Document:

Exhibit 4.1

                                                                  EXECUTION COPY

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                        DIAMOND TRIUMPH AUTO GLASS, INC.,

                                   as Issuer,

                                       AND

                      STATE STREET BANK AND TRUST COMPANY,

                                   as Trustee

                                    INDENTURE

                           Dated as of March 31, 1998

                          9-1/4% Senior Notes Due 2008

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<PAGE>

                  INDENTURE  dated as of March 31, 1998 between  DIAMOND TRIUMPH
AUTO GLASS,  INC., a Delaware  corporation (the "Company"),  as Issuer and STATE
STREET BANK AND TRUST COMPANY, as Trustee (the "Trustee").

                  The Company has duly  authorized  the  creation of an issue of
9-1/4% Senior Notes Due 2008 (the "Initial Notes") and an issue of 9-1/4% Senior
Notes Due 2008,  to be issued in exchange for the Initial  Notes (the  "Exchange
Notes") pursuant to the Registration  Rights Agreement and, to provide therefor,
the Company has duly  authorized  the execution and delivery of this  Indenture.
All things necessary to make the Notes (as defined below),  when duly issued and
executed by the Company and authenticated and delivered hereunder, the valid and
binding  obligations  of the  Company  and to make  this  Indenture  a valid and
binding agreement of the Company have been done.

                  Each party  hereto  agrees as follows  for the benefit of each
other party and for the equal and ratable benefit of the Holders of the Notes:

ARTICLE One

                   DEFINITIONS AND INCORPORATION BY REFERENCE

SECTION 1.01.     Definitions.

                  "Accredited Investor" means Indebtedness of a Person or any of
its Subsidiaries existing at the time such Person become a Restricted Subsidiary
of the Company or at the time it merges or  consolidates  wit the Company or any
of its Restricted  Subsidiaries or is assumed in connection with the acquisition
of assets from such Person and in each case not incurred in connection  with, or
in anticipation or contemplation of, such acquisition,  merger or consolidation.
Such Indebtedness  shall be deemed to have been incurred at the time such Person
becomes a  Restricted  Subsidiary  of the  Company  or at the time it mergers or
consolidates  with the Company or a Restricted  Subsidiary  of the Company or at
the time such  Indebtedness  is assumed in connection  with the  acquisition  of
assets from such Person.

                  "Additional  Interest"  has  the  meaning  set  forth  in  the
Registration Rights Agreement.

                  "Affiliate"  means, with respect to any specified Person,  any
other  Person who  directly or  indirectly  through  one or more  intermediaries
controls,  or is controlled by, or is under common control with,  such specified
person. The term "control" means the possession,  directly or indirectly, of the
power to direct or cause the  direction  of the  management  and  policies  of a
Person,  whether  through the  ownership  of voting  securities,  by contract or
otherwise;   and  the  terms   "controlling"   and  "controlled"  have  meanings
correlative of the foregoing.

                  "Affiliate  Transaction"  has the meaning set forth in Section
4.10.

                  "Agent" means any Registrar, Paying Agent or Co-Registrar.

<PAGE>

                  "Asset  Acquisition" means (a) an Investment by the Company or
any Restricted  Subsidiary of the Company in any other Person  pursuant to which
such Person  shall become a Restricted  Subsidiary  of the Company,  or shall be
merged with or into the Company or any Restricted  Subsidiary of the Company, or
(b) the  acquisition by the Company or any Restricted  Subsidiary of the Company
of the assets of any Person  (other  than a  Subsidiary  of the  Company)  which
constitute  all or  substantially  all of the assets of such Person or comprises
any  division  or line of business  of such  Person or any other  properties  or
assets of such Person other than in the ordinary course of business.

                  "Asset  Sale"  means any direct or  indirect  sale,  issuance,
conveyance,  transfer,  lease (other than  operating  leases entered into in the
ordinary  course of  business),  assignment  or other  transfer for value by the
Company or any of its Restricted  Subsidiaries (including any Sale and Leaseback
Transaction) to any Person other than the Company or a Restricted  Subsidiary of
the Company  (including a Person that is or will become a Restricted  Subsidiary
of the Company  immediately  after such sale,  issuance,  conveyance,  transfer,
lease,  assignment or other  transfer for value) of (a) any Capital Stock of any
Restricted Subsidiary of the Company; or (b) any other property or assets (other
than cash or Cash  Equivalents)  of the Company or any Restricted  Subsidiary of
the Company other than in the ordinary  course of business;  provided,  however,
that  Asset  Sales  shall not  include  (i) a  transaction  or series of related
transactions  for which  the  Company  or its  Restricted  Subsidiaries  receive
aggregate  consideration  of less  than  $500,000  and  (ii)  the  sale,  lease,
conveyance,  disposition  or other transfer of all or  substantially  all of the
assets of the Company as permitted under Article Five.

                  "Authentication  Order" has the  meaning  set forth in Section
2.03.

                  "Bank Facility"  means the credit  agreement dated as of March
31, 1998 among the Company, the lenders named therein and Bankers Trust Company,
as Administrative  Agent, and all amendments thereto,  together with the related
documents thereto (including,  without limitation,  any guarantee agreements and
security  documents),  in each case as such agreements may be amended (including
any amendment and restatement thereof),  supplemented or otherwise modified from
time to time by one or more credit  agreements,  including any agreement  adding
Subsidiaries of the Company as additional borrowers or guarantors  thereunder or
extending the `maturity of,  refinancing,  replacing or otherwise  restructuring
all or any portion of the Indebtedness  under such agreement(s) or any successor
or replacement  agreement(s) and whether by the same or any other agent,  lender
or group of lenders.

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

                  "Board of  Directors"  means,  as to any Person,  the board of
directors of such Person or any duly authorized committee thereof.

                  "Board  Resolution"  means, with respect to any Person, a copy
of a  resolution  certified by the  Secretary or an Assistant  Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and to
be in full force and effect on the date of such certification,  and delivered to
the Trustee.

                                      -2-

<PAGE>

                  "Business Day" means any day other than a Saturday,  Sunday or
any other day on which banking  institutions in the City of New York or the city
in which the  principal  corporate  trust  office of the  Trustee is located are
required or authorized by law or other governmental action to be closed.

                  "Capitalized Lease  Obligations"  means, as to any Person, the
obligations  of such Person under a lease that are required to be classified and
accounted for as capital lease  obligations under GAAP and, for purposes of this
definition,  the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.

                  "Capital Stock" means (i) with respect to any Person that is a
corporation, any and all shares, interests,  participations or other equivalents
(however  designated  and whether or not voting) of corporate  stock,  including
each  class of Common  Stock and  Preferred  Stock of such  Person and (ii) with
respect to any Person  that is not a  corporation,  any and all  partnership  or
other equity or ownership interests of such Person.

                  "Cash  Equivalents"  means (i) marketable  direct  obligations
issued by, or  unconditionally  guaranteed  by, the United States  Government or
issued by any  agency  thereof  and  backed by the full  faith and credit of the
United  States,  in  each  case  maturing  within  one  year  from  the  date of
acquisition  thereof;  (ii) marketable direct obligations issued by any state of
the United States of America or any political  subdivision  of any such state or
any public  instrumentality  thereof  maturing  within one year from the date of
acquisition  thereof  and,  at the time of  acquisition,  having  one of the two
highest ratings  obtainable from either S&P or Moody's;  (iii)  commercial paper
maturing  no more than one year from the date of  creation  thereof  and, at the
time of  acquisition,  having a rating  of at least A-1 from S&P or at least P-1
from Moody's;  (iv)  certificates  of deposit or bankers'  acceptances  maturing
within  one  year  from  the  date of  acquisition  thereof  issued  by any bank
organized under the laws of the United States of America or any state thereof or
the District of Columbia or any U.S. branch of a foreign bank having at the date
of  acquisition  thereof  combined  capital  and surplus of not less than $250.0
million; (v) repurchase  obligations with a term of not more than seven days for
underlying  securities  of the types  described in clause (i) above entered into
with any bank meeting the  qualifications  specified  in clause (iv) above;  and
(vi)  investments  in money market funds which  invest  substantially  all their
assets in securities of the types described in clauses (i) through (v) above.

                  "Change of Control" means the occurrence of one or more of the
following  events:  (i) any sale,  lease,  exchange  or other  transfer  (in one
transaction or a series of related  transactions) of all or substantially all of
the  assets  of  the  Company  if,  immediately  after  giving  effect  to  such
transaction(s),  any Person or group of related  Persons  (other than  Permitted
Holders)  for purposes of Section  13(d) of the Exchange Act (a "Group"),  is or
becomes the beneficial  owner,  directly or indirectly,  of shares  representing
more than 50% of the aggregate  ordinary voting power  represented by the issued
and outstanding  Capital Stock of the transferee or surviving  entity;  (ii) any
Person or Group  (other than  Permitted  Holders)  shall  become the  beneficial
owner,  directly  or  indirectly,  of shares  representing  more than 50% of the
aggregate  ordinary  voting  power  represented  by the issued  and  outstanding
Capital Stock of the Company;  (iii) the  replacement  after the Issue Date of a
majority of the Board of Directors  of the Company

                                      -3-

<PAGE>

over a two-year  period after the Issue Date from the directors who  constituted
the Board of Directors of the Company at the beginning of such period,  and such
replacement shall not have been approved by a vote of at least a majority of the
Board of  Directors  of the Company then still in office who either were members
of such Board of Directors at the beginning of such period or whose  election as
a member of such Board of Directors  was  previously  so  approved;  or (iv) the
Company  consolidates  with, or merges with or into,  another Person,  or sells,
assigns,   conveys,   transfers,   leases  or  otherwise   disposes  of  all  or
substantially all of its assets to any Person, or any Person  consolidates with,
or merges with or into, the Company, in any such event pursuant to a transaction
in which the shares representing the aggregate ordinary voting power represented
by the issued and outstanding  Capital Stock of the Company is converted into or
exchanged  for  cash,  securities  or other  property,  other  than (A) any such
transaction  where  (1) the  shares  representing  the  issued  and  outstanding
ordinary voting Capital Stock of the Company are converted into or exchanged for
(I) ordinary voting Capital Stock (other than Disqualified Capital Stock) of the
surviving  or  transferee  corporation  and/or (II) cash,  securities  and other
property in an amount which could be paid by the Company as a Restricted Payment
under this Indenture and (2) the "beneficial  owners" of the shares representing
the  issued  and  outstanding  ordinary  voting  Capital  Stock  of the  Company
immediately  prior to such  transaction own,  directly or indirectly,  shares of
Capital  Stock  representing  not less than a  majority  of voting  power of all
issued and  outstanding  shares of Capital  Stock of the surviving or transferee
corporation  immediately after such transaction or (B) any such transaction as a
result of which the Permitted  Holders own shares of Capital Stock  representing
more  than 50% of the  voting  power of all  issued  and  outstanding  shares of
Capital Stock of the surviving or transferee corporation  immediately after such
transaction.

                  "Change of Control Offer" has the meaning set forth in Section
4.14.

                  "Change of Control  Payment Date" has the meaning set forth in
Section 4.14.

                  "Commission" means the Securities and Exchange Commission,  or
any successor  agency thereto with respect to the regulation or  registration of
securities.

                  "Common  Stock"  of any  Person  means  any  and  all  shares,
interests or other  participations in, and other equivalents (however designated
and  whether  voting or  non-voting)  of such  Person's  common  stock,  whether
outstanding  on the Issue Date or issued  after the Issue  Date,  and  includes,
without limitation, all series and classes of such common stock.

                  "Company" means the party named as such in the recitals hereto
until a successor replaces it pursuant to this Indenture.

                  "Consolidated  EBITDA" means, for any period, the sum (without
duplication) of (i) Consolidated Net Income and (ii) to the extent  Consolidated
Net Income has been reduced thereby, (A) all income taxes of the Company and its
Restricted Subsidiaries paid or accrued in accordance with GAAP for such period,
(B) Consolidated  Interest Expense,  (C) Consolidated  Non-cash Charges less any
non-cash items increasing Consolidated Net Income for such period, (D) executive
compensation  expense  not to exceed  $5.0  million  incurred in the fiscal year
ended  December 31, 1997 and (E)  write-offs in the fiscal year ending  December
31, 1998 of amounts,  not to exceed $3.0  million,  due from a company  owned by
Kenneth Levine and Richard Rutta,

                                      -4-

<PAGE>

all as determined  on a  consolidated  basis for the Company and its  Restricted
Subsidiaries in accordance with GAAP.

                  "Consolidated  Fixed Charge Coverage Ratio" means the ratio of
Consolidated  EBITDA  during the four full fiscal  quarters  (the "Four  Quarter
Period")  ending on or prior to the date of the  transaction  giving rise to the
need to calculate the Consolidated Fixed Charge Coverage Ratio (the "Transaction
Date") to Consolidated Fixed Charges for the Four Quarter Period. In addition to
and without  limitation  of the  foregoing,  for  purposes  of this  definition,
"Consolidated EBITDA" and "Consolidated Fixed Charges" shall be calculated after
giving effect on a pro forma basis for the period of such calculation to (i) the
incurrence  or  repayment  of  any  Indebtedness  of the  Company  or any of its
Restricted  Subsidiaries  (and the  application of the proceeds  thereof) giving
rise to the need to make such  calculation  and any  incurrence  or repayment of
other Indebtedness (and the application of the proceeds thereof), other than the
incurrence or repayment of  Indebtedness  in the ordinary course of business for
working  capital  purposes  pursuant to working  capital  facilities,  occurring
during the Four Quarter Period or at any time  subsequent to the last day of the
Four  Quarter  Period  and on or  prior  to the  Transaction  Date,  as if  such
incurrence or repayment, as the case may be (and the application of the proceeds
thereof),  occurred  on the first day of the Four  Quarter  Period  and (ii) any
Asset Sales or Asset  Acquisitions  (including,  without  limitation,  any Asset
Acquisition  giving rise to the need to make such calculation as a result of the
Company or one of its Restricted  Subsidiaries (including any Person who becomes
a  Restricted  Subsidiary  as a  result  of the  Asset  Acquisition)  incurring,
assuming or  otherwise  being liable for Acquired  Indebtedness  and  including,
without  limitation,  by giving  pro forma  effect  to any  Consolidated  EBITDA
(provided  that such pro forma  Consolidated  EBITDA  shall be  calculated  in a
manner  consistent  with the exclusions in the definition of  "Consolidated  Net
Income")  attributable  to the  assets  which  are  the  subject  of  the  Asset
Acquisition or Asset Sale during the Four Quarter Period)  occurring  during the
Four  Quarter  Period  or at any  time  subsequent  to the  last day of the Four
Quarter Period and on or prior to the Transaction Date, as if such Asset Sale or
Asset  Acquisition  (including the  incurrence,  assumption or liability for any
such  Acquired  Indebtedness)  occurred  on the  first  day of the Four  Quarter
Period.  If  the  Company  or any of its  Restricted  Subsidiaries  directly  or
indirectly  guarantees  Indebtedness of a third Person,  the preceding  sentence
shall give effect to the incurrence of such  guaranteed  Indebtedness  as if the
Company or any of its Restricted Subsidiaries had directly incurred or otherwise
assumed such guaranteed Indebtedness.  Furthermore, in calculating "Consolidated
Fixed  Charges"  for  purposes  of  determining  the  denominator  (but  not the
numerator) of this  "Consolidated  Fixed Charge Coverage Ratio," (1) interest on
outstanding Indebtedness determined on a fluctuating basis as of the Transaction
Date and which will continue to be so determined  thereafter  shall be deemed to
have  accrued at a fixed rate per annum  equal to the rate of  interest  on such
Indebtedness  in  effect  on  the  Transaction  Date;  (2)  if  interest  on any
Indebtedness  actually  incurred  on the  Transaction  Date  may  optionally  be
determined at an interest rate based upon a factor of a prime or similar rate, a
eurocurrency  interbank  offered rate, or other rates, then the interest rate in
effect on the Transaction  Date will be deemed to have been in effect during the
Four  Quarter  Period;  and (3)  notwithstanding  clause (1) above,  interest on
Indebtedness  determined on a fluctuating  basis, to the extent such interest is
covered by agreements relating to Interest Swap Obligations,  shall be deemed to
accrue at the rate per annum  resulting  after giving effect to the operation of
such agreements.

                                      -5-

<PAGE>

                  "Consolidated  Fixed Charges" means, for any period,  the sum,
without  duplication,  of  (i)  Consolidated  Interest  Expense  (excluding  any
amortization or write off of deferred financing costs), plus (ii) the product of
(x) the amount of all dividend  payments on any series of Preferred Stock of the
Company (other than dividends paid in Qualified Capital Stock) paid,  accrued or
scheduled  to be paid or accrued  during such period  times (y) a fraction,  the
numerator  of which is one and the  denominator  of which is one  minus the then
current effective consolidated federal, state and local tax rate of the Company,
expressed as a decimal.

                  "Consolidated Interest Expense" means, for any period, the sum
of,  without  duplication:  (i) the  aggregate  of the  interest  expense of the
Company  and  its  Restricted  Subsidiaries  for  such  period  determined  on a
consolidated basis in accordance with GAAP, including,  without limitation,  (a)
any  amortization of debt discount and any amortization or write off of deferred
financing  costs,  (b) the net costs under  Interest Swap  Obligations,  (c) all
capitalized  interest  and (d) the  interest  portion  of any  deferred  payment
obligation;  and (ii) the interest  component of Capitalized  Lease  Obligations
paid,  accrued  and/or  scheduled  to be paid or accrued by the  Company and its
Restricted Subsidiaries during such period as determined on a consolidated basis
in accordance with GAAP.

                  "Consolidated Net Income" means, for any period, the aggregate
net income (or loss) of the Company  and its  Restricted  Subsidiaries  for such
period on a consolidated  basis,  determined in accordance  with GAAP;  provided
that there shall be excluded  therefrom (a) net after-tax gains from Asset Sales
or abandonments or reserves relating thereto, (b) net after-tax items classified
as  extraordinary  or  nonrecurring  gains or losses,  (c) the net income of any
Person  acquired in a "pooling of  interests"  transaction  accrued prior to the
date  it  becomes  a  Restricted  Subsidiary  of the  Company  or is  merged  or
consolidated with the Company or any Restricted  Subsidiary of the Company,  (d)
the net income (but not loss) of any Restricted Subsidiary of the Company to the
extent  that the  declaration  of  dividends  or similar  distributions  by that
Subsidiary  of that  income  is  restricted  by  contract,  operation  of law or
otherwise,  (e) the net income of any Person, other than a Restricted Subsidiary
of the Company,  except to the extent of cash dividends or distributions paid to
the Company or to a Restricted Subsidiary of the Company by such Person, (f) any
restoration  to income of any  contingency  reserve,  except to the extent  that
provision for such reserve was made out of  Consolidated  Net Income  accrued at
any time  following  the  Issue  Date and (g)  income  or loss  attributable  to
discontinued operations (including,  without limitation,  operations disposed of
during  such  period  whether  or  not  such   operations   were  classified  as
discontinued).

                  "Consolidated  Net Worth" of any Person means the consolidated
stockholders'  equity of such  Person,  determined  on a  consolidated  basis in
accordance  with  GAAP,  less  (without  duplication)  amounts  attributable  to
Disqualified Capital Stock of such Person.

                  "Consolidated  Non-cash  Charges" means,  for any period,  the
aggregate depreciation,  amortization and other non-cash expenses of the Company
and its Restricted  Subsidiaries reducing Consolidated Net Income of the Company
and its Restricted  Subsidiaries  for such period,  determined on a consolidated
basis in  accordance  with GAAP  (excluding  any such  charges  constituting  an
extraordinary  item or loss or any such charge which requires an accrual of or a
reserve for cash charges for any future period).

                                      -6-

<PAGE>

                  "Corporate  Trust Office"  means the  principal  office of the
Trustee where it conducts its corporate trust  administrative  functions,  which
office is currently  located at Goodwin Square,  225 Asylum Street,  23rd Floor,
Hartford, CT 06103.

                  "Covenant  Defeasance"  has the  meaning  set forth in Section
8.01.

                  "Custodian" means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law.

                  "Default"  means an event or condition the occurrence of which
is, or with the lapse of time or the giving of notice or both would be, an Event
of Default.

                  "Defaulted  Interest"  has the  meaning  set forth in  Section
2.13.

                  "Depository"  means,  with  respect to the Notes issued in the
form of one or more Global Notes, The Depository Trust Company or another Person
designated  as  Depository  by the  Company,  which  must be a  clearing  agency
registered under the Exchange Act.

                  "Disqualified Capital Stock" means that portion of any Capital
Stock  which,  by its terms (or by the terms of any  security  into  which it is
convertible  or for  which  it is  exchangeable  at  the  option  of the  holder
thereof),  or  upon  the  happening  of any  event,  matures  or is  mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the sole option of the holder thereof,  in any case, on or prior to the final
maturity date of the Notes. Notwithstanding the foregoing, in no event shall the
Senior Preferred Stock be deemed to be Disqualified Capital Stock.

                  "Employment Agreements" means the employment agreements, dated
as of the Issue Date,  between the Company and each of Kenneth  Levine,  Richard
Rutta,  Norman Harris and Michael Sumsky,  as any such agreement may be extended
or amended from time to time to the extent that any such  extension or amendment
does not have the effect of  increasing  in any  material  respect the  payments
permitted  to be made under such  agreements  pursuant  to clause (i) of Section
4.12(b).

                  "Event of Default" has the meaning set forth in Section 6.01.

                  "Exchange Act" means the  Securities  Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.

                  "Exchange  Notes"  has the  meaning  assigned  in the  recital
hereto.

                  "Exchange  Offer  Registration  Statement" has the meaning set
forth in the Registration Rights Agreement.

                  "fair  market  value"  means,  with  respect  to any  asset or
property,  the price which could be  negotiated in an  arm's-length  free market
transaction,  for cash,  between a willing  seller and a willing and able buyer,
neither  of  whom  is  under  undue  pressure  or  compulsion  to  complete  the
transaction.  Fair market value shall be determined by the Board of Directors of
the

                                      -7-

<PAGE>

Company  acting  reasonably  and in good faith and shall be evidenced by a Board
Resolution of the Board of Directors of the Company delivered to the Trustee.

                  "Final Maturity Date" means April 1, 2008.

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

                  "GEI" means Green Equity Investors II, L.P.

                  "Global Note" means a note  evidencing all or a portion of the
Notes issued to the  Depository or its nominee in  accordance  with Section 2.01
and bearing the legend set forth in Section 2.02(b).

                  "Guarantees"  means the future guarantees of the Notes and the
Obligations  of the  Company  under the  Indenture  provided  by any  Subsidiary
Guarantors pursuant to Section 4.17 and Article Ten.

                  "incur" has the meaning set forth in Section 4.04.

                  "Indebtedness"  means  with  respect  to any  Person,  without
duplication,  (i) the principal  amount (or, if less, the accreted value) of all
obligations of such Person for borrowed money, (ii) the principal amount (or, if
less, the accreted value) of all obligations of such Person  evidenced by bonds,
debentures,  notes or other similar  instruments,  (iii) all  Capitalized  Lease
Obligations  of such  Person,  (iv) all  obligations  of such  Person  issued or
assumed  as the  deferred  purchase  price of  property,  all  conditional  sale
obligations  and all  obligations  under  any  title  retention  agreement  (but
excluding trade accounts  payable and other accrued  liabilities  arising in the
ordinary course of business that are not overdue by 90 days or more or are being
contested  in good faith by  appropriate  proceedings  promptly  instituted  and
diligently conducted),  (v) all obligations of such Person for the reimbursement
of any obligor on any letter of credit,  banker's  acceptance or similar  credit
transaction,  (vi) guarantees and other contingent obligations of such Person in
respect of Indebtedness  referred to in clauses (i) through (v) above and clause
(viii) below, (vii) all Indebtedness of any other Person of the type referred to
in clauses  (i) through  (vi) which are  secured by any lien on any  property or
asset of such  Person,  the amount of such  Indebtedness  being deemed to be the
lesser of the fair market  value of such  property or asset or the amount of the
Indebtedness so secured,  (viii) all obligations  under currency  agreements and
interest swap agreements of such Person and (ix) all Disqualified  Capital Stock
issued by such  Person  with the  amount  of  Indebtedness  represented  by such
Disqualified  Capital  Stock  being  equal to the  greater of its  voluntary  or
involuntary  liquidation  preference and its maximum fixed repurchase price, but
excluding  accrued  dividends,  if any. For purposes hereof,  the "maximum fixed
repurchase price" of any Disqualified  Capital Stock which does not have a fixed
repurchase  price  shall be  calculated  in  accordance  with the  terms of such
Disqualified  Capital Stock as if such Disqualified Capital Stock were purchased
on any date on which Indebtedness shall be

                                      -8-

<PAGE>

required to be determined pursuant to this Indenture, and if such price is based
upon, or measured by, the fair market value of such Disqualified  Capital Stock,
such fair market value shall be determined  reasonably  and in good faith by the
Board of Directors of the issuer of such Disqualified Capital Stock.

                  "Indenture"  means this Indenture,  as amended or supplemented
from time to time in accordance with the terms hereof.

                  "Independent  Financial  Advisor"  means an  accounting  firm,
appraisal  firm,  investment  banking firm or consultant to Persons engaged in a
Related Business,  in each case, of nationally  recognized  standing that is, in
the judgment of the Company's Board of Directors,  qualified to perform the task
for which it has been engaged.

                  "Initial  Notes"  has the  meaning  set forth in the  recitals
hereto.

                  "Initial  Purchasers"  means First Union  Capital  Markets,  a
division  of Wheat First  Securities,  Inc.,  BT Alex.  Brown  Incorporated  and
Donaldson, Lufkin & Jenrette Securities Corporation.

                  "Interest  Payment  Date"  means  the  stated  due  date of an
installment of interest on the Notes.

                  "Interest  Swap  Obligations"  means  the  obligations  of any
Person  pursuant to any arrangement  with any other Person whereby,  directly or
indirectly,  such  Person is  entitled  to  receive  from time to time  periodic
payments calculated by applying either a floating or a fixed rate of interest on
a stated  notional  amount in exchange for periodic  payments made by such other
Person calculated by applying a fixed or a floating rate of interest on the same
notional  amount and shall  include,  without  limitation,  interest rate swaps,
caps, floors, collars and similar agreements.

                  "Investment"  means, with respect to any Person, any direct or
indirect loan or other extension of credit  (including,  without  limitation,  a
guarantee) or capital contribution to (by means of any transfer of cash or other
property to others or any payment  for  property or services  for the account or
use of others),  or any  purchase or  acquisition  by such Person of any Capital
Stock, bonds, notes, debentures or other securities or evidences of Indebtedness
issued by,  any  Person.  "Investment"  shall  exclude  accounts  receivable  or
deposits  arising in the ordinary  course of  business.  For purposes of Section
4.03,  "Investment"  shall include and be valued at the fair market value of the
net assets of any  Restricted  Subsidiary  of the  Company at the time that such
Restricted Subsidiary is designated an Unrestricted  Subsidiary.  If the Company
or any Restricted  Subsidiary of the Company sells or otherwise  disposes of any
Common Stock of any direct or indirect Restricted Subsidiary of the Company such
that,  after  giving  effect to any such sale or  disposition,  such  Restricted
Subsidiary  would cease to be a Subsidiary of the Company,  the Company shall be
deemed to have made an  Investment  on the date of any such sale or  disposition
equal to the fair market value of the Common Stock of such Restricted Subsidiary
not sold or disposed of.

                  "Issue  Date"  means  the  date of  original  issuance  of the
Initial Notes.

                                      -9-

<PAGE>

                  "Legal Defeasance" has the meaning set forth in Section 8.01.

                  "Lien"  means  any  lien,  mortgage,  deed of  trust,  pledge,
security interest,  charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and any
agreement to give any security interest).

                  "Management  Services Agreement" means the Management Services
Agreement,  dated as of the Issue Date,  between the Company and Leonard Green &
Partners, L.P., substantially as in effect on the Issue Date.

                  "Management  Subscription  and  Stockholders  Agreements" mean
each of the Management Subscription and Stockholders Agreements, dated as of the
Issue Date,  among the Company,  Green Equity Investors II, L.P. and an employee
or director of the Company and/or one or more of its  Subsidiaries,  as any such
agreement may be amended from time to time.

                  "Moody's"  means  Moody's  Investors  Service,  Inc.  and  its
successors.

                  "Net Cash Proceeds" means, with respect to any Asset Sale, the
proceeds in the form of cash or Cash Equivalents  including  payments in respect
of  deferred  payment  obligations  when  received  in the  form of cash or Cash
Equivalents  (other than the portion of any such deferred  payment  constituting
interest)  received by the Company or any of its  Restricted  Subsidiaries  from
such Asset Sale net of (a) reasonable  out-of-pocket  expenses and fees relating
to such  Asset  Sale  (including,  without  limitation,  legal,  accounting  and
investment banking fees and sales commissions),  (b) taxes paid or payable after
taking into account any reduction in consolidated tax liability due to available
tax credits or  deductions  and any tax sharing  arrangements,  (c) repayment of
Indebtedness  that is required to be repaid in connection  with such Asset Sale,
(d)  appropriate  amounts  to be  provided  by the  Company  or  any  Restricted
Subsidiary,  as the case may be, as a reserve,  in accordance with GAAP, against
any  liabilities  associated with such Asset Sale and retained by the Company or
any Restricted Subsidiary, as the case may be, after such Asset Sale, including,
without  limitation,  pension  and other  post-employment  benefit  liabilities,
liabilities   related  to  environmental   matters  and  liabilities  under  any
indemnification  obligations  associated  with  such  Asset  Sale,  and (e) that
portion of the cash or Cash  Equivalents  attributable to the Capital Stock of a
Restricted  Subsidiary which is not a Wholly Owned Restricted  Subsidiary of the
Company held, directly or indirectly,  by any Person which is not the Company or
a Wholly Owned Restricted Subsidiary of the Company.

                  "Net  Proceeds  Offer"  has the  meaning  set forth in Section
4.15.

                  "Net  Proceeds  Offer  Amount"  has the  meaning  set forth in
Section 4.15.

                  "Net Proceeds Offer Payment Date" has the meaning set forth in
Section 4.15.

                  "Net Proceeds Offer Trigger Date" has the meaning set forth in
Section 4.15.

                  "Notes" means the Initial  Notes,  the Exchange  Notes and any
notes issued  pursuant to Section 2.03,  treated as a single class of notes,  as
amended or  supplemented  from time to time in accordance with the terms of this
Indenture.

                                      -10-

<PAGE>

                  "Noteholder" or "Holder" means the Person in whose name a Note
is registered on the Registrar's books.

                  "Obligations" has the meaning set forth in Section 10.01.

                  "Offering   Memorandum"   means  the   Confidential   Offering
Memorandum of the Company dated March 26, 1998.

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

                  "Officers'  Certificate"  means a  certificate  signed  by two
Officers of the Company.

                  "Offshore  Global  Notes" has the meaning set forth in Section
2.01.

                  "Offshore Physical Notes" has the meaning set forth in Section
2.01.

                  "Offshore  Notes  Exchange  Date" has the meaning set forth in
Section 2.01.

                  "Opinion  of  Counsel"  means a  written  opinion  from  legal
counsel which opinion is reasonably  acceptable to the Trustee and which counsel
may be counsel to or an employee of the Company or counsel to the Trustee.

                  "Participants" has the meaning set forth in Section 2.16.

                  "Permanent  Offshore Global Note" has the meaning set forth in
Section 2.01.

                  "Paving Agent" has the meaning set forth in Section 2.04.

                  "Permitted Holders" means Green Equity Investors II, L.P., its
Affiliates and Related Parties and senior management of the Company on the Issue
Date.

                  "Permitted  Indebtedness" means, without duplication,  each of
the following:

                                      -11-

<PAGE>

                  (i)  Indebtedness  in an  aggregate  principal  amount  not to
           exceed  $100.0  million  under the  Notes,  the  Guarantees  and this
           Indenture  and any  replacement  Notes  therefor  issued  pursuant to
           Section 2.08;

                  (ii) Indebtedness of the Company and the Subsidiary Guarantors
           incurred under the Bank Facility in an aggregate  principal amount at
           any time  outstanding  not to exceed $35.0 million less the amount of
           any  permanent  prepayments  of  Indebtedness  made with the Net Cash
           Proceeds of an Asset Sale  pursuant to clause  (iii) (A) of the first
           sentence of Section 4.15.

