Document:

Exhibit 4.22

JONES APPAREL GROUP, INC.,

JONES APPAREL GROUP HOLDINGS, INC.,

JONES APPAREL GROUP USA, INC., and

NINE WEST GROUP INC.,

as Issuers

and

THE BANK OF NEW YORK

as Trustee

INDENTURE 

Dated as of February 1, 2001

 Zero Coupon Convertible Senior Notes Due 2021

 

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                                    TABLE OF CONTENTS

                                                                            Page

                                        ARTICLE 1

                       DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01.     Definitions................................................1

Section 1.02.     Other Definitions..........................................8

Section 1.03.     Incorporation by Reference of Trust Indenture Act..........8

Section 1.04.     Rules of Construction......................................8

                                        ARTICLE 2

                                     THE SECURITIES

Section 2.01.     Form of Securities.........................................9

Section 2.02.     Title and Terms...........................................10

Section 2.03.     Denominations.............................................10

Section 2.04.     Forms Generally...........................................10

Section 2.05.     Execution, Authentication and Delivery....................10

Section 2.06.     Registrar, Paying Agent and Conversion Agent..............11

Section 2.07.     Transfer and Exchange.....................................11

Section 2.08.     Replacement Securities....................................12

Section 2.09.     Outstanding Securities....................................13

Section 2.10.     Temporary Securities; Exchange of Global Security for
                  Definitive Securities.....................................13

Section 2.11.     Book-entry Provisions for Global Securities...............14

Section 2.12.     Cancellation..............................................15

Section 2.13.     Special Transfer Provisions...............................15

Section 2.14.     CUSIP and ISIN Numbers....................................18

Section 2.15.     Legend on Restricted Securities...........................18

                                        ARTICLE 3

                                       REDEMPTION

Section 3.01.     Notices to Trustee........................................19

Section 3.02.     Selection of Securities To Be Redeemed....................19

Section 3.03.     Notice of Redemption......................................19

Section 3.04.     Effect of Notice of Redemption............................20

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                                    TABLE OF CONTENTS
                                       (Continued)

                                                                           Page
Section 3.05.     Deposit of Redemption Price...............................21

Section 3.06.     Securities Redeemed in Part...............................21

Section 3.07.     Conversion Arrangement on Call for Redemption.............21

Section 3.08.     Purchase of Securities at Option of the Holder............22

Section 3.09.     Repurchase of Securities at Option of the Holder upon
                  Fundamental Change........................................28

Section 3.10.     Effect of Purchase Notice or Fundamental Change
                  Repurchase Notice.........................................35

Section 3.11.     Deposit of Purchase Price or Fundamental Change
                  Repurchase Price..........................................36

Section 3.12.     Securities Purchased or Repurchased in Part...............37

Section 3.13.     Covenant to Comply With Securities Laws Upon Purchase or
                  Repurchase of Securities..................................37

Section 3.14.     Repayment to the Issuers..................................37

                                         ARTICLE 4

                                         COVENANTS

Section 4.01.     Payment of Securities.....................................37

Section 4.02.     SEC Reports...............................................38

Section 4.03.     Corporate Existence.......................................38

Section 4.04.     Restrictions on Liens.....................................38

Section 4.05.     Restrictions on Sale and Leaseback Transactions...........40

Section 4.06.     Exempted Debt.............................................41

Section 4.07.     Waiver of Certain Covenants...............................41

Section 4.08.     Compliance Certificate....................................42

Section 4.09.     Further Instruments and Acts..............................42

Section 4.10.     Calculation of Original Issue Discount....................42

Section 4.11.     Book-Entry System.........................................42

                                         ARTICLE 5

                                    SUCCESSOR COMPANIES

Section 5.01.     Merger and Consolidation..................................42

                                         ARTICLE 6

                                   DEFAULTS AND REMEDIES

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                                    TABLE OF CONTENTS
                                       (Continued)
                                                                           Page
Section 6.01.     Events of Default.........................................43

Section 6.02.     Acceleration..............................................45

Section 6.03.     Other Remedies............................................46

Section 6.04.     Waiver of Past Defaults...................................46

Section 6.05.     Control by Majority.......................................46

Section 6.06.     Limitation on Suits.......................................46

Section 6.07.     Rights of Holders to Receive Payment......................47

Section 6.08.     Collection Suit by Trustee................................47

Section 6.09.     Trustee May File Proofs of Claim..........................47

Section 6.10.     Priorities................................................47

Section 6.11.     Undertaking for Costs.....................................48

Section 6.12.     Waiver of Stay or Extension Laws..........................48

                                         ARTICLE 7

                                          TRUSTEE

Section 7.01.     Duties of Trustee.........................................48

Section 7.02.     Rights of Trustee.........................................49

Section 7.03.     Individual Rights of Trustee..............................50

Section 7.04.     Trustee's Disclaimer......................................50

Section 7.05.     Notice of Defaults........................................51

Section 7.06.     Reports by Trustee to Holder..............................51

Section 7.07.     Compensation and Indemnity................................51

Section 7.08.     Replacement of Trustee....................................52

Section 7.09.     Successor Trustee by Merger...............................52

Section 7.10.     Eligibility; Disqualification.............................53

Section 7.11.     Preferential Collection of Claims Against Issuers.........53

                                         ARTICLE 8

                                  DISCHARGE OF INDENTURE

Section 8.01.      Discharge of Liability on Securities.....................53

Section 8.02.      Application of Trust Money...............................54

Section 8.03.      Repayment to Issuers.....................................54

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                                      TABLE OF CONTENTS
                                       (Continued)

                                                                           Page

                                        ARTICLE 9

                                       AMENDMENTS

Section 9.01.     Without Consent of Holders................................54

Section 9.02.     With Consent of Holders...................................55

Section 9.03.     Compliance with Trust Indenture Act.......................56

Section 9.04.     Revocation and Effect of Consents and Waivers.............56

Section 9.05.     Notation on or Exchange of Securities.....................56

Section 9.06.     Trustee To Sign Amendments................................56

Section 9.07.     Payment for Consent.......................................57

                                        ARTICLE 10

                              SPECIAL TAX EVENT CONVERSION

Section 10.01.    Optional Conversion to Semi-annual Cash Pay Note Upon Tax
                  Event.....................................................57

Section 10.02.    Paying Agent To Hold Money in Trust.......................57

Section 10.03.    Holder Lists..............................................58

Section 10.04.    Payment of Interest; Interest Rights Preserved............58

                                         ARTICLE 11

                                         CONVERSION

Section 11.01.    Conversion Privilege......................................59

Section 11.02.    Conversion Procedure......................................60

Section 11.03.    Fractional Shares.........................................61

Section 11.04.    Taxes on Conversion.......................................62

Section 11.05.    Company to Provide Stock..................................62

Section 11.06.    Adjustment for Change In Capital Stock....................62

Section 11.07.    Adjustment for Rights Issue...............................63

Section 11.08.    Adjustment for Other Distributions........................64

Section 11.09.    When Adjustment May Be Deferred...........................66

Section 11.10.    When No Adjustment Required...............................66

Section 11.11.    Notice of Adjustment......................................66

Section 11.12.    Voluntary Increase........................................66

Section 11.13.    Notice of Certain Transactions............................66

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                                      TABLE OF CONTENTS
                                       (Continued)

                                                                           Page
Section 11.14.    Reorganization of Company; Special Distributions..........67

Section 11.15.    Company Determination Final...............................68

Section 11.16.    Trustee's Adjustment Disclaimer...........................68

Section 11.17.    Simultaneous Adjustments..................................68

Section 11.18.    Successive Adjustments....................................68

Section 11.19.    Rights Issued in Respect of Common Stock Issued Upon
                  Conversion................................................68

Section 11.20.    Restriction on Common Stock Issued Upon Conversion........68

                                        ARTICLE 12

                                      MISCELLANEOUS

Section 12.01.    Trust Indenture Act Controls..............................69

Section 12.02.    Notices...................................................69

Section 12.03.    Communication by Holders with Other Holders...............70

Section 12.04.    Certificate and Opinion as to Conditions Precedent........70

Section 12.05.    Statements Required in Certificate or Opinion.............70

Section 12.06.    When Securities Disregarded...............................71

Section 12.07.    Rules by Trustee, Paying Agent and Registrar..............71

Section 12.08.    Legal Holidays............................................71

Section 12.09.    Governing Law.............................................71

Section 12.10.    No Recourse Against Others................................71

Section 12.11.    Successors................................................72

Section 12.12.    Multiple Originals........................................72

Section 12.13.    Table of Contents; Headings...............................72

Section 12.14.    Severability..............................................72

EXHIBIT A: FORM OF SECURITY................................................A-1

EXHIBIT B: FORM OF TRANSFER CERTIFICATE FOR TRANSFER
     FROM GLOBAL SECURITY OR DEFINITIVE SECURITY
     TO DEFINITIVE SECURITY................................................B-1

EXHIBIT C: FORM OF NON-DISTRIBUTION LETTER FOR
     INSTITUTIONAL ACCREDITED INVESTORS....................................C-1

EXHIBIT D: FORM OF PURCHASE NOTICE.........................................D-1

EXHIBIT E: FORM OF FUNDAMENTAL CHANGE REPURCHASE
     NOTICE................................................................E-1 

EXHIBIT F: FORM OF TRANSFER CERTIFICATE FOR TRANSFER
     OF RESTRICTED COMMON STOCK............................................F-1

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    INDENTURE, dated as of February 1, 2001, by and among JONES APPAREL
GROUP, INC., a Pennsylvania corporation, JONES APPAREL GROUP HOLDINGS, INC., a Delaware
corporation, JONES APPAREL GROUP USA, INC., a Pennsylvania corporation, NINE WEST GROUP
INC., a Delaware corporation (collectively, the "Issuers"), and THE BANK OF NEW
YORK, a New York State banking corporation, as trustee (the "Trustee").

    Each party agrees as follows for the benefit of the other parties
and for the equal and ratable benefit of the Holders of the Issuers' Zero Coupon
Convertible Senior Notes Due 2021 (the "Securities"):

ARTICLE 1

DEFINITIONS AND INCORPORATION BY REFERENCE

    SECTION 1.01.  Definitions.

    "Acquiring Person" has the meaning specified in Section
3.09.

    "Affiliate" of any specified Person means any other
Person, directly or indirectly, controlling or controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any 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.

    "Agent Members" has the meaning specified in
Section 2.11.

    "Attributable Debt" in respect of a Sale and Leaseback
Transaction means, at the time of determination, the present value (discounted at the
actual rate of interest of such transaction) of the obligation of the lessee for net
rental payments during the remaining term of the lease included in such Sale and Leaseback
Transaction (including any period for which such lease has been extended or may, at the
option of the lessor, be extended). The term "net rental payments" under any
lease for any period shall mean the sum of the rental and other payments required to be
paid in such period by the lessee thereunder, not including, however, any amounts required
to be paid by such lessee (whether or not designated as rental or additional rental) on
account of maintenance and repairs, insurance, taxes, assessments, water rates or similar
charges required to be paid by such lessee thereunder or any amounts required to be paid
by such lessee thereunder contingent upon the amount of sales, maintenance and repairs,
insurance, taxes, assessments, water rates or similar charges. In the case of any lease
which is terminable by the lessee upon the payment of a penalty, such net amount shall
also include the amount of such penalty, but no rent shall be considered as required to be
paid under such lease subsequent to the first date upon which it may be so terminated
without payment of such penalty.

    "Average Quoted Price" has the meaning specified in
Section 11.01.

    "Board of Directors" means the Board of Directors of the
applicable Issuer or any committee thereof duly authorized to act on behalf of the Board
of Directors of such Issuer.

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    "Business Day" means each day which is not a Legal
Holiday.

    "Capital Stock" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other equivalents of
or interests in (however designated) equity of such Person, including any preferred stock,
but excluding any debt securities convertible into such equity.

    "Clearstream" has the meaning specified in Section 2.01.

    "Closing Date" means the date of this Indenture.

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

    "Common Stock" means the shares of Common Stock, par value
$0.01 per share, of the Company as it exists on the date of this Indenture or any other
shares of Capital Stock of the Company into which the Common Stock shall be reclassified
or changed.

    "Company" means Jones Apparel Group, Inc., a Pennsylvania
corporation, until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter "Company" shall mean such successor
Person.

    "Consolidated Net Tangible Assets" means, as of any date
of determination, the total amount of assets of the Issuers and their respective
Subsidiaries (less applicable reserves and other properly deductible items) after
deducting (1) all current liabilities (excluding the amount of those which are by
their terms extendable or renewable at the option of the obligor to a date more than 12
months after the date as of which the amount is being determined and excluding all
intercompany items between an Issuer and any of its wholly-owned Subsidiaries or between
Issuers or wholly-owned Subsidiaries of Issuers) and (2) all goodwill, trade names,
trademarks, patents, unamortized debt discount and expense and other like intangible
assets, all as determined on a consolidated basis in accordance with GAAP.

    "Consolidated Shareholders' Equity" means
consolidated shareholders' equity of the Issuers and their respective Subsidiaries as
determined in accordance with GAAP and reflected on the Issuers' most recent balance
sheet.

    "Conversion Agent" has the meaning specified in Section
2.06.

    "Conversion Date" has the meaning specified in
Section 11.02.

    "Conversion Rate" has the meaning specified in
Section 11.01.

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

    "Defaulted Interest" has the meaning specified in
Section 10.04.

    "Definitive Securities" has the meaning specified in
Section 2.01.

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    "Depositary" means, with respect to the Securities
issuable in whole or in part in global form, the Person specified pursuant to
Section 2.01 hereof as the initial Depositary with respect to the Securities, until a
successor shall have been appointed and become such pursuant to the applicable provisions
of this Indenture, and thereafter "Depositary" shall mean or include such
successor.

    "Dollar" means a dollar or other equivalent unit in such
coin or currency of the United States as at the time shall be legal tender for the payment
of public and private debt.

    "Euroclear" has the meaning specified in Section 2.01.

    "Ex-Dividend Time" has the meaning specified in
Section 11.01.

    "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

    "Fundamental Change" has the meaning specified in
Section 3.09.

    "Fundamental Change Notice" has the meaning specified in
Section 3.09.

    "Fundamental Change Notice Date" has the meaning specified
in Section 3.09.

    "Fundamental Change Repurchase Date" has the meaning
specified in Section 3.09.

    "Fundamental Change Repurchase Notice" has the meaning
specified in Section 3.09.

    "Fundamental Change Repurchase Price" has the meaning
specified in Section 3.09.

    "Funded Debt" means Indebtedness, whether incurred,
assumed or guaranteed, maturing by its terms more than one year from the date of creation
thereof or which is extendable or renewable at the sole option of the obligor in such
manner that it may become payable more than one year from the date of creation thereof,
provided, however, that Funded Debt shall not include obligations created pursuant to
leases, or any Indebtedness or portion thereof maturing by its terms within one year from
the time of any computation of the amount of outstanding Funded Debt unless such
Indebtedness shall be extendable or renewable at the sole option of the obligor in such
manner that it may become payable more than one year from such time, or any Indebtedness
for the payment or redemption of which money in the necessary amount shall have been
deposited in trust either at or before the maturity or redemption date thereof.

    "GAAP" means generally accepted accounting principles in
the United States of America as in effect from time to time, including those principles
set forth in (i) the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants, (ii) statements and
pronouncements of the Financial Accounting Standards Board, (iii) such other
statements by such other entity as approved by a significant segment of the accounting
profession and (iv) the rules and regulations of the SEC governing the inclusion of
financial statements (including pro forma financial statements) in periodic reports
required to be

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filed pursuant to Section 13 of the Exchange Act, including opinions and
pronouncements in staff accounting bulletins and similar written statements from the
accounting staff of the SEC. All ratios and computations based on GAAP contained in this
Indenture shall be computed in conformity with GAAP.

    "Global Security" has the meaning specified in Section
2.01.

    "Global Securities Legend" means the legend labeled as
such and that is set forth in Exhibit A hereto.

    "Holder" means the Person in whose name a Security is
registered on the Registrar's books.

    "Indebtedness" of a Person means indebtedness for borrowed
money and all indebtedness under purchase money mortgages or other purchase money liens or
conditional sales or similar title retention agreements (but excluding trade accounts
payable in the ordinary course of business) in each case where such indebtedness has been
created, incurred, assumed or guaranteed by such Person or where such Person is otherwise
liable therefore and indebtedness for borrowed money secured by any Lien upon property
owned by such Person even though such Person has not assumed or become liable for the
payment of such indebtedness; provided that if the obligation so secured has not been
assumed in full by such Person or is otherwise not such Person's legal liability in
full, the amount of such obligation for the purposes of this definition shall be limited
to the lesser of the amount of such obligation secured by such Lien or the fair market
value of the property securing such Lien.

    "Indenture" means this Indenture as amended or
supplemented from time to time and includes the terms of Securities established as
contemplated by Section 2.01.

    "Initial Purchasers" means Salomon Smith Barney Inc. and
Bear, Stearns & Co. Inc.

    "Interest Payment Date" has the meaning specified in
Section 10.01.

    "Issue Date" means the date the Securities are
authenticated under this Indenture.

    "Issue Price" of any Security means, in connection with
the original issuance of such Security, the initial issue price at which the Security is
sold as set forth on the face of the Security.

    "Issuer" means each party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained herein and required by the Trust Indenture Act, each other obligor
on the indenture securities.

    "Issuers' Notice" has the meaning specified in
Section 3.08.

    "Issuers' Notice Date" has the meaning specified in
Section 3.08.

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    "Lien" means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional sale or other title
retention agreement or lease in the nature thereof).

    "Market Price" has the meaning specified in
Section 3.08.

    "Maturity", when used with respect to any Security, means
the date on which the principal, Restated Principal Amount, Purchase Price or Fundamental
Change Repurchase Price of such Security becomes due and payable as therein or herein
provided, whether at the Stated Maturity, on a Redemption Date, Purchase Date or
Fundamental Change Repurchase Date, or by declaration of acceleration or otherwise.

    "Non-Global Purchasers" has the meaning specified in
Section 2.01.

    "Offering Memorandum" means the offering memorandum
relating to the Securities dated as of January 25, 2001.

    "Officer" means the Chairman of the Board, the Chief
Executive Officer, the Chief Financial Officer, the President, any Vice President, the
Treasurer or the Secretary of the applicable Issuer.

    "Officers' Certificate" means a certificate signed by
two Officers.

    "Opinion of Counsel" means a written opinion from legal
counsel. The counsel may be an employee of or counsel to the applicable Issuer or the
Trustee.

    "Option Exercise Date" has the meaning specified in
Section 10.01.

    "Original Issue Discount" of any Security means the
difference between the Issue Price and the Principal Amount at Maturity of the Security as
set forth on the face of the Security.

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

    "Principal Amount at Maturity" of a Security means the
Principal Amount at Maturity as set forth on the face of the Security.

    "Principal Property" means, any property owned or leased
by any Issuer or Restricted Subsidiary, the net book value of which exceeds one percent of
the Consolidated Net Tangible Assets of the Issuers and their respective Subsidiaries.

    "Purchase Agreement" means the Purchase Agreement dated
January 25, 2001, among the Issuers and the Initial Purchasers.

    "Purchase Date" has the meaning specified in
Section 3.08.

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    "Purchase Notice" has the meaning specified in
Section 3.08.

    "Purchase Price" has the meaning specified in
Section 3.08.

    "QIBs" has the meaning specified in Section 2.01.

    "Redemption Date" shall mean the date specified for
redemption of the Securities in accordance with the terms of the Securities and Article 3
hereof.

    "Redemption Price" has the meaning specified in the
Securities.

    "Regular Record Date" has the meaning specified in
Section 10.01.

    "Registration Rights Agreement" means the Registration
Rights Agreement dated February 1, 2001, among the Issuers and the Initial Purchasers. 

    "Regulation S" has the meaning specified in Section 2.01.

    "Restated Principal Amount" has the meaning specified in
Section 10.01.

    "Restricted Security" has the meaning specified in Section
2.15.

    "Restricted Securities Legend" means the legend labeled as
such and that is set forth in Exhibit A hereto.

    "Restricted Subsidiary" means, at any time, any Subsidiary
of an Issuer which would be a "Significant Subsidiary" at such time, as such
term is defined in Regulation S-X promulgated by the SEC, as in effect on the Closing
Date.

    "Rights" has the meaning specified in Section 11.19.

    "Rights Agreement" has the meaning specified in
Section 11.19.

    "Rule 144A" has the meaning specified in Section 2.01.

    "Sale Price" has the meaning specified in
Section 3.08.

    "SEC" means the Securities and Exchange Commission.

    "Securities" has the meaning specified in the second
paragraph of this Indenture.

    "Securities Act" means the Securities Act of 1933, as
amended.

    "Securities Custodian" means the custodian with respect to
a Global Security (as appointed by the Depositary) or any successor thereto, who shall
initially be the Trustee.

    "Shelf Registration" shall have the meaning set forth in
the Registration Rights Agreement.

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    "Special Record Date" has the meaning specified in
Section 10.04.

    "Stated Maturity," when used with respect to any Security,
means the date specified in such Security as the fixed date on which an amount equal to
the Principal Amount at Maturity of such Security is due and payable or, if the Securities
have been converted into semi-annual cash pay notes pursuant to Section 10.01, the date
specified in such Security as the fixed date on which the Restated Principal Amount
thereof or any installment of interest thereon is due and payable.

    "Subsidiary" of any Person means any corporation,
association, partnership or other business entity of which more than 50% of the total
voting power of shares of Capital Stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by (i) such Person, (ii) such Person and one or more
Subsidiaries of such Person or (iii) one or more Subsidiaries of such Person.

    "Tax Event" means that the Issuers shall have received an
opinion from independent tax counsel experienced in such matters to the effect that, on or
after January 25, 2001, as a result of (a) any amendment to, or change (including any
announced prospective change) in, the laws, rules or any regulations thereunder of the
United States or any political subdivision or taxing authority thereof or therein or
(b) any amendment to, or change in, an interpretation or application of such laws or
regulations by any legislative body, court, governmental agency or regulatory authority,
in each case which amendment or change is enacted, promulgated, issued or announced or
which interpretation is issued or announced or which action is taken, on or after January
25, 2001, there is more than an insubstantial risk that Original Issue Discount payable on
the Securities either (i) would not be deductible on a current accrual basis or
(ii) would not be deductible under any other method, in either case in whole or in
part, by the Issuers (by reason of deferral, disallowance, or otherwise) for United States
Federal income tax purposes.

    "Tax Event Date" has the meaning specified in
Section 10.01.

    "Trust Indenture Act" means the Trust Indenture Act of
1939 (15 U.S. Code Sections 77aaa-77bbbb) and the rules and regulations thereunder as in effect
on the Closing Date.

    "Time of Determination" has the meaning specified in
Section 11.01.

    "Trustee" means the party named as such in this Indenture
until a successor replaces it and, thereafter, means the successor.

    "Trust Officer" means any Vice President, Assistant Vice
President, Assistant Treasurer or any other officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.

    "Uniform Commercial Code" means the New York Uniform
Commercial Code as in effect from time to time.

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    "Wholly Owned Restricted Subsidiary" means a Restricted
Subsidiary, 100% of the outstanding Capital Stock of which (other than Capital Stock
constituting directors' qualifying shares or interests held by directors or shares or
interests required to be held by foreign nationals, in each case to the extent mandated by
applicable law) is directly or indirectly owned by an Issuer or by one or more Wholly
Owned Restricted Subsidiaries.

    SECTION 1.02.  Other Definitions.

 

  	Term 
	Defined in Section

	"Bankruptcy Law"	6.01
	"Custodian"	6.01
	"Event of Default"	6.01
	"Legal Holiday"	12.08
	"Notice of Default"	6.01
	"Paying Agent"	2.06
	"protected purchaser"	2.08
	"Registrar"	2.06
	"Sale and Leaseback Transaction"	4.05
	"Successor Company"	5.01(a)

    SECTION 1.03.  Incorporation by Reference of Trust
Indenture Act. This Indenture is subject to the mandatory provisions of the Trust
Indenture Act, which are incorporated by reference in and made a part of this Indenture.
The following Trust Indenture Act terms have the following meanings:

    "Commission" means the SEC.

    "indenture securities" means the Securities.

    "indenture security holder" means a Holder or Holder.

    "indenture to be qualified" means this Indenture.

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

    "obligor" on the indenture securities means the Issuers
and any other obligor on the indenture securities.

    All other terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by
SEC rule have the meanings assigned to them by such definitions.

    Section 1.04.  Rules of Construction. Unless the
context otherwise requires:

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

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

    (3) "or" is not exclusive;

    (4) "including" means including without limitation;

    (5) words in the singular include the plural and words in the plural
include the singular; and

    (6) the principal amount of any non-interest bearing or other
discount security at any date shall be the principal amount thereof that would be shown on
a balance sheet of the issuer dated such date prepared in accordance with GAAP.

ARTICLE 2

THE SECURITIES

    SECTION 2.01.  Form of Securities. The
Securities and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A which is hereby incorporated in and
expressly made a part of this Indenture. 

    The Securities offered and sold (i) in reliance on
Regulation S under the Securities Act ("Regulation S") or (ii) to
"qualified institutional buyers" as defined in Rule 144A ("QIBs")
in reliance on Rule 144A under the Securities Act ("Rule 144A"), each
as provided in the Purchase Agreement, shall be issued in the form of one or
more permanent global securities in definitive, fully registered form without
interest coupons with the Global Securities Legend and Restricted Securities
Legend set forth in Exhibit A hereto (each, a "Global Security"). Any
Global Security shall be deposited on behalf of the purchasers of the Securities
represented thereby with the Trustee, at its New York office, as custodian for
the Depositary, and registered in the name of the Depositary or a nominee of the
Depositary for the accounts of participants in the Depositary (and, in the case
of Securities sold in accordance with Regulation S, registered with the
Depositary for the accounts of designated agents holding on behalf of the
Euroclear System ("Euroclear") or Clearstream Banking, societe
anonyme ("Clearstream")), duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate Principal
Amount at Maturity of a Global Security may from time to time be increased or
decreased by adjustments made on the records of the Trustee and the Depositary
or its nominee a hereinafter provided.    Except as provided in Section 2.10 and 2.13, owners of beneficial
interests in Global Securities will not be entitled to receive physical delivery of
Securities in definitive form. Purchasers of Securities who are not QIBs and did not
purchase Securities sold in reliance on Regulation S under the Securities Act (referred to
herein as the "Non-Global Purchasers") will receive certificated Securities in
definitive form bearing the Restricted Securities Legend set forth in Exhibit A hereto
("Definitive Securities"). Definitive Securities will bear the Restricted
Securities Legend set forth on Exhibit A unless removed in accordance with Section
2.13(b).

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<PAGE> 10

    SECTION 2.02.  Title and Terms. The aggregate
Principal Amount at Maturity of Securities which may be authenticated and delivered under
this Indenture is limited to $700,561,000 (subject to increase by up to $105,084,000 in
the event the over-allotment option granted by the Issuers to the Initial Purchasers is
exercised in full), except for replacement Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities pursuant
to Section 2.08.

    The Securities shall be known and designated as the "Zero
Coupon Convertible Senior Notes Due 2021" of the Issuers with a Stated Maturity on
February 1, 2021.

    The Issue Price and Original Issue Discount accrued on the
Securities (or interest, if the Securities have been converted into semi-annual cash pay
notes pursuant to Section 10.01) shall be payable at the office or agency of the Company
in The City of New York maintained for such purpose and at any other office or agency
maintained by the Issuers for such purpose; provided, however, that at the option of the
Issuers payments may be made by wire transfer or by check mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register.

    The Securities shall not have the benefit of a sinking fund.

    The Securities shall not be superior in right of payment to, and
shall rank pari passu with, all other unsecured and unsubordinated indebtedness of the
Issuers.

    SECTION 2.03.  Denominations. The Securities shall
be issuable only in registered form without coupons and in denominations of $1,000
Principal Amount at Maturity and any integral multiple of $1,000 Principal Amount at
Maturity above that amount.

    SECTION 2.04.  Forms Generally. The Securities may
have such letters, notations, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required by law, securities exchange rule, the
Internal Revenue Code of 1986, as amended, and regulations thereunder, agreements to which
any Issuer is subject, if any, or usage (provided that any such notation legend or
endorsement is in a form acceptable to the Issuers). Each Security shall be dated the date
of its authentication.

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

      SECTION 2.05.  Execution, Authentication and Delivery.
One or more Officers of the Issuers shall sign the Securities on behalf of the Issuers by
manual or facsimile signature. The Issuers' seal, if any, shall be impressed,
affixed, imprinted or reproduced on the Securities and may be in facsimile form.

    If an Officer of the Issuers whose signature is on a Security no
longer holds that office at the time the Trustee authenticates the Security, the Security
shall be valid nevertheless.

    A Security shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the Security. The signature
shall be conclusive evidence 

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<PAGE> 11

that the Security has been authenticated under this Indenture. A Security shall be
dated the date of its authentication.

    The Trustee may appoint an authenticating agent reasonably
acceptable to the Issuers to authenticate the Securities. Any such appointment shall be
evidenced by an instrument signed by a Trust Officer, a copy of which shall be furnished
to the Issuers. Unless limited by the terms of such appointment, an authenticating agent
may authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Registrar, Paying Agent or agent for
service of notices and demands.

    SECTION 2.06.  Registrar, Paying Agent and Conversion
Agent. The Issuers shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange (the "Registrar"), an
office or agency where Securities may be presented for payment (the "Paying
Agent") and an office where Securities may be presented for conversion (the
"Conversion Agent"). The Registrar shall keep a register of the Securities and
of their transfer and exchange. The Issuers may have one or more co-registrars, one or
more additional paying agents and one or more additional conversion agents. The term
"Paying Agent" includes any additional paying agent, the term
"Registrar" includes any co-registrars and the term "Conversion Agent"
includes any additional conversion agents. The Issuers initially appoint the Trustee as
(i) Registrar, Paying Agent and Conversion Agent in connection with the Securities
and (ii) the Securities Custodian with respect to the Global Securities.

    The Issuers shall enter into an appropriate agency agreement with
any Registrar, Paying Agent or Conversion Agent not a party to this Indenture, which shall
incorporate the terms of the Trust Indenture Act. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Issuers shall notify the
Trustee of the name and address of any such agent. If the Issuers fail to maintain a
Registrar, Paying Agent or Conversion Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.07. The Issuers
or any of their domestically organized Wholly Owned Restricted Subsidiaries may act as
Paying Agent, Registrar or Conversion Agent.

    The Issuers may remove any Registrar, Paying Agent or Conversion
Agent upon written notice to such Registrar, Paying Agent or Conversion Agent and to the
Trustee; provided, however, that no such removal shall become effective until
(1) acceptance of an appointment by a successor as evidenced by an appropriate
agreement entered into by the Issuers and such successor Registrar, Paying Agent or
Conversion Agent, as the case may be, and delivered to the Trustee or
(2) notification to the Trustee that the Trustee shall serve as Registrar, Paying
Agent or Conversion Agent until the appointment of a successor in accordance with clause
(1) above. The Registrar, Paying Agent or Conversion Agent may resign at any time upon
written notice; provided, however, that the Trustee may resign as Registrar, Paying Agent
or Conversion Agent only if the Trustee also resigns as Trustee in accordance with
Section 7.08.

    SECTION 2.07.  Transfer and Exchange. The
Securities shall be issued in registered form and shall be transferable only upon the
surrender of a Security for registration of transfer and in compliance with this
Indenture. When a Security is presented to the Registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the 

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<PAGE> 12

  requirements of Section 8-401(a)(1) of the Uniform Commercial Code are met. When
Securities are presented to the Registrar with a request to exchange them for Securities
of other denominations and of a like aggregate Principal Amount at Maturity and tenor, the
Registrar shall make the exchange as requested if the same requirements are met. To permit
registration of transfers and exchanges, the Issuers shall execute and the Trustee shall
authenticate Securities at the Registrar's request. The Issuers may require payment
of a sum sufficient to pay all taxes, assessments or other governmental charges in
connection with any such transfer or exchange pursuant to this Section. The Issuers shall
not be required to make and the Registrar need not register transfers or exchanges of
Securities selected for redemption (except, in the case of Securities to be redeemed in
part, the portion thereof not to be redeemed) or any Securities for a period of 15 days
before a selection of Securities to be redeemed.

    Prior to the due presentation for registration of transfer or
conversion of any Security, the Issuers, the Trustee, the Paying Agent, the Registrar, and
the Conversion Agent may deem and treat the Person in whose name a Security is registered
as the absolute owner of such Security for the purpose of receiving the payment of the
principal on such Security (and interest, if the Securities have been converted into
semi-annual cash pay notes pursuant to Section 10.01) or conversion of such Security, as
the case may be, and for all other purposes whatsoever, whether or not such Security is
overdue, and none of the Issuers, the Trustee, the Paying Agent, the Registrar or the
Conversion Agent shall be affected by notice to the contrary.

    Any Holder of a Global Security shall, by acceptance of such Global
Security, agree that transfers of beneficial interest in such Global Security may be
effected only through a book-entry system maintained by (i) the Holder of such Global
Security (or its agent) or (ii) any Holder of a beneficial interest in such Global
Security, and that ownership of a beneficial interest in such Global Security shall be
required to be reflected in a book entry.

    All Securities issued upon any transfer or exchange pursuant to the
terms of this Indenture will evidence the same debt and will be entitled to the same
benefits under this Indenture as the Securities surrendered upon such transfer or
exchange.

