupons of all sums
due and to become due thereon for principal, premium, if any, and interest, if
any, 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 for the Securities of a
particular series against any tax, fee or other charge imposed on or assessed
against the Government Obligations deposited pursuant to Section 404 or 405 with
respect to the Securities of that series or the principal and interest received
in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of outstanding Securities of that series.

Section 409. Repayment to the Company; Unclaimed Money.

         The Trustee and any Paying Agent for a series of Securities shall
promptly pay or return to the Company upon Company Order any cash or Government
Obligations held by them at any time that are not required for the payment of
the principal of, premium, if any, and interest, if any, on the Securities

                                      -38-
<PAGE>
and all related coupons for Securities of that series for which cash or
Government Obligations have been deposited pursuant to Section 404 or 405.

         Any money deposited with the Trustee or any Paying Agent for the
Securities of any series, or then held by the Company, in trust for the payment
of the principal of (and premium, if any) and interest, if any, on any Security
of any particular series and all related coupons appertaining thereto and
remaining unclaimed for two years after such principal (and premium, if any) and
interest, if any, has become due and payable shall, unless otherwise required by
mandatory provisions of applicable escheat, or abandoned or unclaimed property
law, be paid to the Company on Company Request or (if then held by the Company)
shall be discharged from such trusts; and the Holder of such Security and all
related coupons shall, thereafter, as an unsecured general creditor, look only
to the Company for payment thereof, and all liability of such 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 such Trustee
or such Paying Agent, before being required to make any such repayment may give
written notice to the Holder of such Security in the manner set forth in Section
106, that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will, unless otherwise required
by mandatory provisions of applicable escheat, or abandoned or unclaimed
property law, be repaid to the Company, as the case may be.

Section 410. Reinstatement.

         If the Trustee or Paying Agent for a series of Securities is unable to
apply any cash or Government Obligations, as applicable, in accordance with
Section 402, 403, 404 or 405 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations
under this Indenture and the Securities of that series shall be revived and
reinstated as though no deposit had occurred pursuant to Section 402, 403, 404
or 405 until such time as the Trustee or Paying Agent for that series is
permitted to apply all such cash or Government Obligations in accordance with
Section 402, 403, 404 or 405; provided, however, that if the Company has made
any payment of principal, premium, if any, and interest, if any, on any
Securities and any related coupons because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities and such coupons to receive such payment from the cash or
Government Obligations, as applicable, held by such Trustee or Paying Agent.

                                   ARTICLE 5

                                    REMEDIES

Section 501. Events of Default.

         "Event of Default" wherever used herein with respect to any particular
series of Securities means any one of the following events and such other events
as may be established with respect to the Securities of such series as
contemplated by Section 301 (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
or pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

                                      -39-
<PAGE>
              (1) default in the payment of any installment of interest upon any
         Security of that series and any related coupon when it becomes due and
         payable, and continuance of such default for a period of 30 days; or

              (2) default in the payment of the principal of, or premium, if
         any, on, any Security of that series at its Maturity or default in the
         deposit of any sinking fund payment when and as due by the terms of any
         Security of that series; or

              (3) default in the performance of, or breach of, any covenant or
         warranty of the Company in respect of any Security of that series
         contained in this Indenture or in such Securities (other than a
         covenant or warranty a default in whose performance or whose breach is
         elsewhere in this Section specifically dealt with) or in the applicable
         Board Resolutions under which such series is issued as contemplated by
         Section 301 and continuance of such default or breach for a period of
         60 days after there has been given, by registered or certified mail, to
         the Company by the Trustee for the Securities of such series or to the
         Company and such Trustee by the Holders of at least 25% in principal
         amount of the Outstanding Securities of that series a written notice
         specifying such default or breach and requiring it to be remedied and
         stating that such notice is a "Notice of Default" hereunder; or

              (4) acceleration of maturity of Securities of another series or
         any other indebtedness for borrowed money of the Company or any of its
         Significant Subsidiaries, in an aggregate principal amount exceeding
         $20 million, under the terms of the instrument or instruments under
         which such indebtedness is issued or secured, if such acceleration is
         not annulled within 30 days after written notice is provided of such
         acceleration to the Company; or

              (5) the Company shall commence any case or proceeding seeking to
         have an order for relief entered on its behalf as debtor or to
         adjudicate it as bankrupt or insolvent or seeking reorganization,
         liquidation, dissolution, winding-up, arrangement, composition or
         readjustment of its debts or any other relief under any bankruptcy,
         insolvency, reorganization, liquidation, dissolution, arrangement,
         composition, readjustment of debt or other similar act or law of any
         jurisdiction, domestic or foreign, now or hereafter existing; or the
         Company shall apply for a receiver, custodian or trustee (other than
         any trustee appointed as a mortgagee or secured party in connection
         with the issuance of indebtedness for borrowed money of the Company) of
         it or for all or a substantial part of its property; or the Company
         shall make a general assignment for the benefit of creditors; or the
         Company shall take any corporate action in furtherance of any of the
         foregoing; or

              (6) an involuntary case or other proceeding shall be commenced
         against the Company with respect to it or its debts under any
         bankruptcy, insolvency or other similar law now or hereafter in effect
         seeking the appointment of a trustee, receiver, liquidator, custodian
         or similar official of the Company or any substantial part of either's
         property; and such case or other proceeding (A) results in the entry of
         an order for relief or a similar order against either the Company or
         (B) shall continue unstayed and in effect for a period of 60
         consecutive days; or

              (7) a final non-appealable judgment or order for the payment of
         money in excess of $25 million rendered against the Company or any of
         its Significant Subsidiaries has not been paid or discharged within 60
         days following entry of such judgment or order; or

              (8) any other Event of Default provided in the Security or the
         Board Resolution with respect to Securities of that series.

                                      -40-
<PAGE>
Section 502. Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default with respect to any particular series of
Securities and any related coupons occurs and is continuing (other than an Event
of Default described in Section 501(5) or 501(6)), then and in every such case
either the Trustee for the Securities of such series or the Holders of not less
than 25% in aggregate principal amount of the Outstanding Securities of that
series may declare the entire principal amount (or, in the case of (i) OID
Securities, such lesser amount as may be provided for in the terms of that
series or (ii) Indexed Securities, the amount determined in accordance with the
specified terms of those Securities) of all the Securities of that series, to be
due and payable immediately, by a notice in writing to the Company (and to such
Trustee if given by Holders), and upon any such declaration of acceleration such
principal or such lesser amount, as the case may be, together with accrued
interest and all other amounts owing hereunder, shall become immediately due and
payable, without presentment, demand, protest or notice of any kind, all of
which are hereby expressly waived.

         If any Event of Default specified in Section 501(5) or 501(6) occurs
with respect to the Company, all of the unpaid principal amount (or, if the
Securities of any series then outstanding are (i) OID Securities, such lesser
amount as may be provided for in the terms of that series or (ii) Indexed
Securities, the amount determined in accordance with the specified terms of
those Securities) and accrued interest on all Securities of each series then
outstanding shall ipso facto become and be immediately due and payable without
any declaration or other act by the Trustee or any Holder.

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

              (1) the Company has paid or deposited with such Trustee a sum
         sufficient to pay in the currency or currency unit in which the
         Securities of such series are payable (except as otherwise specified
         pursuant to Section 301 for the Securities of such series and except as
         provided in Sections 311(b) and 311(d)).

              (A)  all overdue interest, if any, on all Securities of that
                   series and any related coupons;

              (B)  the principal of (and premium, if any, on) any Securities of
                   that series which have become due otherwise than by such
                   declaration of acceleration and interest thereon from the
                   date such principal became due at a rate per annum equal to
                   the rate borne by the Securities of such series (or, in the
                   case of (i) OID Securities, the Securities' Yield to Maturity
                   or (ii) Indexed Securities, the rate determined in accordance
                   with the specified terms of those Securities), to the extent
                   that the payment of such interest shall be legally
                   enforceable;

              (C)  to the extent that payment of such interest is lawful,
                   interest upon overdue interest at a rate per annum equal to
                   the rate borne by the Securities of such series (or, in the
                   case of (i) OID Securities, the Securities' Yield to Maturity
                   or (ii) Indexed Securities, the rate determined in accordance
                   with the specified terms of those Securities); and

                                      -41-
<PAGE>
              (D)  all sums paid or advanced by such Trustee hereunder and the
                   reasonable compensation, expenses, disbursements and advances
                   of such Trustee, its agents and counsel and all other amounts
                   due to such Trustee under Section 607;

         and

              (2) all Events of Default with respect to the Securities of such
         series, other than the nonpayment of the principal of Securities of
         that series which has become due solely by such acceleration, have been
         cured or waived as provided in Section 513. No such rescission shall
         affect any subsequent default or impair any right consequent thereon.

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

         The Company covenants that if:

              (1) default is made in the payment of any interest upon any
         Security of any series and any related coupons when such interest
         becomes due and payable and such default continues for a period of 30
         days; or

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

the Company will, upon written demand of the Trustee for the Securities of such
series, pay to it, for the benefit of the Holders of such Securities and
coupons, the whole amount then due and payable on such Securities and coupons
for principal (and premium if any) and interest, if any, with interest upon the
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installments of interest
at a rate per annum equal to the rate borne by such Securities (or, in the case
of (i) OID Securities, the Securities' Yield to Maturity or (ii) Indexed
Securities, the rate determined in accordance with the specified terms of those
Securities); and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of such Trustee,
its agents and counsel and all other amounts due to such Trustee under Section
607.

         If the Company fails to pay such amounts forthwith upon such demand,
such Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding against the Company for the collection of the sums so due
and unpaid, and may prosecute such proceeding to judgment or final decree, and
may enforce the same against the Company or any other obligor upon the
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company or any other obligor
upon the Securities, wherever situated.

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

Section 504. Trustee May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relating to the Company or any other

                                      -42-
<PAGE>
obligor upon the Securities of any series or the property of the Company or of
such other obligor or their creditors, the Trustee for the Securities of such
series (irrespective of whether the principal (or, if the Securities of such
series are (i) OID Securities or (ii) Indexed Securities, such amount as may be
due and payable with respect to such Securities pursuant to a declaration in
accordance with Section 502) of any Security of such series shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether such Trustee shall have made any demand on the Company for the
payment of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise

              (i) to file and prove a claim for the whole amount of principal
         (or, if the Securities of such series are (i) OID Securities or (ii)
         Indexed Securities, such amount as may be due and payable with respect
         to such Securities pursuant to a declaration in accordance with Section
         502) (and premium, if any) and interest, if any, owing and unpaid in
         respect of the Securities of such series and any related coupons and to
         file such other papers or documents as may be necessary or advisable in
         order to have the claims of such Trustee (including any claim for the
         reasonable compensation, expenses, disbursements and advances of such
         Trustee, its agents and counsel and all other amounts due to such
         Trustee under Section 607) and of the Holders of the Securities of such
         series and any related coupons allowed in such judicial proceeding;

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

              (iii) unless prohibited by law or applicable regulations, to vote
         on behalf of the Holders of the Securities of such series in any
         election of a trustee in bankruptcy or other person performing similar
         functions;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator (or
other similar official) in any such judicial proceeding is hereby authorized by
each Holder of Securities and coupons to make such payments to such Trustee, and
in the event that such Trustee shall consent to the making of such payments
directly to the Holders of Securities and coupons, to pay to such Trustee any
amount due to it for the reasonable compensation, expenses, disbursements and
advances of such Trustee, its agents and counsel, and any other amounts due such
Trustee under Section 607.

