Document:

Unassociated Document

    
      Exhibit
        4.1

       

       

      CORONADO
        INDUSTRIES, INC.

      16857
        E. Saguaro Boulevard

      Fountain
        Hills, AZ 85268

      

      September
        1, 2005

      

      Coronado
        Employees and Consultants, 

      

      The
        Company’s Board of Directors has decided to make available to all employees and
        consultants, shares of the Company’s common stock
        at
        a negotiated price of not less than 90% of the lowest closing bid price during
        the week prior to the compensation being due.

      

      To
        participate in this program, all you have to do is execute this letter in
        the
        space below, and indicate the amount of wages you wish to
        have
        allocated to this Plan and the pay period from which your salary will be
        credited. Your free-trading shares will be delivered to
        you
        within a few days.

       

      
         

        
          	 	 	 
	 	CORONADO
                  INDUSTRIES, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
                  Gary R. Smith
	 	
                  

                
	 	Gary
                  R. Smith, President

        

      

       

      
        

      

      
        	
                

              	 	
                

              
	Amount of Compensation	 	Employee/Consultant
                Signature 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
                

              	 	
                

              
	Period From 	 	
                Name
                  of Employee/Consultant 

              
	Which To Be Paid 	 	
                (Please
                  Print)EXHIBIT 4.1

                               GASCO ENERGY, INC.,
                                    as Issuer

                                       and

                    Any Subsidiary Guarantors parties hereto,
                            as Subsidiary Guarantors

                                       to

                     WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                   as Trustee

                                   ----------

                                SENIOR INDENTURE

                          Dated as of ________________

                                   ----------

<PAGE>

                                TABLE OF CONTENTS

                                                                            PAGE

PARTIES........................................................................1
RECITALS.......................................................................1

       ARTICLE ONE DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101.          Definitions..............................................1
------------          ------------
Section 102.          Compliance Certificates and Opinions.....................7
------------          -------------------------------------
Section 103.          Form of Documents Delivered to Trustee...................8
------------          ---------------------------------------
Section 104.          Acts of Holders; Record Dates............................9
------------          ------------------------------
Section 105.          Notices, Etc., to Trustee and Company...................11
------------          --------------------------------------
Section 106.          Notice to Holders; Waiver...............................11
------------          --------------------------
Section 107.          Conflict with Trust Indenture Act.......................12
------------          ----------------------------------
Section 108.          Effect of Headings and Table of Contents................12
------------          -----------------------------------------
Section 109.          Successors and Assigns..................................12
------------          -----------------------
Section 110.          Separability Clause.....................................12
------------          --------------------
Section 111.          Benefits of Indenture...................................12
------------          ----------------------
Section 112.          Governing Law...........................................12
------------          --------------
Section 113.          Legal Holidays..........................................12
------------          ---------------

                           ARTICLE TWO SECURITY FORMS

Section 201.          Forms Generally.........................................13
------------          ----------------
Section 202.          Form of Face of Security................................13
------------          -------------------------
Section 203.          Form of Reverse of Security.............................15
------------          ----------------------------
Section 204.          Form of Subsidiary Guarantee............................19
------------          -----------------------------
Section 205.          Form of Legend for Global Securities....................21
------------          -------------------------------------
Section 206.          Form of Trustee's Certificate of Authentication.........21
------------          ------------------------------------------------
Section 207.          Form of Conversion Notice...............................22
------------          --------------------------

                          ARTICLE THREE THE SECURITIES

Section 301.          Amount Unlimited; Issuable in Series....................23
------------          -------------------------------------
Section 302.          Denominations...........................................25
------------          --------------
Section 303.          Execution, Authentication, Delivery and Dating..........26
------------          -----------------------------------------------
Section 304.          Temporary Securities....................................27
------------          ---------------------
Section 305.          Registration, Registration of Transfer and Exchange.....28
------------          ----------------------------------------------------
Section 306.          Mutilated, Destroyed, Lost and Stolen Securities........29
------------          -------------------------------------------------
Section 307.          Payment of Interest; Interest Rights Preserved..........30
------------          -----------------------------------------------
Section 308.          Persons Deemed Owners...................................31
------------          ----------------------
Section 309.          Cancellation............................................31
------------          -------------
Section 310.          Computation of Interest.................................32
------------          ------------------------
                                       i
<PAGE>

                     ARTICLE FOUR SATISFACTION AND DISCHARGE

Section 401.          Satisfaction and Discharge of Indenture.................32
------------          ----------------------------------------
Section 402.          Application of Trust Money..............................33
------------          ---------------------------

                              ARTICLE FIVE REMEDIES

Section 501.          Events of Default.......................................33
------------          ------------------
Section 502.          Acceleration of Maturity; Rescission and Annulment......35
------------          ---------------------------------------------------
Section 503.          Collection of Indebtedness and Suits for Enforcement by
------------          Trustee.................................................36
                      -------
Section 504.          Trustee May File Proofs of Claim........................37
------------          ---------------------------------
Section 505.          Trustee May Enforce Claims Without Possession of
-----------           Securities..............................................37
                      ----------
Section 506.          Application of Money Collected..........................37
------------          -------------------------------
Section 507.          Limitation on Suits.....................................38
------------          --------------------
Section 508.          Unconditional Right of Holders to Receive Principal,
------------          Premium and Interest....................................39
------------          --------------------
Section 509.          Restoration of Rights and Remedies......................39
------------          -----------------------------------
Section 510.          Rights and Remedies Cumulative..........................39
------------          -------------------------------
Section 511.          Delay or Omission Not Waiver............................39
------------          -----------------------------
Section 512.          Control by Holders......................................39
------------          -------------------
Section 513.          Waiver of Past Defaults.................................40
------------          ------------------------
Section 514.          Undertaking for Costs...................................40
------------          ----------------------
Section 515.          Waiver of Usury, Stay or Extension Laws.................40
------------          ----------------------------------------

                             ARTICLE SIX THE TRUSTEE

Section 601.          Certain Duties and Responsibilities.....................41
------------          ------------------------------------
Section 602.          Notice of Defaults......................................41
------------          -------------------
Section 603.          Certain Rights of Trustee...............................41
------------          --------------------------
Section 604.          Not Responsible for Recitals or Issuance of Securities..42
------------          -------------------------------------------------------
Section 605.          May Hold Securities.....................................42
------------          --------------------
Section 606.          Money Held in Trust.....................................42
------------          --------------------
Section 607.          Compensation and Reimbursement..........................43
------------          -------------------------------
Section 608.          Conflicting Interests...................................43
------------          ----------------------
Section 609.          Corporate Trustee Required; Eligibility.................43
------------          ----------------------------------------
Section 610.          Resignation and Removal; Appointment of Successor.......44
------------          --------------------------------------------------
Section 611.          Acceptance of Appointment by Successor..................45
------------          ---------------------------------------
Section 612.          Merger, Conversion, Consolidation or Succession to
------------          Business................................................46
                      --------
Section 613.          Preferential Collection of Claims Against Company and
------------          Subsidiary Guarantors...................................46
                      ----------------------
Section 614.          Appointment of Authenticating Agent.....................46
------------          ------------------------------------

         ARTICLE SEVEN HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

                                       ii
<PAGE>

Section 704.          Reports by Company and Subsidiary Guarantors............49
------------          ---------------------------------------------

       ARTICLE EIGHT CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 801.          Company May Consolidate, Etc., Only on Certain Terms....49
------------          -----------------------------------------------------
Section 802.          Subsidiary Guarantors May Consolidate, Etc., Only on
------------          Certain Terms...........................................50
                      -------------
Section 803.          Successor Substituted...................................51
------------          ----------------------

                      ARTICLE NINE SUPPLEMENTAL INDENTURES

Section 901.          Supplemental Indentures Without Consent of Holders......51
------------          ---------------------------------------------------
Section 902.          Supplemental Indentures With Consent of Holders.........52
------------          ------------------------------------------------
Section 903.          Execution of Supplemental Indentures....................54
------------          -------------------------------------
Section 904.          Effect of Supplemental Indentures.......................54
------------          ----------------------------------
Section 905.          Conformity with Trust Indenture Act.....................54
------------          ------------------------------------
Section 906.          Reference in Securities to Supplemental Indentures......54
------------          ---------------------------------------------------

                              ARTICLE TEN COVENANTS

Section 1001.         Payment of Principal, Premium and Interest..............54
-------------         -------------------------------------------
Section 1002.         Maintenance of Office or Agency.........................55
-------------         --------------------------------
Section 1003.         Money for Securities Payments to Be Held in Trust.......55
-------------         --------------------------------------------------
Section 1004.         Statement by Officers as to Default.....................56
-------------         ------------------------------------
Section 1005.         Existence...............................................57
-------------         ----------
Section 1006.         Maintenance of Properties...............................57
-------------         --------------------------
Section 1007.         Payment of Taxes and Other Claims.......................57
-------------         ----------------------------------
Section 1008.         Maintenance of Insurance................................57
-------------         -------------------------
Section 1009.         Waiver of Certain Covenants.............................57
-------------         ----------------------------

                     ARTICLE ELEVEN REDEMPTION OF SECURITIES

Section 1101.         Applicability of Article................................58
-------------         -------------------------
Section 1102.         Election to Redeem; Notice to Trustee...................58
-------------         --------------------------------------
Section 1103.         Selection by Trustee of Securities to Be Redeemed.......58
-------------         --------------------------------------------------
Section 1104.         Notice of Redemption....................................59
-------------         ---------------------
Section 1105.         Deposit of Redemption Price.............................60
-------------         ----------------------------
Section 1106.         Securities Payable on Redemption Date...................60
-------------         --------------------------------------
Section 1107.         Securities Redeemed in Part.............................61
-------------         ----------------------------

                     ARTICLE TWELVE [INTENTIONALLY OMITTED]

                     ARTICLE THIRTEEN SUBSIDIARY GUARANTEES

Section 1301.         Applicability of Article................................61
-------------         -------------------------
Section 1302.         Subsidiary Guarantees...................................61
-------------         ----------------------
Section 1303.         Execution and Delivery of Subsidiary Guarantees.........63
-------------         ------------------------------------------------
Section 1304.         Release of Subsidiary Guarantors........................63
-------------         ---------------------------------
Section 1305.         Additional Subsidiary Guarantors........................64
-------------         ---------------------------------

                                      iii
<PAGE>

Section 1306.         Limitation on Liability.................................64
-------------         ------------------------

                    ARTICLE FOURTEEN [INTENTIONALLY OMITTED]

               ARTICLE FIFTEEN DEFEASANCE AND COVENANT DEFEASANCE

Section 1501.         Company's Option to Effect Defeasance or Covenant
-------------         Defeasance..............................................65
                      ----------
Section 1502.         Defeasance and Discharge................................65
-------------         -------------------------
Section 1503.         Covenant Defeasance.....................................65
-------------         --------------------
Section 1504.         Conditions to Defeasance or Covenant Defeasance.........66
-------------         ------------------------------------------------
Section 1505.         Deposited Money and U.S. Government Obligations to Be Held
-------------         in Trust; Miscellaneous Provisions......................68
                      ----------------------------------
Section 1506.         Reinstatement...........................................68
-------------         --------------

                          ARTICLE SIXTEEN SINKING FUNDS

Section 1601.         Applicability of Article................................69
-------------         -------------------------
Section 1602.         Satisfaction of Sinking Fund Payments with Securities...69
-------------         ------------------------------------------------------
Section 1603.         Redemption of Securities for Sinking Fund...............69
-------------         ------------------------------------------

SIGNATURES....................................................................80

                                       iv
<PAGE>

                               GASCO ENERGY, INC.

        CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310 THROUGH 318,
INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

TRUST INDENTURE
 ACT SECTION                                   INDENTURE SECTION

Section 310(a)(1).................................      609
     (a)(2).......................................      609
     (a)(3).......................................      Not Applicable
     (a)(4).......................................      Not Applicable
     (b)..........................................      608
                                                        610
Section 311(a)....................................      613
     (b)..........................................      613
Section 312(a)                                          701
                                                        702
     (b)..........................................      702
     (c)..........................................      702
Section 313(a)....................................      703
     (b)..........................................      703
     (c)..........................................      703
     (d)..........................................      703
Section 314(a)....................................      704
     (a)(4).......................................      101
                                                        1004
     (b)..........................................      Not Applicable
     (c)(1).......................................      102
     (c)(2).......................................      102
     (c)(3).......................................      Not Applicable
     (d)..........................................      Not Applicable
     (e)..........................................      102
Section 315(a)....................................      601
     (b)..........................................      602
     (c)..........................................      601
     (d)..........................................      601
     (e)..........................................      514
Section 316(a)....................................      101
     (a)(1)(A)....................................      502
                                                        512
     (a)(1)(B)....................................      513
     (a)(2).......................................      Not Applicable
     (b)..........................................      508
     (c)..........................................      104

                                       v
<PAGE>

Section 317(a)(1).................................      503
     (a)(2).......................................      504
     (b)..........................................      1003
Section 318(a)....................................      107

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

                                       iv
<PAGE>

         INDENTURE,  dated as of  _____________,  among Gasco  Energy,  Inc.,  a
corporation  duly  organized and existing  under the laws of the State of Nevada
(herein called the "Company"),  having its principal office at 8 Inverness Drive
East, Suite 100, Englewood,  Colorado, any Subsidiary Guarantors (as hereinafter
defined)  parties  hereto  from time to time,  and Wells  Fargo  Bank,  National
Association, a national banking association, as Trustee (the "Trustee").

                                    RECITALS

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

         The Company and any Subsidiary  Guarantors  named hereunder are members
of the same  consolidated  group of companies.  The Subsidiary  Guarantors  will
derive direct and indirect economic benefit from the issuance of the Securities.
Accordingly, each Subsidiary Guarantor named hereunder will have duly authorized
the  execution  and  delivery  of  this  Indenture  to  provide  for  its  full,
unconditional  and joint and several  guarantee of the  Securities to the extent
provided in or pursuant this Indenture.

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

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

         For  and in  consideration  of the  premises  and the  purchase  of the
Securities  by the Holders  thereof,  it is mutually  agreed,  for the equal and
proportionate  benefit of all Holders of the Securities or of series thereof, as
follows:

ARTICLE One

                        DEFINITIONS AND OTHER PROVISIONS
                             OF GENERAL APPLICATION

Section 101.      Definitions.

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

     (1)  the terms  defined in this Article have the meanings  assigned to them
          in this Article and include the plural as well as the singular;

     (2)  all other terms used herein  which are defined in the Trust  Indenture
          Act,  either  directly  or by  reference  therein,  have the  meanings
          assigned to them therein;

                                       1
<PAGE>

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

     (4)  unless the context otherwise  requires,  any reference to an "Article"
          or a "Section" refers to an Article or a Section,  as the case may be,
          of this Indenture; and

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

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

         "Affiliate" of any specified  Person means any other Person directly or
indirectly  controlling  or  controlled  by or under  direct or indirect  common
control  with  such  specified  Person.  For the  purposes  of this  definition,
"control"  when used with  respect to any  specified  Person  means the power to
direct the  management  and  policies of such  Person,  directly or  indirectly,
whether  through the ownership of voting  securities,  by contract or otherwise;
and the terms  "controlling" and "controlled"  have meanings  correlative to the
foregoing;  provided that direct or indirect beneficial ownership of 10% or more
of the Voting Stock of a Person shall be deemed to control.

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

         "Board of  Directors"  means,  with respect to the Company,  either the
board of directors of the Company or any committee of that board duly authorized
to act for it in respect hereof,  and with respect to any Subsidiary  Guarantor,
either the board of directors of such  Subsidiary  Guarantor or any committee of
that board duly authorized to act for it in respect hereof.

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

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

         "Capital  Stock" of any  Person  means any and all  shares,  interests,
participations or other equivalents  (however  designated) of corporate stock or
other equity participations, including partnership interests, whether general or
limited, of such Person.

         "Commission" means the Securities and Exchange Commission, from time to
time  constituted,  created under the Exchange Act, or, if at any time after the
execution of this  instrument such Commission is not existing and performing the
duties  now  assigned  to it  under  the  Trust  Indenture  Act,  then  the body
performing such duties at such time.

                                       2
<PAGE>

         "Common Stock" means the common stock,  no par value, of the Company as
the same exists at the date of execution and delivery of this Indenture or other
Capital  Stock of the  Company  into  which  such  common  stock  is  converted,
reclassified or changed from time to time.

         "Company"  means  the  Person  named  as the  "Company"  in  the  first
paragraph  of this  instrument  until a successor  Person shall have become such
pursuant  to  the  applicable  provisions  of  this  Indenture,  and  thereafter
"Company" shall mean such successor Person.

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

         "Conversion  Agent"  means any  Person  authorized  by the  Company  to
convert any Securities on behalf of the Company.

         "Corporate  Trust Office" means the principal  office of the Trustee in
the  Borough of  Manhattan,  New York City,  at which at any time its  corporate
trust business shall be administered, which office at the date hereof is located
at 45 Broadway,  12th Floor, New York, New York, 10002, or such other address in
the Borough of Manhattan,  New York City, as the Trustee may designate from time
to time by notice to the Holders and the  Company,  or the  principal  corporate
trust  office in the  Borough  of  Manhattan,  New York City,  of any  successor
Trustee (or such other address as a successor Trustee may designate from time to
time by notice to the Holders and the Company).

         "corporation"  means  a  corporation,  association,  limited  liability
company, joint-stock company or business trust.

         "Covenant Defeasance" has the meaning specified in Section 1503.

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

         "Defeasance" has the meaning specified in Section 1502.

         "Depositary"  means,  with respect to Securities of any series issuable
in whole or in part in the form of one or more  Global  Securities,  a  clearing
agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 301.

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

         "Exchange  Act"  means  the  Securities  Exchange  Act of 1934  and any
statute successor thereto, in each case as amended from time to time.

         "Expiration Date" has the meaning specified in Section 104.

                                       3
<PAGE>

         "Global  Security"  means a Security that  evidences all or part of the
Securities  of any series and bears the legend set forth in Section 205 (or such
legend as may be specified as contemplated by Section 301 for such Securities).

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

         "Indenture" means this instrument as originally  executed and as it may
from  time  to  time  be  supplemented  or  amended  by one or  more  indentures
supplemental  hereto entered into pursuant to the applicable  provisions hereof,
including,  for all  purposes  of this  instrument  and  any  such  supplemental
indenture,  the  provisions  of the Trust  Indenture Act that are deemed to be a
part  of and  govern  this  instrument  and  any  such  supplemental  indenture,
respectively.  The term  "Indenture"  shall also include the terms of particular
series of Securities established as contemplated by Section 301.

         "interest",  when used  with  respect  to an  Original  Issue  Discount
Security which by its terms bears interest only after  Maturity,  means interest
payable after Maturity.

         "Interest Payment Date", when used with respect to any Security,  means
the Stated Maturity of an installment of interest on such Security.

         "Investment  Company Act" means the Investment  Company Act of 1940 and
any statute successor thereto, in each case as amended from time to time.

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

         "Notice of Default"  means a written  notice of the kind  specified  in
Section 501(4).

