Document:

<PAGE>
                                                                   EXHIBIT 10.22

                               ONE GALLERIA TOWER

                                 LEASE AGREEMENT

                                     between

                      DALLAS GALLERIA LIMITED ("LANDLORD")

                                       and

                               AMTECH CORPORATION
                                doing business as
                                AMTC CORPORATION,
                                   ("TENANT")

                               Date: July 10, 1998

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                              Page
                                                                                              ----
<S>                                                                                           <C>
I ..........................................................................................   -1-
       1.1    LEASED PREMISES ..............................................................   -1-

II .........................................................................................   -2-
       2.1    TERM .........................................................................   -2-
       2.2    USE ..........................................................................   -2-
       2.3    CONDITION OF LEASED PREMISES .................................................   -3-
       2.4    SURVIVAL .....................................................................   -3-
       2.5    RELOCATION RIGHT .............................................................   -3-

III ........................................................................................   -4-
       3.1    RENTAL PAYMENTS ..............................................................   -4-
       3.2    BASE RENTAL ..................................................................   -5-
       3.3    SECURITY DEPOSIT .............................................................  -10-

IV .........................................................................................  -10-
       4.1    SERVICES TO BE FURNISHED BY LANDLORD .........................................  -10-
       4.2    KEYS AND LOCKS ...............................................................  -13-
       4.3    WINDOW COVERINGS .............................................................  -13-
       4.4    GRAPHICS .....................................................................  -13-
       4.5    REPAIRS BY LANDLORD ..........................................................  -13-
       4.6    PEACEFUL ENJOYMENT ...........................................................  -14-
       4.7    NO WARRANTIES ................................................................  -14-
       4.8    FORCE MAJEURE ................................................................  -14-

V ..........................................................................................  -14-
       5.1    PAYMENTS BY TENANT ...........................................................  -14-
       5.2    DAMAGE TO PROJECT ............................................................  -14-
       5.3    CARE OF THE LEASED PREMISES ..................................................  -14-
       5.4    ASSIGNMENT AND SUBLETTING ....................................................  -15-
       5.5    ALTERATIONS, ADDITIONS, AND IMPROVEMENTS .....................................  -17-
       5.6    LEGAL USE AND VIOLATIONS OF INSURANCE COVERAGE ...............................  -19-
       5.7    LEGAL REQUIREMENTS; RULES OF THE PROJECT .....................................  -19-
       5.8    RIGHTS RESERVED BY LANDLORD ..................................................  -20-
       5.9    NUISANCE .....................................................................  -21-
       5.10   SUBORDINATION ................................................................  -21-
       5.11   ESTOPPEL CERTIFICATE .........................................................  -21-
       5.12   TENANT'S REMEDIES ............................................................  -21-
       5.13   NAME OF BUILDING AND PROJECT .................................................  -21-

VI .........................................................................................  -22-
       6.1    CONDEMNATION .................................................................  -22-
       6.2    DAMAGES FROM CERTAIN CAUSES ..................................................  -22-
       6.3    [INTENTIONALLY OMITTED].......................................................  -22-
       6.4    HOLDING OVER .................................................................  -23-
       6.5    CASUALTY .....................................................................  -23-
</TABLE>

                                       -i-

<PAGE>

<TABLE>
         <S>                                                                                                       <C>
         6.6    ATTORNEYS' FEES ...............................................................................   -23-
         6.7    ASSIGNMENTS BY LANDLORD .......................................................................   -24-
         6.8    DEFAULT BY TENANT .............................................................................   -24-
         6.9    INSOLVENCY OR BANKRUPTCY ......................................................................   -26-
         6.10   NON-WAIVER ....................................................................................   -26-
         6.11   CASUALTY INSURANCE ............................................................................   -27-
         6.12   LIABILITY INSURANCE ...........................................................................   -27-
         6.13   HOLD HARMLESS .................................................................................   -27-
         6.14   WAIVER OF SUBROGATION RIGHTS ..................................................................   -27-
         6.15   PARKING .......................................................................................   -27-
         6.16   SEVERABILITY ..................................................................................   -28-
         6.17   NOTICES .......................................................................................   -29-
         6.18   SUCCESSORS ....................................................................................   -29-
         6.19   ENTIRETY ......................................................................................   -29-
         6.20   FINANCIAL STATEMENTS ..........................................................................   -30-
         6.21   AMENDMENTS ....................................................................................   -30-
         6.22   VACATING THE LEASED PREMISES ..................................................................   -30-
         6.23   MISCELLANEOUS .................................................................................   -30-
</TABLE>

EXHIBITS
--------
         A      - Description of Land
         B      - Floor Plan of Leased Premises
         C      - Schedule of Building Standard Improvements
         D      - Project Rules & Regulations

                                      -ii-

<PAGE>

                                      INDEX
                                      -----

                                  DEFINED TERMS
                                  -------------

<TABLE>
<CAPTION>
TERM                                                                                                              PAGE
----                                                                                                              ----
<S>                                                                                                               <C>
Access Equipment .............................................................................................    -13-
Actual Tenant ................................................................................................    -17-
Additional Electrical Equipment ..............................................................................    -11-
Affiliate ....................................................................................................    -15-
Annual Reconciliation Payment ................................................................................     -6-
Base Rental ..................................................................................................     -5-
Base Rental Adjustment .......................................................................................     -5-
Base Rental Rate .............................................................................................     -5-
Basic Cost Component .........................................................................................     -5-
Basic Costs ..................................................................................................     -6-
Building .....................................................................................................     -1-
Building Operating Hours .....................................................................................    -10-
Building Standard ............................................................................................     -3-
Building Standard Improvements ...............................................................................    C-1
Building Standard Rated Electrical Design Load ...............................................................    -11-
Building Standard Services ...................................................................................    -10-
Business Days ................................................................................................    -31-
Commencement Date ............................................................................................     -2-
Common Areas .................................................................................................     -2-
Company ......................................................................................................    -15-
Complex ......................................................................................................     -1-
Control ......................................................................................................    -15-
Costs ........................................................................................................    -20-
Effective Date ...............................................................................................     -1-
Environmental Laws ...........................................................................................    -20-
Event of Default .............................................................................................    -24-
First Month's Rent ...........................................................................................    -10-
Garage .......................................................................................................     -1-
General Common Areas .........................................................................................     -2-
Governmental Authority .......................................................................................    -19-
Hazardous Materials ..........................................................................................    -20-
Holidays .....................................................................................................    -10-
Interest Rate ................................................................................................     -5-
Janitorial Specifications ....................................................................................    -11-
Land .........................................................................................................     -1-
Landlord .....................................................................................................     -1-
Lease ........................................................................................................     -1-
Leased Premises ..............................................................................................     -1-
Legal Requirements ...........................................................................................    -19-
Must Take Unreserved Permits .................................................................................    -27-
Net Rentable Area ............................................................................................     -l-
New Premises .................................................................................................     -3-
Notice .......................................................................................................    -15-
Operating Expenses ...........................................................................................     -6-
</TABLE>

                                      -iii-

<PAGE>

<TABLE>
<S>                                                                                                            <C>
Optional Unreserved Permits ...............................................................................    -28-
Outside Contractor ........................................................................................    -18-
Parking Permits ...........................................................................................    -28-
Parking Rental ............................................................................................    -28-
PCB .......................................................................................................    -20-
Permitted Affiliate .......................................................................................    -15-
Project ...................................................................................................     -1-
Project Rules .............................................................................................    -20-
Release ...................................................................................................    -20-
Relocation Effective Date .................................................................................     -4-
Relocation Notice .........................................................................................     -3-
Rent ......................................................................................................     -5-
Reportable Quantity .......................................................................................    -20-
Reserved Permits ..........................................................................................    -28-
Security Deposit ..........................................................................................    -10-
Service Areas .............................................................................................     -1-
Service Interruption ......................................................................................    -13-
Successor .................................................................................................    -21-
Tenant ....................................................................................................     -1-
Term ......................................................................................................     -2-
Unreserved Permits ........................................................................................    -28-
Usable Area ...............................................................................................     -2-
</TABLE>

                                      -iv-

<PAGE>

                                 LEASE AGREEMENT
                                 ---------------

THE STATE OF TEXAS

COUNTY OF DALLAS

         THIS LEASE AGREEMENT (this "Lease") is made and entered into as of July
                                     -----
10th, 1998 (the "Effective Date") between DALLAS GALLERIA LIMITED, a Texas
                   --------- ----
limited partnership ("Landlord"), and AMTECH CORPORATION, a Texas corporation,
                      --------
doing business as AMTC CORPORATION ("Tenant").
                                     ------

                              W I T N E S S E T H:
                               - - - - - - - - - -

          In consideration of the sum of Ten Dollars ($10.00) and other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and
each in consideration of the duties, covenants and obligations of the other
hereunder, Landlord and Tenant hereby agree as follows:

                                       I.

          1.1 LEASED PREMISES. Subject to and upon the terms, provisions and
conditions hereinafter set forth, Landlord does hereby lease to Tenant and
Tenant does hereby lease from Landlord those certain premises (the "Leased
                                                                    ------
Premises") in the building commonly referred to as One Galleria Tower as of the
--------
date hereof (the "Building") located in Dallas, Texas on the land (the "Land"
                  --------                                              ----
described on Exhibit A (the Building, the Land, the Garage [defined below], the
             ------- -
structural walkway that connects the Building to the Garage, and all additional
improvements and additional facilities now or hereafter located on the Land that
serve the Building or the tenants of the Building hereinafter referred to as the
"Project"), such Leased Premises being more particularly described as follows:
 -------

     Approximately six thousand nine hundred ten (6,910) square feet of Net
     Rentable Area (defined below) on Floor 15 of the Building as reflected
     on the floor plans of such Leased Premises attached hereto as Exhibit B.
                                                                   ------- -

          "Garage" shall mean the parking garage located immediately south of
           -----
and adjacent to the Building designated by Landlord for use by tenants and
visitors of the Building.

          "Complex" shall mean the integrated mixed-use development as it may be
           -------
modified from time to time commonly referred to as the "Galleria" located on the
land bounded by Dallas Parkway, Alpha Road, Noel Road and LBJ Freeway access
road and of which the Project is a part.

         "Net Rentable Area" shall mean the area or areas of space
          --- -------- ----
within the Building determined as follows: (i) Net Rentable Area in the case of
a full floor leased to a single tenant is determined by measuring from the
inside surface of the outer pane of glass and extensions of the plane thereof in
non-glass areas to the inside surface of the opposite outer pane of glass and
extensions of the plane thereof in non-glass areas and shall include all areas
enclosed by such surfaces, excluding only Service Areas (defined below) and
General Common Areas (defined below), plus an allocation of the square footage
of the General Common Areas, and (ii) Net Rentable Area in the case of a floor
leased to more than one tenant (i.e., a multi-tenant floor) shall include the
total square footage of all floor areas enclosed by the inside surface of the
outer pane of glass and extensions of the plane thereof in non-glass areas and
by demising walls (measured from the midpoint of demising walls), excluding only
Service Areas and General Common Areas, plus an allocation of the square footage
of the Common Areas (defined below) and the General Common Areas. In determining
Net Rentable Area pursuant to (i) and (ii) above, no deduction from Net Rentable
Area shall be made for columns or projections necessary to the Building.

                                       -1-

<PAGE>

         "Service Areas" shall mean the total square footage within vertical
          -------------
penetrations such as (and measured from the midpoint of the walls enclosing)
Building stairs, elevator shafts, fire towers, flues, vents, stacks, vertical
pipe shafts, and vertical ducts; however, structural columns are not included in
Service Areas. Areas for the specific use of Tenant or other tenants of the
Project or installed at the request of Tenant or other tenants such as special
stairs or elevators are not included within the definition of Service Areas.

         "General Common Areas" shall mean the total square footage within (and
          --------------------
measured from the midpoint of the walls enclosing or from the inside surface of
the outer pane of glass enclosing, or extensions of the plane thereof in
non-glass areas) the Building's elevator machine rooms, main mechanical rooms,
loading dock facilities, telephone switch rooms, main electrical rooms, public
lobbies (including the main floor lobby of the Building, and the third floor
lobby of the Building), engineering, security, postal and cleaning areas, and
other areas not leased or held for lease within the Building but which are
necessary or desirable for the proper utilization of the Building or to provide
customary services to the Building. The allocation of the square footage of the
General Common Areas referred to in this Section 1.1 shall be equal to the total
square footage of the General Common Areas multiplied by a fraction, the
numerator of which is the Net Rentable Area of the Leased Premises (excluding
the allocation of the General Common Areas) and the denominator of which is the
total of all Net Rentable Area of space leased or held for lease as office space
or retail space contained in the Building (excluding the allocation of the
General Common Areas).

        "Common Areas" shall mean the total square footage of all areas within
         ------------
(and measured from the midpoint of the walls enclosing or inside surface of the
outer pane of glass enclosing) public corridors, elevator foyers, rest rooms,
mechanical rooms, janitor closets, telephone, electrical and equipment rooms,
and other similar facilities for the use of all tenants on the floor on which
the Leased Premises are located. The allocation of the square footage of the
Common Areas shall be equal to the total square footage of the Common Areas on
said floor multiplied by a fraction, the numerator of which is the Net Rentable
Area of the portion of the Leased Premises (excluding the allocations of General
Common Areas and Common Areas) located on said floor and the denominator of
which is the total of all Net Rentable Area on said floor (excluding the
allocations of General Common Areas and Common Areas).

        "Usable Area" shall mean (A) in the case of a full floor leased
         -----------
entirely by a single tenant, the Net Rentable Area of the floor area minus the
allocation of General Common Areas (it being agreed that Common Areas are
included in the calculations of Usable Area in the case of a full floor leased
entirely by a single tenant), and (B) in the case of a floor not leased entirely
by one tenant, the Net Rentable Area of the floor area minus the allocation of
General Common Areas and Common Areas which were included in Net Rentable Area
pursuant to this Section 1.1.

        The Net Rentable Area in the Leased Premises has been calculated as of
the Effective Date on the basis of the foregoing definition and is hereby
stipulated for all purposes hereof to be 6,910 square feet as of the Effective
Date (and such amount shall not be adjusted as a result of minor variations
resulting from actual construction and completion of the Leased Premises for
occupancy so long as such work is done in accordance with the terms and
provisions of this Lease).

                                       II.

        2.1 TERM. Subject to and upon the terms and conditions set forth
herein, or in any exhibit or addendum attached hereto, the term of this Lease
(the "Term") shall commence on July 10, 1998 (the "Commencement Date") and shall
      ----                                         -----------------
expire at 6:00 P.M. on the day immediately preceding the same date of the
sixtieth (60th) calendar month after the Commencement Date.

        2.2 USE. The Leased Premises are to be used and occupied by Tenant
solely for general office and administrative purposes consistent with the uses
of first class high-rise office buildings in metropolitan Dallas, Texas, and for
no other purpose. Notwithstanding anything to the contrary in this Lease, the
Leased Premises shall not be used for any purpose which would (i) adversely
affect the appearance of the Project, (ii) be visible from the exterior

                                       -2-

<PAGE>

of, or the public areas of, the Project, (iii) adversely affect ventilation in
other areas of the Project (including without limitation, the creation of
offensive odors), (iv) create unreasonable elevator loads, (v) cause structural
loads to be exceeded, (vi) create unreasonable noise levels, (vii) otherwise
unreasonably interfere with Project operations or other tenants of the Project,
or (viii) violate Legal Requirements (defined in Section 5.7 hereof). In all
events, Tenant shall not engage in any activity which is not in keeping with the
first-class standards of the Project.

        Without limiting the foregoing, Tenant agrees that Tenant will not use
any part of the Leased Premises for the following uses: health care services
(provided that management, administration and related services provided to a
health care provider shall not be prohibited hereby; however, in no event may
any portion of the Leased Premises be used for the treatment of patients),
telephone or telegraph agency, radio, television or other communication station,
employment agency, public restaurant or bar, retail, wholesale or discount shop
for sale of merchandise, retail service shop, school or classroom (except as
incidental to office uses but not as the principal use thereof), or governmental
or quasi-governmental bureau, department or agency.

        2.3 CONDITION OF LEASED PREMISES.

        (a) Tenant has made a complete examination and inspection of the Leased
Premises and accepts the same in its current condition, as-is, without recourse
to Landlord, and Landlord shall have no obligation to complete any improvements
to the Leased Premises. ADDITIONALLY, LANDLORD SHALL MAKE NO WARRANTIES, EXPRESS
OR IMPLIED, WITH RESPECT TO THE LEASEHOLD IMPROVEMENTS IN THE LEASED PREMISES.
ALL IMPLIED WARRANTIES WITH RESPECT THERETO, INCLUDING BUT NOT LIMITED TO THOSE
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY NEGATED
AND WAIVED. Tenant shall not be permitted to take occupancy of the Leased
Premises prior to the Commencement Date. It is expressly understood that nothing
in this Section 2.4 shall relieve Landlord from its obligations that are
expressly set forth elsewhere in this Lease.

        (b) As used in this Lease, "Building Standard" shall mean such materials
                                    -------- --------
and improvements as are currently being used by Landlord in the base Building
and the Building Standard Improvements (defined in Exhibit C), or materials of
                                                   ---------
comparable quality as may be substituted therefor by Landlord.

        2.4 SURVIVAL. Any claim, cause of action, liability or obligation
arising during the Term and under the provisions hereof in favor of a party
hereto and against or obligating the other party hereto shall survive the
expiration or any earlier termination of this Lease.

        2.5 RELOCATION RIGHT. If the Leased Premises are less than 10,000 square
feet of Net Rentable Area, then upon written notice to Tenant (the "Relocation
                                                                    ----------
Notice"), Landlord may substitute for the Leased Premises other premises in the
------
Building (the "New Premises"), in which event the New Premises shall be deemed
               --- --------
to be the Leased Premises for all purposes under this Lease, provided:

            (a)      The New Premises must:

                     (i)      be of substantially comparable size to the Leased
                              Premises

                     (ii)     constitute contiguous space on a floor;

                     (iii)    be located in the same elevator bank as the Leased
                              Premises; and

                     (iv)     be located with elevator exposure similar to the
                              Leased Premises.

            (b)      To the extent Tenant shall have incurred any expense in the
    installation of any leasehold improvements in the Leased Premises, Landlord
    and Tenant shall cooperate in good faith to cause

                                       -3-

<PAGE>

       such leasehold improvements to be reproduced for the New Premises as
       closely as practicable as those installed in the Leased Premises and at
       Landlord's expense so that Tenant shall not bear the expense in
       connection therewith by reason of the exercise by Landlord of the
       relocation right contained herein, and Landlord shall reimburse Tenant
       for the reasonable actual costs incurred by Tenant (including the
       reprinting of a three (3) months' supply of stationery and business cards
       and the relocation of existing telephone lines and computer equipment) to
       physically move Tenant's personal property from the Leased Premises to
       the New Premises;

                     (c)    The effective date of such substitution (the
       "Relocation Effective Date") shall be the date specified in the
        ---------- --------- ----
       Relocation Notice or, if Landlord is required to perform tenant finish
       work pursuant to subsection (b) above, then the date such tenant finish
       work is substantially completed (which date shall be accelerated a day
       for each day the performance of the tenant finish work is delayed by the
       actions of Tenant or its agents, employees, contractors or
       representatives, either by changes to the plans for such work, or
       otherwise, so that the Relocation Effective Date will be the date the
       Relocation Effective Date would have occurred but for such delays).

                     Tenant shall move from the Leased Premises to the New
       Premises and shall surrender possession of the Leased Premises as
       provided in Section 5.3 by the Relocation Effective Date. If Tenant
       occupies the Leased Premises after the Relocation Effective Date, then
       Tenant's occupancy of the Leased Premises shall be a tenancy at will (and
       without limiting all other rights and remedies available to Landlord,
       including without limitation, instituting a forcible detainer suit),
       Tenant shall pay the Base Rental and Base Rental Adjustment for the
       Leased Premises as provided in Section 6.4 and all other Rent (defined in
       Section 3.1) due therefor until such occupancy of the Leased Premises
       ends (which amounts shall be in addition to, and not in lieu of, the Rent
       due for the New Premises); and

                     (d)    All of the terms, covenants and conditions of this
       Lease, including without limitation, the Base Rental and other Rent
       payable under this Lease, shall remain the same for the New Premises as
       are stated herein to be applicable for the Leased Premises except the
       Lease shall be amended (i) to identify the space comprising the New
       Premises after such relocation as the Leased Premises, (ii) to state the
       Net Rentable Area of the New Premises, and (iii) to adjust the Base
       Rental as necessary due to any differences in the Net Rentable Area of
       the New Premises.

                                      III.

              3.1    RENTAL PAYMENTS.

              (a)    Commencing on the Commencement Date and continuing
thereafter throughout the Term, Tenant hereby agrees to pay Base Rental (defined
in Section 3.2) as adjusted by the Base Rental Adjustment (defined in Section
3.2) in accordance with this Section 3.1 and Section 3.2. Base Rental as
adjusted by the Base Rental Adjustment (excluding the Annual Reconciliation
Payment [defined in Section 3.2 below]) shall be due and payable in twelve (12)
equal monthly installments on the first day of each calendar month during the
Term (subject to the provisions of subsection (b) below), and Tenant hereby
agrees to so pay such rent monthly in advance and without demand to Dallas
Galleria Limited, P. 0. Box 910420, Dallas, Texas 75391 (or such other address
as may be designated in writing by Landlord from time to time). Notwithstanding
the foregoing, Base Rental for the first (1st) month of the Term shall be paid
to Landlord on the Effective Date as provided in Section 3.3 below. Parking
Rental shall be due and payable in accordance with this Section 3.1 and Section
6.15.

              (b)    If the Commencement Date is other than the first day of a
calendar month or if this Lease expires or terminates on other than the last day
of a calendar month, then the installments of Base Rental and Parking Rental for
such month or months shall be prorated and the installment or installments so
prorated shall be paid in advance. Said installments for such prorated month or
months shall be calculated by multiplying the equal monthly

                                       -4-

<PAGE>

installment by a fraction, the numerator of which shall be the number of days of
the Term occurring during said commencement or expiration month, as the case may
be, and the denominator of which shall be the number of days in said month.
Landlord and Tenant hereby agree that the provisions of this Section 3.1(b)
shall survive the expiration or termination of this Lease.

              (c)    Tenant agrees to pay all rent and other sums of money as
shall become due from and payable by Tenant to Landlord under this Lease
(collectively, the "Rent") at the times and in the manner provided in this
                    ----
Lease, without abatement, notice, demand, set-off or counterclaim. All Rent in
addition to Base Rental shall constitute additional rental under this Lease and
Landlord shall be entitled to exercise the same rights and remedies provided for
in this Lease for the nonpayment of any Rent. All Rent owed by Tenant to
Landlord under this Lease shall bear interest from the date due until payment is
received at the rate (the "Interest Rate") equal to the lesser of(i) a per annum
                           -------- ----
rate equal to the "prime rate" or "base rate" announced by Chase Manhattan Bank
or its successor, from time to time (or if the "prime rate" or "base rate" is
discontinued, the rate announced by such bank as that being charged to its most
creditworthy commercial borrowers), plus five percent (5%), or (ii) the maximum
contract interest rate per annum allowed by law.

              (d)    If Tenant fails to pay any regular monthly installment of
Rent by the fifth (5th) day of the month in which the installment is due, or any
other sum or money owed to Landlord within five (5) days after such sums are due
and owing to Landlord, Tenant shall pay a late charge equal to the greater of(i)
$250.00, or (ii) an amount equal to five percent (5%) of the amount due, for
each and every thirty (30) day period that said amount remains unpaid (but in no
event shall the amount of such late charge exceed an amount based upon the
highest legally permissible contract rate chargeable at any time by Landlord
under the circumstances) to compensate Landlord for the administrative expenses
incurred. Should Tenant make a partial payment of past due amounts, the amount
of such partial payment shall be applied first to reduce all accrued and unpaid
late charges, in inverse order of maturity, and then to reduce all other past
due amounts, in inverse order of their maturity.

              3.2    BASE RENTAL.

              (a)    Tenant hereby agrees to pay as the base annual rental
("Base Rental") for the lease and use of the Leased Premises, an annual amount
  ---- ------
equal to the product of Twenty-six and no/l00 Dollars ($26.00) ("Base Rental
                                                                 ---- ------
Rate") multiplied by the number of square feet of Net Rentable Area comprising
----
the Leased Premises, subject to increase pursuant to subsection (b) below.

              (b)    The Base Rental payable under subsection (a) shall be
adjusted from time to time in accordance with the following provisions (any such
adjustment hereinafter the "Base Rental Adjustment"):
                            ---- ------ ----------

                     (i)    Base Rental includes a component attributable to
       Basic Costs (hereinafter defined) equal to an estimate of the Base Amount
       (defined below). As used herein, "Base Amount" shall mean the Basic Costs
       computed in accordance with this Section 3.2 for the calendar year 1998
       (the "Base Year") on a per square foot of Net Rentable Area basis. Prior
       to January 1 of each calendar year during the Term after the calendar
       year in which the Commencement Date occurs, or as soon thereafter as
       reasonably practical, Landlord shall provide an estimate of Basic Costs
       for the forthcoming calendar year. Tenant shall pay Base Rental for such
       forthcoming calendar year based upon the Base Rental set forth in
       subsection (a) above for such time period adjusted upward by an amount
       equal to the difference between the Base Amount and the coming calendar
       year's estimated Basic Costs (on a per square foot of Net Rentable Area
       basis).

                     (ii)   By June 1 of each calendar year during Tenant's
       occupancy, or as soon thereafter as reasonably practical, Landlord shall
       furnish to Tenant a statement of Basic Costs for the previous calendar
       year or partial calendar year, as applicable, occurring during the Term.
       If actual Basic Costs for such calendar year or partial calendar year, as
       applicable, are greater than Landlord's estimate thereof pursuant to
       clause (i) above, Tenant shall be obligated to pay to Landlord within
       thirty (30) days of the delivery of such statement

                                       -5-

<PAGE>

       a lump sum payment (which payment shall be deemed a payment of Rent
       hereunder for all purposes) equal to the product of (x) the Net Rentable
       Area in the Leased Premises, multiplied by (y) the amount by which actual
       Basic Costs per square foot of Net Rentable Area in the Building exceed
       Landlord's estimate thereof for such calendar year or partial calendar
       year, as applicable. If actual Basic Costs for such calendar year or
       partial calendar year, as applicable, are less than Landlord's estimate
       thereof pursuant to clause (i) above, Landlord shall promptly after
       delivery of such statement make a lump sum payment to Tenant (or at
       Landlord's option, Landlord may credit such lump sum amount against
       remaining Base Rental installments for the current calendar year) equal
       to the product of (A) the Net Rentable Area in the Leased Premises,
       multiplied by (B) the amount by which estimated Basic Costs per square
       foot of Net Rentable Area in the Building exceed the actual amount
       thereof (to the extent such excess was actually paid by Tenant, but in no
       event shall such payment or credit be in an amount which would result in
       Tenant paying Base Rental for the applicable calendar year in an amount
       less than the annual Base Rental specified in subsection (a) above). The
       effect of this reconciliation payment (the "Annual Reconciliation
                                                   ------ --------------
       Payment") is that Tenant will pay during the Term its proportionate share
       -------
       (as defined in clause (iii) below) of Basic Costs increases over the
       Basic Costs for the Base Year computed in accordance with Section 3.2,
       and no more. Notwithstanding the foregoing, in no event shall Tenant or
       Landlord be obligated to pay an Annual Reconciliation Payment with
       respect to calendar year 1998. The provisions of this subsection (ii)
       shall survive the expiration or earlier termination of this Lease.

                     (iii)  All increases in Basic Costs shall be paid by Tenant
       in the proportion that the Net Rentable Area of the Leased Premises bears
       to ninety-five percent (95%) of the total Net Rentable Area of the office
       space and retail space leased or held for lease in the Building, or to
       the total Net Rentable Area of office space and retail space leased in
       the Building (if such total leased area is greater than ninety-five
       percent (95%) of the total Net Rentable Area of office space and retail
       space leased or held for lease in the Building).

                     (iv)   Nothing contained in this subsection (b) shall be
       construed at any time so as to reduce the annual Base Rental payable
       hereunder below the amount set forth in subsection (a) above.

              (c)    "Basic Costs," as that term is used herein, shall consist
                      ----- -----
of all Operating Expenses (defined below) of the Project as reasonably allocated
by Landlord, computed on an accrual basis and determined in accordance with
generally accepted accounting principles consistently applied. "Operating
                                                                ---------
Expenses," as that term is used herein, shall mean all expenses and costs (but
--------
excluding charges separately paid by other tenants of the Project or other third
parties other than through the payment of its share of operating expenses) of
every kind and nature that Landlord shall pay or become obligated to pay because
of or in connection with the ownership, maintenance, repair, and operation of
the Project, including but not limited to, the following:

                     (i)    Wages, salaries, fees and all related expenses
       (including, without limitation, taxes, insurance, burdens and benefits
       and the costs incurred in providing same) of all personnel engaged in the
       operation, maintenance, repair and access control of the Project and
       personnel who provide traffic control relating to ingress and egress to
       and from the Garage and surrounding public streets.

                     (ii)   Cost of all supplies, tools, equipment and
       materials, whether purchased or leased, used in the operation,
       maintenance, repair and/or access control of the Project.

                     (iii)  Cost of utilities for the Project, including but not
       limited to, water, steam, sewer, waste disposal, gas and electricity, and
       power for heating, lighting, air conditioning and ventilating the Project
       (including all Common Areas, General Common Areas and Service Areas),
       including charges to the Project for such services for the Project
       provided from a central plant which also serves other parts of the
       Complex.

                     (iv)   Management fees paid to the property manager for the
       management of the Project (provided, however, in no event shall Landlord
       include in Operating Expenses in any one calendar year a net management
       fee in excess of three percent (3%) of the gross revenues of the Project
       for such calendar year;

                                       -6-

<PAGE>

          and, provided further, however, in lieu thereof, Landlord may charge
          Tenant separately, and not as a part of Basic Costs, for a management
          fee contribution which shall not in any one (1) calendar year exceed
          three percent (3%) of the Base Rental and the Base Rental Adjustment
          payable by Tenant for such calendar year) and the cost of all
          maintenance and service agreements for the Project and the equipment
          therein, including but not limited to, access control service, window
          cleaning, traffic control, janitorial service, landscape maintenance,
          and elevator maintenance.

                   (v)    Legal and accounting costs for the Project, including
         a reasonable allocation of off-site costs, together with the costs of
         annual audits of the Project operating costs by certified public
         accountants.

                   (vi)   Cost of all insurance relating to the Project,
         including but not limited to, fire and extended coverage insurance,
         rental loss or abatement insurance, and casualty and liability
         insurance applicable to the Project and Landlord's personal property
         used in connection therewith, plus the cost of all deductible payments
         made by Landlord in connection therewith.

                   (vii)  Cost of repairs, replacements and general maintenance
         (excluding repairs, replacements and general maintenance paid for with
         proceeds of insurance or condemnation or by third parties).

                   (viii) Any and all common area maintenance costs related to
         public areas, including without limitation, sidewalks and landscaping
         for the Project.

                   (ix)   All taxes, assessments and governmental charges,
         whether or not directly paid by Landlord, whether federal, state,
         county or municipal and whether they be by taxing districts or any
         Governmental Authority (defined in Section 5.7 hereof) presently taxing
         the Project or by others subsequently created, attributable to the
         Project or its operation and an allocation to the Project of the taxes,
         assessments and governmental charges for the service roads which
         service the Complex, but excluding, however, taxes and assessments
         attributable to the personal property of tenants, federal and state
         taxes on income, death taxes, franchise taxes, and any taxes imposed or
         measured on or by the income of Landlord from the operation of the
         Project or imposed in connection with any change of ownership of the
         Project; provided, however, if the taxing authorities do not separately
         assess the Project, Landlord may make a reasonable allocation of the
         taxes, assessments or charges to give effect to this sentence, and
         provided further, however, that if at any time during the Term, the
         present method of taxation or assessment shall be so changed that the
         whole or any part of the taxes, assessments, levies, impositions or
         charges now levied, assessed or imposed on real estate and the
         improvements thereon shall be discontinued and as a substitute
         therefor, or in lieu of or in addition thereto, taxes, assessments,
         levies, impositions or charges shall be levied, assessed or imposed.
         wholly or partially, as a capital levy or otherwise, on the rents
         received from the Project or the rents reserved herein or any part
         thereof, then such substitute or additional taxes, assessments, levies,
         impositions or charges, to the extent so levied, assessed or imposed
         with respect to the Project, shall be deemed to be included within
         Operating Expenses. Consultation, accounting and legal fees and other
         fees and costs resulting from any challenge of tax assessments as
         reasonably allocated by Landlord also shall be included in Operating
         Expenses. It is agreed that Tenant will be responsible for ad valorem
         taxes on its personal property and on the value of the leasehold
         improvements in the Leased Premises to the extent that the same exceed
         Building Standard Improvements (defined in Exhibit C) (and if the
                                                    ------- -
         taxing authorities do not separately assess Tenant's leasehold
         improvements, Landlord may make a reasonable allocation of the ad
         valorem taxes allocated to the Project to give effect to this
         sentence). All taxes, assessments and governmental charges shall be
         included in Operating Expenses in the calendar year in which such
         taxes, assessments or governmental charges are levied, assessed or
         imposed without regard to when such taxes, assessments or governmental
         charges are payable; provided, however, in the case of special taxes
         and assessments which may be payable in installments, only the amount
         of each installment accruing during a calendar year shall be included
         in the Operating Expenses for such year.

                                        7

<PAGE>

                   (x)    Amortization of the cost, together with reasonable
         financing charges, of furnishing and installing capital investment
         items which (a) are primarily for the purpose of (i) reducing Operating
         Expenses or avoiding increases in Operating Expenses in Landlord's good
         faith estimate, or (ii) promoting safety, or (b) may be required by
         Legal Requirements. All such costs shall be amortized over the useful
         life of the capital investment items with the useful life and
         amortization schedule being determined in accordance with generally
         accepted accounting principles (in no event to extend beyond the
         remaining useful life of the Project).

                   (xi)   Costs of licenses, permits and inspection fees related
         to the Project.

                   (xii)  Any allocation of expenditures for service, repair,
         maintenance or operation of the Complex attributable to the Project,
         determined in accordance with generally accepted accounting principles.

                   (xiii) Cost of an office in the Building or allocation of a
         central office in the Complex (if applicable) maintained for management
         of the Project.

               Anything in the foregoing provisions hereof to the contrary
notwithstanding, Operating Expenses shall not include the following:

                   (A)    Leasing commissions, attorneys' fees, costs,
         disbursements and other expenses incurred in connection with
         negotiations for leases with tenants, other occupants, or prospective
         tenants or other occupants of the Project, or similar costs incurred in
         connection with disputes with tenants, other occupants, or prospective
         tenants or other occupants of the Project.

                   (B)    Non-cash items, such as deductions for depreciation or
         obsolescence of the Project and the Project equipment, or interest on
         capital invested (except as provided in clause (x) above).

                   (C)    Payments of principal and interest or other finance
         charges made on any debt (except as provided in clause (x) above), and
         rental payments made under any ground or underlying lease or leases,
         except to the extent that a portion of such payments is expressly for
         ad valorem/real estate taxes or insurance premiums on the Project.

                   (D)    Costs incurred by Landlord in the sale, financing,
         refinancing, mortgaging, selling or change of ownership of the Project,
         including brokerage commissions, attorneys' and accountants' fees,
         closing costs, title insurance premiums, transfer taxes and interest
         charges.

                   (E)    Costs which are to be capitalized in accordance with
         generally accepted accounting principles not included under Section
         3.2(c)(i) through (xiii).

                   (F)    Costs and expenses attributable to the initial
         construction of the Project.

                   (G)    Any penalty charges incurred by Landlord due to
         Landlord's late payment of taxes, utility bills or other amounts
         included in Operating Expenses except to the extent Landlord was
         contesting the payment ofany such item in good faith.

                   (H)    Allowances and other costs and expenses incurred in
         fixturing, furnishing, renovating or otherwise improving, decorating or
         redecorating space for tenants or prospective tenants of the Building,
         or vacant leasable space in the Building (including permit, license and
         inspection costs but excluding normal maintenance, repair and
         replacement costs).

                   (I)    Cost of any political or charitable donations or
         contributions.

                                      -8-

<PAGE>

                   (J)    Costs of repairs, restoration, replacements or other
work occasioned by (1) fire, windstorm or other casualty of an insurable nature
(whether such destruction be total or partial) and paid by insurance then in
effect obtained by Landlord, (2) the exercise by any governmental authority of
the right of eminent domain, whether such taking be partial or total, and (3)
the gross negligence or willful misconduct of Landlord, or its agents and
employees.

                   (K)    The cost of all items, goods and services for which
         Tenant, any other tenant or occupant of the Project or other third
         party (including insurers) reimburses Landlord or for which Landlord is
         entitled to reimbursement to the extent of such entitlement (other than
         through the payment of a tenant's share of Operating Expenses of the
         Project).

                   (L)    All amounts which would otherwise be included in
         Operating Expenses which are paid to any affiliate of Landlord to the
         extent the costs of such services exceed the amount which would have
         been paid in the absence of such relationship for similar services of
         comparable level, quality and frequency rendered by persons of similar
         skill, competence and experience (but Operating Expenses shall include
         any such amounts specifically provided for or permitted in this Lease
         [including without limitation, the sums permitted pursuant to clauses
         (i) and (iv) above] for which the provisions of this Lease shall
         control).

                   (M)    Costs incurred by Landlord to encapsulate or remove
         any Hazardous Materials (defined in Section 5.7(b)) to the extent
         applicable laws in effect prior to the Commencement Date require
         Landlord to take affirmative action to encapsulate or remove such
         Hazardous Substance which was located in the Project prior to the
         Commencement Date and such action was not taken by Landlord prior to
         the Commencement Date.

                   (N)    Landlord's general corporate overhead relating solely
         to the internal organization and function of Landlord as a business
         entity (i.e., trustee's fees and partnership organizational expenses)
         (as opposed to the maintenance, ownership and operation of the
         Project).

