Document:

EXHIBIT 10.y

                           CHANGE IN CONTROL AGREEMENT

         AGREEMENT made as of this 3rd day of January, 2000 by and between MTS
Systems Corporation, a Minnesota corporation ("MTS") and Kathleen M. Staby (the
"Executive").

         WHEREAS, MTS considers the establishment and maintenance of a sound and
vital management to be essential to protecting and enhancing the best interests
of MTS and its shareholders; and

         WHEREAS, the Executive has made and is expected to make, due to
Executive's intimate knowledge of the business and affairs of MTS, its policies,
methods, personnel and problems, a significant contribution to the
profitability, growth and financial strength of MTS; and

         WHEREAS, MTS, as a publicly held corporation, recognizes that the
possibility of a Change in Control may exist and that such possibility, and the
uncertainty and questions which it may raise among management, may result in the
departure or distraction of the Executive in the performance of the Executive's
duties to the detriment of MTS and its shareholders; and

         WHEREAS, Executive is becoming employed by MTS upon the understanding
that MTS will provide income security if the Executive's employment is
terminated under certain terms and conditions; and

         WHEREAS, it is in the best interests of MTS and its stockholders to
reinforce and encourage the continued attention and dedication of management
personnel, including Executive, to their assigned duties without distraction and
to ensure the continued availability to MTS of the Executive in the event of a
Change in Control;

         THEREFORE, in consideration of the foregoing and other respective
covenants and agreements of the parties herein contained, the parties hereto
agree as follows:

         1. Term of Agreement. This Agreement shall commence on the date hereof
and shall continue in effect until the earlier of (A) the date that any and all
benefits due to Executive under this Agreement upon the happening of the events
set forth herein have been paid and satisfied and all obligations of MTS to the
Executive have been performed or (B) the date the Executive and MTS agree in
writing to terminate this Agreement. Notwithstanding the preceding sentence, if
a Change in Control occurs, this Agreement shall remain in effect for a period
of 36 months from the date of the occurrence of a Change in Control.

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Change in Control Agreement
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         2. Change in Control. If a Change in Control shall have occurred during
the term of this Agreement, the provisions of this Agreement shall become
operative and MTS agrees to employ the Executive and to provide the benefits
stated in this Agreement.

                  (a) Change in Control, shall, for purposes of this Agreement,
         means a change in control of MTS which would be required to be reported
         in response to Item 1 of Form 8-K promulgated under the Securities
         Exchange Act of 1934, as amended (the "Exchange Act"), whether or not
         MTS is then subject to such reporting requirement, including, without
         limitation, if:

                           (i) any "person" (as such term is used in Sections
                  13(d) and 14(d) of the Exchange Act, including any affiliate
                  or associate as defined in Rule 12(b)-2 under the Exchange Act
                  of such person, other than MTS, any trustee or other fiduciary
                  holding securities under an employee benefit plan of MTS, or
                  any corporation owned, directly or indirectly, by the
                  stockholders of MTS in substantially the same proportions as
                  their ownership of stock of MTS) becomes a "beneficial owner"
                  (as defined in Rule 13d-3 under the Exchange Act), directly or
                  indirectly, of securities of MTS representing 35% or more of
                  the combined voting power of MTS' then outstanding securities;
                  or

                           (ii) the Board of Directors is comprised of fewer
                  than 65% of the individuals described in subsection (b) below;
                  or

                           (iii) the stockholders of MTS approve a definitive
                  agreement to merge or consolidate MTS with or into another
                  corporation or other enterprise in which the holders of
                  outstanding stock of MTS entitled to vote in elections of
                  directors immediately before such merger or consolidation hold
                  less than 80% of the voting power of the survivor of such
                  merger or consolidation or its parent, or approve a plan of
                  liquidation; or

                           (iv) at least 60% of MTS' assets are sold and
                  transferred to another corporation or other enterprise that is
                  not a subsidiary, direct or indirect, or other affiliate of
                  MTS; or

                           (v) the Board of Directors of MTS determines, by a
                  vote of a majority of its entire membership, that a tender
                  offer statement by any person (as defined above) indicates an
                  intention on the part of such person to acquire control of
                  MTS.

                  (b) Board of Directors shall, for purposes of subsection (a),
         mean:

                           (i) individuals who on the date hereof constituted
                  the Board of MTS, and

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                           (ii) any new director who subsequently was elected or
                  nominated for election by a majority of the directors who held
                  such office immediately prior to a Change in Control.

                  (c) Friendly Change in Control shall mean a Change in Control
         which arises from a transaction or series of transactions authorized,
         recommended or approved at the time by formal action of the Board of
         Directors.

                  (d) Unfriendly Change in Control shall mean a Change in
         Control that is not a "Friendly Change in Control" as defined above. An
         Unfriendly Change in Control shall not thereafter become a Friendly
         Change in Control.

         3. Termination by Reason of Death or Disability. If Executive's
employment shall be terminated by MTS by reason of death or disability, MTS
shall immediately commence payment to the Executive (or Executive's designated
beneficiaries or estate, if no beneficiary is designated) of any and all
benefits to which the Executive is entitled under MTS retirement and insurance
programs them in effect. Except for such benefits, MTS shall have no further
obligations to Executive under this Agreement.

         4. Termination for Cause.

                  (a) If Executive's employment with MTS shall be terminated by
         MTS for Cause as defined below, MTS shall pay to Executive his or her
         full base salary through the Date of Termination at the rate in effect
         at the time Notice of Termination is given and MTS shall have no
         further obligation to Executive under this Agreement.

                  (b) Termination by MTS of Executive's employment for "Cause"
         shall mean termination as a result of:

                           (i) the conviction of the Executive by a court of
                  competent jurisdiction for felony criminal conduct; or

                           (ii) willful gross misconduct or gross negligence in
                  the performance of his duties by the Executive; or

                           (iii) material violation by the Executive of any
                  employment agreement applicable to the Executive.

         5. Termination Following Friendly Change in Control.

                  (a) If, after a Friendly Change in Control, Executive's
         employment with MTS shall be terminated (1) by MTS other than for
         cause, death or disability or (2) by Executive for Good Reason, then
         Executive shall be entitled to the following benefits:

                           (i) Severance. MTS shall pay the Executive as a
                  severance payment (the "Severance Payment") an amount equal to
                  the product of 18 multiplied by the Executive's Monthly Gross
                  Income as defined below. The

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Change in Control Agreement
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                  Severance Payment shall be made in a single lump sum within 30
                  days after the Date of Termination, subject to all applicable
                  federal and state withholding.

                  For purposes of this Agreement, Monthly Gross Income shall
                  mean the sum of the following amounts:

                                    (A) 1/12 of the highest average base salary
                           for any 12-consecutive month period during the 36
                           calendar month period ending immediately prior to the
                           Date of Termination (without taking into account any
                           reduction in such base salary that would constitute
                           Good Reason); plus

                                    (B) the monthly average of the total
                           Management Variable Compensation (MVC) earned during
                           the lesser of the 3 most recent or the actual number
                           of fiscal years participating in the MVC plan ending
                           immediately prior to the Date of Termination; plus

                                    (C) the product of the average percentage of
                           MTS profit sharing contributions to the MTS Systems
                           Corporation Profit Sharing Retirement Plan and Trust
                           (as a percent of Compensation as defined in the Plan
                           up to the federal limit) for the lesser of the 3 most
                           recent or the actual number of participating Plan
                           Years ending immediately prior to the Date of
                           Termination multiplied by the sum of (A) and (B)
                           above.

                           (ii) Benefits. For an 18-month period after the Date
                  of Termination, MTS shall continue to pay its portion of
                  Executive's life and health insurance benefits which the
                  Executive is receiving immediately prior to the Notice of
                  Termination. Executive shall be responsible for payment of his
                  or her portion of the premiums for such benefits. The MTS
                  portion and the Executive's portion shall be the respective
                  percentages of such premiums paid immediately prior to the
                  Date of Termination. Benefits otherwise receivable by
                  Executive pursuant to this paragraph shall be reduced to the
                  extent comparable benefits are actually received by Executive
                  during this period, and any such benefits actually received by
                  Executive shall be reported to MTS. At the expiration of said
                  18-month period, Executive shall be entitled to continue any
                  of said benefits which qualify as group insurance benefits for
                  continuation coverage under the Comprehensive Omnibus
                  Reconciliation Act ("COBRA") or applicable state law.

                  (b) Good Reason. Executive shall be entitled to terminate his
         or her employment for Good Reason. For purposes of this Agreement,
         "Good Reason" shall mean, without Executive's express written consent,
         any of the following:

                           (i) the assignment to Executive of any duties
                  inconsistent with Executive's status or position with MTS, or
                  a substantial alteration in the nature or status of
                  Executive's responsibilities; or

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                           (ii) a reduction by MTS in Executive's annual base
                  salary other than a reduction comparable to other senior
                  Executives of MTS in connection with a company-wide cost
                  reduction program; or

                           (iii) the relocation of MTS' principal executive
                  offices to a location more than fifty miles from Eden Prairie,
                  Minnesota or MTS requiring Executive to be based anywhere
                  other than MTS' principal executive offices except for
                  required travel on MTS' business to an extent substantially
                  consistent with Executive's prior business travel obligations;
                  or

                           (iv) the failure by MTS to continue to provide
                  Executive with benefits at least as favorable to those enjoyed
                  by Executive under any of MTS' pension, life insurance,
                  medical, health and accident, disability, deferred
                  compensation, incentive awards, incentive stock options, or
                  savings plans in which Executive was participating at the time
                  of the Change in Control, the taking of any action by MTS
                  which would directly or indirectly materially reduce any of
                  such benefits or deprive Executive of any material fringe
                  benefit enjoyed by him or her at the time of the Change in
                  Control, or the failure by MTS to provide Executive with the
                  number of paid vacation days to which Executive is entitled at
                  the time of the Change in Control, provided, however, that MTS
                  may amend any such plan or programs as long as such amendments
                  do not reduce any benefits to which Executive would be
                  entitled upon termination; or

                           (v) the failure of MTS to obtain a satisfactory
                  agreement from any successor to assume and agree to perform
                  this Agreement, as contemplated in Section 12; or

                           (vi) MTS requests Executive's resignation from
                  employment; or

                           (vii) any purported termination of Executive's
                  employment which is not made pursuant to a Notice of
                  Termination satisfying the requirements of this Agreement; for
                  purposes of this Agreement, no such purported termination
                  shall be effective; or

                           (viii) any material violation by MTS of this
                  Agreement.

                  (c) Voluntary Termination Deemed Good Reason. Notwithstanding
         anything herein to the contrary, during the period commencing on the
         30th day following a Change in Control (whether Friendly or Unfriendly)
         and ending on the 180th day following a Change in Control, Executive
         may voluntarily terminate his or her employment for any reason, and
         such termination shall be deemed "Good Reason" for all purposes of this
         Agreement.

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         6. Termination - Unfriendly Change in Control.

                  (a) If, after an Unfriendly Change in Control, Executive's
         employment with MTS is terminated (1) by MTS other than for Cause,
         death or disability, or (2) by Executive for Good Reason, the Executive
         shall be entitled to the following benefits:

                            (i) Severance. MTS shall pay the Executive as a
                  severance payment (the "Severance Payment") an amount equal to
                  the product of 36 multiplied by the Executive's Monthly Gross
                  Income as defined in Section 5(a)(i) above. The Severance
                  Payment shall be made in a single lump sum within 30 days
                  after the Date of Termination, subject to all applicable
                  federal and state withholding.

                           (ii) Benefits. For a 36-month period after the Date
                  of Termination, MTS shall continue to pay its portion of
                  Executive's life and health insurance benefits which the
                  Executive is receiving immediately prior to the Notice of
                  Termination. Executive shall be responsible for payment of his
                  or her portion of the premiums for such benefits. The MTS
                  portion and the Executive's portion shall be the responsive
                  percentages of such premiums paid immediately prior to the
                  Date of Termination. Benefits otherwise receivable by
                  Executive pursuant to this paragraph shall be reduced to the
                  extent comparable benefits are actually received by Executive
                  shall be reported to MTS. At the expiration of said 36-month
                  period, Executive shall be entitled to continue any of said
                  benefits which qualify as group insurance benefits for
                  continuation coverage under the Comprehensive Omnibus Budget
                  Reconciliation Act ("COBRA") or applicable state law.

                  (b) If the Executive voluntarily terminates his or her
         employment other than for Good Reason but more than 180 days after an
         Unfriendly Change in Control, Executive shall be entitled to the
         following benefits:

                           (i) Severance. MTS shall pay to Executive as a
                  severance payment (the "Severance Payment") an amount equal to
                  the product of 18 multiplied by the Executive's monthly Gross
                  Income as defined in Section 5(a)(i) above. The Severance
                  Payment shall be made in a single lump sum within 30 days
                  after the Date of Termination, subject to all applicable
                  federal and state withholding.

                           (ii) Benefits. For 18-month period after the Date of
                  Termination, MTS shall continue to pay its portion of
                  Executive's life and health insurance benefits which the
                  Executive is receiving immediately prior to the Notice of
                  Termination. Executive shall be responsible for payment of his
                  or her portion of the premiums for such benefits. The MTS
                  portion and the Executive's portion shall be the respective
                  percentages of such premiums paid immediately prior to the
                  Date of Termination. Benefits otherwise receivable by
                  Executive pursuant to this paragraph shall be reduced to the
                  extent comparable benefits are actually received by Executive
                  during such period,

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                  and any such benefits actually received by Executive shall be
                  reported to MTS. At the expiration of said 18-month period,
                  Executive shall be entitled to continue any of said benefits
                  which qualify as group insurance benefits for continuation
                  coverage under the Comprehensive Omnibus Budget Reconciliation
                  Act ("COBRA") or applicable state law.

         7. Additional Benefits. In addition to all other amounts payable and
benefits receivable to Executive upon termination of employment covered under
this Agreement, Executive shall be entitled to the following benefits:

                  (a) Legal Fees. In the event of any termination of employment
         under this Agreement, other than termination for Cause, MTS shall pay
         to Executive all legal fees and expenses reasonably incurred by
         Executive in contesting or disputing any such termination or in seeking
         to obtain or enforce any right or benefit provided by this Agreement.

                  (b) Retirement Plan. Executive shall, upon termination of
         employment, be entitled to receive all benefits payable to the
         Executive under the MTS Systems Corporation Profit Sharing Retirement
         Plan and any other plan or agreement relating to retirement benefits.

                  (c) Employee Stock Option Certificate. The Executive's rights
         under any existing Employee Stock Option Agreement and any future such
         agreements, including particularly his or her right to exercise his or
         her option rights following his or her termination of employment, shall
         continue to be fully effective hereunder.

         8. No Mitigation. Executive shall not be required to mitigate the
amount of any payment provided for in this Agreement by seeking other employment
or otherwise, nor shall the amount of any payment or benefit provided for in
this Agreement be reduced by any compensation earned by Executive as the result
of employment by another employer or by retirement benefits after the Date of
Termination, or except as otherwise provided in this Agreement.

