Document:

<PAGE>   1
                                                                   EXHIBIT 10(u)
                               HARSCO CORPORATION

              DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS
                     (AS AMENDED AND RESTATED JUNE 27, 2000)

         Harsco Corporation (the "Corporation") hereby adopts this Deferred
Compensation Plan for Non-Employee Directors (the "Plan") pursuant to which
eligible members of its Board of Directors may elect to defer receipt of all or
any portion of the compensation payable to them for services rendered to the
Corporation as Directors.

         1. Eligible Directors. The Directors of the Corporation eligible to
make deferral elections under this Plan shall be those Directors who are not
actively employed officers or employees of the Corporation or of any of its
subsidiaries or affiliates (hereinafter referred to individually as a
"Non-Employee Director" and collectively as the "Non-Employee Directors").

         2. Deferrable Compensation. A Non-Employee Director may elect to defer
receipt of all, any part or none of the aggregate compensation payable by the
Corporation for services rendered as a Director, including the annual base
retainer, Committee Chairman annual retainer increment, attendance fees for
board and committee meetings, and other fees for special services (in the
aggregate, the "Director's Fees").

         3. Election to Defer. A Non-Employee Director who desires to defer
receipt of all or a portion of his Director's Fees in any calendar year shall so
notify the Corporation's Pension Committee in writing on or before December 31
of the prior calendar year, specifying on a form supplied by the Committee (a)
the dollar amount or percentage of the Director's Fees to be deferred, (b) the
deferral period, (c) the form of payment, and (d) the notional investment
direction. Elections to take effect with respect to the initial year of this
Plan may be made by Non-Employee Directors until the first regularly scheduled
Board of Directors meeting in 1995. A newly-appointed Non-Employee Director
shall be eligible to defer payment of future Director's Fees by so

                                       1
<PAGE>   2
notifying the Pension Committee on the appropriate form at any time within 30
days of his appointment to the Board of Directors. The elections made pursuant
to this Paragraph shall be irrevocable with respect to those Director's Fees to
which such elections pertain and shall also apply to Director's Fees payable in
subsequent calendar years unless the Non-Employee Director notifies the Pension
Committee in writing, on or before December 31, that different elections shall
apply with respect to Director's Fees payable during the immediately following
calendar year. Such new elections shall likewise continue in effect and apply to
subsequent calendar years until similarly changed.

         4. Non-Deferred Compensation. Any Director's Fees not deferred under
this Plan shall be paid in accordance with normal Corporation policy.

         5. Deferred Compensation Accounts and Notional Investment Directions.

                  (a) Accounts: At the time a Non-Employee Director elects to
defer the receipt of compensation pursuant to Paragraph 3 above, he shall also
direct the amount of the deferral to be notionally invested in an
Interest-Bearing Account and the amount to be notionally invested in a Harsco
Stock Account. Pursuant to such investment direction, the deferral amounts shall
be credited to the appropriate accounts as set forth below:

                  (i) Interest-Bearing Account: To the extent that a
Non-Employee Director elects a notional investment in an Interest-Bearing
Account, the Corporation shall, on the business day the Director's Fees would
have been paid absent the deferral election, credit an Interest-Bearing Account
established in his name with the amount of the deferred Director's Fees to be so
invested.

                  (ii) Harsco Stock Account: To the extent that a Non-Employee
Director elects a notional investment in a Harsco Stock Account, the Corporation
shall, on the business day the Director's Fees would have been paid absent the
deferral

                                       2
<PAGE>   3
election, credit a Harsco Stock Account established in his name with units
(including fractions), the number of which shall be obtained by dividing the
amount of the deferred Director's Fees to be so invested by the Fair Market
Value of the Corporation's common stock. These units, thus calculated, are
hereinafter referred to as "Stock Equivalents." For purposes of the Plan, Fair
Market Value of a share of the Corporation's common stock on any date shall be
equal to the mean between the high and low prices at which such shares were
traded on the New York Stock Exchange ("NYSE") on such date, or, if no sales
were quoted on such date, on the most recent preceding date on which sales were
quoted. In the event of any change in the common stock of the Corporation by
reason of any stock dividend, recapitalization, reorganization, merger,
consolidation, split-up, combination or exchange of shares, or a rights offering
to purchase common stock at a price substantially below Fair Market Value, or of
any similar change affecting the common stock, the value and attributes of each
Stock Equivalent shall be appropriately adjusted consistent with such change to
the same extent as if such Stock Equivalents were issued and outstanding shares
of common stock of the Corporation.

                  (b) Earnings: The Corporation shall credit earnings to each
account as follows:

                  (i) Interest-Bearing Account: As of the last day of each
calendar month, the Corporation shall credit as earnings to each
Interest-Bearing Account established on behalf of a Non-Employee Director an
amount equal to the Five Year U.S. Treasury Note Percentage Rate multiplied by
the average daily balance in such Interest-Bearing Account during such calendar
month. Such Five Year U.S. Treasury Note Percentage Rate shall be equal to one
twelfth (1/12) of the yield on U.S. Treasury Notes having a maturity date five
(5) years hence as listed in The Wall Street Journal or any successor
publication, as of market closing on the first day of the calendar quarter which
includes that month.

                  (ii) Harsco Stock Account: As of each quarterly dividend
payment date, the Corporation shall credit as earnings to each Harsco Stock
Account an amount equal

                                       3
<PAGE>   4
to the cash dividends payable on such date with respect to that number of shares
(including fractional shares) of its common stock equal to the number of Stock
Equivalents credited to the Harsco Stock Account on the relevant dividend record
date. The amount so credited shall then be converted into additional Stock
Equivalents in the manner described earlier using the dividend payment date as
the valuation date.

         6. Deferral Period. At the time a Non-Employee Director elects to defer
the receipt of compensation pursuant to Paragraph 3 above, he shall indicate the
deferral period applicable to such deferred compensation by specifying the year
(the "Payment Year") in which the deferred amounts are to be paid in a lump sum
or in which installment payments shall commence; provided, however, that in no
event shall the Payment Year be later than the year following the year in which
the Non-Employee Director will attain age 72.

         7. Form of Payment of Deferred Compensation. Initial payments made
under the Plan shall be based upon the aggregate balance in a Non-Employee
Director's account(s) determined on the first business day of the Payment Year.
The balance in the Non-Employee Director's Interest-Bearing Account shall be the
dollar amount credited to such account as of the first business day of the
Payment Year. The balance in the Non-Employee Director's Stock Account shall be
the dollar amount determined by multiplying the Stock Equivalents credited to
such account on the first business day of the Payment Year by the Fair Market
Value of a share of common stock of the Corporation on such date. The aggregate
balance as thus determined shall be paid to him in cash either in a lump sum
within 30 days following the first business day of the Payment Year or in up to
ten (10) annual installments commencing with the Payment Year as specified in
the election to defer made pursuant to Paragraph 3 above. If an election to
receive installment payments is made, the Non-Employee Director shall receive
the first installment within 30 days following the first business day of the
Payment Year in an amount equal to the aggregate balance in his account(s)
divided by the number of years in the installment payment period. Subsequent
installments shall be computed and paid in similar fashion; provided, however,
that

                                       4
<PAGE>   5
pending distributions in the second through final years of the installment
payment period, the aggregate balance in the Non-Employee Director's account(s)
shall be deemed to be invested in an Interest-Bearing Account and in a Harsco
Stock Account, as applicable, in the same proportion as deferred amounts under
the Plan were notionally invested on the first business day of the Payment Year,
and increased by earnings accordingly. Exhibit A attached hereto presents an
example illustrating how such a calculation is made.

         8.       Early Withdrawal.

                  (a) In the event of an "Early Withdrawal", all or part of the
amounts credited to the account(s) of a Non-Employee Director under the Plan,
net of the forfeited amount described in (c) below, shall be payable to the
Non-Employee Director in a single lump sum notwithstanding the deferral period
and form of payment specified pursuant to Paragraph 3 above.

                  (b) For purposes of the Plan, an "Early Withdrawal" shall have
occurred if:

                      (i) Written Notice: A Non-Employee Director notifies the
Corporation's Pension committee in writing at least 30 days in advance of the
proposed withdrawal date that he wishes to make an Early Withdrawal.

                      (ii) Designation of Amounts: The notice described in (a)
above shall be made on a form supplied by the Pension Committee which shall
require, at minimum, that the Non-Employee Director specify the amount of the
withdrawal (subject to the limitations in (iii) below) and whether the full
amount of the withdrawal is to be taken from the Non-Employee Director's
Interest-Bearing Account or Harsco Stock Account or apportioned between them.

                      (iii) Minimum Amount: The amount to be withdrawn shall
equal at least fifty-percent (50%) of the aggregate balance of the Non-Employee
Director's

                                       5
<PAGE>   6
account(s) determined as of the first business day of the calendar month
immediately preceding the calendar month of the withdrawal date. Such minimum
amount shall be determined without regard to the forfeited amount described in
(c) below.

                  (c) In the event of an Early Withdrawal, the Non-Employee
Director shall forfeit from the amount withdrawn an amount equal to ten-percent
(10%) of the amount withdrawn. The Non-Employee Director and the Non-Employee
Director's designated beneficiary shall not have any right or claim to the
forfeited amount, and the Corporation shall have no obligation whatsoever to the
Non-Employee Director, the Non-Employee Director's designated beneficiary or any
other person with regard to the forfeited amount.

                  (d) If a Non-Employee Director seeks to make an Early
Withdrawal at a time when the Non-Employee Director is subject to Section 16 of
the Securities Exchange Act ("Exchange Act"), the Non-Employee Director shall be
responsible for determining whether such Early Withdrawal may be considered a
nonexempt sale under Section 16 of the Exchange Act and shall be subject to any
liability which may result therefrom.

         9.       Change in Control.

                  (a) In the event of a "Change in Control" of the Corporation
followed by a Non-Employee Director's cessation of service to the Corporation as
a Director, all amounts credited to the account(s) of the Non-Employee Director
under the Plan shall be immediately due and payable to the Non-Employee Director
in a single lump sum notwithstanding the deferral period and form of payment
specified pursuant to Paragraph 3 above.

                  (b) For purposes of this Plan, a "Change in Control" shall
have occurred if:

                                       6
<PAGE>   7
                  (i) Stock Acquisition. Any "person" (as such term is used in
Section 13(d) and 14(d) (2) of the Exchange Act), other than the Corporation or
a corporation a majority of whose outstanding stock entitled to vote is owned,
directly or indirectly, by the Corporation, is or becomes, other than by
purchase from the Corporation or such a corporation, the "beneficial owner" (as
such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing 20% or more of the
combined voting power of the Corporation's then outstanding voting securities.
Such a Change in Control shall be deemed to have occurred on the first to occur
of the business day immediately preceding the date securities are first
purchased by a tender or exchange offer, or the date on which the Corporation
first learns of the acquisition of 20% of such securities, or the earlier of the
business day immediately preceding the effective date of an agreement for the
merger, consolidation or other reorganization of the Corporation or the date of
approval thereof by the stockholder of the Corporation, as the case may be.

                  (ii) Change in Board. During any period of two consecutive
years, individuals who at the beginning of such period were members of the Board
of Directors, and any new director whose election by the Board or nomination for
election by the Corporation's stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
of the Board of Directors. Such a Change in Control shall be deemed to have
occurred on the date upon which the requisite majority of directors fails to be
elected by the stockholders of the Corporation.

                  (iii) Other Events. There occurs a change in control of the
Corporation of a nature that would be required to be reported as such in
response to Item 1(a) of the Current Report on Form 8-K pursuant to Section 13
of 15(d) of the Exchange Act, or any successor provision to such Item relating
to a "change in control," or in any other filings under the Exchange Act.

                                       7
<PAGE>   8
         10. Designation of Beneficiary. If a Non-Employee Director dies prior
to receiving the entire balance of his account(s) under the Plan, any balance
remaining in his account(s) shall be paid in a lump sum as soon as practicable
to the Non-Employee Director's designated beneficiary or, if the Non-Employee
Director has not designated a beneficiary or the designated beneficiary is dead,
then to his estate. Any designation of a beneficiary may be revoked or modified
at any time by the Non-Employee Director, except that no designation shall be
recognized as valid unless properly filed with the Pension Committee during the
lifetime of the Non-Employee Director while he is legally competent.

         11. Withholding of Taxes. The rights of a Non-Employee Director to
payments or credits under this Plan shall be subject to the Corporation's
obligations, if any, to withhold income or other taxes from such payments.

         12. Status of Plan. This Plan is a nonqualified deferred compensation
plan covering no employees of the Corporation. As such, the Plan is exempt from
the requirements of the Employee Retirement Income Security Act of 1974, as
amended. The Corporation intends that the Plan shall at all times be maintained
on an unfunded basis for federal income tax purposes. Hence, all payments from
this Plan shall be made from the general assets of the Corporation. This Plan
shall not require the Corporation to set aside, segregate, earmark, pay into a
trust or special account or otherwise restrict the use of its assets in the
operation of its business. A Non-Employee Director (or, if applicable, his
designated beneficiary) shall have no greater right or status than as an
unsecured general creditor of the Corporation with respect to any amounts owed
hereunder.

         13. Rights Nonassignable. All payments to persons entitled to benefits
hereunder shall be made to such persons and shall not be grantable, transferable
or otherwise assignable in anticipation of payment thereof, in whole or in part,
by the voluntary or involuntary acts of any such persons or by operation of law
subject to

                                       8
<PAGE>   9
garnishment, execution, attachment or any other similar legal process of
creditors of such persons.

         14. Administration. Full power and authority to construe, interpret and
administer this Plan shall be vested in the Corporation's Pension Committee. The
Pension Committee shall have full power and authority to make each determination
provided for in this Plan. All determinations made by the Pension Committee
shall be conclusive and binding upon the Company and any other party claiming
rights hereunder.

         15. Termination. The Board of Directors may, in its discretion,
terminate this Plan at any time. Upon termination of the Plan, benefits shall be
paid in accordance with the deferral elections made by the Non-Employee
Director; provided, however, that the Pension Committee shall have the right to
determine the total amount payable to each Non-Employee Director (or, if
applicable, his beneficiary) and to cause the amount so determined to be paid in
lump sum, thereby discharging the Corporation from any further liability or
obligation under this Plan.

         16. Amendment. The Board of Directors may, in its discretion, amend
this Plan from time to time. In addition, the Pension Committee may from time to
time amend this Plan to make such administrative changes as it may deem
necessary or desirable. No such amendment shall divest any Non-Employee Director
(or person claiming through him) of any rights to amounts previously credited to
his accounts hereunder.

         17. Incompetency. If a person to receive payment hereunder is deemed by
the Pension Committee or is adjusted to be legally incompetent, the payments
shall be made to the duly appointed guardian of such incompetent, or they may be
made to such person or persons who the Pension Committee believes are caring for
or supporting such incompetent; and the receipt thereof by such person or
persons shall constitute complete satisfaction of the Company's obligations
under this Plan.

                                       9
<PAGE>   10
         18. Expenses. The expenses of administering this Plan shall be borne by
the Corporation.

         19. Gender. The masculine pronoun shall be deemed to include the
feminine, and the singular to include the plural, unless a different meaning is
plainly required by context.

         20. Governing Law. This Plan shall be construed, administered and
enforced according to the laws of the Commonwealth of Pennsylvania.

         21. Effective Date. The effective date of this Plan is January 1, 1995
and shall apply with respect to the Director's Fees payable by the Corporation
in respect of services performed on or after such date.

