Document:

<PAGE>

                                                                    Exhibit 4.13

                               TOYS "R" US, INC.,

                                     Issuer

                              THE BANK OF NEW YORK,

                                     Trustee

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

                                    INDENTURE

                          Dated as of ________ __, 2002

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

                                 Debt Securities

<PAGE>

                                TOYS "R" US, INC.

         Reconciliation and tie showing the location in the Indenture dated as
of _________ __, 2002 of the provisions inserted pursuant to Sections 310 to
318(a), inclusive, of the Trust Indenture Act of 1939, as amended.

<TABLE>
<CAPTION>
Trust Indenture Act Section                                                                       Indenture Section
---------------------------                                                                       -----------------
<S>                                                                                               <C>
Section 310 (a)(1)..............................................................................................609
               (a)(2)...........................................................................................609
               (a)(3)................................................................................Not Applicable
               (a)(4)................................................................................Not Applicable
               (b)...................................................................................608 and 610(d)
               (c) ..................................................................................Not Applicable
Section 311 (a)...................................................................................613(a) and 613(c)
               (b)................................................................................613(b) and 613(c)
               (c) ..................................................................................Not Applicable
Section 312 (a)......................................................................................701 and 702(a)
               (b)...........................................................................................702(b)
               (c)...........................................................................................702(c)
Section 313 (a)..............................................................................................703(a)
               (b)...........................................................................................703(b)
               (c)................................................................................703(a) and 703(b)
               (d)...........................................................................................703(d)
Section 314 (a).................................................................................................704
               (b)...................................................................................Not Applicable
               (c)..............................................................................................102
               (c)(1)...........................................................................................102
               (c)(2)...........................................................................................102
               (c)(3)................................................................................Not Applicable
               (d)...................................................................................Not Applicable
               (e)..............................................................................................102
Section 315 (a)..............................................................................................601(a)
               (b)................................................................................602 and 703(a)(7)
               (c) ..........................................................................................601(b)
               (d)...........................................................................................601(c)
               (d)(1).....................................................................................601(a)(1)
               (d)(2).....................................................................................601(c)(2)
               (d)(3).....................................................................................601(c)(3)
               (e)..............................................................................................514
Section 316 (a)(1)(A).................................................................................. 502 and 512
               (a)(1)(B)........................................................................................513
               (a)(2)................................................................................Not Applicable
               (b)..............................................................................................508
Section 317 (a)(1)    ..........................................................................................503
               (a)(2)...........................................................................................504
               (b).............................................................................................1003
Section 318 (a).................................................................................................107
</TABLE>

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

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                              <C>
PARTIES ..........................................................................................................1

RECITALS .........................................................................................................1

ARTICLE 1 Definitions and Other Provisions of General Application.................................................1
         Section 101.   Definitions...............................................................................1
         Section 102.   Compliance Certificates and Opinions.....................................................12
         Section 103.   Form of Documents Delivered to Trustee...................................................13
         Section 104.   Acts of Holders..........................................................................14
         Section 105.   Notices, Etc., to Trustee and the Company................................................15
         Section 106.   Notice to Holders; Waiver................................................................16
         Section 107.   Conflict with Trust Indenture Act........................................................17
         Section 108.   Effect of Headings and Table of Contents.................................................17
         Section 109.   Successors and Assigns...................................................................17
         Section 110.   Separability Clause......................................................................17
         Section 111.   Benefits of Indenture....................................................................17
         Section 112.   Governing Law............................................................................17
         Section 113.   Non-Business Day.........................................................................18
         Section 114.   Immunity of Incorporators, Stockholders, Officers, Employees and Directors...............18
         Section 115.   Certain Matters Relating to Currencies...................................................18
         Section 116.   Language of Notices, Etc.................................................................19
         Section 117.   No Adverse Interpretation of Other Agreements............................................19
         Section 118.   Duplicate Originals......................................................................19

ARTICLE 2 Security Forms.........................................................................................19
         Section 201.   Forms of Securities......................................................................19
         Section 202.   Form of Trustee's Certificate of Authentication..........................................20
         Section 203.   Securities in Global Form................................................................20
         Section 204.   CUSIP Numbers............................................................................21

ARTICLE 3 The Securities.........................................................................................21
         Section 301.   Title; Payment and Terms.................................................................21
         Section 302.   Denominations and Currencies.............................................................25
         Section 303.   Execution, Authentication, Delivery and Dating...........................................25
         Section 304.   Temporary Securities and Exchange of Securities..........................................27
         Section 305.   Registration, Registration of Transfer and Exchange......................................30
         Section 306.   Mutilated, Destroyed, Lost and Stolen Securities and Coupons.............................33
         Section 307.   Payment of Interest; Interest Rights Preserved...........................................34
         Section 308.   Persons Deemed Owners....................................................................36
         Section 309.   Cancellation.............................................................................37
         Section 310.   Computation of Interest and Determination of Comparable Yield............................37
         Section 311.   Currency and Manner of Payments in Respect of Securities.................................37
         Section 312.   Appointment and Resignation of Currency Determination Agent..............................40
         Section 313.   Ranking..................................................................................40
</TABLE>

                                       i
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<TABLE>
<S>                                                                                                              <C>

ARTICLE 4 Satisfaction and Discharge.............................................................................41
         Section 401.   Option to Effect Legal Defeasance or Covenant Defeasance.................................41
         Section 402.   Legal Defeasance and Discharge...........................................................41
         Section 403.   Covenant Defeasance......................................................................41
         Section 404.   Conditions to Legal or Covenant Defeasance...............................................42
         Section 405.   Satisfaction and Discharge of Indenture..................................................43
         Section 406.   Survival of Certain Obligations..........................................................44
         Section 407.   Acknowledgment of Discharge by Trustee...................................................44
         Section 408.   Application of Trust Moneys..............................................................45
         Section 409.   Repayment to the Company; Unclaimed Money................................................45
         Section 410.   Reinstatement............................................................................45

ARTICLE 5 Remedies...............................................................................................46
         Section 501.   Events of Default........................................................................46
         Section 502.   Acceleration of Maturity; Rescission and Annulment.......................................47
         Section 503.   Collection of Indebtedness and Suits for Enforcement by Trustee..........................48
         Section 504.   Trustee May File Proofs of Claim.........................................................49
         Section 505.   Trustee May Enforce Claims Without Possession of Securities or Coupons...................50
         Section 506.   Application of Money Collected...........................................................50
         Section 507.   Limitation on Suits......................................................................51
         Section 508.   Unconditional Right of Holders to Receive Principal (and Premium, if any)
                        and Interest, if any.....................................................................51
         Section 509.   Restoration of Rights and Remedies.......................................................52
         Section 510.   Rights and Remedies Cumulative...........................................................52
         Section 511.   Delay or Omission Not Waiver.............................................................52
         Section 512.   Control by Holders.......................................................................52
         Section 513.   Waiver of Past Defaults..................................................................53
         Section 514.   Undertaking for Costs....................................................................53
         Section 515.   Waiver of Stay or Extension Laws.........................................................53

ARTICLE 6 The Trustee............................................................................................54
         Section 601.   Certain Duties and Responsibilities......................................................54
         Section 602.   Notice of Defaults.......................................................................55
         Section 603.   Certain Rights of Trustee................................................................55
         Section 604.   Not Responsible for Recitals or Issuance of Securities...................................57
         Section 605.   May Hold Securities......................................................................57
         Section 606.   Money Held in Trust......................................................................57
         Section 607.   Compensation and Reimbursement...........................................................57
         Section 608.   Disqualification; Conflicting Interests..................................................58
         Section 609.   Corporate Trustee Required; Different Trustees for Different Series; Eligibility.........58
         Section 610.   Resignation and Removal; Appointment of Successor........................................59
         Section 611.   Acceptance of Appointment by Successor...................................................60
         Section 612.   Merger, Conversion, Consolidation or Succession to Business..............................61
         Section 613.   Preferential Collection of Claims Against Company........................................62
         Section 614.   Authenticating Agents....................................................................62
</TABLE>

                                       ii
<PAGE>
<TABLE>
<S>                                                                                                              <C>

ARTICLE 7 Holders' Lists and Reports by Trustee and the Company..................................................63
         Section 701.   Company to Furnish Trustee Names and Addresses of Holders................................63
         Section 702.   Preservation of Information; Communications to Holders...................................64
         Section 703.   Reports by Trustee.......................................................................65
         Section 704.   Reports by Company.......................................................................65

ARTICLE 8 Consolidation, Merger, Conveyance or Transfer..........................................................66
         Section 801.   Company May Consolidate, Etc., Only on Certain Terms.....................................66
         Section 802.   Successor Person Substituted.............................................................67

ARTICLE 9 Supplemental Indentures................................................................................67
         Section 901.   Supplemental Indentures Without Consent of Holders.......................................67
         Section 902.   Supplemental Indentures With Consent of Holders..........................................69
         Section 903.   Execution of Supplemental Indentures.....................................................70
         Section 904.   Effect of Supplemental Indentures........................................................70
         Section 905.   Conformity With Trust Indenture Act......................................................70
         Section 906.   Reference in Securities to Supplemental Indentures.......................................70

ARTICLE 10 Covenants.............................................................................................71
         Section 1001.   Payment of Principal (and Premium, if any) and Interest, if any.........................71
         Section 1002.   Maintenance of Office or Agency.........................................................71
         Section 1003.   Money for Securities Payments To Be Held in Trust.......................................73
         Section 1004.   Statements as to Compliance.............................................................74
         Section 1005.   Corporate Existence.....................................................................74
         Section 1006.   Limitation on Liens.....................................................................75
         Section 1007.   Limitation on Sale and Leaseback Transactions...........................................76
         Section 1008.   Waiver of Certain Covenants.............................................................76
         Section 1009.   Payment of Additional Amounts...........................................................76
         Section 1010.   Calculation of Original Issue Discount..................................................79

ARTICLE 11 Redemption of Securities..............................................................................79
         Section 1101.   Applicability of This Article...........................................................79
         Section 1102.   Election to Redeem; Notice to Trustee...................................................79
         Section 1103.   Selection by Trustee of Securities to Be Redeemed.......................................79
         Section 1104.   Notice of Redemption....................................................................80
         Section 1105.   Deposit of Redemption Price.............................................................81
         Section 1106.   Securities Payable on Redemption Date...................................................81
         Section 1107.   Securities Redeemed in Part.............................................................82
         Section 1108.   Tax Redemption; Special Tax Redemption..................................................82

ARTICLE 12 Sinking Funds.........................................................................................85
         Section 1201.   Applicability of This Article...........................................................85
         Section 1202.   Satisfaction of Sinking Fund Payments With Securities...................................85
         Section 1203.   Redemption of Securities for Sinking Fund...............................................86
</TABLE>

                                       iii

<PAGE>
<TABLE>
<S>                                                                                                              <C>

ARTICLE 13 Meetings of Holders of Securities.....................................................................86
         Section 1301.   Purposes for Which Meetings May Be Called...............................................86
         Section 1302.   Call, Notice and Place of Meetings......................................................86
         Section 1303.   Persons Entitled to Vote at Meetings....................................................87
         Section 1304.   Quorum; Action..........................................................................87
         Section 1305.   Determination of Voting Rights; Conduct and Adjournment of Meetings.....................88
         Section 1306.   Counting Votes and Recording Action of Meetings.........................................89

ARTICLE 14 Conversion and Exchange...............................................................................89
         Section 1401.   Applicability of Article................................................................89
         Section 1402.   Conversion Privilege....................................................................89
         Section 1403.   Conversion and Exchange Procedure.......................................................90
         Section 1404.   Fractional Shares.......................................................................90
         Section 1405.   Taxes on Conversion or Exchange.........................................................90
         Section 1406.   Company to Provide Securities Issuable Upon Conversion or Exchange......................90
         Section 1407.   Adjustments.............................................................................90
         Section 1408.   Valuation...............................................................................91
         Section 1409.   Reorganization of Company...............................................................91
         Section 1410.   Trustee's Disclaimer....................................................................91
</TABLE>

EXHIBITS

EXHIBIT A             Form of Certificate To Be Delivered to Euroclear or
                      Clearstream by a Beneficial Owner of Securities, in Order
                      to Receive a Definitive Bearer Security in Exchange for an
                      Interest in a Temporary Global Security or to Exchange an
                      Interest in a Temporary Global Security for an Interest in
                      a Permanent Global Security.

EXHIBIT B             Form of Certificate To Be Given to the Appropriate
                      Trustee by Euroclear or Clearstream Regarding the Exchange
                      of a Temporary Global Security for Definitive Securities
                      or for a Portion of a Permanent Global Security.

EXHIBIT C             Form of Certificate To Be Delivered to Euroclear or
                      Clearstream by a Beneficial Owner of Securities, in Order
                      to Receive Payment on a Temporary Global Security.

EXHIBIT D             Form of Certificate To Be Given to the Appropriate Trustee
                      by Euroclear or Clearstream Regarding Payment on a
                      Temporary Global Security.

                                       iv

<PAGE>

         INDENTURE dated as of _________ __, 2002, between TOYS "R" US, INC., a
corporation duly incorporated and existing under the laws of Delaware and having
its principal executive office at 461 From Road, Paramus, New Jersey 07652
(hereinafter called the "Company") and THE BANK OF NEW YORK, a New York banking
corporation, as Trustee (hereinafter called the "Trustee").

                             RECITALS OF THE COMPANY

         The Company deems it necessary to issue from time to time for its
lawful purposes securities (hereinafter called the "Securities") evidencing its
unsecured indebtedness and has duly authorized the execution and delivery of
this Indenture to provide for the issuance from time to time of the Securities,
unlimited as to principal amount, to have such titles, to bear such rates of
interest, to mature at such time or times and to have such other provisions as
shall be fixed as hereinafter provided.

         All things necessary to make this Indenture a valid agreement of the
Company, in accordance with its terms, have been done, and the Company proposes
to do all things necessary to make the Securities, when executed by the Company
and authenticated and delivered by the Trustee hereunder and duly issued by the
Company, the valid obligations of the Company as hereinafter provided.

                   NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                   ARTICLE 1

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 101. Definitions.

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

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

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

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

<PAGE>

                  (4) 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.

         Certain terms, used principally in Article 3 and Article 6, are defined
in those Articles.

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

         "Affected Security" has the meaning specified in Section 1108(b).

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

         "applicants" has the meaning specified in Section 702(b).

         "Authenticating Agent" means any Person authorized to authenticate and
deliver Securities on behalf of the Trustee for the Securities of any series
pursuant to Section 614.

         "Authorized Newspapers" means a newspaper customarily published at
least once a day for at least five days in each calendar week and of general
circulation in New York City and in London and, to the extent the Securities are
listed on the Luxembourg Stock Exchange and the Luxembourg Stock Exchange shall
so require, in Luxembourg or, if it shall be impracticable in the opinion of the
Trustee for the Securities of the appropriate series to make such publication,
in another capital city in Western Europe. Such publication (which may be in
different newspapers) is expected to be made in the Eastern edition of The Wall
Street Journal, in the London edition of the Financial Times and, if applicable,
in the Luxemburger Wort.

         "Bearer Security" means any Security established pursuant to Section
201 which is payable to bearer.

         "Board of Directors" means, when used with reference to the Company,
either the board of directors or any duly authorized committee of that board or
any director or directors and/or officer or officers to whom that board or
committee shall have duly delegated its authority, of the Company.

         "Board Resolution" means, when used with reference to the Company, (1)
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Company, as the case may be, to have been duly adopted by its Board of
Directors and to be in full force and effect on the date of such certification,
or (2) a certificate signed by the director or directors or officer or officers
to whom the Board of Directors of the Company shall have duly delegated its
authority, and delivered to the Trustee for the Securities of any series.

                                      -2-
<PAGE>

         "Business Day" means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are authorized or
required by law, regulation or executive order to close in The City of New York;
provided, however, that, with respect to Securities not denominated in Dollars,
the day is also not a day on which commercial banks are authorized or required
by law, regulation or executive order to close in the Principal Financial Center
of the country issuing the Foreign Currency or currency unit or, if the Foreign
Currency or currency unit is euro, the day is also a day on which the
Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET)
System is open; provided, further, that, with respect to LIBOR Securities, the
day is also a London Business Day.

         "Certificate of a Firm of Independent Public Accountants" means a
certificate signed by any firm of independent public accountants of recognized
standing selected by the Company. The term "independent" when used with respect
to any specified firm of public accountants means such a firm which (1) is in
fact independent, (2) does not have any direct financial interest or any
material indirect financial interest in the Company or in any other obligor upon
the Securities of any series or in any affiliate of the Company or of such other
obligor, and (3) is not connected with the Company or such other obligor or any
affiliate of the Company or of such other obligor, as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar
functions, but such firm may be the regular auditors employed by the Company.
Whenever it is herein provided that any Certificate of a Firm of Independent
Public Accountants shall be furnished to the Trustee for Securities of any
series, such Certificate shall state that the signer has read this definition
and that the signer is independent within the meaning hereof.

         "Code" means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

         "Clearstream" means Clearstream Banking S.A. or its successor.

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

         "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" and "Company Order" mean a written request or order
signed in the name of the Company, as the case may be by (1) the Chairman of the
Board, a Vice Chairman of the Board, the Chief Executive Officer, the President
or a Vice President and by the Chief Financial Officer, the Treasurer, an
Assistant Treasurer, the Controller, an Assistant Controller, the Secretary or
an Assistant Secretary of the Company, as the case may be, or (2) by any two
Persons designated in a Company Order previously delivered to the Trustee for
Securities of any series by any two of the foregoing officers and delivered to
the Trustee for Securities of any series.

                                      -3-
<PAGE>

         "Component Currency" has the meaning specified in Section 311(e).

         "Consolidated Capitalization" means the total of all the assets
appearing on the consolidated balance sheet of the Company and its Subsidiaries,
as determined as of a date not more than 60 days prior to the happening of an
event for which such determination is being made, less the following:

                  (1) current liabilities; and

                  (2) deferred income taxes.

         "Consolidated Net Tangible Assets" means the total of all the assets
appearing on the consolidated balance sheet of the Company and its Subsidiaries,
as determined as of a date not more than 60 days prior to the happening of an
event for which such determination is being made, less the following:

                  (1) current liabilities;

                  (2) intangible assets, including without limitation, such
         items as goodwill, trademarks, trade names, patents and unamortized
         debt discount and expense carried as an asset on said balance sheet;
         and

                  (3) appropriate adjustments on account of minority interests
         of other Persons holding stock in any Subsidiary of the Company.

         "Conversion Event" means the unavailability of any Foreign Currency or
currency unit due to the imposition of exchange controls or other circumstances
beyond the Company's control.

         "Corporate Trust Office" means the office of the Trustee for Securities
of any series at which at any particular time its corporate trust business shall
be principally administered, which office of The Bank of New York at the date of
the execution of this Indenture, is located at 101 Barclay Street, Floor 21
West, New York, New York 10286, Attention: Corporate Trust Administration, or
such other address as the Trustee may designate from time to time by notice to
the Holders and the Company, or the principal corporate trust office of any
successor Trustee (or such other address as such successor Trustee may designate
from time to time by notice to the Holders and the Company).

         "coupon" means any interest coupon appertaining to a Bearer Security.

         "Covenant Defeasance" has the meaning specified in Section 403.

         "Currency Determination Agent" means, with respect to Securities of any
series, unless otherwise specified in the Securities of any series, a New York
Clearing House bank designated pursuant to Section 301 or Section 312.

         "Debt" means all indebtedness for money borrowed.

                                      -4-
<PAGE>

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

         "Depositary" means, with respect to the Securities of any series
issuable or issued in the form of a Global Security, the Person designated as
Depositary by the Company pursuant to Section 301 until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each Person who is then a
Depositary hereunder, and if at any time there is more than one such Person,
"Depositary" as used with respect to the Securities of any such series shall
mean the Depositary with respect to the Securities of that series.

         "Determination Notice" has the meaning specified in Section 1108(b).

         "Dollars" and the sign "$" mean the currency of the United States of
America as at the time of payment is legal tender for the payment of public and
private debts.

         "Domestic Subsidiary" means any Subsidiary formed under the laws of, or
conducting its principal operations within, the United States of America or any
State or territory thereof.

         "Election Date" has the meaning specified in Section 311(e).

         "Euroclear" means Euroclear Bank S.A./N.V., or its successor, as
operator of the Euroclear system.

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

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
as in force at the date as of which this Indenture was executed; provided,
however, that in the event the Securities Exchange Act of 1934 is amended after
such date, "Exchange Act" means, to the extent required by any such amendment,
the Securities Exchange Act of 1934 as so amended.

         "Exchange Date" has the meaning specified in Section 304.

         "Foreign Currency" means a currency issued and actively maintained as a
country's recognized unit of domestic exchange by the government of any country
other than the United States or by any recognized confederation or association
of such governments, and such term shall include, without limitation, the euro.

         "Global Exchange Agent" has the meaning specified in Section 304.

         "Global Securities" means Securities in global form.

         "Government Obligations" means securities which are (i) direct
obligations of the government which issued the currency in which the Securities
of a particular series are payable (except as provided in Sections 311(b) and
311(d), in which case with respect to Securities for which an election has
occurred pursuant to Section 311(b), or a Conversion Event has occurred as
provided in Section 311(d), such obligations shall be issued in the currency or
currency unit in which such Securities are payable as a result of such election
or Conversion Event) or (ii) obligations of a Person controlled or supervised by
or acting as an agency or instrumentality of the government which issued the
currency in which the Securities of such series are payable (except as provided
in Sections 311(b) and 311(d), in which case with respect to Securities for
which an election has occurred pursuant to Section 311(b), or a Conversion Event
has occurred as provided in Section 311(d)), such obligations shall be issued in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event), the payment of which is unconditionally
guaranteed by such government, which, in either case, are full faith and credit
obligations of such government payable in such currency and are not callable or
redeemable at the option of the issuer thereof.

                                      -5-
<PAGE>

         "Holder" means, when used with respect to any Security, in the case of
a Registered Security the Person in whose name a Security is registered in the
Security Register, and in the case of a Bearer Security the bearer thereof and,
when used with respect to any coupon, means any bearer thereof.

         "Identifying Numbers" has the meaning specified in Section 204.

         "Indenture" means this instrument 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 and shall include the terms of
a particular series of Securities established as contemplated by Section 301.

         "Indexed Security" means any Security as to which the amount of
payments of principal, premium, if any, and/or interest, if any, due thereon is
determined with reference to the rate of exchange between the currency or
currency unit in which the Security is denominated and any other specified
currency or currency unit, to the relationship between two or more currencies or
currency units, to the price of one or more specified securities or commodities,
to one or more securities or commodities exchange indices or other indices or by
other similar methods or formulas, all as specified in accordance with Section
301.

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

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

         "Issue Date" means the date on which the Securities of a particular
series are originally issued under this Indenture.

         "Legal Defeasance" has the meaning specified in Section 402.

         "LIBOR" means, with respect to any series of Securities, the rate
specified as LIBOR for such Securities in accordance with Section 301.

         "LIBOR Currency" means the currency specified pursuant to Section 301
as to which LIBOR will be calculated or, if no currency is specified pursuant to
Section 301, Dollars.

         "LIBOR Security" means any Security which bears interest at a floating
rate calculated with reference to LIBOR.

                                      -6-
<PAGE>

         "Lien" means any mortgage, pledge, lien, encumbrance, charge or
security interest of any kind; provided, however, that none of the following
shall be deemed to be a Lien:

                  (1) pledges or deposits under workmen's compensation,
         unemployment insurance or similar statutes and mechanics', workmen's,
         repairmen's, materialmen's, carriers' or other similar liens arising in
         the ordinary course of business or deposits or pledges to obtain the
         release of any such liens;

                  (2) liens for taxes or assessments or governmental charges or
         levies not yet due or delinquent, or which can thereafter be paid
         without penalty, or which are being contested in good faith by
         appropriate proceedings; landlord's liens on property held under lease;
         and any other liens of a nature similar to those herein above described
         in this clause (ii) which do not, in the opinion of the Company,
         materially impair the use of such property in the operation of the
         business of the Company or a Domestic Subsidiary or the value of such
         property for the purpose of such business; or

                  (3) any easement or similar encumbrance, the existence of
         which does not impair the use of the property subject thereto for the
         purposes for which it is used.

         "London Business Day" means, with respect to any LIBOR Security, a day
on which commercial banks are open for business, including dealings in the LIBOR
Currency, in London.

         "Luxembourg Stock Exchange" means the Luxembourg Stock Exchange, unless
specified with respect to any particular series of Securities.

         "mandatory sinking fund payment" has the meaning specified in Section
1201.

         "Market Exchange Rate" means, with respect to any Foreign Currency or
currency unit on any date, unless otherwise specified in accordance with Section
301, the noon buying rate in The City of New York for cable transfers in such
Foreign Currency or currency unit as certified for customs purposes by the
Federal Reserve Bank of New York for such Foreign Currency or currency unit.

         "Maturity" means, when used with respect to any Security, the date on
which the principal (or, if the context so requires, in the case of an OID
Security, a lesser amount or, in the case of an Indexed Security, an amount
determined in accordance with the specified terms of that Security) of that
Security becomes due and payable as therein or herein provided, whether at the
Stated Maturity or by declaration of acceleration, call for redemption, request
for redemption, repayment at the option of the holder, pursuant to any sinking
fund or otherwise.

         "Notice of Default" has the meaning specified in Section 501(3).

         "Officers' Certificate" means, when used with reference to the Company,
a certificate signed by the Chairman of the Board, a Vice Chairman of the Board,
the Chief Executive Officer, the President or a Vice President (any reference
herein to a Vice President of the Company, as the case may be, shall be deemed
to include any Vice President of the Company, as the case may be, whether or not
designated by a number or a word or words added before or after the title "Vice
President"), and by the Chief Executive Officer, the Treasurer, an Assistant
Treasurer, the Controller, an Assistant Controller, the Secretary or an
Assistant Secretary of the Company, as the case may be, and delivered to the
Trustee for the Securities of any series.

                                      -7-
<PAGE>

         "OID Security" means a Security which provides for an amount (excluding
any amounts attributable to accrued but unpaid interest thereon) less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502.

         "Opinion of Counsel" means, for purposes of Section 1108, a written
opinion of independent legal counsel of recognized standing and, for all other
purposes hereof, means a written opinion of counsel, who may be an employee of
or counsel to the Company or may be other counsel satisfactory to the Trustee
for the Securities of any series.

         "optional sinking fund payment" has the meaning specified in Section
1201.

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

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

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

                  (3) Securities which have been paid pursuant to Section 306 or
         in exchange for or in lieu of which other Securities have been
         authenticated and delivered pursuant to this Indenture, other than any
         such Securities in respect of which there shall have been presented
         proof satisfactory to the Trustee for such Securities that any such
         Securities are held by a bona fide holder in due course;

provided, however, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or are present at
a meeting of Holders for quorum purposes, (a) Securities owned by the Company or
any other obligor upon the Securities or any Affiliate of the Company or such
other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee for such Securities shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which a Responsible Officer of such 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 such Trustee the pledgee's right so to act
with respect to such Securities and that the pledgee is not the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such
other obligor, (b) the principal amount of an OID Security that shall be deemed
to be Outstanding for such purposes shall be the amount of the principal thereof
that would be due and payable as of the date of such determination upon a
declaration of acceleration pursuant to Section 502 and (c) the principal amount
of a Security denominated in a Foreign Currency or currency unit that shall be
deemed to be outstanding for such purposes shall be determined in accordance
with Section 115.

                                      -8-
<PAGE>

         "Paying Agent" means The Bank of New York or any other Person
authorized by the Company to pay the principal of (and premium, if any) or
interest, if any, on any Securities of any series on behalf of the Company.

         "Permitted Liens" means:

                  (1) Liens on any property acquired, constructed or improved by
         the Company or any Domestic Subsidiary after _________ __, 2002, which
         are created or assumed contemporaneously with or within 36 months (48
         months in the case of Liens on warehouses and distribution centers)
         after such acquisition, or completion of construction or improvement
         (or within six months thereafter pursuant to a firm commitment for
         financing arrangements entered into with a lender or investor within
         such 36 month (or, in the case of warehouses and distribution centers,
         48 month) period) to secure or provide for the payment of all or any
         part of the purchase price of such property or the cost of such
         construction or improvement incurred after _______ __, 2002, or, in
         addition to Liens contemplated by clauses (2) or (3) below, Liens on
         any property existing at the time of acquisition thereof;

                  (2) Liens on any property, shares of stock or indebtedness
         existing at the time of acquisition thereof from a Person that is
         merged or consolidated with or into the Company or a Domestic
         Subsidiary;

                  (3) Liens on property of a Person existing at the time such
         Person becomes a Domestic Subsidiary;

                  (4) Liens to secure Debt of a Domestic Subsidiary owed to the
         Company or of the Company or a Domestic Subsidiary to another Domestic
         Subsidiary;

                  (5) Liens in favor of the United States or any State thereof,
         or any department, agency or instrumentality or political subdivision
         of the United States or any state thereof, to secure partial progress,
         advance or other payments pursuant to any contract or statute or to
         secure any indebtedness incurred for the purpose of financing all or
         any part of the purchase price or the cost of constructing or improving
         the property subject to such Lien;

                  (6) any Lien existing on _________ __, 2002; and

                  (7) Liens for the sole purpose of extending, renewing or
         replacing Debt secured by any Lien referred to in the foregoing clauses
         (1) to (6), inclusive, provided, however, that the principal amount of
         Debt secured thereby shall not exceed the principal amount of Debt so
         secured at the time of such extension, renewal or replacement, and that
         such extension, renewal or replacement shall be limited to all or a
         part of the property that secured the Lien so extended, renewed or
         replaced (plus improvements on such property).

                                      -9-
<PAGE>

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

         "Place of Payment" means, when used with respect to the Securities of
any particular series, the place or places where the principal of (and premium,
if any) and interest, if any, on the Securities of that series are payable, as
contemplated by Sections 301.

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

         "Principal Financial Center" means, unless otherwise specified in
accordance with Section 301:

                  (1) the capital city of the country issuing the Foreign
         Currency or currency unit, except that with respect to Dollars,
         Australian dollars, Canadian dollars, Deutsche marks, Dutch guilders,
         South African rand and Swiss francs, the "Principal Financial Center"
         will be The City of New York, Sydney and Melbourne, Toronto, Frankfurt,
         Amsterdam, Johannesburg and Zurich, respectively; or

                  (2) the capital city of the country to which the LIBOR
         Currency relates, except that with respect to Dollars, Canadian
         dollars, Deutsche marks, Dutch guilders, Portuguese escudos, South
         African rand and Swiss francs, the "Principal Financial Center" will be
         The City of New York, Toronto, Frankfurt, Amsterdam, London,
         Johannesburg and Zurich, respectively.

         "Principal Property" means any real property or any permanent
improvement thereon owned by the Company or any Domestic Subsidiary including,
without limitation, any store, warehouse, manufacturing facility or plant.

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

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

         "Registered Security" means any Security established pursuant to
Section 201 which is registered in the Security Register.

                                      -10-
<PAGE>

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

         "Responsible Officer" means, when used with respect to the Trustee for
any series of Securities, any officer within the corporate trust department of
the Trustee, including any vice president, assistant vice president, assistant
treasurer, trust officer or any other officer of such Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of his knowledge of
and familiarity with the particular subject, and who shall have direct
responsibility for the administration of this Indenture.

         "Sale and Leaseback Transaction" means any arrangement with any Person
providing for the leasing to the Company or any Domestic Subsidiary of any
Principal Property (except for temporary leases for a term, including any
renewal thereof, of not more than 36 months and except for leases between the
Company and a Subsidiary or between Subsidiaries), which Principal Property has
been or is to be sold or transferred by the Company or such Domestic Subsidiary
to such Person.

         "Securities" means securities evidencing unsecured indebtedness of the
Company authenticated and delivered under this Indenture.

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

         A "series" of Securities means all Securities denoted as part of the
same series authorized by or pursuant to a particular Board Resolution.

         "Special Record Date" means, with respect to the payment of any
Defaulted Interest on the Registered Securities of any series, a date fixed by
the Trustee for such series pursuant to Section 307.

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

         "Subsidiary" means with respect to any Person, any corporation,
association or other business entity of which more than 50% of the outstanding
Voting Stock is owned, directly or indirectly, by such Person or one or more
Subsidiaries of such Person (or a combination thereof). Unless otherwise
specified, "Subsidiary" means a direct or indirect Subsidiary of the Company.

         "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
by the Trust Indenture Reform Act of 1990, as in force at the date as of which
this Indenture was executed; provided, however, that in the event the Trust
Indenture Act is amended after such date, "Trust Indenture Act" means, to the
extent required by any such amendment, the Trust Indenture Act of 1939 as so
amended.

                                      -11-
<PAGE>

         "Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument and, subject to the provisions of Article 6 hereof,
shall also include its successors and assigns as Trustee hereunder. If there
shall be at one time more than one Trustee hereunder, "Trustee" shall mean each
such Trustee and shall apply to each such Trustee only with respect to those
series of Securities with respect to which it is serving as Trustee.

         "United States" means, unless otherwise specified with respect to
Securities of any series, the United States of America (including the states and
the District of Columbia), its territories, its possessions (which include, at
the date of this Indenture, Puerto Rico, the U.S. Virgin Islands, Guam, American
Samoa, Wake Island and the Northern Mariana Islands) and other areas subject to
its jurisdiction.

         "United States Alien" has the meaning specified in Section 1009

         "Value" means, with respect to a Sale and Leaseback Transaction, as of
any particular time, the amount equal to the greater of (i) the net proceeds
from the sale or transfer of the property leased pursuant to such Sale and
Leaseback Transaction or (ii) the sum of all costs of the Company or any
Domestic Subsidiary incurred in connection with the acquisition of such property
and the construction of any improvements thereon, as determined in good faith by
the Company or such Domestic Subsidiary at the time of entering into such Sale
and Leaseback Transaction, in either case multiplied by a fraction, the
numerator of which shall be equal to the number of full years of the term of the
lease that is part of such Sale and Leaseback Transaction remaining at the time
of determination and the denominator of which shall be equal to the number of
full years of such term, without regard to any renewal or extension options
contained in such lease.