    SECTION 2.08.  Replacement Securities. If a
mutilated Security is surrendered to the Registrar or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the Issuers shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Holder
(i) satisfies the Issuers or the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking, and the Registrar does not
register a transfer prior to receiving such notification, (ii) requests the Issuers
or the Trustee to issue a new replacement Security, prior to the Security being acquired
by a protected purchaser as defined in Section 8-303 of the Uniform Commercial Code
(a "protected purchaser") and (iii) satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Issuers, such Holder shall
furnish an indemnity bond satisfactory to the Trustee to protect the Issuers, the Trustee,
the Paying Agent and the Registrar from any loss that any of them may suffer if a Security
is replaced. The Issuers and the Trustee may charge the Holder for the expenses they incur
in replacing a Security. In the event any such mutilated, lost, destroyed or wrongfully
taken Security has become or is about to become due and payable or has been called for 

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<PAGE> 13

redemption in full, the Issuers in their discretion may pay such Security instead of
issuing a new Security in replacement thereof.

    Every replacement Security is an additional obligation of the
Issuers.

    The provisions of this Section 2.08 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, lost, destroyed or wrongfully taken Securities.

    SECTION 2.09.  Outstanding Securities. Securities
outstanding at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in this Section
as not outstanding. Subject to Section 12.06, a Security does not cease to be
outstanding because an Issuer or an Affiliate of an Issuer holds the Security.

    If a Security is replaced pursuant to Section 2.08, the
Security so replaced ceases to be outstanding unless and until the Trustee and the Issuers
receive proof satisfactory to them that the replaced Security is held by a protected
purchaser.

    If the Paying Agent segregates and holds in trust, in accordance
with this Indenture, at Maturity, money sufficient to pay all amounts payable on that date
with respect to the Securities (or portions thereof) to be redeemed or maturing, as the
case may be, then on and after that date, such Securities (or portions thereof) shall
cease to be outstanding and Original Issue Discount (or interest, if the Securities have
been converted into semi-annual cash pay notes pursuant to Section 10.01) on them shall
cease to accrue.

    SECTION 2.10.  Temporary Securities; Exchange of Global
Security for Definitive Securities. 

    (a) In the event that Definitive Securities are to be issued under
the terms of this Indenture, until such Definitive Securities are ready for delivery, the
Issuers may prepare and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of Definitive Securities but may have
variations that the Issuers consider appropriate for temporary Securities. Without
unreasonable delay, the Issuers shall prepare and the Trustee shall authenticate
Definitive Securities and deliver them in exchange for temporary Securities upon surrender
of such temporary Securities at the office or agency of the Issuers, without charge to the
Holder.

    (b) Except for transfers made in accordance with Section 2.13(a), a
Global Security deposited with the Depositary or with the Trustee as custodian for the
Depositary pursuant to Section 2.11 shall be transferred to the beneficial owners thereof
in the form of Definitive Securities only if such transfer complies with Section 2.13 and
(i) the Depositary notifies the Issuers that it is unwilling or unable to continue as
Depositary for such Global Security or if at any time such Depositary ceases to be a
"clearing agency" registered under the Exchange Act and a successor Depositary
is not appointed by the Issuers within 90 days of such notice, or (ii) an Event of Default
has occurred and is continuing.

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<PAGE> 14

    (c) Any Global Security or interest therein that is transferable to
the beneficial owners thereof in the form of Definitive Securities shall, if held by the
Depository, be surrendered by the Depositary to the Trustee, without charge, and the
Trustee shall authenticate and deliver, upon such transfer of each portion of such Global
Security, an equal aggregate Principal Amount at Maturity of Securities of authorized
denominations in the form of Definitive Securities. Any portion of a Global Security
transferred pursuant to this Section shall be executed, authenticated and delivered only
in denominations of $1,000 Principal Amount (or Restated Principal Amount if Securities
are converted into semi-annual cash pay notes pursuant to Section 10.01) and any integral
multiple thereof and registered in such names as the Depositary shall direct. Any
Securities in the form of Definitive Securities delivered in exchange for an interest in
the Global Security shall, except as otherwise provided by Section 2.13(b), bear the
Restricted Securities Legend set forth in Exhibit A hereto.

    (d) Prior to any transfer pursuant to Section 2.10(b), the
registered holder of a Global Security may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through Agent Members,
to take any action which a holder is entitled to take under this Indenture or the
Securities.

    The Issuers will make available to the Trustee a reasonable supply
of Definitive Securities.

    SECTION 2.11.  Book-entry Provisions for Global
Securities. This Section 2.11 shall apply only to a Global Security deposited with or
on behalf of the Depositary. 

      The Issuers shall execute and the Trustee shall, in accordance with
this Section 2.11 and the written order of the Issuers, authenticate and deliver initially
one or more Global Securities that (i) shall be registered in the name of Cede & Co.
or other nominee of such Depositary and (ii) shall be delivered by the Trustee to such
Depositary or pursuant to such Depositary's instructions or held by the Trustee as
custodian for the Depositary pursuant to a FAST Balance Certificate Agreement between the
Depositary and the Trustee.

    Members of, or participants in, the Depositary ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or by the Trustee as the custodian of the
Depositary or under such Global Security, and the Depositary may be treated by the
Issuers, the Trustee and any agent of the Issuers or the Trustee as the absolute owner of
such Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Issuers, the Trustee or any agent of the Issuers or the Trustee
from giving effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Agent Members, the operation
of customary practices of such Depositary governing the exercise of the rights of a holder
of a beneficial interest in any Global Security.

    The provisions of the "Operating Procedures of the Euroclear
System" and "Terms and Conditions Governing Use of Euroclear" and the
"Management Regulations and Instructions to Participants" of Clearstream shall
be applicable to interests in any Global Securities that are held by participants through
Euroclear or Clearstream. The Trustee shall have 

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<PAGE> 15

no obligation to notify holders of any such procedures or to monitor or enforce
compliance with the same.

    SECTION 2.12.  Cancellation. The Issuers at any
time may deliver Securities to the Trustee for cancellation. The Registrar, the Paying
Agent and the Conversion Agent shall forward to the Trustee any Securities surrendered to
them for registration of transfer, exchange, payment or conversion. The Trustee and no one
else shall cancel all Securities surrendered for registration of transfer, exchange,
payment, purchase, repurchase, redemption, conversion (pursuant to Article 11 hereof) or
cancellation and dispose of such canceled Securities in its customary manner. The Issuers
may not issue new Securities to replace Securities they have redeemed, paid in full or
delivered to the Trustee for cancellation. The Trustee shall not authenticate Securities
in place of canceled Securities other than pursuant to the terms of this Indenture.

    SECTION 2.13.  Special Transfer Provisions. 

    (a) Notwithstanding any provision to the contrary herein, so long as
a Global Security remains outstanding and is held by or on behalf of the Depositary,
transfers of a Global Security, in whole or in part, or of any beneficial interest
therein, shall only be made in accordance with Section 2.11 and 2.10 and this Section
2.13(a); provided, however, that beneficial interests in a Global Security may be
transferred to Persons who take delivery thereof in the form of a beneficial interest in
the Global Security in accordance with the transfer restrictions set forth under the
heading "Notice to Investors" in the Offering Memorandum and, if applicable, in
Exhibit C.

      Except for transfers or exchanges made in accordance with paragraphs
(1) through (4) of this Section 2.13(a) and Section 2.10, transfers of a Global Security
shall be limited to transfers of such Global Security in whole, but not in part, to
nominees of the Depositary or to a successor of the Depositary or such successor's
nominee.

      (1) GLOBAL SECURITY TO DEFINITIVE SECURITY. If an owner of a
  beneficial interest in a Global Security deposited with the Depositary or with the Trustee
  as custodian for the Depositary wishes at any time to transfer its interest in such Global
  Security to a Person who is required to take delivery thereof in the form of a Definitive
  Security, such owner may, subject to the rules and procedures of Euroclear or Clearstream,
  if applicable, and the Depositary, cause the exchange of such interest for one or more
  Definitive Securities of any authorized denomination or denominations and of the same
  aggregate Principal Amount at Maturity. Upon receipt by the Registrar of (A) instructions
  from Euroclear or Clearstream, if applicable, and the Depositary directing the Trustee to
  authenticate and deliver one or more Definitive Securities of the same aggregate Principal
  Amount at Maturity as the beneficial interest in the Global Security to be exchanged, such
  instructions to contain the name or names of the designated transferee or transferees, the
  authorized denomination or denominations of the Definitive Securities to be so issued and
  appropriate delivery instructions, (B) a certificate substantially in the form of Exhibit
  B attached hereto given by the owner of such beneficial interest, (C) a certificate
  substantially in the form of Exhibit C attached hereto given by the Person acquiring the
  Definitive Securities for which such interest is

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<PAGE> 16

  being exchanged, to the effect set forth therein, and (D) such other certifications or
  other information and, in the case of transfers pursuant to Rule 144 under the Securities
  Act, legal opinions as the Issuers may reasonably require to confirm that such transfer is
  being made pursuant to an exemption from, or in a transaction not subject to, the
  registration requirements of the Securities Act, then Euroclear or Clearstream, if
  applicable, or the Registrar, as the case may be, will instruct the Depositary to reduce
  or cause to be reduced such Global Security by the aggregate Principal Amount at Maturity
  of the beneficial interest therein to be exchanged and to debit or cause to be debited
  from the account of the Person making such transfer the beneficial interest in the Global
  Security that is being transferred, and concurrently with such reduction and debit the
  Company shall execute, and the Trustee shall authenticate and deliver, one or more
  Definitive Securities of the same aggregate Principal Amount at Maturity in accordance
  with the instructions referred to above.

      (2) DEFINITIVE SECURITY TO DEFINITIVE SECURITY. If a holder of a
  Definitive Security wishes at any time to transfer such Definitive Security (or portion
  thereof) to a Person who is required to take delivery thereof in the form of a Definitive
  Security, such holder may, subject to the restrictions on transfer set forth herein and in
  such Definitive Security, cause the transfer of such Definitive Security (or any portion
  thereof in a Principal Amount at Maturity equal to an authorized denomination) to such
  transferee. Upon receipt by the Registrar of (A) such Definitive Security, duly endorsed
  as provided herein, (B) instructions from such holder directing the Trustee to
  authenticate and deliver one or more Definitive Securities of the same aggregate Principal
  Amount at Maturity as the Definitive Security (or portion thereof) to be transferred, such
  instructions to contain the name or names of the designated transferee or transferees, the
  authorized denomination or denominations of the Definitive Securities to be so issued and
  appropriate delivery instructions, (C) a certificate from the holder of the Definitive
  Security to be transferred in substantially the form of Exhibit B attached hereto, (D) a
  certificate substantially in the form of Exhibit C attached hereto given by the Person
  acquiring the Definitive Securities (or portion thereof), to the effect set forth therein,
  and (E) such other certifications or other information and, in the case of transfers
  pursuant to Rule 144 under the Securities Act, legal opinions as the Issuers may
  reasonably require to confirm that such transfer is being made pursuant to an exemption
  from, or in a transaction not subject to, the registration requirements of the Securities
  Act, then the Registrar, shall cancel or cause to be canceled such Definitive Security and
  concurrently therewith, the Issuers shall execute, and the Trustee shall authenticate and
  deliver, one or more Definitive Securities in the appropriate aggregate Principal Amount
  at Maturity, in accordance with the instructions referred to above and, if only a portion
  of a Definitive Security is transferred as aforesaid, concurrently therewith the Issuers
  shall execute and the Trustee shall authenticate and deliver to the transferor a
  Definitive Security in a Principal Amount at Maturity equal to the Principal Amount at
  Maturity which has not been transferred. A holder of a Definitive Security may at any time
  exchange such Definitive Security for one or more Definitive Securities of other
  authorized denominations and in the same aggregate Principal Amount at Maturity and
  registered in the same name by delivering such Definitive Security, duly endorsed as
  provided herein, to the Trustee together with instructions directing the Trustee to
  authenticate and deliver one or more Definitive Securities in the same aggregate Principal
  Amount at Maturity

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<PAGE> 17

  and registered in the same name as the Definitive Security to be exchanged, and the
  Registrar thereupon shall cancel or caused to be canceled such Definitive Security and
  concurrently therewith the Issuers shall execute and Trustee shall authenticate and
  deliver, one or more Definitive Securities in the same aggregate Principal Amount at
  Maturity and registered in the same name as the Definitive Security being exchanged.

      (3) DEFINITIVE SECURITY TO GLOBAL SECURITY. If a holder of a
  Definitive Security wishes at any time to transfer such Definitive Security (or portion
  thereof) to a Person who is not required to take delivery thereof in the form of a
  Definitive Security, such holder shall, subject to the restrictions on transfer set forth
  herein and in such Definitive Security and the rules of the Depositary and Euroclear and
  Clearstream, as applicable, cause the exchange of such Definitive Security for a
  beneficial interest in the Global Security. Upon receipt by the Registrar of (A) such
  Definitive Security, duly endorsed as provided herein, (B) instructions from such holder
  directing the Trustee to increase the aggregate Principal Amount at Maturity of the Global
  Security deposited with the Depository or with the Trustee as custodian for the Depository
  by the same aggregate Principal Amount at Maturity as the Definitive Security to be
  exchanged, such instructions to contain the name or names of an Agent Member that is
  designated as the transferee, the account of such Agent Member and other appropriate
  delivery instructions, (C) the assignment form on the back of the Definitive Security
  completed in full (certifying in effect that such transfer complies with Rule 144A or
  Regulation S under the Securities Act or is otherwise being made to a Person who is not
  required to take delivery of the Securities in the form of a Definitive Security) and (D)
  such other certifications or other information and, in the case of transfers pursuant to
  Rule 144 under the Securities Act, legal opinions as the Issuers may reasonably require to
  confirm that such transfer is being made pursuant to an exemption from, or in a
  transaction not subject to, the registration requirements of the Securities Act, then the
  Trustee shall cancel or cause to be canceled such Definitive Security and concurrently
  therewith shall increase the aggregate Principal Amount at Maturity of the Global Security
  by the same aggregate principal amount as the Definitive Security canceled.

      (4) OTHER EXCHANGES. In the event that a Global Security is
  exchanged for Securities in definitive registered form pursuant to Section 2.10 prior to
  the effectiveness of a Shelf Registration with respect to such Securities, such Securities
  may be exchanged only in accordance with such procedures as are substantially consistent
  with the provisions of clauses (2) and (3) above (including the certification requirements
  intended to ensure that such transfers comply with Rule 144A or Regulation S under the
  Securities Act, as the case may be) and such other procedures as may from time to time be
  adopted by the Issuers.

    (b) Except in connection with a Shelf Registration contemplated by
and in accordance with the terms of the Registration Rights Agreement, if Securities are
issued upon the registration of transfer, exchange or replacement of Securities bearing a
Restricted Securities Legend, or if a request is made to remove such a Restrictive
Securities Legend on Securities, the Securities so issued shall bear the Restricted
Securities Legend, or a Restricted Securities Legend shall not be removed, as the case may
be, unless there is delivered to the Issuers such satisfactory

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<PAGE> 18

evidence, which, in the case of a transfer made pursuant to Rule 144 under the
Securities Act, may include an opinion of counsel licensed to practice law in the State of
New York, as may be reasonably required by the Issuers, that neither the legend nor the
restrictions on transfer set forth therein are required to ensure that transfers thereof
comply with the provisions of Rule 144A, Rule 144 or Regulation S under the Securities Act
or that such Securities are not "restricted" within the meaning of Rule 144
under the Securities Act. Upon provision to the Issuers of such satisfactory evidence, the
Trustee, at the written direction of the Issuers, shall authenticate and deliver
Securities that do not bear the legend. The Issuers shall not otherwise be entitled to
require the delivery of a legal opinion in connection with any transfer or exchange of
Securities.

    (c) Neither the Trustee nor any Agent shall have any responsibility
for any actions taken or not taken by the Depositary.

      (d) The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed under this
Indenture or under applicable law with respect to any transfer of any interest in any
Securities (including any transfers between or among Depositary's participants or
beneficial owners of interests in any Global Security) other than to require delivery of
such certificates and other documentation as is expressly required by, and to do so if and
when expressly required by, the terms of this Indenture and to examine the same to
determine substantial compliance as to form with the express requirements hereof.

    SECTION 2.14.  CUSIP and ISIN Numbers. The Issuers
in issuing the Securities may use "CUSIP" and "ISIN" numbers (if then
generally in) and, if so, the Trustee shall use "CUSIP" and "ISIN"
numbers in notices of redemption as a convenience to Holders; provided, however, that any
such notice may state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the Securities
and any such redemption shall not be affected by any defect in or omission of such
numbers. The Issuers shall promptly notify the Trustee of any change in the
"CUSIP" or "ISIN" numbers.

      SECTION 2.15.  Legend on Restricted Securities.
During the period beginning on February 1, 2001 and ending on the date two years from such
date, any Security including any Security issued in exchange therefor or in lieu thereof,
shall be deemed a "Restricted Security" and shall be subject to the restrictions
on transfer provided in the legends set forth on the face of the form of Security in
Exhibit A; provided, however, that the term "Restricted Security" shall not
include any Securities as to which restrictions have been terminated in accordance with
the terms of this Indenture. All Securities shall bear the applicable legends set forth on
the face of the form of Security in Exhibit A. Except as provided in Section 2.13, the
Trustee shall not issue any unlegended Security until it has received an Officers'
Certificate from the Issuers directing it to do so.

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ARTICLE 3

REDEMPTION

    SECTION 3.01.  Notices to Trustee. Prior to
February 1, 2004, Securities will not be redeemable. Beginning on February 1, 2004, the
Issuers, at their option, may elect to redeem Securities in accordance with the provisions
thereof and of the Indenture. If the Issuers elect to redeem Securities, they shall notify
the Trustee in writing of the Redemption Date, the Principal Amount at Maturity of
Securities to be redeemed and the Redemption Price.

      The Issuers shall give each notice to the Trustee provided for in
this Section at least 45 days before the Redemption Date unless the Trustee consents to a
shorter period. Such notice shall be accompanied by an Officers' Certificate and an
Opinion of Counsel from the Issuers to the effect that such redemption will comply with
the conditions herein. If fewer than all the Securities are to be redeemed, the record
date relating to such redemption shall be selected by the Issuers and given to the
Trustee, which record date shall be not fewer than 15 days after the date of notice to the
Trustee. Any such notice may be canceled at any time prior to notice of such redemption
being mailed to any Holder and shall thereby be void and of no effect.

    SECTION 3.02.  Selection of Securities To Be Redeemed.
If fewer than all the Securities are to be redeemed, the Trustee shall select the
Securities to be redeemed pro rata or by lot or by a method that complies with applicable
legal and securities exchange requirements, if any, and that the Trustee in its sole
discretion shall deem to be fair and appropriate and in accordance with methods generally
used at the time of selection by fiduciaries in similar circumstances. The Trustee shall
make the selection at least 30 days but no more than 60 days before the Redemption Date
from outstanding Securities not previously called for redemption. Securities and portions
thereof that the Trustee selects shall be in Principal Amounts at Maturity of $1,000 or
integral multiples of $1,000. Provisions of this Indenture that apply to Securities called
for redemption also apply to portions of Securities called for redemption. The Trustee
shall promptly notify the Issuers of the Securities (or portions thereof) to be redeemed.

    If any Security selected for partial redemption is converted in part
after such selection, the converted portion of such Security shall be deemed (so far as
may be) to be the portion to be selected for redemption. The Securities (or portions
thereof) so selected shall be deemed duly selected for redemption for all purposes hereof,
notwithstanding that any such Security is converted in whole or in part before the mailing
of the notice of redemption. Upon any redemption of less than all the Securities, the
Issuers and the Trustee may, solely for the purposes of this Section 3.02, treat as
outstanding any Securities surrendered for conversion during the period 15 days next
preceding the mailing of a notice of redemption and need not treat as outstanding any
Security authenticated and delivered during such period in exchange for the unconverted
portion of any Security converted in part during such period. 

      SECTION 3.03.  Notice of Redemption. At least 30
days but not more than 60 days before a date for redemption of Securities, the Issuers
shall mail a notice of redemption by first-class mail to each Holder of Securities to be
redeemed at such Holder's registered address.

    The notice shall identify the Securities to be redeemed and shall
state:

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<PAGE> 20

    (1) the Redemption Date;

    (2) the Redemption Price;

    (3) the Conversion Rate applicable on the Redemption Date;

    (4) the name and address of the Paying Agent;

    (5) that Securities called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price;

    (6) that Securities called for redemption may be converted at any
time before the close of business on the Business Day immediately preceding the Redemption
Date;

    (7) that Holders who want to convert Securities must satisfy the
requirements set forth therein and in this Indenture;

    (8) if fewer than all the outstanding Securities are to be redeemed,
the certificate numbers and Principal Amounts at Maturity of the particular Securities to
be redeemed;

    (9) that, unless the Issuers default in making payment of such
Redemption Price or the Paying Agent is prohibited from making such payment pursuant to
the terms of this Indenture, Original Issue Discount on Securities (or portion thereof)
called for redemption (or interest, if the Securities have been converted into semi-annual
cash pay notes pursuant to Section 10.01) ceases to accrue on and after the Redemption
Date;

    (10) the CUSIP or ISIN number, if any, printed on the Securities
being redeemed; and

    (11) that no representation is made as to the correctness or
accuracy of the CUSIP or ISIN number, if any, listed in such notice or printed on the
Securities.

      At the Issuers' request, the Trustee shall give the notice of
redemption as provided to it in the Issuers' name and at the Issuers' expense.
In such event, the Issuers shall provide the Trustee with the information required by this
Section.

    SECTION 3.04.  Effect of Notice of Redemption. Once
notice of redemption is mailed, Securities called for redemption become due and payable on
the Redemption Date and at the Redemption Price stated in the notice except for Securities
which are converted in accordance with the terms of this Indenture. Upon surrender to the
Paying Agent, such Securities shall be paid at the Redemption Price stated in the notice;
provided, however, that if Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01 and the Redemption Date is after a Regular Record Date and on or
prior to the Interest Payment Date, the accrued interest shall be payable to the Holder of
the redeemed semi-annual cash pay notes registered on the relevant Regular Record Date. 

    Failure to give notice or any defect in the notice to any Holder
shall not affect the validity of the notice to any other Holder.

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<PAGE> 21

    SECTION 3.05.  Deposit of Redemption Price. Prior
to 11:00 a.m. (New York City time) on the Redemption Date, the Issuers shall deposit with
the Paying Agent (or, if any Issuer or a Subsidiary of any of the Issuers is the Paying
Agent, shall segregate and hold in trust) U.S. dollars in immediately available funds
sufficient to pay the Redemption Price of all Securities to be redeemed on that date,
other than Securities or portions of Securities called for redemption that have been
delivered by the Issuers to the Trustee for cancellation or Securities that have been
converted. The Paying Agent shall as promptly as practicable return to the Issuers any
money, not required for that purpose because of conversion of Securities pursuant to
Article 11. If such money is then held by the Issuers in trust and is not required for
such purpose it shall be discharged from such trust. The Issuers at any time may require a
Paying Agent to pay all money held by it to the Trustee and to account for any funds
disbursed by the Paying Agent. Upon complying with this Section, the Paying Agent shall
have no further liability for the money delivered to the Trustee.

      SECTION 3.06.  Securities Redeemed in Part. Upon
surrender of a Security that is redeemed in part, the Issuers shall execute and the
Trustee shall authenticate for the Holder (at the Issuers' expense) a new Security
equal in Principal Amount at Maturity to the unredeemed portion of the Security
surrendered.

      SECTION 3.07.  Conversion Arrangement on Call for
Redemption. In connection with any redemption of Securities, the Issuers may arrange
for the purchase and conversion of any Securities called for redemption by an agreement
with one or more investment banks or other purchasers to purchase such Securities by
paying to the Trustee in trust for the Holders, on or prior to 11:00 a.m. (New York City
time) on the Redemption Date, an amount that, together with any amounts deposited with the
Trustee by the Issuers for the redemption of such Securities, is not less than the
Redemption Price of such Securities. Notwithstanding anything to the contrary contained in
this Article 3, the obligation of the Issuers to pay the Redemption Price of such
Securities shall be deemed to be satisfied and discharged to the extent such amount is so
paid by such purchasers. If such an agreement is entered into, any Securities not duly
surrendered for conversion by the Holders thereof may, at the option of the Issuers, be
deemed, to the fullest extent permitted by law, acquired by such purchasers from such
Holders and (notwithstanding anything to the contrary contained in Article 11) surrendered
by such purchasers for conversion, all as of immediately prior to the close of business on
the Business Day prior to the Redemption Date, subject to payment of the above amount as
aforesaid. The Trustee shall hold and pay to the Holders whose Securities are selected for
redemption any such amount paid to it for purchase and conversion in the same manner as it
would moneys deposited with it by the Issuers for the redemption of Securities. Without
the Trustee's prior written consent, no arrangement between the Issuers and such
purchasers for the purchase and conversion of any Securities shall increase or otherwise
affect any of the powers, duties, responsibilities or obligations of the Trustee as set
forth in this Indenture, and the Issuers agree to indemnify the Trustee from, and hold it
harmless against, any loss, liability or expense arising out of or in connection with any
such arrangement for the purchase and conversion of any Securities between the Issuers and
such purchasers, including the costs and expenses incurred by the Trustee in the defense
of any claim or liability arising out of or in connection with the exercise or performance
of any of its powers, duties, responsibilities or obligations under this Indenture;
provided that the Issuers shall not be obligated to indemnify the Trustee for any loss,
liability or expenses arising out of the Trustee's gross negligence or willful
misconduct.

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<PAGE> 22

    SECTION 3.08.  Purchase of Securities at Option of the
Holder.

    (a) General. Securities shall be purchased by the Issuers
pursuant to the terms thereof as of February 1, 2004, February 1, 2009 and February 1,
2014 (each, a "Purchase Date"), at the purchase price of $554.41 per $1,000 of
Principal Amount at Maturity as of February 1, 2004, $659.44 per $1,000 of Principal
Amount at Maturity as of February 1, 2009 and $784.36 per $1,000 of Principal Amount at
Maturity as of February 1, 2014 (each, a "Purchase Price", as applicable), at
the option of the Holder thereof, upon:

      (1) delivery to the Paying Agent by the Holder of a written notice
  of purchase (a "Purchase Notice"), substantially in the form of Exhibit D
  hereto, at any time from the opening of business on the date that is 30 Business Days
  prior to a Purchase Date until the close of business on such Purchase Date stating:

  
        (A) the certificate numbers of the Securities which the Holder will
    deliver to be purchased,

  

  
        (B) the portion of the Principal Amount at Maturity of the Security
    which the Holder will deliver to be purchased, which portion must be in a Principal Amount
    at Maturity of $1,000 or integral multiples thereof,

  

  
        (C) that such Security shall be purchased as of the Purchase Date
    pursuant to the terms and conditions specified in the Securities and in this Indenture,
    and

  

  
        (D) in the event the Issuers elect, pursuant to
    Section 3.08(b), to pay the Purchase Price to be paid as of such Purchase Date, in
    whole or in part, in shares of Common Stock but such portion of the Purchase Price shall
    ultimately be payable to such Holder entirely in cash because any of the conditions to
    payment of the Purchase Price in Common Stock is not satisfied prior to the close of
    business on such Purchase Date, as set forth in Section 3.08(d), whether such Holder
    elects (i) to withdraw such Purchase Notice as to some or all of the Securities to
    which such Purchase Notice relates (stating the Principal Amount at Maturity and
    certificate numbers of the Securities as to which such withdrawal shall relate), or
    (ii) to receive cash in respect of the entire Purchase Price for all Securities (or
    portions thereof) to which such Purchase Notice relates; and

  

  (2) delivery of such Security to the Paying Agent for cancellation prior to, on or
  after the Purchase Date (together with all necessary endorsements) at the offices of the
  Paying Agent, such delivery being a condition to receipt by the Holder of the Purchase
  Price therefor; provided, however, that such Purchase Price shall be so paid pursuant to
  this Section 3.08 only if the Security so delivered to the Paying Agent shall conform
  in all respects to the description thereof in the related Purchase Notice;

provided, however, that if Securities have been converted to semi-annual cash pay notes
pursuant to Section 10.01, the Purchase Price shall be equal to the Restated Principal
Amount plus accrued and unpaid interest from the date of such conversion to the Purchase
Date.

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<PAGE> 23

      If a Holder, in such Holder's Purchase Notice, fails to
indicate such Holder's choice with respect to the election set forth in clause (D) of
Section 3.08(a)(1), such Holder shall be deemed to have elected to receive cash in
respect of the Purchase Price for all Securities subject to such Purchase Notice in the
circumstances set forth in such clause (D).

    The Issuers shall purchase from the Holder thereof, pursuant to this
Section 3.08, a portion of a Security if the Principal Amount at Maturity of such
portion is $1,000 or an integral multiple of $1,000 if so requested by the Holder.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to
the purchase of such portion of such Security.

    Any purchase by the Issuers contemplated pursuant to the provisions
of this Section 3.08 shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of the Purchase Date and the time of
delivery of the Security.

    Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent a Purchase Notice contemplated by this Section 3.08(a)
shall have the right to withdraw such Purchase Notice at any time prior to the close of
business on the Purchase Date by delivery of a written notice of withdrawal to the Paying
Agent in accordance with Section 3.10.

    The Paying Agent shall promptly notify the Issuers of the receipt by
it of any Purchase Notice or written notice of withdrawal thereof.

      (b) Issuers' Right to Elect Manner of Payment of Purchase
Price. The Securities to be purchased pursuant to Section 3.08(a) may be paid
for, at the election of the Issuers, in cash or in shares of Common Stock valued at 95% of
the Market Price, or in any combination of cash and Common Stock, subject to the
conditions set forth in Sections 3.08(c) and (d). The Issuers shall designate, in the
Issuers' Notice delivered pursuant to Section 3.08(e), whether the Issuers will
purchase the Securities for cash or Common Stock, or, if a combination thereof, the
percentages of the Purchase Price of Securities in respect of which it will pay in cash or
Common Stock; provided that the Issuers will pay cash for fractional interests in Common
Stock. For purposes of determining the existence of potential fractional interests, all
Securities subject to purchase by the Issuers held by a Holder shall be considered
together (no matter how many separate certificates are to be presented). Each Holder whose
Securities are purchased pursuant to this Section 3.08 shall receive the same
percentage of cash or Common Stock in payment of the Purchase Price for such Securities,
except (i) as provided in Section 3.08(d) with regard to the payment of cash in lieu
of fractional shares of Common Stock and (ii) in the event that the Issuers are
unable to purchase the Securities of a Holder or Holders for Common Stock because any
necessary qualifications or registrations of the Common Stock under applicable state
securities laws cannot be obtained, the Issuers may purchase the Securities of such Holder
or Holders for cash. The Issuers may not change their election with respect to the
consideration (or components or percentages of components thereof) to be paid once the
Issuers have given the Issuers' Notice to Holders except pursuant to this
Section 3.08(b) or pursuant to Section 3.08(d) in the event of a failure to
satisfy, prior to the close of business on the Purchase Date, any condition to the payment
of the Purchase Price, in whole or in part, in Common Stock.

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<PAGE> 24

    If the Issuers elect to pay all or part of the Purchase Price in
Common Stock, the portion of accrued Original Issue Discount (or interest, if the
Securities have been converted into semi-annual cash pay notes pursuant to Section 10.01)
attributable to the period from the Issue Date (or, if the Issuers have exercised the
option to convert the Securities into semi-annual cash pay notes pursuant to Section
10.01, the later of (x) the date of such exercise, and (y) the date on which
interest was last paid) through the Purchase Date with respect to the surrendered Security
shall not be cancelled, extinguished or forfeited, but rather shall be deemed to be paid
in full to the Holder thereof through the delivery of the Common Stock (together with a
cash payment, if any, in lieu of fractional shares) and cash, if any, in exchange for the
Security being purchased pursuant to the terms hereof; and such cash and the fair market
value of such shares of Common Stock (together with any such cash payment in lieu of
fractional shares) shall be treated as delivered pro rata, to the extent thereof, first in
exchange for Original Issue Discount (or interest, if the Securities have been converted
into semi-annual cash pay notes pursuant to Section 10.01) accrued to the Purchase Date,
and the balance, if any, of such cash and the fair market value of such Common Stock (and
any such cash payment) shall be treated as delivered in exchange for the Issue Price of
the Security being purchased pursuant to the provisions hereof.

      At least three Business Days before the Issuers' Notice Date,
the Company shall deliver an Officers' Certificate to the Trustee specifying:

  (i)     the manner of payment selected by the Issuers,

  (ii)     the information required by Section 3.08(e),

  (iii)     if the Issuers elect to pay the Purchase Price, or a
  specified percentage thereof, in Common Stock, that the conditions to such manner of
  payment set forth in Section 3.08(d) have been or will be complied with, and

  (iv)     whether the Issuers desire the Trustee to give the
  Issuers' Notice required by Section 3.08(e).

    (c) Purchase with Cash. On each Purchase Date, at the option
of the Issuers, the Purchase Price of Securities in respect of which a Purchase Notice
pursuant to Section 3.08(a) has been given, or a specified percentage thereof, may be
paid by the Issuers with cash equal to the aggregate Purchase Price of such Securities. 

    (d) Payment by Issuance of Common Stock. On each Purchase
Date, at the option of the Issuers, the Purchase Price of Securities in respect of which a
Purchase Notice pursuant to Section 3.08(a) has been given, or a specified percentage
thereof, may be paid by the Company by the issuance of a number of shares of Common Stock
equal to the quotient obtained by dividing (i) the amount of cash to which the
Holders would have been entitled had the Issuers elected to pay all or such specified
percentage, as the case may be, of the Purchase Price of such Securities in cash by
(ii) 0.95 times the Market Price of a share of Common Stock, subject to the next
succeeding paragraph.

    The Company will not issue a fractional share of Common Stock in
payment of the Purchase Price. Instead the Issuers will pay cash for the current market
value of the fractional share. The current market value of a fraction of a share shall be
determined, to the nearest 

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<PAGE> 25

1/1,000th of a share, by multiplying the Market Price by such fraction and rounding the
product to the nearest whole cent. It is understood that if a Holder elects to have more
than one Security purchased, the number of shares of Common Stock shall be based on the
aggregate amount of Securities to be purchased.