Executed this            day of             , 2001.
              ----------        ------------

ATTEST:                                                HARSCO CORPORATION

-------------------------------------------            -------------------------
Paul C. Coppock                                        Derek C. Hathaway
Senior Vice President, Chief Administrative            Chairman, President and
Officer, General Counsel and Secretary                 Chief Executive Officer

                                       10
<PAGE>   11
                                                                     "Exhibit A"
                           Deferred Compensation Plan
                           for Non-Employee Directors

                                     Example

                  This example, prepared for illustrative purposes only,
describes the operation of the installment payout option set forth in Paragraph
7 of the Plan.

                  Director Green, age 62, elects to defer all of his Director
Fees until the year following the year he attains age 72. During his service as
a Director, Green directs 60% of his Fees to be invested in the Harsco Stock
Account (HSA) and 40% to be invested in the Interest-Bearing Account (IBA).
Pursuant to Green's prior direction, his accounts are to be paid out in three
annual installments. If Green attains age 72 in 2004 his installment should be
calculated and paid as follows:

                  1st Installment

                  - When paid - Within 30 days of the first business day (assume
January 2) in 2005.

                  - How much - First installment equals one-third of the
aggregate dollar value of Green's accounts as of January 2, 2005. Assume Green's
HSA on January 2, 2005 is credited with 1,000 Stock Equivalents and the FMV of a
share of Harsco common stock on such date is $60, thus giving his HSA a value of
$60,000. Assume further, that as of January 2, 2005, Green's IBA is credited
with $30,000 (representing his prior deferrals plus interest). Accordingly,
Green's first installment should equal $30,000 ($90,000 aggregate account
balance value divided by 3).

                  - Balance in Account after 1st Installment - In order to
continue the 60/40 proportionality going forward, the $60,000 in remaining value
under the Plan should result in the HSA holding 60% of that value and the IBA
holding the remaining 40%. Thus, as of January 2, 2005, the HSA is debited
333.33 shares leaving 666.66 shares (which at $60 FMV equal $40,000) and the IBA
is debited $10,000, thus leaving $20,000.

                  2nd Installment

                  - When paid - Within 30 days of January 2, 2006.

                  - How much - Second installment equals one-half of the
aggregate dollar value of Green's accounts as of January 2, 2006. Assume that as
of this date, Green's HSA was credited with 700 Stock Equivalents (666.66 from
prior year plus 33.34 new units attributable to dividends in the interim) and
that the FMV of a share of Harsco stock on that date was $62. Thus, Green's HSA
would be worth $43,400 at

                                       11
<PAGE>   12
January 2, 2006. Assume further that Green's IBA was worth $21,000 ($20,000 from
prior year plus interim interest of $1,000). Green's second installment would
thus equal $32,200 ($43,400 + $21,000 + 2).

                  - Balance is Accounts after 2nd Installment - The same
methodology would be used again to retain the 60/40 proportionality. As of
January 2, 2006, the combined value of HSA and the IBA was worth $64,400, and
after the payout of half this amount, the combined value was $32,200. This means
that the HSA would have 60% of the total value (or $19,320) and the IBA should
have 40% (or $12,880). Thus, the HSA should be debited 38.39 shares
(representing $24,080 or 3888.39 x $62 FMV/share) leaving 311.61 shares (or
$19,320 in value). The IBA should be debited $8,120, leaving $12,880.

                  3rd and Last Installment

                  - When paid - Within 30 days of January 2, 2007.

                  - How much - Calculate value of both HSA and IBA as of January
2, 2007 (as described above) and pay out total.

                                       12<PAGE>   1
                                                                     EXHIBIT 4.2

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

                                  PENTAIR, INC.

                                       TO

                         U.S. BANK NATIONAL ASSOCIATION,

                                   AS TRUSTEE

                                   ----------

                                    INDENTURE

                            DATED AS OF JUNE 1, 1999

                                   ----------
================================================================================

                                  PENTAIR, INC.

         Reconciliation and tie between Trust Indenture Act of 1939 and
                       Indenture, dated as of June 1, 1999

<PAGE>   2

<TABLE>
<CAPTION>
Trust Indenture
   Act Section                                               Indenture Section
---------------                                              -----------------
<S>                                                          <C>
Section 310 (a)(1) ..........................................            609
            (a)(2) ..........................................            609
            (a)(3) .......................................... Not Applicable
            (a)(4) .......................................... Not Applicable
            (a)(5) ..........................................            609
            (b) .............................................       608, 610
Section 311 .................................................            613
Section 312 (a) .............................................     701, 702(a)
            (b) .............................................          702(b)
            (c) .............................................          702(c)
Section 313 .................................................            703
Section 314 (a) .............................................            704
            (b) ............................................. Not Applicable
            (c)(1) ..........................................            102
            (c)(2) ..........................................            102
            (c)(3) .......................................... Not Applicable
            (d) ............................................. Not Applicable
            (e) .............................................            102
Section 315 (a) .............................................            601
            (b) .............................................            602
            (c) .............................................            601
            (d) .............................................            601
            (e) .............................................            514
Section 316 (a) .............................................            101
            (a)(1)(A) .......................................       502, 512
            (a)(1)(B) .......................................            513
            (a)(2) .......................................... Not Applicable
            (b) .............................................            508
Section 317 (a)(1) ..........................................            503
            (a)(2) ..........................................            504
            (b) .............................................           1003
Section 318 (a) .............................................            107
</TABLE>

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

<PAGE>   3

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                       <C>
RECITALS OF THE COMPANY....................................................................................1

ARTICLE ONE     DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION ...................................1

        SECTION 101.  Definitions..........................................................................1
        SECTION 102.  Compliance Certificates and Opinions.................................................8
        SECTION 103.  Form of Documents Delivered to Trustee...............................................9
        SECTION 104.  Acts of Holders......................................................................9
        SECTION 105.  Notices, Etc., to Trustee and Company...............................................10
        SECTION 106.  Notice to Holders; Waiver...........................................................10
        SECTION 107.  Compliance with Trust Indenture Act.................................................11
        SECTION 108.  Effect of Headings and Table of Contents............................................11
        SECTION 109.  Successors and Assigns..............................................................11
        SECTION 110.  Separability Clause.................................................................11
        SECTION 111.  Benefits of Indenture...............................................................11
        SECTION 112.  Governing Law.......................................................................12
        SECTION 113.  Legal Holidays......................................................................12

ARTICLE TWO     SECURITY FORMS............................................................................12

        SECTION 201.  Forms Generally.....................................................................12
        SECTION 202.  Form of Face of Security............................................................13
        SECTION 203.  Form of Reverse of Security.........................................................15
        SECTION 204.  Form of Trustee's Certificate of Authentication.....................................19
        SECTION 205.  Form of Legend for Global Securities................................................19

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

        SECTION 301.  Amount Unlimited; Issuable in Series................................................19
        SECTION 302.  Denominations.......................................................................22
        SECTION 303.  Execution, Authentication, Delivery and Dating......................................22
        SECTION 304.  Temporary Securities................................................................24
        SECTION 305.  Registration, Registration of Transfer and Exchange.................................25
        SECTION 306.  Mutilated, Destroyed, Lost and Stolen Securities....................................26
        SECTION 307.  Payment of Interest; Interest Rights Preserved......................................27
        SECTION 308.  Persons Deemed Owners...............................................................28
        SECTION 309.  Cancellation........................................................................28
        SECTION 310.  Computation of Interest.............................................................29
        SECTION 311.  Payment to be in Proper Currency....................................................29

ARTICLE FOUR    SATISFACTION AND DISCHARGE................................................................29

        SECTION 401. Satisfaction and Discharge of Indenture..............................................29
        SECTION 402.  Application of Trust Money..........................................................30
        SECTION 403.  Defeasance and Discharge of Indenture...............................................31

ARTICLE FIVE    REMEDIES..................................................................................32

        SECTION 501.  Events of Default...................................................................32
        SECTION 502.  Acceleration of Maturity; Rescission and Annulment..................................34
        SECTION 503.  Collection of Indebtedness and Suits for Enforcement by Trustee.....................35
        SECTION 504. Trustee May File Proofs of Claim.....................................................35
        SECTION 505.  Trustee May Enforce Claims Without Possession of Securities.........................36
</TABLE>

<PAGE>   4

<TABLE>
<S>                                                                                                      <C>
        SECTION 506.  Application of Money Collected......................................................36
        SECTION 507.  Limitation on Suits.................................................................37
        SECTION 508.  Unconditional Right of Holders to Receive Principal, Premium and Interest...........37
        SECTION 509.  Restoration of Rights and Remedies..................................................38
        SECTION 510.  Rights and Remedies Cumulative......................................................38
        SECTION 511.  Delay or Omission Not Waiver........................................................38
        SECTION 512.  Control by Holders..................................................................38
        SECTION 513.  Waiver of Past Defaults.............................................................39
        SECTION 514.  Undertaking for Costs...............................................................39
        SECTION 515.  Waiver of Stay or Extension Laws....................................................40

ARTICLE SIX     THE TRUSTEE...............................................................................40

        SECTION 601.  Certain Duties and Responsibilities.................................................40
        SECTION 602.  Notice of Defaults..................................................................40
        SECTION 603.  Certain Rights of Trustee...........................................................40
        SECTION 604.  Not Responsible for Recitals or Issuance of Securities..............................42
        SECTION 605.  May Hold Securities.................................................................42
        SECTION 606.  Money Held in Trust.................................................................42
        SECTION 607.  Compensation and Reimbursement......................................................42
        SECTION 608.  Disqualification; Conflicting Interests.............................................43
        SECTION 609.  Corporate Trustee Required; Eligibility.............................................43
        SECTION 610.  Resignation and Removal; Appointment of Successor...................................43
        SECTION 611.  Acceptance of Appointment by Successor..............................................45
        SECTION 612.  Merger, Conversion, Consolidation or Succession to Business.........................46
        SECTION 613.  Preferential Collection of Claims Against Company...................................46
        SECTION 614.  Appointment of Authenticating Agent.................................................46

ARTICLE SEVEN   HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY.........................................48

        SECTION 701.  Company to Furnish Trustee Names and Addresses of Holders...........................48
        SECTION 702.  Preservation of Information; Communications to Holders..............................48
        SECTION 703.  Reports by Trustee..................................................................49
        SECTION 704.  Reports by Company..................................................................49

ARTICLE EIGHT   CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE......................................50

        SECTION 801.  Company May Consolidate, Etc., Only on Certain Terms................................50
        SECTION 802.  Successor Substituted...............................................................50

ARTICLE NINE    SUPPLEMENTAL INDENTURES...................................................................51

        SECTION 901.  Supplemental Indentures Without Consent of Holders..................................51
        SECTION 902.  Supplemental Indentures with Consent of Holders.....................................52
        SECTION 903.  Execution of Supplemental Indentures................................................53
        SECTION 904.  Effect of Supplemental Indentures...................................................53
        SECTION 905.  Conformity with Trust Indenture Act.................................................53
        SECTION 906.  Reference in Securities to Supplemental Indentures..................................53
        SECTION 907. Notice of Supplemental Indentures....................................................54

ARTICLE TEN     COVENANTS.................................................................................54

        SECTION 1001.  Payment of Principal, Premium and Interest.........................................54
        SECTION 1002.  Maintenance of Office or Agency....................................................54
</TABLE>

<PAGE>   5

<TABLE>
<S>                                                                                                      <C>
        SECTION 1003.  Money for Securities Payments to Be Held in Trust..................................55
        SECTION 1004.  Existence..........................................................................56
        SECTION 1005.  Maintenance of Properties..........................................................56
        SECTION 1006.  Payment of Taxes and Other Claims..................................................56
        SECTION 1007.  Restriction on Secured Debt........................................................57
        SECTION 1008.  Restriction on Sale and Leaseback Transactions.....................................59
        SECTION 1009.  Defeasance of Certain Obligations..................................................60
        SECTION 1010.  Waiver of Certain Covenants........................................................61

ARTICLE ELEVEN  REDEMPTION OF SECURITIES..................................................................61

        SECTION 1101.  Applicability of Article...........................................................61
        SECTION 1102.  Election to Redeem; Notice to Trustee..............................................62
        SECTION 1103.  Selection by Trustee of Securities to Be Redeemed..................................62
        SECTION 1104.  Notice of Redemption...............................................................62
        SECTION 1105.  Deposit of Redemption Price........................................................63
        SECTION 1106.  Securities Payable on Redemption Date..............................................63
        SECTION 1107.  Securities Redeemed in Part........................................................64

ARTICLE TWELVE  SINKING FUNDS.............................................................................64

        SECTION 1201.  Applicability of Article...........................................................64
        SECTION 1202.  Satisfaction of Sinking Fund Payments with Securities..............................64
        SECTION 1203.  Redemption of Securities for Sinking Fund..........................................65
</TABLE>

<PAGE>   6

         INDENTURE, dated as of June 1, 1999 between Pentair, Inc., a
corporation duly organized and existing under the laws of the State of Minnesota
(herein called the "Company"), having its principal office at 1500, County Road
B2 West, Suite 400, St. Paul, Minnesota 55113-3105, and U.S. Bank Trust National
Association, a national banking association, as Trustee (herein called the
"Trustee").

                             RECITALS OF THE COMPANY

         The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.

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

                   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 of series
thereof, as follows:

                                   ARTICLE ONE
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101.  Definitions.

         For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:

                  (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) any gender used in this Indenture shall be deemed and
construed to include correlative words of the masculine, feminine or neuter
gender;

                  (4) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally accepted accounting principles" with respect to any computation
required or permitted hereunder shall mean such accounting principles as are
generally accepted at the date of such computation; and

                                       1
<PAGE>   7

                  (5) 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 Six, are defined in that
Article.

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

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

         "Attributable Debt" in respect of any Sale and Leaseback Transaction
means, at the date of determination, the present value (discounted at the rate
of interest implicit in the terms of the lease) of the obligation of the lessee
for net rental payments during the remaining term of the lease (including any
period for which such lease has been extended or may, at the option of the
lessor, be extended). "Net rental payments" under any lease for any period means
the sum of the rental and other payments required to be paid in such period by
the lessee thereunder, excluding any amounts required to be paid by such lessee
(whether or not designated as rental or additional rental) on account of
maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges required to be paid by such lessee thereunder or any amounts required to
be paid by such lessee thereunder contingent upon the amount of sales,
maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges.

         "Authenticating Agent" means any Person authorized by the Trustee
pursuant to Section 614 to act on behalf of the Trustee to authenticate
Securities of one or more series.

         "Board of Directors" means either the board of directors of the Company
or any duly authorized committee appointed by that board.

         "Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company to have been duly adopted by
the Board of Directors and to be in full force and effect on the date of such
certification. Where any provision of this Indenture refers to action to be
taken pursuant to a Board Resolution (including establishment of any series of
the Securities and the forms and terms thereof), such action may be taken by any
committee, officer or employee of the Company authorized to take such action by
a Board Resolution.

         "Business Day", when used with respect to any Place of Payment, means
each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions generally in that Place of Payment are obligated by law or
executive order to close, unless otherwise specified in a form of Security.

                                       2
<PAGE>   8

         "Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, as
amended, 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 at such time.

         "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" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board, its President or
a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or
an Assistant Secretary and delivered to the Trustee.