         Nothing herein contained shall be deemed to authorize the Trustee for
the Securities of any series to authorize or consent to or accept or adopt on
behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Trustee for the
Securities or coupons of any series to vote in respect of the claim of any
Holder in any such proceeding, except as aforesaid, for the election of a
trustee in bankruptcy or other person performing similar functions.

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

         All rights of action and claims under this Indenture or the Securities
or coupons of any series may be prosecuted and enforced by the Trustee for the
Securities of any series without the possession of any of the Securities or
coupons of such series or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by such Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel and all other
amounts due to such Trustee under Section 607, be for the ratable benefit of the
Holders of the Securities and coupons of such series in respect of which such
judgment has been recovered.

                                      -43-
<PAGE>
Section 506. Application of Money Collected.

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

              FIRST: To the payment of all amounts due such Trustee under
         Section 607;

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

              THIRD: The balance, if any, to the Company or any other Person
         lawfully entitled thereto.

Section 507. Limitation on Suits.

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

              (1) an Event of Default with respect to that series shall have
         occurred and be continuing and such Holder shall have previously given
         written notice to the Trustee for the Securities of such series of such
         default and the continuance thereof;

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

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

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

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

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

                                      -44-
<PAGE>
Section 508. Unconditional Right of Holders to Receive Principal (and Premium,
             if any) and Interest, if any.

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

Section 509. Restoration of Rights and Remedies.

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

Section 510. Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities or coupons in the last
paragraph of Section 306, no right or remedy herein conferred upon or reserved
to the Trustee for the Securities of any series or to the Holders of Securities
or coupons is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 511. Delay or Omission Not Waiver.

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

Section 512. Control by Holders.

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

              (1) such direction shall not be in conflict with any rule of law
         or with this Indenture and could not involve the Trustee in personal
         liability; and

                                      -45-
<PAGE>
              (2) such Trustee may take any other action deemed proper by such
         Trustee which is not inconsistent with such direction.

Section 513. Waiver of Past Defaults.

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

              (1) a default in the payment of the principal of (or premium, if
         any) or interest, if any, on any Security of that series; or

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

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

Section 514. Undertaking for Costs.

         All parties to this Indenture agree, and each Holder of any Security or
coupon by his acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture or in any suit against the Trustee for the
Securities or coupons of any series for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees, against any party
litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee for the Securities
of any series, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any particular series or to any suit instituted by any Holder of
any Security or coupon for the enforcement of the payment of the principal of
(or premium, if any) or interest, if any, on any Security of such series or the
payment of any coupon on or after the respective Stated Maturities expressed in
such Security or coupon (or, in the case of redemption, on or after the
Redemption Date).

Section 515. Waiver of Stay or Extension Laws.

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

                                      -46-
<PAGE>
Section 516. Judgment Currency.

         If, for the purpose of obtaining a judgment in any court with respect
to any obligation of the Company hereunder or under any Security or any related
coupon, it shall become necessary to convert into any other currency or currency
unit any amount in the currency or currency unit due hereunder or under such
Security or coupon, then such conversion shall be made by the Currency
Determination Agent at the Market Exchange Rate as in effect on the date of
entry of the judgment (the "Judgment Date"). If pursuant to any such judgment,
conversion shall be made on a date (the "Substitute Date") other than the
Judgment Date and there shall occur a change between the Market Exchange Rate as
in effect on the Judgment Date and the Market Exchange Rate as in effect on the
Substitute Date, the Company agrees to pay such additional amounts, if any, as
may be necessary to ensure that the amount paid is equal to the amount in such
other currency or currency unit which, when converted at the Market Exchange
Rate as in effect on the Judgment Date, is the amount due hereunder or under
such Security or coupon. Any amount due from the Company under this Section 516
shall be due as a separate debt and is not to be affected by or merged into any
judgment being obtained for any other sums due hereunder or in respect of any
Security or coupon. In no event, however, shall the Company be required to pay
more in the currency or currency unit due hereunder or under such Security or
coupon at the Market Exchange Rate as in effect on the Judgment Date than the
amount of currency or currency unit stated to be due hereunder or under such
Security or coupon so that in any event the Company's obligations hereunder or
under such Security or coupon will be effectively maintained as obligations in
such currency or currency unit, and the Company shall be entitled to withhold
(or be reimbursed for, as the case may be) any excess of the amount actually
realized upon any such conversion on the Substitute Date over the amount due and
payable on the Judgment Date.

                                   ARTICLE 6

                                   THE TRUSTEE

Section 601. Certain Duties and Responsibilities.

         (a) Except during the continuance of an Event of Default with respect
to the Securities of any series for which the Trustee is serving as such,

              (1) such Trustee undertakes to perform such duties and only such
         duties as are specifically set forth in this Indenture, and no implied
         covenants or obligations shall be read into this Indenture against such
         Trustee; and

              (2) in the absence of bad faith on its part, such 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 such Trustee and conforming to the requirements
         of this Indenture; but in the case of any such certificates or opinions
         which by any provisions hereof are specifically required to be
         furnished to such Trustee, such Trustee shall be under a duty to
         examine the same to determine whether or not they conform to the
         requirements of this Indenture.

         (b) In case an Event of Default with respect to a series of Securities
has occurred and is continuing, the Trustee for the Securities of such series
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of such person's
own affairs.

                                      -47-
<PAGE>
         (c) No provision of this Indenture shall be construed to relieve the
Trustee for Securities of any series from liability for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:

              (1) this Subsection shall not be construed to limit the effect of
         Subsection (a) of this Section;

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

              (3) such Trustee shall not be liable with respect to any action
         taken, suffered or omitted to be taken by it in good faith in
         accordance with the direction of the Holders of a majority in principal
         amount of the Outstanding Securities of any particular series,
         determined as provided in Section 512, relating to the time, method and
         place of conducting any proceeding for any remedy available to such
         Trustee, or exercising any trust or power conferred upon such Trustee,
         under this Indenture with respect to the Securities of that series; and

              (4) no provision of this Indenture shall require the Trustee for
         any series of Securities to expend or risk its own funds or otherwise
         incur any financial liability in the performance of any of its duties
         hereunder or in the exercise of any of its rights or powers, if it
         shall have reasonable grounds for believing that repayment of such
         funds or adequate indemnity against such risk or liability is not
         reasonably assured to it.

         (d) Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee for any series of Securities shall be
subject to the provisions of this Section.

Section 602. Notice of Defaults.

         Within 90 days after the occurrence of any default hereunder with
respect to Securities of any particular series, the Trustee for the Securities
of such series shall give to Holders of Securities of that series, in the manner
set forth in Section 106, notice of such default known to such Trustee, unless
such default shall have been cured or waived; provided, however, that, except in
the case of a default in the payment of the principal of (or premium, if any) or
interest, if any, on any Security of that series, or in the deposit of any
sinking fund payment with respect to Securities of that series, such Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of such Trustee in good faith determines that the
withholding of such notice is in the interest of the Holders of Securities of
that series and related coupons; and provided, further, that in the case of any
default of the character specified in Section 501(3) with respect to Securities
of that series no such notice to Holders shall be given until at least 60 days
after the occurrence thereof. For the purpose of this Section, the term
"default" means any event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to Securities of that series.

Section 603. Certain Rights of Trustee.

         Except as otherwise provided in Section 601:

         (a) the Trustee for any series of Security may rely and shall be
         protected in acting or refraining from acting upon any resolution,
         certificate, statement, instrument, opinion, report, notice, request,
         direction, consent, order, bond, debenture, note, other evidence of
         indebtedness or other

                                      -48-
<PAGE>
         paper or document believed by it to be genuine and to have been signed
         or presented by the proper party or parties;

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

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

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

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

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

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

         (h) the Trustee shall not be charged with knowledge of any default or
         Event of Default with respect to the Securities of any series unless
         either (1) a Responsible Officer of the Trustee shall have actual
         knowledge of such default or Event of Default or (2) written notice of
         such default or Event of Default shall have been given to the Trustee
         by the Company or by any Holder of the Securities of any series.

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

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

Section 605. May Hold Securities.

         The Trustee for any series of Securities, any Authenticating Agent,
Paying Agent, Security Registrar or any other agent of the Company, or such
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Securities and, subject to Sections 608 and 613, may otherwise deal
with

                                      -49-
<PAGE>
the Company with the same rights it would have if it were not such Trustee,
Authenticating Agent, Paying Agent, Security Registrar or such other agent.

Section 606. Money Held in Trust.

         Money held by the Trustee for any series of Securities in trust
hereunder need not be segregated from other funds except as provided in Section
115 and except to the extent required by law. The Trustee for any series of
Securities shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Company, as the case may be.

Section 607. Compensation and Reimbursement.

         The Company agrees:

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

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

              (3) to indemnify such Trustee and its agents in Dollars for, and
         to hold them harmless against, any loss, liability or expense incurred
         without negligence or bad faith on their part, arising out of or in
         connection with the acceptance or administration of this trust,
         including the costs and expenses of defending themselves against any
         claim or liability in connection with the exercise or performance of
         any of their powers or duties hereunder.

         As security for the performance of the obligations of the Company under
this Section, the Trustee for any series of Securities shall have a lien prior
to the Securities upon all property and funds held or collected by such Trustee
as such, except funds held in trust for the payment of principal of (and
premium, if any) or interest, if any, on particular Securities.

         Whenever the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 501(5) or Section 501(6) the
expenses (including the reasonable fees and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable bankruptcy, insolvency or other similar law.

         The provisions of this Section 607 shall survive the resignation or
removal of the Trustee and the termination of this Indenture.

Section 608. Disqualification; Conflicting Interests.

         The Trustee for the Securities of any series issued hereunder shall be
subject to the provisions of Section 310(b) of the Trust Indenture Act during
the period of time required thereby. Nothing herein shall prevent the Trustee
from filing with the Commission the application referred to in the penultimate
paragraph of Section 310(b) of the Trust Indenture Act. In determining whether
the Trustee has a conflicting interest as defined in Section 310(b) of the Trust
Indenture Act with respect to the Securities of any series, there shall be
excluded for purposes of the conflicting interest provisions of such Section
310(b) the Securities of every other series issued under this Indenture.

