Document:

SETTLEMENT AGREEMENT 

        This
Settlement Agreement (the “Agreement”) is made and entered into as of
September 19, 2005 (the “Effective Date”), by and between Alliance
Pharmaceutical Corp. (the “Alliance”) and Imcor Pharmaceutical Co. (formerly
Photogen Technologies, Inc.) (“Imcor”). Alliance and Imcor may be referred to
herein individually as a “Party” and together as the “Parties.” 

RECITALS 

    A.                     On
June 10, 2003, Alliance and Imcor entered into an Asset Purchase Agreement
          pursuant to which, among other things, Alliance assigned and sold to Imcor
          certain assets related to Alliance’s imaging and diagnostic imaging
          business (the “Imagent Assets”), and Imcor assumed certain
liabilities           related to such Imagent Assets (the “Asset Purchase Agreement”).
          Capitalized terms not otherwise defined herein shall have the meanings ascribed
          to them under the Asset Purchase Agreement.  

    B.                     Alliance
and Imcor are co-plaintiffs in that certain litigation referred to as Imcor
Pharmaceutical Co. and Alliance Pharmaceutical Corp. v. Amersham Health           Inc. (“Amersham”),
Civil Action No. 03 CV 2853 currently pending           in the United States District
Court for the District of New Jersey (the           “Amersham Litigation”).  

    C.                     Certain
disputes have now arisen between the Parties as to their respective           rights and
obligations under the Asset Purchase Agreement and with respect to           the Amersham
Litigation.  

    D.                     The
Board of Directors of Alliance and the Board of Directors of Imcor have each
          determined that it is in the best interests of their respective stockholders
and           creditors to settle the dispute in accordance with the terms and conditions
set           forth in this Agreement.  

    E.                     In
entering into this Agreement, neither Party concedes the sufficiency or
          validity of any claims, counterclaims, or defenses that have been asserted or
          could be asserted by either of them.  

AGREEMENT 

        In
consideration of the foregoing recitals (which are incorporated herein by this reference)
and the covenants and conditions set forth below, the Parties hereby agree as follows. 

    1.           Settlement. The
Parties intend for this Agreement and the related           transactions to constitute a
full and final resolution and settlement of the           disputes that have arisen
between Alliance and Imcor arising from, or otherwise           related to, the Asset
Purchase Agreement and/or the Amersham Litigation.           Further, this Agreement is
being entered into for settlement purposes pursuant           to California Evidence Code
§1152, Federal Rule of Evidence 408 and any           similar statute or rule in any
applicable jurisdiction.  

    2.           Termination
of Continuing Obligations Under the Asset Purchase           Agreement. As of the
Effective Date and subject to the terms of this           Agreement, the Parties hereby
agree that the continuing rights and obligations           of each Party under the Asset
Purchase Agreement are hereby terminated and shall           be of no further force or
effect. Such continuing rights and obligations           include, but are not limited to,
Section 1.2(g) (Equity Conversion), Section 1.3           (Earnout), including, without
limitation, Alliance’s release of any and all           rights and obligations set
forth in subsection (g) thereof pursuant to which           Imcor shall re-license to
Alliance the Imagent Assets in the event Imcor’s           Board of Directors
determines that it is not in Imcor’s best interests to           allocate its
efforts and resources towards the promotion of the Imagent Assets           and the
Imagent Products (the “Alliance Imagent License Rights”),           Article VII
(Survival of Representations and Warranties; Indemnification) and           any royalty
rights either Party may be entitled to under the Asset Purchase           Agreement
(collectively, the “Continuing Obligations”).  

    3.           Economic
Arrangements. 

        3.1        Amersham
Litigation. With respect to the Amersham Litigation, the Parties agree to enter into
a settlement agreement with Amersham upon substantially the same terms most recently
proposed by Amersham, including, without limitation, a cash payment of $1,200,000. The
Amersham settlement agreement shall specify that Amersham will pay $1,000,000 of such
amount directly to Imcor in satisfaction of Imcor’s claims in the Amersham
Litigation and that Amersham will pay $200,000 directly to Alliance in satisfaction of
any and all of Alliance’s claims in the Amersham Litigation under the Asset Purchase
Agreement.  

        3.2        Sale
of Imagent Assets.  

            (a)                     Imcor
shall use commercially reasonable efforts to promptly seek to sell,           license,
enter into a joint venture relationship or enter into another strategic
          transaction involving the disposition of the remainder of the Imagent Assets to
          a third-party in its sole discretion and subject to shareholder and other
          required approvals (an “Imagent Transaction”), but will confer with
          Alliance with respect to the terms and targets for potential joint venture,
          license or other strategic relationships, as well as the method of offering the
          Imagent Assets for sale and potential buyers. The reasonable third-party fees
          and expenses directly related to an Imagent Transaction shall be shared between
          the Parties in proportion to the amounts received by each Party as a result of
          such Imagent Transaction as set forth in subsection (b) below. The definitive
          agreement entered into with any third-party relating to an Imagent Transaction
          shall provide that any and all proceeds that Alliance is entitled to from the
          Imagent Transaction as provided for in subsection (b) below shall be remitted
by           the buyer thereof directly to Alliance. The Parties hereby acknowledge and
agree           that Alliance’s right to receive payments directly from the buyer in
an           Imagent Transaction pursuant to this Section 3.2, and any payments made
directly           to Alliance by any such buyer are solely the right and property of
Alliance.           Imcor shall have no interest whatsoever in payments made (or to be
made)           directly to Alliance nor in Alliance’s right to receive such
payments. In           the event a buyer erroneously delivers to Imcor any funds
belonging to Alliance,           Imcor shall hold such funds in a segregated bank account
in trust solely for the           benefit of Alliance which it shall forthwith deliver to
Alliance. If Imcor files           a voluntary bankruptcy petition, or has an involuntary
bankruptcy petition filed           against it, or becomes subject to an assignment for
the benefit of creditors,           creditors’ trust, or related proceeding, Alliance’s
right to receive           payments from any Imagent Transaction buyer, or any such funds
held in trust by           Imcor, shall not become property of Imcor or Imcor’s
bankruptcy estate as           the right of Alliance to receive payments herewith is its
sole and separate           right, is not a right of Imcor, and is not property of Imcor’s
bankruptcy           estate within the meaning of 11 U.S.C. 541(a), and Alliance’s
right to           recover such payments shall not be subject to the automatic stay
imposed under           11 U.S.C. § 362 in any bankruptcy case filed by or
against Imcor.           Should a bankruptcy petition be filed by or against Imcor, or
should Imcor           become subject to an assignment for the benefit of creditors,
creditors’          trust, or similar proceeding, Alliance will continue to have its
independent           right to pursue, recover and receive any payments directly from a
buyer due it           under this Section 3.2 since, and any funds held in trust by
Imcor for the           benefit of Alliance, it being acknowledged that Imcor has no
property interest,           or any interest whatsoever, in payments to be made directly
to Alliance (or held           in trust by Imcor for the benefit of Alliance), and such
payments and funds           shall not become property of Imcor’s bankruptcy estate.  

2 

            (b)                     The
proceeds from an Imagent Transaction shall be allocated between the Parties           as
follows:  

                (i)                     The
first $1,450,000 in proceeds from an Imagent Transaction shall be divided on           a
dollar-for-dollar basis as follows: ninety percent (90%) to Imcor and ten
          percent (10%) to Alliance until such time as Alliance has been paid $100,000;  

                (ii)                     The
proceeds from an Imagent Transaction from $1,450,001 to $5,000,000 shall be
          divided on a dollar-for-dollar basis as follows: seventy percent (70%) to Imcor
          and thirty percent (30%) to Alliance; and  

                (iii)                     The
proceeds from an Imagent Transaction above $5,000,000 shall be divided on a
          dollar-for-dollar basis as follows: sixty-six and seven-tenths of a percent
          (66.7%) to Imcor and thirty-three and three-tenths of a percent (33.3%) to
          Alliance.  

        3.3        Schering
and Transaction Liability. To the extent that an Imagent Transaction results in any
liability to Schering Aktiengesellschaft (“Schering”) under the terms of that
certain License Agreement originally dated as of September 23, 1997, as amended and
restated as of February 22, 2002, by and between Alliance and Schering, as assigned to
and assumed by Imcor, or any transaction fees and expenses, such amount payable by each
Party shall be determined based upon the ratios set forth as follows:  

                (i)                     Any
liability to Schering or for transaction fees or expenses related to the           first
$1,450,000 in proceeds from an Imagent Transaction shall be divided on a
          dollar-for-dollar basis and promptly paid as follows: ninety percent (90%) by
          Imcor and ten percent (10%) by Alliance until such time as Alliance has paid
          $100,000;  

                (ii)                     Any
liability to Schering or for transaction fees or expenses related to an           Imagent
Transaction with proceeds from $1,450,001 to $5,000,000 shall be divided           on a
dollar-for-dollar basis and paid as follows: seventy percent (70%) by Imcor           and
thirty percent (30%) by Alliance; and  

                (iii)                     Any
liability to Schering or for transaction fees or expenses related to an           Imagent
Transaction with proceeds above $5,000,000 shall be divided on a
          dollar-for-dollar basis and paid as follows: sixty-six and seven-tenths of a
          percent (66.7%) by Imcor and thirty-three and three-tenths of a percent (33.3%)
          by Alliance.  

3 

    4.           Imcor
Release. Except as expressly set forth in this Agreement for           and in
consideration of the mutual covenants set forth herein, which are hereby
          excluded from and survive this general release, Imcor, on its own behalf and on
          behalf of its grantees, agents, representatives, assignees, assignors,
attorneys           or any other entity in which Imcor has a controlling interest
(collectively, the           “Imcor Releasors”), hereby releases and forever
discharges by this           Agreement Alliance, and each of its past and present agents,
employees,           representatives, officers, directors, stockholders, attorneys,
accountants,           insurers, receivers, advisors, consultants, partners,
partnerships, parents,           divisions, subsidiaries, affiliates, assigns,
successors, heirs, predecessors in           interest, joint ventures, and
commonly-controlled corporations (collectively,           the “Alliance Releasees”)
from and against any and all liabilities,           causes of action, charges,
complaints, suits, claims, obligations, costs,           losses, damages, rights,
judgments, attorneys’ fees, expenses, bonds,           bills, penalties, fines, and
all other legal responsibilities of any form           whatsoever, whether known or
unknown, whether suspected or unsuspected, whether           fixed or contingent,
liquidated or unliquidated, including, but not limited to,           those arising from
or otherwise related to: (i) the Asset Purchase           Agreement or any document
related thereto and any of the Continuing Obligations           of the Parties
thereunder, (ii) the Amersham Litigation, (iii) any act           or omission
occurring prior to the Effective Date by any Alliance Releasee,           (iv) the
use and occupancy of the premises located at 6175 Lusk Boulevard,           San Diego, CA
92121 (the “Premises”), and (v) the use of the           other Party’s
personnel, including in each case those arising under any           theory of law,
whether common, constitutional, statutory or other or of any           jurisdiction,
foreign or domestic, whether known or unknown, whether in law or           in equity,
which any Imcor Releasor had or may claim to have against any of them
          (collectively referred to as the “Imcor Released Claims”); provided,
however, that the foregoing shall not release or impair any           claims to
enforce the provisions of this Agreement.  

    5.           Alliance
Release. Except as expressly set forth in this           Agreement, for
and in consideration of the mutual covenants set forth herein,           which are hereby
excluded from and survive this general release, Alliance on its           own behalf, and
on behalf of its grantees, agents, representatives, assignees,           assignors,
attorneys or any other entity in which the Alliance has a controlling           interest
(collectively, the “Alliance Releasors”) hereby releases and           forever
discharges by this Agreement Imcor, and each of its past and present           agents,
employees, representatives, officers, directors, stockholders,           attorneys,
accountants, insurers, receivers, advisors, consultants, partners,
          partnerships, parents, divisions, subsidiaries, affiliates, assigns,
successors,           heirs, predecessors in interest, joint ventures, and
commonly-controlled           corporations (collectively, the “Imcor Releasees”)
from and against           any and all liabilities, causes of action, charges,
complaints, suits, claims,           obligations, costs, losses, damages, rights,
judgments, attorneys’ fees,           expenses, bonds, bills, penalties, fines, and
all other legal responsibilities           of any form whatsoever, whether known or
unknown, whether suspected or           unsuspected, whether fixed or contingent,
liquidated or unliquidated, including,           but not limited to, those arising from
or otherwise related to: (i) the           Asset Purchase Agreement or any document
related thereto and any of the           Continuing Obligations of the Parties
thereunder, (ii) the Amersham           Litigation, (iii) any act or omission
occurring prior to the Effective Date           by any Imcor Releasee, (iv) the use and
occupancy of the Premises, and (v) the           use of the other Party’s personnel,
including in each case, those arising           under any theory of law, whether common,
constitutional, statutory or other or           of any jurisdiction, foreign or domestic,
whether known or unknown, whether in           law or in equity, which any Alliance
Releasor had or may claim to have against           any of them (collectively referred to
as the “Alliance Released           Claims”); provided, however, that
the foregoing shall not release or           impair any claims to enforce the provisions
of this Agreement.  

4 

    6.           Adequate
Consideration. The Parties hereby acknowledge and agree           that this
Agreement and the covenants provided hereunder constitute full, fair           and
adequate consideration and compensation for the releases granted in Sections           4
and 5, above. Each party agrees that the fair value of the consideration it is
          receiving under this Agreement equals or exceeds the fair value of the
          consideration it is delivering.  

    7.           Unknown
Claims. Each Party acknowledges that it may hereafter           discover facts
different from, or in addition to, those which said Party now           believes to be
true with respect to the release of claims. Each Party agrees           that the
foregoing release shall be and remain effective in all respects           notwithstanding
such different or additional facts or discovery thereof, and           that this
Agreement contemplates the extinguishment of all such claims and           causes of
action.  

    8.           Covenant
Not to Sue. Each of the Parties, for itself and for its           heirs,
successors, agents, assigns and affiliates and any person or entity           claiming
by, through or under it, further agrees, promises, and covenants that           they have
not, will not, nor will any person, organization or any other entity           acting on
their behalf, file, charge, claim, sue, participate in, join or cause           or permit
to be filed, charged or claimed, any action for damages or other           relief
(including injunctive, declaratory, monetary or other) against the other
          Parties released hereunder, their affiliates and successors and their
respective           officers, directors, employees, agents, and representatives, past
and present,           with respect to any Imcor Released Claims or Alliance Released
Claims, as the           case may be.  

    9.           Civil
Code Section 1542 Waiver. With respect to the Imcor Released           Claims and
the Alliance Released Claims, as the case may be, it is further           understood and
agreed that notwithstanding California Civil Code Section 1542,           which presently
provides:  

	 	
“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO
EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR,” 

the release by each Party contained
herein extends to all claims of every nature and kind whatsoever, known and unknown. 

Each Party hereby waives any and all
rights that it may have under Section 1542 as it presently reads or as it shall
hereinafter be amended. In connection with this waiver, each Party acknowledges that it is
aware that it may hereafter discover claims presently unknown or unsuspected or facts in
addition to or different from those it now knows or believes to be true with respect to
the Imcor Released Claims or Alliance Released Claims, as the case may be. Nevertheless,
it intends through this Agreement to release fully, finally, and forever, in the manner
described herein, all Imcor Released Claims or Alliance Released Claims, as the case may
be. Accordingly, the releases contained herein shall remain in effect as a full and
complete release of the Imcor Released Claims or Alliance Released Claims, as the case may
be, in accordance with its terms notwithstanding the discovery or existence of any such
additional facts or different claims relating thereto. 

5 

    10.           No
Admission of Liability. This Agreement is intended to and does
          compromise disputed claims and shall not be construed as an admission of
          liability by any Party of any claim made by the other Party.  

    11.           Independent
Investigation; Voluntary Agreement. Each Party has           made such
investigation of the facts pertaining to this Agreement, and of all           other
matters pertaining thereto, as the Party deems necessary.  