                  (iii) other  Indebtedness  of the  Company and the  Subsidiary
           Guarantors outstanding on the Issue Date;

                  (iv)  Interest  Swap   Obligations  of  the  Company  covering
           Indebtedness  of the Company or any of its  Restricted  .Subsidiaries
           and Interest Swap  Obligations  of any  Restricted  Subsidiary of the
           Company   covering   Indebtedness  of  such  Restricted   Subsidiary;
           provided,  however,  that such Interest Swap  Obligations are entered
           into to protect  the  Company and its  Restricted  Subsidiaries  from
           fluctuations in interest rates on Indebtedness incurred in accordance
           with this  Indenture to the extent the notional  principal  amount of
           such Interest Swap Obligation does not exceed the principal amount of
           the Indebtedness to which such Interest Swap Obligation relates;

                  (v) Indebtedness of a Restricted  Subsidiary of the Company to
           the Company or to a Wholly Owned Restricted Subsidiary of the Company
           for so long as such  Indebtedness  is held by the Company or a Wholly
           Owned Restricted  Subsidiary of the Company,  in each case subject to
           no Lien securing  Indebtedness  other than Permitted Liens;  provided
           that if as of any date any Person  other than the Company or a Wholly
           Owned  Restricted  Subsidiary  of the Company  owns or holds any such
           Indebtedness or holds a Lien in respect of such Indebtedness securing
           Indebtedness  other than Permitted  Liens,  such date shall be deemed
           the   incurrence   of   Indebtedness   not   constituting   Permitted
           Indebtedness by the issuer of such Indebtedness;

                  (vi)  Indebtedness of the Company to a Wholly Owned Restricted
           Subsidiary of the Company for so long as such Indebtedness is held by
           a Wholly Owned  Restricted  Subsidiary  of the Company,  in each case
           subject to no Lien securing  Indebtedness other than Permitted Liens;
           provided  that if as of any date any Person other than a Wholly Owned
           Restricted   Subsidiary  of  the  Company  owns  or  holds  any  such
           Indebtedness  or any  Person  other  than a Wholly  Owned  Restricted
           Subsidiary   of  the  Company   holds  a  Lien  in  respect  of  such
           Indebtedness  securing  Indebtedness other than Permitted Liens, such
           date shall be deemed the incurrence of Indebtedness  not constituting
           Permitted Indebtedness by the Company;

                  (vii)  Indebtedness  of the  Company or any of its  Restricted
           Subsidiaries  arising from the honoring by a bank or other  financial
           institution  of a check,  draft or similar  instrument  inadvertently
           (except  in  the  case  of   daylight   overdrafts)   drawn   against
           insufficient  funds in the  ordinary  course of  business;  provided,
           however,  that such Indebtedness is extinguished  within two Business
           Days of incurrence;

                                      -12-

<PAGE>

                  (viii)  Indebtedness  of the Company or any of its  Restricted
           Subsidiaries  represented by letters of credit for the account of the
           Company or any Restricted Subsidiary, as the case may be, in order to
           provide   security  for   workers'   compensation   claims,   payment
           obligations in connection with self-insurance or similar requirements
           in the ordinary course of business;

                  (ix) Refinancing Indebtedness;

                  (x)   Capitalized   Lease   Obligations   and  Purchase  Money
           Indebtedness of the Company or any of the Subsidiary Guarantors in an
           aggregate principal amount not to exceed $5.0 million at any one time
           outstanding; and

                  (xi)  additional  Indebtedness  of the  Company  or any of its
           Restricted  Subsidiaries  in an  aggregate  principal  amount  not to
           exceed $10.0 million at any one time  outstanding  (which amount may,
           but  need  not,  be  incurred  in  whole  or in part  under  the Bank
           Facility);  provided,  however,  that the  Indebtedness of Restricted
           Subsidiaries  that are not  Subsidiary  Guarantors  permitted by this
           clause  (xi)  shall  not  exceed   $2.0   million  at  any  one  time
           outstanding.

                  "Permitted  Investments"  means (i) Investments by the Company
or any  Restricted  Subsidiary  of the  Company  in any  Person  that is or will
become,  or  Investments  by the  Company or any  Restricted  Subsidiary  of the
Company which result in any Person becoming, in any case, immediately after such
Investment,  a  Restricted  Subsidiary  of the  Company  or that  will  merge or
consolidate  into the Company or a Restricted  Subsidiary  of the Company;  (ii)
Investments  by any Restricted  Subsidiary of the Company in the Company;  (iii)
Investments in cash and Cash  Equivalents;  (iv) Investments  existing as of the
Issue Date and any extension,  modification  or renewal of such  Investment (but
not  increases  thereof,  other than as a result of the accrual or  accretion of
interest or original issue discount  pursuant to the terms of such  Investment);
(v)  transactions or arrangements  with officers,  directors or employees of the
Company or any Subsidiary of the Company  entered into in the ordinary course of
business  (including  compensation  or employee  benefit  arrangements  with any
officer or director of the Company or any  Subsidiary  of the Company  permitted
under Section 4.10); (vi) Investments  received as a result of the bankruptcy or
reorganization  of any Person or taken in settlement  of or other  resolution of
claims or disputes,  and, in each case,  extensions,  modifications and renewals
thereof; (vii) Investments made by the Company or its Restricted Subsidiaries as
a result of  consideration  received  in  connection  with an Asset Sale made in
compliance  with Section 4.15 or any  exchange of any such  Investment  with the
issuer thereof,  and extensions,  modifications and renewals thereof; and (viii)
other Investments not to exceed $2.0 million at any one time outstanding.

                  "Permitted Liens" means the following types of Liens:

                  (i)  Liens  securing  Indebtedness  incurred  under  the  Bank
           Facility or pursuant to clause (xi) of the  definition  of  Permitted
           Indebtedness;

                                      -13-

<PAGE>

                  (ii) Liens  securing  letters of credit issued in the ordinary
           course of business  consistent  with past practice in connection with
           workers'  compensation,  unemployment  insurance  and other  types of
           social security;

                  (iii) any interest or title of a lessor under any  Capitalized
           Lease  Obligation;  provided  that  such  Liens do not  extend to any
           property  or assets  which is not  leased  property  subject  to such
           Capitalized Lease Obligation;

                  (iv) Liens securing Purchase Money Indebtedness of the Company
           or any Restricted Subsidiary of the Company; provided,  however, that
           (A) the Purchase Money Indebtedness shall not exceed the cost of such
           property or assets and shall not be secured by any property or assets
           of the Company or any Restricted Subsidiary of the Company other than
           the property and assets so acquired  and (B) the Lien  securing  such
           Indebtedness shall be created within 90 days of such acquisition;

                  (v) Liens upon specific  items of inventory or other goods and
           proceeds of any Person securing such Person's  obligations in respect
           of  bankers'  acceptances  issued or created  for the account of such
           Person to  facilitate  the  purchase,  shipment  or  storage  of such
           inventory or other goods;

                  (vi) Liens securing reimbursement  obligations with respect to
           commercial  letters  of credit  which  encumber  documents  and other
           property relating to such letters of credit and products and proceeds
           thereof;

                  (vii) Liens securing  Interest Swap Obligations which Interest
           Swap Obligations  relate to Indebtedness that is otherwise  permitted
           under this Indenture;

                  (viii)  Liens  securing  Acquired   Indebtedness  incurred  in
           accordance  with Section  4.04;  provided that (A) such Liens secured
           such Acquired Indebtedness at the time of and prior to the incurrence
           of  such  Acquired  Indebtedness  by  the  Company  or  a  Restricted
           Subsidiary of the Company and were not granted in connection with, or
           in anticipation  of, the incurrence of such Acquired  Indebtedness by
           the Company or a  Restricted  Subsidiary  of the Company and (B) such
           Liens do not extend to or cover any property or assets of the Company
           or of any of its Restricted  Subsidiaries  other than the property or
           assets that secured the Acquired  Indebtedness prior to the time such
           Indebtedness  became  Acquired  Indebtedness  of  the  Company  or  a
           Restricted  Subsidiary  of the  Company and are not  materially  more
           favorable  to  the  lienholders  than  those  securing  the  Acquired
           Indebtedness prior to the incurrence of such Acquired Indebtedness by
           the Company or a Restricted Subsidiary of the Company;

                  (ix) Liens created under this Indenture;

                  (x)  Liens  of  the  Company  or  a  Wholly  Owned  Restricted
           Subsidiary of the Company on assets of any  Restricted  Subsidiary of
           the Company; and

                  (xi) Liens securing Refinancing Indebtedness which is incurred
           to  Refinance  any  Indebtedness  which  has been  secured  by a Lien
           permitted  under  this  Indenture  and  which  has been  incurred  in
           accordance with the provisions of this Indenture;  provided,

                                      -14-

<PAGE>

           however, that such Liens (X) are not materially less favorable to the
           Holders and are not materially more favorable to the lienholders with
           respect to such  Liens than the Liens in respect of the  Indebtedness
           being  Refinanced  and (Y) do not extend to or cover any  property or
           assets of the Company or any of its  Subsidiaries  not  securing  the
           indebtedness so Refinanced.

                  "Person"  means  an  individual,   partnership,   corporation,
limited liability company, unincorporated organization,  trust or joint venture,
or a governmental agency or political subdivision thereof.

                  "Physical Notes" has the meaning set forth in Section 2.01.

                  "Preferred  Stock" of any Person  means any  Capital  Stock of
such Person that has  preferential  rights over any other  Capital Stock of such
Person with respect to dividends or redemptions or upon liquidation.

                  "Private  Placement  Legend"  has the  meaning  set  forth  in
Section 2.02.

                  "pro forma"  means,  with respect to any  calculation  made or
required to be made pursuant to the terms of this  Indenture,  a calculation  in
accordance  with  Article  11 of  Regulation  S-X  under the  Securities  Act as
interpreted  by the  Company's  Board  of  Directors  in  consultation  with its
independent certified public accountants.

                  "Public Equity Offering" means an underwritten public offering
of Qualified  Capital Stock of the Company pursuant to a registration  statement
filed with the Commission in accordance with the Securities Act or any successor
statute.

                  "Purchase  Agreement" means the Note Purchase  Agreement dated
as of March 26, 1998 by and among the Company and the Initial Purchasers.

                  "Purchase  Money   Indebtedness"  means  Indebtedness  of  the
Company and its Restricted Subsidiaries incurred in connection with the purchase
of businesses  (including  Capital Stock of  businesses  primarily  engaged in a
Related Business),  properties or assets for the business of the Company and its
Restricted Subsidiaries and any Refinancing thereof.

                  "Qualified Capital Stock" means the Senior Preferred Stock and
any other Capital Stock that is not Disqualified Capital Stock.

                  "Qualified  Institutional  Buyer" or "QIB" means a  "qualified
institutional  buyer" as that term is defined in Rule 144A under the  Securities
Act.

                  "Record Date" means the  applicable  Record Date  specified in
the Notes; provided that if any such date is not a Business Day, the Record Date
shall be the  first  day  immediately  preceding  such  specified  day that is a
Business Day.

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

                                      -15-

<PAGE>

                  "Redemption  Price," when used with respect to any Notes to be
redeemed,  means the price fixed for such redemption  pursuant to this Indenture
and the Notes.

                  "Refinance" means, in respect of any security or Indebtedness,
to refinance,  extend, renew, refund, repay, prepay,  redeem, defease or retire,
or to issue a security or  Indebtedness  in exchange or  replacement  for,  such
security or Indebtedness  in whole or in part.  "Refinanced"  and  "Refinancing"
shall have correlative meanings.

                  "Refinancing   Indebtedness"  means  any  Refinancing  by  the
Company or any Restricted  Subsidiary of the Company of Indebtedness incurred in
accordance  with Section 4.04 (other than  pursuant to clause (ii),  (iv),  (v),
(vi), (vii),  (viii), (x) or (xi) of the definition of Permitted  Indebtedness),
to the extent  that such  Refinancing  does not (1) result in an increase in the
aggregate  principal amount of the Indebtedness of such Person as of the date of
such proposed  Refinancing  (plus the amount of any premium  required to be paid
under the  terms of the  instrument  governing  such  Indebtedness  and plus the
amount of reasonable  expenses  incurred by the Company in connection  with such
Refinancing)  or (2) create  Indebtedness  with (A) at Weighted  Average Life to
Maturity  that is less  than  the  Weighted  Average  Life  to  Maturity  of the
Indebtedness  being  Refinanced or (B) a final  maturity  earlier than the final
maturity  of the  Indebtedness  being  Refinanced;  provided  that  (x) if  such
Indebtedness being Refinanced is Indebtedness  solely of the Company,  then such
Refinancing  Indebtedness shall be Indebtedness solely of the Company and (y) if
such  Indebtedness  being Refinanced is subordinate or junior to the Notes, then
such Refinancing  Indebtedness shall be subordinate to the Notes at least to the
same extent and in the same manner as the Indebtedness being Refinanced.

                  "Registered  Exchange  Offer"  means the offer to exchange the
Exchange Notes for all of the  outstanding  Initial Notes in accordance with the
Registration Rights Agreement.

                  "Registrar" has the meaning set forth in Section 2.04.

                  "Registration  Rights Agreement" means the Registration Rights
Agreement  dated as of the  Issue  Date  between  the  Company  and the  Initial
Purchasers.

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

                  "Related Business" means a business whose revenues are derived
from the  general  business  conducted  by the  Company on the Issue Date or any
business or activity  that (in the good faith  judgment of Board of Directors of
the  Company)  is  reasonably   related  thereto  or  a  reasonable   extension,
development or expansion thereof or ancillary thereto.

                  "Related Party" means,  with respect to Green Equity Investors
II,  L.P.,  any  partnership,  corporation  or other  Person which is managed or
controlled by Leonard Green & Partners, L.P. or any Affiliate thereof.

                  "Replacement  Assets"  has the  meaning  set forth in  Section
4.15.

                  "Responsible  Officer"  means,  when used with  respect to the
Trustee,  any officer in the Corporate Trust Office of the Trustee including any
vice  president,  assistant  vice  president,  assistant  secretary,  treasurer,
assistant  treasurer,  or any  other  officer  of the  Trustee  who  customarily
performs functions similar to those performed by the Persons who at

                                      -16-

<PAGE>

the time shall be such officers,  respectively,  or to whom any corporate  trust
matter is referred  because of such officer's  knowledge of and familiarity with
the particular subject.

                  "Restricted  Payments"  has the  meaning  set forth in Section
4.03.

                  "Restricted  Security"  has the  meaning set forth in Rule 144
(a) (3) under the Securities Act; provided that the Trustee shall be entitled to
request and conclusively rely upon an opinion of Counsel with respect to whether
any Note is a Restricted Security.

                  "Restricted Subsidiary" of the Company means any Subsidiary of
the  Company  which  at  the  time  of  determination  is  not  an  Unrestricted
Subsidiary.

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

                  "Sale and Leaseback  Transaction" means any direct or indirect
arrangement  with any Person or to which any such  Person is a party,  providing
for the  leasing to the  Company or a  Restricted  Subsidiary  of any  property,
whether owned by the Company or any  Restricted  Subsidiary at the Issue Date or
later acquired, which has been or is to be sold or transferred by the Company or
such  Restricted  Subsidiary to such Person or to any other Person by whom funds
have been or are to be advanced on the security of such Property.

                  "S&P" means Standard & Poor's Corporation and its successors.

                  "Securities Act" means the Securities Act of 1933, as amended,
or any successor statute or statutes thereto.

                  "Senior  Preferred  Stock"  means  the  Series  A  12%  Senior
Redeemable  Cumulative  Preferred  Stock of the Company  issued  pursuant to the
Certificate of Designations,  Preferences and Relative, Participating,  Optional
and Other Special Rights of Series A 12% Senior Redeemable  Cumulative Preferred
Stock, as in effect on the Issue Date.

                  "Significant  Subsidiary"  shall have the meaning set forth in
Rule 1.02(w) of Regulation S-X under the Securities Act.

                  "Special  Record  Date"  means  a date  fixed  by the  Trustee
pursuant to Section 2.13 for the payment of Defaulted Interest.

                  "Stock  Purchase  Agreement"  means  the  Second  Amended  and
Restated  Stock  Purchase and Sale  Agreement,  dated as of January 15, 1998, as
amended as of the Issue Date, by and among VGMC Corp.,  GEI,  Diamond Auto Glass
Works,  Inc.,  Triumph Auto Glass,  Inc.,  the Company,  A Above  Average  Glass
Company by Diamond,  Inc., A-AA Triumph Auto Glass,  Inc.,  (Scranton  Holdings,
Inc.,  Diamond/Triumph  Auto Export  Sales Co.,  Inc.,  A-Auto Glass by Triumph,
Inc,, A-Auto Glass Company by Diamond, Inc,, Kenneth Levine and Richard Rutta.

                  "Stockholders  Agreement"  means  the  Stockholders  Agreement
dated as of the Issue Date  among GEI,  Kenneth  Levine,  Richard  Rutta and the
Company,  as such  agreement may be amended from time to time,  provided that no
such amendment  shall have the effect of

                                      -17-

<PAGE>

increasing in any material respect the cost to the Company of the  transactions,
payments or expenses  permitted under such agreement  pursuant to clause (ii) of
Section 4.10(b).

                  "Subordinated  Management  Fees"  means  the  management  fees
payable under the Management Services Agreement,  which fees are subordinated in
right of payment, as provided in the Management Services Agreement, to the prior
payment in full in cash of all  obligations  of the Company  with respect to the
Notes,  whether for principal  of,  premium,  if any or interest,  or Additional
Interest, if any, on the Notes, expenses, indemnification or otherwise.

                  "Subsidiary,"  with  respect  to any  Person,  means  (i)  any
corporation of which the outstanding Capital Stock having at least a majority of
the votes  entitled  to be cast in the  election  of  directors  under  ordinary
circumstances  shall at the  time be  owned,  directly  or  indirectly,  by such
Person;  or (ii) any other  Person of which at least a  majority  of the  voting
interest under ordinary  circumstances  is at the time,  directly or indirectly,
owned by such Person.

                  "Subsidiary Guarantor" means each future Restricted Subsidiary
of the Company that executes a supplemental  indenture in which such  Restricted
Subsidiary agrees to be bound by the terms and provisions of this Indenture as a
Subsidiary Guarantor including,  without limitation, the terms and provisions of
Article Ten.

                  "Surviving Entity" has the meaning set forth in Section 5.01.

                  "Temporary  Offshore Global Note" has the meaning set forth in
Section 2.01.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S.C.  ss.ss.
77aaa-77bbbb),  as amended,  as in effect on the date of the  execution  of this
Indenture  until such time as this  Indenture  is  qualified  under the TIA, and
thereafter as in effect on the date on which this  Indenture is qualified  under
the TIA, except as otherwise provided in Section 9.03.

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

                  "U.S. Global Note" has the meaning set forth in Section 2.01.

                  "U.S. Government Obligations" shall have the meaning set forth
in Section 8.01.

                  "U.S.  Legal Tender" means such coin or currency of the United
States  of  America  as at the time of  payment  shall be legal  tender  for the
payment of public and private debts.

                  "U.S.  Physical  Notes" has the  meaning  set forth in Section
2.01.

                  "Unrestricted  Subsidiary"  means  (i) any  Subsidiary  of the
Company that at the time of  determination  shall be designated an  Unrestricted
Subsidiary by the Board of Directors of the Company in the manner provided below
and (ii) any Subsidiary of an Unrestricted Subsidiary. The Board of Directors of
the Company may designate any  Subsidiary  of the Company  (including  any newly
acquired or newly formed  Subsidiary) to be an  Unrestricted  Subsidiary  unless
such  Subsidiary  or  any  of  its  Subsidiaries   owns  any  Capital  Stock  or
Indebtedness  of, or

                                      -18-

<PAGE>

holds any Lien on any property of, the Company or any  Restricted  Subsidiary of
the Company  that is not a Subsidiary  of the  Subsidiary  to be so  designated;
provided,  however,  that (A) either (1) the  Subsidiary to be so designated has
total assets of $1,000 or less or (2) if such Subsidiary has assets greater than
$1,000,  such  designation  would be permitted  under  Section 4.03 and (B) such
Subsidiary to be so designated and each of its  Subsidiaries has not at the time
of such designation, and does not thereafter, incur any Indebtedness pursuant to
which the lender has recourse to any of the assets or  properties of the Company
or any of its Restricted Subsidiaries (except to the extent such recourse arises
pursuant to an Investment  permitted by this Indenture).  The Board of Directors
may  designate  any  Unrestricted  Subsidiary  to  be a  Restricted  Subsidiary;
provided,  however, that (x) any Indebtedness of such Subsidiary  outstanding at
the time of such designation  shall be deemed to have been incurred at such time
and (y) immediately  after giving effect to such designation and such incurrence
no Default shall have occurred and be  continuing.  Any such  designation by the
Board of Directors  shall be evidenced by the Company to the Trustee by promptly
filing with the  Trustee a copy of the Board  Resolution  giving  effect to such
designation  and an  Officers'  Certificate  certifying  that  such  designation
complied with the foregoing provisions.

                  "Weighted Average Life to Maturity" means, when applied to any
Indebtedness  (including any Disqualified Capital Stock) at any date, the number
of  years  obtained  by  dividing  (a)  the  sum of  the  products  obtained  by
multiplying  (x) the amount of each then  remaining  installment,  sinking fund,
serial  maturity or other required  payment of principal,  including  payment at
final maturity,  in respect thereof,  by (y) the number of years  (calculated to
the nearest  one-twelfth)  that will elapse  between such date and the making of
such  payment,  by (b) the then  outstanding  principal  amount  or  liquidation
preference, as applicable, of such Indebtedness.

                  "Wholly Owned Restricted  Subsidiary" of the Company means any
Restricted  Subsidiary  of the  Company  of  which  all the  outstanding  voting
securities  (other  than  in  the  case  of  a  foreign  Restricted  Subsidiary,
directors'  qualifying  shares or an immaterial  amount of shares required to be
owned by other Persons  pursuant to applicable  law) are owned by the Company or
any Wholly Owned Restricted Subsidiary of the Company.

SECTION 1.02.     Incorporation by Reference of TIA.

                  Whenever this Indenture refers to a provision of the TIA, such
provision is  incorporated  by reference in, and made a part of, this Indenture.
The following TIA terms used in this Indenture have the following meanings:

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Holder or a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture  trustee"  or  "institutional  trustee"  means  the
Trustee.

                  "obligor" on the "indenture securities" means the Company, any
Subsidiary Guarantor or any other obligor on the Notes.

                                      -19-

<PAGE>

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

SECTION 1.03.     Rules of Construction.

                  Unless the context otherwise requires:

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

                  (2) "or" is not exclusive;

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

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

                  (5) "herein," "hereof' and other words of similar import refer
           to this  Indenture  as a whole  and  not to any  particular  Article,
           Section or other subdivision.

                                  ARTICLE Two

                                    THE NOTES

SECTION 2.01.     Form and Dating.

                  The   Initial   Notes  and  the   Trustee's   certificate   of
authentication  thereof shall be  substantially in the form of Exhibit A hereto,
which is hereby incorporated in and expressly made a part of this Indenture. The
Exchange Notes and the Trustee's certificate of authentication  thereof shall be
substantially in the form of Exhibit B hereto,  which is hereby  incorporated in
and  expressly  made a part of this  Indenture.  The Notes  may have  notations,
legends or  endorsements  required by law,  stock  exchange  rule or usage.  The
Company and the Trustee  shall  approve the form of the Notes and any  notation,
legend or endorsement on them. Each Note shall be dated the date of its issuance
and shall show the date of its authentication.

                  The terms  and  provisions  contained  in the  Notes,  annexed
hereto as Exhibits A and B, shall  constitute,  and are hereby expressly made, a
part of this  Indenture  and,  to the extent  applicable,  the  Company  and the
Trustee,  by their execution and delivery of this Indenture,  expressly agree to
such terms and provisions and to be bound thereby.

                  Notes  offered  and sold in  reliance  on Rule  144A  shall be
issued in the form of one or more  permanent  Global Notes in  registered  form,
substantially  in the form set forth in  Exhibit A (each a "U.S.  Global  Note")
deposited with the Trustee,  as custodian for the  Depository,  duly executed by
the  Company  and  authenticated  by the Trustee as  hereinafter  provided.  The
aggregate  principal  amount  of a U.S.  Global  Note may  from  time to time be
increased  or decreased by

                                      -20-

<PAGE>

adjustments made on the records of the Trustee,  as custodian for the Depository
or its nominee, as hereinafter provided.

                  Notes offered and sold in offshore transactions in reliance on
Regulation  S shall be  issued  initially  in the form of one or more  temporary
Global Notes in registered form,  substantially in the form set forth in Exhibit
A (each a "Temporary  Offshore  Global Note"),  deposited  with the Trustee,  as
custodian for the Depository,  duly executed by the Company and authenticated by
the Trustee as  hereinafter  provided.  At any time after the 41st day following
the original  issuance of a Temporary  Offshore  Global Note (an "Offshore Notes
Exchange  Date"),  upon receipt by the Trustee and the Company of a  certificate
substantially  in the form of  Exhibit C hereto,  one or more  permanent  Global
Notes in registered form  substantially in the form set forth in Exhibit A (each
a "Permanent  Offshore  Global Note" and,  together with the Temporary  Offshore
Global Note, the "Offshore Global Notes"),  shall be deposited with the Trustee,
as custodian for the Depository,  duly executed by the Company and authenticated
by the Trustee as hereinafter  provided,  and the Trustee,  as custodian for the
depository or its nominee, shall reflect on its books and records the date and a
decrease  in the  principal  amount  of  such  Temporary  Offshore  Global  Note
transferred in exchange for such Permanent Offshore Global Note.

                  Notes which are offered and sold to Accredited Investors which
are not  QIBs  (excluding  Non-U.S.  Persons),  and  Notes  offered  and sold in
reliance on any other  exemption from the  registration  requirements  under the
Securities  Act, other than as described  above,  shall be issued in the form of
permanent  certificated Notes in registered form,  substantially in the form set
forth in Exhibit A (the "U.S. Physical Notes"), duly executed by the Company and
authenticated by the Trustee as hereinafter  provided.  Notes issued pursuant to
Section  2.16(b) or 2.17(d) in exchange for  interests  in the  Offshore  Global
Notes shall be in the form of permanent  certificated  Notes in registered  form
substantially in the form set forth in Exhibit A (the "Offshore  Physical Notes"
and, together with the U.S. Physical Notes, the "Physical Notes").

                  The definitive Notes shall .be typed, printed, lithographed or
engraved or produced by any  combination  of these methods or may be produced in
any other manner permitted by the rules of any securities  exchange on which the
Notes may be listed,  all as determined by the Officers executing such Notes, as
evidenced by their execution of such Notes.

SECTION 2.02.     Restrictive Legends.

                  (a) (i) Each U.S.  Global  Note and U.S.  Physical  Note shall
bear the legend set forth  below (the  "Private  Placement  Legend")  unless and
until (1) such Note is exchanged  for an Exchange  Note in  connection  with the
Registered  Exchange  Offer,  (2) such Note is offered  and sold  pursuant to an
effective  registration statement under the Securities Act or (3) receipt by the
Trustee of an Opinion of Counsel reasonably  satisfactory to the Trustee and the
Company to the effect that neither the Private  Placement Legend nor the related
restrictions  on transfer are required in order to maintain  compliance with the
provisions of the Securities  Act and (ii) each Offshore  Global Note shall bear
the  Private  Placement  Legend  until at least  41 days  after  the date of its
original  issuance  and receipt by the Company and the Trustee of a  certificate
substantially in the form of Exhibit C attached hereto: .

                                      -21-

<PAGE>

                  THIS NOTE HAS NOT BEEN  REGISTERED  UNDER THE U.S.  SECURITIES
                  ACT  OF  1933,  AS  AMENDED  (THE   "SECURITIES   ACT"),   AND
                  ACCORDINGLY,  MAY NOT BE  OFFERED  OR SOLD  WITHIN  THE UNITED
                  STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT  OF, U.S.  PERSONS
                  EXCEPT  AS  SET  FORTH  IN  THE  FOLLOWING  SENTENCE.  BY  ITS
                  ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A
                  "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER
                  THE SECURITIES ACT) OR (B) IT IS AN "ACCREDITED  INVESTOR" (AS
                  DEFINED  IN  RULE  501(a)(1),   (2),  (3)  OR  (7)  UNDER  THE
                  SECURITIES ACT) (AN "ACCREDITED  INVESTOR") OR (C) IT IS NOT A
                  U.S.  PERSON  AND  IS  ACQUIRING  THIS  NOTE  IN  AN  OFFSHORE
                  TRANSACTION  IN  COMPLIANCE   WITH   REGULATION  S  UNDER  THE
                  SECURITIES  ACT;  (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS
                  AFTER THE  ORIGINAL  ISSUANCE OF THIS NOTE RESELL OR OTHERWISE
                  TRANSFER THIS NOTE EXCEPT (A) TO THE ISSUER OR ANY  SUBSIDIARY
                  THEREOF,   (B)  INSIDE  THE  UNITED   STATES  TO  A  QUALIFIED
                  INSTITUTIONAL  BUYER IN  COMPLIANCE  WITH RULE 144A  UNDER THE
                  SECURITIES  ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED
                  INVESTOR  THAT IS ACQUIRING  THE NOTE FOR ITS OWN ACCOUNT,  OR
                  FOR THE ACCOUNT OF SUCH AN ACCREDITED  INVESTOR,  IN EACH CASE
                  IN A MINIMUM  PRINCIPAL AMOUNT OF THE NOTES OF U. S. $250,000,
                  FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR FOR OFFER OR
                  SALE IN CONNECTION  WITH ANY  DISTRIBUTION IN VIOLATION OF THE
                  SECURITIES  ACT, AND THAT,  PRIOR TO SUCH TRANSFER,  FURNISHES
                  (OR HAS  FURNISHED ON ITS BEHALF BY A U.S.  BROKER-DEALER)  TO
                  THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS
                  AND  AGREEMENTS  RELATING TO THE  RESTRICTIONS  ON TRANSFER OF
                  THIS NOTE (THE FORM OF WHICH  LETTER CAN BE OBTAINED  FROM THE
                  TRUSTEE),  (D) OUTSIDE THE UNITED  STATES IN  COMPLIANCE  WITH
                  REGULATION  S UNDER THE  SECURITIES  ACT,  (E) PURSUANT TO THE
                  EXEMPTION  FROM  REGISTRATION  PROVIDED  BY RULE 144 UNDER THE
                  SECURITIES ACT (IF AVAILABLE), OR (F) PURSUANT TO AN EFFECTIVE
                  REGISTRATION  STATEMENT  UNDER  THE  SECURITIES  ACT;  AND (3)
                  AGREES  THAT IT WILL GIVE TO EACH  PERSON TO WHOM THIS NOTE IS
                  TRANSFERRED  A  NOTICE  SUBSTANTIALLY  TO THE  EFFECT  OF THIS

                                      -22-

<PAGE>

                  LEGEND.  IN  CONNECTION  WITH ANY TRANSFER OF THIS NOTE WITHIN
                  TWO YEARS AFTER THE  ORIGINAL  ISSUANCE  OF THIS NOTE,  IF THE
                  PROPOSED  TRANSFEREE  IS AN  ACCREDITED  INVESTOR,  THE HOLDER
                  MUST,  PRIOR TO SUCH TRANSFER,  FURNISH TO THE TRUSTEE AND THE
                  ISSUER   SUCH   CERTIFICATIONS,   LEGAL   OPINIONS   OR  OTHER
                  INFORMATION  AS  EITHER  OF THEM  MAY  REASONABLY  REQUIRE  TO
                  CONFIRM  THAT  SUCH  TRANSFER  IS BEING  MADE  PURSUANT  TO AN
                  EXEMPTION  FROM,  OR IN A  TRANSACTION  NOT  SUBJECT  TO,  THE
                  REGISTRATION  REQUIREMENTS  OF THE  SECURITIES  ACT.  AS  USED
                  HEREIN, THE TERMS "OFFSHORE  TRANSACTION," "UNITED STATES" AND
                  "U.S.  PERSON" HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S
                  UNDER THE SECURITIES ACT.

                  (b) Each Global Note,  whether or not an Exchange Note,  shall
also bear the following legend on the face thereof:

                  UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED  REPRESENTATIVE
                  OF THE  DEPOSITORY  TRUST  COMPANY TO THE COMPANY OR ITS AGENT
                  FOR  REGISTRATION  OF TRANSFER,  EXCHANGE OR PAYMENT,  AND ANY
                  NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
                  OTHER NAME AS IS REQUESTED BY AN AUTHORIZED  REPRESENTATIVE OF
                  THE  DEPOSITORY  TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE
                  TO CEDE & CO. OR TO SUCH OTHER  ENTITY AS IS  REQUESTED  BY AN
                  AUTHORIZED  REPRESENTATIVE  OF THE DEPOSITORY  TRUST COMPANY),
                  ANY  TRANSFER,  PLEDGE  OR  OTHER  USE  HEREOF  FOR  VALUE  OR
                  OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED
                  OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN
                  WHOLE,  BUT NOT IN PART,  TO THE  DEPOSITORY  TRUST COMPANY OR
                  NOMINEES  OF THE  DEPOSITORY  TRUST  COMPANY OR TO A SUCCESSOR
                  THEREOF OR SUCH SUCCESSOR'S  NOMINEE AND TRANSFERS OF PORTIONS
                  OF THIS  GLOBAL  NOTE SHALL BE LIMITED  TO  TRANSFERS  MADE IN
                  ACCORDANCE WITH THE  RESTRICTIONS SET FORTH IN SECTION 2.17 OF
                  THE INDENTURE.