         9. Potential Excise Tax; Indemnification

                  (a) Excise Tax. Should any payments hereunder or contemplated
         hereby be subject to excise tax pursuant to Section 4999 of the
         Internal Revenue Code of 1986, as may be amended, or any successor or
         similar provision thereto, or comparable state or local tax laws, MTS
         shall pay to the Executive such additional compensation as is necessary
         (after taking into account all federal, state and local income taxes
         payable by the Executive as a result of the receipt of such
         compensation) to place the Executive in the same after-tax position he
         would have been in had no such excise tax (or any interest or penalties
         thereon) been paid or incurred. MTS shall pay such additional
         compensation upon the earlier of:

                           (i) the time at which MTS withholds such excise tax
                  from any payments to the Executive; or

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                           (ii) 30 days after the Executive notifies MTS that
                  the Executive has paid such excise tax pursuant to a tax
                  return filed by the Executive which takes the position that
                  such excise tax is due and payable in reliance on a written
                  opinion of the Executive's tax counsel that it is more likely
                  than not that such excise tax is due and payable, or, if
                  later, the date the IRS notifies Executive that such amount is
                  due and payable.

         Without limiting the obligation of MTS hereunder, the Executive agrees,
         in the event the Executive makes any payment pursuant to the preceding
         sentence, to negotiate with MTS in good faith with respect to
         procedures reasonably requested by MTS which would afford MTS the
         ability to contest the imposition of such excise tax; provided,
         however, that the Executive will not be required to afford MTS any
         right to contest the applicability of any such excise tax to the extent
         that the Executive reasonably determines that such contest is
         inconsistent with the overall tax interests of the Executive.

         MTS agrees to hold in confidence and not to disclose, without the
         Executive's prior written consent, any information with regard to the
         Executive's tax position which MTS obtains pursuant to this subsection.

                  (b) Indemnification. MTS will indemnify the Executive (and his
         or her legal representative or other successors) to the fullest extent
         permitted (including payment of expenses in advance of final
         disposition of the proceeding) by the laws of the State of Minnesota,
         as in effect at the time of the subject act or omission, or the
         Articles of Incorporation and By-Laws of MTS as in effect at such time
         or on the date of this Agreement, whichever affords or afforded greater
         protection to the Executive; and the Executive shall be entitled to the
         protection of any insurance policies MTS may elect to maintain
         generally for the benefit of its directors and officers, against all
         costs, charges and expenses whatsoever incurred or sustained by him or
         her legal representatives in connection with any action, suit or
         proceeding to which he (or his or her legal representative or other
         successors) may be made a party by reason of his or her being or having
         been a director, officer or employee of MTS or any of its subsidiaries
         or his or her serving or having served any other enterprise as a
         director, officer or employee at the request of MTS, provided that MTS
         shall cause to be maintained in effect for not less than six years from
         the date of a Change in Control (to the extent available) policies of
         directors' and officers' liability insurance of at least the same
         coverage as those maintained by MTS on the date of this Agreement and
         containing terms and conditions which are no less advantageous than
         such policies.

         10. Non-Competition and Confidentiality.

                  (a) Noncompetition. Except as provided in subsection (c)
         below, Executive agrees that, as a condition of receiving benefits
         under this Agreement, he will not render services directly or
         indirectly to any competing organization, wherever located, for a
         period of one year following the Date of Termination, in connection

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         with the design, implementation, development, manufacture, marketing,
         sale, merchandising, leasing, servicing or promotion of any
         "Conflicting Product" which as used herein means any product, process,
         system or service of any person, firm, corporation, organization other
         than MTS, in existence or under development, which is the same as or
         similar to or competes with, or has a usage allied to, a product,
         process, system, or service produced, developed, or used by MTS.
         Executive agrees that violation of this covenant not to compete with
         MTS shall result in immediate cessation of all benefits hereunder,
         other than insurance benefits, which Executive may continue where
         permitted under federal and state law at his or her own expense.

                   (b) Confidentiality. Executive further agrees and
         acknowledges his or her existing obligation that at all times during
         and subsequent to his or her employment with MTS, he will not divulge
         or appropriate to his or her own use or the uses of others any secret
         or confidential information or knowledge pertaining to the business of
         MTS, or any of its subsidiaries, obtained during his or her employment
         by MTS or any of its subsidiaries.

                  (c) Waiver - Unfriendly Change in Control. Notwithstanding
         anything herein to the contrary: the restriction on competition under
         subsection (a) shall not apply if the Executive's employment terminates
         following an Unfriendly Change in Control. Furthermore, in such event,
         MTS waives any other restriction on Executive's employment and consents
         unconditionally to any employment Executive may subsequently obtain.

         11. Funding of Payments. In order to assure the performance of MTS or
its successor of its obligations under this Agreement, MTS may deposit in a
so-called "rabbi" trust an amount equal to the maximum payment that will be due
the Executive under the terms hereof; provided, however, that MTS shall deposit
in trust the amount equal to the maximum payment due Executive immediately upon
an Unfriendly Change in Control. Under such written trust instrument, the
Trustee shall be instructed to pay to the Executive (or the Executive's legal
representative, as the case may be) the amount to which the Executive shall be
entitled under the terms hereof, and the balance, if any, of the trust not so
paid or reserved for payment shall be repaid to MTS. If MTS deposits funds in
trust, payment shall be made no later than the occurrence of a Change in
Control. The written instrument governing the trust shall be irrevocable from
and after such Change in Control and shall contain such provisions protective of
the Executive as are contained in similar trust agreements approved by the
Internal Revenue Service in published private letter rulings (provided that the
assets of the trust shall be reachable by creditors of MTS as required by such
rulings). The trustee shall be a national bank selected by MTS with the consent
of the Executive, with trust powers and whose principal officers are located in
the Minneapolis/St. Paul metropolitan area. The trustee shall invest the assets
of the trust in any readily marketable securities of U.S. corporations (other
than MTS, its successor, or any affiliate of MTS or its successor). If and to
the extent there are not amounts in trust sufficient to pay Executive under this
Agreement, MTS shall remain liable for any and all payments due to Executive.

         12. Successors; Binding Agreement.

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                  (a) Successors. MTS will require any successor (whether direct
         or indirect, by purchase, merger, consolidation or otherwise) to all or
         substantially all of the business and/or assets of MTS to expressly
         assume and agree to perform this Agreement in the same manner and to
         the same extent that MTS would be required to perform it if no such
         succession had taken place. Failure of MTS to obtain such assumption
         and agreement prior to the effectiveness of any such succession shall
         be a breach of this Agreement and shall entitle Executive to
         compensation from MTS in the same amount and on the same terms as he
         would be entitled hereunder if he terminated his or her employment for
         Good Reason following a Change in Control, except that for purposes of
         implementing the foregoing, the date on which any such succession
         becomes effective shall be deemed the Date of Termination.

                  (b) Binding Agreement. This Agreement shall inure to the
         benefit of and be enforceable by Executive's personal or legal
         representatives, successors, heirs, and designated beneficiaries. If
         Executive should die while any amount would still be payable to
         Executive hereunder if the Executive had continued to live, all such
         amounts, unless otherwise provided herein, shall be paid in accordance
         with the terms of this Agreement to the Executive's designated
         beneficiaries or, if there is no such designated beneficiary, to the
         Executive's estate.

         13. Notice.

                  (a) Form and Delivery. All notices and other communications
         provided for in the Agreement shall be in writing and shall be deemed
         to have been duly given when delivered or mailed by United States
         registered or certified mail, return receipt requested, postage
         prepaid, addressed to the last known residence address of the Executive
         or in the case of MTS, to its principal office to the attention of each
         of the then directors of MTS with a copy to its Secretary, or to such
         other address as either party may have furnished to the other in
         writing in accordance herewith, except that notice of change of address
         shall be effective only upon receipt.

                  (b) Notice of Termination. Any purported termination of
         Executive's employment by MTS or by Executive shall be communicated by
         written Notice of Termination to the other party hereto, which shall
         indicate the specific termination provision in this Agreement relied
         upon and shall set forth the facts and circumstances claimed to provide
         a basis for termination of Executive's employment.

                  (c) Date of Termination. For purposes of this Agreement, "Date
         of Termination" shall mean the date specified in the Notice of
         Termination which shall not be less than 10 nor more than 30 days,
         respectively, from the date such Notice of Termination is given.

                  (d) Dispute of Termination. If, within 10 days after any
         Notice of Termination is given, the party receiving such Notice of
         Termination notifies the other party that a dispute exists concerning
         the termination, the Date of Termination shall be the date on which the
         dispute is finally determined, either by mutual written

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         agreement of the parties, or by a final judgment, order or decree of a
         court of competent jurisdiction (which is not appealable or the time
         for appeal therefrom having expired and no appeal having been
         perfected); provided, that the Date of Termination shall be extended by
         a notice of dispute only if such notice is given in good faith and the
         party giving such notice pursues the resolution of such dispute with
         reasonable diligence in accordance with Section 14 below.
         Notwithstanding the pendency of any such dispute, MTS shall continue to
         pay Executive full compensation in effect when the notice giving rise
         to the dispute was given (including, but not limited to, base salary)
         and continue Executive as a participant in all compensation, benefit
         and insurance plans in which the Executive was participating when the
         notice giving rise to the dispute was given, until the dispute is
         finally resolved in accordance with this subsection or at the end of a
         period of 180 days, whichever first occurs. Amounts paid under this
         subsection are in addition to all other amounts due under this
         Agreement and shall not be offset against or reduce any other amounts
         under this Agreement.

         14. Arbitration. Any dispute arising under or in connection with this
Agreement (including without limitation, the making of this Agreement or the
Executive's termination of employment) shall be resolved by final and binding
arbitration to be held in Minneapolis, Minnesota in accordance with the rules
and procedures of the American Arbitration Association. The parties shall select
a mutually acceptable single arbitrator to resolve the dispute or if they fail
or are unable to do so, each side shall within the following ten business days
select a single arbitrator and the two so selected shall select a third
arbitrator within the following ten business days. The arbitrator shall have no
power to award any punitive or exemplary damages. The arbitrator may construe or
interpret, but shall not ignore or vary the terms of this Agreement, and shall
be bound by controlling law. The arbitration award or other resolution may be
entered as a judgment at the request of the prevailing party by any court of
competent jurisdiction in Minnesota or elsewhere.

         15. Miscellaneous.

                  (a) Modification and Waiver. Except as otherwise specifically
         provided in this Agreement, no provision of this Agreement may be
         modified, waived or discharged unless such waiver, modification or
         discharge is agreed to in writing and signed by the parties. No waiver
         by either party hereto at any time of any breach by the other party to
         this Agreement of, or compliance with, any other party shall be deemed
         a waiver of similar or dissimilar provisions or conditions at the same
         or at any prior or similar time.

                  (b) Entire Agreement. No agreements or representations, oral
         or otherwise, express or implied, with respect to the subject matter
         hereof have been made by either party which are not expressly set forth
         in this Agreement.

                  (c) Governing Law. The validity, interpretation, construction
         and performance of this Agreement shall be governed by the laws of the
         State of Minnesota.

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                  (d) Severability. The invalidity or unenforceability or any
         provision of this Agreement shall not affect the validity or
         enforceability of any other provision of this Agreement, which shall
         remain in full force and effect.

         IN WITNESS WHEREOF, MTS, through its authorized officer, and the
Executive have executed this Agreement as of the day and date first above
written.

EXECUTIVE:                            MTS SYSTEMS CORPORATION

/s/ Kathleen M. Staby                 By /s/ Sidney W. Emery, Jr.
---------------------                    ------------------------
Kathleen M. Staby
                                      Its Chairman and CEO
                                          ----------------<PAGE>

                                                                  EXHIBIT 4.7

                        COMPUTER SCIENCES CORPORATION,
                                    Issuer

                                      AND

                         ___________________________,
                                    Trustee

                            SENIOR DEBT SECURITIES

                                   INDENTURE

                      Dated as of ________________, ____
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
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<S>                                                                                                            <C>
ARTICLE I.          DEFINITIONS................................................................................  1
         Section 1.01          Definitions of Terms............................................................  1

ARTICLE II.         ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES..............  5
         Section 2.01          Designation and Terms of Securities.............................................  5
         Section 2.02          Form of Securities and Trustee's Certificate....................................  7
         Section 2.03          Denominations:  Provisions for Payment..........................................  7
         Section 2.04          Execution and Authentications...................................................  8
         Section 2.05          Registration of Transfer and Exchange...........................................  9
         Section 2.06          Temporary Securities............................................................ 10
         Section 2.07          Mutilated, Destroyed, Lost or Stolen Securities................................. 10
         Section 2.08          Cancellation.................................................................... 11
         Section 2.09          Benefits of Indenture........................................................... 11
         Section 2.10          Authenticating Agent............................................................ 12
         Section 2.11          Global Securities............................................................... 12
         Section 2.12          CUSIP Numbers................................................................... 13

ARTICLE III.        REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS....................................... 13
         Section 3.01          Redemption...................................................................... 13
         Section 3.02          Notice of Redemption............................................................ 14
         Section 3.03          Payment Upon Redemption......................................................... 15
         Section 3.04          Sinking Fund.................................................................... 15
         Section 3.05          Satisfaction of Sinking Fund Payments with Securities........................... 15
         Section 3.06          Redemption of Securities for Sinking Fund....................................... 16

ARTICLE IV.         CERTAIN COVENANTS.......................................................................... 16
         Section 4.01          Payment of Principal, Premium and Interest...................................... 16
         Section 4.02          Maintenance of Office or Agency................................................. 16
         Section 4.03          Paying Agents................................................................... 17
         Section 4.04          Compliance with Laws, Taxes..................................................... 17
         Section 4.05          Corporate Existence............................................................. 17
         Section 4.06          Statement by Officers as to Default............................................. 18
         Section 4.07          Waiver of Certain Covenants..................................................... 18
         Section 4.08          Appointment to Fill Vacancy in Office of Trustee................................ 18

ARTICLE V.          SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE.......................... 18
         Section 5.01          Company to Furnish Trustee Names and Addresses of Securityholders............... 18
         Section 5.02          Preservation of Information; Communications with Securityholders................ 19
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                             <C>
         Section 5.03          Reports by the Company.......................................................... 19
         Section 5.04          Reports by the Trustee.......................................................... 20

ARTICLE VI.         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT............................ 20
         Section 6.01          Events of Default............................................................... 20
         Section 6.02          Collection of Indebtedness and Suits for Enforcement by Trustee................. 22
         Section 6.03          Application of Moneys Collected................................................. 23
         Section 6.04          Limitation on Suits............................................................. 23
         Section 6.05          Rights and Remedies Cumulative; Delay or Omission not Waiver.................... 24
         Section 6.06          Control by Securityholders...................................................... 25
         Section 6.07          Undertaking to Pay Costs........................................................ 25
         Section 6.08          Waiver Of Usury, Stay Or Extension Laws......................................... 25

ARTICLE VII.        CONCERNING THE TRUSTEE..................................................................... 26
         Section 7.01          Certain Duties and Responsibilities of Trustee.................................. 26
         Section 7.02          Certain Rights of Trustee....................................................... 27
         Section 7.03          Trustee not Responsible for Recitals or Issuance or Securities.................. 28
         Section 7.04          May Hold Securities............................................................. 28
         Section 7.05          Moneys Held in Trust............................................................ 29
         Section 7.06          Compensation and Reimbursement.................................................. 29
         Section 7.07          Reliance on Officers' Certificate............................................... 29
         Section 7.08          Disqualification; Conflicting Interests......................................... 30
         Section 7.09          Corporate Trustee Required; Eligibility......................................... 30
         Section 7.10          Resignation and Removal; Appointment of Successor............................... 30
         Section 7.11          Acceptance of Appointment By Successor.......................................... 31
         Section 7.12          Merger, Conversion, Consolidation or Succession to Business..................... 32
         Section 7.13          Preferential Collection of Claims Against the Company........................... 33