         "Officers'  Certificate"  means a certificate signed by the Chairman of
the Board of Directors, a Vice Chairman of the Board of Directors, the President
or a Vice President, and by the Treasurer, an Assistant Treasurer, the Secretary
or an Assistant Secretary, of the Company or a Subsidiary Guarantor, as the case
may be, and delivered to the Trustee.  One of the officers  signing an Officers'
Certificate  given  pursuant to Section 1004 shall be the  principal  executive,
financial or accounting officer of the Company.

         "Opinion  of  Counsel"  means,  as  to  the  Company  or  a  Subsidiary
Guarantor,  a written opinion of counsel,  who may be counsel for the Company or
such  Subsidiary  Guarantor,  as the case may be, and who shall be acceptable to
the Trustee.

         "Original  Issue Discount  Security"  means any Security which provides
for an amount less than the principal  amount thereof to be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Section 502.

         "Outstanding",  when used with respect to Securities,  means, as of the
date of determination,  all Securities  theretofore  authenticated and delivered
under this Indenture, except:

                                       4
<PAGE>

     (1)  Securities  theretofore  cancelled  by the Trustee or delivered to the
          Trustee for cancellation;

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

     (3)  Securities  as to which  Defeasance  has  been  effected  pursuant  to
          Section 1502; and

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

provided,  however,  that in  determining  whether the Holders of the  requisite
principal  amount of the Outstanding  Securities  have given,  made or taken any
request,  demand,  authorization,  direction,  notice,  consent, waiver or other
action  hereunder as of any date, (A) the principal  amount of an Original Issue
Discount Security which shall be deemed to be Outstanding shall be the amount of
the  principal  thereof  which  would be due and  payable  as of such  date upon
acceleration  of the Maturity  thereof to such date pursuant to Section 502, (B)
if, as of such date, the principal  amount  payable at the Stated  Maturity of a
Security is not determinable,  the principal amount of such Security which shall
be deemed to be  Outstanding  shall be the amount as specified or  determined as
contemplated by Section 301, (C) the principal amount of a Security  denominated
in one or more foreign  currencies or currency units which shall be deemed to be
Outstanding shall be the U.S. dollar  equivalent,  determined as of such date in
the manner provided as  contemplated by Section 301, of the principal  amount of
such  Security  (or,  in the case of a Security  described  in clause (A) or (B)
above, of the amount determined as provided in such clause),  and (D) Securities
owned by the Company,  any  Subsidiary  Guarantor or any other  obligor upon the
Securities or any Affiliate of the Company,  any Subsidiary Guarantor or of such
other  obligor shall be  disregarded  and deemed not to be  Outstanding,  except
that, in determining  whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, waiver or other
action,  only  Securities  which the  Trustee  knows to be so owned  shall be so
disregarded.  Securities  so owned which have been  pledged in good faith may be
regarded as Outstanding if the pledgee  establishes to the  satisfaction  of the
Trustee the pledgee's  right so to act with respect to such  Securities and that
the pledgee is not the Company, a Subsidiary Guarantor or any other obligor upon
the  Securities  or any Affiliate of the Company,  a Subsidiary  Guarantor or of
such other obligor.

         "Paying  Agent" means any Person  authorized  by the Company to pay the
principal  of or any  premium or  interest  on any  Securities  on behalf of the
Company.

                                       5
<PAGE>

         "Person" means any individual, corporation, partnership, joint venture,
trust,  unincorporated  organization  or  government  or any agency or political
subdivision thereof.
         "Place of  Payment",  when used with respect to the  Securities  of any
series,  means the place or places in The City of New York and  elsewhere  where
the  principal of and any premium and interest on the  Securities of that series
are payable as specified as contemplated by Section 301.

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

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

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

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

         "Securities"  has the  meaning  stated  in the  first  recital  of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.

         "Securities Act" means the Securities Act of 1933 and any statute
successor thereto, in each case as amended from time to time.

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

         "Significant  Subsidiary"  means,  at any  date of  determination,  any
Subsidiary  that  represents  10% or more of the  Company's  consolidated  total
assets  at the  end of the  most  recent  fiscal  quarter  for  which  financial
information  is  available  or 10% or more  of the  Company's  consolidated  net
revenues or consolidated  operating income for the most recent four quarters for
which financial information is available.

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

         "Stated  Maturity",  when  used with  respect  to any  Security  or any
installment of principal thereof or interest  thereon,  means the date specified
in such  Security as the fixed date on which the  principal of such  Security or
such installment of principal or interest is due and payable.

         "Subsidiary" of any Person means (1) a corporation more than 50% of the
combined  voting  power of the  outstanding  Voting  Stock  of  which is  owned,
directly or indirectly,  by such Person or by one or more other  Subsidiaries of
such  Person or by such Person and one or more  Subsidiaries  thereof or (2) any
other Person  (other than a  corporation)  in which such Person,  or one or more
other  Subsidiaries  of such  Person  or  such  Person  and  one or  more  other
Subsidiaries thereof, directly or indirectly,  has at least a majority ownership
and power to direct the policies, management and affairs thereof.

                                       6
<PAGE>

         "Subsidiary   Guarantees"  means  the  guarantees  of  each  Subsidiary
Guarantor as provided in Article Thirteen.

         "Subsidiary  Guarantors"  means each  Subsidiary  of the  Company  that
becomes a Subsidiary  Guarantor in accordance  with Article  Thirteen hereof and
any successor of such Subsidiary,  until such Subsidiary  Guarantor ceases to be
such in accordance with Section 1304 hereof.

         "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force
at the date as of which this instrument was executed; provided, however, that in
the event the Trust  Indenture  Act of 1939 is amended  after such date,  "Trust
Indenture Act" means, to the extent  required by any such  amendment,  the Trust
Indenture Act of 1939 as so amended.

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

         "U.S. Government Obligation" has the meaning specified in Section 1504.

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

         "Voting  Stock" of any Person means  Capital Stock of such Person which
ordinarily has voting power for the election of directors (or persons performing
similar  functions)  of such Person,  whether at all times or only so long as no
senior class of securities has such voting power by reason of any contingency.

         "Wholly  Owned  Subsidiary"  of any Person means a  Subsidiary  of such
Person all of the  outstanding  Capital  Stock or other  ownership  interests of
which (other than  directors'  qualifying  shares) shall at the time be owned by
such Person or by one or more  Wholly  Owned  Subsidiaries  of such Person or by
such Person and one or more Wholly Owned Subsidiaries of such Person.

Section 102.      Compliance Certificates and Opinions.

         Upon any  application  or  request  by the  Company  or any  Subsidiary
Guarantor  to the  Trustee  to take  any  action  under  any  provision  of this
Indenture,  the Company and/or such Subsidiary Guarantor, as appropriate,  shall
furnish to the Trustee such  certificates  and opinions as may be required under
the Trust Indenture Act. Each such  certificate or opinion shall be given in the

                                       7
<PAGE>

form of an Officers' Certificate, if to be given by an officer of the Company or
a Subsidiary Guarantor, or an Opinion of Counsel, if to be given by counsel, and
shall  comply with the  requirements  of the Trust  Indenture  Act and any other
requirements set forth in this Indenture.

         Every  certificate  or  opinion  with  respect  to  compliance  with  a
condition or covenant provided for in this Indenture shall include:

     (1)  a statement that each individual  signing such  certificate or opinion
          has  read  such  covenant  or  condition  and the  definitions  herein
          relating thereto;

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

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

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

Section 103.      Form of Documents Delivered to Trustee.

         In any case where  several  matters are required to be certified by, or
covered by an opinion of, any specified  Person,  it is not  necessary  that all
such  matters  be  certified  by, or covered by the  opinion  of,  only one such
Person,  or that they be so certified or covered by only one  document,  but one
such Person may certify or give an opinion  with respect to some matters and one
or more other such Persons as to other matters,  and any such Person may certify
or give an opinion as to such matters in one or several documents.

         Any certificate or opinion of an officer of the Company or a Subsidiary
Guarantor  may  be  based,  insofar  as it  relates  to  legal  matters,  upon a
certificate or opinion of, or representations  by, counsel,  unless such officer
knows,  or in the exercise of reasonable  care should know, that the certificate
or  opinion  or  representations  with  respect  to the  matters  upon which his
certificate or opinion is based are erroneous.  Any such  certificate or opinion
of counsel  may be based,  insofar as it  relates  to  factual  matters,  upon a
certificate or opinion of, or representations  by, an officer or officers of the
Company or such Subsidiary  Guarantor  stating that the information with respect
to such factual  matters is in the possession of the Company or such  Subsidiary
Guarantor,  unless such counsel  knows,  or in the exercise of  reasonable  care
should know, that the certificate or opinion or representations  with respect to
such matters are erroneous.

         Where any  Person is  required  to make,  give or  execute  two or more
applications,  requests, consents,  certificates,  statements, opinions or other
instruments  under this Indenture,  they may, but need not, be consolidated  and
form one instrument.

                                       8
<PAGE>

Section 104.      Acts of Holders; Record Dates.

         Whenever  in this  Indenture  it is  provided  that  the  Holders  of a
specified  percentage in aggregate  principal amount of the Securities of any or
all series may take action  (including the making of any demand or request,  the
giving of any  direction,  notice,  consent or waiver or the taking of any other
action)  the fact that at the time of taking any such action the Holders of such
specified  percentage have joined therein may be evidenced (a) by any instrument
or any number of  instruments  of similar tenor executed by Holders in person or
by agent or proxy appointed in writing,  (b) by the record of the Holders voting
in favor  thereof at any meeting of Holders  duly called and held in  accordance
with procedures approved by the Trustee, (c) by a combination of such instrument
or  instruments  and any such  record of such a meeting of Holders or (d) in the
case  of  Securities   evidenced  by  a  Global  Security,   by  any  electronic
transmission or other message,  whether or not in written format,  that complies
with the  Depositary's  applicable  procedures.  Such  evidence  (and the action
embodied therein and evidenced  thereby) are herein sometimes referred to as the
"Act" of the relevant Holders. Proof of execution of any such instrument or of a
writing  appointing  any such agent or proxy shall be sufficient for any purpose
of this  Indenture  and  (subject  to Section  601)  conclusive  in favor of the
Trustee and the Company, if made in the manner provided in this Section.

         The fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such execution or by a
certificate  of a notary  public  or  other  officer  authorized  by law to take
acknowledgments of deeds, certifying that the individual signing such instrument
or writing acknowledged to him the execution thereof. Where such execution is by
a  signer  acting  in a  capacity  other  than  his  individual  capacity,  such
certificate  or  affidavit  shall  also  constitute   sufficient  proof  of  his
authority. The fact and date of the execution of any such instrument or writing,
or the  authority of the Person  executing  the same,  may also be proved in any
other manner that the Trustee deems sufficient.

         The ownership of Securities shall be proved by the Security Register.

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

         The  Company  may set any  day as a  record  date  for the  purpose  of
determining  the Holders of  Outstanding  Securities  of any series  entitled to
give,  make or take  any  request,  demand,  authorization,  direction,  notice,
consent,  waiver or other action  provided or permitted by this  Indenture to be
given, made or taken by Holders of Securities of such series,  provided that the
Company  may not set a record date for,  and the  provisions  of this  paragraph
shall  not  apply  with  respect  to,  the  giving  or  making  of  any  notice,
declaration,  request or  direction  referred to in the next  paragraph.  If any
record  date is set  pursuant  to this  paragraph,  the  Holders of  Outstanding

                                       9
<PAGE>

Securities  of the relevant  series on such record date,  and no other  Holders,
shall be  entitled  to take the  relevant  action,  whether or not such  Holders
remain  Holders  after such record date;  provided  that no such action shall be
effective  hereunder unless taken on or prior to the applicable  Expiration Date
by Holders of the requisite  principal amount of Outstanding  Securities of such
series on such record  date.  Nothing in this  paragraph  shall be  construed to
prevent  the Company  from  setting a new record date for any action for which a
record date has previously  been set pursuant to this  paragraph  (whereupon the
record date previously set shall  automatically and with no action by any Person
be cancelled and of no effect), and nothing in this paragraph shall be construed
to render  ineffective  any action taken by Holders of the  requisite  principal
amount of Outstanding  Securities of the relevant series on the date such action
is taken. Promptly after any record date is set pursuant to this paragraph,  the
Company,  at its own  expense,  shall  cause  notice of such  record  date,  the
proposed action by Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder of  Securities  of the relevant  series in
the manner set forth in Section 106.

         The  Trustee  may set any  day as a  record  date  for the  purpose  of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice of Default,  (ii) any  declaration  of
acceleration  referred  to in  Section  502,  (iii)  any  request  to  institute
proceedings  referred to in Section 507(2) or (iv) any direction  referred to in
Section 512, in each case with  respect to  Securities  of such  series.  If any
record  date is set  pursuant  to this  paragraph,  the  Holders of  Outstanding
Securities of such series on such record date,  and no other  Holders,  shall be
entitled to join in such notice, declaration,  request or direction,  whether or
not such Holders  remain  Holders after such record date;  provided that no such
action shall be effective  hereunder  unless taken on or prior to the applicable
Expiration  Date by Holders of the  requisite  principal  amount of  Outstanding
Securities of such series on such record date.  Nothing in this paragraph  shall
be  construed  to prevent  the  Trustee  from  setting a new record date for any
action  for  which a  record  date has  previously  been  set  pursuant  to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be  cancelled  and of no  effect),  and  nothing in this
paragraph  shall be construed to render  ineffective any action taken by Holders
of the  requisite  principal  amount of  Outstanding  Securities of the relevant
series on the date such action is taken.  Promptly  after any record date is set
pursuant to this paragraph,  the Trustee, at the Company's expense,  shall cause
notice of such record date,  the proposed  action by Holders and the  applicable
Expiration  Date to be given to the  Company  in writing  and to each  Holder of
Securities of the relevant series in the manner set forth in Section 106.

         With respect to any record date set pursuant to this Section, the party
hereto which sets such record  dates may  designate  any day as the  "Expiration
Date" and from time to time may change  the  Expiration  Date to any  earlier or
later day;  provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party hereto in writing,  and
to each Holder of Securities  of the relevant  series in the manner set forth in
Section 106, on or prior to the existing  Expiration Date. If an Expiration Date
is not designated  with respect to any record date set pursuant to this Section,
the party  hereto  which set such record date shall be deemed to have  initially
designated  the 180th day after such  record  date as the  Expiration  Date with
respect thereto,  subject to its right to change the Expiration Date as provided
in this paragraph.  Notwithstanding  the foregoing,  no Expiration Date shall be
later than the 180th day after the applicable record date.

         Without limiting the foregoing, a Holder entitled hereunder to take any
action hereunder with regard to any particular Security may do so with regard to
all or any part of the principal  amount of such Security or by one or more duly

                                       10
<PAGE>

appointed  agents  each of which may do so  pursuant  to such  appointment  with
regard to all or any part of such principal amount.

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

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

     (1)  the  Trustee  by any  Holder  or by  the  Company  or  any  Subsidiary
          Guarantor  shall be sufficient  for every  purpose  hereunder if made,
          given,  furnished  or filed in writing in the  English  language to or
          with the Trustee at 505 Main  Street,  Suite 301,  Fort  Worth,  Texas
          76102,  Attention:  Corporate  Trust  Department,  Telecopy  No. (817)
          885-8650; or

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

Section 106.      Notice to Holders; Waiver.

         Where this Indenture  provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly  provided)
if in writing and mailed,  first-class  postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register,  not later
than the latest date (if any),  and not earlier than the earliest date (if any),
prescribed for the giving of such notice. In any case where notice to Holders is
given by mail,  neither the failure to mail such  notice,  nor any defect in any
notice so mailed,  to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders.  Where this Indenture  provides for notice
in any manner,  such  notice may be waived in writing by the Person  entitled to
receive such notice,  either before or after the event, and such waiver shall be
the equivalent of such notice.  Waivers of notice by Holders shall be filed with
the Trustee,  but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

         In case by reason of the  suspension  of  regular  mail  service  or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such  notification  as shall be made with the approval of the Trustee shall
constitute a sufficient notification for every purpose hereunder.

                                       11
<PAGE>

Section 107.      Conflict with Trust Indenture Act.

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

Section 108.      Effect of Headings and Table of Contents.

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

Section 109.      Successors and Assigns.

         All covenants and  agreements in this  Indenture by the Company and any
Subsidiary Guarantor shall bind its successors and assigns, whether so expressed
or not.

Section 110.      Separability Clause.

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

Section 111.      Benefits of Indenture.

         Nothing in this Indenture, the Securities or the Subsidiary Guarantees,
express or implied,  shall give to any Person, other than the parties hereto and
their  successors  hereunder  and the  Holders,  any  benefit  or any  legal  or
equitable right, remedy or claim under this Indenture.

Section 112.      Governing Law.

         This Indenture,  the Securities and the Subsidiary  Guarantees shall be
governed by and construed in accordance with the law of the State of New York.

Section 113.      Legal Holidays.

         In any case where any Interest Payment Date,  Redemption Date, purchase
date or Stated Maturity of any Security shall not be a Business Day at any Place
of Payment,  then  (notwithstanding  any other provision of this Indenture or of
the Securities (other than a provision of any Security which specifically states
that such provision shall apply in lieu of this Section)) payment of interest or
principal  (and  premium,  if any) need not be made at such  Place of Payment on
such date, but may be made on the next succeeding  Business Day at such Place of
Payment with the same force and effect as if made on the Interest  Payment Date,
Redemption Date or purchase date, or at the Stated Maturity.

                                       12
<PAGE>

                                  ARTICLE TWO

                                 SECURITY FORMS

Section 201.      Forms Generally.

         The  Securities  of each  series  and, if  applicable,  the  Subsidiary
Guarantees to be endorsed thereon shall be in  substantially  the form set forth
in this Article, or in such other form as shall be established by or pursuant to
a Board  Resolution or in one or more indentures  supplemental  hereto,  in each
case  with  such  appropriate  insertions,  omissions,  substitutions  and other
variations  as are required or permitted  by this  Indenture,  and may have such
letters,   numbers  or  other  marks  of  identification  and  such  legends  or
endorsements  placed  thereon as may be required to comply with the rules of any
securities exchange or Depositary therefor or as may, consistently  herewith, be
determined by the officers  executing such Securities or Subsidiary  Guarantees,
as the case may be, as  evidenced  by their  execution  thereof.  If the form of
Securities  of any series is  established  by action  taken  pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by
the  Secretary  or an Assistant  Secretary  of the Company and  delivered to the
Trustee at or prior to the delivery of the Company Order contemplated by Section
303 for the authentication and delivery of such Securities.

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

Section 202.      Form of Face of Security.

[Insert any legend  required by the Internal  Revenue  Code and the  regulations
thereunder.]

                               Gasco Energy, Inc.