                                      -23-

<PAGE>

SECTION 2.03.     Execution and Authentication.

                  Two Officers, or an Officer and an Assistant Secretary,  shall
sign, or one Officer shall sign and one Officer or an Assistant  Secretary (each
of whom  shall,  in each  case,  have  been  duly  authorized  by all  requisite
corporate  actions)  shall  attest  to,  the Notes for the  Company by manual or
facsimile signature. The Company's seal may also be reproduced on the Notes.

                  If an Officer  whose  signature is on a Note was an Officer at
the time of such  execution  but no  longer  holds  that  office at the time the
Trustee authenticates the Note, the Note shall be valid nevertheless.

                  A Note shall not be valid until an authorized signatory of the
Trustee  manually signs the  certificate  of  authentication  on the Note.  Such
signature shall be conclusive  evidence that the Note has been  authenticated by
the Trustee under this Indenture.

                  The  Trustee  shall  authenticate  (i) the  Initial  Notes for
original issue on the Issue Date in the aggregate principal amount not to exceed
$100,000,000,  (ii) the Exchange  Notes from time to time only in exchange for a
like principal  amount of Initial  Notes,  and (iii) Notes issued in one or more
series  (such  Notes to be  substantially  in the form of Exhibit A or Exhibit B
(and if in the form of Exhibit A, a like  principal  amount of Notes in the form
of Exhibit B in exchange  therefor)) in each case upon receipt by the Trustee of
a written  order of the Company  (an  "Authentication  Order") and an  Officers'
Certificate.  The  Authentication  Order shall specify the amount of Notes to be
authenticated,  the  series  of Notes  and the date on which the Notes are to be
authenticated.  Upon  receipt  of  an  Authentication  Order  and  an  Officers'
Certificate,  the Trustee shall  authenticate  Notes in  substitution  for Notes
originally issued to reflect any name change of the Company.

                  The  Trustee may appoint an  authenticating  agent  reasonably
acceptable to the Company to authenticate  Notes.  Unless otherwise  provided in
the appointment,  an  authenticating  agent may authenticate  Notes 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 the Company and Affiliates of the Company.

                  The Notes shall be issuable  only in  registered  form without
coupons in denominations of $1,000 and any integral multiple thereof.

SECTION 2.04.     Registrar and Paying Agent.

                  The Company shall  maintain an office or agency in the Borough
of  Manhattan,  The City of New  York,  where  (a)  Notes  may be  presented  or
surrendered  for  registration  of transfer or for exchange  ("Registrar"),  (b)
Notes may be  presented  or  surrendered  for payment  ("Paying  Agent") and (c)
notices  and demands in respect of the Notes and this  Indenture  may be served.
The  Registrar  shall keep a  register  of the Notes and of their  transfer  and
exchange.  The  Company,  upon  notice  to the  Trustee,  may  have  one or more
Co-Registrars and one or more additional Paying Agents reasonably  acceptable to
the Trustee.  The term "Paying  Agent"  includes any  additional  Paying  Agent.
Neither the Company nor any Affiliate of the Company may act as Paying Agent.

                                      -24-

<PAGE>

                  The Company shall enter into an appropriate  agency  agreement
with any Agent not a party to this Indenture,  which agreement shall incorporate
the  provisions of the TIA and implement the  provisions of this  Indenture that
relate to such Agent. The Company shall notify the Trustee,  in advance,  of the
name and address of any such Agent. If the Company fails to maintain a Registrar
or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as
such.

                  The  Company  initially  appoints  the  Trustee as  Registrar,
Paying Agent and agent for service of demands and notices in connection with the
Notes,  until such time as the  Trustee has  resigned  or a  successor  has been
appointed.  The Paying Agent or Registrar  may resign upon 30 days notice to the
Company.

SECTION 2.05.     Paving Agent To Hold Assets in Trust.

                  The Company  shall  require  each Paying  Agent other than the
Trustee to agree in writing  that each Paying  Agent shall hold in trust for the
benefit of Holders or the Trustee  all assets  held by the Paying  Agent for the
payment of principal of, premium, if any, and interest and Additional  Interest,
if any, on the Notes, and shall notify the Trustee of any Default by the Company
in making any such  payment.  The Company at any time may require a Paying Agent
to  distribute  all assets  held by it to the Trustee and account for any assets
distributed  and the  Trustee  may at any time  during  the  continuance  of any
payment  Default,  upon written  request to a Paying Agent,  require such Paying
Agent to distribute  all assets held by it to the Trustee and to account for any
assets  distributed.  Upon  distribution to the Trustee of all assets that shall
have been  delivered by the Company to the Paying Agent,  the Paying Agent shall
have no further liability for such assets.

SECTION 2.06.     Noteholder 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 Holders.  If the Trustee is not the  Registrar,  the Company  shall
furnish to the  Trustee  before  each Record Date and at such other times as the
Trustee  may  request  in writing a list as of such date and in such form as the
Trustee may reasonably require of the names and addresses of Holders, which list
may be conclusively relied upon by the Trustee.

SECTION 2.07.     Transfer and Exchange.

                  Subject to the  provisions  of  Sections  2.16 and 2.17,  when
Notes are  presented  to the  Registrar  or a  Co-Registrar  with a  request  to
register  the  transfer  of such  Notes or to  exchange  such Notes for an equal
principal amount of Notes of other authorized  denominations of the same series,
the Registrar or  Co-Registrar  shall register the transfer or make the exchange
as  requested  if its  requirements  for such  transaction  are  met;  provided,
however,  that the Notes  surrendered  for  transfer or  exchange  shall be duly
endorsed or accompanied by a written instrument of transfer in form satisfactory
to the Company and the  Registrar or  Co-Registrar,  duly executed by the Holder
thereof or his attorney duly authorized in writing.  To permit  registrations of
transfers  and  exchanges,  the Company  shall  execute  and the  Trustee  shall
authenticate  Notes.  No service  charge shall be made for any  registration  of
transfer or exchange,

                                      -25-

<PAGE>

but the Company may require  payment of a sum  sufficient  to cover any transfer
tax or similar  governmental charge payable in connection  therewith (other than
any such transfer taxes or other  governmental  charge payable upon exchanges or
transfers  pursuant to Section 2.03,  2.11,  3.06,  4.14,  4.15 or 9.05 in which
event  the  Company  shall  be  responsible  for the  payment  of such  taxes or
governmental  charges).  The Registrar or Co-Registrar  shall not be required to
register the  transfer of or exchange of any Note (i) during a period  beginning
at the opening of business 15 days before the mailing of a notice of  redemption
of Notes and ending at the close of business on the day of such mailing and (ii)
selected for  redemption in whole or in part pursuant to Article  Three,  except
the unredeemed portion of any Note being redeemed in part.

                  Any  Holder of a Global  Note  shall,  by  acceptance  of such
Global Note,  agree that  transfers of beneficial  interests in such Global Note
may be effected only through a book-entry  system  maintained by the  Depository
(or its agent),  and that  ownership of a  beneficial  interest in a Global Note
shall be required to be reflected in a book entry.

SECTION 2.08.     Replacement Notes.

                  If a mutilated  Note is  surrendered  to the Trustee or if the
Holder of a Note claims  that the Note has been lost,  destroyed  or  wrongfully
taken, the Company shall issue and the Trustee shall  authenticate a replacement
Note if the  Trustee's  requirements  are met. If required by the Trustee or the
Company,  such  Holder  must  provide  an  indemnity  bond or  other  indemnity,
sufficient  in the judgment of both the Company and the Trustee,  to protect the
Company, the Trustee and any Agent from any loss which any of them may suffer if
a Note is  replaced.  The  Company  may charge  such  Holder for its  reasonable
out-of-pocket  expenses  in  replacing  a Note,  including  reasonable  fees and
expenses of counsel.

                  Every  replacement  Note is an  additional  obligation  of the
Company.

SECTION 2.09.     Outstanding Notes.

                  Notes outstanding at any time are all the Notes that have been
authenticated  by the Trustee except those canceled by it, those delivered to it
for cancellation and those described in this Section as not outstanding. Subject
to Section 2.10, a Note does not cease to be outstanding  because the Company or
any of its Affiliates holds the Note.

                  If a Note is replaced  pursuant to Section  2.08 (other than a
mutilated Note surrendered for replacement),  it ceases to be outstanding unless
the Trustee receives proof  satisfactory to it that the replaced Note is held by
a bona fide purchaser.  A mutilated Note ceases to be outstanding upon surrender
of such Note and replacement thereof pursuant to Section 2.08.

                  If on a Redemption  Date or the Final Maturity Date the Paying
Agent  holds  U.S.  Legal  Tender  sufficient  to pay all of the  principal  and
interest due on that date with respect to the Notes (or portions  thereof) to be
redeemed or maturing, as the case may be, then on and after that date such Notes
(or portions  thereof) cease to be outstanding  and interest on them shall cease
to accrue.

                                      -26-

<PAGE>

SECTION 2.10.     Treasury Notes.

                  In determining  whether the Holders of the required  principal
amount of Notes have concurred in any direction,  waiver or consent, Notes owned
by the Company or any of its Affiliates  shall be disregarded,  except that, for
the purposes of determining whether the Trustee shall be protected in relying on
any such  direction,  waiver or consent,  only Notes that the  Trustee  actually
knows are so owned shall be disregarded.

                  The Trustee may require an Officers' Certificate listing Notes
owned by the Company or its Affiliates.

SECTION 2.11.     Temporary Notes.

                  Until definitive Notes are ready for delivery, the Company may
prepare,  and the Trustee shall authenticate,  temporary Notes upon receipt of a
written  order of the  Company  in the  form of an  Officers'  Certificate.  The
Officers'  Certificate  shall  specify  the  amount  of  temporary  Notes  to be
authenticated and the date on which the temporary Notes are to be authenticated.
Temporary Notes shall be  substantially  in the form of definitive Notes but may
have variations  that the Company  considers  appropriate  for temporary  Notes.
Without  unreasonable  delay,  the Company  shall  prepare and the Trustee shall
authenticate definitive Notes in exchange for temporary Notes.

SECTION 2.12.     Cancellation.

                  The Company at any time may  deliver  Notes to the Trustee for
cancellation.  The  Registrar  and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for transfer, exchange or payment. The Trustee, or
at the direction of the Trustee,  the Registrar or the Paying Agent,  and no one
else, shall cancel and, at the written  direction of the Company,  shall dispose
of all Notes  surrendered  for  transfer,  exchange,  payment  or  cancellation,
provided  that the Trustee  shall not be required to destroy  Notes.  Subject to
Section  2.08,  the Company may not issue new Notes to replace Notes that it has
paid or delivered to the Trustee for cancellation.  If the Company shall acquire
any of the  Notes,  such  acquisition  shall  not  operate  as a  redemption  or
satisfaction of the Indebtedness  represented by such Notes unless and until the
same are  surrendered to the Trustee for  cancellation  pursuant to this Section
2.12.

SECTION 2.13.     Defaulted Interest.

                  If the Company  defaults in a payment of principal or interest
on the Notes, it shall pay, to the extent such payments are lawful,  interest on
overdue principal and on overdue installments of interest (without regard to any
applicable  grace periods) (herein called  "Defaulted  Interest") at the rate of
2.0% per annum in excess of the rate shown on the Notes. When any installment of
interest becomes Defaulted  Interest,  such installment shall forthwith cease to
be payable to the Holders in whose names the Notes were registered on the Record
Date applicable to such  installment of interest.  Defaulted  Interest,  and any
interest payable on such Defaulted Interest,  may be paid by the Company, at its
election, as provided in clause (a) or (b) below.

                  (a) The  Company  may elect to make  payment of any  Defaulted
Interest, and any interest payable on such Defaulted Interest, to the Holders in
whose  names the  Notes are

                                      -27-

<PAGE>

registered at the close of business on a Special  Record Date for the payment of
such  Defaulted  Interest,  which shall be fixed in the  following  manner.  The
Company shall notify the Trustee in writing of the amount of Defaulted  Interest
proposed to be paid on the Notes and the date of the  proposed  payment,  and at
the same time the  Company  shall  deposit  with the  Trustee an amount of money
equal to the aggregate  amount  proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for such deposit
prior to the date of the proposed payment,  such money when deposited to be held
in trust for the benefit of the Holders  entitled to such Defaulted  Interest as
provided in this  Section  2.13(a).  Thereupon  the Trustee  shall fix a Special
Record Date for the payment of such  Defaulted  Interest which shall be not more
than 15 calendar  days and not less than 10  calendar  days prior to the date of
the proposed payment and not less than 10 calendar days after the receipt by the
Trustee of the notice of the proposed payment. The Trustee shall promptly notify
the Company of such  Special  Record Date and, in the name and at the expense of
the  Company,  shall  cause  notice of the  proposed  payment of such  Defaulted
Interest  and the Special  Record Date  therefor to be sent,  first-class  mail,
postage  prepaid,  to each Holder at such Holder's  address as it appears in the
registration  books of the  Registrar,  not less than 10 calendar  days prior to
such Special  Record  Date.  Notice of the  proposed  payment of such  Defaulted
Interest and the Special  Record Date therefor  having been mailed as aforesaid,
such  Defaulted  Interest  shall be paid to the Holders in whose names the Notes
are registered at the close of business on such Special Record Date and shall no
longer be payable pursuant to the following clause (b); or

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

                  Subject to the foregoing provisions of this Section 2.13, each
Note  delivered  under this Indenture  upon  registration  of transfer of, or in
exchange for, or in lieu of, any other Note,  shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Note.

SECTION 2.14.     CUSIP Number.

                  The  Company in  issuing  the Notes will use one or more CUSIP
numbers and the Trustee  shall use the CUSIP numbers in notices of redemption or
exchange as a convenience  to Holders.  The Trustee and the Company shall not be
liable for any defect or inaccuracy in the CUSIP numbers that appear on any Note
or in any redemption notice. The Trustee, in its discretion,  may include in any
notice a statement  to the effect that the CUSIP  numbers on the Notes have been
assigned by an  independent  service and are included in such notice  solely for
the convenience of the Holders and that neither the Trustee nor the Company make
any  representation  as to the  correctness  or  accuracy  of the CUSIP  numbers
printed in the notice or on the Notes,  and that  reliance may be placed only on
the other  identification  numbers  printed  on the  Notes.  The  Company  shall
promptly notify the Trustee of any change in the CUSIP numbers.

                                      -28-

<PAGE>

                  In the event  that the  Company  shall  issue and the  Trustee
shall authenticate any Notes issued under this Indenture subsequent to the Issue
Date pursuant to clause (iii) of the first  sentence of the fourth  paragraph of
Section  2.03,  the Company  shall use its best efforts to obtain the same CUSIP
number  for such  Notes as is  printed  on the Notes  outstanding  at such time;
provided,  however,  that if any series of Notes  issued  under  this  Indenture
subsequent to the Issue Date is determined, pursuant to an Opinion of Counsel of
the Company in a form  reasonably  satisfactory to the Trustee to be a different
class of security than the Notes outstanding at such time for federal income tax
purposes, the Company may obtain a CUSIP number for such Notes that is different
than the CUSIP number printed on the Notes then outstanding.

                  Notwithstanding  the  foregoing,  all Notes  issued under this
Indenture  shall vote and  consent  together  on all matters as one class and no
series of Notes will have the right to vote or  consent  as a separate  class on
any matter.

SECTION 2.15.     Deposit of Moneys.

                  Prior  to  10:00  a.m.  New York  City  time on each  Interest
Payment Date and the Final  Maturity Date, the Company shall have deposited with
the Paying Agent in immediately  available funds U.S. Legal Tender sufficient to
make cash payments due on such Interest  Payment Date or Final Maturity Date, as
the case may be, in a timely  manner  which  permits  the Paying  Agent to remit
payment to the Holders on such Interest  Payment Date or Final Maturity Date, as
the case may be.

SECTION 2.16.     Book-Entry Provisions for Global Notes.

                  (a) The Global Notes  initially shall (i) be registered in the
name of the Depository or the nominee of such  Depository,  (ii) be delivered to
the Trustee as custodian for such Depository and (iii) bear legends as set forth
in Section 2.02.

                  Members    of,   or    participants    in,   the    Depository
("Participants")  shall have no rights under this  Indenture with respect to any
Global  Note  held on their  behalf by the  Depository,  or the  Trustee  as its
custodian,  or under the Global Note,  and the  Depository may be treated by the
Company,  any  Subsidiary,  the  Trustee  and  any  agent  of the  Company,  any
Subsidiary,  or the  Trustee as the  absolute  owner of the Global  Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the  Company,  any  Subsidiary,  the  Trustee or any agent of the  Company,  any
Subsidiary,  or the  Trustee  from giving  effect to any written  certification,
proxy or other  authorization  furnished by the Depository or impair, as between
the Depository and Participants,  the operation of customary practices governing
the exercise of the rights of a Holder of any Note.

                  (b) Transfers of Global Notes shall be limited to transfers in
whole,  but not in part, to the Depository,  its successors or their  respective
nominees.  Interests of beneficial owners in the Global Notes may be transferred
or exchanged for Physical  Notes in accordance  with the rules and procedures of
the Depository  and the provisions of Section 2.17. In addition,  Physical Notes
shall be transferred to all beneficial  owners in exchange for their  beneficial
interests in Global Notes if (i) the Depository  notifies the Company that it is
unwilling  or  unable  to  continue  as  Depository  for any  Global  Note and a
successor  Depository  is not  appointed  by the Company

                                      -29-

<PAGE>

within 90 days of such  notice or (ii) an Event of Default has  occurred  and is
continuing and the Registrar has received a request from the Depository to issue
Physical Notes.

                  (c) In  connection  with any transfer or exchange of a portion
of the  beneficial  interest in a Global Note to beneficial  owners  pursuant to
paragraph (b) of this Section 2.16, the Registrar shall (if one or more Physical
Notes are to be issued) reflect on its books and records the date and a decrease
in the  principal  amount of the  beneficial  interest  in the Global Note to be
transferred,  and the Company shall  execute and the Trustee shall  authenticate
and make  available for delivery,  one or more Physical  Notes of like tenor and
amount.

                  (d) In  connection  with the  transfer  of Global  Notes as an
entirety to  beneficial  owners  pursuant to paragraph (b) of this Section 2.16,
the  Global  Notes  shall  be  deemed  to be  surrendered  to  the  Trustee  for
cancellation,  and the Company shall execute, and the Trustee shall upon written
instructions from the Company  authenticate and make available for delivery,  to
each  beneficial  owner  identified  by  the  Depository  in  exchange  for  its
beneficial  interest in the Global Notes, an equal aggregate principal amount of
Physical Notes of authorized denominations.

                  (e) Any  Physical  Note  constituting  a  Restricted  Security
delivered in exchange for an interest in a Global Note pursuant to paragraph (b)
of this Section 2.16 shall,  except as otherwise  provided by Section 2.17, bear
the Private Placement Legend.

                  (f) The  Holder  of any  Global  Note may  grant  proxies  and
otherwise authorize any Person, including Participants and Persons that may hold
interests through Participants, to take any action which a Holder is entitled to
take under this Indenture or the Notes.

SECTION 2.17.     Registration of Transfers and Exchanges.

                  (a)  Transfer and Exchange of Physical  Notes.  When  Physical
Notes are presented to the Registrar or Co-Registrar with a request:

                  (i) to register the transfer of the Physical Notes; or

                  (ii) to exchange  such  Physical  Notes for an equal number of
           Physical Notes of other  authorized  denominations,  the Registrar or
           Co-Registrar  shall  register  the  transfer or make the  exchange as
           requested if the  requirements  under this  Indenture as set forth in
           this Section 2.17 for such transactions are met;  provided,  however,
           that the Physical Notes presented or surrendered for  registration of
           transfer or exchange:

                       (I) shall be duly  endorsed or  accompanied  by a written
instrument of transfer in form  satisfactory  to the Registrar or  Co-Registrar,
duly executed by the Holder thereof or his attorney duly  authorized in writing;
and

                       (II) in the case of Physical  Notes the offer and sale of
which  have not been  registered  under the  Securities  Act and which  bear the
Private Placement Legend, such Physical Notes shall be accompanied,  in the sole
discretion  of  the  Company,  by  the  following  additional   information  and
documents, as applicable:

                                      -30-

<PAGE>

                       (A)  if such  Physical  Note is  being  delivered  to the
                            Registrar   or   Co-Registrar   by  a   Holder   for
                            registration  in the  name of such  Holder,  without
                            transfer,  a certification  from such Holder to that
                            effect  (substantially  in the  form  of  Exhibit  D
                            hereto); or

                       (B)  if such  Physical  Note is  being  transferred  to a
                            Qualified  Institutional  Buyer in  accordance  with
                            Rule   144A,   a   certification   to  that   effect
                            (substantially in the form of Exhibit D hereto); or

                       (C)  if such  Physical  Note is being  transferred  to an
                            Accredited Investor,  delivery of a certification to
                            that effect  (substantially in the form of Exhibit D
                            hereto) and a Transferee  Certificate for Accredited
                            Investors  substantially  in the form of  Exhibit  E
                            hereto; or

                       (D)  if  such  Physical  Note  is  being  transferred  in
                            reliance   on    Regulation   S,   delivery   of   a
                            certification to that effect  (substantially  in the
                            form  of   Exhibit  D  hereto)   and  a   Transferee
                            Certificate for Regulation S Transfers substantially
                            in the form of Exhibit F hereto; or

                       (E)  if  such  Physical  Note  is  being  transferred  in
                            reliance  on Rule  144  under  the  Securities  Act,
                            delivery   of  a   certification   to  that   effect
                            (substantially in the form of Exhibit D hereto); or

                       (F)  if  such  Physical  Note  is  being  transferred  in
                            reliance on another  exemption from the registration
                            requirements  of the Securities Act, a certification
                            to that effect (substantially in the form of Exhibit
                            D  hereto)  and an  Opinion  of  Counsel  reasonably
                            acceptable  to the  Company to the effect  that such
                            transfer  is  in  compliance   with  the  rules  and
                            regulations  under the  Securities Act applicable to
                            such exemption.

                  (b)  Restrictions  on  Transfer  of  a  Physical  Note  for  a
Beneficial Interest in a Global Note. A Physical Note may not be exchanged for a
beneficial   interest  in  a  Global  Note  except  upon   satisfaction  of  the
requirements set forth below. Upon receipt by the Registrar or Co-Registrar of a
Physical  Note,  duly endorsed or  accompanied  by  appropriate  instruments  of
transfer, in form satisfactory to the Registrar or Co-Registrar, together with:

                       (A)  in the case of Physical  Notes the offer and sale of
                            which have not been registered  under the Securities
                            Act and which  bear the  Private  Placement  Legend,
                            certification,  substantially in the form of Exhibit
                            D  hereto,   that  such   Physical   Note  is  being
                            transferred (I) to a Qualified  Institutional  Buyer
                            or (II) in an  offshore  transaction  in reliance on
                            Regulation S; and

                       (B)  written  instructions  directing  the  Registrar  or
                            Co-Registrar to make, or to direct the Depository to
                            make, an endorsement  on the

                                      -31-

<PAGE>

                            applicable Global Note to reflect an increase in the
                            aggregate  amount  of the Notes  represented  by the
                            Global Note,

then the Registrar or Co-Registrar shall cancel such Physical Note and cause, or
direct the Depository to cause, in accordance with the standing instructions and
procedures  existing  between the Depository and the Registrar or  Co-Registrar,
the principal  amount of Notes  represented by the applicable  Global Note to be
increased  accordingly.  If no Global Note representing  Notes held by Qualified
Institutional  Buyers or Persons  acquiring  Notes in offshore  transactions  in
reliance on Regulation S, as the case may be, is then  outstanding,  the Company
shall issue and the Trustee shall, upon written instructions from the Company in
accordance with Section 2.03, authenticate such a Global Note in the appropriate
principal amount.

                  (c)  Transfer  and  Exchange of Global  Notes.  (i) Subject to
clause (ii) of this  paragraph (c), the transfer and exchange of Global Notes or
beneficial  interests  therein  shall be  effected  through  the  Depository  in
accordance with this Indenture (including the restrictions on transfer set forth
herein) and the  procedures  of the  Depository  therefor.  Upon  receipt by the
Registrar or Co-Registrar of written instructions,  or such other instruction as
is customary for the Depository,  from the Depository or its nominee, requesting
the  registration of transfer of an interest in a Global Note to another type of
Global Note,  together with the  applicable  Global Notes (or, if the applicable
type of Global Note  required to  represent  the  interest  as  requested  to be
transferred  is not then  outstanding,  only the Global  Note  representing  the
interest being  transferred),  the Registrar or  Co-Registrar  shall cancel such
Global Notes (or Global Note) and the Company shall issue and the Trustee shall,
upon written  instructions  from the Company in  accordance  with Section  2.02,
authenticate  new Global Notes of the types so canceled (or the type so canceled
and  applicable  type  required to  represent  the  interest as  requested to be
transferred)  reflecting the  applicable  increase and decrease of the principal
amount of Notes represented by such types of Global Notes, giving effect to such
transfer.  If the  applicable  type of Global  Note  required to  represent  the
interest as requested to be transferred  is not  outstanding at the time of such
request,   the  Company  shall  issue  and  the  Trustee  shall,   upon  written
instructions  from the Company in accordance  with Section 2.02,  authenticate a
new Global Note of such type in principal  amount equal to the principal  amount
of the interest requested to be transferred.

                  (ii) Notwithstanding clause (i) above, beneficial interests in
a Temporary  Offshore  Global Note may not be transferred to a Person that takes
delivery thereof in the form of an interest in a U.S. Global Note and beneficial
interests in a U.S.  Global Note may not be  transferred  to a Person that takes
delivery thereof in the form of an interest in a Temporary Offshore Global Note.

                  (d) Transfer of a  Beneficial  Interest in a Global Note for a
Physical Note.

                  (i) Any Person  having a beneficial  interest in a Global Note
           (other than a  Temporary  Offshore  Global  Note) may  exchange  upon
           request such beneficial interest for a Physical Note. Upon receipt by
           the Registrar or Co-Registrar of written instructions,  or such other
           form of  instructions  as is customary for the  Depository,  from the
           Depository or its nominee on behalf of any Person having a beneficial
           interest  in a Global  Note  and upon  receipt  by the  Trustee  of a
           written order or such other form of  instructions as is customary for
           the  Depository or the Person  designated by the

                                      -32-

<PAGE>

           Depository   as  having  such  a   beneficial   interest   containing
           registration  instructions  and, in the case of any such  transfer or
           exchange  of a  beneficial  interest  in a Note the offer and sale of
           which  has not been  registered  under the  Securities  Act and which
           bears  the  Private  Placement  Legend,   the  following   additional
           information and documents:

                       (A)  if such beneficial  interest is being transferred to
                            the Person designated by the Depository as being the
                            beneficial  owner, a certification  from such Person
                            to that effect (substantially in the form of Exhibit
                            D hereto); or

                       (B)  if such beneficial  interest is being transferred to
                            a Qualified  Institutional  Buyer in accordance with
                            Rule   144A,   a   certification   to  that   effect
                            (substantially in the form of Exhibit D hereto); or

                       (C)  if such beneficial  interest is being transferred to
                            an Accredited Investor,  delivery of a certification
                            to that effect (substantially in the form of Exhibit
                            D  hereto)   and  a   Transferee   Certificate   for
                            Accredited  Investors  substantially  in the form of
                            Exhibit E hereto; or

                       (D)  if such beneficial  interest is being transferred in
                            reliance   on    Regulation   S,   delivery   of   a
                            certification to that effect  (substantially  in the
                            form  of   Exhibit  D  hereto)   and  a   Transferee
                            Certificate for Regulation S Transfers substantially
                            in the form of Exhibit F hereto; or

                       (E)  if such beneficial  interest is being transferred in
                            reliance  on Rule  144  under  the  Securities  Act,
                            delivery   of  a   certification   to  that   effect
                            (substantially in the form of Exhibit D hereto); or

                       (F)  if such beneficial  interest is being transferred in
                            reliance on another  exemption from the registration
                            requirements  of the Securities Act, a certification
                            to that effect (substantially in the form of Exhibit
                            D  hereto)  and an  Opinion  of  Counsel  reasonably
                            satisfactory  to the Company to the effect that such
                            transfer  is  in  compliance   with  the  rules  and
                            regulations  under the  Securities Act applicable to
                            such exemption,

then the Registrar or  Co-Registrar  will cause, in accordance with the standing
instructions and procedures existing between the Depository and the Registrar or
Co-Registrar, the aggregate principal amount of the applicable Global Note to be
reduced and,  following  such  reduction,  the Company  will  execute and,  upon
receipt of an  authentication  order in the form of an Officers'  Certificate in
accordance with Section 2.03, the Trustee will  authenticate  and make available
for delivery to the transferee a Physical Note.

                  (ii) Notes issued in exchange  for a beneficial  interest in a
           Global  Note  pursuant  to clause (d) of this  Section  2.17 shall be
           registered in such names and in such authorized  denominations as the
           Depository,  pursuant  to  instructions  from its direct or

                                      -33-

<PAGE>

           indirect  participants or otherwise,  shall instruct the Registrar or
           Co-Registrar  in writing.  The Registrar or  Co-Registrar  shall make
           available for delivery  such  Physical  Notes to the Persons in whose
           names such Physical Notes are so registered.

                  (e)  Restrictions  on Transfer and  Exchange of Global  Notes.
Notwithstanding any other provisions of this Indenture, a Global Note may not be
transferred  as a whole except by the  Depository to a nominee of the Depository
or by a nominee of the  Depository to the  Depository or another  nominee of the
Depository or by the Depository or any such nominee to a successor Depository or
a nominee of such successor Depository.

                  (f) Private Placement Legend.  Upon the transfer,  exchange or
replacement of Notes not bearing the Private Placement Legend,  the Registrar or
Co-Registrar  shall deliver Notes that do not bear the Private Placement Legend.
Upon the  transfer,  exchange  or  replacement  of  Notes  bearing  the  Private
Placement  Legend,  the Registrar or Co-Registrar  shall deliver only Notes that
bear the Private  Placement Legend unless,  and the Trustee is hereby authorized
and directed to deliver Notes without the Private Placement Legend if, (i) there
is delivered to the Trustee an Opinion of Counsel reasonably satisfactory to the
Company and the Trustee to the effect that  neither  such legend nor the related
restrictions  on transfer are required in order to maintain  compliance with the
provisions  of the  Securities  Act, (ii) such Note has been sold pursuant to an
effective registration statement under the Securities Act or (iii) such Note has
been exchanged for an Exchange Note pursuant to the Registered Exchange Offer.

                  (g)  General.  By its  acceptance  of any  Notes  bearing  the
Private  Placement  Legend,   each  Holder  of  such  a  Note  acknowledges  the
restrictions  on transfer of such Notes set forth in this  Indenture  and in the
Private  Placement  Legend and agrees that it will  transfer  such Notes only as
provided in this Indenture.

                  The Registrar shall retain copies of all letters,  notices and
other written  communications  received pursuant to Section 2.16 or this Section
2.17.  The  Company  shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the
giving of reasonable written notice to the Registrar.

SECTION 2.18.     Additional Interest Under Registration Rights Agreement.

                  Under certain circumstances, the Company shall be obligated to
pay  Additional  Interest to the  Holders,  all as set forth in Section 4 of the
Registration Rights Agreement.  The terms thereof are hereby incorporated herein
by reference.

                                 ARTICLE Three

                                   REDEMPTION

SECTION 3.01.     Notices to Trustee.

                  If the Company  elects to redeem Notes pursuant to Paragraph 5
or  Paragraph  6 of the Notes,  it shall  notify  the  Trustee in writing of the
Redemption  Date, the Redemption  Price and the principal  amount of Notes to be
redeemed.  The Company  shall give notice of  redemption

                                      -34-

<PAGE>

to the  Paying  Agent  and  Trustee  at least 30 days but not more  than 60 days
before the  Redemption  Date (unless a shorter  notice shall be agreed to by the
Trustee in writing),  together with an Officers'  Certificate  stating that such
redemption will comply with the conditions contained herein.

SECTION 3.02.     Selection of Notes To Be Redeemed.

                  In the  event  that  less  than  all of  the  Notes  are to be
redeemed at any time, selection of such Notes for redemption will be made by the
Trustee in compliance with the requirements of the principal national securities
exchange,  if any, on which such Notes are listed or, if such Notes are not then
listed on a national securities exchange, on a pro rata basis, by lot or by such
method as the Trustee shall deem fair and appropriate;  provided,  however, that
no Notes of a  principal  amount of $1,000 or less shall be redeemed in part and
Notes of a  principal  amount in excess of  $1,000  may be  redeemed  in part in
multiples of $1,000 only; and provided, further, that if a partial redemption is
made with the proceeds of a Public  Equity  Offering,  selection of the Notes or
portions thereof for redemption shall, subject to the preceding proviso, be made
by the  Trustee  only on a pro rata basis or on as nearly a pro rata basis as is
practicable (subject to the procedures of the Depository), unless such method is
otherwise prohibited.