ARTICLE VIII.       CONCERNING THE SECURITYHOLDERS............................................................. 33
         Section 8.01          Evidence of Action by Securityholders........................................... 33
         Section 8.02          Proof of Execution by Securityholders........................................... 33
         Section 8.03          Who May be Deemed Owners........................................................ 34
         Section 8.04          Certain Securities Owned by Company Disregarded................................. 34
         Section 8.05          Actions Binding on Future Securityholders....................................... 34

ARTICLE IX.         SUPPLEMENTAL INDENTURES.................................................................... 35
         Section 9.01          Supplemental Indentures Without the Consent of Securityholders.................. 35
         Section 9.02          Supplemental Indentures with Consent of Securityholders......................... 36
         Section 9.03          Effect of Supplemental Indentures............................................... 36
         Section 9.04          Securities Affected by Supplemental Indentures.................................. 36
         Section 9.05          Execution of Supplemental Indentures............................................ 37

ARTICLE X.          SUCCESSOR CORPORATION...................................................................... 37
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                                             <C>
         Section 10.01         Consolidation, Merger and Sale of Assets........................................ 37
         Section 10.02         Successor Corporation Substituted............................................... 38

ARTICLE XI.         SATISFACTION AND DISCHARGE................................................................. 38
         Section 11.01         Satisfaction and Discharge of Indenture......................................... 38
         Section 11.02         Defeasance and Discharge of Obligations; Covenant Defeasance.................... 39
         Section 11.03         Deposited Moneys to be Held in Trust............................................ 40
         Section 11.04         Payment of Moneys Held by Paying Agents......................................... 41
         Section 11.05         Repayment to Company............................................................ 41
         Section 11.06         Reinstatement................................................................... 41

ARTICLE XII.        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS............................ 42
         Section 12.01         No Recourse..................................................................... 42

ARTICLE XIII.       MISCELLANEOUS PROVISIONS................................................................... 42
         Section 13.01         Effect on Successors and Assigns................................................ 42
         Section 13.02         Actions by Successor............................................................ 42
         Section 13.03         Notices......................................................................... 42
         Section 13.04         Governing Law................................................................... 43
         Section 13.05         Treatment of Securities as Debt................................................. 44
         Section 13.06         Compliance Certificates and Opinions............................................ 44
         Section 13.07         Payments on Business Days....................................................... 44
         Section 13.08         Conflict with Trust Indenture Act............................................... 44
         Section 13.09         Counterparts.................................................................... 45
         Section 13.10         Separability.................................................................... 45
         Section 13.11         No Adverse Interpretation of Other Agreements................................... 45
         Section 13.12         Table of Contents, Headings, Etc................................................ 45
</TABLE>

                                      iii
<PAGE>

                            Cross Reference Table*

<TABLE>
<CAPTION>
Section of
Trust Indenture Act                                                                         Section of
of 1939, as amended                                                                         Indenture
-------------------                                                                         ---------
<S>                                                                                         <C>
310(a).................................................................................     7.09
310(b).................................................................................     7.08
                                                                                            7.10
310(c).................................................................................     Inapplicable
311(a).................................................................................     7.13
311(b).................................................................................     7.13
311(c).................................................................................     Inapplicable
312(a).................................................................................     5.01
                                                                                            5.02(a)
312(b).................................................................................     5.02(b)
312(c).................................................................................     5.02(b)
313(a).................................................................................     5.04(a)
313(b).................................................................................     5.04(b)
313(c).................................................................................     5.04(a)
                                                                                            5.04(b)
313(d).................................................................................     5.04(c)
314(a).................................................................................     5.03
314(b).................................................................................     Inapplicable
314(c).................................................................................     13.06
314(d).................................................................................     Inapplicable
314(e).................................................................................     13.06
314(f).................................................................................     Inapplicable
315(a).................................................................................     7.01
315(b).................................................................................     5.04
315(c).................................................................................     7.01(a)
315(d).................................................................................     7.01(b)
315(e).................................................................................     6.07
316(a).................................................................................     6.06, 8.04
316(b).................................................................................     6.04
316(c).................................................................................     8.01
317(a).................................................................................     6.02
317(b).................................................................................     4.03
318(a).................................................................................     13.08
</TABLE>

_______________
*      This Cross-Reference Table does not constitute part of the Indenture and
       shall not have any bearing on the interpretation of any of its terms or
       provisions.

                                      iv
<PAGE>

     INDENTURE, dated as of __________, ____, between Computer Sciences
Corporation, a Nevada corporation (the "Company"), and ____________________, a
__________, as trustee (the "Trustee"):

     WHEREAS, this Indenture provides for the issuance of unsecured debt
securities (hereinafter referred to as the "Securities"), in an unlimited
aggregate principal amount to be issued from time to time in one or more series
as in this Indenture provided, as registered Securities without coupons, to be
authenticated by the certificate of the Trustee;

     WHEREAS, this Indenture is subject to the provisions of the Trust Indenture
Act that are deemed to be incorporated into this Indenture and shall, to the
extent applicable, be governed by such provisions; and

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

     NOW, THEREFORE, in consideration of the premises and the purchase of the
Securities by the holders thereof, it is mutually covenanted and agreed as
follows for the equal and ratable benefit of the holders of Securities:

                                  ARTICLE I.

                                  DEFINITIONS

Section 1.01   Definitions of Terms.
               --------------------

     The terms defined in this Section 1.01 (except as in this Indenture
otherwise expressly provided or unless the context otherwise requires) for all
purposes of this Indenture and of any indenture supplemental hereto shall have
the respective meanings specified in this Section 1.01 and shall include the
plural as well as the singular.  All other terms used in this Indenture that are
defined in the Trust Indenture Act or that are by reference in the Trust
Indenture Act defined in the Securities Act of 1933, as amended (the "Securities
Act") (except as herein otherwise expressly provided or unless the context
otherwise requires), shall have the meanings assigned to such terms in said
Trust Indenture Act and in said Securities Act as in force at the date of the
execution of this instrument.

     "Affiliate" means (a) any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
other obligor upon the Securities, (b) any spouse, immediate family member or
other relative who has the same principal residence of any Person described in
(a) above, (c) any trust in which any such Persons described in clause (a) or
(b) above has a beneficial interest and (d) any corporation or other
organization of which any such Persons described in clause (a), (b) or (c) above
collectively own more than 50% of the equity of such entity.  For purposes of
this definition, beneficial ownership of 10% or more of the voting common equity
(on a fully diluted basis) or warrants to purchase such equity (whether or not
currently exercisable) of a Person shall be deemed to be control of such Person.

                                       1
<PAGE>

     "Authenticating Agent" means an authenticating agent with respect to all or
any of the series of Securities appointed with respect to all or any series of
the Securities by the Trustee pursuant to Section 2.10.

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

     "Board of Directors" means the Board of Directors of the Company or any
duly authorized committee of such Board of Directors.

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

     "Business Day" means, with respect to any series of Securities, any day
other than a day on which Federal or State banking institutions in the Borough
of Manhattan, The City of New York, are authorized or obligated by law,
executive order or regulation to close.

     "Capital Stock" means any and all shares, interests, participations or
other equivalents (however designated) of corporate stock or partnership
interests.

     "Commission" means the Securities and Exchange Commission.

     "Company" means Computer Sciences Corporation, a corporation duly organized
and existing under the laws of the State of Nevada, and, subject to the
provisions of Article Ten, shall also include its successors and assigns.

     "Corporate Trust Office" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally administered,
which office at the date hereof is located at ______________________________,
except that whenever a provision herein refers to an office or agency of the
Trustee in the Borough of Manhattan, The City of New York, such office is
located, at the date hereof, at ____________________________________.

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

     "Default" means any event, act or condition that with notice or lapse of
time, or both, would constitute an Event of Default.

     "Depositary" means, with respect to Securities of any series, for which the
Company shall determine that such Securities will be issued as a Global
Security, The Depository Trust Company, New York, New York, another clearing
agency, or any successor registered as a clearing agency under the Securities
and Exchange Act of 1934, as amended (the "Exchange Act"), or other applicable
statute or regulation, which, in each case, shall be designated by the Company
pursuant to either Section 2.01 or 2.11.

     "Event of Default" means, with respect to Securities of a particular series
any event specified in Section 6.01, continued for the period of time, if any,
therein designated.

                                       2
<PAGE>

     "Global Security" means, with respect to any series of Securities, a
Security executed by the Company and delivered by the Trustee to the Depositary
or pursuant to the Depositary's instruction, all in accordance with the
Indenture, which shall be registered in the name of the Depositary or its
nominee.

     "Governmental Obligations" means securities that are (i) direct obligations
of the United States of America for the payment of which its full faith and
credit is pledged or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any such Governmental
Obligation or a specific payment of principal of or interest on any such
Governmental Obligation held by such custodian for the account of the holder of
such depositary receipt; provided, however, 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 Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

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

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into in accordance with the terms hereof.

     "Interest Payment Date", when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such
Security or in a Board Resolution or in an indenture supplemental hereto with
respect to such series as the fixed date on which an installment of interest
with respect to Securities of that series is due and payable.

     "Officer" means the President, the Treasurer, any Assistant Treasurer,
Controller, Secretary or any Vice-President of the Company.

     "Officers' Certificate" means a certificate signed by two Officers that is
delivered to the Trustee in accordance with the terms hereof.  Each such
certificate shall include the statements provided for in Section 13.06, if and
to the extent required by the provisions thereof.

     "Opinion of Counsel" means an opinion in writing of legal counsel, who may
be an employee of or counsel for the Company that is delivered to the Trustee in
accordance with the terms hereof.  Each such opinion shall include the
statements provided for in Section 13.06, if and to the extent required by the
provisions thereof.

     "Outstanding", when used with reference to Securities of any series, means,
subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for

                                       3
<PAGE>

cancellation or that have previously been canceled; (b) Securities or portions
thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the Company) or shall have been set
aside and segregated in trust by the Company (if the Company shall act as its
own paying agent); provided, however, that if such Securities or portions of
                   --------  -------
such Securities are to be redeemed prior to the maturity thereof, notice of such
redemption shall have been given as in Article Three provided, or provision
satisfactory to the Trustee shall have been made for giving such notice; and (c)
Securities in lieu of or in substitution for which other Securities shall have
been authenticated and delivered pursuant to the terms of Section 2.07.

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

     "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 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

     "Responsible Officer" means any officer within the Corporate Trust Office
including any Vice President, Assistant Vice President, Senior Trust Officer,
Assistant Trust Officer or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge and familiarity
with the particular subject.

     "Securities" means the debt Securities authenticated and delivered under
this Indenture.

     "Securityholder", "holder of Securities", "registered holder", or other
similar term, means the Person or Persons in whose name or names a particular
Security shall be registered on the books of the Company kept for that purpose
in accordance with the terms of this Indenture.

     "Subsidiary" means (a) a corporation a majority of whose Capital Stock with
voting power, under ordinary circumstances, to elect directors is at the time
directly or indirectly owned by the Company or by the Company and a Subsidiary
or Subsidiaries of the Company or by a Subsidiary or Subsidiaries of the Company
or (b) any other Person (other than a corporation) in which the Company or the
Company and a Subsidiary or Subsidiaries of the Company or a Subsidiary or
Subsidiaries of the Company directly or indirectly at the date of determination
thereof has at least a majority ownership interest.

     "Trustee" means ________________________________, and, subject to the
provisions of Article Seven, shall also include its successors and assigns, and,
if at any time there is more than one Person acting in such capacity hereunder,
"Trustee" shall mean each such Person. The term "Trustee" as used with respect
to a particular series of the Securities shall mean the trustee with respect to
that series.

                                       4
<PAGE>

     "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended, as
in effect at the date of execution of this instrument subject to the provisions
of Sections 9.01, 9.02, and 10.01.

                                  ARTICLE II.

            ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND
                            EXCHANGE OF SECURITIES

Section 2.01   Designation and Terms of Securities.
               -----------------------------------

     (a)  The aggregate principal amount of Securities that may be authenticated
and delivered under this Indenture is unlimited.  The Securities may be issued
in one or more series up to the aggregate principal amount of Securities of that
series from time to time authorized by or pursuant to a Board Resolution of the
Company or pursuant to one or more indentures supplemental hereto.  Prior to the
initial issuance of Securities of any series, there shall be established in or
pursuant to a Board Resolution of the Company, and set forth in an Officers'
Certificate of the Company, or established in one or more indentures
supplemental hereto:

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

          (2)  any limit upon the aggregate principal amount of the Securities
of that series that 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 that series);

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

          (4)  the rate or rates at which the Securities of the series shall
bear interest or the manner of calculation of such rate or rates, if any;

          (5)  the date or dates from which such interest shall accrue, the
Interest Payment Dates on which such interest will be payable or the manner of
determination of such Interest Payment Dates and the record date for the
determination of holders to whom interest is payable on any such Interest
Payment Dates;

          (6)  the right, if any, to extend the interest payment periods and the
duration of such extension;

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

          (8)  the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions
(including payments made in cash in participation of future sinking fund
obligations) or at the option of a holder thereof and

                                       5
<PAGE>

the period or periods within which, the price or prices at which, and the terms
and conditions upon which, Securities of the series shall be redeemed or
purchased, in whole or in part, pursuant to such obligation;

          (9)  the form of the Securities of the series including the form of
the Trustee's certificate of authentication for such series;

          (10) if other than denominations of One Thousand U.S. Dollars ($1,000)
or any integral multiple thereof, the denominations in which the Securities of
the series shall be issuable;

          (11) any and all other terms with respect to such series, including
any terms which may be required by or advisable under United States laws or
regulations or advisable in connection with the marketing of Securities of that
series;

          (12) whether the Securities are issuable as a Global Security and, in
such case, the identity for the Depositary for such series;

          (13) whether the Securities will be convertible into shares of common
stock or other securities of the Company and, if so, the terms and conditions
upon which such Securities will be so convertible, including the conversion
price and the conversion period;

          (14) if other than the principal amount thereof, the portion of the
principal amount of Securities of the series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.01;

          (15) any additional or different Events of Default or restrictive
covenants provided for with respect to the Securities of the series;

          (16) any provisions granting special rights to holders when a
specified event occurs;

          (17) any special tax implications of the Securities, including
provisions for original issue discount securities, if offered; and

          (18) whether and upon what terms Securities of a series may be
defeased if different from the provisions set forth in this Indenture.

          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 any such Board Resolution or in any indentures supplemental hereto.  If any
of the terms of the series are established by action taken pursuant to a Board
Resolution of the Company, 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 of the Company setting forth the terms of the series.

     Securities of any particular series may be issued at various times, with
different dates on which the principal or any installment of principal is
payable, with different rates of interest, if

                                       6
<PAGE>

any, or different methods by which rates of interest may be determined, with
different dates on which such interest may be payable and with different
redemption dates.