         "Voting Stock" means, with respect to the capital stock or equivalent
interests of any Person, stock of any class or classes (however designated) or
other interests having by the terms thereof ordinary voting power to elect a
majority of the members of the board of directors (or other governing body) of
such Person other than stock or other interests having such power only by reason
of the happening of a contingency.

         "Yield to Maturity" means, when used with respect to any OID Security,
the yield to maturity, if any, set forth on the face thereof.

Section 102. Compliance Certificates and Opinions.

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

                                      -12-
<PAGE>

         Every certificate (other than certificates provided pursuant to Section
1004 or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

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

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

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

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

Section 103. Form of Documents Delivered to Trustee.

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

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

         Any such Opinion of Counsel or certificate or representations 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 unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

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

                                      -13-
<PAGE>

Section 104. Acts of Holders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agent duly
appointed in writing. If Securities of a series are issuable as Bearer
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of such series may, alternatively, be embodied in and evidenced by the
record of Holders of Securities of such series voting in favor thereof, either
in person or by proxies duly appointed in writing, at any meeting of Holders of
Securities of such series duly called and held in accordance with the provisions
of Article 13, or a combination of such instruments and any such record. Except
as herein otherwise expressly provided, such action shall become effective when
such instrument or instruments or record or both are delivered to the Trustee
for the appropriate series of Securities and, where it is hereby expressly
required, to the Company. Such instrument or instruments and any such record
(and the action embodied therein and evidenced thereby) are herein sometimes
referred to as the "Act" of the Holders signing such instrument or instruments
or so voting at any such meeting. Proof of execution of any such instrument or
of a writing appointing any such agent, or of the holding by any Person of a
Security, shall be sufficient for any purpose of this Indenture and (subject to
Section 601) conclusive in favor of the Trustee for the appropriate series of
Securities and the Company and any agent of such Trustee or the Company, if made
in the manner provided in this Section. The record of any meeting of Holders of
Securities shall be proved in the manner provided in Section 1306.

         The Company may at its discretion set a record date for purposes of
determining the identity of Holders of Registered Securities entitled to vote or
consent to any action by vote or consent authorized or permitted under this
Indenture, but the Company shall have no obligation to do so. If not set by the
Company prior to the first solicitation of Holders of Registered Securities of a
particular series made by any Person in respect of any such action, or, in the
case of any such vote, prior to such vote, the record date for any such action
or vote shall be 30 days prior to the first solicitation of such vote or
consent. Upon the fixing of such a record date, those persons who were Holders
of Registered Securities at such record date (or their duly designated proxies),
and only those persons, shall be entitled with respect to such Registered
Securities to take such action by vote or consent or to revoke any vote or
consent previously given, whether or not such persons continue to be Holders
after such record date.

         (b) 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 the certificate of any 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 an officer of a corporation or association or a member of a
partnership, or an official of a public or governmental body, on behalf of such
corporation, association, partnership or public or governmental body or by a
fiduciary, such certificate or affidavit shall also constitute sufficient proof
of his authority.

                                      -14-
<PAGE>

         (c) The fact and date of the execution by any Person 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 for the appropriate series
of Securities deems reasonably sufficient.

         (d) The principal amount and serial numbers of Registered Securities
held by any Person, and the date of holding the same, shall be proved by the
Security Register.

         (e) The ownership, principal amount and serial numbers of Bearer
Securities held by any Person, and the date of holding the same, may be proved
by the production of such Bearer Securities or by a certificate executed, as
depositary, by any trust company, bank, banker or other depositary, wherever
situated, if such certificate shall be deemed by the Trustee for such Securities
to be satisfactory, showing that at the date therein mentioned such Person had
on deposit with such depositary, or exhibited to it, the Bearer Securities
therein described; or such facts may be proved by the certificate or affidavit
of the Person holding such Bearer Securities, if such certificate or affidavit
is deemed by such Trustee to be satisfactory. The Trustee for such Securities
and the Company may assume that such ownership of any Bearer Security continues
until (1) another certificate or affidavit bearing a later date issued in
respect of the same Bearer Security is produced, (2) such Bearer Security is
produced to such Trustee by some other Person, (3) such Bearer Security is
surrendered in exchange for a Registered Security, or (4) such Bearer Security
is no longer Outstanding. The ownership, principal amount and serial numbers of
Bearer Securities held by any Person, and the date of holding the same, may also
be proved in any other manner which the Company and the Trustee for such
Securities deem sufficient.

         (f) Subject to Section 115, in determining whether the Holders of the
requisite principal amount of Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver under this
Indenture, the principal amount of an OID Security that may be counted in making
such determination and that shall be deemed to be Outstanding for such purposes
shall be equal to the amount of the principal thereof that would be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502 at the time the taking of such action by the Holders of such
requisite principal amount is evidenced to the Trustee for such Securities.

         (g) Any request, demand, authorization, direction, notice, consent,
waiver or other action by 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 for such
Securities, the Security Registrar, any Paying Agent or the Company in reliance
thereon, whether or not notation of such action is made upon such Security.

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

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

                  (1) the Trustee for a series of Securities 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 such Trustee at its
         Corporate Trust Office, Attention: Corporate Trust Administration, or
         if sent by facsimile transmission, to a facsimile number provided by
         the Trustee, with a copy mailed, first class postage prepaid to the
         Trustee addressed to it as provided above, or

                                      -15-
<PAGE>

                  (2) the Company by such Trustee or by any Holder shall be
         sufficient for every purpose hereunder (except as provided in paragraph
         (3) Section 501) if furnished in writing and mailed, first class
         postage prepaid, addressed in the case of the Company to it at the
         address of its principal office specified in the first paragraph of
         this instrument or at any other address previously furnished in writing
         to such Trustee by the Company, or if sent by facsimile transmission,
         to a facsimile number provided to the Trustee by the Company, with a
         copy mailed, first class postage prepaid, to the Company addressed to
         it as provided above.

Section 106. Notice to Holders; Waiver.

         Where this Indenture provides for notice to Holders of any event, (1)
such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Registered Securities 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, and not
earlier than the earliest date, prescribed for the giving of such notice; and
(2) such notice shall be sufficiently given (unless otherwise herein expressly
provided) to Holders of Bearer Securities who have filed their names and
addresses with the Trustee for such purpose within the previous two years if in
writing and mailed, first class postage prepaid, to each such Holder at his
address as so filed not later than the latest date and not earlier than the
earliest date prescribed for the giving of such notice, or to all other Holders
of Bearer Securities if published in an Authorized Newspaper on a Business Day
at least twice, the first such publication to be not earlier than the earliest
date, and the second such publication to be not later than the latest date,
prescribed herein for the giving of such notice. Any such notice by publication
shall be deemed to have been given on the date of the first such publication.

         In any case where notice to Holders of Registered Securities is given
by mail, neither the failure to mail such notice, nor any defect in any notice
so mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice to Holders of Bearer Securities
given as provided herein. Any notice mailed in the manner prescribed by this
Indenture shall conclusively be deemed to have been given whether or not
received by any particular Holder. 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 to Holders of Registered Securities by mail, then such
notification as shall be made with the approval of the Trustee for such
Securities shall constitute a sufficient notification for every purpose
hereunder, which such approval may not be unreasonably withheld.

         In case by reason of the suspension of any Authorized Newspaper or
Authorized Newspapers or by reason of any other cause it shall be impracticable
to publish any notice to Holders of Bearer Securities as provided above, then
such notification to Holders of Bearer Securities as shall be made with the
approval of the Trustee for such Securities shall constitute sufficient notice
to such Holders for every purpose hereunder, which such approval may not be
unreasonably withheld. Neither the failure to give notice by publication to
Holders of Bearer Securities as provided above, nor any defect in any notice so
published, shall affect the sufficiency of any notice to Holders of Registered
Securities given as provided herein.

                                      -16-
<PAGE>

         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 for such
Securities, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

Section 107. Conflict with Trust Indenture Act.

         If any provision hereof limits, qualifies or conflicts with the duties
imposed by any of Sections 310 through 317, inclusive, of the Trust Indenture
Act through the operation of Section 318(c) thereof, such imposed duties shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the provision
shall be deemed to apply to the Indenture as so modified or excluded, as the
case may be.

Section 108. Effect of Headings and Table of Contents.

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

Section 109. Successors and Assigns.

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

Section 110. Separability Clause.

         In case any provision in this Indenture or in the Securities or coupons
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 111. Benefits of Indenture.

         Nothing in this Indenture or in the Securities or in any coupons
appertaining thereto, expressed or implied, shall give to any Person, other than
the parties hereto, any Paying Agent, any Security Registrar, any Authenticating
Agent and their successors hereunder and the Holders of Securities or coupons,
any benefit or any legal or equitable right, remedy or claim under this
Indenture.

Section 112. Governing Law.

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

                                      -17-
<PAGE>

Section 113. Non-Business Day.

         Unless otherwise stated with respect to Securities of any series, in
any case where any Interest Payment Date, Redemption Date or Stated Maturity of
a Security of any particular series shall not be a Business Day at any Place of
Payment with respect to Securities of that series, then (notwithstanding any
other provision of this Indenture or of the Securities or coupons) payment of
principal of (and premium, if any) and interest, if any, with respect to such
Security 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 or Redemption Date, or at the
Stated Maturity, provided that no interest shall accrue for the period from and
after such Interest Payment Date, Redemption Date or Stated Maturity, as the
case may be; provided that if the Securities of such series are LIBOR
Securities, in any case where any Interest Payment Date of such series of LIBOR
Securities (other than a Redemption Date or Stated Maturity) shall not be a
Business Day at any Place of Payment with respect to Securities of that series
and the next succeeding Business Day is in the next succeeding calendar month,
then payment of interest, if any, with respect to such Security shall be made at
such Place of Payment on the next preceding Business Day.

Section 114. Immunity of Incorporators, Stockholders, Officers, Employees and
Directors.

         No recourse shall be had for the payment of the principal of (and
premium, if any), or the interest, if any, on any Security or coupon of any
series, or for any claim based thereon, or upon any obligation, covenant or
agreement of this Indenture, against any incorporator, stockholder, officer,
employee or director, as such, past, present or future, of the Company or of any
predecessor or successor Person, either directly or indirectly through the
Company or any predecessor or successor Person, 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 and coupons of each series are solely corporate
obligations, and that no personal liability whatever shall attach to, or is
incurred by, any incorporator, stockholder, officer, employee or director, past,
present or future, of the Company or of any predecessor or successor Person,
either directly or indirectly through the Company or any predecessor or
successor Person, 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 coupons of any
series, or to be implied herefrom or therefrom; and that all such personal
liability is hereby expressly released and waived as a condition of, and as part
of the consideration for, the execution of this Indenture and the issuance of
the Securities and coupons of each series.

Section 115. Certain Matters Relating to Currencies.

         Subject to Section 311, each reference to any currency or currency unit
in any Security, or in the Board Resolution or supplemental indenture relating
thereto, shall mean only the referenced currency or currency unit and no other
currency or currency unit.

         The Trustee shall segregate moneys, funds and accounts held by the
Trustee in one currency or currency unit from any moneys, funds or accounts held
in any other currencies or currency units, notwithstanding any provision herein
which would otherwise permit the Trustee to commingle such amounts.

                                      -18-
<PAGE>

         Whenever any action or Act is to be taken hereunder by the Holders of
Securities denominated in a Foreign Currency or currency unit, then for purposes
of determining the principal amount of Securities held by such Holders, the
aggregate principal amount of the Securities denominated in a Foreign Currency
or currency unit shall be deemed to be that amount of Dollars that could be
obtained for such principal amount on the basis of a spot rate of exchange
specified to the Trustee for such series in an Officers' Certificate for such
Foreign Currency or currency unit into Dollars as of the date the taking of such
action or Act by the Holders of the requisite percentage in principal amount of
the Securities is evidenced to such Trustee.

Section 116. Language of Notices, Etc.

         Any request, demand, authorization, direction, notice, consent or
waiver required or permitted under this Indenture shall be in the English
language, and any published notice may also be in an official language of the
country of publication.

Section 117. No Adverse Interpretation of Other Agreements.

         This Indenture may not be used to interpret another indenture or loan
or debt agreement of the Company or any Subsidiary of the Company, and no such
indenture or loan or debt agreement may be used to interpret this Indenture.

Section 118. Duplicate Originals.

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

                                   ARTICLE 2

                                 SECURITY FORMS

Section 201. Forms of Securities.

         The Registered Securities, if any, of each series and the Bearer
Securities, if any, of each series and related coupons shall be in such form or
forms (including global form) as shall be established by or pursuant to a Board
Resolution of the Company, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture or any indenture supplemental hereto and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as the Company may reasonably deem appropriate and as may be required to
comply with any law, with any rule or regulation made pursuant thereto, with any
rules of any securities exchange, automated quotation system or clearing agency
or to conform to usage, as may, consistently herewith, be determined by the
officers executing such Securities or coupons, as evidenced by their execution
of such Securities or coupons. If temporary Securities of any series are issued
in global form as permitted by Section 304, the form thereof shall be
established as provided in the preceding sentence.

                                      -19-
<PAGE>

         Unless otherwise specified as contemplated by Section 301, Bearer
Securities shall have interest coupons attached.

         The definitive Securities and coupons, if any, shall be printed,
lithographed or engraved or produced by any combination of these methods on a
steel engraved border or steel engraved borders or may be produced in any other
manner, all as determined by the officers executing such Securities or coupons,
as evidenced by their execution thereof.

Section 202. Form of Trustee's Certificate of Authentication.

         Subject to Section 614, the Certificate of Authentication on all
Securities shall be in substantially the following form:

                  "This is one of the Securities of the series designated
therein described in the within-mentioned Indenture.

         Dated: _________________

                                      THE BANK OF NEW YORK,
                                      as Trustee

                                      By
                                         ---------------------------------------
                                         Authorized Signatory"

Section 203. Securities in Global Form.

         If any Security of a series is issuable in global form, such Security
may provide that it shall represent the aggregate amount of Outstanding
Securities from time to time endorsed thereon and may also provide that the
aggregate amount of Outstanding Securities represented thereby may from time to
time be increased or reduced to reflect exchanges. Any endorsement of a Security
in global form to reflect the amount, or any increase or decrease in the amount,
of Outstanding Securities represented thereby shall be made by the Trustee and
in such manner as shall be specified in such Security. Any instructions by the
Company with respect to a Security in global form, after its initial issuance,
shall be in writing but need not comply with Section 102.

         Global Securities may be issued in either registered or bearer form and
in either temporary or permanent form.

         Any Security issued in global form shall bear a legend substantially to
the following effect and such other legend or legends as may be required by the
Depositary:

         THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
         DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
         DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY
         THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
         NOMINEE OF SUCH SUCCESSOR DEPOSITARY, UNLESS AND UNTIL THIS SECURITY IS
         EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM.

                                      -20-
<PAGE>

Section 204. CUSIP Numbers.

         The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use) or other identifying numbers ("Identifying Numbers") and, if
so, the Trustee shall use such Identifying 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 Identifying 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 identifying 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 Identifying Numbers.

                                   ARTICLE 3

                                 THE SECURITIES

Section 301. Title; Payment and Terms.

         The aggregate principal amount of Securities which may be authenticated
and delivered and Outstanding under this Indenture is unlimited. The Securities
may be issued up to the aggregate principal amount of Securities from time to
time authorized by or pursuant to Board Resolutions of the Company.

         The Securities may be issued in one or more series, each of which shall
be issued pursuant to Board Resolutions of the Company. There shall be
established in one or more Board Resolutions or pursuant to one or more Board
Resolutions of the Company and, subject to Section 303, set forth in, or
determined in the manner provided in, an Officers' Certificate of the Company,
or established in one or more supplemental indentures hereto, prior to the
issuance of Securities of any series all or any of the following, as applicable
(each of which, if so provided, may be determined from time to time by the
Company with respect to unissued Securities of that series and set forth in the
Securities of that series when issued from time to time):

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

                  (2) any limit upon the aggregate principal amount of the
         Securities of that 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 that series pursuant to Section 304, 305, 306, 906
         or 1107);

                  (3) whether Securities of that series are to be issuable as
         Registered Securities, Bearer Securities or both and any restrictions
         on the exchange of one form of Securities for another and on the offer,
         sale and delivery of the Securities in either form;

                                      -21-
<PAGE>

                  (4) the date or dates (or manner of determining the same) on
         which the principal of the Securities of that series is payable (which,
         if so provided in such Board Resolutions, may be determined by the
         Company from time to time and set forth in the Securities of the series
         issued from time to time);

                  (5) the rate or rates (or the manner of calculation thereof)
         at which the Securities of that series shall bear interest (if any),
         the date or dates from which such interest shall accrue, the Interest
         Payment Dates on which such interest shall be payable (or manner of
         determining the same) and the Regular Record Date for the interest
         payable on any Registered Securities on any Interest Payment Date and
         the extent to which, or the manner in which, any interest payable on a
         temporary Global Security on an Interest Payment Date will be paid if
         other than in the manner provided in Section 307;

                  (6) the place or places where, subject to the provisions of
         Section 1002, the principal of (and premium, if any) and interest, if
         any, on Securities of that series shall be payable, any Registered
         Securities of that series may be surrendered for registration of
         transfer, any Securities of that series may be surrendered for
         exchange, and notices and demands to or upon the Company in respect of
         the Securities of that series and this Indenture may be served;

                  (7) the period or periods within which (or manner of
         determining the same), the price or prices at which (or manner of
         determining the same), the currency or currency unit in which, and the
         terms and conditions upon which Securities of that series may be
         redeemed, in whole or in part, at the option of the Company, and any
         remarketing arrangements with respect to the Securities of that series;

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

                  (9) if the currency in which the Securities of that series
         shall be issuable is Dollars, the denominations in which any Registered
         Securities of that series shall be issuable, if other than
         denominations of $1,000 and any integral multiple thereof, and the
         denominations in which any Bearer Securities of that series shall be
         issuable, if other than the denomination of $5,000;

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

                  (11) any Events of Default and covenants of the Company with
         respect to the Securities of that series, whether or not such Events of
         Default or covenants are consistent with the Events of Default or
         covenants set forth herein (or the inapplicability of any Events of
         Default or covenants of the Company with respect to the Securities of
         that series);

                                      -22-
<PAGE>

                  (12) if a Person other than The Bank of New York is to act as
         Trustee for the Securities of that series, the name and location of the
         Corporate Trust Office of such Trustee;

                  (13) if other than Dollars, the currency or currency unit in
         which payment of the principal of (and premium, if any) or interest, if
         any, on the Securities of that series shall be made or in which the
         Securities of that series shall be denominated and the particular
         provisions applicable thereto in accordance with, in addition to or in
         lieu of the provisions of Section 311;

                  (14) if the principal of (and premium, if any) and interest,
         if any, on the Securities of that series are to be payable, at the
         election of the Company or a Holder thereof, in a currency or currency
         unit other than that in which such Securities are denominated or stated
         to be payable, in accordance with provisions in addition to or in lieu
         of, or in accordance with the provisions of, Section 311, the period or
         periods within which (including the Election Date), and the terms and
         conditions upon which, such election may be made, and the time and
         manner of determining the exchange rate between the currency or
         currency unit in which such Securities are denominated or stated to be
         payable and the currency or currency unit in which such Securities are
         to be so payable;

                  (15) the designation of the original Currency Determination
         Agent, if any;

                  (16) if the Securities of such series are issuable as Indexed
         Securities, the manner in which the amount of payments of principal,
         premium, if any, and interest, if any, on that series shall be
         determined;

                  (17) if the Securities of that series do not bear interest,
         the applicable dates for purposes of Section 701;

                  (18) if other than as set forth in Article 4, provisions for
         the satisfaction and discharge of this Indenture with respect to the
         Securities of that series;

                  (19) the date as of which any Bearer Securities of that series
         and any Global Security representing Outstanding Securities of that
         series shall be dated if other than the date of original issuance of
         the first Security of that series to be issued;

                  (20) the application, if any, of Section 1009 to the
         Securities of that series;

                  (21) whether the Securities of the series shall be issued in
         whole or in part in the form of a Global Security or Securities and, in
         such case, the Depositary and Global Exchange Agent, if any, for such
         Global Security or Securities, whether such global form shall be
         permanent or temporary and, if applicable, the Exchange Date;

                                      -23-
<PAGE>

                  (22) if Securities of the series are to be issuable initially
         in the form of a temporary Global Security, the circumstances under
         which the temporary Global Security can be exchanged for definitive
         Securities and whether the definitive Securities will be Registered
         Securities and/or Bearer Securities and will be in global form and
         whether interest in respect of any portion of such Global Security
         payable in respect of an Interest Payment Date prior to the Exchange
         Date shall be paid to any clearing organization with respect to a
         portion of such Global Security held for its account and, in such
         event, the terms and conditions (including any certification
         requirements) upon which any such interest payment received by a
         clearing organization will be credited to the Persons entitled to
         interest payable on such Interest Payment Date if other than as
         provided in this Article 3;

                  (23) whether the Securities of the series will be convertible
         or exchangeable into other securities of the Company or another Person,
         and if so, the terms and conditions upon which such Securities will be
         so convertible or exchangeable, including the conversion price or
         exchange rate and the conversion or exchange period, and any additions
         or changes to the Indenture with respect to the Securities of such
         series to permit or facilitate such conversion or exchange;

                  (24) the extent and manner, if any, to which payment on or in
         respect of Securities of that series will be subordinated to the prior
         payment of other liabilities and obligations of the Company;

                  (25) the forms of the Securities of that series;

                  (26) whether payment of any amount due under such Securities
         will be guaranteed by one or more guarantors, including Subsidiaries of
         the Company; and

                  (27) any other terms of that series (which terms shall not be
         inconsistent with the provisions of this Indenture).

         All Securities of any particular series and the coupons appertaining to
any Bearer Securities of such series shall be substantially identical except as
to denomination, rate of interest, Stated Maturity and the date from which
interest, if any, shall accrue, and except as may otherwise be provided in or
pursuant to such Board Resolutions and set forth in such Officers' Certificate
relating thereto or provided in or pursuant to any supplemental indenture
hereto. The terms of such Securities, as set forth above, may be determined by
the Company from time to time if so provided in or established pursuant to the
authority granted in Board Resolutions. All Securities of any one series need
not be issued at the same time, and unless otherwise provided, a series may be
reopened for issuance of additional Securities of such series.

         Prior to the delivery of a Security of any series in any such form to
the Trustee for the Securities of such series for authentication, the Company
shall deliver to such Trustee the following:

                  (1) The Board Resolutions of the Company by or pursuant to
         which such form of Security have been approved and, if applicable, the
         supplemental indenture by or pursuant to which such form of Security
         has been approved;

                                      -24-
<PAGE>

                  (2) An Officers' Certificate of the Company dated the date
         such Certificate is delivered to such Trustee stating that all
         conditions precedent provided for in this Indenture relating to the
         authentication and delivery of Securities in such forms have been
         complied with; and

                  (3) An Opinion of Counsel stating that Securities in such
         forms, together with any coupons appertaining thereto, when (a)
         completed by appropriate insertions and executed and delivered by the
         Company to such Trustee for authentication in accordance with this
         Indenture, (b) authenticated and delivered by such Trustee in
         accordance with this Indenture within the authorization as to aggregate
         principal amount established from time to time by the Board of
         Directors of the Company, and (c) sold in the manner and subject to the
         conditions specified in such Opinion of Counsel, will be the legal,
         valid and binding obligations of the Company, subject to the effects of
         applicable bankruptcy, reorganization, fraudulent conveyance,
         moratorium, insolvency and other similar laws generally affecting
         creditors' rights, to general equitable principles, to an implied
         covenant of good faith and fair dealing and to such other
         qualifications as such counsel shall conclude do not materially affect
         the rights of Holders of such Securities.

Section 302. Denominations and Currencies.

         Unless otherwise provided with respect to any series of Securities as
contemplated by Section 301, any Registered Securities of a series other than
Registered Securities issued in global form (which may be of any denomination)
shall be issuable in denominations of $1,000 and any integral multiple thereof,
and any Bearer Securities of a series other than Bearer Securities issued in
global form (which may be of any denomination) shall be issuable in the
denomination of $5,000, or the equivalent amounts thereof in the case of
Registered Securities and Bearer Securities denominated in a Foreign Currency or
currency unit.

Section 303. Execution, Authentication, Delivery and Dating.

         The Securities and any related coupons shall be executed on behalf of
the Company by its Chairman of the Board, a Vice Chairman of the Board, or its
President, its Chief Executive Officer or one of its Vice Presidents. The
Securities shall be so executed and attested to by its Secretary or any one of
its Assistant Secretaries. The signature of any of these officers on the
Securities may be manual or facsimile.

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

                                      -25-
<PAGE>

         At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities of any series together with
any coupons appertaining thereto, executed by the Company to the Trustee for the
Securities of such series for authentication, together with a Company Order for
the authentication and delivery of such Securities, and such Trustee, in
accordance with the Company Order, shall authenticate and deliver such
Securities; provided, however, that, during the "restricted period" (as defined
in Section 1.163-5(c)(2)(i)(D)(7) of the United States Treasury Regulations), no
Bearer Security shall be mailed or otherwise delivered to any location in the
United States; and provided, further, that a Bearer Security may be delivered
outside the United States in connection with its original issuance only if the
Person entitled to receive such Bearer Security shall have furnished to the
Trustee for the Securities of such series a certificate substantially in the
form set forth in Exhibit A to this Indenture. If any Security shall be
represented by a permanent Global Security, then, for purposes of this Section
and Section 304, the notation of a beneficial owner's interest therein upon
original issuance of such Security or upon exchange of a portion of a temporary
Global Security shall be deemed to be delivery in connection with the original
issuance of such beneficial owner's interest in such permanent Global Security.
Except as permitted by Section 306 or 307, the Trustee for the Securities of a
series shall not authenticate and deliver any Bearer Security unless all
appurtenant coupons for interest then matured other than matured coupons in
default have been detached and cancelled. If all the Securities of any one
series are not to be issued at one time and if a Board Resolution relating to
such Securities shall so permit, such Company Order may set forth procedures
acceptable to the Trustee for the issuance of such Securities, including,
without limitation, procedures with respect to interest rate, Stated Maturity,
date of issuance and date from which interest, if any, shall accrue.

         Notwithstanding any contrary provision herein, if all Securities of a
series are not to be originally issued at one time, it shall not be necessary to
deliver the Board Resolution, Officers' Certificate and Opinion of Counsel
otherwise required pursuant to Sections 102 and 301 at or prior to the time of
authentication of each Security of such series if such documents are delivered
at or prior to the authentication upon original issuance of the first Security
of such series to be issued.

         Each Registered Security shall be dated the date of its authentication,
and, unless otherwise specified as contemplated by Section 301, each Bearer
Security shall be dated as of the date of original issuance of the first
Security of such series to be issued.

         No Security or coupon appertaining thereto 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 manually executed by the Trustee for such Security
or on its behalf pursuant to Section 614, and such certificate upon any Security
shall be conclusive evidence, and the only evidence, that such Security has been
duly authenticated and delivered hereunder.

         In case any Securities shall have been authenticated, but not
delivered, by the Trustee or the Authenticating Agent for such series then in
office, any successor by merger, conversion or consolidation to such Trustee, or
any successor Authenticating Agent, as the case may be, may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee or successor Authenticating Agent had itself
authenticated such Securities.

         Each Depositary designated pursuant to Section 301 for a Global
Security in registered form must, at the time of its designation and at all
times while it serves as Depositary, be a clearing agency registered under the
Exchange Act and any other applicable statute or regulation.

                                      -26-
<PAGE>

         The Trustee shall have the right to decline to authenticate and deliver
any Securities under this Section 303 if the Trustee, being advised by counsel,
reasonably determines that such action may not lawfully be taken or if the
Trustee in good faith, being advised by counsel, shall determine that such
action would expose the Trustee to personal liability to existing Holders.

Section 304. Temporary Securities and Exchange of Securities.

         Pending the preparation of definitive Securities of any particular
series, the Company may execute, and upon Company Order the Trustee for the
Securities of such series shall authenticate and deliver, in the manner
specified in Section 303, temporary Securities which are printed, lithographed,
typewritten, photocopied or otherwise produced, in any denomination, with like
terms and conditions as the definitive Securities of like series in lieu of
which they are issued in registered form or, if authorized, in bearer form with
one or more coupons or without coupons, 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.
Any such temporary Securities may be in global form, representing such of the
Outstanding Securities of such series as shall be specified therein.

         Except in the case of temporary Securities in global form (which shall
be exchanged only in accordance with the provisions of the following paragraphs
or as otherwise provided in or pursuant to a Board Resolution or a supplemental
indenture), if temporary Securities of any particular series are issued, the
Company will cause definitive Securities of that series to be prepared without
unreasonable delay. After the preparation of such definitive Securities, the
temporary Securities of such series shall be exchangeable for such definitive
Securities of a like Stated Maturity and with like terms and provisions upon
surrender of the temporary Securities of such series, together with all
unmatured and matured coupons in default, if any, 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
particular series, the Company shall execute and (in accordance with a Company
Order delivered at or prior to the authentication of the first definitive
Security of such series) the Trustee for the Securities of such series or the
Global Exchange Agent shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of authorized denominations of the
same series and of a like Stated Maturity and with like terms and provisions;
provided, however, unless otherwise specified pursuant to Section 301, no
definitive Bearer Security shall be delivered in exchange for a temporary
Registered Security; and provided, further, that a definitive Bearer Security
shall be delivered in exchange for a temporary Bearer Security only in
compliance with the conditions set forth in Section 303. Until exchanged as
hereinabove provided, the temporary Securities of any series shall in all
respects be entitled to the same benefits under this Indenture as definitive
Securities of the same series and with like terms and conditions, except as to
payment of interest, if any, authenticated and delivered hereunder.

         Any temporary Global Security and any permanent Global Security shall,
unless otherwise provided therein, be delivered to a Depositary designated
pursuant to Section 301.

                                      -27-
<PAGE>

         Without unnecessary delay but in any event not later than the date
specified in or determined pursuant to the terms of any such temporary Global
Security (the "Exchange Date"), the Securities represented by any temporary
Global Security of a series of Securities issuable in bearer form may be
exchanged for definitive Securities (subject to the second succeeding paragraph)
or Securities to be represented thereafter by one or more permanent Global
Securities, without interest coupons. On or after the Exchange Date such
temporary Global Security shall be surrendered by the Depositary to the Trustee
for such Security, as the Company's agent for such purpose, or the agent
appointed by the Company pursuant to Section 301 to effect the exchange of the
temporary Global Security for definitive Securities (the "Global Exchange
Agent"), and following such surrender, such Trustee or the Global Exchange Agent
(as authorized by the Trustee as an Authenticating Agent pursuant to Section
614) shall (1) endorse the temporary Global Security to reflect the reduction of
its principal amount by an equal aggregate principal amount of such Security,
(2) endorse the applicable permanent Global Security, if any, to reflect the
initial amount, or an increase in the amount of Securities represented thereby,
(3) manually authenticate such definitive Securities or such permanent Global
Security, as the case may be, (4) subject to Section 303, deliver such
definitive Securities to the Holder thereof or, as the case may be, deliver such
permanent Global Security to the Depositary to be held outside the United States
for the accounts of Euroclear and Clearstream, for credit to the respective
accounts at Euroclear and Clearstream, designated by or on behalf of the
beneficial owners of such Securities (or to such other accounts as they may
direct) and (5) redeliver such temporary Global Security to the Depositary,
unless such temporary Global Security shall have been cancelled in accordance
with Section 309 hereof; provided, however, that, unless otherwise specified in
such temporary Global Security, upon such presentation by the Depositary, such
temporary Global Security shall be accompanied by a certificate dated the
Exchange Date or a subsequent date and signed by Euroclear as to the portion of
such temporary Global Security held for its account then to be exchanged for
definitive Securities or one or more permanent Global Securities, as the case
may be, and a certificate dated the Exchange Date or a subsequent date and
signed by Clearstream, as to the portion of such temporary Global Security held
for its account then to be exchanged for definitive Securities or one or more
permanent Global Securities, as the case may be, each substantially in the form
set forth in Exhibit B to this Indenture. Each certificate substantially in the
form of Exhibit B hereto of Euroclear or Clearstream, as the case may be, shall
be based on certificates of the account holders listed in the records of
Euroclear or Clearstream, as the case may be, as being entitled to all or any
portion of the applicable temporary Global Security. An account holder of
Euroclear or Clearstream, as the case may be, desiring to effect the exchange of
interest in a temporary Global Security for an interest in definitive Securities
or one or more permanent Global Securities shall instruct Euroclear or
Clearstream, as the case may be, to request such exchange on its behalf and
shall deliver to Euroclear or Clearstream, as the case may be, a certificate
substantially in the form of Exhibit A hereto and dated no earlier than 15 days
prior to the Exchange Date. Until so exchanged, temporary Global Securities
shall in all respects be entitled to the same benefits under this Indenture as
definitive Securities and permanent Global Securities of the same series
authenticated and delivered hereunder, except as provided in the fourth
succeeding paragraph.

         The delivery to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent by Euroclear or Clearstream of any
certificate substantially in the form of Exhibit B hereto may be relied upon by
the Company and such Trustee or the Global Exchange Agent as conclusive evidence
that a corresponding certificate or certificates has or have been delivered to
Euroclear or to Clearstream, as the case may be, pursuant to the terms of this
Indenture.