                  The  Trustee   shall  make  the   selection   from  the  Notes
outstanding  and not previously  called for redemption and shall promptly notify
the Company in writing of the Notes selected for redemption  and, in the case of
any Note selected for partial  redemption,  the principal  amount  thereof to be
redeemed.  Notes in  denominations  of  $1,000 or less may be  redeemed  only in
whole.  The Trustee may select for redemption  portions  (equal to $1,000 or any
integral  multiple  thereof) of the  principal of Notes that have  denominations
larger than $1,000.  Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

SECTION 3.03.     Notice of Redemption.

                  At least 30 days but not more than 60 days before a Redemption
Date, the Company shall mail a notice of redemption by first class mail, postage
prepaid,  to each  Holder  whose  Notes  are to be  redeemed  at its  registered
address. At the Company's request made at least 45 days (unless a shorter period
shall be  acceptable to the Trustee)  before the  Redemption  Date,  the Trustee
shall give the notice of redemption  in the Company's  name and at the Company's
expense.  Each notice for  redemption  shall  identify  the Notes to be redeemed
(including the CUSIP number(s), if any) and shall state:

                  (1) the Redemption Date;

                  (2) the Redemption  Price and the amount of accrued  interest,
           if any, to be paid;

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

                  (4) that Notes called for  redemption  must be  surrendered to
           the Paying Agent to collect the Redemption  Price,  including accrued
           interest, if any;

                                      -35-

<PAGE>

                  (5) that, unless the Company defaults in making the redemption
           payment,  interest  on Notes  called for  redemption  shall  cease to
           accrue on and after the Redemption Date, and the only remaining right
           of the Holders of such Notes is to receive  payment of the Redemption
           Price upon surrender to the Paying Agent of the Notes redeemed; i

                  (6) if any  Note is being  redeemed  in part,  the  notice  of
           redemption  that relates to such Notes shall state the portion of the
           principal  amount of such  Note to be  redeemed  and that,  after the
           Redemption Date, and upon surrender of such Note, a new Note or Notes
           in aggregate principal amount equal to the unredeemed portion thereof
           will be issued;

                  (7) if  fewer  than  all the  Notes  are to be  redeemed,  the
           aggregate  principal amount of Notes to be redeemed and the aggregate
           principal  amount  of  Notes to be  outstanding  after  such  partial
           redemption;

                  (8) the paragraph of the Notes pursuant to which the Notes are
           to be redeemed; and

                  (9) if the Redemption Date is after a Record Date and prior to
           the Interest Payment Date to which such Record Date relates, that the
           accrued  interest on the Notes called for redemption shall be payable
           to the  Holders  of such  Notes on the  relevant  Record  Date and no
           accrued  interest  will be  included in the  Redemption  Price of the
           Notes redeemed on the Redemption Date.

SECTION 3.04.     Effect of Notice of Redemption.

                  Once notice of redemption is mailed in accordance with Section
3.03, Notes called for redemption  become due and payable on the Redemption Date
and at the Redemption Price including  accrued interest,  if any, thereon.  Upon
surrender to the Trustee or Paying Agent, such Notes called for redemption shall
be paid at the Redemption Price (which shall include accrued interest thereon to
the  Redemption  Date) stated in such notice;  provided  that, if the Redemption
Date is after a Record Date and prior to the Interest Payment Date to which such
Record Date relates, the accrued interest shall be payable to the Holders of the
redeemed  Notes on the  relevant  Record  Date and no accrued  interest  will be
included in the Redemption  Price of the Notes redeemed on the Redemption  Date.
Failure  to give  notice or any  defect in the  notice to any  Holder  shall not
affect the validity of the notice to any other holder.

SECTION 3.05.     Deposit of Redemption Price.

                  On or before 10:00 a.m.  New York City Time on the  Redemption
Date,  the  Company  shall  deposit  with the  Paying  Agent U.S.  Legal  Tender
sufficient to pay the Redemption Price including  accrued  interest,  if any, of
all Notes to be redeemed on that date.

                  If the Company  complies with the preceding  paragraph,  then,
unless the Company  defaults in the payment of such  Redemption  Price including
accrued  interest,  if any,  interest on the Notes to be redeemed  will cease to
accrue on and after the applicable  Redemption  Date,  whether or not such Notes
are presented for payment.

                                      -36-

<PAGE>

SECTION 3.06.     Notes Redeemed in Part.

                  Upon  surrender of a Note that is to be redeemed in part only,
the Trustee shall, upon written  instruction from the Company,  authenticate for
the  Holder  thereof  a new  Note or Notes in a  principal  amount  equal to the
unredeemed portion of the Note surrendered.

                                  ARTICLE Four

                                    COVENANTS

SECTION 4.01.     Payment of Notes.

                  The Company will pay the  principal of,  premium,  if any, and
interest and Additional Interest, if any, on the Notes in the manner provided in
the Notes and in this  Indenture.  An installment of principal of or interest or
Additional  Interest,  if any, on the Notes shall be considered paid on the date
it is due if the Trustee or Paying Agent (other than the Company or an Affiliate
of the  Company)  holds  on that  date U. S.  Legal  Tender  designated  for and
sufficient to pay the installment in full and is not prohibited from paying such
money to the Holders pursuant to the terms of this Indenture.

                  The Company will pay, to the extent such  payments are lawful,
Defaulted Interest and interest on Defaulted Interest,  compounded semi-annually
on each Interest Payment Date, at the rate of 2% per annum in excess of the rate
shown on the Notes.  Interest  will be computed  on the basis of a 360-day  year
comprised of twelve 30-day months.

SECTION 4.02.     Maintenance of Office or Agency.

                  The Company  will  maintain in the Borough of  Manhattan,  The
City of New York, the office or agency  required under Section 2.04. The Company
shall give prompt written notice (in any event no later than  forty-eight  hours
after any change in location) 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 address of the Trustee set forth in Section  11.02.
The  Company  hereby  initially  designates  the  office  of the  Trustee  at 61
Broadway,  Concourse Level,  Corporate Trust Window, New York, New York 10006 as
its office or agency in the Borough of Manhattan, The City of New York.

SECTION 4.03.     Limitation on Restricted Payments.

                  The Company  will not, and will not cause or permit any of its
Restricted  Subsidiaries  to,  directly  or  indirectly,  (a) declare or pay any
dividend or make any  distribution  (other than (q)  dividends or  distributions
payable in  Qualified  Capital  Stock of the Company or in  warrants,  rights or
options to purchase or acquire shares of Qualified Capital Stock of the Company,
(r) dividends on shares of the Senior  Preferred  Stock paid by  increasing  the
then  liquidation  preference  per share of the  Senior  Preferred  Stock or (s)
dividends or distributions payable to the Company or a Restricted Subsidiary and
pro rata  dividends  or  distributions  to the  Company  and/or  its  Restricted
Subsidiaries   and  to  minority   holders  of  Capital   Stock  of

                                      -37-

<PAGE>

Restricted  Subsidiaries)  on or in respect  of shares of  Capital  Stock of the
Company or any  Restricted  Subsidiary  to holders of such  Capital  Stock,  (b)
purchase,  redeem or otherwise  acquire or retire for value any Capital Stock of
the Company or any warrants,  rights or options to purchase or acquire shares of
any class of such Capital Stock,  (c) make any principal  payment on,  purchase,
defease,  redeem,  prepay,  decrease or  otherwise  acquire or retire for value,
prior to any scheduled final maturity,  scheduled repayment or scheduled sinking
fund  payment,  as the case  may be,  any  Indebtedness  of the  Company  or any
Subsidiary  Guarantor  that is  subordinate or junior in right of payment to the
Notes  or  Guarantees  or  (d)  make  any   Investment   (other  than  Permitted
Investments)  (each of the foregoing  actions set forth in clauses (a), (b), (c)
and (d) being  referred to as a  "Restricted  Payment"),  if at the time of such
Restricted Payment or immediately after giving effect thereto,  (i) a Default or
an Event of Default shall have occurred and be continuing or (ii) the Company is
not able to  incur  at  least  $1.00  of  additional  Indebtedness  (other  than
Permitted  Indebtedness)  in compliance with Section 4.04 or (iii) the aggregate
amount of Restricted  Payments (including such proposed Restricted Payment) made
subsequent to the Issue Date (the amount  expended for such  purposes,  if other
than in cash, being the fair market value of such property) shall exceed the sum
of:  (w)  50%  of the  cumulative  Consolidated  Net  Income  (or if  cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) of the Company
accrued during the period (treated as one accounting  period) beginning on April
1, 1998 to the end of the most  recent  fiscal  quarter  ending at least 45 days
prior to the date of such Restricted Payment; plus (x) 100% of the aggregate net
cash  proceeds  received by the Company from any Person (other than a Subsidiary
of the  Company)  from the  issuance  and sale  subsequent  to the Issue Date of
Qualified  Capital  Stock of the Company or any  warrants,  rights or options to
purchase or acquire  shares of Capital Stock of the Company or from the issuance
and sale  subsequent  to the  Issue  Date of any debt or other  security  of the
Company that has been converted into or exchanged for Qualified Capital Stock of
the Company;  plus (y) the net cash proceeds of any capital  contribution to the
Company subsequent to the Issue Date; plus (z) without  duplication,  the sum of
(1) the  aggregate  amount  returned in cash on or with  respect to  Investments
(other than  Permitted  Investments)  made  subsequent to the Issue Date whether
through interest payments,  principal payments, dividends or other distributions
or payments, (2) the net cash proceeds received by the Company or any Restricted
Subsidiary from the disposition of all or any portion of such Investments (other
than to a Restricted Subsidiary of the Company), (3) to the extent that any such
Investment  was in  the  form  of a  guarantee,  any  reduction  in  the  amount
guaranteed,  and (4) the portion (proportionate to the Company's equity interest
in  such  Subsidiary)  of  the  fair  market  value  of  the  net  assets  of an
Unrestricted Subsidiary at the time such Unrestricted Subsidiary is designated a
Restricted  Subsidiary;  provided,  however,  that the  foregoing  sum shall not
exceed,  in the case of any Unrestricted  Subsidiary,  the amount of Investments
previously  made (and  treated as a  Restricted  Payment)  by the Company or any
Restricted Subsidiary in such Unrestricted Subsidiary.

                  Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph do not prohibit: (1) the payment of any dividend
within 60 days after the date of  declaration  of such  dividend if the dividend
would  have been  permitted  on the date of  declarations;  (2) if no Default or
Event of Default shall have occurred and be continuing,  the  acquisition of any
shares of Capital  Stock of the  Company or any  warrants,  rights or options to
purchase or acquire shares of Capital Stock of the Company,  (i) in exchange for
shares of  Qualified  Capital  Stock of the Company or any  warrants,  rights or
options to purchase or acquire shares of Qualified  Capital Stock of the Company
or (ii) through the  application of net proceeds

                                      -38-

<PAGE>

of a  substantially  concurrent sale for cash (other than to a Subsidiary of the
Company) of shares of Qualified  Capital  Stock of the Company or any  warrants,
rights or options to purchase or acquire  shares of Qualified  Capital  Stock of
the Company;  (3) if no Default or Event of Default  shall have  occurred and be
continuing, the voluntary prepayment, purchase, defeasance,  redemption or other
acquisition  or retirement for value of any  Indebtedness  of the Company or any
Subsidiary  Guarantor  that is  subordinate or junior in right of payment to the
Notes or  Guarantees  (i) solely in exchange for shares of Capital  Stock of the
Company or any  warrants,  rights or options to  purchase  or acquire  shares of
Capital Stock of the Company; provided,  however, that if such Capital Stock is,
or such  warrants,  rights  or  options  to  purchase  such  Capital  Stock  are
convertible  into or  exchangeable  at the  option of the  holder  thereof  for,
Disqualified  Capital Stock, then such Disqualified  Capital Stock shall not (i)
by its  terms,  or upon the  happening  of any event,  mature or be  mandatorily
redeemable pursuant to a sinking fund obligation or otherwise,  or be redeemable
at the  option of the  holder  thereof,  in any  case,  on or prior to the final
maturity  of the  Indebtedness  permitted  to be prepaid,  purchased,  defeased,
redeemed  or  acquired  pursuant  to this  clause  (3) and (ii) have a  Weighted
Average  Life to Maturity  less than the  Indebtedness  permitted to be prepaid,
purchased,  defeased,  redeemed or acquired pursuant to this clause (3) or (iii)
through the application of net proceeds of a  substantially  concurrent sale for
cash  (other than to a  Subsidiary  of the  Company) of (A) shares of  Qualified
Capital Stock of the Company or any  warrants,  rights or options to purchase or
acquire  shares of  Qualified  Capital  Stock of the Company or (B)  Refinancing
Indebtedness;  (4) so long as no Default or Event of Default shall have occurred
and be continuing,  repurchases by the Company of Common Stock of the Company or
options,  warrants or other  securities  exercisable or convertible  into Common
Stock of the Company from  employees  and directors of the Company or any of its
Subsidiaries or their authorized  representatives upon the death,  disability or
termination of employment or directorship of such employees or directors,  in an
aggregate amount not to exceed $750,000 in any calendar year and $3.0 million in
the aggregate (in each case plus the amount of net cash proceeds received by the
Company  from the sale of Qualified  Capital  Stock or any  warrants,  rights or
options to purchase or acquire shares of Qualified Capital Stock to employees or
directors of the Company and its  Subsidiaries,  to the extent that such amounts
did not provide the basis for any previous Restricted Payment);  and (5) so long
as no Default or Event of Default  shall have  occurred and be  continuing,  the
payment of  dividends on the shares of the Senior  Preferred  Stock with (x) the
net proceeds of a sale for cash (other than to a  Subsidiary  of the Company) of
shares of  Qualified  Capital  Stock of the Company or any  warrants,  rights or
options to purchase or acquire shares of Qualified  Capital Stock of the Company
or (y) the net cash proceeds of any capital  contribution  to the Company to the
extent  such  amounts in clauses  (x) and (y) did not  provide the basis for any
previous  Restricted  Payment. In determining the aggregate amount of Restricted
Payments made  subsequent  to the Issue Date in accordance  with clause (iii) of
the immediately  preceding paragraph,  amounts expended pursuant to clauses (1),
(2)(ii),  (3)(ii)(A),  (4) and (5) shall be  included  in such  calculation  and
amounts  expended  pursuant to clauses  (2)(i),  3(i) and 3(ii)(B)  shall not be
included in such calculation.

                  Not later than the date of making any Restricted Payment,  the
Company shall deliver to the Trustee an officers'  certificate stating that such
Restricted  Payment complies with this Indenture and setting forth in reasonable
detail the basis upon  which the  required  calculations  were  computed,  which
calculations may be based upon the Company's latest available internal quarterly
financial statements.

                                      -39-

<PAGE>

SECTION 4.04.     Limitation on Incurrence of Additional Indebtedness.

                  The  Company  will  not,  and  will  not  permit  any  of  its
Restricted  Subsidiaries  to,  directly or indirectly,  create,  incur,  assume,
guarantee,  become  liable,  contingently  or  otherwise,  with  respect  to, or
otherwise  become  responsible  for  payment  of  (collectively,  "incur"),  any
Indebtedness   (including   Acquired   Indebtedness   but  excluding   Permitted
Indebtedness);  provided,  however, that if no Default or Event of Default shall
have  occurred  and be  continuing  at the  time of or as a  consequence  of the
incurrence of such Indebtedness,  the Company and the Subsidiary  Guarantors may
incur Indebtedness (including, without limitation,  Acquired Indebtedness) if on
the date of the  incurrence  of such  Indebtedness,  after giving  effect to the
incurrence thereof,  the Consolidated Fixed Charge Coverage Ratio of the Company
is greater than 2.0 to 1.0.

                  Indebtedness  of a  Person  which is  secured  by a Lien on an
asset acquired by the Company or a Restricted Subsidiary of the Company (whether
or not such  Indebtedness  is assumed by the  acquiring  Person) shall be deemed
incurred at the time of the Asset Acquisition.

SECTION 4.05.     Corporate Existence.

                  Except as otherwise  permitted by Article Five or elsewhere in
this  Indenture,  the Company  shall do or cause to be done, at its own cost and
expense,  all things necessary to preserve and keep in full force and effect its
existence.

SECTION 4.06.     Payment of Taxes.

                  The  Company  will  pay or  discharge  or  cause to be paid or
discharged,  before  the same  shall  become  delinquent,  all  material  taxes,
assessments  and  governmental  charges  levied or imposed upon it or any of its
Restricted  Subsidiaries or upon the income, profits or property of it or any of
its  Restricted  Subsidiaries,  except  (a) to the extent  that (i) such  taxes,
assessments  and  charges  are  being  contested  in good  faith by  appropriate
proceedings and (ii)  appropriate  reserves have been taken with respect to such
taxes,  assessments  and charges to the extent required by GAAP or (b) where the
failure to effect  such  payment or  discharge  is not  adverse in any  material
respect to the Holders.

SECTION 4.07.     Compliance Certificate; Notice of Default.

                  (a) The annual reports  delivered  pursuant to Section 4.08 to
the Trustee  shall be  accompanied  by an Officers'  Certificate  stating that a
review of the  activities of the Company has been made under the  supervision of
the signing Officers and further  stating,  as to each such Officer signing such
certificate,  that to the best of his  knowledge  at the date of such  Officers'
Certificate  there is no Default or Event of Default  that has  occurred  and is
continuing or, if such signers do know of such Default or Event of Default,  the
certificate  shall  describe  its  status  with  particularity.   The  Officers'
Certificate shall also notify the Trustee should the Company elect to change the
manner in which it fixes its fiscal year end.

                  (b)  So   long   as  not   contrary   to  the   then   current
recommendations  of the American Institute of Certified Public Accountants or to
the  policies  of the  Company's  independent  accountants,  the annual  reports
delivered  pursuant to Section  4.08 to the Trustee  shall be  accompanied  by a
written report of the Company's independent  accountants (who shall

                                      -40-

<PAGE>

be a firm of established  national reputation) that in conducting their audit of
the financial  statements of the Company for the most recent fiscal year nothing
has come to their  attention  that would lead them to believe  that a Default or
Event of Default  under this  Indenture  has occurred  insofar as they relate to
accounting matters or, if any such violation has occurred, specifying the nature
and period of existence thereof, it being understood that such accountants shall
not be liable  directly  or  indirectly  to any Person for any failure to obtain
knowledge of any such  violation that would not be disclosed in the course of an
audit examination conducted in accordance with GAAP.

                  (c) (i) If any Default or Event of Default has occurred and is
continuing  or (ii) if any Holder  seeks to exercise any remedy  hereunder  with
respect to a claimed  Default  under this  Indenture  or the Notes,  the Company
shall deliver to the Trustee,  at its address set forth in Section 11.02 hereof,
by registered or certified  mail or by facsimile  transmission  followed by hard
copy by registered or certified mail an Officers'  Certificate  specifying  such
event,  notice or other action and the status  thereof within five Business Days
of its becoming aware of such occurrence.

SECTION 4.08.     Commission Reports.

                  Notwithstanding  that the  Company  may not be  subject to the
reporting  requirements  of Section 13 or 15(d) of the Exchange  Act, so long as
any Notes  remain  outstanding,  the  Company  shall  provide the  Trustee,  the
Noteholders  and the  Initial  Purchasers  with  such  annual  reports  and such
information,  documents and other reports (other than exhibits) as are specified
in  Sections  13 and  15(d)  of the  Exchange  Act  and  applicable  to a U.  S.
corporation  subject to such  Sections,  such  information,  documents and other
reports  to be so  provided  within 15 days  after the times  specified  for the
filing  of  such  information,   documents  and  reports  under  such  Sections.
Notwithstanding   that  the  Company  may  not  be  subject  to  the   reporting
requirements  of Section 13 or 15(d) of the  Exchange  Act,  the  Company  will,
beginning  on the  earlier  of (x)  the  effective  date of the  Exchange  Offer
Registration  Statement and (y) 730 days following the Issue Date, file with the
Commission,  to the extent permitted,  such annual reports and such information,
documents  and other  reports as are  specified  in Sections 13 and 15(d) of the
Exchange Act and applicable to a U.S. corporation subject to such Sections, such
information, documents and other reports to be so filed within 15 days after the
times specified for the filing of such information,  documents and reports under
such Sections.  In addition,  the Company will make available,  upon request, to
any holder  and any  prospective  purchaser  of Notes the  information  required
pursuant to Rule 144A(d)(4) under the Securities Act. Following qualification of
this  Indenture  under the TIA,  the  Company  shall also  comply with the other
provisions of TIA ss. 314(a).

                  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).

                                      -41-

<PAGE>

SECTION 4.09.     Waiver of Stay, Extension or Usury Laws.

                  The Company (and each Subsidiary Guarantor, if any,) covenants
(to the extent  that it may  lawfully do so) that it will not at any time insist
upon,  plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law that would  prohibit
or forgive  the  Company or such  Subsidiary  Guarantor  from  paying all or any
portion of the  principal  of,  premium,  if any, and  interest  and  Additional
Interest, if any, on the Notes as contemplated herein,  wherever enacted, now or
at any time hereafter in force, and (to the extent that they may lawfully do so)
the Company hereby expressly waives,  and each future Subsidiary  Guarantor,  if
any, will waive, all benefit or advantage of any such law, and covenants that it
will not hinder,  delay or impede the  execution of any power herein  granted to
the  Trustee,  but will suffer and permit the  execution  of every such power as
though no such law had been enacted.

SECTION 4.10.     Limitation on Transactions with Affiliates.

                  (a) The  Company  will  not,  and will not  permit  any of its
Restricted  Subsidiaries to, directly or indirectly,  enter into any transaction
or series of related transactions (including,  without limitation, the purchase,
sale,  lease or exchange of any property or the rendering of any service)  with,
or for the benefit of, any of its Affiliates (each an "Affiliate  Transaction"),
other than (x) Affiliate  Transactions  permitted  under paragraph (b) below and
(y) Affiliate  Transactions  on terms that are no less favorable than those that
could reasonably be expected to be obtained in a comparable  transaction at such
time on an  arm's-length  basis from a Person  that is not an  Affiliate  of the
Company or such  Restricted  Subsidiary.  All Affiliate  Transactions  (and each
series of related Affiliate  Transactions  which are similar or part of a common
plan),  other than Affiliate  Transactions  permitted under paragraph (b) below,
involving  consideration  to either  party in excess  of $1.0  million  shall be
approved by the Board of Directors of the Company or such Restricted Subsidiary,
as the case may be, such approval to be evidenced by a Board Resolution  stating
that such Board of Directors has determined that such transaction  complies with
the foregoing  provisions.  If the Company or any  Restricted  Subsidiary of the
Company enters into an Affiliate  Transaction (or a series of related  Affiliate
Transactions  related  to a common  plan),  other  than  Affiliate  Transactions
permitted under paragraph (b) below,  that involves  aggregate  consideration to
either  patty  of more  than  $5.0  million,  the  Company  or  such  Restricted
Subsidiary, as the case may be, shall, prior to the consummation thereof, obtain
a favorable  opinion as to the fairness of such transaction or series of related
transactions to the Company or the relevant Restricted  Subsidiary,  as the case
may be, from a financial  point of view, from an Independent  Financial  Advisor
and file the same with the Trustee.

                  (b) The  restrictions  set  forth in  paragraph  (a) shall not
apply to (i)  compensation,  indemnification  and  other  benefits  paid or made
available (x) pursuant to the Employment Agreements, or (y) for or in connection
with services  actually  rendered and comparable to those generally paid or made
available  by  entities  engaged  in the same or similar  businesses  (including
reimbursement  or advancement  of reasonable  out-of-pocket  expenses,  loans to
officers,  directors and employees in the ordinary course of business consistent
with  past  practice  and  directors'  and  officers'  liability  insurance)  as
determined  in  good  faith  by the  Company's  Board  of  Directors  or  senior
management; (ii) transactions, expenses and payments pursuant to the terms of or
contemplated by the  Stockholders  Agreement,  the Management  Subscription  and
Stockholders

                                      -42-

<PAGE>

Agreements or the Stock Purchase  Agreement;  (iii) any  Restricted  Payments or
other payments or  transactions  expressly  permitted  under Section 4.03;  (iv)
payments  for  services  and  reimbursement  of  reasonable  expenses  under the
Management  Services  Agreement;  (v) payments to be made in connection with the
consummation of the transactions contemplated by the Stock Purchase Agreement or
the financing thereof to be received by Leonard Green & Partners,  L.P., and its
Affiliates  pursuant to the Stock  Purchase  Agreement as in effect on the Issue
Date; (vi)  transactions and payments pursuant to leases between the Company and
Richard Rutta and Kenneth  Levine,  General  Partnership  in effect on the Issue
Date as any such  leases may be  extended  or amended  from time to time;  (vii)
transactions between or among the Company and any of its Restricted Subsidiaries
or between or among such Restricted Subsidiaries; provided such transactions are
not otherwise prohibited by this Indenture;  (viii) Permitted  Investments;  and
(ix) loans or advances to officers or  employees  of the Company in the ordinary
course of  business  not to exceed  $500,000  in the  aggregate  at any one time
outstanding.

SECTION 4.11.     Conduct of Business.

                  The Company and its Restricted  Subsidiaries  shall not engage
in any businesses other than a Related Business.

SECTION 4.12.     Limitation   on  Dividend  and  Other   Payment   Restrictions
Affecting Restricted Subsidiaries.

                  The Company  will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
permit to exist or become effective any consensual encumbrance or restriction on
the ability of any Restricted  Subsidiary of the Company to (a) pay dividends or
make any other  distributions  on or in respect of its Capital  Stock;  (b) make
loans or advances or to pay any  Indebtedness  or other  obligation  owed to the
Company or any other Restricted  Subsidiary of the Company;  or (c) transfer any
of its property or assets to the Company or any other  Restricted  Subsidiary of
the Company,  except for such encumbrances or restrictions  existing under or by
reason  of: (1)  applicable  law;  (2) this  Indenture;  (3) any Bank  Facility,
provided that the provisions relating to such encumbrance or restriction are not
materially more  restrictive  than those in the Bank Facility as in existence on
the Issue  Date,  as any such  restriction  may apply to any  present  or future
Restricted Subsidiary of the Company; (4) customary non-assignment provisions of
any contract and customary  provisions  restricting  assignment or subletting in
any lease  governing a leasehold  interest of any  Restricted  Subsidiary of the
Company, or any customary  restriction on the ability of a Restricted Subsidiary
of the Company to dividend,  distribute  or  otherwise  transfer any asset which
secures  Purchase  Money  Indebtedness  of such  Subsidiary;  (5) any instrument
governing  Acquired  Indebtedness,  which  encumbrance  or  restriction  is  not
applicable to any Person, or the properties or assets of any Person,  other than
the  Person  or  the  properties  or  assets  of the  Person  so  acquired;  (6)
restrictions  with respect to a Subsidiary of the Company imposed  pursuant to a
binding  agreement  which has been entered into for the sale or  disposition  of
Capital Stock or assets of such  Subsidiary,  provided such  restrictions  apply
solely to the Capital Stock or assets of such  Subsidiary  which are being sold;
(7) customary  restrictions  imposed on the transfer of  copyrighted or patented
materials;  or (8) an agreement governing Indebtedness incurred to Refinance the
Indebtedness issued, assumed or incurred pursuant to an agreement referred to in
clause (2), (3) or (5) above; provided, however, that the provisions relating to
such  encumbrance

                                      -43-

<PAGE>

or  restriction  contained  in any such  Indebtedness  are not  materially  more
restrictive  than the  provisions  relating to such  encumbrance  or restriction
contained  in   agreements   referred  to  in  such  clause  (2),  (3)  or  (5).
Notwithstanding  the  foregoing,  Liens  not  prohibited  by the  terms  of this
Indenture shall not be considered a restriction on the ability of the applicable
Subsidiary to transfer any assets.

SECTION 4.13.     Limitation on Liens.

                  The Company  will not, and will not cause or permit any of its
Restricted  Subsidiaries to, directly or indirectly,  create,  incur,  assume or
permit or suffer to exist any Liens (other than  Permitted  Liens)  securing any
Indebtedness  of any kind  against or upon any property or assets of the Company
or any of its  Restricted  Subsidiaries  whether  owned  on the  Issue  Date  or
acquired after the Issue Date, or any proceeds therefrom, unless (i) in the case
of Liens securing  Indebtedness that is expressly subordinate or junior in right
of  payment  to the Notes,  the Notes are  secured  by a Lien on such  property,
assets or  proceeds  that is senior in  priority  to such  Liens and (ii) in all
other cases, the Notes are equally and ratably secured.

SECTION 4.14.     Change of Control.

                  (a) Upon the  occurrence  of a Change of Control,  the Company
shall make an offer to purchase (the "Change of Control  Offer") all of the then
outstanding  Notes  pursuant to the offer  described in paragraph (b) below at a
purchase price equal to 101 % of the principal amount thereof,  plus accrued and
unpaid interest,  if any, thereon to the date of purchase  (subject to the right
of Holders of record on a Record  Date to receive  interest  due on an  Interest
Payment  Date that is on or prior to such date of purchase and subject to clause
(b)(9) below).

                  (b) Within 30 days  following  the date upon which a Change of
Control occurred,  the Company shall send, by first class mail, a notice to each
Holder,  with a copy to the Trustee,  which notice shall govern the terms of the
Change  of  Control  Offer.   The  notice  to  the  Holders  shall  contain  all
instructions and materials reasonably necessary to enable such Holders to tender
Notes pursuant to the Change of Control Offer. Such notice shall state:

                  (1) that the Change of Control Offer is being made pursuant to
           this  Section  4.14 and  that all  Notes  properly  tendered  and not
           withdrawn will be accepted for payment;

                  (2) the  purchase  price  (including  the  amount  of  accrued
           interest,  if any) and the purchase  date,  which shall be no earlier
           than 30 days nor  later  than 60 days  from the date  such  notice is
           mailed,  other than as may be required by law (the "Change of Control
           Payment Date");

                  (3) that  any  Note  not  tendered  will  continue  to  accrue
           interest;

                  (4) that,  unless  the  Company  defaults  in  making  payment
           therefor,  any Note  accepted  for payment  pursuant to the Change of
           Control Offer shall cease to accrue  interest on and after the Change
           of Control Payment Date;

                                      -44-

<PAGE>

                  (5) that Holders electing to have a Note purchased pursuant to
           a Change of Control  Offer will be required to  surrender  such Note,
           with the form  entitled  "Option of Holder to Elect  Purchase" on the
           reverse of the Note  completed,  to the Paying  Agent at the  address
           specified  in the notice  prior to the close of business on the third
           Business Day prior to the Change of Control Payment Date;

                  (6) that Holders will be entitled to withdraw  their  election
           if the Paying Agent receives, not later than the close of business on
           the third Business Day prior to the Change of Control Payment Date, a
           telegram,  telex,  facsimile transmission or letter setting forth the
           name of the  Holder,  the  principal  amount of the Notes the  Holder
           delivered   for  purchase  and  a  statement   that  such  Holder  is
           withdrawing  his  election to have such Notes  purchased  or portions
           thereof;

                  (7) that  Notes  will be  purchased  in part only in  integral
           multiples of $1,000 and that Holders whose Notes are  purchased  only
           in part will be issued new Notes in a principal  amount  equal to the
           unpurchased portion of the Notes surrendered;

                  (8) a brief  description of the event resulting in such Change
           of Control; and

                  (9) if the  Change of Control  Payment  Date is after a Record
           Date and prior to the Interest Payment Date to which such Record Date
           relates, that the accrued interest on the Notes purchased pursuant to
           the Change of Control  Offer  shall be payable to the Holders of such
           Notes on the  relevant  Record Date and no accrued  interest  will be
           included in the purchase  price of the Notes  purchased on the Change
           of Control Payment Date.

                  On or before the Change of Control  Payment Date,  the Company
shall (i)  accept  for  payment  Notes or  portions  thereof  properly  tendered
pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent U.S.
Legal Tender  sufficient to pay the purchase price,  including accrued interest,
if any,  of all Notes so  tendered  and (iii)  deliver to the  Trustee  Notes so
accepted  together with an Officers'  Certificate  stating the Notes or portions
thereof being purchased by the Company.  The Paying Agent shall promptly mail to
the  Holders of Notes so  accepted  payment in an amount  equal to the  purchase
price,  including  accrued  interest,  if any,  thereon  and the  Trustee  shall
promptly  authenticate  and mail to such  Holders new Notes  equal in  principal
amount to any  unpurchased  portion of the Notes  surrendered.  Any Notes not so
accepted  shall be  promptly  mailed by the Company to the Holder  thereof.  For
purposes of this Section 4.14, the Trustee shall act as the Paying Agent.

                  Any amounts  remaining after the purchase of Notes pursuant to
a Change of Control Offer shall be returned by the Trustee to the Company.

                  The Company shall comply with the  requirements  of Rule 14e-1
under the Exchange Act and any other securities laws and regulations  thereunder
to the extent such laws and  regulations  are applicable in connection  with the
purchase  of Notes  pursuant  to a Change of  Control  Offer.  To the extent the
provisions of any securities  laws or  regulations  conflict with the provisions
under this Section 4.14, the Company shall comply with the applicable securities
laws

                                      -45-

<PAGE>

and regulations  and shall not be deemed to have breached its obligations  under
this Section 4.14 by virtue thereof.