Section 2.02   Form of Securities and Trustee's Certificate.
               --------------------------------------------

     The Securities of any series and the Trustee's certificate of
authentication to be borne by such Securities shall be substantially of the
tenor and purport as set forth in one or more indentures supplemental hereto or
as provided in a Board Resolution of the Company and as set forth in an
Officers' Certificate of the Company and may have such letters, numbers or other
marks of identification or designation and such legends or endorsements printed,
lithographed or engraved thereon as the Company may deem appropriate and as are
not inconsistent with the provisions of this Indenture, or as may be required to
comply with any law or with any rule or regulation made pursuant thereto or with
any rule or regulation of any stock exchange on which Securities of that series
may be listed, or to conform to usage.

Section 2.03   Denominations: Provisions for Payment.
               -------------------------------------

     The Securities shall be issuable as registered Securities and in the
denominations of One Thousand U.S. Dollars ($1,000) or any integral multiple
thereof, subject to Section 2.01(10).  The Securities of a particular series
shall bear interest payable on the dates and at the rate specified as provided
in Section 2.01 with respect to that series.  The principal of and the interest
on the Securities of any series, as well as any premium thereon in case of
redemption thereof prior to maturity, shall be payable in the coin or currency
of the United States of America that at the time is legal tender for public and
private debt, at the office or agency of the Company maintained for that purpose
in the Borough of Manhattan, the City and State of New York.  Each Security
shall be dated the date of its authentication.  Unless otherwise specified with
respect to a series of Securities in accordance with the provisions of Section
2.01, interest on the Securities shall be computed on the basis of a 360-day
year composed of twelve 30-day months.

     The interest installment on any Security that is payable, and is punctually
paid or duly provided for, on any Interest Payment Date for Securities of that
series shall be paid to the Person in whose name said Security (or one or more
Predecessor Securities) is registered at the close of business on the regular
record date for such interest installment.  In the event that any Security of a
particular series or portion thereof is called for redemption and the redemption
date is subsequent to a regular record date with respect to any Interest Payment
Date and prior to such Interest Payment Date, interest on such Security will be
paid upon presentation and surrender of such Security as provided in Section
3.03.

     Unless otherwise specified with respect to a series of Securities in
accordance with the provisions of Section 2.01, any interest on any Security
that is payable, but is not punctually paid or duly provided for, on any
Interest Payment Date for Securities of the same series (herein called
"Defaulted Interest") shall forthwith cease to be payable to the registered
holder on the relevant regular record date and such Defaulted Interest shall be
paid by the Company, at its election, as provided in clause (1) or clause (2)
below.

          (1)  The Company may make payment of any Defaulted Interest on
     Securities to the Persons in whose names such Securities (or their
     respective Predecessor Securities)

                                       7
<PAGE>

     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 such Security and the date
     of the proposed payment, and at the same time the Company shall deposit
     with the Trustee an amount of money equal to the aggregate amount proposed
     to be paid in respect of such Defaulted Interest or shall make arrangements
     satisfactory to the Trustee for such deposit prior to the date of the
     proposed payment, such money when deposited to be held in trust for the
     benefit of the Persons entitled to such Defaulted Interest as in this
     clause (1) provided. Thereupon the Trustee shall fix a special record date
     for the payment of such Defaulted Interest which shall not be more than 15
     nor 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 mailed, first class postage prepaid,
     to each Securityholder at his or her address as it appears in the Security
     Register (as hereinafter defined), 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 mailed as
     aforesaid, such Defaulted Interest shall be paid to the Persons in whose
     names such Securities (or their respective Predecessor Securities) are
     registered on such special record date and shall not be payable pursuant to
     the following clause (2).

          (2)  The Company may make payment of any Defaulted Interest on any
     Securities 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.

     Unless otherwise set forth in a Board Resolution of the Company or one or
more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month, or the last day of the month
immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a
Business Day. Subject to the foregoing provisions of this Section, each Security
of a series delivered under this Indenture upon transfer of or in exchange for
or in lieu of any other Security of such series shall carry the rights to
interest accrued and unpaid, and to accrue, that were carried by such other
Security.

Section 2.04   Execution and Authentications.
               -----------------------------

     The Securities shall be signed on behalf of the Company by two Officers.
Signatures may be in the form of a manual or facsimile signature.  The Company
may use the facsimile signature of any Person who shall have been an Officer,
notwithstanding the fact that at the time

                                       8
<PAGE>

the Securities shall be authenticated and delivered or disposed of such Person
shall have ceased to be an Officer of the Company. The Securities may contain
such notations, legends or endorsements required by law, stock exchange rule or
usage. Each Security shall be dated the date of its authentication by the
Trustee.

     A Security shall not be valid until authenticated manually by an authorized
signatory of the Trustee or by an Authenticating Agent.  Such signature shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the holder is entitled to the
benefits of this Indenture.  At any time and from time to time after the
execution and delivery of this Indenture, the Company may deliver Securities of
any series executed by the Company to the Trustee for authentication, together
with a written order of the Company for the authentication and delivery of such
Securities, signed by an Officer, and the Trustee in accordance with such
written order shall authenticate and deliver such Securities.

Section 2.05   Registration of Transfer and Exchange.
               -------------------------------------

     (a)  Securities of any series may be exchanged upon presentation thereof at
the office or agency of the Company designated for such purpose in the Borough
of Manhattan, the City and State of New York, for other Securities of such
series of authorized denominations, and for a like aggregate principal amount,
upon payment of a sum sufficient to cover any tax or other governmental charge
in relation thereto, all as provided in this Section 2.05.  In respect of any
Securities so surrendered for exchange, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in exchange therefor
the Security or Securities of the same series that the Securityholder making the
exchange shall be entitled to receive, bearing numbers not contemporaneously
outstanding.

     (b)  The Company shall keep, or cause to be kept, at its office or agency
designated for such purpose in the Borough of Manhattan, the City and State of
New York, or such other location designated by the Company a register or
registers (herein referred to as the "Security Register") in which, subject to
                                      -----------------
such reasonable regulations as it may prescribe, the Company shall register the
Securities and the transfers of Securities as in this Article II provided and
which at all reasonable times shall be open for inspection by the Trustee.  The
registrar for the purpose of registering Securities and transfer of Securities
as herein provided shall be appointed as authorized by Board Resolution (the
"Security Registrar").  If the Company fails to appoint or maintain another
 ------------------
entity as Security Registrar, the Trustee shall act as such.  The Company or any
of its Subsidiaries may act as Security Registrar.

     Upon surrender for transfer of any Security at the office or agency of the
Company designated for such purpose, the Company shall execute, the Trustee
shall authenticate and such office or agency shall deliver in the name of the
transferee or transferees a new Security or Securities of the same series as the
Security presented for a like aggregate principal amount.

     All Securities presented or surrendered for exchange or registration of
transfer, as provided in this Section 2.05, shall be accompanied (if so required
by the Company or the Security Registrar) by a written instrument or instruments
of transfer, in form satisfactory to the Company or the Security Registrar, duly
executed by the registered holder or by such holder's duly authorized attorney
in writing.

                                       9
<PAGE>

     (c)  No service charge shall be made for any exchange or registration of
transfer of Securities, or issue of new Securities in case of partial redemption
of any series, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge in relation thereto, other than exchanges
pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any
transfer.

     (d)  The Company shall not be required (i) to issue, exchange or register
the transfer of any Securities during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of less
than all the Outstanding Securities of the same series and ending at the close
of business on the day of such mailing, nor (ii) to register the transfer of or
exchange any Securities of any series or portions thereof called for redemption.
The provisions of this Section 2.05 are, with respect to any Global Security,
subject to Section 2.11 hereof.

Section 2.06   Temporary Securities.
               --------------------

     Pending the preparation of definitive Securities of any series, the Company
may execute, and the Trustee shall authenticate and deliver, temporary
Securities (printed, lithographed or typewritten) of any authorized
denomination.  Such temporary Securities shall be substantially in the form of
the definitive Securities in lieu of which they are issued, but with such
omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company.  Every temporary Security
of any series shall be executed by the Company and be authenticated by the
Trustee upon the same conditions and in substantially the same manner, and with
like effect, as the definitive Securities of such series.  Without unnecessary
delay the Company will execute and will furnish definitive Securities of such
series and thereupon any or all temporary Securities of such series may be
surrendered in exchange therefor (without charge to the holders), at the office
or agency of the Company designated for the purpose in the Borough of Manhattan,
the City and State of New York, and the Trustee shall authenticate and such
office or agency shall deliver in exchange for such temporary Securities an
equal aggregate principal amount of definitive Securities of such series, unless
the Company advises the Trustee to the effect that definitive Securities need
not be executed and furnished until further notice from the Company.  Until so
exchanged, the temporary Securities of such series shall be entitled to the same
benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

Section 2.07   Mutilated, Destroyed, Lost or Stolen Securities.
               -----------------------------------------------

     In case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company's request the Trustee (subject to the next
succeeding sentence) shall authenticate and deliver, a new Security of the same
series, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Security, or in lieu of and in substitution for
the Security so destroyed, lost or stolen. In every case the applicant for a
substituted Security shall furnish to the Company and the Trustee such security
or indemnity as may be required by them to save each of them harmless, and, in
every case of destruction, loss or theft, the applicant shall also furnish to
the Company and the Trustee evidence to their satisfaction of the destruction,
loss or theft of the applicant's Security and of the ownership thereof.  The
Trustee may authenticate

                                      10
<PAGE>

any such substituted Security and deliver the same upon the written request or
authorization of any Officer. Upon the issuance of any substituted Security, 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.
In case any Security that has matured or is about to mature shall become
mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a
substitute Security, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Security) if the applicant for such
payment shall furnish to the Company and the Trustee such security or indemnity
as they may require to save them harmless, and, in case of destruction, loss or
theft, evidence to the satisfaction of the Company and the Trustee of the
destruction, loss or theft of such Security and of the ownership thereof.

     Every replacement Security issued pursuant to the provisions of this
Section 2.07 shall constitute an additional contractual obligation of the
Company whether or not the mutilated, destroyed, lost or stolen Security shall
be found at any time, or be enforceable by anyone, and shall be entitled to all
the benefits of this Indenture equally and proportionately with any and all
other Securities of the same series duly issued hereunder. All Securities shall
be held and owned upon the express condition that the foregoing provisions are
exclusive with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities, and shall preclude (to the extent lawful) any and all
other rights or remedies, notwithstanding any law or statute existing or
hereafter enacted to the contrary with respect to the replacement or payment of
negotiable instruments or other securities without their surrender.

Section 2.08   Cancellation.
               ------------

     All Securities surrendered for the purpose of payment, redemption, exchange
or registration of transfer shall, if surrendered to the Company or any paying
agent, be delivered to the Trustee for cancellation, or, if surrendered to the
Trustee, shall be cancelled by it, and no Securities shall be issued in lieu
thereof except as expressly required or permitted by any of the provisions of
this Indenture.  On written request of the Company at the time of such
surrender, the Trustee shall deliver to the Company canceled Securities held by
the Trustee.  In the absence of such request the Trustee may dispose of canceled
Securities in accordance with its standard procedures and deliver a certificate
of disposition to the Company.  If the Company shall otherwise acquire any of
the Securities, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the same are delivered to the Trustee for cancellation.

Section 2.09   Benefits of Indenture.
               ---------------------

     Nothing in this Indenture or in the Securities, express or implied, shall
give or be construed to give to any Person, other than the parties hereto and
the holders of the Securities, any legal or equitable right, remedy or claim
under or in respect of this Indenture, or under any covenant, condition or
provision herein contained; all such covenants, conditions and provisions being
for the sole benefit of the parties hereto and of the holders of the Securities.

                                      11
<PAGE>

Section 2.10   Authenticating Agent.
               --------------------

     So long as any of the Securities of any series remain Outstanding there may
be an Authenticating Agent for any or all such series of Securities which the
Trustee shall have the right to appoint.  Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series, including Securities issued upon exchange, transfer or partial
redemption thereof, 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. All references in this Indenture to
the authentication of Securities by the Trustee shall be deemed to include
authentication by an Authenticating Agent for such series.  Each Authenticating
Agent shall be acceptable to the Company and shall be a corporation that has a
combined capital and surplus, as most recently reported or determined by it,
sufficient under the laws of any jurisdiction under which it is organized or in
which it is doing business to conduct a trust business, and that is otherwise
authorized under such laws to conduct such business and is subject to
supervision or examination by Federal or State authorities.  If at any time any
Authenticating Agent shall cease to be eligible in accordance with these
provisions, it shall resign immediately. Any Authenticating Agent may at any
time resign by giving written notice of resignation to the Trustee and to the
Company.  The Trustee may at any time (and upon request by the Company shall)
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company.  Upon resignation,
termination or cessation of eligibility of any Authenticating Agent, the Trustee
may appoint an eligible successor Authenticating Agent acceptable to the
Company.  Any successor Authenticating Agent, upon acceptance of its appointment
hereunder, shall become vested with all the rights, powers and duties of its
predecessor hereunder as if originally named as an Authenticating Agent pursuant
hereto.

Section 2.11   Global Securities.
               -----------------

     (a)  If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate, a Global Security that (i) shall represent, and shall be
denominated in an amount equal to the aggregate principal amount of, all of the
Outstanding Securities of such series, (ii) shall be registered in the name of
the Depositary or its nominee, (iii) shall be delivered to the Trustee as
custodian for the Depositary or otherwise delivered pursuant to the Depositary's
instruction and (iv) shall bear a legend substantially to the following effect:
"Except as otherwise provided in Section 2.11 of the Indenture, this Security
may be transferred, in whole but not in part, only to another nominee of the
Depositary or to a successor Depositary or to a nominee of such successor
Depositary."

     (b)  Notwithstanding the provisions of Section 2.05, the Global Security of
a series may be transferred, in whole but not in part and in the manner provided
in Section 2.05, only to another nominee of the Depositary for such series, or
to a successor Depositary for such series selected or approved by the Company or
to a nominee of such successor Depositary.

     (c)  If at any time the Depositary for a series of the Securities notifies
the Company that it is unwilling or unable to continue as Depositary for such
series or if at any time the Depositary for such series shall no longer be
registered or in good standing under the Exchange

                                      12
<PAGE>

Act, or other applicable statute or regulation, and a successor Depositary for
such series is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such condition, as the case may be,
this Section 2.11 shall no longer be applicable to the Securities of such series
and the Company will execute, and subject to Section 2.05, the Trustee will
authenticate and deliver the Securities of such series in definitive registered
form without coupons, in authorized denominations, and in an aggregate principal
amount equal to the principal amount of the Global Security of such series in
exchange for such Global Security. In addition, the Company may at any time
determine that the Securities of any series shall no longer be represented by a
Global Security and that the provisions of this Section 2.11 shall no longer
apply to the Securities of such series. In such event the Company will execute
and subject to Section 2.05, the Trustee, upon receipt of an Officers'
Certificate evidencing such determination by the Company, will authenticate and
deliver the Securities of such series in definitive registered form without
coupons, in authorized denominations, and in an aggregate principal amount equal
to the principal amount of the Global Security of such series in exchange for
such Global Security. Upon the exchange of the Global Security of such series
for such Securities of such series in definitive registered form without
coupons, in authorized denominations, the Global Security shall be canceled by
the Trustee. Such Securities of such series in definitive registered form issued
in exchange for the Global Security pursuant to this Section 2.11(c) shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Depositary for delivery to the Persons in whose names such Securities are so
registered.