         "Consolidated Net Tangible Assets" means the aggregate amount of assets
(less applicable reserves and other properly deductible items) after deducting
therefrom (a) all current liabilities (excluding any indebtedness for money
borrowed having a maturity of less than 12 months from the date of the most
recent consolidated balance sheet of the Company but which by its terms is
renewable or extendable beyond 12 months from such date at the option of the
borrower) and (b) all goodwill, trade names, patents, unamortized debt discount
and expense and any other like intangibles, all as set forth on the most recent
consolidated balance sheet of the Company and computed in accordance with
generally accepted accounting principles.

         "Corporate Trust Office" means the office of the Trustee at which at
any particular time its corporate trust business shall be principally
administered.

         "Corporation" includes corporations, associations, companies, joint
stock companies and business trusts.

         "Debt" has the meaning specified in Section 1007.

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

         "Depositary" means, with respect to the Securities of any series
issuable or issued in whole or in part in the form of one or more Global
Securities, the clearing agency registered under the Exchange Act, specified for
that purpose as contemplated by Section 301 or any successor clearing agency
registered under the Exchange Act as contemplated by Section 305, and if at any
time there is more than one such Person, "Depositary" as used with respect to
the Securities of any series shall mean the Depositary with respect to the
Securities of such series.

         "Event of Default" has the meaning specified in Section 501.

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

                                       3
<PAGE>   9

         "Funded Debt" means Debt which by its terms matures at or is extendible
or renewable at the option of the obligor to a date more than 12 months after
the date of the creation of such Debt.

         "Global Security" means a Security bearing the legend specified in
Section 205 evidencing all or part of a series of Securities, issued to the
Depositary for such series or its nominee, and registered in the name of such
Depositary or nominee.

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

         "Indenture" means this instrument as originally executed or as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof
and shall include the terms of particular series of Securities established as
contemplated by Section 301; provided, however, that, if at any time more than
one Person is acting as Trustee under this instrument due to the appointment of
one or more separate Trustees for any one or more separate series of Securities
pursuant to Section 610(e), "Indenture" shall mean, with respect to such series
of Securities for which any such Person is Trustee, this instrument as
originally executed or as it may from time to time be supplemented or amended by
one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series of
Securities for which such Person is Trustee established as contemplated by
Section 301, exclusive, however, of any provisions or terms which relate solely
to other series of Securities for which such Person is not Trustee, regardless
of when such terms or provisions were adopted, and exclusive of any provisions
or terms adopted by means of one or more indentures supplemental hereto executed
and delivered after such Person had become such Trustee but to which such
Person, as such Trustee, was not a party.

         "Interest", when used with respect to an Original Issue Discount
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.

         "Lien" or "Liens" has the meaning specified in Section 1007.

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

         "Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President, a Vice President or an Assistant Vice President of the
Company, and by the Treasurer or an Assistant Treasurer of the Company, and
delivered to the Trustee.

                                       4
<PAGE>   10

         "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company and, in the case of counsel for the Company, may be
either inside or outside counsel, which opinion may be subject to standard
qualifications and exceptions.

         "Original Issue Discount Security" means any Security which provides
for an amount less than the principal amount thereof to be due and payable at
maturity or 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:

                  (i) Securities theretofore canceled by the Trustee or
         delivered to the Trustee for cancellation;

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

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

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or whether a
quorum is present at a meeting of Holders of Securities, (i) the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof pursuant to Section 502, (ii) the principal amount of a Security
denominated in one or more foreign currencies or currency units that shall be
deemed to be Outstanding shall be the U.S. dollar equivalent, determined in the
manner provided as contemplated by Section 301 as of the date of original
issuance of such Security, of the principal amount (or, in the case of an
Original Issue Discount Security, the U.S. dollar equivalent, determined as of
the date of original issuance of such Security, of the amount determined as
provided in (i) above) of such Security as determined by the Company pursuant to
Section 301, and (iii) Securities owned by the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Securities which the
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

                                       5
<PAGE>   11

to the satisfaction of the Trustee the pledgee's right so to act with respect to
such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

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

         "Periodic Offering" means an offering of Securities of a series from
time to time the specific terms of which Securities, including without
limitation the rate or rates of interest (or formula for determining the rate or
rates of interest), if any, thereon, the Stated Maturity or Maturities thereof
and the redemption provisions, if any, with respect thereto, are to be
determined by the Company or its agents upon the issuance of such Securities.

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

         "Place of Payment", when used with respect to the Securities of any
series, means the place or places where the principal of (and premium, if any)
and/or interest on the Securities of that series are payable, where Securities
of that series may be surrendered for registration of transfer or 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.

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

         "Principal Property" means any manufacturing plant, office facility,
warehouse or distribution center (consisting of real estate, buildings and
fixtures) located within the United States of America (other than its
territories or possessions) and owned by the Company or any Subsidiary, the
gross book value (without deduction of any depreciation reserves) of which on
the date as of which the determination is being made exceeds _________________
of the Company (as shown on the Company's most recent consolidated balance sheet
and computed in accordance with generally accepted accounting principles),
except any such plant (i) to the extent financed by obligations issued by a
State or local governmental unit pursuant to Section 142(a)(5), 142(a)(6),
142(a)(8) or 144(a) of the Internal Revenue Code of 1986, or any successor
provision thereof, or (ii) which is not of material importance to the business
conducted by the Company and its Subsidiaries, taken as a whole (as determined
by any two of the following: the Chairman or a Vice Chairman of the Board of the
Company, its President, its Chief Financial Officer, its Vice President of
Finance, its Treasurer or its Controller).

                                       6
<PAGE>   12

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

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

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
as contemplated by Section 301.

         "Required Currency" has the meaning specified in Section 311.

         "Responsible Officer", when used with respect to the Trustee, means any
officer of the Trustee assigned by it to administer its corporate trust matters.

         "Restricted Subsidiary" means any Subsidiary which owns or leases a
Principal Property.

         "Sale and Leaseback Transaction" has the meaning specified in Section
1008.

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

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

         "Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.

         "Stated Maturity", when used with respect to any Security or any
installment of principal thereof or interest thereon, means the date specified
in such Security 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 Corporation of which securities (excluding
securities entitled to vote for directors only by reason of the happening of a
contingency) entitled to elect at least a majority of the corporation's
directors shall at the time be owned, directly or indirectly, by the Company, or
one or more Subsidiaries, or by the Company and one or more Subsidiaries.

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

                                       7
<PAGE>   13

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

         "U.S. Government Obligations" means direct obligations of the United
States of America, backed by its full faith and credit.

         "Vice President", when used with respect to the Company, means any vice
president, whether or not designated by a number or a word or words added before
or after the title "vice president".

         "Voting Stock", when used with respect to a Corporation, means stock of
the class or classes having general voting power under ordinary circumstances to
elect at least a majority of the board of directors, managers or trustees of
such Corporation (irrespective of whether at the time stock or securities of any
other class or classes shall have or might have voting power by reason of the
happening of any contingency).

SECTION 102.  Compliance Certificates and Opinions.

         Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company shall furnish to
the Trustee an Officers' Certificate stating that all conditions precedent, if
any, provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that in the opinion of such
counsel 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 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 covenant or condition and the definitions
         herein relating thereto;

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

                  (3) a statement that, in the opinion of each such individual,
         he has made such examination or investigation as is necessary to enable
         him to express an informed opinion whether such covenant or condition
         has been complied with; and

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

Every such certificate or opinion provided under this Indenture shall be without
personal recourse to the individual executing the same and may include an
express statement to such effect.

                                       8
<PAGE>   14

SECTION 103.  Form of Documents Delivered to Trustee.

         In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion 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 any 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 the 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. All applications, requests, consents, certificates,
statements, opinions or other instruments given under this Indenture shall be
without personal recourse to any individual giving the same and may include an
express statement to such effect.

SECTION 104.  Acts of Holders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing, and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 601) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

         (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution

                                       9
<PAGE>   15

thereof. Where such execution is by a signer acting in a capacity other than
such signer's individual capacity, such certificate or affidavit shall also
constitute sufficient proof of such signer's authority. The fact and date of the
execution 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
deems sufficient.

         (c) The ownership of Securities shall be proved by the Security
Register. The Company may fix any day as the record date for the purpose of
determining the Holders of Securities of any series entitled to give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action, or to vote on any action, authorized or permitted to be given or taken
by Holders of Securities of such series. If not set by the Company prior to the
first solicitation of a Holder of Securities of such 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 the 30th day (or, if
later, the date of the most recent list of Holders required to be provided
pursuant to Section 701) prior to such first solicitation or vote, as the case
may be. With regard to any record date for action to be taken by the Holders of
one or more series of Securities, only the Holders of Securities of such series
on such date (or their duly designated proxies) shall be entitled to give or
take, or vote on, the relevant action.

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

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

         Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with,

                  (1) the Trustee by any Holder or by the Company shall be
         sufficient for every purpose hereunder if made, given, furnished or
         filed in writing to or with a Responsible Officer of the Trustee at its
         Corporate Trust Office, Attention: Corporate Trust Department, or

                  (2) the Company by the Trustee or by any Holder shall be
         sufficient for every purpose hereunder (unless otherwise herein
         expressly provided) if in writing and mailed, first-class postage
         prepaid, to the Company addressed to it at the address of its principal
         office specified in the first paragraph of this instrument (Attention:
         Treasurer) or at any other address previously furnished in writing to
         the Trustee by the Company.

SECTION 106.  Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-

                                       10
<PAGE>   16

class postage prepaid, to each Holder affected by such event, at such Holder's
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. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

         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 by mail,
then such notice shall be given by such other method as the Company shall
reasonably determine and the same shall constitute a sufficient notification for
every purpose hereunder.

SECTION 107.  Compliance with Trust Indenture Act.

         This Indenture is subject to, and shall be governed by, the provisions
of the Trust Indenture Act that are required to be part of this Indenture. If
any provision hereof limits, qualifies or conflicts with a provision of the
Trust Indenture Act that is required under such Act to be a part of and govern
this Indenture, the latter provision shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act that may
be so modified or excluded, the latter provision shall be deemed to apply to
this Indenture as so modified or to be excluded, as the case may be.

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 or the
Trustee 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 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, express or implied,
shall give to any Person, other than the parties hereto, any Authenticating
Agent, any Paying Agent, any Securities

                                       11
<PAGE>   17

Registrar, and their successors hereunder and the Holders, 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 for principles
of conflicts of law thereof.

SECTION 113.  Legal Holidays.

         Except as may be otherwise specified with respect to any particular
Securities, in any case where any Interest Payment Date, Redemption Date or
Stated Maturity of any Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or of the
Securities) payment of interest or principal (and premium, if any) need not be
made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest shall accrue on such unpaid interest or
principal (and premium, if any) for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be.

                                   ARTICLE TWO
                                 SECURITY FORMS

SECTION 201.  Forms Generally.

         The Securities of each series shall be in substantially the form set
forth in this Article, or in such other form as shall be established by or
pursuant to a Board Resolution and set forth in an Officers' Certificate or
established by one or more indentures supplemental hereto, in each case with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture, 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 the rules of any securities exchange or as
may, consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities. When the form of
Securities of any series is established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section
303 for the authentication and delivery of such Securities.

         The Trustee's certificates of authentication shall be in substantially
the form set forth in this Article with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture.

         The definitive Securities may be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Securities, as evidenced by their execution of
such Securities.

                                       12
<PAGE>   18

SECTION 202.  Form of Face of Security.

[INSERT ANY LEGEND REQUIRED BY THE INTERNAL REVENUE CODE AND THE REGULATIONS
THEREUNDER.]

                                  PENTAIR, INC.

                                   ----------

No.                                [$]
    --------                          -------

         Pentair, Inc., a corporation duly organized and existing under the laws
of Minnesota (herein called the "Company", which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to ____________, or registered assigns, the principal sum of
_____________ [Dollars] on ____________ [If the Security is to bear interest
prior to Maturity, insert --, and to pay interest thereon from ____________ or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, [semiannually in arrears on ____________ and ____________ in
each year] [annually in arrears on ____________], commencing ____________, at
the rate of _____% per annum, until the principal hereof is paid or made
available for payment [If applicable insert --, and (to the extent that the
payment of such interest shall be legally enforceable) at the rate of _____% per
annum on any overdue principal and premium and on any overdue installment of
interest]. The interest so payable, and punctually paid or duly provided for,
on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, which shall be the ____________ [or ____________] (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date.
Any such interest not so punctually paid or duly provided for will forthwith
cease to be payable to the Holder on such Regular Record Date and may either be
paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities of this series may be listed, and upon such notice as
may be required by such exchange, all as more fully provided in said Indenture].
[If the Security is not to bear interest prior to Maturity, insert --. The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of ____% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such
default in payment to the date payment of such principal has been made or duly
provided for. Interest on any overdue principal shall be payable on demand. Any
such interest on any overdue principal that is not so paid on demand shall bear
interest at the rate of ____% per annum (to the extent that the payment of such
interest shall be legally enforceable), which shall accrue from the date of such
demand for payment to the date payment of such interest has been made or duly
provided for, and such interest shall also be payable on demand.]

                                       13
<PAGE>   19

         Payment of the principal of (and premium, if any) and [If applicable,
insert -- any such] interest on this Security will be made at the office or
agency of the Company maintained for that purpose in ____________, in such coin
or currency [of the United States of America] as at the time of payment is legal
tender for payment of public and private debts [If applicable, insert --;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register].

         [If applicable, insert -- [The Securities of this series are/This
Security is] subject to redemption prior to the Stated Maturity as described on
the reverse hereof.]

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

         Unless the certificate of authentication hereon has been executed by or
on behalf of the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.

                                       14
<PAGE>   20

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

Dated:

                                            PENTAIR, INC.

                                            By
                                              ---------------------------

Attest:

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

SECTION 203.  Form of Reverse of Security.

         This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of June 1, 1999 (herein called the
"Indenture"), between the Company and U.S. Bank Trust National Association, as
Trustee (herein called the "Trustee", which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the Trustee and the
Holders of the Securities and of the terms upon which the Securities are, and
are to be authenticated and delivered. This Security is one of the series
designated on the face hereof [, limited in aggregate principal amount to
[$]_______________]. By the terms of the Indenture, additional Securities [If
applicable, insert -- of this series and] of other separate series, which may
vary as to date, amount, Stated Maturity, interest rate or method of calculating
the interest rate and in other respects as therein provided, may be issued in an
unlimited principal amount.

         [If applicable, insert -- [The Securities of this series are/This
Security is] subject to redemption prior to the Stated Maturity hereof upon not
less than 30 days' notice by mail to the Person[s] in whose name[s] [the
Securities to be redeemed are/this Security is] registered at the address
specified in the Security Register, [If applicable, insert -- (1) on __________
in any year commencing with the year __________ and ending with the year
__________ through operation of the sinking fund for this series at a Redemption
Price equal to 100% of the principal amount, and (2)] at any time [on or after
], as a whole or in part, at the election of the Company, at the following
Redemption Prices (expressed as percentages of the principal amount): if
redeemed [on or before __________, ____%, and if redeemed] during the 12-month
period beginning __________ of the years indicated,

                                       15
<PAGE>   21

                     Redemption                      Redemption
        Year            Price           Year            Price
        ----         ----------         ----         ----------

and thereafter at a Redemption Price equal to % of the principal amount, [If
applicable, insert -- together in the case of any such redemption [If
applicable, insert -- (whether through operation of the sinking fund or
otherwise)] with accrued interest to the Redemption Date, provided, however,
that installments of interest whose Stated Maturity is on or prior to (but not
after) such Redemption Date will be payable to the [Holders of such
Securities/Holder of this Security] (or one or more Predecessor Securities) of
record at the close of business on the relevant Record Dates referred to on the
face hereof, all as provided in the Indenture]. [If there is no sinking fund,
insert -- [The Securities of this series are/This Security is] not subject to
any sinking fund.]

