Document:

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                           LOAN CANCELLATION AGREEMENT

         This Loan Cancellation Agreement (this "Agreement") is made and entered
into as of May 28, 2003 by and between Valesc Holdings Inc., a Delaware
corporation (the "Company"), and Edward Kraus, residing at 2605 Woods Lane,
Garland, TX 75044 (the "Investor").

         WHEREAS, the Company and the Investor entered into a Debenture Purchase
Agreement dated as of November 13, 2002 (the "Loan Agreement") pursuant to which
the Investor loaned the Company $50,000, which as of the date hereof, with
interest, equals $52,684.93;

         WHEREAS, the Company desires to repay $15,000 owed to the Investor
under the Loan Agreement, and the Investor desires to use the remaining balance
of the loan, or $37,684.93, to purchase the Company's restricted Common Stock,
par value $.0001 per share (the "Common Stock") at a price of $.70 per share,
which was the bid price for the Common Stock on the OTC Bulletin Board as of the
date hereof;

         NOW, THEREFORE, the parties hereby agree as follows:

         1. Cancellation of Loan and Purchase of Stock. At the Closing (as
defined below), the Investor acknowledges receipt of $15,000 from the Company
and the Company agrees to issue to the Investor, and the Investor agrees to
purchase from the Company, 53,836 shares of Common Stock for $37,684.93, payable
by cancellation of all principal and interest remaining outstanding under the
Loan Agreement.

         2. Closing. The cancellation of the Loan Agreement and the purchase and
sale of the Common Stock will take place at the offices of Hecht & Associates,
P.C., 60 East 42nd Street, Suite 5101, New York, New York 10165-5101, at 10:00
a.m. on the date first set forth above, or at such other time and place as the
Company and the Investor mutually agree (which time and place are referred to in
this Agreement as the "Closing"). At the Closing, the Company will issue and
deliver to the Investor the Common Stock set forth above and a check in the
amount of $15,000, and the Investor will deliver to the Company (a) the
debenture executed in connection with the Loan Agreement marked "cancelled", (b)
an executed copy of the Company's Subscription Agreement, and (c) an investment
letter in the form attached to the Subscription Agreement.

         3. Governing Law; Arbitration. This Agreement and the enforcement
thereof shall be governed by and construed under the internal laws of the State
of New York. If a dispute (a "Dispute") shall arise between the parties in
connection with, relating to or arising out of this Agreement, the parties shall
attempt to settle such Dispute in the first instance by mutual discussions. If
such Dispute has not been resolved within 30 days by mutual discussions, such
Dispute shall be finally settled by arbitration in New York, New York in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association. The arbitrator(s) ("Tribunal") shall have the right, but not the
obligation, to allocate the filing fees, hearing costs and/or reimbursement of
legal fees to the prevailing party. Absent such a determination as to legal
fees, each party shall be responsible for its own legal fees. The award rendered
in any

<PAGE>

arbitration commenced hereunder shall be final and conclusive and judgment
thereon may be entered in any court having jurisdiction for its enforcement.
Neither party shall (i) appeal to any court from the decision of the Tribunal or
(ii) have any right to commence or maintain any suit or legal proceeding
concerning a Dispute until such Dispute has been determined in accordance with
the arbitration procedure provided for herein, and then only for enforcement of
the award rendered in such arbitt.

         4.       Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same agreement.

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

                                                VALESC HOLDINGS INC.

                                                By:____________________________
                                                Name:
                                                Title:

                                                -------------------------------
                                                Edward Kraus

                                      2<PAGE>

                                                                     EXHIBIT 4.1

================================================================================

                           UNITED PARCEL SERVICE, INC.

                                       AND

                                 CITIBANK, N.A.

                                  (as Trustee)

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

                                    INDENTURE

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

                          Dated as of August 26, 2003

================================================================================

<PAGE>

                                TABLE OF CONTENTS

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<S>                                                                                               <C>
                                                  ARTICLE I

                             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.01.            Definitions .........................................................     1
Section 1.02.            Compliance Certificates and Opinions ................................     7
Section 1.03.            Form of Documents Delivered to Trustee ..............................     7
Section 1.04.            Acts of Holders; Record Dates .......................................     7
Section 1.05.            Notices, Etc., to Trustee and Company ...............................     9
Section 1.06.            Notice to Holders; Waiver ...........................................    10
Section 1.07.            Conflict with Trust Indenture Act ...................................    10
Section 1.08.            Effect of Headings and Table of Contents ............................    10
Section 1.09.            Successors and Assigns ..............................................    10
Section 1.10.            Separability Clause .................................................    10
Section 1.11.            Benefits of Indenture ...............................................    10
Section 1.12.            Governing Law .......................................................    11
Section 1.13.            Legal Holidays ......................................................    11
Section 1.14.            Immunity of Incorporators, Stockholders, Officers and Directors .....    11

                                                  ARTICLE II

                                               SECURITY FORMS

Section 2.01.            Forms Generally .....................................................    11
Section 2.02.            Form of Face of Security ............................................    12
Section 2.03.            Form of Reverse of Security .........................................    14
Section 2.04.            Form of Legend for Global Securities ................................    17
Section 2.05.            Form of Trustee's Certificate of Authentication .....................    18

                                                 ARTICLE III

                                               THE SECURITIES

Section 3.01.            Amount Unlimited; Issuable in Series ................................    18
Section 3.02.            Denominations .......................................................    21
Section 3.03.            Execution, Authentication, Delivery and Dating ......................    21
Section 3.04.            Temporary Securities ................................................    22
Section 3.05.            Registration, Transfer and Exchange .................................    22
Section 3.06.            Mutilated, Destroyed, Lost and Stolen Securities ....................    24
Section 3.07.            Payment of Interest; Interest Rights Preserved ......................    25
Section 3.08.            Persons Deemed Owners ...............................................    26
Section 3.09.            Cancellation ........................................................    26
Section 3.10.            Computation of Interest .............................................    26
Section 3.11.            CUSIP Numbers .......................................................    26
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<S>                                                                                                <C>
                                                  ARTICLE IV

                                          SATISFACTION AND DISCHARGE

Section 4.01.            Satisfaction and Discharge of Indenture ............................      27
Section 4.02.            Application of Trust Money .........................................      28

                                                  ARTICLE V

                                                   REMEDIES

Section 5.01.            Event of Default ...................................................      28
Section 5.02.            Acceleration of Maturity; Rescission and Annulment .................      29
Section 5.03.            Collection of Indebtedness and Suits for Enforcement by Trustee ....      30
Section 5.04.            Trustee May File Proofs of Claim ...................................      31
Section 5.05.            Trustee May Enforce Claims Without Possession of Securities ........      31
Section 5.06.            Application of Money Collected .....................................      31
Section 5.07.            Limitation on Suits ................................................      31
Section 5.08.            Unconditional Right of Holder To Receive Principal, Premium and
                         Interest ...........................................................      32
Section 5.09.            Restoration of Rights and Remedies .................................      32
Section 5.10.            Rights and Remedies Cumulative .....................................      32
Section 5.11.            Delay or Omission Not Waiver .......................................      33
Section 5.12.            Control by Holders .................................................      33
Section 5.13.            Waiver of Past Defaults ............................................      33
Section 5.14.            Waiver of Usury, Stay or Extension Laws ............................      33
Section 5.15.            Undertaking for Costs ..............................................      34

                                          ARTICLE VI THE TRUSTEE

Section 6.01.            Certain Duties and Responsibilities ................................      34
Section 6.02.            Notice of Defaults .................................................      34
Section 6.03.            Certain Rights of Trustee ..........................................      34
Section 6.04.            Not Responsible for Recitals or Issuance of Securities .............      36
Section 6.05.            May Hold Securities ................................................      36
Section 6.06.            Money Held in Trust ................................................      36
Section 6.07.            Compensation and Reimbursement .....................................      36
Section 6.08.            Conflicting Interests ..............................................      37
Section 6.09.            Corporate Trustee Required; Eligibility ............................      37
Section 6.10.            Resignation and Removal; Appointment of Successor ..................      37
Section 6.11.            Acceptance of Appointment by Successor .............................      39
Section 6.12.            Merger, Conversion, Consolidation or Succession to Business ........      40
Section 6.13.            Preferential Collection of Claims Against Company ..................      40
Section 6.14.            Appointment of Authenticating Agent ................................      40
</TABLE>

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<TABLE>
<S>                                                                                                <C>
                                                 ARTICLE VII

                               HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.01.            Company To Furnish Trustee Names and Addresses of Holders ..........      42
Section 7.02.            Preservation of Information; Communications to Holders .............      42
Section 7.03.            Reports by Trustee .................................................      42
Section 7.04.            Reports by Company .................................................      42

                                                 ARTICLE VIII

                            CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.01.            Company May Consolidate, Etc. Only on Certain Terms ................      43
Section 8.02.            Successor Substituted ..............................................      43

                                                  ARTICLE IX

                                           SUPPLEMENTAL INDENTURES

Section 9.01.            Supplemental Indentures without Consent of Holders .................      44
Section 9.02.            Supplemental Indentures with Consent of Holders ....................      45
Section 9.03.            Execution of Supplemental Indentures ...............................      46
Section 9.04.            Effect of Supplemental Indentures ..................................      46
Section 9.05.            Conforming with Trust Indenture Act ................................      46
Section 9.06.            Reference in Securities to Supplemental Indentures .................      46

                                                  ARTICLE X

                                                  COVENANTS

Section 10.01.           Delivery or Payment of Maturity Consideration and Interest .........      46
Section 10.02.           Maintenance of Office or Agency ....................................      46
Section 10.03.           Money or Other Consideration for Securities Payments To Be
                         Held in Trust ......................................................      47
Section 10.04.           Statement by Officers as to Default ................................      48
Section 10.05.           Existence ..........................................................      48
Section 10.06.           Calculation of Original Issue Discount .............................      48
Section 10.07.           Waiver of Certain Covenants ........................................      48

                                                  ARTICLE XI

                                           REDEMPTION OF SECURITIES

Section 11.01.           Applicability of Article ...........................................      49
Section 11.02.           Election to Redeem; Notice to Trustee ..............................      49
Section 11.03.           Selection by Trustee of Securities To Be Redeemed ..................      49
Section 11.04.           Notice of Redemption ...............................................      50
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<S>                                                                                                 <C>
Section 11.05.           Deposit of Redemption Price ........................................       51
Section 11.06.           Securities Payable on Redemption Date ..............................       51
Section 11.07.           Securities Redeemed in Part ........................................       51

                                                 ARTICLE XII

                                                SINKING FUNDS

Section 12.01.           Applicability of Article ...........................................       51
Section 12.02.           Satisfaction of Sinking Fund Payments with Securities ..............       52
Section 12.03.           Redemption of Securities for Sinking Fund ..........................       52

                                                 ARTICLE XIII

                                       DEFEASANCE AND COVENANT DEFEASANCE

Section 13.01.           Company's Option To Effect Defeasance or Covenant Defeasance........       52
Section 13.02.           Defeasance and Discharge ...........................................       52
Section 13.03.           Covenant Defeasance ................................................       53
Section 13.04.           Conditions To Defeasance or Covenant Defeasance ....................       53
Section 13.05.           Deposited Money and U.S. Government Obligations To Be Held in
                         Trust; Miscellaneous Provisions.....................................       55
Section 13.06.           Reinstatement ......................................................       55

                                                 ARTICLE XIV

                                      REPAYMENT AT THE OPTION OF HOLDERS

Section 14.01.           Applicability of Article ...........................................       56

                                                 ARTICLE XV

                                       SECURITIES IN FOREIGN CURRENCIES

Section 15.01.           Applicability of Article ...........................................       56

                                                 ARTICLE XVI

                                      MEETINGS OF HOLDERS OF SECURITIES

Section 16.01.           Purposes for Which Meetings May Be Called ..........................       56
Section 16.02.           Call, Notice and Place of Meetings .................................       57
Section 16.03.           Persons Entitled to Vote at Meetings ...............................       57
Section 16.04.           Quorum; Action .....................................................       57
Section 16.05.           Determination of Voting Rights; Conduct and Adjournment of Meetings        58
Section 16.06.           Counting Votes and Recording Action of Meetings ....................       59

                                                 ARTICLE XVII

                                          MISCELLANEOUS PROVISIONS

Section 17.01.           Maturity Consideration..............................................       59
</TABLE>

                                       iv

<PAGE>

         INDENTURE, dated as of August 26, 2003, between UNITED PARCEL
SERVICE, INC., a corporation duly organized and existing under the laws of the
State of Delaware (herein called the "COMPANY"), having its principal executive
office at 55 Glenlake Parkway N.E., Atlanta, Georgia 30328 and CITIBANK, N.A., a
national banking association, duly incorporated and existing under the laws of
the United States of America, as Trustee (herein called the "TRUSTEE");

                              W I T N E S S E T H :

         WHEREAS, the Company has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"SECURITIES"), to be issued in one or more series as in this Indenture provided;
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, for and in consideration of the premises and the
purchase of the Securities by the Holders thereof, it is mutually agreed, for
the equal and proportionate benefit of all Holders of the Securities or of any
series thereof, as follows:

                                   ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

         SECTION 1.01. DEFINITIONS. For all purposes of this Indenture, except
as otherwise expressly provided:

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

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

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

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

         (5)      the words "HEREIN", "HEREOF" 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.