Section 2.12   CUSIP Numbers.
               -------------

     The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Securityholders; provided that any such notice
                                                   --------
may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other identification
numbers printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.  The Company will promptly notify
the Trustee of any change in the "CUSIP" numbers.

                                 ARTICLE III.

             REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

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

     The Company may redeem the Securities of any series issued hereunder on and
after the dates and in accordance with the terms established for such series
pursuant to Section 2.01 hereof.

                                      13
<PAGE>

Section 3.02  Notice of Redemption.
              --------------------

     (a)  If the Company desires to exercise such right to redeem all or, as the
case may be, a portion of the Securities of any series, the Company shall, or
shall cause the Trustee to, give notice of such redemption to holders of the
Securities of such series to be redeemed by mailing, first class postage
prepaid, a notice of such redemption not less than 30 days and not more than 90
days before the date fixed for redemption of that series to such holders at
their last addresses as they shall appear upon the Security Register (unless a
shorter period is specified in the Securities to be redeemed).  Any notice that
is mailed in the manner herein provided shall be conclusively presumed to have
been duly given, whether or not the registered holder receives the notice.  In
any case, failure duly to give such notice to the holder of any Security of any
series designated for redemption in whole or in part, or any defect in the
notice, shall not affect the validity of the proceedings for the redemption of
any other Securities of such series or any other series.  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 any such restriction.

     Each such notice of redemption shall specify the date fixed for redemption
and the redemption price at which Securities of that series are to be redeemed,
and shall state that payment of the redemption price of such Securities to be
redeemed will be made at the office or agency of the Company in the Borough of
Manhattan, the City and State of New York, upon presentation and surrender of
such Securities, that interest accrued to the date fixed for redemption will be
paid as specified in said notice, that from and after said date interest will
cease to accrue and that the redemption is for a sinking fund, if such is the
case.  If less than all the Securities of a series are to be redeemed, the
notice to the holders of Securities of that series to be redeemed in whole or in
part shall specify the particular Securities to be so redeemed.  In case any
Security is to be redeemed in part only, the notice that relates to such
Security shall state the portion of the principal amount thereof to be redeemed,
and shall state that on and after the redemption date, upon surrender of such
Security, a new Security or Securities of such series in principal amount equal
to the unredeemed portion thereof will be issued.

     (b)  If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select from Securities of
such series Outstanding not previously called for redemption, in accordance with
a method that it shall deem appropriate and fair (in such manner as complies
with applicable legal and stock exchange requirements, if any) and that may
provide for the selection of a portion or portions (equal to One Thousand U.S.
Dollars ($1,000) or any integral multiple thereof) of the principal amount of
such Securities of such series of a denomination larger than $1,000, the
Securities of such series to be redeemed and shall thereafter promptly notify
the Company in writing of the numbers of the Securities of such series to be
redeemed, in whole or in part.

     The Company may, if and whenever it shall so elect, by delivery of
instructions signed on its behalf by any of its Officers, instruct the Trustee
or any paying agent to call all or any part of the Securities of a particular
series for redemption and to give notice of redemption in the

                                      14
<PAGE>

manner set forth in this Section 3.02, such notice to be in the name of the
Company or its own name, as the Trustee or such paying agent may deem advisable.
In any case in which notice of redemption is to be given by the Trustee or any
such paying agent, the Company shall deliver or cause to be delivered to, or
permit to remain with, the Trustee or such paying agent, as the case may be,
such Security Register, transfer books or other records, or suitable copies or
extracts therefrom, sufficient to enable the Trustee or such paying agent to
give any notice by mail that may be required under the provisions of this
Section 3.02.

Section 3.03  Payment Upon Redemption.
              -----------------------

     (a)  If the giving of notice of redemption shall have been completed as
above provided, the Securities or portions of Securities of the series to be
redeemed specified in such notice shall become due and payable on the date and
at the place stated in such notice at the applicable redemption price, together
with interest accrued to the date fixed for redemption, in each case as
established pursuant to Section 2.01, and interest on such Securities or
portions of Securities shall cease to accrue on and after the date fixed for
redemption, unless the Company shall default in the payment of such redemption
price and accrued interest with respect to any such Security or portion thereof.
On presentation and surrender of such Securities on or after the date fixed for
redemption at the place of payment specified in the notice, said Securities
shall be paid and redeemed at the applicable redemption price for such series,
together with interest accrued thereon to the date fixed for redemption (but if
the date fixed for redemption is an interest payment date, the interest
installment payable on such date shall be payable to the registered holder at
the close of business on the applicable record date pursuant to Section 2.03).

     (b)  Upon presentation of any Security of such series that is to be
redeemed in part only, the Company shall execute and the Trustee shall
authenticate and the office or agency where the Security is presented shall
deliver to the holder thereof, at the expense of the Company, a new Security of
the same series of authorized denominations in principal amount equal to the
unredeemed portion of the Security so presented.

Section 3.04  Sinking Fund.
              ------------

     The provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any
sinking fund for the retirement of Securities of a series, except as otherwise
specified as contemplated by Section 2.01 for Securities of such series.

     The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a "mandatory sinking fund
payment," and any payment in excess of such minimum amount provided for by the
terms of Securities of any series is herein referred to as an "optional sinking
fund payment".  If provided for by the terms of Securities of any series, the
cash amount of any sinking fund payment may be subject to reduction as provided
in Section 3.05.  Each sinking fund payment shall be applied to the redemption
of Securities of any series as provided for by the terms of Securities of such
series.

Section 3.05  Satisfaction of Sinking Fund Payments with Securities.
              -----------------------------------------------------

     The Company (i) may deliver Outstanding Securities of a series (other than
any Securities previously called for redemption) and (ii) may apply as a credit
Securities of a series

                                      15
<PAGE>

that have been redeemed either at the election of the Company pursuant to the
terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Securities of such series required to be made pursuant to the terms of such
Securities, provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the redemption price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.

Section 3.06  Redemption of Securities for Sinking Fund.
              -----------------------------------------

     Not less than 45 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of the series, the portion thereof, if any,
that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.05 and the basis for such credit and will, together with
such Officers' Certificate, deliver to the Trustee any Securities to be so
delivered.  Not less than 30 days before each such sinking fund payment date the
Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.02 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 3.02.  Such notice having been duly given, the
redemption of such Securities shall be made upon the terms and in the manner
stated in Section 3.03.

                                  ARTICLE IV.

                               CERTAIN COVENANTS

Section 4.01  Payment of Principal, Premium and Interest.
              ------------------------------------------

     The Company will duly and punctually pay or cause to be paid the principal
of (and premium, if any) and interest on the Securities of a series at the time
and place and in the manner provided herein and established with respect to such
Securities.

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

     So long as any series of the Securities remain Outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City and
State of New York, with respect to each such series and at such other location
or locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as herein authorized for registration of transfer and
exchange, and (iii) notices and demands to or upon the Company in respect of the
Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by any Officer and delivered to the Trustee,
designate some other office or agency for such purposes or any of them.  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, notices and demands may be

                                      16
<PAGE>

made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations,
notices and demands.

Section 4.03  Paying Agents.
              -------------

     (a)  The Company may appoint one or more paying agents for all or any
series of the Securities, other than the Trustee. If the Company fails to
appoint or maintain another entity as paying agent, the Trustee shall act as
such. The Company or any of its Subsidiaries may act as paying agent.

     (b)  The Company shall require each paying agent other than the Trustee to
agree in writing that the paying agent will hold in trust for the benefit of
Securityholders or the Trustee all money held by the paying agent for the
payment of principal or interest on the Securities, and will promptly notify the
Trustee in writing of any default by the Company in making any such payment.
While any such default continues, the Trustee may require a paying agent to pay
all money held by it to the Trustee.  The Company at any time may require a
paying agent to pay all money held by it to the Trustee.  Upon payment over to
the Trustee, the paying agent (if other than the Company or a Subsidiary) shall
have no further liability for the money.  If the Company or a Subsidiary acts as
paying agent, it shall segregate and hold in a separate trust fund for the
benefit of the Securityholders all money held by it as paying agent.

     (c)  Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section 4.03 is subject to
the provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge or defeasance of this
Indenture or for any other purpose, pay, or 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 terms and conditions 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.

Section 4.04  Compliance with Laws, Taxes.
              ---------------------------

     The Company shall, and shall cause each of its Subsidiaries to, comply with
all statutes, laws, ordinances, or government rules and regulations to which it
is subject, noncompliance with which would materially adversely affect the
business, earnings, properties, assets or financial condition of the Company and
its Subsidiaries taken as a whole. The Company shall, and shall cause each of
its Subsidiaries to, pay prior to delinquency all taxes, assessments, and
governmental levies except as contested in good faith and by appropriate
proceedings.

Section 4.05  Corporate Existence.
              -------------------

     Subject to Article Ten hereof, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence in accordance with its organizational documents.

                                      17
<PAGE>

Section 4.06  Statement by Officers as to Default.
              -----------------------------------

     The Company, so long as any Securities are Outstanding, will deliver to the
Trustee, within 120 days after the end of each fiscal year of the Company ending
after the date hereof, an Officers' Certificate signed by its principal
executive officer, principal financial officer or principal accounting officer
stating whether or not to the best knowledge of the signer thereof the Company
is in default in the performance and observance of any of the terms, provisions
and conditions of this Indenture, and if the Company shall be in default,
specifying all such defaults and the nature and status thereof of which they may
have knowledge.

     The Company, so long as any Securities are Outstanding, shall promptly
deliver to the Trustee, forthwith upon any Officer becoming aware of the
occurrence of any 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
specifying such Event of Default or Default and the action which the Company
proposes to make with respect thereto.

Section 4.07  Waiver of Certain Covenants
              ---------------------------

     The Company may omit in any particular instance to comply with any term,
provision or condition set forth in Sections 4.04 and 4.05 with respect to the
Securities of any series if before or after the time for such compliance the
Securityholders of at least a majority in principal amount of all Outstanding
Securities of such series, by act of such Securityholders, either waive such
compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant 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.

Section 4.08  Appointment to Fill Vacancy in Office of Trustee.
              ------------------------------------------------

     The Company, whenever necessary to avoid or to fill a vacancy in the office
of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall be at all times a Trustee hereunder.

                                  ARTICLE V.

       SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

Section 5.01  Company to Furnish Trustee Names and Addresses of Securityholders.
              -----------------------------------------------------------------

     The Company will furnish or cause to be furnished to the Trustee (a) semi-
annually at least seven Business Days before each Interest Payment Date for a
series of Securities (and in all events at intervals of not more than six
months) a list, in such form as the Trustee may reasonably require, of the names
and addresses of the holders of each series of Securities as of such date,
provided that the Company shall not be obligated to furnish or cause to furnish
--------
such list at any time that the list shall not differ in any respect from the
most recent list furnished to

                                      18
<PAGE>

the Trustee by the Company and (b) at such other times as the Trustee may
request in writing within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that, in either
                                          --------  -------
case, no such list need be furnished for any series for which the Trustee shall
be the Security Registrar.

Section 5.02  Preservation of Information; Communications with Securityholders.
              ----------------------------------------------------------------

     (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the holders of
Securities contained in the most recent list furnished to it as provided in
Section 5.01 and as to the names and addresses of holders of Securities received
by the Trustee in its capacity as Security Registrar (if acting in such
capacity).

     (b) Securityholders may communicate as provided in Section 312(b) of the
Trust Indenture Act with other Securityholders with respect to their rights
under this Indenture or under the Securities.

Section 5.03  Reports by the Company.
              ----------------------

     (a) The Company covenants and agrees to file with the Trustee, within 15
days after the Company is required to file with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) that the Company may be required to file with
the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company is not required to file information, documents or reports
pursuant to either such Sections, then to file with the Trustee and the
Commission, in accordance with the rules and regulations prescribed from time to
time by the Commission, such of the supplementary and periodic information,
documents and reports that may be required pursuant to Section 13 of the
Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and
regulations.

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

     (c) The Company covenants and agrees to transmit by mail, first class
postage prepaid, or reputable overnight delivery service that provides for
evidence of receipt, to the Securityholders, as their names and addresses appear
upon the Security Register, within 30 days after the filing thereof with the
Trustee, such summaries of any information, documents and reports required to be
filed by the Company pursuant to the subsections (a) and (b) of this Section
5.03 as may be required by rules and regulations prescribed from time to time by
the Commission.

     (d) Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive

                                      19
<PAGE>

notice of any information contained therein or determinable from information
contained therein, including the Company's compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officers'
Certificates).

Section 5.04  Reports by the Trustee.
              ----------------------

     (a)  Within 60 days after each August 15 beginning with the August 15
following the date of this Indenture, the Trustee shall transmit by mail, first
class postage prepaid, to the Securityholders, as their names and addresses
appear upon the Security Register, a brief report dated as of the fifteenth day
before the end of such fiscal year, if and to the extent required under Section
313(a) of the Trust Indenture Act.

     (b)  The Trustee shall comply with Section 313(b) and 313(c) of the Trust
Indenture Act.

     (c)  A copy of each such report shall, at the time of such transmission to
Securityholders, be filed by the Trustee with the Company, with each stock
exchange upon which any Securities are listed (if so listed) and also with the
Commission.  The Company agrees to notify the Trustee when any Securities become
listed on any stock exchange or delisted therefrom.

                                  ARTICLE VI.

        REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

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

     (a)  Whenever used herein with respect to Securities of a particular
series, "Event of Default" means any one or more of the following events that
has occurred and is continuing:

          (1) the Company defaults in the payment of any installment of interest
upon any of the Securities of that series, as and when the same shall become due
and payable, and continuance of such default for a period of 90 days; provided,
                                                                      --------
however, that a valid extension of an interest payment period by the Company in
-------
accordance with the terms of any indenture supplemental hereto shall not
constitute a default in the payment of interest for this purpose;

          (2) the Company defaults in the payment of the principal of (or
premium, if any, on) any of the Securities of that series as and when the same
shall become due and payable whether at maturity, upon redemption, by
declaration or otherwise, or in any payment required by any sinking or analogous
fund established with respect to that series; provided, however, that a valid
                                              --------  -------
extension of the maturity of such Securities in accordance with the terms of any
indenture supplemental hereto shall not constitute a default in the payment of
principal or premium, if any;

          (3) the Company fails to observe or perform any other of its covenants
or agreements with respect to that series contained in this Indenture or
otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more

                                      20
<PAGE>

series of Securities other than such series) for a period of 90 days after the
date on which written notice of such failure, requiring the same to be remedied
and stating that such notice is a "Notice of Default" hereunder, shall have been
                                   -----------------
given to the Company by the Trustee, by registered or certified mail, or to the
Company and the Trustee by the holders of at least 25% in principal amount of
the Securities of that series at the time Outstanding;

          (4) the Company pursuant to or within the meaning of any Bankruptcy
Law (i) commences a voluntary case, (ii) consents to the entry of an order for
relief against it in an involuntary case, (iii) consents to the appointment of a
Custodian of it or for all or substantially all of its property or (iv) makes a
general assignment for the benefit of its creditors; or

          (5) a court of competent jurisdiction enters an order under any
Bankruptcy Law that (i) is for relief against the Company in an involuntary
case, (ii) appoints a Custodian of the Company for all or substantially all of
the Company's properties, or (iii) orders the liquidation of the Company, and,
in either of the above cases, the order or decree remains unstayed and in effect
for 90 days.