                                      -28-
<PAGE>

         On or prior to the Exchange Date, the Company shall deliver to the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent definitive Securities or one or more permanent Global Securities in
aggregate principal amount equal to the principal amount of such temporary
Global Security, executed by the Company in the case of the Securities. At any
time, on or after the Exchange Date, upon 30 days' notice to the Trustee for the
Securities of the appropriate series or the Global Exchange Agent by Euroclear
or Clearstream, as the case may be, acting at the request of or on behalf of the
beneficial owner, a Security represented by a temporary Global Security or a
permanent Global Security, as the case may be, may be exchanged, in whole or
from time to time in part, for definitive Securities without charge and such
Trustee or the Global Exchange Agent shall authenticate and deliver, in exchange
for each portion of such temporary Global Security or such permanent Global
Security, an equal aggregate principal amount of definitive Securities of the
same series of authorized denominations and with like terms and provisions as
the portion of such temporary Global Security or such permanent Global Security
to be exchanged, which, unless the Securities of the series are not issuable
both as Bearer Securities and as Registered Securities, as contemplated by
Section 301, shall be in the form of Bearer Securities or Registered Securities,
or any combination thereof, as shall be specified by the beneficial owner
thereof; provided, however, that definitive Bearer Securities shall be delivered
in exchange for a portion of the temporary Global Security or the permanent
Global Security only in compliance with the requirements of the second preceding
paragraph. On or prior to the thirtieth day following receipt by the Trustee for
the Securities of the appropriate series or the Global Exchange Agent of such
notice with respect to a Security, or, if such day is not a Business Day, the
next succeeding Business Day, the temporary Global Security or the permanent
Global Security, as the case may be, shall be surrendered by the Depositary to
such Trustee, as the Company's agent for such purpose, or the Global Exchange
Agent to be exchanged in whole, or from time to time in part, for definitive
Securities without charge following such surrender, upon the request of
Euroclear or Clearstream, as the case may be, and such Trustee or the Global
Exchange Agent shall (1) endorse the applicable temporary Global Security or the
permanent Global Security to reflect the reduction of its principal amount by
the aggregate principal amount of such Security, (2) in accordance with
procedures acceptable to the Trustee cause the terms of such Security and
coupons, if any, to be entered on a definitive Security, (3) manually
authenticate such definitive Security and (4) if a Bearer Security is to be
delivered, deliver such definitive Security outside the United States to
Euroclear or Clearstream, as the case may be, for or on behalf of the beneficial
owner thereof, in exchange for a portion of such permanent Global Security.

         Unless otherwise specified in such temporary Global Security or
permanent Global Security, any such exchange shall be made free of charge to the
beneficial owners of such temporary Global Security or permanent Global
Security, except that a Person receiving definitive Securities must bear the
cost of insurance, postage, transportation and the like in the event that such
Person does not take delivery of such definitive Securities in person at the
offices of Euroclear or Clearstream. Definitive Securities in bearer form to be
delivered in exchange for any portion of a temporary Global Security or a
permanent Global Security shall be delivered only outside the United States.

                                      -29-
<PAGE>

         Until exchanged in full as hereinabove provided, any temporary Global
Security or permanent Global Security shall in all respects be entitled to the
same benefits under this Indenture as definitive Securities of the same series
and with like terms and conditions, except as to payment of interest, if any,
authenticated and delivered hereunder. Unless otherwise specified as
contemplated by Section 301, interest payable on such temporary Global Security
on an Interest Payment Date for Securities of such series shall be payable to
Euroclear and Clearstream on such Interest Payment Date upon delivery by
Euroclear and Clearstream to the Trustee for the Securities of the appropriate
series or the Global Exchange Agent in the case of payment of interest on a
temporary Global Security with respect to an Interest Payment Date occurring
prior to the applicable Exchange Date of a certificate or certificates
substantially in the form set forth in Exhibit C to this Indenture, for credit
without further interest on or after such Interest Payment Date to the
respective accounts of the Persons who are the beneficial owners of such Global
Security on such Interest Payment Date and who have, in the case of payment of
interest on a temporary Global Security with respect to an Interest Payment Date
occurring prior to the applicable Exchange Date, each delivered to Euroclear or
Clearstream, as the case may be, a certificate substantially in the form set
forth in Exhibit D to this Indenture.

         Any definitive Bearer Security authenticated and delivered by the
Trustee for the Securities of the appropriate series or the Global Exchange
Agent in exchange for a portion of a temporary Global Security or a permanent
Global Security shall not bear a coupon for any interest which shall theretofore
have been duly paid by such Trustee to Euroclear or Clearstream or by the
Company to such Trustee in accordance with the provisions of this Section 304.

         With respect to Exhibits A, B, C and D to this Indenture, the Company
may, in its discretion and if required or desirable under applicable law,
substitute one or more other forms of such exhibits for such exhibits, eliminate
the requirement that any or all certificates be provided, or change the time
that any certificate may be required, provided that such substitute form or
forms or notice of elimination or change of such certification requirement have
theretofore been delivered to the Trustee with a Company Request and such form
or forms, elimination or change is reasonably acceptable to the Trustee.

Section 305. Registration, Registration of Transfer and Exchange.

         The Company shall cause to be kept at the Corporate Trust Office of the
Trustee for the Securities of each series a register (the register maintained in
such office being herein sometimes 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 Registered Securities and of transfers of
Registered Securities. The Trustee for the Securities of each series is hereby
initially appointed "Security Registrar" for the purpose of registering
Registered Securities and transfers of Registered Securities of such series as
herein provided.

         Upon surrender for registration of transfer of any Registered Security
of any particular series at the office or agency of the Company in a Place of
Payment for that series, the Company shall execute, and the Trustee for the
Securities of each series, upon receipt of a Company Order, shall authenticate
and deliver, in the name of the designated transferee or transferees, one or
more new Registered Securities of any authorized denominations, and of a like
Stated Maturity and of a like series and aggregate principal amount and with
like terms and conditions.

                                      -30-
<PAGE>

         Except as set forth below, at the option of the Holder, Registered
Securities of any particular series may be exchanged for other Registered
Securities of any authorized denominations, and of a like Stated Maturity and of
a like series and aggregate principal amount and with like terms and conditions
upon surrender of the Registered Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee for such Securities, upon receipt of a Company
Order, shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive. Except as otherwise specified pursuant to
Section 301, Registered Securities may not be exchanged for Bearer Securities.

         Notwithstanding any other provision of this Section or Section 304,
unless and until it is exchanged in whole or in part for Registered Securities
in definitive form, a Global Security representing all or a portion of the
Registered Securities of a series may not be transferred except as a whole by
the Depositary for such series to a nominee of such Depositary or by a nominee
of such Depositary to such Depositary or another nominee of such Depositary or
by such Depositary or any such nominee to a successor Depositary for such series
or a nominee of such successor Depositary.

         If permitted by the applicable Board Resolution and (subject to Section
308) set forth in the applicable Officers' Certificate, at the option of the
Holder, Bearer Securities of any series may be exchanged for Registered
Securities of the same series of any authorized denominations and of a like
aggregate principal amount and with like terms and provisions upon surrender of
the Bearer Securities to be exchanged at any office or agency of the Company in
a Place of Payment for that series, with all unmatured coupons and all matured
coupons in default thereto appertaining. If the Holder of a Bearer Security is
unable to produce any such unmatured coupon or coupons or matured coupon or
coupons in default, such exchange may be effected if the Bearer Securities are
accompanied by payment in funds acceptable to the Company (or to the Trustee for
the Security in case of matured coupons in default) in an amount equal to the
face amount of such missing coupon or coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and such Trustee if there is
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Security
shall surrender to any Paying Agent any such missing coupon in respect of which
such a payment shall have been made, such Holder shall be entitled to receive
the amount of such payment; provided, however, that, except as otherwise
provided in Section 1002, interest represented by coupons shall be payable only
upon presentation and surrender of those coupons at an office or agency of the
Company in a Place of Payment for that series located outside the United States.
Notwithstanding the foregoing, in case a Bearer Security of any series is
surrendered at any such office or agency in exchange for a Registered Security
of the same series and with like terms and conditions after the close of
business at such office or agency on or after (i) any Regular Record Date and
before the opening of business at such office or agency on the relevant Interest
Payment Date, or (ii) any Special Record Date and before the opening of business
at such office or agency on the related proposed date for payment of Defaulted
Interest, such Bearer Security shall be surrendered without the coupon relating
to such Interest Payment Date or proposed date for payment, as the case may be
(or, if such coupon is so surrendered with such Bearer Security, such coupon
shall be returned to the person so surrendering the Bearer Security), and
interest or Defaulted Interest, as the case may be, will not be payable on such
Interest Payment Date or proposed date for payment, as the case may be, in
respect of the Registered Security issued in exchange for such Bearer Security,
but will be payable only to the Holder of such coupon when due in accordance
with the provisions of this Indenture.

                                      -31-
<PAGE>

         Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee for such Securities, upon receipt of a Company
Order, shall authenticate and deliver, the Securities which the Holder making
the exchange is entitled to receive.

         If at any time the Depositary for Securities of a series in registered
form notifies the Company that it is unwilling or unable to continue as
Depositary for the Securities of such series or if at any time the Depositary
for the Securities of such series shall no longer be eligible under Section 303,
the Company shall appoint a successor Depositary with respect to the Securities
for such series. If (i) a successor Depositary for the Securities of such series
is not appointed by the Company within 90 days after the Company receives such
notice or becomes aware of such ineligibility, (ii) the Company delivers to the
Trustee for Securities of such series in registered form a Company Order stating
that the Securities of such series shall be exchangeable, or (iii) an Event of
Default under Section 501 hereof has occurred and is continuing with respect to
the Securities of such series, the Company's election pursuant to Section 301
shall no longer be effective with respect to the Securities for such series and
the Company will execute, and the Trustee, upon receipt of a Company Order for
the authentication and delivery of definitive Securities of such series, will
authenticate and deliver Securities of such series in definitive form in an
aggregate principal amount equal to the principal amount of the Global Security
or Securities representing such series in exchange for such Global Security or
Securities.

         The Company may at any time and in its sole discretion determine that
the Registered Securities of any series issued in the form of one or more Global
Securities shall no longer be represented by such Global Security or Securities.
In such event the Company will execute, and the Trustee, upon receipt of a
Company Order for the authentication and delivery of definitive Registered
Securities of such series, will authenticate and deliver, Registered Securities
of such series in definitive form and in an aggregate principal amount equal to
the principal amount of the Global Security or Securities representing such
series in exchange for such Global Security or Securities.

         If specified by the Company pursuant to Section 301 with respect to a
series of Securities in registered form, the Depositary for such series of
Securities may surrender a Global Security for such series of Securities in
exchange in whole or in part for Securities of such series of like tenor and
terms and in definitive form on such terms as are acceptable to the Company and
such Depositary. Thereupon the Company shall execute, and the Trustee, upon
receipt of a Company Order, shall authenticate and deliver, without service
charge, (i) to each Person specified by such Depositary a new Security or
Securities of the same series, of like tenor and terms and of any authorized
denomination as requested by such Person in aggregate principal amount equal to
and in exchange for such Person's beneficial interest in the Global Security;
and (ii) to such Depositary a new Global Security of like tenor and terms and in
a denomination equal to the difference, if any, between the principal amount of
the surrendered Global Security and the aggregate principal amount of Securities
delivered to Holders thereof.

                                      -32-
<PAGE>

         Upon the exchange of a Global Security for Securities in definitive
form representing the aggregate principal amount of such Global Security, such
Global Security shall be cancelled by the Trustee. Registered Securities issued
in exchange for a Global Security pursuant to this Section shall be registered
in such names and in such authorized denominations as the Depositary for such
Global Security, pursuant to instructions from its direct or indirect
participants or otherwise, shall instruct the Trustee in writing. The Trustee
shall deliver such Registered Security to the persons in whose names such
Securities are so registered.

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

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

         The Company shall not be required (i) to issue, register the transfer
of or exchange Securities of any series during a period beginning at the opening
of business 15 days before the day of the mailing of a notice of redemption of
Securities of that series selected for redemption under Section 1104 and ending
at the close of business on (A) if Securities of the series are issuable only as
Registered Securities, the day of the mailing of the relevant notice of
redemption and (B) if Securities of the series are issuable as Bearer
Securities, the day of the first publication of the relevant notice of
redemption or, if Securities of the series are also issuable as Registered
Securities and there is no publication, the mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Registered
Security so selected for redemption as a whole or in part, except the unredeemed
portion of any Security being redeemed in part, or (iii) to exchange any Bearer
Security so selected for redemption except that such a Bearer Security may be
exchanged for a Registered Security of that series and like tenor; provided,
however, that such Registered Security shall be simultaneously surrendered for
redemption.

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

         If (i) any mutilated Security or a Security with a mutilated coupon
appertaining thereto is surrendered to the Trustee for such Security or the
Company and the Trustee for a Security receive evidence to their satisfaction of
the destruction, loss or theft of any Security or coupon and (ii) there is
delivered to the Company and such Trustee 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 such Trustee that such Security
or coupon has been acquired by a bona fide purchaser, the Company shall execute
and upon its request such Trustee shall authenticate and deliver, in lieu of any
such destroyed, lost or stolen Security or in exchange for such mutilated
Security, or in exchange for the Security to which a mutilated, destroyed, lost
or stolen coupon appertains (with all appurtenant coupons not mutilated,
destroyed, lost or stolen) a new Security of the same series and in a like
principal amount and of a like Stated Maturity and with like terms and
conditions, and bearing a number not contemporaneously outstanding with coupons
corresponding to the coupons, if any, appertaining to such mutilated, destroyed,
lost or stolen Security or to the Security to which such mutilated, destroyed,
lost or stolen coupon appertains.

                                      -33-
<PAGE>

         In case any such mutilated, destroyed, lost or stolen Security or
coupon 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 or coupon
(without surrender thereof except in the case of a mutilated Security or coupon)
if the applicant for such payment shall furnish to the Company and the Trustee
for such Security such security or indemnity as may be required by them to save
each of them harmless, and in case of destruction, loss or theft, evidence
satisfactory to the Company and such Trustee and any agent of any of them of the
destruction, loss or theft of such Security and the ownership thereof; provided,
however, that the principal of (and premium, if any) and interest, if any, on
Bearer Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 301, any interest on
Bearer Securities shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

         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 all fees and expenses of the Trustee for such Security)
connected therewith.

         Every new Security of any series, with its coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Security or in
exchange for any mutilated Security, or in exchange for a Security to which a
mutilated, destroyed, lost or stolen coupon appertains shall constitute an
original additional contractual obligation of the Company whether or not the
destroyed, lost or stolen Security and its coupons, if any, or the destroyed,
lost or stolen coupon shall be at any time enforceable by anyone, and each such
new Security shall be at any time enforceable by anyone, and each such new
Security shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Securities of the same series and their
coupons, if any, 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 or coupons.

Section 307. Payment of Interest; Interest Rights Preserved.

         Interest on any Registered Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall, if so provided in
such Security, 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 payment.

                                      -34-
<PAGE>

         Unless otherwise provided with respect to the Securities of any series,
payment of interest may be made at the Corporate Trust Office or, at the option
of the Company (i) in the case of Registered Securities, may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register, or (ii) in the case of Bearer Securities, upon
presentation and surrender of the appropriate coupon appertaining thereto or by
transfer to an account maintained by the payee with a bank located outside the
United States. Notwithstanding the foregoing, a Holder of $1,000,000 or more in
aggregate principal amount of Securities of any series in definitive form,
whether having identical or different terms and provisions, having the same
Interest Payment Dates will, at the option of the Company, be entitled to
receive interest payments, other than at Maturity, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received in writing by the Trustee for the Securities of such series at least 15
days prior to the applicable Interest Payment Date. Any wire instructions
received by the Trustee for the Securities of such series shall remain in effect
until revoked by the Holder.

         Unless otherwise provided or contemplated by Section 301, every
permanent Global Security will provide that interest, if any, payable on any
Interest Payment Date will be paid to each of Euroclear and Clearstream with
respect to that portion of such permanent Global Security held for its account
by the Depositary. Each of Euroclear and Clearstream will in such circumstances
credit the interest received by it in respect of such permanent Global Security
to the accounts of the beneficial owners thereof.

         Any interest on any Registered Security of any particular 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 registered 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 Registered Securities of
         that 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 for the Registered Securities of
         such series in writing of the amount of Defaulted Interest proposed to
         be paid on each Registered Security of that series and the date of the
         proposed payment, and at the same time the Company shall deposit with
         such Trustee an amount of money in the currency or currency unit in
         which the Securities of such series are payable (except as otherwise
         specified pursuant to Section 301 for the Securities of such series and
         except as provided in Sections 311(b) and 311(d)), equal to the
         aggregate amount proposed to be paid in respect of such Defaulted
         Interest or shall make arrangements satisfactory to such Trustee for
         such deposit on or 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 such Trustee shall fix a Special Record Date for the payment
         of such Defaulted Interest which shall not be 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 such Trustee of the notice of
         the proposed payment. Such Trustee shall promptly notify the Company of
         such Special Record Date and, in the name and at the expense of the
         Company, shall cause notice of the proposed payment of such Defaulted
         Interest and the Special Record Date therefor to be mailed, first-class
         postage prepaid, to each Holder of Registered Securities of that series
         at his address as it appears in the Security Register not less than 10
         days prior to such Special Record Date. Notice of the proposed payment
         of such Defaulted Interest and the Special Record Date therefor having
         been mailed as aforesaid, such Defaulted Interest shall be paid to the
         Persons in whose names the Registered Securities of that series (or
         their respective Predecessor Securities) are registered on such Special
         Record Date and shall no longer be payable pursuant to the following
         clause (2).

                                      -35-
<PAGE>

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

         Subject to the foregoing provisions of this Section and Section 305,
each Security delivered under this Indenture upon registration of transfer of or
in exchange for or in lieu of any other Security shall carry the rights to
interest accrued and unpaid, and to accrue, which were carried by such other
Security.

Section 308. Persons Deemed Owners.

         Prior to due presentment of a Registered Security for registration of
transfer, the Company, the Trustee for such Security and any agent of the
Company or such Trustee may treat the Person in whose name any such Security is
registered as the owner of such Security for the purpose of receiving payment of
principal of (and premium, if any) and (subject to Section 307) interest, if
any, on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and none of the Company, such Trustee or any agent of the
Company or such Trustee shall be affected by notice to the contrary.

         Title to any Bearer Security and any coupons appertaining thereto shall
pass by delivery. The Company, the Trustee for such Security and any agent of
the Company or such Trustee may treat the bearer of any Bearer Security and the
bearer of any coupon as the absolute owner of such Bearer Security or coupon for
the purpose of receiving payment thereof or on account thereof and for all other
purposes whatsoever, whether or not such Security or coupon be overdue, and none
of the Company, such Trustee or any agent of the Company or such Trustee shall
be affected by notice to the contrary.

         None of the Company, the Trustee, any Paying Agent or the Security
Registrar will have any responsibility or liability for any aspect of the
records relating to or payments made on account of beneficial ownership
interests of a Global Security or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

                                      -36-
<PAGE>

Section 309. Cancellation.

         All Securities and coupons surrendered for payment, redemption,
registration of transfer or exchange, or delivered in satisfaction of any
sinking fund payment, shall, if surrendered to any Person other than the Trustee
for such Securities, be delivered to such Trustee and, in the case of Registered
Securities and matured coupons, shall be promptly cancelled by it. All Bearer
Securities and unmatured coupons so delivered to the Trustee for such Securities
shall be cancelled by such Trustee. The Company may at any time deliver to the
Trustee for Securities of a series for cancellation any Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and all Securities so delivered shall be promptly cancelled
by such Trustee. Notwithstanding any other provision of this Indenture to the
contrary, in the case of a series, all the Securities of which are not to be
originally issued at one time, a Security of such series shall not be deemed to
have been Outstanding at any time hereunder if and to the extent that,
subsequent to the authentication and delivery thereof, such Security is
delivered to the Trustee for such Security for cancellation by the Company or
any agent thereof upon the failure of the original purchaser thereof to make
payment therefor against delivery thereof, and any Security so delivered to such
Trustee shall be promptly cancelled by it. No Securities shall be authenticated
in lieu of or in exchange for any Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled
Securities and coupons held by the Trustee for such Securities shall be disposed
of by such Trustee in accordance with its standard procedures or the written
instructions of the Company; provided, however, that the Trustee shall not be
required to destroy such Securities. Permanent Global Securities shall not be
disposed of until exchanged in full for definitive Securities or until payment
thereon is made in full.

Section 310. Computation of Interest and Determination of Comparable Yield.

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

         If the Securities of a given series are contingent payment debt
instruments within the meaning of Treasury Regulations section 1.1275-4, the
Holders of such Securities shall, for U.S. federal income tax purposes, be bound
by the Company's determination of the comparable yield and projected payment
schedule for such Securities.

Section 311. Currency and Manner of Payments in Respect of Securities.

         Unless otherwise specified in accordance with Section 301 with respect
to any series of Securities, the following provisions shall apply:

         (a) Except as provided in paragraphs (b) and (d) below, the principal
of, premium, if any, and interest on Securities of any series denominated in a
Foreign Currency or currency unit will be payable by the Company in Dollars
based on the equivalent of that Foreign Currency or currency unit converted into
Dollars in the manner described in paragraph (c) below.

                                      -37-
<PAGE>

         (b) It may be provided pursuant to Section 301 with respect to
Registered Securities of any series denominated in a Foreign Currency or
currency unit that Holders shall have the option, subject to paragraph (d)
below, to receive payments of principal of, premium, if any, and interest on
such Registered Securities in such Foreign Currency or currency unit by
delivering to the Trustee (or to any duly appointed Paying Agent) for the
Registered Securities of that series a written election, to be in form and
substance satisfactory to such Trustee (or to any such Paying Agent), not later
than the close of business on the Election Date immediately preceding the
applicable payment date. If a Holder so elects to receive such payments in such
Foreign Currency or currency unit, such election will remain in effect for such
Holder until changed by such Holder by written notice to the Trustee (or to any
such Paying Agent) for the Registered Securities of that series; provided,
however, that any such change must be made not later than the close of business
on the Election Date immediately preceding the next payment date to be effective
for the payment to be made on such payment date; and provided, further, that no
such change or election may be made with respect to payments to be made on any
Registered Security of such series with respect to which an Event of Default has
occurred, the Company has exercised any defeasance, satisfaction or discharge
options pursuant to Article 4 or notice of redemption has been given by the
Company pursuant to Article 11. If any Holder makes any such election, such
election will not be effective as to any transferee of such Holder and such
transferee shall be paid in Dollars unless such transferee makes an election as
specified above; provided, however, that such election, if in effect while funds
are on deposit with respect to the Registered Securities of such series as
described in Section 404 or Section 405, will be effective on any transferee of
such Holder unless otherwise specified pursuant to Section 301 for such
Registered Securities. Any Holder of any such Registered Security who shall not
have delivered any such election to the Trustee (or to any duly appointed Paying
Agent) for the Registered Securities of such series not later than the close of
business on the applicable Election Date will be paid the amount due on the
applicable payment date in Dollars.

         (c) With respect to any Registered Securities of any series denominated
in a Foreign Currency or currency unit and payable in Dollars, the amount of
Dollars so payable will be determined by the Currency Determination Agent based
on the highest indicative quotation in The City of New York selected by the
Currency Determination Agent at approximately 11:00 A.M., New York City time, on
the second Business Day preceding the applicable payment date. Such selection
shall be made from among the quotations appearing on the bank composite or
multi-contributor pages of the Reuters Monitor Foreign Exchange Service or, if
not available, the Telerate Monitor Foreign Exchange Service, for three (or two
if three are not available) major banks in New York City. The first three (or
two) such banks selected by the Currency Determination Agent which are offering
quotes on the Reuters Foreign Exchange Service shall be used. If such quotations
are unavailable from either such foreign exchange service, such selection shall
be made from the quotations received by the Currency Determination Agent from no
more than three nor less than two recognized foreign exchange dealers in The
City of New York selected by the Currency Determination Agent and approved by
the Company (one of which may be the Currency Determination Agent) for the
purchase by the quoting dealer, for settlement on such payment date, of the
aggregate amount of the Foreign Currency or currency unit payable on such
payment date in respect of all Registered Securities denominated in such Foreign
Currency or currency unit and for which the applicable dealer commits to execute
a contract. If fewer than two such bid quotations are available at 11:00 A.M.,
New York City time, on the second Business Day preceding the applicable payment
date, such payment will be based on the Market Exchange Rate as of the second
Business Day preceding the applicable payment date. If the Market Exchange Rate
for such date is not then available, payments shall be made in the Foreign
Currency or currency unit. All currency exchange costs associated with any
payment in Dollars on any such Registered Securities will be borne by the Holder
thereof by deductions from such payment.

                                      -38-
<PAGE>

         (d) If a Conversion Event occurs with respect to a Foreign Currency or
currency unit in which Registered Securities of any series are payable, then
with respect to each date for the payment of principal of, premium, if any, and
interest on the Registered Securities of that series occurring after the last
date on which such Foreign Currency or currency unit was used, the Company may
make such payment in Dollars. The Dollar amount to be paid by the Company to the
Trustee for the Registered Securities of such series and by such Trustee or any
Paying Agent for the Registered Securities of such series to the Holders of such
Registered Securities with respect to such payment date shall be determined by
the Currency Determination Agent on the basis of the Market Exchange Rate as of
the second Business Day preceding the applicable payment date or, if such Market
Exchange Rate is not then available, on the basis of the most recently available
Market Exchange Rate, or as otherwise established pursuant to Section 301 with
respect to such Securities. Any payment in respect of such Registered Security
made under such circumstances in Dollars will not constitute an Event of Default
hereunder.

         (e) For purposes of this Indenture the following terms shall have the
following meanings:

                  A "Component Currency" shall mean any currency which is a
         component currency of any currency unit.

                  "Election Date" shall mean, for the Registered Securities of
         any series, the date specified pursuant to Section 301(14).

         (f) Notwithstanding any other provisions of this Section 311, the
following shall apply: (i) if the official unit of any Component Currency is
altered by way of combination or subdivision, the number of units of that
currency as a component shall be divided or multiplied in the same proportion,
(ii) if two or more Component Currencies are consolidated into a single
currency, the amounts of those currencies as components shall be replaced by an
amount in such single currency equal to the sum of the amounts of the
consolidated Component Currencies expressed in such a single currency, (iii) if
any Component Currency is divided into two or more currencies, the amount of
that original Component Currency as a component shall be replaced by the amounts
of such two or more currencies having an aggregate value on the date of division
equal to the amount of the former Component Currency immediately before such
division and (iv) in the event of an official redenomination of any currency
(including, without limitation, a currency unit), the obligations of the Company
to make payments in or with reference to such currency on the Registered
Securities of any series shall, in all cases, be deemed immediately following
such redenomination to be obligations to make payments in or with reference to
that amount of redenominated currency representing the amount of such currency
immediately before such redenomination.

                                      -39-
<PAGE>

         (g) All determinations referred to in this Section 311 made by the
Currency Determination Agent shall be in its sole discretion and shall, in the
absence of manifest error, be conclusive for all purposes and irrevocably
binding upon the Holders of the applicable Securities. The Currency
Determination Agent shall promptly give written notice to the Trustee for the
Securities of such series of any such decision or determination. The Currency
Determination Agent shall promptly give written notice to the Trustee of any
such decision or determination. The Currency Determination Agent shall have no
liability for any determinations referred to in this Section 311 made by it.

         (h) The Trustee for the Securities of a particular series shall be
fully justified and protected in relying and acting upon information received by
it from the Company and the Currency Determination Agent with respect to any of
the matters addressed in or contemplated by this Section 311 and shall not
otherwise have any duty or obligation to determine such information
independently.

Section 312. Appointment and Resignation of Currency Determination Agent.

         (a) If and so long as the Securities of any series (i) are denominated
in a currency unit or a currency other than Dollars or (ii) may be payable in a
currency unit or a currency other than Dollars, or so long as it is required
under any other provision of this Indenture, then the Company shall maintain
with respect to each such series of Securities, or as so required, a Currency
Determination Agent. The Company shall cause the Currency Determination Agent to
make the necessary foreign exchange determinations at the time and in the manner
specified pursuant to Section 301 for the purpose of determining the applicable
rate of exchange and for the purpose of converting the issued currency or
currency unit into the applicable payment currency or currency unit for the
payment of principal (and premium, if any) and interest, if any, pursuant to
Section 311.

         (b) No resignation of the Currency Determination Agent and no
appointment of a successor Currency Determination Agent pursuant to this Section
shall become effective until the acceptance of appointment by the successor
Currency Determination Agent as evidenced by a written instrument delivered to
the Company and the Trustee of the appropriate series of Securities accepting
such appointment executed by the successor Currency Determination Agent.

         (c) If the Currency Determination Agent shall resign, be removed or
become incapable of acting, or if a vacancy shall occur in the office of the
Currency Determination Agent for any cause, with respect to the Securities of
one or more series, the Company, by a Board Resolution, shall promptly appoint a
successor Currency Determination Agent or Currency Determination Agents with
respect to the Securities of that or those series (it being understood that any
such successor Currency Determination Agent may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
only be one Currency Determination Agent with respect to the Securities of any
particular series).

Section 313. Ranking.

         The Securities shall constitute senior indebtedness of the Company and
shall rank pari passu in right of payment among themselves and with all of the
other existing and future unsubordinated indebtedness of the Company.

                                      -40-
<PAGE>

                                   ARTICLE 4

                           SATISFACTION AND DISCHARGE

Section 401. Option to Effect Legal Defeasance or Covenant Defeasance.

         The Company may, at the option of its Board of Directors evidenced by a
Board Resolution set forth in an Officers' Certificate, at any time, with
respect to the Securities of any series, unless otherwise specified pursuant to
Section 301 with respect to a particular series of Securities, elect to have
either Section 402 or 403 be applied to all of the Outstanding Securities of
that series upon compliance with the conditions set forth below in this Article
4.

Section 402. Legal Defeasance and Discharge.

         Upon the Company's exercise under Section 401 of the option applicable
to this Section 402, the Company shall be deemed to have been discharged from
its obligations with respect to all Outstanding Securities of the particular
series and any coupons appertaining thereto on the date the conditions set forth
below are satisfied (hereinafter, "Legal Defeasance"). For this purpose, such
Legal Defeasance means that the Company shall be deemed to have paid and
discharged all the obligations relating to the Outstanding Securities of that
series, including any coupons appertaining thereto, and the Securities of that
series, including any coupons appertaining thereto, shall thereafter be deemed
to be "outstanding" only for the purposes of Section 406, Section 408 and the
other Sections of this Indenture referred to below in this Section 402, and to
have satisfied all of its other obligations under such Securities and any
coupons appertaining thereto and this Indenture and cured all then existing
Events of Default (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (a) the rights of Holders of Outstanding Securities of the particular
series and coupons, if any, of such series to receive payments in respect of the
principal of, premium, if any, and interest, if any, on such Securities when
such payments are due or on the Redemption Date solely out of the trust created
pursuant to this Indenture; (b) the Company's obligations with respect to such
Securities concerning issuing temporary Securities of that series, or, where
relevant, registration of such Securities, mutilated, destroyed, lost or stolen
Securities of that series and the maintenance of an office or agency for payment
and money for Security payments held in trust; (c) the rights, powers, trusts,
duties and immunities of the Trustee for the Securities of that series, and the
Company's obligations in connection therewith; and (d) this Article 4 and the
obligations set forth in Section 406 hereof.

         Subject to compliance with this Article 4, the Company may exercise its
option under Section 402 notwithstanding the prior exercise of its option under
Section 403 with respect to the Securities of a particular series and any
coupons appertaining thereto.

                                      -41-
<PAGE>

Section 403. Covenant Defeasance.

         Upon the Company's exercise under Section 401 of the option applicable
to this Section 403, the Company shall be released from any obligations under
the covenants contained in Sections 704, 801, 1006 and 1007 hereof or
established pursuant to Sections 301 or 901 hereof with respect to the
Outstanding Securities of the particular series on and after the date the
conditions set forth below are satisfied (hereinafter, "Covenant Defeasance"),
and the Securities of that series and any coupons appertaining thereto shall
thereafter be deemed not "Outstanding" for the purposes of any direction,
waiver, consent or declaration or act of Holders (and the consequences of any
thereof) in connection with such covenants, but shall continue to be deemed
"Outstanding" for all other purposes hereunder (it being understood that such
Securities shall not be deemed outstanding for accounting purposes). For this
purpose, such Covenant Defeasance means that, with respect to the Outstanding
Securities of that series and any coupons appertaining thereto, the Company may
omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein or
in any other document and such omission to comply shall not constitute a default
or Event of Default under subsection 501(3) but, except as specified above, the
remainder of this Indenture and the Securities of that series shall be
unaffected thereby.

Section 404. Conditions to Legal or Covenant Defeasance.

         The following shall be the conditions to the application of either
Section 402 or Section 403 to the Outstanding Securities of a particular series:

                  (a) the Company must irrevocably deposit, or cause to be
         irrevocably deposited, with the Trustee for the Securities of that
         series, in trust, for the benefit of the Holders of the Securities of
         that series, cash in the currency or currency unit in which the
         Securities of that series are payable (except as otherwise specified
         pursuant to Section 301 for the Securities of that series and except as
         provided in Sections 311(b) and 311(d), in which case the deposit to be
         made with respect to Securities for which an election has occurred
         pursuant to Section 311(b), or a Conversion Event has occurred as
         provided in Section 311(d), shall be made in the currency or currency
         unit in which the Securities of that series are payable as a result of
         such election or Conversion Event), Government Obligations or a
         combination thereof in such amounts as will be sufficient, in the
         opinion of an internationally recognized firm of independent public
         accountants, to pay the principal of, premium, if any, and interest, if
         any, due on the outstanding Securities of that series and any related
         coupons at the Stated Maturity, or on the applicable Redemption Date,
         as the case may be, with respect to the outstanding Securities of that
         series and any related coupons;

                  (b) in the case of Legal Defeasance, the Company shall have
         delivered to the Trustee for the Securities of that series (1) an
         Opinion of Counsel in the United States confirming that, subject to
         customary assumptions and exclusions, since the Issue Date, there has
         been a change in the applicable U.S. federal income tax law, to the
         effect that, and based thereon such Opinion of Counsel in the United
         States shall confirm that, subject to customary assumptions and
         exclusions, the Holders of the Outstanding Securities of that series
         will not recognize income, gain or loss for U.S. federal income tax
         purposes as a result of such Legal Defeasance and will be subject to
         U.S. federal income tax on the same amounts, in the same manner and at
         the same times as would have been the case if such Legal Defeasance had
         not occurred or (2) a copy of a ruling or other formal statement or
         action to that effect received from or published by the U.S. Internal
         Revenue Service;

                                      -42-
<PAGE>

                  (c) in the case of Covenant Defeasance, the Company shall have
         delivered to the Trustee for the Securities of that series an Opinion
         of Counsel in the United States confirming that, subject to customary
         assumptions and exclusions, the Holders of the Outstanding Securities
         of that series will not recognize income, gain or loss for U.S. federal
         income tax purposes as a result of such Covenant Defeasance and will be
         subject to such tax on the same amounts, in the same manner and at the
         same times as would have been the case if such Covenant Defeasance had
         not occurred;

                  (d) no Event of Default or event which with the giving of
         notice or the lapse of time, or both, would become an Event of Default
         with respect to the Securities of that series shall have occurred and
         be continuing on the date of such deposit;

                  (e) such Legal Defeasance or Covenant Defeasance shall not
         result in a breach or violation of, or constitute a default under any
         material agreement or instrument to which the Company is a party or by
         which the Company is bound; and

                  (f) the Company shall have delivered to the Trustee for the
         Securities of that series an Officers' Certificate and an Opinion of
         Counsel in the United States (which opinion of counsel may be subject
         to customary assumptions and exclusions) each stating that all
         conditions precedent provided for or relating to the Legal Defeasance
         or the Covenant Defeasance, as the case may be, have been complied
         with.