SECTION 4.15.     Limitation on Asset Sales.

                  The  Company  will  not,  and  will  not  permit  any  of  its
Restricted  Subsidiaries to,  consummate an Asset Sale unless (i) the Company or
the applicable Restricted Subsidiary, as the case may be, receives consideration
at the time of such Asset Sale at least  equal to the fair  market  value of the
assets  sold or  otherwise  disposed  of (as  determined  in good  faith  by the
Company's Board of Directors),  (ii) at least 75% of the consideration  received
for the assets sold by the Company or the Restricted Subsidiary, as the case may
be, from such Asset Sale shall be in the form of cash or Cash Equivalents and is
received at the time of such disposition;  provided,  however, that for purposes
of this clause (ii) only, (A) notes  received by the Company or such  Restricted
Subsidiary as  consideration  for an Asset Sale that are converted  into cash or
Cash Equivalents within 30 days following the consummation of such Asset Sale or
(B) the  assumption  by the  purchaser  of assets  pursuant  to an Asset Sale of
Indebtedness  of  the  Company  or  such  Restricted   Subsidiary   (other  than
Indebtedness  that is by its terms  subordinate  to the Notes or any  Guarantee)
shall, in each case of the immediately  preceding clauses (A) and (B), be deemed
to be cash or Cash Equivalents at the time of such Asset Sale in an amount equal
to, in the case of clause (A), the amount of cash or Cash  Equivalents  realized
on  such  conversion  and,  in  the  case  of  clause  (B),  the  amount  of the
Indebtedness so assumed,  as reflected on the balance sheet of the Company,  and
(iii)  following the  consummation  of an Asset Sale, the Company shall or cause
such  Restricted  Subsidiary,  within 365 days of receipt  thereof either (A) to
apply  the  Net  Cash  Proceeds  related  to  such  Asset  Sale  to  prepay  any
Indebtedness  that by its terms is not subordinate to the Notes or any Guarantee
(and to permanently reduce the commitments,  if any, with respect thereto),  (B)
to make a Permitted  Investment or an  investment in properties  and assets that
replace the properties and assets that were the subject of such Asset Sale or in
properties  and assets  that will be used in a Related  Business  (collectively,
"Replacement  Assets")  or  (C)  a  combination  of  prepayment  and  investment
permitted by the foregoing clauses (iii)(A) and (iii)(B). On the 365th day after
an Asset Sale,  or such earlier  date,  if any, as the Board of Directors of the
Company  determines  not to apply or cause to be applied  the Net Cash  Proceeds
relating  to such  Asset  Sale as set forth in clauses  (iii)(A),  (iii)(B)  and
(iii)(C) of the next  preceding  sentence  (each,  a "Net Proceeds Offer Trigger
Date"),  such aggregate  amount of Net Cash Proceeds which have not been applied
on or before the  applicable  Net  Proceeds  Offer  Trigger Date as permitted in
clauses (iii)(A),  (iii)(B) and (iii)(C) of the next preceding  sentence (or, in
the case of a Net Proceeds Offer Trigger Date occurring prior to such 365th day,
the  aggregate  amount of Net Cash  Proceeds  that the Board of Directors of the
Company has  determined  not to so apply) (each a "Net Proceeds  Offer  Amount")
shall be applied by the Company or such  Restricted  Subsidiary to make an offer
to  purchase  (the "Net  Proceeds  Offer")  on a date (the "Net  Proceeds  Offer
Payment  Date") not less than 30 nor more than 45 days  following the applicable
Net Proceeds Offer Trigger Date,  from all Holders on a pro rata basis (and on a
pro rata basis with the holders of any other Indebtedness of the Company that is
not by its terms  subordinate  in right of  payment  to the Notes  with  similar
provisions requiring the Company to offer to purchase such Indebtedness with the
proceeds  of  asset  sales),  that  principal  amount  of Notes  and such  other
Indebtedness  equal to the Net Proceeds Offer Amount at a price,  in the case of
the Notes,  equal to 100% of the principal  amount of the Notes to be purchased,
plus accrued and unpaid interest  thereon,  to the date of purchase  (subject to
the right of Holders

                                      -46-

<PAGE>

of record on a Record Date to receive  interest due on an Interest  Payment Date
that is on or prior to such date of  purchase  and subject to clause (8) below);
provided,  however, that if at any time any non-cash  consideration  received by
the Company or any Restricted  Subsidiary of the Company, as the case may be, in
connection  with any Asset Sale is converted into or sold or otherwise  disposed
of for cash (other than  interest  received  with  respect to any such  non-cash
consideration),   then  such  conversion  or  disposition  shall  be  deemed  to
constitute an Asset Sale  hereunder  and the Net Cash Proceeds  thereof shall be
applied in  accordance  with this  Section  4.15.  The Company may defer the Net
Proceeds Offer until there is an aggregate  unutilized Net Proceeds Offer Amount
equal to or in excess of $5.0 million resulting from one or more Asset Sales (at
which time,  the entire Net Proceeds  Offer  Amount,  and not just the amount in
excess  of  $5.0  million,  shall  be  applied  as  required  pursuant  to  this
paragraph).

                  In the event of the  transfer  of  substantially  all (but not
all) of the property and assets of the Company and its  Restricted  Subsidiaries
as an entirety to a Person in a transaction  permitted  under Section 5.01,  the
Surviving  Entity shall be deemed to have sold the  properties and assets of the
Company and its Restricted  Subsidiaries not so transferred for purposes of this
Section  4.15,  and shall comply with the  provisions  of this Section 4.15 with
respect to such deemed sale as if it were an Asset Sale.  In addition,  the fair
market  value of such  properties  and assets of the  Company or its  Restricted
Subsidiaries  deemed  to be sold  shall be deemed  to be Net Cash  Proceeds  for
purposes of this Section 4.15.

                  Notwithstanding the two immediately preceding paragraphs,  the
Company and its Restricted Subsidiaries will be permitted to consummate an Asset
Sale without  complying  with such  paragraphs to the extent (i) at least 75% of
the consideration for such Asset Sale constitutes Replacement Assets and cash or
Cash  Equivalents  and (ii) such Asset Sale is for fair market  value;  provided
that any  consideration  not  constituting  Replacement  Assets  received by the
Company or any of its Restricted  Subsidiaries in connection with any Asset Sale
permitted to be  consummated  under this  paragraph  shall  constitute  Net Cash
Proceeds subject to the provisions of the two preceding paragraphs.

                  Notice of each Net  Proceeds  Offer  pursuant to this  Section
4.15 shall be mailed or caused to be mailed, by first class mail, by the Company
within 25 days  following the  applicable Net Proceeds Offer Trigger Date to all
Holders,  with a copy to the Trustee.  The notice shall contain all instructions
and  materials  reasonably  necessary  to enable  such  Holders to tender  Notes
pursuant to the Net Proceeds Offer and shall state:

                  (1) that the Net Proceeds Offer is being made pursuant to this
           Section 4.15 and that all Notes  properly  tendered and not withdrawn
           will  be  accepted  for  payment;  provided,  however,  that  if  the
           principal  amount  of  Notes  properly  tendered  and not  withdrawn,
           together with the principal amount of any other Indebtedness properly
           tendered and not withdrawn, in the Net Proceeds Offer exceeds the Net
           Proceeds  Offer  Amount,  the Company shall select the Notes and such
           other Indebtedness, if any, to be purchased on a pro rata basis based
           on their  respective  principal  amounts  (provided  that no Notes or
           other  Indebtedness with a principal amount of less than $1,000 shall
           be  purchased  in  part  and  Notes  and  other  Indebtedness  with a
           principal  amount in excess of $1,000  shall be purchased in integral
           multiples of $1,000 only);

                                      -47-

<PAGE>

                  (2) the Net Proceeds Offer price for the Notes  (including the
           amount  of  accrued  interest,  if any)  and the Net  Proceeds  Offer
           Payment Date;

                  (3) that  any  Note  not  tendered  will  continue  to  accrue
           interest;

                  (4) that,  unless  the  Company  defaults  in  making  payment
           therefor,  any Note accepted for payment pursuant to the Net Proceeds
           Offer  shall cease to accrue  interest on and after the Net  Proceeds
           Offer Payment Date;

                  (5) that Holders electing to have a Note purchased pursuant to
           the Net Proceeds Offer will be required to surrender such Note,  with
           the form entitled "Option of Holder to Elect Purchase" on the reverse
           of the Note completed,  to the Paying Agent at the address  specified
           in the notice  prior to the close of business  on the third  Business
           Day prior to the Net Proceeds Offer Payment Date;

                  (6) that Holders will be entitled to withdraw  their  election
           if the Paying Agent receives, not later than the close of business on
           the third  Business Day prior to the Net Proceeds Offer Payment Date,
           a  facsimile  transmission  or letter  setting  forth the name of the
           Holder,  the principal  amount of the Notes the Holder  delivered for
           purchase and a statement that such Holder is withdrawing his election
           to have such Notes (or portions thereof) purchased;

                  (7) that  Notes  will be  purchased  in part only in  integral
           multiples of $1,000 and that Holders whose Notes are  purchased  only
           in part will be issued new Notes in a principal  amount  equal to the
           unpurchased portion of the Notes surrendered; and

                  (8) if the Net Proceeds  Offer  Payment Date is after a Record
           Date and prior to the Interest Payment Date to which such Record Date
           relates, that the accrued interest on the Notes purchased pursuant to
           the Net Proceeds  Offer shall be payable to the Holders of such Notes
           on the relevant Record Date and no accrued  interest will be included
           in the  purchase  price of the Notes  purchased  on the Net  Proceeds
           Offer Date.

                  On or before the Net Proceeds  Offer Payment Date, the Company
shall,  subject to the proration  provisions  referred to above,  (i) accept for
payment Notes or portions thereof properly tendered pursuant to the Net Proceeds
Offer,  (ii) deposit with the Paying Agent U.S.  Legal Tender  sufficient to pay
the  purchase  price,  including  accrued  interest,  if any, of all Notes to be
purchased and (iii)  deliver to the Trustee  Notes so accepted  together with an
Officers'  Certificate  stating the Notes or portions thereof being purchased by
the  Company.  The Paying Agent shall  promptly  mail to the Holders of Notes so
accepted  payment in an amount equal to the purchase  price,  including  accrued
interest,  if any, thereon and the Trustee shall promptly  authenticate and mail
to such Holders new Notes equal in principal  amount to any unpurchased  portion
of the Notes surrendered.  Any Notes not so accepted shall be promptly mailed by
the Company to the Holder  thereof.  For  purposes  of this  Section  4.17,  the
Trustee shall act as the Paying Agent.

                  Any Net  Proceeds  Offer shall  remain open for a period of at
least 20 Business Days (or such longer period as may be required by law).

                                      -48-

<PAGE>

                  The Company  will comply with the  requirements  of Rule 14e-1
under the Exchange Act and any other securities laws and regulations  thereunder
to the extent such laws and  regulations  are applicable in connection  with the
purchase  of Notes  pursuant  to a Net  Proceeds  Offer.  To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
this Section 4.15, the Company shall comply with the applicable  securities laws
and regulations  and shall not be deemed to have breached its obligations  under
this Section 4.15 by virtue thereof.

                  Upon  completion  of a Net Proceeds  Offer,  the amount of Net
Cash  Proceeds  will be reset  at  zero.  Accordingly,  to the  extent  that the
aggregate  amount of Notes and other  Indebtedness  tendered  pursuant  to a Net
Proceeds Offer is less than the Net Cash Proceeds Offer Amount,  the Company may
use any remaining Net Cash Proceeds for general corporate purposes.

SECTION 4.16.     Limitation on Preferred Stock of Restricted Subsidiaries.

                  The Company will not permit any of its Restricted Subsidiaries
to issue any  Preferred  Stock  (other than to the Company or to a Wholly  Owned
Restricted  Subsidiary  of the  Company)  or permit any Person  (other  than the
Company or a Wholly  Owned  Restricted  Subsidiary  of the  Company)  to own any
Preferred Stock of any Restricted Subsidiary of the Company; provided,  however,
that  any  Restricted  Subsidiary  of the  Company  that  is not a  Wholly-Owned
Restricted  Subsidiary  of the  Company may issue  Preferred  Stock to, and such
Preferred  Stock  may be owned  by,  the  holders  of the  Common  Stock of such
Subsidiary in the same  proportions  as their  relative  ownership of the Common
Stock of such Subsidiary.

SECTION 4.17.     Future Guarantees.

                  The Company  will cause any Person that shall  become a Wholly
Owned  Restricted  Subsidiary  of the Company and has total assets having a book
value  of more  than  $50,000,  and  each  future  non-Wholly  Owned  Restricted
Subsidiary of the Company that guarantees any other  Indebtedness of the Company
or a Subsidiary  Guarantor,  to become a Subsidiary  Guarantor by executing  and
delivering an appropriate  supplemental indenture. In addition, other Restricted
Subsidiaries  of the Company may,  but are not  required,  to become  Subsidiary
Guarantors.

                                  ARTICLE Five

                              SUCCESSOR CORPORATION

SECTION 5.01.     Merger, Consolidation and Sale of Assets.

                  The  Company  will not, in a single  transaction  or series of
related  transactions,  consolidate  or merge with or into any Person,  or sell,
assign, transfer,  lease, convey or otherwise dispose of (or cause or permit any
Subsidiary of the Company to sell, assign, transfer,  lease, convey or otherwise
dispose of) all or substantially  all of the Company's  assets  (determined on a
consolidated basis for the Company and its Subsidiaries)  whether as an entirety
or substantially as an entirety to any Person unless: (i) either (1) the Company
shall be the  surviving or  con-

                                      -49-

<PAGE>

tinuing corporation or (2) the Person (if other than the Company) formed by such
consolidation  or into which the Company is merged or the Person which  acquires
by sale,  assignment,  transfer,  lease,  conveyance  or other  disposition  the
properties  and  assets  of  the  Company  and  of  the  Company's  Subsidiaries
substantially   as  an  entirety  (the  "Surviving   Entity")  (x)  shall  be  a
corporation,  limited  liability company or similar entity organized and validly
existing  under  the laws of the  United  States  or any  State  thereof  or the
District of Columbia and (y) shall expressly assume,  by supplemental  indenture
(in form and substance  satisfactory to the Trustee),  executed and delivered to
the Trustee,  the due and punctual payment of the principal of, and premium,  if
any, and interest and Additional  Interest,  if any, on all of the Notes and the
performance of every covenant of the Notes and this Indenture on the part of the
Company to be performed or observed;  (ii)  immediately  after giving  effect to
such  transaction  and the assumption  contemplated  by clause  (i)(2)(y)  above
(including giving effect to any Indebtedness and Acquired  Indebtedness incurred
or  anticipated  to be  incurred  in  connection  with  or in  respect  of  such
transaction),  the  Company or such  Surviving  Entity,  as the case may be, (1)
shall have a  Consolidated  Net Worth equal to or greater than the  Consolidated
Net Worth of the Company  immediately prior to such transaction and (2) shall be
able to incur at least $1.00 of additional  Indebtedness  (other than  Permitted
Indebtedness) pursuant to Section 4.04; (iii) immediately before and immediately
after giving  effect to such  transaction  and the  assumption  contemplated  by
clause  (i)(2)(y) above  (including,  without  limitation,  giving effect to any
Indebtedness  and Acquired  Indebtedness  incurred or anticipated to be incurred
and any Lien granted in connection  with or in respect of the  transaction),  no
Default or Event of Default shall have  occurred or be  continuing  and (iv) the
Company or the Surviving Entity shall have delivered to the Trustee an Officers'
Certificate  and an Opinion of Counsel,  each stating  that such  consolidation,
merger, sale, assignment,  transfer, lease, conveyance or other disposition and,
if a  supplemental  indenture is required in connection  with such  transaction,
such  supplemental  indenture,  comply with the  applicable  provisions  of this
Indenture and that all conditions  precedent in this Indenture  relating to such
transaction have been satisfied.

                  For  purposes  of  the  foregoing,  the  transfer  (by  lease,
assignment,   sale  or  otherwise,   in  a  single   transaction  or  series  of
transactions) of all or substantially  all of the properties or assets of one or
more  Subsidiaries of the Company the Capital Stock of which  constitutes all or
substantially  all of the properties and assets of the Company,  shall be deemed
to be the transfer of all or  substantially  all of the properties and assets of
the Company.

                  The foregoing  provisions  shall not apply to (w) any transfer
of the  properties or assets of a Subsidiary of the Company to the Company or to
a Wholly  Owned  Restricted  Subsidiary  of the  Company,  (x) any  merger  of a
Restricted  Subsidiary  of the Company into the Company or (y) any merger of the
Company  into  a  Restricted  Subsidiary  of  the  Company.  In  addition,   the
requirements of clause (ii)(2) of the first paragraph of this Section 5.01 shall
not apply to any merger into the Company of a Person that (i) owns more than 50%
of the  outstanding  Common  Stock of the Company  and (ii) has no  Indebtedness
(other than any  guarantees of  Indebtedness  of the Company and the  Subsidiary
Guarantors).

SECTION 5.02.     Successor Person Substituted.

                  Upon any consolidation,  combination or merger or any transfer
of all or substantially  all of the assets of the Company in accordance with the
foregoing, in which the

                                      -50-

<PAGE>

Company is not the continuing  corporation,  the successor Person formed by such
consolidation  or into which the Company is merged or to which such  conveyance,
lease or transfer  is made shall  succeed to, and be  substituted  for,  and may
exercise  every right and power of, the  Company  under this  Indenture  and the
Notes with the same effect as if such Surviving Entity had been named as such.

SECTION 5.03.     Merger,   Consolidation  and  Sale  of  Assets  of  Subsidiary
Guarantors.

                  Each Subsidiary Guarantor (other than any Subsidiary Guarantor
whose Guarantee, is to be released in accordance with the terms of its Guarantee
and this  Indenture  in  connection  with  any  transaction  complying  with the
provisions of Section 4.15 or as otherwise provided in this Indenture) will not,
and  the  Company  will  not  cause  or  permit  any  Subsidiary  Guarantor  to,
consolidate with or merge into any Restricted  Subsidiary of the Company that is
not a Subsidiary Guarantor unless such Restricted Subsidiary (if such Restricted
Subsidiary is the surviving entity in such transaction)  assumes by supplemental
indenture all of the obligations of such Subsidiary  Guarantor in respect of its
Guarantee.

                                  ARTICLE Six

                              DEFAULT AND REMEDIES

SECTION 6.01.     Events of Default.

                  An "Event of Default" occurs in the following circumstances:

                  (i) the  failure  to pay  interest  on any Notes when the same
           becomes due and payable and the default  continues for a period of 30
           days;

                  (ii) the failure to pay the principal on any Notes,  when such
           principal  becomes due and payable,  at maturity,  upon redemption or
           otherwise  (including  the  failure  to make a  required  payment  to
           purchase  Notes  tendered  pursuant to a Change of Control Offer or a
           Net Proceeds Offer);

                  (iii) the failure of the Company to comply with Article Five;

                  (iv) a default in the  observance or  performance of any other
           covenant or  agreement  contained  in this  Indenture  which  default
           continues for a period of 30 days after the Company  receives written
           notice  specifying  the default (and  demanding  that such default be
           remedied)  from the  Trustee  or the  Holders  of at least 25% of the
           outstanding principal amount of the Notes;

                  (v) the failure to pay at final maturity (giving effect to any
           applicable  grace periods and any  extensions  thereof) the principal
           amount  of  any   Indebtedness  of  the  Company  or  any  Restricted
           Subsidiary of the Company,  or the  acceleration  of the final stated
           maturity of any such  Indebtedness by reason of a default or event of
           default in respect of such Indebtedness, in any case if the aggregate
           principal  amount of such  Indebtedness,  together with the principal
           amount of any other such  Indebtedness  in

                                      -51-

<PAGE>

           default for failure to pay  principal at final  maturity or which has
           been so accelerated, aggregates $5.0 million or more at any time;

                  (vi) one or more judgments in an aggregate amount in excess of
           $5.0 million shall have been  rendered  against the Company or any of
           its Restricted  Subsidiaries and such judgments remain  undischarged,
           unpaid or  unstayed  for a period of 60 days after such  judgment  or
           judgments become final and non-appealable;

                  (vii) the Company or any of its Significant  Subsidiaries  (i)
           admits in writing its  inability  to pay its debts  generally as they
           become due, (ii) commences a voluntary  case or proceeding  under any
           Bankruptcy Law with respect to itself, (iii) consents to the entry of
           a judgment,  decree or order for relief  against it in an involuntary
           case or  proceeding  under any  Bankruptcy  Law, (iv) consents to the
           appointment  of a  Custodian  of it or for  substantially  all of its
           property,  (v)  consents to or  acquiesces  in the  institution  of a
           bankruptcy  or  an  insolvency   proceeding   against  it  under  any
           Bankruptcy  Law, (vi) makes a general  assignment  for the benefit of
           its creditors or (vii) takes any partnership or corporate  action, as
           the case may be, to authorize or effect any of the foregoing;

                  (viii) a court of  competent  jurisdiction  enters a judgment,
           decree or order for relief in  respect  of the  Company or any of its
           Significant  Subsidiaries in an involuntary  case or proceeding under
           any  Bankruptcy  Law,  which shall (i)  approve as  properly  filed a
           petition   seeking   reorganization,   arrangement,   adjustment   or
           composition  in  respect  of the  Company  or any of its  Significant
           Subsidiaries,  (ii)  appoint a Custodian of the Company or any of its
           Significant  Subsidiaries or for substantially all of the property of
           any of them or (iii)  order  the  winding-up  or  liquidation  of the
           affairs of the Company or any of its  Significant  Subsidiaries;  and
           such  judgment,  decree or order shall remain  unstayed and in effect
           for a period of 60 consecutive days; or

                  (ix) the  Guarantee of any  Subsidiary  Guarantor is held by a
           final  non-appealable  order  or  judgment  of a court  of  competent
           jurisdiction to be  unenforceable or invalid or ceases for any reason
           to be in full force and effect  (other  than in  accordance  with the
           terms of this  Indenture) or any  Subsidiary  Guarantor or any Person
           acting on behalf of any  Subsidiary  Guarantor  denies or  disaffirms
           such Subsidiary  Guarantor's  obligations  under its Guarantee (other
           than by reason of a release  of such  Subsidiary  Guarantor  from its
           Guarantee in accordance with the terms of this Indenture).

SECTION 6.02.     Acceleration.

                  If an  Event  of  Default  (other  than an  Event  of  Default
specified  in  clause  (vii) or  (viii)  of  Section  6.01)  shall  occur and be
continuing,  the Trustee or the Holders of at least 25% in  principal  amount of
outstanding Notes may declare the principal of, premium, if any, and accrued and
unpaid interest and Additional Interest, if any, on all the outstanding Notes to
be due and  payable  by  notice  in  writing  to the  Company  and  the  Trustee
specifying  the  respective  Event  of  Default  and  that  it is a  "notice  of
acceleration" (the "Acceleration Notice"), and the same shall become immediately
due and payable.  If an Event of Default  specified in clause (vii) or (viii) of

                                      -52-

<PAGE>

Section  6.01  occurs  and is  continuing,  then all  unpaid  principal  of, and
premium,  if any, and accrued and unpaid  interest and Additional  Interest,  if
any, on all of the outstanding  Notes shall ipso facto become and be immediately
due and payable  without any declaration or other act on the part of the Trustee
or any Holder.

                  At any time after a declaration of  acceleration  with respect
to the Notes as described in the preceding paragraph,  the Holders of a majority
in principal amount of the Notes may rescind and cancel such declaration and its
consequences  (i) if the  rescission  would not  conflict  with any  judgment or
decree,  (ii) if all existing Events of Default have been cured or waived except
nonpayment  of principal or interest  that has become due solely  because of the
acceleration,  (iii) to the  extent  the  payment  of such  interest  is lawful,
interest on overdue  installments of interest and overdue  principal,  which has
become due otherwise than by such  declaration of  acceleration,  has been paid,
(iv) if the  Company  has paid  the  Trustee  its  reasonable  compensation  and
reimbursed the Trustee for its reasonable  expenses,  disbursements and advances
and (v) in the event of the cure or waiver  of an Event of  Default  of the type
described  in clause  (vii) or (viii) of Section  6.01,  the Trustee  shall have
received an Officers'  Certificate  and an Opinion of Counsel that such Event of
Default has been cured or waived. No such rescission shall affect any subsequent
Default or impair any right consequent thereto.

SECTION 6.03.     Other Remedies.

                  If an Event of Default occurs and is  continuing,  the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of, premium, if any, and interest and Additional  Interest,
if any, on the Notes or to enforce the performance of any provision of the Notes
or this Indenture.

                  The  Trustee  may  maintain a  proceeding  even if it does not
possess any of the Notes or does not produce  any of them in the  proceeding.  A
delay or omission by the Trustee or any  Noteholder 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.  No remedy is
exclusive of any other  remedy.  All  available  remedies are  cumulative to the
extent permitted by law.

SECTION 6.04.     Waiver of Past Defaults.

                  Subject to  Sections  2.10 and 9.02,  the  Holders of not less
than a majority in principal  amount of the outstanding  Notes by written notice
to the Trustee or by written consent may waive any existing  Default or Event of
Default and its  consequences,  except a Default in the payment of principal of,
premium, if any, and interest and Additional Interest,  if any, on any Note. The
Company shall deliver to the Trustee an Officers'  Certificate  stating that the
requisite  percentage  of Holders have  consented  to such waiver and  attaching
copies of such  consents.  When a Default or Event of  Default is waived,  it is
cured and ceases.

SECTION 6.05.     Control by Majority.

                  The Holders of not less than a majority in principal amount of
the  outstanding  Notes may direct the time,  method and place of conducting any
proceeding  for any remedy  available to the Trustee or exercising  any trust or
power conferred on it. Subject to Section 7.01,

                                      -53-

<PAGE>

however,  the Trustee may refuse to follow any direction that conflicts with any
law or this Indenture,  that the Trustee determines may be unduly prejudicial to
the rights of  another  Noteholder,  or that may,  in the sole  judgment  of the
Trustee,  give rise to or subject the Trustee to  personal  liability;  provided
that the Trustee may take any other action deemed proper by the Trustee.

                  In the  event the  Trustee  takes any  action or  follows  any
direction  pursuant  to  this  Indenture,  the  Trustee  shall  be  entitled  to
indemnification  satisfactory to it in its sole  discretion  against any loss or
expense caused by taking such action or following such direction.

SECTION 6.06.     Limitation on Suits.

                  A  Noteholder  may not pursue any remedy with  respect to this
Indenture or the Notes unless:

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

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

                  (3) such  Holders  offer  and,  if  requested,  provide to the
           Trustee  indemnity  satisfactory  to the Trustee in its sole judgment
           against any loss, liability or expense;

                  (4) the Trustee does not comply with the request  described in
           clause (2) above within 60 days after  receipt  thereof and the offer
           described  in clause (3) above and, if  requested,  the  provision of
           indemnity; and

                  (5)  during  such  60-day  period  the  Holder or Holders of a
           majority in principal amount of the outstanding Notes do not give the
           Trustee a written direction which, in the opinion of the Trustee,  is
           inconsistent with the request.

                  A  Noteholder  may not use this  Indenture  to  prejudice  the
rights of another  Noteholder  or to obtain a preference  or priority  over such
other Noteholder.

SECTION 6.07.     Rights  of  Holders  To  Receive  Payment;  Right of  Majority
Holders to Enforce Indenture.

                  Notwithstanding any other provision of this Indenture, (i) the
right of any Holder of a Note to institute  suit for  enforcement  of payment of
the principal of, premium, if any, and interest and Additional Interest, if any,
on such Note on or after the respective due dates expressed in such Note or (ii)
the right of Holders of a majority in principal amount of the outstanding  Notes
to  institute  any  proceeding  with  respect  to this  Indenture  or any remedy
thereunder,  including, without limitation,  acceleration, shall not be impaired
or affected without the written consent of such Holder in the case of (i) or the
Holders of a majority in principal  amount of the outstanding  Notes in the case
of (ii);  provided that upon  institution  of any  proceeding or exercise of any
remedy, such Holder or Holders provide the Trustee with prompt notice hereof.

                                      -54-

<PAGE>

SECTION 6.08.     Collection Suit by Trustee.

                  If an Event of Default in payment  of  principal  or  interest
specified  in clause (i) or (ii) of Section 6.01 occurs and is  continuing,  the
Trustee may recover  judgment in its own name and as trustee of an express trust
against  the Company or any other  obligor on the Notes for the whole  amount of
principal and accrued interest and fees remaining unpaid, together with interest
on overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate per annum
borne by the Notes and such further  amount as shall be  sufficient to cover the
costs and expenses of collection, including the actual, documented compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

SECTION 6.09.     Trustee May File Proofs of Claim.

                  The Trustee may 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
Noteholders  allowed in any judicial  proceedings  relating to the Company,  any
Subsidiaries  of the Company,  their  creditors  or their  property and shall be
entitled  and  empowered  to collect and  receive  any moneys or other  property
payable or  deliverable  on any such claims and to distribute  the same, and any
Custodian  in any  such  judicial  proceedings  is  hereby  authorized  by  each
Noteholder  to make such  payments  to the  Trustee  and,  in the event that the
Trustee  shall  consent  to  the  making  of  such  payments   directly  to  the
Noteholders,  to pay to the  Trustee  any  amount  due to it for the  reasonable
compensation, expenses, disbursements and advances of the Trustee, its agent and
counsel,  and any other  amounts due the Trustee  under  Section  7.07.  Nothing
herein  contained  shall be deemed to  authorize  the  Trustee to  authorize  or
consent  to or  accept  or  adopt  on  behalf  of any  Noteholder  any  plan  of
reorganization,  arrangement,  adjustment or composition  affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Noteholder in any such proceeding.

SECTION 6.10.     Priorities.

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

                  First:  to the Trustee for amounts due under Section 7.07;

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

                  Third:  to the Company.

                  The  Trustee,  upon  prior  notice to the  Company,  may fix a
record date and payment  date for any  payment to  Noteholders  pursuant to this
Section 6.10.

                                      -55-

<PAGE>

SECTION 6.11.     Undertaking for Costs.

                  Each party to this  Indenture  agrees  and each  Holder of any
Note by its acceptance  thereof shall be deemed to have agreed that, 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 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 and expenses,
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 6.11
does not apply to a suit  instituted by the Company,  any suit instituted by the
Trustee,  any suit  instituted by a Holder pursuant to Section 6.07, or any suit
instituted  by a Holder or Holders of more than 10% in  principal  amount of the
outstanding Notes.

                                 ARTICLE Seven

                                     TRUSTEE

SECTION 7.01.     Duties of Trustee.

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

                  (b)  Except  during  the  continuance  of an Event of  Default
actually known to a Responsible Officer of the Trustee:

                  (1)  The  Trustee  need  perform  only  those  duties  as  are
           expressly  and  specifically  set forth  herein  and no others and no
           implied  covenants,  duties or obligations  whatsoever  shall be read
           into this Indenture against the Trustee.

                  (2) 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 and such other documents delivered to it pursuant to Section
           11.04  hereof   furnished  to  the  Trustee  and  conforming  to  the
           requirements  of this Indenture.  However,  the Trustee shall examine
           the  certificates  and  opinions  to  determine  whether  or not they
           conform to the requirements of this Indenture.

                  (c) Notwithstanding anything to the contrary herein contained,
the Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act, or its own willful misconduct, except that:

                  (1) This  paragraph does not limit the effect of paragraph (b)
           of this Section 7.01.

                                      -56-

<PAGE>

                  (2) The Trustee  shall not be liable for any error of judgment
           made in good faith by a Responsible Officer, unless it is proved that
           the  Trustee  was  negligent  in  ascertaining  the  pertinent  facts
           necessary to make such judgment.

                  (3) 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.

                  (d) No provision of this  Indenture  shall require the Trustee
to expend or risk its own funds or otherwise  incur any  financial  liability in
the  performance  of any of its duties  hereunder or to take or omit to take any
action  under this  Indenture  or take any action at the request or direction of
Holders  if it shall  reasonably  believe  that  repayment  of such funds is not
assured to it or if it receives no  indemnity  that is, in its sole  discretion,
adequate  against  such risk,  liability,  loss,  fee or expense  which might be
incurred by it in compliance with such request or direction.

                  (e) Every  provision of this Indenture that in any way relates
to the Trustee is subject to this Section 7.01 and Section 7.02.

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

                  (g) The Trustee shall not be accountable for the use of any of
the Notes delivered hereunder or the proceeds thereof.

                  (h)  The  permissive   right  of  the  Trustee  to  do  things
enumerated in this  Indenture  shall not be construed as a duty or obligation on
its part and the  Trustee  shall not be liable  for not taking  such  permissive
action  unless it has been  negligent  or engaged in willful  misconduct  in not
taking such action.