     (b)  In each and every such case, unless the principal of all the
Securities of that series shall have already become due and payable, either the
Trustee or the holders of not less than 25% in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by notice in writing to
the Company (and to the Trustee if given by such Securityholders), may declare
the unpaid principal of all the Securities of that series to be due and payable
immediately, and upon any such declaration the same shall become and shall be
immediately due and payable, notwithstanding anything contained in this
Indenture or in the Securities of that series or established with respect to
that series pursuant to Section 2.01 to the contrary.

     (c)  At any time after the principal of the Securities of that series shall
have been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the holders of a majority in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if:  (i) the Company has paid or deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of (and premium, if any, on) any and all
Securities of that series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit), and (ii) any and all Events
of Default under the Indenture with respect to such series, other than the
nonpayment of principal on Securities of that series that shall not have become
due by their terms, shall have been remedied or waived as provided in Section
6.06.

     No such rescission and annulment shall extend to or shall affect any
subsequent default or impair any right consequent thereon.

     (d)  In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been

                                      21
<PAGE>

determined adversely to the Trustee, then and in every such case the Company and
the Trustee shall be restored respectively to their former positions and rights
hereunder, and all rights, remedies and powers of the Company and the Trustee
shall continue as though no such proceedings had been taken.

Section 6.02  Collection of Indebtedness and Suits for Enforcement by Trustee.
              ---------------------------------------------------------------

     (a) The Company covenants that (1) in case it shall default in the payment
of any installment of interest on any of the Securities of a series, or any
payment required by any sinking or analogous fund established with respect to
that series as and when the same shall have become due and payable, and such
default shall have continued for a period of 90 Business Days, or (2) in case it
shall default in the payment of the principal of (or premium, if any, on) any of
the Securities of a series when the same shall have become due and payable,
whether upon maturity of the Securities of a series or upon redemption or upon
declaration or otherwise, then, upon demand of the Trustee, the Company will pay
to the Trustee, for the benefit of the holders of the Securities of that series,
the whole amount that then shall have been become due and payable on all such
Securities for principal (and premium, if any) or interest, or both, as the case
may be, with interest upon the overdue principal (and premium, if any) and (to
the extent that payment of such interest is enforceable under applicable law)
upon overdue installments of interest at the rate per annum expressed in the
Securities of that series; and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, and the
amount payable to the Trustee under Section 7.06.

     (b) If the Company shall fail to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust, shall
be entitled and empowered to institute any action or proceedings at law or in
equity for the collection of the sums so due and unpaid, and may prosecute any
such action or proceeding to judgment or final decree, and may enforce any such
judgment or final decree against the Company and collect the moneys adjudged or
decreed to be payable in the manner provided by law out of the property of the
Company, wherever situated.

     (c) In case of any receivership, insolvency, liquidation, bankruptcy,
reorganization, readjustment, arrangement, composition or judicial proceedings
affected the Company, or its creditors or property, the Trustee shall have power
to intervene in such proceedings and take any action therein that may be
permitted by the court and shall (except as may be otherwise provided by law) be
entitled to file such proofs of claim and other papers and documents as may be
necessary or advisable in order to have the claims of the Trustee and of the
holders of Securities of such series allowed for the entire amount due and
payable by the Company under the Indenture at the date of institution of such
proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property
payable or deliverable on any such claim, and to distribute the same in
accordance with Section 6.03 hereof; and any receiver, assignee or trustee in
bankruptcy or reorganization is hereby authorized by each of the holders of
Securities of such series to make such payments to the Trustee, and, in the
event that the Trustee shall consent to the making of such payments directly to
such Securityholders, to pay to the Trustee any amount due it under Section
7.06.

                                      22
<PAGE>

     (d) All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other proceeding relative thereto, and
any such suit or 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 payment to the Trustee of any amounts due under Section
7.06, be for the ratable benefit of the holders of the Securities of such
series.

     In case of an Event of Default hereunder, the Trustee may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in the Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

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

Section 6.03  Application of Moneys Collected.
              -------------------------------

     Any moneys collected by the Trustee pursuant to this Article VI with
respect to a particular series of Securities shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal (or premium, if any) or
interest, upon presentation of the Securities of that series, and notation
thereon the payment, if only partially paid, and upon surrender thereof if fully
paid:

     FIRST:  To the payment of costs and expenses of collection and of all
amounts payable to the Trustee under Section 7.06;

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

     THIRD:  To the Company.

Section 6.04  Limitation on Suits.
              -------------------

     No holder of any Security of any series shall have any right by virtue or
by availing himself or herself of any provision of this Indenture to institute
any suit, action or proceeding in equity or at law upon or under or with respect
to this Indenture or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless (i) such holder previously shall have given to
the Trustee written notice of an Event of Default and of the continuance thereof

                                      23
<PAGE>

with respect to the Securities of such series specifying such Event of Default,
as hereinbefore provided; (ii) the holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred therein or thereby;
(iv) the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity, shall have failed to institute any such action, suit or
proceeding; and (v) during such 60 day period, the holders of a majority in
principal amount of the Securities of that series do not give the Trustee a
direction inconsistent with the request.

     Notwithstanding anything contained herein to the contrary, any other
provisions of this Indenture, the right of any holder of any Security to receive
payment of the principal of (and premium, if any) and interest on such Security,
as therein provided, on or after the respective due dates expressed in such
Security (or in the case of redemption, on the redemption date), or to institute
suit for the enforcement of any such payment on or after such respective dates
or redemption date, shall not be impaired or affected without the consent of
such holder and by accepting a Security hereunder it is expressly understood,
intended and covenanted by the taker and holder of every Security of such series
with every other such taker and holder and the Trustee, that no one or more
holders of Securities of such series shall have any right in any manner
whatsoever by virtue or by availing himself or herself of any provision of this
Indenture to affect, disturb or prejudice the rights of the holders of any other
of such Securities, or to obtain or seek to obtain priority over or preference
to any other such holder, or to enforce any right under this Indenture, except
in the manner herein provided and for the equal, ratable and common benefit of
all holders of Securities of such series.  For the protection and enforcement of
the provisions of this Section 6.04, each and every Securityholder and the
Trustee shall be entitled to such relief as can be given either at law or in
equity.

Section 6.05  Rights and Remedies Cumulative; Delay or Omission not Waiver.
              ------------------------------------------------------------

     (a) Except as otherwise provided in Section 2.07, all powers and remedies
given by this Article VI to the Trustee or to the Securityholders shall, to the
extent permitted by law, be deemed cumulative and not exclusive of any other
powers and remedies available to the Trustee or the holders of the Securities,
by judicial proceedings or otherwise, to enforce the performance or observance
of the covenants and agreements contained in this Indenture or otherwise
established with respect to such Securities.

     (b) No delay or omission of the Trustee or of any holder of any of the
Securities to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or on acquiescence
therein; and, subject to the provisions of Section 6.04, every power and remedy
given by this Article VI or by law to the Trustee or the Securityholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Securityholders.

                                      24
<PAGE>

Section 6.06  Control by Securityholders.
              --------------------------

     The holders of a majority in aggregate principal amount of the Securities
of any series at the time Outstanding, determined in accordance with Section
8.04, 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 such series; provided,
                                                               --------
however, that such direction shall not be in conflict with any rule of law or
-------
with this Indenture or be unduly prejudicial to the rights of holders of
Securities of any other series at the time Outstanding determined in accordance
with Section 8.04.  Subject to the provisions of Section 7.01, the Trustee shall
have the right to decline to follow any such direction if the Trustee in good
faith shall, by a Responsible Officer or Responsible Officers of the Trustee,
determine that the proceeding so directed would involve the Trustee in personal
liability. The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding affected thereby, determined in
accordance with Section 8.04, may on behalf of the holders of all of the
Securities of such series waive any past default in the performance of any of
the covenants contained herein or established pursuant to Section 2.01 with
respect to such series and its consequences, except a default in the payment of
the principal of, or premium, if any, or interest on, any of the Securities of
that series as and when the same shall become due by the terms of such
Securities otherwise than by acceleration (unless such default has been cured
and a sum sufficient to pay all matured installments of interest and principal
and any premium has been deposited with the Trustee (in accordance with Section
6.01(c)).  Upon any such waiver, the default covered thereby shall be deemed to
be cured for all purposes of this Indenture and the Company, the Trustee and the
holders of the Securities of such series shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other default or impair any right consequent thereon.

Section 6.07  Undertaking to Pay Costs.
              ------------------------

     All parties to this Indenture agree, and each holder of any Securities by
such holder's acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken or omitted by it as Trustee, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, against any party litigant in such suit, having due regard to the
merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section 6.07 shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding more than 10% in aggregate principal amount of the
Outstanding Securities of any series, or to any suit instituted by any
Securityholder for the enforcement of the payment of the principal of (or
premium, if any) or interest on any Security of such series, on or after the
respective due dates expressed in such Security or established pursuant to this
Indenture.

Section 6.08  Waiver Of Usury, Stay Or Extension Laws
              ---------------------------------------

     The Company covenants (to the extent that it may lawfully do so) that it
will not at any time insist upon, or plead, or in any manner whatsoever claim or
take the benefit or advantage of,

                                      25
<PAGE>

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 the Company (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law and covenants that it will not,
by resort to any such law, hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.

                                 ARTICLE VII.

                            CONCERNING THE TRUSTEE

Section 7.01  Certain Duties and Responsibilities of Trustee.
              ----------------------------------------------

     (a)  In case an Event of Default with respect to the Securities of a series
has occurred (that has not been cured or waived), the Trustee shall exercise
with respect to Securities of that series such of the rights and powers vested
in it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

     (b)  No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that:

          (1) prior to the occurrence of an Event of Default with respect to the
Securities of a series and after the curing or waiving of all such Events of
Default with respect to that series that may have occurred:

               (i)  the duties and obligations of the Trustee shall with respect
          to the Securities of such series be determined solely by the express
          provisions of this Indenture, and the Trustee shall not be liable with
          respect to the Securities of such series except for the performance of
          such duties and obligations as are specifically set forth in this
          Indenture, and no implied covenants or obligations shall be read into
          this Indenture against the Trustee; and

               (ii) in the absence of bad faith on the part of the Trustee, the
          Trustee may with respect to the Securities of such series conclusively
          rely, as to the truth of the statements and the correctness of the
          opinions expressed therein, upon any certificates or opinions
          furnished to the Trustee and conforming to the requirements of this
          Indenture; but in the case of any such certificates or opinions that
          by any provision hereof are specifically required to be furnished to
          the Trustee, the Trustee shall be under a duty to examine the same to
          determine whether or not they conform to the requirements of this
          Indenture (but need not confirm or investigate the accuracy of
          mathematical computations or other facts stated therein);

          (2)  the Trustee shall not be liable for any error of judgment made in
good faith by a Responsible Officer or Responsible Officers of the Trustee,
unless it shall be proved that the Trustee was negligent in ascertaining the
pertinent facts;

                                      26
<PAGE>

          (3)  the Trustee shall not be liable with respect to any action taken
or omitted to be taken by it in good faith in accordance with the direction of
the holders of not less than a majority in principal amount of the Securities of
any series at the time Outstanding relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee under this Indenture with respect
to the Securities of that series; and

          (4)  none of the provisions contained in this Indenture shall require
the Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the performance of any of its duties or in the exercise
of any of its rights or powers, if there is reasonable ground for believing that
the repayment of such funds or liability is not reasonably assured to it under
the terms of this Indenture or adequate indemnity against such risk is not
reasonably assured to it.

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

     Except as otherwise provided in Section 7.01:

     (a)  the Trustee may conclusively rely and shall be fully protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
security or other paper or document (whether in its original or facsimile form)
believed by it to be genuine and to have been signed or presented by the proper
party or parties;

     (b)  any request, direction, order or demand of the Company mentioned
herein shall be sufficiently evidenced by a Board Resolution or an instrument
signed in the name of the Company by an Officer (unless other evidence in
respect thereof is specifically prescribed herein);

     (c)  the Trustee may consult with counsel of its own selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken or suffered or
omitted hereunder in good faith and in reliance thereon;

     (d)  the Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders, pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee indemnity satisfactory to
it against the costs, expenses and liabilities that may be incurred therein or
thereby;

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

     (f)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security, or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);

                                      27
<PAGE>

provided, however, that if the payment within a reasonable time to the Trustee
--------  -------
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand;

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

     (h)  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 7.03  Trustee not Responsible for Recitals or Issuance or Securities.
              --------------------------------------------------------------

     (a)  The recitals contained herein and in the Securities shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for the
correctness of the same.

     (b)  The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Securities.

     (c)  The Trustee shall not be accountable for the use or application by the
Company of any of the Securities or of the proceeds of such Securities, or for
the use or application of any moneys paid over by the Trustee in accordance with
any provision of this Indenture or established pursuant to Section 2.01, or for
the use or application of any moneys received by any paying agent other than the
Trustee.

Section 7.04  May Hold Securities.
              -------------------

     The Trustee or any paying agent or Security Registrar, in its individual or
any other capacity, may become the owner or pledgee of Securities with the same
rights it would have if it were not Trustee, paying agent or Security Registrar.
However, the Trustee is subject to Sections 7.09 and 7.13.

Section 7.05  Moneys Held in Trust.
              --------------------

     Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but 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 moneys received by it hereunder except such as it
may agree with the Company to pay thereon.

                                      28
<PAGE>

Section 7.06  Compensation and Reimbursement.
              ------------------------------

     (a)  The Company shall pay to the Trustee, and the Trustee shall be
entitled to be paid, such reasonable compensation (which shall not be limited by
any provision of law in regard to the compensation of a trustee of an express
trust), as the Company and the Trustee may from time to time agree in writing,
for all services rendered by it in the execution of the trusts hereby created
and in the exercise and performance of any of the powers and duties hereunder of
the Trustee, and, except as otherwise expressly provided herein, the Company
will pay or reimburse the Trustee upon its request for all reasonable expenses
and disbursements incurred or made by the Trustee in accordance with any of the
provisions of this Indenture (including the reasonable compensation and the
expenses and disbursements of its counsel and of all Persons not regularly in
its employ) except any such expense or disbursement as may arise from its own
negligence or bad faith. The Company shall also fully indemnify the Trustee (and
its officers, agents, directors and employees) for, and shall also hold it
harmless against, any and all loss, liability, claim, damage or expense incurred
without negligence or bad faith on the part of the Trustee and arising out of or
in connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim of liability.

     (b)  The obligations of the Company under this Section 7.06 to compensate
and indemnify the Trustee and to pay or reimburse the Trustee for expenses and
disbursements shall:(i) be secured by a lien prior to that of the Securities
upon all property and funds held or collected by the Trustee as such, except
funds held in trust for the benefit of the holders of particular Securities; and
(ii) survive the termination of this Indenture and resignation or removal of the
Trustee.