                   (O)    Costs of correcting initial or latent defects (but not
         the costs of normal wear and tear) in the design and construction of
         the Project.

                   (P)    Any penalties paid by Landlord due to the violation by
         Landlord of the terms of any lease pertaining to the Project.

                   (d)    If an Annual Reconciliation Payment is due by Tenant
to Landlord with respect to the immediately preceding calendar year pursuant to
Section 3.2(b)(ii) above, Tenant, at its sole cost and expense, shall have the
right (to be exercised by giving notice to Landlord within sixty (60) days after
receipt of the statement of Basic Costs for such previous calendar year) to
audit and/or inspect Landlord's books and records pertaining only to items
affecting Basic Costs for such preceding calendar year; provided that such audit
and/or inspection must be commenced and concluded by December 31 of the year
following the year to which any such disputed item relates; and provided further
that such audit and/or inspection does not unreasonably interfere with the
conduct of Landlord's business. Notwithstanding the foregoing, if Tenant elects
to audit and/or inspect Landlord's books and records to the extent permitted
above, Landlord, in its sole discretion, may elect to furnish Tenant a copy of
an audit prepared by a certified public accountant in lieu of Tenant performing
the aforementioned audit and/or review.

                   (e)    Notwithstanding any other provision herein to the
contrary, it is agreed that in the event the Net Rentable Area of office space
and retail space leased or held for lease in the Building is not fully occupied
or provided with Building Standard Services (defined in Section 4.1) during any
partial year or any full calendar year, Basic Costs shall be computed for such
year as though the Net Rentable Area of office space and retail space leased or
held for lease in the Building had been fully occupied and provided with
Building Standard Services.

                                       -9-

<PAGE>

                3.3    SECURITY DEPOSIT. Tenant hereby agrees to pay to Landlord
on the Effective Date, in cash or by certified check, (a) a sum equal to the
Base Rental payment for the first (1st) calendar month of the Term equal in
amount to $14,971.67 (the "First Month's Rent") plus (b) a sum equal to $-0-
                           ------------------
(the sums in (a) and (b) collectively, the "Security Deposit"). Tenant hereby
                                            ----------------
grants to Landlord a security interest in the Security Deposit. Upon the
occurrence of an Event of Default, Landlord, from time to time, without
prejudice to any other remedy, may use the Security Deposit to the extent
necessary to make good any arrears of Base Rental, Base Rental Adjustment,
Parking Rental or to pay any other sums owed to Landlord, including any sums
described in Section 6.8 or to pay the cost of any damage, injury, expense, or
liability caused by any default by Tenant under this Lease. Landlord shall have,
and Landlord expressly retains and preserves, all rights of setoff and
recoupment and any and all similar remedies available under applicable laws or
in equity. To the extent an Event of Default has not occurred under this Lease,
that portion of the Security Deposit equal to the First Month's Rent (to the
extent such portion of the Security Deposit has not otherwise been applied by
Landlord pursuant to this Section 3.3) shall be applied by Landlord to Base
Rental due by Tenant on the Commencement Date (and if the Commencement Date does
not occur on the first (1st) day of a calendar month and therefore, the First
Month's Rent exceeds the Base Rental owed by Tenant on the Commencement Date,
such excess portion of the First Month's Rent shall be applied to Base Rental
owed by Tenant on the first (1st) day of the calendar month immediately after
the Commencement Date). If an Event of Default has not occurred, any remaining
balance of the Security Deposit held by Landlord pursuant to this Section 3.3
shall be returned by Landlord to Tenant within a reasonable period of time after
the termination or expiration of this Lease. The Security Deposit shall not be
considered an advance payment of rental or a measure of Landlord's damages in
case of a default by Tenant. Tenant shall not be entitled to receive and shall
not receive any interest on the Security Deposit, and Landlord may commingle the
same with other monies of Landlord. In the event Landlord applies the Security
Deposit or any portion thereof to the payment of any sum described above and
this Lease is not terminated, Tenant immediately shall deposit with Landlord an
amount of money equal to the amount so applied and such amount shall be deemed
to be part of the Security Deposit.

                                       IV.

                4.1     SERVICES TO BE FURNISHED BY LANDLORD.

                (a)    Landlord shall furnish Tenant during Tenant's occupancy
of the Leased Premises the following Building standard services (the "Building
                                                                      --------
Standard Services") so long as an Event of Default has not occurred:
-----------------

                       (i)      Subject to Legal Requirements, common use rest
          rooms with hot and cold domestic water at locations provided for
          general use of other tenants in the Building.

                       (ii)     Central heat and air conditioning in season,
          subject to curtailment as required by Legal Requirements. Landlord
          shall furnish such service to Tenant between the hours (the "Building
                                                                       --------
          Operating Hours") of 7:00 A.M. and 6:00 P.M., Monday through Friday,
          ---------------
          and 8:00 A.M. and 1:00 P.M., Saturday, excluding the following
          holidays (or the day observed in lieu thereof by national banks): New
          Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
          Day and Christmas Day (collectively, the "Holidays").
                                                    --------

                       Upon request of Tenant made in accordance with the
          Project Rules (defined in Section 5.7), Landlord will furnish air
          conditioning, ventilating and heating at times other than Building
          Operating Hours, in which event Tenant shall pay Landlord the then
          current charges incurred by Landlord to provide such services. As of
          the Effective Date, the after hour HVAC charge is $35.00 per hour per
          floor: however such charge is subject to increase by Landlord based
          upon actual increases in costs that Landlord may incur.

                                      -10-

<PAGE>

                (iii)  Routine maintenance and electric lighting service for all
Common Areas on floors on which the Leased Premises are located not leased
entirely by Tenant, General Common Areas and Service Areas of the Building.

                (iv)   Janitorial service on a five (5) day per week basis
(excluding the Holidays) in accordance with the janitorial specifications
attached hereto as Exhibit E (the "Janitorial Specifications"); provided,
                   ---------       -------------------------
however, if Tenant's leasehold improvements (including floor coverings) are
other than Building Standard Improvements, include a lunchroom, coffee bar or
other similar facility for its employees or otherwise require special or
additional cleaning in excess of the Building Standard Services, Tenant shall
pay the actual additional cleaning cost, if any, incurred by Landlord as the
result thereof plus a charge equal to ten percent (10%) of such additional
costs for administrative cost recovery. Landlord specifically reserves the right
to modify the Janitorial Specifications as in its judgment shall from time to
time be required for the safety, protection and cleanliness of the Project, the
operation thereof, the preservation of good order therein or the protection and
comfort of other tenants of the Project and their employees, agents and guests:
however, the Janitorial Specifications as modified will be of substantially the
same quality level as those described in Exhibit E and Landlord agrees to
                                         ---------
furnish Tenant with notice of any such modifications.

                (v)    Sufficient electrical capacity transformed to a panel box
located in the core of each floor of the Leased Premises for (A) machines of low
electrical consumption at standard voltage (120 volts, single-phase) to the
extent that the total demand load at 100% capacity of said machines of low
electrical consumption does not exceed two (2) watts per square foot of Usable
Area, and (B) lighting and equipment at high voltage (277 volts, single-phase)
to the extent that the total demand load at 100% capacity of said lighting and
equipment does not exceed two (2) watts per square foot of Usable Area (each
such rated electrical design load to be hereinafter referred to as the "Building
                                                                        --------
Standard Rated Electrical Design Load").
-------------------------------------

                Should Tenant's non-linear electrical load (created by equipment
such as personal computers, television sets, laser printers, copiers or other
electronic devices connected to the power system) result in harmonic distortion
conditions which cause any adverse effects in the Project, including but not
limited to, deration of any transformer, distribution stepdown transformer
failures, overheating or melting of neutral conductors, or malfunctioning of
various electronic components. Tenant acknowledges that Tenant, at Tenant's sole
cost, shall be obligated to eliminate such harmonic distortion conditions and to
repair any damage which results from such harmonic distortion within thirty (30)
days of Landlord's request. If Tenant fails to eliminate such harmonic
distortion and repair such damage caused thereby within such thirty (30) day
period, Landlord, at its option, may make such corrections deemed necessary by
Landlord to eliminate such harmonic distortion and make such repairs, and Tenant
shall pay to Landlord on demand Landlord's cost thereof plus a charge equal to
fifteen percent (15%) of such costs for administrative cost recovery.

                Tenant shall cause Tenant's electrical system serving any
equipment producing non-linear electrical loads to be designed to accommodate
such non-linear electrical loads, including but not limited to, over-sizing
neutral conductors, derating transformers and/or providing power line filters.
Any Tenant plans shall include a calculation of Tenant's fully connected design
load with and without demand factors and shall indicate the number of watts of
un-metered and sub-metered loads.

                If Tenant's electrical equipment and lighting require electrical
circuits, transformers or other additional equipment in excess of Tenant's pro
rata share of the Building's electrical or HVAC systems (which additional
equipment shall be hereinafter referred to as the "Additional Electrical
                                                   ---------------------
Equipment"), Tenant may (at Tenant's cost, including the cost to design,
---------
install, maintain and replace the Additional Electrical Equipment [including the
meters]) install the same, provided such installation is compatible with
existing Building systems, will not compromise Landlord's ability to provide
services to Tenant or other tenants of the Building and will not be burdensome
to the Project or to Landlord, in Landlord's opinion, and Tenant shall pay all

                                      -11-

<PAGE>

          operating costs related to that requirement (including, without
          limitation, the cost of electricity, water or other services
          consumed through, or in connection with, the Additional Electrical
          Equipment).

                       The method of design and installation of any Additional
          Electrical Equipment (including any related meter) required by Tenant
          shall be subject to the prior written approval of Landlord and shall
          be performed by Landlord at Tenant's sole cost (including a charge
          equal to ten percent (10%) of such cost for the review and
          installation of such Additional Electrical Equipment for
          administrative cost recovery).

                       Tenant shall pay to Landlord the cost of electricity
          consumed in excess of the Building Standard Rated Electrical Design
          Load as determined by meter, or if not metered, as otherwise
          reasonably estimated by Landlord, plus any actual accounting expenses
          incurred by Landlord in connection with the metering thereof. Landlord
          may cause the entire Leased Premises to be separately metered (at
          Tenant's expense, including, without limitation, the cost of
          installing, maintaining, repairing and replacing such meters to the
          extent necessary), in which event Tenant shall pay the actual cost of
          electricity consumed by Tenant.

                       (vi) All Building Standard fluorescent bulb replacement
          in all areas of the Project and all incandescent bulb replacement in
          the Common Areas on floors on which the Leased Premises are located
          not leased entirely by Tenant, General Common Areas and Service Areas.

                       (vii) Perimeter access control for the Project during
          hours other than Building Operating Hours; PROVIDED, HOWEVER, LANDLORD
          SHALL HAVE NO RESPONSIBILITY TO PREVENT, AND SHALL NOT BE LIABLE TO
          TENANT, ITS AGENTS, EMPLOYEES, CONTRACTORS, VISITORS OR INVITEES FOR,
          LOSSES DUE TO THEFT OR BURGLARY, OR FOR DAMAGES OR INJURY TO PERSONS
          OR PROPERTY DONE BY PERSONS GAINING ACCESS TO THE LEASED PREMISES OR
          THE PROJECT, EXCEPT TO THE EXTENT CAUSED BY LANDLORD'S GROSS
          NEGLIGENCE OR WILLFUL MISCONDUCT, AND TENANT HEREBY RELEASES LANDLORD
          FROM ALL LIABILITY FOR SUCH LOSSES, DAMAGES OR INJURY, EVEN IF CAUSED
          BY LANDLORD'S NEGLIGENCE. Tenant shall cooperate fully in Landlord's
          efforts to maintain access control in the Building and shall follow
          all regulations promulgated by Landlord with respect thereto.

                       (viii) Non-exclusive multiple cab passenger elevator
          service to the Leased Premises during Building Operating Hours, with
          passenger elevator service to the Leased Premises by at least one (1)
          cab twenty-four (24) hours per day, and non-exclusive freight elevator
          service to the Leased Premises during Building Operating Hours with
          such freight elevator service available at other times upon reasonable
          prior notice (however, all of the foregoing shall be subject to
          temporary cessation for ordinary repair and maintenance and during
          times when life safety systems override normal Building operating
          systems).

              In the event Tenant desires Landlord to provide any of the
aforementioned services (including heating and air-conditioning) in amounts in
excess of Building Standard Services or in addition to the Building Operating
Hours, and provided such services are compatible with existing Building systems,
will not compromise Landlord's ability to provide services to Tenant or other
tenants of the Building and are not burdensome to the Project or to Landlord, in
Landlord's opinion, and so long as an Event of Default is not in existence,
Landlord may elect (but is not required) to provide such excess or additional
services and Tenant shall pay Landlord as additional rent hereunder the cost of
providing such excess or additional services, including without limitation,
design, metering, installation and operating costs plus a charge equal to ten
percent (10%) of such costs for administrative cost recovery.

              (b) To the extent the services described in Section 4.1(a)
require electricity, water, gas, steam or other utility services supplied by
public utilities, Landlord's covenants hereunder shall impose on Landlord only
the obligation to use its good faith, reasonable efforts to cause the applicable
public utilities to furnish the same. Landlord shall not be responsible for, and
shall have no liability with respect to, the quality or condition of any
services provided by such public utilities.

                                      -12-

<PAGE>

     (c) Failure by Landlord to any extent to furnish any of the aforementioned
services to Tenant, the Leased Premises or the Project, or any cessation
(including any partial curtailment) thereof, shall not render Landlord liable in
any respect for damages to person, property or otherwise, nor to be construed as
an eviction of Tenant, nor work an abatement of Rent, nor relieve Tenant from
fulfillment of any covenant or agreement hereof. Should any of the equipment or
machinery utilized in supplying the services listed herein break down, or for
any cause cease to function properly, such failure shall not work as an
abatement of Rent, nor be construed as an eviction of Tenant, nor relieve Tenant
from fulfilling any covenant or agreement contained herein, nor render Landlord
liable for damages; provided, however, that should any of such services be
interrupted or terminated as a result of Landlord's negligence but not as the
result of (i) curtailment in services imposed by any Governmental Authority,
(ii) failure of the public utilities to furnish necessary services, or (iii)
Tenant's negligence, gross negligence or willful misconduct
(a "Service Interruption") and if, as a result of such Service Interruption, the
    --------------------
Leased Premises (or any part thereof) is untenantable, and such Service
Interruption continues for a period of five (5) or more consecutive Business
Days after Tenant delivered written notice to Landlord of such Service
Interruption, then all Rent including, without limitation, Base Rental and Base
Rental Adjustment shall abate as to those portions of the Leased Premises
rendered untenantable from and including the sixth (6th) Business Day after
Landlord's receipt of such written notice from Tenant and shall continue until
such space is again tenantable. The foregoing rental abatement shall constitute
Tenant's sole and exclusive remedy involving or with respect to a Service
Interruption. Notwithstanding the foregoing, if a Service Interruption occurs as
a result of or in connection with a fire or other casualty or a taking or
condemnation for a public purpose (or a conveyance in lieu thereof), the
foregoing rental abatement shall not be available to Tenant, and Landlord's and
Tenant's rights and obligations with respect thereto are governed by the
provisions of Section 6.1 in the case of a taking or condemnation (or a
conveyance in lieu thereof) or Section 6.5 in the case of a fire or other
casualty. Should any of the equipment or machinery utilized in supplying the
services listed herein break down, or for any cause cease to function properly,
Landlord shall use reasonable diligence to repair same promptly.

     4.2 KEYS AND LOCKS. Landlord shall furnish Tenant with two (2) keys and/or
access cards (collectively, the "Access Equipment") for each corridor door
                                 ----------------
entering the Leased Premises (and additional Access Equipment on an order signed
by Tenant, at a charge by Landlord equal to the cost of such Access Equipment
plus an additional charge of ten percent (10%) of such cost for administrative
cost recovery). All such Access Equipment shall remain the property of Landlord.
No additional locks shall be allowed on any door of the Leased Premises and
Tenant shall not make or permit to be made any duplicate Access Equipment,
except those furnished by Landlord. Upon termination of this Lease, Tenant shall
surrender to Landlord all Access Equipment to the Leased Premises and give to
Landlord the keys and/or combination for all locks for safes, safe cabinets and
vault doors, if any, in the Leased Premises.

     4.3 WINDOW COVERINGS. Landlord shall provide and install Building Standard
interior window coverings on all exterior windows in the Building as Building
Standard Improvements. Tenant agrees to use the Building Standard window
coverings on all exterior windows of the Building. Tenant shall not place or
maintain any window coverings, blinds or drapes on any exterior window (other
than those supplied by Landlord) without Landlord's prior written approval which
Landlord shall have the right to grant or withhold in its absolute and sole
discretion. Tenant acknowledges that breach of this covenant will directly and
adversely affect the exterior appearance of the Project and the operation of the
heating, ventilating and air conditioning systems.

     4.4 GRAPHICS. Landlord shall provide and install Tenant's name and suite
numerals on the main entrance door to the Leased Premises. All such letters and
numerals shall be in the Building Standard graphics. All graphics of Tenant
visible in or from public corridors, elevator cabs or other public areas shall
be Building Standard graphics and subject to Landlord's prior written approval
in its sole and absolute discretion. Landlord also will be responsible for the
initial installation of Tenant's name and suite number in the Building directory
located in the main lobbies on Floor 1 and Floor 3 of the Building. Landlord
shall not be liable for any inconvenience or damage occurring as the result of
any error or omission in any directory or graphics

                                      -13-

<PAGE>

     4.5 REPAIRS BY LANDLORD. Landlord shall be required only to make such
improvements, repairs or replacements as may be required for normal maintenance
of the Leased Premises, and such additional maintenance as may be necessary
because of damage by persons other than Tenant, its agents, employees, invitees
or visitors. The obligation of Landlord to maintain and repair the Leased
Premises shall be limited to the Building Standard Improvements. Landlord shall
not otherwise be obligated to make improvements to, or repairs of, the Leased
Premises. All leasehold improvements other than the Building Standard
Improvements will be maintained by Tenant or, at Tenant's request, by Landlord
at Tenant's expense which shall be an amount equal to Landlord's actual cost
plus an additional charge often percent (10%) of such cost for administrative
cost recovery.

     4.6 PEACEFUL ENJOYMENT. Tenant shall, and may peacefully have, hold and
enjoy the Leased Premises, subject to the other terms hereof, provided that
Tenant pays the Rent herein recited and performs all of Tenant's covenants and
agreements herein contained. It is understood and agreed that this covenant and
any and all other covenants of Landlord contained in this Lease shall be binding
upon Landlord and its successors only with respect to breaches occurring during
its and their respective ownerships of Landlord's interest hereunder.

     4.7 NO WARRANTIES. LANDLORD'S DUTIES AND WARRANTIES ARE LIMITED TO THOSE
EXPRESSLY STATED IN THIS LEASE AND SHALL NOT INCLUDE ANY IMPLIED DUTIES OR
IMPLIED WARRANTIES, NOW OR IN THE FUTURE. NO REPRESENTATIONS OR WARRANTIES HAVE
BEEN MADE BY LANDLORD OTHER THAN THOSE CONTAINED IN THIS LEASE. TENANT HEREBY
WAIVES ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASED
PREMISES WHICH MAY EXIST BY OPERATION OF LAW OR IN EQUITY, INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF HABITABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

     4.8 FORCE MAJEURE. Landlord shall be excused for the period of any delay
and shall not be deemed in default with respect to the performance of any of the
terms, covenants and conditions of this Lease when prevented from so doing by a
cause or causes beyond Landlord's control, which shall include without
limitation, all labor disputes, governmental regulations or controls, fire or
other casualty, inability to obtain any materials or services, or acts of God.

                                       V.

     5.1 PAYMENTS BY TENANT. Tenant shall pay all Rent at the times and in the
manner herein provided. Any failure by Tenant to pay Rent shall give rise to the
rights and remedies provided in Section 6.8.

     5.2 DAMAGE TO PROJECT. Subject to the provisions of Section 6.14, at
Tenant's own cost and expense, and by use of a contractor or contractors
approved in writing by Landlord, Tenant shall repair or replace in accordance
with all Legal Requirements any damage or injury done to the Leased Premises,
the Project or the Complex, or any portion thereof, caused by Tenant or Tenant's
agents, employees, invitees or visitors, which repairs or replacements must be
made to the same or as good a condition as existed prior to such injury or
damage; provided, however, Landlord, at its option, may make such repairs or
replacements, and Tenant shall repay Landlord on demand the actual cost
thereof (plus a charge equal to ten percent (10%) of such costs for
administrative cost recovery).

     5.3 CARE OF THE LEASED PREMISES. Subject to the provisions of Section 4.5,
at Tenant's own cost and expense, and by use of a contractor or contractors
approved in writing by Landlord, Tenant shall keep the Leased Premises and all
leasehold improvements in a good and presentable condition, at least similar to
the condition as of the Commencement Date, normal wear and tear excepted, and
shall perform all repairs and improvements required by any Legal Requirement. If
Tenant fails to commence any such repairs to the Leased Premises and the
leasehold improvements within ten (10) days after written notice from Landlord,
and thereafter diligently proceed with such repair until completion, Landlord,
at its option, may make such repair or any replacement deemed necessary by
Landlord, and Tenant shall pay to Landlord on demand Landlord's cost thereof
plus a charge equal to fifteen percent (15%) of such

                                      -14-

<PAGE>

costs for administrative cost recovery. Tenant shall not commit or allow any
waste or damage to be committed on any portion of the Leased Premises or
Project. Upon the expiration or any earlier termination of this Lease, Tenant
shall deliver up said Leased Premises to Landlord in as good a condition as such
premises existed on the date of initial occupancy of the Leased Premises,
ordinary wear and tear excepted. Upon the expiration or termination of this
Lease, Landlord shall have the right to re-enter and resume possession
immediately of the Leased Premises and Tenant's leasehold improvements.

     5.4 ASSIGNMENT AND SUBLETTING.

     (a) Except as provided in Section 5.4(b), Tenant shall not, without
Landlord's prior written consent (which may be withheld in Landlord's absolute
discretion), (i) assign, convey, mortgage, pledge, encumber, or otherwise
transfer (whether voluntarily, by operation of law, or otherwise) this Lease or
any interest hereunder; (ii) allow any lien to be placed upon Tenant's interest
hereunder; (iii) sublet the Leased Premises or any part thereof; or (iv) permit
the use or occupancy of the Leased Premises or any part thereof by any one other
than Tenant. Any attempt to consummate any of the foregoing without Landlord's
consent shall be of no force or effect and shall be an Event of Default under
this Lease. For purposes hereof, (A) the transfer of the ownership or voting
rights in a controlling interest of the voting stock of Tenant (if Tenant is a
corporation), (B) the transfer of a general partnership interest or the transfer
of twenty-five percent (25%) of the limited partnership interests in Tenant (if
Tenant is a partnership), (C) the merger or consolidation of Tenant with or into
any other corporation or entity, or (D) a sale or transfer of fifty percent
(50%) or more of Tenant's assets, at any time throughout the Term shall be
deemed to be an assignment of this Lease.

     Notwithstanding the provisions of the first sentence of this subsection
(a), the consent of Landlord need not be obtained if the assignment or
subletting is to an Affiliate (defined below) of_____________ ("Company") so
                                                                -------
long as (1) the assignee or sublessee shall be engaged in the same field of
services as Company, (2) the assignee or sublessee is engaged in a business
customarily acceptable for a tenant in a first class high-rise office building
in metropolitan Dallas, Texas, (3) any assignee shall assume all of the
obligations of Company under this Lease, (4) at the time of such assignment or
subletting, this Lease is in full force and effect and there is no breach under
this Lease on the part of Tenant, and (5) the assignee's or sublessee's proposed
use of the Leased Premises is not in violation of this Lease (such Affiliate of
Company complying with clauses (1), (2), (3), (4) and (5), hereinafter a
"Permitted Affiliate"). At least ten (10) days prior to the effective date of
 -------------------
any such assignment or sublease to a Permitted Affiliate. Tenant agrees to
furnish Landlord with notice of such assignment or sublease and copies of the
instruments effecting any such assignment or sublease. Additionally, within
thirty (30) days after the effective date of any such assignment or sublease to
a Permitted Affiliate. Tenant agrees to furnish Landlord with copies of the
fully executed instruments effecting any such assignment or sublease and
documentation establishing Tenant's satisfaction of the requirements set forth
above applicable to any such sublease or assignment. Any such assignee of Tenant
must assume and agree in writing to fully perform and observe all of the
obligations and agreements of Tenant under this Lease and any such sublessee
shall sublease such portion of the Leased Premises subject to the provisions of
this Lease. No such assignment or subletting shall relieve Company, any other
tenant, or any guarantor of this Lease of any covenants or obligations under
this Lease or any such guaranty and Company, any other tenant, and any
guarantors of this Lease shall remain fully liable hereunder and thereunder.
Notwithstanding anything to the contrary set forth in this Lease, the rights
granted to Company under this paragraph of subsection (a) as to assignments and
subleases to Permitted Affiliates shall not be assignable by Company, shall
inure only to the benefit of Company and shall not be enforceable by any
assignee or sublessee of Company.

                   As used herein, "Affiliate" shall mean any person or entity
                                    ---------
controlling, controlled by, or under common control with, another person or
entity. "Control" as used herein means the possession, direct or indirect, of
         -------
the power to direct or cause the direction of the management and policies of
such controlled person or entity (the ownership, directly or indirectly, of at
least fifty-one percent (51%) of the voting securities of, or possession of the
right to vote, in the ordinary direction of its affairs, at least fifty-one
percent (51%) of the voting interest in, any person or entity shall be presumed
to constitute such control).

                                      -15-

<PAGE>

               (b)  Notwithstanding the provisions of Section 5.4(a) above,
Tenant shall be permitted to sublease the Leased Premises or assign its interest
in this Lease after Tenant initially occupies the Leased Premises subject to the
provisions of this Section 5.4(b). If Tenant should desire to assign this Lease
or sublet the Leased Premises or any part thereof, Tenant shall give Landlord
written notice (which shall specify the proposed economic terms and duration of
the proposed sublease or assignment and shall contain information concerning the
business, reputation and creditworthiness of the proposed sublessee or assignee
as shall be sufficient to allow Landlord to form a commercially reasonable
judgment with respect thereto) of Tenant's desire to sublease or assign at least
forty-five (45) days in advance of the date on which Tenant desires to make such
sublease or assignment (the "Notice"). Landlord then shall have thirty (30) days
                             ------
following receipt of such Notice within which to notify Tenant in writing that
Landlord elects, in its sole and absolute discretion, to (i) permit Tenant to
assign this Lease or sublet such space subject to Landlord's approval of the
assignee or sublessee, or (ii) terminate this Lease as to the space so affected
as of the date so specified by Tenant (and as to option (ii) only Tenant will be
relieved of all further obligations hereunder as to such terminated space). If
Landlord should fail to notify Tenant in writing of such election within said
thirty (30) day period. Landlord shall be deemed to have elected option (i). If
Landlord elects, or is deemed to have elected, option (i), Landlord shall not
unreasonably withhold such consent to such sublessee or assignee if (l) any such
sublessee or assignee is creditworthy as determined by Landlord and is of a
character, kind and type customarily found in first-class office buildings in
Dallas, Texas, (2) such sublease or assignment does not violate any lease
agreement with any other tenant or potential tenant with which Landlord has
entered into a lease or a letter of intent (as applicable) in the Project, and
(3) the use of the Leased Premises by such proposed assignee or sublessee is
permitted under this Lease. Without limiting the foregoing, in no event shall
the following be considered as suitable assignees or sublessees under this
subsection (b): any governmental body, agency or bureau (of the United States,
any state, county, municipality or any subdivision thereof); any foreign
government or subdivision thereof; any health care professional or health care
service organization; schools or similar organizations; employment agencies;
radio, television or other communication stations; restaurants; and retailers
offering retail services from the Leased Premises. If Landlord elects, or is
deemed to have elected, option (i) and fails to approve or disapprove any such
sublessee or assignee within ten (10) days following Landlord's election or
deemed election of option (i), such sublessee or assignee and the proposed
sublease or assignment shall be deemed disapproved. If Landlord elects, or is
deemed to have elected, option (i) and the proposed sublessee or assignee is
approved by Landlord, the following shall apply to the sublease or assignment
(and shall be conditions thereto):

                    (1) Each sublessee or assignee shall fully observe all
        covenants of this Lease, including without limitation, the provisions of
        Section 2.2 of this Lease, and no consent by Landlord to an assignment
        or sublease shall be deemed in any manner to be a consent to (A) a use
        not permitted under Section 2.2, or (B) an assignment by Tenant of any
        rights which are otherwise not assignable pursuant to other provisions
        of this Lease;

                    (2) At the time of any such assignment or subletting, this
        Lease is in full force and effect and there is no breach under this
        Lease on the part of Tenant;

                    (3) Any such assignment or subletting shall be subject to
        all the terms, covenants and conditions of this Lease and any assignee
        must assume in writing all the rights and obligations of the assignor
        hereunder;

                    (4) If the aggregate rental, bonus or other consideration
        paid by the assignee or sublessee of any such space exceeds the sum
        of (A) the Base Rental as adjusted by the Base Rental Adjustment paid to
        Landlord for such space during the applicable period, plus (B) the
        reasonable out-of-pocket third party costs and expenses actually
        incurred by Tenant under or in connection with such sublease or
        assignment for (x) broker's commissions paid by Tenant with regard to
        the transfer, (y) reasonable legal fees with regard to the transfer, and
        (z) expenses of finishing out or renovation of the space involved [but
        specifically excluding any charges payable to partners, shareholders or
        employees of Tenant in connection with such sublease or assignment]),
        then such excess shall be paid to Landlord within fifteen (15) days
        after receipt by Tenant together with all consideration received in
        connection with such assignment. With any payment made by

                                      -16-

<PAGE>

     Tenant to Landlord under this clause (4), Tenant shall furnish Landlord
     with an accounting prepared and certified to by Tenant of its determination
     of the sums owed to Landlord hereunder;

               (5)   No assignment or subletting by Tenant shall relieve Tenant
     or any guarantor of this Lease of any obligations or covenants under this
     Lease or any such guaranty and Tenant and any guarantor of this Lease shall
     remain fully liable hereunder or thereunder (as applicable); and

               (6)   A copy of the original sublease or assignment (and all
     amendments thereto) shall be delivered to Landlord within fifteen (15) days
     from the effective date thereof.

               If the proposed sublessee or assignee is approved by Landlord and
Tenant fails to enter into the sublease or assignment with the approved
sublessee or assignee within one hundred eighty (180) days after the date Tenant
submitted its proposal to Landlord, then Landlord's approval of the proposed
sublease or assignment shall be deemed null and void and Tenant must comply
again with all of the conditions of this Section 5.4.

               (c)  If, in accordance with this Section 5.4, the Leased Premises
or any part thereof is sublet or occupied by other than Tenant or this Lease is
assigned, Landlord, during the continuance of a breach under this Lease on the
part of Tenant, if any, may collect rent from the subtenant, assignee or
occupant, and apply the net amount collected to Rent due by Tenant to Landlord
under this Lease, and Tenant hereby authorizes and directs any such assignee or
sublessee to make such payments of rent direct to Landlord upon receipt of
notice from Landlord. Additionally, Landlord is authorized and empowered, on
behalf of Tenant, to endorse the name of Tenant upon any check, draft, or other
instrument payable to Tenant evidencing payment of rent, or any part thereof,
and to receive and apply the proceeds therefrom in accordance with the terms of
this Lease. No such subletting, assignment, occupancy, or collection shall be
deemed (i) a waiver of any of Tenant's covenants contained in this Lease, (ii) a
release of any guarantor of this Lease from further performance of its covenants
under such guaranty, (iii) a release of Tenant from further performance by
Tenant of its covenants under this Lease, or (iv) a waiver of any of Landlord's
other rights hereunder.

               (d)  Notwithstanding the giving by Landlord of its consent to any
sublease or assignment with respect to the Leased Premises, no sublessee or
assignee may exercise any renewal options, expansion options, rights of first
offer or similar rights under this Lease except (x) in accordance with a
separate written agreement entered into directly between such sublessee or
assignee and Landlord, or (y) the expansion options and the renewal options may
be exercised by any permitted assignee (but not a sublessee) of Tenant's entire
interest under this Lease that is a Permitted Affiliate, provided in the event
of clauses (x) or (y) Tenant continues to be liable for the performance of all
obligations hereunder, as increased or otherwise affected by the exercise of
such rights. Tenant may not exercise any renewal options, expansion options,
rights of first offer or similar rights under this Lease if Tenant has assigned
all of its interest in this Lease to other than a Permitted Affiliate.

               (e)  Any attempted assignment or sublease by Tenant in violation
of the terms and covenants hereof shall be void and shall be an Event of Default
under this Lease. Any consent by Landlord to a particular assignment or sublease
shall not constitute Landlord's consent to any other or subsequent assignment or
sublease, and any proposed sublease or assignment by a sublessee of Tenant shall
be subject to the provisions hereof as if it were a proposed sublease or
assignment by Tenant.

               (f)  In any subletting undertaken by Tenant, Tenant shall
diligently seek to obtain not less than fair market rental value for the
sublease space so sublet. In any assignment of this Lease in whole or in part,
Tenant shall seek to obtain from the assignee consideration reflecting a value
of not less than fair market rental value for the space subject to such
assignment. Notwithstanding anything to the contrary contained in this Section
5.4, Tenant shall not be permitted to sublease any portion of the Leased
Premises or assign this Lease to (i) any person or entity that is actually a
tenant of the Building or Complex at the time the Notice is furnished to
Landlord (an "Actual Tenant"), or (ii) any Affiliate of an Actual Tenant if such
              ------ ------
Affiliate intends to use a significant portion of the Leased Premises subject

                                      -17-

<PAGE>

to such assignment or sublease for purposes of the conduct of the business then
being conducted by the Actual Tenant in its leased premises or such Affiliate is
entering into such assignment or sublease as a means to circumvent the
provisions of clause (i) above.

               (g) Any improvements, additions, or alterations to the Building
or the Project that are required by Legal Requirements, or are reasonably deemed
necessary or appropriate by Landlord, as a result of any subletting or
assignment hereunder, shall be installed and provided without cost or expense to
Landlord.

               5.5 ALTERATIONS, ADDITIONS, AND IMPROVEMENTS.

               (a) Tenant shall not permit the Leased Premises to be used for
any purpose other than that stated in Section 2.2 hereof, or make or allow to be
made any alterations, physical additions or improvements in or to the Leased
Premises, or place signs on or in the Leased Premises which are visible from
outside the Leased Premises, without first obtaining the prior written consent
of Landlord (which consent may be withheld in Landlord's sole discretion).
Notwithstanding the foregoing, Landlord will not unreasonably withhold its
consent to alterations, physical additions or changes to the Leased Premises
that do not adversely affect the Building structural, mechanical, electrical,
plumbing, heating, ventilating, air conditioning, life safety or other base
Building improvements or systems, provided such changes (i) are not visible from
the exterior of the Leased Premises or the Building, (ii) do not affect the
exterior of the Building, the structure of the Building or any public areas of
the Project, (iii) do not violate any provision of this Lease, (iv) do not
violate any Legal Requirements, and (v) will not interfere with the use and
occupancy of any other portion of the Project by any other tenant or occupant of
the Project or the Complex. If Landlord consents to said alterations,
improvements, or additions, or placement of signs, Landlord may impose such
conditions with respect thereto as are reasonably appropriate, including without
limitation, requiring Tenant to furnish Landlord with security for the payment
of all costs to be incurred in connection with such work, insurance against
liabilities which may arise out of such work, plans and specifications, and
permits for such work. Tenant's plans and specifications and construction means
and methods shall be subject to Landlord's written approval. Tenant shall
furnish to Landlord any documents and information requested by Landlord in
connection with the exercise of its rights hereunder. Landlord may hire outside
consultants to review such documents and information furnished to Landlord and
Tenant shall reimburse Landlord for the cost thereof, including reasonable
attorneys' fees, upon demand.

               (b) The work necessary to make any permitted alterations,
improvements, or additions to the Leased Premises shall be done at Tenant's
expense by contractors approved in writing by Landlord (each such contractor
hereinafter referred to as an "Outside Contractor") or, at Landlord's election,
                               ------- ----------
by Landlord (without cost or expense to Landlord). If Landlord performs any such
work, upon completion of such work Tenant shall pay Landlord a fee for
Landlord's supervision and administration of such work equal to ten percent
(10%) of the cost of such work. All work performed by an Outside Contractor
shall be performed in a good and workmanlike manner and in compliance with all
Legal Requirements, Landlord's requirements, the provisions of this Section 5.5
and all applicable Project Rules. Tenant shall give Landlord at least ten (10)
days prior written notice before the commencement of any work pursuant to this
Section 5.5. Additionally, it shall be Tenant's responsibility to ensure that
the Outside Contractor shall (i) conduct its work in such a manner so as not to
unreasonably interfere with any other construction occurring on or in the
Project or the Complex or with the transaction of business in the Project and in
the Complex; (ii) comply with such reasonable rules and regulations applicable
to all work being performed in the Project as may be promulgated from time to
time by Landlord; (iii) maintain such insurance and bonds in full force and
effect as may be reasonably requested by Landlord or as required by Legal
Requirements; and (iv) be responsible for reaching agreement with Landlord as to
the terms and conditions for all contractor items relating to conducting its
work. As a condition precedent to Landlord's approving the Outside Contractor
pursuant hereto, Tenant and the Outside Contractor shall deliver to Landlord
such assurances or instruments as Landlord may reasonably require to evidence
the Outside Contractor's compliance or agreement to comply with the provisions
of clauses (i), (ii), (iii), and (iv) of this subsection (b). Landlord retains
the right to make periodic inspections to assure conformity of the work of the
Outside Contractor with the aforementioned rules and regulations and with the
plans and specifications approved by Landlord. Within thirty (30) days after
substantial completion of any work by Tenant, Tenant, at Tenant's cost and
expense, shall furnish Landlord "as-built"

                                      -18-

<PAGE>

drawings of such work and shall cause the architect(s) and/or engineer(s) that
performed in connection with the work to prepare a report, in form and substance
acceptable to Landlord, for the benefit of Landlord, certifying to the
compliance of the work constructed by any Outside Contractor with the plans and
specifications approved by Landlord. Each Outside Contractor shall not perform
and, upon the request of Landlord, whether written or oral, each Outside
Contractor shall cease to perform, any activity that is disruptive to the
conduct of business within the Project or Complex or other tenants or occupants
of the Project or Complex.