Section 405. Satisfaction and Discharge of Indenture.

         This Indenture will be discharged and will cease to be of further
effect as to all Securities of any particular series issued hereunder when
either (i) all Securities of that series theretofore authenticated and delivered
and all coupons, if any, appertaining thereto (except (A) coupons appertaining
to Bearer Securities surrendered for exchange for Registered Securities and
maturing after such exchange, whose surrender is not required or has been waived
as provided in Section 305, (B) lost, stolen or destroyed Securities or coupons
of such series which have been replaced or paid as provided in Section 306, (C)
coupons appertaining to Securities called for redemption and maturing after the
relevant Redemption Date, whose surrender is not required as provided in Section
1106 and (D) Securities and coupons of such series for whose payment money has
theretofore been deposited in trust and thereafter repaid to the Company or
discharged from such trust, as provided in the last paragraph of Section 1003)
have been delivered to the Trustee for the Securities of that series for
cancellation or (ii) (A) all Securities of that series and any coupons
appertaining thereto not theretofore delivered to Trustee for cancellation are
due and payable by their terms within one year or have become due and payable by
reason of the making of a notice of redemption and the Company has irrevocably
deposited or caused to be deposited with such Trustee as trust funds in trust an
amount of cash in any combination of currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such series and except as provided in Sections
311(b) and 311(d), in which case the deposit to be made with respect to
Securities for which an election has occurred pursuant to Section 311(b) or a
Conversion Event has occurred as provided in Section 311(d), shall be made in
the currency or currency unit in which such Securities are payable as a result
of such election or Conversion Event) sufficient to pay and discharge the entire
indebtedness on such Securities and coupons not theretofore delivered to the
Trustee for the Securities of that series for cancellation for principal,
premium, if any, and accrued and unpaid interest, if any, to the Stated Maturity
or Redemption Date, as the case may be; (B) no Event of Default or event which
with the giving of notice or the lapse of time, or both, would become an Event
of Default shall have occurred and be continuing on the date of such deposit;
(C) the Company has paid, or caused to be paid, all sums payable by it under
this Indenture; and (D) the Company has delivered irrevocable instructions to
the Trustee for the Securities of that series under this Indenture to apply the
deposited money toward the payment of such Securities and coupons at the Stated
Maturity or the Redemption Date, as the case may be. In addition, the Company
must deliver an Officers' Certificate and an Opinion of Counsel to the Trustee
for the Securities of that series stating that all conditions precedent to
satisfaction and discharge have been satisfied.

                                      -43-
<PAGE>

Section 406. Survival of Certain Obligations.

         Notwithstanding the satisfaction and discharge of this Indenture and of
the Securities of a particular series referred to in Sections 401, 402, 404, or
405, the respective obligations of the Company and the Trustee for the
Securities of a particular series under Sections 303, 304, 305, 306, 309, 407,
408, 409, 410, and 508, Article 6, and Sections 701, 702, 1002, 1003 and 1005,
shall survive with respect to Securities of that series until the Securities of
that series are no longer outstanding, and thereafter the obligations of the
Company and the Trustee for the Securities of a particular series with respect
to that series under Sections 407, 408, 409, and 410 shall survive. Nothing
contained in this Article 4 shall abrogate any of the obligations or duties of
the Trustee of any series of Securities under this Indenture.

         Notwithstanding the satisfaction of the conditions set forth in
Sections 404 or 405 with respect to all the Securities of any series not payable
in Dollars, upon the happening of any Conversion Event the Company shall be
obligated to make the payments in Dollars required by Section 311(d) to the
extent that the Trustee is unable to convert any Foreign Currency or currency
unit in its possession pursuant to Sections 404 or 405 into the Dollar
equivalent of such Foreign Currency or currency unit, as the case may be. If,
after the deposits referred to in Sections 404 or 405 have been made, (x) the
Holder of a Security is entitled to, and does, elect pursuant to Section 311(b)
to receive payment in a currency or currency unit other than that in which the
deposit pursuant to Sections 404 or 405 was made, or (y) a Conversion Event
occurs as contemplated in Section 311(d), then the indebtedness represented by
such Security shall be fully discharged to the extent that the deposit made with
respect to such Security shall be converted into the currency or currency unit
in which such Security is payable. The Trustee shall return to the Company any
non-converted funds or securities in its possession after such payments have
been made.

Section 407. Acknowledgment of Discharge by Trustee.

         Subject to Section 410, after (i) the conditions of Section 404 or 405
have been satisfied with respect to the Securities of a particular series, (ii)
the Company has paid or caused to be paid all other sums payable hereunder by
the Company and (iii) the Company has delivered to the Trustee for the
Securities of that series an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i) above
relating to the satisfaction and discharge of this Indenture have been complied
with, the Trustee for the Securities of that series upon written request shall
acknowledge in writing the discharge of all of the Company's obligations under
this Indenture except for those surviving obligations specified in this Article
4.

                                      -44-
<PAGE>

Section 408. Application of Trust Moneys.

         Subject to Section 409, all money and Government Obligations deposited
with the Trustee for the Securities of a particular series pursuant to Section
404 or 405 in respect of the Securities of that series shall be held in trust
and applied by it, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent as the
Trustee may determine, to the Holders of the Securities and all related coupons
of all sums due and to become due thereon for principal, premium, if any, and
interest, if any, but such money need not be segregated from other funds except
to the extent required by law.

         The Company shall pay and indemnify the Trustee for the Securities of a
particular series against any tax, fee or other charge imposed on or assessed
against the Government Obligations deposited pursuant to Section 404 or 405 with
respect to the Securities of that series 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 of that series.

Section 409. Repayment to the Company; Unclaimed Money.

         The Trustee and any Paying Agent for a series of Securities shall
promptly pay or return to the Company upon a Company Order any cash or
Government Obligations held by them at any time that are not required for the
payment of the principal of, premium, if any, and interest, if any, on the
Securities and all related coupons for Securities of that series for which cash
or Government Obligations have been deposited pursuant to Section 404 or 405.

         Any money deposited with the Trustee or any Paying Agent for the
Securities of any series, or then held by the Company, in trust for the payment
of the principal of (and premium, if any) and interest, if any, on any Security
of any particular series and all related coupons appertaining thereto and
remaining unclaimed for two years after such principal (and premium, if any) and
interest, if any, has become due and payable shall, unless otherwise required by
mandatory provisions of applicable escheat, or abandoned or unclaimed property
law, be paid to the Company on Company Request or (if then held by the Company)
shall be discharged from such trusts; and the Holder of such Security and all
related coupons shall, thereafter, as an unsecured general creditor, look only
to the Company for payment thereof, and all liability of such Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease.

Section 410. Reinstatement.

         If the Trustee or Paying Agent for a series of Securities is unable to
apply any cash or Government Obligations, as applicable, in accordance with
Section 402, 403, 404 or 405 by reason of any legal proceeding or by reason of
any order or judgment of any court or governmental authority enjoining,
restraining or otherwise prohibiting such application, the Company's obligations
under this Indenture and the Securities of that series shall be revived and
reinstated as though no deposit had occurred pursuant to Section 402, 403, 404
or 405 until such time as the Trustee or Paying Agent for that series is
permitted to apply all such cash or Government Obligations in accordance with
Section 402, 403, 404 or 405; provided, however, that if the Company has made
any payment of principal, premium, if any, and interest, if any, on any
Securities and any related coupons because of the reinstatement of its
obligations, the Company shall be subrogated to the rights of the Holders of
such Securities and such coupons to receive such payment from the cash or
Government Obligations, as applicable, held by such Trustee or Paying Agent.

                                      -45-
<PAGE>

                                   ARTICLE 5

                                    REMEDIES

Section 501. Events of Default.

         "Event of Default" wherever used herein with respect to any particular
series of Securities means any one of the following events and such other events
as may be established with respect to the Securities of such series as
contemplated by Section 301 (whatever the reason for such Event of Default and
whether it shall be voluntary or involuntary or be effected by operation of law
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
either inapplicable to a particular series or specifically deleted or modified
in the supplemental indenture or Board Resolution creating such series of
Securities or in the form of Security for such series:

                  (1) the Company defaults in the payment of the principal of,
         or premium, if any, on any Security of that series when the same
         becomes due and payable at maturity, upon acceleration or redemption,
         or otherwise, or the Company defaults in the deposit of any sinking
         fund payment when and as due by the terms of the Securities of that
         series;

                  (2) the Company defaults in the payment of interest on any
         Security of that series and any related coupon when the same becomes
         due and payable, and the default continues for a period of 30 days;

                  (3) the Company defaults in the performance of or breaches any
         other covenant or agreement of the Company in respect of any Security
         of such series contained in this Indenture or in such Security or in
         the applicable Board Resolution under which such series is issued as
         contemplated by Section 301, and the default or breach continues for a
         period of 90 days after there has been given, by registered or
         certified mail, to the Company by the Trustee for the Securities of
         such series or to the Company and such 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;

                                      -46-
<PAGE>

                  (4) an involuntary case or other proceeding is commenced
         against the Company with respect to it or its debts under any
         bankruptcy, insolvency or other similar law now or hereafter in effect
         seeking the appointment of a trustee, receiver, liquidator, custodian
         or other similar official of it or any substantial part of its
         property, and such involuntary case or other proceeding remains
         undismissed and unstayed for a period of 60 days; or an order for
         relief is entered against the Company under the federal bankruptcy laws
         as now or hereafter in effect;

                  (5) the Company (i) commences a voluntary case under any
         applicable bankruptcy, insolvency or other similar law now or hereafter
         in effect, or consents to the entry of an order for relief in an
         involuntary case under any such law, (ii) consents to the appointment
         of or taking possession by a receiver, liquidator, assignee, custodian,
         trustee, sequestration or similar official of the Company or for all or
         substantially all of the property and assets of the Company or (iii)
         effects any general assignment for the benefit of creditors; or

                  (6) any other Event of Default provided in the Security or the
         Board Resolution with respect to Securities of that series.

Section 502. Acceleration of Maturity; Rescission and Annulment.

         If an Event of Default with respect to any particular series of
Securities and any related coupons occurs and is continuing (other than an Event
of Default described in Section 501(4) or 501(5)), then and in every such case
either the Trustee for the Securities of such series or the Holders of not less
than 25% in principal amount of the Outstanding Securities of that series may
declare the entire principal amount (or, in the case of (i) OID Securities, such
lesser amount as may be provided for in the terms of that series or (ii) Indexed
Securities, the amount determined in accordance with the specified terms of
those Securities) of all the Securities of that series, to be due and payable
immediately, by a notice in writing to the Company (and to such Trustee if given
by Holders), and upon any such declaration of acceleration such principal or
such lesser amount, as the case may be, together with accrued interest and all
other amounts owing hereunder, shall become immediately due and payable, without
presentment, demand, protest or notice of any kind, all of which are hereby
expressly waived.

         If any Event of Default specified in Section 501(4) or 501(5) occurs
with respect to the Company, all of the unpaid principal amount (or, if the
Securities of any series then outstanding are (i) OID Securities, such lesser
amount as may be provided for in the terms of that series or (ii) Indexed
Securities, the amount determined in accordance with the specified terms of
those Securities) and accrued interest on all Securities of each series then
outstanding shall ipso facto become and be immediately due and payable without
any declaration or other act by the Trustee or any Holder.

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

                                      -47-
<PAGE>

                  (1) the Company has paid or deposited with such Trustee a sum
         sufficient to pay in the currency or currency unit in which the
         Securities of such series are payable (except as otherwise specified
         pursuant to Section 301 for the Securities of such series and except as
         provided in Sections 311(b) and 311(d).

                  (A)      all overdue interest on all Securities of that series
                           and any related coupons;

                  (B)      the principal of (and premium, if any, on) any
                           Securities of that series which have become due
                           otherwise than by such declaration of acceleration
                           and interest thereon from the date such principal
                           became due at a rate per annum equal to the rate
                           borne by the Securities of such series (or, in the
                           case of (i) OID Securities, the Securities' Yield to
                           Maturity or (ii) Indexed Securities, the rate
                           determined in accordance with the specified terms of
                           those Securities), to the extent that the payment of
                           such interest shall be legally enforceable;

                  (C)      to the extent that payment of such interest is
                           lawful, interest upon overdue interest at a rate per
                           annum equal to the rate borne by the Securities of
                           such series (or, in the case of (i) OID Securities,
                           the Securities' Yield to Maturity or (ii) Indexed
                           Securities, the rate determined in accordance with
                           the specified terms of those Securities); and

                  (D)      all sums paid or advanced by such Trustee hereunder
                           and the reasonable compensation, expenses,
                           disbursements and advances of such Trustee, its
                           agents and counsel and all other amounts due to such
                           Trustee under Section 607;

         and

                  (2) all Events of Default with respect to the Securities of
         such series, other than the nonpayment of the principal of Securities
         of that series which has become due solely by such acceleration, have
         been cured or waived as provided in Section 513. No such rescission
         shall affect any subsequent default or impair any right consequent
         thereon.

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

         The Company covenants that if:

                  (1) default is made in the payment of any interest upon any
         Security of any series and any related coupons when such interest
         becomes due and payable and such default continues for a period of 30
         days; or

                  (2) default is made in the payment of the principal of (or
         premium, if any, on) any Security of any series when the same becomes
         due and payable at maturity, upon acceleration or redemption, or
         otherwise,

                                      -48-
<PAGE>

the Company will, upon demand of the Trustee for the Securities of such series,
pay to it, for the benefit of the Holders of such Securities and coupons, the
whole amount then due and payable on such Securities and coupons for principal
(and premium if any) and interest, if any, with interest upon the overdue
principal (and premium, if any) and, to the extent that payment of such interest
shall be legally enforceable, upon any overdue installments of interest at a
rate per annum equal to the rate borne by such Securities (or, in the case of
(i) OID Securities, the Securities' Yield to Maturity or (ii) Indexed
Securities, the rate determined in accordance with the specified terms of those
Securities); and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of such Trustee,
its agents and counsel and all other amounts due to such Trustee under Section
607.

         If the Company fails to pay such amounts forthwith upon such demand,
such Trustee, in its own name and as trustee of an express trust, may institute
a judicial proceeding against the Company for the collection of the sums so due
and unpaid, and may prosecute such proceedings to judgment or final decree, and
may enforce the same against the Company or any other obligor upon the
Securities of such series and collect the moneys adjudged or decreed to be
payable in the manner provided by law out of the property of the Company or any
other obligor upon the Securities of such series, wherever situated.

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

Section 504. Trustee May File Proofs of Claim.

         In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relating to the Company or any other obligor upon the
Securities of any series or the property of the Company or of such other obligor
or their creditors, the Trustee for the Securities of such series (irrespective
of whether the principal (or, if the Securities of such series are (i) OID
Securities or (ii) Indexed Securities, such amount as may be due and payable
with respect to such Securities pursuant to a declaration in accordance with
Section 502) of any Security of such series shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether
such Trustee shall have made any demand on the Company for the payment of
overdue principal or interest) shall be entitled and empowered, by intervention
in such proceeding or otherwise:

                  (i) to file and prove a claim for the whole amount of
         principal (or, if the Securities of such series are (i) OID Securities
         or (ii) Indexed Securities, such amount as may be due and payable with
         respect to such Securities pursuant to a declaration in accordance with
         Section 502) (and premium, if any) and interest, if any, owing and
         unpaid in respect of the Securities of such series and any related
         coupons and to file such other papers or documents as may be necessary
         or advisable in order to have the claims of such Trustee (including any
         claim for the reasonable compensation, expenses, disbursements and
         advances of such Trustee, its agents and counsel and all other amounts
         due to such Trustee under Section 607) and of the Holders of the
         Securities of such series and any related coupons allowed in such
         judicial proceeding; and

                                      -49-
<PAGE>

                  (ii) to collect and receive any moneys or other property
         payable or deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of
Securities and coupons to make such payments to such Trustee, and in the event
that such Trustee shall consent to the making of such payments directly to the
Holders of Securities and coupons, to pay to such Trustee any amount due to it
for the reasonable compensation, expenses, disbursements and advances of such
Trustee, its agents and counsel, and any other amounts due such Trustee under
Section 607.

         Nothing herein contained shall be deemed to authorize the Trustee for
the Securities of any series to authorize or consent to or accept or adopt on
behalf of any Holder of a Security or coupon any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of such series
or the rights of any Holder thereof, or to authorize the Trustee for the
Securities or coupons of any series to vote in respect of the claim of any
Holder in any such proceeding for the election of a trustee in bankruptcy or
other person performing similar functions.

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

         All rights of action and claims under this Indenture or the Securities
or coupons of any series may be prosecuted and enforced by the Trustee for the
Securities of any series without the possession of any of the Securities or
coupons of such series or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by such Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of such Trustee, its agents and counsel and all other
amounts due to such Trustee under Section 607, be for the ratable benefit of the
Holders of the Securities and coupons of such series in respect of which such
judgment has been recovered.

Section 506. Application of Money Collected.

         Any money collected by the Trustee for the Securities of any series
pursuant to this Article with respect to the Securities or coupons of such
series shall be applied in the following order, at the date or dates fixed by
such Trustee and, in case of the distribution of such money on account of
principal (or premium, if any) or interest, if any, upon presentation of the
Securities or coupons of such series, or both, as the case may be, 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 such Trustee under
         Section 607;

                   SECOND: To the payment of the amounts then due and unpaid
         upon the Securities and coupons of such series for principal of (and
         premium, if any) and interest, if any, on such 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 and coupons for principal
         (and premium, if any) and interest, if any, respectively; and

                                      -50-
<PAGE>

                   THIRD: The balance, if any, to the Company.

Section 507. Limitation on Suits.

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

                  (1) an Event of Default with respect to that series shall have
         occurred and be continuing and such Holder shall have previously given
         written notice to the Trustee for the Securities of such series of such
         default and the continuance thereof;

                  (2) the Holders of not less than 25% in principal amount of
         the Outstanding Securities of that series shall have made written
         request to the Trustee for the Securities of such series 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 such Trustee
         indemnity reasonably satisfactory to the Trustee against the costs,
         expenses and liabilities to be incurred in compliance with such
         request;

                  (4) such 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 such Trustee during such 60-day period by the Holders of
         a majority in principal amount of the Outstanding Securities of that
         series;

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

Section 508. Unconditional Right of Holders to Receive Principal (and Premium,
             if any) and Interest, if any.

         Notwithstanding any other provision in this Indenture, the Holder of
any Security or coupon shall have the right which is absolute and unconditional
to receive payment of the principal of (and premium, if any) and (subject to
Section 307) interest, if any, on such Security on the respective Stated
Maturities expressed in such Security or coupon (or, in the case of redemption,
on the Redemption Date) and to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Holder.

                                      -51-
<PAGE>

Section 509. Restoration of Rights and Remedies.

         If the Trustee for the Securities of any series or any Holder of a
Security or coupon 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 such Trustee or to such Holder,
then and in every such case the Company, such Trustee and the Holders of
Securities or coupons shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and
thereafter all rights and remedies of such Trustee and such Holders shall
continue as though no such proceeding had been instituted.

Section 510. Rights and Remedies Cumulative.

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

Section 511. Delay or Omission Not Waiver.

         No delay or omission of the Trustee for the Securities of any series or
of any Holder of any Security of such series to exercise any right or remedy
accruing upon any Event of Default with respect to the Securities of such series
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 such Trustee for the Securities or coupons of any series or
to the Holders may be exercised from time to time, and as often as may be deemed
expedient, by such Trustee or by the Holders, as the case may be.

Section 512. Control by Holders.

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

                  (1) such direction shall not be in conflict with any rule of
         law or with this Indenture and could not involve the Trustee in
         personal liability; and

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

                                      -52-
<PAGE>

Section 513. Waiver of Past Defaults.

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

                  (1) a default in the payment of the principal of (or premium,
         if any) or interest, if any, on any Security of that series; or

                  (2) a default with respect to a covenant or provision hereof
         which under Article 9 cannot be modified or amended without the consent
         of the Holder of each Outstanding Security of that 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 514. Undertaking for Costs.

         All parties to this Indenture agree, and each Holder of any Security or
coupon 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 the
Securities or coupons of any series for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys' fees and expenses, against any
party litigant in such suit, having due regard to the merits and good faith of
the claims or defenses made by such party litigant; but the provisions of this
Section shall not apply to any suit instituted by the Trustee for the Securities
of any series, to any suit instituted by any Holder, or group of Holders,
holding in the aggregate more than 10% in principal amount of the Outstanding
Securities of any particular series or to any suit instituted by any Holder of
any Security or coupon for the enforcement of the payment of the principal of
(or premium, if any) or interest, if any, on any Security of such series or the
payment of any coupon on or after the respective Stated Maturities expressed in
such Security or coupon (or, in the case of redemption, on or after the
Redemption Date).

Section 515. Waiver of 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 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 hinder, delay or impede the execution of any
power herein granted to the Trustee for any series of Securities, but will
suffer and permit the execution of every such power as though no such law had
been enacted.

                                      -53-
<PAGE>

                                   ARTICLE 6

                                  THE TRUSTEE

Section 601. Certain Duties and Responsibilities.

         (a) Except during the continuance of an Event of Default with respect
to the Securities of any series for which the Trustee is serving as such,

                  (1) such Trustee undertakes to perform such duties and only
         such duties as are specifically set forth in this Indenture, and no
         implied covenants or obligations shall be read into this Indenture
         against such Trustee; and

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

         (b) In case an Event of Default with respect to a series of Securities
has occurred and is continuing, the Trustee for the Securities of such series
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in their exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.

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

                  (1) this Subsection shall not be construed to limit the effect
         of Subsection (a) of this Section;

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

                  (3) such Trustee shall not be liable with respect to any
         action taken, suffered or omitted to be taken by it in good faith in
         accordance with the direction of the Holders of a majority in principal
         amount of the Outstanding Securities of any particular series,
         determined as provided in Section 512, relating to the time, method and
         place of conducting any proceeding for any remedy available to such
         Trustee, or exercising any trust or power conferred upon such Trustee,
         under this Indenture with respect to the Securities of that series; and

                                      -54-
<PAGE>

                  (4) no provision of this Indenture shall require the Trustee
         for any series of Securities to expend or risk its own funds or
         otherwise incur any financial liability in the performance of any of
         its duties hereunder or in the exercise of any of its rights or powers,
         if it shall have reasonable grounds for believing that repayment of
         such funds or adequate indemnity against such risk or liability is not
         reasonably assured to it.

         (d) 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 for any series of Securities shall be
subject to the provisions of this Section.

Section 602. Notice of Defaults.

         Within 90 days after the occurrence of any default hereunder with
respect to Securities of any particular series, the Trustee for the Securities
of such series shall give to Holders of Securities of that series, in the manner
set forth in Section 106, notice of such default known to such Trustee as and to
the extent provided by the Trust Indenture Act, unless such default shall have
been cured or waived; provided, however, that, except in the case of a default
in the payment of the principal of (or premium, if any) or interest, if any, on
any Security of that series, or in the deposit of any sinking fund payment with
respect to Securities of that series, such Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee or a trust committee of directors and/or Responsible Officers of such
Trustee in good faith determines that the withholding of such notice is in the
interest of the Holders of Securities of that series and related coupons; and
provided, further, that in the case of any default of the character specified in
Section 501(3) with respect to Securities of that series no such notice to
Holders shall be given until at least 90 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 that series.

Section 603. Certain Rights of Trustee.

         Except as otherwise provided in Section 601:

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

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

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

                                      -55-
<PAGE>

         (d) such Trustee may consult with counsel of its choice 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;

         (e) such 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 of Securities of any series pursuant to
         this Indenture for which it is acting as Trustee, unless such Holders
         shall have offered to such Trustee security or indemnity reasonably
         satisfactory to the Trustee against the costs, expenses and liabilities
         which might be incurred by it in compliance with such request or
         direction;

         (f) such 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, discretion, consent,
         order, bond, debenture or other paper or document, but such Trustee, in
         its discretion, may make such further inquiry or investigation into
         such facts or matters at it may see fit, and, if such 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;

         (g) such 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 such 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;

         (h) the Trustee shall not be liable for any action take, 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;

         (i) 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;

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

         (k) the rights, privileges, protections, immunities and benefits given
         to the Trustee, including, without limitation, its right to be
         indemnified, are extended to, and shall be enforceable by, the Trustee
         in each of its capacities hereunder.

                                      -56-
<PAGE>

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

         The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication thereof and in any coupons shall be
taken as the statements of the Company, as the case may be, and neither the
Trustee for any series of Securities, nor any Authenticating Agent assumes any
responsibility for their correctness. The Trustee for any series of Securities
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities of any series or coupons, except that the Trustee represents
that it is duly authorized to execute and deliver this Indenture, to
authenticate the Securities and to 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 correct, subject to the qualifications set forth
therein. Neither the Trustee for any series of Securities nor any Authenticating
Agent shall be accountable for the use or application by the Company of
Securities or the proceeds thereof.

Section 605. May Hold Securities.

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

Section 606. Money Held in Trust.

         Money held by the Trustee for any series of Securities in trust
hereunder need not be segregated from other funds except as provided in Section
115 and except to the extent required by law. The Trustee for any series of
Securities shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed in writing with the Company.

Section 607. Compensation and Reimbursement.

         The Company agrees:

                  (1) to pay to the Trustee for any series of Securities from
         time to time such compensation in Dollars as the Company and the
         Trustee shall from time to time agree in writing for all services
         rendered by it hereunder (which compensation shall not be limited by
         any provision of law in regard to the compensation of a trustee of an
         express trust);

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

                  (3) to indemnify each such Trustee and its agents in Dollars
         for, and to hold them harmless against, any and all losses, damages,
         claims, liabilities or expenses, including taxes (other than taxes
         based upon, measured by or determined by the income of the Trustee),
         incurred without negligence or bad faith on their part, arising out of
         or in connection with the acceptance or administration of this trust,
         including the costs and expenses of defending themselves against any
         claim or liability in connection with the exercise or performance of
         any of their powers or duties hereunder.

                                      -57-
<PAGE>

         As security for the performance of the obligations of the Company under
this Section, the Trustee for any series of Securities shall have a lien prior
to the Securities upon all property and funds held or collected by such Trustee
as such, except funds held in trust for the payment of principal of (and
premium, if any) or interest, if any, on particular Securities.

         When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 501(4) or (5), the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Federal or State bankruptcy, insolvency or similar law.

         The Company's obligations under this Section 607 and any lien arising
hereunder shall survive the resignation or removal of the Trustee, the discharge
of the Company's obligations pursuant to Article 4 of this Indenture and/or the
termination of this Indenture.

Section 608. Disqualification; Conflicting Interests.

         The Trustee for the Securities shall be subject to the provisions of
Section 310(b) of the Trust Indenture Act during the period of time required
thereby. Nothing herein shall prevent the Trustee from filing with the
Commission the application referred to in the penultimate paragraph of Section
310(b) of the Trust Indenture Act. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act
with respect to the Securities of any series, there shall be excluded Securities
of any particular series of Securities other than that series.

Section 609. Corporate Trustee Required; Different Trustees for Different
Series; Eligibility.

         There shall at all times be a Trustee hereunder which shall be:

                  (i) 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 exercise corporate trust
         powers, and subject to supervision or examination by Federal or State
         authority, or

                  (ii) a corporation or other Person organized and doing
         business under the laws of a foreign government that is permitted to
         act as Trustee pursuant to a rule, regulation, or other order of the
         Commission, authorized under such laws to exercise corporate trust
         powers, and subject to supervision or examination by authority of such
         foreign government or a political subdivision thereof substantially
         equivalent to supervision or examination applicable to a United States
         institutional trustee,

having a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law or
to requirements of the aforesaid supervising or examining authority, then for
the purposes of this Section, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. Neither the Company nor any
Person directly or indirectly controlling, controlled by, or under the common
control of the Company shall serve as Trustee for the Securities. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of this
Section, it shall resign immediately in the manner and with the effect hereunder
specified in this Article.

                                      -58-
<PAGE>

         A different Trustee may be appointed by the Company for each series of
Securities prior to the issuance of such Securities. If the initial Trustee for
any series of Securities is to be other than The Bank of New York, the Company
and such Trustee shall, prior to the issuance of such Securities, execute and
deliver an indenture supplemental hereto, which shall provide for the
appointment of such Trustee as Trustee for the Securities of such series and
shall add to or change any of the provisions of this Indenture as shall be
necessary to 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.

Section 610. Resignation and Removal; Appointment of Successor.

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

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

         (c) The Trustee for the Securities of any series may be removed at any
time with respect to the Securities of such series by Act of the Holders of a
majority in principal amount of the Outstanding Securities of such series,
delivered to such Trustee and to the Company. If the instrument of acceptance by
a successor Trustee required by Section 611 shall not have been delivered to the
Trustee for the Securities of such series 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.

         (d) If at any time:

                  (1) the Trustee for the Securities of any series shall fail to
         comply with Section 310(b) of the Trust Indenture Act pursuant to
         Section 608 hereof after written request therefor by the Company or by
         any Holder who has been a bona fide Holder of a Security of such series
         for at least six months, unless the Trustee's duty to resign is stayed
         in accordance with the provisions of Section 310(b) of the Trust
         Indenture Act, or

                                      -59-
<PAGE>

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

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

         then, in any such case, (i) the Company by a Board Resolution may
         remove such Trustee and appoint a successor Trustee or (ii) subject to
         Section 514, 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 such Trustee and the appointment of a
         successor Trustee.

         (e) If the Trustee for the Securities of any series shall resign, be
removed or become incapable of acting, or if a vacancy shall occur in the office
of Trustee for the Securities of any series for any cause, the Company, by a
Board Resolution, shall promptly appoint a successor Trustee with respect to the
Securities of such series and shall comply with the applicable requirements of
Section 611. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of such series shall not have been appointed by the
Company pursuant to this Section 610, then a successor Trustee may 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. If
no successor Trustee for the Securities of such series shall have been so
appointed by the Company or the Holders and shall have accepted appointment in
the manner required by Section 611, and if such Trustee to be replaced is still
incapable of acting, 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.

         (f) 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 in the
manner and to the extent provided in Section 106. Each notice shall include the
name of the successor Trustee with respect to the Securities of that series and
the address of its Corporate Trust Office.

Section 611. Acceptance of Appointment by Successor.

         (a) Every such successor Trustee appointed hereunder with respect to
the Securities of any series 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.

                                      -60-
<PAGE>

         (b) In case of the appointment hereunder of a successor Trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor Trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (2)
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 each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and upon the execution and delivery of such supplemental indenture
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts
and duties of the retiring Trustee with respect to the Securities of that or
those series to which the appointment of such successor Trustee relates; but, on
request of the Company or any successor Trustee, such retiring Trustee shall
duly assign, transfer and deliver to such successor Trustee all property and
money held by such retiring Trustee hereunder with respect to the Securities of
that or those series to which the appointment of such successor Trustee relates.

         (c) 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 Subsections (a) or (b) of this Section, as the case may be.

         (d) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee for the Securities of any series
shall be qualified and eligible under this Article.

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

         Any corporation into which the Trustee for the Securities of any series
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
Trustee shall be a party, or any corporation succeeding to all or substantially
all of the corporate trust business of such Trustee, shall be the successor of
such 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 or the
Authenticating Agent for such series then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee or Authenticating
Agent, as the case may be, may adopt such authentication and deliver the
Securities so authenticated with the same effect as if such successor Trustee or
successor Authenticating Agent had itself authenticated such Securities.

                                      -61-
<PAGE>

Section 613. Preferential Collection of Claims Against Company.

         The Trustee is subject to Section 311(a) of the Trust Indenture Act,
excluding any creditor relationship listed in Section 311(b) of the Trust
Indenture Act. A Trustee who has resigned or been removed shall be subject to
Section 311(a) of the Trust Indenture Act to the extent indicated.

Section 614. Authenticating Agents.

         At any time when any Securities of any series remain Outstanding, the
Trustee for the Securities of such series may, in its sole discretion, appoint
one or more Authenticating Agents with respect to the Securities of such series,
which may include the Company or any Affiliate of the Company, with power to act
on the Trustee's behalf and subject to its discretion in the authentication and
delivery of Securities of such series in connection with transfers and exchanges
under Sections 304, 305 and 1107 as fully to all intents and purposes as though
such Authenticating Agent had been expressly authorized by those Sections of
this Indenture to authenticate and deliver Securities of such series. For all
purposes of this Indenture, the authentication and delivery of Securities of
such series by an Authenticating Agent for such Securities pursuant to this
Section shall be deemed to be authentication and delivery of such Securities "by
the Trustee" for the Securities of such series. Any such Authenticating Agent
shall at all times be a corporation organized and doing business under the laws
of the United States or of any State, authorized under such laws to exercise
corporate trust powers, having a combined capital and surplus of at least
$50,000,000 and subject to supervision or examination by Federal or State
authority. If such Authenticating Agent publishes reports of condition at least
annually pursuant to law or the requirements of such supervising or examining
authority, then for the purposes of this Section the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time an Authenticating Agent for any series of Securities 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 any Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, consolidation or conversion to which any Authenticating Agent
shall be a party, or any corporation succeeding to all or substantially all of
the corporate trust business of any Authenticating Agent, shall be the successor
of such Authenticating Agent hereunder, if such successor corporation is
otherwise eligible under this Section, without the execution or filing of any
paper or any further act on the part of the parties hereto or the Authenticating
Agent or such successor corporation.

                                      -62-
<PAGE>

         Any Authenticating Agent for any series of Securities may resign at any
time by giving written notice of resignation to the Trustee for such series and
to the Company. The Trustee for any series of Securities may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company in the manner set
forth in Section 105. Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent for any series of
Securities shall cease to be eligible under this Section, the Trustee for such
series may appoint a successor Authenticating Agent, shall give written notice
of such appointment to the Company and shall give written notice of such
appointment to all Holders of Securities of such series in the manner set forth
in Section 106. 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.