      The Issuers' right to exercise their election to purchase the
Securities pursuant to Section 3.08 through the issuance by the Company of shares of
Common Stock shall be conditioned upon:

  (i)     the Issuers' not having given their Issuers'
  Notice of an election to pay entirely in cash and their giving of timely Issuers'
  Notice of election to purchase all or a specified percentage of the Securities with Common
  Stock as provided herein;

  (ii)     the registration of the shares of Common Stock to be
  issued in respect of the payment of the Purchase Price under the Securities Act or the
  Exchange Act, in each case if required;

  (iii)     any necessary qualification or registration under
  applicable state securities laws or the availability of an exemption from such
  qualification and registration; and

  (iv)     the receipt by the Trustee of an Officers'
  Certificate and an Opinion of Counsel, each stating that (A) the terms of the
  issuance of the Common Stock are in conformity with this Indenture and (B) the shares
  of Common Stock to be issued by the Company in payment of the Purchase Price in respect of
  Securities have been duly authorized and, when issued and delivered pursuant to the terms
  of this Indenture in payment of the Purchase Price in respect of the Securities, will be
  validly issued, fully paid and non-assessable and, to the best of such counsel's
  knowledge, free from preemptive rights, and, in the case of such Officers'
  Certificate, stating that conditions (i), (ii) and (iii) above and the condition set forth
  in the second succeeding sentence have been satisfied and, in the case of such Opinion of
  Counsel, stating that condition (ii) above has been satisfied.

      Such Officers' Certificate shall also set forth the number of
shares of Common Stock to be issued for each $1,000 Principal Amount at Maturity of
Securities and the Sale Price of a share of Common Stock on each trading day during the
period during which the Market Price is calculated. The Issuers may pay the Purchase Price
(or any portion thereof) in Common Stock only if the information necessary to calculate
the Market Price is published in a daily newspaper of national circulation. If the
foregoing conditions are not satisfied with respect to a Holder or Holders prior to the
close of business on the Purchase Date and the Issuers have elected to purchase the
Securities pursuant to this Section 3.08 through the issuance by the Company of
shares of Common Stock, the Issuers shall pay the entire Purchase Price of the Securities
of such Holder or Holders in cash.

    The "Market Price" means the average of the Sale Prices of
the Common Stock for the 20 trading day period ending on the third Business Day (if the
third Business Day prior to the applicable Purchase Date is a trading day, or if not, then
on the last trading day prior to such third Business Day) prior to the applicable Purchase
Date, appropriately adjusted to take into 

25

<PAGE> 26

account the occurrence, during the period commencing on the first of such trading days
during such 20 trading day period and ending on such Purchase Date, of any event described
in Section 11.06, 11.07 or 11.08; subject, however, to the conditions set forth in
Sections 11.09 and 11.12.

    The "Sale Price" of the Common Stock on any date means the
closing sale price per share (or, if no closing sale price is reported, the average of the
bid and ask prices or, if more than one in either case, the average of the average bid and
average ask prices) on such date as reported in the composite transactions for the
principal United States securities exchange on which the Common Stock is traded or, if the
Common Stock is not listed on a United States national or regional securities exchange, as
reported by the National Association of Securities Dealers Automated Quotation System.

      (e) Notice of Election. The Issuers' notice of election
to pay the Purchase Price with cash or Common Stock or any combination thereof shall be
sent to the Holders (and to beneficial owners as required by applicable law) in the manner
provided herein (the "Issuers' Notice"). The Issuers' Notice shall be
sent to Holders (and to beneficial owners as required by applicable law) not less than 30
Business Days prior to such Purchase Date (the "Issuers' Notice Date"). The
Issuers' Notice shall state the manner of payment elected and shall contain the
following information:

      In the event the Issuers have elected to pay the Purchase Price (or
a specified percentage thereof) with Common Stock, the Issuers' Notice shall:

      (1) state that each Holder will receive Common Stock in respect of
  the specified percentage of the Purchase Price of the Securities held by such Holder
  (except any cash amount to be paid in lieu of fractional shares);

      (2) state that the total number of shares of Common Stock to be
  issued to Holders will be equal to the quotient obtained by dividing (i) the amount
  of cash to which the Holders would have been entitled had the Issuers elected to pay all
  or such specified percentage, as the case may be, of the Purchase Price of such Securities
  in cash by (ii) 0.95 times the Market Price of a share of Common Stock;

      (3) set forth the method of calculating the Market Price of the
  Common Stock; and

      (4) state that because the Market Price of Common Stock will be
  determined prior to the Purchase Date, Holders will bear the market risk with respect to
  the value of the Common Stock to be received from the date such Market Price is determined
  to the Purchase Date.

      In any case, each Issuers' Notice shall include a form of
Purchase Notice to be completed by a Holder and shall state:

      (1) the Purchase Price and the Conversion Rate applicable on the
  Issuers' Notice Date and any adjustment thereto;

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<PAGE> 27

      (2) the name and address of the Paying Agent and the Conversion
  Agent;

      (3) that Securities as to which a Purchase Notice has been given may
  be converted pursuant to Article 11 hereof only if the applicable Purchase Notice has been
  withdrawn in accordance with the terms of this Indenture;

      (4) that Securities must be surrendered to the Paying Agent for
  cancellation to collect payment;

      (5) that the Purchase Price for any security as to which a Purchase
  Notice has been given and not withdrawn will be paid promptly following the later of the
  Purchase Date and the time of surrender of such Security as described in (4);

      (6) the procedures the Holder must follow to exercise rights under
  Section 3.08 and a brief description of those rights;

      (7) briefly, the conversion rights of the Securities;

      (8) the procedures for withdrawing a Purchase Notice (including,
  without limitation, for a conditional withdrawal pursuant to the terms of
  Section 3.08(a)(1)(D) or Section 3.10);

      (9) that, unless the Issuers default in making payment of such
  Purchase Price, Original Issue Discount on Securities covered by any Purchase Notice (or
  interest, if the Securities have been converted into semi-annual cash pay notes pursuant
  to Section 10.01), if any, will cease to accrue on and after the Purchase Date; and

      (10) the CUSIP or ISIN number of the Securities.

      At the Issuers' request, the Trustee shall give such
Issuers' Notice in the name of each Issuer and at the Issuers' expense;
provided, however, that, in all cases, the text of such Issuers' Notice shall be
prepared by the Issuers.

    (f) Covenants of the Company. All shares of Common Stock
delivered upon purchase of the Securities shall be newly issued shares or treasury shares,
shall be duly authorized, validly issued, fully paid and nonassessable, and shall be free
from preemptive rights and free of any lien or adverse claim.

    The Company shall use reasonable best efforts to list or cause to
have quoted any shares of Common Stock to be issued to purchase Securities on each
national securities exchange or over-the-counter or other domestic market on which the
Common Stock is then listed or quoted.

    (g) Procedure upon Purchase. The Issuers shall deposit cash
(in respect of a cash purchase under Section 3.08(c) or for fractional shares, as
applicable) or shares of Common Stock, or a combination thereof, as applicable, at the
time and in the manner as provided in Section 3.11, sufficient to pay the aggregate
Purchase Price of all Securities to be purchased pursuant to this Section 3.08. As
soon as practicable after the Purchase Date, the Company shall 

27

<PAGE> 28

deliver to each Holder entitled to receive Common Stock through the Stock Transfer
Agent, a certificate for the number of full shares of Common Stock issuable in payment of
the Purchase Price. The Person in whose name the certificate for Common Stock is
registered shall be treated as a holder of record of shares of Common Stock on the
Business Day following the Purchase Date. Subject to Section 3.08(d), no payment or
adjustment will be made for dividends on any Common Stock delivered in payment of the
Purchase Price the record date for which occurred on or prior to the Purchase Date.

      (h) Taxes. If a Holder of a Security is paid in Common Stock,
the Issuers shall pay any documentary, stamp or similar issue or transfer tax due on such
issue of shares of Common Stock. However, the Holder shall pay any such tax which is due
because the Holder requests the shares of Common Stock to be issued in a name other than
the Holder's name. The Paying Agent may refuse to deliver the certificates
representing the Common Stock being issued in a name other than the Holder's name
until the Paying Agent receives a sum that the Issuers deem to be sufficient to pay any
tax which will be due because the shares of Common Stock are to be issued in a name other
than the Holder's name. Nothing herein shall preclude any income tax withholding
required by law or regulations.

    SECTION 3.09.  Repurchase of Securities at Option of
the Holder upon Fundamental Change.

    (a) General. If prior to February 1, 2004 there shall have
occurred a Fundamental Change, Securities shall be purchased by the Issuers, at a purchase
price specified in the Securities (the "Fundamental Change Repurchase Price"),
as of a date that is not less than 60 days nor more than 90 days after the occurrence of
the Fundamental Change (the "Fundamental Change Repurchase Date"), at the option
of the Holder thereof, upon:

      (1) delivery to the Paying Agent by the Holder of a written notice
  of purchase (a "Fundamental Change Repurchase Notice"), substantially in the
  form of Exhibit E hereto, at any time from the opening of business on the date that
  is 30 days prior to a Fundamental Change Repurchase Date until the close of business on
  such Fundamental Change Repurchase Date stating:

  
        (A) the certificate numbers of the Securities which the Holder will
    deliver to be purchased,

        (B) the portion of the Principal Amount at Maturity of the Security
    which the Holder will deliver to be purchased, which portion must be in a Principal Amount
    at Maturity of $1,000 or integral multiples thereof,

        (C) that such Security shall be purchased as of the Fundamental
    Change Repurchase Date pursuant to the terms and conditions specified in the Securities
    and in this Indenture, and

        (D) in the event the Issuers elect, pursuant to
    Section 3.09(b), to pay the Fundamental Change Repurchase Price to be paid as of such
    Fundamental Change Repurchase Date, in whole or in part, in shares of Common Stock but
    such portion of the Fundamental Change Repurchase Price shall ultimately be payable

  

28

<PAGE> 29

  
    to such Holder entirely in cash because any of the conditions to payment of the
    Fundamental Change Repurchase Price in Common Stock is not satisfied prior to the close of
    business on such Fundamental Change Repurchase Date, as set forth in Section 3.09(d),
    whether such Holder elects (i) to withdraw such Fundamental Change Repurchase Notice
    as to some or all of the Securities to which such Fundamental Change Repurchase Notice
    relates (stating the Principal Amount at Maturity and certificate numbers of the
    Securities as to which such withdrawal shall relate), or (ii) to receive cash in
    respect of the entire Fundamental Change Repurchase Price for all Securities (or portions
    thereof) to which such Fundamental Change Repurchase Notice relates; and

  

      (2) delivery of such Security to the Paying Agent for cancellation
  prior to, on or after the Fundamental Change Repurchase Date (together with all necessary
  endorsements) at the offices of the Paying Agent, such delivery being a condition to
  receipt by the Holder of the Fundamental Change Repurchase Price therefor; provided,
  however, that such Fundamental Change Repurchase Price shall be so paid pursuant to this
  Section 3.09 only if the Security so delivered to the Paying Agent shall conform in
  all respects to the description thereof in the related Fundamental Change Repurchase
  Notice.

      If a Holder, in such Holder's Fundamental Change Repurchase
Notice, fails to indicate such Holder's choice with respect to the election set forth
in clause (D) of Section 3.09(a)(1), such Holder shall be deemed to have elected to
receive cash in respect of the Fundamental Change Repurchase Price for all Securities
subject to such Fundamental Change Repurchase Notice in the circumstances set forth in
such clause (D).

    The Issuers shall purchase from the Holder thereof, pursuant to this
Section 3.09, a portion of a Security if the Principal Amount at Maturity of such
portion is $1,000 or an integral multiple of $1,000 if so requested by the Holder.
Provisions of this Indenture that apply to the purchase of all of a Security also apply to
the purchase of such portion of such Security.

    Any purchase by the Issuers contemplated pursuant to the provisions
of this Section 3.09 shall be consummated by the delivery of the consideration to be
received by the Holder promptly following the later of the Fundamental Change Repurchase
Date and the time of delivery of the Security.

    Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent a Fundamental Change Repurchase Notice contemplated by this
Section 3.09(a) shall have the right to withdraw such Fundamental Change Repurchase
Notice at any time prior to the close of business on the Fundamental Change Repurchase
Date by delivery of a written notice of withdrawal to the Paying Agent in accordance with
Section 3.10.

    The Paying Agent shall promptly notify the Issuers of the receipt by
it of any Fundamental Change Repurchase Notice or written notice of withdrawal thereof.

    A "Fundamental Change" shall be deemed to have occurred at
such time as any of the following events shall occur:

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<PAGE> 30

      (i) the Company consolidates or merges with or into another Person
  (other than a Subsidiary of the Company);

      (ii) the Company sells, conveys, transfers or leases its properties
  and assets substantially as an entirety to any Person (other than a Subsidiary of the
  Company);

      (iii) any Person (other than a Subsidiary of the Company)
  consolidates with or merges with or into the Company; 

      (iv) the Common Stock is reclassified into, exchanged for or
  converted into the right to receive any other property or security, provided, that none of
  these circumstances will be a Fundamental Change if at least 50% of the aggregate fair
  market value (as determined by the Company's Board of Directors) of such property and
  securities, other than cash payments for fractional shares, consists of shares of voting
  Common Stock of the surviving Person that are, or upon issuance will be, traded on a
  United States national securities exchange or approved for trading on an established
  over-the-counter trading market in the United States; or

      (v) any Person, including its Affiliates and associates (an
  "Acquiring Person"), files Schedule 13D or Schedule TO (or any successor
  schedule, form or report) under the Exchange Act disclosing that such Person has become
  the beneficial owner of 50% or more of the total voting power in the aggregate of all
  classes of the Common Stock then outstanding normally entitled to vote in elections of
  directors other than through a merger or binding share exchange in which all or
  substantially all (as determined by the Board of Directors of the Company) of the
  consideration (except for cash payments for fractional shares) received by the holders
  (other than the Acquiring Person) of the Common Stock consists of shares of voting common
  stock of the surviving Person that are, or that upon issuance will be, traded on a United
  States national securities exchange or approved for trading on an established automated
  over-the-counter trading market in the United States.

    (b) Issuers' Right to Elect Manner of Payment of Fundamental
Change Repurchase Price. The Securities to be purchased pursuant to
Section 3.09(a) may be paid for, at the election of the Issuers, in cash or in shares
of Common Stock valued at 95% of the Market Price, or in any combination of cash and
Common Stock, subject to the conditions set forth in Sections 3.09(c) and (d). The
Issuers shall designate, in the Fundamental Change Notice delivered pursuant to
Section 3.09(e), whether the Issuers will purchase the Securities for cash or Common
Stock, or, if a combination thereof, the percentages of the Fundamental Change Repurchase
Price of Securities in respect of which it will pay in cash or Common Stock; provided that
the Issuers will pay cash for fractional interests in Common Stock. For purposes of
determining the existence of potential fractional interests, all Securities subject to
purchase by the Issuers held by a Holder shall be considered together (no matter how many
separate certificates are to be presented). Each Holder whose Securities are purchased
pursuant to this Section 3.09 shall receive the same percentage of cash or Common
Stock in payment of the Fundamental Change Repurchase Price for such Securities, except
(i) as provided in Section 3.09(d) with regard to the payment of cash in lieu of
fractional shares of Common Stock and (ii) in the event that the Issuers are unable
to purchase the Securities of a Holder or Holders

30

<PAGE> 31

for Common Stock because any necessary qualifications or registrations of the Common
Stock under applicable state securities laws cannot be obtained, the Issuers may purchase
the Securities of such Holder or Holders for cash. The Issuers may not change their
election with respect to the consideration (or components or percentages of components
thereof) to be paid once the Issuers have given their Fundamental Change Notice to Holders
except pursuant to this Section 3.09(b) or pursuant to Section 3.09(d) in the
event of a failure to satisfy, prior to the close of business on the Fundamental Change
Repurchase Date, any condition to the payment of the Fundamental Change Repurchase Price,
in whole or in part, in Common Stock.

    If the Issuers elect to pay all or part of the Fundamental Change
Repurchase Price in Common Stock, the portion of accrued Original Issue Discount (or
interest, if the Securities have been converted into semi-annual cash pay notes pursuant
to Section 10.01) attributable to the period from the Issue Date (or, if the Issuers have
exercised the option to convert the Securities into semi-annual cash pay notes pursuant to
Section 10.01, the later of (x) the date of such exercise, and (y) the date on
which interest was last paid) to the Fundamental Change Repurchase Date with respect to
the surrendered Security shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through the delivery of the
Common Stock (together with a cash payment, if any, in lieu of fractional shares) and
cash, if any, in exchange for the Security being purchased pursuant to the terms hereof;
and such cash, if any, and the fair market value of such shares of Common Stock (together
with any such cash payment in lieu of fractional shares) shall be treated as delivered pro
rata, to the extent thereof, first in exchange for Original Issue Discount (or interest,
if the Securities have been converted into semi-annual cash pay notes pursuant to Section
10.01) accrued to the Fundamental Change Repurchase Date, and the balance, if any, of such
cash and the fair market value of such Common Stock (and any such cash payment) shall be
treated as delivered in exchange for the Issue Price of the Security being purchased
pursuant to the provisions hereof.

      At least three Business Days before the Fundamental Change Notice
Date (as defined below), the Company shall deliver an Officers' Certificate to the
Trustee specifying:

  (i)     the manner of payment selected by the Issuers,

  (ii)     the information required by Section 3.09(e),

  (iii)     if the Issuers elect to pay the Fundamental Change
  Repurchase Price, or a specified percentage thereof, in Common Stock, that the conditions
  to such manner of payment set forth in Section 3.09(d) have been or will be complied
  with, and

  (iv)     whether the Issuers desire the Trustee to give the
  Fundamental Change Notice required by Section 3.09(e).

    (c) Purchase with Cash. On each Fundamental Change Repurchase
Date, at the option of the Issuers, the Fundamental Change Repurchase Price of Securities
in respect of which a Fundamental Change Repurchase Notice pursuant to
Section 3.09(a) has been given, or a specified percentage thereof, may be paid by the
Issuers with cash equal to the aggregate Fundamental Change Repurchase Price of such
Securities.

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<PAGE> 32

    (d) Payment by Issuance of Common Stock. On each Fundamental
Change Repurchase Date, at the option of the Issuers, the Fundamental Change Repurchase
Price of Securities in respect of which a Fundamental Change Repurchase Notice pursuant to
Section 3.09(a) has been given, or a specified percentage thereof, may be paid by the
Company by the issuance of a number of shares of Common Stock equal to the quotient
obtained by dividing (i) the amount of cash to which the Holders would have been
entitled had the Issuers elected to pay all or such specified percentage, as the case may
be, of the Fundamental Change Repurchase Price of such Securities in cash by
(ii) 0.95 times the Market Price of a share of Common Stock, subject to the next
succeeding paragraph.

    The Company will not issue a fractional share of Common Stock in
payment of the Fundamental Change Repurchase Price. Instead the Issuers will pay cash for
the current market value of the fractional share. The current market value of a fraction
of a share shall be determined, to the nearest 1/1,000th of a share, by multiplying the
Market Price by such fraction and rounding the product to the nearest whole cent. It is
understood that if a Holder elects to have more than one Security purchased, the number of
shares of Common Stock shall be based on the aggregate amount of Securities to be
purchased.

      The Issuers' right to exercise its election to purchase the
Securities pursuant to Section 3.09 through the issuance by the Company of shares of
Common Stock shall be conditioned upon:

  (i)     the Issuers' not having given a Fundamental Change
  Notice of an election to pay entirely in cash and its giving of timely Fundamental Change
  Notice of election to purchase all or a specified percentage of the Securities with Common
  Stock as provided herein;

  (ii)     the registration of the shares of Common Stock to be
  issued in respect of the payment of the Fundamental Change Repurchase Price under the
  Securities Act or the Exchange Act, in each case if required;

  (iii)     any necessary qualification or registration under
  applicable state securities laws or the availability of an exemption from such
  qualification and registration; and

  (iv)     the receipt by the Trustee of an Officers'
  Certificate and an Opinion of Counsel, each stating that (A) the terms of the
  issuance of the Common Stock are in conformity with this Indenture and (B) the shares
  of Common Stock to be issued by the Company in payment of the Fundamental Change
  Repurchase Price in respect of Securities have been duly authorized and, when issued and
  delivered pursuant to the terms of this Indenture in payment of the Fundamental Change
  Repurchase Price in respect of the Securities, will be validly issued, fully paid and
  non-assessable and, to the best of such counsel's knowledge, free from preemptive
  rights, and, in the case of such Officers' Certificate, stating that conditions (i),
  (ii) and (iii) above and the condition set forth in the second succeeding sentence have
  been satisfied and, in the case of such Opinion of Counsel, stating that condition (ii)
  above has been satisfied.

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<PAGE> 33

      Such Officers' Certificate shall also set forth the number of
shares of Common Stock to be issued for each $1,000 Principal Amount at Maturity of
Securities and the Sale Price of a share of Common Stock on each trading day during the
period during which the Market Price is calculated. The Issuers may pay the Fundamental
Change Repurchase Price (or any portion thereof) in Common Stock only if the information
necessary to calculate the Market Price is published in a daily newspaper of national
circulation. If the foregoing conditions are not satisfied with respect to a Holder or
Holders prior to the close of business on the Fundamental Change Repurchase Date and the
Issuers have elected to purchase the Securities pursuant to this Section 3.09 through
the issuance by the Company of shares of Common Stock, the Issuers shall pay the entire
Fundamental Change Repurchase Price of the Securities of such Holder or Holders in cash.

      (e) Notice of Fundamental Change and Issuers' Election.
Within 30 days after the occurrence of a Fundamental Change, the Issuers shall mail a
notice of such Fundamental Change (the "Fundamental Change Notice") by
first-class mail to the Trustee and to each Holder (and to beneficial owners as required
by applicable law). The Fundamental Change Notice shall disclose the Issuers'
election to repurchase with cash or Common Stock or any combination thereof in the manner
provided herein. The Fundamental Change Notice shall be sent to Holders (and to beneficial
owners as required by applicable law) not less than 30 Business Days prior to such
Fundamental Change Repurchase Date (the "Fundamental Change Notice Date"). The
notice shall include a form of Fundamental Change Repurchase Notice to be completed by the
Holder and shall state:

      (1) briefly, the events causing a Fundamental Change and the date of
  such Fundamental Change;

      (2) the date by which the Fundamental Change Repurchase Notice
  pursuant to this Section 3.09 must be given;

      (3) the Fundamental Change Repurchase Date;

      (4) the Fundamental Change Repurchase Price;

      (5) the name and address of the Paying Agent and the Conversion
  Agent;

      (6) the Conversion Rate applicable on the Fundamental Change Notice
  Date and any adjustments thereto;

      (7) that Securities as to which a Fundamental Change Repurchase
  Notice has been given may be converted pursuant to Article 11 hereof only if the
  applicable Fundamental Change Repurchase Notice has been withdrawn in accordance with the
  terms of this Indenture;

      (8) that Securities must be surrendered to the Paying Agent for
  cancellation to collect payment;

      (9) that the Fundamental Change Repurchase Price for any Security as
  to which a Fundamental Change Repurchase Notice has been duly given and not withdrawn will
  be

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<PAGE> 34

paid promptly following the later of the Fundamental Change Repurchase Date and the
time of surrender of such Security as described in (8);

      (10) the procedures the Holder must follow to exercise rights under
  this Section 3.09 and a brief description of those rights;

      (11) briefly, the conversion rights of the Securities;

      (12) the procedures for withdrawing a Fundamental Change Repurchase
  Notice (including, without limitation, for a conditional withdrawal pursuant to the terms
  of Section 3.09(a)(1)(D) or Section 3.10);

      (13) that, unless the Issuers default in making payment of such
  Fundamental Change Repurchase Price, Original Issue Discount on Securities covered by any
  Fundamental Change Repurchase Notice (or interest, if the Securities have been converted
  into semi-annual cash pay notes pursuant to Section 10.01), if any, will cease to accrue
  on and after the Fundamental Change Repurchase Date; and

      (14) the CUSIP or ISIN number of the Securities.

    In the event the Issuers have elected to pay the Fundamental Change
Repurchase Price (or a specified percentage thereof) with Common Stock, the Fundamental
Change Notice also shall:

      (1) state that each Holder will receive Common Stock in respect of
  the specified percentage of the Fundamental Change Repurchase Price of the Securities held
  by such Holder (except any cash amount to be paid in lieu of fractional shares);

      (2) state that the total number of shares of Common Stock to be
  issued to Holders will be equal to the quotient obtained by dividing (i) the amount
  of cash to which the Holders would have been entitled had the Issuers elected to pay all
  or such specified percentage, as the case may be, of the Fundamental Change Repurchase
  Price of such Securities in cash by (ii) 0.95 times the Market Price of a share of
  Common Stock;

      (3) set forth the method of calculating the Market Price of the
  Common Stock; and

      (4) state that because the Market Price of Common Stock will be
  determined prior to the Fundamental Change Repurchase Date, Holders will bear the market
  risk with respect to the value of the Common Stock to be received from the date such
  Market Price is determined to the Fundamental Change Repurchase Date.

      At the Issuers' request, the Trustee shall give such
Fundamental Change Notice in the name of each Issuer and at the Issuers' expense;
provided, however, that, in all cases, the text of such Fundamental Change Notice shall be
prepared by the Issuers.

    (f) Covenants of the Company. All shares of Common Stock
delivered upon purchase of the Securities shall be newly issued shares or treasury shares,
shall be duly 

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<PAGE> 35

authorized, validly issued, fully paid and nonassessable, and shall be free from
preemptive rights and free of any lien or adverse claim. 

    The Company shall use its best efforts to list or cause to have
quoted any shares of Common Stock to be issued to purchase Securities on each national
securities exchange or over-the-counter or other domestic market on which the Common Stock
is then listed or quoted.

    (g) Procedure upon Purchase. The Issuers shall deposit cash
(in respect of a cash purchase under Section 3.09(c) or for fractional shares, as
applicable) or shares of Common Stock, or a combination thereof, as applicable, at the
time and in the manner as provided in Section 3.11, sufficient to pay the aggregate
Fundamental Change Repurchase Price of all Securities to be purchased pursuant to this
Section 3.09. As soon as practicable after the Fundamental Change Repurchase Date,
the Company shall deliver to each Holder entitled to receive Common Stock through the
Stock Transfer Agent, a certificate for the number of full shares of Common Stock issuable
in payment of the Fundamental Change Repurchase Price. Prior to the Conversion Date, a
Holder of a Security shall have no rights as a Shareholder with respect to shares of
Common Stock into which such Security is convertible. The Person in whose name the
certificate for Common Stock is registered shall be treated as a holder of record of
shares of Common Stock on the Business Day following the Fundamental Change Repurchase
Date. Subject to Section 3.09(d), no payment or adjustment will be made for dividends
on any Common Stock delivered in payment of the Fundamental Change Repurchase Price the
record date for which occurred on or prior to the Fundamental Change Repurchase Date.

    (h) Taxes. If a Holder of a Security is paid in Common Stock,
the Issuers shall pay any documentary, stamp or similar issue or transfer tax due on such
issue of shares of Common Stock. Nothing herein shall preclude any income tax withholding
required by law or regulations.

    SECTION 3.10.  Effect of Purchase Notice or Fundamental
Change Repurchase Notice. Upon receipt by a Paying Agent of the Purchase Notice or
Fundamental Change Repurchase Notice specified in Section 3.08(a) or
Section 3.09(a), as applicable, the Holder of the Security in respect of which such
Purchase Notice or Fundamental Change Repurchase Notice, as the case may be, was given
shall (unless such Purchase Notice or Fundamental Change Repurchase Notice is withdrawn as
specified in the following two paragraphs) thereafter be entitled to receive solely the
Purchase Price or Fundamental Change Repurchase Price, as the case may be, with respect to
such Security. Such Purchase Price or Fundamental Change Repurchase Price shall be paid to
such Holder, subject to receipts of funds and/or Securities by the Paying Agent, promptly
following the later of (x) the Purchase Date or the Fundamental Change Repurchase
Date, as the case may be, with respect to such Security (provided the conditions in
Section 3.08(a) or Section 3.09(a), as applicable, have been satisfied) and
(y) the time of delivery of such Security to the Paying Agent by the Holder thereof
in the manner required by Section 3.08(a) or Section 3.09(a), as applicable.
Securities in respect of which a Purchase Notice or Fundamental Change Repurchase Notice,
as the case may be, has been given by the Holder thereof may not be converted pursuant to
Article 11 hereof on or after the date of the delivery of such Purchase Notice or
Fundamental Change Repurchase Notice, as the case may be, unless such Purchase Notice or
Fundamental Change Repurchase Notice, as the case may be, has first been validly withdrawn
as specified in the following two paragraphs.

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<PAGE> 36

    A Purchase Notice or Fundamental Change Repurchase Notice, as the
case may be, may be withdrawn by means of a written notice of withdrawal delivered to the
office of the Paying Agent in accordance with the Purchase Notice or Fundamental Change
Repurchase Notice, as the case may be, at any time prior to the close of business on the
Purchase Date or the Fundamental Change Repurchase Date, as the case may be, specifying:

      (1) the certificate number of the Security in respect of which such
  notice of withdrawal is being submitted,

      (2) the Principal Amount at Maturity of the Security with respect to
  which such notice of withdrawal is being submitted, and

      (3) the Principal Amount at Maturity, if any, of such Security which
  remains subject to the original Purchase Notice or Fundamental Change Repurchase Notice,
  as the case may be, and which has been or will be delivered for purchase or repurchase by
  the Issuers.

    A written notice of withdrawal of a Purchase Notice or Fundamental
Change Repurchase Notice may be in the form set forth in the preceding paragraph or may be
in the form of (i) a conditional withdrawal contained in a Purchase Notice or
Fundamental Change Repurchase Notice pursuant to the terms of Section 3.08(a)(1)(D)
or 3.09(a)(1)(D) or (ii) a conditional withdrawal containing the information set
forth in Section 3.08(a)(1)(D) or 3.09(a)(1)(D) and the preceding paragraph and
contained in a written notice of withdrawal delivered to the Paying Agent as set forth in
the preceding paragraph.

    There shall be no purchase of any Securities pursuant to
Section 3.08 or 3.09 (other than through the issuance of Common Stock in payment of
the Purchase Price, including cash in lieu of fractional shares) if there has occurred
(prior to, on or after, as the case may be, the giving, by the Holders of such Securities,
of the required Purchase Notice or Fundamental Change Repurchase Notice, as the case may
be) and is continuing an Event of Default (other than a default in the payment of the
Purchase Price or Fundamental Change Repurchase Price, as the case may be, with respect to
such Securities). The Paying Agent will promptly return to the respective Holders thereof
any Securities (x) with respect to which a Purchase Notice or Fundamental Change
Repurchase Notice, as the case may be, has been withdrawn in compliance with this
Indenture, or (y) held by it during the continuance of an Event of Default (other
than a default in the payment of the Purchase Price or Fundamental Change Repurchase
Price, as the case may be, with respect to such Securities) in which case, upon such
return, the Purchase Notice or Fundamental Change Repurchase Notice with respect thereto
shall be deemed to have been withdrawn.

    SECTION 3.11.  Deposit of Purchase Price or Fundamental
Change Repurchase Price. Prior to 11:00 a.m. (New York City time) on the Business Day
following the Purchase Date or the Fundamental Change Repurchase Date, as the case may be,
the Issuers shall deposit with the Trustee or with the Paying Agent (or, if any Issuer or
a Subsidiary of any of the Issuers is the Paying Agent, shall segregate and hold in trust)
an amount of money (in immediately available funds if deposited on such Business Day)
sufficient to pay the cash portion of the aggregate Purchase Price or Fundamental Change
Repurchase Price, as the case may be, of all 

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<PAGE> 37

the Securities (or portions thereof) which are to be purchased as of the Purchase Date
or Fundamental Change Repurchase Date, as the case may be, and shall instruct the Stock
Transfer Agent to deliver the number of full shares of Common Stock issuable in payment of
the remaining portion of the aggregate Purchase Price or Fundamental Change Repurchase
Price, as the case may be. The Issuers shall promptly notify the Trustee in writing of the
amount of any deposits of cash or deliveries of Common Stock made pursuant to this
Section.

      SECTION 3.12.  Securities Purchased or Repurchased in
Part. Any Security which is to be purchased or repurchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Issuers or the Trustee so
require, due endorsement by, or a written instrument of transfer in form satisfactory to
the Issuers and the Trustee duly executed by, the Holder thereof or such Holder's
attorney duly authorized in writing) and the Issuers shall execute and the Trustee shall
authenticate and deliver to the Holder of such Security, without service charge, a new
Security or Securities, of any authorized denomination as requested by such Holder in
aggregate Principal Amount at Maturity equal to, and in exchange for, the portion of the
Principal Amount at Maturity of the Security so surrendered which is not purchased.

    SECTION 3.13.  Covenant to Comply With Securities Laws
Upon Purchase or Repurchase of Securities. In connection with any offer to purchase or
repurchase or purchase or repurchase of Securities under Section 3.08 or 3.09 hereof
(provided that such offer or purchase or repurchase constitutes an "issuer tender
offer" for purposes of Rule 13e-4 (which term, as used herein, includes any successor
provision thereto) under the Exchange Act at the time of such offer or purchase), the
Issuers shall (i) comply with Rule 13e-4 and Rule 14e-1 under the Exchange Act,
(ii) file the related Schedule TO (or any successor schedule, form or report) under
the Exchange Act, and (iii) otherwise comply with all Federal and state securities
laws so as to permit the rights and obligations under Sections 3.08 and 3.09 to be
exercised in the time and in the manner specified in Sections 3.08 and 3.09.