         "ACT", when used with respect to any Holder, has the meaning specified
in Section 1.04.

                                        1

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

         "AUTHENTICATING AGENT" means any Person authorized by the Trustee
pursuant to Section 6.14 to act on behalf of the Trustee to authenticate
Securities of one or more series.

         "BOARD OF DIRECTORS" means either the board of directors of the Company
or committee of that board duly authorized to act for it in respect hereof.

         "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, and delivered to the Trustee.

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

         "CAPITAL STOCK", as applied to the stock of any corporation, means the
capital stock of every class whether now or hereafter authorized, regardless of
whether such capital stock shall be limited to a fixed sum or percentage with
respect to the rights of the holders thereof to participate in dividends and in
the distribution of assets upon the voluntary or involuntary liquidation,
dissolution or winding up of such corporation.

         "CERTIFICATE" means a certificate signed by a duly authorized signatory
of the Company and delivered to the Trustee.

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

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

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

         "CORPORATE TRUST OFFICE" means the principal office of the Trustee at
any time where its corporate trust business is administered, which on the date
hereof is located at 111 Wall Street, New York, New York 10043, Attention:
Citibank Agency & Trust, or other such address as the Trustee may designate from
time to time by notice to the Holders and the Company or the

                                        2

<PAGE>

principal corporate trust office of any successor Trustee (or such other address
as a successor Trustee may designate from time to time by notice to the Holders
and the Company).

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

         "COVENANT DEFEASANCE" has the meaning specified in Section 13.03.

         "DEFAULTED INTEREST" has the meaning specified in Section 3.07.

         "DEFEASANCE" has the meaning specified in Section 13.02.

         "DEPOSITARY" means, with respect to Securities of any series issuable
in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act that is designated to act as Depositary
for such Securities as contemplated by Section 3.01.

         "EVENT OF DEFAULT" has the meaning specified in Section 5.01.

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

         "EXPIRATION DATE" has the meaning specified in Section 1.04.

         "GLOBAL SECURITY" means a Security that evidences all or part of the
Securities of any series and bears the legend set forth in Section 2.04 (or such
legend as may be specified as contemplated by Section 3.01 for such Securities).

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

         "INDENTURE" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof,
including, for all purposes of this instrument and any such supplemental
indenture, the provisions of the Trust Indenture Act that are deemed to be a
part of and govern this instrument and any such supplemental indenture,
respectively. The term "INDENTURE" shall also include the terms of particular
series of Securities established as contemplated by Section 3.01.

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

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

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

         "MATURITY", when used with respect to any Security, means the date on
which the Maturity Consideration of such Security or an installment of such
Maturity Consideration

                                        3

<PAGE>

becomes due and payable or deliverable as therein or herein provided, whether at
the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.

         "MATURITY CONSIDERATION" means the securities (whether or not issued
by, or the obligation of, the Company), the amount of cash (including payment of
principal and premium, if any), or a combination of cash, securities and/or
property, in either case payable or deliverable upon payment and discharge of
the Securities of a series when due or upon redemption as established in or
pursuant to, from time to time, a Board Resolution, and set forth in a
Certificate or established in one or more supplemental indentures.

         "NOTICE OF DEFAULT" means a written notice of the kind specified in
Section 5.01(4) or 5.01(5).

         "OPINION OF COUNSEL" means a written opinion of counsel, who may be an
employee of or counsel for the Company, or other counsel reasonably acceptable
to the Trustee.

         "ORIGINAL ISSUE DISCOUNT SECURITY" means any Security which provides
for an amount less than the principal amount thereof to be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Section 5.02.

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

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

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

                  (3)      Securities as to which Defeasance has been effected
         pursuant to Section 13.02; and

                  (4)      Securities which have been paid pursuant to Section
         3.06 or in exchange for or in lieu of which other Securities have been
         authenticated and delivered pursuant to this Indenture, other than any
         such Securities in respect of which there shall have been presented to
         the Trustee proof satisfactory to it that such Securities are held by a
         bona fide purchaser in whose hands such Securities are valid
         obligations of the Company; provided, however, that in determining
         whether the Holders of the requisite principal amount of the
         Outstanding Securities have given, made or taken any request, demand,
         authorization, direction, notice, consent, waiver or other action
         hereunder as of any date, (A) the principal amount of an Original Issue
         Discount Security which shall be deemed to be Outstanding shall be the
         amount of the principal thereof which would be due and payable as of
         such date upon acceleration of the Maturity thereof to such date
         pursuant to Section 5.02, (B) if, as of such date, the principal amount
         payable at the Stated Maturity

                                       4

<PAGE>

         of a Security is not determinable, the principal amount of such
         Security which shall be deemed to be Outstanding shall be the amount as
         specified or determined as contemplated by Section 3.01, (C) the
         principal amount of a Security denominated in one or more foreign
         currencies or currency units which shall be deemed to be Outstanding
         shall be the U.S. dollar equivalent, determined as of such date in the
         manner provided as contemplated by Section 3.01, of the principal
         amount of such Security (or, in the case of a Security described in
         Clause (A) or (B) above, of the amount determined as provided in such
         Clause), and (D) Securities owned by the Company or any Affiliate of
         the Company shall be disregarded and deemed not to be Outstanding,
         except that, in determining whether the Trustee shall be protected in
         relying upon any such request, demand, authorization, direction,
         notice, consent, waiver or other action, only Securities which a
         Responsible Officer of the Trustee actually knows to be so owned shall
         be so disregarded. Securities so owned which have been pledged in good
         faith may be regarded as Outstanding if the pledgee establishes to the
         satisfaction of the Trustee the pledgee's right so to act with respect
         to such Securities and that the pledgee is not the Company or any
         Affiliate of the Company or of such other obligor.

         "PAYING AGENT" means any Person authorized by the Company to pay or
deliver the Maturity Consideration or interest on any Securities on behalf of
the Company.

         "PERSON" means any individual, corporation, partnership, joint venture,
trust, unincorporated organization or government or any agency or political
subdivision thereof or any other entity.

         "PLACE OF PAYMENT", when used with respect to any Security, means the
place or places where the Maturity Consideration and interest on that Security
are payable or deliverable as specified pursuant to this Indenture.

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

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

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

         "REGULAR RECORD DATE" for the interest payable on any Interest Payment
Date on the Securities of any series means the date specified for that purpose
pursuant to this Indenture.

         "RESPONSIBLE OFFICER", when used with respect to the Trustee, means any
Vice President, Assistant Vice President, Senior Trust Officer, trust officer or
any other officer associated with the corporate trust department of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular

                                        5

<PAGE>

corporate trust matter, any other officer to whom such matter is referred
because of such person's knowledge of and familiarity with the particular
subject.

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

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

         "SECURITY REGISTER" and "SECURITY REGISTRAR" have the respective
meanings specified in Section 3.05.

         "SPECIAL RECORD DATE" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 3.07.

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

         "SUBSIDIARY" means any corporation of which, at the time of
determination, the Company and/or one or more Subsidiaries owns or controls
directly or indirectly more than 50% of the shares of voting stock. "WHOLLY
OWNED", when used with reference to a Subsidiary, means a Subsidiary of which
all of the outstanding capital stock is owned by the Company or by one or more
wholly owned Subsidiaries. "VOTING STOCK", when used with reference to a
Subsidiary, means stock of the class or classes having general voting power
under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of such corporation provided that, for the
purposes of this definition, stock which carries only the right to vote
conditionally on the happening of an event shall not be considered voting stock
whether or not such event shall have happened.

         "TRUST INDENTURE ACT" means the Trust Indenture Act of 1939, as
amended, and any applicable statute successor thereto, in each case as amended
from time to time.

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

         "U.S. GOVERNMENT OBLIGATION" has the meaning specified in Section
13.04.

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

                                        6

<PAGE>

         SECTION 1.02. COMPLIANCE CERTIFICATES AND OPINIONS. Upon any
application or request by the Company to the Trustee to take any action under
any provision of this Indenture, the Company shall furnish to the Trustee such
certificates and opinions as may be required under the Trust Indenture Act. Each
such certificate or opinion shall be given in the form of a Certificate, if to
be given by an authorized signatory of the Company, or an Opinion of Counsel, if
to be given by counsel, and shall comply with the requirements of the Trust
Indenture Act and any other requirements set forth in this Indenture.

         Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (except for certificates
provided for in Section 10.04) 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 each such individual, he
or she has made such examination or investigation as is necessary to enable him
or her to express an informed opinion as to whether or not such covenant or
condition has been complied with; and

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

         SECTION 1.03. FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such
matters in one or several documents.

         Any certificate or opinion of an officer of the Company may be based,
insofar as it relates to legal matters, upon an Opinion of Counsel, provided,
that such officer has no reason to believe and does not believe that such
Opinion of Counsel with respect to such matters is erroneous. Any such Opinion
of Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company, stating that the information with respect to such factual matters is in
the possession of the Company, provided that such counsel, after reasonable
inquiry, has no reason to believe and does not believe that the certificate or
opinion or representations with respect to such matters are erroneous.

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

         SECTION 1.04. ACTS OF HOLDERS; RECORD DATES. Any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given, made or taken by Holders may be
embodied in and evidenced by one or more instruments

                                       7

<PAGE>

of substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section.

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

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

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

         The Company may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to
give, make or take any request, demand, authorization, direction, notice,
consent, waiver or other action provided or permitted by this Indenture to be
given, made or taken by Holders of Securities of such series; provided that the
Company may not set a record date for, and the provisions of this paragraph
shall not apply with respect to, the giving or making of any notice,
declaration, request or direction referred to in the next paragraph. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of the relevant series on such record date, and no other Holders,
shall be entitled to take the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
(as hereinafter defined) by Holders of the requisite principal amount of
Outstanding Securities of such series on such record date. Nothing in this
paragraph shall be construed to prevent the Company from setting a new record
date for any action for which a record date has previously been set pursuant to
this paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is set
pursuant to this paragraph, the Company, at its own expense, shall cause notice
of such record date, the proposed action by

                                        8

<PAGE>

Holders and the applicable Expiration Date to be given to the Trustee in writing
and to each Holder of Securities of the relevant series in the manner set forth
in Section 1.06.

         The Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Securities of any series entitled to join
in the giving or making of (i) any Notice of Default, (ii) any declaration of
acceleration referred to in Section 5.02, (iii) any request to institute
proceedings referred to in Section 5.07(2) or (iv) any direction referred to in
Section 5.12, in each case with respect to Securities of such series. If any
record date is set pursuant to this paragraph, the Holders of Outstanding
Securities of such series on such record date, and no other Holders, shall be
entitled to join in such notice, declaration, request or direction, whether or
not such Holders remain Holders after such record date; provided that no such
action shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph shall
be construed to prevent the Trustee from setting a new record date for any
action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and with
no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite Securities of the relevant series on or after any record date
is set pursuant to this paragraph, the Trustee, at the Company's expense, shall
cause notice of such record date, the proposed action by Holders and the
applicable expiration Date to be given to the Company in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section
1.06.

         With respect to any record date set pursuant to this Section, the party
hereto which sets such record date may designate any day as the "EXPIRATION
DATE" and from time to time may change the Expiration Date to any earlier or
later day; provided that no such change shall be effective unless notice of the
proposed new Expiration Date is given to the other party hereto in writing, and
to each Holder of Securities of the relevant series in the manner set forth in
Section 1.06, on or prior to the existing Expiration Date. If an Expiration Date
is not designated with respect to any record date set pursuant to this Section,
the party hereto which set such record date shall be deemed to have initially
designated the 180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date as provided
in this paragraph. Notwithstanding the foregoing, no Expiration Date shall be
later than the 180th day after the applicable record date.