                  (i) Except for Events of Default  relating  to the  payment of
the principal or the interest  with respect to the Notes,  the Trustee shall not
be  required  to take  notice,  and shall not be deemed to have  notice,  of any
Default  unless the Trustee  shall be notified  specifically  and  expressly  in
writing of the Default; such notice being deemed "actual notice." In the absence
of delivery of a written notice satisfying these  requirements,  the Trustee may
assume conclusively that there is no Default, except as noted above.

SECTION 7.02.     Rights of Trustee.

                  Subject to Section 7.01:

                  (a) The Trustee may rely conclusively on 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.

                                      -57-

<PAGE>

                  (b) Before the Trustee acts or refrains  from  acting,  it may
require an Officers' Certificate and an Opinion of Counsel,  which shall conform
to the provisions of Sections  11.04 and 11.05.  The Trustee shall not be liable
for any  action  it takes or omits  to take in good  faith in  reliance  on such
certificate or opinion.

                  (c) The Trustee may act through its  attorneys  and agents and
shall not be  responsible  for the  misconduct or negligence of any agent (other
than an agent who is an employee of the Trustee) appointed in good faith.

                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it  reasonably  believes to be  authorized  or
within its rights or powers.

                  (e) The Trustee may consult with counsel of its  selection and
the  advice or  opinion  of such  counsel as to matters of law shall be full and
complete  authorization  and protection  from liability in respect of any action
taken,  omitted or suffered by it hereunder in good faith and in accordance with
the advice or opinion of such counsel.

                  (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,  order or
direction of any of the Holders  pursuant to the  provisions of this  Indenture,
unless such  Holders  shall have offered to the Trustee  reasonable  security or
indemnity  satisfactory  to the Trustee in its sole judgment  against the costs,
expenses and liabilities which may be incurred therein or thereby.

                  (g) The  Trustee  shall not be  deemed  to have  notice of any
Event  of  Default  unless a  Responsible  Officer  of the  Trustee  has  actual
knowledge  thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Notes and this Indenture.

SECTION 7.03.     Individual Rights of Trustee.

                  The Trustee in its individual or any other capacity may become
the owner or  pledgee  of Notes and may  otherwise  deal with the  Company,  its
Subsidiaries,  if any, or their  respective  Affiliates  with the same rights it
would have if it were not  Trustee.  Any Agent may do the same with like rights.
However, the Trustee must comply with Sections 7.10 and 7.11.

SECTION 7.04.     Trustee's Disclaimer.

                  The  Trustee  shall  not  be  responsible  for  and  makes  no
representation as to the validity or adequacy of this Indenture or the Notes, it
shall not be  accountable  for the Company's use of the proceeds from the Notes,
and it  shall  not be  responsible  for any  statement  of the  Company  in this
Indenture or any  document  issued in  connection  with the sale of Notes or any
statement in the Notes other than the Trustee's certificate of authentication.

SECTION 7.05.     Notice of Default.

                  If a Default or an Event of Default  occurs and is  continuing
and the Trustee  receives actual notice of such event, the Trustee shall mail to
each  Noteholder,  as their names and addresses  appear on the  Noteholder  list
described  in Section  2.06,  notice of the uncured

                                      -58-

<PAGE>

Default  or Event of  Default  within 90 days after the  Trustee  receives  such
notice.  Except in the case of a Default  or an Event of  Default  in payment of
principal of, premium, if any, and interest and Additional Interest,  if any, on
any Note,  including  the  failure to make  payment on (i) the Change of Control
Payment  Date  pursuant  to a Change of Control  Offer or (ii) the Net  Proceeds
Offer  Payment Date pursuant to a Net Proceeds  Offer,  the Trustee shall not be
deemed to have  actual  knowledge  or actual  notice of a Default or an Event of
Default unless a Responsible  Officer of the Trustee  received written notice of
such  Default or Event of Default and the Trustee may withhold the notice if and
so long as the Board of Directors, the executive committee, or a trust committee
of  directors  and/or  Responsible  Officers,  of  the  Trustee  in  good  faith
determines that withholding the notice is in the interest of the Noteholders.

SECTION 7.06.     Reports by Trustee to Holders.

                  Within 60 days after each May 15, the  Trustee  shall,  to the
extent that any of the events  described in TIA ss. 313(a)  occurred  within the
previous  twelve  months,  but not  otherwise,  mail to each  Noteholder a brief
report dated as of such May 15 that  complies with TIA ss.  313(a).  The Trustee
also shall comply with TIA ss. 313(b), 313(c) and 313(d).

                  A  copy  of  each  report  at  the  time  of  its  mailing  to
Noteholders  shall be mailed to the  Company and filed with the  Commission  and
each securities exchange, if any, on which the Notes are listed.

                  The  Company  shall  notify the  Trustee  if the Notes  become
listed on any securities exchange or of any delisting thereof.

SECTION 7.07.     Compensation and Indemnity.

                  The Company  shall pay to the  Trustee  from time to time such
compensation  for its services  hereunder (which shall be agreed to from time to
time by the Company and the Trustee).  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 upon request for all  disbursements,  expenses and
advances (including reasonable fees and expenses of counsel) incurred or made by
it  in  addition  to  the  compensation  for  its  services,   except  any  such
disbursements,  expenses and advances as may be  attributable  to the  Trustee's
negligence or willful misconduct.  Such expenses shall include the compensation,
disbursements  and expenses of the Trustee's  agents,  accountants,  experts and
counsel and any taxes or other expenses  incurred by a trust created pursuant to
Section 8.01.

                  The Company shall  indemnify the Trustee and each  predecessor
trustee for, and hold it harmless against, any loss, liability, claim, damage or
expense, including taxes (other than taxes based upon, measured by or determined
by the income of the  Trustee)  incurred by the Trustee  without  negligence  or
willful  misconduct  on its  part  arising  out  of or in  connection  with  the
administration of this trust and its duties under this Indenture,  including the
reasonable expenses and attorneys' fees of defending itself against any claim of
liability  arising  hereunder.  The Trustee shall notify the Company promptly of
any claim asserted against the Trustee for which it may seek indemnity. However,
the  failure by the  Trustee  to so notify the  Company  shall not  relieve  the
Company of its  obligations  hereunder  unless and to the  extent  such  failure
results

                                      -59-

<PAGE>

in the  forfeiture by the Company of material  rights and defenses.  The Company
shall defend the claim and the Trustee  shall  cooperate in the defense (and may
employ its own counsel) at the Company's expense. The Company need not reimburse
any expense or indemnify  against any loss or liability  incurred by the Trustee
as a result of the violation of this  Indenture by the Trustee if such violation
arose from the Trustee's negligence or willful misconduct.

                  To secure the Company's  payment  obligations  in this Section
7.07, the Trustee shall have a senior claim prior to the Notes against all money
or property held or collected by the Trustee, in its capacity as Trustee, except
money or  property  held in trust  to pay  principal  of,  premium,  if any,  or
interest on particular Notes.

                  When the Trustee incurs expenses or renders  services after an
Event of Default  specified  in clauses  (vii) or (viii) of Section 6.01 occurs,
the  expenses  (including  the  reasonable  fees and  expenses of its agents and
counsel)  and the  compensation  for the services  shall be  preferred  over the
status of the Holders in a proceeding  under any Bankruptcy Law and are intended
to constitute expenses of administration under any Bankruptcy Law. The Company's
obligations  under  this  Section  7.07 and any claim  arising  hereunder  shall
survive  the  resignation  or  removal  of any  Trustee,  the  discharge  of the
Company's obligations pursuant to Article Eight and any rejection or termination
under any Bankruptcy Law.

SECTION 7.08.     Replacement of Trustee.

                  The Trustee may resign at any time by so notifying the Company
in writing.  The Holders of a majority in  principal  amount of the  outstanding
Notes may remove the  Trustee by so  notifying  the  Company  and the Trustee in
writing and may appoint a successor  trustee  with the  Company's  consent.  The
Company may remove the Trustee if:

                  (1) the Trustee fails to comply with Section 7.10;

                  (2) the Trustee is adjudged bankrupt or insolvent;

                  (3) a receiver or other  public  officer  takes  charge of the
           Trustee or its property; or

                  (4) the Trustee becomes incapable of acting.

                  If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason,  the Company  shall  notify each Holder in
writing of such event and shall appoint a successor Trustee within 60 days after
the  effective  date of such  resignation,  removal or vacancy.  Within one year
after the successor Trustee takes office, the Holders of a majority in principal
amount of the Notes may  appoint a successor  Trustee to replace  the  successor
Trustee appointed by the Company.

                  A successor Trustee shall deliver a written  acceptance of its
appointment  to  the  retiring  Trustee  and  to  the  Company  and  immediately
thereafter,  (i) the retiring Trustee shall transfer,  after payment of all sums
then owing to the Trustee  pursuant to Section 7.07,  all property held by it as
Trustee to the successor Trustee,  subject to the Lien provided in Section 7.07,
(ii) the resignation or removal of the retiring  Trustee shall become  effective
and (iii) the

                                      -60-

<PAGE>

successor  Trustee  shall have all the rights,  powers and duties of the Trustee
under this Indenture. A successor Trustee shall mail notice of its succession to
each Noteholder.

                  If a successor  Trustee  does not take  office  within 30 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  outstanding
Notes may petition any court of competent  jurisdiction for the appointment of a
successor Trustee.

                  If  the  Trustee  fails  to  comply  with  Section  7.10,  any
Noteholder may petition any court of competent  jurisdiction  for the removal of
the Trustee and the appointment of a successor Trustee.

                  Notwithstanding  replacement  of the Trustee  pursuant to this
Section 7.08,  the Company's  obligations  under Section 7.07 shall continue for
the benefit of the retiring Trustee.

SECTION 7.09.     Successor Trustee by Merger, Etc.

                  If the Trustee  consolidates with, merges or converts into, or
transfers all or  substantially  all of its corporate trust business to, another
corporation,  the  resulting,  surviving or transferee  corporation  without any
further act shall,  if such  resulting,  surviving or transferee  corporation is
otherwise eligible hereunder, be the successor Trustee; provided,  however, that
such  corporation  shall be otherwise  qualified and eligible under this Article
Seven.

SECTION 7.10.     Eligibility; Disqualification.

                  This  Indenture  shall always have a Trustee who satisfies the
requirement  of TIA ss.ss.  310(a)(1)  and  310(a)(5).  The  Trustee  shall be a
commercial  bank with trust powers or a trust company,  which shall have (or, in
the case of a  financial  institution,  commercial  bank with trust  powers or a
trust  company  included in a bank  holding  company  system,  the related  bank
holding  company  shall  have)  a  combined  capital  and  surplus  of at  least
$100,000,000  as set  forth  in its  most  recent  published  annual  report  of
condition,  and  subject  to  supervision  or  examination  by  federal or state
authorities,  so long as any of the Notes are  outstanding.  The  Trustee  shall
comply with TIA ss. 310(b); provided, however, that there shall be excluded from
the  operation of TIA ss.  310(b) (1) any  indenture or  indentures  under which
other  securities,  or  certificates  of  interest  or  participation  in  other
securities,  of the  Company  are  outstanding,  if the  requirements  for  such
exclusion set forth in TIA ss. 310(b) (1) are met. The provisions of TIA ss. 310
shall apply to the Company, as obligors of the Notes.

SECTION 7.11.     Preferential Collection of Claims Against Company.

                  The Trustee  shall comply with TIA ss.  311(a),  excluding any
creditor  relationship  listed 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.  The
provisions of TIA ss. 311 shall apply to the Company, as obligor of the Notes.

                                      -61-

<PAGE>

                                 ARTICLE Eight

                     SATISFACTION AND DISCHARGE OF INDENTURE

SECTION 8.01.     Legal Defeasance and Covenant Defeasance.

                  (a) The Company may, at its option by Board Resolution, at any
time, with respect to the Notes, elect to have either paragraph (b) or paragraph
(c)  below  be  applied  to the  outstanding  Notes  upon  compliance  with  the
conditions set forth in paragraph (d).

                  (b) Upon the  Company's  exercise  under  paragraph (a) of the
option  applicable  to this  paragraph  (b),  the  Company  and each  Subsidiary
Guarantor, if any, shall be deemed to have been released and discharged from its
obligations with respect to the outstanding Notes on the date the conditions set
forth below are satisfied (hereinafter,  "Legal Defeasance").  For this purpose,
such Legal  Defeasance  means that the Company  shall be deemed to have paid and
discharged the entire  indebtedness  represented by the outstanding Notes, which
shall  thereafter  be deemed to be  "outstanding"  only for the  purposes of the
Sections and matters under this Indenture referred to in (i) and (ii) below, and
to have  satisfied  all of its  other  obligations  under  such  Notes  and this
Indenture  insofar as such Notes are concerned,  except for the following  which
shall survive until otherwise terminated or discharged hereunder: (i) the rights
of Holders of outstanding  Notes to receive solely from the trust fund described
m paragraph (d) below and as more fully set forth in such paragraph, payments in
respect of the  principal  of,  premium,  if any, and  interest  and  Additional
Interest, if any, on such Notes when such payments are due, and (ii) obligations
listed in Section  8.03,  subject to  compliance  with this  Section  8.01.  The
Company may exercise its option under this  paragraph  (b)  notwithstanding  the
prior  exercise  of its option  under  paragraph  (c) below with  respect to the
Notes.

                  (c) Upon the  Company's  exercise  under  paragraph (a) of the
option  applicable  to this  paragraph  (c),  the  Company  and each  Subsidiary
Guarantor,  if any, shall be released and discharged from its obligations  under
any covenant  contained  in Article Five and in Sections  4.03 through 4.17 with
respect to the outstanding  Notes on and after the date the conditions set forth
below are satisfied (hereinafter,  "Covenant  Defeasance"),  and the Notes shall
thereafter be deemed to be not  "outstanding"  for the purpose 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.  For this purpose, such Covenant
Defeasance  means that, with respect to the outstanding  Notes,  the Company and
its Restricted  Subsidiaries,  if any, 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 clause (iii)
or clause (iv) of Section 6.01,  nor shall any event  referred to in clauses (v)
or (vi) of Section 6.01  thereafter  constitute a Default or an Event of Default
thereunder but, except as specified  above,  the remainder of this Indenture and
such Notes shall be unaffected thereby.

                  (d) The following  shall be the  conditions to  application of
either paragraph (b) or paragraph (c) above to the outstanding Notes:

                                      -62-

<PAGE>

                  (1) The Company shall have irrevocably deposited in trust with
           the Trustee,  pursuant to an irrevocable trust and security agreement
           in form and substance  satisfactory to the Trustee, U.S. Legal Tender
           or direct  non-callable  obligations of, or non-callable  obligations
           guaranteed  by, the United States of America for the payment of which
           obligation  or  guarantee  the full  faith and  credit of the  United
           States of America is pledged ("U.S. Government Obligations") maturing
           as to principal and interest in such amounts and at such times as are
           sufficient,   without  consideration  of  the  reinvestment  of  such
           interest and after  payment of all Federal,  state and local taxes or
           other  charges  or  assessments  in  respect  thereof  payable by the
           Trustee, in the opinion of a nationally recognized investment bank or
           firm  of  independent  public  accountants  expressed  in  a  written
           certification thereof (in form and substance reasonably  satisfactory
           to the Trustee)  delivered to the Trustee,  to pay the  principal of,
           premium, if any, and interest and Additional Interest, if any, on all
           the outstanding Notes on the dates on which any such payments are due
           and payable in accordance with the terms of this Indenture and of the
           Notes;

                  (2)  Such  deposit  shall  not  cause  the  Trustee  to have a
           conflicting interest as defined in and for purposes of the TIA;

                  (3) The Trustee shall have  received an Officers'  Certificate
           stating that no Default or Event of Default  shall have  occurred and
           be  continuing  on the date of such  deposit  or,  insofar as clauses
           (vii) or (viii) of Section 6.01 are concerned, at any time during the
           period  ending  on the 91st day after  the date of such  deposit  (it
           being  understood that this condition  shall not be deemed  satisfied
           until the expiration of such period);

                  (4) The Trustee shall have  received an Officers'  Certificate
           stating  that such  deposit  will not result in a Default  under this
           Indenture or a breach or violation of, or constitute a default under,
           any other  material  instrument  or agreement to which the Company or
           any of its  Subsidiaries,  if any, is a party or by which any of them
           or their property is bound (and in that connection, the Trustee shall
           have received a certificate from the agent under the Bank Facility to
           that effect with respect to the Bank Facility then in effect),

                  (5) (i) In the event the Company elects  paragraph (b) hereof,
           the Company shall deliver to the Trustee an Opinion of Counsel in the
           United States, in form and substance  reasonably  satisfactory to the
           Trustee to the effect  that (A) the  Company has  received  from,  or
           there has been published by, the Internal Revenue Service a ruling or
           (B) since the Issue Date,  there has been a change in the  applicable
           Federal  income tax law, in either case to the effect that, and based
           thereon  such  Opinion of Counsel  shall state  that,  Holders of the
           Notes will not recognize  income gain or loss for Federal  income tax
           purposes as a result of such deposit and the defeasance  contemplated
           hereby and will be subject to Federal income taxes in the same manner
           and at the same times as would have been the case if such deposit and
           defeasance  had not occurred or (ii) in the event the Company  elects
           paragraph  (c) hereof,  the Company  shall  deliver to the Trustee an
           Opinion  of  Counsel  in the  United  States,  in form and  substance
           reasonably satisfactory to the Trustee, to the effect that Holders of
           the Notes will not recognize income,  gain or loss

                                      -63-

<PAGE>

           for Federal  income tax  purposes as a result of such deposit and the
           defeasance  contemplated hereby and will be subject to Federal income
           tax in the same  amounts and in the same manner and at the same times
           as would have been the case if such  deposit and  defeasance  had not
           occurred;

                  (6) The  Trustee  shall  have  received  an Opinion of Counsel
           stating that the deposit shall not result in the Company, the Trustee
           or the trust becoming or being deemed to be an  "investment  company"
           under the Investment Company Act of 1940;

                  (7)  The  Company  shall  have  delivered  to the  Trustee  an
           Officer's Certificate,  in form and substance reasonably satisfactory
           to the  Trustee,  stating  that the deposit  under clause (1) was not
           made by the Company  with the intent of  preferring  the Holders over
           any other  creditors of the Company or any  Subsidiary of the Company
           or with the intent of  defeating,  hindering,  delaying or defrauding
           any other creditors of the Company,  any Subsidiary of the Company or
           others;

                  (8) The Company shall have delivered to the Trustee an Opinion
           of Counsel,  in form and  substance  reasonably  satisfactory  to the
           Trustee, to the effect that assuming no intervening bankruptcy of the
           Company  between the date of deposit and the 91st day  following  the
           deposit and that no Holder of Notes is an insider of the Company, (A)
           the trust  funds  will not be  subject  to the  rights of  holders of
           Indebtedness  of the  Company  other than the Notes and (B) after the
           passage of the 91st day following  the deposit,  the trust funds will
           not  be   subject   to   any   applicable   bankruptcy,   insolvency,
           reorganization or similar law affecting  creditors' rights generally;
           and

                  (9) The Company  has  delivered  to the  Trustee an  Officers'
           Certificate  and  an  Opinion  of  Counsel,  each  stating  that  all
           conditions  precedent  specified  herein  relating to the  defeasance
           contemplated by this Section 8.01 have been complied with;  provided,
           however, that no deposit under clause (1) above shall be effective to
           terminate  the  obligations  of the  Company  under the Notes or this
           Indenture prior to 90 days following any such deposit.

                  In the  event  all  or any  portion  of  the  Notes  are to be
redeemed  through such  irrevocable  trust,  the Company must make  arrangements
satisfactory to the Trustee, at the time of such deposit,  for the giving of the
notice of such  redemption or  redemptions by the Trustee in the name and at the
expense of the Company.

SECTION 8.02.     Satisfaction and Discharge.

                  This  Indenture  will be  discharged  and will  cease to be of
further effect  (except as to surviving  rights listed in Section 8.03 as to all
outstanding Notes when:

                  (1) either (a) all the Notes,  theretofore  authenticated  and
           delivered  (except  lost,  stolen or destroyed  Notes which have been
           replaced or paid and Notes for whose  payment  money has  theretofore
           been  deposited  in  trust  or  segregated  and  held in trust by the
           Company and thereafter  repaid to the Company or discharged from such
           trust) have been delivered to the Trustee for cancellation or (b) all
           Notes not theretofore  delivered to the Trustee for cancellation have
           become due and  payable,  or will become due and

                                      -64-

<PAGE>

           payable within one year or are to be called for redemption within one
           year under arrangements satisfactory to the Trustee for the giving of
           notice of redemption,  and the Company has  irrevocably  deposited or
           caused to be  deposited  with the  Trustee  funds or U.S.  Government
           Obligations  in an amount  sufficient to pay and discharge the entire
           Indebtedness  on the Notes not  theretofore  delivered to the Trustee
           for cancellation, for principal of, premium, if any, and interest and
           Additional  Interest,  if any,  on the  Notes to the  earlier  of the
           stated  maturity or the  redemption  date together  with  irrevocable
           instructions  from the  Company  directing  the Trustee to apply such
           funds and/or the proceeds of such U.S. Government  Obligations to the
           payment thereof at maturity or redemption, as the case may be;

                  (2) the  Company  has paid all other sums  payable  under this
           Indenture by the Company; and

                  (3) the Company  has  delivered  to the  Trustee an  Officers'
           Certificate   stating  that  all  conditions   precedent  under  this
           Indenture   relating  to  the  satisfaction  and  discharge  of  this
           Indenture have been complied with.

SECTION 8.03.     Survival of Certain Obligations.

                  Notwithstanding   the   satisfaction  and  discharge  of  this
Indenture and of the Notes  referred to in Section 8.01 or 8.02,  the respective
obligations  of the Company and the Trustee under  Sections  2.03,  2.04,  2.05,
2.06, 2.07, 2.08,  2.11, 2.13, 2.14, 4.01, 4.02, 6.07,  Article Seven,  Sections
8.05, 8.06 and 8.07 shall survive until the Notes are no longer outstanding, and
thereafter  the  obligations of the Company and the Trustee under Sections 7.07,
8.05, 8.06 and 8.07 shall survive. Nothing contained in this Article Eight shall
abrogate any of the obligations or duties of the Trustee under this Indenture.

SECTION 8.04.     Acknowledgment of Discharge by Trustee.

                  Subject to Section 8.07,  after (i) the  conditions of Section
8.01 or 8.02 have been satisfied, (ii) the Company has paid or caused to be paid
all other sums  payable  hereunder  by the  Company  and (iii) the  Company  has
delivered  to the Trustee an  Officers'  Certificate  and an Opinion of Counsel,
each  stating  that all  conditions  precedent  referred  to in clause (i) above
relating to the  satisfaction and discharge of this Indenture have been complied
with,  the  Trustee  upon  written  request  shall  acknowledge  in writing  the
discharge of the Company's  obligations  under this  Indenture  except for those
surviving obligations specified in Section 8.03.

SECTION 8.05.     Application of Trust Assets.

                  The  Trustee  shall  hold  any U.  S.  Legal  Tender  or U. S.
Government  Obligations  deposited with it pursuant to this Article Eight in the
irrevocable trust  established  pursuant to Section 8.01 or Section 8.02, as the
case may be. The Trustee shall apply the deposited  U.S.  Legal Tender or the U.
S. Government  Obligations,  together with earnings thereon,  through the Paying
Agent, in accordance with this Indenture and the terms of the irrevocable  trust
established pursuant to Section 8.01 or Section 8.02, as the case may be, to the
payment of principal of, premium, if any, and interest and Additional  Interest,
if any, on the Notes. The U. S. Legal Tender or U. S. Government  Obligations so
held in trust and deposited with the Trustee in

                                      -65-

<PAGE>

compliance  with  Section  8.01 or  Section  8.02 shall not be part of the trust
estate under this Indenture,  but shall constitute a separate trust fund for the
benefit of all Holders entitled thereto.

SECTION 8.06.     Repayment to the Company; Unclaimed Money.

                  Subject to Section 7.07, the Trustee shall promptly pay to the
Company,  upon  receipt by the Trustee of an Officers'  Certificate,  any excess
money, determined in accordance with Section 8.01 or Section 8.02, held by it at
any time. The Trustee and the Paying Agent shall pay to the Company upon receipt
by the  Trustee  or the  Paying  Agent,  as the  case  may be,  of an  officers'
Certificate,  any money held by it for the payment of principal of, premium,  if
any, and interest and Additional  Interest,  if any, that remains  unclaimed for
two years after payment to the Holders is required;  provided, however, that the
Trustee and the Paying Agent before being  required to make any payment may, but
are not required to, at the expense of the Company and within 10 days of receipt
of the Officers'  Certificate  described above,  cause to be published once in a
newspaper of general  circulation in the City of New York or mail to each Holder
entitled to such money notice that such money remains unclaimed and that after a
date  specified  therein,  which shall be at least 30 days from the date of such
publication or mailing,  any unclaimed balance of such money then remaining will
be repaid to the Company. After payment to the Company,  Noteholders entitled to
money must look solely to the Company for payment as general creditors unless an
applicable  abandoned  property law designates another Person, and all liability
of the Trustee or Paying Agent with respect to such money shall thereupon cease.

SECTION 8.07.     Reinstatement.

                  If the  Trustee  or  Paying  Agent is unable to apply any U.S.
Legal Tender or U.S. Government Obligations in accordance with this Indenture by
reason of any legal  proceeding  pending  before or any order or judgment of any
court or governmental authority enjoining,  restraining or otherwise prohibiting
such  application,  then and only  then the  Company's  obligations  under  this
Indenture and the Notes shall be revived and reinstated as though no deposit had
been made pursuant to this Indenture until such time as the Trustee is permitted
to apply all such U.S. Legal Tender or U.S. Government Obligations in accordance
with this Indenture; provided, however, that if the Company has made any payment
of principal of, premium, if any, and interest and Additional Interest,  if any,
on any Notes because of the reinstatement of its obligations,  the Company shall
be subrogated to the rights of the Holders of such Notes to receive such payment
from the U.S. Legal Tender or U.S. Government Obligations held by the Trustee or
Paying Agent.

                                  ARTICLE Nine

                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

SECTION 9.01.     Without Consent of Holders.

                  The Company and the Trustee, together, may amend or supplement
this Indenture or the Notes without notice to or consent of any Noteholder:

                  (1) to cure any ambiguity, defect or inconsistency;

                                      -66-

<PAGE>

                  (2) to evidence the succession in accordance with Article Five
           hereof of another  Person to the  Company and the  assumption  by any
           such  successor  of the  covenants  of the Company  herein and in the
           Notes;

                  (3) to evidence the succession in accordance with Article Five
           hereof  of  another  Person  to  any  Subsidiary  Guarantor  and  the
           assumption by such successor of the  obligations  of such  Subsidiary
           Guarantor herein;

                  (4) to provide for Subsidiary Guarantors;

                  (5) to evidence  the release of any  Subsidiary  Guarantor  in
           accordance with Section 10.06;

                  (6) to  evidence  the  appointment  hereunder  of a  successor
           Trustee hereunder;

                  (7) to secure the Notes in accordance with Section 4.13;

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

                  (9) to make any other  change that does not, in the opinion of
           the Trustee,  adversely  affect in any material respect the rights of
           any Noteholders hereunder;

                  (10) to comply  with any  requirements  of the  Commission  in
           connection with the qualification of this Indenture under the TIA; or

                  (11) to make any change  that  would  provide  any  additional
           benefit  or rights  to the  Noteholders  or that  does not  adversely
           affect the rights of any Noteholder;

provided,  that (i) in the opinion of the  Trustee,  no such change or amendment
adversely  affects the rights of any  Holders in any  material  respect  (and in
formulating its opinion,  the Trustee is entitled to rely on such evidence as it
deems  appropriate,  including,  without  limitation,  solely on an  Opinion  of
Counsel) and (ii) the Company has delivered to the Trustee an Opinion of Counsel
and an Officers'  Certificate,  each stating that such  amendment or  supplement
complies with the provisions of this Section 9.01.

SECTION 9.02.     With Consent of Holders.

                  Subject  to  Section  6.07,   the  Company  and  the  Trustee,
together,  with the  written  consent  of the  Holder or  Holders  of at least a
majority in aggregate  principal  amount of the outstanding  Notes, may amend or
supplement this Indenture or the Notes, without notice to any other Noteholders.
Subject to Section  6.07,  the  Holder or  Holders  of a majority  in  aggregate
principal  amount of the outstanding  Notes may waive  compliance by the Company
with any provision of this  Indenture or the Notes  without  notice to any other
Noteholder.  Without  the  consent  of each  Noteholder  affected,  however,  no
amendment,  supplement or waiver,  including a waiver  pursuant to Section 6.04,
may:

                                      -67-

<PAGE>

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

                  (2)  reduce  the  rate of or  change  or have  the  effect  of
           changing  the time  for  payment  of  interest,  including  defaulted
           interest, on any Notes;

                  (3)  reduce the  principal  of or change or have the effect of
           changing the fixed maturity of any Notes, or change the date on which
           any Notes may be subject  to  redemption,  or reduce  the  redemption
           price therefor;

                  (4) make any Notes  payable in money other than that stated in
           the Notes;

                  (5) make any change in provisions of this Indenture  entitling
           each Holder to receive payment of principal of, premium,  if any, and
           interest and  Additional  Interest,  if any, on such Note on or after
           the due date  thereof or to bring suit to enforce  such  payment,  or
           permitting  Holders of a majority in principal amount of the Notes to
           waive Defaults or Events of Default;

                  (6) make any changes in Section 6.04, 6.07 or this sentence of
           this Section 9.02;

                  (7)  amend,  modify  or  change in any  material  respect  the
           obligation of the Company to make and  consummate a Change of Control
           Offer in respect of a Change of Control that has occurred or make and
           consummate a Net  Proceeds  Offer with respect to any Asset Sale that
           has been consummated.

                  It shall not be necessary for the consent of the Holders under
this  Section  to  approve  the  particular  form  of  any  proposed  amendment,
supplement 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 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 amendment,  supplement, waiver
or supplemental indenture.

SECTION 9.03.     Compliance with TIA.

                  From the date on which this  Indenture is qualified  under the
TIA, every amendment,  waiver or supplement of this Indenture or the Notes shall
comply with the TIA as then in effect,  such  compliance  to be  evidenced by an
Opinion of Counsel.

SECTION 9.04.     Revocation and Effect of Consents.

                  Until an amendment,  waiver or supplement becomes effective, a
consent  to it by a Holder  is a  continuing  consent  by the  Holder  and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder's Note, even if notation of the consent is not made on any
Note. However, any such Holder or subsequent Holder may revoke

                                      -68-

<PAGE>

the  consent as to his Note or  portion of his Note by notice to the  Trustee or
the Company  received before the date on which the Trustee receives an Officers'
Certificate  certifying  that the Holders of the requisite  principal  amount of
Notes  have  consented  (and  not  theretofore  revoked  such  consent)  to  the
amendment, supplement or waiver.

                  The Company may,  but shall not be obligated  to, fix a record
date for the  purpose of  determining  the  Holders  entitled  to consent to any
amendment, supplement or waiver. If a record date is fixed, then notwithstanding
the last sentence of the immediately preceding paragraph, those Persons who were
Holders at such record date (or their duly designated  proxies),  and only those
Persons,  shall be entitled to revoke any consent  previously given,  whether or
not such Persons  continue to be Holders after such record date. No such consent
shall be valid or effective for more than 90 days after such record date.

                  After an amendment, supplement or waiver becomes effective, it
shall  bind  every  Noteholder,  unless  it makes a change  described  in any of
clauses  (1)  through  (7) of  Section  9.02,  in  which  case,  the  amendment,
supplement  or waiver shall bind only each Holder of a Note who has consented to
it and every subsequent Holder of a Note or portion of a Note that evidences the
same debt as the consenting  Holder's Note;  provided that any such waiver shall
not impair or affect the right of any Holder to receive payment of principal of,
premium, if any, and interest and Additional Interest,  if any, on a Note, on or
after the respective due dates  expressed in such Note, or to bring suit for the
enforcement  of any such payment on or after such  respective  dates without the
consent of such Holder.

SECTION 9.05.     Notation on or Exchange of Notes.

                  If an amendment,  supplement or waiver  changes the terms of a
Note,  the  Company  may  require  the  Holder of the Note to  deliver it to the
Trustee.  The  Company may place an  appropriate  notation on the Note about the
changed terms and return it to the Holder. Alternatively,  if the Company or the
Trustee so determines,  the Company in exchange for the Note shall issue and the
Trustee shall authenticate a new Note that reflects the changed terms.

SECTION 9.06.     Trustee To Sign Amendments, Etc.

                  The Trustee shall execute any amendment,  supplement or waiver
authorized  pursuant to this Article  Nine;  provided  that the Trustee may, but
shall not be obligated  to,  execute any such  amendment,  supplement  or waiver
which  affects  the  Trustee's  own  rights,  duties or  immunities  under  this
Indenture.  The  Trustee  shall  be  entitled  to  receive,  and  shall be fully
protected in relying  upon,  an Opinion of Counsel and an Officers'  Certificate
each  stating  that  the  execution  of  any  amendment,  supplement  or  waiver
authorized  pursuant to this  Article  Nine is  authorized  or permitted by this
Indenture. Such Opinion of Counsel shall be at the expense of the Company.