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

No.__________                                                         $ ________

         Gasco Energy, Inc., a corporation duly organized and existing under the
laws of Nevada (herein  called the "Company",  which term includes any successor
Person under the Indenture hereinafter referred to), for value received,  hereby
promises to pay to  ____________________________,  or  registered  assigns,  the
principal      sum     of      _____________________________      Dollars     on
___________________________________  [if the Security is to bear interest  prior
to Maturity,  insert -- , and to pay interest thereon from _____________ or from
the most recent  Interest  Payment Date to which  interest has been paid or duly
provided for,  semi-annually  on  ____________  and  ____________  in each year,
commencing _________, at the rate of ____% per annum, until the principal hereof
is paid or made available for payment,  provided that any principal and premium,
and any such  installment  of interest,  which is overdue shall bear interest at
the rate of ____% per annum (to the extent  that the  payment  of such  interest
shall be legally  enforceable),  from the dates such  amounts are due until they
are paid or made  available for payment,  and such interest  shall be payable on
demand.  The interest so payable,  and punctually  paid or duly provided for, on

                                       13
<PAGE>

any Interest  Payment Date will, as provided in such  Indenture,  be paid to the
Person in whose name this Security (or one or more  Predecessor  Securities)  is
registered  at the  close  of  business  on the  Regular  Record  Date  for such
interest, which shall be the _______ or _______ (whether or not a Business Day),
as the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually  paid or duly provided for will forthwith  cease to be payable
to the Holder on such  Regular  Record Date and may either be paid to the Person
in  whose  name  this  Security  (or  one or  more  Predecessor  Securities)  is
registered at the close of business on a Special  Record Date for the payment of
such  Defaulted  Interest to be fixed by the Trustee,  notice  whereof  shall be
given to Holders  of  Securities  of this  series not less than 10 days prior to
such Special  Record Date, or be paid at any time in any other lawful manner not
inconsistent  with the  requirements  of any  securities  exchange  on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture].

         [If the Security is not to bear interest  prior to Maturity,  insert --
The principal of this Security  shall not bear interest  except in the case of a
default in payment of principal upon acceleration,  upon redemption or at Stated
Maturity and in such case the overdue  principal  and any overdue  premium shall
bear  interest at the rate of ____% per annum (to the extent that the payment of
such interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made  available  for  payment.  Interest  on any  overdue
principal or premium  shall be payable on demand.  Any such  interest on overdue
principal or premium which is not paid on demand shall bear interest at the rate
of  ______%  per annum (to the  extent  that the  payment  of such  interest  on
interest shall be legally  enforceable),  from the date of such demand until the
amount so demanded is paid or made available for payment.
Interest on any overdue interest shall be payable on demand.]

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

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

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

         IN WITNESS  WHEREOF,  the Company has caused this instrument to be duly
executed under its corporate seal.

Dated:

                                       14
<PAGE>

                                                     Gasco Energy, Inc.

                                                     By: _______________________

Attest:

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

Section 203.      Form of Reverse of Security.

     This  Security  is one of a duly  authorized  issue  of  securities  of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an  Indenture,  dated as of  _________,  200__  (herein  called the
"Indenture",  which  term  shall  have  the  meaning  assigned  to  it  in  such
instrument),  among the Company,  the  Subsidiary  Guarantors  named therein and
Wells Fargo Bank, National Association, as Trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), and reference is
hereby  made  to  the  Indenture  for a  statement  of  the  respective  rights,
limitations  of rights,  duties and  immunities  thereunder of the Company,  the
Subsidiary Guarantors,  the Trustee and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered.
This Security is one of the series designated on the face hereof [if applicable,
insert -- , limited in aggregate principal amount to $ __________].

     [If  applicable,  insert -- The  Securities  of this  series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert --
(1) on ___________ in any year  commencing  with the year ______ and ending with
the year  ______  through  operation  of the  sinking  fund for this series at a
Redemption Price equal to 100% of the principal amount, and (2)] at any time [if
applicable,  insert -- on or after __________,  20__], as a whole or in part, at
the election of the Company,  at the following  Redemption  Prices (expressed as
percentages of the principal amount):  If redeemed [if applicable,  insert -- on
or before  _______________,  ___%, and if redeemed]  during the 12-month  period
beginning _____________ of the years indicated,

            Redemption                                                Redemption
Year          Price                     Year                            Price

and  thereafter at a Redemption  Price equal to _____% of the principal  amount,
together in the case of any such redemption [if  applicable,  insert -- (whether
through  operation of the sinking fund or otherwise)]  with accrued  interest to
the Redemption  Date, but interest  installments  whose Stated Maturity is on or

                                       15
<PAGE>

prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant  Record Dates  referred to on the face  hereof,  all as provided in the
Indenture.]

         [If applicable,  insert -- The Securities of this series are subject to
redemption  upon not less than 30 days' notice by mail, (1) on  ____________  in
any year  commencing  with the year ____ and ending  with the year ____  through
operation  of the  sinking  fund for this  series at the  Redemption  Prices for
redemption  through  operation of the sinking fund  (expressed as percentages of
the  principal  amount)  set forth in the table  below,  and (2) at any time [if
applicable,  insert -- on or after ____________],  as a whole or in part, at the
election of the Company, at the Redemption Prices for redemption  otherwise than
through operation of the sinking fund (expressed as percentages of the principal
amount) set forth in the table below:  If redeemed  during the  12-month  period
beginning ____________ of the years indicated,

               Redemption Price
                For Redemption                            Redemption Price For
              Through Operation                           Redemption Otherwise
                    of the                               Than Through Operation
Year             Sinking Fund                             of the Sinking Fund

and  thereafter at a Redemption  Price equal to _____% of the principal  amount,
together in the case of any such redemption  (whether  through  operation of the
sinking fund or otherwise)  with accrued  interest to the  Redemption  Date, but
interest  installments  whose Stated  Maturity is on or prior to such Redemption
Date  will  be  payable  to the  Holders  of  such  Securities,  or one or  more
Predecessor  Securities,  of  record at the close of  business  on the  relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

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

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

                                       16
<PAGE>

         [If the Security is subject to redemption of any kind, insert -- In the
event of  redemption of this Security in part only, a new Security or Securities
of this  series  and of like tenor for the  unredeemed  portion  hereof  will be
issued in the name of the Holder hereof upon the cancellation hereof.]

         [If the  Security  is  subject to  conversion,  insert - Subject to the
provisions of the Indenture,  each Holder has the right to convert the principal
amount of this Security into fully paid and nonassessable shares of Common Stock
of the  Company at the  initial  conversion  price per share of Common  Stock of
$_____  (or  $_____ in  principal  amount of  Securities  for each such share of
Common Stock), or at the adjusted conversion price then in effect, if adjustment
has been made as provided in the  Indenture,  upon  surrender of the Security to
the Conversion Agent, together with a fully executed notice in substantially the
form  attached  hereto and, if required  by the  Indenture,  an amount  equal to
accrued interest payable on this Security.]

         [If  applicable,  insert -- As provided in the Indenture and subject to
certain limitations therein set forth, the obligations of the Company under this
Security are guaranteed pursuant to the Subsidiary Guarantees endorsed hereon or
that may arise after the issuance of this Security pursuant to the terms hereof.
The Indenture  provides that a Subsidiary  Guarantor  shall be released from its
Subsidiary Guarantee upon compliance with certain conditions.]

         [If  applicable,  insert  --  The  Indenture  contains  provisions  for
Defeasance  at any  time of [the  entire  indebtedness  of this  Security]  [or]
[certain  restrictive  covenants  and  Events of  Default  with  respect to this
Security] [, in each case] upon compliance with certain  conditions set forth in
the Indenture.]

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

         [If the Security is an Original Issue Discount  Security,  insert -- If
an Event of Default with respect to Securities of this series shall occur and be
continuing,  an amount of  principal  of the  Securities  of this  series may be
declared  due and  payable in the manner  and with the  effect  provided  in the
Indenture.  Such amount shall be equal to -- insert formula for  determining the
amount.  Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue  principal,  premium and  interest  (in each
case  to the  extent  that  the  payment  of  such  interest  shall  be  legally
enforceable),  all of the Company's obligations in respect of the payment of the
principal of and premium and interest,  if any, on the Securities of this series
shall terminate.]

         The Indenture permits, with certain exceptions as therein provided, the
amendment  thereof and the  modification  of the rights and  obligations  of the
Company  and the rights of the  Holders of the  Securities  of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal  amount of the  Securities  at
the time Outstanding of each series to be affected.  The Indenture also contains
provisions  permitting the Holders of specified  percentages in principal amount
of the  Securities  of each  series  at the time  Outstanding,  on behalf of the

                                       17
<PAGE>

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

         As provided  in and subject to the  provisions  of the  Indenture,  the
Holder of this  Security  shall not have the right to institute  any  proceeding
with respect to the Indenture or for the appointment of a receiver or trustee or
for any other remedy thereunder,  unless such Holder shall have previously given
the Trustee written notice of a continuing  Event of Default with respect to the
Securities of this series,  the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made written
request to the  Trustee  to  institute  proceedings  in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee
shall not have  received  from the Holders of a majority in principal  amount of
Securities of this series at the time Outstanding a direction  inconsistent with
such  request,  and shall have failed to institute any such  proceeding,  for 60
days after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit  instituted  by the Holder of this  Security for the
enforcement of any payment of principal hereof or any premium or interest hereon
on or after the respective due dates expressed herein.

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

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

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

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

         Prior to due presentment of this Security for registration of transfer,
the  Company,  the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all

                                       18
<PAGE>

purposes,  whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

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

Section 204.      Form of Subsidiary Guarantee.

                              SUBSIDIARY GUARANTEE

         For value received,  each of the Subsidiary Guarantors named (or deemed
herein to be named) below hereby jointly and severally fully and unconditionally
guarantees to the Holder of the Security upon which this Subsidiary Guarantee is
endorsed,  and to the  Trustee on behalf of such  Holder,  the due and  punctual
payment of the principal of (and premium,  if any) and interest on such Security
when and as the  same  shall  become  due and  payable,  whether  at the  Stated
Maturity, by acceleration,  call for redemption, offer to purchase or otherwise,
according to the terms thereof and of the  Indenture  referred to therein and to
cover all the rights of the Trustee under Section 607. In case of the failure of
the  Company  punctually  to make  any  such  payment,  each  of the  Subsidiary
Guarantors  hereby jointly and severally agrees to cause such payment to be made
punctually  when and as the same shall  become due and  payable,  whether at the
Stated Maturity or by  acceleration,  call for redemption,  offer to purchase or
otherwise, and as if such payment were made by the Company.

         Each of the Subsidiary  Guarantors  hereby jointly and severally agrees
that its obligations hereunder shall be absolute and unconditional, irrespective
of, and shall be unaffected by, the validity,  regularity or  enforceability  of
such Security or the Indenture, the absence of any action to enforce the same or
any release, amendment, waiver or indulgence granted to the Company or any other
guarantor,  or any  consent  to  departure  from any  requirement  of any  other
guarantee  of all or of any of the  Securities  of  this  series,  or any  other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor;  provided,  however, that, notwithstanding the
foregoing, no such release,  amendment,  waiver or indulgence shall, without the
consent of such  Subsidiary  Guarantor,  increase the  principal  amount of such
Security,  or increase the interest rate thereon,  or alter the Stated  Maturity
thereof.  Each of the  Subsidiary  Guarantors  hereby  waives  the  benefits  of
diligence,  presentment,  demand of payment, any requirement that the Trustee or
any of the Holders protect,  secure,  perfect or insure any security interest in
or other lien on any property  subject  thereto or exhaust any right or take any
action  against the  Company or any other  Person or any  collateral,  filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company,  protest or notice with
respect to such Security or the indebtedness  evidenced  thereby and all demands
whatsoever,  and covenants that this Subsidiary Guarantee will not be discharged
except by complete performance of the obligations contained in such Security and
in this Subsidiary  Guarantee.  Each Subsidiary  Guarantor agrees that if, after
the occurrence and during the continuance of an Event of Default with respect to
Securities  of this series,  the Trustee or any of the Holders are  prevented by
applicable  law from  exercising  their  respective  rights  to  accelerate  the
maturity of the Securities of this series, to collect interest on the Securities
of this series, or to enforce or exercise any other right or remedy with respect

                                       19
<PAGE>

to the Securities of this series, such Subsidiary Guarantor agrees to pay to the
Trustee for the account of the Holders,  upon demand  therefor,  the amount that
would  otherwise  have been due and payable had such  rights and  remedies  been
permitted to be exercised by the Trustee or any of the Holders.

         No  reference  herein  to  the  Indenture  and  no  provision  of  this
Subsidiary  Guarantee or of the Indenture  shall alter or impair the  Subsidiary
Guarantee of any Subsidiary Guarantor,  which is absolute and unconditional,  of
the due and punctual payment of the principal (and premium, if any) and interest
on the Security upon which this Subsidiary Guarantee is endorsed.

         Each  Subsidiary  Guarantor  shall be  subrogated  to all rights of the
Holder of this  Security  against the Company in respect of any amounts  paid by
such Subsidiary Guarantor on account of this Security pursuant to the provisions
of its  Subsidiary  Guarantee or the  Indenture;  provided,  however,  that such
Subsidiary Guarantor shall not be entitled to enforce or to receive any payments
arising out of, or based upon, such right of subrogation  until the principal of
(and premium,  if any) and interest on this Security and all other Securities of
this series issued under the Indenture shall have been paid in full.

         This  Subsidiary  Guarantee  shall  remain in full force and effect and
continue to be effective  should any petition be filed by or against the Company
for liquidation or  reorganization,  should the Company become insolvent or make
an  assignment  for the benefit of  creditors or should a receiver or trustee be
appointed for all or any part of the Company's assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated,  as the case
may be, if at any time payment and  performance of the Securities of this series
is,  pursuant  to  applicable  law,  rescinded  or reduced  in  amount,  or must
otherwise  be  restored  or  returned  by any Holder of the  Securities  of this
series, whether as a "voidable preference", "fraudulent transfer", or otherwise,
all as though such payment or  performance  had not been made. In the event that
any payment, or any part thereof, is rescinded,  reduced,  restored or returned,
the Securities of this series shall, to the fullest extent  permitted by law, be
reinstated  and deemed  reduced  only by such amount paid and not so  rescinded,
reduced, restored or returned.

         The Subsidiary  Guarantors or any particular Subsidiary Guarantor shall
be released from this Subsidiary Guarantee upon the terms and subject to certain
conditions provided in the Indenture.

         By delivery to the Trustee of a supplement to the Indenture referred to
in the Security upon which this  Subsidiary  Guarantee is endorsed in accordance
with the terms of the Indenture, each Person that becomes a Subsidiary Guarantor
after the date of first issuance of the Securities of this series will be deemed
to have executed and delivered this Subsidiary  Guarantee for the benefit of the
Holder of the Security upon which this Subsidiary Guarantee is endorsed with the
same effect as if such Subsidiary Guarantor was named below and has executed and
delivered this Subsidiary Guarantee.

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

                                       20
<PAGE>

         This  Subsidiary  Guarantee  shall not be valid or  obligatory  for any
purpose until the certificate of  authentication on the Security upon which this
Subsidiary  Guarantee is endorsed  shall have been executed by the Trustee under
the Indenture by manual signature.

         Reference is made to the Indenture for further  provisions with respect
to this Subsidiary Guarantee.

         This  Subsidiary  Guarantee  shall  be  governed  by and  construed  in
accordance with the laws of the State of New York.

         IN WITNESS WHEREOF,  each of the Subsidiary  Guarantors has caused this
Subsidiary Guarantee to be duly executed.

                                        [Insert Names of Subsidiary Guarantors]

                                        By:  ______________________________
                                             Title:

Attest:

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

Section 205.      Form of Legend for Global Securities.

         Unless  otherwise  specified  as  contemplated  by Section  301 for the
Securities evidenced thereby,  every Global Security authenticated and delivered
hereunder shall bear a legend in substantially the following form:

         THIS SECURITY IS A GLOBAL  SECURITY WITHIN THE MEANING OF THE INDENTURE
         HEREINAFTER  REFERRED TO AND IS  REGISTERED IN THE NAME OF A DEPOSITARY
         OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN
         PART FOR A SECURITY  REGISTERED,  AND NO TRANSFER  OF THIS  SECURITY IN
         WHOLE OR IN PART MAY BE  REGISTERED,  IN THE NAME OF ANY  PERSON  OTHER
         THAN SUCH  DEPOSITARY  OR A  NOMINEE  THEREOF,  EXCEPT  IN THE  LIMITED
         CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

Section 206.      Form of Trustee's Certificate of Authentication.

         The Trustee's  certificates of authentication shall be in substantially
         the  following  form:  This  is  one of the  Securities  of the  series
         designated therein referred to in the within-mentioned Indenture.

                                       21
<PAGE>

                                          Wells Fargo Bank, National Association
                                            As Trustee

                                          By: _____________________
                                              Authorized Officer

Section 207.      Form of Conversion Notice.

         Each convertible  Security shall have attached thereto, or set forth on
the  reverse  of the  Security,  a notice of  conversion  in  substantially  the
following form:

                                Conversion Notice

                             To: Gasco Energy, Inc.

                  The undersigned owner of this Security hereby: (i) irrevocably
         exercises the option to convert this  Security,  or the portion  hereof
         below designated,  for shares of Common Stock of Gasco Energy,  Inc. in
         accordance with the terms of the Indenture referred to in this Security
         and (ii) directs that such shares of Common Stock  deliverable upon the
         conversion,  together with any check in payment for  fractional  shares
         and any  Security(ies)  representing  any unconverted  principal amount
         hereof,  be issued and delivered to the registered holder hereof unless
         a  different  name  has  been  indicated  below.  If  shares  are to be
         delivered   registered   in  the  name  of  a  person  other  than  the
         undersigned,  the undersigned  will pay all transfer taxes payable with
         respect  thereto.  Any amount required to be paid by the undersigned on
         account of interest accompanies this Security.

                  Dated:  _______________________             ..................
                                                              Signature

                  Fill in for registration of shares if to be delivered,  and of
         Securities  if to be issued,  otherwise  than to and in the name of the
         registered holder.

                                             ...................................
                                             Social Security or other
                                             Taxpayer Identification Number

         ............................................
         (Name)
         ............................................
         (Please print name and address)

                          Principal amount to be converted:  (if less than all)
                          $......................................

                                       22
<PAGE>

         Signature Guarantee*
         ...............................................
         *Participant in a recognized  Signature Guarantee Medallion Program (or
          other signature acceptable to the Trustee).

                                 ARTICLE THREE

                                 THE SECURITIES

Section 301.      Amount Unlimited; Issuable in Series.