    SECTION 3.14.  Repayment to the Issuers. The
Trustee and the Paying Agent shall return to the Issuers, upon their written request
therefor, any cash that remains unclaimed, together with interest or dividends, if any,
thereon, held by them for the payment of the Purchase Price or Fundamental Change
Repurchase Price, as the case may be; provided, however, that to the extent that the
aggregate amount of cash deposited by the Issuers pursuant to Section 3.11 exceeds
the cash portion of the aggregate Purchase Price or Fundamental Change Repurchase Price,
as the case may be, of the Securities (or portions thereof) which the Issuers are
obligated to purchase as of the Purchase Date or Fundamental Change Repurchase Date, as
the case may be, then on the Business Day following the Purchase Date or Fundamental
Change Repurchase Date, as the case may be, the Trustee shall return any such excess to
the Issuers, upon their written request therefor.

ARTICLE 4

COVENANTS

    SECTION 4.01.  Payment of Securities. The Issuers
shall promptly make all payments in respect of the Securities on the dates and in the
manner provided in the Securities and in this Indenture. Such payments shall be considered
made on the date due if on such date

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<PAGE> 38

the Trustee or the Paying Agent holds, in accordance with this Indenture, money
sufficient to make all payments with respect of the Securities then due and the Trustee or
the Paying Agent, as the case may be, is not prohibited from paying such money to the
Holders on that date pursuant to the terms of this Indenture.

      SECTION 4.02.  SEC Reports. Notwithstanding that
the Company may not be subject to the reporting requirements of Section 13 or 15(d)
of the Exchange Act, the Company shall file with the SEC, and provide the Trustee and
Holders within 15 days after it files them with the SEC, copies of its annual report and
the information, documents and other reports that are specified in Sections 13 and
15(d) of the Exchange Act. Delivery of such reports, information and documents to the
Trustee is for informational purposes only and the Trustee's receipt of such shall
not constitute constructive notice of any information contained therein or determinable
from information contained therein, including the Issuers' compliance with any of
their covenants hereunder (as to which the Trustee is entitled to rely exclusively on
Officers' Certificates). The Issuers also shall comply with the other provisions of
Trust Indenture Act Section 314(a).

    SECTION 4.03.  Corporate Existence. Each Issuer
shall do or cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, material rights (charter and statutory) and material
franchises (other than as contemplated by Section 5.01); provided, however, that such
Issuer shall not be required to preserve any such right or franchise if the Board of
Directors shall determine that the preservation of such rights or franchises is no longer
desirable in the conduct of the business of the Issuers and the Restricted Subsidiaries
considered as a whole.

    SECTION 4.04.  Restrictions on Liens. Except as
provided in Section 4.06, the Issuers shall not, and shall not permit any Restricted
Subsidiary to, create or suffer to exist any Lien to secure any Indebtedness of any Issuer
or Restricted Subsidiary on any Principal Property of any Issuer or Restricted Subsidiary,
without making, or causing such Restricted Subsidiary to make, effective provision to
secure all of the Securities offered hereunder and then outstanding by such Lien, equally
and ratably with any and all other such Indebtedness thereby secured, so long as such
other Indebtedness is so secured, except that the foregoing restrictions shall not apply
to:

      (a) Liens on property of a Person existing at the time such Person
  is merged into or consolidated with any Issuer or Restricted Subsidiary or at the time of
  sale, lease or other disposition of the properties of such Person (or a division thereof)
  as an entirety or substantially as an entirety to any Issuer or Restricted Subsidiary;

      (b) Liens on property of a Person existing at the time such Person
  becomes a Restricted Subsidiary or existing on property prior to the acquisition thereof
  by any Issuer or Restricted Subsidiary;

      (c) Liens securing Indebtedness between a Restricted Subsidiary and
  an Issuer or between Restricted Subsidiaries or Issuers;

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<PAGE> 39

      (d) Liens on any property created, assumed or otherwise brought into
  existence in contemplation of the sale or other disposition of the underlying property,
  whether directly or indirectly, by way of share disposition or otherwise, provided that
  the applicable Issuer or Restricted Subsidiary must dispose of such property within 180
  days after the creation of such Liens and that any Indebtedness secured by such Liens
  shall be without recourse to any Issuer or Restricted Subsidiary;

      (e) Liens in favor of the United States of America or any state
  thereof, or any department, agency or instrumentality or political subdivision of the
  United States of America or any state thereof, or in favor of any country, or any
  political subdivision thereof, to secure partial, progress, advance or other payments, or
  performance of any other similar obligations, including, without limitation, Liens to
  secure pollution control bonds or industrial revenue or other similar types of bonds;

      (f) Liens imposed by law, such as carriers',
  warehousemen's and mechanics' Liens and other similar Liens arising in the
  ordinary course of business which secure obligations not more than 60 days past due or
  which are being contested in good faith and by appropriate proceedings;

      (g) Liens incurred in the ordinary course of business to secure
  performance of obligations with respect to statutory or regulatory requirements,
  performance or return-of-money bonds, surety bonds or other obligations of a like nature,
  in each case which are not incurred in connection with the borrowing of money, the
  obtaining of advances or credit or the payment of the deferred purchase price of property
  and which do not in the aggregate impair in any material respect the use of property in
  the operation of the business of the Issuers and their respective Subsidiaries taken as a
  whole;

      (h) Liens incurred to secure appeal bonds and judgment and
  attachment Liens, in each case in connection with litigation or legal proceedings which
  are being contested in good faith by appropriate proceedings so long as reserves have been
  established to the extent required by GAAP;

      (i) pledges or deposits under workmen's compensation laws,
  unemployment insurance laws or similar legislation, or good faith deposits in connection
  with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to
  which any Issuer or Restricted Subsidiary is a party, or deposits to secure public or
  statutory obligations of an Issuer or Restricted Subsidiary or deposits for the payment of
  rent, in each case incurred in the ordinary course of business;

      (j) utility easements, building restrictions and such other
  encumbrances or charges against real property as are of a nature generally existing with
  respect to properties of a similar character;

      (k) Liens granted to any bank or other institution on the payments
  to be made to such institution by an Issuer or Subsidiary thereof, pursuant to any
  interest rate swap or similar agreement or foreign currency hedge, exchange or similar
  agreement designed to provide protection against fluctuations in interest rates and
  currency exchange rates, 

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  respectively, provided that such agreements are entered into in, or are incidental to,
  the ordinary course of business;

      (l) Liens arising solely by virtue of any statutory or common law
  provision relating to banker's liens, rights of setoff or similar rights and
  remedies, in each case as to any deposit account or any other fund maintained with a
  creditor depository institution, provided that (1) such deposit account is not a
  dedicated cash collateral account and is not subject to restrictions against access by the
  applicable Issuer or Restricted Subsidiary in excess of those set forth by regulations
  promulgated by the Federal Reserve Board, and (2) such deposit account is not
  intended by such Issuer or Restricted Subsidiary to provide collateral to the depository
  institution;

      (m) Liens arising from Uniform Commercial Code financing statements
  regarding leases;

      (n) the giving, simultaneously with or within 180 days after the
  latest of the Closing Date, or the acquisition, construction, improvement, development or
  expansion of such property, of a purchase money Lien on property acquired, constructed,
  improved, developed or expanded after the Closing Date, or the acquisition, construction,
  improvement, development or expansion after the Closing Date, of property subject to any
  Lien which is limited to such property;

      (o) the giving of a Lien on real property which is the sole security
  for Indebtedness incurred within two years after the latest of the Closing Date, or the
  acquisition, construction, improvement, development or expansion of such property,
  provided that the holder of such Indebtedness is entitled to enforce its payment only by
  resorting to such security;

      (p) Liens arising by the terms of letters of credit entered into in
  the ordinary course of business to secure reimbursement obligations thereunder;

      (q) Liens existing on the Closing Date;

      (r) Liens for taxes, assessments and other governmental charges or
  levies not yet due or as to which the period of grace, if any related thereto has not
  expired or which are being contested in good faith and by appropriate proceedings if
  adequate reserves are maintained to the extent required by GAAP; and

      (s) extension, renewal, replacement or refunding of any Lien
  existing on the Closing Date or referred to in clauses (a) to (k) and (n) to (o) and (q),
  provided that the principal amount of Indebtedness secured thereby and not otherwise
  authorized by clauses (a) to (k) and (n) to (o) and (q) shall not exceed the principal
  amount of Indebtedness, plus any premium or fee payable in connection with any such
  extension, renewal, replacement or refunding, so secured at the time of such extension,
  renewal, replacement or refunding.

    SECTION 4.05.  Restrictions on Sale and Leaseback
Transactions. Except as provided in Section 4.06, none of the Issuers shall, and
none of the Issuers shall permit any 

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Restricted Subsidiary to, after the date hereof, enter into any arrangement with any
Person providing for the leasing by any such Issuer or Restricted Subsidiary of any
Principal Property now owned or hereafter acquired which has been or is to be sold or
transferred by such Issuer or Restricted Subsidiary to such Person with the intention of
taking back a lease of such Principal Property (a "Sale and Leaseback
Transaction"), unless the net proceeds of such sale or transfer have been determined
by the Board of Directors to be at least equal to the fair market value of such Principal
Property or asset at the time of such sale and transfer and either (i) such Issuer or
Restricted Subsidiary applies or causes to be applied an amount equal to the net proceeds
of such sale or transfer, within 180 days of receipt thereof, to the retirement or
prepayment (other than any mandatory retirement or prepayment, except mandatory
retirements or prepayments required as a result of such Sale and Leaseback Transaction) of
Funded Debt of any Issuer or any Restricted Subsidiary ranking senior to or pari passu
with the Securities or to the purchase, construction or development of property or assets
to be used in the ordinary course of business, or (ii) such Issuer or Restricted
Subsidiary would, on the effective date of such sale or transfer, be entitled, pursuant to
this Indenture, to issue, assume or guarantee Indebtedness secured by a Lien upon such
Principal Property, at least equal in amount to the Attributable Debt in respect of such
Sale and Leaseback Transaction without equally and ratably securing the Securities. The
foregoing restriction shall not apply to any Sale and Leaseback Transaction
(i) between any Issuer and Restricted Subsidiary or between Restricted Subsidiaries
or Issuers, provided that the lessor shall be an Issuer or a Wholly Owned Restricted
Subsidiary, (ii) which has a lease of less than three years in length,
(iii) entered into within 180 days after the later of the purchase, construction of
development of such Principal Property or assets, or the commencement of operation of such
Principal Property or (iv) involving the distribution warehouse of Jones Apparel
Group, Inc. at South Hill, Virginia.

      SECTION 4.06.  Exempted Debt. Notwithstanding
Sections 4.04 and 4.05, any Issuer or Restricted Subsidiary may, in addition to
amounts permitted under such restrictions, create Indebtedness secured by Liens, or enter
into Sale and Leaseback Transactions, provided that, at the time of such transactions and
after giving effect thereto, the aggregate outstanding amount of all such Indebtedness
secured by Liens plus Attributable Debt resulting from such Sale and Leaseback
Transactions does not exceed 20% of Consolidated Shareholders' Equity.

    SECTION 4.07.  Waiver of Certain Covenants. Each of
the Issuers may in any particular instance, be excused from failing to comply with any
term, provision or condition set forth in Section 4.02 or Sections 4.04 to 4.06,
with respect to the Securities if before the time for such compliance the Holders of at
least a majority in Principal Amount at Maturity of the outstanding Securities shall, by
act of such Holders, either waive such compliance in such instance or generally waive
compliance with such term, provision or condition but no such waiver shall extend to or
affect such term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Issuers, and the duties
of the Trustee in respect of any such term, provision or condition shall remain in full
force and effect.

    The Issuers may, but shall not be obligated to, fix a record date
for the purpose of determining the Persons entitled to waive compliance with any covenant
or condition hereunder. If a record date is fixed, the Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to waive any such
compliance, whether or not such Holders

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remain Holders after such record date; provided that unless the Holders of at least a
majority in Principal Amount at Maturity of the outstanding Securities affected shall have
waived such compliance prior to the date which is 90 days after such record date, any such
waiver previously given shall automatically and without further action by any Holder be
canceled and of no further effect.

      SECTION 4.08.  Compliance Certificate. The Issuers
shall deliver to the Trustee within 120 days after the end of each fiscal year of the
Issuers an Officers' Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Issuers they would normally have knowledge of
any Default and whether or not the signers know of any Default that occurred during such
period. If they do, the certificate shall describe the Default, its status and what action
the Issuers are taking or propose to take with respect thereto. The Issuers also shall
comply with Trust Indenture Act Section 314(a)(4).

    SECTION 4.09.  Further Instruments and Acts. Each
of the Issuers shall execute and deliver to the Trustee such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more effectively
the purpose of this Indenture.

    SECTION 4.10.  Calculation of Original Issue Discount.
The Issuers 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 the outstanding Securities as of the end of such year and (ii)
other specific information relating to such Original Issue Discount that is necessary for
the trustee to comply with the requirements of the Internal Revenue Code of 1986, as
amended from time to time and the regulations promulgated thereunder.

      SECTION 4.11.  Book-Entry System. If the Securities
cease to trade in the Depositary's book-entry settlement system, the Company
covenants and agrees that it shall use reasonable efforts to make such other book-entry
arrangements that it determines are reasonable for the Securities.

ARTICLE 5

SUCCESSOR COMPANIES

    SECTION 5.01.  Merger and Consolidation. None of
the Issuers shall consolidate with or merge with or into, or convey, transfer or lease all
or substantially all its assets to, any Person (other than a merger of a Wholly Owned
Restricted Subsidiary into an Issuer or another Wholly Owned Restricted Subsidiary or a
merger of one Issuer into another), unless:

  (i)     the resulting, surviving or transferee Person (the
  "Successor Company") shall be a corporation organized and existing under the
  laws of the United States of America, any State thereof or the District of Columbia, and
  the Successor Company (if not such Issuer) shall expressly assume, by a supplemental
  indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all
  the obligations of such Issuer under the Securities and this Indenture;

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  (ii)     immediately after giving effect to such transaction (and
  treating any Indebtedness which becomes an obligation of the Successor Company, any other
  Issuer or any Restricted Subsidiary as a result of such transaction, as having been
  incurred by the Successor Company or such Issuer or Restricted Subsidiary at the time of
  such transaction), no Event of Default shall have occurred and be continuing;

  (iii)     such Issuer shall have delivered to the Trustee an
  Officers' Certificate and an Opinion of Counsel, each stating that such
  consolidation, merger or transfer and such supplemental indenture (if any) comply with
  this Indenture; and

  (iv)     if, as a result of any such consolidation, merger or
  transfer, the Principal Property of such Issuer would become subject to a Lien which shall
  not be permitted by this Indenture, such Issuer or the Successor Company, as the case may
  be, shall take such steps as shall be necessary to secure the Securities equally and
  ratably with (or prior to) all Indebtedness secured thereby.

    The Successor Company shall succeed to, and be substituted for, and
may exercise every right and power of, the applicable Issuer under this Indenture, but the
predecessor Issuer in the case of a lease of all or substantially all of its assets shall
not be released from the obligation to pay the principal of and interest on the
Securities.

ARTICLE 6

DEFAULTS AND REMEDIES

    SECTION 6.01.  Events of Default. An "Event of
Default" with respect to Securities occurs if:

      (1) the Issuers default in any payment of the Principal Amount at
  Maturity (or, if the Securities have been converted to semi-annual cash pay notes pursuant
  to Section 10.01, the Restated Principal Amount), Redemption Price, Purchase Price or
  Fundamental Change Repurchase Price on any Security when it becomes due and payable;

      (2) the Issuers default in the payment of interest on any Security,
  if the Issuers have exercised their option following a Tax Event to convert the Securities
  into semi-annual cash pay notes pursuant to Section 10.01, when such interest becomes due
  and payable, and such default continues for a period of 30 days;

      (3) the Issuers default in the payment of liquidated damages on any
  Security, and such default continues for a period of 30 days;

      (4) any Issuer fails to comply with Section 5.01;

      (5) any Issuer fails to comply with Section 4.02, 4.03, 4.04,
  4.05 or 4.06, and such failure continues for 30 days after the notice specified below;

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<PAGE> 44

      (6) any Issuer fails to comply with any of its covenants or
  agreements contained in the Securities or this Indenture (other than those referred to in
  (1), (2), (3), (4) or (5) above) and such failure continues for 60 days after the notice
  specified below;

      (7) any Issuer or Restricted Subsidiary defaults under any
  Indebtedness (other than the Securities), whether such Indebtedness now exists or shall
  hereafter be created, and such default results in Indebtedness in excess of $25,000,000 or
  its foreign currency equivalent becoming due and payable prior to the date on which it
  would otherwise have become due and payable, without such Indebtedness having been
  discharged or such acceleration having been rescinded or annulled within 30 days after
  notice;

      (8) any Issuer or Restricted Subsidiary pursuant to or within the
  meaning of any Bankruptcy Law:

  
        (A) commences a voluntary case;

        (B) consents to the entry of an order for relief against it in an
    involuntary case;

        (C) consents to the appointment of a Custodian of it or for any
    substantial part of its property; or

        (D) makes a general assignment for the benefit of its creditors or
    takes any comparable action under any foreign laws relating to insolvency;

  

      (9) a court of competent jurisdiction enters an order or decree
  under any Bankruptcy Law that:

  
        (A) is for relief against any Issuer or Restricted Subsidiary in an
    involuntary case;

        (B) appoints a Custodian of any Issuer or Restricted Subsidiary or
    for any substantial part of its property; or

        (C) orders the winding up or liquidation of any Issuer or Restricted
    Subsidiary or any similar relief is granted under any foreign laws and the order or decree
    remains unstayed and in effect for 60 days;

  

      (10) any judgment or decree for the payment of money in excess of
  $25,000,000 or its foreign currency equivalent at the time, is entered against any Issuer
  or Restricted Subsidiary and either (A) an enforcement proceeding has been commenced
  by any creditor upon such judgment or decree or (B) there is a period of 60 days
  following the entry of such judgment or decree during which such judgment or decree is not
  discharged, waived or the execution thereof stayed; or

      (11) the co-obligation of any Issuer shall cease to be in full force
  and effect (except as contemplated by the terms thereof or this Indenture).

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    The foregoing shall constitute Events of Default whatever the reason
for any such Event of Default and whether it is voluntary or involuntary or is effected by
operation of law or pursuant to any judgment, decree or order of any court or any order,
rule or regulation of any administrative or governmental body.

    The term "Bankruptcy Law" means Title 11, United States
Code, or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

    A Default under clause (5), (6) or (7) above is not an Event of
Default until the Trustee or the Holders of at least 25% in Principal Amount at Maturity
of the outstanding Securities notify the applicable Issuer of the Default and such Issuer
does not cure such Default within the time specified in clause (5), (6) or (7), as
applicable, after receipt of such notice. Such notice must specify the Default, demand
that it be remedied and state that such notice is a "Notice of Default."

      The Issuers shall deliver to the Trustee, within 30 days after the
occurrence thereof, written notice in the form of an Officers' Certificate of any
Event of Default under clause (7) and any event which with the giving of notice or the
lapse of time would become an Event of Default under clause (5), (6) or (10), its status
and what action the Issuers are taking or proposes to take with respect thereto.

    SECTION 6.02.  Acceleration. If an Event of Default
with respect to any Securities at the time outstanding (other than an Event of Default
specified in Section 6.01(8) or (9) with respect to any Issuer) occurs and is
continuing, the Trustee or the Holders of at least 25% in Principal Amount at Maturity of
the outstanding Securities by notice to the Issuers, may declare the Issue Price (or, if
the Securities have been converted into semi-annual cash pay notes pursuant to Section
10.01, the Restated Principal Amount) of and accrued Original Issue Discount (or, if the
Securities have been converted into semi-annual cash pay notes pursuant to Section 10.01,
accrued but unpaid interest) on all the Securities to be due and payable. Upon such a
declaration, such Issue Price (or, if the Securities have been converted into semi-annual
cash pay notes pursuant to Section 10.01, the Restated Principal Amount) and Original
Issue Discount (or, if the Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01, accrued but unpaid interest) shall be due and payable
immediately. If an Event of Default specified in Section 6.01(8) or (9) with respect
to any Issuer occurs, the Issue Price (or, if the Securities have been converted into
semi-annual cash pay notes pursuant to Section 10.01, the Restated Principal Amount) of
and Original Issue Discount (or, if the Securities have been converted into semi-annual
cash pay notes pursuant to Section 10.01, accrued but unpaid interest) on all the
Securities shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holder. The Holders of a
majority in Principal Amount at Maturity of the Securities by notice to the Trustee may
rescind an acceleration and its consequences if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or waived except
nonpayment of Issue Price (or, if the Securities have been converted into semi-annual cash
pay notes pursuant to Section 10.01, the Restated Principal Amount) or Original Issue
Discount (or, if the Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01, accrued but

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unpaid interest) that has become due solely because of acceleration. No such rescission
shall affect any subsequent Default or impair any right consequent thereto.

    SECTION 6.03.  Other Remedies. If an Event of
Default occurs and is continuing, the Trustee may pursue any available remedy to collect
the payment of Issue Price (or, if the Securities have been converted into semi-annual
cash pay notes pursuant to Section 10.01, the Restated Principal Amount) of or Original
Issue Discount (or, if the Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01, accrued but unpaid interest) on the Securities or to enforce
the performance of any provision of the Securities or this Indenture.

    The Trustee may institute and maintain a suit or legal proceeding
even if it does not possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Holder in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All available remedies are cumulative.

    SECTION 6.04.  Waiver of Past Defaults. The Holders
of a majority in Principal Amount at Maturity of the Securities by notice to the Trustee
may waive an existing Default and its consequences except (i) a Default in the
payment of the Issue Price (or, if the Securities have been converted into semi-annual
cash pay notes pursuant to Section 10.01, the Restated Principal Amount) of or Original
Issue Discount (or, if the Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01, accrued but unpaid interest) on a Security, (ii) a Default
arising from the failure to redeem or purchase any Security when required pursuant to the
terms of this Indenture or (iii) a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Holder affected. When a
Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent
or other Default or impair any consequent right.

    SECTION 6.05.  Control by Majority. The Holders of
a majority in Principal Amount at Maturity of the outstanding Securities may direct the
time, method and place of conducting any proceeding for any remedy available to the
Trustee or of exercising any trust or power conferred on the Trustee. However, the Trustee
may refuse to follow any direction that conflicts with law or this Indenture or, subject
to Section 7.01, that the Trustee determines is unduly prejudicial to the rights of
any other Holder or that would subject the Trustee to personal liability; provided,
however, that the Trustee may take any other action deemed proper by the Trustee that is
not inconsistent with such direction. Prior to taking any action hereunder, the Trustee
shall be entitled to indemnification satisfactory to it in its sole discretion against all
losses and expenses caused by taking or not taking such action.

    SECTION 6.06.  Limitation on Suits. Except to
enforce the right to receive payment of Issue Price (or, if the Securities have been
converted into semi-annual cash pay notes pursuant to Section 10.01, the Restated
Principal Amount) or Original Issue Discount (or, if the Securities have been converted
into semi-annual cash pay notes pursuant to Section 10.01, accrued but unpaid interest)
when due, no Holder of a Security may pursue any remedy with respect to this Indenture or
the Securities unless:

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<PAGE> 47

      (1) the Holder previously gave the Trustee written notice stating
  that an Event of Default is continuing;

      (2) the Holders of at least 25%, in Principal Amount at Maturity of
  the outstanding Securities make a written request to the Trustee to pursue the remedy;

      (3) such Holder or Holders offer to the Trustee security or
  indemnity satisfactory to the Trustee against any loss, liability or expense;

      (4) the Trustee does not comply with the request within 60 days
  after receipt of the request and the offer of security or indemnity; and

      (5) the Holders of a majority in Principal Amount at Maturity of the
  outstanding Securities do not give the Trustee a direction inconsistent with the request
  during such 60-day period.

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

    SECTION 6.07.  Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder to receive
payment of Issue Price (or, if the Securities have been converted into semi-annual cash
pay notes pursuant to Section 10.01, the Restated Principal Amount) of and liquidated
damages and Original Issue Discount (or, if the Securities have been converted into
semi-annual cash pay notes pursuant to Section 10.01, accrued but unpaid interest) on the
Securities held by such Holder, on or after their Maturity, or to bring suit for the
enforcement of any such payment on or after their Maturity, shall not be impaired or
affected without the consent of such Holder.

    SECTION 6.08.  Collection Suit by Trustee. If an
Event of Default specified in Section 6.01(1), (2) or (3) occurs and is continuing,
the Trustee may recover judgment in its own name and as trustee of an express trust
against the Issuers for the whole amount then due and owing (together with interest on any
unpaid interest to the extent lawful) and the amounts provided for in Section 7.07.

    SECTION 6.09.  Trustee May File Proofs of Claim.
The Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the Holders allowed
in any judicial proceedings relative to any Issuer or any of its Subsidiaries, their
creditors or their property and, unless prohibited by law or applicable regulations, may
vote on behalf of the Holders in any election of a trustee in bankruptcy or other Person
performing similar functions, and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and its counsel, and any other amounts due the Trustee
under Section 7.07.

    SECTION 6.10.  Priorities. If the Trustee collects
any money or property pursuant to this Article 6, it shall pay out the money or property
in the following order:

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    FIRST: to the Trustee for amounts due under Section 7.07;

    SECOND: to Holders for amounts due and unpaid on the Securities for
the Principal Amount at Maturity (or, if the Securities have been converted to semi-annual
cash pay notes pursuant to Section 10.01, the Restated Principal Amount and interest),
ratably, and any liquidated damages without preference or priority of any kind, according
to the amounts due and payable on the Securities for the Principal Amount at Maturity (or,
if the Securities have been converted to semi-annual cash pay notes pursuant to Section
10.01, the Restated Principal Amount and interest) and any liquidated damages,
respectively; and

    THIRD: to the Issuers.

    The Trustee may fix a record date and payment date for any payment
to Holders pursuant to this Section. At least 15 days before such record date, the Trustee
shall mail to each Holder and each Issuer a notice that states the record date, the
payment date and amount to be paid.

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

    SECTION 6.12.  Waiver of Stay or Extension Laws.
None of the Issuers (to the extent it may lawfully do so) shall at any time insist upon,
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 each Issuer (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and
shall not hinder, delay or impede the execution of any power herein granted to the
Trustee, but shall suffer and permit the execution of every such power as though no such
law had been enacted.

ARTICLE 7

TRUSTEE

      SECTION 7.01.  Duties of Trustee. (a)  If an
Event of Default has occurred and is continuing, the Trustee shall exercise the rights and
powers vested in it by this Indenture and use the same degree of care and skill in its
exercise thereof as a prudent Person would exercise or use under the circumstances in the
conduct of such Person's own affairs.

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

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      (1) the 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 the Trustee; and

      (2) in the absence of bad faith on its part, the Trustee may
  conclusively rely, as to the truth of the statements and the correctness of the opinions
  expressed therein, upon certificates or opinions furnished to the Trustee and conforming
  to the requirements of this Indenture. However, the Trustee shall examine the certificates
  and opinions to determine whether or, not they conform to the requirements of this
  Indenture (but need not confirm or investigate the accuracy of mathematical calculations
  or other facts stated therein).

    (c) The Trustee may not be relieved from liability for its own
grossly negligent action, its own grossly negligent failure to act or its own willful
misconduct, except that:

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

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

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

    (d) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), (c) and (g) of this Section.

    (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Issuers.

    (f) Money held in trust by the Trustee need not be segregated from
funds except to the extent required by law.

    (g) No provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur financial liability in the performance of
any of its duties hereunder or in the exercise of any of its rights or powers.

    (h) Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be subject to the
provisions of this Section and to the provisions of the Trust Indenture Act.

    SECTION 7.02.  Rights of Trustee. (a)  The
Trustee may conclusively rely on any document believed by it to be genuine and to have
been signed or presented by the proper Person. The Trustee need not investigate any fact
or matter stated in the document.

      (b) Before the Trustee acts or refrains from acting, it may require
an Officers' Certificate or an Opinion of Counsel. The Trustee shall not be liable
for any action it takes or omits to take in good, faith in reliance on the Officers'
Certificate or Opinion of Counsel.

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    (c) The Trustee may act through agents or attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney appointed with due
care.

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

    (e) The Trustee may consult with counsel, and the advice or opinion
of counsel with respect to legal matters relating to this Indenture and the Securities,
shall be full and complete authorization and protection from liability in respect to any
action taken, omitted or suffered by it hereunder in good faith and in accordance with the
advice or opinion of such counsel.

    (f) The Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, debenture, note or other
paper or document.

    (g) 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.

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

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

    SECTION 7.03.  Individual Rights of Trustee. The
Trustee in its individual or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Issuers or their Affiliates with the same
rights it would have if it were not Trustee. Any Paying Agent, Registrar or co-paying
agent may do the same with like rights. However, the Trustee must comply with
Sections 7.10 and 7.11.

      SECTION 7.04.  Trustee's Disclaimer. The
Trustee shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for the Issuers
use of the proceeds from the Securities, and it shall not be responsible for any statement
in this Indenture, in the Securities, or in any document executed in connection with the
sale of the Securities, other than those set forth in the Trustee's certificate of
authentication.

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    SECTION 7.05.  Notice of Defaults. If a Default
occurs and is continuing and if it is actually known to a Trust Officer of the Trustee,
the Trustee shall mail to each Holder notice of the Default within 90 days after it
occurs. Except in the case of a Default in payment of Issue Price (or, if the Securities
have been converted into semi-annual cash pay notes pursuant to Section 10.01, the
Restated Principal Amount) of or Original Issue Discount (or, if the Securities have been
converted into semi-annual cash pay notes pursuant to Section 10.01, accrued but unpaid
interest) on any Security (including payments pursuant to the mandatory redemption
provisions of such Security, if any), the Trustee may withhold the notice if and so long
as a committee of its Trust Officers in good faith determines that withholding the notice
is in the interests of Holders.

    SECTION 7.06.  Reports by Trustee to Holder. As
promptly as practicable after each February 28 beginning with the February 28 following
the Closing Date, and in any event prior to April 30 in each year, the Trustee shall mail
to each Holder a brief report dated as of such February that complies with
Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b) of the Trust Indenture Act.

    A copy of each report at the time of its mailing to Holders shall be
filed with the SEC and each stock exchange (if any) on which the Securities are listed.
The Issuers agree to notify promptly the Trustee whenever the Securities become listed on
any stock exchange and of any delisting thereof.

      SECTION 7.07.  Compensation and Indemnity. Each of
the Issuers, jointly and severally, shall pay to the Trustee from time to time such
compensation for its services as the Issuers and the Trustee shall from time to time agree
in writing. The Trustee's compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Issuers, jointly and severally, shall
reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or
made by it, including costs of collection, in addition to the compensation for its
services. Such expenses shall include the reasonable compensation and expenses,
disbursements and advances of the Trustee's agents, counsel, accountants and experts.
Each Issuer, jointly and severally, shall indemnify the Trustee against any and all loss,
liability or expense (including reasonable attorneys' fees) incurred by or in
connection with the administration of this trust and the performance of its duties
hereunder. The Trustee shall notify the Issuers of any claim for which it may seek
indemnity promptly upon obtaining actual knowledge thereof; provided, however, that any
failure so to notify the Issuers shall not relieve any Issuer of its indemnity obligations
hereunder. The Issuers need not reimburse any expense or indemnify against any loss,
liability or expense incurred by an indemnified party through such party's own
willful misconduct, gross negligence or bad faith.

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

      The Issuers' payment obligations pursuant to this Section shall
survive the satisfaction or discharge of this Indenture, any rejection or termination of
this Indenture under any bankruptcy law or the resignation or removal of the Trustee. When
the Trustee incurs

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expenses after the occurrence of a Default specified in Section 6.01(8) or (9)
with respect to any Issuer, the expenses are intended to constitute expenses of
administration under the Bankruptcy Law.

    SECTION 7.08.  Replacement of Trustee. The Trustee
may resign at any time with respect to the Securities by so notifying the Issuers. The
Holders of a majority in Principal Amount at Maturity of the Securities may remove the
Trustee and may appoint a successor Trustee. The Issuers shall remove the Trustee if:

    (1) the Trustee fails to comply with Section 7.10;

    (2) the Trustee is adjudged bankrupt or insolvent;

    (3) a receiver or other public officer takes charge of the Trustee
or its property; or

    (4) the Trustee otherwise becomes incapable of acting.

    If the Trustee resigns, is removed by the Issuers or by the Holders
of a majority in Principal Amount at Maturity of the Securities and such Holders do not
reasonably promptly appoint a successor Trustee or if a vacancy exists in the office of
Trustee for any reason (the Trustee in such event being referred to herein as the retiring
Trustee), the issuers shall promptly appoint a successor Trustee.

    A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuers. Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and duties of the Trustee under this Indenture. The successor
Trustee shall mail a notice of its succession to Holders. The retiring Trustee shall
promptly transfer all property held by it as Trustee to the successor Trustee, subject to
the lien provided for in Section 7.07.

    If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee or the Holders of 10% in
Principal Amount at Maturity of the Securities may petition, at the expense of the
Issuers, any court of competent jurisdiction for the appointment of a successor Trustee.

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

      Notwithstanding the replacement of the Trustee pursuant to this
Section 7.08, the Issuers' obligations under Section 7.07 shall continue
for the benefit of the retiring Trustee.

    SECTION 7.09.  Successor Trustee by Merger. If the
Trustee consolidates with, merges or converts into, or transfers all or substantially all
its corporate-trust business or assets to, another corporation or banking association, the
resulting, surviving or transferee corporation without any further act shall be the
successor Trustee.

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    In case at the time such successor or successors by merger,
conversion or consolidation to the Trustee shall succeed to the trusts created by this
Indenture any of the Securities shall have been authenticated but not delivered, any such
successor to the Trustee may adopt the certificate of authentication of any predecessor
trustee, and deliver such Securities so authenticated; and if at that time any of the
Securities shall not have been authenticated, any such successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or in the
name of the successor to the Trustee; and in all such cases such certificates shall have
the full force which it is anywhere in the Securities or in this Indenture provided that
the certificate of the Trustee shall have.

