Document:

<PAGE>

                                                                     EXHIBIT 4.2

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                         TRANSKARYOTIC THERAPIES, INC.,

                                     ISSUER

                                       and

                              THE BANK OF NEW YORK,

                                     TRUSTEE

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

                                    INDENTURE

                             Dated as of May 4, 2004

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

                             Senior Debt Securities

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

<PAGE>

                            CROSS-REFERENCE TABLE(1)
<TABLE>
<CAPTION>
Section of
Trust Indenture Act                                                                              Section of
of 1939, as amended                                                                              Indenture
-------------------                                                                              ------------
<S>                                                                                              <C>
310(a)....................................................................................       7.09
310(b)....................................................................................       7.08
                                                                                                 7.10
310(c)....................................................................................       Inapplicable
311(a)....................................................................................       7.13(a)
311(b)....................................................................................       7.13(b)
311(c)....................................................................................       Inapplicable
312(a)....................................................................................       5.02(a)
312(b)....................................................................................       5.02(b)
312(c)....................................................................................       5.02(c)
313(a)....................................................................................       5.04(a)
313(b)....................................................................................       5.04(b)
313(c)....................................................................................       5.04(a)
                                                                                                 5.04(b)
313(d)....................................................................................       5.04(c)
314(a)....................................................................................       5.03
314(b)....................................................................................       Inapplicable
314(c)....................................................................................       13.06
314(d)....................................................................................       Inapplicable
314(e)....................................................................................       13.06
314(f)....................................................................................       Inapplicable
315(a)....................................................................................       7.01(a)
                                                                                                 7.02
315(b)....................................................................................       6.07
315(c)....................................................................................       7.01
315(d)....................................................................................       7.01(b)
                                                                                                 7.01(c)
315(e)....................................................................................       6.07
316(a)....................................................................................       6.06
                                                                                                 8.04
316(b)....................................................................................       6.04
316(c)....................................................................................       8.01
317(a)....................................................................................       6.02
317(b)....................................................................................       4.03
318(a)....................................................................................       13.08
</TABLE>

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

                                      -i-
<PAGE>

                              TABLE OF CONTENTS(2)

<TABLE>
<CAPTION>
                                                                                                             Page
                                                                                                             ----
                                    ARTICLE I

                                   DEFINITIONS
<S>                                                                                                          <C>
SECTION  1.01           Definitions of Terms...............................................................    1

                                   ARTICLE II

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

SECTION  2.01           Designation and Terms of Securities................................................    5
SECTION  2.02           Form of Securities and Trustee's Certificate.......................................    7
SECTION  2.03           Denominations; Provisions for Payment..............................................    7
SECTION  2.04           Execution and Authentications......................................................    8
SECTION  2.05           Registration of Transfer and Exchange..............................................    9
SECTION  2.06           Temporary Securities...............................................................   10
SECTION  2.07           Mutilated, Destroyed, Lost or Stolen Securities....................................   11
SECTION  2.08           Cancellation.......................................................................   11
SECTION  2.09           Benefits of Indenture..............................................................   12
SECTION  2.10           Authenticating Agent...............................................................   12
SECTION  2.11           Global Securities..................................................................   12

                                   ARTICLE III

              REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION  3.01           Redemption.........................................................................   13
SECTION  3.02           Notice of Redemption...............................................................   14
SECTION  3.03           Payment Upon Redemption............................................................   15
SECTION  3.04           Sinking Fund.......................................................................   15
SECTION  3.05           Satisfaction of Sinking Fund Payments with Securities..............................   15
SECTION  3.06           Redemption of Securities for Sinking Fund..........................................   16

                                   ARTICLE IV

                                    COVENANTS

SECTION  4.01           Payment of Principal, Premium and Interest.........................................   16
SECTION  4.02           Maintenance of Office or Agency....................................................   16
SECTION  4.03           Paying Agents......................................................................   17
SECTION  4.04           Appointment to Fill Vacancy in Office of Trustee...................................   18
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                                                           <C>
SECTION  4.05           Compliance with Consolidation Provisions...........................................   18

                                    ARTICLE V

        SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE

SECTION  5.01           Company to Furnish Trustee Names and Addresses of Securityholders..................   18
SECTION  5.02           Preservation Of Information; Communications With Securityholders...................   18
SECTION  5.03           Reports by the Company.............................................................   19
SECTION  5.04           Reports by the Trustee.............................................................   19