         [If applicable, insert -- [The Securities of this series are/This
Security is] subject to redemption prior to the Stated Maturity hereof upon not
less than 30 days' notice by mail to the Person[s] in whose name[s] [the
Securities to be redeemed are/this Security is] registered at the address
specified in the Security Register, (1) on __________ in any year commencing
with the year _________ and ending with the year _________ through operation of
the sinking fund for this series at the Redemption Prices (expressed as
percentages of the principal amount) set forth in the table below, and (2) at
any time [on or after _________], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below:

                        Redemption Price
                         for Redemption          Redemption Price for
                        Through Operation        Redemption Otherwise
                              of the             Than Through Operation
        Year              Sinking Fund            of the Sinking Fund
        ----            -----------------        ----------------------

         If redeemed during the 12-month period beginning _________ of the years
indicated, and thereafter at a Redemption Price equal to ____% of the principal
amount [If applicable, insert --, together in the case of any such redemption
(whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, provided, however, that installments of
interest whose Stated Maturity is on or prior to (but not after) such Redemption
Date will be payable to the [Holders of such Securities/Holder of this Security]
(or one or more Predecessor Securities) of record at the close of business on
the relevant Record Dates referred to on the face hereof, all as provided in the
Indenture].]

         [Notwithstanding the foregoing, the Company may not, prior to
_________, redeem any Securities of this series as contemplated by [Clause (2)
of] the preceding paragraph as a part of, or in anticipation of, any refunding
operation by the application, directly or indirectly, of moneys borrowed having
an interest cost to the Company (calculated in accordance with generally
accepted financial practice) of less than ____% per annum.]

                                       16
<PAGE>   22

         [The sinking fund for this series provides for the redemption on
_________ in each year beginning with the year and ending with the year of [not
less than] [$] _________ [("mandatory sinking fund") and not more than [$]
_________] aggregate principal amount of Securities of this series. [Securities
of this series acquired or redeemed by the Company otherwise than through
[mandatory] sinking fund payments may be credited against subsequent [mandatory]
sinking fund payments otherwise required to be made -- in the inverse order in
which they become due.]]

         [In the event of redemption of this Security in part only, a new
Security or Securities of this series and of like tenor or an authorized
denomination for the unredeemed portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof, and, in the event of transfer or
exchange, a new Security or Securities of this series and of like tenor and for
a like aggregate principal amount will be issued to the Holder, in the case of
exchange, or the designated transferee or transferees, in the case of transfer.]

         [If the Security is not an Original Issue Discount Security, -- If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may (subject to the
conditions set forth in the Indenture) be declared due and payable in the manner
and with the effect provided in the Indenture.]

         [If the Security is an Original Issue Discount Security, -- If an Event
of Default with respect to Securities of this series shall occur and be
continuing, a lesser amount than the principal amount due at the Stated Maturity
of the Securities of this series may (subject to the conditions set forth in the
Indenture) be declared due and payable in the manner and with the effect
provided in the Indenture. The amount due and payable on this Security in the
event that this Security is declared due and payable prior to the Stated
Maturity hereof shall be -- insert formula for determining the amount. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal and overdue interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Company's obligations in respect of the payment of the principal of and
interest, if any, on the Securities of this series shall terminate.]

         The Indenture contains provisions for defeasance at any time of the
Company's obligations in respect of (i) the entire indebtedness of this Note or
(ii) certain restrictive covenants with respect to this Note, in each case upon
compliance with certain conditions set forth therein.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of not less than a majority in aggregate principal amount
of the Securities at the time Outstanding of each series to be affected and, for
certain purposes, without the consent of the Holders of any Securities at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of specified percentages in aggregate principal amount of the Securities of each
series at the time Outstanding, on behalf of

                                       17
<PAGE>   23

the Holders of all Securities of such series, to waive compliance by the Company
with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of
this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange hereof or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security.

         [If the Security is an Original Issue Discount Security, -- In
determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given any request, demand, authorization, direction,
notice, consent or waiver under the Indenture or whether a quorum is present at
a meeting of Holders of Securities, the principal amount of any Original Issue
Discount Security that shall be deemed to be Outstanding shall be the amount of
the principal thereof that would be due and payable as of the date of such
determination upon the acceleration of the Maturity thereof.]

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of (and premium, if any) and
interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in any place where the principal of (and
premium, if any) and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by, the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Securities of this series, of like tenor and of authorized denominations and for
the same aggregate principal amount, will be issued to the designated transferee
or transferees.

         The Securities of this series are issuable only in registered form
without coupons in denominations of [$1,000] and any amount in excess thereof
which is an integral multiple of [$1,000]. As provided in the Indenture and
subject to certain limitations therein set forth, Securities of this series are
exchangeable for a like aggregate principal amount of Securities of this series
and of like tenor of a different authorized denomination, as requested by the
Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

         Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered in the Security Register as
the owner hereof for all purposes, whether or not this Security be overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

                                       18
<PAGE>   24

         The Securities shall be governed by and construed in accordance with
the laws of the State of New York.

         All terms used in this Security which are defined in the Indenture
shall have the meanings assigned to them in the Indenture.

SECTION 204.  Form of Trustee's Certificate of Authentication.

         This is one of the Securities of the series designated therein and
issued pursuant to the within-mentioned Indenture.

                                        -------------------------------------
                                        U.S. Bank Trust National Association,
                                        as Trustee

                                        By
                                           ----------------------------------
                                           Authorized Officer

SECTION 205.  Form of Legend for Global Securities.

         Any Global Security authenticated and delivered hereunder shall, in
addition to the provisions contained in Sections 202 and 203, bear a legend in
substantially the following form or such other form as may be required by the
Depositary:

         "Unless this certificate is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York, New York) to the
issuer or to its agent for registration of transfer, exchange or payment, and
any certificate issued is registered in the name of Cede & Co. or such other
name as requested by an authorized representative of The Depository Trust
Company and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered owner hereof, Cede & Co., has an interest herein."

                                  ARTICLE THREE
                                 THE SECURITIES

SECTION 301.  Amount Unlimited; Issuable in Series.

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

         The Securities may be issued in one or more series. There shall be
established by or pursuant to a Board Resolution and, subject to Section 303,
set forth or determined in the manner

                                       19
<PAGE>   25

provided in an Officers' Certificate or established in one or more indentures
supplemental hereto, prior to the initial issuance of Securities of any series,

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

                  (2) any limit upon the aggregate principal amount of the
         Securities of the series which may be authenticated and delivered under
         this Indenture (except for Securities authenticated and delivered upon
         registration of transfer of, or in lieu of, other Securities of the
         series pursuant to Section 304, 305, 306, 906, 1107 and except for any
         Securities which, pursuant to Section 303, are deemed never to have
         been authenticated and delivered hereunder);

                  (3) the Person to whom any interest on a Security of the
         series shall be payable, if other than 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;

                  (4) the date or dates on which the principal or installments
         of principal of the Securities of the series is or are payable and any
         rights to extend such date or dates;

                  (5) the rate or rates at which the Securities of the series
         shall bear interest, if any, or the formula pursuant to which such rate
         or rates shall be determined, the date or dates from which such
         interest shall accrue, the Interest Payment Dates on which such
         interest shall be payable and the Regular Record Date for the interest
         payable on any Interest Payment Date;

                  (6) the place or places where the principal of (and premium,
         if any) and interest on Securities of the series shall be payable, any
         Securities of the series may be surrendered for registration of
         transfer or exchange and notices and demands to or upon the Company
         with respect to the Securities of the series and this Indenture may be
         served;

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

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

                  (9) if other than denominations of $1,000 or any amount in
         excess thereof which is an integral multiple of $1,000, the
         denominations in which Securities of the series shall be issuable;

                                       20
<PAGE>   26

                  (10) the currency, currencies or currency units in which
         payment of the principal of and any premium and interest on any
         Securities of the series shall be payable if other than the currency of
         the United States of America, the manner of determining the U.S. dollar
         equivalent of the principal amount thereof for purposes of the
         definition of "Outstanding" in Section 101, and, if the principal of or
         any premium or interest on any Securities of the series is to be
         payable, at the election of the Company or a Holder thereof, in one or
         more currencies or currency units other than that or those in which the
         Securities are stated to be payable, the currency, currencies or
         currency units in which payment of the principal of and any premium and
         interest on Securities of such series as to which such election is made
         shall be payable, and the periods within which and the terms and
         conditions upon which such election is to be made;

                  (11) any other event or events of default applicable with
         respect to Securities of the series in addition to or in lieu of those
         provided in Section 501(1) through (7);

                  (12) any other restrictive covenants applicable with respect
         to the Debt Securities of the series in addition to or in lieu of those
         provided in Sections 1007 and 1008;

                  (13) if less than the principal amount thereof, the portion of
         the principal amount of Securities of the series which shall be payable
         upon declaration of acceleration of the Maturity thereof pursuant to
         Section 502;

                  (14) any index used to determine the amount of payment of
         principal of and any premium and interest on the Securities of the
         series;

                  (15) whether the Securities of the series shall be issued in
         whole or in part in the form of one or more Global Securities and, if
         so, (a) the Depositary with respect to such Global Security or
         Securities and (b) the circumstances under which any such Global
         Security may be exchanged for Securities registered in the name of, and
         any transfer of such Global Security may be registered to, a Person
         other than such Depositary or its nominee, if other than as set forth
         in Section 305;

                  (16) if principal of or any premium or interest on the
         Securities of a series is denominated or payable in a currency or
         currencies other than the currency of the United States of America,
         whether and under what terms and conditions the Company may be
         discharged from obligations pursuant to Sections 403 and 1107 with
         respect to Securities of such series; and

                  (17) any other terms of the series (which terms shall not be
         inconsistent with the provisions of this Indenture, except as permitted
         by Section 901(5)).

         All Securities of any one series (other than Securities offered in a
Periodic Offering) shall be substantially identical except as to denomination
and except as may otherwise be provided by or pursuant to the Board Resolution
referred to above and, subject to Section 303, set forth, or

                                       21
<PAGE>   27

determined in the manner provided, in the Officers' Certificate referred to
above or in any such indenture supplemental hereto.

         If any of the terms of the series are established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Officers'
Certificate setting forth the terms of the series.

         With respect to Securities of a series offered in a Periodic Offering,
such Board Resolution and Officers' Certificate or supplemental indenture may
provide general terms or parameters for Securities of such series and provide
either that the specific terms of particular Securities of such series shall be
specified in a Company Order or that such terms shall be determined by the
Company or its agents in accordance with other procedures specified in a Company
Order as contemplated by the third paragraph of Section 303.

SECTION 302.  Denominations.

         Unless otherwise provided in the applicable Officers' Certificate or
supplemental indenture, the Securities of each series shall be issued in
registered form without coupons in such denominations as shall be specified as
contemplated by Section 301. In the absence of any such provisions with respect
to the Securities of any series, the Securities of such series shall be issuable
in denominations of $1,000 or any amount in excess thereof which is an integral
multiple of $1,000.

SECTION 303.  Execution, Authentication, Delivery and Dating.

         The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice Presidents. The
signature of any of these officers on the Securities may be manual or facsimile.

         Securities 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 executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, or, in the case of Securities
offered in a Periodic Offering, from time to time in accordance with such other
procedures (including, without limitation, the receipt by the Trustee of
electronic instructions from the Company or its duly authorized agents, promptly
confirmed in writing by the Company) acceptable to the Trustee as may be
specified from time to time by a Company Order for establishing the specific
terms of particular Securities being so offered, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. If the
form or forms or terms of the Securities of the series have been established by
or pursuant to one or more Board Resolutions as permitted by Sections 201 and
301, in authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such

                                       22
<PAGE>   28

Securities, the Trustee shall be entitled to receive, and (subject to Section
601) shall be fully protected in relying upon, an Opinion of Counsel stating,

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

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

                  (c) that such Securities, when authenticated and delivered by
         the Trustee, issued by the Company and paid for by the purchasers
         thereof in the manner and subject to any conditions specified in such
         Opinion of Counsel, will constitute valid and legally binding
         obligations of the Company, enforceable in accordance with their terms,
         subject to bankruptcy, insolvency, reorganization and other laws of
         general applicability relating to or affecting the enforcement of
         creditors' rights and to general equity principles;

                  (d) that authentication and delivery of such Securities and
         the execution and delivery of the supplemental indenture, if any, by
         the Trustee will not violate the terms of the Indenture;

                  (e) that the Company has the corporate power to issue such
         Securities, and has duly taken all necessary corporate action with
         respect to such issuance; and

                  (f) that the issuance of such Securities will not contravene
         the articles of incorporation or bylaws of the Company or result in any
         violation of any of the terms or provisions of any law or regulation or
         of any indenture, mortgage or other agreement known to such Counsel by
         which the Company is bound, which contravention or violation would
         reasonably be expected to materially adversely affect the Company's
         performance of its obligations with respect to the Securities;

provided, however, that, with respect to Securities of a series offered in a
Periodic Offering, the Trustee shall be entitled to receive such Opinion of
Counsel in connection only with the first authentication of each form of
Securities of such series and that the opinions described in Clauses (b) and (c)
above may state, respectively, that

                  (b) if the terms of such Securities are to be established
         pursuant to a Company Order or pursuant to such procedures as may be
         specified from time to time by a Company Order, all as contemplated by
         a Board Resolution or action taken pursuant thereto, such terms will
         have been duly authorized by the Company and established in conformity
         with the provisions of this Indenture; and

                  (c) that such Securities, when executed by the Company,
         completed, authenticated and delivered by the Trustee in accordance
         with this Indenture, and issued and delivered by the Company and paid
         for, all in accordance with any agreement of the Company relating to
         the offering, issuance and sale of such Securities, will be duly issued
         under this Indenture and will constitute valid and legally binding
         obligations of the

                                       23
<PAGE>   29

         Company, enforceable in accordance with their terms, subject to
         bankruptcy, insolvency, reorganization, moratorium and other laws
         relating to or affecting generally the enforcement of creditors' rights
         and to general principles of equity.

         With respect to Securities of a series offered in a Periodic Offering,
the Trustee may rely, as to the authorization by the Company of any of such
Securities, the form or forms and terms thereof and the legality, validity,
binding effect and enforceability thereof, upon the Opinion of Counsel, Company
Order and other documents delivered pursuant to Sections 201 and 301 and this
Section, as applicable, in connection with the first authentication of a form of
Securities of such series and it shall not be necessary for the Company to
deliver such Opinion of Counsel and other documents (except as may be required
by the specified other procedures, if any, referred to above) at or prior to the
time of authentication of each Security of such series unless and until the
Trustee receives notice that such Opinion of Counsel or other documents have
been superseded or revoked, and may assume compliance with any conditions
specified in such Opinion of Counsel (other than any conditions to be performed
by the Trustee). If such form or forms or terms have been so established, the
Trustee shall not be required to authenticate such Securities if the issue of
such Securities pursuant to this Indenture will affect the Trustee's own rights,
duties or immunities under the Securities and this Indenture or otherwise in a
manner which is not reasonably acceptable to the Trustee.