                                      -50-
<PAGE>
Section 609. Corporate Trustee Required; Different Trustees for Different
             Series; Eligibility.

         There shall at all times be a Trustee hereunder which shall be

                   (i)  a corporation organized and doing business under the
         laws of the United States of America, any state thereof, or the
         District of Columbia, authorized under such laws to exercise corporate
         trust powers, and subject to supervision or examination by Federal or
         State authority, or

                   (ii) a corporation or other Person organized and doing
         business under the laws of a foreign government that is permitted to
         act as Trustee pursuant to a rule, regulation, or other order of the
         Commission, authorized under such laws to exercise corporate trust
         powers, and subject to supervision or examination by authority of such
         foreign government or a political subdivision thereof substantially
         equivalent to supervision or examination applicable to United States
         institutional trustee,

         having a combined capital and surplus of at least $50,000,000. If such
         corporation publishes reports of condition at least annually, pursuant
         to law or to requirements of the aforesaid supervising or examining
         authority, then for the purposes of this Section, the combined capital
         and surplus of such corporation shall be deemed to be its combined
         capital and surplus as set forth in its most recent report of condition
         so published. Neither the Company nor any Person directly or indirectly
         controlling, controlled by, or under the common control of the Company
         shall serve as Trustee for the Securities. If at any time the Trustee
         shall cease to be eligible in accordance with the provisions of this
         Section, it shall resign immediately in the manner and with the effect
         hereunder specified in this Article.

Section 610. Resignation and Removal; Appointment of Successor.

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

         (b) The Trustee for the Securities of any series may resign at any time
with respect to the Securities of such series by giving written notice thereof
to the Company, specifying the day upon which the resignation is to take effect.
If the instrument of acceptance by a successor Trustee required by Section 611
shall not have been delivered to the Trustee for the Securities of such series
within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.

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

         (d) If at any time:

              (1) the Trustee for the Securities of any series shall fail to
         comply with Section 310(b) of the Trust Indenture Act pursuant to
         Section 608 hereof with respect to any series of Securities after
         written request therefor by the Company or by any Holder who has been a
         bona fide Holder of a Security of such series for at least six months,
         unless the Trustee's duty to resign is stayed in accordance with the
         provisions of Section 310(b) of the Trust Indenture Act, or

                                      -51-
<PAGE>
              (2) such Trustee shall cease to be eligible under Section 609 and
         shall fail to resign after written request therefor by the Company or
         by any such Holder, or

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

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

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

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

Section 611. Acceptance of Appointment by Successor.

         (a) Every such successor Trustee appointed hereunder with respect to
the Securities of any series shall execute, acknowledge and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become
effective and such successor Trustee without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on the request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder.

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto

                                      -52-
<PAGE>
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on
request of the Company or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.

         (c) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in Subsections (a) or (b) of this Section, as the case may be.

         (d) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee for the Securities of any series
shall be qualified and eligible under this Article.

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

         Any corporation into which the Trustee for the Securities of any series
may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion or consolidation to which such
Trustee shall be a party, or any corporation succeeding to all or substantially
all of the corporate trust business of such Trustee, shall be the successor of
such Trustee hereunder, provided such corporation shall be otherwise qualified
and eligible under this Article, without the execution or filing of any paper or
any further act on the part of any of the parties hereto. In case any Securities
shall have been authenticated, but not delivered, by the Trustee or the
Authenticating Agent for such series then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee or Authenticating
Agent, as the case may be, may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee or
successor Authenticating Agent had itself authenticated such Securities.

Section 613. Preferential Collection of Claims Against Company.

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

                                      -53-
<PAGE>
Section 614. Authenticating Agents.

         From time to time the Trustee for the Securities of any series may,
subject to its sole discretion, appoint one or more Authenticating Agents with
respect to the Securities of such series, which may include the Company or any
Affiliate of the Company, with power to act on the Trustee's behalf and subject
to its discretion in the authentication and delivery of Securities of such
series in connection with transfers and exchanges under Sections 304, 305 and
1107 as fully to all intents and purposes as though such Authenticating Agent
had been expressly authorized by those Sections of this Indenture to
authenticate and deliver Securities of such series. For all purposes of this
Indenture, the authentication and delivery of Securities of such series by an
Authenticating Agent for such Securities pursuant to this Section shall be
deemed to be authentication and delivery of such Securities "by the Trustee" for
the Securities of such series. Any such Authenticating Agent shall at all times
be a corporation organized and doing business under the laws of the United
States or of any State, authorized under such laws to exercise corporate trust
powers, having a combined capital and surplus of at least $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually pursuant
to law or the requirements of such supervising or examining authority, then for
the purposes of this Section the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. If at any time an
Authenticating Agent for any series of Securities shall cease to be eligible in
accordance with the provisions of this Section, such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

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

         Any Authenticating Agent for any series of Securities may resign at any
time by giving written notice of resignation to the Trustee for such series and
to the Company. The Trustee for any series of Securities may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company in the manner set
forth in Section 105. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent for any series of
Securities shall cease to be eligible under this Section, the Trustee for such
series may appoint a successor Authenticating Agent, shall give written notice
of such appointment to the Company and shall give written notice of such
appointment to all Holders of Securities of such series in the manner set forth
in Section 106. Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and
duties of its predecessor hereunder, with like effect as if originally named as
an Authenticating Agent. No successor Authenticating Agent shall be appointed
unless eligible under the provisions of this Section.

         The Company agrees to pay to any Authenticating Agent for such series
from time to time reasonable compensation for its services.

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

                                      -54-
<PAGE>
         "This is one of the Securities of the series designated therein
described in the within-mentioned Indenture.

JPMORGAN CHASE BANK, as Trustee

By
  ---------------------------------
  As Authenticating Agent

By
  ---------------------------------
  Authorized Officer"

                                   ARTICLE 7

              HOLDERS' LISTS AND REPORTS BY TRUSTEE AND THE COMPANY

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

         With respect to each particular series of Securities, the Company will
furnish or cause to be furnished to the Trustee for the Securities of such
series,

         (a) semiannually, not more than 15 days after each Regular Record Date
relating to that series (or, if there is no Regular Record Date relating to that
series, on June 30 and December 31), a list, in such form as such Trustee may
reasonably require, containing all the information in the possession or control
of the Company or any of its Paying Agents other than such Trustee as to the
names and addresses of the Holders of that series as of such dates,

         (b) on semi-annual dates on each year to be determined pursuant to
Section 301 if the Securities of such series do not bear interest, a list of
similar form and content, and

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

excluding from any such list names and addresses received by such Trustee in its
capacity as Security Registrar for the Securities of such series, if so acting.

Section 702. Preservation of Information; Communications to Holders.

         (a) The Trustee for each series of Securities shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
of the Securities of such series contained in the most recent lists furnished to
such Trustee as provided in Section 701 and the names and addresses of Holders
of the Securities of such series received by such Trustee in its capacity as
Security Registrar for such series, if so acting. The Trustee for each series of
Securities may destroy any list relating to such series of Securities furnished
to it as provided in Section 701 upon receipt of a new list relating to such
series so furnished.

         (b) If three or more Holders of Securities of any particular series
(hereinafter referred to as "applicants") apply in writing to the Trustee for
the Securities of any such series, and furnish to such Trustee reasonable proof
that each such applicant has owned a Security of that series for a period of at
least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other Holders of
Securities of that series with respect to their rights under this Indenture or
under the Securities of that series and is accompanied by a copy of the form of
proxy or other

                                      -55-
<PAGE>
communication which such applicants propose to transmit, then such Trustee
shall, within five Business Days after the receipt of such application, at its
election, either

              (i) afford such applicants access to the information preserved at
         the time by such Trustee in accordance with Section 702(a), or

              (ii) inform such applicants as to the approximate number of
         Holders of Securities of that series whose names and addresses appear
         in the information preserved at the time by such Trustee in accordance
         with Section 702(a), and as to the approximate cost of mailing to such
         Holders the form of proxy or other communication, if any, specified in
         such application.

         If any such Trustee shall elect not to afford such applicants access to
that information, such Trustee shall, upon the written request of such
applicants, mail to each Holder of Securities of that series whose name and
address appears in the information preserved at the time by such Trustee in
accordance with Section 702(a), a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness
after a tender to such Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender, such Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of such Trustee, such
mailing would be contrary to the best interests of the Holders of Securities of
that series or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, such Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise such Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

         (c) Every Holder of Securities of each series or coupons, by receiving
and holding the same, agrees with the Company and the Trustee for the Securities
of such series that neither the Company nor such Trustee, nor any agent of
either of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of the Securities of
such series in accordance with Section 702(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 702(b).

Section 703. Reports by Trustee.

         (a) Within 60 days after May 15 of each year, the Trustee for the
Securities of each series shall mail to each Holder of the Securities of such
series entitled to receive reports pursuant to Section 704(3), a brief report
dated as of such date that complies with Section 313(a) of the Trust Indenture
Act. The Trustee for the Securities of each series shall also comply with
Sections 313(b), 313(c) and 313(d) of the Trust Indenture Act.

         (b) At the time that the Trustee for the Securities of each series
mails such a report to the Holders of Securities of such series, each such
Trustee shall file a copy of that report with the Commission and with each stock
exchange on which the Securities of that series are listed. The Company shall
provide notice to the appropriate Trustee when the Securities of any series are
listed on any stock exchange.

                                      -56-
<PAGE>
Section 704. Reports by Company.

         The Company will:

              (1) file with the Trustee for the Securities of such series,
         within 15 days after the Company is required to file the same with the
         Commission, copies of the annual reports and of the information,
         documents and other reports (or copies of such portions of any of the
         foregoing as the Commission may from time to time by rules and
         regulations prescribe) which the Company may be required to file with
         the Commission pursuant to Section 13 or Section 15(d) of the Exchange
         Act; or, if the Company is not required to file information, documents
         or reports pursuant to either of said Sections, then it will file with
         such Trustee and the Commission, in accordance with rules and
         regulations prescribed from time to time by the Commission, such of the
         supplementary and periodic information, documents and reports which may
         be required pursuant to Section 13 of the Exchange Act in respect of a
         security listed and registered on a national securities exchange as may
         be prescribed from time to time in such rules and regulations;

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

              (3) transmit by mail to all Holders of Securities of each series,
         as provided in Section 703(a), within 30 days after the filing thereof
         with the Trustee for the Securities of such series, such summaries of
         any information, documents and reports required to be filed by the
         Company pursuant to paragraphs (1) and (2) of this Section as may be
         required by rules and regulations prescribed from time to time by the
         Commission.