    SECTION 7.10.  Eligibility; Disqualification. The
Trustee shall at all times satisfy the requirements of Trust Indenture Act
Section 310(a). The Trustee shall have a combined capital and surplus of at least
$100,000,000 as set forth in its most recent published annual report of condition. The
Trustee shall comply with Trust Indenture Act Section 310(b); provided, however, that
there shall be excluded from the operation of Trust Indenture Act Section 310(b)(1)
any indenture or indentures under which other securities or certificates of interest or
participation in other securities of any Issuer are outstanding if the requirements for
such exclusion set forth in Trust Indenture Act Section 310(b)(1) are met.

    SECTION 7.11.  Preferential Collection of Claims
Against Issuers. The Trustee shall comply with Trust Indenture Act
Section 311(a), excluding any creditor relationship listed in Trust Indenture Act
Section 311(b). A Trustee who has resigned or has been removed shall be subject to
Trust Indenture Act Section 311(a) to the extent indicated.

ARTICLE 8

DISCHARGE OF INDENTURE

    SECTION 8.01.  Discharge of Liability on Securities.
This Indenture shall cease to be of further effect (except as to any surviving rights of
registration of transfer or exchange of Securities herein expressly provided for), and the
Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

    (a) either

      (1) all Securities theretofore authenticated and delivered (other
  than (A) Securities which have been destroyed, lost or stolen and which have been replaced
  or paid as provided in Section 2.08 and (B) Securities for whose payment money has
  theretofore been deposited with the Trustee in trust or segregated and held in trust by
  the Issuers and thereafter repaid to the Issuers or otherwise discharged from such trust
  as provided in Section 10.02) have been delivered to the Trustee for cancellation; or

      (2) all such Securities not theretofore delivered to the Trustee for
  cancellation have become due and payable and the Issuers have deposited or caused to be
  deposited with the Trustee as trust funds in trust for that purpose an amount sufficient
  to pay and discharge the entire indebtedness evidenced by such Securities not theretofore
  delivered

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  to the Trustee for cancellation: Principal Amount at Maturity or Restated Principal
  amount and interest to the date of such deposit (in the case of Securities which have
  become due and payable) or Issue Price and accrued Original Issue Discount to Maturity, as
  the case may be;

    (b) the Issuers have paid or caused to be paid all other sums
payable hereunder by the Issuers; and

      (c) the Issuers have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have been
complied with.

      Notwithstanding clauses (a) and (b) above, the Issuers'
obligations in Sections 2.04, 2.05, 2.06, 2.08, 2.09, 7.07, 7.08, 10.03 and, if money
shall have been deposited with the Trustee pursuant to subclause (ii) of clause (a) of
this Section 8.01, shall survive until the Securities have been paid in full. Thereafter,
the Issuers' obligations in Sections 7.07 and 8.03 shall survive such
satisfaction and discharge.

    SECTION 8.02.  Application of Trust Money. The
Trustee shall hold in trust money deposited with it pursuant to Section 8.01. It shall
apply the deposited money through the Paying Agent and in accordance with this Indenture
to the payment of the principal and interest for whose payment such money has been
deposited with the Trustee.

    SECTION 8.03.  Repayment to Issuers. The Trustee
and the Paying Agent shall pay to the Issuers, upon written request therefor, any money
held by them for the payment of Principal Amount at Maturity or Restated Principal Amount
and interest, as the case may be, that remains unclaimed for two years, and, thereafter,
Holders entitled to the money must look to the Issuers for payment as general creditors.

ARTICLE 9

AMENDMENTS

    SECTION 9.01.  Without Consent of Holders. The
Issuers and the Trustee may amend this Indenture or the Securities without notice to or
consent of any Holder:

      (1) to cure any ambiguity or correct or supplement any defective or
  inconsistent provision contained in this Indenture or make any other changes in the
  provisions of this Indenture which the Issuers and the Trustee may deem necessary or
  desirable provided such amendment does not adversely affect the legal rights under this
  Indenture of the Holders;

      (2) to comply with Article 5;

      (3) to provide for uncertificated Securities in addition to or in
  place of certificated Securities; provided, however, that the uncertificated Securities
  are issued in registered form for purposes of Section 163(f) of the Code or in a
  manner such that the uncertificated Securities are described in Section 163(f)(2)(B)
  of the Code;

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      (4) to add guarantees or co-obligors with respect to the Securities
  or to secure the Securities;

      (5) to increase the Conversion Rate;

      (6) to add to the covenants of the Issuers for the benefit of the
  Holders to surrender any right or power herein conferred upon the Issuers;

      (7) to comply with any requirements of the SEC in connection with
  qualifying, or maintaining the qualification of, this Indenture under the Trust Indenture
  Act; or

      (8) to make any changes that would provide the Holders with any
  additional rights or benefits or that do not adversely affect the legal rights under this
  Indenture of any such Holder. 

    SECTION 9.02.  With Consent of Holders. The Issuers
and the Trustee may amend this Indenture or the Securities without notice to any Holder
but with the written consent of the Holders of at least a majority in Principal Amount at
Maturity of the Securities then outstanding (including consents obtained in connection
with a tender offer or exchange for the Securities). However, without the consent of each
Holder affected, an amendment may not:

      (1) except as provided in this Indenture, make any change in the
  manner or rate of accrual in connection with Original Issue Discount, reduce the yield to
  maturity referred to in the Securities, reduce the rate of interest referred to in Section
  10.01 upon the occurrence of a Tax Event, or extend the time for payment of interest, if
  any, on any Security;

      (2) reduce the Principal Amount at Maturity, Restated Principal
  Amount or the Issue Price of or extend the Stated Maturity of any Security;

      (3) reduce the Redemption Price, Purchase Price or Fundamental
  Change Repurchase Price of any Security;

      (4) make any Security payable in money or securities other than that
  stated in the Security;

      (5) make any change that adversely affects the right to convert any
  Security;

      (6) make any change that adversely affects the right to require the
  Issuers to purchase the Securities in accordance with the terms thereof and this
  Indenture;

      (7) impair the right of any Holder to institute suit for the
  enforcement of any payment of the Principal Amount at Maturity, Restated Principal Amount,
  the Issue Price or liquidated damages;

      (8) make any changes to the percentage in Principal Amount at
  Maturity of the outstanding Securities, the consent of whose Holders is required for any
  amendment, or the consent of whose Holders is required for any waiver (of compliance with
  certain

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  provisions of this Indenture or certain defaults hereunder and their consequences)
  provided for in this Indenture; or

      (9) make any change in Section 6.04 or 6.07 or the second
  sentence of this Section 9.02.

    It shall not be necessary for the consent of the Holders under this
Section to approve the particular form of any proposed amendment, but it shall be
sufficient if such consent approves the substance thereof. After an amendment under this
Section becomes effective, the Issuers shall mail to all affected Holders a notice briefly
describing such amendment. The failure to give such notice to all such Holders, or any
defect therein, shall not impair or affect the validity of an amendment under this
Section.

    SECTION 9.03.  Compliance with Trust Indenture Act.
Every amendment to this Indenture or the Securities shall comply with the Trust Indenture
Act as then in effect.

      SECTION 9.04.  Revocation and Effect of Consents and
Waivers. A consent to an amendment or a waiver by a Holder of a Security shall bind
the Holder and every subsequent Holder of that Security or portion of the Security that
evidences the same debt as the consenting Holder's Security, even if notation of the
consent or waiver is not made on the Security. However, any such Holder or subsequent
Holder may revoke the consent or waiver as to such Holder's Security or portion of
the Security if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective. After an amendment or waiver becomes effective, it
shall bind every Holder. An amendment or waiver becomes effective once both (i) the
requisite number of consents have been received by the Issuers or the Trustee and
(ii) such amendment or waiver has been executed by the Issuers and the Trustee.

    The Issuers may, but shall not be obligated to, fix a record date
for the purpose of determining the Holders entitled to give their consent or take any
other action described above or required or permitted to be taken pursuant to this
Indenture. If a record date is fixed, then notwithstanding the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to give such consent or to revoke any
consent previously given or to take any such action, whether or not such Persons continue
to be Holders after such record date. No such consent shall be valid or effective for more
than 120 days after such record date.

    SECTION 9.05.  Notation on or Exchange of Securities.
If an amendment changes the terms of a Security, the Trustee may require the Holder of the
Security to deliver it to the Trustee. The Trustee may place an appropriate notation on
the Security regarding the changed terms and return it to the Holder. Alternatively, if
the Issuers or the Trustee so determines, the Issuers in exchange for the Security shall
issue and the Trustee shall authenticate a new Security that reflects the changed terms.
Failure to make the appropriate notation or to issue a new Security shall not affect the
validity of such amendment.

    SECTION 9.06.  Trustee To Sign Amendments. The
Trustee shall sign any amendment authorized pursuant to this Article 9 if the amendment
does not affect the rights, duties, liabilities or immunities of the Trustee. If it does,
the Trustee may but need not sign it. In

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  signing such amendment the Trustee shall be entitled to receive indemnity satisfactory
to it and to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers' Certificate and an Opinion of Counsel stating that such
amendment is authorized or permitted by this Indenture and that such amendment is the
legal, valid and binding obligation of the Issuers enforceable against them in accordance
with its terms, subject to customary exceptions, and complies with the provisions hereof
(including Section 9.03).

    SECTION 9.07.  Payment for Consent. Neither the
Issuers nor any Affiliate of the Issuers shall, directly or indirectly, pay or cause to be
paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or
as an inducement to any consent, waiver or amendment of any of the terms or provisions of
this Indenture or the Securities unless such consideration is offered to be paid to all
Holders, ratably, that so consent, waive or agree to amend in the time frame set forth in
solicitation documents relating to such consent, waiver or agreement.

ARTICLE 10

SPECIAL TAX EVENT CONVERSION

    SECTION 10.01.  Optional Conversion to Semi-annual Cash
Pay Note Upon Tax Event. From and after (i) the date (the "Tax Event
Date") of the occurrence of a Tax Event and (ii) the date the Issuers exercise
their option set forth in this Section 10.01, whichever is later (the "Option
Exercise Date"), at the option of the Issuers, cash interest in lieu of future
Original Issue Discount shall accrue at the rate of 3.5% per annum on a restated principal
amount per $1,000 original Principal Amount at Maturity (the "Restated Principal
Amount") equal to the Issue Price plus Original Issue Discount accrued to the Option
Exercise Date and shall be payable semi-annually on February 1 and August 1 of each year
(each an "Interest Payment Date") to holders of record at the close of business
on January 16 and July 16 (each a "Regular Record Date") immediately preceding
such Interest Payment Date. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months and will accrue from the most recent date on which
interest has been paid or, if no interest has been paid, from the Option Exercise Date.
Within 15 days of the occurrence of a Tax Event, the Issuers shall deliver a written
notice of such Tax Event by facsimile and first-class mail to the Trustee and within 15
days of their exercise of such option the Issuers shall deliver a written notice of the
Option Exercise Date by facsimile and first-class mail to the Trustee and by first class
mail to the Holders of the Securities. From and after the Option Exercise Date,
(i) the Issuers shall be obligated to pay at Maturity or upon a Redemption Date,
Purchase Date or Fundamental Change Repurchase Date, in lieu of the Principal Amount at
Maturity of a Security, the Restated Principal Amount thereof plus accrued and unpaid
interest and (ii) "Issue Price and accrued Original Issue Discount,"
"Issue Price plus Original Issue Discount" or similar words, as used herein,
shall mean Restated Principal Amount plus accrued and unpaid interest with respect to any
Security. Securities authenticated and delivered after the Option Exercise Date may, and
shall if required by the Trustee, bear a notation in a form approved by the Trustee as to
the conversion of the Securities to semi-annual cash pay notes.

    SECTION 10.02.  Paying Agent To Hold Money in Trust.
Prior to 11 a.m. (New York City time) on any Interest Payment Date, the Issuers shall
deposit with the Paying Agent 

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(or if an Issuer or a Subsidiary of any Issuer is acting as Paying Agent, segregate and
hold in trust for the benefit of the Persons entitled thereto) a sum sufficient to pay
interest when due. The Issuers shall require each Paying Agent (other than the Trustee) to
agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal or interest on
the Securities and shall notify the Trustee of any default by the Issuers in making any
such payment. If an Issuer or a Subsidiary of any Issuer acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust fund. The
Issuers at any time may require a Paying Agent to pay all money held by it to the Trustee
and to account for any funds disbursed by the Paying Agent. Upon complying with this
Section, the Paying Agent shall have no further liability for the money delivered to the
Trustee.

    SECTION 10.03.  Holder Lists. The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Holders. If the Trustee is not the Registrar, the
Issuers shall furnish, or cause the Registrar to furnish, to the Trustee, in writing at
least five Business Days before each Interest Payment Date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of Holders.

    SECTION 10.04.  Payment of Interest; Interest Rights
Preserved. (a)  Interest on any Security that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security is registered at the close of business on the Regular Record Date for
such interest at the office or agency of the Company maintained for such purpose. Each
installment of interest on any Security shall be paid in same-day funds by transfer to an
account maintained by the Holder located inside the United States, provided that with
respect to any Holder, such Holder shall have furnished to the Paying Agent all required
wire payment instructions no later than the related Regular Record Date, or if no such
instructions have been furnished, by check payable to such Holder. In the case of a Global
Security, interest payable on any Interest Payment Date will be paid to the Depositary,
with respect to that portion of such Global Security held for its account by Cede &
Co. for the purpose of permitting such party to credit the interest received by it in
respect of such Global Security to the accounts of the beneficial owners thereof.

    (b) Except as otherwise specified with respect to the Securities,
any interest on any Security that is payable, but is not punctually paid or duly provided
for, within 30 days following on any Interest Payment Date (herein called "Defaulted
Interest"), shall forthwith cease to be payable to the registered Holder thereof on
the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted
Interest may be paid by the Issuers, as their election in each case, as provided in clause
(1) or (2) below:

      (1) The Issuers may elect to make payment of any Defaulted Interest
  to the Persons in whose names the Securities are registered at the close of business on a
  date (the "Special Record Date") for the payment of such Defaulted Interest,
  which shall be fixed in the following manner. The Issuers shall notify the Trustee in
  writing of the amount of Defaulted Interest proposed to be paid on each Security and the
  date of the proposed payment (which shall not be less than 20 days after such notice is
  received by the Trustee), and at the same time the Issuers shall deposit with the Trustee
  an amount of 

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  money equal to the aggregate amount proposed to be paid in respect of such Defaulted
  Interest or shall make arrangements satisfactory to the Trustee for such deposit 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 the Trustee shall fix a Special Record Date for the payment of such
  Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to
  the date of the proposed payment and not less than 10 days after the receipt by the
  Trustee of the notice of the proposed payment. The Trustee shall promptly notify the
  Issuers of such Special Record Date and, in the name and at the expense of the Issuers,
  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
  Securities at his address as it appears on the list of Holders maintained pursuant to this
  Indenture 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
  Securities are registered at the close of business on such Special Record Date and shall
  no longer be payable pursuant to the following clause (2).

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

    Subject to the foregoing provisions, 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.

ARTICLE 11

CONVERSION

Section 11.01.  Conversion Privilege. A Holder of a Security may
convert such Security into Common Stock at any time during the period stated in the
Securities. The number of shares of Common Stock issuable upon conversion of a Security
per $1,000 of Principal Amount at Maturity thereof (the "Conversion Rate") shall
be that set forth in the Securities, subject to adjustment as herein set forth.

    A Holder may convert a portion of the Principal Amount at Maturity
of a Security if the portion is $1,000 or an integral multiple of $1,000. Provisions of
this Indenture that apply to conversion of all of a Security also apply to conversion of a
portion of a Security.

    "Average Quoted Price" means the average of the Sale
Prices of the Common Stock for the shorter of

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  (i)     30 consecutive trading days ending on the last full trading
  day prior to the Time of Determination with respect to the rights, warrants or options or
  distribution in respect of which the Average Quoted Price is being calculated, or

  (ii)     the period (x) commencing on the date next succeeding
  the first public announcement of (a) the issuance of rights, warrants or options or
  (b) the distribution, in each case, in respect of which the Average Quoted Price is
  being calculated and (y) proceeding through the last full trading day prior to the
  Time of Determination with respect to the rights, warrants or options or distribution in
  respect of which the Average Quoted Price is being calculated (excluding days within such
  period, if any, which are not trading days), or

  (iii)     the period, if any, (x) commencing on the date next
  succeeding the Ex-Dividend Time with respect to the next preceding (a) issuance of
  rights, warrants or options or (b) distribution, in each case, for which an
  adjustment is required by the provisions of Section 11.06(4), 11.07 or 11.08 and
  (y) proceeding through the last full trading day prior to the Time of Determination
  with respect to the rights, warrants or options or distribution in respect of which the
  Average Quoted Price is being calculated (excluding days within such period, if any, which
  are not trading days).

    In the event that the Ex-Dividend Time (or in the case of a
subdivision, combination or reclassification, the effective date with respect thereto),
with respect to a dividend, subdivision, combination or reclassification to which
Section 11.06(1), (2), (3) or (5) applies, occurs during the period applicable for
calculating "Average Quoted Price" pursuant to the definition in the preceding
sentence, "Average Quoted Price" shall be calculated for such period in a manner
determined by the Board of Directors of the Company to reflect the impact of such
dividend, subdivision, combination or reclassification on the Sale Price of the Common
Stock during such period.

    "Time of Determination" means the time and date of the
earlier of (i) the determination of shareholders entitled to receive rights, warrants
or options or a distribution, in each case, to which Section 11.07 or 11.08 applies
and (ii) the time ("Ex-Dividend Time") immediately prior to the
commencement of "ex-dividend" trading for such rights, warrants or options or
distribution on the New York Stock Exchange or such other national or regional exchange or
market on which the Common Stock is then listed or quoted.

    SECTION 11.02.  Conversion Procedure. To convert a
Security a Holder must satisfy the requirements set forth in the Securities. The date on
which the Holder satisfies all those requirements is the conversion date (the
"Conversion Date"). As soon as practicable after the Conversion Date, the
Company shall deliver to the Holder, through the Conversion Agent, a certificate for the
number of full shares of Common Stock issuable upon the conversion and cash in lieu of any
fractional share determined pursuant to Section 11.03. Prior to the Conversion Date,
a Holder of a Security shall have no rights as a shareholder with respect to the shares of
Common Stock into which such Security is convertible. The Person in whose name the
certificate is registered shall be treated as a shareholder of record on and after the
Conversion Date; provided, however, that no surrender of a Security on any date when the
stock transfer books of the Company shall be closed shall be effective to constitute the
Person or Persons 

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entitled to receive the shares of Common Stock upon such conversion as the record
holder or holders of such shares of Common Stock on such date, but such surrender shall be
effective to constitute the Person or Persons entitled to receive such shares of Common
Stock as the record holder or holders thereof for all purposes at the close of business on
the next succeeding day on which such stock transfer books are open; such conversion shall
be at the Conversion Rate in effect on the date that such Security shall have been
surrendered for conversion, as if the stock transfer books of the Company had not been
closed. Upon conversion of a Security, such Person shall no longer be a Holder of such
Security and such Security shall be cancelled and no longer outstanding.

    No payment or adjustment will be made for accrued Original Issue
Discount, unpaid interest, liquidated damages, dividends on, or other distributions with
respect to, any converted Security or Common Stock except as provided in this Article 11.
On conversion of a Security, that portion of accrued Original Issue Discount (or interest,
if the Securities have been converted into semi-annual cash pay notes pursuant to
Section 10.01) attributable to the period from the Issue Date (or, if the Issuers
have exercised the option provided for in Section 10.01, the later of (x) the
date of such exercise and (y) the date on which interest was last paid) of the
Security through the Conversion Date with respect to the converted Security shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in full to the
Holder thereof through delivery of the Common Stock (together with the cash payment, if
any, in lieu of fractional shares) in exchange for the Security being converted pursuant
to the provisions hereof; and the fair market value of such shares of Common Stock
(together with any such cash payment in lieu of fractional shares) shall be treated as
issued, to the extent thereof, first in exchange for Original Issue Discount (or interest,
if the Securities have been converted into semi-annual cash pay notes pursuant to Section
10.01) accrued through the Conversion Date, and the balance, if any, of such fair market
value of such Common Stock (and any such cash payment) shall be treated as issued in
exchange for the Issue Price of the Security being converted pursuant to the provisions
hereof.

    If the Holder converts more than one Security at the same time, the
number of shares of Common Stock issuable upon the conversion shall be based on the total
Principal Amount at Maturity of the Securities converted.

    If the last day on which a Security may be converted is a Legal
Holiday, the Security may be surrendered on the next succeeding day that is not a Legal
Holiday.

    Upon surrender of a Security that is converted in part, the Issuers
shall execute, and the Trustee shall authenticate and deliver to the Holder, a new
Security in an authorized denomination equal in Principal Amount at Maturity to the
unconverted portion of the Security surrendered.

    SECTION 11.03.  Fractional Shares. The Company will
not issue a fractional share of Common Stock upon conversion of a Security. Instead, the
Issuers will deliver cash for the current market value of the fractional share. The
current market value of a fractional share shall be determined, to the nearest 1/1,000th
of a share, by multiplying the Sale Price on the trading day immediately preceding the
Conversion Date by the fractional amount and rounding the product to the nearest whole
cent.

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      SECTION 11.04.  Taxes on Conversion. If a Holder
converts a Security, the Issuers shall pay any documentary, stamp or similar issue or
transfer tax due on the issue of shares of Common Stock upon the conversion. However, the
Holder shall pay any such tax which is due because the Holder requests the shares to be
issued in a name other than the Holder's name. The Conversion Agent may refuse to
deliver the certificates representing the Common Stock being issued in a name other than
the Holder's name until the Conversion Agent receives a sum that the Issuers deem to
be sufficient to pay any tax which will be due because the shares are to be issued in a
name other than the Holder's name. Nothing herein shall preclude any tax withholding
required by law or regulations.

    SECTION 11.05.  Company to Provide Stock. The
Company shall, prior to issuance of any Securities under this Article 11, and from time to
time as may be necessary, reserve out of its authorized but unissued or treasury Common
Stock a sufficient number of shares of Common Stock to permit the conversion of the
Securities.

    All shares of Common Stock delivered upon conversion of the
Securities shall be newly issued shares or treasury shares, shall be duly authorized and
validly issued, fully paid and nonassessable, and shall be free from preemptive rights and
free of any lien or adverse claim.

    The Company will endeavor promptly to comply with all federal and
state securities laws regulating the offer and delivery of shares of Common Stock upon
conversion of Securities, if any, including the addition of any and all restrictive
legends that are required to appear on the face of the Common Stock, and will list or
cause to have quoted such shares of Common Stock on each national securities exchange or
in the over-the-counter market or such other market on which the Common Stock is then
listed or quoted.

    SECTION 11.06.  Adjustment for Change In Capital Stock.
If, after the Issue Date of the Securities, the Company:

      (1) pays a dividend or makes a distribution on its Common Stock in
  shares of its Common Stock;

      (2) subdivides its outstanding shares of Common Stock into a greater
  number of shares;

      (3) combines its outstanding shares of Common Stock into a smaller
  number of shares;

      (4) pays a dividend or makes a distribution on its Common Stock in
  shares of its Capital Stock (other than Common Stock or rights, warrants or options for
  its Capital Stock); or

      (5) issues by reclassification of its Common Stock any shares of its
  Capital Stock (other than rights, warrants or options for its Capital Stock),

then the Conversion Rate in effect immediately prior to such action shall be adjusted
so that the Holder of a Security thereafter converted may receive the number of shares of
Capital Stock of 

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the Company which such Holder would have owned immediately following such action if
such Holder had converted the Security immediately prior to such action.

    The adjustment shall become effective immediately after the record
date in the case of a dividend or distribution and immediately after the effective date in
the case of a subdivision, combination or reclassification.

    If after an adjustment a Holder of a Security upon conversion of
such Security may receive shares of two or more classes of Capital Stock of the Company,
the Conversion Rate shall thereafter be subject to adjustment upon the occurrence of an
action taken with respect to any such class of Capital Stock as is contemplated by this
Article 11 with respect to the Common Stock, on terms comparable to those applicable to
Common Stock in this Article 11.

    SECTION 11.07.  Adjustment for Rights Issue. If
after the Issue Date of the Securities, the Company distributes any rights, warrants or
options to all holders of its Common Stock entitling them, for a period expiring within 60
days after the record date for such distribution, to subscribe for or purchase shares of
Common Stock at a price per share less than the Sale Price as of the Time of
Determination, the Conversion Rate shall be adjusted, subject to the provisions of the
last paragraph of this Section 11.07, in accordance with the formula 

	R' =  
	    R x (O + N)    

    (O + (N x P) / M)

where:

      R' = the adjusted Conversion Rate.

    R = the current Conversion Rate.

    O = the number of shares of Common Stock outstanding on the record
date for the distribution to which this Section 11.07 is being applied.

    N = the number of additional shares of Common Stock offered pursuant
to the distribution.

    P = the offering price per share of the additional shares.

    M = the Average Quoted Price, minus, in the case of (i) a
distribution to which Section 11.06(4) applies or (ii) a distribution to which
Section 11.08 applies, for which, in each case, (x) the record date shall occur
on or before the record date for the distribution to which this Section 11.07 applies
and (y) the Ex-Dividend Time shall occur on or after the date of the Time of
Determination for the distribution to which this Section 11.07 applies, the fair
market value (on the record date for the distribution to which this Section 11.07
applies) of the

      (1) Capital Stock of the Company distributed in respect of each
  share of Common Stock in such Section 11.06(4) distribution and

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      (2) assets of the Company or debt securities or any rights, warrants
  or options to purchase securities of the Company distributed in respect of each share of
  Common Stock in such Section 11.08 distribution.

    The Board of Directors shall determine fair market values for the
purposes of this Section 11.07.

    The adjustment shall become effective immediately after the record
date for the determination of shareholders entitled to receive the rights, warrants or
options to which this Section 11.07 applies. If all of the shares of Common Stock
subject to such rights, warrants or options have not been issued when such rights,
warrants or options expire, then the Conversion Rate shall promptly be readjusted to the
Conversion Rate which would then be in effect had the adjustment upon the issuance of such
rights, warrants or options been made on the basis of the actual number of shares of
Common Stock issued upon the exercise of such rights, warrants or options.

      No adjustment shall be made under this Section 11.07 if the
application of the formula stated above in this Section 11.07 would result in a value
of R' that is equal to or less than the value of R.

    SECTION 11.08.  Adjustment for Other Distributions.
If, after the Issue Date of the Securities, the Company distributes to all holders of its
Common Stock any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Company (including securities or cash, but excluding
(x) distributions of Capital Stock referred to in Section 11.06 and
distributions of rights, warrants or options referred to in Section 11.07 and
(y) cash dividends or other cash distributions that are paid out of current or
retained earnings or earnings retained in the business as shown on the books of the
Company unless such cash dividends or other cash distributions are Extraordinary Cash
Dividends) the Conversion Rate shall be adjusted, subject to the provisions of the last
paragraph of this Section 11.08, in accordance with the formula:

  	
        
R' = 

      	R x M

 M - F

  

where:

        R' = the adjusted Conversion Rate.

    R = the current Conversion Rate.

    M = the Average Quoted Price, minus, in the case of a distribution
to which Section 3.06(4) applies, for which (i) the record date shall occur on
or before the record date for the distribution to which this Section 11.08 applies
and (ii) the Ex-Dividend Time shall occur on or after the date of the Time of
Determination for the distribution to which this Section 11.08 applies, the fair
market value (on the record date for the distribution to which this Section 11.08
applies) of any Capital Stock of the Company distributed in respect of each share of
Common Stock in such Section 11.06(4) distribution.

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    F = the fair market value (on the record date for the distribution
to which this Section 11.08 applies) of the assets, securities, rights, warrants or
options to be distributed in respect of each share of Common Stock in the distribution to
which this Section 11.08 is being applied (including, in the case of cash dividends
or other cash distributions giving rise to an adjustment, all such cash distributed
concurrently).

    The Board of Directors shall determine fair market values for the
purposes of this Section 11.08.

    The adjustment shall become effective immediately after the record
date for the determination of shareholders entitled to receive the distribution to which
this Section 11.08 applies.

    For purposes of this Section 11.08, the term
"Extraordinary Cash Dividend" shall mean any cash dividend with respect to the
Common Stock the amount of which, together with the aggregate amount of cash dividends on
the Common Stock to be aggregated with such cash dividend in accordance with the
provisions of this paragraph, equals or exceeds the threshold percentage set forth in item
(i) below. For purposes of item (i) below, the "Measurement Period"
with respect to a cash dividend on the Common Stock shall mean the 365 consecutive day
period ending on the date prior to the Ex-Dividend Time with respect to such cash
dividend, and the "Relevant Cash Dividends" with respect to a cash dividend on
the Common Stock shall mean the cash dividends on the Common Stock with Ex-Dividend Times
occurring in the Measurement Period.

      (i) If, upon the date prior to the Ex-Dividend Time with respect a
  cash dividend on the Common Stock, the aggregate amount of such cash dividend together
  with the amounts of all Relevant Cash Dividends equals or exceeds on a per share basis 10%
  of the Sale Price of the Common Stock on the last trading day preceding the date of
  declaration by the Board of Directors of the cash dividend with respect to which this
  provision is being applied, then such cash dividend together with all Relevant Cash
  Dividends, shall be deemed to be an Extraordinary Cash Dividend and for purposes of
  applying the formula set forth above in this Section 11.08, the value of
  "F" shall be equal to (y) the aggregate amount of such cash dividend
  together with the amount of all Relevant Cash Dividends, minus (z) the aggregate
  amount of all Relevant Cash Dividends for which a prior adjustment in the Conversion Rate
  was previously made under this Section 11.08.

      In making the determinations required by item (i) above, the
  amount of cash dividends paid on a per share basis and the amount of any Relevant Cash
  Dividends specified in item (i) above, shall be appropriately adjusted to reflect the
  occurrence during such period of any event described in Section 11.06.

    In the event that, with respect to any distribution to which this
Section 11.08 would otherwise apply, the difference "M-F" as defined in the
above formula is less than $1.00 or "F" is equal to or greater than
"M", then the adjustment provided by this Section 11.08 shall not be made
and in lieu thereof the provisions of Section 11.14 shall apply to such distribution.

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    SECTION 11.09.  When Adjustment May Be Deferred. No
adjustment in the Conversion Rate need be made unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Rate. Any adjustments that are not
made shall be carried forward and taken into account in any subsequent adjustment.

    All calculations under this Article 11 shall be made to the nearest
cent or to the nearest 1/1,000th of a share, as the case may be.

    SECTION 11.10.  When No Adjustment Required. No
adjustment need be made for a transaction referred to in Section 11.06, 11.07, 11.08
or 11.14 if Holders are to participate in the transaction on a basis and with notice that
the Board of Directors of the Company determines to be fair and appropriate in light of
the basis and notice on which holders of Common Stock participate in the transaction. Such
participation by Holders may include participation upon conversion provided that an
adjustment shall be made at such time as the Holders are no longer entitled to
participate.

    No adjustment need be made for rights to purchase Common Stock
pursuant to a Company plan for reinvestment of dividends or interest.

    No adjustment need be made for a change in the par value or no par
value of the Common Stock.

    To the extent the Securities become convertible pursuant to this
Article 11 into cash, no adjustment need be made thereafter as to the cash. Interest will
not accrue on the cash.

        SECTION 11.11.  Notice of Adjustment. Whenever the
Conversion Rate is adjusted, the Issuers shall promptly mail to Holders by first-class
mail a notice of the adjustment. The Issuers shall file with the Trustee and the
Conversion Agent such notice and a certificate from the Company's independent public
accountants briefly stating the facts requiring the adjustment and the manner of computing
it. The certificate shall be conclusive evidence that the adjustment is correct. Neither
the Trustee nor any Conversion Agent shall be under any duty or responsibility with
respect to any such certificate except to exhibit the same to any Holder desiring
inspection thereof.

    SECTION 11.12.  Voluntary Increase. The Issuers
from time to time may increase the Conversion Rate by any amount for any period of time.
Whenever the Conversion Rate is increased, the Issuers shall mail to Holders by
first-class mail and file with the Trustee and the Conversion Agent a notice of the
increase. The Issuers shall mail the notice at least 15 days before the date the increased
Conversion Rate takes effect. The notice shall state the increased Conversion Rate and the
period it will be in effect.

    A voluntary increase of the Conversion Rate does not change or
adjust the Conversion Rate otherwise in effect for purposes of Section 11.06, 11.07
or 11.08.

    SECTION 11.13.  Notice of Certain Transactions. If:

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      (1) the Company takes any action that would require an adjustment in
  the Conversion Rate pursuant to Section 11.06, 11.07 or 11.08 (unless no adjustment
  is to occur pursuant to Section 11.10); or

      (2) there is a liquidation or dissolution of the Company;

then the Issuers shall mail to Holders by first-class mail and file with the Trustee
and the Conversion Agent a notice stating the proposed record date for a dividend or
distribution or the proposed effective date of a subdivision, combination,
reclassification, consolidation, merger, binding share exchange, transfer, liquidation or
dissolution. The Issuers shall file and mail the notice at least 15 days before such date.
Failure to file or mail the notice or any defect in it shall not affect the validity of
the transaction.

    SECTION 11.14.  Reorganization of Company; Special
Distributions. If the Company is a party to a transaction subject to Section 5.01
(other than a sale of all or substantially all of the assets of the Company in a
transaction in which the holders of Common Stock immediately prior to such transaction do
not receive securities, cash or other assets of the Company or any other Person) or a
merger or binding share exchange which reclassifies or changes its outstanding Common
Stock, the Person obligated to deliver securities, cash or other assets upon conversion of
Securities shall enter into a supplemental indenture. If the issuer of securities
deliverable upon conversion of Securities is an Affiliate of the Successor Company, that
issuer shall join in the supplemental indenture.