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

         "This is one of the Securities of the series designated therein
described in the within-mentioned Indenture.

THE BANK OF NEW YORK, as Trustee

By                                            By
  -----------------------------------           --------------------------------
  As Authenticating Agent                       Authorized Signatory"

                                   ARTICLE 7

              HOLDERS' LISTS AND REPORTS BY TRUSTEE AND THE COMPANY

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

         With respect to each particular series of Securities, the Company will
furnish or cause to be furnished to the Trustee for the Securities of such
series,

         (a) semiannually, not more than 15 days after each Regular Record Date
relating to that series (or, if there is no Regular Record Date relating to that
series, on June 30 and December 31), a list, in such form as such Trustee may
reasonably require, containing all the information in the possession or control
of the Company or any of its Paying Agents other than such Trustee as to the
names and addresses of the Holders of that series as of such dates,

         (b) on semi-annual dates on each year to be determined pursuant to
Section 301 if the Securities of such series do not bear interest, a list of
similar form and content, and

                                      -63-
<PAGE>

         (c) at such other times as such 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 such Trustee in its
capacity as Security Registrar for the Securities of such series, if so acting.

Section 702. Preservation of Information; Communications to Holders.

         (a) The Trustee for each series of Securities shall preserve, in as
current a form as is reasonably practicable, the names and addresses of Holders
of the Securities of such series contained in the most recent lists furnished to
such Trustee as provided in Section 701 and the names and addresses of Holders
of the Securities of such series received by such Trustee in its capacity as
Security Registrar for such series, if so acting. The Trustee for each series of
Securities may destroy any list relating to such series of Securities furnished
to it as provided in Section 701 upon receipt of a new list relating to such
series so furnished.

         (b) If three or more Holders of Securities of any particular series
(hereinafter referred to as "applicants") apply in writing to the Trustee for
the Securities of any such series, and furnish to such Trustee reasonable proof
that each such applicant has owned a Security of that series for a period of at
least six months preceding the date of such application, and such application
states that the applicants desire to communicate with other Holders of
Securities of that series with respect to their rights under this Indenture or
under the Securities of that series and is accompanied by a copy of the form of
proxy or other communication which such applicants propose to transmit, then
such Trustee shall, within five Business Days after the receipt of such
application, at its election, either

                  (i) afford such applicants access to the information preserved
         at the time by such Trustee in accordance with Section 702(a), or

                  (ii) inform such applicants as to the approximate number of
         Holders of Securities of that series whose names and addresses appear
         in the information preserved at the time by such Trustee in accordance
         with Section 702(a), and as to the approximate cost of mailing to such
         Holders the form of proxy or other communication, if any, specified in
         such application.

         If any such Trustee shall elect not to afford such applicants access to
that information, such Trustee shall, upon the written request of such
applicants, mail to each Holder of Securities of that series whose name and
address appears in the information preserved at the time by such Trustee in
accordance with Section 702(a), a copy of the form of proxy or other
communication which is specified in such request, with reasonable promptness
after a tender to such Trustee of the material to be mailed and of payment, or
provision for the payment, of the reasonable expenses of mailing, unless within
five days after such tender, such Trustee shall mail to such applicants and file
with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of such Trustee, such
mailing would be contrary to the best interests of the Holders of Securities of
that series or would be in violation of applicable law. Such written statement
shall specify the basis of such opinion. If the Commission, after opportunity
for a hearing upon the objections specified in the written statement so filed,
shall enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, the Commission
shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, such Trustee
shall mail copies of such material to all such Holders with reasonable
promptness after the entry of such order and the renewal of such tender;
otherwise such Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

                                      -64-
<PAGE>

         (c) Every Holder of Securities of each series or coupons, by receiving
and holding the same, agrees with the Company and the Trustee for the Securities
of such series that neither the Company nor such Trustee, nor any agent of
either of them shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Holders of the Securities of
such series in accordance with Section 702(b), regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Section 702(b).

Section 703. Reports by Trustee.

         (a) Within 60 days after February 15 of each year, the Trustee for the
Securities of each series shall mail to each Holder of the Securities of such
series entitled to receive reports pursuant to Section 704(3), a brief report
dated as of such date that complies with Section 313(a) of the Trust Indenture
Act, if such report is required by such Section 313(a). The Trustee for the
Securities of each series shall also comply with Sections 313(b), 313(c) and
313(d) of the Trust Indenture Act.

         (b) At the time that the Trustee for the Securities of each series
mails such a report to the Holders of Securities of such series, each such
Trustee shall file a copy of that report with the Commission and with each stock
exchange on which the Securities of that series are listed. The Company shall
provide notice to the appropriate Trustee when the Securities of any series are
listed on any stock exchange or of any delisting thereof.

Section 704. Reports by Company.

         The Company will:

                  (1) file with the Trustee for the Securities of such series,
         within 15 days after the Company is required to file the same with the
         Commission, copies of the annual reports and of the information,
         documents and other reports (or copies of such portions of any of the
         foregoing as the Commission may from time to time by rules and
         regulations prescribe) which the Company may be required to file with
         the Commission pursuant to Section 13 or Section 15(d) of the
         Securities Exchange Act of 1934; or, if the Company is not required to
         file information, documents or reports pursuant to either of said
         Sections, then it will file with such Trustee and the Commission, in
         accordance with rules and regulations prescribed from time to time by
         the Commission, such of the supplementary and periodic information,
         documents and reports which may be required pursuant to Section 13 of
         the Securities Exchange Act of 1934 in respect of a security listed and
         registered on a national securities exchange as may be prescribed from
         time to time in such rules and regulations;

                                      -65-
<PAGE>

                  (2) file with the Trustee for the Securities of such series
         and the Commission, in accordance with rules and regulations prescribed
         from time to time by the Commission, such additional information,
         documents, and reports with respect to compliance by the Company with
         the conditions and covenants of this Indenture as may be required from
         time to time by such rules and regulations; and

                  (3) transmit by mail to all Holders of Securities of each
         series, as provided in Section 703(a), within 30 days after the filing
         thereof with the Trustee for the Securities of such series, such
         summaries of any information, documents and reports required to be
         filed by the Company pursuant to paragraphs (1) and (2) of this Section
         as may be required by rules and regulations prescribed from time to
         time by the Commission.

         Delivery of such reports, information and documents to the Trustee is
for informational purposes only an 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, subject
to Section 601 hereof, is entitled to rely exclusively on Officers'
Certificates).

                                   ARTICLE 8

                  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

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

                  The Company shall not consolidate with or merge into any other
Person or convey or transfer its properties and assets substantially as an
entirety to any Person unless:

                  (1) the Person formed by such consolidation or into which the
         Company is merged or the Person which acquires by conveyance or
         transfer the properties and assets of the Company substantially as an
         entirety shall be a corporation, partnership, limited liability company
         or trust (if not the Company) organized and validly existing under the
         laws of the United States of America or any State thereof or the
         District of Columbia, and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Trustee for each
         series of Securities, in form reasonably satisfactory to each such
         Trustee, the due and punctual payment of the principal of (and premium,
         if any) and interest on all the Securities and any related coupons 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 with respect to any series of Securities, and no event
         which, after notice or lapse of time, or both, would become an Event of
         Default with respect to any series of Securities, shall have occurred
         and be continuing;

                                      -66-
<PAGE>

                  (3) the Company has delivered to the Trustee for each series
         of Securities an Officers' Certificate and an Opinion of Counsel each
         stating that such consolidation, merger, conveyance or transfer and
         such supplemental indenture comply with this Article and that all
         conditions precedent herein provided for relating to such transaction
         have been complied with.

Section 802. Successor Person Substituted.

         Upon any consolidation or merger, or any conveyance or transfer of the
properties and assets of the Company substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or into
which the Company is merged or to which such conveyance or transfer is made
shall succeed to, and be substituted for, and may exercise every right and power
of, the Company under this Indenture with the same effect as if such successor
Person had been named as the Company herein, and thereafter the predecessor
Person shall be relieved of all obligations and covenants under this Indenture,
the Securities and any related coupons. In the event of any such conveyance or
transfer, the Company as the predecessor Person may thereupon or at any time
thereafter be dissolved, wound up, or liquidated.

                                   ARTICLE 9

                             SUPPLEMENTAL INDENTURES

Section 901. Supplemental Indentures Without Consent of Holders.

         Without the consent of any Holders of Securities or coupons, the
Company, when authorized by a Board Resolution, and the Trustee for the
Securities of any or all series, at any time and from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as then in effect) in form satisfactory to
such Trustee, 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 or to surrender any
         right or power herein conferred upon the Company, for the benefit of
         the Holders of all or any particular series of Securities and any
         related coupons (and, if such covenants or the surrender of such right
         or power are to be for the benefit of fewer than all series of
         Securities, stating that such covenants are being included solely for
         the benefit of such series); or

                  (3) to add any additional Events of Default with respect to
         any or all series of Securities (and, if any such Event of Default
         applies to fewer than all series of Securities, stating each series to
         which such Event of Default applies); or

                  (4) to add to or to change any of the provisions of this
         Indenture to provide that Bearer Securities may be registrable as to
         principal, to change or eliminate any restrictions on the payment of
         principal of or any premium or interest on Bearer Securities, to permit
         Bearer Securities to be issued in exchange for Registered Securities,
         to permit Bearer Securities to be issued in exchange for Bearer
         Securities of other authorized denominations, to provide for the
         issuance of uncertificated Securities of any series in addition to or
         in place of any certificated Securities and to make all appropriate
         changes for such purposes; or

                                      -67-
<PAGE>

                  (5) to change or eliminate any of the provisions of this
         Indenture, provided, however, that any such change or elimination shall
         become effective only when there is no Security Outstanding of any
         series created prior to the execution of such supplemental indenture
         which is entitled to the benefit of such provision; or

                  (6) to evidence and provide for the acceptance of appointment
         hereunder of a Trustee other than The Bank of New York as Trustee for a
         series of Securities 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 609; or

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

                  (8) to add to the conditions, limitations and restrictions on
         the authorized amount, form, terms or purposes of issue, authentication
         and delivery of Securities, as herein set forth, other conditions,
         limitations and restrictions thereafter to be observed; or

                  (9) to supplement any of the provisions of this Indenture to
         such extent as shall be necessary to permit or facilitate the
         defeasance and discharge of any series of Securities pursuant to
         Section 401; provided, however, that any such action shall not
         adversely affect the interests of the Holders of Securities of such
         series or any related coupons or any other series of Securities in any
         material respect; or

                  (10) to modify or supplement any provisions of this Indenture
         necessary to permit the reopening of any series of Securities; or

                  (11) to add to or change or eliminate any provisions of this
         Indenture as shall be necessary or desirable in accordance with any
         amendments to the Trust Indenture Act or to achieve or maintain the
         qualification of this Indenture under the Trust Indenture Act; or

                  (12) to provide for any guarantee of the Securities of any
         series, to secure the Securities of any series or to confirm and
         evidence the release, termination or discharge of any guarantee of or
         Lien securing the Securities of any series when such release,
         termination or discharge is permitted by this Indenture; or

                  (13) to issue and establish the form and terms of any series
         of Securities; or

                                      -68-
<PAGE>

                  (14) to cure any ambiguity or defect, to correct or supplement
         any provision herein which may be inconsistent with any other provision
         herein, or to make any other provisions or changes with respect to
         matters or questions arising under this Indenture; or

                  (15) for any other reason specified pursuant to Section 301
         with respect to the Securities of such series.

Section 902. Supplemental Indentures With Consent of Holders.

         The Company, when authorized by a Board Resolution, and the Trustee for
the Securities of any or all series 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 such Securities and any
related coupons under this Indenture, but only with the consent of the Holders
of more than 50% in aggregate principal amount of the Outstanding Securities of
each series of Securities then Outstanding affected thereby, in each case by Act
of said Holders of Securities of each such series delivered to the Company and
the Trustee for Securities of each such series; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby:

                  (1) change the Stated Maturity of the principal of, or any
         installment of principal of or interest on, any Security, or reduce the
         principal amount thereof or the rate of interest thereon, if any (or,
         in the case of OID Securities, reduce the rate of accretion of original
         issue discount), or any premium payable upon the redemption thereof, or
         change any obligation of the Company to pay additional amounts pursuant
         to Section 10009 (except as contemplated by Section 801(1) and
         permitted by Section 901(1)) or reduce the amount of the principal of
         an OID Security that would be due and payable upon a declaration of
         acceleration of the Maturity thereof, or provable in bankruptcy, or, in
         the case of Indexed Securities, reduce the amount payable in accordance
         with the terms of those Securities upon a declaration of acceleration
         of Maturity thereof, or provable in bankruptcy, pursuant to Section
         502, or change the Place of Payment, or the currency or currency unit
         in which any Security or the principal or interest thereon is payable,
         or impair the right to institute suit for the enforcement of any such
         payment on or after the Stated Maturity thereof (or, in the case of
         redemption, on or after the Redemption Date); or impair any right of
         Holders of Securities hereunder to repay or purchase Securities at
         their option; or reduce or alter the method of computation of any
         amount payable upon redemption, repayment or purchase of any Securities
         by the Issuer (or the time when such redemption, repayment or purchase
         may be made); or adversely affect the right to convert or exchange any
         Security into other securities of the Company or another Person as may
         be provided pursuant to Section 301; or

                  (2) reduce the percentage in principal amount of the
         Outstanding Securities of any particular 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

                                      -69-
<PAGE>

                  (3) modify any of the provisions of this Section or Section
         513 or 1008, except to increase any such percentage or to provide that
         certain other provisions of this Indenture cannot be modified or waived
         without the consent of the Holder of each Security affected thereby;
         provided, however, that this clause shall not be deemed to require the
         consent of any Holder of a Security or coupon with respect to changes
         in the references to "the Trustee" and concomitant changes in this
         Section and Section 1008, or the deletion of this proviso, in
         accordance with the requirements of Sections 609, 611(b), 901(6) and
         901(7).

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

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

Section 903. Execution of Supplemental Indentures.

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

Section 904. Effect of Supplemental Indentures.

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

Section 905. Conformity With Trust Indenture Act.

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

Section 906. Reference in Securities to Supplemental Indentures.

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

                                      -70-
<PAGE>

                                   ARTICLE 10

                                   COVENANTS

Section 1001. Payment of Principal (and Premium, if any) and Interest, if any.

         The Company agrees, for the benefit of each particular series of
Securities, that it will duly and punctually pay in the currency or currency
unit in which the Securities of such series are payable (except as otherwise
specified pursuant to Section 301 for the Securities of such series and except
as provided in Sections 311(b) and 311(d)) the principal of (and premium, if
any) and interest, if any, on that series of Securities in accordance with the
terms of the Securities of such series, any coupons appertaining thereto and
this Indenture. Unless otherwise specified as contemplated by Section 301 with
respect to any series of Securities, any interest due on Bearer Securities on or
before Maturity shall be payable only upon presentation and surrender of the
several coupons for such interest installments as are evidenced thereby as they
severally mature. The interest, if any, due in respect of any temporary or
permanent Global Security, together with any additional amounts payable in
respect thereof, as provided in the terms and conditions of such Security, shall
be payable, subject to the conditions set forth in Section 1009, only upon
presentation of such Security to the Trustee thereof for notation thereon of the
payment of such interest.

Section 1002. Maintenance of Office or Agency.

         If Securities of a series are issuable only as Registered Securities
the Company will maintain in each Place of Payment for that series an office or
agency where Securities of that series may be presented or surrendered for
payment, an office or agency where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company with respect to the Securities of that series and this
Indenture may be served. If Securities of a series are issuable as Bearer
Securities, the Company will maintain (A) an office or agency (which may be the
same office or agency) in a Place of Payment for that series in the United
States where any Registered Securities of that series may be presented or
surrendered for payment, where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Securities of that series and this Indenture may be served and
where Bearer Securities of that series and related coupons may be presented or
surrendered for payment in the circumstances described in the following
paragraph (and not otherwise), (B) subject to any laws or regulations applicable
thereto, in a Place of Payment for that series which is located outside the
United States, an office or agency where Securities of that series and related
coupons may be presented and surrendered for payment; provided, however, that if
the Securities of that series are listed on the Stock Exchange or any other
stock exchange located outside the United States and such stock exchange shall
so require, the Company will maintain a Paying Agent for the Securities of that
series in Luxembourg or any other required city located outside the United
States, as the case may be, so long as the Securities of that series are listed
on such exchange, and (C) subject to any laws or regulations applicable thereto,
in a Place of Payment for that series located outside the United States an
office or agency where any Registered Securities of that series may be
surrendered for registration of transfer, where Securities of that series may be
surrendered for 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 for the Securities of
that series of the location, and any change in the location, of any such office
or agency. If at any time the Company shall fail to maintain any such required
office or agency in respect of any series of Securities or shall fail to furnish
the Trustee for the Securities of that series with the address thereof, such
presentations (to the extent permitted by law), and surrenders of Securities of
that series may be made and notices and demands may be made or served at the
Corporate Trust Office of such Trustee, except that Bearer Securities of that
series and the related coupons may be presented and surrendered for payment at
the offices specified in the Security, and the Company hereby appoints the same
as its agent to receive such presentations, surrenders, notices and demands.

                                      -71-
<PAGE>

         Unless otherwise specified with respect to any Securities pursuant to
Section 301, no payment of principal (and premium, if any) or interest, if any,
on Bearer Securities shall be made at any office or agency of the Company in the
United States or by check mailed to any address in the United States or by
transfer to an account maintained with a bank located in the United States.
Payments will not be made in respect of Bearer Securities or coupons
appertaining thereto pursuant to presentation to the Company, or its designated
Paying Agents within the United States. Notwithstanding the foregoing, payment
of principal of (and premium, if any) and interest, if any, on any Bearer
Security denominated and payable in Dollars will be made at the office of the
Company's Paying Agent in the United States, if, and only if, payment in Dollars
of the full amount of such principal, premium or interest, as the case may be,
at all offices or agencies outside the United States maintained for that purpose
by the Company in accordance with this Indenture is illegal or effectively
precluded by exchange controls or other similar restrictions and the Company has
delivered to the Trustee an Opinion of Counsel to that effect. Unless otherwise
specified with respect to any Securities pursuant to Section 301 with respect to
a series of Securities, the Company hereby designates as a Place of Payment for
each series of Securities the office or agency of the Company in the Borough of
Manhattan, The City of New York, and initially appoints the Trustee at its
Corporate Trust Office as Paying Agent in such city and 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 (in or outside the Place of Payment) where the Securities of
one or more series may be presented or surrendered for any or all of the
purposes specified above in this Section 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 such purpose. The Company will give prompt written
notice to the Trustee for the Securities of each series so affected of any such
designation or rescission and of any change in the location of any such office
or agency.

                                      -72-
<PAGE>

         Unless otherwise specified with respect to any Securities pursuant to
Section 301, if and so long as the Securities of any series (i) are denominated
in a currency other than Dollars or (ii) may be payable in a currency other than
Dollars, or so long as it is required under any other provision of the
Indenture, then the Company will maintain with respect to each such series of
Securities, or as so required, a Currency Determination Agent.

Section 1003. Money 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 particular series of Securities and any related coupons, it will,
on or before each due date of the principal of (and premium, if any) or
interest, if any, on any of the Securities of that series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum in the currency or
currency unit in which the Securities of such series are payable (except as
otherwise specified pursuant to Section 301 for the Securities of such series
and except as provided in Sections 311(b) and 311(d)) sufficient to pay the
principal (and premium, if any) and interest, if any, so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Trustee for the Securities of such series of its
action or failure so to act.

         Whenever the Company shall have one or more Paying Agents for any
particular series of Securities and any related coupons, it will, prior to each
due date of the principal of (and premium, if any) or interest, if any, on any
such Securities, deposit with a Paying Agent for the Securities of such series a
sum (in the currency or currency unit described in the preceding paragraph)
sufficient to pay the principal (and premium, if any) and interest, if any, so
becoming due, such sum to be held in trust for the benefit of the Persons
entitled thereto, and (unless such Paying Agent is the Trustee for the
Securities of such series) the Company will promptly notify such Trustee of its
action or failure so to act.

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

                  (1) hold all sums held by it for the payment of the principal
         of (and premium, if any) or interest, if any, on Securities of that
         series in trust for the benefit of the Persons entitled thereto until
         such sums shall be paid to such Persons or otherwise disposed of as
         herein provided;

                  (2) give such Trustee notice of any default by the Company (or
         any other obligor upon the Securities) in the making of any payment of
         principal (or premium, if any) and interest, if any, on Securities of
         that series; and

                  (3) at any time during the continuation of any such default,
         upon the written request of such Trustee, forthwith pay to such Trustee
         all sums so held in trust by such Paying Agent.

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

                                      -73-
<PAGE>

         Any money deposited with the Trustee or any Paying Agent for the
Securities of any series, or then held by the Company, in trust for the payment
of the principal of (and premium, if any) and interest, if any, on any Security
of any particular series and all related coupons appertaining thereto and
remaining unclaimed for two years after such principal (and premium, if any) and
interest, if any, has become due and payable shall, unless otherwise required by
mandatory provisions of applicable escheat, or abandoned or unclaimed property
law, be paid to the Company on Company Request or (if then held by the Company)
shall be discharged from such trusts; and the Holder of such Security and all
related coupons shall, thereafter, as an unsecured general creditor, look only
to the Company for payment thereof, and all liability of such Trustee or such
Paying Agent with respect to such trust money, and all liability of the Company
as trustee thereof, shall thereupon cease; provided, however, that such Trustee
or such Paying Agent, before being required to make any such repayment may give
written notice to the Holder of such Security in the manner set forth in Section
106, that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will, unless otherwise required
by mandatory provisions of applicable escheat, or abandoned or unclaimed
property law, be repaid to the Company.

Section 1004. Statements as to Compliance.

         The Company will furnish to the Trustee for each series of Securities,
within 120 days after the end of each fiscal year, a brief certificate (which
need not comply with Section 102) from the principal executive, financial or
accounting officer of the Company as to his or her knowledge of the Company's
compliance with all conditions and covenants under this Indenture (such
compliance to be determined without regard to any period of grace or requirement
of notice provided under this Indenture). If the Company shall not be in such
compliance, the certificate shall specify such non-compliance and the nature and
status thereof of which the officer shall have knowledge.

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

Section 1005. Corporate Existence.

         Subject to Article 8, the Company will do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence.

                                      -74-
<PAGE>

Section 1006. Limitation on Liens.

         (a) The Company will not, nor will it permit any Domestic Subsidiary,
directly or indirectly, to issue, assume or guarantee any Debt if that Debt is
secured by any Lien upon any Principal Property of the Company or of a Domestic
Subsidiary or upon any shares of stock or indebtedness of any Domestic
Subsidiary (whether such principal property, shares of stock or indebtedness is
owned at ________ __, 2002 or thereafter acquired) without in any such case
effectively securing, concurrently with the issuance, assumption or guaranty of
any such Debt, any series of Securities (together with, if the Company shall so
determine, any other indebtedness of or guaranteed by the Company or such
Domestic Subsidiary ranking equally with such series of Securities and then
existing or thereafter created) equally and ratably with such Debt; provided,
however, that the foregoing restriction shall not apply to Permitted Liens.

         (b) The provisions of subsection (a) of this Section 1006 shall not
apply to the issuance, assumption or guarantee by the Company or any Domestic
Subsidiary of Debt secured by a Lien which would otherwise be subject to the
foregoing restrictions up to an aggregate amount which, together with all other
Debt of the Company and its Domestic Subsidiaries secured by Liens (not
including Permitted Liens) that would otherwise be subject to the foregoing
restrictions and the Value of Sale and Leaseback Transactions in existence at
such time (other than any Sale and Leaseback Transaction that, if such Sale and
Leaseback Transaction had been a Lien, would have been permitted by clause (1)
of the definition of Permitted Lien and other than Sale and Leaseback
Transactions as to which application of amounts have been made in accordance
with Section 1007(b)), does not at the time exceed the greater of (x) 10% of
Consolidated Net Tangible Assets and (y) 15% of Consolidated Capitalization.

         (c) If at any time the Company or any Domestic Subsidiary shall issue,
assume or guarantee any Debt secured by any Lien and if subsection (a) of this
Section 1006 requires that any series of Securities be secured equally and
ratably with such Debt, the Company will promptly execute, at its expense, any
instruments necessary to so equally and ratably secure such series of Securities
and deliver the same to the Trustee for such series and will promptly furnish to
such Trustee:

                  (i) an Officers' Certificate stating that the covenant of the
         Company contained in subsection (a) of this Section 1006 has been
         complied with; and

                  (ii) an Opinion of Counsel to the effect that such covenant
         has been complied with, and that any instruments executed by the
         Company in the performance of such covenant comply with the
         requirements of such covenant.

         In the event that the Company shall hereafter secure any series of
Securities equally and ratably with any other obligation or indebtedness
pursuant to the provisions of this Section 1006, the Trustee for such series is
hereby authorized, but not required, to enter into an indenture or agreement
supplemental hereto and to take such action, if any, as it may deem advisable to
enable it to enforce effectively the rights of the Holders of such series of
Securities so secured, equally and ratably with such other obligation or
indebtedness.

                                      -75-
<PAGE>

Section 1007. Limitation on Sale and Leaseback Transactions.

         The Company will not, nor will it permit any Domestic Subsidiary to,
enter into any Sale and Leaseback Transaction, unless the net proceeds of such
Sale and Leaseback Transaction are at least equal to the sum of all costs
incurred by the Company or any Domestic Subsidiary in connection with the
acquisition and the construction of any improvements on, the Principal Property
to be leased and:

                  (a) the Company or such Domestic Subsidiary would be entitled,
           either pursuant to the provisions of (1) clause (i) of the definition
           of Permitted Liens, or (2) Section 1006(b), to incur Debt secured by
           a Lien on such Principal Property without equally and ratably
           securing any of series of Securities; or

                  (b) the Company or such Domestic Subsidiary shall, within 120
           days of the effective date of any such arrangement (or in the case of
           (y) below, within six months thereafter pursuant to a firm purchase
           commitment entered into within such 120 day period), apply an amount
           equal to the proceeds from such Sale and Leaseback Transaction
           relating to such Principal Property (x) to the payment or other
           retirement of Debt incurred or assumed by the Company or any
           Subsidiary that ranks senior to or pari passu with such series of
           Securities (other than Debt owned by the Company or any Subsidiary)
           or (y) to the purchase of Principal Property (other than the
           Principal Property involved in such sale).

Section 1008. Waiver of Certain Covenants.

         The Company may omit in any particular instance to comply with any
covenant or condition set forth in Sections 1004 to 1007, inclusive, or
established pursuant to Sections 301 or 901 if before or after the time for such
compliance the Holders of more than 50% in principal amount of the Outstanding
Securities of each series of Securities affected by the omission shall, in each
case by Act of such Holders, either waive such compliance in such instance or
generally waive compliance with such covenant or condition, but no such waiver
shall extend to or affect such covenant or condition except to the extent so
expressly waived, and, until such waiver shall become effective, the obligations
of the Company and the duties of the Trustee for the Securities of each series
with respect to any such covenant or condition shall remain in full force and
effect.

Section 1009. Payment of Additional Amounts.

         If specified pursuant to Section 301, the provisions of this Section
1009 shall be applicable to Securities of any series.

         The Company will, subject to the exceptions and limitations set forth
below, pay to the Holder of any Security or coupon who is a United States Alien
such additional amounts as may be necessary so that every net payment on such
Security or coupon, after deduction or withholding by the Company or any of its
Paying Agents for or on account of any present or future tax, assessment or
other governmental charge imposed upon or as a result of such payment by the
United States (or any political subdivision or taxing authority thereof or
therein), will not be less than the amount provided in such Security or in such
coupon to be then due and payable. However, the Company will not be required to
make any payment of additional amounts for or on account of:

                                      -76-
<PAGE>

                  (a) any tax, assessment or other governmental charge that
         would not have been so imposed but for (i) the existence of any present
         or former connection (other than the mere fact of being a Holder or
         beneficial owner of a Security or coupon) between such Holder or the
         beneficial owner of such Security or coupon (or between a fiduciary,
         settler or beneficiary of, or a person holding a power over, such
         Holder or such beneficial owner, if such Holder or such beneficial
         owner is an estate or trust, or a member or shareholder of such Holder
         or such beneficial owner, if such Holder or such beneficial owner is a
         partnership or corporation) and the United States, including, without
         limitation, such Holder or such beneficial owner (or such fiduciary,
         settler, beneficiary, person holding a power, member or shareholder)
         being or having been a citizen, resident or treated as a resident
         thereof or being or having been engaged in trade or business or present
         therein or having or having had a permanent establishment therein, or
         (ii) such Holder's or such beneficial owner's present or former status
         as a personal holding company, foreign personal holding company,
         controlled foreign corporation or passive foreign investment company
         with respect to the United States or as a corporation that accumulates
         earnings to avoid United States federal income tax;

                  (b) any tax, assessment or other governmental charge which
         would not have been so imposed but for the presentation by the Holder
         of such Security or coupon for payment on a date more than 10 days
         after the date on which such payment became due and payable or the date
         on which payment thereof is duly provided for, whichever occurs later;

                  (c) any estate, inheritance, gift, sales, transfer, personal
         property tax or any similar tax, assessment or other governmental
         charge;

                  (d) any tax, assessment or other governmental charge required
         to be withheld by any Paying Agent from any payment in respect of any
         Security or coupon, if such payment can be made without such
         withholding by at least one other Paying Agent;

                  (e) any tax, assessment or other governmental charge which is
         payable otherwise than by withholding from payments in respect of such
         Security or coupon;

                  (f) any tax, assessment or other governmental charge imposed
         on a Holder or beneficial owner of a Security or coupon that (i)
         actually or constructively owns 10 percent or more of the total
         combined voting power of all classes of stock of the Company entitled
         to vote within the meaning of Section 871(h)(3) of the Code or that is
         a controlled foreign corporation related to the Company through stock
         ownership or (ii) is a bank described in Section 881(c)(3)(A) of the
         Code;

                  (g) any tax, assessment or other governmental charge imposed
         as a result of the failure to comply with applicable certification,
         information, documentation or other reporting requirements concerning
         the nationality, residence, identity or connection with the United
         States of the Holder or beneficial owner of a Security or coupon, if
         such compliance is required by statute or by regulation of the United
         States, as a precondition to relief or exemption from such tax,
         assessment or other governmental charge;

                                      -77-
<PAGE>

                  (h) any tax, assessment or other governmental charge imposed
         with respect to payments on any Registered Security by reason of the
         failure of the Holder or beneficial owner to fulfill the statement
         requirement of Sections 871(h) or 881(c) of the Code; or

                  (i) any combination of items (a), (b), (c), (d), (e), (f), (g)
         and (h);

nor will additional amounts be paid with respect to any payment on any such
Security or coupon to a Holder who is a fiduciary or partnership or other than
the sole beneficial owner of such payment to the extent such payment would be
required by the laws of the United States (or any political subdivision thereof)
to be included in the income for federal income tax purposes of a beneficiary or
settler with respect to such fiduciary or a member of such partnership or a
beneficial owner who would not have been entitled to payment of the additional
amounts had beneficiary, settler, member or beneficial owner been the Holder of
such Security or coupon.

         The term "United States Alien" means any corporation, partnership,
individual or fiduciary that is, as to the United States, a foreign corporation,
a nonresident alien individual, a nonresident fiduciary of a foreign estate or
trust, or a foreign partnership one or more of the members of which is, as to
the United States, a foreign corporation, a nonresident alien individual or a
nonresident fiduciary of a foreign estate or trust.

         Whenever in this Indenture there is mentioned, in any context, the
payment of the principal of (and premium, if any) and interest, if any, on any
Security or payment with respect to any coupon of any series, such mention shall
be deemed to include mention of the payment of additional amounts provided for
in the terms of such Securities and this Section to the extent that, in such
context, additional amounts are, were or would be payable in respect thereof
pursuant to the provisions of this Section and express mention of the payment of
additional amounts (if applicable) in any provisions hereof shall not be
construed as excluding additional amounts in those provisions hereof where such
express mention is not made.

         If the Securities of a series provide for the payment of additional
amounts as contemplated by Section 301(20), at least 10 days prior to the first
Interest Payment Date with respect to that series of Securities (or if the
Securities of that series will not bear interest prior to maturity, the first
day on which a payment of principal and any premium is made), and at least 10
days prior to each date of payment of principal (and premium, if any) and
interest, if any, if there has been any change with respect to the matters set
forth in the below mentioned Officers' Certificate, the Company will furnish the
Trustee for that series of Securities and the Company's principal Paying Agent
or Paying Agents, if other than such Trustee, with an Officers' Certificate
instructing such Trustee and such Paying Agent or Paying Agents whether such
payment of principal of (and premium, if any) and interest, if any, on the
Securities of that series shall be made to Holders of Securities of that series
or any related coupons who are United States Aliens without withholding for or
on account of any tax, assessment or other governmental charge referred to above
or described in the Securities of that series. If any such withholding shall be
required, then such Officers' Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Securities
or coupons and the Company will pay to the Trustee for such series of Securities
or such Paying Agent such additional amounts as may be required pursuant to the
terms applicable to such series. The Company covenants to indemnify the Trustee
for such series of Securities and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out of or in connection with
actions taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section 1009.

                                      -78-
<PAGE>

Section 1010. Calculation of Original Issue Discount.

         If applicable, the Company shall file with the Trustee promptly at the
end of each calendar year (i) 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 (ii) 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.

                                   ARTICLE 11

                            REDEMPTION OF SECURITIES

Section 1101. Applicability of This Article.

         Redemption of Securities of any series (whether by operation of a
sinking fund or otherwise) as permitted or required by any form of Security
issued pursuant to this Indenture shall be made in accordance with such form of
Security and this Article; provided, however, that if any provision of any such
form of Security shall conflict with any provision of this Article, the
provision of such form of Security shall govern.

Section 1102. Election to Redeem; Notice to Trustee.