Section 7.07  Reliance on Officers' Certificate.
              ---------------------------------

     Except as otherwise provided in Section 7.01, whenever in the
administration of the provisions of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting to take any action hereunder, such matter (unless other
evidence in respect thereof be herein specifically prescribed) may, in the
absence of negligence or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers' Certificate delivered to the
Trustee and such certificate, in the absence of negligence or bad faith on the
part of the Trustee, shall be full warrant to the Trustee for any action taken,
suffered or omitted to be taken by it under the provisions of this Indenture
upon the faith thereof.

Section 7.08  Disqualification; Conflicting Interests.
              ---------------------------------------

     If the Trustee has or shall acquire any "conflicting interest" within the
meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the
Company shall in all respects comply with the provisions of Section 310(b) of
the Trust Indenture Act.

Section 7.09  Corporate Trustee Required; Eligibility.
              ---------------------------------------

     There shall at all times be a Trustee with respect to the Securities issued
hereunder which shall at all times be a corporation organized and doing business
under the laws of the United States of America or any State or Territory thereof
or of the District of Columbia, or a

                                      29
<PAGE>

corporation or other Person permitted to act as trustee by the Commission,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least 50 Million U.S. Dollars ($50,000,000), and
subject to supervision or examination by Federal, State, Territorial, or
District of Columbia authority. If such corporation publishes reports of
condition at least annually, pursuant to law or to the requirements of the
aforesaid supervising or examining authority, then for the purposes of this
Section 7.09, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. The Company may not, nor may any Person
directly or indirectly controlling, controlled by, or under common control with
the Company, serve as Trustee. In case at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 7.09, the Trustee
shall resign immediately in the manner and with the effect specified in Section
7.10.

Section 7.10  Resignation and Removal; Appointment of Successor.
              -------------------------------------------------

     (a)  The Trustee or any successor hereafter appointed may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders of such series, as their
names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such series. If no successor trustee shall have
been so appointed and have accepted appointment within 60 days after the
retiring Trustee resigns, the retiring Trustee, at the expense of the Company,
or the Company may petition any court of competent jurisdiction for the
appointment of a successor trustee with respect to Securities of such series, or
any Securityholder of that series who has been a bona fide holder of a Security
or Securities for at least six months may on behalf of himself and all others
similarly situated, petition any such court for the appointment of a successor
trustee. Such court may thereupon after such notice, if any, as it may deem
proper and prescribe, appoint a successor trustee.

     (b)  In case at any time any one of the following shall occur, the Company
may remove the Trustee with respect to all or any series of Securities and
appoint a successor trustee, or, unless the Trustee's duty to resign is stayed
as provided herein, any Securityholder who has been a bona fide holder of a
Security or Securities for at least six months may, on behalf of that holder and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor trustee.  Such
court may thereupon after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee:

          (1)  the Trustee shall fail to comply with the provisions of Section
7.08 after written request therefor by the Company or by any Securityholder who
has been a bona fide holder of a Security or Securities for at least six months;
or

          (2)  the Trustee shall cease to be eligible in accordance with the
provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder; or

                                      30
<PAGE>

          (3)  the Trustee shall become incapable of acting, or shall be
adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding,
or a receiver of the Trustee or of its property shall be appointed or consented
to, 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.

     (c)  The holders of a majority in aggregate principal amount of the
Securities of any series at the time Outstanding may at any time remove the
Trustee with respect to such series by so notifying the Trustee and the Company
and may appoint a successor Trustee for such series with the consent of the
Company.

     (d)  Any resignation or removal of the Trustee and appointment of a
successor trustee with respect to the Securities of a series pursuant to any of
the provisions of this Section shall become effective upon acceptance of
appointment by the successor trustee as provided in Section 7.11.

     (e)  Any successor trustee appointed pursuant to this Section 7.10 may be
appointed with respect to the Securities of one or more series or all of such
series, and at any time there shall be only one Trustee with respect to the
Securities of any particular series.

Section 7.11  Acceptance of Appointment By Successor.
              --------------------------------------

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

     (b)  In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor trustee relates, (2)
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, that each such

                                      31
<PAGE>

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 that no
Trustee shall be responsible for any act or failure to act on the part of any
other Trustee hereunder; 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, such retiring Trustee shall
with respect to the Securities of that or those series to which the appointment
of such successor trustee relates have no further responsibility for the
exercise of rights and powers or for the performance of the duties and
obligations vested in the Trustee under this Indenture, and each such successor
trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Trustee with respect
to the Securities of that or those series to which the appointment of such
successor trustee relates; but, on request of the Company or any successor
trustee, such retiring Trustee shall duly assign, transfer and deliver to such
successor trustee, to the extent contemplated by such supplemental indenture,
the 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.

     (c)  Upon request of any such successor trustee, the Company may execute
any and all instruments for more fully and certainly vesting in and confirming
to such successor trustee all such rights, powers and trusts referred to in
paragraph (a) or (b) of this Section 7.11, as the case may be.

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

     (e)  Upon acceptance of appointment by a successor trustee as provided in
this Section 7.11, the successor trustee shall cause a notice of its succession
to be transmitted to Securityholders.

Section 7.12  Merger, Conversion, Consolidation or Succession to Business.
              -----------------------------------------------------------

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided that such corporation shall be qualified under the provisions of
Section 7.08 and eligible under the provisions of Section 7.09, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding.  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 7.13  Preferential Collection of Claims Against the Company.
              -----------------------------------------------------

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship described in Section 311(b) of the Trust
Indenture Act.  A Trustee who has

                                      32
<PAGE>

resigned or been removed shall be subject to Section 311(a) of the Trust
Indenture Act to the extent included therein.

                                 ARTICLE VIII.

                        CONCERNING THE SECURITYHOLDERS

Section 8.01  Evidence of Action by Securityholders.
              -------------------------------------

     Whenever in this Indenture it is provided that the holders of a majority or
specified percentage in aggregate principal amount of the Securities of a
particular series may take any action (including the making of any demand or
request, the giving of any 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
majority or specified percentage of that series have joined therein may be
evidenced by any instrument or any number of instruments of similar tenor
executed by such holders of Securities of that series in Person or by agent or
proxy appointed in writing.

     If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so.  If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding Securities of that series have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such
                                         --------  -------
authorization, agreement or consent by such Securityholders on the record date
shall be deemed effective unless it shall become effective pursuant to the
provisions of this Indenture not later than six months after the record date.

Section 8.02  Proof of Execution by Securityholders.
              -------------------------------------

     Subject to the provisions of Section 7.01, proof of the execution of any
instrument by a Securityholder (such proof will not require notarization) or his
agent or proxy and proof of the holding by any Person of any of the Securities
shall be sufficient if made in the following manner:

     (a)  The fact and date of the execution by any such Person of any
instrument may be proved in any reasonable manner acceptable to the Trustee.

     (b)  The ownership of Securities shall be proved by the Security Register
of such Securities or by a certificate of the Security Registrar thereof.

     (c)  The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

                                      33
<PAGE>

Section 8.03  Who May be Deemed Owners.
              ------------------------

     Prior to the due presentment for registration of transfer of any Security,
the Company, the Trustee, any paying agent and any Security Registrar may deem
and treat the Person in whose name such Security shall be registered upon the
books of the Company as the absolute owner of such Security (whether or not such
Security shall be overdue and notwithstanding any notice of ownership or writing
thereon made by anyone other than the Security Registrar) for the purpose of
receiving payment of or on account of the principal of, premium, if any, and
(subject to Section 2.03) interest on such Security and for all other purposes;
and neither the Company nor the Trustee nor any paying agent nor any Security
Registrar shall be affected by any notice to the contrary.

Section 8.04  Certain Securities Owned by Company Disregarded.
              -----------------------------------------------

     In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent of waiver under this Indenture, the Securities of that series that are
owned by the Company or any other obligor on the Securities of that series or by
an Affiliate shall be disregarded and deemed not to be Outstanding for the
purpose of any such determination, except that for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, consent
or waiver, only Securities of such series that a Responsible Officer of the
Trustee knows are so owned shall be so disregarded.  The Securities so owned
that have been pledged in good faith may be regarded as Outstanding for the
purposes of this Section, if the pledgee shall establish to the satisfaction of
the Trustee the pledgee's right so to act with respect to such Securities and
that the pledgee is not an Affiliate.  In case of a dispute as to such right,
any decision by the Trustee taken upon the advice of counsel shall be full
protection to the Trustee.

Section 8.05  Actions Binding on Future Securityholders.
              -----------------------------------------

     At any time prior to (but not after) the evidencing to the Trustee, as
provided in Section 8.01, of the taking of any action by the holders of the
majority or percentage in aggregate principal amount of the Securities of a
particular series specified in this Indenture in connection with such action,
any holder of a Security of that series that is shown by the evidence to be
included in the Securities the holders of which have consented to such action
may, by filing written notice with the Trustee, and upon proof of holding as
provided in Section 8.02, revoke such action so far as concerns such Security.
Except as aforesaid any such action taken by the holder of any Security shall be
conclusive and binding upon such holder and upon all future holders and owners
of such Security, and of any Security issued in exchange therefor, on
registration of transfer thereof or in place thereof, irrespective of whether or
not any notation in regard thereto is made upon such Security.  Any action taken
by the holders of the majority or percentage in aggregate principal amount of
the Securities of a particular series specified in this Indenture in connection
with such action shall be conclusively binding upon the Company, the Trustee and
the holders of all the Securities of that series.

                                      34
<PAGE>

                                  ARTICLE IX.

                            SUPPLEMENTAL INDENTURES

Section 9.01  Supplemental Indentures Without the Consent of Securityholders.
              ---------------------------------------------------------------

     In addition to any supplemental indenture otherwise authorized by this
Indenture, the Company and the Trustee may from time to time and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect), without the
consent of the Securityholders, for one or more of the following purposes:

     (a)  to cure any ambiguity, defect, or inconsistency herein or in the
Securities of any series, including making such changes as are required for this
Indenture to comply with the Trust Indenture Act;

     (b)  to comply with Article Ten;

     (c)  to provide for uncertificated Securities in addition to or in place of
certificated Securities;

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

     (e)  to add to, delete from, or revise the conditions, limitations, and
restrictions on the authorized amount, terms, or purposes of issue,
authentication, and delivery of Securities, as herein set forth;

     (f)  to make any change that does not adversely affect the rights of any
Securityholder in any material respect; or

     (g)  to provide for the issuance of and establish the form and terms and
conditions of the Securities of any series as provided in Section 2.01, to
establish the form of any certifications required to be furnished pursuant to
the terms of this Indenture or any series of Securities, or to add to the rights
of the holders of any series of Securities.

     Upon the request of the Company, accompanied by Board Resolutions
authorizing the execution of any such supplemental indenture, and upon receipt
by the Trustee of the documents described in Section 9.05 hereof, the Trustee
shall join with the Company in the execution of any such supplemental indenture,
and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee shall not be obligated to enter into any such
supplemental indenture that affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

                                      35
<PAGE>

     Any supplemental indenture authorized by the provisions of this Section
9.01 may be executed by the Company and the Trustee without the consent of the
holders of any of the Securities at the time Outstanding, notwithstanding any of
the provisions of Section 9.02.

Section 9.02  Supplemental Indentures with Consent of Securityholders.
              -------------------------------------------------------

     With the consent (evidenced as provided in Section 8.01) of the holders of
not less than a majority in aggregate principal amount of the Securities of each
series affected by such supplemental indenture or indentures at the time
Outstanding, the Company, when authorized by  Board Resolutions, and the Trustee
may from time to time and at any time enter into an indenture or indentures
supplemental hereto (which shall conform to the provisions of the Trust
Indenture Act as then in effect) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of any supplemental indenture or of modifying in any manner not covered by
Section 9.01 the rights of the holders of the Securities of such series under
this Indenture; provided, however, that no such supplemental indenture shall,
                --------  -------
without the consent of the holders of each Security then Outstanding and
affected thereby, (i) extend the fixed maturity of any Securities of any series,
reduce the principal amount thereof, reduce the rate or extend the time of
payment of interest thereon, or reduce any premium payable upon the redemption
thereof or (ii) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture.

     It shall not be necessary for the consent of the Securityholders of any
series affected thereby under this Section 9.02 to approve the particular form
of any proposed supplemental indenture, but it shall be sufficient if such
consent shall approve the substance thereof.

Section 9.03  Effect of Supplemental Indentures.
              ---------------------------------

     Upon the execution of any supplemental indenture pursuant to the provisions
of this Article IX or Section 10.01, this Indenture shall, with respect to such
series, be and be deemed to be modified and amended in accordance therewith and
the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities
of the series affected thereby shall thereafter be determined, exercised and
enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and
be deemed to be part of the terms and conditions of this Indenture for any and
all purposes.

Section 9.04  Securities Affected by Supplemental Indentures.
              ----------------------------------------------

     Securities of any series affected by a supplemental indenture and
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, may bear a
notation in form approved by the Company, provided such form meets the
requirements of any exchange upon which such series may be listed, as to any
matter provided for in such supplemental indenture.  If the Securities of the
Company shall so determine, new Securities of that series so modified as to
conform, in the opinion of the Board of Directors of the Company, to any
modification of this Indenture contained in any such supplemental indenture may
be prepared by the Company, authenticated by the Trustee and delivered in
exchange for the Securities of that series then Outstanding.

                                      36
<PAGE>

Section 9.05  Execution of Supplemental Indentures.
              ------------------------------------

     Upon the request of the Company, accompanied by its Board Resolutions
authorizing the execution of any such supplemental indenture, and, if
applicable, upon the filing with the Trustee of evidence of the consent of
Securityholders required to consent thereto as aforesaid, the Trustee shall join
with the Company in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion but shall not be obligated to enter into such supplemental indenture.
The Trustee, subject to the provisions of Section 7.01, may receive an Opinion
of Counsel as conclusive evidence that any supplemental indenture executed
pursuant to this Article IX is authorized or permitted by, and conforms to, the
terms of this Article IX and that it is proper for the Trustee under the
provisions of this Article IX to join in the execution thereof; provided,
                                                                --------
however, that such Opinion of Counsel need not be provided in connection with
-------
the execution of a supplemental indenture that establishes the terms of a series
of Securities pursuant to Section 2.01 hereof.

     Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of this Section 9.05, the
Trustee shall transmit by mail, first class postage prepaid, a notice, setting
forth in general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses
appear upon the  Security Register.  Any failure of the Trustee to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture.

                                  ARTICLE X.

                             SUCCESSOR CORPORATION

Section 10.01  Consolidation, Merger and Sale of Assets.
               ----------------------------------------

     The Company, without the consent of any Securityholder, may consolidate
with, or merge into, or sell, transfer, lease or convey its assets substantially
as an entirety to any domestic corporation, provided that:
                                            --------

          (a)  the Person formed by or surviving any such consolidation or
     merger (if other than the Company), or to which such sale, transfer, lease
     or conveyance shall have been made, is a corporation organized and existing
     under the laws of the United States, any state thereof or the District of
     Columbia;

          (b)  the corporation formed by or surviving any such consolidation or
     merger (if other than the Company), or to which such sale, lease, transfer
     or conveyance shall have been made, assumes by supplemental indenture in a
     form satisfactory to the Trustee all the obligations of the Company under
     the Securities and this Indenture; and

          (c)  immediately before and after giving effect to the 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 occurred and be continuing.