         Each Security shall be dated the date of its authentication.

         No Security 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
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder and is entitled to the
benefits of this Indenture. Notwithstanding the foregoing, if any Security shall
have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for
cancellation as provided in Section 309 together with a written statement (which
need not comply with Section 102 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the
Company, for all purposes of this Indenture such Security shall be deemed never
to have been authenticated and delivered hereunder and shall never be entitled
to the benefits of this Indenture.

SECTION 304.  Temporary Securities.

         Pending the preparation of definitive Securities of any Series, the
Company may execute, and upon Company Order the Trustee shall authenticate and
deliver, temporary Securities which are printed, lithographed, typewritten or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued 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.

         If temporary Securities of any series are issued, the Company will
cause definitive Securities of that series to be prepared without unreasonable
delay. After the preparation of

                                       24
<PAGE>   30

definitive Securities of such series, the temporary Securities of such series
shall be exchangeable for definitive Securities of like tenor of such series
upon surrender of the temporary Securities of such series at the office or
agency of the Company in a Place of Payment for that series, without charge to
the Holder. Upon surrender for cancellation of any one or more temporary
Securities of any series the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of the same series and of like tenor and of any authorized
denominations. Until so exchanged the temporary Securities of any series shall
in all respects be entitled to the same benefits under this Indenture as
definitive Securities of such series and tenor.

SECTION 305.  Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby
appointed "Security Registrar" for the purpose of registering Securities and
transfers of Securities as herein provided.

         Upon surrender for registration of transfer of any Security of any
series at the office or agency of the Company in any Place of Payment for such
series, the Company shall execute and the Trustee shall authenticate and deliver
(in the name of the designated transferee or transferees) one or more new
Securities of the same series, of any authorized denominations and of a like
aggregate principal amount and tenor.

         At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any authorized denominations and of
a like aggregate principal amount and tenor, upon surrender of the Securities to
be exchanged at the office or agency of the Company in any Place of Payment for
such series. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver, the
Securities which the Holder making the exchange is entitled to receive.

         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
for exchange shall (if so required by the Company or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or such Holder's attorney duly authorized in writing.

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

                                       25
<PAGE>   31

         The Company may but 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
1103 and ending at the close of business on the day of such mailing, or (ii) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part.

         Notwithstanding the foregoing, except as otherwise specified as
contemplated by Section 301, any Global Security shall be exchangeable pursuant
to this Section 305 for Securities registered in the name of Persons other than
the Depositary for such Security or its nominee only if (i) such Depositary
notifies the Company that it is unwilling or unable to continue as Depositary
for such Global Security or if at any time such Depositary ceases to be a
clearing agency registered under the Exchange Act, (ii) the Company executes and
delivers to the Trustee a Company Order that such Global Security shall be so
exchangeable or (iii) there shall have occurred and be continuing an Event of
Default with respect to the Securities of such series. Upon the occurrence in
respect of any Global Security of any series of any one or more of the
conditions specified in Clauses (i), (ii) or (iii) of the preceding sentence or
such other conditions as may be specified as contemplated by Section 301 for
such series, such Global Security may be exchanged for Securities not bearing
the legend specified in Section 205 and registered in the names of such Persons
as may be specified by the Depositary (including Persons other than the
Depositary).

         Notwithstanding any other provision of this Indenture (except the
provisions of the preceding paragraph), a Global Security may not be transferred
except as a whole by the Depositary for such Global Security to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary.

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

         If any mutilated Security is surrendered to the Trustee, the Company
shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its written request the Trustee
shall authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of the same series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

         In case any such mutilated, destroyed, lost or stolen Security 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.

                                       26
<PAGE>   32

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

         Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series 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.

SECTION 307.  Payment of Interest; Interest Rights Preserved.

         Unless otherwise provided as contemplated by Section 301 with respect
to any series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered in the Security Register at the close of business on
the Regular Record Date for such Interest Payment Date.

         Any interest on any Security of any 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 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 Securities of such series
         (or their respective Predecessor Securities) are registered at the
         close of business on a Special Record Date for the payment of such
         Defaulted Interest, which shall be fixed in the following manner. The
         Company shall notify the Trustee in writing of the amount of Defaulted
         Interest proposed to be paid on each Security of such series and the
         date of the proposed payment, and at the same time the Company shall
         deposit with the Trustee an amount of money equal to the aggregate
         amount proposed to be paid in respect of such Defaulted Interest or
         shall make arrangements satisfactory to the Trustee for such deposit
         prior to the date of the proposed payment, such money when deposited to
         be held in trust for the benefit of the Persons entitled to such
         Defaulted Interest as in this Clause provided. Thereupon the Trustee
         shall fix a Special Record Date for the payment of such Defaulted
         Interest which shall be not more than 15 days and not less than 10 days
         prior to the date of the proposed payment and not less than 10 days
         after the receipt by the Trustee of the notice of the proposed payment.
         The Trustee shall promptly notify the Company of such Special Record
         Date and, in the name and at the expense of the Company, shall cause
         notice of the proposed payment of such Defaulted Interest and the
         Special Record Date therefor to

                                       27
<PAGE>   33

         be mailed, first-class postage prepaid, to each Holder of Securities of
         such series at such Holder's address as it appears in the Security
         Register, not less than 10 days prior to such Special Record Date.
         Notice of the proposed payment of such Defaulted Interest and the
         Special Record Date therefor having been so mailed, such Defaulted
         Interest shall be paid to the Persons in whose names the Securities of
         such series (or their respective Predecessor Securities) are registered
         at the close of business on such Special Record Date and shall no
         longer be payable pursuant to the following Clause (2).

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

         Subject to the foregoing provisions of this Section, 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 Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name such Security is registered in the Security Register 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 on such Security and
for all other purposes whatsoever, whether or not such Security be overdue, and
neither the Company, the Trustee nor any agent of the Company or the Trustee
shall be affected by notice to the contrary.

         No holder of any beneficial interest in any Global Security held on its
behalf by a Depositary (or its nominee) shall have any rights under this
Indenture with respect to such Global Security or any Security represented
thereby, and such Depositary may be treated by the Company, the Trustee, and any
agent of the Company or the Trustee as the owner of such Global Security or any
Security represented thereby for all purposes whatsoever. Notwithstanding the
foregoing, with respect to any Global Security, nothing herein shall prevent the
Company, the Trustee, or any agent of the Company or the Trustee, from giving
effect to any written certification, proxy or other authorization furnished by a
Depositary or impair, as between a Depositary and such holders of beneficial
interest, the operation of customary practices governing the exercise of the
rights of the Depositary (or its nominees) as Holder of any Security.

SECTION 309.  Cancellation.

         All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the

                                       28
<PAGE>   34

Trustee, be delivered to the Trustee and shall be promptly canceled by it. The
Company may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section, except as expressly permitted by this
Indenture. All canceled Securities held by the Trustee shall be destroyed unless
otherwise directed by a Company Order.

SECTION 310.  Computation of Interest.

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

SECTION 311.  Payment to be in Proper Currency.

         In the case of any Securities denominated in any currency (the
"Required Currency") other than United States of America dollars, except as
otherwise provided therein, the obligation of the Company to make any payment of
principal, premium or interest thereon shall not be discharged or satisfied by
any tender by the Company, or recovery by the Trustee, in any currency other
than the Required Currency, except to the extent that such tender or recovery
shall result in the Trustee timely holding the full amount of the Required
Currency then due and payable. If any such tender or recovery is in a currency
other than the Required Currency, the Trustee may take such actions as it
considers appropriate to exchange such currency for the Required Currency. The
costs and risks of any such exchange, including without limitation the risks of
delay and exchange rate fluctuation, shall be borne by the Company, the Company
shall remain fully liable for any shortfall or delinquency in the full amount of
Required Currency then due and payable, and in no circumstances shall the
Trustee be liable therefor except in the case of its negligence or willful
misconduct.

                                  ARTICLE FOUR
                           SATISFACTION AND DISCHARGE

SECTION 401. Satisfaction and Discharge of Indenture.

         This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

                  (1) either

                           (A) all Securities theretofore authenticated and
                  delivered (other than (i) Securities which have been
                  destroyed, lost or stolen and which have been replaced

                                       29
<PAGE>   35

                  or paid as provided in Section 306 and (ii) Securities for
                  whose payment money has theretofore been deposited in trust or
                  segregated and held in trust by the Company and thereafter
                  repaid to the Company or discharged from such trust, as
                  provided in Section 1003) have been delivered to the Trustee
                  for cancellation; or

                           (B) all such Securities not theretofore delivered to
                  the Trustee for cancellation

                                    (i) have become due and payable, or

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

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

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

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

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

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607, the obligations of
the Trustee to any Authenticating Agent under Section 614, and, if money shall
have been deposited with the Trustee pursuant to Subclause (B) of Clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003, shall survive.

SECTION 402.  Application of Trust Money.

         Subject to provisions of the last paragraph of Section 1003, all money
deposited with the Trustee pursuant to Section 401 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for

                                       30
<PAGE>   36

whose payment such money has been deposited with the Trustee but such money need
not be segregated from other funds except to the extent required by law.

SECTION 403.  Defeasance and Discharge of Indenture.

         If principal of and any premium and interest on Securities of any
series are denominated and payable in United States of America dollars, the
Company shall be deemed to have paid and discharged the entire indebtedness on
all the Outstanding Securities of such series on the 123rd day after the date of
the deposit referred to in subparagraph (d) hereof, and the provisions of this
Indenture, as it relates to such Outstanding Securities, shall no longer be in
effect (and the Trustee, at the expense of the Company, shall at Company
Request, execute proper instruments acknowledging the same), except as to:

                  (a) the rights of Holders of Securities to receive, from the
         trust funds described in subparagraph (d) hereof, (i) payment of the
         principal of (and premium, if any) or interest on the Outstanding
         Securities on the Stated Maturity of such principal or installment of
         principal or interest and (ii) the benefit of any mandatory sinking
         fund payments applicable to the Securities on the day on which such
         payments are due and payable in accordance with the terms of this
         Indenture and the Securities;

                  (b) the Company's obligations with respect to such Securities
         under Sections 305, 306, 1002 and 1003; and

                  (c) the rights, powers, trusts, duties and immunities of the
         Trustee hereunder;

provided that, the following conditions shall have been satisfied:

                  (d) The Company has deposited or caused to be irrevocably
         deposited with the Trustee (or another trustee satisfying the
         requirements of Section 609) as trust funds in the trust, specifically
         pledged as security for, and dedicated solely to, the benefit of the
         Holders of the Securities, (i) money in an amount, or (ii) U.S.
         Government Obligations which through the payment of interest and
         principal in respect thereof in accordance with their terms will
         provide not later than one day before the due date of any payment
         referred to in clause (A) or (B) of this subparagraph (d) money in an
         amount or (iii) a combination thereof, sufficient, in the opinion of a
         nationally recognized firm of independent certified public accountants
         expressed in a written certification thereof delivered to the Trustee,
         to pay and discharge (A) the principal of (and premium, if any) and
         each installment of principal of (and premium, if any) and interest on
         the Outstanding Securities on the Stated Maturity of such principal or
         installment of principal and interest and (B) any mandatory sinking
         fund payments applicable to the Securities on the day on which such
         payments are due and payable in accordance with the terms of this
         Indenture and of the Securities;

                  (e) such deposit shall not cause the Trustee with respect to
         the Securities to have a conflicting interest as defined in Section 608
         and for purposes of the Trust Indenture Act with respect to the
         Securities;

                                       31
<PAGE>   37

                  (f) such deposit will not result in a breach or violation of,
         or constitute a default under, this Indenture or any other agreement or
         instrument to which the Company is a party or by which it is bound;

                  (g) such provision would not cause any Outstanding Securities
         then listed on the New York Stock Exchange or other securities exchange
         to be de-listed as a result thereof;

                  (h) no Event of Default or event which with notice or lapse of
         time would become an Event of Default with respect to the Securities
         shall have occurred and be continuing on the date of such deposit or
         during the period ending on the 123rd day after such date;

                  (i) the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel to the effect that there has been
         a change in applicable Federal law such that, or the Company has
         received from, or there has been published by, the Internal Revenue
         Service a ruling to the effect that, Holders of the Securities will not
         recognize income, gain or loss for Federal income tax purposes as a
         result of such deposits, defeasance and discharge and will be subject
         to Federal income tax on the same amount and in the same manner and at
         the same times, as would have been the case if such deposit, defeasance
         and discharge had not occurred; and

                  (j) the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent relating to the defeasance contemplated by this Section have
         been complied with.

                                  ARTICLE FIVE
                                    REMEDIES

SECTION 501.  Events of Default.

         "Event of Default", wherever used herein with respect to Securities of
any series, and unless otherwise provided with respect to Securities of any
series pursuant to Section 301(11), means any one of the following events
(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):

                  (1) default in the payment of any interest upon any Security
         of that series 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

                                       32
<PAGE>   38

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

                  (4) default in the performance, or breach, of any covenant or
         warranty of the Company in this Indenture (other than a covenant or
         warranty a default in whose performance or whose breach is elsewhere in
         this Section specifically dealt with or which has expressly been
         included in this Indenture solely for the benefit of a series of one or
         more Securities other than that series), and continuance of such
         default or breach for a period of 60 days after there has been given,
         by registered or certified mail, to the Company by the Trustee or to
         the Company and the Trustee by the Holders of at least 25% in aggregate
         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

                  (5) an event of default, as defined in any indenture or
         instrument under which the Company or any Restricted Subsidiary shall
         have outstanding at least $10,000,000 aggregate principal amount of
         indebtedness for money borrowed, shall happen and be continuing and
         such indebtedness shall, as a result thereof, have been accelerated so
         that the same shall be or become due and payable prior to the date on
         which the same would otherwise have become due and payable, and such
         acceleration shall not be rescinded or annulled within 10 days after
         notice thereof shall have been given, by registered or certified mail,
         to the Company by the Trustee, or to the Company and the Trustee by the
         Holders of at least 25% in aggregate principal amount of the Securities
         at the time Outstanding; provided, however, that if such event of
         default under such indenture or instrument shall be remedied or cured
         by the Company or waived by the Holders of such indebtedness, then,
         unless the Securities of any series shall have been accelerated as
         provided herein, the Event of Default hereunder by reason thereof shall
         be deemed likewise to have been thereupon remedied, cured or waived
         without further action upon the part of either the Trustee or any
         Holders of the Securities of any series; or

                  (6) the entry by a court having jurisdiction in the premises
         of (A) a decree or order for relief in respect of the Company in an
         involuntary case or proceeding under any applicable Federal or State
         bankruptcy, insolvency, reorganization or other similar law or (B) a
         decree or order adjudging the Company a bankrupt or insolvent, or
         approving as properly filed by any party other than the Company a
         petition seeking reorganization, arrangement, adjustment or composition
         of or in respect of the Company under any applicable Federal or State
         law, or appointing a custodian, receiver, liquidator, assignee,
         trustee, sequestrator or other similar official of the Company or of
         all or substantially all of its property, or ordering the winding up or
         liquidation of its affairs, and the continuance of any such decree or
         order for relief specified in clause (A) or (B) or any such other
         decree or order unstayed and in effect for a period of 60 consecutive
         days; or

                  (7) the commencement by the Company of a voluntary case or
         proceeding under any applicable Federal or state bankruptcy,
         insolvency, reorganization or other similar law or of any other case or
         proceeding to be adjudicated a bankrupt or insolvent, or the consent by
         it to the entry of a decree or order for relief in respect of the
         Company

                                       33
<PAGE>   39

         in an involuntary case or proceeding under any applicable Federal or
         State bankruptcy, insolvency, reorganization or other similar law or to
         the commencement of any bankruptcy or insolvency case or proceeding
         against it, or the filing by it of a petition or answer or consent
         seeking reorganization or relief under any applicable Federal or State
         bankruptcy or insolvency law, or the consent by it to the filing of
         such petition or to the appointment of or taking possession by a
         custodian, receiver, liquidator, assignee, trustee, sequestrator or
         other similar official of the Company or of all or substantially all of
         its property, or the making by it of an assignment for the benefit of
         creditors, or the admission by it in writing of its inability to pay
         its debts generally as they become due, or the taking of corporate
         action by the Company in furtherance of any such action; or

                  (8) any other Event of Default provided with respect to
         Securities of that series as provided in Section 301(11).