SECTION 9.07.     Payment for Consent.

                  Neither  the  Company  nor  any of its  Subsidiaries,  if any,
shall,  directly  or  indirectly,  pay or cause  to be paid  any  consideration,
whether by way of interest, fee or otherwise,  to any Holder of any Notes for or
as an inducement to any consent,  waiver or amendment of any terms or provisions
of the Notes,  unless' such  consideration is offered to be

                                      -69-

<PAGE>

paid or agreed to be paid to all Holders of the Notes which so consent, waive or
agree to  amend  in the time  frame  set  forth  in the  solicitation  documents
relating to such consent, waiver or agreement.

                                  ARTICLE Ten

                        GUARANTEES; RELEASE OF GUARANTEES

SECTION 10.01.    Guarantees.

                  (a)  Each  Subsidiary  Guarantor  hereby  unconditionally  and
irrevocably,  jointly  and  severally  with  any  other  Subsidiary  Guarantors,
guarantees  on a senior,  unsecured  basis to each Holder and to the Trustee and
its  successors  and assigns (a) the full and punctual  payment of principal of,
premium,  if any,  interest and Additional  Interest,  if any, on the Notes when
due, whether at maturity, by acceleration,  by redemption or otherwise,  and all
expenses and indemnification and other monetary obligations of the Company under
this  Indenture and the Notes and (b) the full and punctual  performance  within
applicable  grace  periods of all other  obligations  of the Company  under this
Indenture and the Notes (all the foregoing being hereinafter collectively called
the  "Obligations").  Each Subsidiary  Guarantor  hereby further agrees that the
Obligations may be extended or renewed,  in whole or in part,  without notice or
further assent from such Subsidiary Guarantor and that such Subsidiary Guarantor
will  remain  bound under this  Article Ten  notwithstanding  any  extension  or
renewal of any Obligation.

                  (b) Each Subsidiary  Guarantor hereby waives  presentation to,
demand of, payment from and protest to the Company of any of the Obligations and
also waives notice of protest for nonpayment.  Each Subsidiary  Guarantor waives
notice of any default under the Notes or the  Obligations.  The  obligations  of
each Subsidiary  Guarantor hereunder shall not be affected by (a) the failure of
any Holder or the  Trustee to assert any claim or demand or to enforce any right
or remedy  against the Company or any other  Person  under this  Indenture,  the
Notes or any other  agreement or otherwise;  (b) any extension or renewal of any
thereof,  (c) any  rescission,  waiver,  amendment or modification of any of the
terms or provisions of this Indenture, the Notes or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Obligations or
any of them;  (e) the failure of any Holder or Trustee to exercise  any right or
the Obligations; or (f) subject to Section 10.06, any change in the ownership of
any Subsidiary Guarantor.

                  (c) Each Subsidiary  Guarantor  hereby further agrees that its
Guarantee herein constitutes a guarantee of payment,  performance and compliance
when due (and not a  guarantee  of  collection)  and waives any right to require
that any resort be had by any Holder or the  Trustee  to any  security  held for
payment of the Obligations.

                  (d) The  obligations of each  Subsidiary  Guarantor  hereunder
shall not be subject to any reduction, limitation, impairment or termination for
any reason,  including any claim of waiver,  release,  surrender,  alteration or
compromise,  and shall not be  subject to any  defense of setoff,  counterclaim,
recoupment or termination whatsoever or by reason of the invalidity,  illegality
or  unenforceability  of the  Obligations  or  otherwise.  Without  limiting the

                                      -70-

<PAGE>

generality of the foregoing, the obligations of each Subsidiary Guarantor herein
shall not be discharged or impaired or otherwise  affected by the failure of any
Holder or the  Trustee to assert  any claim or demand or to  enforce  any remedy
under  this  Indenture,  the  Notes or any  other  agreement,  by any  waiver or
modification  of any  thereof,  by any  default,  failure  or delay,  willful or
otherwise,  in the performance of the Obligations,  or by any other act or thing
or  omission  or delay to do any  other  act or thing  which may or might in any
manner or to any  extent  vary the risk of each  Subsidiary  Guarantor  or would
otherwise operate as a discharge of such Subsidiary Guarantor as a matter of law
or equity.

                  (e) Each Subsidiary  Guarantor  hereby further agrees that its
Guarantee  herein shall continue to be effective or be  reinstated,  as the case
may be, if at any time payment, or any part thereof,  of principal,  premium, if
any, or interest or Additional Interest,  if any, on any Obligation is rescinded
or must  otherwise be restored by any Holder or the Trustee upon the  bankruptcy
or reorganization of the Company or otherwise.

                  (f) In  furtherance  of the foregoing and not in limitation of
any other right which any Holder or the Trustee has at law or in equity  against
any Subsidiary  Guarantor by virtue  hereof,  upon the failure of the Company to
pay the principal of,  premium,  if any or interest or Additional  Interest,  if
any,  on any  Obligation  when and as the same  shall  become  due,  whether  at
maturity, by acceleration,  by redemption or otherwise,  or to perform or comply
with any other Obligation,  each Subsidiary Guarantor promises to and will, upon
receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in
cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid
amount of such Obligations, (ii) accrued and unpaid interest on such Obligations
(but only to the  extent  not  prohibited  by law) and (iii) all other  monetary
Obligations of the Company to the Holders and the Trustee.

                  (g) Each Subsidiary  Guarantor  hereby further agrees that, as
between it, on the one hand, and the Holders and the Trustee, on the other hand,
(x) the maturity of the  Obligations  guaranteed  hereby may be  accelerated  as
provided  in  Article  Six  for the  purposes  of  such  Subsidiary  Guarantor's
Guarantee  herein,  notwithstanding  any stay,  injunction or other  prohibition
preventing such  acceleration in respect of the Obligations  guaranteed  hereby,
and (y) in the event of any declaration of  acceleration of such  Obligations as
provided in Article Six, such Obligations (whether or not due and payable) shall
forthwith  become due and payable by such Subsidiary  Guarantor for the purposes
of this Section 10.01.

                  (h) Each  Subsidiary  Guarantor also agrees to pay on a senior
unsecured  basis and in addition to the amounts  stated in clause (a) of Section
10.01 any and all expenses  (including  reasonable  counsel's fees and expenses)
incurred by the Trustee in  enforcing  against  such  Subsidiary  Guarantor  any
rights under this Section 10.01.

SECTION 10.02.    Successors and Assigns.

                  This  Article  Ten  shall  be  binding  upon  each  Subsidiary
Guarantor  and its  successors  and assigns and shall  remain in full effect and
force  until  payment in full of all the  Obligations  or until  released  under
Section 10.06.

                                      -71-

<PAGE>

SECTION 10.03.    No Waiver.

                  Neither  a  failure  nor a delay  on the  part of  either  the
Trustee or the Holders in exercising  any right,  power or privilege  under this
Article  Ten shall  operate as a waiver  thereof,  nor shall a single or partial
exercise thereof  preclude any other or further exercise of any right,  power or
privilege.  The  rights,  remedies  and  benefits of the Trustee and the Holders
herein expressly specified are cumulative and not exclusive of any other rights,
remedies or  benefits  which  either may have under this  Article Ten at law, in
equity, by statute or otherwise.

SECTION 10.04.    Modification.

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

SECTION 10.05.    Limitation of Subsidiary Guarantor's Liability.

                  It is the  intention of all parties that the Guarantee of each
Subsidiary  Guarantor not  constitute a fraudulent  transfer or  conveyance  for
purposes of the Bankruptcy Law, federal and state fraudulent  conveyance laws or
any  similar  federal,  state  or  foreign  law.  To  effectuate  the  foregoing
intention,  it is agreed that the obligations of each Subsidiary Guarantor under
this  Article Ten shall be limited to the maximum  amount as will,  after giving
effect  to all  other  contingent  and  fixed  liabilities  of  such  Subsidiary
Guarantor and after giving effect to any collections from or payments made by or
on behalf of any other  Subsidiary  Guarantor in respect of the  obligations  of
such  other  Subsidiary   Guarantor  under  this  Article  Ten,  result  in  the
obligations of such Subsidiary  Guarantor under its Guarantee not constituting a
fraudulent  transfer or conveyance  under applicable  federal,  state or foreign
law.

SECTION 10.06.    Release of Guarantees.

                  (a) In the event of a disposition  of all of the assets or all
of the  Capital  Stock of any  Subsidiary  Guarantor,  by way of  sale,  merger,
consolidation  or  otherwise,  such  Subsidiary  Guarantor  in  the  event  of a
disposition of all of the Capital Stock or all of the assets of such  Subsidiary
Guarantor or the surviving entity (whether or not such Subsidiary  Guarantor) in
the event of a merger or  consolidation  will be deemed released and relieved of
its  obligations  under its  Guarantee  and this  Indenture  without any further
action  required  on the  part of the  Trustee  or any  Holder  and  the  Person
acquiring or owning the assets or Capital Stock of such Subsidiary Guarantor (if
not otherwise  required to be a Subsidiary  Guarantor pursuant to the provisions
of Section 4.17) will not be required to enter into a Guarantee; provide in each
case,  that such  transaction is carried out pursuant to and in accordance  with
Section 4.15 and, if  applicable,  Section 5.01.

                  (b)  If  a  Subsidiary   Guarantor   becomes  an  Unrestricted
Subsidiary, it will be deemed released and relieved of its obligations under its
Guarantee and this Indenture  without any further action required on the part of
the Trustee or any Holder.

                                      -72-

<PAGE>

                  (c)  A  non-Wholly  Owned  Restricted  Subsidiary  that  is  a
Subsidiary  Guarantor solely by reason of its guarantee of other Indebtedness of
the Company or a Subsidiary  Guarantor  will be deemed  released and relieved of
its  obligations  under its  Guarantee  and this  Indenture  without any further
action  required on the part of the Trustee or any Holder if it is released  and
relieved  of its  guarantee  of such  other  Indebtedness  and  such  Subsidiary
Guarantor gives written notice to the Trustee of its election to be so released.

                  Upon  delivery by the  Company to the Trustee of an  Officers'
Certificate  and Opinion of Counsel,  to the effect that a Subsidiary  Guarantor
has been deemed  released  from its  obligations  under its  Guarantee  and this
Indenture  pursuant  to this  Section  10.06,  the  Trustee  shall  execute  any
documents  reasonably  requested by the Company or such Subsidiary  Guarantor in
order to evidence the release of such Subsidiary  Guarantor from its obligations
under its Guarantee and this Indenture.

                                 ARTICLE Eleven

                                  MISCELLANEOUS

SECTION 11.01.    TIA Controls.

                  If any  provision  of this  Indenture  limits,  qualifies,  or
conflicts with the duties imposed by operation of Section 318(c) of the TIA, the
imposed duties shall control.

SECTION 11.02.    Notices.

                  Any  notices or other  communications  required  or  permitted
hereunder shall be in writing,  and shall be sufficiently  given if made by hand
delivery, by telecopier or registered or certified mail, postage prepaid, return
receipt requested, addressed as follows:

if to the Company or any Subsidiary Guarantor:

Diamond Triumph Auto Glass, Inc.
220 Division Street
Kingston, PA 18704
Attention: General Counsel
Facsimile: (717) 287-2149

with copies to:

Green Equity Investors II, L.P.
11111 Santa Monica Boulevard
Suite 2000
Los Angeles, California 90025
Attention: Gregory J. Annick
Facsimile: (310) 954-0404

                                      -73-

<PAGE>

Kramer, Levin, Naftalis & Frankel
919 Third Avenue
New York, NY 10022
Attention: Howard A. Sobel, Esq.
Facsimile: (212) 715-8326

if to the Trustee:

State Street Bank and Trust Company
Goodwin Square
225 Asylum Street, 23rd Floor
Hartford, CT 06103
Attention: Corporate Trust Department
Facsimile: (860) 244-1889

                  Each of the Company and the Trustee by written  notice to each
other such Person may designate additional or different addresses for notices to
such Person. Any notice or communication to the Company and the Trustee shall be
deemed  to have been  given or made as of the date so  delivered  if  personally
delivered;  when answered  back, if telexed;  when receipt is  acknowledged,  if
telecopied;  and five (5) calendar  days after  mailing if sent by registered or
certified mail, postage prepaid (except that,  notwithstanding the foregoing,  a
notice of  change of  address  shall  not be  deemed  to have been  given  until
actually received by the addressee).

                  Any notice or  communication  mailed to a Noteholder  shall be
mailed to him by first class mail or other equivalent means at his address as it
appears on the  registration  books of the Registrar  and shall be  sufficiently
given to him if so mailed within the time prescribed.

                  Failure to mail a notice or  communication  to a Noteholder or
any  defect  in it shall  not  affect  its  sufficiency  with  respect  to other
Noteholders.  If a notice or  communication  is mailed  in the  manner  provided
above, it is duly given, whether or not the addressee receives it.

SECTION 11.03.    Communications by Holders with Other Holders.

                  Noteholders  may  communicate  pursuant to TIA ss. 312(b) with
other  Noteholders  with  respect to their  rights  under this  Indenture or the
Notes. The Company,  the Trustee,  the Registrar and any other Person 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 the  Company  shall  furnish to the Trustee at the request of
the Trustee:

                                      -74-

<PAGE>

                  (1) an Officers' Certificate, in form and substance reasonably
           satisfactory  to the  Trustee,  stating  that,  in the opinion of the
           signers,  all  conditions  precedent,  if any,  provided  for in this
           Indenture  relating to the proposed  action have been complied  with;
           and

                  (2) an Opinion of Counsel stating that, in the opinion of such
           counsel, all such conditions precedent have been complied with.

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 the Officers'
Certificate required by Section 4.08, shall include:

                  (1) a statement  that the Person  making such  certificate  or
           opinion  has read such  covenant  or  condition  and the  definitions
           relating thereto;

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

                  (3) a statement  that,  in the opinion of such Person,  he 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 complied with; and

                  (4) a  statement  as to whether or not, in the opinion of each
           such  Person,  such  condition or covenant  has been  complied  with;
           provided, however, that with respect to matters of fact an Opinion of
           Counsel  may rely on an  Officers'  Certificate  or  certificates  of
           public officials.

SECTION 11.06.    Rules by Trustee, Paying Agent, Registrar.

                  The Trustee,  Paying Agent or  Registrar  may make  reasonable
rules for its functions.

SECTION 11.07.    Legal Holidays.

                  If a payment date is not a Business  Day,  payment may be made
on the next  succeeding day that is a Business Day, and no interest shall accrue
for the intervening period.

SECTION 11.08.    Governing Law.

                  (a) THIS  INDENTURE  AND THE NOTES SHALL BE  GOVERNED  BY, AND
CONSTRUED  IN  ACCORDANCE  WITH,  THE LAWS OF THE STATE OF NEW YORK BUT  WITHOUT
GIVING  EFFECT TO  APPLICABLE  PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

                                      -75-

<PAGE>

                  (b) Each of the Company and the future Subsidiary  Guarantors,
if any,  hereby (i)  agrees or will  agree,  as the case may be,  that any suit,
action or proceeding  against it arising out of or relating to this Indenture or
the Notes,  as the case may be, may be  instituted in any Federal or state court
sitting in The City of New York,  (ii) waives or will waive, as the case may be,
to the extent  permitted by applicable  law, any  objection  which it may now or
hereafter  have to the laying of venue of any such suit,  action or  proceeding,
and any claim  that any  suit,  action  or  proceeding  in such a court has been
brought in an inconvenient  forum, (iii) irrevocably  submits or will submit, as
the case may be, to the  non-exclusive  jurisdiction of such courts in any suit,
action or proceeding,  (iv) agrees or will agree, as the case may be, that final
judgment in any such suit, action or proceeding brought in such a court shall be
conclusive  and  binding  upon  each and may be  enforced  in the  courts of the
jurisdiction  of which each is subject,  respectively,  by a suit upon judgment,
(v) agrees or will agree, as the case may be, that service of process by mail to
the  addressed  specified  in Section  11.02 hereof  shall  constitute  personal
service of such process on it in any such suit, action or proceeding.

SECTION 11.09.    No Adverse Interpretation of Other Agreements.

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

SECTION 11.10.    No Recourse Against Others.

                  A director, officer, employee, stockholder or incorporator, as
such, of the Company or of any Subsidiary Guarantor shall not have any liability
for any  obligations of the Company or of such  Subsidiary  Guarantor  under the
Notes,  the Guarantees,  or this Indenture or for any claim based on, in respect
of or by  reason of such  obligations  or their  creation.  Each  Noteholder  by
accepting a Note waives and releases all such liability. Such waiver and release
are part of the consideration for the issuance of the Notes.

SECTION 11.11.    Successors.

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

SECTION 11.12.    Duplicate Originals.

                  All parties  may sign any number of copies of this  Indenture.
Each signed copy or counterpart  shall be an original,  but all of them together
shall represent the same agreement.

SECTION 11.13.    Severability.

                  In case any one or more of the provisions in this Indenture or
in the Notes shall be held invalid, illegal or unenforceable, in any respect for
any reason,  the validity,  legality and enforceability of any such provision in
every other  respect  and of the  remaining  provisions  shall not in any way be
affected or  impaired  thereby,  it being  intended  that all of the  provisions
hereof shall be enforceable to the full extent permitted by law.

                                      -76-

<PAGE>

SECTION 11.14.    Effect of Headings and Table of Contents.

                  The  Article  and  Section  headings  herein  and the Table of
Contents are for convenience only and shall not affect the construction hereof.

                                      -77-

<PAGE>

                                   SIGNATURES

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

                                   THE COMPANY:

                                     DIAMOND TRIUMPH
                                     AUTO GLASS, INC.

                                     By: /s/ Kenneth Levine
                                        ---------------------------------------
                                        Name:  Kenneth Levine
                                        Title: Co-Chief Executive Officer

                                   THE TRUSTEE:

                                     STATE STREET BANK AND TRUST COMPANY

                                     By: /s/ Phillip Kane, Jr.
                                        --------------------------------------
                                        Name:  Phillip Kane, Jr.
                                        Title: Vice President

                                      -78-

<PAGE>Exhibit 4.2

                        DIAMOND TRIUMPH AUTO GLASS, INC.

                          9 1/4% Senior Notes Due 2008

                          REGISTRATION RIGHTS AGREEMENT

                                                            New York, New York
                                                              March 31, 1998

First Union Capital Markets
BT Alex. Brown Incorporated
Donaldson, Lufkin & Jenrette Securities Corporation
As Initial Purchasers under the Purchase Agreement
c/o First Union Capital Markets
301 South College Street, TW-10
Charlotte, NC 28288-0606

Ladies and Gentlemen:

                  This Registration Rights Agreement (the "Agreement") is dated
as of March 31, 1998, by and among Diamond Triumph Auto Glass, Inc., a Delaware
corporation (the "Issuer"), First Union Capital Markets, a division of Wheat
First Securities, Inc., BT Alex. Brown Incorporated and Donaldson, Lufkin &
Jenrette Securities Corporation (the "Initial Purchasers").

                  This Agreement is being entered into in connection with a
certain note purchase agreement, dated March 26, 1998, between the Issuer and
the Initial Purchasers (the "Purchase Agreement"), which provides for the
issuance and sale by the Issuer to the Initial Purchasers of $100,000,000
aggregate principal amount of the Issuer's 9 1/4% Senior Notes Due 2008 (the
"Notes"). In order to induce the Initial Purchasers to enter into the Purchase
Agreement, the Issuer has agreed to provide the registration rights set forth in
this Agreement for the benefit of the Initial Purchasers and their direct and
indirect transferees. The execution and delivery of this Agreement is a
condition to the obligation of the Initial Purchasers to purchase the Notes
under the Purchase Agreement. The parties hereby agree as follows:

                  1. Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

                  "Act" means the Securities Act of 1933. as amended, and the
rules and regulations of the Commission promulgated thereunder.

                  "Additional Interest" has the meaning set forth in Section 4
hereto.

                  "Affiliate" means, with respect to any specified person, any
other person that, directly or indirectly, is in control of, is controlled by,
or is under common control with, such

<PAGE>

specified person. For purposes of this definition, control of a person means the
power, direct or indirect, to direct or cause the direction of the management
and policies of such person whether by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative to the foregoing.

                  "Agreement" has the meaning set forth in the preamble hereto.

                  "Business Day" means any day excluding Saturday, Sunday or any
other day which is a legal holiday under the laws of Charlotte, North Carolina
or New York, New York or is a day on which banking institutions therein located
are authorized or required by law or other governmental action to close.

                  "Closing Date" has the meaning set forth in the Purchase
Agreement.

                  "Commission" mean the Securities and Exchange Commission.

                  "Consummate" means, with respect to a Registered Exchange
Offer, the occurrence of (a) the filing and effectiveness under the Act of the
Exchange Offer Registration statement relating to the Exchange Notes to be
issued in the Registered Exchange Offer, (b) the maintenance of such
Registration Statement continuously effective and the keeping of the Registered
Exchange Offer open for a period not less than the minimum period required
pursuant t to Section 2(c)(ii) hereof, (c) the Issuer's acceptance for exchange
of all Transfer Restricted Notes duly tendered and not validly withdrawn
pursuant to the Registered Exchange Offer and (d) the delivery of Exchange Notes
by the Issuer to the registrar under the Indenture in the same aggregate
principal amount as the aggregate principal amount of Transfer Restricted Notes
validly tendered by Holders thereof pursuant to the Registered Exchange Offer.
The term "Consummation" has a meaning correlative to the foregoing.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated thereunder.

                  "Exchange Notes" means debt securities of the Issuer
substantially identical in all material respects to the Notes (except that the
Additional Interest provisions and the transfer restrictions pertaining to the
Notes will be modified or eliminated, as appropriate), to be issued under the
Indenture.

                  "Exchange Offer Registration Period" means the 180-day period
following the Consummation of the Registered Exchange Offer, exclusive of any
period during which any stop order shall be in effect suspending the
effectiveness of the Exchange Offer Registration Statement; provided, however,
that in the event that all resales of Exchange Notes (including, subject to the
time periods set forth herein, any resales by Exchanging Dealers) covered by
such Exchange Offer Registration Statement have been made, the Exchange Offer
Registration Statement need not thereafter remain continuously effective for
such period.

                  "Exchange Offer Registration Statement" means a registration
statement of the issuer on an appropriate form under the Act with respect to the
Registered Exchange Offer, all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

                                      -2-
<PAGE>

                  "Exchanging Dealer" means any Holder (which may include any of
the Initial Purchasers) that is a broker-dealer, electing to exchange Notes
acquired for its own account as a result of market-making activities or other
trading activities for Exchange Notes.

                  "Filing Date" has the meaning set forth in Section 2 hereto.

                  "Final Memorandum" has the meaning set forth in the Purchase
Agreement.

                  "Holder" means any holder from time to time of Transfer
Restricted Notes or Exchange Notes (including any of the Initial Purchasers).

                  "Indenture" means the indenture relating to the Notes and the
Exchange Notes, to be dated as of the Closing Date, among the Issuer and State
Street Bank and Trust Company, as trustee, as the same may be amended,
supplemented, waived or otherwise modified from time to time in accordance with
the terms thereof. It shall include the provisions of the Trust Indenture Act
that are deemed to be part of the Indenture.

                  "Initial Purchasers" has the meaning set forth in the preamble
hereto.

                  "Issuer" has the meaning set forth in the preamble hereto.

                  "Losses" has the meaning set forth in Section 7(d) hereto.

                  "Majority Holders" means the Holders of a majority of the
aggregate principal amount of Transfer Restricted Notes registered under a
Registration Statement.

                  "Managing Underwriters" means the investment banker or
investment bankers and manager or managers that shall administer an underwritten
offering under a Shelf Registration Statement.

                  "Notes" has the meaning set forth in the preamble hereto.

                  "Prospectus" means the prospectus included in any Registration
Statement (including, without limitation, a prospectus that discloses
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A under the Act), as amended or
supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Transfer Restricted Notes covered by such
Registration Statement, and all amendments and supplements to the Prospectus,
including post-effective amendments.

                  "Purchase Agreement" has the meaning set forth in the preamble
hereto.

                  "Registered Exchange Offer" means the proposed offer to the
Holders to issue and deliver to such Holders, in exchange for the Notes, a like
principal amount of Exchange Notes.

                  "Registration Statement" means any Exchange Offer Registration
Statement or Shelf Registration Statement that covers any of the Transfer
Restricted Notes (including any guarantees of each thereof) pursuant to the
provisions of this Agreement, amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto, and all material
incorporated by reference therein.

                  "Shelf Registration" means a registration effected pursuant to
Section 3 hereof.

                                      -3-
<PAGE>

                  "Shelf Registration Period" has the meaning set forth in
Section 3(c) hereof.

                  "Shelf Registration Statement" means a "shelf' registration
statement of the Issuer pursuant to the provisions of Section 3 hereof, which
covers some or all of the Transfer Restricted Notes, as applicable, on an
appropriate form under Rule 415 under the Act, or any similar rule that may be
adopted by the Commission, all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto and all material incorporated
by reference therein.

                  "Shelf Registration Trigger Date" means the date on which the
filing of a Shelf Registration is requested or required under Section 3 hereof.

                  "Transfer Restricted Notes" means each Note upon original
issuance thereof and at all times subsequent thereto, each Exchange Note as to
which Section 3 (a) (ii) and Section 3 (a) (iv) apply upon original issuance and
at all times subsequent thereto, until in the case of any such Note or Exchange
Note, as the case may be, the earliest to occur of (i) the date on which such
Note has been exchanged by a person other than an Exchanging Dealer for an
Exchange Note (other than with respect to an Exchange Note as to which Section 3
(a) (ii) and Section 3 (a) (iv) apply), (ii) with respect to Exchange Notes
received by Exchanging Dealers in the Exchange Offer, the earlier to occur of
(x) the date on which such Exchange Note has been sold by such Exchanging Dealer
by means of the Prospectus contained in the Exchange Offer Registration
Statement and (y) the date on which the Exchange Offer Registration Statement
has been effective under the Act for a continuous period of 180 days following
Consummation, (iii) a Shelf Registration Statement covering such Note or
Exchange Note, as the case may be, has been declared effective by the Commission
and such Note or Exchange Note, as the case may be, has been disposed of in
accordance with such effective Shelf Registration Statement, (iv) the date on
which such Note or Exchange Note, as the case may be, is disposed of pursuant to
Rule 144 under the Act or (v) such Note or Exchange Note, as the case may be,
ceases to be outstanding for purposes of the Indenture.

                  "Trust Indenture Act" means the Trust Indenture Act of 1939,
as amended.

                  "Trustee" means the trustee with respect to the Notes or
Exchange Notes, as applicable, under the Indenture.

                  2. Registered Exchange Offer: Resales of Exchange Notes by
Exchanging Dealers: Private Exchange. (a) The Issuer shall prepare and, not
later than the earlier to occur of (i) the date of any filing of a registration
statement by the Issuer under the Securities Act and (ii) 730 days from the date
of original issuance of the Notes (or, if such 730th day is not a Business Day,
by the first Business Day thereafter), shall file with the Commission the
Exchange Offer Registration Statement with respect to the Registered Exchange
Offer (the date of such filing hereinafter referred to as the "Filing Date").
The Issuer shall use its best efforts (i) to cause the Exchange Offer
Registration Statement to be declared effective under the Act within 150 days
from the Filing Date (or, if such 150th day is not a Business Day, by the first
Business Day thereafter), and (ii) to Consummate the Registered Exchange Offer
within 60 Business Days from the date the Exchange Offer Registration Statement
becomes effective (or, if such 60th day is not a Business Day, by the first
Business Day thereafter).

                  (b) Upon the effectiveness of the Exchange Offer Registration
Statement, the Issuer shall promptly commence and Consummate the Registered
Exchange Offer. The objective of such Registered Exchange Offer is to enable
each Holder electing to exchange Transfer Restricted

                                      -4-
<PAGE>

Notes for Exchange Notes (assuming that such Holder (x) is not an "affiliate" of
the Issuer within the meaning of the Act, (y) is not a broker-dealer that
acquired the Transfer Restricted Notes in a transaction other than as a part of
its market-making or other trading activities and (z) if such Holder is not a
broker-dealer, acquires the Exchange Notes in the ordinary course of such
Holder's business, is not participating in the distribution of the Exchange
Notes and has no arrangements or understandings with any person to participate
in the distribution of the Exchange Notes) to resell such Exchange Notes from
and after their receipt without any limitations or restrictions under the Act
and without material restrictions under the securities laws of a substantial
proportion of the several states of the United States.

                  (c) In connection with the Registered Exchange Offer, the
Issuer shall:

                  (i) mail to each Holder a copy of the Prospectus forming part
         of the Exchange Offer Registration Statement, together with an
         appropriate letter of transmittal and related documents;

                  (ii) keep the Registered Exchange Offer open for acceptance
         for not less than 30 Business Days after the date notice thereof is
         mailed to the Holders;

                  (iii) utilize the services of a depositary for the Registered
         Exchange Offer with an address in the Borough of Manhattan, The City of
         New York; and

                  (iv) comply in all material respects with all applicable laws
         relating to the Registered Exchange Offer.

                  (d) The Issuer may suspend the use of the Prospectus for a
period not to exceed 30 days in any three-month period or for three periods not
to exceed an aggregate of 90 days in any twelve-month period for valid business
reasons, to be determined by the Issuer in its sole reasonable judgment (not
including avoidance of its obligations hereunder), including, without
limitation, the acquisition or divestiture of assets, public filings with the
Commission, pending corporate developments and similar events; provided that the
Issuer promptly thereafter complies with the requirements of Section 5(k)
hereof, if applicable.

                  (e) As soon as practicable after the Consummation of the
Registered Exchange Offer, the Issuer shall cause the Trustee promptly to
authenticate and deliver to each Holder Exchange Notes equal in principal amount
to the Transfer Restricted Notes of such Holder so accepted for exchange.

                  (f) The Initial Purchasers and the Issuer acknowledge that,
pursuant to interpretations by the staff of the Commission of Section 5 of the
Act, and in the absence of an applicable exemption therefrom, each Exchanging
Dealer is required to deliver a Prospectus in connection with a sale of any
Exchange Notes received by such Exchanging Dealer pursuant to the Registered
Exchange Offer in exchange for Transfer Restricted Notes acquired for its own
account as a result of market-making activities or other trading activities.
Accordingly, the Issuer shall:

                  (i) include the information set forth in Annex A hereto on the
         cover of the Prospectus forming a part of the Exchange Offer
         Registration Statement, in Annex B hereto in the forepart of the
         Exchange Offer Registration Statement in a section setting forth
         details of the Registered Exchange Offer, in Annex C hereto in the
         underwriting or plan of distribution section of the Prospectus forming
         a part of the Exchange Offer Registration

                                      -5-
<PAGE>

         Statement, and in Annex D hereto in the letter of transmittal delivered
         pursuant to the Registered Exchange Offer; and

                  (ii) use its best efforts to keep the Exchange Offer
         Registration Statement continuously effective under the Act during the
         Exchange Offer Registration Period for delivery of the Prospectus
         included therein by Exchanging Dealers in connection with sales of
         Exchange Notes received pursuant to the Registered Exchange Offer, as
         contemplated by Section 5(h) below.

                  (g) In the event that any Initial Purchaser determines that it
is not eligible to participate in the Registered Exchange Offer with respect to
the exchange of Transfer Restricted Notes constituting any portion of an unsold
allotment, upon the effectiveness of the Shelf Registration Statement as
contemplated by Section 3 hereof and at the request of such Initial Purchaser,
the Issuer shall issue and deliver to such Initial Purchaser, or to the party
purchasing Transfer Restricted Notes registered under the Shelf Registration
Statement from such Initial Purchaser, in exchange for such Transfer Restricted
Notes, a like principal amount of Exchange Notes to the extent permitted by
applicable law. The Issuer shall use its reasonable best efforts to cause the
CUSIP Service Bureau to issue the same CUSIP number for such Exchange Notes as
for Exchange Notes issued pursuant to the Registered Exchange Offer.