         The election of the Company to redeem any Securities of any series
shall be evidenced by or pursuant to a Board Resolution. In case of any
redemption at the election of the Company of the Securities of any particular
series, 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 for
the Securities of such series) notify such Trustee by Company Request of such
Redemption Date and of the principal amount of Securities of that series to be
redeemed and shall deliver to such Trustee such documentation and records as
shall enable such Trustee to select the Securities to be redeemed pursuant to
Section 1103. In the case of any redemption of Securities of any series 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 for Securities of such series with an Officers' Certificate evidencing
compliance with such restriction.

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

         If less than all the Securities are to be redeemed, the Company may
select the series to be redeemed, and if less than all the Securities of any
series are to be redeemed, the particular Securities of that series to be
redeemed shall be selected not more than 60 days prior to the Redemption Date by
the Trustee for the Securities of such series, from the Outstanding Securities
of that series not previously called for redemption, by such method as such
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Securities of that series, or any integral multiple thereof) of the principal
amount of Securities of that series of a denomination larger than the minimum
authorized denomination for Securities of that series pursuant to Section 302 in
the currency or currency unit in which the Securities of such series are
denominated.

                                      -79-
<PAGE>

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

         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 Security 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 1104. Notice of Redemption.

         Notice of redemption shall be given in the manner provided in Section
106 not later than the thirtieth day and not earlier than the sixtieth day prior
to the Redemption Date, to each Holder of Securities to be redeemed.

         All notices of redemption shall state:

                  (1) the Redemption Date,

                  (2) the Redemption Price,

                  (3) if less than all Outstanding Securities of a particular
         series are to be redeemed, the identification (and, in the case of
         partial redemption, the respective principal amounts) of the particular
         Securities to be redeemed, including the Identifying Number of such
         Securities,

                  (4) that on the Redemption Date the Redemption Price will
         become due and payable upon each such Security or portion thereof, and
         that interest thereon, if any (or in the case of OID Securities,
         original issue discount), shall cease to accrue on and after said date,

                  (5) the place or places where such Securities, together in the
         case of Bearer Securities with all coupons appertaining thereto, if
         any, maturing after the Redemption Date are to be surrendered for
         payment of the Redemption Price,

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

                  (7) that, unless otherwise specified in such notice, Bearer
         Securities of any series, if any, surrendered for redemption must be
         accompanied by all coupons maturing subsequent to the date fixed for
         redemption or the amount of any such missing coupon or coupons will be
         deducted from the Redemption Price or security or indemnity
         satisfactory to the Company, the Trustee for such series and any Paying
         Agent is furnished,

                                      -80-
<PAGE>

                  (8) if Bearer Securities of any series are to be redeemed and
         any Registered Securities of such series are not to be redeemed, and if
         such Bearer Securities may be exchanged for Registered Securities not
         subject to redemption on this Redemption Date pursuant to Section 305
         or otherwise, the last date, as determined by the Company, on which
         such exchanges may be made, and

                  (9) Identifying Numbers of such Securities to be redeemed.

         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 written request,
by the Trustee for such Securities in the name and at the expense of the
Company.

Section 1105. Deposit of Redemption Price.

         Prior to the opening of business on any Redemption Date, the Company
shall deposit with the Trustee for the Securities to be redeemed or with a
Paying Agent for such Securities (or, if the Company is acting as its own Paying
Agent for such Securities, segregate and hold in trust as provided in Section
1003) an amount of money in the currency or currency unit in which the
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Securities of such Series and except as provided in Sections
311(b) and 311(d)) sufficient to pay the principal amount of (and premium, if
any, thereon), and (except if the Redemption Date shall be an Interest Payment
Date) any accrued interest on, all the Securities which are to be redeemed on
that date.

Section 1106. Securities Payable on Redemption Date.

         Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified in the currency or currency unit in which the
Securities of such series are payable (except as otherwise provided pursuant to
Section 301 for the Securities of such series and except as provided in Sections
311(b) and 311(d)) and from and after such date (unless the Company shall
default in the payment of the Redemption Price) such Securities shall cease to
bear interest and the coupons for such interest appertaining to any Bearer
Securities so to be redeemed, except to the extent provided below, shall be
void. Upon surrender of such Security for redemption in accordance with said
notice together with all coupons, if any, appertaining thereto maturing after
the Redemption Date, such Security or specified portions thereof shall be paid
by the Company at the Redemption Price; provided, however, that installments of
interest on Bearer Securities whose Stated Maturity is on or prior to the
Redemption Date shall be payable only at an office or agency located outside the
United States (except as otherwise provided in Section 1002) and, unless
otherwise specified as contemplated by Section 301, only upon presentation and
surrender of coupons for such interest, and provided, further, that unless
otherwise specified as contemplated by Section 301, installments of interest on
Registered Securities whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such at the close of business on the
relevant Record Dates according to their terms and the provisions of Section
307.

                                      -81-
<PAGE>

         If any Bearer Security surrendered for redemption shall not be
accompanied by all coupons appertaining thereto maturing after the Redemption
Date, such Security may be paid after deducting from the Redemption Price an
amount equal to the face amount of all such missing coupons or the surrender of
such missing coupon or coupons may be waived by the Company if there is
furnished to the Company, the Trustee for such Security and any Paying Agent
such security or indemnity as they may require to save the Company, such Trustee
and any Paying Agent harmless. If thereafter the Holder of such Security shall
surrender to such Trustee or any Paying Agent any such missing coupon in respect
of which a deduction shall have been made from the Redemption Price, such Holder
shall be entitled to receive the amount so deducted; provided, however, that
interest represented by coupons shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.

         If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal thereof (and premium, if any,
thereon) shall, until paid, bear interest from the Redemption Date at a rate per
annum equal to the rate borne by the Security (or, in the case of (i) OID
Securities, the Security's Yield to Maturity or (ii) Indexed Securities, the
rate determined in accordance with the specified terms of those Securities).

Section 1107. Securities Redeemed in Part.

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

Section 1108. Tax Redemption; Special Tax Redemption.

         (a) If specified pursuant to Section 301, Securities of any series may
be redeemed at the option of the Company in whole, but not in part, on not more
than 60 days' and not less than 30 days' notice, on any Redemption Date at the
Redemption Price specified pursuant to Section 301, if the Company determines
that (A) as a result of any change in or amendment to the laws (or any
regulations or rulings promulgated thereunder) of the United States or of any
political subdivision or taxing authority thereof or therein affecting taxation,
or any change in official position regarding application or interpretation of
such laws, regulations or rulings (including a holding by a court of competent
jurisdiction in the United States), which change or amendment is announced or
becomes effective on or after a date specified in Section 301 with respect to
any Security of such series, the Company has or will become obligated to pay
additional amounts pursuant to Section 1009 with respect to any Security of such
series or (B) on or after a date specified in Section 301 with respect to any
Security of such series, any action has been taken by any taxing authority of,
or any decision has been rendered by a court of competent jurisdiction in, the
United States or any political subdivision or taxing authority thereof or
therein, including any of those actions specified in (A) above, whether or not
such action was taken or decision was rendered with respect to the Company, or
any change, amendment, application or interpretation shall be officially
proposed, which, in any such case, in the Opinion of Counsel to the Company will
result in a material probability that the Company will become obligated to pay
additional amounts pursuant to Section 1009 with respect to any Security of such
series, and (C) in any such case specified in (A) or (B) above the Company, in
its business judgment, determines that such obligation cannot be avoided by the
use of reasonable measures available to the Company.

                                      -82-
<PAGE>

         (b) Unless otherwise specified pursuant to Section 301, if the Company
shall determine that any payment made outside the United States by the Company
or any of their Paying Agents of principal or interest due in respect of any
Bearer Security (an "Affected Security") of such series or any coupon
appertaining thereto would, under any present or future laws or regulations of
the United States, be subject to any certification, information or other
reporting requirement of any kind, the effect of which requirement is the
disclosure to the Company, any Paying Agent or any governmental authority of the
nationality, residence or identity (as distinguished from, for example, status
as a United States Alien) of a beneficial owner of such Affected Security of
such series or coupon that is a United States Alien (other than such a
requirement that (i) would not be applicable to a payment made by the Company,
or any one of their Paying Agents (A) directly to the beneficial owner or (B) to
a custodian, nominee or other agent of the beneficial owner, (ii) can be
satisfied by such custodian, nominee or other agent certifying to the effect
that such beneficial owner is a United States Alien; provided that, in each case
referred to in clauses (i)(B) or (ii), payment by such custodian, nominee or
other agent to such beneficial owner is not otherwise subject to any such
requirement (other than a requirement which is imposed on a custodian, nominee
or other agent described in item (iv) of this sentence), (iii) would not be
applicable to a payment made by at least one other Paying Agent of the Company
or (iv) is applicable to a payment to a custodian, nominee or other agent of the
beneficial owner of such Security who is a United States person (as hereinafter
defined), a controlled foreign corporation for United States tax purposes, a
foreign person 50 percent or more of the gross income of which for the
three-year period ending with the close of its taxable year preceding the year
of payment is effectively connected with a United States trade or business, or
is otherwise related to the United States), the Company shall elect by notice to
the Trustee for such series of Securities either (x) to redeem the Affected
Securities of such series, as a whole, at a redemption price equal to the
principal amount thereof, together with interest accrued to the date fixed for
redemption, or (y) if the conditions of the next succeeding paragraph are
satisfied, to pay the additional amounts specified in such paragraph. The
Company shall make such determination and election as soon as practicable and
give prompt notice thereof (the "Determination Notice") in the manner described
in Section 106 stating the effective date of such certification, information or
reporting requirement, whether the Company has elected to redeem the Affected
Securities of such series or to pay the additional amounts specified in the next
succeeding paragraph, and (if applicable) the last date by which the redemption
of the Affected Securities of such series must take place, as provided in the
next succeeding sentence. If the Company elects to redeem the Affected
Securities of such series, such redemption shall take place on such date, not
later than one year after the giving of the Determination Notice, as the Company
shall specify by notice to such Trustee given not less than 45 nor more than 75
days before the Redemption Date. Notice of such redemption of the Affected
Securities of such series shall be given to the Holders thereof not less than 30
days nor more than 60 days prior to the Redemption Date. Notwithstanding the
foregoing, the Company shall not so redeem the Affected Securities of such
series if the Company shall subsequently determine by notice to the Trustee, not
less than 30 days prior to the Redemption Date, that subsequent payments on the
Affected Securities of such series would not be subject to any such
certification, information or other reporting requirement, in which case the
Company shall give prompt notice of such subsequent determination in the manner
specified in Section 106 and any earlier redemption notice shall be revoked and
be of no further effect. The right of the Holders of Affected Securities called
for redemption to exchange such Affected Securities for Registered Securities
(which Registered Securities will remain Outstanding following such redemption)
will terminate on the fifteenth day prior to the Redemption Date, and no further
exchanges of Affected Securities for Registered Securities shall be permitted
unless the Company shall have made the subsequent determination and given the
notice referred to in the preceding sentence. As used hereinabove, "United
States person" means any citizen or resident of the United States, any
corporation, partnership or other entity created or organized in or under the
laws of the United States and any estate or trust the income of which is subject
to United States federal income taxation regardless of its source.

                                      -83-
<PAGE>

         If and so long as the certification, information or other reporting
requirement referred to in the preceding paragraph would be fully satisfied by
payment of a withholding tax, backup withholding tax or similar charge, the
Company may elect by notice to the Trustee to pay such additional amounts as may
be necessary so that every net payment made outside the United States following
the effective date of such requirement by the Company or any of their Paying
Agents of principal (or premium, if any) or interest, if any, due in respect of
any Affected Security of such series or any coupon appertaining thereto to a
Holder who certifies that the beneficial owner is a United States Alien (but
without any requirement that the nationality, residence or identity of such
beneficial owner be disclosed to the Company, any Paying Agent or any
governmental authority), after deduction or withholding for or on account of
such withholding tax, backup withholding tax or similar charge (other than a
withholding tax, backup withholding tax or similar charge that (i) is the result
of a certification, information or other reporting requirement described in the
third parenthetical clause of the first sentence of the preceding paragraph or
(ii) is imposed as a result of presentation of any such Affected Security or
such coupon for payment more than 10 days after the date on which such payment
becomes due and payable or on which payment thereof was duly provided for,
whichever occurs later), will not be less than the amount provided in such
Affected Security or such coupon to be then due and payable. In the event the
Company elects to pay such additional amounts, (the Company's election to
exercise such right to be evidenced by prompt notice to the Trustee for the
Securities of the appropriate series), the Company will have the right, at its
sole option, at any time, to redeem the Affected Securities of such series as a
whole, but not in part, at the Redemption Price, subject to the provisions of
the last four sentences of the immediately preceding paragraph. If the Company
has made the determination described in the preceding paragraph with respect to
certification, information or other reporting requirements applicable only to
interest and subsequently makes a determination in the manner and of the nature
referred to in such preceding paragraph with respect to such requirements
applicable to principal, the Company will redeem the Affected Securities of such
series in the manner and on the terms described in the preceding paragraph
unless the Company elects to have the provisions of this paragraph apply rather
than the provisions of the immediately preceding paragraph. If in such
circumstances the Affected Securities of such series are to be redeemed, the
Company shall have no obligation to pay additional amounts pursuant to this
paragraph with respect to principal (or premium, if any) or interest accrued and
unpaid after the date of the notice of such determination indicating such
redemption, but will be obligated to pay such additional amounts with respect to
interest accrued and unpaid to the date of such determination. If the Company
elects to pay additional amounts pursuant to this paragraph and the condition
specified in the first sentence of this paragraph should no longer be satisfied,
then the Company shall promptly redeem the Affected Securities of such series in
whole, but not in part, at the Redemption Price subject to the provisions of the
last four sentences of the immediately preceding paragraph. If the Company
elects to, or is required to, redeem the Affected Securities of such series
pursuant to this paragraph, it shall publish in the manner and to the extent
provided in Section 106 prompt notice thereof. If the Affected Securities of
such series are to be redeemed pursuant to this paragraph, the redemption shall
take place on such date, not later than one year after publication of the notice
of redemption, as the Company shall specify by notice to the Trustee for such
series of Securities at least 60 days prior to the Redemption Date. Any
redemption payments made by the Company pursuant to this paragraph shall be
subject to the continuing obligation of the Company to pay additional amounts
pursuant to this paragraph.

                                      -84-
<PAGE>

                                   ARTICLE 12

                                  SINKING FUNDS

Section 1201.     Applicability of This Article.

         Redemption of Securities through operation of a sinking fund as
permitted or required by any form of Security issued pursuant to this Indenture
shall be made in accordance with such form of Security and this Article;
provided, however, that if any provision of any such form of Security shall
conflict with any provision of this Article, the provision of such form of
Security shall govern.

         The minimum amount of any sinking fund payment provided for by the
terms of Securities of any particular series is herein referred to as a
"mandatory sinking fund payment", and any payment in excess of such minimum
amount provided for by the terms of Securities of any particular series is
herein referred to as an "optional sinking fund payment". If provided for by the
terms of Securities of any particular series, the cash amount of any sinking
fund payment may be subject to reduction as provided in Section 1202. Each
sinking fund payment shall be applied to the redemption of Securities of any
particular series as provided for by the terms of Securities of that series.

Section 1202. Satisfaction of Sinking Fund Payments With Securities.

         The Company (1) may deliver Outstanding Securities of a series (other
than any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, 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 the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the terms
of such series; provided, however, that such Securities have not been previously
so credited. Such Securities shall be received and credited for such purpose by
the Trustee for such Securities at the principal amount thereof and the amount
of such sinking fund payment shall be reduced accordingly.

                                      -85-
<PAGE>

Section 1203. Redemption of Securities for Sinking Fund.

         Not less than 60 days prior to each sinking fund payment date for any
particular series of Securities, the Company will deliver to the Trustee for the
Securities of such series an Officers' Certificate specifying the amount of the
next ensuing mandatory sinking fund payment for that series pursuant to the
terms of that series, the portion thereof, if any, which is to be satisfied by
payment of cash in the currency or currency unit in which the Securities of that
series are payable (except as otherwise specified pursuant to Section 301 for
the Securities of that series and except as provided in Sections 311(b) and
311(d)) and the portion thereof, if any, which is to be satisfied by delivering
and crediting Securities of that series pursuant to Section 1202 and shall state
the basis for such credit and that such Securities have not previously been so
credited and will also deliver to such Trustee any Securities to be so
delivered. Such Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense
of the Company in the manner provided in Section 1104. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and
in the manner stated in Sections 1106 and 1107.

                                   ARTICLE 13

                        MEETINGS OF HOLDERS OF SECURITIES

Section 1301. Purposes for Which Meetings May Be Called.

         If Securities of a series are issuable as Bearer Securities, a meeting
of Holders of Securities of such series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be made, given or taken by Holders of Securities of such
series.

Section 1302. Call, Notice and Place of Meetings.

         (a) The Trustee for any series of Securities that includes Bearer
Securities, may at any time call a meeting of the Holders of Securities of such
series for any purpose specified in Section 1301, to be held at such time and at
such place in the Borough of Manhattan, The City of New York, or in London, as
such Trustee shall determine. Notice of every meeting of Holders of Securities
of such 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 106, not less than 20 nor more than 180 days
prior to the date fixed for the meeting.

                                      -86-
<PAGE>

         (b) In case at any time the Company, pursuant to a Board Resolution, or
the Holders of at least 10% in principal amount of the Outstanding Securities of
any such series shall have requested the Trustee for any such series to call a
meeting of the Holders of Securities of such series for any purpose specified in
Section 1301, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and such Trustee shall not have made the
first publication of the notice of such meeting within 30 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, or in London, for such
meeting and may call such meeting for such purposes by giving notice thereof as
provided in subsection (a) of this Section.

Section 1303. 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 for such series and its counsel and any representatives of the Company
and its counsel.

Section 1304. Quorum; Action.

         The Persons entitled to vote a majority in principal amount of the
Outstanding Securities of a series shall constitute a quorum for a meeting of
Holders of Securities of such series. In the absence of a quorum within 30
minutes of 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 such adjourned meeting, such
adjourned 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
adjourned meeting. Subject to Section 1305(d), notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1302(a), except that
such notice need be given only once not less than five days prior to the date on
which the meeting is scheduled to be reconvened. Notice of the reconvening of an
adjourned meeting shall state expressly that Persons entitled to vote a majority
in principal amount of the Outstanding Securities of such series shall
constitute a quorum.

         Except as limited by the proviso to Section 902, any resolution
presented to a meeting or adjourned meeting duly reconvened at which a quorum is
present as aforesaid may be adopted 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 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other action 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 that series.

                                      -87-
<PAGE>

         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 and the related coupons,
whether or not present or represented at the meeting.

Section 1305. Determination of Voting Rights; Conduct and Adjournment of
Meetings.

         (a) Notwithstanding any other provision of this Indenture, the Trustee
for any series of Securities that includes Bearer Securities 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 104 and the
appointment of any proxy shall be proved in the manner specified in Section 104
or by having the signature of the person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Securities. 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 104 or other proof.

         (b) The Trustee for any series of Securities that includes Bearer
Securities 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 1302(b), 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.

         (c) At any meeting each Holder of a 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 as determined in accordance with Section
115; 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.

         (d) Any meeting of Holders of Securities of any series duly called
pursuant to Section 1302 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.

                                      -88-
<PAGE>

Section 1306. 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
duplicate, 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 1302 and, if
applicable, Section 1304. 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 for such
series of Securities to be preserved by such 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 14

                             CONVERSION AND EXCHANGE

Section 1401. Applicability of Article.

         Securities of any series which are designated as being convertible into
or exchangeable for any other security of the Company or another Person prior to
their Stated Maturity shall be convertible or exchangeable in accordance with
their terms and (except as otherwise specified pursuant to Section 301 for the
Securities of such series) in accordance with this Article.

Section 1402. Conversion Privilege.

         A Holder of a Security of a series, which, by its terms, is convertible
into or exchangeable for any other security of the Company or another Person,
may convert or exchange such Security at any time during the period and in the
manner as is set forth in the terms of the Securities of such series. The number
of shares or units of such other security issuable upon conversion of or
exchange for a Security shall be determined in the manner set forth in the terms
of such Security.

                                      -89-

<PAGE>

Section 1403. Conversion and Exchange Procedure.

         To convert or exchange a Security, the Holder thereof must comply with
and satisfy all of the terms, conditions and other requirements set forth in the
terms of such Security. As soon as practicable, the Company shall deliver
through the relevant conversion or exchange agent a certificate for the number
of shares or units of the security issuable upon the conversion or exchange.

Section 1404. Fractional Shares.

         The terms of convertible and exchangeable Securities shall set forth
whether the Company will issue or deliver a fractional share or units of a
security upon conversion or exchange of a Security, or will deliver its check
for the value of the fractional share or units of a security.

Section 1405. Taxes on Conversion or Exchange.

         The terms of convertible and exchangeable Securities shall state
whether the Company will pay any documentary, stamp or similar issue or transfer
tax, due on the issue of shares or units of the security issuable and whether
upon the conversion or exchange the Holder will be required to pay any such tax
which is due because securities are issued in a name other than that of such
Holder.

Section 1406. Company to Provide Securities Issuable Upon Conversion or
Exchange.

         The Company shall reserve or otherwise provide for a sufficient amount
of its respective securities or securities of a third Person which would be
issuable upon the conversion or exchange of the Securities, including reserving
out of its respective authorized but unissued equity securities or its equity
securities held in treasury enough shares to permit the conversion or exchange
of the Securities.

         All shares of equity securities of the Company which may be issued upon
conversion or exchange of the Securities shall be fully paid and nonassessable.

         The Company shall endeavor to comply with all securities laws
regulating the offer and delivery of shares or units of its respective
securities upon conversion or exchange of Securities and will endeavor to list
such shares or units on any national securities exchange on which such shares or
units are listed.`

Section 1407. Adjustments.

         The terms of the Securities shall set forth the nature of mechanics for
and notice of any adjustments in the number or price of securities issuable upon
conversion or exchange of the Securities.

                                      -90-
<PAGE>

Section 1408. Valuation.

         The terms of the Securities shall set forth the method or methods for
valuing the securities issuable upon conversion or exchange of the Securities.

Section 1409. Reorganization of Company.

         The terms of the Securities shall set forth the rights, if any, of the
Holders to, convert or exchange their Securities in the event that the Company
is a party to a transaction subject to Article 8 or a merger which reclassifies
or changes its outstanding Securities into which the Securities are convertible
or exchangeable.

Section 1410. Trustee's Disclaimer.

         The Trustee has no duty to determine when an adjustment under this
Article of the terms of the Securities should be made, how it should be made or
what it should be. The Trustee makes no representation as to the validity or
value of any securities issued upon conversion of or exchange for Securities.
The Trustee shall not be responsible for the failure of the Company to comply
with this Article. Each conversion and exchange agent other than the Company
shall have the same protection under this Section 1410 as the Trustee.

                                      * * *

         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.

                                      -91-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Indenture dated
as of ________ __, 2002 to be duly executed, as of _________ __, 2002.

                                        TOYS "R" US, INC.,
                                         Issuer

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

                                        THE BANK OF NEW YORK,
                                         Trustee

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

                                      -92-
<PAGE>

                                                                       EXHIBIT A

[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE A DEFINITIVE BEARER SECURITY IN
EXCHANGE FOR AN INTEREST IN A TEMPORARY GLOBAL SECURITY OR TO EXCHANGE AN
INTEREST IN A TEMPORARY GLOBAL SECURITY FOR AN INTEREST IN A PERMANENT GLOBAL
SECURITY]

                                TOYS "R" US, INC.

                   [Insert title or description of Securities]

         Reference is hereby made to the Indenture, dated as of ___________,
2002 (the "Indenture") between Toys "R" Us, Inc. (the "Company") and The Bank of
New York, as Trustee. Terms used herein unless otherwise defined shall have the
meanings ascribed to them in the Indenture.

         This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:

                  (i) beneficially owned by persons that are not United States
         persons (as defined below);

                  (ii) owned by United States person(s) that are (a) foreign
         branches of United States financial institutions (as defined in United
         States Treasury Regulation Section 1.165-12(c)(1)(iv) ("financial
         institutions")) purchasing for their own account or for resale, or (b)
         United States person(s) who acquired the beneficial interest in the
         temporary Global Security through foreign branches of United States
         financial institutions and who hold the beneficial interest in the
         temporary Global Security through such United States financial
         institutions on the date hereof (and in either case (a) or (b), each
         such United States financial institution hereby agrees, for the benefit
         of the Company, that it will comply with the requirements of Section
         165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of
         1986, as amended, and the regulations thereunder); or

                  (iii) owned by financial institution(s) for the purpose of
         resale during the restricted period (as defined in United States
         Treasury Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition,
         financial institution(s) described in this clause (iii) (whether or not
         also described in clause (i) or (ii)), further certify that they have
         not acquired the beneficial interest in the temporary Global Security
         for the purpose of resale directly or indirectly to a United States
         person or to a person within the United States.

<PAGE>

         "United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).

         [This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
exchange of such portion of the temporary Global Security for [definitive Bearer
Securities] [interests in a permanent Global Security] cannot be made until we
are able to provide a certificate in this form.]* We undertake to advise you
promptly by tested telex on or prior to the date on which you intend to submit
your certification relating to the above-captioned Securities held by you for
our account if any applicable statement herein is not correct on such date, and
in the absence of any such notification it may be assumed that this
certification applies as of such date.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated:

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

                                         [Name of Person Making Certification]

                                         By:
                                            ------------------------------------

*  Delete if inappropriate.

<PAGE>

                                                                       EXHIBIT B

[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING THE EXCHANGE OF A TEMPORARY GLOBAL SECURITY FOR DEFINITIVE
SECURITIES OR FOR A PORTION OF A PERMANENT GLOBAL SECURITY]

                                TOYS "R" US, INC.

                   [Insert title or description of Securities]

         Reference is hereby made to the Indenture, dated as of _____________,
2002 (the "Indenture") between Toys "R" Us, Inc. (the "Company") and The Bank of
New York, as Trustee. Terms used herein unless otherwise defined shall have the
meanings ascribed to them in the Indenture.

         We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities which is herewith submitted to be exchanged for
[definitive Bearer Securities] [interests in a permanent Global Security] (the
"Submitted Portion") as provided in the Prospectus Supplement dated [insert date
of Prospectus Supplement] in respect of such issue. This is to certify that (i)
we have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section
1.163-5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the
entire Submitted Portion, substantially in the form of Exhibit A to the
Indenture, and (ii) the Submitted Portion includes no part of the temporary
Global Security excepted in such certificates.

         We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.

<PAGE>

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States of America. If
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate or a copy thereof to any interested party in
such proceedings. Submitted Portion:

U.S. $
      ---------------------

Date:
       --------------------

[Euroclear Bank S.A./N.V., as operator of the Euroclear System] [Clearstream]*

                                         By:
                                            ------------------------------------

*  Delete if inappropriate.

<PAGE>

                                                                       EXHIBIT C

[FORM OF CERTIFICATE TO BE DELIVERED TO EUROCLEAR OR CLEARSTREAM BY A BENEFICIAL
OWNER OF SECURITIES, IN ORDER TO RECEIVE PAYMENT ON A TEMPORARY GLOBAL SECURITY]

                                TOYS "R" US, INC.

                   [Insert title or description of Securities]

         Reference is hereby made to the Indenture, dated as of ______________,
2002 (the "Indenture") between Toys "R" Us, Inc. (the "Company") and The Bank of
New York, as Trustee. Terms used herein unless otherwise defined shall have the
meanings ascribed to them in the Indenture.

         This is to certify that as of the date hereof [and except as provided
in the fourth paragraph hereof]*, $___________________principal amount of the
above-captioned Securities represented by a temporary Global Security (the
"temporary Global Security") held by you for our account is:

                  (i) beneficially owned by persons that are not United States
         persons (as defined below);

                  (ii) owned by United States person(s) that are (a) foreign
         branches of United States financial institutions (as defined in United
         States Treasury Regulation Section 1.165-12(c)(1)(iv) ("financial
         institutions")) purchasing for their own account or for resale, or (b)
         United States person(s) who acquired the beneficial interest in the
         temporary Global Security through foreign branches of United States
         financial institutions and who hold the beneficial interest in the
         temporary Global Security through such United States financial
         institutions on the date hereof (and in either case (a) or (b), each
         such United States financial institution hereby agrees, for the benefit
         of the Company, that it will comply with the requirements of Section
         165(j)(3)(A), (B) or (C) of the United States Internal Revenue Code of
         1986, as amended, and the regulations thereunder); or

                  (iii) owned by financial institution(s) for the purpose of
         resale during the restricted period (as defined in United States
         Treasury Regulation Section 1.163-5(c)(2)(i)(D)(7)) and, in addition,
         financial institution(s) described in this clause (iii) (whether or not
         also described in clause (i) or (ii)), further certify that they have
         not acquired the beneficial interest in the temporary Global Security
         for the purpose of resale directly or indirectly to a United States
         person or to a person within the United States.

         "United States person" means a citizen or resident of the United
States, a corporation, partnership or other entity created or organized in or
under the laws of the United States and an estate or trust the income of which
is subject to United States federal income taxation regardless of its source,
and "United States" means the United States of America (including the States and
the District of Columbia), its territories, its possessions and other areas
subject to its jurisdiction (including the Commonwealth of Puerto Rico).

<PAGE>

           [This certificate excepts and does not relate to $_________ principal
amount of the temporary Global Security held by you for our account as to which
we are not able to provide a certificate in this form. We understand that
payments, if any, due with respect to such portion of the temporary Global
Security cannot be made until we are able to provide a certificate in this
form.]*

         We undertake to advise you promptly by tested telex on or prior to the
date on which you intend to submit your certification relating to the
above-captioned Securities held by you for our account if any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States. If administrative or
legal proceedings are commenced or threatened in connection with which this
certificate is or would be relevant, we irrevocably authorize you to produce
this certificate or a copy thereof to any interested party in such proceedings.

Dated:
        -------------------

                                         [Name of Person Making Certification]

                                         By:
                                            ------------------------------------

---------------------------------
*  Delete if inappropriate.

<PAGE>

                                                                       EXHIBIT D

[FORM OF CERTIFICATE TO BE GIVEN TO THE APPROPRIATE TRUSTEE BY EUROCLEAR OR
CLEARSTREAM REGARDING PAYMENT ON A TEMPORARY GLOBAL SECURITY]

                                TOYS "R" US, INC.

                   [Insert title or description of Securities]

         Reference is hereby made to the Indenture, dated as of ______________,
2002 (the "Indenture") between Toys "R" Us, Inc. (the "Company") and The Bank of
New York, as Trustee. Terms used herein unless otherwise defined shall have the
meanings ascribed to them in the Indenture.

         We refer to that portion of the temporary Global Security in respect of
the above-captioned Securities for which we hereby request that you make payment
to us of the amounts payable on the relevant payment date (the "Submitted
Portion") as provided in the Prospectus Supplement dated [insert date of
Prospectus Supplement] in respect of such issue. This is to certify that (i) we
have received in writing or by tested telex or electronically (in accordance
with the requirements of United States Treasury Regulation Section 1.163-
5(c)(2)(i)(D)(3)(ii)) a certificate or certificates with respect to the entire
Submitted Portion, substantially in the form of Exhibit C to the Indenture, and
(ii) the Submitted Portion includes no part of the temporary Global Security
excepted in such certificates.

         We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date thereof.

         We understand that this certificate is required in connection with
certain tax laws and regulations in the United States of America. If
administrative or legal proceedings are commenced or threatened in connection
with which this certificate is or would be relevant, we irrevocably authorize
you to produce this certificate or a copy thereof to any interested party in
such proceedings.

<PAGE>

Submitted Portion:

U.S. $
        -------------------

Dated:
        -------------------

                                         [Euroclear Bank S.A./N.V., as
                                         operator of the Euroclear System]*
                                         [Clearstream]*

                                         By:
                                            ------------------------------------

----------------------------
*  Delete if inappropriate.<PAGE>

                                                                   Exhibit 4.14

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

                         FIRST SUPPLEMENTAL INDENTURE
                            DATED AS OF May __, 2002
                                     BETWEEN
                                TOYS "R" US, INC.
                                    AS ISSUER
                                       AND
                              THE BANK OF NEW YORK
                                   AS TRUSTEE

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                               Page

<S>                                                                                                           <C>
Article I DEFINITIONS.............................................................................................1

         Section 1.1 Definition of Terms..........................................................................1

Article II GENERAL TERMS AND PROVISIONS OF THE NOTES..............................................................4

         Section 2.1 Title; Designation...........................................................................4

         Section 2.2 Denominations................................................................................4

         Section 2.3 Principal Amount.............................................................................4

         Section 2.4 Form of Securities...........................................................................4

         Section 2.5 Maturity.....................................................................................6

         Section 2.6 Interest.....................................................................................6

         Section 2.7 Computation of Interest......................................................................6

         Section 2.8 Payment and Appointment......................................................................7

Article III REDEMPTION OF THE NOTES...............................................................................7

         Section 3.1 Redemption...................................................................................7

         Section 3.2 No Sinking Fund..............................................................................7

Article IV Events of default......................................................................................8

         Section 4.1 Events of Default............................................................................8

Article V covenants...............................................................................................8

         Section 5.1 Consolidation, Merger, Conveyance or Transfer................................................8

Article VI MISCELLANEOUS..........................................................................................9

         Section 6.1 No Conversion or Exchange....................................................................9

         Section 6.2 Pledge.......................................................................................9

         Section 6.3 No Guarantee.................................................................................9

         Section 6.4 Ratification of Indenture....................................................................9
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                           <C>
         Section 6.5 Trustee Not Responsible for Recitals.........................................................9

         Section 6.6 New York Law to Govern.......................................................................9

         Section 6.7 Separability................................................................................10

         Section 6.8 Counterparts................................................................................10

         Section 6.9 Provisions of Base Indenture Not Applicable.................................................10

Article VII TAX TREATMENT........................................................................................10

         Section 7.1 Tax Treatment...............................................................................10

Article VIII REMARKETING.........................................................................................11

         Section 8.1 Remarketing Procedures......................................................................11

EXHIBIT A               (FORM OF FACE OF NOTE)

EXHIBIT B               INSTRUCTION FROM HOLDER TO CUSTODIAL AGENT REGARDING REMARKETING

</TABLE>

                                       ii

<PAGE>

                  FIRST SUPPLEMENTAL INDENTURE, dated as of May [ ], 2002 (the
"First Supplemental Indenture"), between Toys "R" Us, Inc., a Delaware
corporation (the "Company"), and The Bank of New York, a New York banking
corporation, as trustee (the "Trustee").