SECTION 502.  Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default with respect to Outstanding Securities of any
series occurs and is continuing, then and in every such case the Trustee or the
Holders of not less than 25% in aggregate principal amount of the Outstanding
Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such lesser
portion of the principal amount of such Securities as may be specified in the
terms thereof) of all of the Securities of that series to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified
portion thereof) shall become immediately due and payable.

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

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

                           (A) all overdue interest on all Securities of that
                  series,

                           (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 at
                  the rate or rates prescribed therefor in such Securities,

                           (C) to the extent that payment of such interest is
                  lawful, interest upon overdue interest at the rate or rates
                  prescribed therefor in such Securities, and

                           (D) all sums paid or advanced by the Trustee
                  hereunder and the reasonable compensation, expenses,
                  disbursements and advances of the Trustee,

                                       34
<PAGE>   40

                  its agents and counsel, and any other amounts due the Trustee
                  under Section 607; and

                  (2) all Events of Default with respect to Securities of that
         series, other than the non-payment of the principal of Securities of
         that series which have become due solely by such declaration of
         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 on any
         Security 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 at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Security, the whole amount then due and payable on such Security
for principal (and premium, if any) and interest and, to the extent that payment
of such interest shall be legally enforceable, interest on any overdue principal
(and premium, if any) and on any overdue interest at the rate or rates
prescribed therefor in such Security, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

         If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid, may
prosecute such proceeding to judgment or final decree and may enforce the same
against the Company or any other obligor upon such Security and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of
the property of the Company or any other obligor upon such Security, wherever
situated.

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

SECTION 504. Trustee May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the
Securities or all or substantially all of the property of the

                                       35
<PAGE>   41

Company or of such other obligor, the Trustee (irrespective of whether the
principal of the Securities shall then be due and payable as therein expressed
or by declaration or otherwise and irrespective of whether the Trustee shall
have made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceeding or
otherwise,

                  (i) to file and prove a claim for the whole amount of
         principal (and premium, if any) or such portion of the principal amount
         of any series of Original Issue Discount Securities as may be specified
         in the terms of such series and interest owing and unpaid in respect of
         the Securities and to file such other papers or documents as may be
         necessary or advisable in order to have the claims of the Trustee
         (including any claim for the reasonable compensation, expenses,
         disbursements and advances of the Trustee, its agents and counsel, and
         any other amounts due the Trustee under Section 607) and of the Holders
         allowed in such judicial proceeding, and

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

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 607.

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

SECTION 505.  Trustee May Enforce Claims Without Possession of Securities.

         All rights of action and claims under this Indenture or the Securities
may be prosecuted and enforced by the Trustee without the possession of any of
the Securities or the production thereof in any proceeding relating thereto, and
any such proceeding instituted by the Trustee shall be brought in its own name
as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and for any
other amounts due the Trustee under Section 607, be for the ratable benefit of
the Holders of the Securities in respect of which such judgment has been
recovered.

SECTION 506.  Application of Money Collected.

         Any money collected by the Trustee pursuant to this Article shall be
applied in the following order, at the date or dates fixed by the Trustee and,
in case of the distribution of such money on account of principal (or premium,
if any) or interest, upon presentation of the

                                       36
<PAGE>   42

Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

                  FIRST: To the payment of all amounts due the Trustee under
         Section 607; and

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

                  THIRD: The balance, if any, to the Person or Persons entitled
         thereto.

SECTION 507.  Limitation on Suits.

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

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

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

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

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

                  (5) no direction inconsistent with such written request has
         been given to the Trustee during such 60-day period by the Holders of a
         majority in principal amount of the Outstanding Securities of that
         series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other of
such Holders, or to obtain or to seek to obtain priority or preference over any
other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all of such
Holders.

SECTION 508.  Unconditional Right of Holders to Receive Principal, Premium and
              Interest.

         Notwithstanding any other provision in this Indenture, the Holder of
any Security 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 on such Security on the Stated Maturity or

                                       37
<PAGE>   43

Maturities expressed in such Security (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such payment,
and such rights shall not be impaired without the consent of such Holder.

SECTION 509.  Restoration of Rights and Remedies.

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

SECTION 510.  Rights and Remedies Cumulative.

         Except as otherwise provided with respect to the replacement or payment
of mutilated, destroyed, lost or stolen Securities in the last paragraph of
Section 306, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

SECTION 511.  Delay or Omission Not Waiver.

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

SECTION 512.  Control by Holders.

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

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

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

                                       38
<PAGE>   44

SECTION 513.  Waiver of Past Defaults.

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

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

                  (2) in respect of a covenant or provision hereof which under
         Article Nine cannot be modified or amended without the consent of the
         Holder of each Outstanding Security of such series affected;

provided that, a majority in aggregate principal amount of Outstanding
Securities may rescind and annul a declaration of payment due as provided in
Section 502.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to waive any past default
hereunder. If a record date is fixed, the Holders on such record date, or their
duly designated proxies, and only such Persons, shall be entitled to waive any
default hereunder, whether or not such Holders remain Holders after such record
date; provided, that unless such majority in principal amount shall have waived
such default prior to the date which is 90 days after such record date, any such
waiver of such default previously given shall automatically and without further
action by any Holder be canceled and of no further effect.

         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 by
such Holder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys'
fees, 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; provided,
however, that the provisions of this Section shall not apply to any suit
instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more
than 10% in principal amount of the Outstanding Securities of any series, or to
any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the
Stated Maturity or Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).

                                       39
<PAGE>   45

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, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                   ARTICLE SIX
                                   THE TRUSTEE

SECTION 601.  Certain Duties and Responsibilities.

         The provisions of TIA Section 315 shall apply to the Trustee.

SECTION 602.  Notice of Defaults.

         Within 90 days after the occurrence of any default hereunder with
respect to the Securities of any series, the Trustee shall transmit by mail to
all Holders of Securities of such series, as their names and addresses appear in
the Security Register, notice of such default hereunder known to the 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 on any Security of such series or in the payment of any
sinking fund installment with respect to Securities of such series, the Trustee
shall be protected in withholding such notice if and so long as the board of
directors, the executive committee or a trust committee of directors and/or
Responsible Officers of the Trustee in good faith determine that the withholding
of such notice is in the interest of the Holders of Securities of such series;
and provided, further, that in the case of any default of the character
specified in Section 501(4) with respect to Securities of such series, no such
notice to Holders shall be given until at least 30 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 such series.

SECTION 603.  Certain Rights of Trustee.

         Subject to the provisions of TIA Section 315(a) through 315(d):

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

                                       40
<PAGE>   46

                  (b) any request or direction of the Company mentioned herein
         shall be sufficiently evidenced by a Company Request or Company Order
         or as otherwise expressly provided herein and any resolution of the
         Board of Directors may be sufficiently evidenced by a Board Resolution;

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

                  (d) the Trustee may consult with counsel and the written
         advice of such counsel or any Opinion of Counsel shall be full and
         complete authorization and protection in respect of any action taken,
         suffered or omitted by it hereunder in good faith and in reliance
         thereon;

                  (e) the Trustee shall be under no obligation to exercise any
         of the rights or powers vested in it by this Indenture at the request
         or direction of any of the Holders pursuant to this Indenture, unless
         such Holders shall have offered to the 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) the Trustee shall not be bound to make any investigation
         into the facts or matters stated in any resolution, certificate,
         statement, instrument, opinion, report, notice, request, direction,
         consent, order, bond, debenture, note, other evidence of indebtedness
         or other paper or document, but the Trustee, in its discretion, may
         make such further inquiry or investigation into such fact or matters as
         it may see fit, and, if the Trustee shall determine to make such
         further inquiry or investigation, it shall be entitled to examine the
         books, records and premises of the Company, personally or by agent or
         attorney;

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

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

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

                                       41
<PAGE>   47

                  (j) except with respect to Section 1001, the Trustee shall
         have no duty to inquire as to the performance of the Company with
         respect to the covenants contained in Article 10. In addition, the
         Trustee shall not be deemed to have knowledge of an Event of Default
         except (i) any Default or Event of Default occurring pursuant to
         Sections 501(1), 501(2), 501(3) or 1001 or (ii) any Default or Event of
         Default of which the Trustee shall have received written notification
         or obtained actual knowledge.

                  (k) delivery of reports, information and documents to the
         Trustee under Section 704(1) is for informational purposes only and the
         Trustee's receipt of the foregoing shall not constitute constructive
         notice of any information contained therein or determinable from the
         information contained therein, including the Company's compliance with
         any of their covenants hereunder (as to which the Trustee is entitled
         to rely exclusively on Officers' Certificates).

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, shall be taken as the statements of
the Company, and neither the Trustee nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee makes no representations as to
the validity or sufficiency of this Indenture or of the Securities. The Trustee
or any Authenticating Agent shall not be accountable for the use or application
by the Company of Securities or the proceeds thereof.

SECTION 605.  May Hold Securities.

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

SECTION 606.  Money Held in Trust.

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

SECTION 607.  Compensation and Reimbursement.

         The Company agrees

                  (1) to pay to the Trustee from time to time reasonable
         compensation 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);

                                       42
<PAGE>   48

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

                  (3) to indemnify the Trustee and its agents for, and to hold
         it harmless against, any loss, liability or expense incurred without
         negligence or bad faith on its part, arising out of or in connection
         with the acceptance or administration of the trust or trusts hereunder,
         including the costs and expenses of defending itself against any claim
         or liability in connection with the exercise or performance of any of
         its powers or duties hereunder.

         The obligations of the Company under this Section 607 to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder
and shall survive the satisfaction and discharge of this Indenture. Such
additional indebtedness shall be a senior claim to that of the Securities upon
all property and funds held or collected by the Trustee as such, except funds
held in trust for the payment of principal of (and premium, if any) or interest
on particular Securities, and the Securities are hereby subordinated to such
senior claim.

SECTION 608.  Disqualification; Conflicting Interests.

         The provisions of TIA Section 310(b) shall apply to the Trustee.

SECTION 609.  Corporate Trustee Required; Eligibility.

         There shall at all times be a Trustee hereunder which shall be eligible
to act under TIA Section 310(a)(1) and shall have a combined capital and surplus
of at least $25,000,000 and subject to supervision or examination by Federal,
State or District of Columbia authority. If such Corporation publishes reports
of condition at least annually, pursuant to law or to the requirements of said
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such Corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition
so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section, it shall resign immediately in
the manner and with the effect hereinafter specified in this Article. Neither
the Company, nor any Person directly or indirectly controlling, controlled by or
under common control with the Company, shall act as Trustee hereunder.

SECTION 610.  Resignation and Removal; Appointment of Successor.

         (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 611.

                                       43
<PAGE>   49

         (b) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 611 shall
not have been delivered to the Trustee 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 may be removed at any time with respect to the
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Securities of such series, delivered to the Trustee and to
the Company.

         (d) If at any time:

                  (1) the Trustee shall fail to comply with TIA Section 310(b)
         after written request therefor by the Company or by any Holder who has
         been a bona fide Holder of a Security for at least six months, or

                  (2) the 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) the Trustee shall become incapable of acting or shall be
         adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
         property shall be appointed or any public officer shall take charge or
         control of the Trustee or of its property or affairs for the purpose of
         rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all Securities, or (ii) subject to Section 514, any
Holder who has been a bona fide Holder of a Security 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 the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

         (e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) 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 any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
611, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and

                                       44
<PAGE>   50

accepted appointment in the manner required by Section 611, 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 by mailing
written notice of such event by first-class mail, postage prepaid, to all
Holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee
with respect to the Securities of such series and the address of its Corporate
Trust Office.

SECTION 611.  Acceptance of Appointment by Successor.

         (a) In case of the appointment hereunder of a successor Trustee with
respect to all Securities, every such successor Trustee so appointed shall
execute, acknowledge and deliver to the Company and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal
of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on the request
of the Company or the successor Trustee, such retiring Trustee shall, upon
payment of its charges, execute and deliver an instrument transferring to such
successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property
and money held by such retiring Trustee hereunder.

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall be deemed necessary or desirable to confirm
that all the rights, powers, trusts and duties of the retiring Trustee with
respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental
indenture the resignation or removal of the retiring Trustee shall become
effective to the extent provided therein and each such successor Trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates;

                                       45
<PAGE>   51

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. Whenever there is a successor Trustee with respect to one or more (but
less than all) series of securities issued pursuant to this Indenture, the terms
"Indenture" and "Securities" shall have the meanings specified in the provisos
to the respective definitions of those terms in Section 101 which contemplate
such situation.

         (c) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to such successor Trustee all such rights, powers and trusts referred
to in paragraph (a) and (b) of this Section, as the case may be.

         (d) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be qualified and eligible
under this Article.

SECTION 612.  Merger, Conversion, Consolidation or Succession to Business.

         Any Corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any Corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
Corporation succeeding to all or substantially all the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder, provided such
Corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities; in case
any of the Securities shall not have been authenticated by the Trustee then in
office, any successor by merger, conversion or consolidation to such Trustee may
authenticate such Securities either in the name of such predecessor hereunder or
in the name of the successor Trustee; and in all such cases such certificates
shall have the full force which it is anywhere in the Securities or in this
Indenture provided that the certificate of the Trustee shall have; provided,
however, that the right to adopt the certificate of authentication of any
predecessor Trustee or to authenticate Securities in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion or
consolidation.

SECTION 613.  Preferential Collection of Claims Against Company.

         The Trustee shall comply with TIA Section 311(a). A Trustee which has
resigned or been removed is subject to TIA Section 311(a) to the extent
indicated therein.

SECTION 614.  Appointment of Authenticating Agent.

         At any time when any of the Securities remain Outstanding the Trustee,
with the concurrence of the Company, may appoint an Authenticating Agent or
Agents with respect to

                                       46
<PAGE>   52

one or more series of Securities which shall be authorized to act on behalf of
the Trustee to authenticate Securities of such series, and Securities so
authenticated shall be entitled to the benefits of this Indenture and shall be
valid and obligatory for all purposes as if authenticated by the Trustee
hereunder. Wherever reference is made in this Indenture to the authentication
and delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company and shall at all
times be 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 act as Authenticating Agent, having a combined capital and
surplus of not less than $50,000,000 and subject to supervision or examination
by Federal, State or District of Columbia authority. If such Authenticating
Agent publishes reports of condition at least annually, pursuant to law or to
the requirements of said supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall mail written notice of
such appointment by first class mail, postage prepaid, to all Holders of
Securities of the series with respect to which such Authenticating Agent will
serve, as their names and addresses appear in the Security Register. 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 each Authenticating Agent from time to
time reasonable compensation for its services under this Section.