                                   ARTICLE 8

                  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

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

         The Company shall not consolidate with or merge into any other
corporation or convey or transfer its properties and assets substantially as an
entirety to any Person unless:

              (1) the corporation formed by such consolidation or into which the
         Company is merged or the Person which acquires by conveyance or
         transfer the properties and assets of the Company substantially as an
         entirety shall be a corporation organized and existing under the laws
         of the United States of America, any State thereof or the District of
         Columbia, and shall expressly assume, by an indenture supplemental
         hereto, executed and delivered to the Trustee for each series of
         Securities, in form satisfactory to each such Trustee, the due and
         punctual payment of the principal of (and premium, if any) and
         interest, if any, (including all additional amounts, if any, payable
         pursuant to Sections 516 or 1010) on all the Securities and any related
         coupons and the performance of every covenant of this Indenture on the
         part of the Company to be performed or observed;

                                      -57-
<PAGE>
              (2) immediately after giving effect to such transaction, no Event
         of Default with respect to any series of Securities, and no event
         which, after notice or lapse of time, or both, would become an Event of
         Default with respect to any series of Securities, shall have happened
         and be continuing;

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

Section 802. Successor Corporation Substituted.

         Upon any consolidation by the Company with or merger by the Company
into any other corporation, or any conveyance or transfer of the properties and
assets of the Company substantially as an entirety in accordance with Section
801, the successor corporation formed by such consolidation or into which the
Company is merged or to which such conveyance or transfer is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor
corporation had been named as the Company herein and thereafter the predecessor
corporation shall be relieved of all obligations and covenants under this
Indenture, the Securities and any related coupons and, in the event of any such
consolidation, merger, conveyance or transfer, the Company as the predecessor
corporation may thereupon or at any time thereafter be dissolved, wound up, or
liquidated.

                                   ARTICLE 9

                             SUPPLEMENTAL INDENTURES

Section 901. Supplemental Indentures Without Consent of Holders.

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

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

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

              (3) to add any additional Events of Default with respect to any or
         all series of Securities (and, if any such Event of Default applies to
         fewer than all series of Securities, stating each series to which such
         Event of Default applies); or

                                      -58-
<PAGE>

(4)      to add to or to change any of the provisions of this Indenture to
         provide that Bearer Securities may be registrable as to principal, to
         change or eliminate any restrictions on the payment of principal of or
         any premium or interest on Bearer Securities, to permit Bearer
         Securities to be issued in exchange for Registered Securities, to
         permit Bearer Securities to be issued in exchange for Bearer Securities
         of other authorized denominations, to provide for the issuance of
         uncertificated Securities of any series in addition to or in place of
         any certificated Securities and to make all appropriate changes for
         such purposes; provided, however, that any such action shall not
         adversely affect the interests of the Holders of Securities of any
         series or any related coupons in any material respect; or

(5)      to change or eliminate any of the provisions of this Indenture,
         provided, however, that any such change or elimination shall become
         effective only when there is no Security Outstanding of any series
         created prior to the execution of such supplemental indenture which is
         entitled to the benefit of such provision; or

(6)      to evidence and provide for the acceptance of appointment hereunder of
         a Trustee other than JPMorgan Chase Bank, as Trustee for a series of
         Securities and to add to or change any of the provisions of this
         Indenture as shall be necessary to provide for or facilitate the
         administration of the trusts hereunder by more than one Trustee,
         pursuant to the requirements of Section 609; or

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

(8)      to add to the conditions, limitations and restrictions on the
         authorized amount, form, terms or purposes of issue, authentication and
         delivery of Securities, as herein set forth, other conditions,
         limitations and restrictions thereafter to be observed; or

(9)      to supplement any of the provisions of this Indenture to such extent as
         shall be necessary to permit or facilitate the defeasance and discharge
         of any series of Securities pursuant to Section 401; provided, however,
         that any such action shall not adversely affect the interests of the
         Holders of Securities of such series and any related coupons or any
         other series of Securities in any material respect; or

(10)     to add to or change or eliminate any provisions of this Indenture as
         shall be necessary or desirable in accordance with any amendments to
         the Trust Indenture Act; or

(11)     to issue and establish the form and terms of any series of Securities;
         or

(12)     to cure any ambiguity, to correct or supplement any provision herein
         which may be inconsistent with any other provision herein, to convey,
         transfer, assign, mortgage or pledge any property to or with the
         Trustee for the Securities of any series or to surrender any right or
         power herein conferred upon the Company, or to make any other
         provisions with respect to matters or questions arising under this
         Indenture, provided such action shall not adversely affect the
         interests of the Holders of Securities of any particular series in any
         material respect.

                                      -59-
<PAGE>
Section 902. Supplemental Indentures With Consent of Holders.

         The Company, when authorized by a Board Resolution, and the Trustee for
the Securities of any or all series may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders of such Securities and any
related coupons under this Indenture, but only with the consent of the Holders
of more than 50% in aggregate principal amount of the Outstanding Securities of
each series of Securities then Outstanding affected thereby, in each case by Act
of said Holders of Securities of each such series delivered to the Company and
the Trustee for Securities of each such series; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby:

                  (1) change the Stated Maturity of the principal of, or any
         installment of principal of or interest, if any, on, any Security, or
         reduce the principal amount thereof or the rate of interest thereon, if
         any (or, in the case of OID Securities, reduce the rate of accretion of
         original issue discount), or any premium payable upon the redemption
         thereof, or change any obligation of the Company to pay additional
         amounts pursuant to Section 1010 (except as contemplated by Section
         801(1) and permitted by Section 901(1)) or reduce the amount of the
         principal of an OID Security that would be due and payable upon a
         declaration of acceleration of the Maturity thereof, or provable in
         bankruptcy, or, in the case of Indexed Securities, reduce the amount
         payable in accordance with the terms of those Securities upon a
         declaration of acceleration of Maturity thereof, or provable in
         bankruptcy, pursuant to Section 502, or change the Place of Payment, or
         the currency or currency unit in which any Security or the principal or
         interest thereon is payable, or impair the right to institute suit for
         the enforcement of any such payment on or after the Stated Maturity
         thereof (or, in the case of redemption, on or after the Redemption
         Date); or impair any right of Holders of Securities hereunder to repay
         or purchase Securities at their option; or reduce or alter the method
         of computation of any amount payable upon redemption, repayment or
         purchase of any Securities by the Issuer (or the time when such
         redemption, repayment or purchase may be made); or

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

                  (3) modify any of the provisions of this Section or Section
         513 or 1010, except to increase any such percentage or to provide that
         certain other provisions of this Indenture cannot be modified or waived
         without the consent of the Holder of each Security affected thereby;
         provided, however, that this clause shall not be deemed to require the
         consent of any Holder of a Security or coupon with respect to changes
         in the references to "the Trustee" and concomitant changes in this
         Section and Section 1010, or the deletion of this proviso, in
         accordance with the requirements of Sections 609, 61l(b), 901(6) and
         901(7).

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

                                      -60-
<PAGE>
         It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

Section 903. Execution of Supplemental Indentures.

         In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee for any series of Securities
shall be entitled to receive, in addition to the documents required by Section
102, and (subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Trustee for any series of
Securities may, but shall not be obligated to, enter into any such supplemental
indenture which affects such Trustee's own rights, liabilities, duties or
immunities under this Indenture or otherwise.

Section 904. Effect of Supplemental Indentures.

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

Section 905. Conformity With Trust Indenture Act.

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

Section 906. Reference in Securities to Supplemental Indentures.

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

                                   ARTICLE 10

                                    COVENANTS

Section 1001. Payment of Principal (and Premium, if any) and Interest, if any.

         The Company agrees, for the benefit of each particular series of
Securities, that it will duly and punctually pay in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except
as provided in Sections 311(b) and 311(d)) the principal of, premium, if any,
and interest, if any, on that series of Securities in accordance with the terms
of the Securities of such series, any coupons appertaining thereto and this
Indenture. Unless otherwise specified as contemplated by Section 301 with
respect to any series

                                      -61-
<PAGE>
of Securities, any interest due on Bearer Securities on or before Maturity shall
be payable only upon presentation and surrender of the several coupons for such
interest installments as are evidenced thereby as they severally mature. The
interest, if any, due in respect of any temporary or permanent Global Security,
together with any additional amounts payable in respect thereof, as provided in
the terms and conditions of such Security, shall be payable, subject to the
conditions set forth in Section 1010, only upon presentation of such Security to
the Trustee thereof for notation thereon of the payment of such interest.

Section 1002. Maintenance of Office or Agency.

         If Securities of a series are issuable only as Registered Securities
the Company will maintain in each Place of Payment for that series an office or
agency where Securities of that series may be presented or surrendered for
payment, an office or agency where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company with respect to the Securities of that series and this
Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company will maintain (A) an office or agency (which may be the
same office or agency) in a Place of Payment for that series in the United
States where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related coupons may be presented or
surrendered for payment in the circumstances described in the following
paragraph (and not otherwise), (B) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related
coupons may be presented and surrendered for payment; provided, however, that if
the Securities of that series are listed on the Stock Exchange or any other
stock exchange located outside the United States and such stock exchange shall
so require, the Company will maintain a Paying Agent for the Securities of that
series in Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are listed
on such exchange, and (C) subject to any laws or regulations applicable thereto,
in a Place of Payment for that series located outside the United States an
office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange and where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served. The
Company will give prompt written notice to the Trustee for the Securities of
that series of the location, and any change in the location, of any such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency in respect of any series of Securities or shall fail to furnish
the Trustee for the Securities of that series with the address thereof, such
presentations (to the extent permitted by law), and surrenders of Securities of
that series may be made and notices and demands may be made or served at the
Corporate Trust Office of such Trustee, except that Bearer Securities of that
series and the related coupons may be presented and surrendered for payment at
the offices specified in the Security, and the Company hereby appoints the same
as its agent to receive such presentations, surrenders, notices and demands.

         No payment of principal, premium, if any, or interest, if any, on
Bearer Securities shall be made at any office or agency of the Company in the
United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States.
Payments will not be made in respect of Bearer Securities or coupons
appertaining thereto pursuant to presentation to the Company, or its designated
Paying Agents within the United States. Notwithstanding the foregoing, payment
of principal of (and premium, if any) and interest, if any, on any Bearer
Security denominated and payable in Dollars will be made at the office of the
Company's Paying Agent in the United States, if, and only if, payment in Dollars
of the full amount of such principal, premium or interest,

                                      -62-
<PAGE>
as the case may be, at all offices or agencies outside the United States
maintained for that purpose by the Company in accordance with this Indenture is
illegal or effectively precluded by exchange controls or other similar
restrictions and the Company has delivered to the Trustee an Opinion of Counsel
to that effect.