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

         SECTION 1.05. NOTICES, ETC., TO TRUSTEE AND COMPANY. Any request,
demand, authorization, direction, notice, consent, waiver or other Act of
Holders or other document provided or permitted by this Indenture to be made
upon, given or furnished to, or filed with:

                                       9

<PAGE>

         (1)      the Trustee by any Holder or by the Company shall be
sufficient for every purpose hereunder if made, given, furnished or filed, in
writing, to or with the Trustee at its Corporate Trust Office, Attention:
Citibank Agency & Trust, or

         (2)      the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to the Company
addressed to it at the address of its principal executive office specified in
the first paragraph of this instrument or at any other address previously
furnished in writing to the Trustee by the Company.

         SECTION 1.06. NOTICE TO HOLDERS; WAIVER. Where this Indenture provides
for notice to Holders of any event, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed, first-
class postage prepaid, to each Holder affected by such event, at his address as
it appears in the Security Register, not later than the latest date (if any),
and not earlier than the earliest date (if any), prescribed for the giving of
such notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Holders shall be filed with the Trustee, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

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

         SECTION 1.07. CONFLICT WITH TRUST INDENTURE ACT. If any provision
hereof limits, qualifies or conflicts with a provision of the Trust Indenture
Act which is required under such Act to be a part of and govern this Indenture,
the provision of the Trust Indenture Act shall control. If any provision of this
Indenture modifies or excludes any provision of the Trust Indenture Act which
may be so modified or excluded, the provision of this Indenture shall control.

         SECTION 1.08. EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 1.09. SUCCESSORS AND ASSIGNS. All covenants and agreements in
this Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

         SECTION 1.10. SEPARABILITY CLAUSE. In case any provision in this
Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

         SECTION 1.11. BENEFITS OF INDENTURE. Nothing in this Indenture or in
the Securities, express or implied, shall give to any Person, other than the
parties hereto and their successors

                                       10

<PAGE>

hereunder and the Holders, any benefit or any legal or equitable right, remedy
or claim under this Indenture.

         SECTION 1.12. GOVERNING LAW. This Indenture and the Securities shall be
governed by and construed in accordance with the law of the State of New York
without giving effect to principles of conflicts of laws of such state.

         SECTION 1.13. LEGAL HOLIDAYS. In any case where any Interest Payment
Date, Redemption Date, Stated Maturity or Maturity of any Security shall not be
a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of any
Security which specifically states that such provision shall apply in lieu of
this Section)) payment of interest or principal (and premium, if any) need not
be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date, Redemption Date or at the Stated
Maturity or Maturity, and, if such payment is made, no interest shall accrue on
such payment for the period from and after any such Interest Payment Date,
Redemption Date, Stated Maturity or Maturity, as the case may be.

         SECTION 1.14. IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND
DIRECTORS. No recourse shall be had for the payment or delivery of the
principal, Maturity Consideration, premium, if any, or the interest, on any
Securities, or for any claim based thereon, or upon any obligation, covenant or
agreement of this Indenture, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, either directly or indirectly through the Company or any successor
corporation, whether by virtue of any constitution, statute, or rule of law, or
by the enforcement of any assessment of penalty or otherwise; it being expressly
agreed and understood that this Indenture and all the Securities are solely
corporate obligations, and that no personal liability whatever shall attach to,
or is incurred by, any incorporator, stockholder, officer or director, past,
present or future, of the corporation, because of the incurring of the
indebtedness hereby authorized or under or by reason of any of the obligations,
covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom, or for any claim based thereon or in respect thereof, all
such liability and any and all such claims being hereby expressly waived and
released as a condition of, and as part of the consideration for, the execution
of this Indenture and the issuance of the Securities.

                                   ARTICLE II

                                 SECURITY FORMS

         SECTION 2.01. FORMS GENERALLY. The Securities of each series shall be
in substantially the form set forth in this Article, or in such other form or
forms as shall be established by or pursuant to a Board Resolution or one or
more indentures supplemental hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks
of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution thereof.

                                       11

<PAGE>

If the form or forms of Securities of any series is established by action taken
pursuant to a Board Resolution or indenture supplemental hereto, a copy of an
appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 3.03 for the
authentication and delivery of such Securities.

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

         SECTION 2.02. FORM OF FACE OF SECURITY. [Insert any legend required by
the Internal Revenue Code and the regulations thereunder.]

                           UNITED PARCEL SERVICE, INC.

No. ___                                                                   $_____

         United Parcel Service, Inc., a corporation duly organized and existing
under the laws of Delaware (herein called the "COMPANY", which term includes any
successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to _____________________________, or registered
assigns, the principal sum of _____________________________ Dollars on
____________________________ [if the Security is to bear interest prior to
Maturity, insert ___ and to pay interest thereon from ___________________ or
from the most recent date to which interest has been paid or duly provided for,
semiannually on _______________ and ___________________ in each year (each, an
"INTEREST PAYMENT DATE"), commencing __________________________, at the rate of
___% per annum, until the principal hereof is paid or made available for payment
[if applicable, insert ___; provided that any principal and premium, and any
such installment of interest which is overdue shall bear interest at the rate of
__% per annum (to the extent that the payment of such interest shall be legally
enforceable), from the dates such amounts are due until they are paid or made
available for payment, and such interest shall be payable on demand]. The
interest so payable and punctually paid or duly provided for on any Interest
Payment Date will, as provided in such Indenture, be paid to the Person in whose
name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which shall be
the _________________ or ________________ (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date. Any such interest
not so punctually paid or duly provided for shall forthwith cease to be payable
to the Holder on such Regular Record Date and may either be paid to the Person
in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest to be set by the Trustee, notice whereof shall be given
to Holders of Securities of this series not less than 10 days prior to such
Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in said Indenture].

         [If the Security is not to bear interest prior to Maturity, insert ___
The principal of this Security shall not bear interest except in the case of a
default in payment of principal upon

                                       12

<PAGE>

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

         Delivery of the Maturity Consideration and [if applicable, insert ___
payment of interest on] this Security will be made at the office or agency of
the Company maintained for that purpose in _______________, and payment of
interest on this Security (and, if the Company elects to deliver Maturity
Consideration in the form of cash at Maturity, the amount of cash payable at
Maturity) will be made in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private
debts [if applicable insert ___; provided, however, that at the option of the
Company, payment of interest may be made by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register].

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

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

         IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.

Dated: ______________

                                                     UNITED PARCEL SERVICE, INC.

                                                     By: _______________________

                                       13

<PAGE>

         SECTION 2.03. FORM OF REVERSE OF SECURITY. This Security is one of a
duly authorized issue of securities of the Company (herein called the
"Securities"), issued and to be issued in one or more series under an Indenture,
dated as of ______________ (herein called the "Indenture", which term shall have
the meaning assigned to it in such instrument), between the Company and
____________, as Trustee (herein called the "Trustee", which term includes any
successor trustee under the Indenture), and reference is hereby made to the
Indenture for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of
the Securities, and of the terms upon which the Securities are, and are to be,
authenticated and delivered. This Security is one of the series designated on
the face hereof [if applicable, insert ___ limited in aggregate principal amount
to $ _____________].

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

<TABLE>
<CAPTION>
YEAR                  REDEMPTION PRICE        YEAR              REDEMPTION PRICE
----                  ----------------        ----              ----------------
<S>                   <C>                     <C>               <C>
</TABLE>

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

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

                                       14

<PAGE>

<TABLE>
<CAPTION>
             REDEMPTION PRICE FOR REDEMPTION      REDEMPTION PRICE FOR REDEMPTION
                THROUGH OPERATION OF THE              OTHERWISE THAN THROUGH
YEAR                  SINKING FUND                OPERATION OF THE SINKING FUND
----                  ------------                -----------------------------
<S>          <C>                                  <C>
</TABLE>

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

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

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

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

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

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

         [If the Security is an Original Issue Discount Security, insert ___ If
an Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to insert ___ formula for determining the

                                       15

<PAGE>

amount. Upon payment of (i) the amount of principal so declared due and payable
and (ii) interest on any overdue principal, premium and interest (in each case
to the extent that the payment of such interest shall be legally enforceable),
all of the Company's obligations in respect to the payment or delivery of the
Maturity Consideration of and premium and interest, if any, on the Securities of
this series shall terminate.]

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series issued
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of a majority in aggregate principal amount of the Securities at
the time Outstanding of each series to be affected. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

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

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall affect or impair the obligation of the Company, which
is absolute and unconditional, to pay the Maturity Consideration and interest on
this Security at the times, place and rate, and in the manner, herein
prescribed.

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

                                       16

<PAGE>

denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.

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

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

         Prior to due presentment of this Security for registration of transfer,
the Company, the Trustee and any agent of the Company or the Trustee may treat
the Person in whose name this Security is registered as the owner hereof for all
purposes, whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

         The Indenture contains provisions whereby (i) the Company may be
discharged from its obligations with respect to the Securities (subject to
certain exceptions) or (ii) the Company may be released from its obligation
under specified covenants and agreements in the Indenture, in each case if the
Company irrevocably deposits with the Trustee money or U.S. Government
Obligations sufficient to pay and discharge the entire indebtedness on all
Securities of this series, and satisfies certain other conditions, all as more
fully provided in the Indenture.

         This Note shall be governed by and construed in accordance with the
laws of the State of New York without giving effect to principles of conflicts
of laws of such state.

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

         SECTION 2.04. FORM OF LEGEND FOR GLOBAL SECURITIES. Unless otherwise
specified as contemplated by Section 3.01 for the Securities evidenced thereby,
every Global Security authenticated and delivered hereunder shall bear a legend
in substantially the following form:

                  THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
                  INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
                  NAME OF A DEPOSITARY (AS DEFINED IN THE INDENTURE) OR A
                  NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE
                  OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS
                  SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF
                  ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
                  EXCEPT IN THE CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY
                  SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF,
                  TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS

                                       17

<PAGE>

                  SECURITY WILL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING,
                  EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

         SECTION 2.05. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. The
Trustee's certificate of authentication shall be in substantially the following
form:

         This is one of the Securities of the series designated herein referred
to in the Indenture.

                                                     CITIBANK, N.A.,
                                                        As Trustee

                                                     By: _______________________
                                                         Authorized Signatory

                                  ARTICLE III

                                 THE SECURITIES

         SECTION 3.01. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate
principal amount of Securities which may be authenticated and delivered under
this Indenture is unlimited.

         The Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution or one or more indentures
supplemental hereto,

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

         (2)      any limit upon the aggregate principal amount of the
Securities of the series which may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 3.04, 3.05, 3.06, 9.06 or 11.07 and except for any
Securities which, pursuant to Section 3.03, are deemed never to have been
authenticated and delivered hereunder);

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

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

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

                                       18

<PAGE>

         (6)      the place or places where the principal of, premium, if any,
or Maturity Consideration and interest on any Securities of the series shall be
payable;

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

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

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

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

         (11)     if other than the currency of the United States of America,
the currency, currencies or composite currencies in which the principal of or
any premium or interest on any Securities of the series shall be payable and the
manner of determining the equivalent thereof in the currency of the United
States of America for any purpose, including for purposes of the definition of
"OUTSTANDING" in Section 1.01;

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

         (13)     if other than the entire principal amount thereof, the portion
of the principal amount of any Securities of the series which shall be payable
upon declaration of acceleration of the Maturity thereof pursuant to Section
5.02;

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

                                       19

<PAGE>

         (15)     if applicable, that the Securities of the series, in whole or
any specified part shall be defeasible pursuant to Section 13.02 and that
certain covenants of the Company shall be defeasible pursuant to Section 13.03
and, if other than by a Board Resolution, the manner in which any election by
the Company to defease such Securities or covenants shall be evidenced;

         (16)     if applicable, that any Securities of the series shall be
issuable in whole or in part in the form of one or more Global Securities and,
in such case, the respective Depositories for such Global Securities, the form
of any legend or legends which shall be borne by any such Global Security in
addition to or in lieu of that set forth in Section 2.04 and any circumstances
in addition to or in lieu of those set forth in Clause (2) of the last paragraph
of Section 3.05 in which any such Global Security may be exchanged in whole or
in part for Securities registered, and any transfer of such Global Security in
whole or in part may be registered, in the name or names of Persons other than
the Depositary for such Global Security or a nominee thereof;

         (17)     whether, and the terms and conditions relating to when, the
Company may satisfy certain of its obligations with respect to such Securities
with regard to payment upon Maturity, or any redemption or required repurchase
or in connection with any exchange provisions by delivering to the Holders
thereof Maturity Consideration.