    12.           Non-Disparagement.
The Parties acknowledge that their professional           reputations are extremely
important in the community at large. As such, neither           Party nor its officers at
the vice president level or higher will take any           actions or make any statements
that are disparaging of the other Party           (including its current directors,
officers, employees, consultants or any           parent, subsidiary or
successor-in-interest of a Party). Furthermore, the           Parties agree that they
will not make or publish any statement, written or oral,           that becomes or
reasonably could be expected to become publicly known, or           instigate, assist or
participate in the making or publication of any such           statement, which would
libel or slander the other Party or its current officers,           directors, employees,
consultants or any parent, subsidiary or           successor-in-interest of a Party. The
Parties hereby acknowledge and agree that           this non-disparagement clause is a
material term of this Agreement.  

    13.           Attorney’s
Fees. In the event that either Party brings an           action, arbitration or
proceeding to enforce, interpret or construe this           Agreement (including an
alleged violation of the confidentiality provisions of           this Agreement), the
prevailing Party in such action, arbitration or proceeding           shall be entitled to
recover its reasonable attorneys’ fees and costs from           the other Party.  

    14.           Representations
and Warranties. The Parties to this Agreement, and           each of them,
represent and warrant that:  

        14.1        Each
Party has received independent legal advice from its attorneys with respect to the
advisability of making the settlement provided for in this Agreement.  

        14.2        Each
Party declares that prior to the execution of this Agreement, they apprised themselves of
sufficient relevant information, through sources of their own selection, in order that
they might intelligently exercise their own judgment in deciding whether to execute it,
and in deciding on the contents hereof.  

        14.3        No
Party (nor any officer, agent, partner, employee, representative, or attorney for any
Party), has made any statement or representation to any other Party regarding any fact
relied upon in entering into this Agreement, except as set forth herein, and each Party
does not rely upon any statement, representation or promise of any other Party (or any
officer, agent, partner, employee, representative, or attorney of or for any Party), in
executing this Agreement, or in making the settlement provided for herein, except as set
forth herein.  

6 

        14.4        Each
Party to this Agreement has made such independent investigation of the facts pertaining
to this Agreement, and of all matters pertaining to it, as it deems necessary.  

        14.5        Each
Party, or its responsible officers, has read this Agreement and understands the contents
hereof, and any individual executing this Agreement is legally competent to execute this
Agreement, and any person executing this Agreement in a representative capacity of any of
the Parties is authorized and empowered to do so and thereby has the authority to bind
the Party on whose behalf this Agreement is signed.  

        14.6        The
Parties will execute all such further and additional documents as shall be reasonably
necessary to carry out the provisions of this Agreement.  

        14.7        Each
Party represents and warrants that this Agreement and the transactions contemplated
herein (i) are not made or incurred with the intent to hinder, delay or defraud any
person to whom such Party has been, is now, or may hereafter become indebted; and (ii) are
not entered into with the intent to incur, or with the belief that such Party would
incur, debts beyond its ability to pay as such debts mature.  

    15.           No
Prior Assignment of Rights. Each Party is the sole owner of the           Imcor
Released Claims and Alliance Released Claims, respectively, being released           by
it hereby and such Party has not assigned or otherwise transferred,           voluntarily
or involuntarily, any such Imcor Released Claims or Alliance           Released Claims,
as the case may be.  

    16.           Assertion
of Agreement as Bar to Proceedings. This Agreement may           be asserted by
any of the Imcor Releasees or Alliance Releasees, as the case may           be, as a
defense and complete bar to any action, claim, cross claim, cause of           action,
arbitration or other proceeding that may be brought, or could have been
          brought, instituted or taken by, against, or involving any of the Imcor
          Releasors, Alliance Releasors, or anyone acting or purporting to act on behalf
          of any of the same with respect to any Imcor Released Claims or Alliance
          Released Claims, as the case may be.  

    17.           Entire
Agreement. This Agreement contains the entire understanding           of the
Parties with respect to the subject matter hereof and supersedes all           prior and
contemporaneous agreements, understandings, discussions and           representations,
oral or written, with respect to such matters, which the           Parties acknowledge
have been merged into such documents, exhibits and           schedules.  

    18.           Notices. Any
and all notices or other communications or deliveries           required or permitted to
be provided hereunder shall be in writing and shall be           deemed given and
effective on the earliest of (a) the date of transmission,           if such notice
or communication is delivered via facsimile (provided the sender           receives a
machine-generated confirmation of successful transmission) at the           facsimile
number specified in this Section prior to 6:30 p.m. (New York City           time) on a
business day, (b) the next business day after the date of           transmission, if
such notice or communication is delivered via facsimile at the           facsimile number
specified in this section on a day that is not a business day           or later than
6:30 p.m. (New York City time) on any business day, (c) the           business day
following the date of mailing, if sent by U.S. nationally           recognized overnight
courier service, or (d) upon actual receipt by the           Party to whom such
notice is required to be given. The address for such notices           and communications
shall be as follows:  

7 

	 	         If to the Alliance: 	Alliance
Pharmaceutical Corp.                                            
4660 La Jolla Village
Drive, Suite 825                                            
San Diego, California  92122
                                           
Facsimile No.:  (858) 410-5343
                                           
Telephone No.: (858) 410-5200
                                           
Attention: Duane Roth, Chief Executive Officer

	 	         With a copy to: 	Foley
& Lardner LLP                                            
402 W. Broadway, 23rd Floor
                                          
 San Diego, CA  92101
                                           
Facsimile No.:  (619) 234-3510
                                           
Telephone No.: (619) 685-4615
                                           
Attention:  Kenneth D. Polin, Esq.

	 	         If to Imcor: 	Imcor
Pharmaceutical Co.                                            
4660 La Jolla Village
Drive, Suite 540                                            
La Jolla, CA  92037

	 	         and to: 	Imcor
Pharmaceutical Co.                                            
P.O. Box 2389
                                           
La Jolla, CA  92037
                                           
Facsimile:  (858) 410-5601
                                           
Telephone No.:  (858) 410-5602
                                           
Attention:  B. Jack DeFranco

	 	         With a copy to: 	Grippo
& Elden LLC                                            
111 S. Wacker Drive
                                           
Chicago, IL  60606
                                           
Facsimile No.: (312) 558-1195
                                           
Telephone No.: (312)-704-7733
                                           
Attention:  Matthew I. Hafter

or such other address as may be
designated in writing hereafter, in the same manner, by such Person. 

    19.           Amendments;
Waivers. Except as expressly set forth herein, no           provision of this
Agreement may be waived or amended as between the Parties           hereto except in a
written instrument signed by the Parties. No waiver of any           default with respect
to any provision, condition or requirement of this           Agreement shall be deemed to
be a continuing waiver in the future or a waiver of           any subsequent default or a
waiver of any other provision, condition or           requirement hereof, nor shall any
delay or omission of either Party to exercise           any right hereunder in any manner
impair the exercise of any such right.  

8 

    20.           Construction. The
headings herein are for convenience only, do not           constitute a part of this
Agreement and shall not be deemed to limit or affect           any of the provisions
hereof. The language used in this Agreement will be deemed           to be the language
chosen by the Parties to express their mutual intent, and no           rules of strict
construction will be applied against any Party. This Agreement           shall be
construed as if drafted jointly by the Parties, and no presumption or           burden of
proof shall arise favoring or disfavoring any Party by virtue of the           authorship
of any provisions of this Agreement or any of the documents           contemplated
hereby.  

    21.           Successors
and Assigns. This Agreement shall be binding upon and           inure to the
benefit of the Parties and their successors and assigns.  

    22.           Governing
Law; Dispute Resolution. All questions concerning the           construction,
validity, enforcement and interpretation of this Agreement shall           be governed by
and construed and enforced in accordance with the internal laws           of the State of
New York, without regard to the principles of conflicts of law           thereof. In the
event that a dispute arises between the Parties concerning this           Agreement or
the transactions contemplated herein, each Party agrees to           designate an
executive officer to negotiate within five business days after           receipt of
written notice of the dispute. The notice shall specify in reasonable           detail
the nature and circumstances of the dispute. Each Party’s           representatives
shall confer concerning the dispute for a period of thirty (30)           days, and
neither Party shall commence any legal action concerning the dispute           until the
expiration of such period (other than equitable action seeking           non-monetary
relief if necessary solely to preserve the status-quo).  

    23.           Execution. This
Agreement may be executed in two or more           counterparts, all of which when taken
together shall be considered one and the           same agreement and shall become
effective when counterparts have been signed by           each Party and delivered to the
other Party, it being understood that both           Parties need not sign the same
counterpart. In the event that any signature is           delivered by facsimile
transmission, such signature shall create a valid and           binding obligation of the
Party executing (or on whose behalf such signature is           executed) with the same
force and effect as if such facsimile signature page           were an original thereof.  

    24.           Severability.
If any provision of this Agreement is held to be           invalid, illegal or
unenforceable in any respect, the validity and           enforceability of the remaining
terms and provisions of this Agreement shall not           in any way be affected or
impaired thereby and the Parties will attempt to agree           upon a valid, legal and
enforceable provision that is a reasonable substitute           therefore, and upon so
agreeing, shall incorporate such substitute provision in           this Agreement.  

    25.           Arm’s
Length Negotiations. This Agreement is being entered           into in good faith
by the Parties and was negotiated through arm’s length           bargaining.  

    26.           Public
Announcements. The Parties shall consult with each           other prior
to issuing any press releases, filing any Current Reports on Form           8-K or
otherwise making any public statements with respect to this Agreement and           the
transactions contemplated hereby. Neither party shall issue any such press
          release, file such 8-K or make any other public statement without the agreement
          of the other Party, such agreement not to be unreasonably withheld; provided,
          however, in no event shall a Party be prevented from issuing a press
          release, filing an 8-K or making any other public statement that such has been
          advised by counsel may be required by law.  

9 

        IN
WITNESS WHEREOF, the Parties have executed this Settlement Agreement as of the Effective
Date. 

		ALLIANCE PHARMACEUTICAL CORP.
	

 	By:  /s/ Duane Roth
		        Duane Roth, Chief Executive Officer
	

 	IMCOR PHARMACEUTICAL CO.
	

 	By:  /s/ Brian Gallagher
		        Brian Gallagher, Chairman of the Board of Directors

[Signature Page to
Settlement Agreement] 

10Exhibit 4.3

                           [FORM OF SENIOR INDENTURE]

                           THE NAVIGATORS GROUP, INC.

                                       AND

                            JPMORGAN CHASE BANK, N.A.

                                     TRUSTEE

                        _________________________________

                                    INDENTURE

                             SENIOR DEBT SECURITIES

                               Dated as of   , 2005

                        _________________________________

<PAGE>

                                TABLE OF CONTENTS

                                                                   Page

ARTICLE 1          DEFINITIONS AND INCORPORATION BY REFERENCE.........1

    SECTION 1.01.  DEFINITIONS........................................1
    SECTION 1.02.  OTHER DEFINITIONS..................................4
    SECTION 1.03.  INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT..4
    SECTION 1.04.  RULES OF CONSTRUCTION..............................5
    SECTION 1.05.  ACTS OF HOLDERS....................................5

ARTICLE 2          THE SECURITIES.....................................6

    SECTION 2.01.  FORM AND DATING....................................6
    SECTION 2.02.  AMOUNT UNLIMITED; ISSUABLE IN SERIES...............7
    SECTION 2.03.  DENOMINATIONS.....................................10
    SECTION 2.04.  EXECUTION AND AUTHENTICATION......................10
    SECTION 2.05.  REGISTRAR AND PAYING AGENT; APPOINTMENT OF
                    DEPOSITARY.......................................11
    SECTION 2.06.  PAYING AGENT TO HOLD MONEY IN TRUST...............11
    SECTION 2.07.  HOLDER LISTS......................................12
    SECTION 2.08.  TRANSFER AND EXCHANGE.............................12
    SECTION 2.09.  REPLACEMENT SECURITIES............................15
    SECTION 2.10.  OUTSTANDING SECURITIES............................16
    SECTION 2.11.  TREASURY SECURITIES...............................16
    SECTION 2.12.  TEMPORARY SECURITIES..............................17
    SECTION 2.13.  CANCELLATION......................................17
    SECTION 2.14.  DEFAULTED INTEREST................................17

ARTICLE 3          REDEMPTION AND PREPAYMENT.........................17

    SECTION 3.01.  APPLICABILITY OF ARTICLE..........................17
    SECTION 3.02.  SELECTION OF SECURITIES TO BE REDEEMED............18
    SECTION 3.03.  NOTICE OF REDEMPTION..............................18
    SECTION 3.04.  EFFECT OF NOTICE OF REDEMPTION....................19
    SECTION 3.05.  DEPOSIT OF REDEMPTION OR PURCHASE PRICE...........19
    SECTION 3.06.  SECURITIES REDEEMED OR PURCHASED IN PART..........19
    SECTION 3.07.  MANDATORY REDEMPTION; SINKING FUND................20

ARTICLE 4          COVENANTS.........................................22

    SECTION 4.01.  PAYMENT OF SECURITIES.............................22
    SECTION 4.02.  MAINTENANCE OF OFFICE OR AGENCY...................22
    SECTION 4.03.  REPORTS...........................................22
    SECTION 4.04.  COMPLIANCE CERTIFICATE............................23
    SECTION 4.05.  CONTINUED EXISTENCE...............................23
    SECTION 4.06.  STAY, EXTENSION AND USURY LAWS....................24

ARTICLE 5          SUCCESSORS........................................24

                                       i

<PAGE>

    SECTION 5.01.  MERGER, CONSOLIDATION, OR SALE OF ASSETS..........24
    SECTION 5.02.  SUCCESSOR PERSON SUBSTITUTED......................24

ARTICLE 6          DEFAULTS AND REMEDIES.............................25

    SECTION 6.01.  EVENTS OF DEFAULT.................................25
    SECTION 6.02.  ACCELERATION......................................26
    SECTION 6.03.  OTHER REMEDIES....................................26
    SECTION 6.04.  WAIVER OF PAST DEFAULTS; RESCISSION OF
                    ACCELERATION.....................................27
    SECTION 6.05.  CONTROL BY MAJORITY...............................27
    SECTION 6.06.  LIMITATION ON SUITS...............................27
    SECTION 6.07.  RIGHTS OF HOLDERS OF SECURITIES TO RECEIVE
                    PAYMENT..........................................28
    SECTION 6.08.  COLLECTION SUIT BY TRUSTEE........................28
    SECTION 6.09.  TRUSTEE MAY FILE PROOFS OF CLAIM..................28
    SECTION 6.10.  PRIORITIES........................................29
    SECTION 6.11.  UNDERTAKING FOR COSTS.............................29

ARTICLE 7          TRUSTEE...........................................30

    SECTION 7.01.  DUTIES OF TRUSTEE.................................30
    SECTION 7.02.  RIGHTS OF TRUSTEE.................................31
    SECTION 7.03.  INDIVIDUAL RIGHTS OF TRUSTEE......................31
    SECTION 7.04.  TRUSTEE'S DISCLAIMER..............................32
    SECTION 7.05.  NOTICE OF DEFAULTS................................32
    SECTION 7.06.  REPORTS BY TRUSTEE TO HOLDERS OF THE
                    SECURITIES.......................................32
    SECTION 7.07.  COMPENSATION AND INDEMNITY........................32
    SECTION 7.08.  REPLACEMENT OF TRUSTEE............................33
    SECTION 7.09.  SUCCESSOR TRUSTEE BY MERGER, ETC..................34
    SECTION 7.10.  ELIGIBILITY; DISQUALIFICATION.....................34
    SECTION 7.11.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST
                    COMPANY..........................................35

ARTICLE 8          LEGAL DEFEASANCE AND COVENANT DEFEASANCE..........35

    SECTION 8.01.  OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT
                    DEFEASANCE.......................................35
    SECTION 8.02.  LEGAL DEFEASANCE AND DISCHARGE....................36
    SECTION 8.03.  COVENANT DEFEASANCE...............................37
    SECTION 8.04.  CONDITIONS TO LEGAL OR COVENANT DEFEASANCE........37
    SECTION 8.05.  DEPOSITED MONEY AND U.S. GOVERNMENT
                    OBLIGATIONS TO BE HELD IN TRUST; OTHER
                    MISCELLANEOUS PROVISIONS.........................38
    SECTION 8.06.  REPAYMENT TO COMPANY..............................39
    SECTION 8.07.  REINSTATEMENT.....................................39