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

         The  Securities  may be issued in one or more  series.  There  shall be
established in or pursuant to a Board  Resolution  and,  subject to Section 303,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,

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

     (2)  if the  Securities  of  the  series  will  not  have  the  benefit  of
          Subsidiary Guarantees;

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

     (4)  the Person to whom any  interest on a Security of the series  shall be
          payable,  if other than the Person in whose name that Security (or one
          or more Predecessor Securities) is registered at the close of business
          on the Regular Record Date for such interest;

     (5)  the date or dates on which  the  principal  of any  Securities  of the
          series is payable;

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

     (7)  the  place or  places  where  the  principal  of and any  premium  and
          interest on any Securities of the series shall be payable;

                                       23
<PAGE>

     (8)  the period or periods  within which,  the price or prices at which and
          the terms and  conditions  upon which any Securities of the series may
          be redeemed, in whole or in part, at the option of the Company and, if
          other than by a Board Resolution,  the manner in which any election by
          the Company to redeem the Securities shall be evidenced;

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

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

     (11) if the  amount of  principal  of or any  premium  or  interest  on any
          Securities of the series may be determined  with reference to an index
          or pursuant to a formula,  the manner in which such  amounts  shall be
          determined;

     (12) if other  than the  currency  of the  United  States of  America,  the
          currency,  currencies  or currency  units in which the principal of or
          any  premium or  interest  on any  Securities  of the series  shall be
          payable and the manner of determining  the  equivalent  thereof in the
          currency of the United  States of America for any  purpose,  including
          for purposes of the definition of "Outstanding" in Section 101;

     (13) if the  principal of or any premium or interest on any  Securities  of
          the series is to be  payable,  at the  election  of the Company or the
          Holder thereof, in one or more currencies or currency units other than
          that or those in which such  Securities are stated to be payable,  the
          currency,  currencies  or currency  units in which the principal of or
          any premium or interest on such  Securities  as to which such election
          is made shall be payable,  the periods  within which and the terms and
          conditions  upon which such  election  is to be made and the amount so
          payable (or the manner in which such amount shall be determined);

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

     (15) if  the  principal  amount  payable  at  the  Stated  Maturity  of any
          Securities  of the series  will not be  determinable  as of any one or
          more dates  prior to the Stated  Maturity,  the amount  which shall be
          deemed to be the  principal  amount of such  Securities as of any such
          date for any purpose thereunder or hereunder,  including the principal
          amount  thereof which shall be due and payable upon any Maturity other
          than the Stated Maturity or which shall be deemed to be Outstanding as
          of any date prior to the Stated  Maturity  (or, in any such case,  the
          manner in which such amount deemed to be the principal amount shall be
          determined);

                                       24
<PAGE>

     (16) if  applicable,  that the  Securities  of the series,  in whole or any
          specified  part,  shall be  defeasible  pursuant  to  Section  1502 or
          Section  1503 or both  such  Sections  and,  if other  than by a Board
          Resolution, the manner in which any election by the Company to defease
          such Securities shall be evidenced;

     (17) if applicable,  that any Securities of the series shall be issuable in
          whole or in part in the form of one or more Global  Securities and, in
          such case, the respective Depositories for such Global Securities, the
          form of any legend or legends  which shall be borne by any such Global
          Security  in  addition  to or in lieu of that set forth in Section 205
          and any  circumstances in addition to or in lieu of those set forth in
          clause  (2) of the last  paragraph  of  Section  305 in which any such
          Global  Security may be  exchanged in whole or in part for  Securities
          registered,  and any  transfer of such Global  Security in whole or in
          part may be registered, in the name or names of Persons other than the
          Depositary for such Global Security or a nominee thereof;

     (18) any  addition to or change in the Events of Default  which  applies to
          any  Securities  of the  series  and any  change  in the  right of the
          Trustee or the  requisite  Holders of such  Securities  to declare the
          principal amount thereof due and payable pursuant to Section 502;

     (19) any  addition to or change in the  covenants  set forth in Article Ten
          which applies to Securities of the series;

     (20) whether the Securities of the series will be  convertible  into Common
          Stock (or cash in lieu thereof)  and, if so, the terms and  conditions
          upon which such conversion will be effected; and

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

         All  Securities  of any one  series  shall be  substantially  identical
except as to denomination and except as may otherwise be provided in or pursuant
to the Board  Resolution  referred  to above and  (subject  to Section  303) set
forth,  or  determined  in the manner  provided,  in the  Officers'  Certificate
referred to above or in any such indenture supplemental hereto.

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

Section 302.      Denominations.

         The Securities of each series shall be issuable only in registered form
without  coupons  and  only in such  denominations  as  shall  be  specified  as
contemplated  by Section 301. In the absence of any such specified  denomination
with respect to the  Securities  of any series,  the  Securities  of such series
shall be issuable in denominations of $1,000 and any integral multiple thereof.

                                       25
<PAGE>

Section 303.      Execution, Authentication, Delivery and Dating.

         The  Securities  shall be  executed  on  behalf of the  Company  by its
Chairman of the Board of Directors, its Vice Chairman of the Board of Directors,
its President or one of its Vice Presidents. If its corporate seal is reproduced
thereon,  then it shall be attested  by its  Secretary  or one of its  Assistant
Secretaries.  The signature of any of these  officers on the  Securities  may be
manual or facsimile.

         Securities  bearing the manual or facsimile  signatures of  individuals
who were at any time the proper  officers of the Company shall bind the Company,
notwithstanding  that such  individuals  or any of them have ceased to hold such
offices prior to the  authentication  and delivery of such Securities or did not
hold such offices at the date of such Securities.

         At any time and from time to time after the  execution  and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company and, if applicable,  having endorsed  thereon the Subsidiary  Guarantees
executed as provided in Section 1303 by the Subsidiary Guarantors to the Trustee
for  authentication,  together with a Company Order for the  authentication  and
delivery  of such  Securities,  and the Trustee in  accordance  with the Company
Order shall  authenticate and deliver such  Securities.  If the form or terms of
the Securities of the series have been established by or pursuant to one or more
Board Resolutions as permitted by Sections 201 and 301, in  authenticating  such
Securities,  and accepting the additional  responsibilities under this Indenture
in relation to such  Securities,  the Trustee shall be entitled to receive,  and
(subject to Section 601) shall be fully protected in relying upon, an Opinion of
Counsel stating,

     (1)  if the form of such Securities has been  established by or pursuant to
          Board  Resolution as permitted by Section 201, that such form has been
          established in conformity with the provisions of this Indenture;

     (2)  if the terms of such Securities  have been  established by or pursuant
          to Board  Resolution as permitted by Section 301, that such terms have
          been  established in conformity with the provisions of this Indenture;
          and

     (3)  that such Securities,  when authenticated and delivered by the Trustee
          and issued by the Company in the manner and subject to any  conditions
          specified  in such  Opinion  of  Counsel,  will  constitute  valid and
          legally binding  obligations of the Company,  and, if applicable,  the
          Subsidiary  Guarantees  endorsed  thereon  will  constitute  valid and
          legally binding obligations of the Subsidiary Guarantors,  enforceable
          in accordance  with their terms,  subject to  bankruptcy,  insolvency,
          fraudulent  transfer,  reorganization,  moratorium and similar laws of
          general  applicability  relating to or affecting creditors' rights and
          to general equity principles.

If such  form or terms  have  been so  established,  the  Trustee  shall  not be
required  to  authenticate  such  Securities  if the  issue  of such  Securities
pursuant to this  Indenture  will  affect the  Trustee's  own rights,  duties or
immunities  under the  Securities  and this  Indenture  or otherwise in a manner
which is not reasonably acceptable to the Trustee.

                                       26
<PAGE>

         Notwithstanding  the  provisions  of Section  301 and of the  preceding
paragraph,  if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the Officers'  Certificate  otherwise
required  pursuant to Section  301 or the  Company  Order and Opinion of Counsel
otherwise  required  pursuant  to such  preceding  paragraph  at or prior to the
authentication  of each Security of such series if such  documents are delivered
at or prior to the  authentication  upon original issuance of the first Security
of such series to be issued.

         Each Security shall be dated the date of its authentication.

         No Security or  Subsidiary  Guarantee  shall be entitled to any benefit
under this  Indenture  or be valid or  obligatory  for any purpose  unless there
appears on such Security a certificate of  authentication  substantially  in the
form provided for herein executed by the Trustee by manual  signature,  and such
certificate  upon  any  Security  shall  be  conclusive  evidence,  and the only
evidence,   that  such  Security  has  been  duly  authenticated  and  delivered
hereunder.  Notwithstanding  the  foregoing,  if any  Security  shall  have been
authenticated and delivered  hereunder but never issued and sold by the Company,
and the Company shall deliver such Security to the Trustee for  cancellation  as
provided in Section 309, for all purposes of this  Indenture such Security shall
be deemed never to have been  authenticated  and  delivered  hereunder and shall
never be entitled to the benefits of this Indenture.

Section 304.      Temporary Securities.

         Pending the  preparation  of definitive  Securities of any series,  the
Company may execute,  and upon Company Order the Trustee shall  authenticate and
deliver,  temporary  Securities  which are printed,  lithographed,  typewritten,
mimeographed   or   otherwise   produced,   in  any   authorized   denomination,
substantially  of the tenor of the  definitive  Securities  and, if  applicable,
having  endorsed  thereon the  Subsidiary  Guarantees  in lieu of which they are
issued and with such appropriate insertions, omissions,  substitutions and other
variations  as the  officers  executing  such  Securities  and,  if  applicable,
Subsidiary  Guarantees  may determine,  as evidenced by their  execution of such
Securities and Subsidiary Guarantees.

         If  temporary  Securities  of any series are issued,  the Company  will
cause definitive  Securities of that series to be prepared without  unreasonable
delay.  After the  preparation  of  definitive  Securities  of such series,  the
temporary  Securities  of such  series  shall  be  exchangeable  for  definitive
Securities  of such series upon  surrender of the  temporary  Securities of such
series at the office or agency of the  Company  in a Place of  Payment  for that
series, without charge to the Holder. Upon surrender for cancellation of any one
or more  temporary  Securities of any series,  the Company shall execute and the
Trustee  shall  authenticate  and  deliver  in  exchange  therefor  one or  more
definitive Securities of the same series, of any authorized denominations and of
like tenor and aggregate  principal  amount and, if applicable,  having endorsed
thereon Subsidiary  Guarantees executed by the Subsidiary  Guarantors.  Until so
exchanged,  the  temporary  Securities  of any series  shall in all  respects be
entitled to the same benefits under this  Indenture as definitive  Securities of
such series and tenor.

                                       27
<PAGE>

Section 305.      Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register  (the  register  maintained  in such  office and in any other
office or agency of the  Company in a Place of Payment  being  herein  sometimes
collectively  referred to as the "Security  Register") in which, subject to such
reasonable  regulations as it may  prescribe,  the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby
appointed  "Security  Registrar" for the purpose of  registering  Securities and
transfers of Securities as herein provided.

         Upon surrender for registration of transfer of any Security of a series
at the office or agency of the  Company in a Place of Payment  for that  series,
the Company shall execute, if applicable the Subsidiary Guarantors shall execute
the Subsidiary  Guarantees  endorsed thereon and the Trustee shall  authenticate
and deliver,  in the name of the designated  transferee or  transferees,  one or
more new Securities of the same series,  of any authorized  denominations and of
like tenor and aggregate principal amount.

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

         All Securities and, if applicable,  the Subsidiary  Guarantees endorsed
thereon issued upon any registration of transfer or exchange of Securities shall
be the valid  obligations  of the Company  and, if  applicable,  the  respective
Subsidiary  Guarantors,  evidencing  the same  debt,  and  entitled  to the same
benefits under this  Indenture,  as the Securities and  Subsidiaries  Guarantees
surrendered upon such registration of transfer or exchange.

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

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

         If the Securities of any series (or of any series and specified  tenor)
are to be redeemed  in part,  the  Company  shall not be required  (A) to issue,
register the transfer of or exchange any  Securities  of that series (or of that
series and specified tenor, as the case may be) during a period beginning at the
opening  of  business  15 days  before  the day of the  mailing  of a notice  of
redemption of any such Securities selected for redemption under Section 1103 and
ending at the close of business on the day of such  mailing,  or (B) to register
the transfer of or exchange any Security so selected for  redemption in whole or
in part, except the unredeemed portion of any Security being redeemed in part.

                                       28
<PAGE>

         The  provisions of clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:

     (1)  Each  Global  Security  authenticated  under this  Indenture  shall be
          registered in the name of the  Depositary  designated  for such Global
          Security or a nominee  thereof and  delivered to such  Depositary or a
          nominee thereof or custodian  therefor,  and each such Global Security
          shall constitute a single Security for all purposes of this Indenture.

     (2)  Notwithstanding  any  other  provision  in this  Indenture,  no Global
          Security  may  be  exchanged  in  whole  or  in  part  for  Securities
          registered,  and no transfer of a Global  Security in whole or in part
          may be registered, in the name of any Person other than the Depositary
          for  such  Global  Security  or a  nominee  thereof  unless  (A)  such
          Depositary (i) has notified the Company that it is unwilling or unable
          to continue as Depositary for such Global  Security or (ii) has ceased
          to be a clearing  agency  registered  under the  Exchange  Act, and in
          either case the Company fails to appoint a successor Depositary within
          90 days,  (B) there shall have  occurred and be continuing an Event of
          Default with respect to such Global Security and the Depositary  shall
          have  notified  the Trustee of its  decision  to exchange  such Global
          Security for Securities in certificated  form or (C) there shall exist
          such circumstances, if any, in addition to or in lieu of the foregoing
          as have been  specified  for this purpose as  contemplated  by Section
          301.

     (3)  Subject to clause (2) above,  any  exchange of a Global  Security  for
          other  Securities  may be made in whole or in part, and all Securities
          issued in exchange for a Global  Security or any portion thereof shall
          be registered in such names as the Depositary for such Global Security
          shall direct.

     (4)  Every  Security  authenticated  and  delivered  upon  registration  of
          transfer  of, or in exchange  for or in lieu of, a Global  Security or
          any portion thereof,  whether  pursuant to this Section,  Section 304,
          306, 906 or 1107 or otherwise, shall be authenticated and delivered in
          the form of, and shall be, a Global Security,  unless such Security is
          registered in the name of a Person other than the  Depositary for such
          Global Security or a nominee thereof.

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

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

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such  security or  indemnity as may be required by them to save each of them and
any agent of either of them  harmless  from any loss that any of them may suffer
if a Security is replaced,  then, in the absence of notice to the Company or the

                                       29
<PAGE>

Trustee  that such  Security  has been  acquired by a bona fide  purchaser,  the
Company shall execute, if applicable the Subsidiary Guarantors shall execute the
Subsidiary  Guarantees  endorsed thereon and the Trustee shall  authenticate and
deliver, in lieu of any such destroyed,  lost or stolen Security, a new Security
of the same series and of like tenor and  principal  amount and bearing a number
not contemporaneously outstanding.

         In case any such  mutilated,  destroyed,  lost or stolen  Security  has
become or is about to become due and payable or is to be converted,  the Company
in its discretion may,  instead of issuing a new Security,  pay or authorize the
conversion of such  Security  (without  surrender  thereof save in the case of a
mutilated Security).

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

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

         The provisions of this Section are exclusive and shall preclude (to the
extent  lawful) all other rights and remedies  with respect to the  replacement,
payment or conversion of mutilated, destroyed, lost or stolen Securities.

Section 307.      Payment of Interest; Interest Rights Preserved.

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

         Any interest on any Security of any series which is payable, but is not
punctually  paid or duly  provided  for, on any  Interest  Payment  Date (herein
called  "Defaulted  Interest") shall forthwith cease to be payable to the Holder
on the relevant  Regular  Record Date by virtue of having been such Holder,  and
such  Defaulted  Interest  may be paid by the  Company,  at its election in each
case, as provided in clause (1) or (2) below:

     (1)  The Company may elect to make payment of any Defaulted Interest to the
          Persons  in whose  names  the  Securities  of such  series  (or  their
          respective  Predecessor  Securities)  are  registered  at the close of
          business on a Special  Record  Date for the payment of such  Defaulted
          Interest,  which shall be fixed in the following  manner.  The Company
          shall  notify  the  Trustee  in  writing  of the  amount of  Defaulted
          Interest  proposed to be paid on each  Security of such series and the
          date of the proposed  payment,  and at the same time the Company shall
          deposit  with the  Trustee an amount of money  equal to the  aggregate

                                       30
<PAGE>

          amount  proposed to be paid in respect of such  Defaulted  Interest or
          shall make  arrangements  satisfactory to the Trustee for such deposit
          prior to the date of the proposed  payment,  such money when deposited
          to be held in trust for the  benefit of the  Persons  entitled to such
          Defaulted  Interest as in this clause provided.  Thereupon the Trustee
          shall fix a Special  Record  Date for the  payment  of such  Defaulted
          Interest  which  shall be not more  than 15 days and not less  than 10
          days prior to the date of the  proposed  payment  and not less than 10
          days after the  receipt by the  Trustee of the notice of the  proposed
          payment. The Trustee shall promptly notify the Company of such Special
          Record Date and, in the name and at the expense of the Company,  shall
          cause notice of the proposed  payment of such  Defaulted  Interest and
          the  Special  Record  Date  therefor  to be  given to each  Holder  of
          Securities  of such series in the manner set forth in Section 106, not
          less than 10 days prior to such  Special  Record  Date.  Notice of the
          proposed  payment of such  Defaulted  Interest and the Special  Record
          Date therefor having been so mailed,  such Defaulted Interest shall be
          paid to the Persons in whose names the  Securities  of such series (or
          their respective  Predecessor  Securities) are registered at the close
          of business on such Special Record Date and shall no longer be payable
          pursuant to the following clause (2).

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

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

Section 308.      Persons Deemed Owners.

         Prior to due  presentment of a Security for  registration  of transfer,
the  Company,  the  Subsidiary  Guarantors,  the  Trustee  and any  agent of the
Company, the Subsidiary Guarantors, or the Trustee may treat the Person in whose
name such  Security is  registered as the owner of such Security for the purpose
of  receiving  payment of  principal  of and any premium and (subject to Section
307) any  interest  on such  Security  and for all  other  purposes  whatsoever,
whether or not such Security be overdue, and neither the Company, any Subsidiary
Guarantor,  the Trustee nor any agent of the Company, any Subsidiary  Guarantor,
or the Trustee shall be affected by notice to the contrary.

Section 309.      Cancellation.

         All  Securities   surrendered   for  payment,   redemption,   purchase,
registration  of transfer or  exchange  or for credit  against any sinking  fund
payment shall, if surrendered to any Person other than the Trustee, be delivered
to the  Trustee and shall be  promptly  cancelled  by it. The Company may at any
time  deliver  to  the  Trustee  for  cancellation  any  Securities   previously

                                       31
<PAGE>

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

Section 310.      Computation of Interest.

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

                                  ARTICLE FOUR

                           SATISFACTION AND DISCHARGE

Section 401.      Satisfaction and Discharge of Indenture.

         This Indenture shall upon Company Request cease to be of further effect
with respect to the Securities of any series, and the Trustee, at the expense of
the Company,  shall execute proper  instruments  acknowledging  satisfaction and
discharge of this Indenture, when

     (1)  either

          (A)  all  Securities  of such  series  theretofore  authenticated  and
               delivered  (other than (i)  Securities  of such series which have
               been  destroyed,  lost or stolen and which have been  replaced or
               paid as  provided  in  Section  306 and (ii)  Securities  of such
               series for whose payment money has theretofore  been deposited in
               trust  or  segregated  and  held  in  trust  by the  Company  and
               thereafter  repaid to the Company or discharged  from such trust,
               as provided in Section  1003) have been  delivered to the Trustee
               for cancellation; or

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

               (i)  have become due and payable, or

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

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

                                       32
<PAGE>

                  and the Company or, if applicable,  a Subsidiary Guarantor, in
                  the  case  of  (i),  (ii)  or  (iii)  above,  has  irrevocably
                  deposited or caused to be deposited  with the Trustee as trust
                  funds in trust for the purpose money in an amount  sufficient,
                  without  consideration of any reinvestment of interest, to pay
                  and discharge the entire  indebtedness  on such Securities not
                  theretofore  delivered  to the Trustee for  cancellation,  for
                  principal  and any  premium  and  interest to the date of such
                  deposit (in the case of  Securities  which have become due and
                  payable) or to the Stated Maturity or Redemption  Date, as the
                  case may be;

     (2)  the Company or a  Subsidiary  Guarantor  has paid or caused to be paid
          all other sums  payable  hereunder  by the Company and the  Subsidiary
          Guarantors with respect to the Securities of such series; and

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

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

Section 402.      Application of Trust Money.