         (18)     any addition to or change in the Events of Default which
applies to any Securities of the series and any change in the right of the
Trustee or the requisite Holders of such Securities to declare the principal
amount thereof due and payable pursuant to Section 5.02;

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

         (20)     the terms and conditions pursuant to which the Securities may
be converted into or exchanged for other debt securities of the Company;

         (21)     terms with respect to book-entry procedures; and

         (22)     any other terms of the series, which terms shall not be
inconsistent with the provisions of this Indenture, except as permitted by
Section 9.01(5);

         All Securities of any one series shall be substantially identical
except as to currency of payments due thereunder, denomination and the rate of
interest thereon, or method of determining the rate of interest, if any,
Maturity, and the date from which interest, if any, shall accrue and except as
may otherwise be provided in or pursuant to the Board Resolution and set forth
in a Certificate or in any indenture supplemental hereto. The terms of the
Securities of any series may provide, without limitation, that the Securities
shall be authenticated and delivered by the Trustee upon original issuance from
time to time upon written order of persons designated in the Certificate or
supplemental indenture and that such persons are authorized to determine,
consistent with such Certificate or any applicable supplemental indenture, such
terms and conditions of the Securities of such series. All Securities of any one
series need not be issued at the same time and, unless otherwise so provided, a
series may be reopened for issuances of additional Securities of such series or
to establish additional terms of such series of Securities.

                                       20

<PAGE>

         If any of the terms of the series are established by action taken
pursuant to a Board Resolution or indenture supplemental hereto, a copy of an
appropriate record of such action shall be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee at or prior to
the delivery of the Company Order contemplated by Section 3.03 for the
authentication and delivery of such Securities.

         SECTION 3.02. DENOMINATIONS. The Securities of each series shall be
issuable only in registered form without coupons and only in such denominations
as shall be specified as contemplated by Section 3.01. In the absence of any
such specified denomination with respect to the Securities of any series, the
Securities of such series shall be issuable in denominations of $1,000 and any
integral multiple thereof.

         SECTION 3.03. EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The
Securities shall be executed on behalf of the Company by its Chairman of the
Board, its Vice Chairman of the Board, its President, one of its Vice
Presidents, its Treasurer or one of its Assistant Treasurers, attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile.

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

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. In
authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 6.01) shall be fully protected in
relying upon, an Opinion of Counsel stating,

         (1)      that the form of such Securities has been established by a
supplemental indenture or by or pursuant to a resolution of the Board of
Directors in accordance with Sections 2.01 and 2.02 and in conformity with the
provisions of this Indenture;

         (2)      that the terms of such Securities have been established in
accordance with Section 2.01 and in conformity with the other provisions of this
Indenture;

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

         (4)      that all laws and requirements in respect of the execution and
delivery by the Company of such Securities have been complied with.

                                       21

<PAGE>

         Notwithstanding the provisions of Section 3.01 and of the preceding
paragraph, if all Securities of a series are not to be originally issued at one
time, it shall not be necessary to deliver the record of action, the Company
Order and Opinion of Counsel otherwise required thereby at or prior to the
authentication of each Security of such series, if such documents (with
appropriate modifications) are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

         Each Security shall be dated the date of its authentication.

         No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 3.09, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

         The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith shall determine that such action would expose the Trustee to personal
liability to existing Holders.

         SECTION 3.04. TEMPORARY SECURITIES. Pending the preparation of
definitive Securities of any series, the Company may execute, and upon Company
Order the Trustee shall authenticate and deliver, temporary Securities which are
printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities
in lieu of which they are issued and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Securities may determine, as evidenced by their execution of such Securities.

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

         SECTION 3.05. REGISTRATION, TRANSFER AND EXCHANGE. The Company shall
cause to be kept at the Corporate Trust Office of the Trustee a register (the
register maintained in such office

                                       22

<PAGE>

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

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

         At the option of the Holder, Securities of any series may be exchanged
for other Securities of the same series, of any authorized denominations and of
like tenor and aggregate principal amount, upon surrender of the Securities to
be exchanged at such office or agency.

         Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
which the Holder is entitled to receive.

         All Securities issued upon any registration of transfer, or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
debt and entitled to the same benefits under this Indenture as the Securities
surrendered upon such registration of transfer or exchange.

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

         No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.04, 9.06 or 11.07 not involving any transfer.

         If the Securities of any series (or of any series and specified tenor)
are to be redeemed in part, the Company shall not be required (A) to issue,
register the transfer of or exchange any Securities of that series (or of that
series and specified tenor as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption under Section 11.03
and ending at the close of business on the day of such mailing, or (B) to
register the transfer of or exchange any Security so selected for redemption in
whole or in part, except the unredeemed portion of any Security being redeemed
in part. The provisions of Clauses (1), (2), (3) and (4) below shall apply only
to Global Securities:

         (1)      Each Global Security authenticated under this Indenture shall
be registered in the name of the Depositary designated for such Global Security
or a nominee thereof and delivered

                                       23

<PAGE>

to such Depositary or a nominee thereof or custodian therefor, and each such
Global Security shall constitute a single Security for all purposes of this
Indenture.

         (2)      Notwithstanding any other provision in this Indenture, no
Global Security may be exchanged in whole or in part for Securities registered,
and no transfer of a Global Security in whole or in part may be registered, in
the name of any Person other than the Depositary for such Global Security or a
nominee thereof unless (A) such Depositary (i) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global Security or
(ii) has ceased to be a clearing agency registered under the Exchange Act, (B)
there shall have occurred and be continuing an Event of Default with respect to
such Global Security or (C) there shall exist such circumstances, if any, in
addition to or in lieu of the foregoing as have been specified for this purpose
as contemplated by Section 3.01.

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

         (4)      Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Security or any
portion thereof, whether pursuant to this Section, Section 3.04, 3.06, 9.06 or
11.07 or otherwise, shall be authenticated and delivered in the form of, and
shall be, a Global Security, unless such Security is registered in the name of a
Person other than the Depositary for such Global Security or a nominee thereof.

         SECTION 3.06. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES. If any
mutilated Security is surrendered to the Trustee, the Company shall execute and
the Trustee shall authenticate and deliver in exchange therefor a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

         If there shall be delivered to the Company and the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

         In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

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

         Every new Security of any series issued pursuant to this Section in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the

                                       24

<PAGE>

Company, whether or not the destroyed, lost or stolen Security shall be at any
time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that
series duly issued hereunder.

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

         SECTION 3.07. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Except as
otherwise provided as contemplated by Section 3.01 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or
duly provided for, on any Interest Payment Date shall be paid to the Person in
whose name that Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest.

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

         (1)      The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest, which shall be
fixed in the following manner. The Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each Security of such
series and the date of the proposed payment, and at the same time the Company
shall deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in this Clause
provided. Thereupon the Trustee shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 15 days and not less
than 10 days prior to the date of the proposed payment and not less than 10 days
after the receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the Company of such Special Record Date and, in
the name and at the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given to each Holder of Securities of such series in the manner set forth in
Section 1.06, not less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date
therefor having been so mailed, such Defaulted Interest shall be paid to the
Persons in whose names the Securities of such series (or their respective
Predecessor Securities) are registered at the close of business on such Special
Record Date and shall no longer be payable pursuant to the following Clause (2).

         (2)      The Company may make payment of any Defaulted Interest on the
Securities of any series in any other lawful manner not inconsistent with the
requirements of any securities exchange on which such Securities may be listed,
and upon such notice as may be required by

                                       25

<PAGE>

such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this Clause, such manner of payment shall be deemed
practicable by the Trustee.

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

         SECTION 3.08. PERSONS DEEMED OWNERS. Prior to due presentment of a
Security for registration of transfer, the Company, the Trustee and any agent of
the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of
the Maturity Consideration in respect of, and (subject to Section 3.07) any
interest on such Security and for all other purposes whatsoever, whether or not
such Security is overdue, and neither the Company, the Trustee nor any agent of
the Company or the Trustee shall be affected by notice to the contrary.

         SECTION 3.09. CANCELLATION. All Securities surrendered for payment,
redemption, registration of transfer or exchange or for credit against any
sinking fund payment shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly canceled by it. The Company
may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to any
other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Company has not issued and sold,
and all Securities so delivered shall be promptly canceled by the Trustee. No
Securities shall be authenticated in lieu of or in exchange for any Securities
canceled as provided in this Section except as expressly permitted by this
Indenture. All canceled Securities held by the Trustee shall be disposed of in
accordance with the Trustee's customary practices unless otherwise directed by a
Company Order.

         SECTION 3.10. COMPUTATION OF INTEREST. Except as otherwise provided in
or pursuant to this Indenture or in any Security, interest on the Securities of
each series shall be computed on the basis of a 360-day year of twelve 30-day
months.

         SECTION 3.11. CUSIP NUMBERS. The Company in issuing the Securities may
use "CUSIP" numbers (if then in general use), and, if so, the Trustee shall use
"CUSIP" numbers in notices of redemption as a convenience to Holders; 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.

                                       26

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

         SECTION 4.01. SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Securities herein expressly provided
for) upon the Trustee's receipt of a Company Request to that effect, and the
Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

         (1)      either:

                           (A)      all Securities theretofore authenticated and
         delivered (other than (i) Securities which have been destroyed, lost or
         stolen and which have been replaced or paid as provided in Section 3.06
         and (ii) Securities for whose payment money has theretofore been
         deposited in trust or segregated and held in trust by the Company and
         thereafter repaid to the Company or discharged from such trust, as
         provided in Section 10.03) have been delivered to the Trustee for
         cancellation; or

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

                                    (i)      have become due and payable, or

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

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

         and the Company, in the case of (i), (ii) or (iii) above, has
         irrevocably deposited or caused to be deposited with the Trustee as
         trust funds in trust, money in an amount sufficient to pay and
         discharge the entire indebtedness on such Securities not theretofore
         delivered to the Trustee for cancellation, including the Maturity
         Consideration, and interest thereon, to the date of such deposit (in
         the case of Securities which have become due and payable) or to the
         Maturity thereof, as the case may be;

         (2)      the Company has paid or delivered or caused to be paid or
delivered all other amounts or consideration payable or deliverable hereunder by
the Company; and

         (3)      the Company has delivered to the Trustee a Certificate and an
Opinion of Counsel, which opinion may be given in all circumstances by an
employee of or counsel for the Company, each stating that all conditions
precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.

         Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.07, the obligations of
the Trustee to any Authenticating

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<PAGE>

Agent under Section 6.14 and, if money shall have been deposited with the
Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations
of the Trustee under Section 4.02 and the last paragraph of Section 10.03 shall
survive.

         SECTION 4.02. APPLICATION OF TRUST MONEY. Subject to the provisions of
the last paragraph of Section 10.03, all money and other consideration deposited
with the Trustee pursuant to Section 4.01 shall be held in trust (without
liability for the payment of interest thereon or the investment thereof) and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment or delivery of the Maturity Consideration and
interest, either directly or through any Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, for whose payment or delivery such money or other
consideration has been deposited with the Trustee.

                                    ARTICLE V

                                    REMEDIES

         SECTION 5.01. EVENT OF DEFAULT. "Event of Default", wherever used
herein with respect to Securities of any series, means any one of the following
events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless such event is specifically deleted
or modified in or pursuant to the supplemental indenture or Board Resolution
establishing the terms of such series pursuant to this Indenture:

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

         (2)      default in the delivery or payment of the Maturity
Consideration in respect of any Security of that series at its Maturity; or

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

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

         (5)      the entry by a court having jurisdiction in the premises of
(A) a decree or order for relief in respect of the Company in an involuntary
case or proceeding under any applicable Federal or State bankruptcy, insolvency,
reorganization or other similar law or (B) a decree or

                                       28

<PAGE>

order adjudging the Company a bankrupt or insolvent, or approving as properly
filed a petition seeking reorganization, arrangement, adjustment or composition
of or in respect of the Company under any applicable Federal or State law, or
(C) appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator or other similar official of the Company or of any substantial part
of its property, or ordering the winding up or liquidation of its affairs, and
the continuance of any such decree or order for relief or any such other decree
or order unstayed and in effect for a period of 60 consecutive days; or

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

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

         SECTION 5.02. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default (other than an Event of Default specified in Section 5.01(5) or
5.01(6)) with respect to Securities of any series at the time Outstanding occurs
and is continuing, then in every such case the Trustee or the Holders of not
less than 25% in principal amount or, if such Securities are not payable at
Maturity for a fixed principal amount, 25% of the aggregate issue price of the
Outstanding Securities of that series may declare the principal amount of all
Securities of that series, or such other amount or property, as may be provided
for in the Securities of that series, (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) to be due and payable
immediately, by a notice in writing to the Company (and to the Trustee, if given
by Holders), and upon any such declaration such principal amount or property (or
specified amount) shall become immediately due and payable. If an Event of
Default specified in Section 5.01(5) or 5.01(6) with respect to Securities of
any series at the time Outstanding occurs, the principal amount of all the
Securities of that series, or such other amount or property, as may be provided
for in the Securities of that series, (or, if any Securities of that series are
Original Issue Discount Securities, such portion of the principal amount of such
Securities as may be specified by the terms thereof) shall automatically, and
without any declaration or other action on the part of the Trustee or any
Holder, become immediately due and payable.