ARTICLE 9          AMENDMENT, SUPPLEMENT AND WAIVER..................40

    SECTION 9.01.  WITHOUT CONSENT OF HOLDERS OF SECURITIES..........40

                                       ii
<PAGE>

    SECTION 9.02.  WITH CONSENT OF HOLDERS OF SECURITIES.............41
    SECTION 9.03.  COMPLIANCE WITH TRUST INDENTURE ACT...............42
    SECTION 9.04.  REVOCATION AND EFFECT OF CONSENTS.................43
    SECTION 9.05.  NOTATION ON OR EXCHANGE OF SECURITIES.............43
    SECTION 9.06.  TRUSTEE TO SIGN AMENDMENTS, ETC...................43

ARTICLE 10         MEETINGS OF HOLDERS...............................43

    SECTION 10.01. PURPOSES FOR WHICH MEETING MAY BE CALLED..........43
    SECTION 10.02. CALL, NOTICE AND PLACE OF MEETINGS................43
    SECTION 10.03. PERSONS ENTITLED TO VOTE AT MEETINGS..............44
    SECTION 10.04. QUORUM; ACTION....................................44
    SECTION 10.05. DETERMINATION OF VOTING RIGHTS; CONDUCT AND
                    ADJOURNMENT OF MEETINGS..........................45
    SECTION 10.06. COUNTING VOTES AND RECORDING ACTION OF
                    MEETINGS.........................................46
    SECTION 10.07. ARTICLE SUBJECT TO OTHER PROVISIONS...............46

ARTICLE 11         MISCELLANEOUS.....................................46

    SECTION 11.01. TRUST INDENTURE ACT CONTROLS......................46
    SECTION 11.02. NOTICES...........................................46
    SECTION 11.03. COMMUNICATION BY HOLDERS OF SECURITIES WITH
                     OTHER HOLDERS OF SECURITIES.....................48
    SECTION 11.04. CERTIFICATE AND OPINION AS TO CONDITIONS
                    PRECEDENT........................................48
    SECTION 11.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.....48
    SECTION 11.06. RULES BY TRUSTEE AND AGENTS.......................48
    SECTION 11.07. NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
                    EMPLOYEES AND STOCKHOLDERS.......................49
    SECTION 11.08. GOVERNING LAW.....................................49
    SECTION 11.09. NO ADVERSE INTERPRETATION OF OTHER
                    AGREEMENTS.......................................49
    SECTION 11.10. SUCCESSORS........................................49
    SECTION 11.11. SEVERABILITY......................................49
    SECTION 11.12. COUNTERPART ORIGINALS.............................49
    SECTION 11.13. TABLE OF CONTENTS, HEADINGS, ETC..................49

                                    EXHIBITS

    Exhibit A-1    Form of Senior Note

                                      iii
<PAGE>

          Reconciliation and tie between the Trust Indenture Act of 1939, as
amended, and the Indenture dated as of       , 2005 between The Navigators
Group, Inc. and JPMorgan Chase Bank, N.A., as Trustee.

   TRUST INDENTURE ACT SECTION                         INDENTURE SECTION
   ---------------------------                 --------------------------------
          310(a)(1)                                        7.10
          310(a)(2)                                        7.10
          310(a)(3)                                        N/A
          310(a)(4)                                        N/A
          310(a)(5)                                        7.10
          310(b)                                           7.03, 7.08, 7.10
          310(c)                                           N/A
          311(a)                                           7.11
          311(b)                                           7.11
          311(c)                                           N/A
          312(a)                                           2.07
          312(b)                                          11.03
          312(c)                                          11.03
          313(a)                                           7.06
          313(b)                                           7.06
          313(c)                                           7.06, 11.02
          313(d)                                           7.06
          314(a)                                           4.03
          314(b)                                           N/A
          314(c)                                           4.04, 11.05
          314(d)                                           N/A
          314(e)                                          11.05
          314(f)                                           N/A
          315(a)                                           7.01
          315(b)                                           7.05
          315(c)                                           7.01
          315(d)                                           7.01
          315(e)                                           6.11
          316(a)(1)                                        6.04, 6.05
          316(a)(2)                                        N/A
          316(a)last sentence                              2.11
          316(b)                                           6.07
          316(c)                                           1.05
          317(a)                                           6.08, 6.09
          317(b)                                           2.06
          318(a)                                          11.01

                                       iv
<PAGE>

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

          Attention should also be directed to Section 318(c) of the Trust
Indenture Act of 1939, as amended, which provides that the provisions of
Sections 310 through 317 of such Act are a part of and govern every qualified
indenture, whether or not physically contained therein.

                                       v
<PAGE>

          SENIOR INDENTURE, dated as of   , 2005 (this "Indenture") between THE
NAVIGATORS GROUP, INC., a Delaware corporation (the "Company"), and JPMORGAN
CHASE BANK, N.A., a national banking association, as trustee (the "Trustee").

                                    RECITALS

          The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its secured or
unsecured debentures, notes, bonds or other evidences of indebtedness
("SECURITIES") to be issued in one or more series as herein 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 as
follows for the equal and ratable benefit of the Holders of the Securities:

<PAGE>

                                   ARTICLE 1
                   DEFINITIONS AND INCORPORATION BY REFERENCE

          SECTION 1.01. DEFINITIONS.

          "AFFILIATE" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control"
(including, with correlative meanings, the terms "controlling," "controlled by"
and "under common control with"), as used with respect to any Person, shall mean
the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of such Person, whether through the
ownership of voting securities, by agreement or otherwise; PROVIDED, HOWEVER,
that beneficial ownership of 10% or more of the voting securities of a Person
shall be deemed to be control.

          "AGENT" means any Registrar or Paying Agent.

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

          "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of the
Company or any authorized committee of the Board of Directors.

          "BOARD RESOLUTION" means a resolution of the Board of Directors.

          "BUSINESS DAY" means any day other than a Legal Holiday.

          "CODE" means the Internal Revenue Code of 1986, as amended.

          "COMPANY" means The Navigators Group, Inc., and any and all successors
thereto pursuant to Article 5 hereof.

          "CORPORATE TRUST OFFICE OF THE TRUSTEE" shall be the address of the
Trustee specified in Section 11.02 hereof or such other address as to which the
Trustee may give notice to the Company.

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

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

          "DEPOSITARY" means, with respect to any series of Securities issuable
or issued in whole or in part in global form, the Person specified in accordance
with Section 2.02 hereof as the Depositary with respect to the Global Securities
of that series, and any and all successors thereto registered and in good
standing as a clearing agency under the Exchange Act, appointed as depositary
hereunder and having become such pursuant to the applicable provision of this
Indenture.

<PAGE>

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

          "GLOBAL SECURITIES" means, individually and collectively, the
Securities issued in global form in accordance with Sections 2.01 and 2.08
hereof.

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

          "INDENTURE" means this Indenture, as amended, waived or supplemented
from time to time and shall include and incorporate by reference the forms and
terms of particular series of Securities established as contemplated hereunder.

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

          "INTEREST PAYMENT DATE" when used with respect to any Security, means
the Stated Maturity of an installment of interest on such Security.

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

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

          "OFFICERS' CERTIFICATE" means a certificate signed on behalf of the
Company by two Officers of the Company, one of whom for purposes of Section
4.04(a) must be the principal executive officer, the principal financial officer
or the principal accounting officer of the Company, that meets the requirements
of Section 11.05 hereof, to the extent applicable.

          "OPINION OF COUNSEL" means an opinion from legal counsel that meets
the requirements of Section 11.05 hereof, to the extent applicable. The counsel
may be an employee of or counsel to the Company, any Subsidiary of the Company
or the Trustee.

          "PARTICIPANT" means, with respect to the Depositary, a Person who has
an account with the Depositary.

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

          "RESPONSIBLE OFFICER" when used with respect to the Trustee, means any
officer within the Worldwide Securities Services department of the Trustee (or
any successor group of the Trustee) or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers, in each case who is the officer responsible for

                                       2
<PAGE>

the administration of this Indenture, and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

          "SEC" means the Securities and Exchange Commission.

          "SECURITIES" has the meaning assigned to it in the preamble to this
Indenture.

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

          "SIGNIFICANT SUBSIDIARY" means any Subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Indenture.

          "STATED MATURITY" means, with respect to any interest or principal on
any series of Securities, the date on which such payment of interest or
principal is scheduled to be paid thereon by its terms as in effect from time to
time, and does not include any contingent obligation to repay, redeem or
repurchase any such interest or principal prior to the date scheduled for the
payment thereof.

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

          "TIA" means the Trust Indenture Act of 1939, as amended, and as in
effect on the date above written.

          "TRUSTEE" means the Person named as such above until a successor
replaces it in accordance with 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.

          "U.S. GOVERNMENT OBLIGATIONS" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case under
clauses (i) or (ii), are not callable or redeemable at the option of the issuer
thereof, and shall also include a depository receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of

                                       3

<PAGE>

a depository receipt; PROVIDED that (except as required by law) such custodian
is not authorized to make any deduction from the amount payable to the holder of
such depository receipt from any amount received by the custodian in respect of
the U.S. Government Obligation or the specific payment of interest on or
principal of the U.S. Government Obligation evidenced by such depository
receipt.

          SECTION 1.02. OTHER DEFINITIONS.

                                                          Defined in
                            Term                            Section
         ------------------------------------------     ---------------
         "Act"                                                     1.05
         "Authentication Order"                                    2.04
         "Covenant Defeasance"                                     8.03
         "custodian"                                               6.01
         "Event of Default"                                        6.01
         "Legal Defeasance"                                        8.02
         "mandatory sinking fund payment"                          3.07
         "Notice of Default"                                       6.01
         "optional sinking fund payment"                           3.07
         "outstanding"                                             8.02
         "Paying Agent"                                            2.05
         "Place of Payment"                                        4.02
         "Registrar"                                               2.05
         "sinking fund payment date"                               3.07

          SECTION 1.03. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

          Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture.

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

          "INDENTURE SECURITY HOLDER" means a Holder of a Security;

          "INDENTURE TO BE QUALIFIED" means this Indenture;

          "INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Trustee;

          "OBLIGOR" on the Securities means the Company and any successor or
other obligor upon the Securities.

          All other terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule under the TIA
and not otherwise defined herein have the meanings so assigned to them.

                                       4
<PAGE>

          SECTION 1.04. RULES OF CONSTRUCTION.

          For the purposes of this Indenture, unless the context otherwise
requires:

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

               (2) an accounting term not otherwise defined has the meaning
          assigned to it in accordance with United States generally accepted
          accounting principles;

               (3) "or" is not exclusive;

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

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

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

          SECTION 1.05. 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 or may be embodied in and evidenced by the record of
Holders voting in favor thereof, either in person or by proxies duly appointed
in writing, at any meeting of Holders duly called and held in accordance with
the provisions of Article 10, or a combination of such instruments or record
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments or record or both are delivered to
the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments and any such record (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of Holders
signing such instrument or instruments and so voting at any such meeting. Proof
of execution of any such instrument or of a writing appointing any such agent or
proxy shall be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company, if made in the manner provided in this
Section and Section 10.06. The record of any meeting of Holders shall be proved
in the manner provided in Section 10.06.

          (b) Without limiting the generality of this Section, unless otherwise
provided in or pursuant to this Indenture, a Holder, including a Depositary that
is a Holder of a Global Security, may make, give or take, by a proxy, or
proxies, duly appointed in writing, any request, demand, authorization,
direction, notice, consent, waiver or other action provided in or pursuant to
this Indenture to be made, given or taken by Holders, and a Depositary that is a
Holder of a Global Security may provide its proxy or proxies to the beneficial
owners of interests in any such Global Security through such Depositary's
standing instructions and customary practices.

                                       5
<PAGE>

          (c) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner which the Trustee deems
sufficient.

          (d) The ownership of Securities shall be proved by the Register.

                                   ARTICLE 2
                                 THE SECURITIES

          SECTION 2.01. FORM AND DATING.

          (a) GENERAL. The Securities of each series shall be in substantially
the form attached hereto as Exhibit A-1, or such other form as shall be
established by or pursuant to a Board Resolution or in 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 applicable securities exchange, organizational document,
governing instrument or law or as may, consistently herewith, be determined by
the officers executing such Securities as evidenced by their execution of the
Securities. If temporary Securities of any series are issued as permitted by
Section 2.12, the form thereof also shall be established as provided in the
preceding sentence. If the forms of Securities of any series are established by,
or by action taken pursuant to, a Board Resolution, a copy of the Board
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 the certificate, together with an appropriate record of
any such action taken pursuant thereto, including a copy of the approved form of
Securities shall be delivered to the Trustee at or prior to the delivery of the
Authentication Order contemplated by Section 2.04 for the authentication and
delivery of such Securities. The Trustee's certificate of authentication shall
be in substantially the following form:

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

                                          JPMorgan Chase Bank, N.A.,
                                          as Trustee

                                          By:__________________________
                                                Authorized Officer

          (b) GLOBAL SECURITIES. If Securities of or within a series are
issuable in whole or in part in global form, any such Security may provide that
it shall represent the aggregate or specified amount of outstanding Securities
from time to time endorsed thereon and may also provide that the aggregate
amount of outstanding Securities represented thereby may from time to time be
reduced or increased to reflect exchanges. Any endorsement of a Security in
global form to reflect the amount, or any increase or decrease in the amount, or
changes in the rights of Holders, of outstanding Securities represented thereby,
shall be made in such manner and by such Person or Persons as shall be specified
therein or upon the written order of the Company signed by an Officer to be
delivered to the Trustee pursuant to Section 2.04 or 2.12.

                                       6
<PAGE>

Subject to the provisions of Section 2.04, Section 2.12, if applicable, and
Section 2.08, the Trustee shall deliver and redeliver any Security in permanent
global form in the manner and upon instructions given by the Person or Persons
specified therein or in the applicable written order of the Company signed by an
Officer. Any instructions by the Company with respect to endorsement or delivery
or redelivery of a Security in global form shall be in writing.

          The provisions of the last paragraph of Section 2.04 shall apply to
any Security in global form if such Security was never issued and sold by the
Company and the Company delivers to the Trustee the Security in global form
together with written instructions with regard to the reduction in the principal
amount of Securities represented thereby, together with the written statement
contemplated by the last paragraph of Section 2.04.

          Notwithstanding the provisions of this Section 2.01, unless otherwise
specified as contemplated by Section 2.02, payment of principal of, premium, if
any, and interest on any Security in permanent global form shall be made to the
Holder thereof.

          SECTION 2.02. AMOUNT UNLIMITED; ISSUABLE IN SERIES.

          (a) The aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is unlimited. The Securities
may be issued from time to time in one or more series.