                                   ARTICLE VI

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION  6.01           Events of Default..................................................................   20
SECTION  6.02           Collection of Indebtedness and Suits for Enforcement by Trustee....................   22
SECTION  6.03           Application of Moneys Collected....................................................   23
SECTION  6.04           Limitation on Suits................................................................   23
SECTION  6.05           Rights and Remedies Cumulative; Delay or Omission Not Waiver.......................   24
SECTION  6.06           Control by Securityholders.........................................................   24
SECTION  6.07           Undertaking to Pay Costs...........................................................   25

                                   ARTICLE VII

                             CONCERNING THE TRUSTEE

SECTION  7.01           Certain Duties and Responsibilities of Trustee.....................................   25
SECTION  7.02           Certain Rights of Trustee..........................................................   27
SECTION  7.03           Trustee Not Responsible for Recitals or Issuance or Securities.....................   28
SECTION  7.04           May Hold Securities................................................................   28
SECTION  7.05           Moneys Held in Trust...............................................................   28
SECTION  7.06           Compensation and Reimbursement.....................................................   29
SECTION  7.07           Reliance on Officers' Certificate..................................................   29
SECTION  7.08           Disqualification; Conflicting Interests............................................   30
SECTION  7.09           Corporate Trustee Required; Eligibility............................................   30
SECTION  7.10           Resignation and Removal; Appointment of Successor..................................   30
SECTION  7.11           Acceptance of Appointment By Successor.............................................   31
SECTION  7.12           Merger, Conversion, Consolidation or Succession to Business........................   33
SECTION  7.13           Preferential Collection of Claims Against the Company..............................   33

                                  ARTICLE VIII

                         CONCERNING THE SECURITYHOLDERS

SECTION  8.01           Evidence of Action by Securityholders..............................................   33
SECTION  8.02           Proof of Execution by Securityholders..............................................   34
</TABLE>

                                      -iii-
<PAGE>

<TABLE>
<S>                                                                                                           <C>
SECTION  8.03           Who May be Deemed Owners...........................................................   34
SECTION  8.04           Certain Securities Owned by Company Disregarded....................................   34
SECTION  8.05           Actions Binding on Future Securityholders..........................................   35

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION  9.01           Supplemental Indentures Without the Consent of Securityholders.....................   35
SECTION  9.02           Supplemental Indentures With Consent of Securityholders............................   36
SECTION  9.03           Effect of Supplemental Indentures..................................................   36
SECTION  9.04           Securities Affected by Supplemental Indentures.....................................   37
SECTION  9.05           Execution of Supplemental Indentures...............................................   37

                                    ARTICLE X

                                SUCCESSOR ENTITY

SECTION  10.01          Company May Consolidate, Etc.......................................................   38
SECTION  10.02          Successor Entity Substituted.......................................................   38
SECTION  10.03          Evidence of Consolidation, Etc. to Trustee.........................................   39

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

SECTION  11.01          Satisfaction and Discharge of Indenture............................................   39
SECTION  11.02          Discharge of Obligations...........................................................   39
SECTION  11.03          Deposited Moneys to be Held in Trust...............................................   40
SECTION  11.04          Payment of Moneys Held by Paying Agents............................................   40
SECTION  11.05          Repayment to Company...............................................................   40

                                   ARTICLE XII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION  12.01          No Recourse........................................................................   40

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION  13.01          Effect on Successors and Assigns...................................................   41
SECTION  13.02          Actions by Successor...............................................................   41
SECTION  13.03          Surrender of Company Powers........................................................   41
SECTION  13.04          Notices............................................................................   41
SECTION  13.05          Governing Law......................................................................   42
</TABLE>

                                      -iv-
<PAGE>

<TABLE>
<S>                                                                                                           <C>
SECTION  13.06          Treatment of Securities as Debt....................................................   42
SECTION  13.07          Compliance Certificates and Opinions...............................................   42
SECTION  13.08          Payments on Business Days..........................................................   42
SECTION  13.09          Conflict with Trust Indenture Act..................................................   43
SECTION  13.10          Counterparts.......................................................................   43
SECTION  13.11          Separability.......................................................................   43
SECTION  13.12          Assignment.........................................................................   43
</TABLE>

(2) This Table of Contents does not constitute part of the Indenture and shall
not have any bearing on the interpretation of any of its terms or provisions.