    The supplemental indenture shall provide that the Holder of a
Security may convert it into the kind and amount of securities, cash or other assets which
such Holder would have received immediately after the consolidation, merger, binding share
exchange or transfer if such Holder had converted the Security immediately before the
effective date of the transaction, assuming (to the extent applicable) that such Holder
(i) was not a constituent Person or an Affiliate of a constituent Person to such
transaction; (ii) made no election with respect thereto; and (iii) was treated
alike with the plurality of non-electing Holders. The supplemental indenture shall provide
for adjustments which shall be as nearly equivalent as may be practical to the adjustments
provided for in this Article 11. The Successor Company shall mail to Holders a notice
briefly describing the supplemental indenture.

    If this Section 11.14 applies, neither Section 11.06 nor
Section 11.07 applies.

    If the Company makes a distribution to all holders of its Common
Stock of any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Company that, but for the provisions of the last paragraph of
Section 11.08, would otherwise result in an adjustment in the Conversion Rate
pursuant to the provisions of Section 11.08, then, from and after the record date for
determining the holders of Common Stock entitled to receive the distribution, a Holder of
a Security that converts such Security in accordance with the provisions of this Indenture
shall upon such conversion be entitled to receive, in addition to the shares of Common
Stock into which the Security is convertible, the kind and amount of securities, cash or
other assets comprising the distribution that such Holder would have received if such
Holder had converted the Security immediately prior to the record date for determining the
holders of Common Stock entitled to receive the distribution.

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    SECTION 11.15.  Company Determination Final. Any
determination that the Company or the Board of Directors of the Company must make pursuant
to Section 11.03, 11.06, 11.07, 11.08, 11.09, 11.10, 11.14 or 11.17 is conclusive.

        SECTION 11.16.  Trustee's Adjustment Disclaimer.
The Trustee has no duty to determine when an adjustment under this Article 11 should be
made, how it should be made or what it should be. The Trustee has no duty to determine
whether a supplemental indenture under Section 11.14 need be entered into or whether
any provisions of any supplemental indenture are correct. The Trustee shall not be
accountable for and makes no representation as to the validity or value of any securities
or assets issued upon conversion of Securities. The Trustee shall not be responsible for
the Issuers' failure to comply with this Article 11. Each Conversion Agent shall have
the same protection under this Section 11.16 as the Trustee.

    SECTION 11.17.  Simultaneous Adjustments. In the
event that this Article 11 requires adjustments to the Conversion Rate under more than one
of Sections 11.06(4), 11.07 or 11.08, and the record dates for the distributions
giving rise to such adjustments shall occur on the same date, then such adjustments shall
be made by applying, first, the provisions of Section 11.06, second, the provisions
of Section 11.08 and, third, the provisions of Section 11.07.

    SECTION 11.18.  Successive Adjustments. After an
adjustment to the Conversion Rate under this Article 11, any subsequent event requiring an
adjustment under this Article 11 shall cause an adjustment to the Conversion Rate as so
adjusted.

    SECTION 11.19.  Rights Issued in Respect of Common
Stock Issued Upon Conversion. Each share of Common Stock issued upon conversion of
Securities pursuant to this Article 11 shall be entitled to receive the appropriate number
of common stock or preferred stock purchase rights, as the case may be (the
"Rights"), if any, and the certificates representing the Common Stock issued
upon such conversion shall bear such legends, if any, in each case as may be provided by
the terms of any shareholder rights agreement adopted by the Company, as the same may be
amended from time to time (in each case, a "Rights Agreement"). Provided that
such Rights Agreement requires that each share of Common Stock issued upon conversion of
Securities at any time prior to the distribution of separate certificates representing the
Rights be entitled to receive such Rights, then, notwithstanding anything else to the
contrary in this Article 11, there shall not be any adjustment to the Conversion Rate as a
result of the issuance of Rights, the distribution of separate certificates representing
the Rights, the exercise or redemption of such Rights in accordance with any such Rights
Agreement, or the termination or invalidation of such Rights.

    SECTION 11.20.  Restriction on Common Stock Issued Upon
Conversion.

    Shares of Common Stock to be issued upon conversion of Securities
prior to the effectiveness of a Shelf Registration shall be physically delivered in
certificated form to the holders converting such Securities and the certificate
representing such shares of Common Stock will bear a legend substantially to the following
effect:

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  "These Securities have not been registered under the Securities Act of 1933.
  Further offers or sales of these Securities are subject to certain restrictions, as set
  forth in the Offering Memorandum dated January 25, 2001 relating to these
  Securities."

unless removed in accordance with Section 11.20(b).

    (a) If (i) shares of Common Stock to be issued upon conversion of a
Security prior to the effectiveness of a Shelf Registration are to be registered in a name
other than that of the holder of such Security or (ii) shares of Common Stock represented
by a certificate bearing the above legend are transferred subsequently by such holder,
then, unless the Shelf Registration has become effective and such shares are being
transferred pursuant to the Shelf Registration, the holder must deliver to the transfer
agent for the Common Stock a certificate in substantially the form of Exhibit F as to
compliance with the restrictions on transfer applicable to such shares of Common Stock and
neither the transfer agent nor the registrar for the Common Stock shall be required to
register any transfer of such Common Stock not so accompanied by a properly completed
certificate.

    (b) Except in connection with a Shelf Registration, if certificates
representing shares of Common Stock are issued upon the registration of transfer, exchange
or replacement of any other certificate representing shares of Common Stock bearing the
above legend, or if a request is made to remove such legend from certificates representing
shares of Common Stock, the certificates so issued shall bear the above legend, or the
above legend shall not be removed, as the case may be, unless there is delivered to the
Company such satisfactory evidence, which, in the case of a transfer made pursuant to Rule
144 under the Securities Act, may include an opinion of counsel licensed to practice in
the State of New York, as may be reasonably required by the Company, that neither the
legend nor the restrictions on transfer set forth therein are required to ensure that
transfers thereof comply with the provisions of Rule 144A, Rule 144 or Regulation S under
the Securities Act or that such shares of Common Stock are securities that are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon
provision to the Company of such reasonably satisfactory evidence, the Company shall cause
the transfer agent for the Common Stock to countersign and deliver certificates
representing shares of Common Stock that do not bear the legend.

ARTICLE 12

MISCELLANEOUS

    SECTION 12.01.  Trust Indenture Act Controls. If
any provision of this Indenture limits, qualifies or conflicts with another provision
which is required to be included in this Indenture by the Trust Indenture Act, the
required provision shall control.

    SECTION 12.02.  Notices. Any notice or
communication shall be in writing and delivered in person or mailed by first-class mail
addressed as follows:

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  If to the Issuers:

  Jones Apparel Group, Inc.

  1411 Broadway

  New York, New York 10018

  Attention: Ira M. Dansky, Esq.

  If to the Trustee:

  The Bank of New York

  101 Barclay Street, Floor 21W

  New York, New York 10286

  Attention: Corporate Trust Administration

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

        Any notice or communication mailed to a Holder shall be mailed to
the Holder at the Holder's address as it appears on the registration books of the
Registrar and shall be sufficiently given if so mailed within the time prescribed.

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

    SECTION 12.03.  Communication by Holders with Other
Holders. Holders may communicate pursuant to Trust Indenture Act Section 312(b)
with other Holders with respect to their rights under this Indenture or the Securities.
The Issuers, the Trustee, the Registrar and anyone else shall have the protection of Trust
Indenture Act Section 312(c).

    SECTION 12.04.  Certificate and Opinion as to
Conditions Precedent. Upon any request or application by any Issuer to the Trustee to
take or refrain from taking any action under this Indenture, such Issuer shall furnish to
the Trustee:

      (1) an Officers' Certificate of such Issuer in form and
  substance reasonably satisfactory to the Trustee stating that, in the opinion of the
  signers, all conditions precedent, if any, provided for in this Indenture relating to the
  proposed action have been complied with; and

      (2) an Opinion of Counsel in form and substance reasonably
  satisfactory to the Trustee stating that, in the opinion of such counsel, all such
  conditions precedent have been complied with.

    SECTION 12.05.  Statements Required in Certificate or
Opinion. Each certificate or opinion with respect to compliance with a covenant or
condition provided for in this Indenture shall include:

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

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

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

      (4) a statement as to whether or not, in the opinion of such
  individual, such covenant or condition has been complied with.

    SECTION 12.06.  When Securities Disregarded. In
determining whether the Holders of the required Principal Amount at Maturity of Securities
have concurred in any direction, waiver or consent, Securities owned by any Issuer, or by
any Person directly or indirectly controlling or controlled by or under direct or indirect
common control with any Issuer shall be disregarded and deemed not to be outstanding,
except that, for the purpose of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Securities which the Trustee knows
are so owned shall be so disregarded. Subject to the foregoing, only Securities
outstanding at the time shall be considered in any such determination.

    SECTION 12.07.  Rules by Trustee, Paying Agent and
Registrar. The Trustee may make reasonable rules for action by or a meeting of
Holders. The Registrar and the Paying Agent may make reasonable rules for their functions.

    SECTION 12.08.  Legal Holidays. A "Legal
Holiday" is a Saturday, Sunday or other day on which banking institutions in New York
State are authorized or required by law to close. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period. If a regular record date is a Legal
Holiday, the record date shall not be affected.

    SECTION 12.09.  Governing Law. THIS INDENTURE AND
THE SECURITIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW
TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

    SECTION 12.10.  No Recourse Against Others. A
director, officer, employee or shareholder, as such, of any Issuer shall not have any
liability for any obligations of such Issuer under the Securities or this Indenture or for
any claim based on, in respect of or by reason of such obligations or their creation. By
accepting a Security, each Holder shall waive and release all such liability. The waiver
and release shall be part of the consideration for the issuance of the Securities.

71

<PAGE> 72

    SECTION 12.11.  Successors. All agreements of each
Issuer in this Indenture and the Securities shall bind its successors. All agreements of
the Trustee in this Indenture shall bind its successors.

    SECTION 12.12.  Multiple 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. One signed copy of the Indenture is
enough to prove this Indenture.

    SECTION 12.13.  Table of Contents; Headings. The
table of contents, cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended to be
considered a part hereof and shall not modify or restrict any of the terms or provisions
hereof.

    SECTION 12.14.  Severability. If any provision in
this Indenture is deemed unenforceable, it shall not affect the validity or enforceability
of any other provision set forth herein, or of the Indenture as a whole.

[Rest of page intentionally left blank]

72

 <PAGE> 73

    IN WITNESS WHEREOF, the parties have caused this Indenture to be
duly executed as of the date first written above.

  		
      JONES APPAREL GROUP, INC.

      By: /s/ Ira M. Dansky 

      Name: Ira M. Dansky

      Title: Secretary

      JONES APPAREL GROUP HOLDINGS, INC.

      By: /s/ Ira M. Dansky 

      Name: Ira M. Dansky

      Title: President

      JONES APPAREL GROUP USA, INC.

      By: /s/ Ira M. Dansky 

      Name: Ira M. Dansky

      Title: Secretary

      NINE WEST GROUP INC.

      By: /s/ Ira M. Dansky 

      Name: Ira M. Dansky

      Title: Executive Vice President

      THE BANK OF NEW YORK, as Trustee

      By: /s/ Terence Rawlins 

      Name: Terence Rawlins

      Title: Assistant Vice President

    

    

73

<PAGE> A-1

EXHIBIT A

[FORM OF FACE OF SECURITY]

FOR PURPOSES OF SECTIONS 1273 AND 1275 OF THE INTERNAL REVENUE CODE, THE ISSUE
PRICE AND AMOUNT OF ORIGINAL ISSUE DISCOUNT WITH RESPECT TO EACH $1,000 OF PRINCIPAL
AMOUNT AT MATURITY OF THIS SECURITY ARE $499.60 AND $500.40, RESPECTIVELY, THE ISSUE DATE
IS FEBRUARY 1, 2001 AND THE YIELD TO MATURITY IS 3.5%.

[INCLUDE IF SECURITY IS A RESTRICTED SECURITY -- THESE SECURITIES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. FURTHER OFFERS OR SALES OF THESE SECURITIES
ARE SUBJECT TO CERTAIN RESTRICTIONS, AS SET FORTH IN THE OFFERING MEMORANDUM DATED JANUARY
25, 2001 RELATING TO THESE SECURITIES.

THE HOLDER OF THIS SECURITY IS SUBJECT TO, AND ENTITLED TO THE BENEFITS OF, A
REGISTRATION RIGHTS AGREEMENT, DATED AS OF FEBRUARY 1, 2001, ENTERED INTO BY THE ISSUERS
FOR THE BENEFIT OF CERTAIN HOLDERS FROM TIME TO TIME OF SECURITIES.]

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

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY ("DTC"), A NEW YORK CORPORATION, TO THE ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN
THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

A-1

<PAGE> A-2

  	JONES APPAREL GROUP, INC.,

    JONES APPAREL GROUP HOLDINGS, INC.,

    JONES APPAREL GROUP USA, INC., and

    NINE WEST GROUP INC.

    Zero Coupon Convertible Senior Note Due 2021

	CUSIP No.  	$___________ Principal Amount at Maturity
	No. ____	
	Issue Date: February 1, 2001	Original Issue Discount: $500.40
	Issue Price: $499.60

    (for each $1,000 Principal Amount at Maturity)	(for each $1,000 Principal Amount at Maturity)

    Jones Apparel Group, Inc., a Pennsylvania corporation (the
"Company"), Jones Apparel Group Holdings, Inc., a Delaware corporation, Jones
Apparel Group USA, Inc., a Pennsylvania corporation, and Nine West Group Inc., a Delaware
corporation (herein collectively called the "Issuers", which term includes any
successor Person under the Indenture hereinafter referred to), for value received, hereby
promise to pay to _____________, or registered assigns, the Principal Amount at Maturity
set forth above [INCLUDE IF SECURITY IS A GLOBAL SECURITY -- (which amount may from time
to time be increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depositary, in accordance with the rules and procedures of the
Depositary)] on February 1, 2021.

    This Security shall not bear cash interest except as specified on
the other side of this Security. Original Issue Discount will accrue as specified on the
other side of this Security. This Security is convertible as specified on the other side
of this Security.

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

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

A-2

<PAGE> A-3

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

    Dated:

  		JONES APPAREL GROUP, INC.By: 

    Name: 

    Title: 

    JONES APPAREL GROUP HOLDINGS, INC.

    By: 

    Name: 

    Title: 

    JONES APPAREL GROUP USA, INC.

    By: 

    Name: 

    Title: 

    NINE WEST GROUP INC.

    By: 

    Name: 

    Title:

THE BANK OF NEW YORK, as Trustee, certifies that this is one of the Securities referred
to in the Indenture.

Dated:

By: 

Authorized Signatory

A-3

<PAGE> A-4

[FORM OF REVERSE SIDE OF SECURITY]

This Security is one of a duly authorized issue of Securities of the Issuers designated
as their Zero Coupon Convertible Senior Notes Due 2021, limited in aggregate Principal
Amount at Maturity to $700,561,000 (subject to increase by up to $105,084,000 in the event
the Initial Purchasers exercise the over-allotment option granted to them in the Purchase
Agreement) (herein called the "Securities"), issued and to be issued under an
Indenture, dated as of February 1, 2001 (herein called the "Indenture"), between
the Issuers and The Bank of New York, as Trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Issuers, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are,
and are to be, authenticated and delivered.

    This Security shall not bear interest, except as specified herein.
Original Issue Discount (the difference between the Issue Price and the Principal Amount
at Maturity of the Security), in the period during which a Security remains outstanding,
shall accrue at 3.5% per annum, on a semi-annual bond equivalent basis using a 360-day
year composed of twelve 30-day months, from the Issue Date of this Security.

    Redemption at the Option of the Issuers - No sinking fund is
provided for the Securities. The Securities are redeemable as a whole, or from time to
time in part, at any time at the option of the Issuers at a Redemption Price equal to the
Issue Price plus the accrued Original Issue Discount through the Redemption Date, provided
that the Securities are not redeemable prior to February 1, 2004.

    The table below shows Redemption Prices of a Security per $1,000
Principal Amount at Maturity on the dates shown below and at Stated Maturity, which prices
equal the Issue Price plus accrued Original Issue Discount calculated to each such date.
The Redemption Price of a Security redeemed between such dates shall include an additional
amount reflecting the additional Original Issue Discount accrued since the next preceding
date in the table.

  	Redemption Date	Issue 

    Price(1)
	Accrued 

    Original Issue 

    Discount 

    At 3.5%(2)
	Redemption
    

    Price 

    (1) + (2)

	February 1,
    2004..........................................................	$499.60	$54.81	$554.41
	February 1,
    2005..........................................................	499.60	74.38	573.98
	February 1,
    2006..........................................................	499.60	94.65	594.25
	February 1,
    2007..........................................................	499.60	115.63	615.23
	February 1,
    2008.......................................................... 	499.60	137.35	636.95
	February 1,
    2009..........................................................	499.60	159.84	659.44
	February 1,
    2010..........................................................	499.60	183.12	682.72
	February 1,
    2011..........................................................	499.60	207.22	706.82
	February 1,
    2012..........................................................	499.60	232.18	731.78

A-4

<PAGE> A-5

  	February 1,
    2013.........................................................	499.60	258.02	757.62
	February 1,
    2014.........................................................	499.60	284.76	784.36
	February 1,
    2015.........................................................	499.60	312.46	812.06
	February 1,
    2016.........................................................	499.60	341.13	840.73
	February 1,
    2017.........................................................	499.60	370.81	870.41
	February 1,
    2018.........................................................	499.60	401.54	901.14
	February 1,
    2019.........................................................	499.60	433.36	932.96
	February 1,
    2020.........................................................	499.60	466.30	965.90
	February 1,
    2020.........................................................	499.60	466.30	965.90
	At stated
    maturity.........................................................	499.60	500.40	1,000.00

    If converted into a semi-annual cash pay note following the
occurrence of a Tax Event pursuant to Section 10.01 of the Indenture, this Security will
be redeemable at the Restated Principal Amount plus accrued and unpaid interest from the
later of the date of such conversion and the date on which interest was last paid through
the Redemption Date; but in no event will this Security be redeemable before February 1,
2004.

    Purchase of Securities at the Option of the Holder - Subject to the
terms and conditions of the Indenture, the Issuers shall become obligated to purchase, at
the option of the Holder, the Securities held by such Holder on the following Purchase
Dates and at the following Purchase Prices per $1,000 Principal Amount at Maturity, upon
delivery of a Purchase Notice containing the information set forth in the Indenture, at
any time from the opening of business on the date that is 30 Business Days prior to such
Purchase Date until the close of business on such Purchase Date and upon delivery of the
Securities to the Paying Agent by the Holder as set forth in the Indenture.

  

    	Purchase Date	Purchase Price
	February 1, 2004	$554.41
	February 1, 2009	$659.44
	February 1, 2014	$784.36

     The Purchase Price (equal to the Issue Price plus accrued Original
Issue Discount to the Purchase Date) may be paid, at the option of the Issuers, in cash or
by the issuance and delivery of shares of Common Stock of the Company valued at 95% of the
Market Price (as defined in the Indenture), or in any combination thereof.

    If prior to a Purchase Date this Security has been converted into a
semi-annual cash pay note following the occurrence of a Tax Event pursuant to Section
10.01 of the Indenture, the Purchase Price will be equal to the Restated Principal Amount
plus accrued and unpaid interest from the later of the date of such conversion and the
date on which interest was last paid to the Purchase Date.

    Repurchase of Securities at the Option of the Holder Upon a
Fundamental Change - At the option of the Holder and subject to the terms and conditions
of the Indenture, the Issuers shall become obligated to repurchase the Securities if a
Fundamental Change occurs at any time prior 

A-5

<PAGE> A-6

to February 1, 2004 for a Fundamental Change Repurchase Price equal to the Issue Price
plus accrued Original Issue Discount to the Fundamental Change Repurchase Date, which
Fundamental Change Repurchase Price shall be paid in cash or, at the option of the
Issuers, in Common Stock of the Company valued at 95% of the Market Price (as defined in
the Indenture), as long as the Common Stock is then listed on a national securities
exchange or traded on the Nasdaq Stock Market, or any combination thereof. If prior to a
Fundamental Change Repurchase Date the Securities have been converted into a semi-annual
cash pay note following the occurrence of a Tax Event pursuant to Section 10.01 of the
Indenture, the Fundamental Change Repurchase Price shall be equal to the Restated
Principal Amount plus accrued and unpaid interest from the later of the date of such
conversion and the date on which interest was last paid to the Fundamental Change
Repurchase Date.

    Holders have the right to withdraw any Purchase Notice or
Fundamental Change Repurchase Notice, as the case may be, by delivering to the Paying
Agent a written notice of withdrawal in accordance with the provisions of the Indenture.

    If cash and/or securities sufficient to pay the Purchase Price,
Redemption Price or Fundamental Change Repurchase Price, as the case may be, of all
Securities (or portions thereof) to be purchased as of the Purchase Date, Redemption Date
or the Fundamental Change Repurchase Date, as the case may be, is deposited with the
Paying Agent on the Business Day following the Purchase Date, Redemption Date or the
Fundamental Change Repurchase Date, as the case may be, Original Issue Discount (or
interest, if the Securities have been converted into semi-annual cash pay notes pursuant
to Section 10.01 of the Indenture) ceases to accrue on such Securities (or portions
thereof) immediately after such Purchase Date, Redemption Date or Fundamental Change
Repurchase Date, as the case may be, whether or not such Securities are delivered to the
Paying Agent, and the Holder thereof shall have no other rights as a Holder (other than
the right to receive the Purchase Price, Redemption Date or Fundamental Change Repurchase
Price, as the case may be, upon surrender of such Security).

    If the Issuers elect to pay all or part of the Purchase Price or the
Fundamental Change Repurchase Price in Common Stock, the portion of accrued Original Issue
Discount (or interest, if the Securities have been converted into semi-annual cash pay
notes pursuant to Section 10.01 of the Indenture), attributable to the period from the
Issue Date (or, if the Issuers have exercised their option to convert the Securities into
semi-annual cash pay notes pursuant to Section 10.01 of the Indenture, the later of (x)
the date of such exercise, and (y) the date on which interest was last paid) to the
Purchase Date or the Fundamental Change Repurchase Date, as the case may be, with respect
to the surrendered Security shall not be cancelled, extinguished or forfeited, but rather
shall be deemed to be paid in full to the Holder thereof through the delivery of the
Common Stock (together with a cash payment, if any, in lieu of fractional shares) and
cash, if any, in exchange for the Security being purchased pursuant to the terms hereof;
and such cash, if any, and the fair market value of such shares of Common Stock (together
with any such cash payment in lieu of fractional shares) shall be treated as delivered pro
rata, to the extent thereof, first in exchange for Original Issue Discount (or interest,
if the Securities have been converted into semi-annual cash pay notes pursuant to Section
10.01 of the Indenture) accrued through the Purchase Date or the Fundamental Change
Repurchase Date, as the case may be, and the balance, if any, of such cash and the fair
market value of such Common Stock (and any such 

A-6

<PAGE> A-7

cash payment) shall be treated as delivered in exchange for the Issue Price of the
Security being purchased pursuant to the provisions hereof.

    Conversion - Subject to the next two succeeding sentences, a Holder
of a Security may convert it into Common Stock of the Company at any time before the close
of business on February 1, 2021. If the Security is called for redemption, the Holder may
convert it at any time before the close of business on the Business Day immediately
preceding the Redemption Date, unless the Issuers default on the payment of the Redemption
Price. A Security in respect of which a Holder has delivered a Purchase Notice or
Fundamental Change Repurchase Notice exercising the option of such Holder to require the
Issuers to purchase such Security may be converted only if such Purchase Notice or
Fundamental Change Repurchase Notice is withdrawn in accordance with the terms of the
Indenture.

    The initial Conversion Rate is 9.8105 shares of Common Stock per
$1,000 Principal Amount at Maturity, subject to adjustment in certain events described in
the Indenture. The Issuers will deliver cash or a check in lieu of any fractional share of
Common Stock.

    In the event the Issuers exercise their option pursuant to
Section 10.01 of the Indenture to have interest in lieu of Original Issue Discount
accrue on the Security following a Tax Event, the Holder will be entitled on conversion to
receive the same number of shares of Common Stock such Holder would have received if the
Issuers had not exercised such option. If the Issuers exercise such option, Securities
surrendered for conversion during the period from the close of business on any Regular
Record Date next preceding any Interest Payment Date to the opening of business on such
Interest Payment Date (except Securities to be redeemed on a date within such period) must
be accompanied by payment of an amount equal to the interest thereon that the registered
Holder is to receive. Except where Securities surrendered for conversion must be
accompanied by payment as described above, no interest on converted Securities will be
payable by the Issuers on any Interest Payment Date subsequent to the date of conversion.

    To convert a Security, a Holder must (1) complete and manually sign
the conversion notice below (or complete and manually sign a facsimile of such notice) and
deliver such notice to the Conversion Agent, (2) surrender the Security to the Conversion
Agent for cancellation, (3) furnish appropriate endorsements and transfer documents if
required by the Conversion Agent, the Issuers or the Trustee and (4) pay any transfer or
similar tax, if required.

    A Holder may convert a portion of a Security if the Principal Amount
at Maturity of such portion is $1,000 or an integral multiple of $1,000. No payment or
adjustment will be made for dividends on the Common Stock except as provided in the
Indenture. On conversion of a Security, that portion of accrued Original Issue Discount
(or interest, if the Securities have been converted into semi-annual cash pay notes
pursuant to Section 10.01 of the Indenture) attributable to the period from the Issue Date
(or, if the Issuers have exercised the option referred to below in "Tax Event",
the later of (x) the date of such exercise and (y) the date on which interest was last
paid) through the Conversion Date with respect to the converted Security shall not be
cancelled, extinguished or forfeited, but rather shall be deemed to be paid in full to the
Holder thereof through the delivery of the Common Stock (together with the cash payment,
if any, in lieu of fractional shares) in exchange for the Security being converted
pursuant to the terms hereof; and the fair market value of such shares of Common Stock
(together with any such 

A-7

<PAGE> A-8

cash payment in lieu of fractional shares) shall be treated as issued, to the extent
thereof, first in exchange for Original Issue Discount (or interest, if the Securities
have been converted into semi-annual cash pay notes pursuant to Section 10.01 of the
Indenture) accrued through the Conversion Date, and the balance, if any, of such fair
market value of such Common Stock (and any such cash payment) shall be treated as issued
in exchange for the Issue Price of the Security being converted pursuant to the provisions
hereof.

    The Conversion Rate will be adjusted as set forth in the Indenture
for dividends or distributions on Common Stock payable in Common Stock or other Capital
Stock; subdivisions, combinations or certain reclassifications of Common Stock;
distributions to all holders of Common Stock of certain rights to purchase Common Stock
for a period expiring within 60 days at less than the Sale Price at the Time of
Determination; and certain distributions to such holders of assets or debt securities of
the Company or certain rights to purchase securities of the Company (excluding certain
cash dividends or distributions). However, no adjustment need be made if Holders may
participate in the transaction or in certain other cases. The Issuers from time to time
may voluntarily increase the Conversion Rate.

    If the Company is a party to a consolidation, merger or binding
share exchange or a transfer of all or substantially all of its assets, or upon certain
distributions described in the Indenture, the right to convert a Security into Common
Stock may be changed into a right to convert it into securities, cash or other assets of
the Company or another Person.

    Tax Event - (a)  From and after the date (the "Tax
Event Date") of the occurrence of a Tax Event and the date the Issuers exercise such
option, whichever is later (the "Option Exercise Date"), at the option of the
Issuers, cash interest in lieu of future Original Issue Discount shall accrue at the rate
of 3.5% per annum on a principal amount per Security (the "Restated Principal
Amount") equal to the Issue Price plus Original Issue Discount accrued to the Option
Exercise Date and shall be payable semi-annually on February 1 and August 1 of each year
(each an "Interest Payment Date") to holders of record at the close of business
on January 16 or July 16 (each a "Regular Record Date") immediately preceding
such Interest Payment Date. Interest will be computed on the basis of a 360-day year
comprised of twelve 30-day months and will accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the Option Exercise Date.

    (b) Interest on any Security that is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person in whose
name that Security is registered at the close of business on the Regular Record Date for
such interest at the office or agency of the Company maintained for such purpose. Each
installment of interest on any Security shall be paid in same-day funds by transfer to an
account maintained by the payee located inside the United States, provided that with
respect to any Holder, such Holder shall have furnished to the Paying Agent all required
wire payment instructions no later than the related Regular Record Date, or if no such
instructions have been furnished, by check payable to such Holder.

    (c) Except as otherwise specified with respect to the Securities,
any Defaulted Interest on any Security shall forthwith cease to be payable to the
registered Holder thereof on 

A-8

<PAGE> A-9

the relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Issuers as provided for in Section 10.04(b) of
the Indenture.

    [INCLUDE IF SECURITY IS A GLOBAL SECURITY -- In the event of a
deposit or withdrawal of an interest in this Security, including an exchange, transfer,
repurchase or conversion of this Security in part only, the Trustee, as custodian of the
Depositary, shall make an adjustment on its records to reflect such deposit or withdrawal
in accordance with the rules and procedures of the Depositary.]

    [INCLUDE IF SECURITY IS A RESTRICTED SECURITY -- Subject to certain
limitations in the Indenture, at any time when the Company is not subject to
Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as amended,
upon the request of a Holder of a Restricted Security, the Issuers will promptly furnish
or cause to be furnished Rule 144A Information (as defined below) to such Holder of
Restricted Securities, or to a prospective purchaser of any such security designated by
any such Holder, to the extent required to permit compliance by any such Holder with Rule
144A under the Securities Act of 1933, as amended (the "Securities Act").
"Rule 144A Information" shall be such information as is specified pursuant to
Rule 144A(d)(4) under the Securities Act (or any successor provision thereto).]

    If an Event of Default shall occur and be continuing, the Issue
Price (or, if the Securities have been converted to semi-annual cash pay notes pursuant to
Section 10.01 of the Indenture, the Restated Principal Amount) plus the Original Issue
Discount (or, if the Securities have been converted to semi-annual cash pay notes pursuant
to Section 10.01 of the Indenture, accrued but unpaid interest) accrued through such date
on all the Securities may be declared due and payable in the manner and with the effect
provided in the Indenture.

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

    As provided in and subject to the provisions of the Indenture, the
Holder of this Security shall not have the right to institute any proceeding with respect
to the Indenture or for the appointment of a receiver or trustee or for any other remedy
thereunder, unless such Holder shall have previously given the Trustee written notice of a
continuing Event of Default with respect to the Securities, the Holders of not less than
25% in Principal Amount at Maturity of the outstanding Securities shall have made written
request to the Trustee to institute proceedings in respect of such Event of Default as
Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have
received from the Holders of a majority in Principal Amount at 

A-9

<PAGE> A-10

Maturity of outstanding Securities a direction inconsistent with such request, and
shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit
instituted by the Holder of this Security for the enforcement of any payment of said
principal hereof or interest hereon on or after the respective due dates expressed herein.

    No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the Issuers, which is
absolute and unconditional, to pay the Principal Amount at Maturity, Restated Principal
Amount, Redemption Price, Purchase Price or Fundamental Change Repurchase Price of, and
interest, if any, on, this Security at the times, place and rate, and in the coin or
currency, herein prescribed.

    As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security Register,
upon surrender of this Security for registration of transfer at the office or agency of
the Company in The City of New York, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Issuers and the Registrar duly executed
by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Securities, of authorized denominations and for the same aggregate Principal
Amount at Maturity, will be issued to the designated transferee or transferees.

    The Securities are issuable only in registered form without coupons
in denominations of $1,000 Principal Amount at Maturity and any integral multiple of
$1,000 Principal Amount at Maturity above that amount. As provided in the Indenture and
subject to certain limitations therein set forth, Securities are exchangeable for a like
aggregate Principal Amount at Maturity of Securities of a different authorized
denomination, as requested by the Holder surrendering the same.

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

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

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

A-10

<PAGE> A-11

ASSIGNMENT FORM

    If you want to assign this Security, fill in the form below and have
your signature guaranteed:

    I or we assign and transfer this Security to:

	  

	  

	  

(Print or type name, address and zip code and social security or tax ID number of
assignee)

    and irrevocably appoint _____________________________________ agent
to transfer this Security on the books of the Issuers. The agent may substitute another to
act for him.

  

    	Date:
                 	Signed:
                
	 (Sign exactly as your name appears on the
      other side of this Security)

	 Signature
      Guarantee:________________________________

    In connection with any transfer of this Security occurring prior to
the date of the declaration by the Commission of the effectiveness of a registration
statement under the Securities Act of 1933, as amended (the "Securities Act"),
covering resales of this Security (which effectiveness shall not have been suspended or
terminated at the date of the transfer):

[Check One]

      (1) [ ]     to an Issuer or a Subsidiary of any
  of the Issuers; or

      (2) [ ]     pursuant to and in compliance with
  Rule 144A under the Securities Act; or

      (3) [ ]     outside the United States to a
  "foreign person" in compliance with Rule 904 of Regulation S under the
  Securities Act; or

      (4) [ ]     pursuant to the exemption from
  registration provided by Rule 144 under the Securities Act; or

      (5) [ ]     pursuant to an effective
  registration statement under the Securities Act; or

      (6) [ ]     pursuant to another available
  exemption from the registration requirements of the Securities Act.

    Unless one of the boxes is checked, the Trustee will refuse to
register any of the Securities evidenced by this certificate in the name of any Person
other than the registered Holder thereof, provided that if box (3), (4) or (6) is checked,
the Issuers may require, prior to 

A-11

<PAGE> A-12

registering any such transfer of the Securities, in their sole discretion, such legal
opinions, certifications (including an investment letter in the case of box (3)) and other
information as the Issuers may reasonably request to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act.