         The Company may also from time to time designate one or more other
offices or agencies (in or outside the Place of Payment) where the Securities of
one or more series may be presented or surrendered for any or all of the
purposes specified above in this Section and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain an office or agency
in each Place of Payment for such purpose. The Company will give prompt written
notice to the Trustee for the Securities of each series so affected of any such
designation or rescission and of any change in the location of any such office
or agency.

         If and so long as the Securities of any series (i) are denominated in a
currency other than Dollars or (ii) may be payable in a currency other than
Dollars, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of
Securities, or as so required, a Currency Determination Agent.

Section 1003. Money for Securities Payments To Be Held in Trust.

         If the Company shall at any time act as its own Paying Agent with
respect to any particular series of Securities and any related coupons, it will,
on or before each due date of the principal of, premium, if any, or interest, if
any, on any of the Securities of that series, segregate and hold in trust for
the benefit of the Persons entitled thereto a sum in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except
as provided in Sections 311(b) and 311(d)) sufficient to pay the principal,
premium, if any, and interest, if any, so becoming due until such sums shall be
paid to such Persons or otherwise disposed of as herein provided, and will
promptly notify the Trustee for the Securities of such series of its action or
failure so to act.

         Whenever the Company shall have one or more Paying Agents for any
particular series of Securities and any related coupons, it will, prior to each
due date of the principal of, premium, if any, or interest, if any, on any such
Securities, deposit with a Paying Agent for the Securities of such series a sum
in immediately available funds (in the currency or currency unit described in
the preceding paragraph) sufficient to pay the principal, premium, if any, and
interest, if any, so becoming due, such sum to be held in trust for the benefit
of the Persons entitled thereto, and (unless such Paying Agent is the Trustee
for the Securities of such series) the Company will promptly notify such Trustee
of its action or failure so to act.

         The Company will cause each Paying Agent for any particular series of
Securities other than the Trustee for the Securities of such series to execute
and deliver to such Trustee an instrument in which such Paying Agent shall agree
with such Trustee, subject to the provisions of this Section, that such Paying
Agent will:

                  (1) hold all sums held by it for the payment of the principal
         of, premium, if any, or interest, if any, on Securities of that series
         in trust for the benefit of the Persons entitled thereto until such
         sums shall be paid to such Persons or otherwise disposed of as herein
         provided;

                  (2) give such Trustee notice of any default by the Company (or
         any other obligor upon the Securities) in the making of any payment of
         principal (or premium, if any) and interest, if any, on Securities of
         that series; and

                                      -63-
<PAGE>
                  (3) at any time during the continuation of any such default,
         upon the written request of such Trustee, forthwith pay to such Trustee
         all sums so held in trust by such Paying Agent.

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

         The Issuer initially authorizes the Trustee to act as Paying Agent for
the Securities on its behalf and as agent of the Issuer where notices and
demands to or upon the Company in respect of the Securities and this Indenture
may be served. The Issuer may at any time and from time to time authorize one or
more Persons to act as Paying Agent or as such agent in addition to or in place
of the Trustee with respect to any series of Securities issued under this
Indenture.

Section 1004. Payment of Taxes and Other Claims.

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

Section 1005. Statements as to Compliance.

         The Company will deliver to the Trustee for each series of Securities,
within 120 days after the end of each fiscal year, a written statement signed by
the principal executive officer, principal financial officer or principal
accounting officer of the Company stating that:

                  (1) a review of the activities of the Company during such year
         and of performance under this Indenture has been made under his
         supervision; and

                  (2) to the best of his knowledge, based on such review, the
         Company is in compliance with all conditions and covenants under this
         Indenture.

         For purposes of this Section, such compliance shall be determined
without regard to any period of grace or requirement of notice provided under
this Indenture.

Section 1006. Corporate Existence.

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

                                      -64-
<PAGE>
Section 1007. Lien on Assets

         The Company will not, nor will it permit any Restricted Subsidiary to,
issue or assume any Indebtedness secured by a Lien upon any Property (now owned
or hereinafter acquired) of the Company or any Restricted Subsidiary without in
any such case effectively providing concurrently with the issuance or assumption
of any such Indebtedness that the Securities (together with, if the Company
shall so determine, any other Indebtedness of the Company or any Restricted
Subsidiary ranking equally with the Securities then existing or thereafter
created) shall be secured equally and ratably with such Indebtedness. The
restrictions set forth in the immediately preceding sentence will not, however,
apply if the aggregate amount of Indebtedness and Attributable Debt in respect
of any Sale and Leaseback Transaction issued or assumed by the Company and the
Restricted Subsidiaries and so secured by Liens, together with all other
Indebtedness of the Company and the Restricted Subsidiaries which (if originally
issued or assumed at such time) would otherwise be subject to such restrictions,
but not including Indebtedness permitted to be secured under clauses (1) through
(11) of the immediately following paragraph, does not at the time exceed 7.5% of
Consolidated Assets.

         The restrictions set forth above shall not apply to Indebtedness
secured by:

                  (1) Liens existing on the date of the Indenture;

                  (2) Permitted Liens;

                  (3) any Lien existing on any Property prior to the acquisition
         thereof by the Company or any Subsidiary or existing on any Property of
         any person that becomes a Subsidiary after the date hereof prior to the
         time such person becomes a Subsidiary; provided that such Lien is not
         created in contemplation of or in connection with such acquisition or
         such person becoming a Subsidiary;

                  (4) any Lien on fixed or capital assets acquired, constructed
         or improved by the Company or any Subsidiary, and extensions, renewals
         and replacements thereof that do not increase the outstanding principal
         amount thereof as of the date such Lien is granted; provided that (i)
         such Lien and the Indebtedness secured thereby are incurred prior to or
         within 180 days after such acquisition or the completion of such
         construction or improvement, (ii) the Indebtedness secured thereby does
         not exceed the cost of acquiring, constructing or improving such fixed
         or capital assets and (iii) such Lien shall not apply to any other
         property or assets of the Company or any Subsidiary;

                  (5) any Lien on the Property of any Subsidiary of the Company
         in favor of the Company or any wholly owned Subsidiary (other than a
         Lien in favor of a non-Restricted Subsidiary);

                  (6) any Lien on equipment (including printing presses and
         data-processing equipment) owned by the Company or any Subsidiary and
         located on the premises of any supplier and used in the ordinary course
         of the Company's or such Subsidiary's business;

                  (7) any judgment or judicial attachment Lien with respect to
         any judgment that does not constitute an Event of Default;

                                      -65-
<PAGE>
                  (8) any Lien securing any reimbursement, indemnification or
         similar obligation or liability incurred in the ordinary course of
         business in connection with any letter of credit, letter of guaranty,
         banker's acceptance, bill of exchange or similar instrument to backstop
         trade obligations of the Company or a Subsidiary;

                  (9) any Lien imposed by law where (i) the validity or amount
         thereof is being contested in good faith by appropriate proceedings and
         the Company or any Subsidiary has set aside on its books adequate
         reserves with respect thereto in accordance with generally accepted
         accounting principles or (ii) the failure to remove such Lien could not
         reasonably be expected to result in a material adverse effect on the
         Company and its Subsidiaries taken as a whole;

                  (10) any Lien deemed to exist by virtue of any Capital Lease
         Obligation not otherwise prohibited hereunder; and

                  (11) any extension, renewal or replacement (or successive
         extensions, renewals or replacements) in whole or in part of any Lien
         referred to in the foregoing clauses (1) through (10); provided,
         however, that such new Lien is limited to the Property which was
         subject to the prior Lien immediately before such extension, renewal or
         replacement, and provided, further, that the principal amount of
         Indebtedness secured by the prior Lien immediately before such
         extension, renewal or replacement is not increased.

         In case the covenant set forth in the first sentence of the first
paragraph of this Section 1007 would be breached if an appropriate Lien were not
created, the Company will send a written notice to the Trustee, which notice
will set forth relevant information on such situation.

Section 1008. Sale and Leaseback Transactions

         Neither the Company nor any Restricted Subsidiary may enter into any
Sale and Lease-Back Transaction with respect to any Property, unless either (1)
the Company or such Restricted Subsidiary would be entitled pursuant to
"Limitations on Liens" above to incur Indebtedness secured by a Lien on such
Property at least equal in amount to the Attributable Debt in respect of such
Sale and Lease-back Transaction without equally and ratably securing the
Securities or (2) the Company or such Restricted Subsidiary shall apply or cause
to be applied, in the case of a sale or transfer for cash, an amount equal to
the greater of the fair market value or the net proceeds thereof and, in the
case of a sale or transfer otherwise than for cash, an amount equal to the fair
market value of the Property so leased, to the retirement (other than any
mandatory retirement), within 180 days after the effective date of such Sale and
Lease-back Transaction, of the Securities or other Indebtedness of the Company
ranking on a parity with the Securities and owing to a Person other than the
Company or any Affiliate of the Company or to the construction or improvement of
real property or personal property used in the ordinary course of business.
These restrictions will not apply to transactions between the Company and a
Restricted Subsidiary or between Restricted Subsidiaries.

Section 1009. Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1004 to 1008, inclusive, if before
or after the time for such compliance the Holders of more than 50% in principal
amount of the Outstanding Securities of each series of Securities affected by
the omission shall, in each case by Act of such Holders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or
condition except to the extent so expressly waived, and, until such waiver shall
become

                                      -66-
<PAGE>
effective, the obligations of the Company and the duties of the Trustee for the
Securities of each series with respect to any such covenant or condition shall
remain in full force and effect.

Section 1010. Payment of Additional Amounts.

         If specified pursuant to Section 301, the provisions of this Section
1010 shall be applicable to Securities of any series.