                                      -v-
<PAGE>

      INDENTURE, dated as of May 4, 2004, among Transkaryotic Therapies, Inc., a
Delaware corporation (the "Company"), and The Bank of New York, a New York
banking corporation, as trustee (the "Trustee"):

      WHEREAS, for its lawful corporate purposes, the Company has duly
authorized the execution and delivery of this Indenture to provide for the
issuance of unsecured debt securities (hereinafter referred to as the
"Securities"), in an unlimited aggregate principal amount to be issued from time
to time in one or more series as in this Indenture provided, as registered
Securities without coupons, to be authenticated by the certificate of the
Trustee;

      WHEREAS, to provide the terms and conditions upon which the Securities are
to be authenticated, issued and delivered, the Company has duly authorized the
execution of this Indenture; and

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

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

                                   ARTICLE I

                                   DEFINITIONS

SECTION 1.01 Definitions of Terms.

      The terms defined in this Section (except as in this Indenture otherwise
expressly provided or unless the context otherwise requires) for all purposes of
this Indenture and of any indenture supplemental hereto shall have the
respective meanings specified in this Section and shall include the plural as
well as the singular. All other terms used in this Indenture that are defined in
the Trust Indenture Act of 1939, as amended, or that are by reference in such
Act defined in the Securities Act of 1933, as amended (except as herein
otherwise expressly provided or unless the context otherwise requires), shall
have the meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

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

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

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

<PAGE>

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

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

      "Certificate" means a certificate signed by the principal executive
officer, the principal financial officer or the principal accounting officer of
the Company. The Certificate need not comply with the provisions of Section
13.07.

      "Company" means Transkaryotic Therapies, Inc., a corporation duly
organized and existing under the laws of the State of Delaware, and, subject to
the provisions of Article Ten, shall also include its successors and assigns.

      "Corporate Trust Office" means the office of the Trustee at which, at any
particular time, its corporate trust business shall be principally administered
in The City of New York, except that whenever a provision herein refers to an
office or agency of the Trustee in the Borough of Manhattan, The City of New
York, such office is located, at the date hereof, at 101 Barclay Street, New
York, New York 10286, Attention: Corporate Trust Administration or such other
address as the Trustee may designate from time to time by notice to the Holders
and the Company, or the principal corporate trust office of any successor
Trustee (or such other address as such successor Trustee may designate from time
to time by notice to the Holders and the Company..

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

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

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

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

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

                                      -2-
<PAGE>

      "Governmental Obligations" means securities that are (i) direct
obligations of the United States of America for the payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America that, in either case, are not
callable or redeemable at the option of the issuer thereof, and shall also
include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
Governmental Obligation or a specific payment of principal of or interest on any
such Governmental Obligation held by such custodian for the account of the
holder of such depositary receipt; provided, however, that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depositary receipt from any amount received by the
custodian in respect of the Governmental Obligation or the specific payment of
principal of or interest on the Governmental Obligation evidenced by such
depositary receipt.

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

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

      "Interest Payment Date", when used with respect to any installment of
interest on a Security of a particular series, means the date specified in such

      Security or in a Board Resolution or in an indenture supplemental hereto
with respect to such series as the fixed date on which an installment of
interest with respect to Securities of that series is due and payable.

      "Officers' Certificate" means a certificate signed by the President or a
Vice President and by the Treasurer or an Assistant Treasurer or the Controller
or an Assistant Controller or the Secretary or an Assistant Secretary of the
Company that is delivered to the Trustee in accordance with the terms hereof.
Each such certificate shall include the statements provided for in Section
13.07, if and to the extent required by the provisions thereof.

      "Opinion of Counsel" means an opinion in writing of legal counsel, who may
be an employee of or counsel for the Company, that is delivered to the Trustee
in accordance with the terms hereof. Each such opinion shall include the
statements provided for in Section 13.07, if and to the extent required by the
provisions thereof.

      "Outstanding", when used with reference to Securities of any series,
means, subject to the provisions of Section 8.04, as of any particular time, all
Securities of that series theretofore authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore canceled by the Trustee
or any paying agent, or delivered to the Trustee or any paying agent for
cancellation or that have previously been canceled; (b) Securities or portions
thereof for the payment or redemption of which moneys or Governmental
Obligations in the necessary amount shall have been deposited in trust with the
Trustee or with any paying agent (other than the

                                      -3-
<PAGE>

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

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

      "Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 2.07 in lieu of a lost, destroyed or
stolen Security shall be deemed to evidence the same debt as the lost, destroyed
or stolen Security.