                  3. Shelf Registration. (a) If (i) the Company is not permitted
to file the Exchange Offer Registration Statement or to Consummate the
Registered Exchange Offer because the Registered Exchange Offer is not permitted
by applicable law or Commission policy, (ii) prior to the 60th day preceding the
Filing Date (1) any Holder notifies the Issuer that due to a change in
applicable law or Commission policy it is not entitled to participate in the
Registered Exchange offer or that it may not resell Exchange Notes acquired by
it in the Registered Exchange Offer to the public without complying with the
registration and prospectus delivery requirements of the Act and the delivery of
the Prospectus contained in the Exchange Offer Registration Statement, as
appropriately amended, is not a legally available alternative or (2) any Holder
notifies the Issuer that it owns Notes (including, without limitation, Notes
held by any of the Initial Purchasers that constitute any portion of an unsold
allotment) acquired directly from the Issuer or an Affiliate of the Issuer,
(iii) the Registered Exchange Offer is not Consummated within 180 days of the
Filing Date, or (iv) in the case where the Initial Purchaser participates in the
Registered Exchange Offer or acquires Exchange Notes pursuant to Section 2(g)
hereof, the Initial Purchaser does not receive freely tradable Exchange Notes in
exchange for Notes constituting any portion of an unsold allotment (it being
understood that, for purposes of this Section 3, (x) the requirement that the
Initial Purchaser deliver a Prospectus containing the information required by
Items 507 and/or 508 of Regulation S-K under the Act in connection with sales of
Exchange Notes acquired in exchange for such Transfer Restricted Notes shall
result in such Exchange Notes being not "freely tradable" and (y) the
requirement that an Exchanging Dealer deliver a Prospectus in connection with
sales of Exchange Notes acquired in the Registered Exchange Offer in exchange
for Transfer Restricted Notes acquired as a result of market-making activities
or other trading activities shall not result in such Exchange Notes being not
"freely tradable"), the following provisions shall apply:

                  (b) The Issuer shall prepare and file with the Commission a
Shelf Registration Statement prior to the later of (i) the Filing Date, (ii) if
such Shelf Registration Statement is required pursuant to Section 3 (a) (i),
(ii), or (iv), the 60th day following the Shelf Registration Trigger Date (or if
such 60th day is not a Business Day, by the first Business Day thereafter) and
(iii) if such Shelf Registration Statement is required pursuant to Section 3 (a)
(iii), the 215th day following the Filing Date (or, if such 215th day is not a
Business Day, by the first Business Day thereafter). The Issuer

                                      -6-
<PAGE>

shall use its best efforts to cause the Shelf Registration Statement to be
declared effective by the Commission as promptly as possible following the
filing thereof. With respect to Exchange Notes received by any Initial Purchaser
in exchange for Notes constituting any portion of an unsold allotment, the
Issuer may, if permitted by current interpretations by the Commission's staff,
file a post-effective amendment to the Exchange Offer Registration Statement
containing the information required by Regulation S-K Items 507 and/or 508, as
applicable, in satisfaction of their obligations under this paragraph (b) with
respect thereto, and any such Exchange Offer Registration Statement, as so
amended, shall be referred to herein as and governed by the provisions herein
applicable to, a Shelf Registration Statement.

                  (c) The Issuer shall use its best efforts to keep such Shelf
Registration Statement continuously effective in order to permit the Prospectus
forming a part thereof to be usable by Holders until the earliest of (i) the
180th day following the date on which the Shelf Registration Statement was
declared effective and (ii) such date as of which all the Transfer Restricted
Notes have been sold pursuant to the Shelf Registration Statement (in any such
case, such period being called the "Shelf Registration Period"). The Issuer
shall be deemed not to have used its best efforts to keep the Shelf Registration
Statement effective during the requisite period if it voluntarily takes any
action that would result in Holders of Transfer Restricted Notes covered thereby
not being able to offer and sell such notes during that period, unless such
action is (x) required by applicable law or (y) pursuant to Section 3(d) hereof,
and, in either case, so long as the Issuer promptly thereafter complies with the
requirements of Section 5(k) hereof, if applicable.

                  (d) The Issuer may suspend the use of the Prospectus for a
period not to exceed 30 days in any three-month period or for three periods not
to exceed an aggregate of 90 days in any twelve-month period for valid business
reasons, to be determined by the Issuer in its sole reasonable judgment (not
including avoidance of its obligations hereunder), including, without
limitation, the acquisition or divestiture of assets, public filings with the
Commission, pending corporate developments and similar events; provided that the
Issuer promptly thereafter complies with the requirements of Section 5(k)
hereof, if applicable.

                  (e) No Holder of Transfer Restricted Notes may include any of
its Transfer Restricted Notes in any Shelf Registration Statement pursuant to
this Agreement unless and until such Holder furnishes to the Issuer in writing,
within 20 Business Days after receipt of a request therefor, such information as
the Issuer may reasonably request for use in connection with any Shelf
Registration Statement or Prospectus or preliminary Prospectus included therein.
No Holder of Transfer Restricted Notes shall be entitled to Additional Interest
pursuant to Section 4 hereof unless and until such Holder shall have used its
best efforts to provide all such reasonably requested information. Each Holder
as to which any Shelf Registration Statement is being effected agrees to furnish
promptly to the Issuer all information required to be disclosed in order to make
the information previously furnished to the Issuer by such Holder not
misleading.

                  4. Additional Interest.

                  (a) The parties hereto agree that the Holders of the Exchange
Notes or the Transfer Restricted Notes, as the case may be, will suffer damages
if the Issuer fails to perform its obligations under Section 2 or Section 3
hereof and that it would not be feasible to ascertain the extent of such
damages. Accordingly, in the event that (i) the applicable Registration
Statement is not filed with the Commission on or prior to the date specified
herein for such filing, (ii) the applicable Registration Statement has not been
declared effective by the Commission on or prior to the date specified herein
for such effectiveness after such obligation arises, (iii) if the Exchange Offer
is

                                      -7-
<PAGE>

required to be Consummated hereunder, the Exchange Offer has not been
Consummated by the Issuer within the time period set forth in Section 2(a) or
(iv) the applicable Registration Statement is filed and declared effective but
shall thereafter cease to be effective or usable in connection with the Exchange
Offer or resales of Transfer Restricted Notes during a period in which it is
required to be effective hereunder without being succeeded immediately by any
additional Registration Statement covering the Transfer Restricted Notes or the
Exchange Notes, as the case may be, which has been filed and declared effective
(each such event referred to in clauses (i) through (iv), a "Registration
Default"), then the interest rate on the Transfer Restricted Notes will increase
("Additional Interest"), with respect to the first 90-day period immediately
following the occurrence of such Registration Default, by 0.25% per annum and
will increase by an additional 0.25% per annum with respect to each subsequent
90-day period until such Registration Default has been cured, up to a maximum
amount of 0.50% per annum with respect to all Registration Defaults. Following
the cure of a Registration Default, the accrual of Additional Interest with
respect to such Registration Default will cease and upon the cure of all
Registration Defaults the interest rate on the Transfer Restricted Notes will
revert to the original rate.

                  (b) The Issuer shall notify the Trustee and paying agent under
the Indenture (or the trustee and paying agent under such other indenture under
which any Transfer Restricted Notes are issued) immediately upon the happening
of each and every Registration Default. The Issuer shall pay the Additional
Interest due on the Transfer Restricted Notes by depositing with the paying
agent (which shall not be the Issuer for these purposes) for the Transfer
Restricted Notes, in trust, for the benefit of the Holders thereof, prior to
11:00 A.M. on the next interest payment date specified in the Indenture (or such
other indenture), sums sufficient to pay the Additional Interest then due. The
Additional Interest due shall be payable on each interest payment date specified
by the Indenture (or such other indenture) to the record holders entitled to
receive the interest payment to be made on such date. Each obligation to pay
Additional Interest shall be deemed to accrue from and including the applicable
Registration Default.

                  (c) The parties hereto agree that the Additional Interest
provided for in this Section 4 constitutes a reasonable estimate of the damages
that will be suffered by holders of Transfer Restricted Notes by reason of the
happening of any Registration Default.

                  (d) All of the Issuer's obligations set forth in this Section
4 which are outstanding with respect to any Exchange Note or Transfer Restricted
Note at the time such note ceases to be covered by an effective Registration
Statement shall survive until such time as all such obligations with respect to
such security have been satisfied in full (notwithstanding termination of the
Agreement).

                  5. Registration Procedures. In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply:

                  (a) The Issuer shall furnish to each of the Initial
Purchasers, prior to the filing thereof with the Commission, a copy of any
Registration Statement, and each amendment thereof and each amendment or
supplement, if any, to the Prospectus included therein and shall use its best
efforts to reflect in each such document, when so filed with the Commission,
such comments as each of the Initial Purchasers reasonably may propose.

                  (b) The Issuer shall ensure that:

                                      -8-
<PAGE>

                  (i) any Registration Statement and any amendment thereto and
         any Prospectus contained therein and any amendment or supplement
         thereto complies in all material respects with the Act;

                  (ii) any Registration Statement and any amendment thereto does
         not, when it becomes effective, contain an untrue statement of a
         material fact or omit to state a material fact required to be stated
         therein or necessary to make the statements therein not misleading: and

                  (iii) any Prospectus forming pan of any Registration
         Statement, including any amendment or supplement to such Prospectus,
         does not include an untrue statement of a material fact or omit to
         state a material fact necessary in order to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading;

provided, that no representation or agreement is made hereby with respect to
information with respect to any of the Initial Purchasers, any Underwriter or
any Holder required to be included in any Registration Statement or Prospectus
pursuant to the Act or provided by any of the Initial Purchasers, any Holder or
any Underwriter specifically for inclusion in any Registration Statement or
Prospectus.

                  (c) (1) The Issuer shall advise the Initial Purchasers and, in
the case of a Shelf Registration Statement, the Holders of Transfer Restricted
Notes covered thereby, and, if requested by any of the Initial Purchasers or any
such Holder, confirm such advice in writing:

                  (i) when a Registration Statement and any amendment thereto
         has been filed with the Commission and when the Registration Statement
         or any post-effective amendment thereto has become effective; and

                  (ii) of any request by the Commission for amendments or
         supplements to the Registration Statement or the Prospectus included
         therein or for additional information.

                  (2) The Issuer shall advise the Initial Purchasers and, in the
case of a Shelf Registration Statement, the Holders of Transfer Restricted Notes
covered thereby, and, in the case of an Exchange Offer Registration Statement,
any Exchanging Dealer that has provided in writing to the Issuer a telephone or
facsimile number and address for notices, and, if requested by any of the
Initial Purchasers or any such Holder or Exchanging Dealer, confirm such advice
in writing:

                  (i) of the issuance by the Commission of any stop order
         suspending the effectiveness of the Registration Statement or the
         initiation of any proceedings for that purpose;

                  (ii) of the receipt by the Issuer of any notification with
         respect to the suspension of the qualification of the Transfer
         Restricted Notes included in any Registration Statement for sale in any
         jurisdiction or the initiation or threatening of any proceeding for
         such purpose; and

                  (iii) of the suspension of the use of the Prospectus pursuant
         to Section 5(c) hereof or of the happening of any event that requires
         the making of any changes in the Registration Statement or the
         Prospectus so that, as of such date, the statements therein are not
         misleading and do not omit to state a material fact required to be
         stated therein or necessary to make the

                                      -9-
<PAGE>

         statements therein (in the case of the Prospectus, in light of the
         circumstances under which they were made) not misleading (which advice
         shall be accompanied by an instruction to suspend the use of the
         Prospectus until the requisite changes have been made).

                  (d) The Issuer shall use its best efforts to obtain the
withdrawal of any order suspending the effectiveness of any Registration
Statement at the earliest possible time and in any event shall within 30 days of
any such order (or, if such 30th day is not a Business Day, by the first
Business Day thereafter) amend the Registration Statement covering all of the
Transfer Restricted Notes (whereupon references herein to the Registration
Statement shall be deemed to include reference to such additional filing).

                  (e) The Issuer shall furnish to each Holder of Transfer
Restricted Notes included within the coverage of any Shelf Registration
Statement, without charge, at least one copy of such Shelf Registration
Statement and any post-effective amendment thereto, including financial
schedules, and, if the Holder so requests in writing, all exhibits thereto
(including statements and those incorporated by reference).

                  (f) The Issuer shall, during the Shelf Registration Period,
deliver to each Holder of Transfer Restricted Notes included within the coverage
of any Shelf Registration Statement, without charge, as many copies of the
Prospectus (including each preliminary Prospectus) included in such Shelf
Registration Statement and any amendment or supplement thereto as such Holder
may reasonably request; and the Issuer consents to the use of the Prospectus or
any amendment or supplement thereto by each of the selling Holders of Transfer
Restricted Notes in connection with the offering and sale of the Transfer
Restricted Notes covered by the Prospectus or any amendment or supplement
thereto.

                  (g) The Issuer shall furnish to each Exchanging Dealer that so
requests, without charge, at least one copy of the Exchange Offer Registration
Statement and any post-effective amendment thereto, including financial
statements and schedules, any documents incorporated by reference therein and,
if the Exchanging Dealer so requests in writing, all exhibits thereto (including
those incorporated by reference).

                  (h) The Issuer shall, during the Exchange Offer Registration
Period, deliver to each Exchanging Dealer, without charge, as many copies of the
Prospectus (including each preliminary Prospectus) included in such Exchange
Offer Registration Statement and any amendment or supplement thereto as such
Exchanging Dealer may reasonably request; and the Issuer consents to the use of
the Prospectus or any amendment or supplement thereto by any such Exchanging
Dealer in connection with the offering and sale of the Exchange Notes, as
provided in Section 2(f) above.

                  (i) Prior to the Registered Exchange offer or any other
offering of Transfer Restricted Notes pursuant to any Registration Statement,
the Issuer shall register, qualify or cooperate with the Holders of Transfer
Restricted Notes included therein and their respective counsel in connection
with the registration or qualification of such Transfer Restricted Notes for
offer and sale under the securities or blue sky laws of such states as any such
Holders reasonably request in writing and do any and all other acts or things
necessary or advisable to enable the offer and sale in such jurisdictions of the
Transfer Restricted Notes covered by such Registration Statement; provided,
however, that the Issuer will not be required to qualify generally to do
business in any jurisdiction in which it is not then so qualified, to file any
general consent to seance of process or to take any action which would subject
it to general service of process or to taxation in any such jurisdiction where
it is not then so subject.

                                      -10-
<PAGE>

                  (j) The Issuer shall cooperate with the Holders to facilitate
the timely preparation and delivery of certificates representing Transfer
Restricted Notes to be sold pursuant to any Registration Statement free of any
restrictive legends and in denominations and registered in such names as Holders
may request prior to sales of Transfer Restricted Notes pursuant to such
Registration Statement.

                  (k) Upon the occurrence of any event contemplated by paragraph
(c)(2)(iii) of this Section 5, the Issuer shall promptly prepare and file a
post-effective amendment to any Registration Statement or an amendment or
supplement to the related Prospectus or any other required document so that, as
thereafter delivered to purchasers of the Transfer Restricted Notes included
therein, the Prospectus will not include an untrue statement of a material fact
or omit to state any material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading.

                  (l) The Issuer shall use its reasonable best efforts to cause
The Depository Trust Company ("DTC") on the first Business Day following the
effective date of any Registration Statement hereunder or as soon as possible
thereafter to remove (i) from any existing CUSIP number assigned to the Transfer
Restricted Notes or Exchange Notes, as the case may be, any designation
indicating that such notes are "restricted securities," which efforts shall
include delivery to DTC of a letter executed by the Issuer substantially in the
form of Annex E hereto and (ii) any other stop or restriction on DTC's system
with respect to the Transfer Restricted Notes or Exchange Notes, as the case may
be. In the event the Issuer is unable to cause DTC to take actions described in
the immediately preceding sentence, the Issuer shall take such actions as the
Initial Purchasers may reasonably request to provide, as soon as practicable, a
CUSIP number for the Transfer Restricted Notes or Exchange Notes registered
under such Registration Statement and to cause such CUSIP number to be assigned
to the Transfer Restricted Notes or Exchange Notes (or to the maximum aggregate
principal amount of the securities to which such number may be assigned).

                  (m) The Issuer shall use its best efforts to comply with all
applicable rules and regulations of the Commission and shall make generally
available to its security holders as soon as practicable after the effective
date of the applicable Registration Statement an earnings statement satisfying
the provisions of Section 11(a) of the Act and Rule 158 promulgated thereunder.

                  (n) The Issuer shall cause the Indenture to be qualified under
the Trust Indenture Act in a timely manner.

                  (o) The Issuer may require each Holder of Transfer Restricted
Notes to be sold pursuant to any Shelf Registration Statement to furnish to the
Issuer such information regarding the Holder and the distribution of such
Transfer Restricted Notes as may, from time to time, be reasonably required by
the Act and the rules and regulations promulgated thereunder, and the
obligations of the Issuer to any Holder hereunder shall be expressly conditioned
on the compliance of such Holder with such request.

                  (p) The Issuer shall, if requested, promptly incorporate in a
Prospectus supplement or post-effective amendment to a Shelf Registration
Statement (i) such information as the Majority Holders provide or, if the
Transfer Restricted Notes are being sold in an under written offering, as the
Managing Underwriters and the Majority Holders reasonably agree should be
included therein and provide to the Issuer in writing for inclusion in the Shelf
Registration Statement or Prospectus, and (ii) such information as a Holder may
provide from time to time to the Issuer in writing for inclusion in a Prospectus
or any Shelf Registration Statement concerning such Holder and

                                      -11-
<PAGE>

the distribution of such Holder's Transfer Restricted Notes and, in either case,
shall make all required filings of such Prospectus supplement or post-effective
amendment as soon as practicable after being notified in writing of the matters
to be incorporated in such Prospectus supplement or post-effective amendment.

                  (q) In the case of any Shelf Registration Statement, the
Issuer shall enter into such agreements (including underwriting agreements) and
take all other customary and appropriate actions as may be reasonably requested
in order to expedite or facilitate the registration or the disposition of any
Transfer Restricted Notes, and in connection therewith, if an underwriting
agreement is entered into, cause the same to contain indemnification provisions
and procedures no less favorable than those set forth in Section 7 (or such
other provisions and procedures acceptable to the Majority Holders and the
Managing Underwriters, if any, with respect to all parties to be indemnified
pursuant to Section 7).

                  (r) In the case of any Shelf Registration Statement, the
Issuer shall:

                  (i) make reasonably available for inspection by the Holders of
         Transfer Restricted Notes to be registered thereunder, any Underwriter
         participating in any disposition pursuant to such Shelf Registration
         Statement, and any attorney, accountant or other agent retained by the
         Holders or any such Underwriter, all relevant financial and other
         records, pertinent corporate documents and properties of the Issuer and
         any of its subsidiaries;

                  (ii) cause the Issuer's officers, directors and employees to
         supply all relevant information reasonably requested by the Holders or
         any such Underwriter, attorney, accountant or agent in connection with
         any such Registration Statement as is customary for similar due
         diligence examinations; provided, however, that any information that is
         designated in writing by the Issuer, in its sole discretion, as
         confidential at the time of delivery of such information shall be kept
         confidential by the Holders or any such Underwriter, attorney,
         accountant or agent, unless (x) disclosure thereof is made in
         connection with a court proceeding or required by law; provided that,
         each Holder and any such Managing Underwriter, attorney, accountant or
         agent will, upon learning that disclosure of such information is sought
         in a court proceeding or required by law, give reasonable notice to the
         Issuer with enough time to allow the Issuer to undertake appropriate
         action to prevent disclosure at the Issuer's sole expense, or (y) such
         information becomes available to the public generally through the
         Issuer or through a third party without an accompanying obligation of
         confidentiality;

                  (iii) make such representations and warranties to the Holders
         of Transfer Restricted Notes registered thereunder and the Managing
         Underwriters, if any, in form, substance and scope as are customarily
         made by issuers to Managing Underwriters and covering matters
         including, but not limited to, those set forth in the Purchase
         Agreement;

                  (iv) obtain opinions of counsel to the Issuer and updates
         thereof (which counsel and opinions, in form, scope and substance,
         shall be reasonably satisfactory to the Managing Underwriters, if any)
         addressed to each selling Holder and the Managing Underwriters, if any,
         covering such matters as are customarily covered in opinions requested
         in underwritten offerings and such other matters as may be reasonably
         requested by such Holders and Managing Underwriters;

                  (v) obtain "cold comfort" letters and updates thereof from the
         independent certified public accountants of the Issuer (and, if
         necessary, any other independent certified

                                      -12-
<PAGE>

         public accountants of any subsidiary of the Issuer or of any business
         acquired by the Issuer for which financial statements and financial
         data are, or are required to be, included in the Registration
         Statement), addressed to each selling Holder of the Transfer Restricted
         Notes covered by such Shelf Registration Statement (provided such
         Holder furnishes the accountants with such representations as the
         accountants customarily require in similar situations) and the Managing
         Underwriters, if any, in customary form and covering matters of the
         type customarily covered in "cold comfort" letters in connection with
         primary underwritten offerings;

                  (vi) deliver such documents and certificates as may be
         reasonably requested by the Majority Holders and the Managing
         Underwriters, if any, including those to evidence compliance with
         Section 5(i) and with any customary conditions contained in the
         underwriting agreement or other agreement entered into by the Issuer;
         and

                  (vii) The foregoing actions set forth in clauses (iii), (iv),
         (v) and (vi) of this Section 5(r) shall be performed at (A) the
         effectiveness of such Shelf Registration Statement and each
         post-effective amendment thereto and (B) each closing under any
         underwriting or similar agreement as and to the extent required
         thereunder.

                  (s) The Issuer shall, if and to the extent required under the
Act and/or the Trust Indenture Act and the rules and regulations thereunder in
order to register the Transfer Restricted Notes (including any guarantees
thereof) under the Act and qualify the Indenture under the Trust Indenture Act,
cause each guarantor, if any, to sign any Registration Statement and take all
other action necessary to register any such guarantees under the applicable
Registration Statement.

                  6. Registration Expenses. The Issuer shall bear all expenses
incurred in connection with the performance of its obligations under Sections 2,
3, 4 and 5 hereof (other than brokers', dealers' and underwriters' discounts and
commissions and brokers', dealers' and underwriters' counsel fees) and shall
reimburse the Holders for the reasonable fees and disbursements of one firm or
counsel designated by the Majority Holders to act as counsel for the Holders in
connection therewith.

                  7. Indemnification and Contribution.

                  (a) (i) In connection with any Registration Statement, the
         Issuer agrees to indemnify and hold harmless each Holder of Transfer
         Restricted Notes covered thereby, the directors, officers, employees
         and agents of each such Holder and each person who controls any such
         Holder within the meaning of either the Act or the Exchange Act against
         any and all losses, claims, damages or liabilities, joint or several,
         to which they or any of them may become subject under the Act, the
         Exchange Act or other Federal or state statutory law or regulation. at
         common law or otherwise, insofar as such losses, claims, damages or
         liabilities (or actions in respect thereof) arise out of or are based
         upon any untrue statement or alleged untrue statement of a material
         fact contained in the Registration Statement as originally filed or in
         any amendment thereof, in any preliminary Prospectus or Prospectus or
         in any amendment thereof or supplement thereto, or arise out of or are
         based upon the omission or alleged omission to state therein a material
         fact required to be stated therein or necessary to make the statements
         therein not misleading, and agree to reimburse each such indemnified
         party, as incurred, for any legal or other expenses reasonably incurred
         by them in connection with investigating or defending any such loss,
         claim, damage, liability or action: provided, however, that the Issuer
         will not be liable in any case to the extent that

                                      -13-
<PAGE>

         any such loss, claim, damage or liability arises out of or is based
         upon (A) any such untrue statement or alleged untrue statement or
         omission or alleged omission made therein in reliance upon and in
         conformity with written information relating to the Holder furnished to
         the Issuer by or on behalf of any such Holder specifically for
         inclusion therein, (B) use of a Registration Statement or the related
         Prospectus during a period when a stop order has been issued in respect
         of such Registration Statement or any proceedings for that purpose have
         been initiated or use of a Prospectus when use of such Prospectus has
         been suspended pursuant to Section 5(c); provided, further, in each
         case, that Holders received prior notice of such stop order, initiation
         of proceedings or suspension or (C) if the Holder is required to but
         does not deliver a Prospectus or the then current Prospectus. This
         indemnity agreement will be in addition to any liability which the
         Issuer may otherwise have.

                  (ii) The Issuer also agrees to indemnify or contribute to
         Losses, as provided in Section 7(d), of any Managing Underwriters of
         Transfer Restricted Notes registered under a Registration Statement,
         their officers and directors and each person who controls such Managing
         Underwriters on substantially the same basis as that of the
         indemnification of the selling Holders provided in this Section 7(a)
         and shall, if requested by any Holder, enter into an underwriting
         agreement reflecting such agreement, as provided in Section 5(q)
         hereof.

                  (b) Each Holder of Transfer Restricted Notes covered by a
Registration Statement severally agrees to indemnify and hold harmless the
Issuer, its directors, officers, employees and agents and each person who
controls the Issuer within the meaning of either the Act or the Exchange Act to
the same extent as the foregoing indemnity from the Issuer to each such Holder,
but only with reference to written information relating to such Holder furnished
to the Issuer by or on behalf of such Holder specifically for inclusion in the
documents referred to in the foregoing indemnity. This indemnity agreement will
be in addition to any liability which any such Holder may otherwise have.

                  (c) Promptly after receipt by an indemnified party under this
Section 7 of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section 7, notify the indemnifying party in writing of the
commencement thereof; but the failure so to notify the indemnifying patty (i)
will not relieve it from liability under paragraph (a) or (b) above unless and
to the extent it did not otherwise learn of such action and such failure results
in the forfeiture by the indemnifying patty of substantial rights and defenses
and (ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation
provided in paragraph (a) or (b) above. The indemnifying party shall be entitled
to appoint counsel of the indemnifying party's choice at the indemnifying
party's expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be satisfactory to the indemnified
party. Notwithstanding the indemnifying party's election to appoint counsel to
represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including, local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel (and local counsel) if (i) the use of counsel chosen by the
indemnifying party to represent the indemnified party would present such counsel
with a conflict of interest, (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded
that there may be legal defenses available to it and/or other indemnified
parties which are different from or additional to those available to the
indemnifying party, (iii) the indemnifying party

                                      -14-
<PAGE>

shall not have employed counsel satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action or (iv) the indemnifying party shall have authorized
the indemnified party to employ separate counsel at the expense of the
indemnifying party, provided further, that the indemnifying party shall not be
responsible for the fees and expenses of more than one separate counsel
(together with appropriate local counsel) representing all the indemnified
parties under paragraph (a) or paragraph (b) above. An indemnifying party will
not, without the prior written consent of the indemnified parties, settle or
compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the
indemnified parties are actual or potential parties to such claim or action)
unless such settlement, compromise or consent includes an unconditional release
of each indemnified party from all liability arising out of such claim, action,
suit or proceeding.

                  (d) In the event that the indemnity provided in paragraph (a)
or (b) of this Section 7 is unavailable to or insufficient to hold harmless an
indemnified party for any reason, then each applicable indemnifying party, in
lieu of indemnifying such indemnified party, shall have a joint and several
obligation to contribute to the aggregate losses, claims, damages and
liabilities (including legal or other expenses reasonably incurred in connection
with investigating or defending same) (collectively "Losses") to which such
indemnified party may be subject in such proportion as is appropriate to reflect
the relative benefits received by such indemnifying party, on the one hand, and
such indemnified party, on the other hand, from the Registration Statement which
resulted in such Losses; provided, however, that in no case shall any
Underwriter be responsible for any amount in excess of the underwriting discount
or commission applicable to the Transfer Restricted Notes purchased by such
Underwriter under the Registration Statement which resulted in such Losses. If
the allocation provided by the immediately preceding sentence is unavailable for
any reason, the indemnifying party and the indemnified party shall contribute in
such proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations. Benefits received by the Issuer shall be deemed to be equal to
the sum of (x) the aggregate principal amount of the Notes and (y) the total
amount of Additional Interest which the Issuer was not required to pay as a
result of registering the Transfer Restricted Notes covered by the Registration
Statement which resulted in such Losses. Benefits received by any Holder shall
be deemed to be equal to the value of receiving Transfer Restricted Notes
registered under the Act. Benefits received by any Underwriter shall be deemed
to be equal to the total underwriting discounts and commissions, as set forth on
the cover page of the Prospectus forming a part of the Registration Statement
which resulted in such Losses. Relative fault shall be determined by reference
to, among other things, whether any alleged untrue statement or omission relates
to information provided by the indemnifying party, on the one hand, or by the
indemnified party, on the other hand. The parties agree that it would not be
just and equitable if contribution were determined by pro rata allocation or any
other method of allocation which does not take account of the equitable
considerations referred to above. Notwithstanding the provisions of this
paragraph (d), no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. For purposes of
this Section 7, each person who controls a Holder within the meaning of either
the Act or the Exchange Act and each director, officer, employee and agent of
such Holder shall have the same rights to contribution as such Holder, and each
person who controls the Issuer within the meaning of either the Act or the
Exchange Act and each director, officer, employee and agent of the Issuer shall
have the same rights to contribution as the Issuer, subject in each case to the
applicable terms and conditions of this paragraph (d).

                                      -15-
<PAGE>

                  (e) The provisions of this Section 7 will remain in full force
and effect, regardless of any investigation made by or on behalf of any Holder,
the Issuer or any of the officers, directors or controlling persons referred to
in Section 7 hereof, and will survive the sale by a Holder of Transfer
Restricted Notes covered by a Registration Statement.

                  8. Miscellaneous.

                  (a) No Inconsistent Agreements. The Issuer has not, as of the
date hereof, entered into nor shall it, on or after the date hereof, enter into
any agreement that is inconsistent with the rights granted to the Holders herein
or otherwise conflicts with the provisions hereof.

                  (b) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, qualified,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Issuer has obtained the written
consent of the Majority Holders. Notwithstanding the foregoing, a waiver or
consent to departure from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose Transfer Restricted Notes are
being sold pursuant to a Shelf Registration Statement or whose Notes are being
exchanged pursuant to an Exchange Offer Registration Statement, as the case may
be, and which does not directly or indirectly affect the rights of other Holders
may be given by such Holders, determined on the basis of Notes being sold rather
than registered. Notwithstanding any of the foregoing, no amendment,
modification, supplement, waiver or consents to any departure from the
provisions of Section 7 hereof shall be effective as against any Holder of
Transfer Restricted Notes unless consented to in writing by such Holder.

                  (c) Notices. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, first-class
mail, telex, telecopier, or air courier guaranteeing overnight delivery:

                  (i) if to the Initial Purchasers, as follows:

                      First Union Capital Markets
                      301 South College Street, TW-10
                      Charlotte, NC 28288-0606
                      Attention: Corporate Finance Department

                      BT Alex. Brown Incorporated
                      300 South Grand Avenue, 41st Floor
                      Los Angeles, CA 90071
                      Attention: Financial Sponsors Group

                      Donaldson, Lufkin & Jenrette Securities Corporation
                      277 Park Avenue
                      New York, NY 10172
                      Attention: Syndicate Department

                  (ii) if to any other Holder, at the most current address given
         by such Holder to the Issuer in accordance with the provisions of this
         Section 8(c), which address initially is, with respect to each Holder,
         the address of such Holder maintained by the registrar under the
         Indenture, with a copy in like manner to the Initial Purchaser; and

                                      -16-
<PAGE>

                  (iii) if to the Issuer, as follows:

                        Diamond Triumph Auto Glass, Inc.
                        220 Division Street
                        Kingston, Pennsylvania 18704
                        Attention: General Counsel

                  All such notices and communications shall be deemed to have
been duly given when received, if delivered by hand or air courier, and when
sent, if sent by first-class mail, telex or telecopier.

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

                  (d) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of each of the
parties, including, without the need for an express assignment or any consent by
the Issuer thereto, subsequent Holders. The Issuer hereby agrees to extend the
benefits of this Agreement to any Holder and any such Holder may specifically
enforce the provisions of this Agreement as if an original party hereto.

                  (e) Counterparts. This agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

                  (f) Headings. The headings in this agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (g) Governing Law. This agreement shall be governed by and
construed in accordance with the laws of the State of New York applicable to
agreements made and to be performed in said State, without regard to the
conflicts of law rules thereof.

                  (h) Severability. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstances, is
held invalid, illegal or unenforceable in any respect for any reason, the
validity, legality and enforceability of any such provision in every other
respect and of the remaining provisions hereof shall not be in any way impaired
or affected thereby, it being intended that all of the rights and privileges of
the parties shall be enforceable to the fullest extent permitted by law.

                  (i) Notes Held by the Issuer, etc. Whenever the consent or
approval of Holders of a specified percentage of principal amount of Transfer
Restricted Notes or Exchange Notes is required hereunder, Transfer Restricted
Notes or Exchange Notes held by the Issuer or its Affiliates (other than
subsequent Holders of Transfer Restricted Notes or Exchange Notes if such
subsequent Holders are deemed to be Affiliates solely by reason of their
holdings of such notes) shall not be counted in determining whether such consent
or approval was given by the Holders of such required percentage.

                                      -17-
<PAGE>

                  Please confirm that the foregoing correctly sets forth the
agreement among the Issuer and the Initial Purchasers.

                                      Very truly yours,

                                      DIAMOND TRIUMPH AUTO GLASS, INC.

                                      By: /s/ Kenneth Levine
                                          ------------------------------------
                                          Name: Kenneth Levine
                                          Title: Co-Chief Executive Officer

The foregoing Agreement is hereby
accepted as of the date first written above on
behalf of itself and the other Initial Purchasers.

FIRST UNION CAPITAL MARKETS,
A DIVISION OF WHEAT FIRST SECURITIES, INC.

By:    /s/ Eric Lloyd
      ----------------------------
Name: Eric Lloyd
      Title: Director

<PAGE>

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