         The Company will, subject to the exceptions and limitations set forth
below, pay to the Holder of any Security or coupon who is a United States Alien
such additional amounts as may be necessary so that every net payment on such
Security or coupon, after deduction or withholding by the Company or any of its
Paying Agents for or on account of any present or future tax, assessment or
other governmental charge imposed upon or as a result of such payment by the
United States (or any political subdivision or taxing authority thereof or
therein), will not be less than the amount provided in such Security or in such
coupon to be then due and payable. However, the Company will not be required to
make any payment of additional amounts for or on account of:

         (a) any tax, assessment or other governmental charge that would not
have been so imposed but for (i) the existence of any present or former
connection between such Holder (or between a fiduciary, settler or beneficiary
of, or a person holding a power over, such Holder, if such Holder is an estate
or trust, or a member or shareholder of such Holder, if such Holder is a
partnership or corporation) and the United States, including, without
limitation, such Holder (or such fiduciary, settler, beneficiary, person holding
a power, member or shareholder) being or having been a citizen, resident or
treated as a resident thereof or being or having been engaged in trade or
business or present therein or having or having had a permanent establishment
therein, or (ii) such Holder's present or former status as a personal holding
company, foreign personal holding company, controlled foreign corporation or
passive foreign investment company with respect to the United States or as a
corporation that accumulates earnings to avoid United States federal income tax;

         (b) any tax, assessment or other governmental charge which would not
have been so imposed but for the presentation by the Holder of such Security or
coupon for payment on a date more than 10 days after the date on which such
payment became due and payable or the date on which payment thereof is duly
provided for, whichever occurs later;

         (c) any estate, inheritance, gift, sales, transfer, personal property
tax or any similar tax, assessment or other governmental charge;

         (d) any tax, assessment or other governmental charge required to be
withheld by any Paying Agent from any payment in respect of any Security or
coupon, if such payment can be made without such withholding by at least one
other Paying Agent;

         (e) any tax, assessment or other governmental charge which is payable
otherwise than by withholding from payments in respect of such Security or
coupon;

         (f) any tax, assessment or other governmental charge imposed on a
Holder of a Security or coupon that actually or constructively owns 10 percent
or more of the total combined voting power of all classes of stock of the
Company entitled to vote within the meaning of Section 871(h)(3) of the Code or
that is a controlled foreign corporation related to the Company through stock
ownership;

         (g) any tax, assessment or other governmental charge imposed as a
result of the failure to comply with applicable certification, information,
documentation or other reporting requirements concerning the

                                      -67-
<PAGE>
nationality, residence, identity or connection with the United States of the
Holder or beneficial owner of a Security or coupon, if such compliance is
required by statute or by regulation of the United States, as a precondition to
relief or exemption from such tax, assessment or other governmental charge;

         (h) any tax, assessment or other governmental charge imposed with
respect to payments on any Registered Security by reason of the failure of the
Holder to fulfill the statement requirement of Sections 871(h) or 881(c) of the
Code; or

         (i) any combination of items (a), (b), (c), (d), (e), (f), (g) and (h);

nor will additional amounts be paid with respect to any payment on any such
Security or coupon to a Holder who is a fiduciary or partnership or other than
the sole beneficial owner of such payment to the extent such payment would be
required by the laws of the United States (or any political subdivision thereof)
to be included in the income for federal income tax purposes of a beneficiary or
settler with respect to such fiduciary or a member of such partnership or a
beneficial owner who would not have been entitled to payment of the additional
amounts had beneficiary, settler, member or beneficial owner been the Holder of
such Security or coupon.

         The term "United States Alien" means any corporation, partnership,
individual or fiduciary that is, as to the United States, a foreign corporation,
a nonresident alien individual, a nonresident fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is, as to
the United States, a foreign corporation, a nonresident alien individual or a
nonresident fiduciary of a foreign estate or trust.

         Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of (and premium, if any) and interest, if any, on any
Security or payment with respect to any coupon of any series, such mention shall
be deemed to include mention of the payment of additional amounts provided for
in the terms of such Securities and this Section to the extent that, in such
context, additional amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the payment of
additional amounts (if applicable) in any provisions hereof shall not be
construed as excluding additional amounts in those provisions hereof where such
express mention is not made.

         If the Securities of a series provide for the payment of additional
amounts as contemplated by Section 301(20), at least 10 days prior to the first
Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to maturity, the first
day on which a payment of principal and any premium is made), and at least 10
days prior to each date of payment of principal (and premium, if any) and
interest, if any, if there has been any change with respect to the matters set
forth in the below mentioned Officers' Certificate, the Company will furnish the
Trustee for that series of Securities and the Company's principal Paying Agent
or Paying Agents, if other than such Trustee, with an Officers' Certificate
instructing such Trustee and such Paying Agent or Paying Agents whether such
payment of principal of (and premium, if any) and interest, if any, on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are United States Aliens without withholding for or
on account of any tax, assessment or other governmental charge referred to above
or described in the Securities of that series. If any such withholding shall be
required, then such Officers' Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Securities
or coupons and the Company will pay to the Trustee for such series of Securities
or such Paying Agent such additional amounts as may be required pursuant to the
terms applicable to such series. The Company covenants to indemnify the Trustee
for such series of Securities and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with

                                      -68-
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actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section 1010.

                                   ARTICLE 11

                            REDEMPTION OF SECURITIES

Section 1101. Applicability of This Article.

         Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by any form of Security
issued pursuant to this Indenture shall be made in accordance with such form of
Security and this Article; provided, however, that if any provision of any such
form of Security shall conflict with any provision of this Article, the
provision of such form of Security shall govern.

Section 1102. Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities of any series
shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of less than all of the Securities of
any particular series, the Company shall, at least 60 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee for the Securities of such series) notify such
Trustee by Company Request of such Redemption Date and of the principal amount
of Securities of that series to be redeemed and shall deliver to such Trustee
such documentation and records as shall enable such Trustee to select the
Securities to be redeemed pursuant to Section 1103. In the case of any
redemption of Securities of any series prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee for
Securities of such series with an Officers' Certificate evidencing compliance
with such restriction.

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

         If less than all the Securities are to be redeemed, the Company may
select the series to be redeemed, and if less than all the Securities of any
series are to be redeemed, the particular Securities of that series to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee for the Securities of such series, from the Outstanding Securities
of that series not previously called for redemption, by such method as such
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series, or any integral multiple thereof) of the principal
amount of Securities of that series of a denomination larger than the minimum
authorized denomination for Securities of that series pursuant to Section 302 in
the currency or currency unit in which the Securities of such series are
denominated.

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

         For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Security redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.

                                      -69-
<PAGE>
Section 1104. Notice of Redemption.

         Notice of redemption shall be given in the manner provided in Section
106 not later than the thirtieth day and not earlier than the sixtieth day prior
to the Redemption Date, to each Holder of Securities to be redeemed.

         All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

                  (3) if less than all Outstanding Securities of a particular
         series are to be redeemed, the identification (and, in the case of
         partial redemption, the respective principal amounts) of the particular
         Securities to be redeemed, including the CUSIP number of such
         Securities,

                  (4) that on the Redemption Date the Redemption Price will
         become due and payable upon each such Security or portion thereof, and
         that interest thereon, if any (or in the case of OID Securities,
         original issue discount), shall cease to accrue on and after said date,

                  (5) the place or places where such Securities, together in the
         case of Bearer Securities with all coupons appertaining thereto, if
         any, maturing after the Redemption Date are to be surrendered for
         payment of the Redemption Price,

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

                  (7) that, unless otherwise specified in such notice, Bearer
         Securities of any series, if any, surrendered for redemption must be
         accompanied by all coupons maturing subsequent to the date fixed for
         redemption or the amount of any such missing coupon or coupons will be
         deducted from the Redemption Price or security or indemnity
         satisfactory to the Company, the Trustee for such series and any Paying
         Agent is furnished, and

                  (8) if Bearer Securities of any series are to be redeemed and
         any Registered Securities of such series are not to be redeemed, and if
         such Bearer Securities may be exchanged for Registered Securities not
         subject to redemption on this Redemption Date pursuant to Section 305
         or otherwise, the last date, as determined by the Company, on which
         such exchanges may be made.

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

Section 1105. Deposit of Redemption Price.

         At or prior to 10 a.m., New York City time, on any Redemption Date, the
Company shall deposit with the Trustee for the Securities to be redeemed or with
a Paying Agent for such Securities (or, if the Company is acting as its own
Paying Agent for such Securities, segregate and hold in trust as provided in
Section 1003) an amount of money in the currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such Series and except as provided in Sections
311(b) and 311(d)) sufficient to pay the principal amount of (and premium,

                                      -70-
<PAGE>
if any, thereon), and (except if the Redemption Date shall be an Interest
Payment Date) any accrued interest on, all the Securities which are to be
redeemed on that date.

Section 1106. Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified in the currency or currency unit in which the
Securities of such series are payable (except as otherwise provided pursuant to
Section 301 for the Securities of such series and except as provided in Sections
311(b) and 311(d)) and from and after such date (unless the Company shall
default in the payment of the Redemption Price) such Securities shall cease to
bear interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void. Upon surrender of such Security for redemption in accordance with said
notice together with all coupons, if any, appertaining thereto maturing after
the Redemption Date, such Security or specified portions thereof shall be paid
by the Company at the Redemption Price; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest, and provided, further, that unless
otherwise specified as contemplated by Section 301, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

         If any Bearer Security surrendered for redemption shall not be
accompanied by all coupons appertaining thereto maturing after the Redemption
Date, such Security may be paid after deducting from the Redemption Price an
amount equal to the face amount of all such missing coupons or the surrender of
such missing coupon or coupons may be waived by the Company if there is
furnished to the Company, the Trustee for such Security and any Paying Agent
such security or indemnity as they may require to save the Company, such Trustee
and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to such Trustee or any Paying Agent any such missing coupon in respect
of which a deduction shall have been made from the Redemption Price, such Holder
shall be entitled to receive the amount so deducted; provided, however, that
interest represented by coupons shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.

         If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Redemption Date at a rate per
annum equal to the rate borne by the Security (or, in the case of (i) OID
Securities, the Security's Yield to Maturity or (ii) Indexed Securities, the
rate determined in accordance with the specified terms of those Securities).

Section 1107. Securities Redeemed in Part.

         Any Registered Security which is to be redeemed only in part shall be
surrendered at the Place of Payment (with, if the Company or the Trustee for
such Security so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company, and the Security Registrar for
such Security duly executed by, the Holder thereof or his attorney duly
authorized in writing), and the Company shall execute and such Trustee shall
authenticate and deliver to the Holder of such Security without service charge,
a new Registered Security or Securities, of any authorized denomination as

                                      -71-
<PAGE>
requested by such Holder, of the same series and having the same terms and
provisions and in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Registered Security so surrendered.

Section 1108. Tax Redemption; Special Tax Redemption.

         (a) Unless otherwise specified pursuant to Section 301, Securities of
any series may be redeemed at the option of the Company in whole, but not in
part, on not more than 60 days' and not less than 30 days' notice, on any
Redemption Date at the Redemption Price specified pursuant to Section 301, if
the Company determines that (A) as a result of any change in or amendment to the
laws (or any regulations or rulings promulgated thereunder) of the United States
or of any political subdivision or taxing authority thereof or therein affecting
taxation, or any change in official position regarding application or
interpretation of such laws, regulations or rulings (including a holding by a
court of competent jurisdiction in the United States), which change or amendment
is announced or becomes effective on or after a date specified in Section 301
with respect to any Security of such series, the Company has or will become
obligated to pay additional amounts pursuant to Section 1010 with respect to any
Security of such series or (B) on or after a date specified in Section 301 with
respect to any Security of such series, any action has been taken by any taxing
authority of, or any decision has been rendered by a court of competent
jurisdiction in, the United States or any political subdivision or taxing
authority thereof or therein, including any of those actions specified in (A)
above, whether or not such action was taken or decision was rendered with
respect to the Company, or any change, amendment, application or interpretation
shall be officially proposed, which, in any such case, in the Opinion of Counsel
to the Company will result in a material probability that the Company will
become obligated to pay additional amounts with respect to any Security of such
series, and (C) in any such case specified in (A) or (B) above the Company, in
its business judgment, determines that such obligation cannot be avoided by the
use of reasonable measures available to the Company.