          (b) The following matters shall be established with respect to each
series of Securities issued hereunder (i) by a Board Resolution, (ii) by action
taken pursuant to a Board Resolution and set forth, or determined in the manner
provided, in an Officers' Certificate or (iii) in one or more indentures
supplemental hereto:

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

               (2) any limit upon the aggregate principal amount of the
          Securities of the series which may be authenticated and delivered
          under this Indenture (which limit shall not pertain to Securities
          authenticated and delivered upon registration of transfer of, or in
          exchange for, or in lieu of, other Securities of the series pursuant
          to Section 2.08, 2.09, 2.12, 3.06 or 9.05 or any Securities that,
          pursuant to Section 2.04, are deemed never to have been authenticated
          and delivered hereunder);

               (3) the date or dates on which the principal of and premium, if
          any, on the Securities of the series is payable or the method or
          methods of determination thereof;

               (4) the rate or rates at which the Securities of the series shall
          bear interest, if any, or the method or methods of calculating such
          rate or rates of interest, the date or dates from which such interest
          shall accrue or the method or methods by which such date or dates
          shall be determined, the Interest Payment Dates on which any such
          interest shall be payable, the right, if any, of the Company to defer
          or extend an Interest Payment Date, the record date, if any, for the
          interest payable on any Security on any Interest Payment Date, and the
          basis upon which interest shall be calculated if other than that of a
          360-day year of twelve 30-day months;

                                       7
<PAGE>

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

               (6) the period or periods within which, the price or prices at
          which, the currency or currencies (including currency unit or units)
          in which, and the other terms and conditions upon which, Securities of
          the series may be redeemed, in whole or in part, at the option of the
          Company and, if other than as provided in Section 3.02, the manner in
          which the particular Securities of such series (if less than all
          Securities of such series are to be redeemed) are to be selected for
          redemption;

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

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

               (9) if other than U.S. dollars, the currency or currencies
          (including currency unit or units) in which the principal of, premium,
          if any, and interest, if any, on the Securities of the series shall be
          payable, or in which the Securities of the series shall be
          denominated, and the particular provisions applicable;

               (10) if the payments of principal of, premium, if any, or
          interest, if any, on the Securities of the series are to be made, at
          the election of the Company or a Holder, in a currency or currencies
          (including currency unit or units) other than that in which such
          Securities are denominated or designated to be payable, the currency
          or currencies (including currency unit or units) in which such
          payments are to be made, the terms and conditions of such payments and
          the manner in which the exchange rate with respect to such payments
          shall be determined, and the particular provisions applicable thereto;

               (11) if the amount of payments of principal of, premium, if any,
          and interest, if any, on the Securities of the series shall be
          determined with reference to an index, formula or other method (which
          index, formula or method may be based, without limitation, on a
          currency or currencies (including currency unit or units) other than
          that in which the Securities of the series are denominated or
          designated to be payable), the index, formula or other method by which
          such amounts shall be determined and any special voting or defeasance
          provisions in connection therewith;

               (12) if other than the principal amount thereof, the portion of
          the principal amount of such Securities of the series which shall be
          payable upon declaration of

                                       8
<PAGE>

          acceleration thereof pursuant to Section 6.02 or the method by which
          such portion shall be determined;

               (13) the Person to whom any interest on any Security of the
          series shall be payable;

               (14) provisions, if any, granting special rights to the Holders
          of Securities of the series upon the occurrence of such events as may
          be specified; (15) any deletions from, modifications of or additions
          to the Events of Default set forth in Section 6.01 or covenants of the
          Company set forth in Article 4 pertaining to the Securities of the
          series;

               (16) under what circumstances, if any, and with what procedures
          and documentation the Company will pay additional amounts on the
          Securities of that series held by a Person who is not a U.S. Person
          (including any definition of such term) in respect of taxes,
          assessments or similar charges withheld or deducted and, if so,
          whether the Company will have the option to redeem such Securities
          rather than pay such additional amounts (and the terms of any such
          option);

               (17) the forms of the Securities of the series;

               (18) if either or both of Sections 8.02 or 8.03 do not apply to
          the Securities of the series, and if either or both of such Sections
          are not applicable, such other means of defeasance or covenant
          defeasance as may be specified for the Securities of such series;

               (19) if other than the Trustee, the identity of the Registrar and
          any Paying Agent;

               (20) if the Securities of the series shall be issued in whole or
          in part in global form, (A) the Depositary for such Global Securities,
          (B) whether beneficial owners of interests in any Securities of the
          series in global form may, pursuant to Section 2.08(f), exchange such
          interests for certificated Securities of such series, to be registered
          in the names of or to be held by such beneficial owners or their
          nominees and to be of like tenor of any authorized form and
          denomination, and (C) if other than as provided in Section 2.08, the
          circumstances under which any such exchange may occur;

               (21) any restrictions on the registration, transfer or exchange
          of the Securities;

               (22) if the Securities of the series may be issued or delivered
          (whether upon original issuance or upon exchange of a temporary
          Security of such series or otherwise), or any installment of principal
          or interest is payable, only upon receipt of certain certificates or
          other documents or satisfaction of other conditions in addition to
          those specified in this Indenture, the form and terms of such
          certificates, documents or conditions;

               (23) the terms and conditions of any right to convert or exchange
          Securities of the series into or for other securities or property of
          the Company;

                                       9
<PAGE>

               (24) whether the Securities are secured or unsecured, and if
          secured, the security and related terms in connection therewith (which
          shall be provided for in a separate security agreement and/or other
          appropriate documentation), each in form satisfactory to the Trustee;
          and

               (25) any other terms of the series (which terms shall not be
          inconsistent with the provisions of this Indenture) including any
          terms which may be required by or advisable under United States laws
          or regulations or advisable (as determined by the Company) in
          connection with the marketing of Securities of the series.

          (c) All Securities of any one series shall be substantially identical
except as to denomination and except as may otherwise be provided (i) by a Board
Resolution, (ii) by action taken pursuant to a Board Resolution and set forth,
or determined in the manner provided, in the related Officers' Certificate or
(iii) in an indenture supplemental hereto. All Securities of any one series need
not be issued at the same time and, unless otherwise provided, a series may be
reopened, without the consent of the Holders, for issuances of additional
Securities of such series. The Company may, subject to obtaining all necessary
corporate approvals but without the consent of any Holder of a Security, issue
additional Securities in a series having the same CUSIP number and the same
ranking, interest rate, maturity and other terms as the other Securities of the
series. The Securities of each series shall be issuable only in fully registered
form without coupons.

          (d) If any of the terms of the Securities of any series are
established by action taken pursuant to a Board Resolution, a copy of such Board
Resolution shall be delivered to the Trustee at or prior to the delivery of the
Officers' Certificate setting forth, or providing the manner for determining,
the terms of the Securities of such series, and an appropriate record of any
action taken pursuant thereto in connection with the issuance of any Securities
of such series shall be delivered to the Trustee prior to the authentication and
delivery thereof.

          SECTION 2.03. DENOMINATIONS.

          Unless otherwise provided as contemplated by Section 2.02, Securities
of a series denominated in Dollars shall be issuable in denominations of U.S.
$1,000 and any integral multiple thereof. Securities denominated in a foreign
currency shall be issuable in such denominations as are established with respect
to such Securities in or pursuant to this Indenture.

          SECTION 2.04. EXECUTION AND AUTHENTICATION.

          An Officer shall sign the Securities for the Company by manual or
facsimile signature.

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

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

                                       10
<PAGE>

          The Trustee shall, upon a written order of the Company signed by an
Officer (an "AUTHENTICATION ORDER"), together with an Officers' Certificate and
an Opinion of Counsel, authenticate Securities for original issue in the
aggregate principal amount and pursuant to such procedures acceptable to the
Trustee as are stated in the Authentication Order. In addition to the matters
required by Section 11.05, such Officers' Certificate and Opinion of Counsel
shall cover such other matters as the Trustee shall reasonably request.

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

          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 2.13 together with a written statement 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 not be entitled to the benefits of this Indenture.

          SECTION 2.05. REGISTRAR AND PAYING AGENT; APPOINTMENT OF
                        DEPOSITARY.

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

          The Company initially appoints The Depository Trust Company to act as
Depositary with respect to the Global Securities.

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

          SECTION 2.06. PAYING AGENT TO HOLD MONEY IN TRUST.

          The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or interest on the Securities or other payments in respect of
the Securities or otherwise held by it as Paying Agent, and will notify the

                                       11
<PAGE>

Trustee of any default by the Company in making any such payment when due. While
any such default continues, the Trustee may require a Paying Agent to pay all
money held by it to the Trustee. The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee. Upon payment over to the
Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have
no further liability for the money. If the Company or a Subsidiary acts as
Paying Agent, it shall segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy
or reorganization proceedings relating to the Company, the Trustee shall serve
as Paying Agent for the Securities.

          SECTION 2.07. HOLDER LISTS.

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

          SECTION 2.08. TRANSFER AND EXCHANGE.

          (a) Upon surrender for registration of transfer of any Security of any
series at the office or agency maintained pursuant to Section 4.02 in a place of
payment for that 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 same aggregate principal amount and like tenor and
containing identical terms and provisions.

          (b) At the option of the Holder, Securities of any series (except a
Security in global form) may be exchanged for other Securities of the same
series, of any authorized denominations, of a same aggregate principal amount
and like tenor and containing identical terms and provisions, upon surrender of
the Securities to be exchanged at such office or agency. 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.

          (c) Notwithstanding any other provision of this Section, unless and
until it is exchanged in whole or in part for Securities in certificated form, a
Security in global form representing all or a portion of the Securities of a
series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to
such Depositary or another nominee of such Depositary or by such Depositary or
any such nominee to a successor Depositary for such series or a nominee of such
successor Depositary.

          (d) If at any time the Depositary for the Securities of a series
notifies the Company that it is unwilling or unable to continue as Depositary
for the Securities of such series or if at any time the Depositary for the
Securities of such series shall no longer be registered and

                                       12
<PAGE>

in good standing as a clearing agency under the Exchange Act, the Company shall
appoint a successor Depositary with respect to the Securities of such series. If
a successor Depositary for the Securities of such series is not appointed by the
Company prior to the resignation of the Depositary and, in any event, within 90
days after the Company receives such notice or becomes aware of such
ineligibility, the Company's designation of the Depositary pursuant to Section
2.02(b)(20) shall no longer be effective with respect to the Securities of such
series, and the Company shall execute, and the Trustee, upon receipt of an
Authentication Order for the authentication and delivery of certificated
Securities of such series of like tenor, shall authenticate and deliver,
Securities of such series of like tenor in certificated form, in authorized
denominations and in an aggregate principal amount equal to the principal amount
of the Security or Securities of such series of like tenor in global form in
exchange for such Security or Securities in global form. Upon the occurrence of
an Event of Default, any Securities in book-entry form only at the Depositary
will be exchanged in a like manner for certificated Securities registered in the
name of the beneficial owner of such Securities or its nominee.

          (e) The Company may at any time in its sole discretion, and subject to
the procedures of the Depositary, determine that all (but not less than all)
Securities of a series issued in global form shall no longer be represented by
such a Security or Securities in global form. In such event the Company shall
execute, and the Trustee, upon receipt of an Authentication Order for the
authentication and delivery of certificated Securities of such series of like
tenor, shall authenticate and deliver, Securities of such series of like tenor
in certificated form, in authorized denominations and in an aggregate principal
amount equal to the principal amount of the Security or Securities of such
series of like tenor in global form in exchange for such Security or Securities
in global form.

          (f) If specified by the Company pursuant to Section 2.02 with respect
to a series of Securities, the Depositary for such series may surrender a
Security in global form of such series in exchange in whole or in part for
Securities of such series in certificated form on such terms as are acceptable
to the Company and such Depositary. Thereupon, the Company shall execute, and
the Trustee shall authenticate and deliver, without service charge,

               (i) to each Person specified by such Depositary a new
          certificated Security or Securities of the same series of like tenor,
          of any authorized denomination as requested by such Person in
          aggregate principal amount equal to and in exchange for such Person's
          beneficial interest in the Security in global form; and

               (ii) to such Depositary a new Security in global form of like
          tenor in a denomination equal to the difference, if any, between the
          principal amount of the surrendered Security in global form and the
          aggregate principal amount of certificated Securities delivered to
          Holders thereof.

          (g) Upon the exchange of a Security in global form for Securities in
certificated form, such Security in global form shall be canceled by the
Trustee. Securities in certificated form issued in exchange for a Security in
global form pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depositary for such Security in global
form, pursuant to instructions from its direct or Indirect Participants or

                                       13
<PAGE>

otherwise, shall instruct the Trustee in writing. The Trustee shall deliver such
Securities to the Persons in whose names such Securities are so registered.

          (h) Whenever any Securities are 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.

          (i) All Securities issued upon any registration of transfer or upon
any 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.

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

          (k) No service charge shall be made for any registration of transfer
or for any 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 or transfer or exchange of Securities, other
than exchanges pursuant to Section 2.12, 9.05 or 3.06 not involving any
transfer.

          (l) The Company shall not be required (i) to issue, register the
transfer of, or exchange any Securities for a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of any
such Securities selected for redemption 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.

          (m) The foregoing provisions relating to registration, transfer and
exchange may be modified, supplemented or superseded with respect to any series
of Securities by a Board Resolution or in one or more indentures supplemental
hereto.

          (n) The following legend shall appear on the face of all Global
Securities unless specifically stated otherwise in the applicable provision of
this Indenture:

          "Unless this certificate is presented by an authorized
          representative of The Depository Trust Company, a New York
          corporation ("DTC"), to Issuer or its agent for registration
          of transfer, exchange, or payment, and any certificate
          issued is registered in the name of Cede & Co. or in such
          other name as is requested by an authorized representative
          of DTC (and any payment is made to Cede & Co. or to such
          other entity as is requested by an authorized representative
          of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE
          OR OTHERWISE BY OR

                                       14
<PAGE>

          TO ANY PERSON IS WRONGFUL inasmuch as the registered
          owner hereof, Cede & Co., has an interest herein."

          (o) At such time as all beneficial interests in a particular Global
Security have been exchanged for definitive Securities or a particular Global
Security has been redeemed, repurchased or canceled in whole and not in part,
each such Global Security shall be returned to or retained and canceled by the
Trustee in accordance with Section 2.13 hereof. At any time prior to such
cancellation, if any beneficial interest in a Global Security is exchanged for
or transferred to a Person who will take delivery thereof in the form of a
beneficial interest in another Global Security or for definitive Securities, the
principal amount of Securities represented by such Global Security shall be
reduced accordingly and an endorsement shall be made on such Global Security by
the Trustee or by the Depositary at the direction of the Trustee to reflect such
reduction; and if the beneficial interest is being exchanged for or transferred
to a Person who will take delivery thereof in the form of a beneficial interest
in another Global Security, such other Global Security shall be increased
accordingly and an endorsement shall be made on such Global Security by the
Trustee or by the Depositary at the direction of the Trustee to reflect such
increase.

          (p) Prior to due presentment for the registration of a transfer of any
Security, the Trustee, any Agent and the Company may deem and treat the Person
in whose name any Security is registered as the absolute owner of such Security
for the purpose of receiving payment of principal of and (subject to the record
date provisions of such Security) interest on such Securities and for all other
purposes, and neither the Trustee, any Agent nor the Company shall be affected
by notice to the contrary. Notwithstanding the foregoing, with respect to any
Global Security, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by any Depositary, as a
Holder, with respect to such Global Security or impair, as between such
Depositary and owners of beneficial interests in such Global Security, the
operation of customary practices governing the exercise of the rights of such
Depositary (or its nominee) as Holder of such Global Security.

          (q) None of the Company, the Trustee nor any agent of the Company or
the Trustee will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Global Security or maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

          SECTION 2.09. REPLACEMENT SECURITIES.

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

                                       15
<PAGE>

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

          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.

          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.

         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 2.10. OUTSTANDING SECURITIES.

          The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest in a Global Security
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section as not outstanding. Except as set forth in Section
2.11 hereof, a Security does not cease to be outstanding because the Company or
an Affiliate of the Company holds the Security.

          If a Security is replaced pursuant to Section 2.09 hereof, it ceases
to be outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a "protected purchaser" (within the meaning of
Article 8 of the Uniform Commercial Code) or a Person with comparable status
under other applicable law.

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

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

          SECTION 2.11. TREASURY SECURITIES.

          In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company, or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company, shall
be considered as though not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities that the Trustee knows are so
owned shall be so disregarded.

                                       16
<PAGE>

          SECTION 2.12. TEMPORARY SECURITIES.

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

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

          SECTION 2.13. CANCELLATION.

          The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee and no one else shall cancel all Securities surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
shall dispose of canceled Securities in accordance with its customary procedures
(subject to the record retention requirement of the Exchange Act). Certification
of the disposition of all canceled Securities shall be delivered to the Company.
The Company may not issue new Securities to replace Securities that it has paid
or that have been delivered to the Trustee for cancellation.

          SECTION 2.14. DEFAULTED INTEREST.

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

                                   ARTICLE 3
                            REDEMPTION AND PREPAYMENT

          SECTION 3.01. APPLICABILITY OF ARTICLE.