         At any time after such a declaration of acceleration with respect to
Securities of any series has been made and before a judgment or decree for
payment of the Maturity Consideration due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal
amount or, if such Securities are not payable at Maturity for a fixed

                                       29

<PAGE>

principal amount, the aggregate issue price of the Outstanding Securities of
that series, by written notice to the Company and the Trustee, may rescind and
annul such declaration and its consequences if:

         (1)      the Company has paid or deposited with the Trustee:

                           (A)      the Maturity Consideration relating to any
         Securities of that series which have become due otherwise than by such
         declaration of acceleration and interest thereon at the rate or rates
         borne by or provided for in such Securities,

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

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

                           (D)      all sums paid or advanced by the Trustee
         hereunder and all amounts owing the Trustee under Section 6.07; and

         (2)      all Events of Default with respect to Securities of that
series, other than the non-payment of the Maturity Consideration with respect to
such series due solely by reason of such declaration of acceleration, have been
cured or waived as provided in Section 5.13.

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

         SECTION 5.03. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Company covenants that if:

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

         (2)      default is made in the payment of Maturity Consideration
relating to any Security when due,

the Company shall, upon demand of the Trustee, deliver or pay to it, for the
benefit of the Holders of such Securities, the whole amount and/or other
consideration then due and payable or deliverable on such Securities for
Maturity Consideration and interest thereon, and, to the extent that payment of
such interest shall be legally enforceable, interest on any overdue Maturity
Consideration and on any overdue interest, at the rate or rates prescribed
therefor in such Securities, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including all
amounts owing the Trustee under Section 6.07.

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

                                       30

<PAGE>

         SECTION 5.04. TRUSTEE MAY FILE PROOFS OF CLAIM. In case of any judicial
proceeding relative to the Company, its property or its creditors, the Trustee
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In particular, the Trustee shall be authorized to collect and
receive any moneys or other property payable or deliverable on any such claims
and to distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it under
Section 6.07.

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

         SECTION 5.05. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
SECURITIES. All rights of action and claims under this Indenture or the
Securities may be prosecuted and enforced by the Trustee without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of all amounts owing the Trustee under Section
6.07, be for the ratable benefit of the Holders of the Securities in respect of
which such judgment has been recovered.

         SECTION 5.06. APPLICATION OF MONEY COLLECTED. Any money or other
consideration collected by the Trustee pursuant to this Article shall be applied
in the following order, at the date or dates fixed by the Trustee and, in case
of the distribution of such money or other consideration on account of the
Maturity Consideration or interest, upon presentation of the Securities and the
notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

                  FIRST: To the payment of all amounts due the Trustee under
                  Section 6.07; and

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

         SECTION 5.07. LIMITATION ON SUITS. No Holder of any Security of any
series shall have any right to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless

                                       31

<PAGE>

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

         (2)      the Holders of not less than 25% in principal amount or, if
such Securities are not payable at Maturity for a fixed principal amount, the
aggregate issue price of the Outstanding Securities of that series shall have
made written request to a Responsible Officer to institute proceedings in
respect of such Event of Default in its own name as Trustee hereunder;

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

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

         (5)      no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority in
principal amount or, if such Securities are not payable at Maturity for a fixed
principal amount, the aggregate issue price of the Outstanding Securities of
that series;

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

         SECTION 5.08. UNCONDITIONAL RIGHT OF HOLDER TO RECEIVE PRINCIPAL,
PREMIUM AND INTEREST. Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive delivery or payment of the Maturity Consideration
relating to, and (subject to Section 3.07) interest on such Security on the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement of
any such delivery or payment, and such rights shall not be impaired without the
consent of such Holder.

         SECTION 5.09. RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.

         SECTION 5.10. RIGHTS AND REMEDIES CUMULATIVE. Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 3.06, no right or
remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The

                                       32

<PAGE>

assertion or employment of any right or remedy hereunder, or otherwise, shall
not prevent the concurrent assertion or employment of any other appropriate
right or remedy.

         SECTION 5.11. DELAY OR OMISSION NOT WAIVER. No delay or omission of the
Trustee or of any Holder of any Securities to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article or by law to the Trustee or to the
Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

         SECTION 5.12. CONTROL BY HOLDERS. The Holders of a majority in
principal amount of the Outstanding Securities of any series shall have the
right to direct the time, method and place of conducting any proceeding for any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee, with respect to the Securities of such series; provided that

         (1)      such direction shall not be in conflict with any rule of law
or with this Indenture or with the Securities of such series;

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

         (3)      such direction shall not involve the Trustee in personal
liability or be unjustly prejudicial to Holders not joining therein (it being
understood that the Trustee shall have no responsibility to determine such
prejudice).

         SECTION 5.13. WAIVER OF PAST DEFAULTS. The Holders of not less than a
majority in principal amount of the Outstanding Securities of any series may on
behalf of the Holders of all the Securities of such series waive any past
default hereunder with respect to such series and its consequences, except a
default:

         (1) in the delivery or payment of the Maturity Consideration or any
interest on any Security of such series; or

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

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

         SECTION 5.14. 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, 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

                                       33

<PAGE>

hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

         SECTION 5.15. UNDERTAKING FOR COSTS. All parties to this Indenture
agree, and each Holder of any Securities by his 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 any undertaking to pay the costs of such
suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys' fees, 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 5.15 shall not apply to
any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of
Outstanding Securities of any series, or to any suit instituted by any Holder
for the enforcement of the payment of the Maturity Consideration or interest, if
any, with respect to any Securities on or after the respective Stated Maturity
expressed in such Securities (or, in the case of redemption, on or after the
Redemption Date, and in the case of repayment, on or after the date for
repayment) or for the enforcement of the right, if any, to convert or exchange
any Securities into other securities in accordance with its terms.

                                   ARTICLE VI

                                   THE TRUSTEE

         SECTION 6.01. CERTAIN DUTIES AND RESPONSIBILITIES. The duties and
responsibilities of the Trustee shall be as provided by this Indenture and the
Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

         SECTION 6.02. NOTICE OF DEFAULTS. If a default occurs hereunder with
respect to Securities of any series, upon receipt of written notice thereof by a
Responsible Officer, the Trustee shall give the Holders of Securities of such
series notice of such default as and to the extent provided by Section 315(b) of
the Trust Indenture Act; provided, however, that in the case of any default of
the character specified in Section 5.01(4) with respect to Securities of such
series, no such notice to Holders shall be given until at least 60 days after
the occurrence thereof. For the purpose of this Section, the term "default"
means any event which is, or after notice or lapse of time or both would become,
an Event of Default with respect to Securities of such series.

         SECTION 6.03. CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions of
Section 6.01:

         (1)      the Trustee may rely conclusively and shall be protected in
acting or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other

                                       34

<PAGE>

paper or document reasonably believed by it to be genuine and to have been
signed or presented by the proper party or parties;

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

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

         (4)      the Trustee may consult with counsel of its 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, suffered or omitted
by it hereunder in good faith and in reliance thereon;

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

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

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

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

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

         (10)     the rights, privileges, protections, immunities and benefits
given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be

                                       35

<PAGE>

enforceable by, the Trustee in each of its capacities hereunder, and to each
agent, custodian and other Person employed to act hereunder.

         SECTION 6.04. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF SECURITIES.
The recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and neither the Trustee nor any Authenticating Agent assumes any responsibility
for their correctness. The Trustee makes no representations as to the validity
or sufficiency of this Indenture or of the Securities except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and that the
statements made by it in a Statement of Eligibility on Form T-1 supplied to the
Company are true and accurate, subject to the qualifications set forth therein.
Neither the Trustee nor any Authenticating Agent shall be accountable for the
use or application by the Company of Securities or the proceeds thereof.

         SECTION 6.05. MAY HOLD SECURITIES. The Trustee, any Authenticating
Agent, any Paying Agent, any Security Registrar or any other agent of the
Company or the Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities and, subject to Sections 6.08 and 6.13, may
otherwise deal with the Company with the same rights it would have if it were
not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such
other agent.

         SECTION 6.06. MONEY HELD IN TRUST. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on or investment of
any money received by it hereunder except as otherwise agreed with the Company,
and any interest on or investment of any money received by it shall be for the
exclusive benefit of the Company.

         SECTION 6.07. COMPENSATION AND REIMBURSEMENT. The Company agrees:

         (1)      to pay to the Trustee from time to time the compensation for
all services rendered by it hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust) as set forth in the Schedule of Fees agreed upon by the Company and the
Trustee;

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

         (3)      to indemnify the Trustee (which for purposes of this Section
6.07 shall include its directors, officers, employees and agents) for, and to
defend and hold it harmless against, any and all loss, damage, claims, liability
including taxes (other than taxes based upon, measured by or determined by the
income of the Trustee) or expense arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder or the performance
of its duties hereunder, including the costs and expenses of defending itself
against any claim, whether

                                       36

<PAGE>

asserted by the Company or any Holder or any other Person, or liability in
connection with the exercise or performance of any of its powers or duties
hereunder, except to the extent any such loss, damage, claims, liability or
expense may be attributable to its negligence, bad faith or willful misconduct.

         To secure the Company's payment of obligations in this Section 6.07,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
pay principal of and interest and any premium on particular Securities.

         The Company's payment obligations pursuant to this Section 6.07 shall
survive the discharge of this Indenture and the resignation, removal or
replacement of the Trustee.

         "TRUSTEE" for purposes of this Section 6.07 includes the Trustee, every
predecessor Trustee, any Paying Agent, Authenticating Agent, Registrar or other
agent of the Company or the Trustee appointed hereunder, but the negligence or
bad faith of any such person shall not affect the rights of any other such
person under this Section 6.07.

         SECTION 6.08. CONFLICTING INTERESTS. If the Trustee has or shall
acquire a conflicting interest within the meaning of the Trust Indenture Act,
the Trustee shall either eliminate such interest or resign, to the extent and in
the manner provided by, and subject to the provisions of, the Trust Indenture
Act and this Indenture. To the extent permitted by such Act, the Trustee shall
not be deemed to have a conflicting interest by virtue of being a trustee under
this Indenture with respect to Securities of more than one series.

         SECTION 6.09. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY. There shall at
all times be one (and only one) Trustee hereunder with respect to the Securities
of each series, which may be the Trustee hereunder for Securities of one or more
other series. Each Trustee shall be a Person that is eligible pursuant to the
Trust Indenture Act to act as such and has a combined capital and surplus of at
least $50,000,000. If any such Person publishes reports of condition at least
annually, pursuant to law or to the requirements of its supervising or examining
authority, then for the purposes of this Section and to the extent permitted by
the Trust Indenture Act, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee with respect to the
Securities shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.

         SECTION 6.10. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR. No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee in accordance with the applicable
requirements of Section 6.11.

         The Trustee may resign at any time with respect to the Securities of
one or more series by giving written notice thereof to the Company. If the
instrument of acceptance by a successor Trustee required by Section 6.11 shall
not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of

                                       37

<PAGE>

competent jurisdiction for the appointment of a successor Trustee with respect
to the Securities of such series.

         The Trustee may be removed at any time with respect to the Securities
of any series, with or without cause, by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series, delivered to the
Trustee and to the Company.