                                      37
<PAGE>

     The Company shall deliver to the Trustee prior to the consummation of the
proposed transaction an Officers' Certificate to the foregoing effect and an
Opinion of Counsel stating that the proposed transaction and such supplemental
indenture comply with this Indenture.

     To the extent that a Board Resolution or supplemental indenture pertaining
to any series provides for different provisions relating to the subject matter
of this Article X, the provisions in such Board Resolution or supplemental
indenture shall govern for purposes of such series.

Section 10.02  Successor Corporation Substituted.
               ---------------------------------

     Upon any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company or any
assignment of its obligations under this Indenture or the Securities of any
series in accordance with Section 10.01, the successor corporation formed by
such consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition or assignment is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor
corporation has been named as the Company herein; provided, however, that the
                                                  --------  -------
predecessor Company in the case of a sale, lease, conveyance or other
disposition or assignment shall not be released from the obligation to pay the
principal of and interest on the Securities of any series.

                                  ARTICLE XI.

                          SATISFACTION AND DISCHARGE

Section 11.01  Satisfaction and Discharge of Indenture.
               ---------------------------------------

     If at any time: (a) the Company shall have delivered to the Trustee for
cancellation all Securities of a series theretofore authenticated (other than
any Securities that shall have been destroyed, lost or stolen and that shall
have been replaced or paid as provided in Section 2.07) and Securities for whose
payment money or Governmental Obligations have theretofore been deposited in
trust or segregated and held in trust by the Company (and thereupon repaid to
the Company or discharged from such trust, as provided in Section 11.05); or (b)
all such Securities of a particular series not theretofore delivered to the
Trustee for cancellation shall have become due and payable, or are by their
terms to become due and payable within one year or are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption, and the Company shall deposit or cause to be
deposited with the Trustee as trust funds the entire amount in moneys or
Governmental Obligations sufficient or a combination thereof, sufficient to pay
at maturity or upon redemption all Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if
any) and interest due or to become due to such date of maturity or date fixed
for redemption, as the case may be, and if the Company shall also pay or cause
to be paid all other sums payable hereunder with respect to such series by the
Company then this Indenture shall thereupon cease to be of further effect with
respect to such series except for the provisions of Sections 2.03, 2.05, 2.07,
4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or
redemption date, as the case may be, and Sections 7.06 and 11.05, that shall
survive to such date and thereafter, and the Trustee, on demand of the Company
and at the cost and expense of the Company shall

                                      38
<PAGE>

execute proper instruments acknowledging satisfaction of and discharging this
Indenture with respect to such series.

Section 11.02  Defeasance and Discharge of Obligations; Covenant Defeasance.
               ------------------------------------------------------------

               (a)  If at any time all such Securities of a particular series
not heretofore delivered to the Trustee for cancellation or that have not become
due and payable as described in Section 11.01 shall have been paid by the
Company by depositing irrevocably with the Trustee as trust funds moneys or an
amount of Governmental Obligations sufficient to pay at maturity or upon
redemption all such Securities of that series not theretofore delivered to the
Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of maturity or date fixed for redemption, as
the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to such series, then after
the date such moneys or Governmental Obligations, as the case may be, are
deposited with the Trustee the obligations of the Company under this Indenture
with respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10 hereof that
shall survive until such Securities shall mature and be paid. Thereafter,
Sections 7.06 and 11.05 shall survive such satisfaction and discharge.

               (b)  In addition, the Company may, at its option and at any time,
by written notice executed by an Officer delivered to the Trustee, elect to have
its obligations under Sections 4.04, 4.05, 5.03 and any covenant contained in
Article X, and any other covenant contained in the Board Resolution or
supplemental indenture relating to such series pursuant to Section 2.01,
discharged with respect to all Outstanding Securities of a series, this
Indenture and any indentures supplemental to this Indenture insofar as such
Securities are concerned (hereinafter, "covenant defeasance"), such discharge to
be effective on the date the conditions set forth in clauses (i) through (vi) of
this Section 11.02(b) are satisfied, and such Securities shall thereafter be
deemed to be not "Outstanding" for the purposes of any direction, waiver,
consent or declaration of Securityholders (and the consequences of any thereof)
in connection with such covenants, but shall continue to be "Outstanding" for
all other purposes under this Indenture. For this purpose, such covenant
defeasance means that, with respect to the Outstanding Securities of a series,
the Company may omit to comply with and shall have no liability in respect of
any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of reference in any such covenant to any other provision
herein or in any other document and such omission to comply shall not constitute
an Event of Default under Section 6.01(a)(3) or otherwise, but except as
specified in this Section 11.02(b), the remainder of the Company's obligations
under the Securities of such series, this Indenture, and any indentures
supplemental to this Indenture with respect to such series shall be unaffected
thereby.

               The following shall be the conditions to the application of
Section 11.02(b) to the Outstanding Securities of the applicable series:

                    (i)  the Company irrevocably deposits in trust with the
               Trustee or, at the option of the Trustee, with a trustee
               satisfactory to the Trustee and the Company under the terms of an
               irrevocable trust agreement in form and substance satisfactory to
               the Trustee, money or Governmental Obligations sufficient to pay

                                      39
<PAGE>

               principal and interest on the Outstanding Securities of such
               series to maturity or redemption, as the case may be, and to pay
               all other sums payable by it hereunder, provided that (A) the
                                                       --------
               trustee of the irrevocable trust shall have been irrevocably
               instructed to pay such money or the proceeds of such Governmental
               Obligations to the Trustee and (B) the Trustee shall have been
               irrevocably instructed to apply such money or the proceeds of
               such Governmental Obligations to the payment of said principal
               and interest with respect to the Securities of such series;

                    (ii)   the Company delivers to the Trustee an Officers'
               Certificate stating that all conditions precedent specified
               herein relating to defeasance or covenant defeasance, as the case
               may be, have been complied with, and an Opinion of Counsel to the
               same effect;

                    (iii)  no Event of Default under clauses (1), (2), (4) or
               (5) of Section 6.01(a) shall have occurred and be continuing, and
               no event which with notice or lapse of time or both would become
               such an Event of Default shall have occurred and be continuing,
               on the date of such deposit;

                    (iv)   the Company shall have delivered to the Trustee an
               Opinion of Counsel or a ruling received from the Internal Revenue
               Service to the effect that the holders of the Securities of such
               series will not recognize income, gain or loss for Federal income
               tax purposes as a result of the Company's exercise of either
               option under this Section 11.02 and will be subject to Federal
               income tax in the same amount and in the same manner and at the
               same times as would have been the case if such election had not
               been exercised;

                    (v)    such covenant defeasance shall not cause the Trustee
               to have a conflicting interest for purposes of the Trust
               Indenture Act with respect to any Securities; and

                    (vi)   notwithstanding any other provisions of this Section
               11.02, such covenant defeasance shall be effected in compliance
               with any additional or substitute terms, conditions or
               limitations which may be imposed on the Company pursuant to
               Section 2.01.

     After such irrevocable deposit made pursuant to this Section 11.02(b) and
satisfaction of the other conditions set forth herein, the Trustee upon request
shall acknowledge in writing the discharge of the Company's obligations pursuant
to this Section 11.02(b).

Section 11.03  Deposited Moneys to be Held in Trust.
               ------------------------------------

     All moneys or Governmental Obligations deposited with the Trustee pursuant
to Sections 11.01 or 11.02 shall be held in trust and shall be available for
payment as due, either directly or through any paying agent (including the
Company acting as its own paying agent), to the holders of the particular series
of Securities for the payment or redemption of which such moneys or Governmental
Obligations have been deposited with the Trustee.

                                      40
<PAGE>

Section 11.04  Payment of Moneys Held by Paying Agents.
               ---------------------------------------

     In connection with the provisions of Section 11.01 or 11.02, all moneys or
Governmental Obligations then held by any paying agent under the provisions of
this Indenture shall, upon demand of the Company, be paid to the Trustee and
thereupon such paying agent shall be released from all further liability with
respect to such moneys or Governmental Obligations.

Section 11.05  Repayment to Company.
               --------------------

     Any moneys or Governmental Obligations deposited with any paying agent or
the Trustee, or then held by the Company, in trust for payment of principal of
or premium or interest on the Securities of a particular series that are not
applied but remain unclaimed by the holders of such Securities for at least two
years after the date upon which the principal of (and premium, if any) or
interest on such Securities shall have respectively become due and payable,
shall be repaid to the Company on the last Business Day of each fiscal year of
the Company, or (if then held by the Company) shall be discharged from such
trust; and thereafter, the paying agent and the Trustee shall be released from
all further liability with respect to such moneys or Governmental Obligations,
and the holder of any of the Securities entitled to receive such payment shall
thereafter, as an unsecured general creditor, look only to the Company for the
payment thereof.  Anything in this Article XI to the contrary notwithstanding,
subject to Section 7.06, the Trustee shall deliver or pay to the Company from
time to time upon request by the Company any money or Governmental Obligations
(or other property and any proceeds therefrom) held by it as provided in
Sections 11.01 or 11.02 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 a defeasance or covenant defeasance, as
the case may be, in accordance with this Article XI.  On the last business day
of each fiscal year of the Company, or (if then held by the Company) shall be
discharged from such trust, and thereafter.

Section 11.06  Reinstatement.
               -------------

     If the Trustee or paying agent is unable to apply any money or Governmental
Obligations in accordance with Section 11.01 or 11.02 by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, the
Company's obligations under this Indenture, any indentures supplemental to the
Indenture with respect to the applicable series of Securities and the Securities
of such series shall be revived and reinstated as though no deposit had occurred
pursuant to Section 11.01 or 11.02, as the case may be, until such time as the
Trustee or paying agent is permitted to apply all such money or Governmental
Obligations in accordance with Section 11.01 or 11.02, as the case may be;
provided, however, that if the Company has made any payment of interest on or
--------  -------
principal of any Securities of such series following the reinstatement of its
obligations as aforesaid, the Company shall be subrogated to the rights of the
holders of such Securities of such series to receive such payment from the money
or Governmental Obligations held by the Trustee or paying agent.

                                      41
<PAGE>

                                 ARTICLE XII.

        IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 12.01  No Recourse.
               -----------

     No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the
incorporators, stockholders, officers or directors as such, of the Company or of
any predecessor or successor corporation, or any of them, because of the
creation of  the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom; and that any and all such personal
liability of every name and nature, either at common law or in equity or by
constitution or statute, of, and any and all such rights and claims against,
every such incorporator, stockholder, officer or director as such, because of
the creation of the indebtedness hereby authorized, or under or by reason of the
obligations, covenants or agreements contained in this Indenture or in any of
the Securities or implied therefrom, are hereby expressly waived and released as
a condition of, and as a consideration for, the execution of this Indenture and
the issuance of such Securities.

                                 ARTICLE XIII.

                           MISCELLANEOUS PROVISIONS

Section 13.01  Effect on Successors and Assigns.
               --------------------------------

     All the agreements of the Company in this Indenture or the Securities shall
bind its successor whether so expressed or not.  All agreements of the Trustee
in this Indenture shall bind its successor whether so expressed or not.

Section 13.02  Actions by Successor.
               --------------------

     Any act or proceeding by any provision of this Indenture authorized or
required to be done or performed by any board, committee or officer of the
Company shall and may be done and performed with like force and effect by the
corresponding board, committee or officer of any corporation that shall at the
time be the lawful sole successor of the Company.

Section 13.03  Notices.
               -------

     Any notice or communication by the Company or the Trustee to the other is
duly given if in writing and delivered in Person or mailed by first-class mail
(registered or certified, return

                                      42
<PAGE>

receipt requested), telex, telecopier or overnight air courier guaranteeing next
day delivery, to the other's address:

          If to the Company:  Computer Sciences Corporation
                              2100 East Grand Avenue
                              El Segundo, California  90245
                              Attention:  Hayward D. Fisk
                              Telephone No:  (310) 615-1770
                              Fax No.  (310) 322-9767

          With a copy to:     Gibson, Dunn & Crutcher LLP
                              333 South Grand Avenue
                              Los Angeles, CA  90071-3197
                              Attention:  Brian D. Kilb
                              Telephone No:  (213) 229-7765
                              Fax No:  (213) 229-7520

          If to the Trustee:

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

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

     Any notice or communication to a Securityholder shall be mailed by first-
class mail, certified or registered, return receipt requested, to his address
shown on the Security Register.  Failure to mail a notice or communication to a
Securityholder or any defect in it shall not affect its sufficiency with respect
to other Securityholders.

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

Section 13.04  Governing Law.
               -------------

     This Indenture and each Security shall be deemed to be a contract made
under the internal laws of the State of New York, and for all purposes shall be
construed in accordance with the laws of said State.  This Indenture is subject
to the provisions of the Trust Indenture Act

                                      43
<PAGE>

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

Section 13.05  Treatment of Securities as Debt.
               -------------------------------

     It is intended that the Securities will be treated as indebtedness and not
as equity for federal income tax purposes.  The provisions of this Indenture
shall be interpreted to further this intention.

Section 13.06  Compliance Certificates and Opinions.
               ------------------------------------

     (a)  Upon any application or demand by the Company to the Trustee to take
any action under any of the provisions of this Indenture, the Company shall
furnish to the Trustee an Officers' Certificate stating that, in the opinion of
the signers, all conditions precedent provided for in this Indenture relating to
the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent have been
complied with, except that in the case of any such application or demand as to
which the furnishing of such documents is specifically required by any provision
of this Indenture relating to such particular application or demand, no
additional certificate or opinion need be furnished.

     (b)  Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
in this Indenture shall include (1) a statement that the Person making such
certificate or opinion has read such covenant or condition; (2) a brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based; (3) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and (4) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

Section 13.07  Payments on Business Days.
               -------------------------

     Except as provided pursuant to Section 2.01 pursuant to a Board Resolution,
and as set forth in an Officers' Certificate or established in one or more
indentures supplemental to this Indenture, in any case where the date of
maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal
(and premium, if any) may be made on the next succeeding Business Day with the
same force and effect as if made on the nominal date of maturity or redemption,
and no interest shall accrue for the period after such nominal date.

Section 13.08  Conflict with Trust Indenture Act.
               ---------------------------------

     If and to the extent that any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the
Trust Indenture Act, such imposed duties shall control.

                                      44
<PAGE>

Section 13.09  Counterparts.
               ------------

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

Section 13.10  Separability.
               ------------

     In case any one or more of the provisions contained in this Indenture or in
the Securities of any series shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Indenture or of such Securities,
but this Indenture and such Securities shall be construed as if such invalid or
illegal or unenforceable provision had never been contained herein or therein.

Section 13.11  No Adverse Interpretation of Other Agreements.
               ---------------------------------------------

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

Section 13.12  Table of Contents, Headings, Etc.
               --------------------------------

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

                                      45
<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.

                              COMPANY:

                              COMPUTER SCIENCES CORPORATION

                              By:______________________________
                                 Name:
                                 Title:

                              TRUSTEE:

                              _________________________________
                              as Trustee

                              By:______________________________
                                 Name:
                                 Title:

                                      46

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