     (c) Any and all such alterations, physical additions or improvements, when
made to the Leased Premises by Tenant or on Tenant's behalf, shall at once
become the property of Landlord and shall be surrendered to Landlord upon the
termination of this Lease by lapse of time or otherwise; provided, however, this
sentence shall not apply to movable equipment or furniture owned by Tenant. If
Tenant fails to remove such movables upon termination of this Lease, Landlord
may have the same removed and any resulting damage repaired at Tenant's expense.
In such event, such movables will automatically become the property of Landlord
and may be disposed of by Landlord in its sole discretion, without any right of
reimbursement therefor to Tenant.

     (d) Tenant shall not allow any liens to be filed against the Leased
Premises or the Project in connection with the installation of Tenant's
improvements in, or any repair or alteration work to, the Leased Premises
performed by Tenant or an Outside Contractor. If any such liens shall be filed,
Tenant shall cause the same to be released within five (5) days after the filing
thereof by bonding or other method acceptable to Landlord; provided, however,
this sentence shall not apply to movable equipment or furniture owned by Tenant.
If Tenant shall fail to timely cancel or discharge said lien or liens as
required above, Landlord, at its sole option, may cancel or discharge the same
and Tenant shall pay to Landlord upon demand, Landlord's cost thereof plus a
charge equal to fifteen percent (15%) of such costs for administrative cost
recovery. Upon completion of any such work, Tenant shall deliver to Landlord
evidence of payment, contractors' affidavits and full and final waivers of all
liens for, labor, services, or material. Tenant shall indemnify and hold
harmless Landlord from all losses, costs, damages, claims and expenses
(including attorneys' fees and costs of suits), liabilities or causes of action
arising out of or relating to any alterations, additions or improvements that
Tenant or any Outside Contractor makes to the Leased Premises, including any
occasioned by the filing of any mechanic's, materialman's, construction or
other liens or claims (and all costs or expenses associated therewith) asserted,
filed or arising out of any such work. All materialmen, contractors, artisans,
mechanics, laborers and other parties hereafter contracting with Tenant for the
furnishing of any labor, services, materials, supplies or equipment with respect
to any portion of the Leased Premises are hereby charged with notice that they
must look solely to Tenant for payment of same and Tenant's purchase orders,
contracts and subcontracts in connection therewith must clearly state this
requirement. Landlord shall have the right at all times to post and keep posted
on the Leased Premises any notices permitted or required by Legal Requirements,
or that Landlord shall deem proper for the protection of Landlord, the Leased
Premises, the Project and any other party having an interest therein, from
liens. Without limiting the generality of the foregoing, Tenant shall repair or
cause to be repaired at its expense all damage caused by any Outside Contractor,
its subcontractors or their employees. Tenant shall reimburse Landlord for any
costs incurred by Landlord to repair any damage caused by any Outside Contractor
or any costs incurred by Landlord in requiring any Outside Contractor's
compliance with the rules and regulations. Additionally, Tenant shall reimburse
Landlord for the reasonable costs Landlord may incur to have an engineer review
all mechanical, structural, electrical, plumbing and life safety systems
installed by any Outside Contractor.

     (e) Tenant agrees specifically that no food, soft drink or other vending
machine will be installed within the Leased Premises without Landlord's prior
written approval, which approval shall not be unreasonably withheld.

     5.6 LEGAL USE AND VIOLATIONS OF INSURANCE COVERAGE. Tenant shall not occupy
or use the Leased Premises, or permit any portion of the Leased Premises to be
occupied or used, for any business or purpose other than that stated in Section
2.2 hereof, or for any business or purpose which is unlawful, disreputable or
deemed to be extra-hazardous on account of fire, which creates noxious or
offensive odors emanating from the Leased Premises, or generates chemicals or
hazardous substances. Tenant shall not use, operate or maintain the Leased

                                      -19-

<PAGE>

Premises in such manner that any of the rates for any insurance carried by
Landlord or any other owner or occupant of premises in the Building shall
thereby be increased, or in such manner as will affect or cause a cancellation
of any such insurance policy.

     5.7 LEGAL REQUIREMENTS; RULES OF THE PROJECT.

     (a) As used in this Lease, "Legal Requirements" shall mean any applicable
                                 ------------------
law, statute, ordinance, order, rule, regulation, decree or requirement of a
Governmental Authority, and "Governmental Authority" shall mean the United
                             ----------------------
States, the state, county, city and political subdivisions in which the Project
is located or which exercise jurisdiction over the Project, and any agency,
department, commission, board, bureau or instrumentality of any of them which
exercise jurisdiction over the Project. Tenant shall comply with (and shall
indemnify Landlord for Tenant's failure to comply with), and shall cause its
employees, contractors and agents to comply with, and shall use its best efforts
to cause its customers, visitors and invitees to comply with, all Legal
Requirements relating to the use, condition or occupancy of the Leased Premises
(including, without limitation, the Americans with Disabilities Act, all Legal
Requirements applicable to Tenant's business and operations in the Leased
Premises and all orders and requirements imposed by any Health Officer, Fire
Marshall, Building Inspector or other Governmental Authority) and with the rules
of the Project adopted by Landlord from time to time for the safety, care and
cleanliness of the Leased Premises and the Project and for preservation of good
order therein (the "Project Rules"). In the event of any conflict between the
                    ------- -----
provisions of this Lease and the Project Rules, the provisions of this Lease
shall control. The initial Project Rules are attached hereto as Exhibit D.
                                                                ------- -

     (b) Without limiting the provisions of subsection (a) above, Tenant shall
comply with all applicable Legal Requirements regarding health, safety or the
environment (the "Environmental Laws"), including without limitation the
                  ------------- ----
application for and maintenance of all required permits, the submittal of all
notices and reports, proper labeling, training and recordkeeping, and timely and
appropriate response to any Release (defined below) or other discharge of a
substance under Environmental Laws. In no way limiting the generality of the
foregoing, Tenant shall not cause or permit the use, generation, storage,
Release or disposal in or about the Leased Premises, the Project or the Complex
of any substances, materials or wastes subject to regulation under Legal
Requirements from time to time in effect concerning hazardous, toxic or
radioactive materials (collectively, the "Hazardous Materials"), unless Tenant
                                          --------- ---------
shall have received Landlord's prior written consent, which consent Landlord may
withhold or revoke at any time in its sole discretion. Additionally, Tenant
shall not permit to be present upon the Leased Premises, or contained in any
transformers or other equipment thereon, any PCB's. "PCB" means any oil or other
                                                     ---
substance containing polychlorinated biphenyl (as defined in 40 CFR 761.3).
Tenant shall not permit any asbestos, or any structures, fixtures, equipment or
other objects or materials containing asbestos on the Leased Premises. Tenant
shall immediately notify Landlord of the presence of any Reportable Quantity
(defined below) of a Hazardous Material on or about the Leased Premises. As used
in this Lease, "Reportable Quantity" shall mean that amount defined in the
                ---------- --------
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, the Federal Water Pollution Control Act, as amended, pertinent
regulations thereunder or other relevant Environmental Laws.

     Tenant shall indemnify, protect, defend (with counsel reasonably approved
by Landlord) and hold Landlord, and the directors, officers, shareholders,
employees and agents of Landlord, harmless from any and all obligations, claims,
administrative proceedings, judgments, damages, fines, costs, and liabilities,
including reasonable attorneys' fees incurred in enforcing this Lease,
performance on Tenant's behalf, or collecting any sums due hereunder,
(collectively, the "Costs") that arise directly or indirectly from or in
                    -----
connection with the presence, suspected presence, Release (defined below), or
suspected Release of Hazardous Materials arising out of, in connection with, or
by reason of the action or inaction of Tenant, or Tenant's officers, directors,
partners, agents, employees, contractors, subtenants, invitees and visitors. As
used in this Lease, "Release" shall mean any spilling, leaking, pumping,
                     -------
pouring, emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment (including the abandonment or
discarding of barrels, containers and other closed receptacles). If Landlord
incurs any Costs, Tenant shall pay to Landlord the amount thereof upon demand.
Without limiting the generality of the foregoing, there shall be included in
Costs, capital, operating, and maintenance costs incurred in connection with any
investigation or

                                      -20-

<PAGE>

monitoring of site conditions, any clean up, containment, remedial, removal or
restoration work required or performed by any federal, state or local
governmental agency or political subdivision or performed by any nongovernmental
entity or person.

     5.8  RIGHTS RESERVED BY LANDLORD. Tenant shall permit Landlord or its
agents or representatives to enter into and upon any part of the Leased Premises
at all reasonable hours and upon reasonable notice (except for emergencies and
routine cleaning for which such entry may be made at any time and without
notice) to inspect same, clean or make repairs, alterations or additions thereto
and to show same to prospective tenants, subtenants, mortgagees and purchasers
as Landlord may deem necessary or desirable. Additionally, Landlord shall have
the right from time to time, without unreasonable interference with Tenant's use
of the Leased Premises, to decorate and to make repairs, alterations, additions,
changes or improvements, whether structural or otherwise, in and about the
Project, or any part thereof, to enter upon the Leased Premises therefor, and to
alter or relocate entrances, passageways, doors, corridors, elevators, stairs,
rest rooms, or other General Common Areas, Service Areas or Common Areas, and
during the continuance of such work, to temporarily close doors, entryways,
public space and corridors in the Building. Tenant shall not be entitled to any
abatement or reduction of any sums due under this Lease by reason of the
foregoing activities, nor shall such activities be construed to be an eviction
of Tenant, a default by Landlord hereunder, or a breach of the covenant of quiet
enjoyment.

     5.9  NUISANCE. Tenant shall conduct its business and control its agents,
employees, invitees, contractors and visitors in such a manner as not to create
any nuisance, or interfere with, annoy or disturb any other tenant or Landlord
in its operation of the Project.

     5.10 SUBORDINATION. This Lease is subject and subordinate to each ground or
land lease which may now or hereafter cover all or any part of the Project and
to each mortgage or deed of trust which may now or hereafter encumber all or any
portion of the Project and to all renewals, modifications, consolidations,
replacements and extensions thereof. This Section 5.10 shall be self-operative
and no further instrument of subordination need be required by any mortgagee or
lessor. Tenant, however, upon Landlord's request, shall execute promptly any
appropriate certificate or instrument in confirmation of such subordination.
Tenant hereby constitutes and appoints Landlord as Tenant's attorney in fact to
execute any such certificate or instrument for and on behalf of Tenant in the
event Tenant fails to execute such certificate or instrument within ten (10)
days following Landlord's request. In the event of the enforcement by the lessor
under any such ground or land lease or the trustee, the mortgagee or the
beneficiary under any such mortgage or deed of trust of the remedies provided
for by law or by such ground or land lease, mortgage or deed of trust, Tenant,
upon request of any person or party succeeding to the interest of Landlord as a
result of such enforcement (collectively, "Successor"), automatically will
                                           ---------
become the tenant of such Successor without change in the terms or other
provisions of this Lease; provided, however, that such Successor shall not be
(a) subject to any credits, offsets, defenses or claims which Tenant may have
against any prior landlord, (b) bound by any payment of Rent for more than one
(1) month in advance, except prepayments in the nature of security for the
performance by Tenant of its obligations under this Lease, (c) bound by any
amendment or modification of this Lease made after the applicable ground or land
lease, mortgage or deed of trust is placed against the Project (and Tenant has
been given notice thereof) without the written consent of such trustee,
mortgagee, beneficiary or landlord, (d) liable for any act, omission, neglect or
default of any prior landlord, or (e) required to make any capital improvements
to the Project or the Leased Premises which Landlord may have agreed to make but
had not completed. Notwithstanding the foregoing, the holder of any ground or
land lease that may affect all or any portion of the Project or the holder of
any mortgage or deed of trust that may encumber all or any portion of the
Project may elect at any time to cause their interest in the Project to be
subordinate and junior to Tenant's interest under this Lease by filing an
instrument in the real property records of Dallas County, Texas effecting such
election and providing Tenant with notice of such election.

     5.11 ESTOPPEL CERTIFICATE. Within ten (10) days after Landlord's request,
Tenant will execute an estoppel certificate certifying as to such facts (if
true) as Landlord (or mortgagees, ground or land lessors or proposed purchasers
of the Project) may reasonably request (including, in the case of mortgagees or
ground or land

                                      -21-

<PAGE>

lessors, reasonable notice and cure provisions). Failure to deliver such
estoppel certificate within such ten (10) day period shall be deemed Tenant's
agreement to and acknowledgment of the statements contained therein.

        5.12  TENANT'S REMEDIES. Tenant specifically agrees to look solely to
Landlord's (or its successors') interest in the Project for the recovery of any
judgment from Landlord, it being agreed that Landlord (and if Landlord is a
partnership, its partners [direct or indirect, general or limited], or if
Landlord is a corporation, its directors, officers or any successors in
interest) shall never be personally liable for any such judgment.

        5.13  NAME OF BUILDING AND PROJECT. Tenant shall not utilize the name
of the Building, the Project or the Complex for any purpose whatsoever, except
to identify the location of the Leased Premises in Tenant's address. Landlord
shall have the right to change the name of the Building and/or the Complex or
the design or construction thereof whenever Landlord, in its sole discretion,
deems it appropriate without any liability to Tenant and without any consent of
Tenant being necessary.
                                       VI.

        6.1   CONDEMNATION.

        (a)   If the Leased Premises shall be taken or condemned (or sold in
lieu thereof) for any public purpose to such an extent as to render the Leased
Premises untenantable, either party shall have the right to terminate this Lease
by giving written notice of such election to terminate to the other party within
ten (10) days from the date of such condemnation or taking (or sale in lieu
thereof), which termination shall be effective on the date of the transfer of
possession of the Leased Premises to the condemning authority. If only a portion
thereof shall be so taken so as not to render the remainder untenantable, this
Lease shall not terminate, and Base Rental shall be diminished by an equitable
amount (based upon the square footage of Net Rentable Area so taken) and
Landlord shall, to the extent practicable, restore the Leased Premises so that
the remaining portion of the Leased Premises shall be partitioned off from the
portion so taken or condemned; however, Landlord shall be obligated to restore
or rebuild the damaged property only to the extent the holder of any mortgage or
deed of trust or the landlord under any ground lease makes the proceeds of such
taking available to Landlord for the purposes of rebuilding and restoration, or
if no mortgage or ground lease then affects the Project, then only to the extent
of the net proceeds of such taking. If all or substantially all of the Project
(whether or not the Leased Premises are affected), or a portion of the Project
(whether or not the Leased Premises are affected) as to cause the remainder of
the Project not to be economically feasible to operate, as reasonably determined
by Landlord, should be taken or condemned (or sold in lieu thereof) for any
public purpose, then this Lease, at the option of Landlord upon the giving of
notice to Tenant within ten (10) days from the date of such condemnation or
taking (or sale in lieu thereof), shall cease and terminate effective on the
date of the transfer of possession of the Leased Premises to the condemning
authority. If this Lease is terminated in accordance with this Section 6.1(a),
Base Rental shall be apportioned on a per diem basis and shall be payable
through the effective date of the termination. All proceeds from any taking or
condemnation (or sale in lieu thereof) of the Leased Premises or any portion of
the Project shall belong to and be paid to Landlord, and Tenant shall not be
entitled to any portion of such award (except that Tenant shall have all rights
permitted under the laws of the State of Texas to appear, claim and prove in
proceedings relative to such taking (i) the value of any fixtures, furnishings,
and other personal property which are taken but which under the terms of this
Lease Tenant is permitted to remove at the end of the Term, (ii) the unamortized
cost [such costs having been amortized on a straight line basis over the Term
excluding any renewal terms] of Tenant's leasehold improvements which are taken
that Tenant is not permitted to remove at the end of the Term and which were
installed solely at Tenant's expense [i.e., not paid for by Landlord or
purchased with allowances provided by Landlord], and (iii) relocation and moving
expenses, but not the value of Tenant's leasehold estate created by this Lease
and only so long as such claims in no way diminish the award Landlord receives
from the condemning authority).

        (b)   In the event of any taking or condemnation for any public purpose
of the Leased Premises or any portion thereof occurs for one hundred eighty
(180) days or less, then it shall be deemed a temporary taking, this

                                      -22-

<PAGE>

Lease shall continue in full force and effect, Landlord shall be under no
obligation to make any repairs or alterations, and at Landlord's option either
(i) there shall be no abatement of Base Rental and all proceeds of such taking
relating to the Term occurring during such taking shall belong to Tenant, or
(ii) Base Rental shall be diminished by an equitable amount (based upon the
square footage of Net Rentable Area so taken) for the period of time the Leased
Premises are so taken and Landlord shall be entitled to the proceeds of such
taking.

         6.2 DAMAGES FROM CERTAIN CAUSES. Landlord shall not be liable
or responsible to Tenant for any loss or damage to any property or person
occasioned by theft, fire, casualty, vandalism, acts of God, public enemy,
injunction, riot, strike, inability to procure materials, insurrection, war,
court order, requisition or order of governmental body or authority, or for any
other causes beyond Landlord's reasonable control, or for any damage or
inconvenience which may arise through repair or alteration of the Leased
Premises, the Project, or the Complex. All goods, property or personal effects
stored or placed by Tenant in or about the Project shall be at the sole risk of
Tenant.

         6.3 [INTENTIONALLY OMITTED]

         6.4 HOLDING OVER. In the event of holding over by Tenant after
expiration or termination of this Lease without the consent of Landlord, Tenant
shall be deemed a tenant at will and shall pay, as Base Rental for each month or
any part thereof of any such holdover period, the greater of (a) 175% the Base
Rental and Base Rental Adjustment which Tenant was obligated to pay for the
month immediately preceding the end of the Term, or (b) 175% of the prevailing
market rent for the Leased Premises (as reasonably determined by Landlord),
(plus any additional rent provided for under this Lease). No holding over by
Tenant after the Term shall operate to extend the Term. Additionally, in the
event of any unauthorized holding over by Tenant, Tenant shall indemnify
Landlord against (i) all claims for damages by any other lessee to whom Landlord
may have leased all or any part of the Leased Premises covered hereby, and (ii)
all other losses, costs and expenses, including attorneys' fees, incurred by
Landlord by reason of such holding over. Any holding over with the consent of
Landlord in writing shall thereafter constitute this Lease a lease from month to
month.

         6.5 CASUALTY. In the event of a fire or other casualty in the Leased
Premises, Tenant shall immediately give notice thereof to Landlord. If the
Leased Premises shall be destroyed by fire or other casualty so as to render the
Leased Premises untenantable in whole or in part, Base Rental shall abate
equitably thereafter as to the portion of the Leased Premises rendered
untenantable (based upon the square footage of the Net Rentable Area rendered
untenantable) until the earlier to occur of (i) sixty (60) days after the date
Tenant is permitted to commence repair of its leasehold improvements for the
portion of the Leased Premises so damaged, or (ii) the date the Leased Premises
are made tenantable. Landlord agrees to commence and prosecute repair of the
Building Standard Improvements promptly and with all due diligence, and Tenant
agrees to commence and prosecute repair of its leasehold improvements promptly
and with all due diligence, subject in each case to delays for insurance
adjustments and delays caused by matters beyond the applicable party's control,
zoning laws and building codes then in effect, and to the termination rights set
forth below. In the event any portion of the Project is damaged by fire or other
casualty, and if such damage is such that Landlord cannot reasonably be expected
to substantially complete its repair work within one hundred and eighty (180)
days after the date of casualty, as reasonably estimated by a responsible
contractor selected by Landlord, then Landlord shall have the right to terminate
this Lease and all Rent owing under this Lease up to the time of such
destruction or termination shall be paid by Tenant and thenceforth this Lease
shall cease and come to an end. Landlord shall give Tenant written notice of its
decisions, estimates or elections under this Section 6.5 within sixty (60) days
after any such damage or destruction. In the event any portion of the Leased
Premises is damaged by fire or other casualty, and if such damage is such that
Landlord cannot reasonably be expected to substantially complete its repair work
of the Building Standard Improvements within the Leased Premises within one
hundred and eighty (180) days after the date of the casualty to the extent
necessary to allow Tenant to commence repair of its leasehold improvements, as
reasonably estimated by a responsible contractor selected by Landlord, and
Landlord has not terminated this Lease as herein provided, then Tenant shall
have the right, within thirty (30) days after Landlord delivers the estimate to
Tenant of time to restore, to terminate this Lease. Notwithstanding anything to
the contrary contained in this Section 6.5. if at the time

                                      -23-

<PAGE>

of any damage to the Project, less than one (1) year remains in the Term, then
Landlord, at Landlord's sole option, shall have the right to terminate this
Lease. Additionally, notwithstanding anything to the contrary contained in this
Section 6.5, (a) Landlord shall be obligated to restore or rebuild (i) the
damaged property only to the extent of the net insurance proceeds made available
to Landlord for restoration or rebuilding by the holder of any mortgage or deed
of trust or lessor under any ground lease, and (ii) only the portion of the
Leased Premises that consists of Building Standard Improvements and only to the
condition that existed immediately prior to the casualty, and nothing herein
shall be construed to obligate Landlord under any circumstances to repair or
restore any of Tenant's leasehold improvements in excess of Building Standard
Improvements, and (b) if the Leased Premises, the Project, or any portion
thereof shall be damaged through the negligence or willful misconduct of Tenant
or any of its agents, employees or invitees, the cost of any repairs made by
Landlord not covered by insurance proceeds received by Landlord shall be paid by
Tenant and Rent shall continue unabated.

               6.6  ATTORNEYS' FEES. In the event Tenant or Landlord defaults in
the performance of any of the terms, covenants, agreements or conditions
contained in this Lease and the nondefaulting party places the enforcement of
this Lease, or any part thereof, or the collection of any sums due, or to become
due hereunder, or recovery of the possession of the Leased Premises, in the
hands of an attorney, or files suit upon the same, the defaulting party agrees,
to the extent permitted by applicable law, to pay the nondefaulting party all
reasonable attorneys' fees incurred by the nondefaulting party if such suit is
successful. In addition, if Tenant requests any consent of Landlord to any
assignment or sublease, or otherwise requests any consent or other action on the
part of Landlord, and Landlord deems it necessary for any documents to be
prepared or reviewed by its counsel, Tenant shall pay all reasonable attorneys'
fees and expenses incurred by Landlord in connection therewith.

               6.7  ASSIGNMENTS BY LANDLORD. Landlord shall have the right to
transfer and assign, in whole or in part, all its rights and obligations
hereunder and in the Project and property referred to herein, and in such event
and upon its transferee's assumption of Landlord's obligations thereafter
accruing hereunder (any such transferee to have the benefit of, and be subject
to, the provisions of Section 4.6 and Section 5.12), no further liability or
obligation shall thereafter accrue against Landlord hereunder. Upon request by
Landlord, Tenant agrees to execute a certificate certifying such facts (if true)
as Landlord may reasonably require in connection with any such assignment by
Landlord.

               6.8  DEFAULT BY TENANT. The occurrence of any of the following
events and the expiration of any grace periods hereafter described shall
constitute an "Event of Default" under this Lease on the part of Tenant:
               ----- -- -------

                    (a)   Tenant shall fail to pay any sum to be paid by Tenant
          under this Lease, and such failure shall continue for five (5) days
          after Tenant's receipt of written notice from Landlord (provided that
          Landlord shall only be obligated to give Tenant written notice of any
          monetary default once in any twelve (12) month period, and thereafter
          Tenant shall be deemed in default within five (5) days after failure
          to make such payment without requirement of notice from Landlord);

                    (b)   Tenant shall assign its interest in this Lease or
          sublet any portion of the Leased Premises except as permitted in this
          Lease or Tenant shall otherwise breach the provisions of Section 5.4
          of this Lease;

                    (c)   a breach shall be made in the performance of any of
          the other covenants or conditions which Tenant is required to observe
          and to perform (other than those referred to in subsections (a) and
          (b) above), and such breach shall continue for fifteen (I5) days after
          notice from Landlord of such breach (unless with respect to any
          default which cannot be cured within fifteen (15) days due to causes
          beyond Tenant's reasonable control, Tenant, in good faith, after
          receiving such notice, shall have commenced and thereafter shall
          continue diligently to perform all action necessary to cure such
          default);

                    (d)   if Tenant or any guarantor of this Lease is a
          corporation, Tenant or any such guarantor shall cease to exist as a
          corporation in good standing in the state of its incorporation, or, if
          Tenant

                                      -24-

<PAGE>

          or any guarantor of this Lease is a partnership or other entity,
          Tenant or any such guarantor shall be dissolved or otherwise
          liquidated;

                    (e)    if the interest of Tenant under this Lease shall be
          subjected to any attachment, execution, levy or other judicial seizure
          pursuant to any order or decree entered against Tenant in any legal
          proceeding that is not stayed (so as to prevent seizure) pending
          appeal and such order or decree is not vacated or bonded against so as
          to prevent seizure upon the earlier to occur of (aa) fifteen (15)
          days prior to the sale of such interest pursuant to such order or
          decree, or (bb) thirty (30) days after entry of the order;

                    (f)    Tenant shall fail or refuse to move into or take
          possession of the Leased Premises within forty-five (45) days after
          the Commencement Date; or

                    (g)    if a breach occurs under, or any guarantor of this
          Lease neglects or fails to perform or observe, any covenant, term,
          provision, or condition contained in any such guaranty of this Lease.

               If an Event of Default on the part of Tenant shall have occurred
under this Lease, then or at any time thereafter while such Event of Default
continues, Landlord, at Landlord's option, may have any one or more of the
following described remedies in addition to all other rights and remedies
provided at law or in equity:

                    (i)    Landlord, with or without terminating this Lease, may
          immediately or at any time thereafter re-enter the Leased Premises and
          correct or repair any condition which shall constitute a failure on
          Tenant's part to keep, observe, perform, satisfy or abide by any term,
          condition, covenant, agreement or obligation of this Lease and Tenant
          shall fully reimburse and compensate Landlord on demand for the costs
          incurred by Landlord in doing so; or

                    (ii)   Landlord may terminate this Lease and forthwith
          repossess the Leased Premises and remove all persons or property
          therefrom, and be entitled to recover forthwith as damages a sum of
          money equal to the total of (A) the cost of recovering the Leased
          Premises (including, without limitation, attorneys' fees and costs of
          suit), (B) the cost as reasonably estimated by Landlord of any
          alterations of, or repairs to, the Leased Premises which are necessary
          or proper to prepare the same for reletting, (C) the unpaid Rent owed
          at the time of termination, plus interest thereon from due date at the
          Interest Rate, (D) the present value of the balance of the Rent for
          the remainder of the Term less the present value of the fair market
          rental value (and in computing the fair market rental value the
          factors taken into account shall include without limitation the market
          rental concessions and the time necessary to relet the Leased
          Premises) of the Leased Premises for said period (in each case using a
          discount rate of eight percent (8%) per annum), and (E) any other sum
          of money and damages owed by Tenant to Landlord; or

                    (iii)  Landlord may terminate Tenant's right of possession
          (but not this Lease) and may repossess the Leased Premises by forcible
          entry or detainer suit or otherwise without demand or notice of any
          kind to Tenant and without terminating this Lease, and remove all
          persons or property therefrom, using such force as may be necessary
          (Tenant hereby waiving any claim by reason of such reentry,
          repossession or removal or by issuance of any distress warrant or writ
          of sequestration), in which event Landlord may (but shall be under no
          obligation to do so unless required by law), relet the Leased Premises
          or any part thereof for the account of Tenant for such rent and upon
          such terms as shall be satisfactory to Landlord (however, to the
          extent Landlord is so required by law to relet the Leased Premises,
          Landlord shall be under no obligation to relet the Leased Premises or
          any portion thereof in preference to any other space in the Project or
          on terms unsatisfactory to Landlord). For the purpose of such
          reletting Landlord is authorized to decorate or to make any repairs,
          changes, alterations or additions in or to the Leased Premises, or
          provide leasing inducements or brokerage commissions that may be
          necessary or convenient, and (A) if Landlord shall fail or refuse to
          relet the Leased Premises, or (B) if relet and a sufficient sum shall
          not be realized from such reletting (after paying the unpaid amounts
          due hereunder earned but unpaid at the time of reletting plus interest
          thereon at the Interest

                                      -25-

<PAGE>

          Rate, the cost of recovering possession [including, without
          limitation, attorneys' fees and costs of suit], all of the costs and
          expenses of such decorations, repairs, changes, alterations and
          additions and all other expenses of such reletting [including, without
          limitation, leasing inducements and brokerage commission] and of the
          collection of the rent accruing therefrom) to satisfy the Rent
          provided for in this Lease to be paid, then Tenant shall pay to
          Landlord as damages a sum equal to the amount of the rental reserved
          in this Lease for such period or periods or, if the Leased Premises
          have been relet, Tenant shall satisfy and pay any such deficiency upon
          demand therefor from time to time as the same accrues or becomes due.
          Tenant agrees that Landlord may file suit to recover any sums falling
          due under the terms of this Section 6.8 from time to time on one or
          more occasions without Landlord being obligated to wait until
          expiration of the Term, and no delivery or recovery of any portion due
          Landlord hereunder shall be any defense in any action to recover any
          amount not theretofore reduced to judgment in favor of Landlord, nor
          shall such reletting be construed as an election on the part of
          Landlord to terminate this Lease unless a written notice of such
          intention be given to Tenant by Landlord. Notwithstanding any such
          reletting without termination, Landlord may at any time thereafter
          elect to terminate this Lease for such previous breach. If Landlord
          re-enters the Leased Premises or terminates this Lease pursuant to any
          of the provisions of this Lease, Tenant hereby waives all claims for
          damages which may be caused by such re-entry or termination by
          Landlord. No such re-entry or termination shall be considered or
          construed to be a forcible entry; or

                        (iv)  Landlord is entitled and is hereby authorized,
          without any notice to Tenant whatsoever, to enter upon the Leased
          Premises by use of a master key, a duplicate key, picking the locks,
          or other peaceable means, and to change, alter, and/or modify the door
          locks on all entry doors of the Leased Premises, thereby excluding
          Tenant, and its officers, principals, agents, employees, visitors and
          representatives therefrom. In the event that Landlord has either
          terminated Tenant's right of possession to the Leased Premises
          pursuant to the foregoing provisions of this Lease, or has terminated
          this Lease by reason of the Event of Default, Landlord shall not
          thereafter be obligated to provide Tenant with a key to the Leased
          Premises at any time; provided, however, that in any such instance,
          during Landlord's normal business hours and at the convenience of
          Landlord, and upon the written request of Tenant accompanied by such
          written waivers and releases as Landlord may require, Landlord will
          escort Tenant or its authorized personnel to the Leased Premises to
          retrieve any personal belongings or other property of Tenant not
          subject to Landlord's liens or security interests described in this
          Lease or available under applicable laws. If Landlord elects to
          exclude Tenant from the Leased Premises without permanently
          repossessing the Leased Premises or terminating this Lease pursuant to
          the foregoing provisions of this Lease, then Landlord (at any time
          prior to permanent repossession or termination) shall not be obligated
          to provide Tenant a key to re-enter the Leased Premises until such
          time as all delinquent Rent has been paid in full and all other Events
          of Default, if any, have been completely cured to Landlord's
          satisfaction, and Landlord has been given assurance reasonably
          satisfactory to Landlord evidencing Tenant's ability to satisfy its
          remaining obligations under this Lease. During any such temporary
          period of exclusion, Landlord will, during Landlord's regular business
          hours and at Landlord's convenience, upon written request by Tenant,
          escort Tenant or its authorized personnel to the Leased Premises to
          retrieve personal belongings of Tenant or its employees, and such
          other property of Tenant as is not subject to Landlord's liens and
          security interests described in this Lease or available under
          applicable laws. The provisions hereof shall override and control any
          conflicting provisions of Section 93.002 of the Texas Property Code
          (as amended).

                   6.9  INSOLVENCY OR BANKRUPTCY. The appointment of a receiver
to take possession of all or substantially all of the assets of Tenant or any
guarantor of any of Tenant's obligations under this Lease, or any general
assignment by Tenant for the benefit of creditors, or any action taken or
suffered by Tenant or any such guarantor under any insolvency, bankruptcy, or
reorganization act, other than an involuntary proceeding that is dismissed or
bonded against within twenty (20) days after the filing thereof, shall at
Landlord's option, constitute a breach of this Lease by Tenant. Upon the
happening of any such event or at any time thereafter, this Lease shall
terminate five (5) days after notice of termination from Landlord to Tenant. In
no event shall this Lease be assigned or assignable by voluntary or involuntary
bankruptcy or a proceeding in lieu thereof and, in no event shall this Lease

                                      -26-

<PAGE>

or any rights or privileges hereunder be an asset of Tenant or any such
guarantor under any bankruptcy, insolvency, or reorganization proceeding.

               6.10   NON-WAIVER. No failure or delay of Landlord in any one
instance to exercise any remedy or power given it herein or to insist upon
strict performance by Tenant of any obligation imposed on it herein in any other
instance shall constitute a waiver or a modification of the terms hereof by
Landlord in any one instance or any right it has herein to demand strict
compliance with the terms hereof by Tenant in any other instance. Additionally,
no express written waiver by Landlord shall affect any condition other than the
condition specified in such express written waiver and only for the time and in
the manner specifically stated. A receipt by Landlord of any Rent with knowledge
of the breach of any covenant or agreement contained in this Lease shall not be
deemed a waiver of such breach, and no waiver by Landlord of any provision of
this Lease shall be deemed to have been made unless expressed in writing and
signed by Landlord. No payment by Tenant or receipt by Landlord of a lesser
amount than the Rent due under this Lease shall be deemed to be other than an
account of the earliest Rent due hereunder, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as Rent
be deemed an accord and satisfaction, and Landlord may accept such check or
payment without prejudice to Landlord's right to recover the balance of such
Rent or pursue any other remedy in this Lease provided. No course of conduct
between Landlord and Tenant, and no acceptance of the keys to or possession of
the Leased Premises before the termination of the Term by Landlord or any
employee of Landlord shall constitute a waiver of any such breach or of any
term, covenant or condition of this Lease or operate as a surrender of this
Lease. All of the remedies permitted or available to Landlord under this Lease,
or at law or in equity, shall be cumulative and not alternative and the exercise
of any such right or remedy shall not constitute a waiver or election of
remedies with respect to any other permitted or available right or remedy.

               6.11   CASUALTY INSURANCE. Landlord shall maintain fire and
extended coverage insurance on the entire Project (excluding leasehold
improvements and the personal property of tenants) and on the Building Standard
Improvements in amounts desired by Landlord. Said insurance shall be maintained
at the expense of Landlord (which expense is to be included in Operating
Expenses) with an insurance company authorized to insure properties in the State
of Texas. All payments for losses thereunder shall be made solely to Landlord.
If the annual premiums to Landlord for such casualty insurance exceed the
standard premium rates because of the nature of Tenant's operations, contents or
improvements beyond Building Standard Improvements or because the same result in
extra-hazardous exposure, then Tenant shall upon receipt of copies of
appropriate premium invoices promptly reimburse Landlord for such increases in
such premiums. Tenant shall maintain at its expense fire and extended coverage
insurance on the full insurable value of all of the leasehold improvements and
Tenant's personal property, including removable trade fixtures, located in the
Leased Premises and on the full insurable value of all additions and
improvements (including fixtures) made by Tenant and not required to be insured
by Landlord above. Upon request of Landlord, Tenant shall deliver to Landlord a
duly executed certificate of insurance reflecting Tenant's maintenance of the
insurance required under this Section 6.11.

               6.12   LIABILITY INSURANCE. Landlord and Tenant each shall
maintain separate policies of commercial general liability insurance with the
premiums thereon fully paid in advance, issued by and binding upon an insurance
company authorized to transact business in Texas and of good financial standing,
such insurance to afford minimum protection of not less than $2,000,000.00 in
respect of bodily injury or death and/or property damage in respect of any one
occurrence; provided, however, that Tenant shall carry such greater limits of
coverage as Landlord may reasonably request from time to time so long as
Landlord maintains similar limits of coverage.

               6.13   HOLD HARMLESS. Except as otherwise expressly provided in
this Lease to the contrary, Landlord shall not be liable to Tenant, or to
Tenant's agents, servants or employees for any damage to person or property
caused by the negligence or intentional torts of Tenant, or its agents, servants
or employees, and Tenant agrees to indemnify and hold Landlord harmless from all
liability and claims for any such damage. Except as otherwise expressly provided
in this Lease to the contrary, Tenant shall not be liable to Landlord, or to
Landlord's agents, servants or employees for any damage to person or property
caused by the negligence or intentional torts of Landlord, or its agents,

                                      -27-

<PAGE>

servants or employees, and Landlord agrees to indemnify and hold Tenant harmless
from all liability and claims for any such damage.