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

                                  ARTICLE FIVE

                                    REMEDIES

Section 501.      Events of Default.

         "Event of Default",  wherever used herein with respect to Securities of
any series,  means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

                                       33
<PAGE>

     (1)  default  in the  payment of any  interest  upon any  Security  of that
          series  when it  becomes  due and  payable,  and  continuance  of such
          default for a period of 30 days; or

     (2)  default  in the  payment  of the  principal  of or any  premium on any
          Security of that series at its Maturity; or

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

     (4)  default in the performance,  or breach, of any covenant of the Company
          or, if a Subsidiary  Guarantor has issued a Subsidiary  Guarantee with
          respect to the Securities of such series, such Subsidiary Guarantor in
          Article Eight of this Indenture; or

     (5)  default in the performance,  or breach, of any covenant or warranty of
          the  Company or, if a  Subsidiary  Guarantor  has issued a  Subsidiary
          Guarantee  with  respect  to  the  Securities  of  such  series,  such
          Subsidiary  Guarantor  in this  Indenture  (other  than a covenant  or
          warranty a default in whose  performance  or whose breach is elsewhere
          in this Section  specifically  dealt with or which has expressly  been
          included  in this  Indenture  solely  for the  benefit  of  series  of
          Securities other than that series), and continuance of such default or
          breach  for a  period  of 60 days  after  there  has  been  given,  by
          registered or certified  mail, to the Company by the Trustee or to the
          Company and the  Trustee by the  Holders of at least 25% in  principal
          amount of the  Outstanding  Securities of that series a written notice
          specifying  such default or breach and requiring it to be remedied and
          stating that such notice is a "Notice of Default" hereunder; or

     (6)  the entry by a court  having  jurisdiction  in the  premises  of (A) a
          decree or order for relief in respect of the Company,  any Significant
          Subsidiary  or, if a  Subsidiary  Guarantor  has  issued a  Subsidiary
          Guarantee  with  respect  to  the  Securities  of  such  series,  such
          Subsidiary  Guarantor in an involuntary  case or proceeding  under any
          applicable Federal or State bankruptcy, insolvency,  reorganization or
          other similar law or (B) a decree or order adjudging the Company,  any
          Significant  Subsidiary  or such  Subsidiary  Guarantor  a bankrupt or
          insolvent,   or  approving  as  properly  filed  a  petition   seeking
          reorganization,  arrangement,  adjustment  or  composition  of  or  in
          respect of the Company, any Significant  Subsidiary or such Subsidiary
          Guarantor  under any applicable  Federal or State law, or appointing a
          custodian,  receiver,  liquidator,  assignee, trustee, sequestrator or
          other similar official of the Company,  any Significant  Subsidiary or
          such Subsidiary  Guarantor or of any substantial  part of its or their
          property,  or ordering the winding up or  liquidation  of its or their
          affairs, and the continuance of any such decree or order for relief or
          any such other decree or order  unstayed and in effect for a period of
          60 consecutive days; or

     (7)  the commencement by the Company,  any Significant  Subsidiary or, if a
          Subsidiary Guarantor has issued a Subsidiary Guarantee with respect to
          the  Securities  of  such  series,  such  Subsidiary  Guarantor  of  a
          voluntary  case or proceeding  under any  applicable  Federal or State
          bankruptcy, insolvency,  reorganization or other similar law or of any
          other case or proceeding to be adjudicated a bankrupt or insolvent, or

                                       34
<PAGE>

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

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

     (9)  any other Event of Default provided with respect to Securities of that
          series.

Section 502.      Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default  (other than an Event of Default with respect to
the Company specified in Section 501(6) or 501(7)) with respect to Securities of
any series at the time Outstanding occurs and is continuing,  then in every such
case the Trustee or the Holders of not less than 25% in principal  amount of the
Outstanding  Securities of that series may declare the  principal  amount of all
the Securities of that series (or, if any Securities of that series are Original
Issue  Discount  Securities,  such  portion  of the  principal  amount  of  such
Securities  as may be  specified  by the terms  thereof)  to be due and  payable
immediately,  by a notice in writing to the Company (and to the Trustee if given
by Holders),  and upon any such  declaration such principal amount (or specified
amount) shall become immediately due and payable,  together with any accrued and
unpaid  interest  thereon.  If an Event of Default  with  respect to the Company
specified in Section  501(6) or 501 (7) with respect to Securities of any series
at the time  Outstanding  occurs,  the principal amount of all the Securities of
that series (or, if any  Securities of that series are Original  Issue  Discount
Securities,  such portion of the principal  amount of such  Securities as may be
specified by the terms thereof) shall automatically, and without any declaration
or other action on the part of the Trustee or any Holder, become immediately due
and payable, together with any accrued and unpaid interest thereon.

                                       35
<PAGE>

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

     (1)  the Company or, if applicable,  any  Subsidiary  Guarantor has paid or
          deposited with the Trustee a sum sufficient to pay

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

          (B)  the principal of (and premium, if any, on) any Securities of that
               series which have become due otherwise  than by such  declaration
               of  acceleration  and any  interest  thereon at the rate or rates
               prescribed therefor in such Securities,

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

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

         and

     (2)  all Events of Default with respect to Securities of that series, other
          than the  non-payment  of the  principal of  Securities of that series
          which has become due solely by such declaration of acceleration,  have
          been cured or waived as provided in Section 513.

No such  rescission  shall  affect  any  subsequent  default or impair any right
consequent thereon.

Section 503.      Collection of Indebtedness and Suits for Enforcement by
                  Trustee.

         The Company covenants that if

     (1)  default is made in the payment of any  interest on any  Security  when
          such interest becomes due and payable and such default continues for a
          period of 30 days, or

     (2)  default is made in the payment of the  principal  of (or  premium,  if
          any, on) any Security at the Maturity thereof,

the Company will, upon demand of the Trustee,  pay to it, for the benefit of the
Holders  of such  Securities,  the whole  amount  then due and  payable  on such
Securities  for  principal  and any premium and interest and, to the extent that
payment of such interest shall be legally  enforceable,  interest on any overdue
principal  and  premium  and on any  overdue  interest,  at the  rate  or  rates
prescribed therefor in such Securities,  and, in addition thereto,  such further
amount as shall be  sufficient  to cover the costs and  expenses of  collection,

                                       36
<PAGE>

including the reasonable compensation,  expenses,  disbursements and advances of
the Trustee, its agents and counsel.

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

Section 504.      Trustee May File Proofs of Claim.

         In  case  of any  judicial  proceeding  relative  to the  Company,  any
Subsidiary  Guarantor or any other obligor upon the Securities,  or the property
or creditors of the Company,  any Subsidiary Guarantor or any other obligor upon
the Securities,  the Trustee shall be entitled and empowered, by intervention in
such proceeding or otherwise,  to take any and all actions  authorized under the
Trust  Indenture  Act in order to have  claims of the  Holders  and the  Trustee
allowed in any such proceeding.  In particular,  the Trustee shall be authorized
to collect and receive any moneys or other  property  payable or  deliverable on
any such  claims  and to  distribute  the  same;  and any  custodian,  receiver,
assignee,  trustee,  liquidator,  sequestrator or other similar  official in any
such  judicial  proceeding  is  hereby  authorized  by each  Holder to make such
payments to the Trustee and, in the event that the Trustee  shall consent to the
making of such  payments  directly  to the  Holders,  to pay to the  Trustee any
amount  due it for the  reasonable  compensation,  expenses,  disbursements  and
advances of the Trustee,  its agents and counsel,  and any other amounts due the
Trustee under Section 607.

         No provision of this Indenture shall be deemed to authorize the Trustee
to  authorize  or consent to or accept or adopt on behalf of any Holder any plan
of  reorganization,   arrangement,   adjustment  or  composition  affecting  the
Securities or any Subsidiary Guarantee 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;  provided,  however, that the Trustee may, on behalf of the Holders,
vote for the election of a trustee in  bankruptcy  or similar  official and be a
member of a creditors' or other similar committee.

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

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

Section 506.      Application of Money Collected.

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

                                       37
<PAGE>

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

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

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

     THIRD: The  balance,  if any, to the  Company or to such other  Person as a
          court of competent jurisdiction shall direct.

Section 507.      Limitation on Suits.

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

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

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

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

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

                                       38
<PAGE>

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

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

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

         Notwithstanding  any other provision in this  Indenture,  the Holder of
any  Security  shall have the right,  which is absolute  and  unconditional,  to
receive payment of the principal of and any premium and (subject to Section 307)
interest on such Security on the respective Stated Maturities  expressed in such
Security  (or, in the case of redemption or offer by the Company to purchase the
Securities  pursuant to the terms of this  Indenture,  on the Redemption Date or
purchase  date, as applicable)  and, if applicable,  to convert such Security in
accordance with its terms, and to institute suit for the enforcement of any such
right, and such rights shall not be impaired without the consent of such Holder.

Section 509.      Restoration of Rights and Remedies.

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

Section 510.      Rights and Remedies Cumulative.

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

Section 511.      Delay or Omission Not Waiver.

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

Section 512.      Control by Holders.

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

                                       39
<PAGE>

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

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

Section 513.      Waiver of Past Defaults.

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

     (1)  in the payment of the  principal  of or any premium or interest on any
          Security of such series  (including  any Security which is required to
          have been purchased by the Company pursuant to an offer to purchase by
          the Company made pursuant to the terms of this Indenture), or

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

         Upon any such waiver,  such default shall cease to exist, and any Event
of  Default  arising  therefrom  shall be deemed to have been  cured,  for every
purpose of this Indenture;  but no such waiver shall extend to any subsequent or
other default or impair any right consequent thereon.

Section 514.      Undertaking for Costs.

         In any suit for the  enforcement  of any  right or  remedy  under  this
Indenture,  or in any suit against the Trustee for any action taken, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an  undertaking to pay the costs of such suit, and may assess costs against
any such party  litigant,  in the manner and to the extent provided in the Trust
Indenture  Act;  provided,  however,  that  neither  this  Section nor the Trust
Indenture  Act  shall be  deemed  to  authorize  any  court to  require  such an
undertaking or to make such an assessment in any suit  instituted by the Company
or any Subsidiary Guarantor.

Section 515.      Waiver of Usury, Stay or Extension Laws.

         Each of the Company and the  Subsidiary  Guarantors  covenants  (to the
extent that it may lawfully do so) that it will not at any time insist upon,  or
plead,  or in any manner  whatsoever  claim or take the benefit or advantage of,
any usury, stay or extension law wherever enacted,  now or at any time hereafter
in force,  which may affect the covenants or the  performance of this Indenture;
and each of the Company and the Subsidiary Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and  covenants  that it will not hinder,  delay or impede the  execution  of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

                                       40
<PAGE>

                                  ARTICLE SIX

                                   THE TRUSTEE

Section 601.      Certain Duties and Responsibilities.

         The duties and  responsibilities  of the Trustee  shall be as expressly
set  forth  in this  Indenture  and as  provided  by the  Trust  Indenture  Act.
Notwithstanding the foregoing,  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. Whether or not therein  expressly
so  provided,  every  provision  of this  Indenture  relating  to the conduct or
affecting  the  liability of or  affording  protection  to the Trustee  shall be
subject to the provisions of this Section.

Section 602.      Notice of Defaults.

         If a default occurs hereunder with respect to Securities of any series,
the Trustee  shall give the Holders of  Securities of such series notice of such
default as and to the extent  provided  by the Trust  Indenture  Act;  provided,
however,  that in the case of any default of the character  specified in Section
501(5) with  respect to  Securities  of such  series,  no such notice to Holders
shall be given  until at least 30 days  after the  occurrence  thereof.  For the
purpose of this Section,  the term "default"  means any event which is, or after
notice or lapse of time or both would  become,  an Event of Default with respect
to Securities of such series.

Section 603.      Certain Rights of Trustee.

         Subject to the provisions of Section 601:

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

     (2)  any request or  direction  of the Company  mentioned  herein  shall be
          sufficiently  evidenced by a Company Request or Company Order, and any
          resolution of the Board of Directors shall be  sufficiently  evidenced
          by a Board Resolution;

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

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

                                       41
<PAGE>

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

     (6)  the  Trustee  shall  not be bound to make any  investigation  into the
          facts or matters  stated in any  resolution,  certificate,  statement,
          instrument,  opinion,  report, notice,  request,  direction,  consent,
          order, bond, debenture,  note, other evidence of indebtedness or other
          paper or document,  but the Trustee, in its discretion,  may make such
          further inquiry or investigation  into such 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 to examine the books,
          records  and  premises  of the  Company,  personally  or by  agent  or
          attorney; and

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

Section 604.      Not Responsible for Recitals or Issuance of Securities.

         The recitals  contained herein and in the Securities and the Subsidiary
Guarantees, except the Trustee's certificates of authentication,  shall be taken
as the statements of the Company or the Subsidiary  Guarantors,  as the case may
be,  and  neither  the  Trustee  nor  any   Authenticating   Agent  assumes  any
responsibility for their correctness. The Trustee makes no representations as to
the  validity or  sufficiency  of this  Indenture  or of the  Securities  or the
Subsidiary   Guarantees   endorsed   thereon.   Neither   the  Trustee  nor  any
Authenticating  Agent shall be  accountable  for the use or  application  by the
Company of Securities or the proceeds thereof.

Section 605.      May Hold Securities.

         The Trustee,  any Authenticating  Agent, any Paying Agent, any Security
Registrar or any other agent of the Company or any Subsidiary Guarantor,  in its
individual or any other capacity,  may become the owner or pledgee of Securities
and,  subject to Sections 608 and 613, may  otherwise  deal with the Company and
any  Subsidiary  Guarantor  with the same  rights  it would  have if it were not
Trustee,  Authenticating  Agent, Paying Agent,  Security Registrar or such other
agent.

Section 606.      Money Held in Trust.

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

                                       42
<PAGE>

Section 607.      Compensation and Reimbursement.

         The Company and each Subsidiary Guarantor jointly and severally agree

     (1)  to pay to the Trustee from time to time  reasonable  compensation  for
          all services rendered by it hereunder (which compensation shall not be
          limited by any  provision  of law in regard to the  compensation  of a
          trustee of an express trust);

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

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

Section 608.      Conflicting Interests.

         If the Trustee has or shall acquire a conflicting  interest  within the
meaning of the Trust  Indenture  Act, the Trustee  shall either  eliminate  such
interest or resign,  to the extent and in the manner provided by, and subject to
the provisions  of, the Trust  Indenture Act and this  Indenture.  To the extent
permitted  by such Act,  the Trustee  shall not be deemed to have a  conflicting
interest  by virtue of being a trustee  under  this  Indenture  with  respect to
Securities of more than one series.

Section 609.      Corporate Trustee Required; Eligibility.

         There shall at all times be one (and only one) Trustee  hereunder  with
respect to the  Securities  of each series,  which may be Trustee  hereunder for
Securities of one or more other  series.  Each Trustee shall be a Person that is
eligible  pursuant to the Trust Indenture Act to act as such, and has a combined
capital  and  surplus  of at least  $50,000,000.  If any such  Person  publishes
reports of condition at least annually,  pursuant to law or to the  requirements
of its supervising or examining authority, then for the purposes of this Section
and to the extent permitted by the Trust Indenture Act, the combined capital and
surplus of such Person shall be deemed to be its combined capital and surplus as
set forth in its most recent  report of condition so  published.  If at any time
the  Trustee  with  respect to the  Securities  of any series  shall cease to be
eligible in accordance  with the  provisions  of this  Section,  it shall resign
immediately  in the  manner and with the effect  hereinafter  specified  in this
Article.

                                       43
<PAGE>

Section 610.      Resignation and Removal; Appointment of Successor.

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

         The Trustee may resign at any time with  respect to the  Securities  of
one or more  series by giving  written  notice  thereof to the  Company.  If the
instrument of acceptance  by a successor  Trustee  required by Section 611 shall
not have been  delivered to the Trustee  within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction  for the  appointment  of a successor  Trustee  with respect to the
Securities of such series.

         The Trustee may be removed at any time with  respect to the  Securities
of any series by Act of the  Holders of a majority  in  principal  amount of the
Outstanding  Securities  of such  series,  delivered  to the  Trustee and to the
Company.

         If at any time:

          (1)  the Trustee  shall fail to comply with Section 608 after  written
               request  therefor  by the Company or by any Holder who has been a
               bona fide Holder of a Security for at least six months, or

          (2)  the  Trustee  shall cease to be  eligible  under  Section 609 and
               shall  fail to  resign  after  written  request  therefor  by the
               Company or by any such Holder, or

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

then,  in any such case,  (A) the Company by a Board  Resolution  may remove the
Trustee  with  respect to all  Securities,  or (B) subject to Section  514,  any
Holder  who has been a bona fide  Holder of a  Security  for at least six months
may, on behalf of himself and all others similarly situated,  petition any court
of  competent  jurisdiction  for the removal of the Trustee  with respect to all
Securities and the appointment of a successor Trustee or Trustees.

         If the Trustee shall resign,  be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any cause, with respect
to the  Securities of one or more series,  the Company,  by a Board  Resolution,
shall  promptly  appoint a  successor  Trustee or Trustees  with  respect to the
Securities of that or those series (it being  understood that any such successor
Trustee may be appointed with respect to the Securities of one or more or all of
such series and that at any time there shall be only one Trustee with respect to
the  Securities of any  particular  series) and shall comply with the applicable
requirements of Section 611. If, within one year after such resignation, removal
or  incapability,  or the occurrence of such vacancy,  a successor  Trustee with
respect to the Securities of any series shall be appointed by Act of the Holders
of a majority in principal  amount of the Outstanding  Securities of such series

                                       44
<PAGE>

delivered  to the Company and the retiring  Trustee,  the  successor  Trustee so
appointed shall, forthwith upon its acceptance of such appointment in accordance
with the applicable  requirements of Section 611,  become the successor  Trustee
with respect to the  Securities of such series and to that extent  supersede the
successor Trustee appointed by the Company. If no successor Trustee with respect
to the  Securities  of any series shall have been so appointed by the Company or
the Holders and accepted  appointment in the manner required by Section 611, any
Holder who has been a bona fide Holder of a Security of such series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent  jurisdiction for the appointment of a successor  Trustee
with respect to the Securities of such series.

         The Company shall give notice of each  resignation  and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor  Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner  provided in Section 106. Each notice
shall include the name of the successor  Trustee with respect to the  Securities
of such series and the address of its Corporate Trust Office.

Section 611.      Acceptance of Appointment by Successor.

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

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

                                       45
<PAGE>

conveyance,  shall become vested with all the rights,  powers, trusts and duties
of the retiring  Trustee with respect to the  Securities of that or those series
to which the appointment of such successor  Trustee relates;  but, on request of
the Company or any successor  Trustee,  such retiring Trustee shall duly assign,
transfer  and deliver to such  successor  Trustee all property and money held by
such retiring Trustee  hereunder with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates.