    If none of the foregoing boxes is checked, the Trustee or Registrar
shall not be obligated to register this Security in the name of any Person other than the
Holder hereof unless and until the conditions to any such transfer of registration set
forth herein and in Section 3.10 of the Indenture shall have been satisfied.

   

  

    	Date:
                	Signed:
                
	(Sign exactly as your name appears on the other
      side of this Security)
	Signature
      Guarantee:________________________________

    

TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED

      The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a "qualified institutional
buyer" within the meaning of Rule 144A under the Securities Act and is aware that the
sale to it is being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Issuers as the undersigned has requested pursuant to Rule
144A or has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order to
claim the exemption from registration provided by Rule 144A.

   

  	Date:
                	Signed:
                
	NOTICE: To be executed by an executive officer.

      

A-12

<PAGE> A-13

FORM OF CONVERSION NOTICE

    If you want to convert this Security into Common Stock of the
Company, check the box:

      [ ]

    To convert only part of this Security, state the Principal Amount at
Maturity to be converted (which must be $1,000 or an integral multiple of $1,000):

    $__________________________________

      If you want the stock certificate made out in another person's
name, fill in the form below:

	  

	(Insert
    other person's social security or tax ID no.)

     

	  

	  

	(Print or
    type other person's name, address and zip code)

     

   

  	Date:
                	Signed:
                
	(Sign exactly as your name appears on the other
      side of this Security)
	Signature
      Guarantee:________________________________

 

A-13

<PAGE> B-1

EXHIBIT B

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

FROM GLOBAL SECURITY OR DEFINITIVE SECURITY

TO DEFINITIVE SECURITY

(Transfers pursuant to Section 2.13(a)(1) or Section 2.13(a)(2) of the Indenture)

________________, ___

The Bank of New York, as Registrar

The Bank of New York

101 Barclay Street, Floor 21W

New York, New York 10286

Attn: Corporate Trust Trustee Administration 

Re:    Transfer of $________ Principal Amount at Maturity of 

         Zero Coupon Convertible Senior Notes Due
2021

         (the "Securities") of
Jones Apparel Group, Inc., 

         Jones Apparel Group USA, Inc., Jones
Apparel 

         Group Holdings, Inc. and Nine West Group
Inc. 

         (collectively, the "Issuers")

    Reference is hereby made to the Indenture dated as of February 1,
2001 (the "Indenture") between the Issuers and The Bank of New York, as Trustee.
Capitalized terms used but not defined herein shall have the meanings given them in the
Indenture.

    This letter relates to U.S. $   
      aggregate Principal Amount at Maturity of
Securities which are held [in the form of a [Definitive] [Global Security (CUSIP No.                 )]*
in the name of [name of transferor] (the "Transferor") to effect the transfer of
Securities.

    In connection with such request, and in respect of such Securities,
the Transferor does hereby certify that such Securities are being transferred in
accordance with (i) the transfer restrictions set forth in the Securities and the
Indenture and (ii) to a transferee that the Transferor reasonably believes is an
institutional "accredited investor" (as defined in Rule 501 (a)(1), (2), (3) or
(7) of Regulation D under the U.S. Securities Act of 1933, as amended) (an
"Institutional Accredited Investor") which is acquiring such Securities for its
own account or for one or more accounts, each of which is an Institutional Accredited
Investors, over which it exercises sole investment discretion and (iii) in accordance with
applicable securities laws of any state of the United States.

	[Name of Transferor],		By:
                                             
                             
    

			Name:
                                             
                        
    

			Title:
                                             
                           
    

			Dated:
                                             
                        
    

	  
		
	*          
    Insert, if appropriate.		

 

B-1

<PAGE> C-1

EXHIBIT C

[FORM OF NON-DISTRIBUTION LETTER FOR INSTITUTIONAL ACCREDITED INVESTORS]

(Transfers pursuant to Section 2.13(a)(1) or Section 2.13(a)(2) of the
Indenture)

________________, ___

The Bank of New York, as Registrar

The Bank of New York

101 Barclay Street, Floor 21W

New York, New York 10286

Attn: Corporate Trust Trustee Administration 

Re:    Purchase of $________ Principal Amount at Maturity of 

         Zero Coupon Convertible Senior Notes Due
2021

         (together with the Common Stock issuable
upon 

         conversion thereof, the "Securities")
of Jones 

         Apparel Group, Inc., Jones Apparel Group
USA, 

         Inc., Jones Apparel Group Holdings, Inc.
and 

         Nine West Group Inc. (collectively, the
"Issuers")1

Ladies and Gentlemen:

    In connection with our purchase of the Securities we confirm that:

    1. We understand that the Securities are not being and will not be
registered under the Securities Act of 1933, as amended (the "Securities Act"),
and are being sold to us in a transaction that is exempt from the registration
requirements of the Securities Act.

    2. We acknowledge that (a) neither the Issuers, nor the Initial
Purchasers (as defined in the Offering Memorandum dated January 25, 2001 relating to the
Securities (the "Offering Memorandum")) nor any person acting on behalf
of the Issuers or the Initial Purchasers has made any representation to us with respect to
the Issuers or the offer or sale of any Securities; and (b) any information we desire
concerning the Issuers and the Securities or any other matter relevant to our decision to
purchase the Securities (including a copy of the Offering Memorandum) is or has been made
available to us.

    3. We have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of an investment in the
Securities, and we are (or any account for which we are purchasing under paragraph 4 below
is) an institutional "accredited investor" (within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) able to bear the
economic risk of investment in the Securities.

	   	
	1     Each U.S.
    purchaser, or account for which eash U.S. purchsaer is acting, is required to purchase at
    least $250,000 Principal Amount at Maturity Securities.

C-1

<PAGE> C-2

    4. We are acquiring the Securities for our own account (or for
accounts as to which we exercise sole investment discretion and have authority to make,
and do make, the statements contained in this letter) and not with a view to any
distribution of the Securities, subject, nevertheless, to the understanding that the
disposition of our property will at all times be and remain within our control.

    5. We understand that (a) the Securities will be in registered form
only and that any certificates delivered to us in respect of the Securities will bear a
legend substantially to the following effect:

  "These Securities have not been registered under the Securities Act of 1933.
  Further offers or sales of these Securities are subject to certain restrictions, as set
  forth in the Offering Memorandum dated January 25, 2001 relating to these
  Securities."

    and (b) the Issuers have agreed to reissue such certificates without
the foregoing legend only in the event of a disposition of the Securities in accordance
with the provisions of paragraph 6 below (provided, in the case of a disposition of the
Securities in accordance with paragraph 6(f) below, that the legal opinion referred to in
such paragraph so permits), or at our request at such time as we would be permitted to
dispose of them in accordance with paragraph 6(a) below.

    6. We agree that in the event that at some future time we wish to
dispose of any of the Securities, we will not do so unless such disposition is made in
accordance with any applicable securities laws of any state of the United States and:

      (a) the Securities are sold in compliance with Rule 144(k) under the
  Securities Act; or

      (b) the Securities are sold in compliance with Rule 144A under the
  Securities Act; or

      (c) the Securities are sold in compliance with Rule 904 of
  Regulation S under the Securities Act; or

      (d) the Securities are sold pursuant to an effective registration
  statement under the Securities Act; or

      (e) the Securities are sold to the Issuers or an affiliate (as
  defined in Rule 501(b) of Regulation D) of the Issuers; or

C-2

<PAGE> C-3

      (f) the Securities are disposed of in any other transaction that
  does not require registration under the Securities Act, and we theretofore have furnished
  to the Issuers or their designee an opinion of counsel experienced in securities law
  matters to such effect or such other documentation as the Issuers or their designee may
  reasonably request.

		Very truly yours,

    By ______________________

    (Authorized Officer)

C-3

<PAGE> D-1

EXHIBIT D

[FORM OF PURCHASE NOTICE]

________________, ___

The Bank of New York, as Registrar

The Bank of New York

101 Barclay Street, Floor 21W

New York, New York 10286

Attn: Corporate Trust Trustee Administration

Re:    Purchase of $________ Principal Amount at Maturity of 

         Zero Coupon Convertible Senior Notes Due
2021

         (the "Securities") of
Jones Apparel Group, Inc., 

         Jones Apparel Group USA, Inc., Jones
Apparel 

         Group Holdings, Inc. and Nine West Group
Inc. 

         (collectively, the "Issuers")

    This is a Purchase Notice as defined in Section 3.08(a) of the
Indenture dated as of February 1, 2001 (the "Indenture") between the Issuers and
The Bank of New York, as Trustee. Terms used but not defined herein shall have the
meanings ascribed to them in the Indenture.

Certificate No(s). of Securities: _____________________________

    I intend to deliver the following aggregate Principal Amount at
Maturity of Securities for purchase by the Issuers pursuant to Section 3.08(a) of the
Indenture (in multiples of $1,000):

$_____________________________

    I hereby agree that the Securities will be purchased as of the
Purchase Date pursuant to the terms and conditions thereof and of the Indenture.

    In the event that the Issuers elect, pursuant to Section 3.08(b) of
the Indenture, to pay the Purchase Price, in whole or in part, in shares of Common Stock
but such portion of the Purchase Price is ultimately payable entirely in cash because any
of the conditions to payment of the Purchase Price in Common Stock is not satisfied prior
to the close of business on the Purchase Date, I elect (check one):

  [ ] (1) to withdraw this Purchase Notice as to all of the Securities to which it
  relates;

  [ ] (2) to withdraw this Purchase Notice as to $___________________ Principal Amount at
  Maturity of Securities (Certificate No(s). ____________________); or

  [ ] (3) to receive cash in respect of the entire Purchase Price for all Securities (or
  portions thereof) to which this Purchase Notice relates. 

		Signed: ________________________ 

D-1

<PAGE> E-1

EXHIBIT E

[FORM OF FUNDAMENTAL CHANGE REPURCHASE NOTICE]

________________, ___

The Bank of New York, as Registrar

The Bank of New York

101 Barclay Street, Floor 21W

New York, New York 10286

Attn: Corporate Trust Trustee Administration 

Jones Apparel Group, Inc.

Jones Apparel Group USA, Inc., 

Jones Apparel Group Holdings, Inc.

Nine West Group Inc.

250 Rittenhouse Circle

Bristol, PA 19007

Re:    Purchase of $________ Principal Amount at Maturity of 

         Zero Coupon Convertible Senior Notes Due
2021

         (the "Securities") of
Jones Apparel Group, Inc., 

         Jones Apparel Group USA, Inc., Jones
Apparel 

         Group Holdings, Inc. and Nine West Group
Inc. 

         (collectively, the "Issuers")

    This is a Fundamental Change Repurchase Notice as defined in Section
3.09 of the Indenture dated as of February 1, 2001 (the "Indenture") between the
Issuers and The Bank of New York, as Trustee. Terms used but not defined herein shall have
the meanings ascribed to them in the Indenture.

    Certificate No(s). of Securities: _____________________________

    I intend to deliver the following aggregate Principal Amount at
Maturity of Securities for purchase by the Issuers pursuant to Section 3.09 of the
Indenture (in multiples of $1,000):

$________________________________

    I hereby agree that the Securities will be purchased as of the
Fundamental Change Repurchase Date pursuant to the terms and conditions thereof and of the
Indenture.

E-1

<PAGE> E-2

    In the event that the Issuers elect, pursuant to Section 3.09(b) of
the Indenture, to pay the Fundamental Change Repurchase Price, in whole or in part, in
shares of Common Stock but such portion of the Fundamental Change Repurchase Price is
ultimately payable entirely in cash because any of the conditions to payment of the
Fundamental Change Repurchase Price in Common Stock is not satisfied prior to the close of
business on the Fundamental Change Repurchase Date, I elect (check one):

  [ ] (1) to withdraw this Fundamental Change Repurchase Notice as to all of the
  Securities to which it ;

  [ ] (2) to withdraw this Fundamental Change Repurchase Notice as to
  $___________________ Principal Amount at Maturity of Securities (Certificate No(s).
  ____________________); or

  [ ] (3) to receive cash in respect of the entire Fundamental Change Repurchase Price
  for all Securities (or portions thereof) to which this Fundamental Change Repurchase
  Notice relates.

Signed: ________________________

 

E-2

<PAGE> F-1

EXHIBIT F

FORM OF TRANSFER CERTIFICATE FOR TRANSFER

OF RESTRICTED COMMON STOCK

(Transfers pursuant to Section 11.20(b) of the Indenture)

[NAME AND ADDRESS OF COMMON STOCK TRANSFER AGENT]

The Bank of New York, as Registrar

The Bank of New York

101 Barclay Street, Floor 21W

New York, New York 10286

Attn: Corporate Trust Trustee Administration 

Jones Apparel Group, Inc.

Jones Apparel Group USA, Inc., 

Jones Apparel Group Holdings, Inc.

Nine West Group Inc.

250 Rittenhouse Circle

Bristol, PA 19007

Re:    Common Stock, par value $0.01 per share 

         (the "Common Stock") of Jones
Apparel Group, Inc., 

         (the "Company")

    Reference is hereby made to the Indenture dated as of February 1,
2001 (the "Indenture") between the Company, Jones Apparel Group USA, Inc., Jones
Apparel Group Holdings, Inc. and Nine West Group Inc. (together with the Company, the
"Issuers") and The Bank of New York, as Trustee. Capitalized terms used but not
defined herein shall have the meanings given them in the Indenture.

    This letter relates to shares of Common Stock represented by the
accompanying certificate(s) that were issued upon conversion of Securities and which are
held in the name of [name of transferor] (the "Transferor") to effect the
transfer of such Common Stock.

    In connection with the transfer of such shares of Common Stock, the
undersigned confirms that such shares of Common Stock are being transferred:

  CHECK ONE BOX BELOW

  	(1)		     	to the Company; or
	(2)			pursuant to and in compliance with Regulation S under the Securities Act
      of 1933; or

     

F-1

<PAGE> F-2

 

  	(3)	 		to an institutional "accredited
      investor" (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act of
      1933) that has furnished to the transfer agent a signed letter containing certain
      representations and agreements (the form of which letter can be obtained from the Company
      or transfer agent); or
	
	
	(4)	  		pursuant to an exemption from registration under the
      Securities Act of 1933 provided by Rule 144 thereunder.

   

    Unless one of the boxes is checked, the transfer agent will refuse
to register any of the Common Stock evidenced by this certificate in the name of any
person other than the registered holder thereof; provided, however, that if box (2), (3)
or (4) is checked, the transfer agent may require, prior to registering any such transfer
of the Common Stock such certifications and other information, and if box (4) is checked
such legal opinions, as the Company reasonably requests in writing, by delivery to the
transfer agent of a standing letter of instruction, to confirm that such transfer is being
made pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the Securities Act of 1933.

		[Name of Transferor],By
                                             
                                          
   
    

    Name:
                                             
                                       
    

    Title:
                                             
                                          
    

Dated:

F-2Exhibit 4.23

JONES APPAREL GROUP, INC.

JONES APPAREL GROUP USA, INC.

JONES APPAREL GROUP HOLDINGS, INC.

NINE WEST GROUP INC.

Zero Coupon Convertible Senior Notes Due 2021

Registration Rights Agreement

                                        New York, New York

                                        February 1, 2001

Salomon Smith Barney Inc.

Bear, Stearns & Co. Inc.

As Representatives of the Initial Purchasers

388 Greenwich Street

New York, New York 10013

Ladies and Gentlemen:

    Jones Apparel Group, Inc., a Pennsylvania corporation (the "Company"),
Jones Apparel Group USA, Inc., a Pennsylvania corporation ("Jones
Apparel Group USA"), Jones Apparel Group Holdings, Inc., a Delaware
corporation ("Jones Apparel Group Holdings") and Nine West
Group Inc., a Delaware corporation ("Nine West" and together
with the Company, Jones Apparel Group USA and Jones Apparel Group Holdings, the
"Issuers"), as joint and several obligors, propose to issue and
sell to the several purchasers (the "Initial Purchasers"),
$700,561,000 principal amount at maturity of its Zero Coupon Convertible Senior
Notes Due 2021 (the "Firm Notes"), upon the terms set forth in
a purchase agreement, dated January 25, 2001 (the "Purchase Agreement"),
relating to the initial placement of the Firm Notes and the grant from the
Issuers to the Initial Purchasers of an option to purchase up to $105,084,000
additional principal amount at maturity of such Notes to cover over-allotments,
if any (together with the Firm Notes, the "Notes"). The Notes
are to be issued under an indenture (as amended from time to time, the "Indenture"),
dated as of even date herewith, between the Issuers and The Bank of New York, as
trustee (the "Trustee"). To induce the Initial Purchasers to
enter into the Purchase Agreement, the Issuers agreed in the Purchase Agreement
to enter into this registration rights agreement, dated as of the date mentioned
in the header above (this "Agreement"), with the Initial
Purchasers, under which the Issuers agree with the Initial Purchasers for their
benefit and the benefit of the holders from time to time of the Notes or the
shares of common stock of the Company issuable upon conversion of the Notes
(including, without limitation, the Initial Purchasers) (each a "Holder"
and, together, the "Holders"), as follows:

 <PAGE> 2

1. Certain Definitions. The following terms, when used in this
Agreement, shall have the meanings indicated:

    (a) "Applicable Conversion Price" shall mean, as of any
    date of determination, the Applicable Principal Amount per $1,000 principal
    amount at maturity of Notes as of such date of determination divided by the
    Conversion Rate in effect as of such date of determination or, if no Notes
    are then outstanding, the Conversion Rate that would be in effect were Notes
    then outstanding.

    (b) "Applicable Principal Amount" shall mean, as of any
    date of determination, with respect to each $1,000 principal amount at
    maturity of Notes, (i) the sum of the initial issue price of such Notes
    ($499.60) plus accrued original issue discount with respect to such Notes
    through such date of determination or, if no Notes are then outstanding,
    such sum calculated as if Notes were then outstanding, or (ii) if the Notes
    have been converted to semiannual cash pay notes upon a Tax Event (as
    defined in the Indenture) pursuant to Section 10 of the Indenture, the
    Restated Principal Amount (as defined in the Indenture).

    (c) "Business Day" shall mean any day other than a
    Saturday, a Sunday or a legal holiday or a day on which banking institutions
    or trust companies are authorized or obligated by law to close in The City
    of New York.

    (d) "Closing Date" shall mean the original date of
    issuance of the Notes.

    (e) "Commission" shall mean the Securities and Exchange
    Commission.

    (f) "Common Stock" shall mean the Company's common
    stock, par value $.01 per share.

    (g) "Company" shall have the meaning indicated in the
    introductory paragraph.

    (h) "Conversion Rate" shall have the meaning indicated
    in the Indenture.

    (i) "Deferral Notice" shall have the meaning indicated
    in Section 3(g).

    (j) "Deferral Period" shall have the meaning indicated
    in Section 3(g).

    (k) "Effective Time" shall mean the time and date as of
    which the Commission declares the Shelf Registration effective or as of
    which the Shelf Registration otherwise becomes effective.

    (l) "Exchange Act" shall mean the Securities Exchange
    Act of 1934, as amended, and the rules and regulations of the Commission
    promulgated thereunder.

    (m) "Firm Notes" shall have the meaning indicated in the
    introductory paragraph.

    (n) "Holder" shall have the meaning indicated in the
    introductory paragraph.

    2

    <PAGE> 3

    (o) "Jones Apparel Group Holdings" shall have the
    meaning indicated in the introductory paragraph.

    (p) "Jones Apparel Group USA" shall have the meaning
    indicated in the introductory paragraph.

    (q) "Indenture" shall have the meaning indicated in the
    introductory paragraph.

    (r) "Initial Purchasers" shall have the meaning
    indicated in the introductory paragraph.

    (s) "Issuers" shall have the meaning indicated in the
    introductory paragraph.

    (t) "Material Event" shall have the meaning indicated in
    Section 3(b)(vi).

    (u) "Nine West" shall have the meaning indicated in the
    introductory paragraph.

    (v) "Notes" shall have the meaning indicated in the
    introductory paragraph.

    (w) "Notice and Questionnaire" shall mean a written
    notice delivered to the Company substantially in the form attached as Annex
    A to the Offering Memorandum.

    (x) "Notice Holder" shall mean, on any date, any Holder
    that has delivered a Notice and Questionnaire to the Company on or prior to
    such date.

    (y) "Offering Memorandum" shall mean the offering
    memorandum, dated January 25, 2001, (as amended or supplemented), of the
    Issuers relating to the Notes including any and all exhibits thereto and any
    information incorporated by reference therein.

    (z) "Participant" shall have the meaning indicated in
    Section 7(a).

    (aa) "Person" shall mean a corporation, association,
    partnership, organization, business, individual, government or political
    subdivision thereof or governmental agency.

    (bb) "Prospectus" shall mean the prospectus included in
    any Shelf Registration, as amended or supplemented by any amendment or
    prospectus supplement, including post-effective amendments, and all
    materials incorporated by reference or explicitly deemed to be incorporated
    by reference in such Prospectus.

    (cc) "Purchase Agreement" shall have the meaning
    indicated in the introductory paragraph.

    (dd) "Registrable Securities" shall mean the Securities
    until such time as: (i) in the circumstances contemplated by Section 2(a), a
    registration statement registering such Securities under the Securities Act
    has been declared or becomes effective and such Securities have been sold or
    otherwise transferred by the Holder thereof pursuant to such effective
    registration statement; (ii) such Securities are sold pursuant to Rule 144
    under circumstances in which any legend borne by such Securities relating to
    restrictions on 

    3

    <PAGE> 4

     transferability thereof, under the Securities Act or
    otherwise, is removed or such Securities are eligible to be sold pursuant to
    paragraph (k) of Rule 144; or (iii) such Securities shall cease to be
    outstanding (including, in the case of the Notes, upon conversion into
    shares of Common Stock).

    (ee) "Registration Default" shall have the meaning
    indicated in Section 2(c).

    (ff) "Registration Default Damages" shall have the
    meaning indicated in Section 2(c).

    (gg) "Registration Expenses" shall have the meaning
    indicated in Section 5.

    (hh) "Resale Period" shall mean the period beginning on
    the date the Shelf Registration becomes effective and ending on the earlier
    of (i) the Shelf Registration ceasing to be effective or (ii) the second
    anniversary of the Closing Date.

    (ii) "Restricted Holder" shall mean (i) a Holder that is
    an affiliate of the Issuers within the meaning of Rule 405 or (ii) a
    broker-dealer who receives Securities for its own account but did not
    acquire the Securities as a result of market-making activities or other
    trading activities.

    (jj) "Rule 144," "Rule 405" and "Rule
    415" shall mean, in each case, such rule promulgated under the
    Securities Act.

    (kk) "Securities" shall mean, collectively, the Notes
    and the Shares.

    (ll) "Securities Act" shall mean the Securities Act of
    1933, as amended, and the rules and regulations of the Commission
    promulgated thereunder.

(mm) "Shares" shall mean the shares of Common Stock into
which the Notes are convertible or that have been issued upon any conversion
from Notes into Common Stock.

    (nn) "Shelf Registration" shall have the meaning
    indicated in Section 2(a).

    (oo) "Trustee" shall have the meaning indicated in the
    introductory paragraph.

    (pp) "Trust Indenture Act" shall mean the Trust
    Indenture Act of 1939, as amended, and the rules and regulations of the
    Commission promulgated thereunder.

  

    Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the
case may be, of this Agreement, and the words "herein,"
"hereof" and "hereunder" and other words of similar import
refer to this Agreement as a whole and not to any particular Section or other
subdivision. Unless the context otherwise requires, any reference to a statute,
act, rule or regulation refers to the same (including any successor statute,
act, rule or regulation thereto) as it may be amended from time to time.

4

<PAGE> 5

2. Registration Under the Securities Act.

    (a) The Issuers agree to file under the Securities Act on or prior to the
    90th day after the Closing Date a "shelf" registration
    statement (the "Shelf Registration") providing for the
    registration of, and the sale on a continuous or delayed basis by the
    Holders of, all of the Registrable Securities, pursuant to Rule 415 under
    the Securities Act or any similar rule that may be adopted by the
    Commission. The Issuers agree to use their reasonable efforts to cause the
    Shelf Registration to become or be declared effective under the Securities
    Act no later than 180 days after the Closing Date and, subject to the
    provisions of Section 3(g), to use reasonable efforts to keep such Shelf
    Registration continuously effective for a period ending on the earliest of (i)
    the time when the Securities registered under the Shelf Registration can be
    sold pursuant to Rule 144 under the Securities Act or any successor rule or
    regulation thereto; (ii) the second anniversary of the Closing Date, (iii)
    the date on which all Securities registered under the Shelf Registration are
    disposed of in accordance therewith, and (iv) the date on which there are no
    longer any Securities outstanding. The Issuers agree to give notice to the
    Holders of all of the Registrable Securities of the filing and effectiveness
    of the Shelf Registration. The Issuers further agree to supplement or make
    amendments to the Shelf Registration, as and when required by the rules,
    regulations or instructions applicable to the registration form used for
    such Shelf Registration or by the Securities Act and the Issuers agree to
    furnish to the Notice Holders of the Registrable Securities copies of any
    such supplement or amendment prior to its being used or promptly following
    its filing with the Commission.

    (b) Each Holder of Registrable Securities agrees that if such Holder
    wishes to sell Registrable Securities pursuant to a Shelf Registration and
    related Prospectus, it will do so only in accordance with this Section 2(b)
    and Section 3(g). Each Holder of Registrable Securities wishing to sell
    Registrable Securities pursuant to a Shelf Registration and related
    Prospectus agrees to deliver a Notice and Questionnaire to the Company at
    least three (3) Business Days prior to any intended distribution of
    Registrable Securities under the Shelf Registration. From and after the date
    the Shelf Registration is declared effective, the Issuers shall, as promptly
    as is practicable after the date a Notice and Questionnaire is delivered,
    and in any event within five (5) Business Days after such date, (i) if
    required by applicable law, file with the Commission a post-effective
    amendment to the Shelf Registration or prepare and, if required by
    applicable law, file a supplement to the related Prospectus or a supplement
    or amendment to any document incorporated therein by reference or file any
    other required document so that the Holder delivering such Notice and
    Questionnaire is named as a selling holder in the Shelf Registration and the
    related Prospectus and so that such Holder is permitted to deliver such
    Prospectus to purchasers of the Registrable Securities in accordance with
    applicable law and, if the Company shall file a post-effective amendment to
    the Shelf Registration, use reasonable efforts to cause such post-effective
    amendment to be declared effective under the Securities Act as promptly as
    is practicable; (ii) provide such Holder copies of any documents filed
    pursuant to Section 2(b)(i); and (iii) notify such Holder as promptly as
    practicable after the effectiveness under the Securities Act of any
    post-effective amendment filed pursuant to Section 2(b)(i); provided,
    that if such Notice and Questionnaire is delivered during a Deferral Period,
    the Company shall so inform the Holder delivering such Notice and
    Questionnaire and shall take the actions set forth 

    5

    <PAGE> 6

     in clauses (i), (ii) and
    (iii) above upon expiration of the Deferral Period in accordance with
    Section 3(g). Notwithstanding anything contained herein to the contrary, the
    Issuers shall be under no obligation to name any Holder that is not a Notice
    Holder as a selling holder in any Shelf Registration or related Prospectus; provided,
    however, that any Holder that becomes a Notice Holder pursuant to the
    provisions of Section 2(b) of this Agreement (whether or not such Holder was
    a Notice Holder at the time the Shelf Registration was declared effective)
    shall be named as a selling holder in the Shelf Registration or related
    Prospectus in accordance with the requirements of this Section 2(b).

    (c) If any of the following events (any such event a "Registration
    Default") shall occur, then the Issuers shall pay liquidated
    damages (the "Registration Default Damages") to the Holders
    of Securities in respect of the Securities as follows:

      
        (i) if the Shelf Registration is not filed with the Commission on or
        prior to the 90th day following the Closing Date, then
        commencing on the 91st day after the Closing Date,
        Registration Default Damages shall accrue on the Applicable Principal
        Amount of any outstanding Notes that are Registrable Securities and the
        Applicable Conversion Price of any outstanding Shares that are
        Registrable Securities at a rate of 0.25% per annum for the first 90
        days from and including such 91st day and 0.5% per annum
        thereafter; or

        (ii) if the Shelf Registration is not declared effective by the
        Commission on or prior to the 180th day following the Closing
        Date, then commencing on the 181st day after the Closing
        Date, Registration Default Damages shall accrue on the Applicable
        Principal Amount of any outstanding Notes that are Registrable
        Securities and the Applicable Conversion Price of any outstanding Shares
        that are Registrable Securities at a rate of 0.25% per annum for the
        first 90 days from and including such 181st day and 0.5% per
        annum thereafter; or

        (iii) if the Shelf Registration has been declared effective but such
        Shelf Registration ceases to be effective (other than pursuant to
        Section 3(g) hereof) at any time prior to the earliest of (i) the time
        when the Securities registered under the Shelf Registration can be sold
        pursuant to Rule 144 under the Securities Act or any successor rule or
        regulation thereto; (ii) the second anniversary of the Closing Date;
        (iii) the date on which all Securities registered under the Shelf
        Registration are disposed of in accordance therewith; and (iv) the date
        on which there are no longer any Securities outstanding, then commencing
        on the day such Shelf Registration ceases to be effective, Registration
        Default Damages shall accrue on the Applicable Principal Amount of any
        outstanding Notes that are Registrable Securities and the Applicable
        Conversion Price of any outstanding Shares that are Registrable
        Securities at a rate of 0.25% per annum for the first 90 days from and
        including such date on which the Shelf Registration ceases to be
        effective and 0.5% per annum thereafter; or

        (iv) if the aggregate duration of Deferral Periods in any period
        exceeds the number of days permitted in respect of such period pursuant
        to Section 3(g) hereof, then commencing on the day the aggregate
        duration of Deferral Periods in 

      

        6

        <PAGE> 7

      
         any period exceeds the number of days
        permitted in respect of such period, Registration Default Damages shall
        accrue on the Applicable Principal Amount of any outstanding Notes that
        are Registrable Securities and the Applicable Conversion Price of any
        outstanding Shares that are Registrable Securities at a rate of 0.25%
        per annum for the first 90 days from and including such date and 0.5%
        per annum thereafter;

      

provided, however, that (1) upon the filing of the Shelf
Registration (in the case of clause (i) above), (2) upon the effectiveness of
the Shelf Registration (in the case of clause (ii) above), (3) upon the
effectiveness of the Shelf Registration which had ceased to remain effective (in
the case of clause (iii) above), (4) upon the termination of the Deferral Period
that caused the limit on the aggregate duration of Deferral Periods in a period
set forth in Section 3(g) to be exceeded (in the case of clause (iv) above) or
(5) upon the termination of certain transfer restrictions on the Securities as a
result of the application of Rule 144(k) under the Securities Act, pursuant to
which such Securities are eligible to be sold, Registration Default Damages on
the Securities under the Securities Act shall cease to accrue.

    (d) Any reference herein to a registration statement shall be deemed to
    include any document incorporated therein by reference as of the applicable
    Effective Time and any reference herein to any post-effective amendment to a
    registration statement shall be deemed to include any document incorporated
    therein by reference as of a time after such Effective Time.

    (e) Notwithstanding any other provision of this Agreement, any Holder of
    Registrable Securities who does not comply with the provisions of Section
    3(d), if applicable, shall not be entitled to receive Registration Default
    Damages unless and until such Holder complies with the provisions of Section
    3(d), as applicable.

  

3. Registration Procedures. The following provisions shall apply to
registration statements filed pursuant to Section 2:

  
    (a) At the Effective Time of the Shelf Registration, the Issuers shall
    qualify the Indenture under the Trust Indenture Act.