         (b) Unless otherwise specified pursuant to Section 301, if the Company
shall determine that any payment made outside the United States by the Company
or any of their Paying Agents of principal or interest due in respect of any
Bearer Security (an "Affected Security") of such series or any coupon
appertaining thereto would, under any present or future laws or regulations of
the United States, be subject to any certification, information or other
reporting requirement of any kind, the effect of which requirement is the
disclosure to the Company, any Paying Agent or any governmental authority of the
nationality, residence or identity (as distinguished from, for example, status
as a United States Alien) of a beneficial owner of such Affected Security of
such series or coupon that is a United States Alien (other than such a
requirement that (i) would not be applicable to a payment made by the Company,
or any one of their Paying Agents (A) directly to the beneficial owner or (B) to
a custodian, nominee or other agent of the beneficial owner, (ii) can be
satisfied by such custodian, nominee or other agent certifying to the effect
that such beneficial owner is a United States Alien; provided that, in each case
referred to in clauses (i)(B) or (ii), payment by such custodian, nominee or
other agent to such beneficial owner is not otherwise subject to any such
requirement (other than a requirement which is imposed on a custodian, nominee
or other agent described in item (iv) of this sentence), (iii) would not be
applicable to a payment made by at least one other Paying Agent of the Company
or (iv) is applicable to a payment to a custodian, nominee or other agent of the
beneficial owner of such Security who is a United States person (as hereinafter
defined), a controlled foreign corporation for United States tax purposes, a
foreign person 50 percent or more of the gross income of which for the
three-year period ending with the close of its taxable year preceding the year
of payment is effectively connected with a United States trade or business, or
is otherwise related to the United States), the Company shall elect by notice to
the Trustee for such series of Securities either (x) to redeem the Affected
Securities of such series, as a whole, at a redemption price equal to the
principal amount thereof, together with interest accrued to the date fixed for
redemption, or (y) if the conditions of the next succeeding paragraph are
satisfied, to pay the additional amounts

                                      -72-
<PAGE>
specified in such paragraph. The Company shall make such determination and
election as soon as practicable and give prompt notice thereof (the
"Determination Notice") in the manner described in Section 106 stating the
effective date of such certification, information or reporting requirement,
whether the Company has elected to redeem the Affected Securities of such series
or to pay the additional amounts specified in the next succeeding paragraph, and
(if applicable) the last date by which the redemption of the Affected Securities
of such series must take place, as provided in the next succeeding sentence. If
the Company elects to redeem the Affected Securities of such series, such
redemption shall take place on such date, not later than one year after the
giving of the Determination Notice, as the Company shall specify by notice to
such Trustee given not less than 45 nor more than 75 days before the Redemption
Date. Notice of such redemption of the Affected Securities of such series shall
be given to the Holders thereof not less than 30 days nor more than 60 days
prior to the Redemption Date. Notwithstanding the foregoing, the Company shall
not so redeem the Affected Securities of such series if the Company shall
subsequently determine by notice to the Trustee, not less than 30 days prior to
the Redemption Date, that subsequent payments on the Affected Securities of such
series would not be subject to any such certification, information or other
reporting requirement, in which case the Company shall give prompt notice of
such subsequent determination in the manner specified in Section 106 and any
earlier redemption notice shall be revoked and be of no further effect. The
right of the Holders of Affected Securities called for redemption to exchange
such Affected Securities for Registered Securities (which Registered Securities
will remain Outstanding following such redemption) will terminate on the
fifteenth day prior to the Redemption Date, and no further exchanges of Affected
Securities for Registered Securities shall be permitted unless the Company shall
have made the subsequent determination and given the notice referred to in the
preceding sentence. As used hereinabove, "United States person" means any
citizen or resident of the United States, any corporation, partnership or other
entity created or organized in or under the laws of the United States and any
estate or trust the income of which is subject to United States federal income
taxation regardless of its source.

         If and so long as the certification, information or other reporting
requirement referred to in the preceding paragraph would be fully satisfied by
payment of a withholding tax, backup withholding tax or similar charge, the
Company may elect by notice to the Trustee to pay such additional amounts as may
be necessary so that every net payment made outside the United States following
the effective date of such requirement by the Company or any of their Paying
Agents of principal (or premium, if any) or interest, if any, due in respect of
any Affected Security of such series or any coupon appertaining thereto to a
Holder who certifies that the beneficial owner is a United States Alien (but
without any requirement that the nationality, residence or identity of such
beneficial owner be disclosed to the Company, any Paying Agent or any
governmental authority), after deduction or withholding for or on account of
such withholding tax, backup withholding tax or similar charge (other than a
withholding tax, backup withholding tax or similar charge that (i) is the result
of a certification, information or other reporting requirement described in the
third parenthetical clause of the first sentence of the preceding paragraph or
(ii) is imposed as a result of presentation of any such Affected Security or
such coupon for payment more than 10 days after the date on which such payment
becomes due and payable or on which payment thereof was duly provided for,
whichever occurs later), will not be less than the amount provided in such
Affected Security or such coupon to be then due and payable. In the event the
Company elects to pay such additional amounts (the Company's election to
exercise such right to be evidenced by prompt notice to the Trustee for the
Securities of the appropriate series), the Company will have the right, at its
sole option, at any time, to redeem the Affected Securities of such series as a
whole, but not in part, at the Redemption Price, subject to the provisions of
the last four sentences of the immediately preceding paragraph. If the Company
has made the determination described in the preceding paragraph with respect to
certification, information or other reporting requirements applicable only to
interest and subsequently makes a determination in the manner and of the nature
referred to in such preceding paragraph with respect to such requirements
applicable to principal, the Company will redeem the Affected Securities of such
series in the manner and on the terms described in the preceding paragraph
unless the Company elects to have the provisions of

                                      -73-
<PAGE>
this paragraph apply rather than the provisions of the immediately preceding
paragraph. If in such circumstances the Affected Securities of such series are
to be redeemed, the Company shall have no obligation to pay additional amounts
pursuant to this paragraph with respect to principal (or premium, if any) or
interest accrued and unpaid after the date of the notice of such determination
indicating such redemption, but will be obligated to pay such additional amounts
with respect to interest accrued and unpaid to the date of such determination.
If the Company elects to pay additional amounts pursuant to this paragraph and
the condition specified in the first sentence of this paragraph should no longer
be satisfied, then the Company shall promptly redeem the Affected Securities of
such series in whole, but not in part, at the Redemption Price subject to the
provisions of the last four sentences of the immediately preceding paragraph. If
the Company elects to, or is required to, redeem the Affected Securities of such
series pursuant to this paragraph, it shall publish in the manner and to the
extent provided in Section 106 prompt notice thereof. If the Affected Securities
of such series are to be redeemed pursuant to this paragraph, the redemption
shall take place on such date, not later than one year after publication of the
notice of redemption, as the Company shall specify by notice to the Trustee for
such series of Securities at least 60 days prior to the Redemption Date. Any
redemption payments made by the Company pursuant to this paragraph shall be
subject to the continuing obligation of the Company to pay additional amounts
pursuant to this paragraph.

                                   ARTICLE 12

                                  SINKING FUNDS

Section 1201. Applicability of This Article.

         Redemption of Securities through operation of a sinking fund as
permitted or required by any form of Security issued pursuant to this Indenture
shall be made in accordance with such form of Security and this Article;
provided, however, that if any provision of any such form of Security shall
conflict with any provision of this Article, the provision of such form of
Security shall govern.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any particular series is herein referred to as a
"mandatory sinking fund payment", and any payment in excess of such minimum
amount provided for by the terms of Securities of any particular series is
herein referred to as an "optional sinking fund payment". If provided for by the
terms of Securities of any particular series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 1202. Each
sinking fund payment shall be applied to the redemption of Securities of any
particular series as provided for by the terms of Securities of that series.

Section 1202. Satisfaction of Sinking Fund Payments With Securities.

         The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, and
(2) may apply as a credit Securities of a series which have been redeemed either
at the election of the Company pursuant to the terms of such Securities or
through the application of permitted optional sinking fund payments pursuant to
the terms of such Securities, in each case in satisfaction of all or any part of
any sinking fund payment with respect to the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided, however, that such Securities have not been previously
so credited. Such Securities shall be received and credited for such purpose by
the Trustee for such Securities at the principal amount thereof and the amount
of such sinking fund payment shall be reduced accordingly.

                                      -74-
<PAGE>
Section 1203. Redemption of Securities for Sinking Fund.

         Not less than 60 days prior to each sinking fund payment date for any
particular series of Securities, the Company will deliver to the Trustee for the
Securities of such series an Officers' Certificate specifying the amount of the
next ensuing mandatory sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash in the currency or currency unit in which the Securities of that
series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of that series and except as provided in Sections 311(b) and
311(d)) and the portion thereof, if any, which is to be satisfied by delivering
and crediting Securities of that series pursuant to Section 1202 and shall state
the basis for such credit and that such Securities have not previously been so
credited and will also deliver to such Trustee any Securities to be so
delivered. Such Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.

                                   ARTICLE 13

                        MEETINGS OF HOLDERS OF SECURITIES

Section 1301. Purposes for Which Meetings May Be Called.

         If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.

Section 1302. Call, Notice and Place of Meetings.

         (a) The Trustee for any series of Securities that includes Bearer
Securities, may at any time call a meeting of the Holders of Securities of such
series for any purpose specified in Section 1301, to be held at such time and at
such place in the Borough of Manhattan, The City of New York, or in London, as
such Trustee shall determine. Notice of every meeting of Holders of Securities
of such series, setting forth the time and the place of such meeting and in
general terms the action proposed to be taken at such meeting, shall be given,
in the manner provided in Section 106, not less than 20 nor more than 180 days
prior to the date fixed for the meeting.

         (b) In case at any time the Company, pursuant to a Board Resolution, or
the Holders of at least 10% in principal amount of the Outstanding Securities of
any such series shall have requested the Trustee for any such series to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 1301, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and such Trustee shall not have made the
first publication of the notice of such meeting within 30 days after receipt of
such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Company or the Holders of Securities of such series in
the amount above specified, as the case may be, may determine the time and the
place in the Borough of Manhattan, The City of New York, or in London, for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in subsection (a) of this Section.

                                      -75-
<PAGE>
Section 1303. Persons Entitled to Vote at Meetings.

         To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (1) a Holder of one or more Outstanding Securities of
such series, or (2) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more Outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee for such series and its counsel and any representatives of the Company
and its counsel.

Section 1304. Quorum; Action.