                  WHEREAS, the Company and the Trustee executed and delivered
the Indenture dated as of May [ ], 2002 (the "Base Indenture") to provide for
the issuance of the Company's unsecured indebtedness (the "Securities"), in an
unlimited aggregate principal amount to be issued from time to time in one or
more series as might be determined by the Company under the Base Indenture; and

                  WHEREAS, the Company desires to provide for the establishment
of a new series of its Securities to be known as the Company's Senior Notes due
2007 (the "Notes"), the form and terms of such Notes and the terms and
provisions thereof to be set forth as provided in the Base Indenture as
supplemented by this First Supplemental Indenture (together, the "Indenture");
and

                  WHEREAS, the Company has requested that the Trustee execute
and deliver this First Supplemental Indenture and all requirements necessary to
make this First Supplemental Indenture a valid, binding and enforceable
instrument in accordance with its terms, and to make the Notes, when executed by
the Company and authenticated and delivered by the Trustee, the valid, binding
and enforceable obligations of the Company, and all acts and things necessary
have been done and performed to make this First Supplemental Indenture
enforceable in accordance with its terms, and the execution and delivery of this
First Supplemental Indenture has been duly authorized in all respects.

                  NOW THEREFORE, in consideration of the purchase and acceptance
of the Notes by the Holders thereof, and for the purpose of setting forth, as
provided in the Base Indenture, the form and substance of the Notes and the
terms and provisions thereof, the Company covenants and agrees with the Trustee
as follows:

                                   Article I

                                  DEFINITIONS

Section 1.1       Definition of Terms.

                  Unless the context otherwise requires:

                  i. a term defined in the Base Indenture has the same meaning
         when used in this First Supplemental Indenture;

                  ii. a term defined anywhere in this First Supplemental
         Indenture has the same meaning throughout;

                  iii. the singular includes the plural and vice versa;

                                       1
<PAGE>

                  iv. headings are for convenience of reference only and do not
         affect interpretation;

                  v. capitalized terms used herein and not defined herein shall
         have the meaning set forth in the Purchase Contract Agreement or the
         Base Indenture; and

                  vi. the following terms have the meanings given to them in
         this Section 1.1

                           "Agent-purchased Treasury Consideration" shall have
                  the meaning set forth in Section 8.1(d).

                           "Business Day" means any day other than a Saturday,
                  Sunday or any other day on which banking institutions and
                  trust companies in The State of New York or at a place of
                  payment are authorized or required by law, regulation or
                  executive order to be closed.

                           "Collateral Agent" means JPMorgan Chase Bank.

                           "Contingent Payment Regulations" has the meaning set
                  forth in Section 7.1.

                           "Credit Agreement" means the Five-Year Credit
                  Agreement dated as of September 19, 2001 among the Company,
                  the lender parties named thereto, Citibank N.A. and J.P.
                  Morgan Chase as Co-Syndication Agents, Credit Suisse First
                  Boston, First Union National Bank, The Dai-ichi Kangyo Bank,
                  Ltd. and Societe Generale as Co-documentation Agents and the
                  Bank of New York as Administration Agent.

                           "DTC" shall have the meaning set forth in Section
                  2.4(a).

                           "Global Notes" shall have the meaning set forth in
                  Section 2.4(a).

                           "Increased Principal Amount" shall have the meaning
                  specified in 2.4(c).

                           "Interest Payment Date" shall have the meaning set
                  forth in Section 2.6(a).

                           "Last Failed Remarketing" shall have the meaning set
                  forth in Section 8.1(h).

                           "Maturity Date" shall have the meaning specified in
                  Section 2.5.

                           "Notes" shall have the meaning set forth in the
                  recitals to this First Supplemental Indenture.

                           "Pledge Agreement" means the Pledge Agreement dated
                  as of the date hereof among the Company, the Collateral Agent
                  and The Bank of New York, as purchase contract agent and
                  attorney-in-fact, Securities Intermediary and Custodial Agent.

                                       2
<PAGE>

                           "Pledged Note" shall have the meaning set forth in
                  Section 2.4(c).

                           "Purchase Contract Agent" means The Bank of New York.

                           "Purchase Contract Agreement" means the Purchase
                  Contract Agreement dated as of the date hereof, between the
                  Company and the Purchase Contract Agent.

                           "Record Date" shall have the meaning set forth in
                  Section 2.6(b) and the date on which the interest rate borne
                  by the Notes is reset at the reset rate.

                           "Reduced Principal Amount" shall have the meaning
                  specified in 2.4(c).

                           "Remarketing Agent" shall have the meaning set forth
                  in Section 8.1(a).

                           "Remarketing Agreement" means the Remarketing
                  Agreement to be entered into between the Company and the
                  Remarketing Agent.

                           "Remarketing Fee" shall have the meaning set forth in
                  Section 8.1(f).

                           "Remarketing Notice" shall have the meaning set forth
                  in Section 8.1(b).

                           "Remarketing Settlement Date" means, after a
                  successful remarketing, the date on which the settlement of a
                  successful remarketing occurs, if any.

                           "Reset Date" means the date the interest rate on the
                  Notes is reset, which shall be earliest to occur of (i) May
                  16, 2005 in case the interest rate is reset on the Initial
                  Remarketing Date, (ii) the settlement date of any Subsequent
                  Remarketing Date or (iii) the Stock Purchase Date, in case the
                  interest rate is reset on the third Business Day prior to the
                  Stock Purchase Date.

                           "Reset Rate" shall have the meaning set forth in
                  Section 8.1(d).

                           "Separate Notes" shall have the meaning specified in
                  Section 2.4(c).

                           "Stock Purchase Date" means August 16, 2005.

                           "Subsequent Remarketing Period" shall have the
                  meaning set forth in Section 8.1(g).

                           "Terminated Remarketing Period" shall have the
                  meaning set forth in Section 8.1(h).

                                       3
<PAGE>

                  The terms "Indenture," "Base Indenture," "Company," "Trustee,"
"Securities," and "Notes" shall have the respective meanings set forth in the
recitals to this First Supplemental Indenture and the paragraph preceding such
recitals.

                                   Article II

                   GENERAL TERMS AND PROVISIONS OF THE NOTES

                  Section 2.1 Title; Designation.

                  There is hereby authorized a series of Securities designated
the Senior Notes due 2007. The Notes shall constitute the senior, unsecured and
unsubordinated debt obligations of the Company and shall rank equally in right
of payment with all other existing and future senior, unsecured and
unsubordinated obligations of the Company.

                  Section 2.2 Denominations.

                  The Notes shall be issuable in denominations of $50 and
integral multiples of $50 in excess thereof.

                  Section 2.3 Principal Amount.

                  The maximum aggregate principal amount of Notes (except for
the Notes authenticated and delivered upon registration of transfer or, or in
exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 906
and 1107 of the Base Indenture) delivered shall be limited to $[____] (or up to
$[____] if the Underwriters exercise their over-allotment option as set forth in
the Underwriting Agreement). The Notes may be issued from time to time upon
written order of the Company for the authentication and delivery of Notes
pursuant to Section 303 of the Base Indenture.

                  Section 2.4 Form of Securities.

                  Article II of the Base Indenture is hereby supplemented by the
following:

                  (a) Form of Notes. The Notes will be issued initially as fully
registered securities in certificated form, registered in the name of The Bank
of New York, as Purchase Contract Agent under the Purchase Contract Agreement,
in the form of Exhibit A. If Treasury Securities are substituted for Notes
pursuant to the Pledge Agreement, or Units are settled early pursuant to
Sections 5.1 or Section 5.9 of the Purchase Contract Agreement, the related
Notes issued in certificated form will be exchanged for an equal aggregate
principal amount of Notes issued in the form of one or more global certificates
(the "Global Notes") registered in the name of The Depository Trust Company
("DTC") or its nominee in the form of Exhibit A.

                                       4
<PAGE>

                  (b) Notes in Certificated Form. Except as provided below and
except upon recreation of Normal Units pursuant to the Pledge Agreement, owners
of beneficial interests in Notes represented by a Global Note will not be
entitled to receive physical delivery of Notes in certificated form and will not
be considered the Holders (as defined in the Base Indenture) thereof for any
purpose under the Indenture, and no Global Note representing the Notes shall be
exchangeable, except for another Global Note of like denomination and tenor to
be registered in the name of DTC or its nominee or a successor depositary or its
nominee. In the event that (i) DTC notifies the Company that it is unwilling or
unable to continue as a depositary for the global note certificates and no
successor depositary has been appointed within 90 days after this notice, or
(ii) DTC at any time ceases to be a Clearing Agency registered under the
Exchange Act at which time DTC is required to be so registered to act as
depositary and no successor depositary has been appointed within 90 days after
the Company learns that DTC has ceased to be so registered, or (iii) the Company
determines that it will no longer have debt securities represented by Global
Note or permit any of the global note certificates to be exchangeable or (iv) an
Event of Default under the Indenture has occurred and is continuing,
certificates for the Notes will be printed and delivered in exchange for
beneficial interests in any Notes represented by global note certificates. Any
Global Note that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Note certificates registered in the names directed by DTC.

                  (c) In the event that any pledged Notes (the "Pledged Notes")
are to be released from the Pledge of the Pledge Agreement and delivered to the
Purchase Contract Agent pursuant to Section 4.1 of the Pledge Agreement (the
"Separate Notes"), as a result of the creation of one or more Stripped Units as
provided in Section 4.1 of the Pledge Agreement, such release and delivery shall
be evidenced by an endorsement by the Collateral Agent on the certificated Note
held by the Collateral Agent or the Purchase Contract Agent, on behalf of the
Collateral Agent, in accordance with the Pledge Agreement, as the case may be,
reflecting a reduction in the principal amount of such certificated Note equal
in amount (the "Reduced Principal Amount") to the principal amount of the
Separate Note. The Collateral Agent shall confirm any such Reduced Principal
Amount by telecopying or otherwise delivering a photocopy of such endorsement
made on the certificated Note evidencing such Reduced Principal Amount to the
Trustee at the telecopier number and address provided by the Trustee to the
Collateral Agent or the Purchase Contract Agent, on behalf of the Collateral
Agent, as the case may be. Upon receipt of such confirmation, the Trustee shall
instruct the Collateral Agent to increase the principal amount of a Global Note
held by the Collateral Agent in an amount equal to the Reduced Principal Amount
by an endorsement made by the Collateral Agent on such Global Note to reflect
such increase.

                  In the event that a Note is transferred to the Collateral
Agent pursuant to Section 4.2 of the Pledge Agreement in connection with the
recreation of Normal Units as provided in Section 4.2 of the Pledge Agreement,
such transfer shall be evidenced by an endorsement by the Collateral Agent on
the certificated Note held by the Collateral Agent reflecting an increase in the
principal amount of such certificated Note equal in amount (the "Increased
Principal Amount") to the principal amount of such Pledged Note. The Collateral
Agent shall confirm any such Increased Principal Amount by telecopying or
otherwise delivering a photocopy of such endorsement made on the certificated
Note evidencing such Increased Principal Amount to the Trustee at the telecopier
number and address provided by the Trustee to the Collateral Agent or the
Purchase Contract Agent, as the case may be. Upon receipt of such confirmation,
the Trustee shall instruct the Collateral Agent to decrease the principal amount
of the Global Note held by the Collateral Agent in an amount equal to the
Increased Principal Amount by an endorsement made by the Collateral Agent on
such Global Note to reflect such decrease.

                                       5
<PAGE>

                  (d) The terms and other provisions contained in the Note shall
constitute, and are expressly made, a part of the Indenture.

                  Section 2.5 Maturity.

                  The date upon which the Notes shall become due and payable at
final maturity is August 16, 2007 (the "Maturity Date").

                  Section 2.6 Interest.

                  Section 307 of the Base Indenture is hereby supplemented or
superseded by the following:

                  (a) Interest and Interest Payment Dates. The Notes will accrue
interest initially at the rate of [__] % per year from the original date of
issuance up to but excluding the Reset Date and at the Reset Rate thereafter.
The interest is payable quarterly in arrears on February 16, May 16, August 16
and November 16 of each year (each, an "Interest Payment Date"), commencing on
August 16, 2002, up to but excluding the Maturity Date.

                  (b) Record Date. The interest payable on an Interest Payment
Date will be paid to the Person in whose name such Note, or any predecessor
Note, is registered at the close of business on the record date for such
interest installment. The record date, with respect to any Interest Payment Date
for the Notes, shall be the fifteenth calendar day prior to the relevant
Interest Payment Date (the "Record Date").

                  (c) Initial Interest Payment Date. The initial interest
payment will be prorated to reflect the interest accrued between the date of
initial issuance of the Notes and August 16, 2002.

                  (d) Interest Payment after Rate Reset. If the Reset Rate is
set on a Subsequent Remarketing Date that occurs prior to the Stock Purchase
Date, the first interest payment at the Reset Rate will be prorated to reflect
the interest accrued between the date the interest rate is reset and the
Interest Payment Date immediately thereafter.

                  Section 2.7 Computation of Interest.

                  Section 3.10 of the Base Indenture is hereby superseded by the
following Section 2.7.

                  Payments of interest will include interest accrued to, but
excluding, the respective Interest Payment Dates. The amount of interest payable
for any period will be computed on the basis of a 360-day year consisting of
twelve 30-day months. Except as provided in the following sentence, the amount
of interest payable for any period other than a full quarterly period for which
interest is computed will be computed on the basis of the actual number of days
elapsed in such a 90-day period. In the event that any Interest Payment Date is
not a Business Day, then payment of interest payable on such date will be made
on the next succeeding Business Day (and without any interest or other payment
in respect of any such delay), except that, if such Business Day is in the next
succeeding calendar year, such payment shall be made on the immediately
preceding Business Day, in each case, with the same force and effect as if made
on such date.

                                       6
<PAGE>

Section 2.8       Payment and Appointment.

                  (a) Payments. Payments on Notes that are part of Normal Units
will be made by the Paying Agent under the Indenture, on behalf of the Company,
to the Purchase Contract Agent, which will forward these payments to the holders
of these Notes through the book-entry facilities of DTC, as depositary for
Normal Units. If Notes are held separately from the Normal Units, payments will
be made by the Paying Agent under the Indenture, on behalf of the Company, on
them to the registered holders thereof through the DTC.

                  (b) Registrar, Transfer Agent and Paying Agent. The Registrar,
transfer agent and paying agent for the Notes shall be The Bank of New York.

                                  Article III

                             REDEMPTION OF THE NOTES

                  Article 11 of the Base Indenture is hereby supplemented and
superseded, as the case may be, by the following:

                  Section 3.1 Redemption.

                  (a) Other than upon the occurrence of a Tax Event, the Notes
shall not be redeemable at the option of the Company, the Holders of the Notes
or otherwise.

                  (b) Tax Event Redemption, Redemption Amount. Section 1108 of
the Base Indenture is hereby superseded by the following Section 3.1(b). If a
Tax Event occurs, the Company may, at its option, redeem all outstanding Notes
in whole, but not in part, at any time at a Redemption Price, equal to, for each
Note, the Redemption Amount plus accrued and unpaid interest, if any, on such
Notes to the Redemption Date. Upon the occurrence of a Tax Event Redemption
after the successful remarketing of the Notes, the Redemption Price will be
payable in cash to the holders of any outstanding Separate Notes.

                  (c) Interest Upon Redemption. Unless the Company defaults in
payment of the Redemption Price, on and after the Redemption Date, interest
shall cease to accrue on the Notes, subject to Section 1106 of the Base
Indenture.

                  Section 3.2 No Sinking Fund.

                  The Notes are not entitled to the benefit of any sinking fund.

                                       7
<PAGE>

                                   Article IV

                                Events of default

Section 4.1       Events of Default.

                  The following paragraph shall be added to Section 501 of the
Base Indenture and shall be inserted instead of paragraph (6) of said Section
501:

                  "(6) any obligation of the Company or any of the Subsidiaries
(as defined in the Credit Agreement ) of the Company representing a Material
Subsidiary Group (as defined in the Credit Agreement), whether as principal,
guarantor, surety or other obligor, for the payment of any indebtedness in an
aggregate consolidated principal amount exceeding $25,000,000 (i) shall be
declared to be due and payable, or shall be required to be prepaid other than
pursuant to a regularly scheduled prepayment or required prepayment (unless such
required prepayment results from a default or event of default thereunder),
prior to the expressed maturity thereof, or (ii) shall not be paid when due or
within any grace period for the payment thereof."

                                    Article V

                                    covenants

                  Section 5.1 Consolidation, Merger, Conveyance or Transfer.

                  Article 10 of the Base Indenture is hereby supplemented by
adding the following additional Section 1011 which shall be inserted after
Section 1010 of said Article 10:

                  "Section 1011. Creation of Corporation to Act as Co-Obligor.
The Company agrees, for the benefit of all Holders of Notes, that if (i) the
Company should consolidate, merge or sell all of the Company's assets
substantially as an entirety, and (ii) as a result, the Company is not the
successor Person of such consolidation, merger or sale of all of the Company's
assets substantially as an entirety, and (iii) the successor Person is a limited
liability company or trust, then the Company, such limited liability company or
trust, in connection with such transaction, will create a corporation to act as
a co-obligor of this First Supplemental Indenture and the Notes."

                                       8
<PAGE>

                                   Article VI

                                  MISCELLANEOUS

                  Section 6.1 No Conversion or Exchange.

                  The Notes shall not be convertible or exchangeable into other
securities of the Company or another Person.

                  Section 6.2 Pledge.

                  Upon initial issuance, the Notes shall be pledged to the
Collateral Agent for the benefit of the Company, pursuant to the terms of the
Pledge Agreement, as collateral to secure the obligations of the Holders of
Normal Units to purchase the Common Stock under the Purchase Contracts in
accordance with the terms of the Purchase Contract Agreement. The Notes may be
transferred, in whole or in part, only in accordance with the terms and
conditions set forth in the Indenture, the Pledge Agreement and the Purchase
Contract Agreement. To the fullest extent permitted by law, any transfer or
purported transfer of any Note not made in accordance with the Indenture shall
be null and void. Subject to this Section, the Notes shall be freely
transferable.

                  Section 6.3 No Guarantee.

                  The payment of any amounts due under the Notes shall not be
guaranteed by any Person, including the subsidiaries of the Company.

                  Section 6.4 Ratification of Indenture.

                  The Indenture as supplemented by this First Supplemental
Indenture, is supplemented only with respect to the Notes and is in all respects
ratified and confirmed, and this First Supplemental Indenture shall be deemed
part of the Indenture in the manner and to the extent herein and therein
provided.

                  Section 6.5 Trustee Not Responsible for Recitals.

                  The recitals herein contained are made by the Company and not
by the Trustee, and the Trustee assumes no responsibility for the correctness
thereof. The Trustee makes no representation as to the validity or sufficiency
of this First Supplemental Indenture.

                  Section 6.6 New York Law to Govern.

                  THIS FIRST SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE
GOVERNED BY AND CONSTRUCTED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.

                                       9
<PAGE>

                  Section 6.7 Separability.

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

                  Section 6.8 Counterparts.

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

                  Section 6.9 Provisions of Base Indenture Not Applicable.

                  Article 4 and the provisions of the last paragraph of Section
305, in each case, of the Base Indenture shall not apply to the Notes.

                                  Article VII

                                  TAX TREATMENT

Section 7.1       Tax Treatment.

                  The company agrees, and by acceptance of beneficial ownership
interest in the Notes each beneficial holder of Notes will be deemed to have
agreed, (1) to treat itself as owner of the Notes for all tax purposes, (2) to
treat the Notes as indebtedness for all tax purposes, (3) to treat the Notes as
indebtedness that is subject to Treas. Reg. Sec. 1.1275-4 (the "Contingent
Payment Regulations") for U.S. federal income tax purposes and (4) to be bound
by the Company's determination of the "comparable yield" and "projected payment
schedule," within the meaning of the Contingent Payment Regulations, with
respect to the Notes for U.S. federal income tax purposes. A Holder of Notes may
obtain the amount of original issue discount, issue date, yield to maturity,
comparable yield and projected payment schedule by submitting a written request
for it to the Company at the following address: 461 From Road, Paramus, New
Jersey 07652, Attention: Treasurer.

                                       10
<PAGE>

                                  Article VIII

                                   REMARKETING

                  Section 8.1 Remarketing Procedures.

                  (a) The Company shall engage a nationally recognized
investment bank (the "Remarketing Agent") pursuant to a Remarketing Agreement to
be entered into between the Company and the Remarketing Agent to sell the Notes
of Holders of Normal Units, other than Holders that have elected not to
participate in the remarketing pursuant to the procedures set forth in paragraph
(l) below, and holders of Separate Notes that have elected to participate in the
remarketing pursuant to the procedures set forth in paragraph (m) below and in
Section 4.5(f) of the Pledge Agreement.

                  (b) On or before the seventh Business Day prior to the Initial
Remarketing Date and the first day of any Subsequent Remarketing Period, the
Company or the Remarketing Agent shall give Holders of Normal Units and holders
of Separate Notes notice of the remarketing (the "Remarketing Notice") (the form
of which notice to be provided by the Company) in a daily newspaper in the
English language of general circulation in The City of New York, which is
expected to be The Wall Street Journal, including the specific U.S. Treasury
security or securities (including the CUSIP number and/or the principal terms of
such Treasury security or securities), that must be delivered by Holders of
Normal Units that elect not to participate in the remarketing no later than
10:00 a.m. on the fourth Business Day preceding such Remarketing Date.

                  (c) The Purchase Contract Agent shall notify, by 10:00 a.m.
(New York City time) on the third Business Day preceding the Remarketing Date,
the Remarketing Agent and the Collateral Agent of the aggregate number of Notes
of Normal Unit Holders to be remarketed. No later than 10:00 a.m. (New York City
time) on the third Business Day immediately preceding the Remarketing Date,
pursuant to the terms of the Pledge Agreement, the Custodial Agent will notify
the Remarketing Agent of the aggregate number of Separate Notes to be
remarketed.

                  (d) Upon receipt of such notice from the Purchase Contract
Agent and the Custodial Agent, the Remarketing Agent will on the Initial
Remarketing Date or a Subsequent Remarketing Date, as the case may be, use its
reasonable best efforts to (i) establish a rate of interest that, in the opinion
of the Remarketing Agent, will, when applied to the Notes (assuming, even if not
true, that all of the Notes are included in the remarketing), enable the then
current aggregate market value of the Notes to have a value equal to 100.25% of
the Remarketing Value (as defined in the Purchase Contract Agreement), as of the
Remarketing Date, provided that in no event shall the Reset Rate be less than
the initial rate borne by the Notes and will not exceed the maximum rate
permitted by state usury laws and other applicable laws (such rate and the rate
specified in paragraph (i) below the "Reset Rate"), and (ii) sell such Notes on
such date at a price equal to at least 100.25% of the Remarketing Value. In the
case of a successful remarketing prior to the third Business Day prior to the
Stock Purchase Date, the Remarketing Agent will use the proceeds from a
successful remarketing to purchase in open market transactions or at Treasury
auction the appropriate U.S. Treasury securities (the "Agent-purchased Treasury
Consideration") with the CUSIP numbers, if any, selected by the Remarketing
Agent, described in clauses (i) and (ii) of the definition of Remarketing Value
related to the Notes of Holders of Normal Units that were remarketed.

                                       11
<PAGE>

                  (e) On or prior to the third Business Day following the
Initial Remarketing Date or a Subsequent Remarketing Date (other than a
Subsequent Remarketing Date that occurs on the third Business Day prior to the
Stock Purchase Date), the Initial Remarketing Date and the first day of any
Subsequent Remarketing Period, as the case may be, the Remarketing Agent shall
deliver such Agent-purchased Treasury Consideration to the Purchase Contract
Agent, which shall thereupon deliver such Agent-purchased Treasury Consideration
to the Collateral Agent. The Collateral Agent, for the benefit of the Company,
will thereupon apply such Agent-purchased Treasury Consideration, in accordance
with the Pledge Agreement, to secure such Holders' obligations under the
Purchase Contracts.

                  (f) In the case of a successful remarketing on the third
Business Day prior to the Stock Purchase Date, the Remarketing Agent will cause
the proceeds from such successful remarketing to be remitted on the settlement
date of such successful remarketing, along with notification thereof, to the
Purchase Contract Agent for the benefit of the Holders of such remarketed Notes,
which shall thereupon deliver such cash proceeds to the Collateral Agent. The
Collateral Agent, for the benefit of the Company, will thereupon apply such cash
proceeds, in accordance with the Pledge Agreement, to secure such Holders'
obligations under the Purchase Contracts.

                  In connection with any successful remarketing, the Remarketing
Agent will deduct as a remarketing fee an amount not exceeding 25 basis points
(.25%) of the total proceeds from the remarketing (the "Remarketing Fee"). The
Remarketing Agent will remit (1) the portion of the proceeds from the
remarketing attributable to the Separate Notes to the holders of Separate Notes
that were remarketed and (2) the remaining portion of the proceeds, in each
case, less those proceeds used to purchase the Agent-purchased Treasury
Consideration (in the case of a remarketing prior to the third Business Day
prior to the Stock Purchase Date), to the Holders of the Normal Units that were
remarketed, all determined on a pro rata basis, in each case, on or prior to the
third Business Day following the Initial Remarketing Date or a Subsequent
Remarketing Date, as the case may be. Holders whose Notes are so remarketed will
not otherwise be responsible for the payment of any Remarketing Fee in
connection therewith. If such successful remarketing is consummated after 4:30
p.m. (New York City time) on such Remarketing Date and, despite using its
commercially reasonable efforts, the Remarketing Agent cannot cause the
applications of the proceeds specified above to occur on such Remarketing Date,
then the Remarketing Agent may make such applications and remittances on the
next succeeding Business Day.

                  (g) If, despite its reasonable best efforts, the Remarketing
Agent cannot establish a Reset Rate on the third Business Day prior to May 16,
2005, the Initial Remarketing Date, so as to allow the Remarketing Agent to
remarket the Notes offered for remarketing on such date at a price equal to at
least 100.25% of the Remarketing Value, the Remarketing Agent will attempt to
establish a Reset Rate meeting these requirements on each of the three Business
Day periods immediately preceding each of June 16, 2005, July 14, 2005 and the
third Business Day preceding August 16, 2005 (each, a "Subsequent Remarketing
Period").

                                       12
<PAGE>

                  (h) If the Remarketing Agent cannot remarket the Notes
included in the remarketing on the Initial Remarketing Date or during any
Subsequent Remarketing Period at a price equal to at least 100.25% of the
Remarketing Value or the Remarketing Agent has determined that the remarketing
may not be commenced or consummated pursuant to applicable law, the remarketing
will be deemed to have failed ( a "Terminated Remarketing Period"). If, in spite
of using its reasonable best efforts, the Remarketing Agent fails to remarket
the Notes underlying the Normal Units at at least 100.25% of the Remarketing
Value in accordance with the terms of the Pledge Agreement by 4:00 p.m. (New
York City time) on the third Business Day immediately preceding the Stock
Purchase Date, or the Remarketing Agent has determined that the remarketing may
not be commenced or consummated pursuant to applicable law, the "Last Failed
Remarketing" will be deemed to have occurred. The Collateral Agent, for the
benefit of the Company, may exercise its rights as a secured party with respect
to such Notes, and at the direction of the Company, retain or dispose of the
Pledged Notes in accordance with applicable law and satisfy in full, from any
disposition or retention, such Holder's obligations to pay the Purchase Price
for the Common Stock; provided, that if upon the Last Failed Remarketing, the
Collateral Agent delivers the Notes to the Company in full satisfaction of the
Holder's obligation under the Purchase Contract, any accumulated and unpaid
interest on such Notes will become payable by the Company to the Purchase
Contract Agent for payment to the Holder of the Normal Units to which such Notes
relate. Such payment will be made by the Company on or prior to 5:00 p.m. (New
York City time) on the Stock Purchase Date in lawful money of the United States
by certified or cashier's check or wire transfer in immediately available funds
payable to or upon the order of the Purchase Contract Agent.

                  (i) In the event of a Last Failed Remarketing or the Notes
have not been earlier redeemed pursuant to a Tax Event Redemption, the
Remarketing Agent shall determine the Reset Rate that shall apply to the Notes
held by the Holders of Normal Units that elected not to participate in the
remarketing and Holders of Separated Notes according to the following method,
provided that in no event shall the Reset Rate be less than the initial rate
borne by the Notes and will not exceed the maximum rate permitted by state usury
laws and other applicable laws. After the Last Failed Remarketing, the
Remarketing Agent will take the average of the interest rates quoted to it by
three nationally recognized investment banks selected by the Company, which are
underwriters or dealers in debt securities similar to the Notes, that in their
judgment reflects an accurate market rate of interest applicable to the Notes at
that time. Following receipt of these quotes, the Remarketing Agent will have
the right, in its sole judgment, to either recalculate the average based on only
two of the quoted interest rates if one of the three quotes, in the Remarketing
Agent's sole discretion, did not reflect market conditions or, alternatively,
determine a consensus among the investment banks rather than a strict
mathematical average by taking into account all relevant qualitative and
quantitative factors. These factors may include, but shall not limited to,
maturity of the Notes, the credit rating and credit risk of the Company and
companies of similar industries, the then yield to maturity of the Notes and the
state of the markets for primary and secondary sales of similar debt securities.

                                       13
<PAGE>

                  (j) If a Terminated Remarketing Period occurs, the Remarketing
Agent will, pursuant to the Remarketing Agreement, promptly advise the Trustee,
the Purchase Contract Agent, the Collateral Agent, the Company and the
Depositary that a Terminated Remarketing Period has occurred. The Company will
cause a notice of any Terminated Remarketing Period, the Last Failed Remarketing
and the Reset Rate to be published not later than the fourth Business Day
following the Initial Remarketing Date or a Subsequent Remarketing Date and the
date of the Last Failed Remarketing, as the case may be, in a daily newspaper in
the English language of general circulation in The City of New York, which is
expected to be The Wall Street Journal. The Company will also release this
information by means of Bloomberg and Reuters newswire or, if not available, by
similar means.

                  (k) With respect to any Notes which constitute part of Normal
Units which are subject to the Last Failed Remarketing, the Collateral Agent for
the benefit of the Company reserves all of its rights as a secured party with
respect thereto and, subject to applicable law and may, among other things,
foreclose on and retain such Notes for the benefit of the Company and permit the
Company to cause the Notes to be sold or to retain and cancel such Notes, in
either case, in full satisfaction of such Holders' obligations under the
Purchase Contracts.

                  (l) A Holder of Normal Units may elect not to participate in
the remarketing and retain the Notes underlying such Units by notifying the
Purchase Contract Agent by delivering written notice thereof to the Purchase
Contract Agent, in the form of Exhibit D (including the CUSIP number and/or the
principal terms of such security or securities) attached to the Purchase
Contract Agreement, stating that the Holder has transferred the specific U.S.
Treasury security or securities identified by the Purchase Contract Agent that
constitute the U.S. Treasury securities described in clauses (i) and (ii) of the
definition of Remarketing Value relating to the retained Notes (the "Opt-out
Treasury Consideration") to the Purchase Contract Agent not later than 10:00
a.m. (New York City time) on the fourth Business Day immediately preceding (i)
the Initial Remarketing Date until the Business Day immediately following such
Initial Remarketing Date, (ii) the Subsequent Remarketing Periods beginning on
the third Business Day preceding June 16, 2005 and July 14, 2005 until the
Business Day immediately following such Remarketing Period and (iii) the tenth
Business Day preceding the Stock Purchase Date. Upon receipt thereof by the
Purchase Contract Agent, the Purchase Contract Agent shall deliver such Opt-out
Treasury Consideration to the Collateral Agent. The Collateral Agent will hold
Opt-out Treasury Consideration in an account separate from the Collateral
Account. On a Remarketing Settlement Date, the Collateral Agent, for the benefit
of the Company, shall thereupon transfer to the Collateral Account such Opt-out
Treasury Consideration to secure such Normal Units Holder's obligations under
their applicable Purchase Contracts constituting a part of the Holder's Normal
Units in substitution for the Pledged Notes and to fund the quarterly interest
payment due to such Holders on the Stock Purchase Date and deliver the
applicable Notes to these Holders. On the first Business Day immediately
following the Terminated Remarketing Period, the Collateral Agent, will transfer
the Opt-out Treasury Consideration to the Purchase Contract Agent and the
Purchase Contract Agent will transfer promptly such Opt-out Treasury
Consideration to the appropriate Holders. A Holder that does not so deliver the
Opt-out Treasury Consideration pursuant to this paragraph (l) shall be deemed to
have elected to participate in the remarketing.

                                       14
<PAGE>

                  (m) A Holder of Separate Note(s) may elect to participate in
the remarketing by delivering their Separate Notes along with notice of their
election, substantially in the form of Exhibit B hereto to the Collateral Agent
not later than 10:00 a.m. (New York City time) on the fourth Business Day (i)
immediately preceding the Initial Remarketing Date until the Business Day
immediately following such Initial Remarketing Date, (ii) immediately preceding
any Subsequent Remarketing Period until the Business Day immediately following
such Remarketing Period, or (iii) the tenth Business Day immediately preceding
the Stock Purchase Date. The Collateral Agent will hold these Notes in an
account separate from the Collateral Account pursuant to the Pledge Agreement.
Holders of Separate Notes that have elected previously to have their Separate
Notes remarketed will have the right to withdraw that election on or prior to
10:00 a.m. (New York City time) on the dates specified in the preceding
sentence. Within three Business Days following the Remarketing Date, (A) if the
remarketing was successful, the Remarketing Agent will notify the Collateral
Agent of the successful remarketing and request that the Separate Notes be
delivered to the purchasers thereof, and (B) if there was a Terminated
Remarketing Period on such date, the Collateral Agent will return the Separate
Notes to their Holders.

                  Not later than 15 nor more than 30 calendar days prior to the
Initial Remarketing date or the first day of any Subsequent Remarketing Period,
the Company shall request the Clearing Agency (or any successor Clearing
Agency), to notify its Beneficial Owners or Depositary participants holding
Normal Units or Separate Notes of the impending remarketing.