         Upon  request  of any  such  successor  Trustee,  the  Company  and the
Subsidiary  Guarantors  shall execute any and all instruments for more fully and
certainly  vesting in and confirming to such successor  Trustee all such rights,
powers and trusts referred to in the first or second preceding paragraph, as the
case may be.

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

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

         Any Person into which the Trustee  may be merged or  converted  or with
which  it  may be  consolidated,  or  any  Person  resulting  from  any  merger,
conversion or consolidation to which the Trustee shall be a party, or any Person
succeeding  to all or  substantially  all the  corporate  trust  business of the
Trustee,  shall be the successor of the Trustee hereunder,  provided such Person
shall be  otherwise  qualified  and  eligible  under this  Article,  without the
execution  or filing of any paper or any  further  act on the part of any of the
parties  hereto.  As soon as  practicable,  the  successor  Trustee shall mail a
notice of its succession to the Company and the Holders of the  Securities  then
Outstanding.  In case any  Securities  shall  have been  authenticated,  but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such  authenticating  Trustee may adopt such authentication and
deliver  the  Securities  so  authenticated  with  the  same  effect  as if such
successor Trustee had itself authenticated such Securities.

Section 613.      Preferential Collection of Claims Against Company and
                  Subsidiary Guarantors.

         If and when the Trustee  shall be or become a creditor of the  Company,
any Subsidiary  Guarantor or any other obligor upon the Securities,  the Trustee
shall be subject to the  provisions  of the Trust  Indenture  Act  regarding the
collection of claims against the Company,  such Subsidiary Guarantor or any such
other obligor.

Section 614.      Appointment of Authenticating Agent.

         The Trustee may appoint an Authenticating  Agent or Agents with respect
to one or more series of  Securities  which shall be authorized to act on behalf
of the Trustee to  authenticate  Securities  of such series issued upon original
issue  and upon  exchange,  registration  of  transfer,  conversion  or  partial
redemption  thereof or pursuant to Section 306, and Securities so  authenticated
shall be  entitled  to the  benefits  of this  Indenture  and shall be valid and
obligatory  for all  purposes  as if  authenticated  by the  Trustee  hereunder.
Wherever  reference is made in this Indenture to the authentication and delivery
of  Securities by the Trustee or the Trustee's  certificate  of  authentication,
such reference shall be deemed to include  authentication and delivery on behalf

                                       46
<PAGE>

of the Trustee by an  Authenticating  Agent and a certificate of  authentication
executed  on  behalf  of  the   Trustee  by  an   Authenticating   Agent.   Each
Authenticating  Agent shall be  acceptable to the Company and shall at all times
be a Person  organized and doing business under the laws of the United States of
America,  any State thereof or the District of Columbia,  authorized  under such
laws to act as  Authenticating  Agent,  having a combined capital and surplus of
not less than  $50,000,000  and subject to supervision or examination by Federal
or State authority.  If such Authenticating Agent publishes reports of condition
at least annually, pursuant to law or to the requirements of said supervising or
examining authority, then for the purposes of this Section, the combined capital
and  surplus of such  Authenticating  Agent  shall be deemed to be its  combined
capital  and  surplus as set forth in its most  recent  report of  condition  so
published.  If at any time an Authenticating Agent shall cease to be eligible in
accordance with the provisions of this Section,  such Authenticating Agent shall
resign immediately in the manner and with the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an  Authenticating  Agent by giving written notice thereof to such
Authenticating  Agent  and to the  Company.  Upon  receiving  such a  notice  of
resignation  or  upon  such  a  termination,   or  in  case  at  any  time  such
Authenticating  Agent  shall  cease  to  be  eligible  in  accordance  with  the
provisions of this Section,  the Trustee may appoint a successor  Authenticating
Agent  which  shall be  acceptable  to the Company and shall give notice of such
appointment  in the manner  provided in Section 106 to all Holders of Securities
of the series with respect to which such  Authenticating  Agent will serve.  Any
successor  Authenticating  Agent upon  acceptance of its  appointment  hereunder
shall become  vested with all the rights,  powers and duties of its  predecessor
hereunder,  with like effect as if originally named as an Authenticating  Agent.
No successor  Authenticating  Agent shall be appointed unless eligible under the
provisions of this Section.

         The  Trustee  agrees to pay to each  Authenticating  Agent from time to
time  reasonable  compensation  for its  services  under this  Section,  and the
Trustee shall be entitled to be  reimbursed  for such  payments,  subject to the
provisions of Section 607.

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

                                       47
<PAGE>

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

                                         Wells Fargo Bank, National Association,
                                                As Trustee

                                         By: ______________________,
                                             As Authenticating Agent

                                         By: ______________________,
                                             Authorized Officer

                                 ARTICLE SEVEN

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

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

         The Company  will  furnish or cause to be furnished to the Trustee with
respect to the Securities of each series:

          (1)  not more than 10 days after each record date with  respect to the
               payment of interest,  if any, a list, in such form as the Trustee
               may reasonably require, of the names and addresses of the Holders
               of Securities of such series as of such record date, and

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

excluding from any such list names and addresses  received by the Trustee in its
capacity as Security Registrar.

Section 702.      Preservation of Information; Communications to Holders.

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

                                       48
<PAGE>

         The rights of Holders to communicate with other Holders with respect to
their rights under this Indenture or under the Securities, and the corresponding
rights  and  privileges  of the  Trustee,  shall  be as  provided  by the  Trust
Indenture Act.

         Every Holder of Securities,  by receiving and holding the same,  agrees
with the Company and the  Trustee  that  neither  the  Company,  the  Subsidiary
Guarantors  nor  the  Trustee  nor  any  agent  of any of  them  shall  be  held
accountable by reason of any disclosure of information as to names and addresses
of Holders made pursuant to the Trust Indenture Act.

Section 703.      Reports by Trustee.

         The Trustee  shall  transmit to Holders  such  reports  concerning  the
Trustee and its actions under this Indenture as may be required  pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto.

         A copy of each such report shall,  at the time of such  transmission to
Holders,  be filed by the  Trustee  with  each  stock  exchange  upon  which any
Securities  are listed,  with the  Commission  and with the Company and with the
Subsidiary  Guarantors.  The Company will notify the Trustee when any Securities
are listed on any stock exchange.

Section 704.      Reports by Company and Subsidiary Guarantors.

         The Company and each of the Subsidiary  Guarantors  shall file with the
Trustee and the Commission, and transmit to Holders, such information, documents
and other reports,  and such summaries  thereof,  as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant to such
Act;  provided that any such  information,  documents or reports  required to be
filed with the  Commission  pursuant to Section 13 or 15(d) of the  Exchange Act
shall be filed with the Trustee  within 15 days after the same is so required to
be filed with the Commission.

                                 ARTICLE EIGHT

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

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

         The Company shall not, in a single  transaction  or a series of related
transactions,  consolidate  with or merge  into any other  Person or permit  any
other  Person to  consolidate  with or merge into the  Company  or,  directly or
indirectly,  transfer,  convey,  sell,  lease  or  otherwise  dispose  of all or
substantially all of its assets, unless:

     (1)  in a transaction in which the Company does not survive or in which the
          Company transfers, conveys, sells, leases or otherwise disposes of all
          or substantially all of its assets, the successor entity (for purposes
          of this Article Eight, a "Successor  Company") shall be a corporation,
          partnership,  trust or other  entity  organized  and validly  existing
          under the laws of the United  States of America,  any State thereof or
          the District of Columbia,  and shall expressly assume, by an indenture
          supplemental  hereto,  executed and delivered to the Trustee,  in form
          satisfactory  to the  Trustee,  the due and  punctual  payment  of the
          principal  of and any premium and interest on all the  Securities  and
          the  performance  or observance of every covenant of this Indenture on
          the part of the Company to be performed or observed;

                                       49
<PAGE>

     (2)  immediately   before  and  after  giving  pro  forma  effect  to  such
          transaction and treating any indebtedness  which becomes an obligation
          of the Company or any  Subsidiary as a result of such  transaction  as
          having been incurred by the Company or such  Subsidiary at the time of
          such  transaction,  no Event of  Default,  and no event  which,  after
          notice or lapse of time or both,  would  become  an Event of  Default,
          shall have happened and be continuing;

     (3)  if, as a result of any such  consolidation or merger or such transfer,
          conveyance, sale, lease or other disposition,  properties or assets of
          the Company would become subject to a mortgage, pledge, lien, security
          interest or other  encumbrance  which would not be  permitted  by this
          Indenture,  the Company or the Successor Company,  as the case may be,
          shall take such steps as shall be necessary  effectively to secure the
          Securities  equally  and ratably  with (or prior to) all  indebtedness
          secured thereby;

     (4)  any other conditions  provided pursuant to Section 301 with respect to
          the Securities of a series are satisfied; and

     (5)  the Company has delivered to the Trustee an Officers'  Certificate and
          an Opinion of Counsel,  each stating that such consolidation,  merger,
          transfer,  conveyance,  sale,  lease or other  disposition  and,  if a
          supplemental   indenture   is   required  in   connection   with  such
          transaction,  such supplemental indenture comply with this Article and
          that all  conditions  precedent  herein  provided for relating to such
          transaction have been complied with.

Section 802.      Subsidiary Guarantors May Consolidate, Etc., Only on Certain
                  Terms.

         Except  in a  transaction  resulting  in the  release  of a  Subsidiary
Guarantor  in  accordance  with the  terms of this  Indenture,  each  Subsidiary
Guarantor  shall not, and the Company shall not permit any Subsidiary  Guarantor
to, in a single or a series of related  transactions,  consolidate or merge with
or into any Person (other than the Company or another  Subsidiary  Guarantor) or
permit any Person  (other than the Company or another  Subsidiary  Guarantor) to
consolidate  or merge with or into such  Subsidiary  Guarantor  or,  directly or
indirectly,  transfer,  convey,  sell,  lease  or  otherwise  dispose  of all or
substantially all of its assets unless, in each case:

     (1)  in a transaction in which such  Subsidiary  Guarantor does not survive
          or in which all or substantially  all of the assets of such Subsidiary
          Guarantor  are  transferred,   conveyed,  sold,  leased  or  otherwise
          disposed  of,  the  successor   entity  (the   "Successor   Subsidiary
          Guarantor") shall be a corporation, partnership, trust or other entity

                                       50
<PAGE>

          organized and validly  existing under the laws of the United States of
          America,  any State  thereof or the  District of  Columbia,  and shall
          expressly  assume by an  indenture  supplemental  hereto  executed and
          delivered to the Trustee, in form satisfactory to the Trustee, the due
          and punctual  payment of all obligations of such Subsidiary  Guarantor
          under its Subsidiary  Guarantee and this Indenture and the performance
          of every  covenant of this  Indenture  on the part of such  Subsidiary
          Guarantor to be performed or observed; and

     (2)  the Company has delivered to the Trustee an Officers'  Certificate and
          an Opinion of Counsel,  each stating that such consolidation,  merger,
          transfer,  conveyance,  sale,  lease or other  disposition  and,  if a
          supplemental   indenture   is   required  in   connection   with  such
          transaction, such supplemental indenture, comply with this Article and
          that all  conditions  precedent  herein  provided for relating to such
          transaction have been complied with.

Section 803.      Successor Substituted.

(a) Upon any  consolidation  of the Company with, or merger of the Company into,
any other Person or any transfer,  conveyance,  sale, lease or other disposition
of all or  substantially  all of the assets of the  Company in  accordance  with
Section 801, the Successor Company shall succeed to, and be substituted for, and
may exercise every right and power of, the Company under this Indenture with the
same effect as if such  successor  Person had been named as the Company  herein,
and thereafter,  except in the case of a lease, the predecessor  Person shall be
relieved  of  all  obligations  and  covenants  under  this  Indenture  and  the
Securities.

(b) Upon any  consolidation  of a Subsidiary  Guarantor  with, or merger of such
Subsidiary Guarantor into, any other Person or any transfer,  conveyance,  sale,
lease or other  disposition  of all or  substantially  all of the assets of such
Subsidiary  Guarantor in accordance  with Section 802, the Successor  Subsidiary
Guarantor shall succeed to, and be substituted for, and may exercise every right
and power of,  such  Subsidiary  Guarantor  under this  Indenture  with the same
effect as if such  successor  Person  had been named as a  Subsidiary  Guarantor
herein,  and thereafter,  except in the case of a lease, the predecessor  Person
shall be relieved of all  obligations and covenants under this Indenture and its
Subsidiary Guarantee.

                                  ARTICLE NINE

                             SUPPLEMENTAL INDENTURES

Section 901.      Supplemental Indentures Without Consent of Holders.

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

     (1)  to evidence  the  succession  of another  Person to the Company or any
          Subsidiary  Guarantor and the  assumption by any such successor of the
          covenants of the Company or any Subsidiary Guarantor herein and in the
          Securities or Subsidiary Guarantees, as the case may be; or

     (2)  to add to the  covenants of the Company for the benefit of the Holders
          of all or any series of  Securities  (and if such  covenants are to be
          for the benefit of less than all series of  Securities,  stating  that

                                       51
<PAGE>

          such covenants are expressly  being included solely for the benefit of
          such series) or to surrender any right or power herein  conferred upon
          the Company; or

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

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

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

     (6)  to secure the Securities; or

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

     (8)  to evidence and provide for the acceptance of appointment hereunder by
          a successor  Trustee  with  respect to the  Securities  of one or more
          series and to add to or change any of the provisions of this Indenture
          as shall be necessary to provide for or facilitate the  administration
          of the trusts  hereunder  by more than one  Trustee,  pursuant  to the
          requirements of Section 611; or

     (9)  to cure any ambiguity,  to correct or supplement any provision  herein
          which  may be  defective  or  inconsistent  with any  other  provision
          herein; or

     (10) to make any other  provisions  with  respect to  matters or  questions
          arising under this  Indenture,  provided that such action  pursuant to
          this  clause  (10) shall not  adversely  affect the  interests  of the
          Holders of Securities of any series in any material respect; or

     (11) to add new Subsidiary Guarantors.

Section 902.      Supplemental Indentures With Consent of Holders.

         With  the  consent  of the  Holders  of not  less  than a  majority  in
principal  amount of the Outstanding  Securities of each series affected by such
supplemental  indenture,  by Act of said Holders  delivered to the Company,  the

                                       52
<PAGE>

Subsidiary  Guarantors and the Trustee, the Company,  when authorized by a Board
Resolution, the Subsidiary Guarantors, when authorized by their respective Board
Resolutions   and  the  Trustee  may  enter  into  an  indenture  or  indentures
supplemental  hereto for the purpose of adding any  provisions to or changing in
any  manner  or  eliminating  any of the  provisions  of  this  Indenture  or of
modifying in any manner the rights of the Holders of  Securities  of such series
under this Indenture;  provided,  however,  that no such supplemental  indenture
shall,  without the consent of the Holder of each Outstanding  Security affected
thereby:

     (1)  change the Stated  Maturity of the principal of, or any installment of
          principal of or interest  on, any  Security,  or reduce the  principal
          amount thereof or the rate of interest  thereon or any premium payable
          upon the redemption  thereof, or reduce the amount of the principal of
          an Original Issue Discount  Security or any other Security which would
          be due and payable upon a declaration of  acceleration of the Maturity
          thereof pursuant to Section 502, or change any Place of Payment where,
          or the coin or  currency  in which,  any  Security  or any  premium or
          interest thereon is payable, or impair the right to institute suit for
          the  enforcement  of (a) any  such  payment  on or  after  the  Stated
          Maturity  thereof  (or,  in the case of  redemption,  on or after  the
          Redemption  Date or in the  case of an offer  to  purchase  Securities
          which  has  been  made  pursuant  to  a  covenant  contained  in  this
          Indenture,  on or  after  the  applicable  purchase  date)  or (b) any
          conversion  right  with  respect  to  any  Security,   or  modify  the
          provisions  of this  Indenture  with respect to the  conversion of the
          Securities,  in a  manner  adverse  to the  Holders,  or  release  any
          Subsidiary Guarantee other than as provided in this Indenture; or

     (2)  reduce  the  percentage  in  principal   amount  of  the   Outstanding
          Securities of any series, the consent of whose Holders is required for
          any such  supplemental  indenture,  or the consent of whose Holders is
          required for any waiver (of compliance with certain provisions of this
          Indenture  or  certain  defaults  hereunder  and  their  consequences)
          provided for in this Indenture; or

     (3)  modify any of the  provisions of this Section,  Section 513 or Section
          1009,  except to  increase  any such  percentage  or to  provide  that
          certain  other  provisions  of this  Indenture  cannot be  modified or
          waived without the consent of the Holder of each Outstanding  Security
          affected  thereby;  provided,  however,  that this clause shall not be
          deemed to require the consent of any Holder with respect to changes in
          the  references  to "the  Trustee"  and  concomitant  changes  in this
          Section  and  Section  1009,  or the  deletion  of  this  proviso,  in
          accordance with the requirements of Sections 611 and 901(8); or

     (4)  following  the  making  of an offer to  purchase  Securities  from any
          Holder  which has been made  pursuant to a covenant  contained in this
          Indenture,  modify the  provisions of this  Indenture  with respect to
          such offer to purchase in a manner adverse to such Holder.

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

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<PAGE>

         It shall not be necessary  for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.

Section 903.      Execution of Supplemental Indentures.

         In  executing,  or  accepting  the  additional  trusts  created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture,  the Trustee shall be entitled to receive,
and  (subject  to Section  601) shall be fully  protected  in relying  upon,  an
Opinion of Counsel stating that the execution of such supplemental  indenture is
authorized  or  permitted by this  Indenture.  The Trustee may, but shall not be
obligated  to,  enter into any such  supplemental  indenture  which  affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

Section 904.      Effect of Supplemental Indentures.

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

Section 905.      Conformity with Trust Indenture Act.

         Every  supplemental  indenture  executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act.

Section 906.      Reference in Securities to Supplemental Indentures.

         Securities  of  any  series   authenticated  and  delivered  after  the
execution of any supplemental  indenture pursuant to this Article may, and shall
if required by the Trustee,  bear a notation in form  approved by the Trustee as
to any matter provided for in such supplemental  indenture. If the Company shall
so determine,  new  Securities  of any series so modified as to conform,  in the
opinion of the Trustee and the Company,  to any such supplemental  indenture may
be prepared and executed by the Company, if applicable the Subsidiary Guarantees
may be  endorsed  thereon  and  such new  Securities  may be  authenticated  and
delivered by the Trustee in exchange for Outstanding Securities of such series.

                                  ARTICLE TEN

                                    COVENANTS

Section 1001.     Payment of Principal, Premium and Interest.

         The  Company  covenants  and agrees for the  benefit of each  series of
Securities that it will duly and punctually pay the principal of and any premium
and interest on the  Securities of that series in  accordance  with the terms of
the  Securities and this  Indenture.  Principal,  premium,  if any, and interest
shall be considered  paid on the date due if the Paying Agent, if other than the

                                       54
<PAGE>

Company or a Subsidiary thereof,  holds as of 11:00 A.M., New York City time, on
the due date money  deposited by the Company in immediately  available funds and
designated  for  and  sufficient  to pay all  principal,  premium,  if any,  and
interest then due.