          6.14 WAIVER OF SUBROGATION RIGHTS. ANYTHING IN THIS LEASE TO THE
CONTRARY NOTWITHSTANDING, LANDLORD AND TENANT EACH HEREBY WAIVES ANY AND ALL
RIGHTS OF RECOVERY, CLAIM, ACTION OR CAUSE-OF-ACTION, AGAINST THE OTHER, ITS
AGENTS (INCLUDING PARTNERS, BOTH GENERAL AND LIMITED), OFFICERS, DIRECTORS,
SHAREHOLDERS, CUSTOMERS, INVITEES, OR EMPLOYEES, FOR ANY LOSS OR DAMAGE THAT MAY
OCCUR TO THE LEASED PREMISES, OR ANY IMPROVEMENTS THERETO, OR THE PROJECT OF
WHICH THE LEASED PREMISES ARE A PART, OR ANY IMPROVEMENTS THEREON, OR ANY
PERSONAL PROPERTY OF SUCH PARTY THEREIN, BY REASON OF FIRE, THE ELEMENTS OR ANY
OTHER CAUSE WHICH IS OR IS REQUIRED TO BE INSURED AGAINST UNDER THE INSURANCE
POLICIES REFERRED TO IN SECTION 6.11 HEREOF, REGARDLESS OF CAUSE OR ORIGIN,
INCLUDING NEGLIGENCE OF THE OTHER PARTY HERETO, ITS AGENTS, PARTNERS,
SHAREHOLDERS, OFFICERS, DIRECTORS, CUSTOMERS, INVITEES OR EMPLOYEES, AND
COVENANTS THAT NO INSURER SHALL HOLD ANY RIGHT OF SUBROGATION AGAINST SUCH OTHER
PARTY. EACH PARTY SHALL ADVISE ITS RESPECTIVE INSURERS OF THE FOREGOING WAIVER
AND SUCH WAIVER SHALL BE A PART OF EACH POLICY MAINTAINED BY SUCH PARTY.

          6.15 PARKING.

          (a) At all times during the Term, Landlord agrees to furnish and
Tenant agrees to pay for and lease parking rights for (i) ten (10) vehicles in
the unreserved parking area designated by Landlord in the Garage (the "Must Take
                                                                       ---- ----
Unreserved Permits"), and (ii) zero (-0-) vehicles in the reserved parking area
---------- -------
as designated by Landlord in the Garage ("Reserved Permits"). Notwithstanding
                                          -------- -------
the foregoing, Tenant shall have the right to elect at any time during the Term
to lease up to an aggregate of ten (10) additional permits to park vehicles in
the unreserved parking area designated by Landlord in the Garage (the "Optional
                                                                       --------
Unreserved Permits"), by furnishing at least thirty (30) days prior written
---------- -------
notice to Landlord of Tenant's desire to lease such Optional Unreserved Permits
(however, in no event may the aggregate number of Parking Permits [defined
below] leased by Tenant at any one time during the Term pursuant to this Section
6.15 exceed twenty (20) Parking Permits) (the Must Take Unreserved Permits and
the Optional Unreserved Permits, collectively, the "Unreserved Permits"). No
                                                    ---------- -------
specific spaces in the Garage are to be assigned to Tenant but Landlord will
issue to Tenant the aforesaid number of parking stickers and/or cards each of
which will authorize parking in the Garage of a vehicle on which the sticker is
displayed, or Landlord will provide a reasonable alternative means of
identifying and controlling vehicles authorized to be parked in the Garage.
Landlord may designate the area within which each such vehicle may be parked,
and Landlord may change such designations from time to time.

          (b) As rental ("Parking Rental") for the Unreserved Permits and the
                          ------- ------
Reserved Permits (collectively, the "Parking Permits"), Tenant covenants and
                                     ------- -------
agrees to pay Landlord during the Term, as additional rental hereunder, (A) the
sum of $40.00 per month plus any applicable sales tax for each of the parking
stickers/cards to be issued by Landlord as herein provided for Parking Permits
in the unreserved parking area of the Garage, and (B) the sum of $75.00 per
month plus any applicable sales tax for each of the parking stickers/cards to be
issued by Landlord as herein provided for Parking Permits in the reserved
parking area of the Parking Garage, such sums to be payable monthly in advance
on the first day of each and every month during the Term, and a pro rata portion
of such sum shall be payable for any partial calendar month in the event this
Lease commences (or ends) on a date other than the first (or last) day of a
calendar month. Tenant's obligation to pay the Parking Rental shall be
considered an obligation to pay Rent for all purposes hereunder and shall be
secured in like manner as is Tenant's obligation to pay Rent. Notwithstanding
the foregoing, provided an Event of Default has not occurred, Landlord shall
abate all Parking Rental as to the aforementioned Parking Permits for the period
from the Commencement Date through and until the day immediately preceding the
second (2nd) anniversary of the Commencement Date.

                                      -28-

<PAGE>

                   (c)   If the parking spaces covered by the Parking Permits
are not available to Tenant during any portion of the Term due to causes beyond
the reasonable control of Landlord (including without limitation, as the result
of a casualty or condemnation) this Lease shall continue without abatement of
Rent and Landlord shall use reasonable efforts to make available to Tenant
sufficient substitute unassigned parking spaces (in the amount of those spaces
not available to Tenant) in the Complex, or, if sufficient parking spaces are
not available in the Complex, within a one (1) mile radius of the Project, until
the parking spaces covered by the Parking Permits are made available to Tenant.
The substitute parking spaces shall be provided to Tenant at a rental rate not
to exceed the rate Tenant would have paid had the parking spaces covered by the
Parking Permits been so available to Tenant in the Garage. In the event Landlord
does not make substitute parking spaces available to Tenant after notice of such
failure is delivered by Tenant to Landlord, Parking Rental shall abate as to the
Parking Permits for which parking spaces are not made available until substitute
parking spaces or the original parking spaces covered by the Parking Permits are
made available to Tenant. Landlord shall use its reasonable efforts to ensure
that the parking spaces covered by the Parking Permits are available to Tenant
throughout the Term.

                   (d)   Landlord or the operator of the Garage may make, modify
and enforce reasonable rules and regulations relating to the parking of vehicles
in the Garage, and Tenant shall abide by such rules and regulations and shall
exercise reasonable efforts to cause its employees and invitees to abide by such
rules and regulations. Without limiting the foregoing, during hours other than
Building Operating Hours, the Garage shall be open to visitors to any portion of
the Complex. Additionally, Landlord reserves the right to alter the size of the
Garage.

                   6.16  SEVERABILITY. If any term or provision of this Lease,
or the application thereof to any person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Lease, or the application of
such provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby. Each provision of this
Lease shall be valid and shall be enforceable to the extent permitted by law.

                   6.17  NOTICES. All notices, demands, consents and approvals
which may or are required to be given by either party to the other hereunder
shall be in writing and shall be given by personal delivery, by an overnight
courier, or by deposit in the United States mail, certified, postage prepaid and
addressed to the party to be notified at the address for such party specified
below, or to such other place as the party to be notified may from time to time
designate by at least fifteen (15) days' notice to the notifying party. Notice
deposited in the mail in the manner hereinabove described shall be deemed to
have been fully given and received (unless otherwise stated in the Lease) on the
third (3rd) day after it is so deposited whether or not actually received.
Notice given in any other manner shall be deemed given and received only if and
when received by the party to be notified.

          If to Landlord:        Hines Interests Limited Partnership
                                 One Galleria Tower
                                 13355 Noel Road, Suite 250
                                 Dallas, Texas 75240
                                 Attn:    Property Manager

          With a copy to:        Hines Interests Limited Partnership
                                 2800 Post Oak Boulevard
                                 Houston, Texas 77056
                                 Attn:    Jeffrey C. Hines and E. Staman Ogilvie

                                      -29-

<PAGE>

          If to Tenant
          prior to the
          Commencement Date:          19111 Dallas Parkway
                                      Suite 300
                                      Dallas, Texas 75252
                                      Attention: General Counsel
          If to Tenant
          on or after the
          Commencement Date:          One Galleria Tower
                                      13365 Noel Road
                                      Suite 1555
                                      Dallas, Texas 75240
                                      Attention: General Counsel

                   Additionally, each of Landlord and Tenant may designate up to
three (3) additional addresses to which copies of all notices shall be sent.
Furthermore, Tenant agrees to send copies of all notices required or permitted
to be given to Landlord under this Section 6.17 to each lessor under any
ground or land lease covering all or any portion of the Project and to each
holder of a mortgage or deed of trust encumbering all or any portion of the
Project that notifies Tenant in writing of its interest and the address to which
notices are to be sent. Tenant hereby appoints as an agent to receive the
service of all dispossessory or distraint proceedings and notices thereunder the
person in charge of or occupying the Leased Premises at the time, and, if no
person shall be in charge of or occupying the same, then such service may be
made by attaching the same on the main entrance of the Leased Premises.

                   6.18  SUCCESSORS. This Lease shall be binding upon and inure
to the benefit of Landlord, its successors and assigns, and shall be binding
upon and inure to the benefit of Tenant, its successors and, to the extent
assignment may be approved by Landlord hereunder, Tenant's assigns.

                   6.19  ENTIRETY. This instrument and any attached addenda or
exhibits signed by the parties hereto constitute the entire agreement between
Landlord and Tenant. No prior or contemporaneous promises, inducements,
representations or agreements, oral or otherwise, between the parties hereto not
embodied herein shall be binding or have any force or effect. Tenant will make
no claim on account of any representations whatsoever, whether made by any
renting agent, broker, officer or other representative of Landlord or which may
be contained in any circular, prospectus or advertisement relating to the Leased
Premises or the Project, or otherwise, unless the same is specifically set forth
in this Lease.

                   6.20  FINANCIAL STATEMENTS. If Landlord intends to sell all
or any portion of the Building or the Project (or any interest therein), or
obtain a loan secured by the Building or the Project (or any interest therein),
then Tenant shall, within fifteen (15) days of Landlord's written request,
furnish Landlord with copies of financial statements, dated no earlier than one
(1) year before such request, certified as accurate by Tenant, or, if available,
audited financial statements prepared by an independent certified public
accountant with copies of the auditor's statement, reflecting Tenant's then
current financial condition, or the financial condition of the individuals
comprising Tenant, in such form and detail as Landlord may reasonably request.

                   6.21  AMENDMENTS. This Lease may not be altered, changed or
amended, except by an instrument in writing, signed by both parties hereto.

                                      -30-

<PAGE>

              6.22   VACATING THE LEASED PREMISES. If no portion of the Leased
Premises is occupied by Tenant or its permitted assignee or sublessee for longer
than one hundred eighty (180) consecutive days, even though Tenant continues
to pay the stipulated Rent under this Lease with respect thereto, and Tenant or
its permitted assignee or subtenant fails to re-occupy the same within sixty
(60) days after notice from Landlord, then from and after the expiration of said
sixty (60) day notice period, Landlord may terminate this Lease as to the Leased
Premises, without declaring Tenant in default under this Lease, by delivering
written notice to Tenant and Landlord and Tenant shall have no further
obligations under this Lease. Space which is vacated on account of fire or other
casualty or bona fide remodeling shall not be deemed unoccupied for purposes of
this Section 6.22. In no event shall anything contained herein be deemed a
waiver by Landlord of its rights under Section 6.8 of this Lease upon the
occurrence of an Event of Default.

              6.23   MISCELLANEOUS.

              (a)    This Lease is declared to be a Texas contract, and all of
the terms hereof shall be construed according to the laws of the State of Texas.

              (b)    If Tenant is a corporation, partnership or other entity,
Tenant warrants that all consents or approvals required of third parties
(including but not limited to its Board of Directors or partners, to the extent
applicable) for the execution, delivery and performance of this Lease have been
obtained and that Tenant has the right and authority to enter into and perform
its covenants contained in this Lease. Likewise, if Landlord is a corporation,
partnership or other entity, Landlord warrants that all consents or approvals
required of third parties (including but not limited to its Board of Directors
or partners) for the execution, delivery and performance of this Lease have been
obtained and that Landlord has the right and authority to enter into and perform
its covenants contained in this Lease.

              (c)    Time is of the essence in this Lease.

              (d)    The terms and provisions of Exhibits A through D,
                                                 -------- -         -
inclusive, attached hereto are hereby made a part hereof for all purposes.

              (e)    Landlord and Tenant hereby waive trial by jury in any
action, proceeding or counterclaim brought by Landlord or Tenant against the
other or any matter whatsoever arising out of or in any way connected with this
Lease, the relationship of Landlord to Tenant, the use or occupancy of the
Leased Premises by Tenant or any person claiming through or under Tenant, any
claim of injury or damage, and any emergency or other statutory remedy;
provided, however, the foregoing waiver shall not apply to any action for
personal injury or property damage. If Landlord commences any summary or other
proceeding for nonpayment of Rent or the recovery of possession of the Leased
Premises, Tenant shall not interpose any counterclaim of whatever nature or
description in any such proceeding, unless the failure to raise the same would
constitute a waiver thereof.

              (f)    If any right granted in this Lease or other provisions of
this Lease is subject to the rule against perpetuities and the same shall not
occur or shall not have vested on the date that is twenty-one (21) years after
the death of the last to die of all now living descendants of Ronald W. Reagan,
George H. W. Bush and Gerald R. Ford, all of whom are former Presidents of the
United States of America, then such right or provisions shall terminate as of
such date.

              (g)    Except to the extent expressly provided to the contrary in
this Lease, all references to days in this Lease shall refer to calendar days.
All references to "Business Days" in this Lease shall refer to days that
                   -------- ----
national banks are open for business in Dallas, Texas.

              (h)    Tenant agrees not to record this Lease. Additionally,
Tenant shall not disclose the terms of this Lease to any third party except (i)
legal counsel to Tenant, (ii) any assignee of Tenant's interest in this Lease or
sublessee of Tenant, (iii) as required by Legal Requirements, or (iv) for
financial reporting purposes.

                                      -31-

<PAGE>

           (i)    This Lease may be executed in multiple counterparts, each of
which shall constitute an original instrument, but all of which shall constitute
one and the same agreement.

           (j)    This Lease shall not be deemed or construed to create or
establish any relationship (other than that of landlord and tenant) or
partnership or joint venture or similar relationship or agreement between
Landlord and Tenant hereunder.

           (k)    Submission of this instrument for examination or signature by
Tenant does not constitute a reservation of or an option for lease, and it is
not effective as a lease or otherwise until execution and delivery by both
Landlord and Tenant.

           (l)    The voluntary or other surrender or termination of this Lease
by Tenant and/or Landlord shall not work a merger, but, at Landlord's sole
option, shall either terminate all existing subleases or subtenancies or shall
operate as an assignment to Landlord of all such subleases or subtenancies.

           In Witness Whereof, the parties hereto have executed this Lease
as of the Effective Date.

                      LANDLORD:

                      DALLAS GALLERIA LIMITED,
                      a Texas limited partnership

                      By:      HDG, Limited, a Texas limited partnership
                               General Partner

                               By:      Hines Consolidated Investments, Inc.
                                        a Delaware corporation
                                        General Partner

                      TENANT:

                      AMTECH CORPORATION,
                      a Texas corporation,
                      doing business as
                      AMTC CORPORATION

                                      -32-

<PAGE>

                                    EXHIBIT A
                                    ---------

                               DESCRIPTION OF LAND
                               -------------------
                              (ONE GALLERIA TOWER)
                              --------------------

Being a tract of land situated in the Joe Badgley Survey, Abstract No. 76, City
Block Nos. 7001 and 7002, City of Dallas, Dallas County, Texas and being more
particularly described by metes and bounds as follows:

COMMENCING at a cross cut in concrete paving at the intersection of the South
line of Alpha Road (a 64' R.O.W.) and the West line of Noel Road (a 55' R.O.W.);
thence South 00 deg. 02 mm. 30 sec. East, a distance of 1061.25 feet along the
said West line of Noel Road to the POINT OF BEGINNING.

THENCE South 00 deg. 02 min. 30 sec. East, a distance of 197.31 feet along the
said West line of Noel Road to an iron pipe for angle point;

THENCE South 00 deg. 03 min. 41 sec. West, a distance of 68.69 feet along the
said West line of Noel Road to a point for corner;

THENCE North 89 deg. 59 mm. 44 sec. West, a distance of 256.95 feet to a point
for corner;

THENCE North 00 deg. 00 mm. 16 sec. East, a distance of 266.00 feet to a point
for corner;

THENCE South 89 deg. 59 mm. 44 sec. East, a distance of 256.85 feet to the POINT
OF BEGINNING; said point being in the West line of Noel Road and containing
1.5690 acres of land.

                                       A-1

<PAGE>

                                 G A L L E R I A

                              OFFICE TOWER LEVEL 15

                                    EXHIBIT B

                                  [FLOOR PLAN]

                          FLOOR PLAN OF LEASED PREMISES
                              DENOTED BY LINED AREA

<PAGE>

                                    EXHIBIT C
                                    ---------

                   SCHEDULE OF BUILDING STANDARD IMPROVEMENTS
                   ------------------------------------------

           "Building Standard Improvements" shall mean the following
            ------------------------------
           leasehold improvements:

Partitions              One (1) lineal foot of Building Standard type II
                        partition per twelve (12) square feet of Net Rentable
                        Area leased outside the core area in the case of a full
                        floor tenant and the Usable Area for a tenant on a
                        partial floor. All required partitions will be 5/8"
                        gypsum board, painted with Building Standard colors to
                        be provided by Landlord.

Ceilings                Fissured type mineral fiber acoustical ceiling tile, 12"
                        x 12" x 5/8" thick , mechanically suspended on a
                        concealed grid throughout the Leased Premises.

Lighting Fixtures       One (1) 2' x 4' recessed 3 tube fluorescent lighting
                        fixture with anodized aluminum 18 cell parabolic shaped
                        louvers, including initial lamping, per one hundred
                        (100) square feet of Usable Area.

Duplex Electric Outlets One (1) duplex wall-mounted convenience outlet for each
                        one hundred twenty (120) square feet of Usable Area.

Telephone Outlets       One (1) telephone wall outlet for each two hundred ten
                        (2 1 0) square feet of Usable Area.

Floor Covering          Building Standard commercial grade carpeting throughout
                        the Leased Premises.

Doors                   One ( 1) full height, solid core door with a metal frame
                        and lever handle latch set hardware per three hundred
                        (300) square feet of Usable Area.

Light Switches          One ( I ) single pole light switch for each three
                        hundred (300) square feet of Usable Area. Group
                        switching will be provided in open areas.

Window Coverings        One inch (1") horizontal aluminum slat mini-blinds for
                        exterior windows throughout the Leased Premises.

Fire Sprinkler Heads    Ceiling mounted fire sprinkler heads throughout the
                        Leased Premises to conform with light hazard occupancy
                        fire protection system design criteria up to one
                        sprinkler per 125 square feet of Usable Area.

                                                         C-1

<PAGE>

                                    EXHIBIT D
                                    ------- -

                           PROJECT RULES & REGULATIONS
                           ------- ----- - -----------

                   1.  Sidewalks, doorways, vestibules, halls, stairways,
elevator lobbies and other similar areas in the common areas of the Building
shall not be used for the storage of materials or disposal of trash, be
obstructed by tenants or Landlord, or be used by tenants or Landlord for any
purpose other than entrance to and exit from the tenant's leased areas and the
Building and for going from one part of the Building to another part of the
Building and/or Complex.

                   2.  Plumbing fixtures shall be used only for the purposes for
which they are designed, and no sweepings, rubbish, rags or other unsuitable
materials shall be disposed into them. Damage resulting to any such fixtures
proven to result from misuse by a tenant, and not by Landlord's cleaning
contractors responsible for cleaning the tenant's leased area and the Building,
shall be the liability of said tenant.

                   3.  Signs, advertisements, graphics or notices visible in or
from public corridors, any common area or public areas of the Building or from
outside the Building shall be subject to Landlord's (or Landlord's property
manager's) prior written approval. No part of the Complex may be defaced by
tenants.

                   4.  Significant movement in or out of the Building of
furniture, office equipment, or any other bulky or heavy materials shall be
restricted to such hours as Landlord (or Landlord's property manager) shall
reasonably designate. Landlord (or Landlord's property manager) will determine
the method and routing of the movement of said items so as to ensure the safety
of all persons and property concerned and Tenant shall be responsible for all
costs and expenses associated therewith. Advance written notice of intent to
move such items must be made to the Landlord (or Landlord's property manager) at
least twenty-four (24) hours before the time of such move. For nonsignificant
movement in or out of the Building of portable items which do not require use of
dollies or other moving equipment, notice to Landlord (or Landlord's property
manager) shall not be required.

                   5.  All deliveries (including messenger deliveries but
excluding deliveries of small hand carried parcels) to a tenant's leased
premises shall be made through the freight elevators. Passenger elevators are to
be used only for the movement of persons. Delivery vehicles shall be permitted
only in such areas as are designated by Landlord, from time to time, for
deliveries to the Building. Absolutely no carts or dollies are allowed through
the main entrances of the Building or on passenger elevators without the prior
written consent of Landlord (or Landlord's property manager). Tenants may obtain
the prior written consent of Landlord (or Landlord's property manager) for any
exception to the provisions of this Paragraph 5.

                   After-hours removal of hand carried items must be accompanied
by an "Equipment Removal Form" or "Property Pass" [to be provided by Landlord
(or Landlord's property manager)]. A letter signed by an authorized
representative of a tenant on such tenant's letterhead will also be acceptable.
A list of persons authorized to sign the Equipment Removal Form or Property Pass
(and any amendments thereto) will be furnished by each tenant to Landlord and
Landlord shall be entitled to rely thereon. Each tenant shall have the right to
amend such list from time to time upon written notice to Landlord (or Landlord's
property manager).

                   6.  Landlord (or Landlord's property manager) shall have the
authority to approve the proposed weight and location of any safes and heavy
furniture and equipment, which shall in all cases stand on supporting devices
approved by Landlord in order to distribute the weight.

                   7.  Corridor doors which lead to common areas of the Building
(other than doors opening into the elevator lobby on floors leased entirely to a
tenant) shall be kept closed at all times.

                                       D-1

<PAGE>

     8.  Each tenant shall cooperate with Landlord (and Landlord's property
manager) in keeping its leased area neat and clean. No tenant shall employ any
person for the purpose of such cleaning other than the Building's cleaning and
maintenance personnel without prior approval of Landlord (or Landlord's property
manager).

     9.  All freight elevator lobbies are to be kept neat and clean. The
disposal of trash or storage of materials in these areas is prohibited.

     10. No birds, fish or other animals shall be brought into or kept in, on or
about the Building (except for Seeing Eye dogs).

     11. Tenants shall not tamper with or attempt to adjust temperature control
thermostats in their leased premises. Landlord shall promptly respond to each
tenant's notices as to, and Landlord (or Landlord's property manager) shall
adjust thermostats as required to maintain, the Building standard temperature.
Each tenant shall use reasonable efforts to keep all window blinds down and
tilted at a 45 degree angle toward the street to help maintain comfortable room
temperatures and conserve energy.

     12. Each tenant will comply with all access control procedures necessary
both during business hours and after hours and on weekends. Landlord will
provide each tenant with prior notice of such access control procedures and any
changes thereto promptly.

     13. Tenants are requested to lock all office doors leading to corridors and
to turn out all lights at the close of their working day; provided, however,
that no tenant shall be responsible to ensure that Landlord's cleaning
contractor locks doors and turns out lights after cleaning the tenant's leased
premises.

     14. All requests for overtime air conditioning or heating must be submitted
in writing to Landlord (or Landlord's property manager) by an authorized
representative of the tenant. A list of persons authorized to request such
overtime services (and any amendments thereto) will be furnished by the tenant
to Landlord and Landlord shall be entitled to rely thereon. Any such request
must be made by 2:00 p.m. on the day desired for weekday requests, by 2:00 p.m.
Friday for weekend requests and by 2:00 p.m. on the preceding Business Day for
holiday requests. Requests made after that time may result in an additional
charge to such tenant, if acted upon by Landlord, but Landlord is in no event
obligated to act on untimely requests.

     15. No flammable or explosive fluids or materials shall be kept or used
within the Building except in areas approved by Landlord, and each tenant shall
comply with all applicable building and fire codes relating thereto.

     16. Tenants may not make any modifications, alterations, additions or
repairs to their leased premises and may not install any furniture, fixtures or
equipment in their leased premises which is in violation of any applicable
building and/or fire code governing their leased premises or the Project. The
tenant must obtain prior approval from Landlord (or Landlord's property manager)
of any such alterations, modifications and additions and shall deliver "as
built" plans therefor to Landlord (or Landlord's property manager), upon
completion, except as otherwise permitted in the tenant's lease. Such
alterations include, but are not limited to, any communication equipment and
associated wiring which must meet fire code. The Contractor conducting the
modifications and additions must be a licensed contractor, is subject to all
rules and regulations of Landlord (and Landlord's property manager) while
performing work in the Building and must obtain all necessary permits and
approvals prior to commencing the modifications and additions.

     17. No vending machines of any type shall be allowed in tenant space
without the prior written consent of Landlord (or Landlord's property manager).

                                       D-2

<PAGE>

                   18. All locks for doors in each tenant's leased areas shall
be Building Standard except as otherwise permitted by Landlord and no tenant
shall place any additional lock or locks on any door in its leased area without
Landlord's (or Landlord's property manager's) written consent except as
otherwise permitted in such tenant's lease. All requests for duplicate keys
shall be made to Landlord (or Landlord's property manager).

                   19. No tenant shall interfere in any way with other tenants'
(or their visitors') quiet enjoyment of their leased premises.

                   20. Landlord (or Landlord's property manager) will not be
liable or responsible for lost or stolen money, jewelry or other personal
property from any tenant's leased area or public areas of the Building or
Project.

                   21. No machinery of any kind other than normal office
equipment shall be operated by any tenant in its leased area without the prior
written consent of Landlord (or Landlord's property manager).

                   22. Canvassing, peddling, soliciting and distribution of hand
bills in the Building (except for activities within a tenant's leased premises
which involve only such tenant's employees) is prohibited. Each tenant is
requested to notify Landlord (or Landlord's property manager) if such activities
occur.

                   23. A "Tenant Contractor Entrance Authorization" form [to be
supplied by Landlord (or Landlord's property manager)] will be required for the
following:

                       A.  Access to Building  mechanical, telephone or
          electrical rooms (e.g., Southwestern Bell Telephone employees).

                       B.  After-hours freight elevator use.

                       C.  After-hours building access by tenant's contractors.
          Please note that the tenant will be responsible for contacting
          Landlord's property manager in advance for clearance of such tenant
          contractors.

                   All tenants will refer all contractors, contractors'
representatives and installation technicians tendering any service to them to
Landlord for Landlord's supervision, approval and control before the performance
of any contractual services. This provision shall apply to all work performed in
the Building (other than work under contract for installation or maintenance of
security equipment or banking equipment), including, but not limited to,
installations of telephones. telegraph equipment, electrical devices and
attachments, and any and all installations of every nature affecting floors,
walls, woodwork, trim, windows, ceilings, equipment and any other physical
portion of the Building.

                   24. Smoking is not permitted in the restrooms, stairwells,
elevators, public lobbies or public corridors.

                   25. Each tenant and their contractors are responsible for
removal of trash resulting from large deliveries or move-ins. Such trash must be
removed from the Building and Building facilities may not be used for dumping.
If such trash is not promptly removed, Landlord (or Landlord's property manager)
may cause such trash to be removed at the tenant's sole cost and expense plus a
reasonable additional charge to be determined by Landlord to cover Landlord's
administrative costs in connection with such removal.

                   26. Tenants may not install, leave or store equipment,
supplies, furniture or trash in the common areas of the Building (i.e., outside
their leased premises).

                   27. Each tenant shall provide Landlord's property manager
with names and telephone numbers of individuals who should be contacted in an
emergency.

                                       D-3

<PAGE>

     28. Tenants shall comply with the Building life safety program established
by Landlord (or by Landlord's property manager), including without limitation
fire drills, training programs and fire warden staffing procedures, and shall
exercise all reasonable efforts to cause all tenant employees, invitees and
guests to comply with such program.

     29. To insure orderly operation of the Building, no ice, mineral or other
water, towels, newspapers, etc., shall be delivered to any leased area except by
persons appointed or approved by Landlord in writing.

     30. Should a tenant require telegraphic, telephonic, annunciator or other
communication service, Landlord will direct the electricians where and how wires
are to be introduced and placed and none shall be introduced or placed except as
Landlord shall approve. Electric current shall not be used for space heaters,
cooking or heating devices or similar appliances without Landlord's prior
written permission.

     31. Nothing shall be swept or thrown into the corridors, halls, elevator
shafts or stairways.

     32. No portion of any tenant's leased area shall at any time be used or
occupied as sleeping or lodging quarters, nor shall personnel occupancy loads
exceed limits reasonably established by Landlord for the Building.

     33. The carrying of firearms of any kind in any leased premises, the
building in which such premises are situated, any related garage, or any related
complex of buildings of which the foregoing are a part, or any sidewalks,
drives, or other common areas related to any of the foregoing, is prohibited
except in the case of unconcealed firearms carried by licensed security
personnel hired or contracted for by tenants for security of their premises as
permitted by such tenants' leases or otherwise consented to by Landlord in
writing.

                                       D-4

<PAGE>

                                    EXHIBIT E
                                    ---------

                            JANITORIAL SPECIFICATIONS
                            ---------- --------------

A. OFFICE AREAS
   ------ -----

   1.     Empty, clean and damp dust all waste receptacles and remove waste
          paper and rubbish from the premises nightly; wash receptacles as
          necessary.

          Empty and clean all ash trays, screen all sand urns nightly and supply
          and replace sand as necessary.

   2.     Vacuum all rugs and carpeted areas in offices, lobbies and corridors
          nightly.

   3.     Hand dust and wipe clean with damp or treated cloth all office
          furniture, files, fixtures, paneling, window sills and all other
          horizontal surfaces nightly; wash window sills when necessary.

   4.     Damp wipe and polish all glass furniture tops nightly.

   5.     Remove all finger marks and smudges from vertical surfaces,
          including doors, door frames, around light switches, private
          entrance glass and partitions nightly.

   6.     Wash clean all water coolers nightly.

   7.     Sweep all stairways nightly, vacuum if carpeted.

   8.     Monitor all stairwells throughout the entire building daily and keep
          in clean condition.

   9.     Damp mop spillage in office and public areas as required.

   10.    Damp dust all telephones as necessary.

B. WASH ROOMS
   ---- -----

   1.      Mop, rinse and dry floors nightly.

   2.      Scrub floors as necessary.

   3.      Clean all mirrors, bright work and enameled surfaces nightly.

   4.      Wash and disinfect all basins, urinals and bowls nightly, using
           non-abrasive cleaners to remove stains and clean undersides of rim of
           urinals and bowls.

   5.      Wash both sides of all toilet seats with soap and water and disinfect
           nightly.

   6.      Damp wipe nightly, wash all partitions, tile walls and outside
           surface of all dispensers and receptacles.

<PAGE>

     7.   Empty and sanitize all receptacles and sanitary disposals nightly;
          thoroughly clean and wash at least once per week.

     8.   Fill toilet tissue, soap, towel and sanitary napkins dispensers
          nightly.

     9.   Clean flushometers, piping, toilet seat hinges and other metal work
          nightly.

     10.  Wash and polish all walls, partitions, tile walls and enamel surfaces
          from trim to floor monthly.

     11.  Apply finish to tile floor when necessary as instructed by the Project
          manager.

     12.  Vacuum all louvers, ventilating grills, and dust light fixtures
          monthly.
          NOTE: It is the intention to keep the washrooms thoroughly cleaned and
          not to use a disinfectant or deodorant to kill odor. If a disinfectant
          ---
          is necessary, an odorless product will be used with Landlord's
          permission.

C.   FLOORS
     ------

     1.   Ceramic tile, marble and terrazzo floors to be swept and buffed
          nightly and washed or scrubbed as necessary.

     2.   Vinyl asbestos, asphalt, vinyl, rubber or other composition floors and
          bases to be swept nightly; such floors in public areas on multiple
          tenancy floors to be waxed and buffed as needed.

     3.   Tile floors in office areas will be waxed and buffed monthly.

     4.   All floors stripped and rewaxed as necessary.

     5.   All carpeted areas and rugs to be vacuumed clean nightly.

     6.   Carpet shampooing will be performed at Tenant's request and billed by
          Landlord.

D.   GLASS
     -----

     1.   Clean glass entrance doors and adjacent glass panels nightly.

E.   HIGH DUSTING (Quarterly)
     ---- -------

     1.   Dust and wipe clean all closet shelving when empty and carpet sweep or
          dry mop all floors in closets if such are empty.

     2.   Dust all picture frames, charts, graphs and similar wall hangings.

     3.   Dust clean all vertical surfaces such as walls, partitions, doors,
          door backs and other surfaces above shoulder height.

     4.   Damp dust all ceiling air conditioning diffusers, wall grilles,
          registers and other ventilating louvers.

     5.   Dust the exterior surfaces of lighting fixtures, including glass and
          plastic enclosures.

<PAGE>

F.   DAY SERVICE
     -----------

     1.   At least once, and more as deemed necessary during the day, check
          men's washrooms for toilet tissue replacements.

     2.   At least once, and more as deemed necessary during the day, check
          ladies' washrooms and toilet tissue and sanitary napkin replacements.

     3.   Supply toilet tissue, soap and towels in men's and ladies' washrooms
          and sanitary napkins in ladies' washrooms.

     4.   As needed, vacuuming of elevator cabs will be performed.

     5.   There will be a surveillance of public areas to ensure cleanliness.

     6.   Clean ash urns as necessary in elevator lobbies.

     7.   Clean building glass entrance doors and panels as needed.

G.   GENERAL
     -------

     1.   Wipe all interior metal window frames, mullions, and other unpainted
          interior metal surfaces of the perimeter walls of the building each
          time the interior of the windows is washed (as requested by the
          Project manager).

     2.   Keep janitorial closets in a clean, neat and orderly condition.

     3.   Wipe clean and polish all metal hardware fixtures and other bright
          work nightly.

     4.   Dust and/or wash all directory boards as required, remove fingerprints
          and smudges nightly.

     5.   Maintain building lobby, corridors and other public areas in a clean
          condition.

     6.   Dust fire extinguishers and cabinets nightly (interior and exterior);
          wash as necessary.

     7.   All baseboards (resilient flooring and carpeting areas) will be washed
          and wiped clean as necessary.

     8.   Vacuum entrance mats nightly.

     9.   Hose and scrub plaza area and sidewalks as necessary.

     10.  Perform special cleaning needs of individual tenants as authorized and
          directed by the Project manager.

     11.  Properly maintain exterior of building at ground level by ensuring
          that curtain wall, glass, marble, etc., is kept in a clean condition.
          Exterior stainless steel is to be cleaned or polished weekly.