                                       47
<PAGE>   53

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

         This is one of the Securities of the series designated herein and
issued pursuant to the within-mentioned Indenture.

                                         U.S. Bank Trust National Association,
                                         as Trustee

                                         By
                                            -------------------------------
                                                As Authenticating Agent

                                         By
                                            -------------------------------
                                                  Authorized Officer

                                  ARTICLE SEVEN
                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

SECTION 701.  Company to Furnish Trustee Names and Addresses of Holders.

         If the Trustee is not acting as Security Registrar for the Securities
of any series, the Company will furnish or cause to be furnished to the Trustee.

                  (a) at intervals of no more than six months commencing after
         the first issue of such series, a list, in such form as the Trustee may
         reasonably require, of the names and addresses of the Holders as of a
         date not more than 15 days prior to the time such information is
         furnished, and

                  (b) at such other times as the Trustee may request in writing,
         within 30 days after the receipt by the Company of any such request, a
         list of similar form and content as of a date not more than 15 days
         prior to the time such list is furnished.

SECTION 702.  Preservation of Information; Communications to Holders.

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

                                       48
<PAGE>   54

         (b) The rights of Holders to communicate with other Holders with
respect to their rights under this Indenture or under the Securities, and the
corresponding rights and privileges of the Trustee, shall be as provided by TIA
Section 312(b).

         (c) Every Holder of Securities, by receiving and holding the same,
agrees with the Company and the Trustee that neither the Company nor the 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
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.

         Within 60 days after May 15 of each year commencing with the later of
May 1, 2000 or the first May 1 after the first issuance of Securities pursuant
to this Indenture, the Trustee shall transmit by mail to all Holders of
Securities as provided in TIA Section 313(c) a brief report dated as of such May
1 if required by TIA Section 313(a). A copy of each such report shall, at the
time of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which any Securities are listed, with the Commission and with the
Company. The Company will notify the Trustee when any Securities are listed on
any stock exchange.

SECTION 704.  Reports by Company.

         The Company shall:

                  (1) file with the Trustee, within 15 days after the Company is
         required to file the same with the Commission, copies of the annual
         reports and of the information, documents and other reports (or copies
         of such portions of any of the foregoing as the Commission may from
         time to time by rules and regulations prescribe) which the Company may
         be required to file with the Commission pursuant to Section 13 or
         Section 15 (d) of the Securities Exchange Act of 1934; or, if the
         Company is not required to file information, documents or reports
         pursuant to either of said Sections, then it shall file with the
         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 Securities Exchange Act of
         1934 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 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;

                                       49
<PAGE>   55

                  (3) transmit by mail to all Holders, as their names and
         addresses appear in the Security Register, within 30 days after the
         filing thereof with the Trustee, such summaries of any information,
         documents and reports required to be filed by the Company pursuant to
         paragraphs (1) and (2) of this Section as may be required by rules and
         regulations prescribed from time to time by the Commission; and

                  (4) furnish to the Trustee, within 120 days after the end of
         each fiscal year of the Company ending after the date hereof, a brief
         certificate of the Company's principal executive officer, principal
         financial officer or principal accounting officer as to his or her
         knowledge of the Company's compliance with all conditions and covenants
         under this Indenture. For purposes of this paragraph, such compliance
         shall be determined without regard to any period of grace or
         requirement of notice provided under this Indenture.

                                  ARTICLE EIGHT
              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

         The Company shall not consolidate with or merge into any other Person
or convey, transfer or lease its properties and assets substantially as an
entirety to any Person unless: (1) the Person formed by such consolidation or
into which the Company is merged or the Person which acquires by conveyance or
transfer, or which leases, the properties and assets of the Company
substantially as an entirety shall be a Corporation, partnership or trust, shall
be organized and validly 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, in form satisfactory to the Trustee, the due and punctual payment of
the principal of (and premium, if any) and interest on all the Securities and
the performance or observance of every covenant of this Indenture on the part of
the Company to be performed or observed; (2) immediately after giving effect to
such transaction and treating any indebtedness which becomes an obligation of
the Company or any Subsidiary as a result of such transaction as having been
incurred by the Company or such Subsidiary at the time of such transaction, no
Event of Default, and no event which, after notice or lapse of time or both,
would become an Event of Default, shall have happened and be continuing; and (3)
the Company has delivered to the Trustee an Officers' Certificate and an Opinion
of Counsel, each stating that such consolidation, merger, conveyance, transfer
or lease and 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 Substituted.

         Upon any consolidation of the Company with, or merger by the Company
into, any other Person or any conveyance, transfer or lease of the properties
and assets of the Company substantially as an entirety in accordance with
Section 801, the successor Person formed by such consolidation or into which the
Company is merged or to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,

                                       50
<PAGE>   56

the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter, except in the case
of a lease, the predecessor Person shall be relieved of all obligations and
covenants under this Indenture and the Securities.

                                  ARTICLE NINE
                             SUPPLEMENTAL INDENTURES

SECTION 901.  Supplemental Indentures Without Consent of Holders.

         Without the consent of any Holders, the Company, when authorized by or
pursuant to a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:

                  (1) to evidence the succession of another Person to the
         Company and the assumption by any such successor of the covenants of
         the Company herein and in the Securities; or

                  (2) to add to the covenants of the Company for the benefit of
         the Holders of all or any series of Securities (and if such covenants
         are to be for the benefit of less than all series of Securities,
         stating that such covenants are expressly being included solely for the
         benefit of one or more specified series) or to surrender any right or
         power herein conferred upon the Company; or

                  (3) to add any additional Events of Default (and if such
         Events of Default are to be for the benefit of less than all series of
         Securities, stating that such Events of Default are being included
         solely for the benefit of one or more specified series); or

                  (4) to add to or change any of the provisions of this
         Indenture to such extent as shall be necessary to permit or facilitate
         the issuance of Securities in bearer form, registrable or not
         registrable as to principal, and with or without interest coupons; or

                  (5) to add to, change or eliminate any of the provisions of
         this Indenture in respect of one or more series of Securities, provided
         that any such addition, change or elimination (i) shall neither (A)
         apply to any Security of any series created prior to the execution of
         such supplemental indenture and entitled to the benefit of such
         provision nor (B) modify the rights of the Holder of any such Security
         with respect to such provision or (ii) shall become effective only when
         there is no such Security Outstanding; or

                  (6) to secure the Securities; or

                  (7) to establish the form or terms of Securities of any series
         as permitted by Sections 201 and 301; or

                  (8) 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

                                       51
<PAGE>   57

         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

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

SECTION 902.  Supplemental Indentures with Consent of Holders.

         With the consent of the Holders of not less than a majority in
aggregate principal amount of the Outstanding Securities of each series affected
by such supplemental indenture, by Act of said Holders delivered to the Company
and the Trustee, the Company, when authorized by a Board Resolution, and the
Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of modifying in any manner the rights of
the Holders of Securities of such series under this Indenture; 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 on, any such Security, or
         reduce the principal amount thereof or the rate of interest thereon or
         any premium payable upon the redemption thereof, or reduce the amount
         of the principal of an Original Issue Discount Security that would be
         due and payable upon a declaration of acceleration of the Maturity
         thereof pursuant to Section 502, or change any Place of Payment where,
         or the coin or currency in which, any such Security or any premium or
         the 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 or repayment, on or after the
         Redemption Date or any repayment date), or

                  (2) reduce the percentage in principal amount of the
         Outstanding Securities of any series, the consent of whose Holders is
         required for any such supplemental indenture, or the consent of whose
         Holders is required for any waiver 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 902, Section
         513 or Section 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
         Outstanding Security affected thereby; provided however, that this
         Clause shall not be deemed to require the consent of any Holder with
         respect to changes in the references to "the Trustee" and concomitant
         changes in this Section 902 and Section 1010, or the deletion of this
         proviso, in accordance with the requirements of Sections 611(b) and
         901(8).

                                       52
<PAGE>   58

A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Securities, or which modifies the
rights of the Holders of Securities of such series with respect to such covenant
or other provision, shall be deemed not to affect the rights under this
Indenture of the Holders of Securities of any other series.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to consent to any indenture
supplemental hereto. If a record date is fixed for such purpose, the Holders on
such record date or their duly designated proxies, and only such Persons, shall
be entitled to consent to such supplemental indenture, whether or not such
Holders remain Holders after such record date; provided, that unless such
consent shall have become effective by virtue of the requisite percentage having
been obtained prior to the date which is 90 days after such record date, any
such consent previously given shall automatically and without further action by
any Holder be canceled and of no further effect.

         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 shall be entitled to receive,
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 may, but shall not be
obligated to, enter into any such supplemental indenture which affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

SECTION 904.  Effect of Supplemental Indentures.

         Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Securities theretofore or thereafter authenticated and delivered hereunder
shall be bound thereby to the extent provided therein.

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 authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in a form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the

                                       53
<PAGE>   59

         Company shall so determine, new Securities of any series so modified as
         to conform, in the opinion of the Trustee and the Company, to any such
         supplemental indenture may be prepared and executed by the Company and
         authenticated and delivered by the Trustee in exchange for Outstanding
         Securities of such series.

SECTION 907. Notice of Supplemental Indentures.

         Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Section 902, the Company
shall give notice thereof to the Holders of each Outstanding Security so
affected, pursuant to Section 106, setting forth in general terms the substance
of such supplemental indenture.

                                   ARTICLE TEN
                                    COVENANTS

SECTION 1001.  Payment of Principal, Premium and Interest.

         The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of (and premium,
if any) and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture. In the absence of contrary
provisions with respect to the Securities of any series, interest on the
Securities of any series may, at the option of the Company, be paid by check
mailed to the address of the Person entitled thereto as it appears on the
Security Register.

SECTION 1002.  Maintenance of Office or Agency.

         The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the
location and any change in the location of such office or agency. If at any time
the Company shall fail to maintain any such required office or agency or shall
fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

         The Company may also from time to time designate one or more other
offices or agencies where the Securities of one or more series may be presented
or surrendered for any or all such purposes and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain

                                       54
<PAGE>   60

an office or agency in each Place of Payment for Securities of any series for
such purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

SECTION 1003.  Money for Securities Payments to Be Held in Trust.

         If the Company shall at any time act as its own Paying Agent with
respect to any series of Securities, it will, on or before each due date of the
principal of (and premium, if any) or interest on any of the Securities of that
series, segregate and hold in trust for the benefit of the Persons entitled
thereto a sum in the currency in which such series of Securities is payable
sufficient to pay the principal (and premium, if any) or interest so becoming
due until such sums shall be paid to such Persons or otherwise disposed of as
herein provided or will promptly notify the Trustee of its failure so to act.

         Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to each due date of the principal of (and
premium, if any) or interest on any Securities of that series, deposit with a
Paying Agent a sum sufficient to pay the principal (and premium, if any) or
interest so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium or interest, or (unless such Paying
Agent is the Trustee) the Company will promptly notify the Trustee of its
failure so to act.

         The Company will cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the 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 (and premium, if any) or interest 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 the Trustee notice of any default by the Company (or
         any other obligor upon the Securities of that series) in the making of
         any payment of principal (and premium, if any) or interest on the
         Securities of that series; and

                  (3) at any time during the continuance of any such default,
         upon the written request of the Trustee, forthwith pay to the 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 all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent, and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such money.

                                       55
<PAGE>   61

         Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of (and premium, if
any) or interest on any Security of any series and remaining unclaimed for two
years after such principal (and premium, if any) or interest has become due and
payable shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; provided, however, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, notice that such
money remains unclaimed and that, after a date specified therein, which shall
not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Company on Company
Request.

SECTION 1004.  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 existence,
corporate rights (charter and statutory) and corporate franchises; provided,
however, that the Company shall not be required to preserve any such right or
franchise if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
that the loss thereof is not disadvantageous in any material respect to the
Holders.

SECTION 1005.  Maintenance of Properties.

         The Company will cause all Principal Properties used or useful in the
conduct of its business to be maintained and kept in good condition, repair and
working order and will cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in the judgment of
the Company may be necessary so that the business carried on in connection
therewith may be properly and advantageously conducted; provided, however, that
nothing in this Section shall prevent the Company from discontinuing the
operation or maintenance or selling or disposing of any of such Principal
Properties if such discontinuance, sale or disposition is, in the judgment of
the Company, desirable in the conduct of its business and not disadvantageous in
any material respect to the Holders.

SECTION 1006.  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 and a lien upon its property: (1) all
taxes, assessments and governmental charges levied or imposed upon it or upon
its income, profits or property, and (2) all lawful claims for labor, materials
and supplies 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.

                                       56
<PAGE>   62

SECTION 1007.  Restriction on Secured Debt.

         (a) The Company will not itself, and will not permit any Restricted
Subsidiary to, incur, issue, assume or guarantee any notes, bonds, debentures or
other similar evidences of indebtedness for money borrowed (notes, bonds,
debentures or other similar evidences of indebtedness for money borrowed being
hereinafter in this Article called "Debt"), secured by pledge of, or mortgage or
other lien on, any Principal Property, now owned or hereafter owned by the
Company or any Restricted Subsidiary, or any shares of stock or Debt of any
Restricted Subsidiary held by or owed to the Company (any such pledges,
mortgages and other liens being hereinafter in this Article called "Lien" or
"Liens"), without effectively providing that the Securities of each series then
Outstanding (together with, if the Company shall so determine, any other Debt of
the Company or such Restricted Subsidiary then existing or thereafter created
which is not subordinate to the Securities of each series then Outstanding)
shall be secured equally and ratably with (or prior to) such secured Debt, so
long as such secured Debt shall be so secured; provided, however, that this
Section shall not apply to, and there shall be excluded from secured Debt in any
computation under this Section, Debt secured by:

                  (1) Liens existing on the date of this Indenture;

                  (2) Liens on any Principal Property acquired, constructed or
         improved by the Company or any Restricted Subsidiary after the date of
         this Indenture which are created or assumed contemporaneously with such
         acquisition, construction or improvement, or within 120 days before or
         after the completion thereof, to secure or provide for the payment of
         all or any part of the cost of such acquisition, construction or
         improvement (including related expenditures capitalized for Federal
         income tax purposes in connection therewith) incurred after the date of
         this Indenture;

                  (3) Liens of or upon any property, shares of capital stock or
         Debt existing at the time of acquisition thereof, whether by merger,
         consolidation, purchase, lease or otherwise (including Liens of or upon
         property, shares of capital stock or indebtedness of a corporation
         existing at the time such corporation becomes a Restricted Subsidiary);

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

                  (5) Liens in favor of the United States of America or any
         State thereof, or any department, agency or instrumentality or
         political subdivision of the United States of America or any State
         thereof or political entity affiliated therewith, or in favor of any
         other country, or any political subdivision thereof, to secure partial,
         progress, advance or other payments, or other obligations, pursuant to
         any contract or statute or to secure any Debt incurred for the purpose
         of financing all or any part of the cost of acquiring, constructing or
         improving the property subject to such Liens (including Liens incurred
         in connection with pollution control, industrial revenue or similar
         financings);

                  (6) Liens imposed by law, such as mechanics', workmen's,
         repairmen's, materialmen's, carriers', warehousemen's, vendors' or
         other similar liens arising in the