Section 1002.     Maintenance of Office or Agency.

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

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

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

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

         Whenever  the  Company  shall  have one or more  Paying  Agents for any
series of Securities,  it will, prior to 11:00 A.M., New York City time, on each
due date of the  principal  of or any premium or interest on any  Securities  of
that series,  deposit with a Paying Agent a sum  sufficient  to pay such amount,
such sum to be held as provided by the Trust  Indenture  Act,  and (unless  such
Paying Agent is the Trustee) the Company will promptly notify the Trustee of its
action or failure so to act.

         The Company will cause each Paying  Agent for any series of  Securities
other than the Trustee to execute and  deliver to the Trustee an  instrument  in
which such Paying Agent shall agree with the Trustee,  subject to the provisions

                                       55
<PAGE>

of this Section,  that such Paying Agent will (1) comply with the  provisions of
the Trust  Indenture  Act  applicable to it as a Paying Agent and (2) during the
continuance  of any  default  by the  Company,  the  Subsidiary  Guarantors,  if
applicable,  or any other  obligor  upon the  Securities  of that  series in the
making of any  payment in respect of the  Securities  of that  series,  upon the
written  request of the Trustee,  forthwith  pay to the Trustee all sums held in
trust by such  Paying  Agent for  payment in respect of the  Securities  of that
series.

         The  Company  may at  any  time,  for  the  purpose  of  obtaining  the
satisfaction  and discharge of this Indenture or for any other purpose,  pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying  Agent,  such sums to be held by the Trustee
upon the same  trusts as those upon which such sums were held by the  Company or
such Paying  Agent;  and,  upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further  liability  with respect to
such money.

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

Section 1004.     Statement by Officers as to Default.

(a) The Company  and the  Subsidiary  Guarantors  will  deliver to the  Trustee,
within 90 days after the end of each fiscal year of the Company ending after the
date  hereof,  an  Officers'  Certificate,  stating  whether  or not to the best
knowledge of the signers thereof the Company or any Subsidiary Guarantor, as the
case may be, is in  default  in the  performance  and  observance  of any of the
terms, provisions and conditions of this Indenture (without regard to any period
of grace or requirement of notice provided hereunder) and, if the Company or any
Subsidiary  Guarantor shall be in default,  specifying all such defaults and the
nature and status thereof of which they may have knowledge.

(b) The Company and each Subsidiary  Guarantor shall deliver to the Trustee,  as
soon as  possible  and in any event  within  five days after the Company or such
Subsidiary  Guarantor  becomes  aware or should  reasonably  become aware of the
occurrence of an Event of Default or an event which, with notice or the lapse of
time or both,  would  constitute an Event of Default,  an Officers'  Certificate
setting  forth the details of such Event of Default or  default,  and the action
which the Company or such  Subsidiary  Guarantor  proposes to take with  respect
thereto.

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<PAGE>

Section 1005.     Existence.

         Subject to Article  Eight,  the Company will do or cause to be done all
things  necessary to preserve  and keep in full force and effect the  existence,
rights (charter and statutory) and franchises of the Company; provided, however,
that the Company  shall not be required to preserve  any such right or franchise
if it shall determine that the  preservation  thereof is no longer  desirable in
the conduct of the  business  of the  Company  and that the loss  thereof is not
disadvantageous in any material respect to the Holders.

Section 1006.     Maintenance of Properties.

         The Company will cause all properties  used or useful in the conduct of
its business or the business of any Subsidiary to be maintained and kept in good
condition,  repair and working  order  (reasonable  wear and tear  excepted) and
supplied  with all  necessary  equipment and will cause to be made all necessary
repairs, renewals, replacements, betterments and improvements thereof, all as in
the judgment of the Company may be necessary so that the business  carried on in
connection therewith may be properly and advantageously  conducted at all times;
provided,  however,  that nothing in this Section shall prevent the Company from
discontinuing  the operation or  maintenance  of any of such  properties if such
discontinuance  is, in the judgment of the Company,  desirable in the conduct of
its business or the business of any  Subsidiary and not  disadvantageous  in any
material respect to the Holders.

Section 1007.     Payment of Taxes and Other Claims.

         The Company will pay or  discharge  or cause to be paid or  discharged,
before  the  same  shall  become  delinquent,  (1) all  taxes,  assessments  and
governmental  charges  levied or imposed upon the Company or any  Subsidiary  or
upon the income,  profits or property of the Company or any Subsidiary,  and (2)
all lawful claims for labor,  materials and supplies which, if unpaid,  might by
law become a lien upon the property of the Company or any Subsidiary;  provided,
however,  that the Company shall not be required to pay or discharge or cause to
be paid or discharged  any such tax,  assessment,  charge or claim whose amount,
applicability  or  validity  is being  contested  in good  faith by  appropriate
proceedings.

Section 1008.     Maintenance of Insurance.

         The Company  shall,  and shall cause its  Subsidiaries  to, keep at all
times all of their  properties  which are of an insurable nature insured against
loss or damage with insurers  believed by the Company to be  responsible  to the
extent that property of similar  character is usually so insured by corporations
similarly  situated and owning like  properties in accordance with good business
practice.

Section 1009.     Waiver of Certain Covenants.

         Except as  otherwise  specified  as  contemplated  by  Section  301 for
Securities of such series,  the Company may,  with respect to the  Securities of
any series, omit in any particular  instance to comply with any term,  provision
or condition  set forth in any of Sections  1005 through 1008 or in any covenant
provided  pursuant to Section  301(21),  901(2) or 901(7) for the benefit of the
Holders of such series if before the time for such  compliance the Holders of at

                                       57
<PAGE>

least a majority  in  principal  amount of the  Outstanding  Securities  of such
series  shall,  by Act of such  Holders,  either waive such  compliance  in such
instance or generally waive  compliance with such term,  provision or condition,
but no such waiver shall  extend to or affect such term,  provision or condition
except to the extent so expressly  waived,  and,  until such waiver shall become
effective,  the  obligations  of the  Company  and the duties of the  Trustee in
respect of any such term,  provision or condition shall remain in full force and
effect.

                                 ARTICLE ELEVEN

                            REDEMPTION OF SECURITIES

Section 1101.     Applicability of Article.

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

Section 1102.     Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities shall be evidenced
by a Board  Resolution or in another manner specified as contemplated by Section
301 for  such  Securities.  In case of any  redemption  at the  election  of the
Company  of less  than all the  Securities  of any  series  (including  any such
redemption  affecting only a single Security),  the Company shall, at least five
Business Days prior to giving notice of such redemption (unless a shorter notice
shall be  satisfactory  to the Trustee),  notify the Trustee of such  Redemption
Date, of the  principal  amount of Securities of such series to be redeemed and,
if applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities  prior to the  expiration  of any  restriction  on such
redemption  provided  in the  terms  of such  Securities  or  elsewhere  in this
Indenture,  the Company shall furnish the Trustee with an Officers'  Certificate
evidencing compliance with such restriction.

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

         If less  than  all the  Securities  of any  series  are to be  redeemed
(unless all the  Securities  of such  series and of a specified  tenor are to be
redeemed  or  unless  such  redemption  affects  only a  single  Security),  the
particular  Securities to be redeemed shall be selected by the Trustee, from the
Outstanding Securities of such series not previously called for redemption,  (i)
in  compliance  with  the  requirements  of the  principal  national  securities
exchange on which such  Securities are listed,  if such Securities are listed on
any national securities exchange, and (ii) if such Securities are not so listed,
on a pro rata basis,  by lot or by such other  method as the Trustee  shall deem
fair and appropriate and which may provide for the selection for redemption of a
portion of the  principal  amount of any Security of such series,  provided that
the  unredeemed  portion of the principal  amount of any Security shall be in an
authorized  denomination  (which  shall not be less than the minimum  authorized

                                       58
<PAGE>

denomination) for such Security.  If less than all the Securities of such series
and of a specified tenor are to be redeemed (unless such redemption affects only
a single Security),  the particular  Securities to be redeemed shall be selected
by the Trustee,  from the  Outstanding  Securities  of such series and specified
tenor not  previously  called for  redemption in  accordance  with the preceding
sentence.

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

         The  provisions  of the two preceding  paragraphs  shall not apply with
respect  to any  redemption  affecting  only a  single  Security,  whether  such
Security  is to be  redeemed  in  whole  or in  part.  In the  case of any  such
redemption  in part,  the  unredeemed  portion  of the  principal  amount of the
Security  shall be in an authorized  denomination  (which shall not be less than
the minimum authorized denomination) for such Security.

         For all  purposes  of this  Indenture,  unless  the  context  otherwise
requires,  all provisions relating to the redemption of Securities shall relate,
in the case of any  Securities  redeemed or to be redeemed  only in part, to the
portion of the principal  amount of such  Securities  which has been or is to be
redeemed.  If any Security  selected for partial  redemption is surrendered  for
conversion after such selection, the converted portion of such Security shall be
deemed (so far as may be) to be the portion  selected for  redemption.  Upon any
redemption  of less  than  all the  Securities  of a  series,  for  purposes  of
selection for  redemption  the Company and the Trustee may treat as  Outstanding
Securities  surrendered  for  conversion  during  the  period  of 15  days  next
preceding  the  mailing  of a  notice  of  redemption,  and  need  not  treat as
Outstanding  any  Security  authenticated  and  delivered  during such period in
exchange for the  unconverted  portion of any Security  converted in part during
such period.

Section 1104.     Notice of Redemption.

         Notice  of  redemption  shall  be given by  first-class  mail,  postage
prepaid,  mailed not less than 30 nor more than 60 days prior to the  Redemption
Date (except that redemption  notices may be mailed more than 60 days prior to a
Redemption  Date if the notice is issued in connection  with a satisfaction  and
discharge pursuant to Article Four, a Defeasance or a Covenant  Defeasance),  to
each  Holder of  Securities  to be  redeemed,  at his address  appearing  in the
Security  Register;  provided,  however,  notice of redemption may be given more
than 60 days prior to the Redemption  Date if the notice is issued in connection
with a satisfaction and discharge pursuant to Article Four.

         All notices of redemption shall state:

     (1)  the Redemption Date,

     (2)  the Redemption Price, if then determinable and otherwise the method of
          its determination,

(3)      if less than all the Outstanding Securities of any series consisting of
         more than a single  Security  are to be  redeemed,  the  identification
         (and,  in the case of partial  redemption of any such  Securities,  the
         principal amounts) of the particular  Securities to be redeemed and, if
         less than all the Outstanding  Securities of any series consisting of a

                                       59
<PAGE>

         single  Security  are  to be  redeemed,  the  principal  amount  of the
         particular Security to be redeemed,

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

     (5)  the place or places where each such Security is to be surrendered  for
          payment of the Redemption Price,

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

     (7)  if  applicable,  the  conversion  price then in effect and the date on
          which the right to convert such Securities will expire.

         Notice of  redemption  of  Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's  request,  by the
Trustee in the name and at the expense of the Company and shall be  irrevocable.
If any Security called for redemption is converted  pursuant  hereto,  any money
deposited  with the  Trustee or any Paying  Agent or so  segregated  and held in
trust for the  redemption  of such  Security  shall be paid to the Company  upon
delivery of a Company  Request to the Trustee or such Paying Agent,  or, if then
held by the Company, shall be discharged from such trust.

Section 1105.     Deposit of Redemption Price.

         Prior to 11:00 A.M.,  New York City time, on any  Redemption  Date, the
Company  shall  deposit  with the  Trustee or with a Paying  Agent  (or,  if the
Company  is  acting  as its own  Paying  Agent,  segregate  and hold in trust as
provided in Section 1003) an amount of money  sufficient  to pay the  Redemption
Price of, and (except if the Redemption Date shall be an Interest  Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

Section 1106.     Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid,  the Securities so
to be redeemed  shall,  on the  Redemption  Date,  become due and payable at the
Redemption  Price  therein  specified,  and from and after such date (unless the
Company  shall  default  in the  payment  of the  Redemption  Price and  accrued
interest) such  Securities  shall cease to bear interest.  Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption  Price,  together with accrued interest
to the Redemption Date; provided,  however,  that, unless otherwise specified as
contemplated  by Section 301,  installments of interest whose Stated Maturity is
on or prior to the  Redemption  Date  will be  payable  to the  Holders  of such
Securities,  or one or more  Predecessor  Securities,  registered as such at the
close of business on the relevant  Record Dates according to their terms and the
provisions of Section 307.

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

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<PAGE>

Section 1107.     Securities Redeemed in Part.

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

                                 ARTICLE TWELVE

                             [INTENTIONALLY OMITTED]

                                ARTICLE THIRTEEN

                              SUBSIDIARY GUARANTEES

Section 1301.     Applicability of Article.

         If the  Company  elects to issue  any  series  of  Securities  with the
benefit  of  Subsidiary  Guarantees,  such  election  shall be  evidenced  in or
pursuant to the Board  Resolution or supplemental  indenture  establishing  such
series of Securities  pursuant to Section 301 and the provisions of this Article
shall be  applicable  to each such  series  of  Securities  except as  otherwise
specified  in or  pursuant to the Board  Resolution  or  supplemental  indenture
establishing such series pursuant to Section 301.

Section 1302.     Subsidiary Guarantees.

         Subject to Section 1301, each Subsidiary Guarantor hereby,  jointly and
severally,  fully and  unconditionally  guarantees  to each Holder of a Security
authenticated and delivered by the Trustee,  the due and punctual payment of the
principal of (and premium, if any) and interest on such Security when and as the
same  shall  become  due  and  payable,  whether  at  the  Stated  Maturity,  by
acceleration, call for redemption, offer to purchase or otherwise, in accordance
with the  terms of such  Security  and of this  Indenture,  and each  Subsidiary
Guarantor  similarly  guarantees to the Trustee the payment of all amounts owing
to the Trustee in accordance  with the terms of this  Indenture.  In case of the
failure of the Company  punctually  to make any such  payment,  each  Subsidiary
Guarantor hereby, jointly and severally, agrees to cause such payment to be made
punctually  when and as the same shall  become due and  payable,  whether at the
Stated Maturity or by  acceleration,  call for redemption,  offer to purchase or
otherwise, and as if such payment were made by the Company.

         Each of the Subsidiary  Guarantors  hereby jointly and severally agrees
that its obligations  hereunder shall be absolute,  unconditional,  irrespective
of, and shall be unaffected by, the validity,  regularity or  enforceability  of

                                       61
<PAGE>

such Security or this  Indenture,  the absence of any action to enforce the same
or any release,  amendment,  waiver or indulgence  granted to the Company or any
guarantor  or any  consent  to  departure  from  any  requirement  of any  other
guarantee  of all  or  any  of  the  Securities  of  such  series  or any  other
circumstances which might otherwise constitute a legal or equitable discharge or
defense of a surety or guarantor;  provided,  however, that, notwithstanding the
foregoing, no such release,  amendment,  waiver or indulgence shall, without the
consent of such  Subsidiary  Guarantor,  increase the  principal  amount of such
Security,  or increase the interest rate thereon,  or alter the Stated  Maturity
thereof.  Each of the  Subsidiary  Guarantors  hereby  waives  the  benefits  of
diligence,  presentment, demand for payment, any requirement that the Trustee or
any of the Holders protect,  secure,  perfect or insure any security interest in
or other lien on any property  subject  thereto or exhaust any right or take any
action  against the  Company or any other  Person or any  collateral,  filing of
claims with a court in the event of insolvency or bankruptcy of the Company, any
right to require a proceeding first against the Company,  protest or notice with
respect to such Security or the indebtedness  evidenced  thereby and all demands
whatsoever,  and covenants that this Subsidiary Guarantee will not be discharged
in respect of such Security  except by complete  performance of the  obligations
contained in such Security and in such  Subsidiary  Guarantee.  Each  Subsidiary
Guarantor  agrees that if, after the occurrence and during the continuance of an
Event of Default,  the Trustee or any of the Holders are prevented by applicable
law from exercising  their  respective  rights to accelerate the maturity of the
Securities of a series, to collect interest on the Securities of a series, or to
enforce or exercise any other right or remedy with respect to the  Securities of
a series, such Subsidiary Guarantor agrees to pay to the Trustee for the account
of the Holders, upon demand therefor,  the amount that would otherwise have been
due and payable had such rights and remedies  been  permitted to be exercised by
the Trustee or any of the Holders.

         Each  Subsidiary  Guarantor  shall be  subrogated  to all rights of the
Holders  of the  Securities  upon which its  Subsidiary  Guarantee  is  endorsed
against the Company in respect of any amounts paid by such Subsidiary  Guarantor
on  account  of such  Security  pursuant  to the  provisions  of its  Subsidiary
Guarantee or this Indenture;  provided,  however,  that no Subsidiary  Guarantor
shall be entitled to enforce or to receive any payments arising out of, or based
upon, such right of subrogation until the principal of (and premium, if any) and
interest on all Securities of the relevant  series issued  hereunder  shall have
been paid in full.

         Each Subsidiary Guarantor that makes or is required to make any payment
in respect of its Subsidiary  Guarantee  shall be entitled to seek  contribution
from the other Subsidiary  Guarantors to the extent permitted by applicable law;
provided,  however, that no Subsidiary Guarantor shall be entitled to enforce or
receive any payments  arising out of, or based upon,  such right of contribution
until the principal of (and premium,  if any) and interest on all  Securities of
the relevant series issued hereunder shall have been paid in full.

         Each  Subsidiary  Guarantee  shall  remain in full force and effect and
continue to be effective  should any petition be filed by or against the Company
for liquidation or  reorganization,  should the Company become insolvent or make
an  assignment  for the benefit of  creditors or should a receiver or trustee be
appointed for all or any part of the Company's assets, and shall, to the fullest
extent permitted by law, continue to be effective or be reinstated,  as the case
may be, if at any time payment and  performance  of the  Securities of a series,

                                       62
<PAGE>

is,  pursuant  to  applicable  law,  rescinded  or reduced  in  amount,  or must
otherwise be restored or returned by any Holder of the Securities,  whether as a
"voidable preference",  "fraudulent transfer", or otherwise,  all as though such
payment or performance had not been made. In the event that any payment,  or any
part thereof, is rescinded, reduced, restored or returned, the Securities shall,
to the fullest extent permitted by law, be reinstated and deemed reduced only by
such amount paid and not so rescinded, reduced, restored or returned.

Section 1303.     Execution and Delivery of Subsidiary Guarantees.

         The  Subsidiary  Guarantees  to be  endorsed  on the  Securities  shall
include the terms of the Subsidiary  Guarantee set forth in Section 1302 and any
other  terms that may be set forth in the form  established  pursuant to Section
204. Subject to Section 1301, each of the Subsidiary Guarantors hereby agrees to
execute its Subsidiary Guarantee, in a form established pursuant to Section 204,
to be endorsed on each Security authenticated and delivered by the Trustee.

         The Subsidiary Guarantee shall be executed on behalf of each respective
Subsidiary  Guarantor by any one of such Subsidiary  Guarantor's Chairman of the
Board of Directors,  Vice Chairman of the Board of  Directors,  Chief  Executive
Officer,  President, one of its Vice Presidents, or its Secretary. The signature
of any or all of these  persons  on the  Subsidiary  Guarantee  may be manual or
facsimile.