         The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series. In the absence of a quorum within 30
minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Securities of such series, be dissolved.
In any other case the meeting may be adjourned for a period of not less than 10
days as determined by the chairman of the meeting prior to the adjournment of
such meeting. In the absence of a quorum at any such adjourned meeting, such
adjourned meeting may be further adjourned for a period of not less than 10 days
as determined by the chairman of the meeting prior to the adjournment of such
adjourned meeting. Subject to Section 1305(d), notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1302(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly that Persons entitled to vote a majority
in principal amount of the Outstanding Securities of such series shall
constitute a quorum.

         Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted by the affirmative vote of the Holders of a
majority in principal amount of the Outstanding Securities of that series;
provided, however, that except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action which this Indenture expressly provides
may be made, given or taken by the Holders of a specified percentage which is
less than a majority in principal amount of the Outstanding Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Securities
of that series.

         Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series and the related coupons,
whether or not present or represented at the meeting.

Section 1305. Determination of Voting Rights; Conduct and Adjournment of
Meetings.

         (a) Notwithstanding any other provision of this Indenture, the Trustee
for any series of Securities that includes Bearer Securities may make such
reasonable regulations as it may deem advisable for any meeting of Holders of
Securities of such series in regard to proof of the holding of Securities of
such series and of the appointment of proxies and in regard to the appointment
and duties of inspectors of votes, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as it shall deem appropriate. Except as
otherwise permitted or required by any such regulations, the holding of
Securities shall be proved in the manner specified in Section 104 and the
appointment of any proxy shall be proved in the manner

                                      -76-
<PAGE>
specified in Section 104 or by having the signature of the person
executing the proxy witnessed or guaranteed by any trust company, bank or banker
authorized by Section 104 to certify to the holding of Bearer Securities. Such
regulations may provide that written instruments appointing proxies, regular on
their face, may be presumed valid and genuine without the proof specified in
Section 104 or other proof.

         (b) The Trustee for any series of Securities that includes Bearer
Securities shall, by an instrument in writing, appoint a temporary chairman of
the meeting, unless the meeting shall have been called by the Company or by
Holders of Securities as provided in Section 1302(b), in which case the Company
or the Holders of Securities of the series calling the meeting, as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by vote of the Persons
entitled to vote a majority in principal amount of the Outstanding Securities of
such series represented at the meeting.

         (c) At any meeting each Holder of a Security of such series or proxy
shall be entitled to one vote for each $1,000 principal amount of Securities of
such series held or represented by him as determined in accordance with Section
115; provided, however, that no vote shall be cast or counted at any meeting in
respect of any Security challenged as not Outstanding and ruled by the chairman
of the meeting to be not Outstanding. The chairman of the meeting shall have no
right to vote, except as a Holder of a Security of such series or proxy.

         (d) Any meeting of holders of Securities of any series duly called
pursuant to Section 1302 at which a quorum is present may be adjourned from time
to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

Section 1306. Counting Votes and Recording Action of Meetings.

         The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1302 and, if
applicable, Section 1304. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee for such
series of Securities to be preserved by such Trustee, the latter to have
attached thereto the ballots voted at the meeting. Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

                                      * * *

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

                                      -77-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Indenture dated
as of November , 2001 to be duly executed, all as of November  , 2001.

                              THE READER'S DIGEST ASSOCIATION, INC.,
                                Issuer

                              By:
                                 _____________________________
                                    Name:
                                    Title:

                              JPMORGAN CHASE BANK,
                                Trustee

                              By:
                                 _____________________________
                                   Name:
                                   Title:

                                      -78-
<PAGE>
                                                                       EXHIBIT A

[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE A DEFINITIVE BEARER SECURITY IN
EXCHANGE FOR AN INTEREST IN A TEMPORARY GLOBAL SECURITY OR TO EXCHANGE AN
INTEREST IN A TEMPORARY GLOBAL SECURITY FOR AN INTEREST IN A PERMANENT GLOBAL
SECURITY]

                      THE READER'S DIGEST ASSOCIATION, INC.

                   [INSERT TITLE OR DESCRIPTION OF SECURITIES]

Reference is hereby made to the Indenture, dated as of November , 2001 (the
"Indenture") between The Reader's Digest Association Inc. (the "Company") and
JPMorgan Chase Bank, as Trustee. Terms used herein unless otherwise defined
shall have the meanings ascribed to them in the Indenture.

         This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:

                  (i) beneficially owned by persons that are not United States
         persons (as defined below);

                  (ii) owned by United States person(s) that are (a) foreign
         branches of United States financial institutions (as defined in United
         States Treasury Regulation Section 1.165-12(c)(1)(v) ("financial
         institutions")) purchasing for their own account or for resale, or (b)
         United States person(s) who acquired the beneficial interest in the
         temporary Global Security through foreign branches of United States
         financial institutions and who hold the beneficial interest in the
         temporary Global Security through such United States financial
         institutions on the date hereof (and in either case (a) or (b), each
         such United States financial institution hereby agrees, for the benefit
         of the Company, that it will comply with the requirements of Section
         165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of
         1986, as amended, and the regulations thereunder); or

                  (iii) owned by financial institution(s) for the purpose of
         resale during the restricted period (as defined in United States
         Treasury Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition,
         financial institution(s) described in this clause (iii) (whether or not
         also described in clause (i) or (ii)), further certify that they have
         not acquired the beneficial interest in the temporary Global Security
         for the purpose of resale directly or indirectly to a United States
         person or to a person within the United States.

         "United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).
<PAGE>
         [This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
exchange of such portion of the temporary Global Security for [definitive Bearer
Securities] [interests in a permanent Global Security] cannot be made until we
are able to provide a certificate in this form.]* We undertake to advise you
promptly by tested telex on or prior to the date on which you intend to submit
your certification relating to the above-captioned Securities held by you for
our account if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this
certification applies as of such date.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated:

_________________________

                                 [Name of Person Making Certification]

                                 By:
                                   _____________________________________________

*  Delete if inappropriate.
<PAGE>
                                                                       EXHIBIT B

[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING THE EXCHANGE OF A TEMPORARY GLOBAL SECURITY FOR DEFINITIVE
SECURITIES OR FOR A PORTION OF A PERMANENT GLOBAL SECURITY]

                        THE READER'S DIGEST ASSOCIATION, INC.

                   [INSERT TITLE OR DESCRIPTION OF SECURITIES]

         Reference is hereby made to the Indenture, dated as of November , 2001
(the "Indenture") between The Reader's Digest Association, Inc. (the "Company")
and JPMorgan Chase Bank, as Trustee. Terms used herein unless otherwise defined
shall have the meanings ascribed to them in the Indenture.

         We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities which is herewith submitted to be exchanged for
[definitive Bearer Securities] [interests in a permanent Global Security] (the
"Submitted Portion") as provided in the Prospectus Supplement dated [insert date
of Prospectus Supplement] in respect of such issue. This is to certify that (i)
we have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section
1.163-5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the
entire Submitted Portion, substantially in the form of Exhibit A to the
Indenture, and (ii) the Submitted Portion includes no part of the temporary
Global Security excepted in such certificates.

         We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.
<PAGE>
         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States of America. If
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate or a copy thereof to any interested party in
such proceedings. Submitted Portion:

U.S. $
      _____________________

Date:
      _____________________

[Euroclear Bank S.A./N.V., as operator of the Euroclear System] [Clearstream]*

                                By:
                                     ___________________________________________

*  Delete if inappropriate.
<PAGE>
                                                                       EXHIBIT C

[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE PAYMENT ON A TEMPORARY GLOBAL SECURITY]

                     THE READER'S DIGEST ASSOCIATION, INC.

                   [INSERT TITLE OR DESCRIPTION OF SECURITIES]

         Reference is hereby made to the Indenture, dated as of November , 2001
(the "Indenture") between The Reader's Digest Association, Inc. (the "Company")
and JPMorgan Chase Bank, as Trustee. Terms used herein unless otherwise defined
shall have the meanings ascribed to them in the Indenture.

         This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:

                  (i) beneficially owned by persons that are not United States
         persons (as defined below);

                  (ii) owned by United States person(s) that are (a) foreign
         branches of United States financial institutions (as defined in United
         States Treasury Regulation Section 1.165-12(c)(1)(v) ("financial
         institutions")) purchasing for their own account or for resale, or (b)
         United States person(s) who acquired the beneficial interest in the
         temporary Global Security through foreign branches of United States
         financial institutions and who hold the beneficial interest in the
         temporary Global Security through such United States financial
         institutions on the date hereof (and in either case (a) or (b), each
         such United States financial institution hereby agrees, for the benefit
         of the Company, that it will comply with the requirements of Section
         165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of
         1986, as amended, and the regulations thereunder); or

                  (iii) owned by financial institution(s) for the purpose of
         resale during the restricted period (as defined in United States
         Treasury Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition,
         financial institution(s) described in this clause (iii) (whether or not
         also described in clause (i) or (ii)), further certify that they have
         not acquired the beneficial interest in the temporary Global Security
         for the purpose of resale directly or indirectly to a United States
         person or to a person within the United States.

         "United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).
<PAGE>
           [This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
payments, if any, due with respect to such portion of the temporary Global
Security cannot be made until we are able to provide a certificate in this
form.]*

         We undertake to advise you promptly by tested telex on or prior to the
date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account if any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated:
      _____________________

                               [Name of Person Making Certification]

                               By:
                                  ___________________________________

      _____________________
*  Delete if inappropriate.
<PAGE>
                                                                       EXHIBIT D

[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING PAYMENT ON A TEMPORARY GLOBAL SECURITY]

                        THE READER'S DIGEST ASSOCIATION, INC.

                   [INSERT TITLE OR DESCRIPTION OF SECURITIES]

         Reference is hereby made to the Indenture, dated as of November , 2001
(the "Indenture") between The Reader's Digest Association, Inc. (the "Company")
and JPMorgan Chase Bank, as Trustee. Terms used herein unless otherwise defined
shall have the meanings ascribed to them in the Indenture.

         We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities for which we hereby request that you make payment
to us of the amounts payable on the relevant payment date (the "Submitted
Portion") as provided in the Prospectus Supplement dated [insert date of
Prospectus Supplement] in respect of such issue. This is to certify that (i) we
have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section 1.163-
5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the entire
Submitted Portion, substantially in the form of Exhibit C to the Indenture, and
(ii) the Submitted Portion includes no part of the temporary Global Security
excepted in such certificates.

         We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States of America. If
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate or a copy thereof to any interested party in
such proceedings.
<PAGE>
Submitted Portion:

U.S. $
      _____________________

Dated:
      _____________________

                               Euroclear Bank S.A./N.V., as
                               operator of the Euroclear System]*
                               [Clearstream]*

                               By:
                                  _____________________________________

      _____________________
*  Delete if inappropriate.

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