                                       57
<PAGE>   63

         ordinary course of business, or governmental (federal, state or
         municipal) liens arising out of contracts for the sale of products or
         services by the Company or any Restricted Subsidiary, or deposits or
         pledges to obtain the release of any of the foregoing;

                  (7) pledges or deposits under workmen's compensation laws or
         similar legislation and Liens of judgments thereunder which are not
         currently dischargeable, or good faith deposits in connection with
         bids, tenders, contracts (other than for the payment of money) or
         leases to which the Company or any Restricted Subsidiary is a party, or
         deposits to secure public or statutory obligations of the Company or
         any Restricted Subsidiary, or deposits in connection with obtaining or
         maintaining self-insurance or to obtain the benefits of any law,
         regulation or arrangement pertaining to unemployment insurance, old age
         pensions, social security or similar matters, or deposits of cash or
         obligations of the United States of America to secure surety, appeal or
         customs bonds to which the Company or any Restricted Subsidiary is a
         party, or deposits in litigation or other proceedings such as, but not
         limited to, interpleader proceedings;

                  (8) Liens created by or resulting from any litigation or other
         proceeding which is being contested in good faith by appropriate
         proceedings, including Liens arising out of judgments or awards against
         the Company or any Restricted Subsidiary with respect to which the
         Company or such Restricted Subsidiary is in good faith prosecuting an
         appeal or proceedings for review; or Liens incurred by the Company or
         any Restricted Subsidiary for the purpose of obtaining a stay or
         discharge in the course of any litigation or other proceeding to which
         the Company or such Restricted Subsidiary is a party;

                  (9) Liens for taxes or assessments or governmental charges or
         levies not yet due or delinquent, or which can thereafter be paid
         without penalty, or which are being contested in good faith by
         appropriate proceedings;

                  (10) Liens consisting of easements, rights-of-way, zoning
         restrictions, restrictions on the use of real property, and defects and
         irregularities in the title thereto, landlords' liens and other similar
         liens and encumbrances which, other than liens resulting from action of
         any governmental authority, do not interfere materially with the use of
         the property covered thereby in the ordinary course of the business of
         the Company or such Restricted Subsidiary and do not, in the opinion of
         the Company, materially detract from the value of such properties; or

                  (11) any extension, renewal or replacement (or successive
         extensions, renewals or replacements), as a whole or in part, of any
         Lien referred to in the foregoing clauses (1) to (10), inclusive;
         provided, that (i) such extension, renewal or replacement Lien shall be
         limited to all or a part of the same property, shares of stock or Debt
         that secured the Lien extended, renewed or replaced (plus improvements
         on such property) and (ii) the Debt secured by such Lien at such time
         is not increased.

         (b) Notwithstanding the restrictions contained in subdivision (a) of
this Section, the Company and its Restricted Subsidiaries, or any of them, may
incur, issue, assume or guarantee Debt secured by Liens without equally and
ratably securing the Securities of each series then

                                       58
<PAGE>   64

Outstanding, provided, that at the time of such incurrence, issuance, assumption
or guarantee, after giving effect thereto and to the retirement of any Debt
which is concurrently being retired, the aggregate amount of all outstanding
Debt secured by Liens which could not have been incurred, issued, assumed or
guaranteed by the Company or a Restricted Subsidiary without equally and ratably
securing the Securities of each series then Outstanding except for the
provisions of this subdivision (b), together with the aggregate amount of all
Attributable Debt incurred pursuant to Section 1008(b), does not at such time
exceed 5%.

SECTION 1008.     Restriction on Sale and Leaseback Transactions.

         (a) The Company will not itself, and it will not permit any Restricted
Subsidiary to, enter into any arrangement with any bank, insurance company or
other lender or investor (not including the Company or any Subsidiary) or to
which any such lender or investor is a party, providing for the leasing by the
Company or a Restricted Subsidiary for a period, including renewals, in excess
of three years of any Principal Property which has been or is to be sold or
transferred by the Company or any Restricted Subsidiary to such lender or
investor or to any person to whom funds have been or are to be advanced by such
lender or investor on the security of such Principal Property (herein referred
to as a "Sale and Leaseback Transaction") unless either:

                  (1) The Company or such Restricted Subsidiary would, at the
         time of entering into such arrangement, be entitled, without equally
         and ratably securing the Securities of each series then Outstanding, to
         incur Debt secured by a Lien on such property, pursuant to paragraphs
         (1) to (11), inclusive, of Section 1007; or

                  (2) the Company within 120 days after the sale or transfer
         shall have been made by the Company or by a Restricted Subsidiary,
         applies an amount equal to the greater of (i) the net proceeds of the
         sale of the Principal Property sold and leased back pursuant to such
         arrangement or (ii) the fair market value of the Principal Property so
         sold and leased back at the time of entering into such arrangement (as
         determined by any two of the following: the Chairman or a Vice Chairman
         of the Board of the Company, its President, its Chief Financial
         Officer, its Vice President of Finance, its Treasurer or its
         Controller) to the retirement of Funded Debt of the Company; provided,
         that the amount to be applied to the retirement of Funded Debt of the
         Company shall be reduced by (A) the principal amount of any Securities
         delivered within 120 days after such sale to the Trustee for retirement
         and cancellation, and (B) the principal amount of Funded Debt, other
         than Securities, voluntarily retired by the Company within 120 days
         after such sale. Notwithstanding the foregoing, no retirement referred
         to in this clause (a)(2) may be effected by payment at maturity or
         pursuant to any mandatory sinking fund payment or mandatory prepayment
         provision.

         (b) Notwithstanding the restrictions contained in subdivision (a) of
this Section, the Company and its Restricted Subsidiaries, or any of them, may
enter into a Sale and Leaseback Transaction, provided, that at the time of such
transaction, after giving effect thereto, the aggregate amount of all
Attributable Debt in respect of Sale and Leaseback Transactions existing at such
time which could not have been entered into except for the provisions of this
subdivision (b),

                                       59
<PAGE>   65

together with the aggregate amount of all outstanding Debt incurred pursuant to
Section 1007(b), does not at such time exceed 5%.

         (c) A Sale and Leaseback Transaction shall not be deemed to result in
the creation of a Lien.

SECTION 1009.  Defeasance of Certain Obligations.

         The following provisions shall apply to the Securities of each series
unless specifically otherwise provided in a Board Resolution, Officers'
Certificate or indenture supplemental hereto provided pursuant to Section 301.
The Company may omit to comply with any term, provision or condition set forth
in Sections 1005, 1006, 1007 and 1008, and any such omission with respect to
Sections 1005, 1006, 1007 and 1008 shall not be an Event of Default, in each
case with respect to the Securities of that series, provided that the following
conditions have been satisfied:

                  (1) with reference to this Section 1009, the Company has
         deposited or caused to be irrevocably deposited with the Trustee (or
         another trustee satisfying the requirements of Section 609) as trust
         funds in trust, specifically pledged as security for, and dedicated
         solely to, the benefit of the Holders of the Securities of that series,
         (i) money in an amount, or (ii) U.S. Government Obligations which
         through the payment of interest and principal in respect thereof in
         accordance with their terms will provide not later than one day before
         the due date of any payment referred to in clause (A) or (B) of this
         subparagraph (1) money in an amount, or (iii) a combination thereof,
         sufficient, in the opinion of a nationally recognized firm of
         independent public accountants expressed in a written certification
         thereof delivered to the Trustee, to pay and discharge (A) the
         principal of (and premium, if any) and each installment of principal of
         (and premium, if any) and interest on the Outstanding Securities on the
         Stated Maturity of such principal or installments of principal and
         interest and (B) any mandatory sinking fund payments or analogous
         payments applicable to the Securities of such series on the day on
         which such payments are due and payable in accordance with the terms of
         this Indenture and of such Securities;

                  (2) such deposit shall not cause the Trustee with respect to
         the Securities of that series to have a conflicting interest as defined
         in Section 608 and for purposes of the Trust Indenture Act with respect
         to the Securities of any series;

                  (3) such deposit will not result in a breach or violation of,
         or constitute a default under, this Indenture or any material agreement
         or instrument to which the Company is a party or by which it is bound;

                  (4) such deposit will not cause any Outstanding Securities
         then listed on the New York Stock Exchange or other securities exchange
         to be de-listed as a result thereof;

                  (5) no Event of Default under Sections 501(6) or (7) or event
         which with notice or lapse of time would become an Event of Default
         under Sections 501(6) or (7)

                                       60
<PAGE>   66

         with respect to the Securities of that series shall have occurred and
         be continuing on the date of such deposit;

                  (6) the Company has delivered to the Trustee an Opinion of
         Counsel to the effect that Holders of the Securities of such series
         will not recognize income, gain or loss for Federal income tax purposes
         as a result of such deposit and defeasance of certain obligations and
         will be subject to Federal income tax on the same amount and in the
         same manner and at the same times as would have been the case if such
         deposit and defeasance had not occurred; and

                  (7) the Company has delivered to the Trustee an Officers'
         Certificate and an Opinion of Counsel, each stating that all conditions
         precedent herein provided for relating to the defeasance contemplated
         in this Section have been complied with.

SECTION 1010.  Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Sections 1004 to 1008, inclusive, with
respect to the Securities of any series if before the time for such compliance
the Holders of not less than a majority in aggregate principal amount of the
Outstanding Securities of such series shall, by Act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition, but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

         The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Persons entitled to waive any such term,
provision or condition. If a record date is fixed for such purpose, the Holders
on such record date or their duly designated proxies, and only such Persons,
shall be entitled to waive any such term, provision or condition hereunder,
whether or not such Holders remain Holders after such record date; provided that
unless the Holders of not less than a majority in principal amount of the
Outstanding Securities of such series shall have waived such term, provision or
condition prior to the date which is 90 days after such record date, any such
waiver previously given shall automatically and without further action by any
Holder be canceled and of no further effect.

                                 ARTICLE ELEVEN
                            REDEMPTION OF SECURITIES

SECTION 1101.  Applicability of Article.

         Securities of any series which are redeemable before their Stated
Maturity shall be redeemable in accordance with their terms and (except as
otherwise specified as contemplated by Section 301 for Securities of any series)
in accordance with this Article.

                                       61
<PAGE>   67

SECTION 1102.  Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities shall be evidenced
by an Officers' Certificate. The Company shall, at least 45 days prior to the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of

                  (1) such Redemption Date,

                  (2) if the Securities of such series have different terms and
         less than all of the Securities of such series are to be redeemed, the
         terms of the Securities to be redeemed, and

                  (3) if less than all the Securities of such series with
         identical terms are to be redeemed, the principal amount of such
         Securities to be redeemed.

In the case of any redemption of Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate evidencing compliance with such restriction.

SECTION 1103.  Selection by Trustee of Securities to Be Redeemed.

         If less than all the Securities of like tenor of any series are to be
redeemed, the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Securities of like tenor of such series not previously called for redemption, by
such method as the Trustee shall deem fair and appropriate and which may provide
for the selection for redemption of portions (equal to the minimum authorized
denomination for Securities of like tenor of that series or any integral
multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series.

         The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Securities selected
for partial redemption, the principal amount thereof to be redeemed.

         For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities 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.

SECTION 1104.  Notice of Redemption.

                                       62
<PAGE>   68

         Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Securities to be redeemed, at each such Holder's address
appearing in the Security Register.

         All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

                  (3) if less than all the Outstanding Securities of like tenor
         of any series are to be redeemed, the identification (and, in the case
         of partial redemption, the principal amounts) of the particular
         Securities to be redeemed,

                  (4) that on the Redemption Date the Redemption Price will
         become due and payable upon each such Security to be redeemed and, if
         applicable, that interest thereon will cease to accrue on and after
         said date,

                  (5) the place or places where such Securities are to be
         surrendered for payment of the Redemption Price, and

                  (6) that the redemption is for a sinking fund, if such is the
         case.

         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 in the name and at the expense of the Company.

SECTION 1105.  Deposit of Redemption Price.

         On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount of
money in immediately available funds sufficient to pay the Redemption Price of,
and (except if the Redemption Date shall be an Interest Payment Date) 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, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 301, installments of interest 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,

                                       63
<PAGE>   69

registered as such at the close of business on the relevant Regular Record Dates
according to their terms and the provisions of Section 307.

         If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate prescribed
therefor in the Security.

SECTION 1107.  Securities Redeemed in Part.

         Any Security which is to be redeemed in part shall be surrendered at a
Place of Payment for such series (with, if the Company or the Trustee so
requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or such Holder's attorney duly authorized in writing), and the Company shall
execute, and the Trustee shall authenticate and deliver to the Holder of such
Security without service charge, a new Security or Securities of the same series
and of like tenor, of any authorized denomination as requested by such Holder,
in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Security so surrendered; provided, however, that
if a Global Security is so surrendered, such new Security so issued shall be a
new Global Security in a denomination equal to the unredeemed portion of the
principal of the Global Security so surrendered.

                                 ARTICLE TWELVE
                                  SINKING FUNDS

SECTION 1201.  Applicability of Article.

         The provisions of this Article shall be applicable to any sinking fund
for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 301 for Securities of such series.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any series is herein referred to as a "mandatory sinking
fund payment", and any payment in excess of such minimum amount provided for by
the terms of Securities of any series is herein referred to as an "optional
sinking fund payment". If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as
provided in Section 1202. Each sinking fund payment shall be applied to the
redemption of Securities of any series as provided for by the terms of
Securities of such series.

SECTION 1202.  Satisfaction of Sinking Fund Payments with Securities.

         The Company (1) may deliver Outstanding Securities of like tenor of a
series (other than any previously called for redemption) and (2) may apply as a
credit Securities of like tenor 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 like tenor of such series
required to be made pursuant to the terms of such

                                       64
<PAGE>   70

Securities as provided for by the terms of such series; provided that such
Securities have not been previously so credited. Such Securities shall be
received and credited for such purpose by the Trustee at the Redemption Price
specified in such Securities for redemption through operation of the sinking
fund and the amount of such sinking fund payment shall be reduced accordingly.

SECTION 1203.  Redemption of Securities for Sinking Fund.

         Not less than 60 days prior to each sinking fund payment date for
Securities of like tenor of a series, the Company will deliver to the Trustee an
Officers' Certificate specifying the amount of the next ensuing sinking fund
payment for such Securities pursuant to the terms of such Securities, the
portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting
Securities of like tenor of that series pursuant to Section 1202 and, at the
time of delivery of such Officers' Certificate, will also deliver to the Trustee
any Securities to be so delivered. If no such notice shall be delivered by the
Company, such sinking fund payment shall be satisfied by payment of cash. Not
less than 45 days before each such sinking fund payment date the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the
manner specified in Section 1103 and cause notice of the redemption thereof to
be given in the name of and at the expense of the Company in the manner provided
in Section 1104. Such notice having been duly given, the redemption of such
Securities shall be made upon the terms and in the manner stated in Sections
1106 and 1107.

         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.

                                       65
<PAGE>   71

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

                                                PENTAIR, INC.

                                                By
                                                   ----------------------------
                                                   [Name]
                                                   [Title]
Attest:

----------------------------
[Name]
Secretary
                                                U.S. BANK TRUST NATIONAL
                                                ASSOCIATION, as Trustee

                                                By
                                                   ----------------------------
                                                   [Name]
                                                   [Title]
Attest:

----------------------------
[Name]
[Title]

                                       66

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]