         If at any time:

         (1)      the Trustee shall fail to comply with Section 6.08 after
written request therefor by the Company or by any Holder of a Security of such
series who has been a bona fide Holder of a Security of such series for at least
six months, or

         (2)      the Trustee shall cease to be eligible under Section 6.09 and
shall fail to resign after written request therefor by the Company or any such
Holder, or

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

then, in any such case, (A) the Company, by a Board Resolution, may remove the
Trustee with respect to all Securities or the Securities of such series, or (B)
subject to Section 5.15, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee with respect to all Securities of such series and the
appointment of a successor Trustee or Trustees.

         If the Trustee shall resign, be removed or become incapable of acting,
or if a vacancy shall occur in the office of Trustee for any reason, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 6.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
6.11, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 6.11, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

                                       38

<PAGE>

         If any instrument of acceptance by a successor Trustee shall not have
been delivered to the Trustee within 30 days after the giving of such notice of
removal, the Trustee being removed may petition, at the expense of the Company,
any court of competent jurisdiction for the appointment of a successor Trustee
with respect to the Securities of such series.

         The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Securities of any series and each appointment of
a successor Trustee with respect to the Securities of any series to all Holders
of Securities of such series in the manner provided in Section 1.06. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

         SECTION 6.11. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR. In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and deliver
to the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act, deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Company or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the
rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder.

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

                                       39

<PAGE>

Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates.

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

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

         SECTION 6.12. 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 the corporate trust business
of the Trustee, shall be the successor of the Trustee hereunder; provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. 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 6.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. If and
when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of claims against the Company
(or any such other obligor).

         SECTION 6.14. APPOINTMENT OF AUTHENTICATING AGENT. The Trustee may
appoint an Authenticating Agent or Agents with respect to one or more series of
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Securities of such series issued upon original issue and upon
exchange, registration of transfer or partial redemption thereof or pursuant to
Section 3.06, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this
Indenture to the authentication and delivery of Securities by the Trustee or the
Trustee's certificate of authentication, such reference shall be deemed to
include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or state authorities. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time an
Authenticating

                                       40

<PAGE>

Agent shall cease to be eligible in accordance with the provisions of this
Section, such Authenticating Agent shall resign immediately in the manner and
with the effect specified in this Section.

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

         An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee may appoint a successor Authenticating
Agent which shall be acceptable to the Company and shall give notice of such
appointment in the manner provided in Section 1.06 to all Holders of Securities
of the series with respect to which such Authenticating Agent will serve. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section.

         The Company agrees to pay to each Authenticating Agent from time to
time reasonable compensation for its services under this Section.

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

         This is one of the Securities of the series designated herein referred
to in the Indenture.

                                                [NAME OF TRUSTEE],
                                                 As Trustee

                                                 By_____________________________
                                                   As Authenticating Agent

                                                 By_____________________________
                                                   Authorized Signatory

                                       41

<PAGE>

                                  ARTICLE VII

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

         SECTION 7.01. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF
HOLDERS. The Company will furnish or cause to be furnished to the Trustee:

         (1)      semiannually, not later than March 31 and September 30 in each
year, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders of Securities of each series as of the preceding
March 16 or September 15, as the case may be, and

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

         SECTION 7.02. PRESERVATION OF INFORMATION; COMMUNICATIONS TO HOLDERS.
The Trustee shall preserve, in as current a form as is reasonably practicable,
the names and addresses of Holders contained in the most recent list furnished
to the Trustee as provided in Section 7.01 and the names and addresses of
Holders received by the Trustee in its capacity as Security Registrar. The
Trustee may destroy any list furnished to it as provided in Section 7.01 upon
receipt of a new list so furnished.

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

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

         SECTION 7.03. REPORTS BY TRUSTEE. The Trustee shall transmit to Holders
such reports, if any, concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the times
and in the manner provided pursuant thereto.

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

         SECTION 7.04. REPORTS BY COMPANY. The Company shall file with the
Trustee and the Commission, and transmit to Holders, such information, documents
and other reports, and such summaries thereof, as may be required pursuant to
the Trust Indenture Act at the times and in the manner provided pursuant to the
Trust Indenture Act; provided that any such information, documents or reports
required to be filed with the Commission pursuant to Section 13 or 15(d) of the
Exchange Act shall be filed with the Trustee within 15 days after the same is so
required to be filed with the Commission. Delivery of such reports, information
and documents to the

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<PAGE>

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

                                  ARTICLE VIII

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

         SECTION 8.01. COMPANY MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS. The
Company shall not consolidate with or merge with or into any other Person or
convey, transfer or lease all or substantially all of its properties and assets
substantially as an entirety to any Person, unless:

         (1)      either (a) the Company shall be the continuing corporation or
(b) the Person (if other than the Company) formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance,
transfer, or lease, the properties and assets of the Company substantially as an
entirety shall be a corporation, partnership or trust, organized and validly
existing under the laws of the United States of America, any State thereof or
the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, in form satisfactory to the Trustee, the due and punctual
delivery or payment of the Maturity Consideration and interest on all the
Securities and the performance of every covenant of this Indenture on the part
of the Company to be performed or observed;

         (2)      immediately after giving effect to such transaction, no Event
of Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have occurred and be continuing; and

         (3)      the Company or such Person has delivered to the Trustee a
Certificate and an Opinion of Counsel, as to which opinion counsel may rely on
the Certificate as to factual matters, each stating that such consolidation,
merger, conveyance, transfer or lease and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture comply
with this Article and that all conditions precedent herein provided for or
relating to such transaction have been satisfied.

         SECTION 8.02. SUCCESSOR SUBSTITUTED. Upon any consolidation or merger,
or any conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 8.01, the successor
Person formed by such consolidation or into which the Company is merged or the
successor Person to which such conveyance, transfer or lease is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company under the Securities and this Indenture with the same effect as if
such successor had been named as the Company herein; and thereafter, except in
the case of a lease, the Company shall be discharged from all obligations and
covenants under this Indenture and the Securities.

                                       43

<PAGE>

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

         SECTION 9.01. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.
Without the consent of any Holders, the Company, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, for any of the following purposes:

         (1)      to evidence the succession of another Person to the Company
and the assumption by any such successor of the covenants of the Company herein
and in the Securities; or

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

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

         (4)      to add to or change any of the provisions of this Indenture to
such extent as shall be necessary to permit or facilitate the issuance of
Securities in uncertificated form; or

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

         (6)      to secure the Securities; or

         (7)      to establish the form or terms of Securities of any series as
permitted by Sections 2.01 and 3.01; or

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

         (9)      to cure any ambiguity, to correct or supplement any provision
herein which may be defective or inconsistent with any other provision herein,
or to make any other provisions with respect to matters or questions arising
under this Indenture; provided that such action pursuant to this Clause (9)
shall not adversely affect the interests of the Holders of Securities of any
series in any material respect; or

                                       44

<PAGE>

         (10)     to add to or change or eliminate any provision of this
Indenture as shall be necessary or desirable in accordance with any amendments
to the Trust Indenture Act, provided such action shall not adversely affect the
interest of Holders of Securities of any series in any material respect.

         (11)     to amend or supplement any provision contained herein or in
any supplemental indenture, provided that no such amendment or supplement shall
materially adversely affect the interests of the Holders of any Securities then
Outstanding.

         SECTION 9.02. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
consent of the Holders of not less than a majority in principal amount or, if
such Securities are not payable at Maturity for a fixed principal amount, the
aggregate issue price of the Outstanding Securities of each series affected by
such supplemental indenture, by Act of said Holders delivered to the Company and
the Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of modifying in any manner the rights of the
Holders of Securities of such series under this Indenture; provided, however,
that no such supplemental indenture shall, without the consent of the Holder of
each Outstanding Security affected thereby,

         (1)      change the Stated Maturity of the Maturity Consideration, or
any installment of Maturity Consideration or interest on, any Security, or
reduce the principal amount thereof or reduce the amount or change the type of
Maturity Consideration or reduce the rate of interest thereon or any premium
payable upon the redemption thereof, or reduce the amount of Maturity
Consideration of an Original Issue Discount Security or any other Security which
would be due and deliverable or payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 5.02, or change any Place of Payment
where, or the coin or currency in which, any Maturity Consideration or interest
on any Security are deliverable or payable, or impair the right to institute
suit for the enforcement of any such delivery or payment on or after the Stated
Maturity thereof (or, in the case of redemption, on or after the Redemption
Date), or

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

         (3)      modify any of the provisions of this Section, Section 5.13 or
Section 10.06, except to increase any percentages set forth therein or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Outstanding Security affected
thereby; provided, however, that this clause shall not be deemed to require the
consent of any Holder with respect to changes in the references to "THE TRUSTEE"
and concomitant changes in this Section and Section 10.06 in accordance with the
requirements of Sections 6.11 and 9.01(8).

         A supplemental indenture which changes or eliminates any covenant or
other provision of this Indenture which has expressly been included solely for
the benefit of one or more particular

                                       45

<PAGE>

series of Securities, or which modifies the rights of the Holders of Securities
of such series with respect to such covenant or other provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Securities of
any other series.

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

         SECTION 9.03. EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Section
6.01) shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by
this Indenture. The Trustee may, but shall not be obligated to, enter into any
such supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

         SECTION 9.04. EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of
any supplemental indenture under this Article, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.

         SECTION 9.05. CONFORMING WITH TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article shall conform to the requirements of
the Trust Indenture Act.

         SECTION 9.06. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities of any series authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities of any series so modified as to conform, in the opinion of the
Trustee and the Company, to any such supplemental indenture may be prepared and
executed by the Company and authenticated and delivered by the Trustee in
exchange for Outstanding Securities of such series.

                                    ARTICLE X

                                    COVENANTS

         SECTION 10.01. DELIVERY OR PAYMENT OF MATURITY CONSIDERATION AND
INTEREST. The Company covenants and agrees for the benefit of the Holders of
each series of Securities that it will duly and punctually deliver or pay the
Maturity Consideration and interest on the Securities of that series in
accordance with the terms of the Securities and this Indenture.

         SECTION 10.02. MAINTENANCE OF OFFICE OR AGENCY. The Company will
maintain in each Place of Payment for any series of Securities an office or
agency where Securities of that series may be presented or surrendered for
payment, where Securities of that series may be

                                       46

<PAGE>

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

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

         SECTION 10.03. MONEY OR OTHER CONSIDERATION FOR SECURITIES PAYMENTS TO
BE HELD IN TRUST. If the Company shall at any time act as its own Paying Agent
with respect to any series of Securities, it will, on or before each due date of
the Maturity Consideration or interest on any of the Securities of that series,
segregate and hold in trust for the benefit of the Persons entitled thereto
consideration in an amount sufficient to deliver or pay the Maturity
Consideration or a sum sufficient to pay the interest so becoming due until such
consideration shall be delivered or paid to such Persons or otherwise disposed
of as herein provided and will promptly notify the Trustee of its action or
failure so to act.

         Whenever the Company shall have one or more Paying Agents for any
series of Securities, it will, prior to each due date of the Maturity
Consideration or interest on any Securities of that series, deposit with a
Paying Agent consideration in an amount sufficient to deliver or pay the
Maturity Consideration or a sum sufficient to pay the interest so becoming due,
such consideration to be held as provided by the Trust Indenture Act, and
(unless such Paying Agent is the Trustee) the Company will promptly notify the
Trustee of its action or failure so to act.

         The Company shall cause each Paying Agent for any series of Securities
other than the Trustee to execute and deliver to the Trustee an instrument in
which such Paying Agent shall agree with the Trustee, subject to the provisions
of this Section, that such Paying Agent will (1) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (2) give the
Trustee notice of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any delivery or payment of Maturity
Consideration or interest on the Securities of that series, and (3) during the
continuance of any such default, upon the written request of the Trustee,
forthwith deliver or pay to the Trustee all consideration so held in trust by
such Paying Agent for payment in respect of the Securities of that series.

         The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, deliver
or pay, or by Company Order direct any Paying Agent to deliver or pay, to the
Trustee all consideration held in trust by the Company

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<PAGE>

or such Paying Agent, such consideration to be held by the Trustee upon the same
trusts as those upon which such consideration was held by the Company or such
Paying Agent; and, upon such delivery or payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with
respect to such consideration.

         Any consideration deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the Maturity Consideration
or interest on or delivery or payment upon discharge of any Security of any
series and remaining unclaimed for two years after such consideration has become
due and deliverable or payable shall be paid to the Company upon a Company
Request, or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for delivery or payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust
consideration, and all liability of the Company as trustee thereof, shall
thereupon cease.

         SECTION 10.04. STATEMENT BY OFFICERS AS TO DEFAULT.