                                       17
<PAGE>

          The provisions of this Article shall be applicable to the Securities
of any series which are redeemable before their maturity or to any sinking fund
for the retirement of Securities of a series except as otherwise specified as
contemplated by Section 2.02 for Securities of such series.

          SECTION 3.02. SELECTION OF SECURITIES TO BE REDEEMED.

          If less than all of the Securities of any series are to be redeemed at
any time, the Trustee shall select the Securities of such series to be redeemed
among the Holders of the Securities of such series by such method as the Trustee
deems fair and appropriate; PROVIDED that no Securities of $1,000 or less shall
be redeemed in part. The particular Securities of such series to be redeemed
shall be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption date by the Trustee from the outstanding
Securities of the series not previously called for redemption.

          The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Security selected for
partial redemption, the principal amount thereof to be redeemed. Securities and
portions of Securities selected shall be in amounts of $1,000 or whole multiples
of $1,000; except that if all of the Securities of a series of a Holder are to
be redeemed, the entire outstanding amount of Securities of such series held by
such Holder, even if not a multiple of $1,000, shall be redeemed. A new Security
of the same series and tenor in principal amount equal to the unredeemed portion
thereof will be issued in the name of the Holder thereof upon cancellation of
the original Security. Securities called for redemption shall become due on the
redemption date. On and after the redemption date, interest will cease to accrue
on the Securities or portions of them called for redemption. Except as provided
in this Section 3.02, provisions of this Indenture that apply to Securities
called for redemption shall also apply to portions of Securities called for
redemption.

          SECTION 3.03. NOTICE OF REDEMPTION.

          The election of the Company to redeem any Securities shall be
evidenced by a Board Resolution or in another manner specified as contemplated
by Section 2.02 for such Securities. In case of any redemption at the election
of the Company, 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 such redemption date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor of the
Securities to be redeemed. In the case of any redemption of Securities (a) prior
to the expiration of any restriction on such redemption provided in the terms of
such Securities or elsewhere in this Indenture, or (b) pursuant to an election
of the Company which is subject to a condition specified 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 or
condition.

          At least 30 days but not more than 60 days before a redemption date,
the Company shall mail or cause to be mailed, by first class mail, a notice of
redemption to each Holder whose Securities are to be redeemed at its registered
address.

          The notice shall identify the Securities to be redeemed, including the
series thereof, and shall state:

                                       18
<PAGE>

          (a) the redemption date;

          (b) the redemption price;

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

          (d) that Securities called for redemption must be surrendered to the
Paying Agent to collect the redemption price;

          (e) that, unless the Company defaults in making such redemption
payment, interest on Securities called for redemption will cease to accrue on
and after the redemption date;

          (f) that in the case of any Security being redeemed in part, the
portion of the principal amount of such Security to be redeemed and that, after
the redemption date upon surrender of such Security, a new Security or
Securities of the same series and tenor in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original;

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

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

          At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense; PROVIDED,
HOWEVER, that the Company shall have delivered to the Trustee, at least 45 days
prior to the redemption date, an Officers' Certificate requesting that the
Trustee give such notice and setting forth the information to be stated in such
notice as provided in the preceding paragraph.

          SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION.

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

          SECTION 3.05. DEPOSIT OF REDEMPTION OR PURCHASE PRICE.

          One Business Day prior to 10:00 a.m., Eastern Time, on any redemption
date or purchase date, the Company shall deposit with the Trustee or with the
Paying Agent money in immediately available funds sufficient to pay the
redemption or purchase price of and accrued interest, if any, on all Securities
to be redeemed or purchased on that date. The Trustee or the Paying Agent shall
promptly return to the Company any money deposited with the Trustee or the
Paying Agent by the Company in excess of the amounts necessary to pay the
redemption or purchase price of, and accrued interest on, all Securities to be
redeemed or purchased.

          SECTION 3.06. SECURITIES REDEEMED OR PURCHASED IN PART.

                                       19
<PAGE>

          Upon surrender of a Security that is redeemed or purchased in part,
the Company shall issue and, upon the Company's written request, the Trustee
shall authenticate for the Holder at the expense of the Company a new Security
of the same series and tenor equal in principal amount to the unredeemed or
unpurchased portion of the Security surrendered.

          SECTION 3.07. MANDATORY REDEMPTION; SINKING FUND.

          The Company shall not be required to make mandatory redemption or
sinking fund payments with respect to the Securities, unless otherwise specified
in the terms of a particular series of Securities. If a mandatory or optional
sinking fund is specified in the terms of a particular series of Securities, the
following provisions will apply thereto (unless otherwise specified):

          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." The last date on which any such payment may be made is
herein referred to as a "sinking fund payment date."

          In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Securities of a series in cash, the Company may at
its option (a) deliver to the Trustee Securities of that series theretofore
purchased by the Company and (b) may apply as a credit Securities of that series
which have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of optional sinking fund
payments pursuant to the next succeeding paragraph, in each case in satisfaction
of all or any part of any mandatory sinking fund payment, PROVIDED that such
Securities have not been previously so credited. Each such Security so delivered
or applied as a credit shall be credited at the sinking fund redemption price
for such Securities and the amount of any mandatory sinking fund shall be
reduced accordingly. If the Company intends so to deliver or credit such
Securities with respect to any mandatory sinking fund payment it shall deliver
to the Trustee at least 45 days prior to the next succeeding sinking fund
payment date for such series (a) an Officers' Certificate specifying the portion
of such sinking fund payment, if any, to be satisfied by payment of cash and the
portion of such sinking fund payment, if any, which is to be satisfied by
delivering and crediting such Securities, and stating the basis of such credit
and that such Securities have not previously been so credited, and (b) any
Securities to be so delivered. All Securities so delivered to the Trustee shall
be cancelled by the Trustee and no Securities shall be authenticated in lieu
thereof. If the Company fails to deliver such certificate and Securities at or
before the time provided above, the Company shall not be permitted to satisfy
any portion of such mandatory sinking fund payment by delivery or credit of
Securities.

          At its option the Company may pay into the sinking fund for the
retirement of Securities of any particular series, on or before each sinking
fund payment date for such series, any additional sum in cash as specified by
the terms of such series of Securities. If the Company intends to exercise its
right to make any such optional sinking fund payment, it shall deliver to the
Trustee at least 45 days prior to the next succeeding sinking

                                       20
<PAGE>

fund payment date for such series of Securities an Officers' Certificate stating
that the Company intends to exercise such optional right and specifying the
amount which the Company intends to pay on such sinking fund payment date. If
the Company fails to deliver such certificate at or before the time provided
above, the Company shall not be permitted to make any optional sinking fund
payment with respect to such sinking fund payment date. To the extent that such
right is not exercised in any year it shall not be cumulative or carried forward
to any subsequent year.

          If the sinking fund payment or payments (mandatory or optional) made
in cash plus any unused balance of any preceding sinking fund payments made in
cash shall exceed $50,000 (or a lesser sum if the Company shall so request) with
respect to the Securities of any particular series, it shall be applied by the
Trustee or one or more Paying Agents on the next succeeding sinking fund payment
date to the redemption of Securities of such series at the sinking fund
redemption price together with accrued interest to the date fixed for
redemption. The Trustee shall select, in the manner provided in Section 3.02,
for redemption on such sinking fund payment date a sufficient principal amount
of Securities of such series to exhaust said cash, as nearly as may be, and the
Trustee shall, at the expense and in the name of the Company, thereupon cause
notice of redemption of Securities of such series to be given in substantially
the manner and with the effect provided in Sections 3.02 and 3.03 for the
redemption of Securities of that series in part at the option of the Company,
except that the notice of redemption shall also state that the Securities of
such series are being redeemed for the sinking fund. Any sinking fund moneys not
so applied or allocated by the Trustee or any Paying Agent to the redemption of
Securities of that series shall be added to the next cash sinking fund payment
received by the Trustee or the Paying Agent and, together with such payment,
shall be applied in accordance with the provisions of this Section 3.07. Any and
all sinking fund moneys held by the Trustee or any Paying Agent on the maturity
date of the Securities of any particular series, and not held for the payment or
redemption of particular Securities of such series, shall be applied by the
Trustee or such Paying Agent, together with other moneys, if necessary, to be
deposited sufficient for the purpose, to the payment of the principal of the
Securities of that series at maturity. On or before each sinking fund payment
date, the Company shall pay to the Trustee or to one or more Paying Agents in
cash a sum equal to all interest accrued to the date fixed for redemption on
Securities to be redeemed on the next following sinking fund payment date
pursuant to this Section. Neither the Trustee nor any Paying Agent shall redeem
any Securities of a series with sinking fund moneys, and the Trustee shall not
mail any notice of redemption of Securities for such series by operation of the
sinking fund, during the continuance of a default in payment of interest on such
Securities or of any Event of Default (other than an Event of Default occurring
as a consequence of this paragraph), except that if the notice of redemption of
any Securities shall theretofore have been mailed in accordance with the
provisions hereof, the Trustee or any paying agent shall redeem such Securities
if cash sufficient for that purpose shall be deposited with the Trustee or such
paying agent for that purpose in accordance with the terms of this Article 3.
Except as aforesaid, any moneys in the sinking fund for such series at the time
when any such default or Event of Default shall occur and any moneys thereafter
paid into the sinking fund shall, during the continuance of such default or
Event of Default, be held as security for the payment of all such Securities;
PROVIDED, HOWEVER, that in case such Event of Default or default shall have been
cured or waived as provided herein, such moneys shall thereafter be applied on
the next succeeding sinking fund payment date on which such moneys may be
applied pursuant to the provisions of this Section 3.07.

                                       21
<PAGE>

                                    ARTICLE 4
                                    COVENANTS

          SECTION 4.01. PAYMENT OF SECURITIES.

          The Company shall pay or cause to be paid the principal of, premium,
if any, and interest on the Securities on the dates and in the manner provided
in the Securities. Principal, premium, if any, and interest shall be considered
paid on the date due if the Paying Agent, if other than the Company or a
Subsidiary thereof, holds as of 10:00 a.m., Eastern Time, on the due date money
deposited by the Company in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due.

          SECTION 4.02. MAINTENANCE OF OFFICE OR AGENCY.

          The Company shall maintain in the State of New York or such other
place of payment specified in the Security or related supplemental indenture
(each, a "PLACE OF PAYMENT"), an office or agency (which may be an office of the
Trustee or an affiliate of the Trustee, Registrar or co-Registrar) where
Securities may be surrendered for registration of transfer or for exchange and
where notices and demands to or upon the Company in respect of the Securities
and this Indenture may be served. The Company shall give prompt written notice
to the Trustee of the location, and any change in the location, of such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
Trustee's principal corporate trust office in the Borough of Manhattan, the City
of New York, which currently is located at 4 New York Plaza, 15th Floor, New
York, New York 10004, Attention: Worldwide Securities Services.

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

          SECTION 4.03. REPORTS.

          (a) The Company covenants and agrees to file with the Trustee, and to
provide by mail to each Holder, within 15 days after the Company is required to
file the same with the SEC, copies of the annual reports, quarterly reports and
the information, documents and other reports which the Company is required to
file with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act.

          (b) The Company covenants and agrees to file with the Trustee and the
SEC, in accordance with the rules and regulations prescribed from time to time
by the SEC, such additional information, documents and reports with respect to
compliance by the Company with the conditions and covenants provided for in this
Indenture as may be required from time to time by such SEC rules and
regulations.

                                       22
<PAGE>

          (c) The Company covenants and agrees to furnish to the Trustee within
120 days of the end of each fiscal year, the compliance certificate required by
TIA ss. 314(a)(4).

          (d) Delivery of such reports, information and documents to the Trustee
is for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).

          SECTION 4.04. COMPLIANCE CERTIFICATE.

          (a) The Company shall deliver to the Trustee, within 90 days after the
end of each fiscal year, an Officers' Certificate stating that a review of the
activities of the Company and its Subsidiaries during the preceding fiscal year
has been made under the supervision of the signing Officers with a view to
determining whether the Company has kept, observed, performed and fulfilled its
obligations under this Indenture, and further stating, as to each such Officer
signing such certificate, that to the best of his or her knowledge the Company
has kept, observed, performed and fulfilled each and every covenant contained in
this Indenture and is not in default in the performance or observance of any of
the terms, provisions and conditions of this Indenture (or, if a Default, Event
of Default or other instance of non-compliance with any of the terms of this
Indenture shall have occurred, describing all such Defaults, Events of Default
or instances of non-compliance of which he or she may have knowledge and what
action the Company is taking or proposes to take with respect thereto) and that
to the best of his or her knowledge no event has occurred and remains in
existence by reason of which payments on account of the principal of, premium,
if any, or interest on the Securities is prohibited or if such event has
occurred, a description of the event and what action the Company is taking or
proposes to take with respect thereto.

          (b) The Company shall, so long as any of the Securities are
outstanding, deliver to the Trustee, forthwith upon any Officer of the Company
becoming aware of any Default or Event of Default, an Officers' Certificate
specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

          SECTION 4.05. CONTINUED EXISTENCE.

          Subject to Article 5 hereof, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect (i) its
existence as a corporation or other permitted entity, and the corporate,
partnership or other existence of each of its Significant Subsidiaries, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Significant Subsidiary and
(ii) the rights (charter and statutory), licenses and franchises of the Company
and any of its Significant Subsidiaries; PROVIDED, HOWEVER, that the Company
shall not be required to preserve any such right, license or franchise, or the
corporate, partnership or other existence of any of its Significant
Subsidiaries, if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
its Significant Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Securities.

                                       23
<PAGE>

          SECTION 4.06. STAY, EXTENSION AND USURY LAWS.

          The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the 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 shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.

                                    ARTICLE 5
                                   SUCCESSORS

          SECTION 5.01. MERGER, CONSOLIDATION, OR SALE OF ASSETS.

          The Company may consolidate or amalgamate with, merge into, convert
itself into, or sell, assign, transfer, lease, convey or otherwise dispose of
(including any such disposition that might be deemed to occur as a result of the
conversion of the Company into another form of organization) all or
substantially all of its properties or assets in one or more related
transactions, to another Person (other than an individual, a government or an
agency or political subdivision of a government), but only if (a) either (i) the
Company is the surviving entity or (ii) the Person formed by or surviving any
such consolidation, amalgamation, merger or conversion (if other than the
Company) or to which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made is a Person organized or existing under the
laws of the United States, any state thereof, or the District of Columbia or
Bermuda; (b) the Person formed by or surviving any such consolidation,
amalgamation, merger or conversion (if other than the Company) or the Person to
which such sale, assignment, transfer, lease, conveyance or other disposition
shall have been made assumes all the obligations of the Company under the
Securities and this Indenture pursuant to a supplemental indenture in a form
reasonably satisfactory to the Trustee; and (c) immediately after such
transaction no Default or Event of Default exists. If the Company requests the
Trustee to enter into any supplemental indenture, or to take any other action,
as a result of such consolidation, amalgamation, merger, sale, assignment,
transfer, lease, conveyance or other disposition, the Company will also furnish
to the Trustee an Officers' Certificate and an Opinion of Counsel, each to the
effect that the conditions precedent set forth in this Section 5.01 have been
complied with.

          SECTION 5.02. SUCCESSOR PERSON SUBSTITUTED.

          Upon any consolidation, amalgamation, merger or conversion, or any
sale, assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the properties or assets of the Company in accordance with
Section 5.01 hereof, the successor Person formed by such consolidation or
amalgamation or into or with which the Company is merged or converted or to
which such sale, assignment, transfer, lease, conveyance or other disposition is
made shall succeed to, and be substituted for (so that from and after the date
of such consolidation, amalgamation, merger, conversion, sale, assignment,
transfer, lease, conveyance or other disposition, the provisions of this
Indenture referring to the "Company" shall refer instead to the

                                       24
<PAGE>

successor Person and not to the Company), and may exercise every right and power
of the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein; PROVIDED, HOWEVER, that the
predecessor Company shall not be relieved from the obligation to pay the
principal of, premium, if any, and interest on the Securities except in the case
of a sale, assignment, transfer, conveyance or other disposition (other than a
lease) of all or substantially all of the Company's properties or assets that
meets the requirements of Section 5.01 hereof.