     12.  Polish standpipes and sprinkler Siamese connections as necessary.
          NOTE: Upon completion of nightly duties, floor supervisors will ensure
          that all vacant offices have been cleaned and left in a neat and
          orderly condition, all lights have been turned off and all exterior
          doors locked.<PAGE>
                                                                     Exhibit 4.9

                         CELLSTAR CORPORATION, as Issuer

                                       and

                        The Bank of New York, as Trustee

                              ____________________

                                    INDENTURE

                          Dated as of February 20, 2002

                              ____________________

                                   $12,374,000

                          12% Senior Subordinated Notes
                              Due January 15, 2007

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                       Page No.
                                                                       --------
<S>                                                                    <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE ................         6

  Section 1.01 Definitions ......................... ................         6
               -----------
  Section 1.02 Incorporation by Reference of TIA ....................        16
               ---------------------------------
  Section 1.03 Rules of Construction ................................        16
               ---------------------

ARTICLE II THE NOTES ................................................        17

  Section 2.01 Form and Dating ......................................        17
               ---------------
  Section 2.02 Execution and Authentication .........................        17
               ----------------------------
  Section 2.03 Registrar and Paying Agent ...........................        18
               --------------------------
  Section 2.04 Paying Agent To Hold Assets in Trust .................        19
               ------------------------------------
  Section 2.05 Security Holder Lists ...............................         19
               ----------------------
  Section 2.06 Transfer and Exchange ................................        20
               ---------------------
  Section 2.07 Replacement Notes ....................................        20
               -----------------
  Section 2.08 Outstanding Notes ....................................        21
               -----------------
  Section 2.09 Treasury Notes .......................................        21
               --------------
  Section 2.10 Temporary Notes ......................................        21
               ---------------
  Section 2.11 Cancellation .........................................        22
               ------------
  Section 2.12 Defaulted Interest ...................................        22
               ------------------
  Section 2.13 Deposit of Monies ....................................        22
               -----------------
  Section 2.14 CUSIP Number .........................................        22
               ------------
  Section 2.15 Book Entry Provisions for Global Note ................        23
               -------------------------------------

ARTICLE III REDEMPTION OF NOTES .....................................        24

  Section 3.01 Redemption Price .....................................        24
               ----------------
  Section 3.02 Notice of Redemption; Selection of Notes .............        24
               ----------------------------------------
  Section 3.03 Payment of Notes Called for Redemption ...............        25
               --------------------------------------
  Section 3.04 Purchase of Notes Upon A Change of Control ...........        25
               ------------------------------------------

ARTICLE IV COVENANTS ................................................        27

  Section 4.01 Payment of Notes .....................................        27
               ----------------
  Section 4.02 Maintenance of Office or Agency ......................        27
               -------------------------------
  Section 4.03 Corporate Existence ..................................        28
               -------------------
  Section 4.04 Payment of Taxes and Other Claims ....................        28
               ---------------------------------
  Section 4.05 Maintenance of Properties and Insurance ..............        28
               ---------------------------------------
  Section 4.06 Compliance Certificates; Notice of Default ...........        29
               ------------------------------------------
  Section 4.07 Compliance with Laws .................................        30
               --------------------
  Section 4.08 SEC Reports and Other Information ....................        30
               ---------------------------------
  Section 4.09 Limitation on Additional Indebtedness ................        30
               -------------------------------------
  Section 4.10 Limitation on Investments, Loans and Advances ........        31
               ---------------------------------------------
  Section 4.11 Limitation on Restricted Payments ....................        32
               ---------------------------------
  Section 4.12 Limitation on Liens ..................................        33
               -------------------
</TABLE>

                                        2

<PAGE>

<TABLE>
<S>                                                                                                                <C>
   Section 4.13   Limitation on Sale-Leaseback Transactions......................................................  33
                  -----------------------------------------
   Section 4.14   Limitation on Liquidations, Dissolutions, Mergers and Consolidation............................  34
                  -------------------------------------------------------------------
   Section 4.15   Disposition of Proceeds of Asset Sales.........................................................  34
                  --------------------------------------
   Section 4.16   Limitation on Transactions with Affiliates.....................................................  35
                  ------------------------------------------

ARTICLE V SUCCESSOR CORPORATION..................................................................................  35

   Section 5.01   Consolidation, Merger, Conveyance, Transfer or Lease...........................................  35
                  ----------------------------------------------------
   Section 5.02   Successor Entity Substituted...................................................................  36
                  ----------------------------

ARTICLE VI DEFAULT AND REMEDIES..................................................................................  36

   Section 6.01   Events of Default..............................................................................  36
                  -----------------
   Section 6.02   Acceleration...................................................................................  37
                  ------------
   Section 6.03   Other Remedies.................................................................................  38
                  --------------
   Section 6.04   Waiver of Past Defaults........................................................................  38
                  -----------------------
   Section 6.05   Control by Required Holders....................................................................  38
                  ---------------------------
   Section 6.06   Limitation on Suits............................................................................  38
                  -------------------
   Section 6.07   Rights of Holders To Receive Payment...........................................................  39
                  ------------------------------------
   Section 6.08   Collection Suit by Trustee.....................................................................  39
                  --------------------------
   Section 6.09   Trustee May File Proofs of Claim...............................................................  39
                  --------------------------------
   Section 6.10   Priorities.....................................................................................  40
                  ----------
   Section 6.11   Undertaking for Costs..........................................................................  40
                  ---------------------
   Section 6.12   Rights and Remedies Cumulative.................................................................  40
                  ------------------------------
   Section 6.13   Delay or Omission Not Waiver...................................................................  40
                  ----------------------------

ARTICLE VII TRUSTEE..............................................................................................  41

   Section 7.01   Duties of Trustee..............................................................................  41
                  -----------------
   Section 7.02   Rights of Trustee..............................................................................  42
                  -----------------
   Section 7.03   Individual Rights of Trustee...................................................................  42
                  ----------------------------
   Section 7.04   Trustee's Disclaimer...........................................................................  43
                  --------------------
   Section 7.05   Notice of Default..............................................................................  43
                  -----------------
   Section 7.06   Reports by Trustee to Holders..................................................................  43
                  -----------------------------
   Section 7.07   Compensation and Indemnity.....................................................................  43
                  --------------------------
   Section 7.08   Replacement of Trustee.........................................................................  44
                  ----------------------
   Section 7.09   Successor Trustee by Merger, Etc...............................................................  45
                  --------------------------------
   Section 7.10   Eligibility; Disqualification..................................................................  45
                  -----------------------------
   Section 7.11   Preferential Collection of Claims Against Company..............................................  45
                  -------------------------------------------------

ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE..................................................................  46

   Section 8.01   Discharge of Indenture.........................................................................  46
                  ----------------------
   Section 8.02   Legal Defeasance And Covenant Defeasance.......................................................  47
                  ----------------------------------------
   Section 8.03   Application of Trust Money.....................................................................  49
                  --------------------------
   Section 8.04   Repayment to the Company.......................................................................  49
                  ------------------------
   Section 8.05   Reinstatement..................................................................................  50
                  -------------
   Section 8.06   Acknowledgment of Discharge by Trustee.........................................................  50
                  --------------------------------------

ARTICLE IX AMENDMENTS, SUPPLEMENTS AND WAIVERS...................................................................  50
</TABLE>

                                        3

<PAGE>
<TABLE>
<S>                                                                                                                 <C>
   Section 9.01      Without Consent of Holders..................................................................   50
                     --------------------------
   Section 9.02      With Consent of Holders.....................................................................   51
                     -----------------------
   Section 9.03      Compliance with TIA.........................................................................   52
                     -------------------
   Section 9.04      Revocation and Effect of Consents...........................................................   52
                     ---------------------------------
   Section 9.05      Notation on or Exchange of Notes............................................................   53
                     --------------------------------
   Section 9.06      Trustee To Sign Amendments, Etc.............................................................   53
                     -------------------------------

ARTICLE X SUBORDINATION..........................................................................................   53

   Section 10.01     Notes Subordinated to Senior Indebtedness...................................................   53
                     -----------------------------------------
   Section 10.02     Suspension of Payment on Notes in Certain Events............................................   54
                     ------------------------------------------------
   Section 10.03     Notes Subordinated to Prior Payment of All Senior Indebtedness on Dissolution, Liquidation
                     ------------------------------------------------------------------------------------------
   or Reorganization of Company..................................................................................   55
   ----------------------------
   Section 10.04     Holders to be Subrogated to Rights of Holders of Senior Indebtedness........................   56
                     --------------------------------------------------------------------
   Section 10.05     Obligations of the Company Unconditional....................................................   56
                     ----------------------------------------
   Section 10.06     Trustee Entitled to Assume Payments Not Prohibited in Absence of Notice.....................   57
                     -----------------------------------------------------------------------
   Section 10.07     Application by Trustee of Assets Deposited with It..........................................   57
                     --------------------------------------------------
   Section 10.08     No Waiver of Subordination Provisions.......................................................   58
                     -------------------------------------
   Section 10.09     Holders Authorize Trustee to Effectuate Subordination of Notes..............................   58
                     --------------------------------------------------------------
   Section 10.10     Right of Trustee to Hold Senior Indebtedness................................................   58
                     --------------------------------------------
   Section 10.11     This Article X Not To Prevent Events of Default.............................................   59
                     -----------------------------------------------
   Section 10.12     No Fiduciary Duty of Trustee to Holders of Senior Indebtedness..............................   59
                     --------------------------------------------------------------
   Section 10.13     Relationship to Senior Subordinated Notes...................................................   59
                     -----------------------------------------

ARTICLE XI MISCELLANEOUS.........................................................................................   59

   Section 11.01     TIA Controls................................................................................   59
                     ------------
   Section 11.02     Notices.....................................................................................   60
                     -------
   Section 11.03     Communications by Holders with Other Holders................................................   61
                     --------------------------------------------
   Section 11.04     Certificate and Opinion as to Conditions Precedent..........................................   61
                     --------------------------------------------------
   Section 11.05     Statements Required in Certificate or Opinion...............................................   61
                     ---------------------------------------------
   Section 11.06     Rules by Trustee, Paying Agent, Registrar...................................................   61
                     -----------------------------------------
   Section 11.07     Legal Holidays..............................................................................   62
                     --------------
   Section 11.08     Governing Law...............................................................................   62
                     -------------
   Section 11.09     No Adverse Interpretation of Other Agreements...............................................   62
                     ---------------------------------------------
   Section 11.10     No Recourse Against Others..................................................................   62
                     --------------------------
   Section 11.11     Successors..................................................................................   62
                     ----------
   Section 11.12     Counterparts................................................................................   63
                     ------------
   Section 11.13     Severability................................................................................   63
                     ------------
   Section 11.14     Table of Contents, Headings. Etc............................................................   63
                     --------------------------------
</TABLE>
                                        4

<PAGE>

                              CROSS REFERENCE TABLE

     Reconciliation and tie between the Trust Indenture Act of 1939 and this
Indenture, dated February 20, 2002.

<TABLE>
<CAPTION>
TIA Section                                                    Indenture Section

<S>                                          <C>
Section 310 (a)(1) .........................................................7.10
            (a)(2) .........................................................7.10
            (a)(3) ...............................................Not Applicable
            (a)(4) ...............................................Not Applicable
            (a)(5) .........................................................7.10
            (b) ............................................................7.10
            (c) ..................................................Not Applicable
Section 311 (a) ............................................................7.11
            (b) ............................................................7.11
            (c) ..................................................Not Applicable
Section 312 (a) ............................................................2.05
            (b) ...........................................................11.03
            (c) ...........................................................11.03
Section 313 (a) ............................................................7.06
            (b) ............................................................7.06
            (c) ............................................................7.06
            (d) ............................................................7.06
Section 314 (a) ............................................................4.08
            (c)(1) ..........................2.02, 5.01, 8.01, 8.02, 8.06, 11.04
            (c)(2) ......................................5.01, 8.01, 8.02, 11.04
            (c)(3) .........................................................8.02
            (d) ..................................................Not Applicable
            (e) ...........................................................11.05
            (f) ..................................................Not Applicable
Section 315 (a) ............................................................7.01
            (b) ............................................................7.05
            (c) ............................................................7.01
            (d) ............................................................7.01
            (e) ............................................................6.11
Section 316 (a)(last sentence) .............................................2.09
            (a)(1)(A) ......................................................6.05
            (a)(1)(B) ......................................................6.04
            (a)(2) ...............................................Not Applicable
            (b) ............................................................9.04
Section 3.17(a)(1) .........................................................6.08
            (a)(2) .........................................................6.09
            (b) ............................................................2.04
Section 3.18(a) ...........................................................11.01
</TABLE>

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

                                       5

<PAGE>

     INDENTURE, dated as of February 20, 2002, between CellStar Corporation, a
Delaware corporation (the "Company"), and The Bank of New York, a New York
banking corporation, as trustee (the "Trustee").

     Each party hereto agrees as follows for the benefit of each other party and
for the equal and ratable benefit of the Holders (as defined below) of the
Company's 12% Senior Subordinated Notes due 2007:

                                   ARTICLE I
                   DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Definitions.
                  -----------

     "Acquired Indebtedness" means with respect to any person, Indebtedness of
      ---------------------
another person existing at the time such other Person becomes a Subsidiary of
such person or is merged with or into such person or a Subsidiary of such
Person, and not incurred in connection with, or in anticipation of, such other
person becoming a Subsidiary of such Person or the merger with or into such
other Person.

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

     "Affiliate Transaction" means the conduct of business or any transactions
      ---------------------
or series of transactions by the Company or any of its Subsidiaries with or for
the benefit of any of their respective Affiliates

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

     "Agent Members" has the meaning provided in Section 2.15.
      -------------

     "Asset Sale" means any direct or indirect disposition to a Person other
      ----------
than the Company or any of its Subsidiaries of any property or asset of the
Company or any of its Subsidiaries, other than inventory in the ordinary course
of business and other than such isolated transactions which do not exceed Five
Million Dollars ($5,000,000) individually. For the purposes of this definition,
the term "Asset Sale" shall not include sales of receivables not a part of a
sale of the business from which they arose or any disposition of properties and
assets of the Company or any of its Subsidiaries that is governed under and
complies with Section 4.14 or any sale of the Company's capital stock

     "Attributable Debt" means leasehold and other obligations incurred in
      -----------------
connection with Sale-Leaseback Transactions.

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

                                       6

<PAGE>

     "Blockage Period" has the meaning provided in Section 10.02 hereof.
      ---------------

     "Board of Directors" means, with respect to any Person, the board of
      ------------------
directors or other applicable governing body of such Person or any committee of
the board of directors or of such other governing body of such Person duly
authorized, with respect to any particular matter, to exercise the power of the
board of directors or other applicable governing body of such Person.

     "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.

     "Book-Entry Note" means a Note represented by a Global Note and registered
      ---------------
in the name of the nominee of the Depository.

     "Business Day" means any day that is not a Legal Holiday.
      ------------

     "Capital Lease" means all leases which have been or should be capitalized
      -------------
in accordance with GAAP as in effect from time to time, including Statement No.
13 of the Financial Accounting Standards Board and any successor thereof.

     "Capitalized Lease Obligation" means any obligation to pay rent or other
      ----------------------------
amounts under a lease of (or other agreement conveying the right to use) any
property (whether real, personal or mixed) that is required to be classified and
accounted for as a Capital Lease and, for the purpose of this Indenture, the
amount of such obligation at any date shall be the capitalized amount thereof at
such date, determined in accordance with GAAP.

     "Cash Equivalents" means at any time (a) any evidence of Indebtedness with
      ----------------
a maturity of one year or less issued or directly and fully guaranteed or
insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is
pledged in support thereof); (b) certificates of deposit or acceptances with a
maturity of one year or less of any financial institution that is a member of
the Federal Reserve System having combined capital and surplus and undivided
profits of not less than Five Hundred Million Dollars ($500,000,000); (c)
commercial paper issued by a corporation (except an Affiliate of the Company)
organized under the laws of any state of the United States or the District of
Columbia and having one of the two highest ratings from Standard & Poor's
Corporation or Moody's Investors Service, Inc.; (d) repurchase agreements and
reverse repurchase agreements relating to marketable direct obligations issued
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; provided,
                                                                 --------
however, that the terms of such agreements comply with the guidelines set forth
-------
in the Federal Financial Agreements of Depository Institutions with Securities
Dealers and Others, as adopted by the Comptroller of the Currency; (e) money
market funds investing principally in the types of securities described in
clauses (a), (b) or (c) above; (f) investments in eurodollars placed through
any financial institution having combined capital surplus and undivided profits
of not less than $100,000,000; and (g) "overnight investments" or similar
short-term obligations issued by any commercial bank located in the U.S. in
those areas where the Company or its Subsidiaries conduct their business whose
deposits are insured by the Federal Deposit Insurance Corporation.

     "Change of Control" means an event or series of events in which (a) all or
      -----------------
substantially all of the Company's assets are sold, leased, exchanged or
otherwise transferred to any Person or

                                        7

<PAGE>

group of Persons acting in concert, other than any Affiliates of the Company or
a trustee or other fiduciary holding securities under any of the Company's
employee benefit plans and acting in such capacity, (b) the Company is merged or
consolidated with or into another corporation with the effect that the equity
holders of the Company immediately prior to such merger of consolidation hold
less than fifty percent (50%) of the combined voting power of the then
outstanding securities of the surviving corporation of such merger or the
corporation resulting from such consolidation ordinarily (and apart from rights
arising under special circumstances) having the right to vote in the election of
directors, (c) a majority of the Board of Directors shall be replaced, over a
two-year period, from the directors who constituted the Board of Directors at
the beginning of such period, and such replacement shall not have been approved
by a majority of the members of the Board of Directors as constituted at the
beginning of such period (including any new directors whose appointment,
nomination or election to the Board of Directors was approved by a majority of
the directors who were directors or whose appointment, nomination or election
was previously so approved and, (d) a Person or group of Persons acting in
concert, other than any Subsidiary of the Company or a trustee or other
fiduciary holding securities under any of the Company's employee benefit plans
and acting in such capacity, shall, as a result of a tender or exchange offer,
open market purchases, privately negotiated purchases or otherwise, have become
the, directly or indirectly, beneficial owner (within the meaning of Rule 13d-3
under the Exchange Act) of the Company's securities representing fifty percent
(50%) or more of the combined voting power of the Company's then outstanding
securities ordinarily (and apart from rights arising under special
circumstances) having the right to vote in the election of directors; provided,
that the conversion of any of the Company's Subordinated Convertible Note due
2002 shall not result in a Change of Control.

     "Change of Control Offer" has the meaning provided in Section 3.04.
      -----------------------

     "Change of Control Purchase Date" has the meaning provided in Section 3.04.
      -------------------------------

     "Change of Control Purchase Price" has the meaning provided for in Section
      --------------------------------
3.04.

     "Company" means the party named as such in this Indenture until a successor
      -------
replaces it pursuant to the terms and conditions of this Indenture and
thereafter means such successor.

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

     "Consolidated Net Income" means, for any period, the aggregate of the
      -----------------------
Company's and its Subsidiaries net income or loss for such period, on a
consolidated basis, determined in accordance with GAAP consistently applied,
provided, that (a) the net income of any Person in which the Company or any of
its Subsidiaries have a joint interest with a third party (which interest does
not cause the net income of such Person to be consolidated into the net income
of the Company in accordance with GAAP) shall be included only to the extent of
the amount of dividends or distributions paid to the Company or such Subsidiary,
(b) the net income of any of the Company's Subsidiaries that is subject to any
restriction or limitation on the payment of dividends or the making of other
distributions shall be excluded to the extent of such restriction or limitation,
(c) any net non-cash gain (but not loss) resulting from an Asset Sale by the
Company or any of its Subsidiaries other than in the ordinary course of business
shall be excluded and (d) extraordinary gains and losses (and any related tax
effects) and any one-time increase or decrease to net income which is required
to be recorded because of the adoption of new accounting policies, practices or
standards required by GAAP shall be excluded.

                                        8

<PAGE>

     "Consolidated Net Worth" means, with respect to any Person at any date, the
      ----------------------
consolidated equity represented by the shares of such Person's capital stock
(other than Disqualified Stock) at such date, as determined on a consolidated
basis in accordance with GAAP.

     "Corporate Trust Office" means the principal office of the Trustee at which
      ----------------------
at any time its corporate trust business shall be administered, which office at
the date hereof is located at 101 Barclay Street, Floor 21 West, New York, New
York 10286, Attention: Corporate Trust Department, or such other address as the
Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or
such other address as the successor Trustee may designate from time to time by
notice to the Holders and the Company).

     "Credit Agreement" means the Loan and Security Agreement, dated as of
      ----------------
September 28, 2001, entered into among the Company, certain of its subsidiaries
and Foothill, as agent, and the lenders party thereto, providing for working
capital and other financing, as the same may at any time be amended, amended and
restated, supplemented or otherwise modified, including any refinancing,
refunding, replacement or extension thereof which provides for working capital
and other financing, whether by the same or any other lender or group of
lenders.

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

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

     "Default Amount" shall have the meaning set forth in Section 6.02 hereof.
      --------------

     "Default Notice" has the meaning provided in Section 10.02 hereof.
      --------------

     "Depository" means, with respect to the Notes issuable or issued in one or
      ----------------
more Book-Entry Notes, the Person specified in Section 2.02 as the Depository
with respect to the Notes until the successor shall have been appointed and
becomes such pursuant to the applicable provisions of this Indenture, and,
thereafter, "Depository" shall mean or include such successor.
             ----------

     "Designated Senior Indebtedness" means Senior Indebtedness under or in
      ------------------------------
respect of the Company's revolving credit facility as the same and related
documents have been or may be amended, modified, renewed, extended, supplemented
or restated from time to time, in whole or in part (and without limitation as to
amount, terms, conditions, covenants and other provisions) and any agreements
hereafter entered into in renewal, extension, supplement, restatement,
replacement or other modification thereof, whether the Company is a borrower or
guarantor thereunder and whether with any agent, lender or group of lenders.

     "Disqualified Stock" means any of the Company's capital stock that is
      ------------------
required to be redeemed in whole or in part or has a sinking fund payment due
or, at the option of the holder of such capital stock, is required to be
repurchased in whole or in part on or prior to the maturity of the Notes.

     "EBITDA" means, for a period ending at the close of any fiscal quarter, the
      ------
sum of (a) Consolidated Net Income for such period, plus (b) to the extent
deducted in determining Consolidated Net Income, the sum of all expenses of the
Company and its Subsidiaries, on a consolidated basis, in accordance with GAAP
for such period in respect of (i) depreciation, (ii) amortization, including,
without limitation, amortization of capitalized debt issuance costs, (iii)
consolidated interest expense, (iv) U.S. federal, state and foreign income taxes
and (v) any other non-cash charges (including inventory write-downs and losses
from disposals of business operations) to the extent deducted from Consolidated
Net Income except for any non-cash charges that represent accruals of, or
reserves for, cash disbursements to be made in any future accounting period.
Notwithstanding the foregoing, the provision for taxes based on the income and
profits of, and the depreciation, amortization and other non-cash charges of any
of the Company's Subsidiaries shall be added to Consolidated Net Income to
compute EBITDA only to the extent (and in the same proportion) that the net
income of such Subsidiary was included in calculating the Consolidated Net
Income and only if a corresponding amount could, at the date of determination,
be paid as a dividend by such Subsidiary to the Company.

                                        9

<PAGE>

     "EBITDA Coverage Ratio" means the ratio of (a) EBITDA for the four fiscal
      ---------------------
quarters immediately preceding the determination date, to (b) consolidated cash
interest expense calculated in accordance with GAAP (including interest with
respect to capitalized lease obligations but excluding interest with respect to
Indebtedness of any of the Company's Subsidiaries that is subject to any
restriction or limitation on the payment of dividends), capitalized interest and
cash dividends paid on Disqualified Stock calculated on a pro forma basis for
such four fiscal quarters.

     "Event of Default" has the meaning provided in Section 6.01.
      ----------------

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

     "Foothill" means Foothill Capital Corporation.
      --------

     "GAAP" means generally accepted accounting principles in the United States
      ----
of America as in effect as of the date hereof and as such principles may be
amended from time to time, including those 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 applicable as of the date of determination.

     "Global Note" means a Note evidencing all or a part of the Notes to be
      -----------
issued as Book-Entry Notes, issued to the Depository in accordance with Section
2.02.

     "Holder" means the person in whose name a Note is registered on the
      ------
Registrar's books.

     "Indebtedness" means, with respect to any person, without duplication, (a)
      ------------

any liability, contingent or otherwise, of such Person (i) for borrowed money
(whether or not the recourse of the lender is to the whole of the Property of
such Person or only to a portion thereof), (ii) evidenced by bonds, notes,
debentures or similar instruments or representing the deferred and unpaid
balance of any part of the purchase price of Property or other assets or for the
cost of Property or other assets constructed or of improvements thereto
(including any obligation under or in connection with any letter of credit
related thereto), (iii) under or in connection with any letter of credit issued
for the account of such Person, and all drafts drawn, reimbursement obligations
or demands for payment thereunder, or (d) for the payment of money relating to
any Capitalized Lease Obligations; (b) any liability of others of the kind
described in the preceding clause (a) which the Person has guaranteed or which
is otherwise its legal liability; (c) any liability, contingent or otherwise,
secured by any Lien in respect of Property of such Person, whether or not the
obligations secured thereby shall have been assumed by or shall otherwise be
such Person's legal liability, provided, that, solely in the case of any
                               --------
Indebtedness of the type described in this clause (c), recourse for the
payment of which is limited to such Property, the amount of such Indebtedness
shall be deemed to be the lesser of the fair market value of such Property or
the amount of the obligation so secured; and (iv) any and all deferrals,
renewals, extensions and refundings of, or amendments, modifications or
supplements to, any liability of the kind described in any of the preceding
clauses (a), (b) and (c). The amount of Indebtedness of any Person at any
date shall be the outstanding balance at such date of all unconditional

                                       10

<PAGE>

obligations as described above and the maximum liability of such Person in
respect of any such contingent obligations at such date.

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

         "Interest Payment Date" means the stated maturity of an installment of
          ---------------------
interest on the Notes.

         "Investment" means any cash contributions, advances or loans to or
          ----------
investments in or purchases of capital stock or other securities of any Person.

         "Issue Date" means the date of first issuance of the Notes under this
          ----------
Indenture.

         "Legal Holiday" means, with respect to a particular place of payment, a
          -------------
Saturday, a Sunday or a day on which banking institutions in New York, New York
or at such place of payment are authorized or obligated by law, executive order
or governmental decree to be closed.

         "Lien" means any mortgage, lien, pledge, charge, security interest,
          ----
encumbrance, claim, hypothecation, assignment for security, deposit arrangement
or preference or other security agreement of any kind or nature whatsoever,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement and any lease
deemed to constitute a security interest). For purposes hereof, a Person shall
be deemed to own subject to a Lien any Property which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement.

         "Material Subsidiary" means, with respect to any person, any Subsidiary
          -------------------
of such person which would be a "significant subsidiary" pursuant to Article
1-02 of Regulation S-X of the Exchange Act.

         "Maturity Date" means January 15, 2007.
          -------------

         "Net Asset Sale Proceeds" means, with respect to any Asset Sale, the
          -----------------------
proceeds thereof 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 (except to the extent that such obligations with respect to
Indebtedness are financed or sold with recourse to the Company or any of its
Subsidiaries) net of (a) brokerage commissions and other reasonable fees and
expenses (including fees and expenses of counsel and investment bankers) related
to such Asset Sale; (b) provisions for all taxes payable as a result of such
Asset Sale; (c) payments made to retire Indebtedness secured by the assets
subject to such Asset Sale to the extent required pursuant to their terms of
such Indebtedness; and (d) appropriate amounts to be provided by the Company or
any of its Subsidiaries, 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 of its Subsidiaries, 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.

                                       11

<PAGE>

         "Net Proceeds" means (a) in the case of any sale of capital stock by
          ------------
the Company, the aggregate net proceeds received by the Company, after payment
of expenses, commissions and the like incurred in connection therewith, whether
such proceeds are in cash or in property (valued at the fair market value
thereof, as determined in good faith by the Board of Directors, at the time of
receipt) and (b) in the case of any exchange, exercise, conversion or surrender
of the Company's outstanding securities of any kind for or into shares of the
Company's capital stock which is not Disqualified Stock, the net book value of
such outstanding securities on the date of such exchange, exercise, conversion
or surrender (plus any additional amount required to be paid by the holder to
the Company upon such exchange, exercise, conversion or surrender, less any and
all payments made to the holders).

         "Notes" means, the Company's 12% Senior Subordinated Notes due 2007, as
          -----
amended or supplemented from time to time in accordance with the terms hereof,
that are issued pursuant to the terms and conditions of this Indenture.

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

         "Officers' Certificate" means, with respect to any Person, a
          ---------------------
certificate signed by two Officers (one of whom shall be the Chief Financial
Officer) or by an Officer and either an Assistant Treasurer or an Assistant
Secretary of such Person and otherwise complying with the requirements of
Sections 11.04 and 11.05.

         "Opinion of Counsel" means a written opinion from Haynes and Boone,
          ------------------
LLP, or in the event Haynes and Boone, LLP is no longer in existence, legal
counsel who is acceptable to the Trustee complying with the requirements of
Sections 11.04 and 11.05. Unless otherwise required by the TIA, the legal
counsel may be an employee of or counsel to the Company.

         "Paying Agent" has the meaning provided in Section 2.03.
          ------------

         "Permitted Liens" shall mean: (a) any lien existing as of and disclosed
          ---------------
on the Issue Date; (b) any lien on the Company's assets securing Indebtedness
under the Credit Agreement; (c) liens securing other Senior Indebtedness; (d)
any lien arising by reason of (i) any judgment, decree or order of any court, so
long as such lien is being contested in good faith and any appropriate legal
proceedings which may have been duly initiated for the review of such judgment,
decree or order shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired; (ii) taxes not
yet delinquent or which are being contested in good faith; (iii) security for
payment of

                                       12

<PAGE>

workers' compensation or other insurance; (iv) security for the performance of
tenders, contracts (other than contracts for the payment of money) or leases;
(v) deposits to secure public or statutory obligations, or in lieu of surety or
appeal bonds or to secure permitted contracts for the purchase or sale of any
currency entered into in the ordinary course of business; (vi) operation of law
in favor of carriers, warehousemen, landlords, mechanics, materialmen, laborers,
employees or suppliers, incurred in the ordinary course of business for sums
which are not yet delinquent or are being contested in good faith by
negotiations or by appropriate proceedings which suspend the collection thereof;
and (vii) security for surety or appeal bonds; (e) easements, rights-of-way,
zoning and similar covenants and restrictions and other similar encumbrances or
title defects which, in the aggregate, are not substantial in amount, and which
do not in any case materially detract from the value of the property subject
thereto or materially interfere with the ordinary conduct of the business of the
Company or any of its Subsidiaries; (f) leases and subleases of real property
which do not interfere with the ordinary conduct of the business of the Company
or any of its Subsidiaries, and which are made on customary and usual terms
applicable to similar properties; (g) liens with respect to any Acquired
Indebtedness, provided such liens do not extend to or cover any property or
assets of the Company or any of its Subsidiaries (other than the property or
assets so acquired); (h) liens securing Indebtedness which is incurred to
refinance Indebtedness which has been secured by a lien permitted under this
Indenture and is permitted to be refinanced under this Indenture, provided that
such liens do not extend to or cover any property or assets of the Company or
any of its Subsidiaries not securing the Indebtedness so refinanced; (i) liens
securing capitalized lease obligations, purchase money mortgages or pledges or
other purchase money liens upon any property acquired by the Company or any of
its Subsidiaries after the issuance of the Notes which are acquired or held by
such entity in the ordinary course of business and are securing solely the
purchase price or lease rental of such property or are Indebtedness incurred
solely for the purpose of financing the acquisition or lease of such property
(but only to the extent the Indebtedness secured by such liens shall otherwise
be permitted under the covenants set forth herein); (j) any interest or title of
a lessor or sublessor, or any lien in favor of a landlord, arising under any
real or personal property lease under which the Company or any of its
Subsidiaries are a lessee, sublessee or subtenant (other than any interest or
title and or any lien securing any capitalized lease obligation); and (xi) other
liens securing Indebtedness if the Indebtedness secured by the lien, plus all
other Indebtedness secured by liens (excluding Indebtedness secured by liens
permitted by (a) through (c) above) at the time of determination does not exceed
$20,000,000. Attributable Debt in connection with Sale-Leaseback Transactions
must be included in the determination and treated as Indebtedness secured by a
lien not otherwise permitted by clauses (a) through (h) above.

         "Permitted Subsidiary Transaction" means a transaction between the
          --------------------------------
Company and a Subsidiary of the Company or among Subsidiaries of the Company,
each such Subsidiary in either case not being encumbered or restricted as to its
ability to (a) pay dividends, in cash or otherwise, or make any other
distributions on its Capital Stock or any other interest or participation in, or
measured by, its profits owned by, or pay any Indebtedness owed to, the Company
or any of its Subsidiaries, (b) make loans or advances to the Company or any of
its Subsidiaries or (c) transfer any of its properties or assets to the Company
or any of its Subsidiaries.

         "Person" means any individual, corporation, partnership, joint venture,
          ------
association, joint-stock company, trust, unincorporated organization or any
other entity or organization including a government or political subdivision or
any agency or instrumentality thereof.

         "Physical Notes" has the meaning set forth in Section 2.02.
          --------------

         "Principal" of any Indebtedness (including the Notes) means the
          ---------
principal of such Indebtedness plus the premium, if any, on such Indebtedness.

         "Property" or "property" means any assets or property of any kind or
          --------      --------
nature whatsoever, real, personal or mixed (including fixtures), whether
tangible or intangible.

                                       13

<PAGE>

         "Record Date" means the Record Dates specified in the Notes; provided
          -----------                                                 --------
that if any such date is a Legal Holiday, the Record Date shall be the first day
immediately preceding such specified day that is not a Legal Holiday.

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

         "Redemption Price" has the meaning provided in Section 3.01 hereof.
          ----------------

         "Registrar" has the meaning provided in Section 2.03.
          ---------

         "Representative" means the trustee, agent or representative in respect
          --------------
of any Senior Indebtedness and shall mean (i) with respect to Indebtedness under

the Credit Agreement Foothill in such capacity, until such time as it is no
longer the representative pursuant to the terms of the Credit Agreement and (ii)
with respect to all other Senior Indebtedness, the representative for such
Senior Indebtedness; provided, however, that if, and for so long as, any Senior
                     --------  -------
Indebtedness lacks such a representative, then the Representative for such
Senior Indebtedness shall at all times constitute the holders of a majority in
outstanding principal amount of such Senior Indebtedness in respect of any
Senior Indebtedness.

         "Required Filing Dates" has the meaning provided in Section 4.08
          ---------------------
hereof.

         "Required Holders" means Holders holding at least a majority of the
          ----------------
aggregate principal amount of the outstanding Notes.

         "Restricted Payment" means (a) the declaration or payment of any
          ------------------
dividend or any other distribution on the Company's capital stock or of any of
its Subsidiaries or any payment made to the direct or indirect holders (in their
capacities as such) of the Company's capital stock or of any of its Subsidiaries
(other than (i) dividends or distributions payable solely in capital stock
(other than Disqualified Stock) or in options, warrants or other rights to
purchase capital stock (other than Disqualified Stock), and (ii) in the case of
the Company's Subsidiaries, dividends or distributions payable to the Company or
to any of its Subsidiaries); (b) the purchase, redemption or other acquisition
or retirement for value of any of the Company's capital stock or of any of its
Subsidiaries, (c) the making of any principal payment on, or the purchase,
defeasance, repurchase, redemption or other acquisition or retirement for value,
prior to any scheduled maturity, scheduled repayment or scheduled sinking fund
payment, of any Indebtedness which is subordinated in right of payment to the
Notes (other than Indebtedness acquired in anticipation of satisfying a sinking
fund obligation, principal installment or final maturity, in each case due
within one year of the date of acquisition); and (d) the making of any
Investment other than an Investment permitted under clauses (a) through (f) of
Section 4.10.

         "Sale-Leaseback Transaction" means any direct or indirect arrangement
          --------------------------
with any person providing for the leasing to the Company or any of its
Subsidiaries of any real or tangible personal property (except for leases
between or among the Company and any of its Subsidiaries), which property or
similar property has been or is to be sold or transferred by the Company or such
Subsidiary to such person in contemplation of such leasing.

         "SEC" means the Securities and Exchange Commission.
          ---

                                       14

<PAGE>

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

         "Senior Debt Other Default" has the meaning provided in Section 10.02
          -------------------------
hereof.

         "Senior Debt Payment Default" has the meaning provided in Section 10.02
          ---------------------------
hereof.

         "Senior Indebtedness" means, at any date, the Principal of and interest
          -------------------
(including any interest accruing subsequent to the filing of a petition in
bankruptcy at a rate provided for in the documentation with respect thereto,
whether or not such interest is an allowed claim under applicable law) on all
Indebtness arising under the Credit Agreement and any other Indebtedness of the
Company, whether outstanding on the Issue Date or thereafter incurred, unless,
in the case of any particular Indebtedness, the instrument creating or
evidencing the same or pursuant to which the same is outstanding expressly
provides that such Indebtedness shall not be senior in right of payment to the
Notes. Notwithstanding the foregoing, Senior Indebtedness shall not include (a)
Indebtedness evidenced by the Notes, (b) any Indebtedness which is subordinated
or junior in right of payment to any other Indebtedness of the Company, (c) to
the extent it might constitute Indebtedness, any amount owing for goods,
materials or services purchased in the ordinary course of business or
constituting a trade payable, (d) any Indebtedness of the Company to a
Subsidiary of the Company or any other Affiliate of the Company or any of such
Affiliates' Subsidiaries, (e) Indebtedness which, when incurred and without
respect to any election under Section 1111(b) of Title 11, United States Code or
other applicable bankruptcy law, is without recourse to the Company, (f)
Indebtedness that is represented by Disqualified Stock, (g) Indebtedness of or
amounts owed by the Company for compensation to employees or for services
rendered to the Company, (h) any liability for federal, state, local or other
taxes owed or owing by the Company, (i) that portion of any Indebtedness which
at the time of issuance is issued in violation of the Indenture, (j)
Indebtedness that is pari passu with the Notes and (k) Indebtedness evidenced by
the Company's 5% Subordinated Convertible Notes due 2002.

         "Subsidiary" means with respect to any Person (a) a corporation a
          ----------
majority of whose capital stock with voting power, under ordinary circumstances,
to elect directors is at the time, directly or indirectly, owned by such Person,
by one or more Subsidiaries of such Person or by such Person and one or more
Subsidiaries of such Person or (b) any other Person (other than a corporation)
in which such Person, one or more Subsidiaries of such Person or such Person and
one or more subsidiaries of such Person, directly or indirectly, individually or
with another Person, at the date of determination thereof, has (i) at least a
majority ownership interest or (ii) the power to elect or direct the election of
a majority of the directors or other governing body of such Person.

         "TIA" means the Trust Indenture Act of 1939 (15 U.S.C. SS
          ---
77aaa-77bbbb), as amended, as in effect on the date of the execution of this
Indenture.

         "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.

         "Trust Officer" means, when used with respect to the Trustee, any
          -------------
officer within the corporate trust department of the Trustee, including any vice
president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person's knowledge of an familiarity with the particular subject
and who shall have direct responsibility for the administration of this
Indenture.

                                       15

<PAGE>

         "U.S. Government Obligations" means 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. 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.

         "voting power" means, with respect to any Person, the power under
          ------------
ordinary circumstances, pursuant to the ownership of shares of any class or
classes of capital stock, to elect at least a majority of the board of
directors, managers or trustees of such Person (irrespective of whether or not,
at the time, stock of any other class or classes shall have, or might have,
voting power by reason of the happening of any contingency).

         Wholly-Owned Subsidiary" means with respect to any Person any
         -----------------------
Subsidiary of such person, one hundred percent (100%) of the capital stock of
which (other than shares of capital stock representing any director's qualifying
shares or investments by foreign nationals mandated by applicable law) is owned
by such Person, by a Wholly-Owned Subsidiary of such Person or by such Person
and one or more Wholly-Owned Subsidiaries of such Person

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:

         "Commission" means the SEC.
          ----------

         "indenture securities" means the Notes.
          --------------------

         "indenture security holder" means a Holder.
          -------------------------

         "indenture to be qualified" means this Indenture.
          -------------------------

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

         "obligor" on the indenture securities means the Company or any other
          -------
obligor on the Notes.

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

Section 1.03  Rules of Construction.
              ---------------------

         Unless the context otherwise requires:

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

                                       16

<PAGE>

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

     (c) "or" is not exclusive;

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

     (e) provisions apply to successive events and transactions;

     (f) the words "include" and "including" shall be deemed to mean "include,
without limitation," and "including, without limitation";

     (g) "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;

     (h) references to Sections or Articles means references to such Section or
Article in this Indenture, unless stated otherwise;
and

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

                                   ARTICLE II
                                    THE NOTES

Section 2.01  Form and Dating.
              ---------------

     (a) The Notes and the Trustee's certificate of authentication with respect
thereto shall be substantially in the form of Exhibit A hereto. The Notes may
                                              ---------
have notations, legends or endorsements required by law, stock exchange rules,
usage or agreement to which the Company is subject, including the legends set
forth in Exhibit A hereto. 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 authentication, shall bear interest from the Issue Date
and shall be payable on the Interest Payment Dates and the Maturity Date.

     (b) The terms and provisions contained in the Notes 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.
However, to the extent any provision of any Note conflicts with the express
provisions of this Indenture, the provisions of this Indenture shall govern and
be controlling.