         (1)      The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date hereof, a
Certificate stating whether or not, after a review under each signer's
supervision of the activities of the Company during such year and of the
Company's performance under this Indenture, to the best knowledge, based on such
review, of the signers thereof, the Company has fulfilled all its obligations
under this Indenture throughout such year, and, if there has been a default in
the fulfillment of any such obligation, specifying each default and the nature
and status thereof.

         (2)      When any event has occurred and is continuing which is, or
after notice or lapse of time or both would become, an Event of Default, or if
the Trustee or any Holder gives any notice or takes any other action with
respect to a claimed default, the Company shall deliver to the Trustee by
registered or certified mail or facsimile transmission a Certificate specifying
such event, notice or other action within five Business Days of its occurrence.

         SECTION 10.05. EXISTENCE. Subject to Article VIII, the Company shall do
or cause to be done all things necessary to preserve and keep in full force and
effect its existence, rights (charter and statutory) and franchises; provided,
however, that the Company shall not be required to preserve any such right or
franchise if the Board of Directors shall determine that the preservation
thereof is no longer desirable in the conduct of the business of the Company and
that the loss thereof is not disadvantageous in any material respect to the
Holders.

         SECTION 10.06. CALCULATION OF ORIGINAL ISSUE DISCOUNT. The Company
shall file with the Trustee promptly at the end of each calendar year (1) a
written notice specifying the amount of original issue discount (including daily
rates and accrual periods) accrued on Outstanding Securities as of the end of
such year and (2) such other specific information relating to such original
issue discount as may then be relevant under the Internal Revenue Code of 1986,
as amended from time to time.

         SECTION 10.07. WAIVER OF CERTAIN COVENANTS. Except as otherwise
specified as contemplated by Section 3.01 for Securities of such series, the
Company may, with respect to the

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<PAGE>

Securities of any series, omit in any particular instance to comply with any
term, provision or condition set forth in any covenant provided pursuant to
Section 3.01(18), 9.01(2) or 9.01(7) for the benefit of the Holders of such
series, if before the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Securities of such series shall,
by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such term, provision or condition, but no such
waiver shall extend to or affect such term, provision or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the duties of the Trustee in respect of any such
term, provision or condition shall remain in full force and effect.

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

         SECTION 11.01. APPLICABILITY OF ARTICLE. Securities of any series which
are redeemable before their Stated Maturity shall be redeemable in accordance
with their terms and (except as otherwise specified as contemplated by Section
3.01 for such Securities) in accordance with this Article.

         SECTION 11.02. ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election of
the Company to redeem any Securities shall be evidenced by a Board Resolution or
in another manner specified as contemplated by Section 3.01 for such Securities.
In case of any redemption at the election of the Company of the Securities of
any series (including any such redemption affecting only a single Security), the
Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date, of the principal amount of Securities of
such series to be redeemed and, if applicable, of the tenor of the Securities to
be redeemed. In the case of any redemption of Securities 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
Certificate evidencing compliance with such restriction.

         SECTION 11.03. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED. If
less than all the Securities of any series with the same issue date, interest
rate or formula, Stated Maturity and other terms are to be redeemed, the
particular Securities to be redeemed shall be selected not more than 60 days
prior to the Redemption Date by the Trustee from the Outstanding Securities of
such series not previously called for redemption, by such method as the Trustee
shall deem fair and appropriate and which may provide for the selection for
redemption of a portion of the principal amount of any Security of such series;
provided that the unredeemed portion of the principal amount of any Security
shall be in an authorized denomination (which shall not be less than the minimum
authorized denomination) for such Security. If less than all the Securities of
such series and of a specified tenor are to be redeemed (unless such redemption
affects only a single Security), the particular Securities to be redeemed shall
be selected not more than 60 days prior to the Redemption Date by the Trustee
from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence;
provided, that if at the time of redemption such Securities are registered as a
Global Security, the Depositary shall determine, in accordance with its
procedures, the principal amount of such Securities held by each beneficial
owner to be redeemed.

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<PAGE>

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

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

         For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate,
in the case of any Securities redeemed or to be redeemed only in part, to the
portion of the principal amount of such Securities which has been or is to be
redeemed.

         SECTION 11.04. NOTICE OF REDEMPTION. Notice of redemption shall be
given by first-class mail, postage prepaid, mailed not less than 30 nor more
than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his address appearing in the Security Register.

         All notices of redemption shall state:

         (1)      the Redemption Date;

         (2)      the Redemption Price and any accrued interest;

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

         (4)      that on the Redemption Date the Redemption Price and any
accrued interest will become due and payable upon each such Security to be
redeemed and, if applicable, that interest thereon will cease to accrue on and
after said date (unless the Company shall default in the payment of the
Redemption Price and accrued interest);

         (5)      the place or places where each such Security is to be
surrendered for payment of the Redemption Price and any accrued interest;

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

         (7)      the CUSIP number.

         Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's request, by the
Trustee in the name and at the expense of the Company and shall be irrevocable.

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<PAGE>

         SECTION 11.05. DEPOSIT OF REDEMPTION PRICE. Prior to any Redemption
Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if
the Company is acting as its own Paying Agent, segregate and hold in trust as
provided in Section 10.03) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

         SECTION 11.06. SECURITIES PAYABLE ON REDEMPTION DATE. Notice of
redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified, and from and after such date (unless the Company shall
default in the payment of the Redemption Price and accrued interest) such
Securities shall cease to bear interest. Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date provided, however, that, unless otherwise specified as
contemplated by Section 3.01, installments of interest whose Stated Maturity is
on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.07.

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

         SECTION 11.07. SECURITIES REDEEMED IN PART. Any Security which is to be
redeemed only in part shall be surrendered at a Place of Payment therefor (with,
if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly
executed by, the Holder thereof or his attorney duly authorized in writing), and
the Company shall execute, and the Trustee shall authenticate and deliver to the
Holder of such Security without service charge, a new Security or Securities of
the same series and of like tenor, of any authorized denomination as requested
by such Holder, in an aggregate principal amount equal to and in exchange for
the unredeemed portion of the principal of the Security so surrendered.

                                   ARTICLE XII

                                  SINKING FUNDS

         SECTION 12.01. APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to any sinking fund for the retirement of Securities of any
series except as otherwise specified in Section 3.01 for such Securities.

         The minimum amount of any sinking fund payment provided for by the
terms of any Securities is herein referred to as a "MANDATORY SINKING FUND
PAYMENT", and any payment in excess of such minimum amount provided for by the
terms of such Securities is herein referred to as an "OPTIONAL SINKING FUND
PAYMENT". If provided for by the terms of any Securities, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section

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<PAGE>

12.02. Each sinking fund payment shall be applied to the redemption of
Securities as provided for by the terms of such Securities and this Indenture.

         SECTION 12.02. SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.
The Company (1) may deliver Outstanding Securities of a series (other than any
previously called for redemption) and (2) may apply as a credit Securities of a
series which have been redeemed either at the election of the Company pursuant
to the terms of such Securities or through the application of permitted optional
sinking fund payments pursuant to the terms of such Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to any
Securities of such series required to be made pursuant to the terms of such
Securities as and to the extent provided for by the terms of such Securities;
provided that the Securities to be so credited have not been previously so
credited. The Securities to be so credited shall be received and credited for
such purpose by the Trustee at the Redemption Price specified in the Securities
for redemption through operation of the sinking fund and the amount of such
sinking fund payment shall be reduced accordingly.

         SECTION 12.03. REDEMPTION OF SECURITIES FOR SINKING FUND. Not less than
60 days prior to each sinking fund payment date for any Securities, the Company
will deliver to the Trustee a Certificate specifying the amount of the next
ensuing sinking fund payment for such Securities pursuant to the terms of such
Securities, the portion thereof, if any, which is to be satisfied by payment of
cash and the portion thereof, if any, which is to be satisfied by delivering and
crediting Securities pursuant to Section 12.02 and will also deliver to the
Trustee any Securities to be so delivered. Not less than 30 days prior to each
such sinking fund payment date, the Trustee shall select the Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section
11.03 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 11.04. Such
notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 11.06 and 11.07.

                                  ARTICLE XIII

                       DEFEASANCE AND COVENANT DEFEASANCE

         SECTION 13.01. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT
DEFEASANCE. The Company may elect, at its option at any time, to have Section
13.02 or Section 13.03 applied to any Securities or any series of Securities, as
the case may be, designated pursuant to Section 3.01 as being defeasible
pursuant to such Section 13.02 or 13.03, in accordance with any applicable
requirements provided pursuant to Section 3.01 and upon compliance with the
conditions set forth below in this Article. Any such election shall be evidenced
by a Board Resolution or in another manner specified as contemplated by Section
3.01 for such Securities.

         SECTION 13.02. DEFEASANCE AND DISCHARGE. Upon the Company's exercise of
its option (if any) to have this Section applied to any Securities or any series
of Securities, as the case may be, the Company shall be deemed to have been
discharged from its obligations with respect to such Securities as provided in
this Section on and after the date the conditions set forth in Section 13.04 are
satisfied (hereinafter called "Defeasance"). For this purpose, such Defeasance
means that the Company shall be deemed to have paid and discharged the entire

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<PAGE>

indebtedness represented by such Securities and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging the same), subject to the following which shall
survive until otherwise terminated or discharged hereunder: (1) the rights of
Holders of such Securities to receive, solely from the trust fund described in
Section 13.04 and as more fully set forth in such Section, payments in respect
of the Maturity Consideration and interest on such Securities when payments are
due, (2) the Company's obligations with respect to such Securities under
Sections 3.04, 3.05, 3.06, 10.02 and 10.03, (3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder and (4) this Article. Subject to
compliance with this Article, the Company may exercise its option (if any) to
have this Section applied to any Securities notwithstanding the prior exercise
of its option (if any) to have Section 13.03 applied to such Securities.

         SECTION 13.03. COVENANT DEFEASANCE. Upon the Company's exercise of its
option (if any) to have this Section applied to any Securities or any series of
Securities, as the case may be, (1) the Company shall be released from its
obligations under Section 8.01, Section 10.05, and any covenants provided
pursuant to Section 3.01(18), 9.01(2) or 9.01(7) for the benefit of the Holders
of such Securities and (2) the occurrence of any event specified in Sections
5.01(4) (with respect to any of Section 8.01(3), and any such covenants provided
pursuant to Section 3.01(18), 9.01(2) or 9.01(7)), 5.01(5) and 5.01(7) shall be
deemed not to be or result in an Event of Default, in each case with respect to
such Securities as provided in this Section on and after the date the conditions
set forth in Section 13.04 are satisfied (hereinafter called "Covenant
Defeasance"). For this purpose, such Covenant Defeasance means that, with
respect to such Securities, 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 specified Section (to the extent so specified in the case of Section
5.01(4)), whether directly or indirectly by reason of any reference elsewhere
herein to any such Section or by reason of any reference in any such Section to
any other provision herein or in any other document, but the remainder of this
Indenture and such Securities shall be unaffected thereby.

         SECTION 13.04. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. The
following shall be the conditions to the application of Section 13.02 or Section
13.03 to any Securities or any series of Securities, as the case may be:

         (1)      The Company shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee which satisfies the requirements
contemplated by Section 6.09 and agrees to comply with the provisions of this
Article applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Securities, (A) money in an amount, or
(B) U.S. Government Obligations which through the scheduled payment of principal
and interest in respect thereof in accordance with their terms will provide, not
later than one day before the due date of any payment, money in an amount, or
(C) a combination thereof, in each case sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay and discharge,
and which shall be applied by the Trustee (or any such other qualifying trustee)
to pay and discharge, the Maturity Consideration and interest on such Securities
on the respective Stated Maturities, in accordance with the terms of this
Indenture and such Securities. As used herein, "U.S. GOVERNMENT

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<PAGE>

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

         (2)      In the event of an election to have Section 13.02 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel stating that (A) the Company
has received from, or there has been published by, the Internal Revenue Service
a ruling or (B) since the date of this instrument, there has been a change in
applicable Federal income tax law, in either case (A) or (B) to the effect that,
and based thereon such opinion shall confirm that, the Holders of such
Securities will not recognize gain or loss for Federal income tax purposes as a
result of the deposit, Defeasance and discharge to be effected with respect to
such Securities and will be subject to Federal income tax on the same amount, in
the same manner and at the same times as would be the case if such deposit,
Defeasance and discharge were not to occur.