                                   ARTICLE 6
                              DEFAULTS AND REMEDIES

          SECTION 6.01. EVENTS OF DEFAULT.

An "Event of Default," with respect to Securities of any series shall have
occurred if:

          (a) the Company defaults in the payment when due of interest on, or
with respect to, any Security of that series and such default continues for a
period of 30 days;

          (b) the Company defaults in the payment when due of principal of or
premium, if any, on, or a sinking fund payment with respect to, any Security of
that series when the same becomes due and payable at maturity, upon redemption
or otherwise;

          (c) the Company fails to comply with any of the provisions of Section
5.01 hereof;

          (d) the Company fails to observe or perform any other covenant,
representation, warranty or other agreement in this Indenture, with respect to
any Security of that series for 60 days after notice to comply;

          (e) the Company, pursuant to or within the meaning of any Bankruptcy
Law:

               (i) commences a voluntary case;

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

               (iii) consents to the appointment of a custodian of it or for all
          or substantially all of its property;

               (iv) makes a general assignment for the benefit of its creditors;
          or

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

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

               (i) is for relief against the Company in an involuntary case;

                                       25
<PAGE>

               (ii) appoints a custodian of the Company for all or substantially
          all of the property of the Company; or

               (iii) orders the liquidation of the Company;

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

          (g) any other event provided with respect to Securities of that series
in the terms thereof as contemplated by Section 2.02 hereof shall occur.

          The term "CUSTODIAN" as used in this Article 6 means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

          A Default under clause (d) with respect to the Securities of any
series is not an Event of Default until the Trustee notifies the Company, or the
Holders of at least 25% in principal amount of the then outstanding Securities
of all series affected by the Default (treating all such series as a single
class) notify the Company and the Trustee, of the Default and the Company does
not cure the Default within 60 days after receipt of the notice. The notice must
specify the Default, demand that it be remedied and state that the notice is a
"NOTICE OF DEFAULT."

          SECTION 6.02. ACCELERATION.

          If any Event of Default with respect to one or more series of
Securities (other than an Event of Default specified in clause (e) or (f) of
Section 6.01 hereof) occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Securities of all series
with respect to which an Event of Default shall have occurred and be continuing
(treating all such series as a single class) may declare all the Securities of
all such series to be due and payable immediately by a notice in writing to the
Company (and to the Trustee if given by Holders). Upon any such declaration, the
principal of, premium, if any, and accrued and unpaid interest with respect to
the Securities of all such series shall become due and payable immediately.
Notwithstanding the foregoing, if an Event of Default specified in clause (e) or
(f) of Section 6.01 hereof occurs, all outstanding Securities of all series
shall be due and payable immediately without further action or notice.

          SECTION 6.03. OTHER REMEDIES.

          If an Event of Default with respect to a series of Securities occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of principal, premium, if any, and interest on the Securities of such
series or to enforce the performance of any provision of the Securities of such
series or this Indenture with respect to such series.

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

                                       26
<PAGE>

          SECTION 6.04. WAIVER OF PAST DEFAULTS; RESCISSION OF ACCELERATION.

          Holders of a majority in aggregate principal amount of the then
outstanding Securities of all series affected (treating all such series as a
single class) may, by notice to the Trustee, on behalf of the Holders of all of
the Securities of all such series, waive an existing Default or Event of Default
with respect to such series and its consequences hereunder (including in
connection with an offer to purchase or exchange), except a continuing Default
or Event of Default in the payment of the principal of, premium, if any,
interest on, or any sinking fund payment with respect to, the Securities of such
series, and except a continuing Default or Event of Default under any provision
of this Indenture that, under Section 9.02, cannot be modified or waived without
the consent of a greater number of Holders or of each Holder affected. Upon any
such waiver, such Default or Event of Default shall be deemed to have been cured
for every purpose of this Indenture, but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereon. The Holders of a majority in aggregate principal amount of the then
outstanding Securities of all series affected (treating all such series as a
single class) may also rescind an acceleration and its consequences with respect
to all such series, including any related payment default that resulted from
such acceleration, but not including any other payment default.

          SECTION 6.05. CONTROL BY MAJORITY.

          Holders of a majority in principal amount of the then outstanding
Securities of all series with respect to which an Event of Default shall have
occurred and be continuing (treating all such series as a single class) may
direct the time, method and place of conducting any proceeding for exercising
any remedy available to the Trustee or exercising any trust or power conferred
on it; PROVIDED that:

               (i) such direction shall not be in conflict with any law or rule
          or with this Indenture;

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

               (iii) the Trustee need not take any action which might involve it
          in personal liability or be unduly prejudicial to the Holders of
          Securities of such series not joining therein.

          SECTION 6.06. LIMITATION ON SUITS.

          A Holder of a Security of any series may pursue a remedy with respect
to this Indenture or the Securities of such series only if:

          (a) the Holder of a Security of any or all series affected gives to
the Trustee written notice of a continuing Event of Default;

                                       27
<PAGE>

          (b) the Holders of at least 25% in principal amount of the then
outstanding Securities of all affected series (treating all such series as a
single class) make a written request to the Trustee to pursue the remedy;

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

          (d) the Trustee does not comply with the request within 30 days after
receipt of such notice, request and offer and, if requested, provision of
indemnity; and

          (e) during such 30-day period the Holders of a majority in principal
amount of the then outstanding Securities of all such series (treating all such
series as a single class) do not give the Trustee a direction inconsistent with
the request.

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

          SECTION 6.07. RIGHTS OF HOLDERS OF SECURITIES TO RECEIVE PAYMENT.

          Notwithstanding any other provision of this Indenture, the right of
any Holder of a Security of any series to receive payment of principal, premium,
if any, and interest on such Security, on or after the respective due dates
expressed or provided for in such Security (including in connection with an
offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the
consent of such Holder.

          SECTION 6.08. COLLECTION SUIT BY TRUSTEE.

          If an Event of Default specified in Section 6.01(a) or (b) occurs and
is continuing with respect to any series of Securities, the Trustee is
authorized to recover judgment in its own name and as Trustee of an express
trust against the Company for the whole amount of principal of, premium, if any,
and interest remaining unpaid on such Securities and interest on overdue
principal and, to the extent lawful, interest at the rate provided for in such
Securities and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

          SECTION 6.09. TRUSTEE MAY FILE PROOFS OF CLAIM.

          The Trustee is authorized to file such proofs of claim and other
papers or documents as may be necessary or advisable in order to have the claims
of the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Securities of any series allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Securities), its
creditors or its property and shall be entitled and empowered to collect,
receive and distribute any money or other property payable or deliverable on any
such claims and any custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the

                                       28
<PAGE>

event that the Trustee shall consent to the making of such payments directly to
the Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.07 hereof. To
the extent that the payment of any such compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 7.07 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a lien
on, and shall be paid out of, any and all distributions, dividends, money,
securities and other properties that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Securities of any series or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

          SECTION 6.10. PRIORITIES.

          If the Trustee collects any money or other property pursuant to this
Article, it shall pay out the money or other property in the following order:

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

          SECOND: to Holders of Securities for amounts due and unpaid on the
Securities for principal, premium, if any, interest and any other amounts,
ratably, without preference or priority of any kind, according to the amounts
due and payable on the Securities for principal, premium, if any, interest and
other amounts, respectively; and

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

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

          SECTION 6.11. UNDERTAKING FOR COSTS.

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

                                       29
<PAGE>

                                    ARTICLE 7
                                     TRUSTEE

          SECTION 7.01. DUTIES OF TRUSTEE.

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

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

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

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

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

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

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

               (iii) the Trustee shall not be liable with respect to any action
          it takes or omits to take in good faith in accordance with a direction
          received by it pursuant to Section 6.05 hereof.

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

          (e) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or incur any liability.

                                       30
<PAGE>

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

          SECTION 7.02. RIGHTS OF TRUSTEE.

          (a) The Trustee may conclusively rely upon any document believed by it
to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

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

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

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

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

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

          (g) The Trustee shall not be charged with knowledge or deemed to have
notice of any Default or Event of Default unless a Responsible Officer of the
Trustee shall have actual knowledge thereof or unless the Trustee shall have
received notice thereof in accordance with Section 11.02.

          SECTION 7.03. INDIVIDUAL RIGHTS OF TRUSTEE.

          The Trustee in its individual or any other capacity may become the
owner or pledgee of Securities and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest (within the meaning of TIA ss. 310(b)) it must eliminate such
conflicting interest within 90 days after Default, apply to the SEC for
permission to continue as trustee, or resign. Any Agent may do the same with
like rights and duties.

                                       31
<PAGE>

          SECTION 7.04. TRUSTEE'S DISCLAIMER.

          The Trustee shall not be responsible for and makes no representation
as to the validity or adequacy of this Indenture or the Securities; it shall not
be accountable for the Company's use of the proceeds from the Securities or any
money paid to the Company or upon the Company's direction under any provision of
this Indenture; it shall not be responsible for the use or application of any
money received by any Paying Agent other than the Trustee; and it shall not be
responsible for any statement or recital herein or any statement in the
Securities or any other document in connection with the sale of the Securities
or pursuant to this Indenture other than its certificate of authentication.

          SECTION 7.05. NOTICE OF DEFAULTS.

          If a Default or Event of Default occurs and is continuing and if a
Responsible Officer of the Trustee has actual knowledge of such Default or Event
of Default, the Trustee shall mail to Holders of Securities a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment of principal of, or interest on, any
Security, the Trustee may withhold the notice if and so long as a committee of
its Responsible Officers in good faith determines that withholding the notice is
in the interests of the Holders of the Securities.

          SECTION 7.06. REPORTS BY TRUSTEE TO HOLDERS OF THE
                        SECURITIES.

          On or before May 15 of each year, beginning with the May 15 following
the date on which Securities are first issued under this Indenture, and for so
long as Securities remain outstanding, the Trustee shall mail to the Holders of
the Securities a brief report dated as of such reporting date that complies with
TIA ss. 313(a) (but if no event described in TIA ss. 313(a) has occurred within
the twelve months preceding the reporting date, no report need be transmitted).
The Trustee also shall comply with TIA ss. 313(b)(2). The Trustee shall also
transmit by mail all reports as required by TIA ss. 313(c). A copy of each
report at the time of its mailing to the Holders of Securities shall be mailed
to the Company and filed with the SEC and each stock exchange on which the
Securities are listed in accordance with TIA ss. 313(d). The Company shall
promptly notify the Trustee when the Securities are listed on any stock
exchange.

          SECTION 7.07. COMPENSATION AND INDEMNITY.

         The Company shall pay to the Trustee from time to time such
compensation for its acceptance of this Indenture and services hereunder as the
Company and Trustee have separately agreed. The Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Company shall reimburse the Trustee promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services, except to the extent any disbursement, advance or
expense may be attributable to its negligence or willful misconduct. Such
expenses shall include the reasonable compensation, disbursements and expenses
of the Trustee's agents and counsel.

          The Company shall indemnify the Trustee against any and all losses,
liabilities or expenses incurred by it arising out of or in connection with the
acceptance or administration of

                                       32
<PAGE>

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

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

          To secure the Company's payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held
or collected by the Trustee, except for those funds that are held in trust to
pay principal of, premium, if any, and interest on particular Securities. Such
lien shall survive the satisfaction and discharge of this Indenture.

          Without limiting any rights available to the Trustee under applicable
law, when the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.01(e) or (f) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.

          SECTION 7.08. REPLACEMENT OF TRUSTEE.

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

          The Trustee may resign with respect to one or more or all series of
Securities at any time and be discharged from the trust hereby created by so
notifying the Company in writing. The Holders of a majority in principal amount
of the then outstanding Securities of any series may remove the Trustee with
respect to such series by so notifying the Trustee and the Company in writing.
The Company may remove the Trustee if:

               (a) the Trustee ceases to be eligible in accordance with Section
          7.10 hereof;

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

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

               (d) the Trustee becomes incapable of acting.

                                       33
<PAGE>

          If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the then outstanding Securities of a series
may appoint a successor Trustee to replace the successor Trustee appointed by
the Company with respect to that series of Securities.

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

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

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

          If a successor Trustee is appointed 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 any applicable series shall
execute and deliver an indenture supplemental hereto which 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 any series as to which the predecessor Trustee is not retiring
shall continue to be vested in the predecessor Trustee, and 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 as 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.

          SECTION 7.09. SUCCESSOR TRUSTEE BY MERGER, ETC.

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

          SECTION 7.10. ELIGIBILITY; DISQUALIFICATION.

                                       34
<PAGE>

          There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trust powers, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $50,000,000
as set forth in its most recent published annual report of condition.

          This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss. 310(b).

          SECTION 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST
                        COMPANY.

          The Trustee is subject to TIA ss. 311(a), excluding any creditor
relationship described in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.

                                   ARTICLE 8
                    LEGAL DEFEASANCE AND COVENANT DEFEASANCE

          SECTION 8.01. OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT
                        DEFEASANCE.

          (a) The Company may, at the option of its Board of Directors evidenced
by a resolution set forth in an Officers' Certificate, at any time, elect to
have either Section 8.02 or 8.03 hereof, with such modifications thereto as may
be specified in the Board Resolution or supplemental indenture establishing a
particular series of Securities, be applied to all outstanding Securities of one
or more series upon compliance with the conditions set forth below in this
Article 8.

          (b) As an alternative to having Section 8.02 or 8.03 be applied to all
outstanding Securities of one or more series, the Company may terminate its
obligations under the Securities of one or more series and its obligations under
this Indenture in respect of such series of Securities (except those obligations
referred to in the penultimate paragraph of this Section 8.01(b), and any
obligation of the Company to convert or exchange Securities of such series as
expressly provided for in the Board Resolution or indenture supplemental hereto
establishing such Series) (1) if (i) all Securities of such series theretofore
authenticated and delivered (except lost, stolen or destroyed Securities that
have been replaced or paid and Securities for whose payment cash in United
States dollars 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 8.06) have been delivered to the Trustee for
cancellation; (ii) the Company has paid all sums payable by it hereunder or
under the applicable Board Resolution or indenture supplemental hereto in
respect of such series of Securities; and (iii) the Company shall have delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent relating to the satisfaction and discharge of this
Indenture with respect to such series have been complied with; or (2) if (i)
either (A) in the case of a series of Securities redeemable prior to its Stated
Maturity, such Securities are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the

                                       35
<PAGE>

giving of notice of redemption by the Trustee in the name, and at the expense,
of the Company or (B) all Securities of such series have otherwise become due
and payable hereunder or will become due and payable within one year; (ii) the
Company shall have irrevocably deposited or caused to be deposited with the
Trustee (or a trustee satisfactory to the Trustee, under the terms of an
irrevocable trust agreement in form and substance satisfactory to the Trustee),
as trust funds in trust solely for the benefit of the Holders of Securities of
such series for that purpose, cash in United States dollars in such amount as is
sufficient without consideration of reinvestment of interest or other earnings
on such cash, to pay the entire indebtedness on such Securities not theretofore
delivered to the Trustee for cancellation, for the principal of, premium, if
any, and interest on the outstanding Securities of such series to the date of
such deposit (in the case of Securities which have become due and payable) or to
the stated maturity or redemption date, as the case may be; (iii) no Default or
Event of Default with respect to this Indenture or the Securities shall have
occurred and be continuing on the date of such deposit or shall occur as a
result of such deposit and such deposit will not result in a breach or violation
of, or constitute a default under, any other instrument to which the Company is
bound; (iv) the Company shall have paid all other sums payable by it hereunder
in respect of Securities of such series; and (v) the Company shall have
delivered to the Trustee an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions precedent relating to the satisfaction and
discharge of this Indenture have been complied with.

          Notwithstanding the foregoing paragraph, the Company's obligations in
Sections 2.07, 2.08, 2.09, 2.10, 4.02, 7.07, 8.06 and 8.07 shall survive with
respect to the Securities of the applicable series until they are no longer
outstanding pursuant to the last paragraph of Section 2.10. After the Securities
of the applicable series are no longer outstanding, the Company's obligations in
Sections 7.07, 8.06 and 8.07 shall survive in respect of Securities of the
applicable series.