                  In accordance with the Depositary's normal procedures, on the
Remarketing Settlement Date or the Purchase Contract Date, as applicable, the
transactions described above with respect to such Note tendered for purchase and
sold in a successful remarketing shall be executed through the Depositary, and
the accounts of the respective Depositary participants shall be debited and
credited and such Notes delivered by book-entry as necessary to effect purchases
and sales of such Notes. The Depositary shall make payment in accordance with
its normal procedure; provided that, the procedures set forth herein, including
provisions for payment by purchasers of the Notes in the successful remarketing,
shall be subject to modification to the extent required by the Depositary or if
the book-entry system is no longer available for the Notes at the time of the
remarketing, to facilitate the remarketing of the Notes in certified form, and
shall provide for the authentication and delivery of Notes in a principal amount
equal to the unremarketed portion of such Notes. In addition, the Remarketing
Agent may modify, the settlement procedures set forth herein in order to
facilitate the settlement process.

                  If any Holder of Notes selling Notes in the remarketing fails
to deliver such Notes, the direct or indirect Depositary participant of such
selling Holder and of any other Person who was to have purchase Notes in the
remarketing may deliver to any such other Person an aggregate principal amount
of Notes that is less than the aggregate principal amount of Senior Notes that
otherwise was to be purchased by such Person. In such event, the aggregate
principal amount of Notes to be so delivered shall be determined by such direct
or indirect Depositary participant, and delivery of such lesser aggregate
principal amount of Notes shall constitute good delivery.

                                       15
<PAGE>

                  Under the Remarketing Agreement, the Company, in its capacity
as issuer of the Notes, shall be liable for, and shall pay, any and all costs
and expenses incurred in connection with any remarketing, other than the
Remarketing Fee.

                  Pursuant to this Indenture, in the event of a successful
remarketing, the interest rate on all of the outstanding Notes (whether or not
included in the remarketing) shall be adjusted to the Reset Rate and, in the
event of a Last Failed Remarketing, the interest rate on any Separate Notes
shall be adjusted to the Reset Rate as set forth in Section 8.1(i).

                  IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed by their respective officers
thereunto duly authorized, on the date or dates indicated in the acknowledgments
and as of the day and year first above written.

                               TOYS "R" US, INC.,
                               as Issuer

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

Attest:

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

                               THE BANK OF NEW YORK ,
                               as Trustee

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

                                       16

<PAGE>

                                    EXHIBIT A

                             (FORM OF FACE OF NOTE)

                  [FOR INCLUSION IN GLOBAL CERTIFICATES ONLY -- THIS CERTIFICATE
IS A GLOBAL CERTIFICATE WITHIN THE MEANING OF THE PURCHASE CONTRACT AGREEMENT
(AS HEREINAFTER DEFINED) AND IS REGISTERED IN THE NAME OF THE CLEARING AGENCY OR
A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY, UNLESS AND UNTIL THIS SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR
SECURITIES IN DEFINITIVE FORM.

Unless this Certificate is presented by an authorized representative of The
Depository Trust Company (55 Water Street, 49th Floor New York, New York
10041-0099) to the Company or its agent for registration of transfer, exchange
or payment, and any Certificate issued is registered in the name of Cede & Co.,
or such other name as requested by an authorized representative of The
Depository Trust Company, and any payment hereon is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
WRONGFUL since the registered owner hereof, Cede & Co., has an interest herein.]

CUSIP No.________________                         R. _______________________
$________________________

                                TOYS "R" US, INC.
                                   SENIOR NOTE
                                    DUE 2007

                  TOYS "R" US, INC., a Delaware corporation (the "Company",
which term includes any successor corporation under the Indenture hereinafter
referred to), for value received, hereby promises to pay to____________________,
or registered assigns, the principal sum of_________________ Dollars
($___________) [as increased or decreased as provided for in Schedule A hereto]
on August 16, 2007 (such date is hereinafter referred to as the "Maturity
Date"), and to pay interest on said principal sum from __________, 2002 or from
the next recent date to which interest has been paid or duly provided for,
quarterly in arrears on February 16, May 16, August 16 and November 16 of each
year (each such date, an "Interest Payment Date"), commencing on _____________,
2002 initially at the rate of ____% per year through and including the day
immediately preceding the Reset Date and at the Reset Rate thereafter until the
principal hereof shall have been paid or duly made available for payment and, to
the extent permitted by law, to pay interest, compounded quarterly, on any
overdue principal and premium, if any, and on any overdue installment of
interest at the rate per year of ____% up to but excluding the Reset Date and at
the Reset Rate thereafter.

                                      A-1
<PAGE>

                  The amount of interest payable on any Interest Payment Date
shall be computed on the basis of a 360-day year consisting of twelve 30-day
months and, except as provided in the Indenture (as defined below), the amount
of interest payable for any period shorter than a full quarterly period for
which interest is computed will be computed on the basis of the actual number of
days elapsed in such 90-day period. In the event that any Interest Payment Date
is not a Business Day, then payment of interest payable on such date will be
made on the next succeeding day that is a Business Day (and without any interest
or other payment in respect of any such delay), except that, if such Business
Day is in the next succeeding calendar year, such payment shall be made on the
immediately preceding Business Day, in each case with the same force and effect
as if made on such Interest Payment Date. The interest installment so payable,
and punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Indenture, be paid to the person in whose name this Note (or one
or more predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest installment which shall be the fifteenth
calendar day prior to the relevant Interest Payment Date.

                  [For inclusion in Global Note only - Except as otherwise
provided in the Indenture, this Note will be issued in global form only
registered in the name of The Depository Trust Company ("DTC") or its nominee.
This Note will not be issued in definitive form, except as otherwise provided in
the Indenture, and ownership of this Note shall be maintained in book-entry form
by DTC for the accounts of participating organizations of DTC.]

                  The principal of (and premium, if any) and the interest on
this Note shall be payable at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, The City of New York in any coin or
currency of the United States of America that at the time of payment is legal
tender for payment of public and private debts; provided, however, that payment
of interest may be made at the option of the Company by check mailed to the
registered Holder at such address as shall appear in the records of the Trustee
or by wire transfer to an account appropriately designated by the Holder
entitled thereto.

                  The indebtedness evidenced by this Note is, to the extent
provided in the Indenture, senior and unsecured and will rank equal in right of
payment to all other senior unsecured obligations of the Company.

                                      A-2
<PAGE>

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

Dated:  _________

                                         TOYS "R" US, INC., as Issuer

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

Attest:

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

                                      A-3
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

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

                                      THE BANK OF NEW YORK,
                                      as Trustee

                                      By
                                         ---------------------------------------
                                                 Authorized Signatory

Dated ____________

                                      A-4
<PAGE>

                            (FORM OF REVERSE OF NOTE)

1.       Indenture.

                  This Note is one of a duly authorized series of Securities of
the Company (herein sometimes referred to as the "Notes"), issued and to be
issued in one or more series under and pursuant to an Indenture dated as of
_________, 2002 (the "Base Indenture") between the Company and The Bank of New
York, as Trustee (the "Trustee", which term includes any successor trustee under
the Indenture), as supplemented by a First Supplemental Indenture, dated as of
________, 2002 (the "First Supplemental Indenture") between the Company and the
Trustee (the Base Indenture as so supplemented, the "Indenture"), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
description of the rights, limitations of rights, obligations, duties and
immunities thereunder of the Trustee, the Company and the Holders of the Notes.
This series of Debt Securities is limited in aggregate principal amount as
specified in said Supplemental Indenture.

                  To the extent that any terms or other provisions of this Note
differ from or are inconsistent with those contained in the Indenture, the
Indenture shall control.

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

2.       Ranking.

                  The Notes shall constitute the senior, unsecured and
unsubordinated debt obligations of the Company and shall rank equally in right
of payment with all other existing and future senior, unsecured and
unsubordinated obligations of the Company.

3.       Form; Transfer.

                  Prior to due presentment for registration of transfer of this
Note, the Company, the Trustee, any Paying Agent and the Registrar may deem and
treat the registered Holder hereof as the absolute owner hereof (whether or not
this Note shall be overdue and notwithstanding any notice of ownership or
writing hereon made by anyone other than the Registrar) for the purpose of
receiving payment of or on account of the principal hereof and premium, if any,
and interest due hereon and for all other purposes, and neither the Company nor
the Trustee nor any Paying Agent nor any Registrar shall be affected by any
notice to the contrary.

4.       Pledge.

                  Upon initial issuance, the Notes shall be pledged to the
Collateral Agent for the benefit of the Company, pursuant to the terms of the
Pledge Agreement, as collateral to secure the obligations of the Holders of
Normal Units to purchase the Common Stock in accordance with the terms of the
Purchase Contract Agreement. The Notes may be transferred, in whole or in part,
only in accordance with the terms and conditions set forth in the Indenture, the
Pledge Agreement and the Purchase Contract Agreement. To the fullest extent
permitted by law, any transfer or purported transfer of any Note not made in
accordance with the Indenture shall be null and void. Subject to this Section,
the Notes shall be freely transferable.

                                      A-5
<PAGE>

5.       Sinking Fund.

         The Notes are not entitled to the benefit of any sinking fund.

6.       Tax Event Redemption.

                  The Notes are subject to a Tax Event Redemption as specified
in Article 11 of the Base Indenture and Article III of this First Supplemental
Indenture. If a Tax Event occurs, the Company, may at its option, and upon not
less than 30 calendar days nor more than 60 calendar days' notice to the Holders
of the Notes, redeem all outstanding Notes in whole, but not in part at the
Redemption Price equal to, for each Note, the Redemption Amount, plus accrued
and unpaid interest to the Redemption Date. Upon the occurrence of a Tax Event
Redemption after the successful remarketing of the Notes, the Redemption Price
will be payable in cash to the Holders of any outstanding Notes. The Redemption
Amount, plus any accrued and unpaid interest, if any, to the Redemption Date,
shall be paid prior to 12:00 noon (New York City time) on the Tax Event
Redemption Date. The payment shall be made to each Holder by check or wire
transfer in immediately available funds, at such place and to such account as
may be designated by each such Holder.

7.       Remarketing.

         (a) The Company shall engage a nationally recognized investment bank
(the "Remarketing Agent"), pursuant to a Remarketing Agreement to be entered
into between the Company and the Remarketing Agent to sell the Notes of Holders
of Normal Units, other than Holders that have elected not to participate in the
remarketing pursuant to the procedures set forth in paragraph (l) below, and
holders of Separate Notes that have elected to participate in the remarketing
pursuant to the procedures set forth in paragraph (m) below and in Section
4.5(f) of the Pledge Agreement.

                  Not later than 15 nor more than 30 calendar days prior to the
Initial Remarketing date or the first day of any Subsequent Remarketing Period,
the Company shall request the Clearing Agency (or any successor Clearing
Agency), to notify its Beneficial Owners or Depositary participants holding
Normal Units or Separate Notes of the impending remarketing. On or before the
seventh Business Day prior to the Initial Remarketing Date and the first day of
any Subsequent Remarketing Period, the Company or the Remarketing Agent shall
give Holders of Normal Units and holders of Separate Notes notice of the
remarketing (the "Remarketing Notice") (the form of which notice to be provided
by the Company) in a daily newspaper in the English language of general
circulation in The City of New York, which is expected to be The Wall Street
Journal, including the specific U.S. Treasury security or securities (including
the CUSIP number and/or the principal terms of such Treasury security or
securities), that must be delivered by Holders of Normal Units that elect not to
participate in the remarketing no later than 10:00 a.m. on the fourth Business
Day preceding such Remarketing Date.

                                      A-6
<PAGE>

         (b) The Purchase Contract Agent shall notify, by 10:00 a.m. (New York
City time) on the third Business Day preceding the Remarketing Date, the
Remarketing Agent and the Collateral Agent of the aggregate number of Notes of
Normal Unit Holders to be remarketed. No later than 10:00 a.m. (New York City
time) on the third Business Day immediately preceding the Remarketing Date,
pursuant to the terms of the Pledge Agreement, the Custodial Agent will notify
the Remarketing Agent of the aggregate number of Separate Notes to be
remarketed.

         (c) Upon receipt of such notice from the Purchase Contract Agent and
the Custodial Agent, the Remarketing Agent will on the Initial Remarketing Date
or a Subsequent Remarketing Date, as the case may be, use its reasonable best
efforts to (i) establish a rate of interest that, in the opinion of the
Remarketing Agent, will, when applied to the Notes (assuming, even if not true,
that all of the Notes are included in the remarketing), enable the then current
aggregate market value of the Notes to have a value equal to 100.25% of the
Remarketing Value (as defined in the Purchase Contract Agreement) as of the
Remarketing Date, provided that in no event shall the Reset Rate be less than
the initial rate borne by the Notes, and (ii) sell such Notes on such date at a
price equal to at least 100.25% of the Remarketing Value. In the case of a
successful remarketing prior to the third Business Day prior to the Stock
Purchase Date, the Remarketing Agent will use the proceeds from a successful
remarketing to purchase in open market transactions or at Treasury auction the
appropriate U.S. Treasury securities (the "Agent-purchased Treasury
Consideration") with the CUSIP numbers, if any, selected by the Remarketing
Agent, described in clauses (i) and (ii) of the definition of the Remarketing
Value related to the Notes of Holders of Normal Units that were remarketed.

         (d) On or prior to the third Business Day following the Initial
Remarketing Date or a Subsequent Remarketing Date (other than a Subsequent
Remarketing Date that occurs on the third Business Day prior to the Stock
Purchase Date), as the case may be, the Remarketing Agent shall deliver such
Agent-purchased Treasury Consideration to the Purchase Contract Agent, which
shall thereupon deliver such Agent-purchased Treasury Consideration to the
Collateral Agent. The Collateral Agent, for the benefit of the Company, will
thereupon apply such Agent-purchased Treasury Consideration, in accordance with
the Pledge Agreement, to secure such Holders' obligations under the Purchase
Contracts.

         (e) In the case of a successful remarketing on the third Business Day
prior to the Stock Purchase Date, the Remarketing Agent will cause the proceeds
from such successful remarketing to be remitted, along with notification
thereof, to the Purchase Contract Agent for the benefit of the Holders of such
remarketed Notes, which shall thereupon deliver such cash proceeds to the
Collateral Agent. The Collateral Agent, for the benefit of the Company, will
thereupon apply such cash proceeds, in accordance with the Pledge Agreement, to
secure such Holders' obligations under the Purchase Contracts.

                  In connection with any successful remarketing, the Remarketing
Agent will deduct as a remarketing fee an amount not exceeding 25 basis points
(.25%) of the total proceeds from the remarketing (the "Remarketing Fee"). The
Remarketing Agent will remit (1) the portion of the proceeds from the
remarketing attributable to the Separate Notes to the holders of Separate Notes
that were remarketed and (2) the remaining portion of the proceeds, in each
case, less those proceeds used to purchase the Agent-purchased Treasury
Consideration (in the case of a remarketing prior to the third Business Day
prior to the Stock Purchase Date), to the Holders of the Normal Units that were
remarketed, all determined on a pro rata basis, in each case, on or prior to the
third Business Day following the Initial Remarketing Date or a Subsequent
Remarketing Date, as the case may be. Holders whose Notes are so remarketed will
not otherwise be responsible for the payment of any Remarketing Fee in
connection therewith.

                                      A-7
<PAGE>

         (f) If, despite its reasonable best efforts, the Remarketing Agent
cannot establish a Reset Rate on the Initial Remarketing Date so as to allow the
Remarketing Agent to remarket the Notes offered for remarketing on such date at
a price equal to at least 100.25% of the Remarketing Value, the Remarketing
Agent will attempt to establish a Reset Rate meeting these requirements on each
of the three Business Day periods immediately preceding each of June 16, 2005,
July 14, 2005 and August 16, 2005 (each, a "Subsequent Remarketing Period").

         (g) If the Remarketing Agent cannot remarket the Notes included in the
remarketing on the Initial Remarketing Date or during any Subsequent Remarketing
Period at a price equal to at least 100.25% of the Remarketing Value or the
Remarketing Agent has determined that the remarketing may not be commenced or
consummated pursuant to applicable law, the remarketing will be deemed to have
failed (each, a "Terminated Remarketing Period"). If, in spite of using its
reasonable best efforts, the Remarketing Agent fails to remarket the Notes
underlying the Normal Units at at least 100.25% of the Remarketing Value in
accordance with the terms of the Pledge Agreement by 4:00 p.m. (New York City
time) on the third Business Day immediately preceding the Stock Purchase Date,
the "Last Failed Remarketing" will be deemed to have occurred. The Collateral
Agent, for the benefit of the Company, may exercise its rights as a secured
party with respect to such Notes, including those actions specified below;
provided, that if upon the Last Failed Remarketing, the Collateral Agent
delivers the Notes to the Company in full satisfaction of the Holder's
obligation under the Purchase Contract, any accumulated and unpaid interest on
such Notes will become payable by the Company to the Agent for payment to the
Holder of the Normal Units to which such Notes relate. Such payment will be made
by the Company on or prior to 5:00 p.m. (New York City time) on the Stock
Purchase Date in lawful money of the United States by certified or cashier's
check or wire transfer in immediately available funds payable to or upon the
order of the Purchase Contract Agent.

         (h) In the event of a Last Failed Remarketing or the Notes have not
been earlier redeemed pursuant to a Tax Event Redemption, the Remarketing Agent
shall determine the Reset Rate that shall apply to the Notes held by the Holders
of Normal Units that elected not to participate in the remarketing and Holders
of Separated Notes according to the following method, provided that in no event
shall the Reset Rate be less than the initial rate borne by the Notes and will
not exceed the maximum rate permitted by state usury laws and other applicable
laws. After the Last Failed Remarketing, the Remarketing Agent will take the
average of the interest rates quoted to it by three nationally recognized
investment banks selected by the Company, which are underwriters or dealers in
debt securities similar to the Notes, that in their judgment reflects an
accurate market rate of interest applicable to the Notes at that time. Following
receipt of these quotes, the Remarketing Agent will have the right, in its sole
judgment, to either recalculate the average based on only two of the quoted
interest rates if one of the three quotes, in the Remarketing Agent's sole
discretion, did not reflect market conditions or, alternatively, determine a
consensus among the investment banks rather than a strict mathematical average
by taking into account all relevant qualitative and quantitative factors. These
factors may include, but shall not limited to, maturity of the Notes, the credit
rating and credit risk of the Company and companies of similar industries, the
then yield to maturity of the Notes and the state of the markets for primary and
secondary sales of similar debt securities.

                                      A-8
<PAGE>

         (i) If a Terminated Remarketing Period occurs, the Remarketing Agent
will, pursuant to the Remarketing Agreement, promptly advise the Trustee, the
Purchase Contract Agent, the Collateral Agent, the Company and the Depositary
that a Terminated Remarketing Period has occurred. The Company will cause a
notice of any Terminated Remarketing Period, the Last Failed Remarketing and the
Reset Rate to be published not later than the fourth Business Day following the
Initial Remarketing Date or a Subsequent Remarketing Date and the date of the
Last Failed Remarketing, as the case may be, in a daily newspaper in the English
language of general circulation in The City of New York, which is expected to be
The Wall Street Journal. The Company will also release this information by means
of Bloomberg and Reuters newswire or, if not available, by similar means.

         (j) With respect to any Notes which constitute part of Normal Units
which are subject to the Last Failed Remarketing, the Collateral Agent for the
benefit of the Company reserves all of its rights as a secured party with
respect thereto and, subject to applicable law may, among other things,
foreclose on and retain such Notes for the benefit of the Company and permit the
Company to cause the Notes to be sold or to retain and cancel such Notes, in
either case, in full satisfaction of such Holders' obligations under the
Purchase Contracts.

         (n) A Holder of Normal Units may elect not to participate in the
remarketing and retain the Notes underlying such Units by notifying the Agent
(by delivering written notice to the Agent, in the form of Exhibit D (including
the CUSIP number and/or the principal terms of such security or securities)
attached to the Purchase Contract Agreement, stating that the Holder has
transferred and delivered the specific U.S. Treasury security or securities
identified by the Purchase Contract Agent that constitute the U.S. Treasury
securities described in clauses (i) and (ii) of the definition of Remarketing
Value relating to the retained Notes (the "Opt-out Treasury Consideration") to
the Purchase Contract Agent not later than 10:00 a.m. (New York City time) on
the fourth Business Day immediately preceding (i) the Initial Remarketing Date
until the Business Day immediately following such Initial Remarketing Date, (ii)
the Subsequent Remarketing Periods beginning on the third Business Day preceding
June 16, 2005 and July 14, 2005 until the Business Day immediately following
such Remarketing Period and (iii) the tenth Business Day preceding the Stock
Purchase Date. Upon receipt thereof by the Purchase Contract Agent, the Purchase
Contract Agent shall deliver such Opt-out Treasury Consideration to the
Collateral Agent. The Collateral Agent will hold Opt-out Treasury Consideration
in an account separate from the Collateral Account. On a Remarketing Settlement
Date, the Collateral Agent, for the benefit of the Company, shall thereupon
transfer to the Collateral Account such Opt-out Treasury Consideration to secure
such Normal Units Holder's obligations under their applicable Purchase Contracts
constituting a part of the Holder's Normal Units in substitution for the Pledged
Notes and to fund the quarterly interest payment due to such Holders on the
Stock Purchase Date and deliver the applicable Notes to these Holders. On the
first Business Day immediately following the Terminated Remarketing Period, the
Collateral Agent, will transfer the Opt-out Treasury Consideration to the
Purchase Contract Agent and the Purchase Contract Agent will transfer promptly
such Opt-out Treasury Consideration to the appropriate Holders. A Holder that
does not so deliver the Opt-out Treasury Consideration pursuant to this
paragraph (n) shall be deemed to have elected to participate in the remarketing.

                                      A-9
<PAGE>

         (k) A Holder of Separate Note(s) may elect to participate in the
remarketing by delivering their Separate Notes along with notice of their
election substantially in the form of Exhibit B of the Indenture to the
Collateral Agent not later than 10:00 a.m. (New York City time) on the fourth
Business Day (i) immediately preceding the Initial Remarketing Date until the
Business Day immediately following such Initial Remarketing Date, (ii)
immediately preceding any Subsequent Remarketing Period until the Business Day
immediately following such Remarketing Period, or (iii) the tenth Business Day
immediately preceding the Stock Purchase Date. The Collateral Agent will hold
these Notes in an account separate from the Collateral Account pursuant to the
Pledge Agreement. Holders of Separate Notes that have elected previously to have
their Separate Notes remarketed will have the right to withdraw that election on
or prior to 10:00 a.m. (New York City Time) on the dates specified in the
preceding sentence. Within three Business Days following the Remarketing Date,
(A) if the remarketing was successful, the Remarketing Agent will notify the
Collateral Agent of the successful remarketing and request that the Separate
Notes be delivered to the purchasers thereof, and (B) if there was a Terminated
Remarketing Period on such date, the Collateral Agent will return the Separate
Notes to their Holders.

                  As soon as the Company receives notice of an intended
remarketing from the Remarketing Agent, the Company shall request the Clearing
Agency (or any successor Clearing Agency), to notify its Beneficial Owners or
Depositary participants holding Normal Units or Separate Notes of the impending
remarketing.

                  In accordance with the Depositary's normal procedures, on the
Remarketing Settlement Date or the Purchase Contract Date, as applicable, the
transactions described above with respect to such Note tendered for purchase and
sold in a successful remarketing shall be executed through the Depositary, and
the accounts of the respective Depositary participants shall be debited and
credited and such Notes delivered by book-entry as necessary to effect purchases
and sales of such Notes. The Depositary shall make payment in accordance with
its normal procedure; provided that, the procedures set forth herein, including
provisions for payment by purchasers of the Notes in the successful remarketing,
shall be subject to modification to the extent required by the Depositary or if
the book-entry system is no longer available for the Notes at the time of the
remarketing, to facilitate the remarketing of the Notes in certified form, and
shall provide for the authentication and delivery of Notes in a principal amount
equal to the unremarketed portion of such Notes. In addition, the Remarketing
Agent may modify, the settlement procedures set forth herein in order to
facilitate the settlement process.

                                      A-10
<PAGE>

                  If any Holder of Notes selling Notes in the remarketing fails
to deliver such Notes, the direct or indirect Depositary participant of such
selling Holder and of any other Person who was to have purchase Notes in the
remarketing may deliver to any such other Person an aggregate principal amount
of Notes that is less than the aggregate principal amount of Senior Notes that
otherwise was to be purchased by such Person. In such event, the aggregate
principal amount of Notes to be so delivered shall be determined by such direct
or indirect Depositary participant, and delivery of such lesser aggregate
principal amount of Notes shall constitute good delivery.

                  Under the Remarketing Agreement, the Company, in its capacity
as issuer of the Notes, shall be liable for, and shall pay, any and all costs
and expenses incurred in connection with any remarketing, other than the
Remarketing Fee.

                  Pursuant to the Indenture, in the event of a successful
remarketing, the interest rate on all of the outstanding Notes (whether or not
included in the remarketing) shall be adjusted to the Reset Rate and, in the
event of a Last Failed Remarketing, the interest rate on all Separate Notes
shall be adjusted to the Reset Rate as set forth in the Indenture.

8.       Default and Remedies.

                  In case an Event of Default, as defined in the Indenture,
shall have occurred and be continuing, the principal of all of the Notes may be
declared, and upon such declaration shall become, due and payable (or, in
certain circumstances shall ipso facto become due and payable), in the manner,
with the effect and subject to the conditions provided in the Indenture. The
Indenture contains provisions permitting the Holders of specified percentages in
aggregate principal amount of the outstanding 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 hereof
or in lieu hereof, whether or not notation of such consent or waiver is made
upon this Security.

9.       Amendment; Supplements.

                  Without the consent of any Holders of the Notes, the Company
and the trustee may enter into one or more supplemental indentures supplementing
the Indenture, pursuant to Section 901 of the Base Indenture to, among other
things, add to the covenants of the Company for the benefits of the Holders of
the Notes, to add any additional Events of Default with respect to the Notes,
cure any ambiguity or defect, to correct or supplement any provision of the
Indenture which may be inconsistent with any other provision therein or herein,
or to make any other provisions or changes with respect to matters or questions
arising under the Indenture or this Note or make such other changes as are
specified and permitted under Section 901 of the Base Indenture. With respect to
provisions of the Notes and the Indenture other than those specified in the
preceding sentence pursuant to Section 901 of the Base Indenture, the Company
and the Trustee may enter into one or more supplemental indentures supplementing
the Indenture, pursuant to Section 902 of the Base Indenture, for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of the Indenture or of modifying in any manner the rights of the
Holders of the Notes, but only with the consent of the Holders of more than 50%
in aggregate principal amount of the Outstanding Notes, provided, however, that
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note, among other things, (1) change the Stated Maturity of the
principal of or interest on the Notes, or reduce the principal amount thereof or
the rate of interest thereon, if any, reduce the amount payable in accordance
with the terms of the Notes upon a declaration of acceleration of Maturity
thereof, (2) reduce the percentage in principal amount of the Outstanding Notes,
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 the Indenture or certain defaults hereunder and their
consequences, or (3) modify other provisions as set forth in the Base Indenture.

                                      A-11
<PAGE>

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

10.      Obligation Absolute and Unconditional.

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

11.      Tax Treatment.

                  The Company agrees, and by acceptance of beneficial ownership
interest in the Notes each beneficial holder of Notes will be deemed to have
agreed, (1) to treat itself as owner of the Notes for all tax purposes, (2) to
treat the Notes as indebtedness for all tax purposes, (3) to treat the Notes as
indebtedness that is subject to Treas. Reg. Sec. 1.1275-4 (the "Contingent
Payment Regulations") for U.S. federal income tax purposes and (4) to be bound
by the Company's determination of the "comparable yield" and "projected payment
schedule," within the meaning of the Contingent Payment Regulations, with
respect to the Notes for U.S. federal income tax purposes. A Holder of Notes may
obtain the amount of original issue discount, issue date, yield to maturity,
comparable yield and projected payment schedule by submitting a written request
for it to the Company at the following address: 461 From Road, Paramus, New
Jersey 07652, Attention: Treasurer.

12.      Separability.

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

                                      A-12
<PAGE>

13.      Governing Law.

                  THIS FIRST SUPPLEMENTAL INDENTURE, EACH NOTE AND EACH COUPON
SHALL BE DEEMED TO BE NEW YORK CONTRACTS, AND FOR ALL PURPOSES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF SAID STATE.

14.      Copies of Indenture.

                  The Company will furnish to any Holder upon written request
and without charge a coy of the Indenture. Requests may be made to:

                  Toys "R" Us, Inc.
                  461 From Road
                  Paramus, New Jersey 07652

15.      Covenants.

                  The Notes are subject to the covenants set forth in the
Indenture. The Indenture imposes certain limitations on the ability of the
Company to, among other things, merge or consolidate with any other Person or
sell, assign, convey or transfer or otherwise dispose of assets substantially as
an entirety to another Person, and requires that the Company comply with certain
further covenants. All such covenants and limitations are subject to a number of
important qualifications and exceptions.

                                      A-13
<PAGE>

                                   ASSIGNMENT

FOR VALUE RECEIVED, the undersigned assigns and transfers this Note to:

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

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

(Insert assignee's social security or tax identification number)

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

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

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

(Insert address and zip code of assignee)

and irrevocably appoints

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

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

--------------------------------------------------------------------------------
agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him or her.

Date: ____________________

                                   Signature:

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

                                   Signature
                                   Guarantee:
                                             ------------------------------

(Sign exactly as your name appears on the other side of this Note)

                                      A-14
<PAGE>

                                  ABBREVIATIONS

                  The following abbreviations, when used in the inscription on
the face of this instrument, shall be construed as though they were written out
in full according to applicable laws or regulations:

TEN COM -                     as tenants in common

UNIF GIFT MIN ACT -           Custodian

                              --------------------------------
                              (cust)                   (minor)

                              Under Uniform Gifts to Minors Act

                              --------------------------------
                                          (State)

TEN ENT -                     as tenants by the entireties

JT TEN -                      as joint tenants with right of survivorship and
                              not as tenants in common

Additional abbreviations may also be used though not in the above list.

                                      A-15
<PAGE>

                                                                      Schedule A

                     (TO BE ATTACHED TO GLOBAL CERTIFICATES)

            SCHEDULE OF INCREASES OR DECREASES IN GLOBAL CERTIFICATE

                  The following increases or decreases in this Global
Certificate have been made:

<TABLE>
<CAPTION>
                                                                 Stated Amount of
                   Amount of Decrease    Amount of Increase         the Global
                    in Stated Amount     in Stated Amount of       Certificate
                      of the Global          the Global           Following Such       Signature of Authorizing
      Date             Certificate           Certificate       Decrease or Increase            Signatory
<S>               <C>                   <C>                    <C>                    <C>

</TABLE>

                                      A-16
<PAGE>

                                    EXHIBIT B

        INSTRUCTION FROM HOLDER TO COLLATERAL AGENT REGARDING REMARKETING

JPMorgan Chase Bank,
     as Collateral Agent
450 West 33rd Street
New York, New York  10001
Attention:  Institutional Trust Services

Re:  Senior Notes due 2007 of Toys "R" Us, Inc. (the "Company")

                  The undersigned hereby notifies you in accordance with Section
4.5(f) of the Pledge Agreement, dated as of [ ], 2002 (the "Pledge Agreement"),
among the Company, yourselves, as Collateral Agent, Securities Intermediary and
Custodial Agent, and The Bank of New York, as Purchase Contract Agent and as
attorney-in-fact for the Holders of Normal Units and Stripped Units from time to
time, that the undersigned elects to deliver $__________ aggregate principal
amount of Notes for delivery to the Remarketing Agent (for remarketing pursuant
to Section 4.5(f) of the Pledge Agreement) provided that such Holder may not
make such election later than 10:00 a.m. (New York City time) on (i) the fourth
Business Day immediately preceding the Initial Remarketing Date until the
Business Day immediately following the Initial Remarketing Date, (ii) the fourth
Business Day immediately preceding a Remarketing Period until the Business Day
immediately following such Remarketing Period or (iii) the tenth Business Day
immediately preceding the Stock Purchase Date. The undersigned will, upon
request of the Remarketing Agent, execute and deliver any additional documents
deemed by the Remarketing Agent or by the Company to be necessary or desirable
to complete the sale, assignment and transfer of the Notes tendered hereby.

                  The undersigned hereby instructs you, upon receipt of the
proceeds of such remarketing from the Remarketing Agent, net of amounts payable
to the Remarketing Agent in accordance with the Pledge Agreement, to deliver
such proceeds to the undersigned in accordance with the instructions indicated
herein under "A. Payment Instructions." The undersigned hereby instructs you, in
the event of a Terminated Remarketing Period, upon receipt of the Notes tendered
herewith from the Remarketing Agent, to be delivered to the person(s) and the
address(es) indicated herein under "B. Delivery Instructions."

                                      B-1
<PAGE>

                  With this notice, the undersigned hereby (i) represents and
warrants that the undersigned has full power and authority to tender, sell,
assign and transfer the Notes tendered hereby and that the undersigned is the
record owner of any Notes tendered herewith in physical form or is a participant
in The Depository Trust Company ("DTC") and the beneficial owner of any Notes
tendered herewith by book-entry transfer to your account at DTC and (ii) agrees
to be bound by the terms and conditions of Section 4.5(f) of the Pledge
Agreement. Capitalized terms used herein but not defined shall have the meaning
set forth in the Pledge Agreement.

Date:  _______________               Signature:__________________________

                                     Signature Guarantee:

Name:           Social Security or other Taxpayer Identification Number, if any:

Address:

A.  PAYMENT INSTRUCTIONS

Proceeds of the remarketing should be paid by check in the name of the person(s)
set forth below and mailed to the address set forth below.

Name(s): ________________________________
                  (Please Print)

Address: ________________________________
                  (Please Print)

         (Zip Code)

         (Tax Identification or Social Security Number):

B.  DELIVERY INSTRUCTIONS

In the event of a Terminated Remarketing Period, Notes that are in physical form
should be delivered to the person(s) set forth below and mailed to the address
set forth below.

                                      B-2
<PAGE>

Name(s): ________________________________
                  (Please Print)

Address: ________________________________
                  (Please Print)

                  (Zip Code)

                  (Tax Identification or Social Security Number):

In the event of a Terminated Remarketing Period, Notes that are in book-entry
form should be credited to the account at The Depository Trust Company set forth
below.

Name of Account Party:                          DTC Account Number:

                                      B-3

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