Section 2.02  Execution and Authentication.
              ----------------------------

     (a) One Officer shall sign (who shall have been duly authorized by all
requisite corporate actions) the Notes for the Company by manual or facsimile
signature. If an Officer whose signature is on a Note was an Officer at the time
of such execution but no longer holds

                                       17

<PAGE>

that office at the time the Trustee authenticates the Note, the Note shall
nevertheless be valid. A Note shall not be valid until an authorized signatory
of the Trustee manually signs the certificate of authentication on the Note. The
signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

     (b) The Trustee shall authenticate Notes for original issue up to an
aggregate principal amount of Sixty Million One Hundred Forty-Two Thousand
Dollars ($60,142,000) upon a written order of the Company in the form of an
Officers' Certificate to a Trust Officer directing the Trustee to authenticate
the Notes and certifying that all conditions precedent to the issuance of the
Notes contained herein have been complied with. Upon the written order of the
Company in the form of an Officers' Certificate, the Trustee shall authenticate
Notes in substitution of Notes issued on the Issue Date to reflect any name
change of the Company. The aggregate principal amount of Notes outstanding at
any time may not exceed Sixty Million One Hundred Forty-Two Thousand Dollars
($60,142,000) except as provided in Section 2.07 hereof.

     (c) The Principal and interest on Book-Entry Notes shall be payable to the
Depository or its nominee, as the case may be, as the sole registered owner and
the sole holder of the Book-Entry Notes represented thereby. The Principal of
and interest on Notes in certificated form ("Physical Notes") shall be payable
                                             --------------
at the office of the Paying Agent.

     (d) The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate the 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.

     (e) The Notes shall be issuable only in registered form without coupons in
denominations of One Thousand Dollars ($1,000) and any integral multiples
thereof.

     (f) If the Notes are to be issued in the form of one or more Global Notes,
then the Company shall execute and the Trustee shall authenticate and deliver
one or more Global Notes that (i) shall represent and shall be in minimum
denominations of One Thousand Dollars ($1,000), (ii) shall be registered in the
name of the Depository for such Global Note or Notes or the nominee of such
Depository and (iii) shall be delivered to the Trustee as custodian for such
Depository or pursuant to such Depository's instructions.

     (g) The Company initially appoints The Depository Trust Company to act as
Depository with respect to the Book-Entry Notes.

Section 2.03  Registrar and Paying Agent
              --------------------------

     (a) The Company shall maintain an office or agency in the Borough of
Manhattan, The City of New York, where (i) Notes may be presented or surrendered
for registration of transfer or for exchange (the "Registrar"), (ii) Notes may
                                                   ---------
be presented or surrendered for payment (the "Paying Agent"), and (iii) notices
                                              ------------
and demands to or upon the Company in respect of the Notes and this Indenture
may be served. The Company may also from time to time designate one or more
other offices or agencies where the Notes may be presented or surrendered

                                       18

<PAGE>

for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
              --------  -------
any manner relieve the Company of its obligation to maintain an office or agency
in the Borough of Manhattan, The City of New York, for such purposes. Neither
the Company nor any Affiliate of the Company shall act as Paying Agent. The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Company, upon notice to the Trustee, may appoint 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. The Company
          ------------
initially appoints the Trustee as Registrar, Paying Agent and agent for service
of notices or demands in connection with the Notes and this Indenture until such
time as the Trustee has resigned or a successor has been appointed. Notes,
notices and demands may be delivered to the Trustee at its Corporate Trust
Office.

     (b) 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. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall promptly notify the
Trustee of the name and address of any such Agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation in accordance with Section 7.07 hereof.

Section 2.04   Paying 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 the
Holders or the Trustee all assets held by the Paying Agent for the payment of
Principal of, or interest on, the Notes (whether such assets have been
distributed to it by the Company or any other obligor on the Notes), and shall
notify the Trustee of any Default by the Company (or any other obligor on the
Notes) in making any such payment. The Trustee may at any time during the
continuance of any Default by the Company in making any such payment, 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. 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 disbursed. 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 2.05   Security Holder Lists.
               ---------------------

     The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
the Holders and shall otherwise comply with TIA (S)312(a). If the Trustee is not
the Registrar, the Company shall furnish to the Trustee five (5) days 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 the Holders, which list may be conclusively relied
upon by the Trustee, and the Company shall otherwise comply with TIA (S)312(a).

                                       19

<PAGE>

Section 2.06  Transfer and Exchange.
              ---------------------

     (a) When Notes in certificated form are presented to the Registrar or a
co-Registrar with a request from the Holder thereof to register the transfer of
such Notes or to exchange such Notes for an equal principal amount of Notes of
other authorized denominations, the Registrar or co-Registrar, as the case may
be, 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 registration of 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, as the case may be, duly executed by
the Holder thereof or such Holder's attorney duly authorized in writing. To
permit registrations of transfers and exchanges, the Company shall execute by
manual or facsimile signature and issue, and the Trustee shall authenticate new
Notes evidencing such transfer or exchange at the Registrar's or co-Registrar's
request, as the case may be. No service charge shall be made for any
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchanges or transfers pursuant to Section
2.02, 2.07, 2.10, 3.02, 3.04, 4.16 or 9.05). 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 fifteen (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 III, except the unredeemed portion of any Note being
redeemed in part.

     (b) Notwithstanding any other provision of this Section 2.06, a Global Note
representing a Book-Entry Note may not be transferred in 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.

     (c) Notwithstanding the foregoing, no Global Note shall be registered for
transfer or exchange, or authenticated and delivered, whether pursuant to this
Section 2.06, Section 2.07, 2.10 or 3.02 or otherwise, in the name of a person
other than the Depository for such Global Note or its nominee until (i) the
Depository notifies the Company that it is unwilling or unable to continue as
Depository for such Global Note or if at any time the Depository ceases to be a
clearing agency registered under the Exchange Act, and a successor depository is
not appointed by the Company within thirty (30) days, (ii) the Company executes
and delivers to the Trustee a Company Order that all such Global Notes shall be
exchangeable or (iii) there shall have occurred and be continuing an Event of
Default.

     (d) Except as provided above, any Note authenticated and delivered upon
registration of transfer or, or in exchange for, or in lieu of, any Global Note,
whether pursuant to this Section 2.06, Section 2.07, 2.10 or 3.02 or otherwise,
shall also be a Global Note.

Section 2.07  Replacement Notes.
              -----------------

     If a mutilated Note is surrendered to the Trustee or the Registrar or if
the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Note, the

                                       20

<PAGE>

Company shall issue and the Trustee, upon receipt of a Company Order, 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 or any Agent from any loss which
any of them may suffer if a Note is replaced. The Company and the Trustee may
charge such Holder for their respective reasonable, out-of-pocket expenses in
replacing a Note, including reasonable fees and expenses of counsel. Every
replacement Note shall constitute an additional obligation of the Company and
shall be entitled to all benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.

Section 2.08   Outstanding Notes.
               -----------------

          (a)  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. Except
as set forth in Section 2.09, a Note does not cease to be outstanding because
the Company or any of its Affiliates holds the Note.

          (b)  If a Note is replaced pursuant to Section 2.07 (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 2.07.

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

          (d)  If on the Redemption Date or the Maturity Date the Paying Agent
holds U.S. Legal Tender sufficient to pay all of the Principal and interest due
on the Notes payable on that date and is not prohibited from paying such
Principal and interest due on such date, then on and after such date such Notes
cease to be outstanding and interest on them ceases to accrue.

Section 2.09   Treasury Notes.
               --------------

          In determining whether the Holders of the required principal amount of
Notes have concurred in any declaration of acceleration or notice of default or
direction, waiver or consent or any amendment, modification or other change to
this Indenture, the Notes owned by the Company or an Affiliate of the Company
shall be disregarded as though they were not outstanding, except that, for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, waiver or consent, only Notes that a Trust Officer of the
Trustee actually knows are so owned shall be disregarded.

Section 2.10   Temporary Notes.
               ---------------

          Until definitive Notes are prepared and 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

                                       21

<PAGE>

unreasonable delay, the Company shall prepare and the Trustee shall
authenticate, upon receipt of a written order of the Company pursuant to Section
2.02, definitive Notes in exchange for temporary Notes. Until such exchange,
Holders of temporary Notes shall be entitled to the same rights, benefits and
privileges as definitive Notes.

Section 2.11   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 registration of transfer, exchange or payment. The
Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent
(other than the Company or a Subsidiary), and no one else, shall cancel and,
pursuant to a Company Order, shall dispose of all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
certification of their destruction (subject to the record retention requirements
of the Exchange Act) shall be delivered to the Company unless, by a Company
order, the Company shall direct that canceled Notes be returned to it. Subject
to Section 2.07, 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
2.11.

Section 2.12   Defaulted Interest.
               ------------------

     If the Company defaults in a payment of interest on the Notes, it shall,
unless the Trustee fixes another record date pursuant to Section 6.10, pay the
defaulted interest, plus (to the extent lawful) any interest payable on the
defaulted interest to the persons who are Holders on a subsequent special record
date, which date shall be a Business Day at least five (5) Business Days prior
to the payment date, in each case at the rate provided in the Notes and in
Section 4.01 hereof. The Company shall fix or cause to be fixed such special
record date and payment date in a manner reasonably satisfactory to the Trustee.
At least fifteen (15) days before the subsequent special record date, the
Company shall mail or cause to be mailed to each Holder, with a copy to the
Trustee, a notice that states the subsequent special record date, the payment
date and the amount of defaulted interest, and interest payable on such
defaulted interest, if any, to be paid. The Company may also pay defaulted
interest in any other lawful manner.

Section 2.13   Deposit of Monies.
               -----------------

     On or before 10:00 a.m. on each Interest Payment Date and the Maturity
Date, as the case may be, the Company shall deposit or cause to be deposited
with the Paying Agent, in immediately available funds, U.S. Legal Tender
sufficient to make cash payments, if any, due on such Interest Payment Date or
the Maturity Date, as the case may be, in a timely manner that permits the
Trustee to remit payment to the Holders on such Interest Payment Date or the
Maturity Date, as the case may be.

Section 2.14   CUSIP Number.
               ------------

     The Company in issuing the Notes may use one or more CUSIP numbers, and if
so, the Trustee shall use the CUSIP numbers in notices of redemption or exchange
as a convenience to

                                       22

<PAGE>

Holders; provided, that any such notice may state that no representation is made
         --------
as to the correctness or accuracy of the CUSIP number printed in the notice or
on the Notes, and that reliance may be placed only on the other identification
numbers printed on the Notes.

Section 2.15   Book Entry Provisions for Global Note.
               -------------------------------------

     (a) Members of, or participants in, the Depository ("Agent Members") 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 Notes, and the Depository may be treated by the Company, the Trustee and
any Agent of the Company or the Trustee as the absolute owner of such Global
Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein
shall prevent the Company, the Trustee or any Agent of the Company or the
Trustee from giving effect to any written certification, proxy or other
authorization furnished by the Depository or impair, as between the Depository
and its Agent Members, the operation of customary practices governing the
exercise of the rights of a Holder of any Note.

     (b) Transfers of a Global Note 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 a Global Note may be transferred or exchanged
for Physical Notes in accordance with the rules and procedures of the
Depository. In addition, Physical Notes shall be transferred to all beneficial
owners in exchange for their beneficial interests in a Global Note if (i) the
Depository notifies the Company that it is unwilling or unable to continue as
Depository for the Global Notes and a successor depositary is not appointed by
the Company within ninety (90) days of such notice or (ii) an Event of Default
has occurred and is continuing and the Registrar has received a written 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 2.15, 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 such Global Notes in an amount equal to 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 deliver, one or more
Physical Notes of like tenor and amount.

     (d) In connection with the transfer of an entire Global Note to beneficial
owners pursuant to paragraph (b) of this Section 2.15, such Global Note shall be
deemed to be surrendered to the Trustee for cancellation, and the Company shall
execute and the Trustee shall authenticate and deliver, to each beneficial owner
identified by the Depository in exchange for its beneficial interest in the
Global Note, an equal aggregate principal amount of Physical Note of authorized
denominations.

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

                                       23

<PAGE>

                                  ARTICLE III
                               REDEMPTION OF NOTES

Section 3.01   Redemption Price.
               ----------------

     At any time, the Notes may be redeemed at the Company's option, upon notice
as set forth in Section 3.02, in whole at any time or in part from time to time,
at a redemption price in an amount equal to 100% of the principal amount of such
Notes, plus accrued and unpaid interest thereon to the Redemption Date.

Section 3.02   Notice of Redemption; Selection of Notes.
               ----------------------------------------

     (a) In case the Company shall desire to exercise the right to redeem all
or, as the case may be, any part of the Notes pursuant to Section 3.01, it shall
fix a date for redemption and, in the case of any redemption pursuant to Section
3.01, it or, at its request accompanied by the proposed form of notice of
redemption (which must be received by the Trustee at least ten days prior to the
date the Trustee is requested to give notice as described below, unless a
shorter period is agreed to by the Trustee), the Trustee in the name of and at
the expense of the Company, shall publish a notice in THE WALL STREET JOURNAL
and mail or cause to be mailed a notice of such redemption at least 30 and not
more than 60 days prior to the date fixed for redemption to the holders of Notes
so to be redeemed as a whole or in part at their last addresses as the same
appear on the Note register, provided that if the Company shall give such
notice, it shall also give such notice, and notice of the Notes to be redeemed,
to the Trustee. Such mailing shall be by first class mail. The notice, if mailed
in the manner herein provided, shall be conclusively presumed to have been duly
given, whether or not the holder receives such notice. In any case, failure to
give such notice by mail or any defect in the notice to the holder of any Note
designated for redemption as a whole or in part shall not affect the validity of
the proceedings for the redemption of any other Note.

     (b) Each such notice of redemption shall identify the Notes to be redeemed
(including CUSIP numbers), specify the aggregate principal amount of Notes to be
redeemed, the date fixed for redemption, the redemption price at which Notes are
to be redeemed, the place or places of payment, that payment shall be made upon
presentation and surrender of such Notes, that interest accrued to the date
fixed for redemption shall be paid as specified in said notice and that on and
after said date, interest thereon or on the portion thereof to be redeemed shall
cease to accrue. If fewer than all the Notes are to be redeemed, the notice of
redemption shall identify the Notes to be redeemed. In case any Note is to be
redeemed in part only, the notice of redemption shall state the portion of the
principal amount thereof to be redeemed and shall state that on and after the
date fixed for redemption, upon surrender of such Note, a new Note or Notes in
principal amount equal to the unredeemed portion thereof shall be issued.

     (c) On or prior to the Business Day prior to the Redemption Date specified
in the notice of redemption given as provided in this Section 3.02, the Company
shall deposit with the Trustee or with one or more paying agents an amount of
money sufficient to redeem on the Redemption Date all the Notes so called for
redemption at the appropriate redemption price, together with accrued interest
to the date fixed for redemption. If any Note called for redemption is converted
pursuant hereto, any money deposited with the Trustee or any paying agent or so

                                       24

<PAGE>

segregated and held in trust for the redemption of such Note shall be paid to
the Company upon its request or, if then held by the Company, shall be
discharged from such trust. If fewer than all the Notes are to be redeemed, the
Company shall give the Trustee written notice in the form of an Officers'
Certificate not fewer than forty-five (45) (or such shorter period of time as
may be acceptable to the Trustee) prior to the Redemption Date as to the
aggregate principal amount of Notes to be redeemed.

     (d) If fewer than all the Notes are to be redeemed, the Trustee shall
select the Notes or portions thereof to be redeemed (in principal amounts of
one thousand dollars ($1,000) or integral multiples thereof), by lot or, in its
discretion, on a pro rata basis. The Notes (or portions thereof) so selected
shall be deemed duly selected for redemption for all purposes hereof.

Section 3.03   Payment of Notes Called for Redemption.
               --------------------------------------

     (a) If notice of redemption has been given as above provided, the Notes or
portion of Notes with respect to which such notice has been given shall become
due and payable on the date and at the place or places stated in such notice at
the applicable redemption price, together with interest thereon accrued to the
date fixed for redemption, and on and after said date (unless the Company shall
default in the payment of such Notes at the redemption price, together with
interest thereon accrued to said date), interest on the Notes or portion of
Notes so called for redemption shall cease to accrue and, except as provided in
Sections 7.01 and 8.01, to be entitled to any benefit under this Indenture, and
the holders thereof shall have no right in respect of such Notes except the
right to receive the redemption price thereof and unpaid interest thereon to the
date fixed for redemption. On presentation and surrender of such Notes at a
place of payment in said notice specified, the said Notes or the specified
portions thereof shall be paid and redeemed by the Company at the applicable
redemption price, together with interest accrued thereon to the date fixed for
redemption; provided that any semi-annual payment of interest becoming due on
the date fixed for redemption shall be payable to the holders of such Notes
registered as such on the relevant record date subject to the terms and
provisions of Section 2.01 hereof.

     (b) Upon presentation of any Note redeemed in part only, the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Note or Notes, of
authorized denominations, in principal amount equal to the unredeemed portion of
the Notes so presented.

     (c) If any Note called for redemption shall not be so paid upon surrender
thereof for redemption, the principal and premium, if any, shall, until paid or
duly provided for, bear interest from the date fixed for redemption at the rate
borne by the Note.

Section 3.04   Purchase of Notes Upon A Change of Control.
               ------------------------------------------

     (a) If a Change of Control shall occur at any time, then each holder of
Notes shall have the right to require that the Company repurchase such holder's
Notes in whole or in part in integral multiples of one thousand dollars ($1,000)
at a purchase price (the "Change of Control Purchase Price") in cash in an
amount equal to one hundred one percent (101%) of the principal amount of such
Notes, plus accrued and unpaid interest thereon, if any, to the purchase date
(the "Change of Control Purchase Date") pursuant to

                                       25

<PAGE>

the offer described below (the "Change of Control Offer") and in accordance
with the other procedures set forth in this Indenture.

        (b)     Within thirty (30) days following any Change of Control, unless
the Company has given the Holders notice of its intention to redeem the Notes
pursuant to Section 3.01, the Company shall notify the Trustee and give written
notice of such Change of Control to each Holder of Notes, by first-class mail,
postage prepaid, at the Holder's address appearing in the Note register,
stating, among other things, (i) that a Change of Control has occurred, (ii) the
Change of Control Purchase Price, (iii) the Change of Control Purchase Date
(which shall be a Business Day no earlier than thirty days (30) nor later than
sixty days (60) from the date such notice is mailed, or such later date as is
necessary to comply with requirements under the Exchange Act), (iv) that any
Note not tendered shall continue to accrue interest and to have all of the
benefits of this Indenture, (v) that, unless the Company defaults in the payment
of the Change of Control Purchase Price, any Notes accepted for payment pursuant
to the Change of Control Offer shall cease to accrue interest after the Change
of Control Purchase Date, (vi) that Holders electing to have any Notes purchased
pursuant to a Change of Control Offer shall be required to surrender the Notes,
with the form entitled "Option of Holder to Elect Purchase" on the reverse of
the Notes completed, to the Company at the address specified in the notice prior
to the close of business on the third Business Day preceding the Change of
Control Purchase Date, (vii) that Holders shall be entitled to withdraw their
election if the Company receives, not later than the close of business on the
second Business Day preceding the Change of Control Purchase Date, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of Notes delivered for purchase, and a statement that such
Holder is withdrawing his election to have such Notes purchased, and (viii) that
Holders whose Notes are being purchased only in part shall be issued new Notes
equal in principal amount to the unpurchased portion of the Notes surrendered,
which unpurchased portion must be equal to one thousand Dollars ($1,000) in
principal amount or an integral multiple thereof. Prior to being required to
purchase any Notes pursuant to this Section 3.04 and prior to the mailing of the
notice of the Change of Control to the Holders, but in any event within 30 days
following any Change of Control, the Company shall either (i) repay in full all
of the Designated Senior Indebtedness and terminate all commitments thereunder
or offer to do so and repay the Designated Senior Indebtedness and terminate all
commitments of each lender thereunder who accepted such offer or (ii) obtain the
requisite consent under the Designated Senior Indebtedness to permit the
repurchase of the Notes pursuant to this Section 3.04. The Company shall comply
with the requirements of Rule 13e-4 and 14e-1 under the Exchange Act and any
other securities laws and regulations thereunder to the extent such laws and
regulations are applicable in connection with the repurchase of the Notes in
connection with a Change of Control.

        (c)     On the Change of Control Purchase Date, the Company shall, to
the extent lawful, (i) accept for payment Notes or portions thereof tendered
pursuant to the Change of Control Offer, (ii) deposit with the Trustee an amount
equal to the Change of Control Purchase Price in respect of all Notes or
portions thereof so tendered and (iii) deliver or cause to be delivered to the
Trustee the Notes so accepted together with an Officers' Certificate stating the
Notes or portions thereof tendered to the Company. The Trustee shall promptly
mail to each Holder of Notes so accepted payment in an amount equal to the
purchase price of such Notes, and the Trustee shall promptly authenticate and
mail to each Holder a new Note equal in principal amount to any unpurchased
portion of the Notes surrendered, if any; provided that each such new Note shall
be

                                       26

<PAGE>

in a principal amount of $1,000 or an integral multiple thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as soon
as practicable after the Change of Control Purchase Date.

                                   ARTICLE IV
                                    COVENANTS

Section 4.01    Payment of Notes.
                ----------------

        (a)     The Company shall pay the Principal of and interest on the Notes
on the dates and in the manner provided in the Notes and this Indenture. An
installment of Principal on the Notes shall be considered paid on the date it is
due if the Trustee or Paying Agent holds on that date U.S. Legal Tender
designated for and sufficient to pay the installment then due and is not
prohibited from paying such installment on such date. An installment of interest
on the Notes shall be considered paid on the date it is due if the Trustee or
Paying Agent holds on that date U.S. Legal Tender designated for and sufficient
to pay the interest then due and it is not prohibited from paying such interest
on such date.

        (b)     The Company shall pay interest on (i) overdue Principal at the
rate set forth in the Notes for such overdue Principal, and (ii) overdue
installments of interest at the same rate, to the extent lawful. Interest shall
be paid in U.S. Legal Tender.

Section 4.02    Maintenance of Office or Agency.
                -------------------------------

        (a)     The Company shall maintain in the Borough of Manhattan, The City
of New York, the office or agency required under Section 2.03. The Company shall
give prior notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices and demands
described in such Section 2.03 may be made or served at the address of the
Trustee set forth in Section 2.03.

        (b)     The Company may also from time to time designate one or more
other offices or agencies where the Notes may be presented or surrendered for
any or all such purposes and may from time to time rescind such designations;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York, for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency. The
Company hereby initially designates the corporate trust office of the Trustee
set forth in Section 2.03 as such office.

                                       27

<PAGE>

Section 4.03    Corporate Existence.
                -------------------

        Except as permitted by Article V, the Company shall do or cause to be
done all things necessary to preserve and keep in full force and effect its
existence and the existence of each of its Subsidiaries, in accordance with the
respective organizational documents of each of them and the rights (charter and
statutory) and franchises of the Company and its Subsidiaries; provided,
however, that the Company shall not be required to preserve, with respect to
itself, any right or franchise, and with respect to any of its Subsidiaries, any
such existence, right or franchise, if (a) the Board of Directors of the Company
shall determine reasonably and in good faith that the preservation thereof is no
longer desirable in the conduct of the business of the Company and (b) the loss
thereof is not adverse in any material respect to the Holders.

Section 4.04    Payment of Taxes and Other Claims.
                ---------------------------------

        The Company shall and shall cause each of its Subsidiaries to, pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (i) all taxes, assessments and governmental charges (including
withholding taxes and any penalties, interest and additions to taxes) levied or
imposed upon it or any of its Subsidiaries or properties of it or any of its
Subsidiaries, and (ii) all lawful claims for labor, materials and supplies that,
if unpaid, might by law become a Lien upon the property of it or any of its
Subsidiaries; provided, however, that the Company shall not be required to pay
              --------  -------
or discharge or cause to be paid or discharged any such tax, assessment, charge
or claim if either (a) the amount, applicability or validity thereof is being
contested in good faith by appropriate proceedings and an adequate reserve has
been established therefor to the extent required by GAAP, or (b) the failure to
make such payment or effect such discharge (together with all other such
failures) would not have a material adverse effect on the financial condition or
results of operations of the Company and its Subsidiaries, taken as a whole.

Section 4.05    Maintenance of Properties and Insurance.
                ---------------------------------------

        (a)     The Company shall cause all Properties used or useful in the
conduct of its business or the business of any of its Subsidiaries to be
maintained and kept in satisfactory condition, repair and working order and
supplied with all necessary equipment and shall cause to be made all necessary
repairs, renewals, replacements, betterments and improvements thereof, all as in
its judgment may be necessary, so that the business carried on in connection
therewith may be properly and advantageously conducted at all times unless the
failure to so maintain such properties (together with all other such failures)
would not have a material adverse effect on the financial condition or results
of operations of the Company and its Subsidiaries taken as a whole; provided,
                                                                    --------
however, that nothing in this Section 4.05 shall prevent the Company or any of
-------
its Subsidiaries from discontinuing the operation or maintenance of any of such
properties or disposing of any of them if such discontinuance or disposal is (i)
in the ordinary course of business, (ii) in the good faith judgment of the Board
of Directors of the Company or the Subsidiary concerned, or of the senior
officers of the Company or such Subsidiary, as the case may be, desirable in the
conduct of the business of the Company or such Subsidiary, as the case may be,
or (iii) otherwise permitted by this Indenture.

                                       28

<PAGE>

        (b)     The Company shall provide or cause to be provided, for itself
and each of its Subsidiaries, insurance (including appropriate self-insurance)
against loss or damage of the kinds that, in the reasonable, good faith opinion
of the Company are adequate and appropriate for the conduct of the business of
the Company and such Subsidiaries in a prudent manner, with reputable insurers
or with the government of the United States of America or an agency or
instrumentality thereof, in such amounts, with such deductibles, and by such
methods as shall be customary, in the reasonable, good faith opinion of the
Company, for companies similarly situated in the industry, unless the failure to
provide such insurance (together with all other such failures) would not have a
material adverse effect on the financial condition or results of operations of
the Company and its Subsidiaries, taken as a whole.

        (c)     The Company shall and shall cause each of its Subsidiaries to
keep proper books of record and account, in which full and correct entries shall
be made of all financial transactions and the assets and business of the Company
and each Subsidiary in accordance with GAAP consistently applied to the Company
and its Subsidiaries, taken as a whole.

Section 4.06    Compliance Certificates; Notice of Default.
                ------------------------------------------

        (a)     The Company shall deliver to the Trustee, within sixty (60) days
after the end of each of the Company's first three (3) fiscal quarters and
within one hundred twenty (120) days after the end of the Company's fiscal year,
an Officers' Certificate stating that a review of the Company's activities and
the activities of its Subsidiaries during the preceding fiscal period has been
made under the supervision of the signing Officers with a view to determining
whether it has kept, observed, performed and fulfilled its obligations under
this Indenture and further stating, as to each such Officer signing such
certificate, that to the best of his knowledge, the Company during such
preceding fiscal period has kept, observed, performed and fulfilled each and
every such covenant and no Default or Event of Default occurred during such
period and at the date of such 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 the Default or Event
of Default and its status with particularity and what action the Company has
taken or proposes to take with respect thereto. The Officers' Certificate shall
also include all calculations necessary to show covenant compliance, if any. 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 (and to the extent) not contrary to the then current
recommendations of the American Institute of Certified Public Accountants, the
Company shall deliver to the Trustee within one hundred twenty (120) days after
the end of each fiscal year a written statement by a nationally recognized firm
of independent public accountants stating (i) that their audit examination has
included a review of the terms of this Indenture and the Notes as they relate to
accounting matters, and (ii) whether, in connection with their audit
examination, any Default or Event of Default has come to their attention and if
such a Default or Event of Default has come to their attention, specifying the
nature and period of existence thereof provided, however, that such accounting
firm shall not be liable to the Holders for failure to obtain knowledge of any
Default or Event of Default.

        (c)     The Company will deliver to the Trustee promptly, and in any
event within ten (10) days after the Company becomes aware of the occurrence of
any Default or Event of Default, an Officers' Certificate describing such
Default

                                       29

<PAGE>

or Event of Default and its status with particularity and what action the
Company is taking or proposes to take with respect thereto.

Section 4.07    Compliance with Laws.
                --------------------

        The Company shall comply, and shall cause each of its Subsidiaries to
comply, with the respective organizational documents of each of them and all
applicable statutes, rules, regulations, orders and restrictions of the United
States of America, all states, provinces and municipalities thereof, and of any
governmental department, commission, board, regulatory authority, bureau, agency
and instrumentality of the foregoing, in respect of the conduct of their
respective businesses and the ownership of their respective properties, except
such noncompliance with which would not in the aggregate have a material adverse
effect on the financial condition or results of operations of the Company and
its Subsidiaries, taken as a whole.

Section 4.08    SEC Reports and Other Information.
                ---------------------------------

        To the extent permitted by applicable law or regulation, whether or not
the Company is subject to Section 13(a) or 15(d) of the Exchange Act, the
Company shall file with the SEC the annual reports, quarterly reports and other
documents which the Company would have been required to file with the SEC
pursuant to such Sections 13(a) and 15(d) if the Company were so subject, such
documents to be filed with the SEC on or prior to the respective dates (the
"Required Filing Dates") by which the Company would have been required so to
 ---------------------
file such documents if the Company were so subject. In addition, the Company
shall comply with its reporting and filing obligations under the applicable
federal securities laws. The Company shall also in any event (i) within fifteen
(15) days after each Required Filing Date (A) transmit by mail to all Holders,
as their names and addresses appear in the register of Notes maintained by the
Registrar, without cost to such Holders and (B) file with the Trustee, copies
of the annual reports, quarterly reports and other documents which the Company
would have been required to file with the SEC pursuant to Sections 13(a) and
15(d) of the Exchange Act if the Company were subject to such Sections and (ii)
if filing such documents by the Company with the SEC is not permitted under the
Exchange Act, promptly upon written request, supply copies of such documents to
any prospective Holder. In any event, such annual reports will contain
consolidated financial statements and notes thereto, together with an opinion
thereon expressed by an independent public accounting firm with an established
national reputation and management's discussion and analysis of financial
condition and results of operations, and such quarterly reports will contain
unaudited consolidated financial statements for the first three (3) quarters of
each fiscal year. Upon qualification of this Indenture under the TIA, the
Company shall also comply with the provisions of TIA (s)314(a).

Section 4.09    Limitation on Additional Indebtedness.
                -------------------------------------

        (a)     The Company shall not, and shall not cause or permit any of its
Subsidiaries to, directly or indirectly, create, incur, assume, issue, guarantee
or in any manner become liable for or with respect to the payment of, any
Indebtedness, except that the Company and its Subsidiaries may incur (each of
which shall be given independent effect):

                                       30

<PAGE>

              (i)   Indebtedness of the Company and its Subsidiaries arising
         under the Credit Agreement not to exceed $90 million outstanding at any
         time;

              (ii)  Indebtedness of the Company or any of its Subsidiaries
         outstanding and disclosed on the Issue Date or under any revolving
         credit facility outstanding and disclosed on the Issue Date;

              (iii) Indebtedness of the Company evidenced by the Notes or
         otherwise arising under this Indenture;

              (iv)  Indebtedness of the Company or any of its subsidiaries if,
         at the time of incurrence and after giving pro forma effect to the
         incurrence of such Indebtedness, the EBITDA Coverage Ratio of the
         Company for the prior four completed fiscal quarters, taken as a whole
         and assuming such Indebtedness had been incurred on the first day of
         such four quarter period, would have been at least 1.00 to 1.00;

              (v)   purchase-money Indebtedness and capitalized lease
         obligations of the Company or any of its Subsidiaries not to exceed an
         aggregate outstanding amount at any time of Ten Million Dollars
         ($10,000,000);

              (vi   any replacements, renewals, refinancings and extensions of
         the Indebtedness incurred under clauses (ii), (iv) and (v) above,
         provided that any such replacement, renewal, refinancing and extension
         (A) shall not provide for any mandatory redemption, amortization or
         sinking fund requirement in an amount greater than or at a time prior
         to the amounts and times specified in the Indebtedness being replaced,
         renewed, refinanced or extended and (B) shall not exceed the principal
         amount (plus accrued interest and prepayment premium, if any) of the
         Indebtedness being replaced, renewed, refinanced or extended;

              (vii) any Permitted Subsidiary Transactions; and

              (viii) Indebtedness of the Company or any of its Subsidiaries in
         an aggregate principal amount not to exceed Fifty Million Dollars
         ($50,000,000) at any one time outstanding.

         (b)  Indebtedness shall be deemed to have been incurred by the survivor
of a merger at the time of such merger and, with respect to an acquisition of a
Subsidiary by the Company, at the time of such acquisition.

Section 4.10  Limitation on Investments, Loans and Advances.
              ---------------------------------------------

         The Company shall not make, and shall not permit any of its
Subsidiaries to make, any Investment, except:

         (a)  Investments by the Company or any of its Subsidiaries in any
Wholly-Owned Subsidiary of the Company (including any such Investment pursuant
to which a Person becomes a Wholly-Owned Subsidiary of the Company) or in the
Company by any of its Subsidiaries;

         (b)  Investments represented by receivables created or acquired in the
ordinary course of business or the settlement of such receivables in the
ordinary course of business;

         (c)  Investments represented by advances to employees, officers and
directors of the Company or its Subsidiaries made in the ordinary course of
business and consistent with reasonable and customary business practices;

                                       31

<PAGE>

         (d)  Investments under or pursuant to interest rate protection
agreements;

         (e)  Investments, not exceeding Twenty-Five Million Dollars
($25,000,000) in the aggregate, in joint ventures, partnerships or Persons that
are not a Wholly-Owned Subsidiary of the Company, provided that such Investments
are made solely for the purpose of acquiring businesses or property related to
the business of the Company; and

         (f)  Investments made pursuant to Section 4.11.

         (g)  Investments which are Permitted Subsidiary Transactions.

Section 4.11  Limitation on Restricted Payments.
              ---------------------------------

         (a)  The Company will not, and will not permit any of its Subsidiaries
to, directly or indirectly, make any Restricted Payment, unless at the time of
and after giving effect to such Restricted Payment:

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

              (ii)  the Company could incur at least One Dollar ($1.00) of
         Indebtedness pursuant to clause (a) of Section 4.09 hereof; and

              (iii) the aggregate of all Restricted Payments declared or made
         after the Issue Date through and including the date of such Restricted
         Payment does not exceed the sum of (A) seventy-five percent (75%) of
         the Company's Consolidated Net Income (or in the event such
         Consolidated Net Income shall be a deficit, minus seventy-five percent
         (75%) of such deficit) from and including the Issue Date, and (B) one
         hundred percent (100%) of the aggregate Net Proceeds and the fair
         market value of marketable securities and property received by the
         Company from the issue or sale, after the issuance of the Notes, of
         Capital Stock (other than Disqualified Stock) or any Indebtedness or
         other of the Company's securities convertible into or exercisable or
         exchangeable for its Capital Stock (other than Disqualified Stock)
         which has been so converted, exercised or exchanged, as the case may
         be. For purposes of determining the amount expended for Restricted
         Payments in accordance with clause (ii), cash distributed shall be
         valued at the face amount thereof and property other than cash shall
         be valued at its fair market value. In determining the amount of
         Restricted Payments permitted under this clause (iii), amounts expended
         pursuant to clauses (i) and (ii) above of this Section 4.11(a) shall be
         included as Restricted Payments.

         (b)  The provisions of this Section 4.11 shall not prohibit (i) the
payment of any dividend within sixty (60) days after the date of declaration
thereof, if such payment would comply with the provisions of this Indenture at
the date of the declaration of such payment, (ii) the retirement of any shares
of Capital Stock of the Company or Indebtedness of the Company which is
subordinated in right of payment to the Notes by conversion into, or by an
exchange for, shares of Capital Stock of the Company that are not Disqualified
Stock or out of the Net Proceeds of the substantially concurrent sale (other
than to a Subsidiary of the Company) of other shares of Capital Stock (other
than Disqualified Stock) of the Company, and (iii) the redemption or retirement
of Indebtedness of the Company which is subordinated in right of payment to the
Notes in exchange for, by conversion into, or out of the Net Proceeds of, a

                                       32

<PAGE>

substantially concurrent sale of subordinated Indebtedness of the Company (other
than to a Subsidiary of the Company) that is contractually subordinated in right
of payment to the Notes and permitted to be incurred in accordance with Section
4.09.

Section 4.12  Limitation on Liens.
              -------------------

     Other than Permitted Liens, the Company shall not, and the Company shall
not permit, cause or suffer any of its Subsidiaries to, create, incur, assume or
suffer to exist any Lien, charge or other encumbrance of any kind with respect
to any property or assets now owned or hereafter acquired by it, which secures
Indebtedness of the Company subordinated in right of payment to the Notes,
unless the Notes are secured by a Lien on such Property that is equal and
ratable with such Lien.

Section 4.13  Limitation on Sale-Leaseback Transactions.
              -----------------------------------------

     The Company will not, and will not permit any of its Subsidiaries to, enter
into any Sale-Leaseback Transaction unless at least one of the following
conditions is satisfied: (a) the lease is between the Company and any of its
Wholly-Owned Subsidiaries or between any of the Company's Wholly-Owned
Subsidiaries; (b) the lease is a Permitted Lien and the Company or any of its
Subsidiaries could create a lien on the property to secure Indebtedness at least
equal in amount to the Attributable Debt in connection with the Sale-Leaseback
Transaction; or (c) the Company or any of its Subsidiaries within ninety (90)
days of the effective date of the Sale-Leaseback Transaction makes an optional
prepayment in cash of any of its long-term Senior Indebtedness (which may
include the Notes) at least equal in amount to the Attributable Debt in
connection with the Sale-leaseback Transaction; provided, however, that the
Indebtedness prepaid is not owned by the Company or any of its Subsidiaries or
any Affiliates of the Company; provided further, however, that in connection
with any such prepayment, the Company will cause the related loan commitment (if
any) to be permanently reduced in an amount equal to the principal amount so
prepaid.

Section 4.14

                                       33

<PAGE>

              Limitation on Liquidations, Dissolutions, Mergers and
              -----------------------------------------------------
              Consolidation.
              --------------

         The Company shall not, directly or indirectly, enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey sell, lease, assign, transfer
or otherwise dispose of, all or substantially all of its property, business or
assets (other than isolated transactions which do not exceed Five Million
Dollars ($5,000,000) individually), or make any material change in its present
method of conducting business, except transactions permitted by Section 5.01
hereof.