         A Subsidiary  Guarantee  bearing the manual or  facsimile  signature of
individuals who were at any time the proper  officers of a Subsidiary  Guarantor
shall bind such Subsidiary  Guarantor,  notwithstanding that such individuals or
any of them have ceased to hold such  offices  prior to the  authentication  and
delivery of the Security on which such  Subsidiary  Guarantee is endorsed or did
not hold such offices at the date of such Subsidiary Guarantee.

         The delivery of any Security by the Trustee,  after the  authentication
thereof  hereunder,  shall  constitute due delivery of the Subsidiary  Guarantee
endorsed  thereon  on behalf of the  Subsidiary  Guarantors  and shall bind each
Subsidiary Guarantor notwithstanding the fact that Subsidiary Guarantee does not
bear  the  signature  of  such  Subsidiary  Guarantor.  Each  of the  Subsidiary
Guarantors hereby jointly and severally agrees that its Subsidiary Guarantee set
forth  in  Section  1302  and in the form of  Subsidiary  Guarantee  established
pursuant  to Section 204 shall  remain in full force and effect  notwithstanding
any failure to endorse a Subsidiary Guarantee on any Security.

Section 1304.     Release of Subsidiary Guarantors.

         Unless  otherwise  specified  pursuant to Section 301 with respect to a
series of  Securities,  each  Subsidiary  Guarantee  will  remain in effect with
respect to the respective  Subsidiary  Guarantor until the entire  principal of,
premium,  if any,  and  interest  on the  Securities  to which  such  Subsidiary
Guarantee  relates  shall  have been  paid in full or  otherwise  satisfied  and
discharged  in  accordance  with  the  provisions  of such  Securities  and this
Indenture  and all  amounts  owing to the  Trustee  hereunder  have  been  paid;
provided,  however,  that  if  (i)  such  Subsidiary  Guarantor  ceases  to be a
Subsidiary in compliance with the applicable provisions of this Indenture,  (ii)
either Defeasance or Covenant  Defeasance occurs with respect to such Securities
pursuant to Article Fifteen or (iii) all or  substantially  all of the assets of
such  Subsidiary  Guarantor  or all of the  Capital  Stock  of  such  Subsidiary
Guarantor is sold (including by sale, merger, consolidation or otherwise) by the

                                       63
<PAGE>

Company or any Subsidiary in a transaction  complying with the  requirements  of
this Indenture,  then, in each case of (i), (ii) or (iii),  upon delivery by the
Company of an Officers'  Certificate  and an Opinion of Counsel stating that all
conditions  precedent  herein  provided  for  relating  to the  release  of such
Subsidiary  Guarantor from its  obligations  under its Subsidiary  Guarantee and
this Article  Thirteen have been complied with, such Subsidiary  Guarantor shall
be released and discharged of its obligations under its Subsidiary Guarantee and
under this Article Thirteen without any action on the part of the Trustee or any
Holder, and the Trustee shall execute any documents reasonably required in order
to acknowledge  the release of such  Subsidiary  Guarantor from its  obligations
under its  Subsidiary  Guarantee  endorsed on the  Securities of such series and
under this Article Thirteen.

Section 1305.     Additional Subsidiary Guarantors.

         If so  specified  pursuant to Section  301 with  respect to a series of
Securities,  the Company will cause any domestic  Subsidiary of the Company that
becomes a Subsidiary  after the date the Securities of a series are first issued
hereunder to become a Subsidiary  Guarantor  as soon as  practicable  after such
Subsidiary becomes a Subsidiary.  The Company shall cause any such Subsidiary to
become a Subsidiary  Guarantor  with respect to the  Securities by executing and
delivering to the Trustee (a) a  supplemental  indenture,  in form and substance
satisfactory  to the  Trustee,  which  subjects  such  Person to the  provisions
(including the representations and warranties) of this Indenture as a Subsidiary
Guarantor  and (b) an Opinion of  Counsel to the effect  that such  supplemental
indenture  has  been  duly  authorized  and  executed  by such  Person  and such
supplemental  indenture  and such  Person's  obligations  under  its  Subsidiary
Guarantee  and  this  Indenture   constitute  the  legal,  valid,   binding  and
enforceable  obligations of such Person  (subject to such  customary  exceptions
concerning  creditors'  rights and equitable  principles as may be acceptable to
the Trustee in its discretion).

Section 1306.     Limitation on Liability.

         Any   term  or   provision   of   this   Indenture   to  the   contrary
notwithstanding,   the  maximum  amount  of  the  Subsidiary  Guarantee  of  any
Subsidiary  Guarantor  shall not exceed the  maximum  amount  that can be hereby
guaranteed  by such  Subsidiary  Guarantor  without  rendering  such  Subsidiary
Guarantee  voidable under  applicable  law relating to fraudulent  conveyance or
fraudulent transfer or similar laws affecting the rights of creditors generally.

                                       64
<PAGE>

                                ARTICLE FOURTEEN

                             [INTENTIONALLY OMITTED]

                                ARTICLE FIFTEEN

                       DEFEASANCE AND COVENANT DEFEASANCE

Section 1501.     Company's Option to Effect Defeasance or Covenant Defeasance.

         The Company may elect,  at its option at any time, to have Section 1502
or Section 1503 applied to any  Securities or any series of  Securities,  as the
case may be, designated  pursuant to Section 301 as being defeasible pursuant to
such  Section  1502 or 1503,  in  accordance  with any  applicable  requirements
provided  pursuant to Section 301 and upon  compliance  with the  conditions set
forth below in this Article. Any such election shall be evidenced in or pursuant
to a Board  Resolution or in another manner specified as contemplated by Section
301 for such Securities.

Section 1502.     Defeasance and Discharge.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of  Securities,  as the case may be, the
Company shall be deemed to have been discharged from its  obligations,  and each
Subsidiary   Guarantor  shall  be  deemed  to  have  been  discharged  from  its
obligations  with respect to its Subsidiary  Guarantees of such  Securities,  as
provided  in this  Section  on and  after the date the  conditions  set forth in
Section 1504 are satisfied (herein called "Defeasance").  For this purpose, such
Defeasance  means that the Company  shall be deemed to have paid and  discharged
the entire indebtedness represented by such Securities and to have satisfied all
its other  obligations  under such Securities and this Indenture insofar as such
Securities are concerned (and the Trustee, at the expense of the Company,  shall
execute proper  instruments  acknowledging  the same),  subject to the following
which shall survive until otherwise terminated or discharged hereunder:  (1) the
rights of Holders of such  Securities  to  receive,  solely  from the trust fund
described in Section 1504 and as more fully set forth in such Section,  payments
in respect of the  principal of and any premium and interest on such  Securities
when  payments  are due,  or, if  applicable,  to  convert  such  Securities  in
accordance with their terms,  (2) the Company's and each Subsidiary  Guarantor's
obligations  with respect to such Securities  under Sections 304, 305, 306, 1002
and 1003, and, if applicable,  their  obligations with respect to the conversion
of such Securities, (3) the rights, powers, trusts, duties and immunities of the
Trustee hereunder and (4) this Article. Subject to compliance with this Article,
the Company may exercise its option (if any) to have this Section applied to any
Securities  notwithstanding  the prior  exercise  of its option (if any) to have
Section 1503 applied to such Securities.

Section 1503.     Covenant Defeasance.

         Upon the Company's exercise of its option (if any) to have this Section
applied to any Securities or any series of  Securities,  as the case may be, (1)
the  Company  shall be  released  from its  obligations  under  Section  801(3),

                                       65
<PAGE>

Sections 1005 through 1008,  inclusive,  and any covenants  provided pursuant to
Section  301(21),  901(2) or  901(7)  for the  benefit  of the  Holders  of such
Securities,  and (2) the  occurrence of any event  specified in Sections  501(5)
(with respect to any of Section 801(3),  Sections 1006 through 1008,  inclusive,
and any such covenants provided pursuant to Section 301(21),  901(2) or 901(7)),
501(8) and 501(9) shall be deemed not to be or result in an Event of Default and
(3) the provisions of Article Thirteen shall cease to be effective, in each case
with respect to such  Securities and  Subsidiary  Guarantees as provided in this
Section  on and after the date the  conditions  set  forth in  Section  1504 are
satisfied (herein called "Covenant Defeasance"). For this purpose, such Covenant
Defeasance  means that,  with  respect to such  Securities,  the Company and the
Subsidiary Guarantors, as applicable,  may omit to comply with and shall have no
liability in respect of any term,  condition or limitation set forth in any such
specified  Section (to the extent so specified in the case of Section 501(5)) or
Article  Thirteen,  whether  directly or  indirectly  by reason of any reference
elsewhere herein to any such Section or Article or by reason of any reference in
any such  Section  or  Article  to any  other  provision  herein or in any other
document,  but the  remainder of this  Indenture  and such  Securities  shall be
unaffected thereby.

Section 1504.     Conditions to Defeasance or Covenant Defeasance.

         The following  shall be the  conditions to the  application  of Section
1502 or Section 1503 to any Securities or any series of Securities,  as the case
may be:

     (1)  The Company shall irrevocably have deposited or caused to be deposited
          with the Trustee (or another trustee which satisfies the  requirements
          contemplated  by Section 609 and agrees to comply with the  provisions
          of this  Article  applicable  to it) as trust  funds in trust  for the
          purpose  of making the  following  payments,  specifically  pledged as
          security for, and dedicated  solely to, the benefits of the Holders of
          such  Securities,  (A)  money in an  amount,  or (B)  U.S.  Government
          Obligations  which  through the  scheduled  payment of  principal  and
          interest  in respect  thereof  in  accordance  with  their  terms will
          provide,  not later than one day  before the due date of any  payment,
          money  in an  amount,  or (C) a  combination  thereof,  in  each  case
          sufficient,  in  the  opinion  of  a  nationally  recognized  firm  of
          independent  public accountants  expressed in a written  certification
          thereof  delivered to the  Trustee,  to pay and  discharge,  and which
          shall be applied by the Trustee (or any such other qualifying trustee)
          to pay and discharge, the principal of and any premium and interest on
          such  Securities on the respective  Stated  Maturities,  in accordance
          with the terms of this Indenture and such Securities.  As used herein,
          "U.S.  Government  Obligation"  means (x) any security  which is (i) a
          direct  obligation  of the United States of America for the payment of
          which the full  faith and  credit of the  United  States of America is

                                       66
<PAGE>

          pledged or (ii) an obligation of a Person  controlled or supervised by
          and acting as an agency or  instrumentality  of the  United  States of
          America the payment of which is  unconditionally  guaranteed as a full
          faith and credit obligation by the United States of America, which, in
          either case (i) or (ii),  is not callable or  redeemable at the option
          of the issuer thereof, and (y) any depositary receipt issued by a bank
          (as defined in Section  3(a)(2) of the  Securities  Act) as  custodian
          with respect to any U.S.  Government  Obligation which is specified in
          clause  (x) above and held by such bank for the  account of the holder
          of such depositary receipt, or with respect to any specific payment of
          principal of or interest on any U.S. Government Obligation which is so
          specified  and held,  provided  that  (except as required by law) such
          custodian  is not  authorized  to make any  deduction  from the amount
          payable  to the  holder of such  depositary  receipt  from any  amount
          received by the custodian in respect of the U.S. Government Obligation
          or the specific  payment of  principal  or interest  evidenced by such
          depositary receipt.

     (2)  In the  event  of an  election  to  have  Section  1502  apply  to any
          Securities  or any  series  of  Securities,  as the case  may be,  the
          Company  shall  have  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  instrument,  there has been a change  in the  applicable
          Federal  income tax law, in either case (A) or (B) to the effect that,
          and based thereon such opinion shall confirm that, the Holders of such
          Securities  will not  recognize  gain or loss for  Federal  income tax
          purposes as a result of the deposit,  Defeasance  and  discharge to be
          effected  with  respect  to such  Securities  and will be  subject  to
          Federal  income tax on the same amount,  in the same manner and at the
          same  times  as  would be the  case if such  deposit,  Defeasance  and
          discharge were not to occur.

     (3)  In the  event  of an  election  to  have  Section  1503  apply  to any
          Securities  or any  series  of  Securities,  as the case  may be,  the
          Company  shall have  delivered to the Trustee an Opinion of Counsel to
          the effect that the Holders of such Securities will not recognize gain
          or loss for Federal income tax purposes as a result of the deposit and
          Covenant Defeasance to be effected with respect to such Securities and
          will be subject to Federal income tax on the same amount,  in the same
          manner and at the same times as would be the case if such  deposit and
          Covenant Defeasance were not to occur.

     (4)  The  Company  shall  have   delivered  to  the  Trustee  an  Officers'
          Certificate  to the effect that neither such  Securities nor any other
          Securities  of the  same  series,  if then  listed  on any  securities
          exchange, will be delisted as a result of such deposit.

     (5)  No event  which  is, or after  notice  or lapse of time or both  would
          become,  an Event of Default  with respect to such  Securities  or any
          other  Securities shall have occurred and be continuing at the time of
          such  deposit or, with regard to any such event  specified in Sections
          501 (6),  at any time on or prior to the  121st  day after the date of
          such deposit (it being  understood  that this  condition  shall not be
          deemed satisfied until after such 121st day).

     (6)  Such Defeasance or Covenant  Defeasance shall not cause the Trustee to
          have a conflicting  interest within the meaning of the Trust Indenture
          Act (assuming all Securities are in default within the meaning of such
          Act).

     (7)  Such Defeasance or Covenant Defeasance shall not result in a breach or
          violation  of,  or  constitute  a  default  under,  any  agreement  or
          instrument  (other  than this  Indenture)  to which the Company or any
          Subsidiary is a party or by which it is bound.

     (8)  The Company shall have  delivered to the Trustee an Opinion of Counsel
          to the effect that such deposit  shall not cause either the Trustee or
          the trust so created to be subject to the  Investment  Company  Act of
          1940.

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<PAGE>

     (9)  The  Company  shall  have   delivered  to  the  Trustee  an  Officers'
          Certificate  and  an  Opinion  of  Counsel,   each  stating  that  all
          conditions  precedent  with  respect to such  Defeasance  or  Covenant
          Defeasance have been complied with.

Section 1505.     Deposited Money and U.S. Government Obligations to Be Held in
                  Trust; Miscellaneous Provisions.

         Subject to the  provisions of the last  paragraph of Section 1003,  all
money and U.S. Government Obligations (including the proceeds thereof) deposited
with the  Trustee or other  qualifying  trustee  (solely  for  purposes  of this
Section and Section 1506, the Trustee and any such other trustee are referred to
collectively  as the  "Trustee")  pursuant  to  Section  1504 in  respect of any
Securities shall be held in trust and applied by the Trustee, in accordance with
the provisions of such  Securities and this  Indenture,  to the payment,  either
directly or through any such Paying Agent  (including  the Company acting as its
own  Paying  Agent)  as the  Trustee  may  determine,  to the  Holders  of  such
Securities,  of all sums due and to become due  thereon in respect of  principal
and any premium and interest,  but money so held in trust 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 Section 1504 or the  principal  and interest  received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Outstanding Securities.

         Anything in this Article to the contrary  notwithstanding,  the Trustee
shall  deliver or pay to the Company from time to time upon Company  Request any
money or U.S. Government Obligations held by it as provided in Section 1504 with
respect to any Securities 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 the Defeasance or Covenant Defeasance,  as
the case may be, with respect to such Securities.

Section 1506.     Reinstatement.

         If the  Trustee  or the  Paying  Agent is  unable to apply any money in
accordance  with this Article with  respect to any  Securities  by reason of any
order or judgment of any court or governmental authority enjoining,  restraining
or otherwise  prohibiting  such  application,  then the  obligations  under this
Indenture  and such  Securities  from which the Company has been  discharged  or
released  pursuant to Section  1502 or 1503 shall be revived and  reinstated  as
though no deposit had  occurred  pursuant to this  Article  with respect to such
Securities, until such time as the Trustee or Paying Agent is permitted to apply
all money held in trust pursuant to Section 1505 with respect to such Securities
in accordance with this Article;  provided,  however,  that if the Company makes
any payment of  principal  of or any  premium or  interest on any such  Security
following such reinstatement of its obligations, the Company shall be subrogated
to the rights (if any) of the Holders of such Securities to receive such payment
from the money so held in trust.

                                       68
<PAGE>

                                ARTICLE SIXTEEN

                                  SINKING FUNDS

Section 1601.     Applicability of Article.

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

         The minimum  amount of any sinking  fund  payment  provided  for by the
terms of any  Securities  is herein  referred to as a  "mandatory  sinking  fund
payment",  and any payment in excess of such minimum amount  provided for by the
terms of such  Securities  is herein  referred to as an  "optional  sinking fund
payment". If provided for by the terms of any Securities, the cash amount of any
sinking fund  payment may be subject to  reduction as provided in Section  1602.
Each sinking fund payment  shall be applied to the  redemption  of Securities as
provided for by the terms of such Securities.

Section 1602.     Satisfaction of Sinking Fund Payments with Securities.

         The Company (1) may deliver  Outstanding  Securities of a series (other
than  any  previously  called  for  redemption)  and (2) may  apply  as a credit
Securities of a series which have been (x)  converted or (y) redeemed  either at
the election of the Company  pursuant to the terms of such Securities or through
the  application  of permitted  optional  sinking fund payments  pursuant to the
terms of such Securities, in each case in satisfaction of all or any part of any
sinking fund payment with respect to any  Securities of such series  required to
be made pursuant to the terms of such  Securities as and to the extent  provided
for by the terms of such Securities;  provided,  however, that the Securities to
be so credited  have not been  previously so credited.  The  Securities to be so
credited  shall be received  and credited for such purpose by the Trustee at the
Redemption  Price,  as  specified  in  the  Securities  so to be  redeemed,  for
redemption  through operation of the sinking fund and the amount of such sinking
fund payment shall be reduced accordingly.

Section 1603.     Redemption of Securities for Sinking Fund.

         Not less than 35 days prior to each  sinking  fund payment date for any
Securities,  the Company will  deliver to the Trustee an  Officers'  Certificate
specifying  the  amount  of the  next  ensuing  sinking  fund  payment  for such
Securities  pursuant to the terms of such Securities,  the portion  thereof,  if
any,  which is to be  satisfied by payment of cash and the portion  thereof,  if
any, which is to be satisfied by delivering and crediting Securities pursuant to
Section  1602 and will also  deliver  to the  Trustee  any  Securities  to be so
delivered.  Not less than 32 days prior to each such sinking fund payment  date,
the Trustee  shall select the  Securities  to be redeemed upon such sinking fund
payment  date in the manner  specified  in Section  1103 and cause notice of the
redemption  thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 1104. Such notice having been duly given,  the
redemption  of such  Securities  shall be made upon the terms and in the  manner
stated in Sections 1106 and 1107.

                                       69
<PAGE>

         This instrument may be executed in any number of counterparts,  each of
which so executed shall be deemed to be an original,  but all such  counterparts
shall together constitute but one and the same instrument.

                                       70
<PAGE>

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

                                                     ISSUER:

                                                     GASCO ENERGY, INC.

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

                                       71
<PAGE>

                                         TRUSTEE:

                                         WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                          as Trustee

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

                                       72
<PAGE>

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