    (b) In connection with the Issuers' obligations with respect to the
    Shelf Registration, the Issuers shall:

    
        (i) prepare and file with the Commission a Shelf Registration on any
        form which may be utilized by the Company and which shall permit the
        disposition of the Registrable Securities in accordance with the
        intended method or methods thereof, as specified in writing by the
        Notice Holders of the Registrable Securities, and use its reasonable
        efforts to cause such registration statement to become effective in
        accordance with Section 2(a) above;

        (ii) prepare and file with the Commission such amendments and
        supplements to such registration statement and the Prospectus included
        therein as may be necessary to effect and maintain the effectiveness of
        such registration statement for the period specified in Section 2(a),
        and as may be required by the applicable 

    

  

        7

        <PAGE> 8

  
    
         rules and regulations of the
        Commission and the instructions applicable to the form of such
        registration statement and as may be necessary to permit the Notice
        Holders of the Registrable Securities to deliver the Prospectus to
        purchasers of such Securities, and furnish to the Notice Holders of the
        Registrable Securities copies of any such supplement or amendment
        simultaneously with or prior to its being used or filed with the
        Commission;

        (iii) comply, as to all matters within the Issuers' control, with
        the provisions of the Securities Act with respect to the disposition of
        all of the Registrable Securities covered by such registration statement
        in accordance with the intended methods of disposition by the Notice
        Holders thereof provided for in such registration statement;

        (iv) provide to any of (A) the Notice Holders of the Registrable
        Securities to be included in such registration statement, (B) the
        underwriters (which term, for purposes of this Agreement, shall include
        a person deemed to be an underwriter within the meaning of Section 2(11)
        of the Securities Act), if any, thereof, (C) the sales or placement
        agent, if any, therefor, (D) counsel for such underwriters or agent and
        (E) not more than one counsel for all the Holders of such Registrable
        Securities who so request of the Issuers in writing the opportunity to
        participate in the preparation of such registration statement, each
        Prospectus included therein or filed with the Commission and each
        amendment or supplement thereto;

        (v) for a reasonable period prior to the filing of such registration
        statement, and throughout the Resale Period, make available at
        reasonable times during normal business hours at the Company's
        principal place of business or such other reasonable place for
        inspection by the persons referred to in Section 3(b)(iv), who shall
        certify to the Issuers that they have a current intention to sell their
        Registrable Securities pursuant to the Shelf Registration, such
        financial and other information and books and records of the Issuers,
        and cause the officers, employees, counsel and independent certified
        public accountants of the Issuers to respond to such inquiries, as shall
        be reasonably necessary to conduct a reasonable investigation within the
        meaning of Section 11 of the Securities Act; provided, however,
        that each such party shall be required to maintain in confidence and not
        to disclose to any other person any such information or records
        reasonably designated by the Issuers in writing as being confidential,
        until such time as (A) such information becomes a matter of public
        record (whether by virtue of its inclusion in such registration
        statement or otherwise), other than as a result of a breach by such
        party of its agreement set forth in this provision or (B) such
        person shall be required so to disclose such information pursuant to a
        subpoena or order of any court or other governmental agency or body
        having jurisdiction over the matter (subject to the requirements of such
        order, and only after such person shall have given the Issuers prompt
        prior written notice of such requirement and the opportunity to contest
        the same or seek an appropriate protective order);

    

  

        8

        <PAGE> 9

  
    
        (vi) promptly notify the selling Notice Holders of Registrable
        Securities, the sales or placement agent, if any, therefor and the
        managing underwriter or underwriters, if any, thereof named in the Shelf
        Registration or a supplement thereto, and confirm such notice in
        writing, (A) when such registration statement or the Prospectus included
        therein or any Prospectus amendment or supplement or post-effective
        amendment has been filed, and, with respect to such registration
        statement or any post-effective amendment, when the same has become
        effective, (B) of the issuance by the Commission of any stop order
        suspending the effectiveness of such registration statement or the
        initiation (to the extent the Issuers have knowledge thereof) or receipt
        of any written threat of any proceedings for that purpose, (C) of the
        receipt by the Issuers of any notification with respect to the
        suspension of the qualification of the Registrable Securities for sale
        in any jurisdiction or the initiation (to the extent the Issuers have
        knowledge thereof) or receipt of any written threat of any proceeding
        for such purpose, (D) of the occurrence of (but not the nature of or
        details concerning) any event or the existence of any fact (a "Material
        Event") as a result of which any Shelf Registration shall
        contain any untrue statement of a material fact or omit to state any
        material fact required to be stated therein or necessary to make the
        statements therein not misleading, or any Prospectus shall contain any
        untrue statement of a material fact or omit to state any material fact
        required to be stated therein or necessary to make the statements
        therein, in the light of the circumstances under which they were made,
        not misleading, (E) of the determination by the Issuers that a
        post-effective amendment to a Shelf Registration will be filed with the
        Commission, which notice may, at the discretion of the Issuers (or as
        required pursuant to Section 3(g)), state that it constitutes a Deferral
        Notice, in which event the provisions of Section 3(g) shall apply or (F)
        at any time when a Prospectus is required to be delivered under the
        Securities Act, that such registration statement, Prospectus, Prospectus
        amendment or supplement or post-effective amendment does not conform in
        all material respects to the applicable requirements of the Securities
        Act and the Trust Indenture Act;

        (vii) use its reasonable efforts to obtain the withdrawal of any
        order suspending the effectiveness of such registration statement or any
        post-effective amendment thereto at the earliest practicable date;

        (viii) if requested by any managing underwriter or underwriters, any
        placement or sales agent or any Notice Holder of Registrable Securities,
        promptly incorporate in a Prospectus supplement or post-effective
        amendment such information as is required by the applicable rules and
        regulations of the Commission relating to the terms of the sale of such
        Registrable Securities, including information with respect to the
        principal amount at maturity or number of Registrable Securities being
        sold by such Holder or agent or to any underwriters, the name and
        description of such Holder, agent or underwriter, the offering price of
        such Registrable Securities and any discount, commission or other
        compensation payable in respect thereof, the purchase price being paid
        therefor by such underwriters and with respect to any other terms of the
        offering of the Registrable Securities to be sold by such Holder or
        agent or to such 

    

  

        9

        <PAGE> 10

  
    
         underwriters; and make all required filings of such
        Prospectus supplement or post-effective amendment promptly after
        notification of the matters to be incorporated in such Prospectus
        supplement or post-effective amendment;

        (ix) furnish to each Notice Holder of Registrable Securities, each
        placement or sales agent, if any, therefor, each underwriter, if any,
        thereof and the respective counsel referred to in Section 3(b)(iv) an
        executed copy (or, in the case of a Holder of Registrable Securities a
        conformed copy) of such registration statement, each such amendment or
        supplement thereto (in each case including all exhibits thereto) and
        such number of copies of such registration statement (excluding exhibits
        thereto) and of the Prospectus included in such registration statement
        (including each preliminary Prospectus and any summary Prospectus) as
        shall be reasonably requested, in conformity in all material respects
        with the applicable requirements of the Securities Act and the Trust
        Indenture Act; and the Issuers hereby consent (except during such
        periods that a Deferral Notice is outstanding and has not been revoked)
        to the use of such Prospectus (including any such preliminary or summary
        Prospectus) and any amendment or supplement thereto by each such Notice
        Holder and by any such agent and underwriter, in each case in the form
        most recently provided to such person by the Issuers in connection with
        the offering and sale of the Registrable Securities covered by the
        Prospectus (including any such preliminary or summary Prospectus) or any
        supplement or amendment thereto; and

        (x) use their reasonable efforts to (A) register or qualify, to the
        extent required by law, the Registrable Securities to be included in
        such registration statement under such securities laws or blue sky laws
        of such United States jurisdictions as any Notice Holder of such
        Registrable Securities and each placement or sales agent, if any,
        therefor and underwriter, if any, thereof shall reasonably request, and
        (B) keep such registrations or qualifications in effect and comply with
        such laws so as to permit the continuance of offers, sales and dealings
        therein in such jurisdictions during the period the Shelf Registration
        is required to remain effective under Section 2(a) and for so long as
        may be necessary to enable any such Notice Holder, agent or underwriter
        to complete its distribution of Securities pursuant to such registration
        statement but in any event not later than the date through which the
        Issuers are required to keep the Shelf Registration effective pursuant
        to Section 2(a); provided, however, that none of the
        Issuers shall be required for any such purpose to (1) qualify as a
        foreign corporation in any jurisdiction wherein it would not otherwise
        be required to qualify but for the requirements of this Section 3(b)(x),
        (2) consent to general service of process or subject itself to taxation
        in any such jurisdiction, or (3) make any changes to its certificate of
        incorporation or by-laws or any agreement between it and its
        stockholders.

    

    In case any of the foregoing obligations is dependent upon information
    provided or to be provided by a party other than the Issuers, such
    obligation shall be subject to the provision of such information by such
    party; provided that the Issuers shall use their 

  

    10

    <PAGE> 11

  
     reasonable efforts
    to obtain the necessary information from any party responsible for providing
    such information.

    (c) In the event that the Issuers would be required, pursuant to Section
    3(b)(vi)(D), to notify the selling Holders of Registrable Securities, the
    placement or sales agent, if any, therefor or the managing underwriters, if
    any, thereof named in the Shelf Registration or a supplement thereto of the
    existence of the circumstances described therein, the Issuers shall prepare
    and furnish to each such Holder, to each placement or sales agent, if any,
    and to each such underwriter, if any, a reasonable number of copies of a
    Prospectus supplemented or amended so that, as thereafter delivered to
    purchasers of Registrable Securities, such Prospectus shall conform in all
    material respects to the applicable requirements of the Securities Act and
    the Trust Indenture Act. Each Holder of Registrable Securities agrees that
    upon receipt of any notice from the Issuers, pursuant to Section 3(b)(vi)(D),
    such Holder shall forthwith discontinue (and cause any placement or sales
    agent or underwriters acting on their behalf to discontinue) the disposition
    of Registrable Securities pursuant to the registration statement applicable
    to such Registrable Securities until such Holder (i) shall have received
    copies of such amended or supplemented Prospectus and, if so directed by the
    Issuers, such Holder shall deliver to the Issuers (at the Issuers'
    expense) all copies, other than permanent file copies, then in such Holder's
    possession of the Prospectus covering such Registrable Securities at the
    time of receipt of such notice or (ii) shall have received notice from the
    Issuer that the disposition of Registrable Securities pursuant to the Shelf
    Registration may continue.

    (d) The Issuers may require each Holder of Registrable Securities as to
    which any registration pursuant to Section 2(a) is being effected to furnish
    to the Issuers such information regarding such Holder and such Holder's
    intended method of distribution of such Registrable Securities as the
    Issuers may from time to time reasonably request in writing, but only to the
    extent that such information is required in order to comply with the
    Securities Act or a request of the Commission. Each such Holder agrees to
    notify the Issuers as promptly as practicable of any inaccuracy or change in
    information previously furnished by such Holder to the Issuers or of the
    occurrence of any event in either case as a result of which any Prospectus
    relating to such registration contains or would contain an untrue statement
    of a material fact regarding such Holder or such Holder's intended method
    of disposition of such Registrable Securities or omits to state any material
    fact regarding such Holder or such Holder's intended method of disposition
    of such Registrable Securities required to be stated therein or necessary to
    make the statements therein not misleading, and promptly to furnish to the
    Issuers any additional information required to correct and update any
    previously furnished information or required so that such Prospectus shall
    not contain, with respect to such Holder or the disposition of such
    Registrable Securities, an untrue statement of a material fact or omit to
    state a material fact required to be stated therein or necessary to make the
    statements therein not misleading.

    (e) Until the expiration of two years after the Closing Date, the Issuers
    will not, and will not permit any of their "affiliates" (as
    defined in Rule 144) to, resell, without the prior written consent of
    Salomon Smith Barney Inc., any of the Securities that have been 

  

    11

<PAGE> 12

  
     reacquired
    by any of them except pursuant to an effective registration statement under
    the Securities Act.

    (f) Subject to the provisions of Section 3(g), upon the occurrence of a
    Material Event, the Issuers shall as promptly as practicable prepare and
    file a post-effective amendment to the Shelf Registration or a supplement to
    the related Prospectus or any document incorporated therein by reference or
    file any other required document that would be incorporated by reference
    into such Shelf Registration and Prospectus so that such Shelf Registration
    does not contain any untrue statement of a material fact or omit to state
    any material fact required to be stated therein or necessary to make the
    statements therein not misleading, and such Prospectus does not contain any
    untrue statement of a material fact or omit to state any material fact
    required to be stated therein or necessary to make the statements therein,
    in the light of the circumstances under which they were made, not
    misleading, as thereafter delivered to the purchasers of the Registrable
    Securities being sold thereunder, and, in the case of a post-effective
    amendment to a Shelf Registration, use all reasonable efforts to cause it to
    be declared effective as promptly as is reasonably practicable.

    (g) Upon the occurrence or existence of any pending corporate development
    or any other Material Event that, in the sole judgment of the Issuers, makes
    it appropriate to suspend the availability of the Shelf Registration and the
    related Prospectus, the Issuers shall give notice (without notice of the
    nature or details of such events) to the Notice Holders that the
    availability of the Shelf Registration is suspended (a "Deferral
    Notice") and, upon receipt of any Deferral Notice, each Notice
    Holder agrees not to sell any Registrable Securities pursuant to the Shelf
    Registration until such Notice Holder's receipt of copies of the
    supplemented or amended Prospectus provided for in clause (f) above, or
    until it is advised in writing by the Issuers that the Prospectus may be
    used, and has received copies of any additional or supplemental filings that
    are incorporated or deemed incorporated by reference in such Prospectus. The
    period during which the availability of the Shelf Registration and any
    Prospectus is suspended (the "Deferral Period") shall,
    without the Issuers incurring any obligation to pay liquidated damages
    pursuant to Section 2(c), not exceed forty-five (45) days in any three (3)
    month period or ninety (90) days in any twelve (12) month period.

  

4. Holder's Obligations. Each Holder agrees, by acquisition of the
Registrable Securities, that no Holder of Registrable Securities shall be
entitled to sell any of such Registrable Securities pursuant to a Shelf
Registration or to receive a Prospectus relating thereto, unless such Holder has
furnished the Company with a Notice and Questionnaire as required pursuant to
Section 2(b) hereof (including the information required to be included in such
Notice and Questionnaire) and the information set forth in the next sentence.
Each Notice Holder agrees promptly to furnish to the Company all information
required to be disclosed in order to make the information previously furnished
to the Company by such Notice Holder not misleading and any other information
regarding such Notice Holder and the distribution of such Registrable Securities
as may be required to be disclosed in the Shelf Registration under applicable
law or pursuant to comments or a request by the Commission. Each Holder further
agrees not to sell any Registrable Securities pursuant to the Shelf Registration
without delivering, or causing to be delivered, a Prospectus to the purchaser
thereof and, following termination of the Effectiveness 

12

<PAGE> 13

 Period, to notify the
Issuers, within 10 business days of their request, of the amount of Registrable
Securities sold pursuant to the Shelf Registration and, in the absence of a
response, the Issuers may assume that all of the Holder's Registrable
Securities were so sold.

5. Registration Expenses. The Issuers agree to bear and to pay or
cause to be paid promptly upon request being made therefor all expenses incident
to the Company's performance of or compliance with this Agreement, including
(a) all Commission and any NASD registration and filing fees and expenses, (b)
all fees and expenses in connection with the qualification of the Securities for
offering and sale under the State securities and blue sky laws pursuant to
Section 3(b)(x) hereof, including reasonable fees and disbursements of one
counsel for the placement or sales agent or underwriters, if any, in connection
with such qualifications, (c) all expenses relating to the preparation,
printing, distribution and reproduction of each registration statement required
to be filed hereunder, each Prospectus included therein or prepared for
distribution pursuant hereto, each amendment or supplement to the foregoing, the
certificates representing the Securities, (d) all costs and expenses relating to
admitting the Securities for trading in the PORTAL market, (e) fees and expenses
of the Trustee under the Indenture, and of any escrow agent or custodian, and of
the registrar and transfer agent for the Shares issued upon conversion of the
Notes, (f) internal expenses (including all salaries and expenses of the Issuers'
officers and employees performing legal or accounting duties), (g) fees,
disbursements and expenses of counsel and independent certified public
accountants of the Issuers (including the expenses of any opinions or "cold
comfort" letters required by or incident to such performance and
compliance) and (h) reasonable fees, disbursements and expenses of one counsel
for the Holders of Registrable Securities retained in connection with the Shelf
Registration (which shall initially be Cleary, Gottlieb, Steen & Hamilton,
but which may, with the written consent of the Initial Purchasers, be another
nationally recognized law firm experienced in securities matters designated by
Holders of at least a majority in aggregate Applicable Principal Amount and
Applicable Conversion Price of the Registrable Securities being registered), and
fees, expenses and disbursements of any other persons, including special
experts, retained by the Issuers in connection with such registration
(collectively, the "Registration Expenses"). To the extent that
any Registration Expenses are reasonably incurred, assumed or paid by any Holder
of Registrable Securities or any placement or sales agent therefor or
underwriter hereof, the Issuers shall reimburse such person for the full amount
of the Registration Expenses so incurred, assumed or paid promptly after receipt
of a documented request therefor. Notwithstanding the foregoing, the Holders of
the Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such Holders (severally or jointly), other
than the counsel and experts specifically referred to above.

6. Representations and Warranties. The Issuers represent and warrant
to, and agree with, the Initial Purchasers and each of the Holders from time to
time of Registrable Securities that:

  
    (a) Each registration statement covering Registrable Securities and each
    Prospectus contained therein or furnished pursuant to Section 3(c) hereof
    and any further amendments or supplements to any such registration statement
    or Prospectus, when it becomes effective with the Commission, as the case
    may be, and, in the case of an underwritten offering of Registrable
    Securities, at the time of the closing under the 

  

    13

    <PAGE> 14

  
     underwriting agreement
    relating thereto, will conform in all material respects to the applicable
    requirements of the Securities Act and the Trust Indenture Act and will not
    contain an untrue statement of a material fact or omit to state a material
    fact required to be stated therein or necessary to make the statements
    therein not misleading; and at all times subsequent to the Effective Time
    when a Prospectus would be required to be delivered under the Securities
    Act, other than during a Deferral Period in accordance with Section 3(g)
    hereof or from (i) such time as a notice has been given to Holders of
    Registrable Securities pursuant to Section 3(b)(vi)(D) hereof until (ii)
    such time as the Company furnishes an amended or supplemented Prospectus
    pursuant to Section 3(c) hereof or such time as the Company provides notice
    that offers and sales pursuant to the Shelf Registration may continue, each
    such registration statement, and each Prospectus (including any summary
    Prospectus) contained therein or furnished pursuant to Section 3(b) hereof,
    as then amended or supplemented, will conform in all material respects to
    the applicable requirements of the Securities Act and the Trust Indenture
    Act; provided, however, that this representation and warranty
    shall not apply to any statements or omissions made in reliance upon and in
    conformity with information furnished in writing to the Issuers (including
    in a Notice and Questionnaire) by or on behalf of a Holder of Registrable
    Securities expressly for use therein.

    (b) Any documents incorporated by reference in any Prospectus referred to
    in Section 6(a) hereof, when they become or became effective or are or were
    filed with the Commission, as the case may be, will conform or conformed in
    all material respects to the requirements of the Securities Act or the
    Exchange Act, as applicable, and none of such documents will contain or
    contained an untrue statement of a material fact or will omit or omitted to
    state a material fact required to be stated therein or necessary to make the
    statements therein not misleading, provided, however, that
    this representation and warranty shall not apply to any statements or
    omissions made in reliance upon and in conformity with information furnished
    in writing to the Issuers (including in a Notice and Questionnaire) by a
    Holder of Registrable Securities expressly for use therein.

    (c) The execution, delivery and performance by each Issuer of this
    Agreement, and compliance by such Issuer with the terms hereof and the
    consummation of the transactions contemplated hereby, will not conflict with
    or result in a breach or violation of any of the terms or provisions of, or
    constitute a default under, or result in the creation or imposition of any
    lien, charge or encumbrance which is material to the Issuers and their
    subsidiaries, taken as a whole, upon any property or assets of such Issuer
    or any of its subsidiaries pursuant to, any agreement or instrument which is
    material to the Issuers and their subsidiaries, taken as a whole, to which
    such Issuer or any of its subsidiaries is a party or by which such Issuer or
    any of its subsidiaries is bound or to which any of the property or assets
    of such Issuer or any of its subsidiaries is subject, nor will such actions
    result in any violation of the provisions of the charter or by-laws of such
    Issuer or any of its subsidiaries or any statute or any judgment, order,
    decree, rule or regulation which is material to the Issuers and their
    subsidiaries, taken as a whole, of any court or arbitrator or governmental
    agency or body having jurisdiction over such Issuer or any of its
    subsidiaries or any of its properties or assets; and no consent, approval,
    authorization or order of, or filing or registration with, any such court or
    arbitrator or governmental agency or body under any such statute, judgment,
    order, decree, rule or regulation is

  

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    <PAGE> 15

  
    required for the execution, delivery
    and performance by such Issuer of this Agreement and compliance by such
    Issuer with the terms hereof and the consummation of the transactions
    contemplated by this Agreement, except for such consents, approvals,
    authorizations, filings, registrations or qualifications (i) which shall
    have been obtained or made prior to the Closing Date and (ii) as may be
    required to be obtained or made under the Securities Act and applicable
    state securities laws.

    (d) This Agreement has been duly authorized, executed and delivered by
    each of the Issuers.

  

7. Indemnification.

  
    (a) Indemnification by the Issuers. In connection with the Shelf
    Registration, the Issuers shall, and hereby agree to, indemnify and hold
    harmless each of the Holders of Registrable Securities included in such
    Shelf Registration, and each person who is named in such Shelf Registration
    or a supplement thereto as an underwriter in any offering or sale of such
    Registrable Securities and each person who controls any such person within
    the meaning of the Securities Act or the Exchange Act (each, a "Participant")
    against any losses, claims, damages or liabilities, joint or several, to
    which such Participant may become subject under the Securities Act, the
    Exchange Act or other federal or state statutory law or regulation, at
    common law or otherwise, insofar as such losses, claims, damages or
    liabilities (or actions in respect thereof) arise out of or are based upon
    an untrue statement or alleged untrue statement of a material fact contained
    in any registration statement under which such Registrable Securities were
    registered under the Securities Act, or any preliminary, final or summary
    Prospectus contained therein or furnished by the Issuers to any such
    Participant, or any amendment or supplement thereto, or arise out of or are
    based upon the omission or alleged omission to state therein a material fact
    required to be stated therein or necessary to make the statements therein
    not misleading (in the case of any Prospectus, in light of the circumstances
    under which they were made) and the Issuers shall, and hereby agree to,
    reimburse each such Participant for any legal or other expenses reasonably
    incurred by it in connection with investigating or defending any such loss,
    claim, damage, liability or action; provided, however, that
    the Issuers shall not be liable to any such person in any such case to the
    extent that any such loss, claim, damage or liability arises out of or is
    based upon an untrue statement or alleged untrue statement or omission or
    alleged omission made in such registration statement, or preliminary, final
    or summary Prospectus, or amendment or supplement thereto, in reliance upon
    and in conformity with written information furnished to the Issuers by such
    Participant (including in any Notice and Questionnaire) expressly for use
    therein; provided, further, that this indemnity agreement
    shall not apply to any loss, liability, claim, damage or expense arising
    from (i) an offer or sale of Registrable Securities occurring during a
    Deferral Period, if Notice Holders received a Deferral Notice, or (ii) the
    Participant's failure to deliver at or prior to the written confirmation
    of sale, the most recent Prospectus, as amended or supplemented, and such
    Prospectus, as amended or supplemented, would have corrected such untrue
    statement or alleged untrue statement of a material fact. This indemnity
    agreement will be in addition to any liability which the Issuers may
    otherwise have.

  

    15

    <PAGE> 16

  
    (b) Indemnification by Participants. Each Participant, severally
    and not jointly, agrees to indemnify and hold harmless the Issuers, each of
    the Issuers' directors, officers and employees and each person who
    controls the Issuers within the meaning of either the Securities Act or the
    Exchange Act, to the same extent as the foregoing indemnity from the
    Issuers, but only with reference to written information furnished to the
    Issuers (including in any Notice and Questionnaire) by or on behalf of such
    Participant specifically for use in any registration statement, or any
    preliminary or final or summary Prospectus contained therein or any
    amendment or supplement thereto. This indemnity agreement will be
    acknowledged by each Participant that is not an Initial Purchaser in such
    Participant's Notice and Questionnaire and will be in addition to any
    liability which any such person may otherwise have.

    (c) Promptly after receipt by an indemnified party under Section 7(a) or
    (b) of notice of the commencement of any action, such indemnified party
    will, if a claim in respect thereof is to be made against the indemnifying
    party under such subsection, notify the indemnifying party in writing of the
    commencement thereof; but the omission so to notify the indemnifying party
    will not relieve the indemnifying party from any liability which it may have
    to any indemnified party otherwise than under Section 7(a) or (b). In case
    any such action is brought against any indemnified party, and it notifies
    the indemnifying party of the commencement thereof, the indemnifying party
    will be entitled to participate therein, and to the extent that it may elect
    by written notice delivered to the indemnified party promptly after
    receiving the aforesaid notice from such indemnified party, to assume the
    defense thereof, with counsel satisfactory to such indemnified party; provided
    that, if the defendants in any such action include both the indemnified
    party and the indemnifying party and representation of both parties by the
    same counsel would be inappropriate due to actual or potential conflicting
    interests between them, the indemnified party or parties shall have the
    right to select separate counsel to participate in the defense of such
    action on behalf of such indemnified party or parties. Upon receipt of
    notice from the indemnifying party to such indemnified party of its election
    so to assume the defense of such action and approval by the indemnified
    party of counsel, the indemnifying party will not be liable to such
    indemnified party under Section 7(a) or (b) for any legal or other expenses
    subsequently incurred by such indemnified party (other than reasonable costs
    of investigation) in connection with the defense thereof unless (i) the
    indemnified party shall have employed separate counsel in connection with
    the assertion of legal defenses in accordance with the proviso to the
    immediately preceding sentence (it being understood, however, that the
    indemnifying party shall not be liable for the expenses of more than one
    separate firm of attorneys (in addition to any local counsel), reasonably
    satisfactory to the indemnifying party, representing the indemnified parties
    who are parties to such action), (ii) the indemnifying party shall not have
    employed counsel satisfactory to the indemnified party to represent the
    indemnified party within a reasonable time after notice of commencement of
    the action or (iii) the indemnifying party has authorized the employment of
    counsel for the indemnified party at the expense of the indemnifying party;
    and except that, if clause (i) or (iii) is applicable, such liability shall
    be only in respect of the counsel referred to in such clause (i) or (iii).

  

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<PAGE> 17

    No indemnifying party shall, without the prior written consent of the
indemnified party, which consent shall not be unreasonably withheld, effect any
settlement of any pending or threatened action in respect of which any
indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement includes an
unconditional release of such indemnified party from all liability on any claims
that are the subject matter of such action.

  
    (d) Contribution. Each party hereto agrees that, if for any reason
    the indemnification provisions contemplated by Section 7(a) or Section 7(b)
    are unavailable to or insufficient to hold harmless an indemnified party in
    respect of any losses, claims, damages or liabilities (or actions in respect
    thereof) referred to therein, then each indemnifying party shall contribute
    to the amount paid or payable by such indemnified party as a result of such
    losses, claims, damages or liabilities (or actions in respect thereof) in
    such proportion as is appropriate to reflect the relative fault of the
    indemnifying party and the indemnified party in connection with the
    statements or omissions which resulted in such losses, claims, damages or
    liabilities (or actions in respect thereof), as well as any other relevant
    equitable considerations. The relative fault of such indemnifying party and
    indemnified party shall be determined by reference to, among other things,
    whether the untrue or alleged untrue statement of a material fact or
    omission or alleged omission to state a material fact relates to information
    supplied by such indemnifying party or by such indemnified party, and the
    parties' relative intent, knowledge, access to information and opportunity
    to correct or prevent such statement or omission. The parties hereto agree
    that it would not be just and equitable if contributions pursuant to this
    Section 7(d) were determined by pro rata allocation (even if the
    Participants were treated as one entity for such purpose) or by any other
    method of allocation which does not take account of the equitable
    considerations referred to in this Section 7(d). The amount paid or payable
    by an indemnified party as a result of the losses, claims, damages, or
    liabilities (or actions in respect thereof) referred to above shall be
    deemed to include any legal or other fees or expenses reasonably incurred by
    such indemnified party in connection with investigating or defending any
    such action or claim. Notwithstanding the provisions of this Section 7(d),
    no Participant shall be required to contribute any amount in excess of the
    dollar amount of the proceeds received by such Participant from the sale of
    any Registrable Securities, and in no case shall any underwriter (except as
    may be provided in any agreement among the underwriters relating to the
    offering of the Securities) be required to contribute any amount in excess
    of the purchase discount or commission applicable to the Registrable
    Securities underwritten by it. No person guilty of fraudulent
    misrepresentation (within the meaning of Section 11(f) of the Securities
    Act) shall be entitled to contribution from any person who was not guilty of
    such fraudulent misrepresentation. The Participants' obligations in this
    Section 7(d) to contribute shall be several in proportion to the amount of
    Registrable Securities (measured by aggregate principal amount at maturity
    of the Notes or number of shares of Common Stock) registered or
    underwritten, as the case may be, by them and not joint.

    (e) The obligations of the Issuers under this Section 7 shall be in
    addition to any liability which the Issuers may otherwise have and shall
    extend, upon the same terms and conditions, to each officer, director and
    partner of each Participant and each person, if any, who controls any
    Participant within the meaning of the Securities Act or the

  

    17

    <PAGE> 18

  
    Exchange Act;
    and the obligations of the Participants contemplated by this Section 7 shall
    be in addition to any liability which the respective Participants may
    otherwise have and shall extend, upon the same terms and conditions, to each
    officer, employee and director of each Issuer (including any person who,
    with his consent, is named in any registration statement as about to become
    a director of an Issuer), and to each person, if any, who controls the
    Company within the meaning of the Securities Act or the Exchange Act.

  

8. Rule 144. The Issuers covenant to the Holders of Registrable
Securities that the Issuers shall use their reasonable efforts to timely file
the reports required to be filed by them under the Exchange Act referred to in
subparagraph (c)(1) of Rule 144 adopted by the Commission under the Securities
Act), all to the extent required from time to time to enable such Holder to sell
Registrable Securities without registration under the Securities Act within the
limitations of the exemption provided by Rule 144 under the Securities Act, or
any similar or successor rule or regulation hereafter adopted by the Commission.
Upon the request of any Holder of Registrable Securities in connection with that
Holder's sale pursuant to Rule 144, the Company shall deliver to such Holder a
written statement as to whether it has complied with such requirements.

9. Miscellaneous.

  
    (a) Notices. All notices, requests, claims, demands, waivers and
    other communications hereunder shall be in writing and effective only on
    receipt, and if sent to the Issuers, will be mailed, delivered or telefaxed
    to 1411 Broadway, New York, NY 10018, Attention: Ira M. Dansky, Esq.,
    General Counsel (telecopier no.: (212) 790-9988), with a copy mailed,
    delivered or telefaxed to William V. Fogg, Esq., (telefax no.: (212)
    474-3700) at Cravath, Swaine & Moore, Worldwide Plaza, 825 Eighth
    Avenue, New York, NY 10019; if to an Initial Purchaser, to it at the address
    for the Initial Purchasers set forth in the Purchase Agreement; and if to a
    Holder, will be mailed, delivered to telefaxed to the address of such Holder
    set forth in the security register, a Notice and Questionnaire or other
    records of the Issuer or to such other address as the Issuer or any such
    Holder may have furnished to the other in writing in accordance herewith,
    except that notices of change of address shall be effective only upon
    receipt.

    (b) Parties in Interest. All the terms and provisions of this
    Agreement shall be binding upon, shall inure to the benefit of and shall be
    enforceable by the respective successors and assigns of the parties hereto.
    In the event that any transferee of any Holder of Registrable Securities
    shall acquire Registrable Securities, in any manner, whether by gift,
    bequest, purchase, operation of law or otherwise, such transferee shall,
    without any further writing or action of any kind, be deemed a party hereto
    for all purposes and such Registrable Securities shall be held subject to
    all of the terms of this Agreement, and by taking and holding such
    Registrable Securities such transferee shall be entitled to receive the
    benefits of, and be conclusively deemed to have agreed to be bound by and to
    perform, all of the applicable terms and provisions of this Agreement.

    (c) Survival. The respective agreements, representations,
    warranties, indemnities and other statements of the Issuers or their
    officers and of the Holders set forth in this Agreement shall remain in full
    force and effect regardless of any investigation (or 

  

    18

    <PAGE> 19

  
     statement as to the
    results thereof) made by or on behalf of any Holder any director, any
    Issuer, any agent or underwriter or any director, officer, or any
    controlling person of any of the foregoing, and shall survive delivery of
    and payment for the Securities pursuant to the Purchase Agreement and the
    transfer and registration of the Securities pursuant to this Agreement.

    (d) Applicable Law. This Agreement will be governed by and
    construed in accordance with the laws of the State of New York applicable to
    contracts made and to be performed within the State of New York.

    (e) Headings. The section headings used herein are inserted for
    convenience only and shall not affect the construction hereof.

    (f) Entire Agreement; Amendments. This Agreement and the other
    writings referred to herein (including the Purchase Agreement and the
    Indenture) or delivered pursuant hereto which form a part hereof contain the
    entire understanding of the parties with respect to its subject matter. This
    Agreement and the Purchase Agreement supersede all prior agreements and
    understandings between the parties with respect to their subject matter.
    This Agreement may be amended and the observance of any term of this
    Agreement may be waived (either generally or in a particular instance and
    either retroactively or prospectively) only by a written instrument duly
    executed by the Issuers and the Holders of at least a majority of the Shares
    constituting Registrable Securities at the time outstanding (with Holders of
    Notes deemed to be the Holders, for the purposes of this Section, of the
    number of outstanding Shares into which such Notes are or would be
    convertible or exchangeable as of the date on which such consent is
    requested). Each Holder of any Registrable Securities at the time or
    thereafter outstanding shall be bound by any amendment or waiver effected
    pursuant to this Section 9(f), whether or not any notice, writing or marking
    indicating such amendment or waiver appears on such Registrable Securities
    or is delivered to such Holder.

    (g) Inspection. For so long as this Agreement shall be in effect,
    this Agreement and a complete list of the names and addresses of all the
    Holders of Registrable Securities shall be made available for inspection and
    copying during normal business hours on any business day by any Holder of
    Registrable Securities for proper purposes only (which shall include any
    purpose related to the rights of the Holders of Registrable Securities under
    the Securities, the Indenture and this Agreement) at the offices of the
    Company at the address thereof set forth in Section 9(a) above, or at the
    office of the Trustee under the Indenture.

    (h) Counterparts. This Agreement may be executed by one or more
    counterparts, each of which shall constitute an original and all of which
    together shall constitute one and the same instrument.

  

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<PAGE> 20

Agreed to and accepted as of the date referred to above.

  		

                        Very truly yours,

                        
                        JONES APPAREL GROUP, INC.

                        
                        
                        By /s/ Ira M. Dansky

                             Name: Ira M. Dansky

                             Title: Secretary

                        

                        JONES APPAREL GROUP USA, INC.

                        
                        By /s/ Ira M. Dansky

                             Name: Ira M. Dansky

                             Title: Secretary

                        

                        JONES APPAREL GROUP HOLDINGS, INC.

                        
                        By /s/ Ira M. Dansky

                             Name: Ira M. Dansky

                             Title: President

                        

                        NINE WEST GROUP INC.

                        
                        By /s/ Ira M. Dansky

                             Name: Ira M. Dansky

                             Title: Executive Vice President

                             20

                            <PAGE> 21

The foregoing Agreement is hereby confirmed and accepted as of the date
first above written.

SALOMON SMITH BARNEY INC.

BEAR, STEARNS & CO. INC.

By: Salomon Smith Barney Inc.

By  /s/ Alan Rifkin

     Name:  Alan Rifkin

     Title:  Director

21

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