Section 4.15 Disposition of Proceeds of Asset Sales.
--------------------------------------

         (a)  The Company will not, and will not permit any of its Subsidiaries
to, make any Asset Sale unless (i) the Company or the applicable 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
(which shall be as determined by the Board of Directors) and (ii) at least fifty
percent (50%) of the Net Proceeds received by the Company or such Subsidiary, as
the case may be, from such Asset Sale shall be in the form of cash or Cash
Equivalents (with Indebtedness of the Company or its Subsidiaries assumed by the
purchaser being counted as cash for such purposes if the Company and its
Subsidiaries are permanently released from all liability therefor).

         (b)  The Company shall or shall cause its Subsidiaries to:

              (i)   apply such Net Asset Sale Proceeds to permanently prepay
         Senior Indebtedness;

              (ii)  within two hundred seventy (270) days of such Asset Sale
         commit to invest or invest the Net Asset Sale Proceeds and, within
         three hundred sixty (360) days of such Asset Sale, apply the Net Asset
         Sale Proceeds to acquire or construct similar properties and asset of
         the Company or any of its Subsidiaries in lines of business related to
         the Company's or its Subsidiaries' businesses as in existence on the
         Issue Date; or

              (iii) use the remaining Net Asset Sale Proceeds to offer to
         purchase ratably the maximum principal amount of the Notes that may be
         purchased out of such proceeds, at an offer price in cash in an amount
         equal to one hundred percent (100%) of the principal amount thereof
         plus accrued interest to the date of payment. The Company may defer the
         offer to purchase Notes until the aggregate Net Asset Sale Proceeds
         required to be

                                       34

<PAGE>

         applied to make such offer is at least Ten Million Dollars
         ($10,000,000) at which time the entire amount of the Net Asset Sale
         Proceeds shall be used to make the offer.

Section 4.16  Limitation on Transactions with Affiliates.
              ------------------------------------------

         The Company will not, and will not permit, cause or suffer, any of its
Subsidiaries to, participate in, conduct any business or enter into any
transaction with or for the benefit of an Affiliate (each an "Affiliate
Transaction") other than a Permitted Subsidiary Transaction, except in good
faith and on terms that are no less favorable to the Company or such Subsidiary,
as the case may be, than those that could have been obtained in a comparable
transaction on an arm's length basis from a person not an Affiliate of the
Company or such Subsidiary. With respect to any Affiliate Transaction (and each
series of related Affiliate Transactions which are similar or part of a common
plan) involving aggregate payments or other market value in excess of Ten
Million Dollars ($10,000,000), be approved by a majority of the Board of
Directors of the Company as a whole, evidenced by a resolution stating that the
Board of Directors has, in good faith, determined that such transaction complies
with the foregoing provisions. Notwithstanding the foregoing, the restrictions
set forth in this Section 4.16 shall not apply to (i) any employment agreement,
consulting agreement and indemnification obligations entered into by the Company
or any of its Subsidiaries in the ordinary course of business and consistent
with the past practice of the Company or such Subsidiary, and (ii) the payment
of reasonable and customary fees to directors of the Company who are not
employees of the Company.

                                   ARTICLE V
                              SUCCESSOR CORPORATION

Section 5.01  Consolidation, Merger, Conveyance, Transfer or Lease.
              ----------------------------------------------------

         The Company shall not consolidate with or merge with or into or sell,
assign, convey, lease, transfer or otherwise dispose of all or substantially all
of its properties and assets (determined on a consolidated basis for the Company
and its Subsidiaries, taken as a whole) to another Person or Persons, in a
single transaction or through a series of related transactions, or cause or
permit any of its Subsidiaries to do any of the foregoing, unless:

         (a)  the Company is the continuing Person, or the Person formed by or
surviving such consolidation or merger or the Person to which such sale,
assignment, conveyance, lease, transfer or other disposition is made (the
"surviving entity") is a corporation organized and validly existing under the
 ----------------
laws of the United States, any State thereof or the District of Columbia;

         (b)  the surviving entity shall expressly assume, by a supplemental
indenture executed and delivered to the Trustee, in form and substance
reasonably satisfactory to the Trustee, all of the obligations of the Company
under the Notes and this Indenture;

         (c)  immediately before and immediately after giving effect to such
transaction, or series of transactions (including, without limitation, any
Indebtedness incurred or anticipated to be incurred in connection with or in
respect of such transaction or series of transactions), no Default or Event of
Default shall have occurred and be continuing;

                                       35

<PAGE>

     (d)  immediately after giving effect to such transaction or series of
transactions, the Company or the surviving entity (in the case of a merger or
consolidation involving the Company or any sale, assignment, conveyance, lease,
transfer or other disposition of all or substantially all of the Company's
assets) could incur One Dollar ($1.00) of Indebtedness pursuant to clause
(a)(iv) of Section 4.09 hereof and the surviving entity shall have a
Consolidated Net Worth equal to or greater than the Consolidated Net Worth of
the Company immediately prior to such transaction; and

     (e)  the Company or the surviving entity shall have delivered to the
Trustee an Officers' Certificate and an Opinion of Counsel, each stating that
(i) such consolidation, merger, sale, assignment, conveyance, lease, transfer or
other disposition complies with this Section 5.01, (ii) if a supplemental
indenture is required in connection with such transaction or series of
transactions, such supplemental indenture complies with this Section 5.01, and
(iii) all conditions precedent in this Indenture relating to the transaction or
series of transactions have been satisfied.

Section 5.02 Successor Entity Substituted.
             ----------------------------

     Upon any consolidation, merger or any transfer of all or substantially all
of the assets of the Company in accordance with Section 5.01, the surviving
entity formed by such consolidation or into or with which the Company is merged
or to which such transfer is made shall succeed to, and be substituted for, and
may exercise every right and power of, the Company under this Indenture with the
same effect as if such surviving entity had been named as the Company herein and
the Company shall be discharged from all obligations and covenants under the
Indenture and the Notes.

                                   ARTICLE VI
                              DEFAULT AND REMEDIES

Section 6.01 Events of Default.
             -----------------

     An "Event of Default" occurs if:
         ----------------

     (a)  the Company defaults in the payment of the Principal of or premium on
any Note as and when due and payable; or

     (b)  the Company defaults in the payment of interest on any Note when the
same becomes due and payable and continuance of any such default for a period of
thirty (30) days;

     (c)  the Company defaults in the performance, or breach, of any material
covenant, obligation or agreement in the Notes or this Indenture (other than
defaults specified in clause (a) or (b) above), and such default or breach
continues for a period of sixty (60) days after written notice to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least
twenty-five percent (25%) in aggregate principal amount of the outstanding
Notes;

     (d)  failure by the Company or any of its Subsidiaries (i) to make any
payment when due with respect to any other Indebtedness under one or more
classes or issues of Indebtedness which one or more classes or issues of
Indebtedness are in an aggregate principal amount of Twenty Million Dollars
($20,000,000) or more and, with respect to Indebtedness under the

                                       36

<PAGE>

Credit Agreement, such failure results in acceleration of the maturity thereof;
or (ii) to perform any term, covenant, condition, or provision of one or more
classes or issues of Indebtedness which one or more classes or issues of
Indebtedness are in an aggregate principal amount of Twenty Million Dollars
($20,000,000) or more, which failure, in the case of this clause (ii), results
in an acceleration of the maturity thereof;

     (e)  one or more judgments, orders or decrees for the payment of money in
excess of Fifteen Million Dollars ($15,000,000) (to the extent not covered by
insurance), either individually or in an aggregate amount, shall be entered
against the Company or any of its Subsidiaries or any of their respective
properties and shall not be discharged and there shall have been a period of
sixty (60) days during which a stay of enforcement of such judgment or order, by
reason of pending appeal or otherwise, shall not be in effect;

     (f)  the Company or any Material Subsidiary of the Company pursuant to or
within the meaning of any Bankruptcy Law: (i) commences a voluntary case or
proceeding with respect to itself, (ii) consents to the entry of an order for
relief against it in an involuntary case or proceeding, (iii) consents to the
appointment of a Custodian of it or for all or any material part of its
property, (iv) makes a general assignment for the benefit of its creditors, (v)
consents to or acquiesces in the institution of bankruptcy or insolvency
proceedings against it, (vi) shall generally not pay its debts when such debts
become due or shall admit in writing its inability to pay its debts generally,
or (vii) takes any corporate action in furtherance of or to facilitate,
conditionally or otherwise, any of the foregoing;

     (g)  a court of competent jurisdiction enters a decree, judgment or order
under any Bankruptcy Law that: (i) is for relief against the Company or any
Material Subsidiary of the Company in an involuntary case or proceeding, (ii)
appoints a Custodian of the Company or any Material Subsidiary of the Company
for all or substantially all of its properties, or (iii) orders the winding-up
or liquidation of the Company or any Material Subsidiary of the Company, and in
each case the order or decree remains unstayed and in effect for sixty (60)
days; or

     (h)  this Indenture ceases to be in full force and effect or ceases to give
the Trustee, in any material respect, the liens, rights, powers and privileges
purported to be created thereby, in each case, as determined by a court of
competent jurisdiction.

Section 6.02 Acceleration.
             ------------

     (a)  If an Event of Default (other than an Event of Default specified in
clause (f) or (g) of Section 6.01 with respect to the Company or any Material
Subsidiary of the Company) occurs and is continuing, then the Trustee or the
Holders of at least twenty-five percent (25%) in aggregate principal amount of
the outstanding Notes may, by written notice to the Company and the Trustee, and
the Trustee upon the request of the Holders of not less than twenty-five percent
(25%) in aggregate principal amount of the outstanding Notes shall, subject in
each case to Section 10.02(e), declare the Principal of and accrued and unpaid
interest, if any, on all the Notes on the date of such declaration to be due and
payable immediately (the "Default Amount"). Upon any such declaration, the
                          --------------
Default Amount shall become due and payable immediately. If an Event of Default
specified in clause (f) or (g) of Section 6.01 with respect to the Company
occurs and is continuing, then the Default Amount on all of the Notes shall ipso
                                                                            ----
facto become
-----

                                       37

<PAGE>

and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

     (b)  After a declaration of acceleration, the Required Holders may, by
notice to the Trustee, rescind such declaration of acceleration if all existing
Events of Default have been cured or waived, other than nonpayment of the
Default Amount on the Notes that have become due solely as a result of such
acceleration and if the rescission of acceleration would not conflict with any
judgment, order or decree by a court of competent jurisdiction. No such
rescission shall affect any subsequent Default or impair any right consequent
thereto.

Section 6.03 Other Remedies.
             --------------

     (a)  If an Event of Default occurs and is continuing, the Trustee may,
subject to Section 10.02(e), pursue any available remedy by proceeding at law or
in equity to collect the payment of Principal of, or interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture as may
be required or permitted thereunder.

     (b)  The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder 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 Defaults.
             ------------------

     Subject to Sections 6.02, 6.07 and 7.02, the Required Holders by notice to
the Trustee may waive an existing or potential Default or Event of Default and
its consequences, except a Default in the payment of Principal of or interest on
any Note as specified in clauses (a) and (b) of Section 6.01 or in respect of
any provision hereof which cannot be modified or amended without the consent of
the Holder so affected pursuant to Section 7.02. When a Default or Event of
Default is so waived, it shall be deemed cured and ceases to exist, but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

Section 6.05 Control by Required Holders.
             ---------------------------

     The Required Holders 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 including any remedies provided for in Section 6.03.
Subject to Section 6.01, 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 Holder, or that may involve the
Trustee in personal liability unless the Trustee has asked for and received
indemnification reasonably satisfactory to it against any loss, liability or
expense caused by its following such direction; provided, that the Trustee may
                                                --------
take any other action deemed proper by the Trustee which is not inconsistent
with such direction.

Section 6.06 Limitation on Suits.
             -------------------

                                       38

<PAGE>

     (a)     A Holder may not pursue any remedy with respect to this Indenture
or the Notes unless (i) the Holder gives to the Trustee notice of a continuing
Event of Default, (ii) Holders of at least twenty-five percent (25%) in
principal amount of the outstanding Notes make a written request to the Trustee
to pursue the remedy, (iii) such Holders offer to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense to be
incurred in compliance with such request, (iv) the Trustee does not comply with
the request within thirty (30) days after receipt of the request and the offer
of indemnity and (v) during such thirty (30) day period the Required Holders do
not give the Trustee a direction which, in the opinion of the Trustee, is
inconsistent with the request.

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

Section 6.07 Rights of Holders To Receive Payment.
             ------------------------------------

     Notwithstanding any other provision of this Indenture, except as set forth
in Article X, the right of any Holder to receive payment of Principal of and
interest 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, shall not be impaired or affected without the consent of such
Holder.

Section 6.08 Collection Suit by Trustee
             --------------------------

     If an Event of Default in payment of Principal or interest specified in
clause (a) or (b) 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 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 reasonable 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, taxes,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relating to the Company or any other
obligor upon the Notes, any of their respective creditors or any of their
respective property and shall be entitled and empowered to collect and receive
any monies or other securities or property payable or deliverable upon the
conversion or exchange of the Notes or upon any such claims and to distribute
the same, and any Custodian in any such judicial proceedings is hereby
authorized by each Holder to make such payments to the Trustee and, in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to first pay to the Trustee any amount due to it for the reasonable
compensation, expenses, taxes, disbursements and advances of the Trustee, its
agent and counsel, and any other amounts due the Trustee under

                                       39

<PAGE>

     Section 6.07. Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Note
holder 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 Holder in any such proceeding.

Section 6.10 Priorities.
             ----------

     (a)  If the Trustee collects any money pursuant to this Article VI, it
shall pay out the money in the following order: (i) first, to the Trustee for
amounts due under Section 6.07, (ii) second, to Holders for Principal and
interest owing under the Notes, ratably, according to the amounts due and
payable on the Notes, in the following order of priority: first to interest and
lastly to Principal; and (iii) third, to the Company or any other obligor on the
Notes, as their interests may appear, or as a court of competent jurisdiction
may direct.

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

Section 6.11 Undertaking for Costs.
             ---------------------

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

Section 6.12 Rights and Remedies Cumulative.
             ------------------------------

     No right or remedy herein conferred upon or reserved to the Trustee or to
the Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

Section 6.13 Delay or Omission Not Waiver.
             ----------------------------

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

                                       40

<PAGE>

                                  ARTICLE VII
                                    TRUSTEE

     The Trustee hereby accepts the trust imposed upon it by this Indenture and
covenants and agrees to perform the same, as herein expressed.

Section 7.01 Duties of Trustee.
             -----------------

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

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

             (i)   The Trustee need perform only those duties as are
     specifically set forth in this Indenture and no others, and no covenants or
     obligations shall be implied in this Indenture that are adverse to the
     Trustee.

             (ii)  In the absence of bad faith on its part, the Trustee may
     conclusively rely, as to the truth of the statements and the correctness of
     the opinions expressed therein, upon certificates or opinions furnished to
     the Trustee and conforming to the requirements of this Indenture. However,
     the Trustee shall examine the certificates and opinions to determine
     whether or not they conform to the requirements of this Indenture but need
     not verify the accuracy of the contents thereof.

     (c)     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:

             (i)   this paragraph does not limit the effect of paragraph (b) of
     this Section 7.01;

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

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

     (d)     The Trustee may refuse to perform any duty or exercise any right or
power unless it receives indemnity reasonably satisfactory to it against any
loss, liability or expense.

     (e)     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 in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

                                       41

<PAGE>

     (f)     Whether or not therein expressly so provided, every provision of
this Indenture that in any way relates to the Trustee is subject to paragraphs
(a), (b), (c), (d) and (e) of this Section 7.01.

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

Section 7.02 Rights of Trustee.
             -----------------

     Subject to Section 7.01:

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

     (b)     Before the Trustee acts or refrains from acting, it may consult
with counsel and may require an Officers' Certificate or an Opinion of Counsel,
which shall conform to Sections 11.04 and 11.05 hereof. 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 consult with counsel and the advice of such counsel
or any Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon.

     (d)     The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any agent (other than the
negligence or misconduct of an agent who is an employee of the Trustee)
appointed with due care.

     (e)     The Trustee shall not be liable for any action that it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, that the Trustee's conduct does not constitute
negligence or bad faith.

     (f)     The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, notice, request, direction, consent, order, bond, debenture, or other
paper or document, but the Trustee, in its discretion, may make such further
inquiry or investigation into such facts or matters as it may see fit, and, if
the Trustee shall determine to make such further inquiry or investigation, it
shall be entitled, upon reasonable notice to the Company, to examine the books,
records, and premises of the Company, personally or by agent or attorney at the
sole cost of the Company and shall incur no liability or additional liability of
any kind by reason of such inquiry or investigation.

     (g)     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 against the costs, expenses and liabilities which may be incurred by
it in compliance with such request, order or direction.

     (h)    The Trustee shall not be deemed to have notice of any Default or
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.

     (i)    The rights, privileges, protections, immunities and benefits given
to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and each agent, custodian and other Person employed to act hereunder.

     (j)    The Trustee may request that the Company deliver an Officers'
Certificate setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers' Certificate may be signed by any person authorized to sign an
Officers' Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superceded.

Section 7.03 Individual Rights of Trustee.
             ----------------------------

                                       42

<PAGE>

     The Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Company, any Subsidiary of the
Company 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 hereof.

Section 7.04 Trustee's Disclaimer.
             --------------------

     The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Notes. Further, the Trustee shall not be accountable for the
Company's use of the proceeds from the Notes, nor be responsible for 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 if it is
known to the Trustee, the Trustee shall mail to each Holder, as their names and
addresses appear on the Holder list described in Section 2.05 hereof, notice of
the Default or Event of Default within thirty (30) days after such Default or
Event of Default has occurred, unless such Default or Event of Default shall
have been cured or waived. Except in the case of a Default or an Event of
Default in payment of Principal of or interest on, any Note, and a Default or
Event of Default that resulted from the failure to comply with Section 3.04,
4.15 or 5.01 hereof, the Trustee may withhold the notice if and so long as its
Board of Directors, the executive committee of its Board of Directors or a
committee of its directors and/or Trust Officers in good faith determines that
withholding the notice is in the interest of the Holders.

Section 7.06 Reports by Trustee to Holders.
             -----------------------------

     (a)     If required by law, within sixty (60) days after each May 15
beginning with the May 15 following the date of this Indenture, the Trustee
shall mail to the Company and the Holders, at the Company's expense, a brief
report dated as of such reporting date that complies with TIA (s)313(a) (but if
no event described in TIA (s)313(a) has occurred within the twelve months
preceding the reporting date, no report need be transmitted). The Trustee also
shall comply with TIA (s)313(b)(2) to the extent applicable. The Trustee shall
also transmit by mail all reports as required by TIA (s)313(c).

     (b)     A copy of each report at the time of its mailing to Holders shall
be filed with the SEC and each stock exchange or market on which the Notes are
listed or quoted. The Company shall notify the Trustee when the Notes are listed
on any stock exchange or quoted on any market.

Section 7.07 Compensation and Indemnity.
             --------------------------

     (a)     The Company shall pay to the Trustee from time to time such
compensation for all services rendered by it hereunder as the Company and the
Trustee shall from time to time agree in writing. 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 tax
obligations imposed on the Trustee related to this Indenture and all

                                       43

<PAGE>

reasonable out-of-pocket expenses incurred or made by it. Such expenses shall
include the reasonable fees and expenses of the Trustee's agents and counsel.

     (b)     The Company shall indemnify the Trustee and its agents for, and
hold them harmless against, any loss, liability or expense incurred by them
without negligence, bad faith or willful misconduct on their part, arising out
of or in connection with the administration of this trust including the
reasonable costs and expenses of enforcing this Indenture against the Company
(including this Section 7.07) and of defending themselves against any claim
(whether asserted by any Holder or the Company) or liability in connection with
the exercise or performance of any of their rights, powers or duties hereunder.
The Trustee shall notify the Company promptly of any claim asserted against the
Trustee for which it may seek indemnity. The Company shall defend the claim and
the Trustee shall cooperate in the defense. The Trustee may have separate
counsel and the Company shall pay the reasonable fees and expenses of such
counsel; provided that the Company will not be required to pay such fees and
         --------
expenses if they assume the Trustee's defense and there is no conflict of
interest between the Company and the Trustee in connection with such defense as
reasonably determined by the Trustee. The Company need not pay for any
settlement made without its written consent. The Company need not reimburse any
expense or indemnify against any loss or liability to the extent incurred by the
Trustee through its negligence, bad faith or willful misconduct.

     (c)     To secure the Company's payment obligations in this Section 7.07,
the Trustee shall have a lien prior to the Notes on all assets or money held or
collected by the Trustee, in its capacity as Trustee, except assets or money
held in trust to pay Principal of or interest on Notes.

     (d)     When the Trustee incurs expenses or renders services after an Event
of Default specified in Section 6.01(f) or (g) occurs, such expenses and the
compensation for such services are intended to constitute expenses of
administration under any Bankruptcy Law.

     (e)     The provisions of this Section 7.07 shall survive the termination
of this Indenture.

Section 7.08 Replacement of Trustee.
             ----------------------

     (a)     A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section 7.08.

     (b)     The Trustee may resign by so notifying the Company in writing at
least thirty (30) days prior to the date of the proposed resignation; provided,
                                                                      --------
however, that no such resignation shall be effective until a successor Trustee
-------
has accepted its appointment pursuant to this Section 7.08. The Required Holders
may remove the Trustee by so notifying the Company and the Trustee and may
appoint a successor Trustee with the Company's consent. The Company may remove
the Trustee if: (i) the Trustee fails to comply with Section 7.01 or 7.10, (ii)
the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law, (iii) a receiver
Custodian or other public officer takes charge of the Trustee or its property or
(iv) the Trustee becomes incapable of acting.

     (c)     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 of such
event and shall promptly appoint a successor Trustee. Within one (1) year after
the successor Trustee takes office, the Required

                                       44

<PAGE>

Holders may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.

     (d)     A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided in Section 7.07, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall mail notice of its succession to each
Holder.

     (e)     If a successor Trustee does not take office within sixty (60) days
after the retiring Trustee resigns or is removed, the retiring Trustee (at the
Company's expense), the Company or the Holders of at least ten percent (10%) in
principal amount of the outstanding Notes may petition any court of competent
jurisdiction for the appointment of a successor Trustee.

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

     (g)     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.

Section 7.10 Eligibility; Disqualification.
             -----------------------------

     This Indenture shall always have a Trustee who satisfies the requirement of
TIA (s)(s)310(a)(1) and 310(a)(5). The Trustee (or in the case of a corporation
included in a bank holding company system, the related bank holding company)
shall always have a combined capital and surplus of at least Fifty Million
Dollars ($50,000,000) as set forth in its most recent published annual
report of condition. In addition, if the Trustee is a corporation included in a
bank holding company system, the Trustee, independently of such bank holding
company, shall meet the capital requirements of TIA (s)310(a)(2). The Trustee
shall comply with TIA (s)310(b) including the optional provision permitted by
the second sentence of TIA (s)309(b)(9); provided, however, that there shall be
                                         --------  -------
excluded from the operation of TIA (s)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 (s)310(b)(1) are met.

Section 7.11 Preferential Collection of Claims Against Company.
             -------------------------------------------------

                                       45

<PAGE>

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

                                  ARTICLE VIII
                             DISCHARGE OF INDENTURE;
                                   DEFEASANCE

Section 8.01  Discharge of Indenture.
              ----------------------

     (a)  This Indenture shall cease to be of further effect (except that the
Company's obligations under Sections 7.07, 8.04 and 8.05 shall survive) as to
all outstanding Notes when all such Notes theretofore authenticated and
delivered (except lost, stolen or destroyed Notes which have been replaced or
paid and Notes for the payment of which 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 and the Company has paid all sums payable hereunder. In
addition, the Company may terminate all of its obligations under this Indenture
(except the Company's obligations under Sections 7.07, 8.04 and 8.05) if:

          (i)    either (A) pursuant and subject to compliance with Article III,
     the Company shall have given notice to the Trustee and mailed a notice of
     redemption to each Holder of the redemption of all of the Notes or (B) all
     Notes have otherwise become due and payable in accordance with the terms of
     this Indenture (including the provisions of Article X) or in accordance
     with the terms of this Indenture shall become due and payable within one
     (1) year or are to be called for redemption within one (1) year under
     arrangements satisfactory to the Trustee upon delivery of notice;

          (ii)   the Company shall have irrevocably deposited or caused to be
     deposited with the Trustee or a trustee satisfactory to the Trustee, under
     the terms of an irrevocable trust agreement in form and substance
     satisfactory to the Trustee, as trust funds in trust solely for the benefit
     of the Holders for that purpose, U.S. Legal Tender sufficient to pay
     Principal of and interest, if any, on the outstanding Notes to redemption;
     provided that the Trustee shall have been irrevocably instructed to apply
     such U.S. Legal Tender to the payment of said Principal and interest with
     respect to the Notes;

          (iii)  the Company shall have delivered to the Trustee an Officers'
     Certificate and an Opinion of Counsel, each stating that all conditions
     precedent providing for the termination of the Company's obligation under
     the Notes and this Indenture have been complied with; and

          (iv)   the Company shall have paid all sums payable by it hereunder.

     (b)  Notwithstanding the foregoing paragraph, the Company's obligations in
Sections 2.03, 2.04, 2.05, 2.06, 2.07, 4.01, 4.02, 7.07, 7.08, 8.03, 8.04 and
8.05 hereof shall survive until the Notes are no longer outstanding. After the
Notes are no longer outstanding, the Company's obligations in Sections 7.07,
8.04 and 8.05 hereof shall survive.

                                       46

<PAGE>

     (c)  After such delivery or irrevocable deposit the Trustee upon request
shall acknowledge in writing the discharge of the Company's obligations under
the Notes and this Indenture except for those surviving obligations specified
above.

Section 8.02  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 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 paragraph (e) below and to have satisfied
all its other obligations under such Notes and this Indenture insofar as such
Notes are concerned (and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same), except for the following,
which shall survive until otherwise terminated or discharged hereunder: (i) the
rights of holders of outstanding Notes to receive solely from the trust fund
described in paragraph (d) below and as more fully set forth in such paragraph,
payments in respect of the principal of, premium, if any, and interest on such
Notes when such payments are due, (ii) the Company's obligations with respect to
such Notes under Sections 2.03, 2.04, 2.05, 2.06, 2.07, 4.02, 7.07, 7.08, 8.03,
8.04 and 8.05, (iii) the rights, powers, trusts, duties and immunities of the
Trustee hereunder, and (iv) this Section 8.02. Subject to compliance with this
Section 8.02, 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 shall be released and discharged
from its obligations under any covenant contained in Article V and in Sections
3.04, and 4.09 through 4.16 with respect to the outstanding Notes on and after
the date the conditions set forth in paragraph (d) 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 may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such
covenant, whether directly or indirectly, by reason of any reference elsewhere
herein to any such covenant or by reason of any reference in any such covenant
to any other provision herein or in any other document, and such omission to
comply shall not constitute a Default or an Event of Default under Section 6.01,
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:

                                       47

<PAGE>

          (i)   The Company shall have irrevocably deposited in trust with the
     Trustee (or another trustee satisfying the requirements of Section 7.10 who
     shall agree to comply with the provisions of this Section 8.02 applicable
     to it), pursuant to an irrevocable trust and security agreement in form and
     substance satisfactory to the Trustee, U.S. Legal Tender or U.S. Government
     Obligations maturing as to principal and interest at such times, or a
     combination thereof, in such amounts 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
     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 on 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;

          (ii)  (A) No Default or Event of Default shall have occurred or be
     continuing on the date of such deposit, and (B) no Default or Event of
     Default under Section 6.01(f) and (g) shall occur on or before the 123rd
     day after the date of such deposit;

          (iii) Such legal defeasance or covenant defeasance shall not result in
     a Default under this Indenture or a breach or violation of, or constitute a
     default or event of default under, any other instrument or agreement to
     which the Company is a party or by which it or its property is bound;

          (iv)  In the case of a legal defeasance under paragraph (b) above, the
     Company has delivered to the Trustee an Opinion of Counsel stating that (A)
     the Company has received from, or there has been published by, the Internal
     Revenue Service a ruling or (B) since the date of this Indenture, there has
     been a change in the applicable federal income tax law, in either case to
     the effect that, and based thereon such opinion shall confirm that, the
     holders of the Notes shall not recognize income, gain or loss for federal
     income tax purposes as a result of such deposit, defeasance and discharge
     and shall be subject to federal income tax on the same amounts and in the
     same manner and at the same times as would have been the case if such
     deposit, defeasance and discharge had not occurred; and, in the case of a
     covenant defeasance under paragraph (c) above, the Company shall deliver to
     the Trustee an Officers' Certificate and an Opinion of Counsel, in form and
     substance reasonably satisfactory to the Trustee, to the effect that
     holders of the Notes shall not recognize income, gain or loss for federal
     income tax purposes as a result of such deposit and defeasance and shall be
     subject to federal income tax on the same amounts, in the same manner and
     at the same times as would have been the case if such deposit and
     defeasance had not occurred;

          (v)   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, after the passage of one hundred twenty-three (123) days
     following the deposit, the trust funds shall not be subject to any
     applicable bankruptcy, insolvency, reorganization or similar law affecting
     creditors' rights generally;

                                       48

<PAGE>

          (vi) 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
     8.02 have been complied with; provided, that no deposit under clause (i)
     shall be effective to terminate the obligations of the Company under the
     Notes or this Indenture prior to the passage of one hundred twenty three
     (123) days following such deposit.

     (e)  All money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee, collectively
for purposes of this paragraph (e), the "Trustee") pursuant to paragraph (d)
                                         -------
above in respect of the outstanding Notes shall be held in trust and applied by
the Trustee, in accordance with the provisions of such Notes and this Indenture,
to the payment, either directly or through any Paying Agent as the Trustee may
determine, to the Holders of such Notes of all sums due and to become due
thereon in respect of Principal, and interest, but such money need not be
segregated from other funds except to the extent required by law.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to paragraph (d) above or the Principal and interest received
in respect thereof other than any such tax, fee or other charge which by law is
for the account of the Holders of the outstanding Notes.

     Anything in this Section 8.02 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request, in
writing, by the Company any money or U.S. Government Obligations held by it as
provided in paragraph (d) above which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect an equivalent legal defeasance
or covenant defeasance.

Section 8.03  Application of Trust Money.
              --------------------------

     The Trustee shall hold in trust U.S. Legal Tender or U.S. Government
Obligations deposited with it pursuant to Sections 8.01 and 8.02, and shall
apply the deposited U.S. Legal Tender and the U.S. Legal Tender from U.S.
Government Obligations in accordance with this Indenture to the payment of
Principal of and interest on the Notes.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 8.01 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Outstanding Notes.

Section 8.04  Repayment to the Company.
              ------------------------

     Subject to Sections 7.07, 8.01 and 8.02, the Trustee shall, subject to
Article X, promptly pay to the Company, upon receipt by the Trustee of an
Officers' Certificate, any excess money, determined in accordance with Sections
8.02(d)(i) and (e), 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 or interest that remains unclaimed for two (2) years, provided,
                                                                   --------
however, that the Trustee and the Paying Agent before being required to make any
-------
payment may, but need not, at the expense of the Company, 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 thirty (30) days
from the

                                       49

<PAGE>

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, Holders
entitled to money must look solely to the Company for payment as general
creditors unless an applicable abandoned property law designates another person.

Section 8.05  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 or by reason of 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 or interest on of 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.

Section 8.06  Acknowledgment of Discharge by Trustee.
              --------------------------------------

     After (a) the conditions of Section 8.02 have been satisfied, (b) the
Company has paid or caused to be paid all other sums payable hereunder by the
Company, and (c) 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 (d) 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
8.01.

                                   ARTICLE IX
                       AMENDMENTS, SUPPLEMENTS AND WAIVERS

Section 9.01  Without Consent of Holders.
              --------------------------

     The Company, when authorized by its Board Resolution, and the Trustee,
together, may without notice to or the consent of any Holder amend, waive or
supplement this Indenture or the Notes:

     (a)  to cure any ambiguity, defect or inconsistency or to make any other
provisions with respect to matters or questions arising under this Indenture;
provided that such action does not materially adversely affect the rights of any
--------
Holder;

     (b)  to add to the covenants of the Company for the benefit of the Holders,
or to surrender any right or power herein conferred upon the Company, or to
provide any additional rights or benefits to the Holders;

                                       50

<PAGE>

     (c) to evidence the succession of another person to the Company, and the
assumption by any such successor of the obligations of the Company herein and in
the Notes in accordance with Article V;

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

     (e) to make any other change that does not adversely affect the rights of
any Holders hereunder;

     (f) to comply with the TIA; or

     (g) to comply with any requirements of the SEC in connection with the
qualification of this Indenture under the TIA;

provided that 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.
`               -----------------------

     (a) Subject to Section 6.07, the Company when authorized by its Board
Resolution, and the Trustee, together, may amend or supplement this Indenture or
the Notes, without notice to any Holders. However, without the consent of each
Holder affected, no amendment, supplement or waiver, including a waiver pursuant
to Section 6.04, may:

          (i)   reduce the principal amount of any Note or premium, if any, with
     respect thereto;

          (ii)  change the Maturity Date of, or alter the redemption or
     repurchase or other provisions of the Notes, in a manner that adversely
     affects the rights of any Holder;

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

          (iv)  make any changes in the provisions concerning waivers of
     Defaults or Events of Default by Holders of the Notes or the rights of
     Holders to recover the Principal of or interest on, with respect to,
     any Note;

          (v)   make any change in or affecting the ranking of the Notes with
     respect to any other obligation of the Company or any Subsidiary in a way
     that adversely affects the rights of any Holder;

          (vi)  reduce the interest rate or extend the time for payment of
     interest, if any, on the Notes;

          (vii) make the Principal of or the interest on, any Note payable with
     anything, at any place of payment or in any manner other then as provided
     for in this Indenture and the Note as in effect on the date hereof;

                                       51

<PAGE>

          (viii) following the mailing of a Change of Control Offer, modify the
     provisions of this Indenture with respect to such Change of Control Offer
     in a manner adverse to any Holder; or

          (ix)   make any changes in this Section 9.02 in a manner that
     adversely affects the rights of any Holder.

     (b)  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.

     (c)  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 or
waiver.

Section 9.03  Compliance with TIA.
              -------------------

     Every amendment, waiver or supplement of this Indenture or the Notes shall
comply with the TIA as then in effect.

Section 9.04  Revocation and Effect of Consents.
              ---------------------------------

     (a) 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, prior to becoming effective, any such Holder or subsequent Holder
may revoke the consent as to his Note or portion of his Note by notice to the
Trustee or the Company if such notice is received by the Trustee or the Company
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. Notwithstanding the above, nothing in this paragraph shall
impair the right of any Holder under (s)316(b) of the TIA.

     (b) 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 ninety (90) days after such record date unless
consents from Holders of the principal amount of Notes required hereunder for
such amendment, supplement or waiver to be effective shall have been given and
not revoked within such ninety (90) day period.

     (c) After an amendment, supplement or waiver becomes effective, it shall
bind every Holder, unless it makes a change described in any of clauses (i)
through (vii) of Section 9.02, in which case, the amendment, supplement or
waiver shall bind only each Holder of a Note who

                                       52

<PAGE>

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, however,
                                                              --------  -------
that any such waiver shall not impair or affect the right of any Holder to
receive payment of Principal of and interest on a Note, on or after the
respective dates set for such amounts to become due and payable expressed in
such Note, or to bring suit for the enforcement of any such payment on or after
such respective dates.

Section 9.05  Notation on or Exchange of Notes.
              --------------------------------

     If an amendment, supplement or waiver changes the terms of a Note, the
Trustee may require the Holder of the Note to deliver the Note to the Trustee.
The Trustee may place an appropriate notation on the Note about the changed
terms and return the Note 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. Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.

Section 9.06  Trustee To Sign Amendments, Etc.
              -------------------------------

     Subject to the next sentence, the Trustee shall execute any amendment,
supplement or waiver authorized pursuant to this Article IX, provided, however,
                                                             --------  -------
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 is authorized or permitted by this Indenture.

                                   ARTICLE X
                                  SUBORDINATION

Section 10.01 Notes Subordinated to Senior Indebtedness.
              -----------------------------------------

     The Company covenants and agrees, and each Holder (and each Person holding
any Note, whether upon original issue, or upon transfer, assignment or exchange
thereof) of the Notes, by its acceptance thereof, likewise covenants and agrees
that: (a) all Notes shall be issued subject to the provisions of this Article X;
(b) the payment of the Principal of, and interest on, the Notes by the Company
shall, to the extent and in the manner herein set forth, be subordinated and
junior in right of payment to the prior payment in full, in cash or Cash
Equivalents, of the Senior Indebtedness; and (c) the subordination is for the
benefit of, and shall be relied upon and be enforceable directly by, the holders
of Senior Indebtedness. The Company and each Holder hereby agree not to amend,
modify or change in any manner any provision of this Article X (and any defined
term used in this Article X) so that the terms and conditions hereof, as so
amended, modified or changed, are less favorable to the holders of the Senior
Indebtedness and their Representative than the terms hereof on the Issue Date,
without the prior written consent of the necessary holders of Senior
Indebtedness as required under the Credit Agreement.

                                       53

<PAGE>

Section 10.02  Suspension of Payment on Notes in Certain Events.
               ------------------------------------------------

     (a) If (i) any default occurs and is continuing after the expiration of any
applicable cure period (each a "Senior Debt Payment Default"), in the payment
                                ---------------------------
when due, whether at maturity, upon any redemption, by declaration or otherwise,
of any Principal of, or interest on the Senior Indebtedness, or fees or other
amounts due under the terms of the Credit Agreement, and (ii) the Representative
of the holders of the Senior Indebtedness gives written notice (a "Default
                                                                   -------
Notice") of such Senior Debt Payment Default to the Trustee, then no payment of
------
any kind or character shall be made by or on behalf of the Company or any other
Person on its behalf with respect to any Principal of, or interest on or fees or
other amounts due with respect to, the Notes or to redeem, repurchase or
otherwise acquire any of the Notes for cash or property or otherwise, until such
payment is made in full or Senior Debt Payment Default has been cured to the
satisfaction of the Representative of the Holders of the Senior Indebtedness,
or waived to the satisfaction of the Representative of the Holders of the Senior
Indebtedness.