         (3)      In the event of an election to have Section 13.03 apply to any
Securities or any series of Securities, as the case may be, the Company shall
have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Securities will not recognize gain or loss for Federal income
tax purposes as a result of the deposit and Covenant Defeasance to be effected
with respect to such Securities and will be subject to Federal income tax on the
same amount, in the same manner and at the same times as would be the case if
such deposit and Covenant Defeasance were not to occur.

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

         (5)      No event which is, or after notice or lapse of time or both
would become, an Event of Default with respect to such Securities or any other
Securities shall have occurred and be continuing at the time of such deposit or,
with regard to any such event specified in Section 5.01(5) and (6), at any time
on or prior to the 90th day after the date of such deposit (it being understood
that this condition shall not be deemed satisfied until after such 90th day).

         (6)      Such Defeasance or Covenant Defeasance shall not cause the
Trustee to have a conflicting interest within the meaning of the Trust Indenture
Act.

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<PAGE>

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

         (8)      Such Defeasance or Covenant Defeasance shall not result in the
trust arising from such deposit constituting an investment company within the
meaning of the Investment Company Act unless such trust shall be registered
under the Investment Company Act of 1940, as amended or exempt from registration
thereunder.

         (9)      The Company shall have delivered to the Trustee a Certificate
and an Opinion of Counsel, which opinion may be given in all circumstances by an
employee of or counsel for the Company, each stating that all conditions
precedent with respect to such Defeasance or Covenant Defeasance have been
complied with.

         SECTION 13.05. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE
HELD IN TRUST; MISCELLANEOUS PROVISIONS. Subject to the provisions of the last
paragraph of Section 10.03, all money and U.S. Government Obligations (including
the proceeds thereof) deposited with the Trustee pursuant to Section 13.04 in
respect of any Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any such Paying Agent (including the Company
acting as its own Paying Agent) as the Trustee may determine, to the Holders of
such Securities, of all sums due and to become due thereon in respect of
Maturity Consideration and interest, but money so held in trust need not be
segregated from other funds except to the extent required by law.

         The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 13.04 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is for
the account of the Holders of Outstanding Securities.

         Anything in this Article to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon Company Request any
money or U.S. Government Obligations held by it as provided in Section 13.04
with respect to any Securities which, in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification
thereof delivered to the Trustee, are in excess of the amount thereof which
would then be required to be deposited to effect the Defeasance or Covenant
Defeasance, as the case may be, with respect to such Securities.

         SECTION 13.06. REINSTATEMENT. If the Trustee or the Paying Agent is
unable to apply any money in accordance with this Article with respect to any
Securities by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the obligations under this Indenture and such Securities from which the Company
has been discharged or released pursuant to Section 13.02 or 13.03 shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article with respect to such Securities, until such time as the Trustee or
Paying Agent is permitted to apply all money held in trust pursuant to Section
13.05 with respect to such Securities in accordance with this Article; provided,
however, that if the Company makes any payment of Maturity Consideration

                                       55

<PAGE>

or interest on any such Security following such reinstatement of its
obligations, the Company shall be subrogated to the rights (if any) of the
Holders of such Securities to receive such payment from the money so held in
trust.

                                   ARTICLE XIV

                       REPAYMENT AT THE OPTION OF HOLDERS

         SECTION 14.01. APPLICABILITY OF ARTICLE. Securities of any series which
are repayable at the option of the Holders thereof before their Stated Maturity
shall be repaid in accordance with the terms of the Securities of such series.
The repayment of any principal amount of Securities pursuant to such option of
the Holder to require repayment of Securities before their Stated Maturity, for
purposes of Section 3.09, shall not operate as a payment, redemption or
satisfaction of the indebtedness represented by such Securities unless and until
the Company, at its option, shall deliver or surrender the same to the Trustee
with a directive that such Securities be canceled. Notwithstanding anything to
the contrary contained in this Section 14.01, in connection with any repayment
of Securities, the Company may arrange for the purchase of any Securities by an
agreement with one or more investment bankers or other purchasers to purchase
such Securities by paying to the Holders of such Securities on or before the
close of business on the repayment date an amount not less than the repayment
price payable by the Company on repayment of such Securities, and the obligation
of the Company to pay the repayment price of such Securities shall be satisfied
and discharged to the extent such payment is so paid by such purchasers.

                                   ARTICLE XV

                        SECURITIES IN FOREIGN CURRENCIES

         SECTION 15.01. APPLICABILITY OF ARTICLE. Whenever this Indenture
provides for (1) any action by, or the determination of any of the rights of
Holders of Securities of any series in which not all of such Securities are
denominated in the same Currency, or (2) any distribution to Holders of
Securities, in the absence of any provision to the contrary in the form of
Security of any particular series or pursuant to this Indenture or the
Securities, any amount in respect of any Security denominated in a Currency
other than U.S. dollars shall be treated for any such action or distribution as
that amount of U.S. dollars that could be obtained for such amount on such
reasonable basis of exchange and as of the record date with respect to
Securities of such series (if any) for such action, determination of rights or
distribution (or, if there shall be no applicable record date, such other date
reasonably proximate to the date of such action, determination of rights or
distribution) as the Company may specify in a written notice to the Trustee.

                                   ARTICLE XVI

                        MEETINGS OF HOLDERS OF SECURITIES

         SECTION 16.01. PURPOSES FOR WHICH MEETINGS MAY BE CALLED. A meeting of
Holders of Securities of any series may be called at any time and from time to
time pursuant to this

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<PAGE>

Article to make, give or take any request, demand, authorization, direction,
notice, consent, waiver or other Act provided by this Indenture to be made,
given or taken by Holders of Securities of such series.

         SECTION 16.02. CALL, NOTICE AND PLACE OF MEETINGS.

         (1)      The Trustee may at any time call a meeting of Holders of
Securities of any series for any purpose specified in Section 16.01, to be held
at such time and at such place in the Borough of Manhattan, The City of New
York. Notice of every meeting of Holders of Securities of any series, setting
forth the time and the place of such meeting and in general terms the action
proposed to be taken at such meeting, shall be given, in the manner provided in
Section 1.06, not less than 21 nor more than 180 days prior to the date fixed
for the meeting.

         (2)      In case at any time the Company (by or pursuant to a Board
Resolution) or the Holders of at least 10% in principal amount of the
Outstanding Securities of any series shall have requested the Trustee to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 16.01, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed
notice of such meeting with 21 days after receipt of such request or shall not
thereafter proceed to cause the meeting to be held as provided herein, then the
Company or the Holders of Securities of such series in the amount above
specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York for such meeting and may call such
meeting for such purposes by giving notice thereof as provided in clause (1) of
this Section.

         SECTION 16.03. PERSONS ENTITLED TO VOTE AT MEETINGS. To be entitled to
vote at any meeting of Holders of Securities of any series, a Person shall be
(1) a Holder of one or more Outstanding Securities of such series, or (2) a
Person appointed by an instrument in writing as proxy for a Holder or Holders of
one or more Outstanding Securities of such series by such Holder or Holders. The
only Persons who shall be entitled to be present or to speak at any meeting of
Holders of Securities of any series shall be the Persons entitled to vote at
such meeting and their counsel, any representatives of the Trustee and its
counsel and any representatives of the Company and its counsel.

         SECTION 16.04. QUORUM; ACTION. The Persons entitled to vote a majority
in principal amount of the Outstanding Securities of a series shall constitute a
quorum for any meeting of Holders of Securities of such series. In the absence
of a quorum within 30 minutes after the time appointed for any such meeting, the
meeting shall, if convened at the request of Holders of Securities of such
series, be dissolved. In any other case the meeting may be adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such meeting. In the absence of a quorum at any
reconvened meeting, such reconvened meeting may be further adjourned for a
period of not less than 10 days as determined by the chairman of the meeting
prior to the adjournment of such reconvened meeting. Notice of the reconvening
of any adjourned meeting shall be given as provided in Section 16.02(1), except
that such notice need be given only once not less than five days prior to the
date on which the meeting is to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly the percentage, as provided above, of
the principal amount of the Outstanding Securities of such series which shall
constitute a quorum.

                                       57

<PAGE>

         Except as limited by the proviso to Section 9.02, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted only by the affirmative vote of the Holders
of a majority in principal amount of the Outstanding Securities of that series;
provided, however, that, except as limited by the proviso to Section 9.02, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Securities of a series
may be adopted at a meeting or an adjourned meeting duly reconvened and at which
a quorum is present as aforesaid by the affirmative vote of the Holders of such
specified percentage in principal amount of the Outstanding Securities of such
series.

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

         SECTION 16.05. DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT
OF MEETINGS.

         (1)      Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of Securities of such series in regard to proof of the
holding of Securities of such series and of the appointment of proxies and in
regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote,
and such other matters concerning the conduct of the meeting as it shall deem
appropriate. Except as otherwise permitted or required by any such regulations,
the holding of Securities shall be proved in the manner specified in Section
1.04 and the appointment of any proxy shall be proved in the manner specified in
Section 1.04. Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the
proof specified in Section 1.04 or other proof.

         (2)      The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders of Securities as provided in Section 16.02(2), in
which case the Company or the Holders of Securities of the series calling the
meeting, as the case may be, shall in like manner appoint a temporary chairman.
A permanent chairman and a permanent secretary of the meeting shall be elected
by vote of the Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting.

         (3)      At any meeting, each Holder of Security of such series or
proxy shall be entitled to one vote for each $1,000 principal amount of
Securities of such series held or represented by him; provided, however, that no
vote shall be cast or counted at any meeting in respect of any Security
challenged as not Outstanding and ruled by the chairman of the meeting to be not
Outstanding. The chairman of the meeting shall have no right to vote, except as
a Holder of a Security of such series or proxy.

                                       58

<PAGE>

         (4)      Any meeting of Holders of Securities of any series duly called
pursuant to Section 16.02 at which a quorum is present may be adjourned from
time to time by Persons entitled to vote a majority in principal amount of the
Outstanding Securities of such series represented at the meeting; and the
meeting may be held as so adjourned without further notice.

         SECTION 16.06. COUNTING VOTES AND RECORDING ACTION OF MEETINGS. The
vote upon any resolution submitted to any meeting of Holders of Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Securities of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record, at least in triplicate,
of the proceedings of each meeting of Holders of Securities of any series shall
be prepared by the secretary of the meeting and there shall be attached to said
record the original reports of the inspectors of votes on any vote by ballot
taken thereat and affidavits by one or more persons having knowledge of the
facts setting forth a copy of the notice of the meeting and showing that said
notice was given as provided in Section 16.02 and, if applicable, Section 16.04.
Each copy shall be signed and verified by the affidavits of the permanent
chairman and secretary of the meeting and one such copy shall be delivered to
the Company, and another to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein stated.

                                  ARTICLE XVII

                            MISCELLANEOUS PROVISIONS

         SECTION 17.01. MATURITY CONSIDERATION. If the Securities of any series
provide for the payment or delivery of any Maturity Consideration other than
money, the Company will pay or deliver, as the case may be, to the Holder of any
such Security, the Maturity Consideration as provided therein. Whenever in this
Indenture there is mentioned the payment of money in respect of the principal of
(or premium, if any) any Security of any series, such mention shall be deemed to
include the payment or delivery of consideration other than money to the extent
that such payment or delivery is permitted or required by the terms of the
Securities of any series. Express mention of the payment or delivery of Maturity
Consideration in any provision herein shall not be construed as excluding
Maturity Consideration other than money where such express mention is not made.

         If any of the Securities of any series are not payable at Maturity for
a fixed principal amount, all references herein to the principal amount of such
Securities shall be deemed to include mention of the aggregate issue price of
such Securities, as the context requires. Express reference to the issue price
or aggregate issue price of any Securities of any series in any provision herein
shall not be construed as excluding such references where such express reference
is not made.

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

                                       59

<PAGE>

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

                                                UNITED PARCEL SERVICE, INC.

                                                By:    /s/ THOMAS W. DELBROOK
                                                      --------------------------
                                                Title: Assistant Treasurer
                                                      --------------------------
                                                Name:  Thomas W. Delbrook
                                                      --------------------------

Attest:

/s/ JEFFREY D. FIRESTONE
--------------------------------
Title: Assistant Secretary
       -------------------------

                                                CITIBANK, N.A., as Trustee

                                                By:    /s/ P. DEFELICE
                                                      --------------------------
                                                Title: Vice President
                                                      --------------------------
                                                Name:  P. DeFelice
                                                      --------------------------

Attest:

/s/ NANCY H. FORTE
--------------------------------
Title: Assistant Vice President
       -------------------------

                                       60

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