          After such delivery or irrevocable deposit, the Trustee upon request
shall acknowledge in writing the discharge of the Company's obligations under
the Securities of the applicable series and the Company's obligations under this
Indenture with respect to the Securities of such series, except for those
surviving obligations specified above.

          SECTION 8.02. LEGAL DEFEASANCE AND DISCHARGE.

          Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.02 relating to one or more series of Securities,
the Company shall, upon the satisfaction of the conditions set forth in Section
8.04 hereof, be deemed to have been discharged from its obligations with respect
to all outstanding Securities of such series on the date the conditions set
forth below are satisfied (hereinafter, "LEGAL DEFEASANCE"). For this purpose,
Legal Defeasance means that the Company shall be deemed to have paid and
discharged the entire indebtedness represented by the outstanding Securities of
the applicable series, which shall thereafter be deemed to be "OUTSTANDING" only
for the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all of its other
obligations under the Securities of the applicable series and under the
provisions of this Indenture applicable to such series (and the Trustee, on
demand of and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder: (a) the rights

                                       36
<PAGE>

of Holders of outstanding Securities of the applicable series to receive solely
from the trust fund described in Section 8.04 hereof, and as more fully set
forth in such Section, payments in respect of the principal of, premium, if any,
and interest, on such Securities when such payments are due, (b) the Company's
obligations with respect to such Securities under Article 2 and Section 4.02
hereof, (c) the rights, powers, trusts, duties and immunities of the Trustee
hereunder, and the Company's obligations in connection therewith and (d) this
Article 8. Subject to compliance with this Article 8, the Company may exercise
its option under this Section 8.02 notwithstanding the prior exercise of its
option under Section 8.03 hereof.

          SECTION 8.03. COVENANT DEFEASANCE.

          Upon the Company's exercise under Section 8.01 hereof of the option
applicable to this Section 8.03 relating to one or more series of Securities,
the Company shall, upon the satisfaction of the conditions set forth in Section
8.04 hereof, be released from its obligations under the covenants contained in
Section 4.06 hereof with respect to the outstanding Securities of the applicable
series, and under any other covenants specified in the supplemental indenture or
other terms of the applicable series as covenants to which this Section 8.03
apply, on and after the date the conditions set forth below are satisfied
(hereinafter, "COVENANT DEFEASANCE"), and the Securities of the applicable
series shall thereafter be deemed not "OUTSTANDING" for the purposes of any
direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "OUTSTANDING" for all other purposes hereunder (it being
understood that the Securities of the applicable series shall not be deemed
outstanding for accounting purposes). For this purpose, Covenant Defeasance
means that, with respect to the "OUTSTANDING" Securities of the applicable
series, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant to any
other provision herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Section 6.01 hereof,
but, except as specified above, the remainder of this Indenture and such
Securities shall be unaffected thereby.

          SECTION 8.04. CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.

          The following shall be the conditions to the application of either
Section 8.02 or 8.03 hereof to the outstanding Securities of one or more series:

          In order to exercise either Legal Defeasance or Covenant Defeasance:

          (a) the Company must irrevocably deposit with the Trustee ,(or another
trustee (satisfactory to the Trustee) satisfying the requirements of Section
7.10, who shall agree under the terms of an irrevocable trust agreement in form
and substance satisfactory to the Trustee to comply with the provisions of this
Article 8 applicable to it) in trust, for the benefit of the Holders of the
Securities of the applicable series, (i) an amount of cash in United States
dollars, (ii) non-callable U.S. Government Obligations which, through scheduled
payment of principal and interest in respect thereof in accordance with their
terms, will provide, not later than one Business Day before the due date of any
payment of principal of, premium, if any, or

                                       37
<PAGE>

interest on the Securities of such series, cash in an amount, or (iii) a
combination thereof, sufficient, in the written opinion of a nationally
recognized firm of independent public accountants delivered to the Trustee, to
pay the principal of, interest and premium, if any, on the outstanding
Securities of the applicable series on the Stated Maturity or on the applicable
redemption date, as the case may be, and any mandatory sinking fund payments
applicable to the Securities of such series on the day on which such payments
are due, and the Company must specify whether the Securities of the applicable
series are being defeased to maturity or to a particular redemption date;

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

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

          (d) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or Event of Default
resulting from the borrowing of funds to be applied to such deposit) or insofar
as Sections 6.01(e) or (f) hereof are concerned, at any time in the period
ending on the 91st day after the date of deposit (or greater period of time in
which any such deposit of trust funds may remain subject to bankruptcy or
insolvency laws insofar as those apply to the deposit by the Company); and

          (e) the Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for or relating to the Legal Defeasance or the Covenant
Defeasance have been complied with.

          SECTION 8.05. DEPOSITED MONEY AND U.S. GOVERNMENT
                        OBLIGATIONS TO BE HELD IN TRUST; OTHER
                        MISCELLANEOUS PROVISIONS.

          Subject to Section 8.06 hereof, all money and non-callable U.S.
Government Obligations (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee, collectively for purposes of this Section
8.05, the "TRUSTEE") pursuant to Section 8.04 hereof in respect of the
outstanding Securities of the applicable series shall be held in trust and
applied

                                       38
<PAGE>

by the Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as Paying Agent) as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due thereon in
respect of principal, premium, if any, and interest, but such money need not be
segregated from other funds except to the extent required by law.

          The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the cash or non-callable U.S.
Government Obligations deposited pursuant to Section 8.04 hereof or the
principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the
outstanding Securities of the applicable series.

          Anything in this Article 8 to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or non-callable U.S. Government Obligations held by it
as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.04(a) hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal
Defeasance or Covenant Defeasance of the applicable series.

          SECTION 8.06. REPAYMENT TO COMPANY.

          Any money and U.S. Government Obligations deposited with the Trustee
or any Paying Agent, or then held by the Company, in trust for the payment of
the principal of, premium or interest on any Security 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 its request or (if then held by
the Company) shall be discharged from such trust; and the Holder of such
Security shall thereafter look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such money and
U.S. Government Obligations, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in the NEW YORK TIMES and THE
WALL STREET JOURNAL (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.

          SECTION 8.07. REINSTATEMENT.

          If the Trustee or Paying Agent is unable to apply any United States
dollars or non-callable U.S. Government Obligations deposited pursuant to
Section 8.02 or 8.03 hereof, as the case may be, by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the obligations of the Company
under this Indenture and the Securities shall be revived and reinstated as
though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until
such time as the Trustee or Paying Agent is permitted to apply all such money in
accordance with Section 8.02 or 8.03 hereof, as the case may be; PROVIDED,
HOWEVER, that if the Company makes any payment

                                       39
<PAGE>

of principal of, premium or interest on any Security following the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders
of such Securities to receive such payment from the money held by the Trustee or
Paying Agent.

                                   ARTICLE 9
                        AMENDMENT, SUPPLEMENT AND WAIVER

          SECTION 9.01. WITHOUT CONSENT OF HOLDERS OF SECURITIES.

          Notwithstanding Section 9.02 of this Indenture, the Company and the
Trustee may amend or supplement this Indenture or the Securities without the
consent of any Holder of a Security:

          (a) to evidence the succession of another Person to the Company, or
successive successions, and the assumption by the successor Person of the
covenants, agreements and obligations of the Company pursuant to Article 5
hereof;

          (b) to add to the covenants of the Company such further covenants,
restrictions or conditions for the protection 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 for the benefit of such series) as the Board of Directors and the
Trustee shall consider to be for the protection of the Holders of such
Securities, and to make the occurrence, or the occurrence and continuance, of a
default in any of such additional covenants, restrictions or conditions a
default or an Event of Default permitting the enforcement of all or any of the
several remedies provided in this Indenture as herein set forth; PROVIDED,
HOWEVER, that in respect of any such additional covenant, restriction or
condition such supplemental indenture may provide for a particular period of
grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon
such default or may limit the remedies available to the Trustee upon such
default;

          (c) to provide for the issuance under this Indenture of Securities in
coupon form (including Securities registrable as to principal only) and to
provide for exchangeability of such Securities with the Securities issued
hereunder in fully registered form and to make all appropriate changes for such
purpose;

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

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

                                       40
<PAGE>

          (f) to make any change that does not adversely affect in any material
respect the interests of any Holder;

          (g) to provide for the issuance of and establish the form and terms
and conditions of the Securities of any series, to establish the form of any
certifications required to be furnished pursuant to the terms of this Indenture
or any series of Securities or to add to the rights of the Holders of any series
of Securities; or

          (h) to comply with the requirements of the SEC in order to effect or
maintain the qualification of the Indenture under the TIA.

          Upon the request of the Company accompanied by a copy of a Board
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 the certificate, authorizing the execution of any such
amended or supplemental indenture, and upon receipt by the Trustee of the
documents described in Sections 7.02(b), 9.06 and 11.05 hereof, the Trustee
shall join with the Company in the execution of any amended or supplemental
indenture authorized or permitted by the terms of this Indenture and to make any
further appropriate agreements and stipulations that may be therein contained,
but the Trustee shall not be obligated to enter into such amended or
supplemental indenture that affects its own rights, duties or immunities under
this Indenture or otherwise.

          SECTION 9.02. WITH CONSENT OF HOLDERS OF SECURITIES.

          Except as provided below in this Section 9.02, the Company and the
Trustee may amend or supplement this Indenture, or the Securities of any series
may be amended or supplemented, with the consent of the Holders of a majority in
principal amount of the Securities then outstanding of all series affected by
such supplemental indenture (voting as a single class) (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities), and, subject to Sections 6.04 and 6.07
hereof, any existing Default or Event of Default (other than a Default or Event
of Default in the payment of the principal of, premium or interest on the
Securities) or compliance with any provision of this Indenture or the Securities
of such series may be waived with the consent of the Holders of a majority in
principal amount of the Securities then outstanding of all series affected by
such waiver (voting as a single class) (including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer for
the Securities).

          Upon the request of the Company accompanied by a copy of a Board
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 the certificate, authorizing the execution of any such
amended or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Securities
of each such series as aforesaid, and upon receipt by the Trustee of the
documents described in Sections 7.02(b), 9.06 and 11.05 hereof, the Trustee
shall join with the Company in the execution of such amended or supplemental
indenture unless such amended or supplemental indenture affects the Trustee's
own rights, duties or immunities under this Indenture or otherwise, in which
case the

                                       41
<PAGE>

Trustee may in its discretion, but shall not be obligated to, enter into such
amended or supplemental indenture.

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

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

          However, without the consent of each Holder of Securities affected, an
amendment or waiver may not (with respect to any Securities held by a
non-consenting Holder):

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

          (b) reduce the principal of or change the fixed maturity of the
principal of, premium, if any, or mandatory sinking fund obligation, if any,
with respect to any Securities of any series or alter the provisions with
respect to the redemption of the Securities;

          (c) reduce the rate of or change the time for payment of interest,
including default interest, on any Security of any series;

          (d) waive a Default or Event of Default in the payment of principal of
or interest or premium on the Securities of any series (except a rescission of
acceleration of the Securities by the Holders of a majority in aggregate
principal amount of the Securities of one or more affected series and a waiver
of the payment default that resulted from such acceleration);

          (e) make any Security of any series payable in currency other than
that stated in the Securities of such series;

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

          (g) waive a redemption payment with respect to any Security; or

          (h) make any change in Section 6.04 or 6.07 hereof or in the amendment
and waiver provisions of Section 9.01 or this Section 9.02.

          SECTION 9.03. COMPLIANCE WITH TRUST INDENTURE ACT.

          Every amendment or supplement to this Indenture or the Securities
shall be set forth in an amended or supplemental indenture that complies with
the TIA as then in effect.

                                       42
<PAGE>

          SECTION 9.04. REVOCATION AND EFFECT OF CONSENTS.

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

          SECTION 9.05. NOTATION ON OR EXCHANGE OF SECURITIES.

          The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Securities thereafter authenticated. The Company in
exchange for all Securities may issue and the Trustee shall authenticate new
Securities that reflect the amendment, supplement or waiver.

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

          SECTION 9.06. TRUSTEE TO SIGN AMENDMENTS, ETC.

          The Company may not sign an amendment or supplemental indenture until
its Board of Directors approves it. The Trustee shall sign any amendment or
supplemental indenture authorized pursuant to this Article 9 if the amendment or
supplement does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing or refusing to sign such amendment or supplemental indenture, the
Trustee shall be entitled to receive and shall be fully protected in relying
upon, an Officers' Certificate and an Opinion of Counsel as conclusive evidence
that such amendment or supplemental indenture is authorized or permitted by this
Indenture, that it is not inconsistent herewith, and that it will be valid and
binding upon the Company in accordance with its terms.

                                   ARTICLE 10
                               MEETINGS OF HOLDERS

          SECTION 10.01. PURPOSES FOR WHICH MEETING MAY BE CALLED.

          A meeting of Holders of Securities of any series may be called at any
time and from time to time pursuant to this Article 10 to make, give or take any
request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Indenture to be made, given or taken by Holders of
Securities of such series.

          SECTION 10.02. CALL, NOTICE AND PLACE OF MEETINGS.

          (a) The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 10.01, to be held
at such time and at such place in the Borough of Manhattan, The City of New
York, or in such other place as the Trustee shall

                                       43
<PAGE>

determine. Notice of every meeting of Holders of Securities of any series,
setting forth the time and the place of such meeting and in general terms the
action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 11.02, not less than 20 nor more than 180 days prior to the
date fixed for the meeting.

          (b) In case at any time the Company, by or pursuant to a Board
Resolution, or the Holders of at least 25% in principal amount of the
outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 10.01 by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed
notice of such meeting within 20 days after receipt of such request or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in clause (a) of this Section.

          SECTION 10.03. PERSONS ENTITLED TO VOTE AT MEETINGS.

          To be entitled to vote at any meeting of Holders of Securities of any
series, a Person shall be (a) a Holder of one or more outstanding Securities of
such series, or (b) a Person appointed by an instrument in writing as proxy for
a Holder or Holders of one or more outstanding Securities of such series by such
Holder or Holders. The only Persons who shall be entitled to be present or to
speak at any meeting of Holders of Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

          SECTION 10.04. QUORUM; ACTION.

          The Persons entitled to vote a majority in principal amount of the
outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series; PROVIDED, HOWEVER, that if any action is
to be taken at such meeting with respect to a consent or waiver which this
Indenture (or any Board Resolution or indenture supplemental hereto establishing
a series of Securities hereunder) expressly provides may be given by the Holders
of more or less than a majority in principal amount of the outstanding
Securities of a series, the Persons entitled to vote such percentage in
principal amount of the outstanding Securities of such series shall constitute a
quorum. In the absence of a quorum within 30 minutes after the time appointed
for any such meeting, the meeting shall, if convened at the request of Holders
of Securities of such series, be dissolved. In any other case the meeting may be
adjourned for a period of not less than 10 days as determined by the chairman of
the meeting prior to the adjournment of such meeting. In the absence of a quorum
at any such adjourned meeting, such adjourned meeting may be further adjourned
for a period of not less than 10 days as determined by the chairman of the
meeting prior to the adjournment of such adjourned meeting. Notice of the
reconvening of any such adjourned meeting shall be given as provided in Section
10.02(a), except that such notice need be given only once not less than five
days prior to the date on which the meeting is scheduled to be reconvened.
Notice of the reconvening of an adjourned meeting shall state expressly the
percentage, as provided above, of the principal amount of the outstanding
Securities of such series which shall constitute a quorum.

                                       44
<PAGE>

          Except as otherwise provided in Section 6.02 or 9.02 or the last
paragraph of Section 6.01 (or in any Board Resolution or indenture supplemental
hereto establishing a series of Securities hereunder), any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of a
majority in principal amount of the outstanding Securities of that series;
PROVIDED, HOWEVER, that, any resolution with respect to any request, demand,
authorization, direction, notice, consent, waiver or other action which this
Indenture or any supplemental indenture expressly provides may be made, given or
taken by the Holders of a specified percentage in principal amount of the
outstanding Securities of a series may be adopted at a meeting or an adjourned
meeting duly reconvened and at which a quorum is present as aforesaid by the
affirmative vote of the Holders of such specified percentage in principal amount
of the outstanding Securities of such series.