     (b) If (i) any event of default other than a Senior Debt Payment Default (a
"Senior Debt Other Default") occurs and is continuing with respect to the Senior
 -------------------------
Indebtedness, as such Senior Debt Other Default is defined in the instrument
creating or evidencing such Senior Indebtedness, permitting the holders of such
Senior Indebtedness to accelerate the maturity thereof, and (ii) the
Representative of the holders of the Senior Indebtedness gives a Default Notice
to the Trustee, then until the earlier of (A) the Trustee receiving notice from
the Representative of the holders of the Senior Indebtedness terminating the
Blockage Period (as defined below), (B) the date on which the Senior Debt Other
Default giving rise to the Blockage Period is cured to the satisfaction of the
Representative of the Holders of the Senior Indebtednessor or waived to the
satisfaction of the Representative of the Holders of the Senior Indebtedness, or
(C) one hundred eighty (180) days after the delivery of such Default Notice (the
"Blockage Period"), neither the Company nor any other Person on its behalf shall
 ---------------
make any payment of any kind or character with respect to any Principal of, or
interest on, or fees or other amounts due with respect to the Notes, or redeem,
repurchase or otherwise acquire any of the Notes for cash or property or
otherwise; provided, however, that if such Senior Indebtedness has not been
           --------  -------
accelerated or becomes the subject of judicial proceedings within the Blockage
Period, then the Company shall resume making any and all required payments in
respect of the Notes upon expiration of the Blockage Period. At the expiration
or termination, as applicable, of such Blockage Period, the Company shall
promptly pay to the Trustee all sums not paid during such Blockage Period as a
result of this subsection (b). Notwithstanding anything herein to the contrary,
in no event will a Blockage Period extend beyond one hundred eighty (180) days
from the date of delivery of a Default Notice of the Senior Debt Other Default
and only one such Blockage Period may be commenced within any period of three
hundred sixty (360) consecutive days. No Senior Debt Other Default or event
which, with the giving of notice and/or lapse of time or otherwise, would become
a Senior Debt Other Default which existed on the date of the commencement of
such Blockage Period, may be used as the basis for declaring any subsequent
Blockage Period unless such Senior Debt Other Default or event, as the case may
be, shall in the interim have been cured or waived for a period of not less than
ninety (90) consecutive days.

     (c) In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee or any Holder when such payment is prohibited by
Sections 10.02(a) and (b), then unless and until such payment is no longer
prohibited by this Section 10.02, such payment shall be held in trust for the
benefit of, and shall as soon as practicable be paid over or delivered to, the
Representative of the holders of the Senior Indebtedness. No amount paid by the
Company, or any other Person on its behalf, to the Trustee or any Holder of the
Notes, and paid over by such

                                       54

<PAGE>

Person to the Representative of the holders of the Senior Indebtedness pursuant
to this Article X shall, as between the Company and the Holders of the Notes, be
deemed a payment by the Company to or on account of any payments due in respect
of the Notes.

     (d) The Company shall give prompt written notice to the Trustee of any
Senior Debt Payment Default or any Senior Debt Other Default, under the Senior
Indebtedness or under any agreement pursuant to which Senior Indebtedness may
have been issued. Failure to give such notice shall not affect the subordination
of the Notes to the Senior Indebtedness provided in this Article X.

     (e) Nothing contained in this Article X shall limit the right of the
Trustee or the Holders of Notes to take any action to accelerate the maturity of
the Notes pursuant to Section 6.02 or to pursue any rights or remedies available
under this Indenture or otherwise; provided that the Trustee or the Holders
                                   --------
shall, prior to commencing any such action, provide the Representative of the
holders of the Senior Indebtedness with five (5) days prior written notice of
its intention to take such action; provided further that all Senior Indebtedness
                                   -------- -------
thereafter due or declared to be due shall first be paid in full, in cash or
Cash Equivalents, before the Holders are entitled to receive any payment of any
kind or character with respect to Principal of, or interest on or fees or other
amounts due with respect to, the Notes.

Section 10.03 Notes Subordinated to Prior Payment of All Senior Indebtedness on
              --------------------------------------------------------------
Dissolution, Liquidation or Reorganization of Company.
-----------------------------------------------------

     (a) Upon any payment or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, to creditors upon any
liquidation, dissolution, winding-up, reorganization, assignment for the benefit
of creditors or marshaling of assets of the Company or in a bankruptcy,
reorganization, insolvency, receivership or other similar proceeding relating to
the Company or its property, whether voluntary or involuntary, all Senior
Indebtedness shall first be paid in full in, cash or Cash Equivalents (or such
payment shall be duly provided for), before any payment or distribution of any
kind or character is made on account of any Principal of, or interest on, or
fees or other amounts due with respect to, the Notes, or for the acquisition of
any of the Notes for cash or property or otherwise. Upon any such dissolution,
winding-up, liquidation, reorganization, receivership or similar proceeding, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to which the Holders of the Notes or
the Trustee under this Indenture would be entitled, except for the provisions
hereof, shall be paid by the Company or by any receiver, trustee in bankruptcy,
liquidating trustee, agent or other Person making such payment or distribution,
or by the Holders or by the Trustee under this Indenture if received by them, to
the Representative of the holders of the Senior Indebtedness, for application to
the payment of Senior Indebtedness remaining unpaid until all such Senior
Indebtedness has been paid in full, in cash or Cash Equivalents, after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of Senior Indebtedness.

     (b) To the extent any payment of Senior Indebtedness (whether by or on
behalf of the Company, as proceeds of security or enforcement of any right of
setoff or otherwise) is declared to be fraudulent or preferential, set aside or
required to be paid to any receiver, trustee in bankruptcy, liquidating trustee,
agent or other similar Person under any bankruptcy, insolvency,

                                      55

<PAGE>

receivership, fraudulent conveyance or similar law, then, if such payment is
recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person, the Senior Indebtedness or part thereof
originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment has not occurred.

         (c)    The consolidation of the Company with, or the merger of the
Company with or into, another corporation or the liquidation or dissolution of
the Company following the conveyance or transfer of all or substantially all of
its assets, to another corporation upon the terms and conditions provided in
Article V hereof and as long as permitted under the terms of the Senior
Indebtedness shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section if such other corporation shall,
as a part of such consolidation, merger, conveyance or transfer, assume in
writing, to the reasonable satisfaction of the Representative, the Company's
obligations hereunder in accordance with Article V hereof.

         (d)    The Company shall give prompt written notice to the Trustee of
any dissolution, winding-up, liquidation or reorganization of the Company, but
failure to give such notice shall not affect the subordination of the Notes to
the Senior Indebtedness provided in this Article X.

Section 10.04   Holders to be Subrogated to Rights of Holders of Senior
                -------------------------------------------------------
Indebtedness.
------------

         Subject to the payment in full, in cash or Cash Equivalents, of the
Senior Indebtedness, the Holders shall be subrogated to the rights of the
holders of Senior Indebtedness to receive payments or distributions of cash,
property or securities of the Company applicable to the Senior Indebtedness
until the Notes shall be paid in full. For the purposes of such subrogation, no
such payments or distributions of cash, property or securities of the Company to
the holders of the Senior Indebtedness by or on behalf of the Company or by or
on behalf of the Holders by virtue of this Article which otherwise would have
been made to the Holders shall, as between the Company and the Holders, be
deemed to be a payment by the Company to or on account of the Senior
Indebtedness, it being understood that the provisions of this Article are and
are intended solely for the purpose of defining the relative rights of the
Holders of the Notes, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.

Section 10.05   Obligations of the Company Unconditional.
                ----------------------------------------

         Nothing contained in this Article X or elsewhere in this Indenture or
in the Notes, is intended to or shall impair, as between the Company and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the Principal of, and interest on, the Notes as and when the
same shall become due and payable in accordance with their terms, or is intended
to or shall affect the relative rights of the Holders and creditors of the
Company other than the holders of the Senior Indebtedness, nor shall anything
herein or therein prevent the Trustee or any Holder from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture, subject
to the rights, if any, under this Article X of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company received
upon the exercise of any such remedy. Upon any payment or distribution of cash,
property or securities of the Company referred to in this Article X, the
Trustee, subject to the provisions of Sections 7.01 and 7.02, and the Holders
shall be entitled to rely upon any order or decree made by any court of
competent jurisdiction in which any liquidation, dissolution,

                                       56

<PAGE>

winding-up or reorganization proceedings are pending, or a certificate of the
receiver, trustee in bankruptcy, liquidating trustee or agent or other Person
making any payment or distribution to the Trustee or to the Holders for the
purpose of ascertaining (a) the Persons entitled to participate in such payment
or distribution, (b) the holders of Senior Indebtedness and other Indebtedness
of the Company, (c) the amount thereof or payable thereon, (d) the amount or
amounts paid or distributed thereon, and (e) all other facts pertinent thereto
or to this Article X. Nothing in this Article X shall apply to the claims of, or
payments to, the Trustee under or pursuant to Section 7.07. The Trustee shall be
entitled to conclusively rely on the delivery to it of a written notice by a
Person representing himself or itself to be the Representative of the holders of
the Senior Indebtedness. In the event that the Trustee determines in good faith
that any evidence is required with respect to the right of any Person as a
Representative of the holders of the Senior Indebtedness, the Trustee may
request such Person to furnish evidence thereof to the reasonable satisfaction
of the Trustee, and if such evidence is not furnished, the Trustee may defer any
payment to such Person pending judicial determination as to right of such Person
to receive such payment on behalf of the holders of the Secured Indebtedness.

Section 10.06   Trustee Entitled to Assume Payments Not Prohibited in Absence
                -------------------------------------------------------------
of Notice.
---------

         The Company shall give prompt written notice to the Trustee of any fact
known to the Company which would prohibit the making of any payment to or by the
Trustee in respect of the Notes pursuant to the provisions of this Article X.
Regardless of anything to the contrary contained in this Article X or elsewhere
in this Indenture, the Trustee shall not be charged with knowledge of the
existence of any Senior Debt Payment Default or Senior Debt Other Default or of
any other facts which would prohibit the making of any payment to or by the
Trustee unless and until the Trustee shall have received notice in writing from
the Company, or from a holder of Senior Indebtedness or a Representative
thereof, together with proof satisfactory to the Trustee of such holding of
Senior Indebtedness or of the authority of such Representative, and, prior to
the receipt of any such written notice, the Trustee shall be entitled to assume
(in the absence of actual knowledge to the contrary), subject to the provisions
of Section 7.01 and 7.02 that no such facts exist.

Section 10.07   Application by Trustee of Assets Deposited with It.
                --------------------------------------------------

         U.S. Legal Tender or U.S. Government Obligations deposited in trust
with the Trustee pursuant to and in accordance with Sections 8.01 and 8.02 shall
be for the sole benefit of the Holders of the Notes and, to the extent allocated
for the payment of Notes, shall not be subject to the subordination provisions
of this Article X unless delivered in violation of this Article X. Otherwise,
any deposit of assets, property or securities by or on behalf of the Company
with the Trustee or any Paying Agent (whether or not in trust) for the payment
of Principal of, or interest on, any Notes shall be subject to the provisions
of this Article X; provided, however, that if prior to the second Business Day
                   --------  -------
preceding the date on which by the terms of this Indenture any such assets may
become distributable for any purpose (including the payment of either Principal
of, or interest on, any Note) the Trustee or such Paying Agent shall not have
received with respect to such assets the notice provided for in Section 10.06,
then the Trustee or such Paying Agent shall have full power and authority to
receive such assets and to apply the same to the purpose for which they were
received, and shall not be affected by any notice to the contrary received by it
on or after such

                                       57

<PAGE>

date. Nothing contained in this Section 10.07 shall limit the right of the
holders of Senior Indebtedness to recover payments as contemplated by this
Article X.

Section 10.08   No Waiver of Subordination Provisions.
                -------------------------------------

         (a)    No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such holder,
or by any non-compliance by the Company with the terms, provisions and covenants
of this Indenture, regardless of any knowledge thereof any such holder may have
or be otherwise charged with.

         (b)    Without limiting the generality of subsection (a) of this
Section 10.08, the holders of Senior Indebtedness may, at any time and from time
to time, without the consent of or notice to the Trustees or the Holders,
without incurring responsibility to the Holders and without impairing or
releasing the subordination provided in this Article X or the obligations
hereunder of the Holders to the holders of Senior Indebtedness, do any one or
more of the following: (i) change the manner, place, terms or time of payment
of, or renew or alter, Senior Indebtedness or any instrument evidencing the same
or any agreement under which Senior Indebtedness is outstanding; (ii) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Indebtedness; (iii) release any Person liable in any
manner for the collection or payment of Senior Indebtedness; and (iv) exercise
or refrain from exercising any rights against the Company and any other Person.

Section 10.09   Holders Authorize Trustee to Effectuate Subordination of Notes.
                --------------------------------------------------------------

         Each Holder of the Notes by such Holders' acceptance thereof authorizes
and expressly directs the Trustee on his behalf to take such action as may be
necessary or appropriate to effectuate, as between the Holders and the holders
of Senior Indebtedness, the subordination provisions contained in this Article
X, and appoints the Trustee such Holders' attorney-in-fact for such purpose,
including, in the event of any liquidation, dissolution, winding-up,
reorganization, assignment for the benefit of creditors or marshaling of assets
of the Company (whether in bankruptcy, insolvency or receivership proceedings or
upon assignment for the benefit of creditors or otherwise) tending towards
liquidation of the business and assets of the Company, the immediate filing of a
claim for the unpaid balance of such Holder's Notes in the form required in said
proceedings and cause said claim to be approved. If the Trustee does not file a
proper claim or proof of debt in the form required in such proceeding prior to
thirty (30) days before the expiration of the time to file such claim or proof,
then any of the holders of the Senior Indebtedness or their Representative is
hereby authorized, but is not obligated, to file an appropriate claim for and on
behalf of the Holders of said Notes. Nothing herein contained shall be deemed to
authorize the Trustee or the holders of Senior Indebtedness or their
Representative to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof, or to authorized the
Trustee or the holders of Senior Indebtedness or their Representative to vote in
respect of the claim of any Holder in any such proceeding.

Section 10.10   Right of Trustee to Hold Senior Indebtedness.
                --------------------------------------------

                                       58

<PAGE>

         (a)    The Trustee and any agent of the Company shall be entitled to
all the rights set forth in this Article X with respect to any Senior
Indebtedness which may at any time be held by it in its individual or any other
capacity to the same extent as any other holder of Senior Indebtedness and
nothing in this Indenture shall deprive the Trustee or any such agent of any of
its rights as such holder.

         (b)    With respect to the holders of Senior Indebtedness, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article X, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee.

         (c)    Whenever a distribution is to be made or a notice given to
holders or owners of Senior Indebtedness, the distribution will be made and the
notice will be given to their Representative.

Section 10.11   This Article X Not To Prevent Events of Default.
                -----------------------------------------------

         (a)    The failure to make a payment on account of Principal of, or
interest on, the Notes by reason of any provision of this Article X will not be
construed as preventing the occurrence of an Event of Default.

         (b)    Nothing contained in this Article X shall limit the right of the
Trustee or the Holders of the Notes to take any action to accelerate the
maturity of the Notes pursuant to Article VI or to pursue any rights or remedies
hereunder or under applicable law, subject to the rights, if any, under this
Article X of the holders, from time to time, of Senior Indebtedness.

Section 10.12   No Fiduciary Duty of Trustee to Holders of Senior Indebtedness.
                --------------------------------------------------------------

         The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Indebtedness, and it undertakes to perform or observe such of
its covenants and obligations as are specifically set forth in this Article X,
and no implied covenants or obligations with respect to the Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not be
liable to any such holders (other than for its willful misconduct or gross
negligence) if it shall pay over or deliver to the Holders or the Company or any
other Person money or assets in compliance with the terms of this Indenture.
Nothing in this Section 10.12 shall affect the obligation of any Person other
than the Trustee to hold such payment for the benefit of, and to pay such
payment over to, the holders of Senior Indebtedness or their Representative.

Section 10.13   Relationship to Senior Subordinated Notes.
                -----------------------------------------

         The Notes are pari passu with the Company's 5% Senior Subordinated
Convertible Notes due November 30, 2002.

                                   ARTICLE XI
                                  MISCELLANEOUS

Section 11.01   TIA Controls.
                ------------

                                       59

<PAGE>

         If any provision of this Indenture limits, qualifies, or conflicts with
another provision which is required to be included in this Indenture by the TIA,
the required provision shall control.

Section 11.02   Notices.
                -------

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

                      if to the Company:

                      CellStar Corporation
                      1730 Briercroft Court
                      Carrollton, Texas 75006
                      Attention:  General Counsel
                      Fax: 972-466-5030

                      with a copy to:

                      Haynes and Boone, LLP
                      901 Main Street, Suite 3100
                      Dallas, Texas 75202
                      Attention:  William R. Hays, III
                      Fax: 214-200-0467

                      if to the Trustee:

                      The Bank of New York
                      101 Barclay Street
                      New York, New York 10286
                      Attention: Corporate Trust Administration
                      Fax: 212-896-7298

         Each of the Company and the Trustee by written notice to each other may
designate additional or different addresses for notices. Any notice or
communication to the Company or 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 faxed; five (5) calendar days
after mailing, if sent by registered or certified mail, postage prepaid (except
that a notice of change of address shall not be deemed to have been given until
actually received by the addressee); and the next Business Day after timely
delivery to the courier, if sent by overnight air courier guaranteeing next day
delivery.

         (b)    Any notice or communication mailed to a Holder, including any
notice delivered in connection with TIA (s)310(b), TIA (s)313(c), TIA (s)314(a)
and TIA (s)315(b) 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.

                                       60

<PAGE>

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

Section 11.03   Communications by Holders with Other Holders.
                --------------------------------------------

         Holders may communicate pursuant to TIA (S)312(b) with other Holders
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
(S)312(c).

Section 11.04   Certificate and Opinion as to Conditions Precedent.
                --------------------------------------------------

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

         (a)    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

         (b)    an Opinion of Counsel (in form and reasonably satisfactory to
the Trustee) 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 shall include:

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

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

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

         (d)    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 certain matters of fact not involving any legal
conclusion, an Opinion of Counsel may, upon the consent of the parties relying
on such opinion, rely on an Officers' Certificate or certificates of public
officials.

Section 11.06   Rules by Trustee, Paying Agent, Registrar.
                -----------------------------------------

         The Trustee may make reasonable rules in accordance with the Trustee's
customary practices for action by or at a meeting of Holders. The Paying Agent
or Registrar may make reasonable rules and set reasonable requirements for its
functions.

                                       61

<PAGE>

Section 11.07   Legal Holidays.
                --------------

         If a payment date is a Legal Holiday at such place, payment may be made
at such place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.

Section 11.08   Governing Law.
                -------------

         THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE
AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAW. THE PARTIES HERETO AGREE TO IRREVOCABLY SUBMIT TO THE
JURISDICTION OF ANY NEW YORK STATE COURT SITTING IN THE BOROUGH OF MANHATTAN IN
THE CITY OF NEW YORK OR ANY FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN IN
THE CITY OF NEW YORK IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF
OR RELATING TO THIS INDENTURE AND THE NOTES, AND IRREVOCABLY ACCEPT FOR
THEMSELVES AND IN RESPECT OF THEIR PROPERTY, GENERALLY AND UNCONDITIONALLY,
JURISDICTION OF THE AFORESAID COURTS. THE PARTIES HERETO IRREVOCABLY WAIVE, TO
THE FULLEST EXTENT THEY MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, TRIAL BY
JURY AND ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE
VENUE OR THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING HEREIN SHALL AFFECT THE RIGHT OF
THE TRUSTEE OR ANY HOLDER TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW
OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE COMPANY IN ANY
OTHER JURISDICTION.

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, except to the extent
necessary to interpret the meanings of provisions or defined terms specifically
incorporated by reference. Any such indenture, loan or debt agreement may not be
used to interpret this Indenture, except to the extent necessary to interpret
the meanings of provisions or defined terms specifically incorporated by
reference.

Section 11.10   No Recourse Against Others.
                --------------------------

         A director, officer, employee, stockholder or Affiliate, as such, of
the Company and each of its Subsidiaries shall not have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each
Holder 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.
                ----------

                                       62

<PAGE>

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

Section 11.12   Counterparts.
                ------------

         This Indenture 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 and original and all of which taken together shall constitute one
and the same agreement.

Section 11.13   Severability.
                ------------

         In case any provision 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 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 of the law.

Section 11.14   Table of Contents, Headings. Etc.
                --------------------------------

         The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, and are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

                                       63

<PAGE>

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

                                     CELLSTAR CORPORATION, as Issuer

                                     By:_____________________________
                                           Name:
                                           Title:

                                     The Bank of New York, as Trustee

                                     By:_____________________________
                                           Name:
                                           Title:

                                       64

<PAGE>

                                                                       Exhibit A

THIS NOTE IS SUBORDINATED TO THE PRIOR PAYMENT IN CASH OF ALL SENIOR
INDEBTEDNESS, AS DEFINED IN THAT CERTAIN INDENTURE DATED AS OF FEBRUARY __,
2002, AS THE SAME MAY BE AMENDED FROM TIME TO TIME IN THE MANNER PROVIDED IN THE
INDENTURE.

                              CELLSTAR CORPORATION

                12% SENIOR SUBORDINATED PROMISSORY NOTE DUE 2007

$[________]                                                   New York, New York
                                                               February __, 2002

               FOR VALUE RECEIVED, the undersigned, CELLSTAR CORPORATION, a
Delaware corporation (the "Borrower," which term includes any successor entity),
hereby promises to pay to the order of [__________] (together with its
registered assigns, the "Holder"), the principal sum of [__________ Dollars
($__________)] on [________], 2007 (the "Maturity Date"), with interest thereon
from time to time as provided herein.

               Interest Payment Dates:              August 15 and February 15
               Record Dates:                        August 1 and February 1

               Reference is made to the further provisions of this Note
contained herein, which will for all purposes have the same effect as if set
forth at this place.

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

                                           CELLSTAR CORPORATION

                                           By:  ________________________
                                                Name:
                                                Title:
Attest:

By:  _______________________
     Name:
     Title:

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

               This is one of the Notes in the within-mentioned Indenture.

                                           The Bank of New York, as Trustee

                                           By:  _____________________________
                                                Authorized Signatory

                                       65

<PAGE>

                            [FORM OF REVERSE OF NOTE]

                              CELLSTAR CORPORATION

                12% SENIOR SUBORDINATED PROMISSORY NOTE DUE 2007

          Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to them in the Indenture, dated as of February ___, 2002 (the
"Indenture"), as amended from time to time, by and between CellStar Corporation,
a Delaware corporation (the "Company"), and The Bank of New York, as trustee
(the "Trustee").

          1.   Interest.
               --------

          The Company promises to pay interest on the unpaid principal amount of
this Note at a rate of twelve percent (12%) per annum (the "Interest Rate")
commencing on the date hereof. The Company will pay interest semi-annually in
arrears on August 15, 2002 and February 15 of each year or, if any such day is
not a Business Day, on the next succeeding Business Day (the "Interest Payment
Date"), commencing August 15. Interest on the Notes will accrue from the most
recent date to which interest has been paid or, if no interest has been paid,
from the date of issuance; provided, however, that if there is no existing
                           --------  -------
Default in the payment of interest, and if this Note is authenticated between a
Record Date referred to on the face hereof and the next succeeding Interest
Payment Date, interest shall accrue from such next succeeding Interest Payment
Date. Interest shall accrue with respect to principal on this Note to, but not
including the date of repayment of such principal; provided, however, that if
                                                   --------  -------
payment to the Paying Agent occurs after 10:00 a.m., New York City time,
interest shall be deemed to accrue until the following Business Day. On each
Interest Payment Date, interest on the Notes will be paid for the immediately
preceding accrual period. Any accrued and unpaid interest outstanding on the
Maturity Date shall be paid on the Maturity Date concurrently with payment of
the Principal.

          To the extent lawful, the Company shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on (i)
overdue Principal, if any, at a rate equal to the sum of the Interest Rate and
an additional two percent (2%) per annum (such sum being referred to herein as
the "Default Rate"), compounded semiannually; and (ii) overdue installments of
interest, if any (without regard to any applicable grace period) at the Default
Rate, compounded semiannually. Interest will be computed on the basis of a
360-day year of twelve 30-day months.

          2.   Method of Payment.
               -----------------

          The Company shall pay interest on the Notes to the persons who are the
registered Holders at the close of business on the Record Date immediately
preceding the Interest Payment Date even if the Notes are canceled on
registration of transfer or registration of exchange after such Record Date.
Interest on the Notes shall be paid on the Interest Payment Dates and on the
Maturity Date in cash. Except as set forth in the Indenture, Holders must
surrender Notes to the Paying Agent to collect principal payments. The Principal
on the Notes shall be paid on the Maturity Date in cash. The Notes will be
payable as to Principal and interest at the office or

                                       66

<PAGE>

agency of the Company maintained for such purpose within the City and State of
New York, or, at the option of the Company, payment of interest may be made by
check mailed to the Holders of the Notes at their addresses set forth in the
register of Holders. If this Note is a Global Note, all payments in respect of
this Note will be made to the Depository or its nominee in immediately available
funds in accordance with customary procedures established from time to time by
the Depository.

          3.   Paying Agent and Registrar.
               --------------------------

          Initially, the Trustee under the Indenture will act as Paying Agent
and Registrar. The Company may change any Paying Agent, Registrar or
co-Registrar without notice to the Holders. The Company or any of its
Subsidiaries may act as Registrar.

          4.   Indenture.
               ---------

          The Company issued the Notes under an Indenture, dated as of
February __, 2002 (the "Indenture"), between the Company and the Trustee. This
Note is one of a duly authorized issue of Notes of the Company designated as its
12% Senior Subordinated Notes Due 2007 (the "Notes"). Each Holder, by accepting
the Notes, agrees to be bound by all the terms and provisions of the Indenture,
as the same may be amended from time to time in accordance with its terms. The
terms of the Notes include those stated in the Indenture and those made part of
the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code (ss)
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture.
Notwithstanding anything to the contrary herein, the Notes are subject to all
such terms, and Holders are referred to the Indenture and the TIA for a
statement of such terms. The Notes are unsecured obligations of the Company
limited (except as otherwise provided in the Indenture) in aggregate principal
amount to Sixty Million One Hundred Forty-Two Thousand Dollars ($60,142,000)
plus amounts, if any, sufficient to pay interest and premium, if any, on
outstanding Notes as set forth in Paragraph 2 hereof.

          The Company will furnish to any Holder of a Note upon written request
and without charge a copy of the Indenture. Requests may be made to: CellStar
Corporation, 1730 Briercroft Court, Carrollton, Texas 75006, Attn.: General
Counsel.

          5.   Optional Redemption.
               -------------------

          On and after the date hereof, the Notes may be redeemed, at the option
of the Company, in whole dollar amounts of at least One Thousand Dollars
($1,000) of principal at a redemption price equal to one hundred percent (100%)
of the principal amount thereof, plus accrued interest, if any, to the
Redemption Date (subject to the right of Holders of record on relevant Record
Dates to receive interest due on an Interest Payment Date). The Company may at
any time or from time to time purchase Notes from Holders in market transactions
and such purchases shall not be considered redemptions.

          If the Redemption Date is subsequent to a Record Date with respect to
any Interest Payment Date and on or prior to such Interest Payment Date, then
such accrued interest, if any, will be paid to the person in whose name such
Notes are registered at the close of business on

                                       67

<PAGE>

such Record Date and no other interest will be payable thereon. In the event of
a partial redemption, the Trustee will select the Notes to be redeemed pro rata
or by such manner as the Trustee deems fair to the Holders of the Notes. In the
event of any conflict between the Note and the Indenture, the Indenture shall
govern.

          6.   Notice of Redemption.
               --------------------

          Notice of redemption will be mailed by first class mail at least
thirty (30) days but not more than sixty (60) days before the Redemption Date to
each Holder of Notes to be redeemed at such Holder's registered address. Notes
in denominations larger than One Thousand Dollars ($1,000) may be redeemed in
part but only in multiples of One Thousand Dollars ($1,000).

          Except as set forth in the Indenture, from and after any Redemption
Date, if on such Redemption Date the Paying Agent holds U.S. Legal Tender
sufficient for the redemption of the Notes called for redemption on such
Redemption Date, then, unless the Company defaults in the payment of the
Redemption Price or the Paying Agent is otherwise prohibited from paying the
Redemption Price, the Notes called for redemption will cease to bear interest
and the only right of the Holders of such Notes will be to receive payment of
the Redemption Price.

          7.   Offers to Purchase.
               ------------------

          If there is a Change of Control, the Company will be required to offer
to purchase all Notes at the price equal to one hundred one percent (101%) of
the principal amount thereof, plus accrued and unpaid interest to the date of
purchase. Holders of Notes that are subject to an offer to purchase will receive
an offer to purchase from the Company prior to any related purchase date, and
may elect to have such Notes purchased as set forth in the Indenture.

          If the Company consummates any Asset Sale, the Company may be required
to utilize certain of the Net Asset Sale Proceeds received from such Asset Sale,
to fund an offer to redeem Notes at the price equal to one hundred percent
(100%) of the principal amount thereof, plus accrued and unpaid interest to the
date of redemption. Holders of Notes which are the subject of an offer to redeem
will receive an offer to redeem from the Company prior to any related purchase
date, and may elect to have such Notes redeemed as set forth in the Indenture.

          8.   Subordination.
               -------------

          The Indebtedness evidenced by the Notes is, to the extent and in the
manner provided in the Indenture, subordinate and subject in right of payment to
the prior payment in full of all Senior Indebtedness, and this Note is issued
subject to such provisions. Each Holder of this Note, by accepting the same, (i)
agrees to and shall be bound by such provisions; (ii) authorized and directs the
Trustee, on behalf of such holder, to take such action as may be necessary or
appropriate to effectuate the subordination as provided in the Indenture; and
(iii) appoints the Trustee attorney-in-fact of such Holder for such purpose.

                                       68

<PAGE>

          9.   Denominations; Transfer; Exchange.
               ---------------------------------

               The Notes are in registered form, without coupons, in
denominations of One Thousand Dollars ($1,000) and integral multiples of One
Thousand Dollars ($1,000). A Holder shall register the transfer of or exchange
Notes in accordance with the Indenture. The Registrar may require a Holder,
among other things, to furnish appropriate endorsements and transfer documents
and to pay certain taxes or similar governmental charges required by law and as
permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Notes or portions thereof selected for redemption. No service
charge shall be made for any registration of transfer or exchange or redemption
of Notes, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith. The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, it need not exchange or register the transfer of any
Notes for a period of fifteen (15) days before a selection of Notes to be
redeemed.

          10.  Discharge Prior to Redemption or Maturity; Defeasance.
               -----------------------------------------------------

               The Company's obligations pursuant to the Indenture will be
discharged, except for obligations pursuant to certain sections thereof, subject
to the terms of the Indenture, upon the payment of all the Notes or upon the
irrevocable deposit with the Trustee of U.S. Legal Tender sufficient to pay when
due Principal of and interest, if any, on the Notes to maturity or redemption,
as the case may be.

               The Indenture contains provisions (which provisions apply to this
Note) for defeasance at any time of (i) the entire Indebtedness of the Company
on this Note or (ii) certain restrictive covenants and the Defaults and Events
of Default related thereto, in each case upon compliance by the Company with
certain conditions set forth therein.

          11.  Amendment; Supplement; Waiver.
               -----------------------------

               Subject to certain exceptions, the Indenture or the Notes may be
amended or supplemented with the written consent of the Holders, and any
existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Required Holders. Without notice to or consent of
any Holder, the parties thereto may amend or supplement the Indenture or the
Notes to, cure among other things, any ambiguity, defect or inconsistency,
provide for uncertificated Notes in addition to or in place of certificated
Notes, comply with Article V of the Indenture or comply with any requirements of
the SEC in connection with the qualification of the Indenture under the TIA, or
make any other change that does not adversely affect the rights of any Holder of
a Note.

          12.  Restrictive Covenants.
               ---------------------

               The Indenture contains certain covenants that, among other
things, limit the ability of the Company and its Subsidiaries to incur
additional Indebtedness, transfer or sell assets, pay dividends, make certain
other Restricted Payments and Investments, create Liens or enter into

                                       69

<PAGE>

transactions with Affiliates and mergers. The Company must report quarterly to
the Trustee on compliance with such limitations.

          13.  Defaults and Remedies.
               ---------------------

               If an Event of Default occurs and is continuing, the Trustee or
the Holders of at least twenty-five percent (25%) in the aggregate principal
amount of Notes then outstanding may declare all the Notes to be due and payable
in the manner, at the time and with the effect provided in the Indenture.
Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the Notes
unless it has received indemnity reasonably satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, the Required Holders
to direct the Trustee in its exercise of any trust or power.

          14.  Trustee Dealings with Company.
               -----------------------------

               Subject to certain limitations imposed by the TIA, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Notes and may otherwise deal with the Company, its
Subsidiaries or their respective Affiliates, as if it were not the Trustee.

          15.  No Recourse Against Others.
               --------------------------

               A stockholder, director, officer, employee or Affiliate, as such,
of the Company or any of its Subsidiaries shall not have any liability for any
obligation of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of, such obligations or their creation,
including with respect to any certificates delivered hereunder or thereunder
from any such person. Each Holder of a Note by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

          16.  Authentication.
               --------------

               This Note shall not be valid until the Trustee or authenticating
agent manually signs the certificate of authentication on this Note.

          17.  Governing Law.
               -------------

               The Indenture and this Note shall be governed by and construed in
accordance with the laws of the State of New York, as applied to contracts made
and performed within the State of New York without regard to principles of
conflicts of laws.

          18.  Abbreviations and Defined Terms.
               -------------------------------

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

                                       70

<PAGE>

          19.  CUSIP Numbers.
               -------------

               Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company may cause CUSIP numbers
to be printed on the Notes immediately prior to the qualification of the
Indenture under the TIA as a convenience to the Holders of the Notes. No
representation is made as to the accuracy of such numbers as printed on the
Notes and reliance may be placed only on the other identification numbers
printed hereon.

          20.  Successors.
               ----------

               When a successor assumes all the obligations of its predecessor
under the Notes and the Indenture and the transaction complies with the terms of
Article V of the Indenture, the predecessor will be released from those
obligations.

          21.  Unclaimed Money.
               ---------------

               If money for the payment of Principal or interest remains
unclaimed for two (2) years, the Trustee or Paying Agent shall return the money
to the Company upon its request. After that, all liability of the Trustee and
Paying Agent with respect to such money shall cease and Holders entitled to
money must look to the Company for payment.

                                       71

<PAGE>

               IN WITNESS WHEREOF, the undersigned has executed this Note as of
the date first written above.

                                  CELLSTAR CORPORATION

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

                                       72

<PAGE>

                              [FORM OF ASSIGNMENT]

I or we assign this Note to

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
             (Print or type name, address and zip code of assignee)

Please insert Social Security or other identifying number of assignee
_______________________________

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

In connection with any transfer of any of the Notes evidenced by this
certificate occurring prior to (x) the date which is two years after the date
the undersigned acquired such Notes, and (y) such later date, if any, as may be
required by any subsequent change in applicable law (the "Resale Restriction
Termination Date"), if the undersigned is an affiliate of the Company, the
undersigned confirms that it has not utilized any general solicitation or
general advertising in connection with the transfer and that such Notes are
being transferred:

                    CHECK ONE BOX BELOW

(1)  [_]  to the Company; or

(2)  [_]  pursuant to a registration statement which has been declared effective
          under the Securities Act; or

(3)  [_]  pursuant to and in compliance with Rule 144A under the Securities Act;
          or

(4)  [_]  pursuant to and in compliance with Regulation S under the Securities
          Act; or

(5)  [_]  to an institutional "accredited investor" (as defined in Rule
          501(a)(1), (2), (3) or (7) under the Securities Act) that has
          furnished to the Company and the Trustee the Transferee Certificate
          in the form attached as Exhibit C to the Indenture (such Transferee
          Certificate can be obtained from the Trustee); or

(6)  [_]  pursuant to another available exemption from the registration
          requirements of the Securities Act.

Unless one of the boxes is checked, the Trustee will refuse to register any of
the Notes evidenced by this certificate in the name of any person other than the
registered holder thereof; provided, however, that if box (3), (4), (5) or (6)
                           --------  -------
is checked, the Company and the Trustee may require, prior to registering any
such transfer of the Notes, in their sole discretion, such opinions of counsel,
certifications and/or other information satisfactory to each of them to confirm
that such

                                       73

<PAGE>

transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act.

If none of the foregoing boxes is checked, the Trustee or Registrar shall not be
obligated to register this Note in the name of any person other than the Holder
hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 2.06 of the Indenture shall have been satisfied.

Dated:_______________      Signed:______________________________________________
                             (Sign exactly as your name appears on the front of
this Note)
Signature Guarantee:___________________________________________________________

                    NOTICE: Signature must be guaranteed by an "eligible
                    guarantor institution" meeting the requirements of the Bond
                    Registrar which requirements will include membership or
                    participation in the Securities Transfer Agents Medallion
                    Program or such other "signature guarantee program" as may
                    be determined by the Bond Registrar in addition to, or in
                    substitution for, the Securities Transfer Agents Medallion
                    Program, all in accordance with the Securities Exchange Act
                    of 1934, as amended.

                                       74

<PAGE>

                      [FORM OF LEGEND FOR BOOK-ENTRY NOTES]

     Any Global Note authenticated and delivered hereunder shall bear a legend
in substantially the following form:

     THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
   REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A
   DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES
   REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE
   EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO
   TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE 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) MAY BE REGISTERED
   EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

                                       75

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