          Any resolution passed or decision taken at any meeting of Holders of
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Securities of such series, whether or not such
Holders were present or represented at the meeting.

          SECTION 10.05. DETERMINATION OF VOTING RIGHTS; CONDUCT AND
                         ADJOURNMENT OF MEETINGS.

          (a) Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities of a series in regard to proof of the holding
of Securities of such series and of the appointment of proxies and in regard to
the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in Section
1.05 and the appointment of any proxy shall be proved in the manner specified in
Section 1.05. Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the
proof specified in Section 1.05 or other proof.

          (b) The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders of Securities as provided in Section 10.02(b), in
which case the Company or the Holders of Securities of the series calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by vote of the Persons entitled to vote at least a majority in principal amount
of the outstanding Securities of such series represented at the meeting. At any
meeting each Holder of a Security of such series or proxy shall be entitled to
one vote for each $1,000 principal amount of the outstanding Securities of such
series held or represented by him; PROVIDED, HOWEVER, that no vote shall be cast
or counted at any meeting in respect of any Security challenged as not
outstanding and ruled by the chairman of the meeting to be not outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a
Security of such series or proxy.

                                       45
<PAGE>

          (c) Any meeting of Holders of Securities of any series duly called
pursuant to Section 10.02 at which a quorum is present may be adjourned from
time to time by Persons entitled to vote at least a majority in principal amount
of the outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

          SECTION 10.06. COUNTING VOTES AND RECORDING ACTION OF
                         MEETINGS.

          The vote upon any resolution submitted to any meeting of Holders of
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the outstanding Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Securities of any
series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 10.02 and, if
applicable, Section 10.04. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

          SECTION 10.07. ARTICLE SUBJECT TO OTHER PROVISIONS.

          Each provision of this Article 10 (whether or not expressly so stated)
is subject to any other provision of this Indenture (or any Board Resolution or
supplemental indenture establishing a series of Securities hereunder) that
provides that Securities of different series constitute a single class.

                                   ARTICLE 11
                                  MISCELLANEOUS

          SECTION 11.01. TRUST INDENTURE ACT CONTROLS.

          This Indenture is subject to the provisions of the TIA that are
required to be part of this Indenture and shall, to the extent applicable, be
governed by such provisions.

          SECTION 11.02. NOTICES.

          Any notice or communication by the Company or the Trustee to the other
is duly given if in writing and delivered in person or mailed by first class
mail (registered or certified, return receipt requested), telecopier or
overnight air courier guaranteeing next day delivery, to the other's address:

                                       46
<PAGE>

         If to the Company:

         The Navigators Group, Inc.
         Reckson Executive Park
         6 International Drive
         Rye Brook, New York  10573
         Telephone: (914) 933-6025
         Facsimile No.: (914) 933-6033
         Attention: Paul J. Malvasio, Executive Vice President
                    and Chief Financial Officer

         If to the Trustee:

         JPMorgan Chase Bank, N.A.
         4 New York Plaza, 15th Floor
         New York, New York  10004
         Facsimile No.: (212) 623-6167
         Attention: Worldwide Securities Services

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

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

          Any notice or communication to a Holder shall be mailed by first class
mail or by overnight courier guaranteeing next day delivery to its address shown
on the register kept by the Registrar. Any notice or communication shall also be
so mailed to any Person described in TIA ss. 313(c), to the extent required by
the TIA. Failure to mail a notice or communication to a Holder or any defect in
it shall not affect its sufficiency with respect to other Holders. 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 notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

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

                                       47
<PAGE>

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

          SECTION 11.03. COMMUNICATION BY HOLDERS OF SECURITIES WITH
                         OTHER HOLDERS OF SECURITIES.

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

          SECTION 11.04. CERTIFICATE AND OPINION AS TO CONDITIONS
                         PRECEDENT.

          Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

          (a) an Officers' Certificate in form reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 11.05 hereof)
stating that, in the opinion of the signers, all conditions precedent and
covenants, if any, provided for in this Indenture relating to the proposed
action have been satisfied; and

          (b) an Opinion of Counsel in form reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 11.05 hereof)
stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been satisfied.

          SECTION 11.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

          Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA ss. 314(a)(4) or Section 4.04) shall comply with the
provisions of TIA ss. 314(e) and shall include:

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

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

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

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

          SECTION 11.06. RULES BY TRUSTEE AND AGENTS.

                                       48
<PAGE>

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

          SECTION 11.07. NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
                         EMPLOYEES AND STOCKHOLDERS.

          No past, present or future director, officer, employee, incorporator
or stockholder of the Company, as such, shall have any liability for any
obligations of the Company under the Securities, this Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Securities by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for issuance of
the Securities.

          SECTION 11.08. GOVERNING LAW.

          THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, EXCEPT AS MAY OTHERWISE BE
REQUIRED BY MANDATORY PROVISIONS OF LAW.

          SECTION 11.09. NO ADVERSE INTERPRETATION OF OTHER
                         AGREEMENTS.

          This Indenture may not be used to interpret any other indenture, loan
or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.

          SECTION 11.10. SUCCESSORS.

          All agreements of the Company in this Indenture and the Securities
shall bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.

          SECTION 11.11. SEVERABILITY.

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

          SECTION 11.12. COUNTERPART ORIGINALS.

          The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement. This Indenture will be effective when each party shall have signed
and delivered (including delivery by facsimile transmission), one or more
counterparts to the other, but it shall not be necessary for both parties to
sign the same counterpart.

          SECTION 11.13. TABLE OF CONTENTS, HEADINGS, ETC.

                                       49
<PAGE>

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

                            [Signature Page Follows]

                                       50
<PAGE>

                                   SIGNATURES

          IN WITNESS WHEREOF, the parties have executed this Senior Indenture as
of the date first written above.

                                 THE NAVIGATORS GROUP, INC.

                                 By: _______________________________
                                 Name:  Paul J. Malvasio
                                 Title: Executive Vice President and Chief
                                          Financial Officer

                                 JPMORGAN CHASE BANK, N.A.,
                                 as Trustee

                                 By: _______________________________
                                 Name:
                                 Title:

                                       51
<PAGE>

                                                                  EXHIBIT A-1

                                 (Face of Note)
                 ___% [Series __] Senior Note due [___________]

                 [INSERT THE GLOBAL NOTE LEGEND, IF APPLICABLE,
               PURSUANT TO THE PROVISIONS OF THE SENIOR INDENTURE]

CUSIP No:______________                   $___________________

          THE NAVIGATORS GROUP, INC. promises to pay to ____________ or
registered assigns, the [principal sum of_____________ Dollars]* [the principal
sum as set forth in the Schedule of Exchanges of Interests in the Global Note
attached hereto]** on_____________.  Interest Payment Dates: ________.
Record Dates: ________.

                                              THE NAVIGATORS GROUP, INC.

                                              By: ______________________________
                                              Name:
                                              Title:

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

                                              JPMORGAN CHASE BANK, N.A.,
                                              as Trustee

                                              By: ______________________________
                                                       Authorized Officer

 *  Insert in certificated Securities
**  Insert in Global Securities

                                       52
<PAGE>

                                 (Back of Note)
                 ___% [Series __] Senior Note due [___________]

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

          1. INTEREST. The Navigators Group, Inc., a Delaware corporation (the
"Company"), promises to pay interest on the principal amount of this Note at the
rate of __% per annum from [___________] until maturity. The Company will pay
interest [semiannually] [quarterly] on _________ and _________ of each year
(each an "Interest Payment Date"). Interest on the Notes will accrue from the
most recent date to which interest has been paid or duly provided for or, if no
interest has been paid or duly provided for, from the date of original issuance
thereof; PROVIDED that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on
the face hereof and the next succeeding Interest Payment Date, interest shall
accrue from such next succeeding Interest Payment Date; PROVIDED, FURTHER, that
the first Interest Payment Date shall be _______________. The Company shall pay
interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue installments of interest (without regard to any
applicable grace periods) from time to time on demand at the same rate to the
extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

          2. METHOD OF PAYMENT. The Company will pay interest on the Notes
(except defaulted interest) to the Persons who are registered Holders of Notes
at the close of business on the ____________ or _____________ next preceding the
Interest Payment Date, even if such Notes are canceled after such record date
and on or before such Interest Payment Date, except as provided in Section 2.14
of the Indenture with respect to defaulted interest. The Notes will be payable
as to principal, premium and interest at the office or agency of the Company
maintained for such purpose within or without the State of New York; PROVIDED
that payment by wire transfer of immediately available funds will be required
with respect to principal of and interest and premium on, all Global Notes and
all other Notes the Holders of which shall have provided wire transfer
instructions to the Company or the Paying Agent at least 15 days prior to the
applicable payment date. Such payment shall be in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts.

          3. PAYING AGENT AND REGISTRAR. Initially, JPMorgan Chase Bank, N.A.,
the Trustee under the Indenture, will act as Paying Agent and Registrar. The
Company may change any Paying Agent or Registrar without notice to any Holder.
The Company may act in any such capacity.

          4. SENIOR INDENTURE. The Company issued the Notes under a Senior
Indenture dated as of ______________ (the "Indenture") between the Company and
the Trustee. The terms of the Notes include those stated in the Indenture and in
[a Supplemental Indenture] [resolutions of [the ________ Committee of] the
Company's Board of Directors] dated, and those terms made part of the Indenture
by reference to the Trust Indenture Act of 1939, as amended (15 U.S.C. ss.ss.
77aaa-77bbbb) (the "TIA"). The Notes are subject to all such terms, and Holders
are referred to the Indenture and the TIA for a statement of such terms. The

                                       53
<PAGE>

Notes are general obligations of the Company. "Notes" means this Note and all
other Notes of the series of which this Note is a part. The Notes are
"Securities" within the meaning of the Indenture, and references in the
Indenture to "Securities" (including terms such as "Global Securities") include
the Notes (and any "Global Notes" as used herein).

         5. OPTIONAL REDEMPTION.

         [(a)] The Notes will not be redeemable at the Company's option prior to
__________. The Notes may be redeemed, in whole or in part, at the option of the
Company on or after ____________, at the redemption prices specified below
(expressed as percentages of the principal amount thereof), in each case,
together with accrued and unpaid interest, hereon to the date of redemption,
upon not less than 30 nor more than 60 days' notice, if redeemed during the
twelve-month period beginning on ____________ of the years indicated below:

                      YEAR               REDEMPTION PRICE
                      ----               ----------------

          [(b) Notwithstanding the foregoing, prior to__________, the Company
may, on any one or more occasions, use the net proceeds of one or more offerings
of its capital stock to redeem up to ___% of the aggregate principal amount of
all Notes that had been issued under the Indenture up to the time of redemption
at a redemption price of __ % of the principal amount of the Notes to be
redeemed, plus accrued and unpaid interest, to the date of redemption; PROVIDED
that, after any such redemption, the aggregate principal amount of the Notes
outstanding (excluding Notes held by the Company and its Subsidiaries) must
equal at least __ % of the principal amount of the Notes that had been issued
under the Indenture up to the time of redemption; and PROVIDED, FURTHER, that
any such redemption shall occur within 90 days of the date of closing of such
offering of capital stock of the Company.]

          6. MANDATORY REDEMPTION. [The Company shall not be required to make
mandatory redemption or sinking fund payments with respect to the Notes.] or
[Describe mandatory redemption or sinking fund provisions.]

          7. NOTICE OF REDEMPTION. Notice of Redemption will be mailed at least
30 days but not more than 60 days before the redemption date to each Holder
whose Notes are to be redeemed at its registered address. Notes in denominations
larger than $1,000 may be redeemed in part but only in whole multiples of
$1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof
called for redemption.

          8. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of __________. The transfer of Notes may be
registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture.
The Company need not transfer or exchange any Note selected for redemption,
except for the unredeemed portion of any Note being redeemed in part. Also, it

                                       54
<PAGE>

need not transfer or exchange any Note for a period of 15 days before the
mailing of a notice of redemption.

          9. PERSONS DEEMED OWNERS. The registered Holder of a Note may be
treated as its owner for all purposes, except as provided in the Indenture.

          10. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions,
the Indenture or the Notes may be amended or supplemented with the consent of
the Holders of a majority in principal amount of the then outstanding Notes and
other series of Securities affected (treating the Notes and such other series as
a single class), and any existing default or compliance with any provision of
the Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes and other series of
Securities affected (treating the Notes and such other series as a single
class). Without the consent of any Holder of a Note, the Indenture or the Notes
may be amended or supplemented to cure any ambiguity, defect or inconsistency,
to provide for uncertificated Notes in addition to or in place of certificated
Notes, to provide for the assumption of the Company's obligations to Holders of
the Notes in case of a merger, consolidation or certain other events, to make
any change that would provide any additional rights or benefits to the Holders
of the Notes or that does not adversely affect in any material respect the
interests under the Indenture of any such Holder, or to comply with the
requirements of the SEC in order to effect or maintain the qualification of the
Indenture under the TIA.

          11. DEFAULTS AND REMEDIES. Each of the following constitutes an Event
of Default: (i) default by the Company in the payment of interest on the Notes
when the same becomes due and payable and default continues for a period of 30
days; (ii) default by the Company in the payment of the principal of or premium,
if any, on the Notes when the same becomes due and payable at maturity, upon
redemption or otherwise; (iii) failure by the Company to comply with Section
5.01 of the Indenture; (iv) failure by the Company for 60 days after notice to
comply with any of its other agreements in the Indenture or the Notes; and (v)
certain events of bankruptcy or insolvency with respect to the Company. If any
Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in principal amount of the then outstanding Notes and other series of
Securities affected (treating the Notes and such other series as a single class)
may declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency with respect to the Company, all outstanding Notes will
become due and payable without further action or notice. Holders of the Notes
may not enforce the Indenture or the Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes and other series of Securities affected (treating the
Notes and such other series as a single class) may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal or interest) if it
determines that withholding notice is in their interest. The Holders of a
majority in aggregate principal amount of the Notes and other series of
Securities affected (treating the Notes and such other series as a single class)
then outstanding by notice to the Trustee may on behalf of the Holders of all of
the Notes waive any existing Default or Event of Default and its consequences
under the Indenture except a continuing Default or Event of Default in the
payment of principal, interest or premium on the Notes. The Company is required

                                       55
<PAGE>

to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

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

          13. NO RECOURSE AGAINST OTHERS. No director, officer, employee,
incorporator or stockholder of the Company shall have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation.
Each Holder of Notes by accepting a Note waives and releases all such liability.
The waiver and release are part of the consideration for the issuance of the
Notes.

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

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

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

          The Company will furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

          The Navigators Group, Inc.
          Reckson Executive Park
          6 International Drive
          Rye Brook, New York 10573
          Telephone: (914) 933-6025
          Facsimile No.: (914) 933-6033
          Attention: Bradley D. Wiley, Senior Vice President,
                     Financial Compliance Officer and Secretary

                                       56
<PAGE>

                                 ASSIGNMENT FORM

                  (To assign this Note, fill in the form below)

(I) or (we) assign and transfer this Note to

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

-------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint ___________________to transfer this Note on the books of
the Company. The agent may substitute another to act for him.

Dated: ______________
                                                  _______________________
                                                         Signature

                                                  _______________________
                                                   Signature Guaranteed

NOTICE: The signature to the foregoing Assignment must correspond to the Name as
written upon the face of this Note in every particular, without alteration or
any change whatsoever.

                                       57
<PAGE>

              SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

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

             Amount          Amount      Principal Amount of
          of decrease     of increase      this Global Note     Signature of
 Date     in Principal    in Principal    following such    authorized officer
  of     Amount of this  Amount of  this     decrease (or   of Trustee or Note
Exchange   Global Note     Global Note       increase)          Custodian
-------- --------------  ---------------  ----------------  ------------------

                                       58

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