      "Responsible Officer" when used with respect to the Trustee means the ,
any vice president, assistant vice president, assistant secretary, assistant
treasurer, any trust officer, or any other officer of the Trustee customarily
performing functions similar to those performed by the Persons who at the time
shall be such officers, respectively, or to whom any corporate trust matter is
referred because of his or her knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.

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

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

      "Subsidiary" means, with respect to any Person, (i) any corporation at
least a majority of whose outstanding Voting Stock shall at the time be owned,
directly or indirectly, by such Person or by one or more of its Subsidiaries or
by such Person and one or more of its Subsidiaries, (ii) any general
partnership, joint venture or similar entity, at least a majority of whose
outstanding partnership or similar interests shall at the time be owned by such
Person, or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership of which such Person or
any of its Subsidiaries is a general partner.

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

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

                                      -4-
<PAGE>

      "Voting Stock", as applied to stock of any Person, means shares,
interests, participations or other equivalents in the equity interest (however
designated) in such Person having ordinary voting power for the election of a
majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason
of the occurrence of a contingency.

                                   ARTICLE II

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

SECTION 2.01 Designation and Terms of Securities.

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

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

            (2) any limit upon the aggregate principal amount of the Securities
of that series that may be authenticated and delivered under this Indenture
(except for Securities authenticated and delivered upon registration of transfer
of, or in exchange for, or in lieu of, other Securities of that series);

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

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

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

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

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

                                      -5-
<PAGE>

            (8) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions
(including payments made in cash in satisfaction of future sinking fund
obligations) or at the option of a holder thereof and the period or periods
within which, the price or prices at which, and the terms and conditions upon
which, Securities of the series shall be redeemed or purchased, in whole or in
part, pursuant to such obligation;

            (9) the form of the Securities of the series including the form of
the Certificate of Authentication for such series;

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

            (11) any and all other terms with respect to such series (which
terms shall not be inconsistent with the terms of this Indenture, as amended by
any supplemental indenture) including any terms which may be required by or
advisable under United States laws or regulations or advisable in connection
with the marketing of Securities of that series;

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

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

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

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

      All Securities of any one series shall be substantially identical except
as to denomination and except as may otherwise be provided in or pursuant to any
such Board Resolution or in any indentures supplemental hereto.

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

      Securities of any particular series may be issued at various times, with
different dates on which the principal or any installment of principal is
payable, with different rates of interest, if any, or different methods by which
rates of interest may be determined, with different dates on which such interest
may be payable and with different redemption dates.

                                      -6-
<PAGE>

SECTION 2.02 Form of Securities and Trustee's Certificate.

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

SECTION 2.03 Denominations; Provisions for Payment.

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

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

      Any interest on any Security that is payable, but is not punctually paid
or duly provided for, on any Interest Payment Date for Securities of the same
series (herein called "Defaulted Interest") shall forthwith cease to be payable
to the registered holder on the relevant regular record date by virtue of having
been such holder; and such Defaulted Interest shall be paid by the Company, at
its election, as provided in clause (1) or clause (2) below:

            (1) The Company may make payment of any Defaulted Interest on
Securities to the Persons in whose names such Securities (or their respective
Predecessor Securities) are registered at the close of business on a special
record date for the payment of such Defaulted Interest, which shall be fixed in
the following manner: the Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each such Security and the
date of the proposed payment, and at the same time the Company shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to be
paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this clause provided.
Thereupon the Trustee shall fix a special record date for the payment of such

                                      -7-
<PAGE>

Defaulted Interest which shall not be more than 15 nor less than 10 days prior
to the date of the proposed payment and not less than 10 days after the receipt
by the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the special record date therefor to be mailed, first
class postage prepaid, to each Securityholder at his or her address as it
appears in the Security Register (as hereinafter defined), not less than 10 days
prior to such special record date. Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Securities (or their respective Predecessor Securities) are registered on
such special record date.

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

      Unless otherwise set forth in a Board Resolution of the Company or one or
more indentures supplemental hereto establishing the terms of any series of
Securities pursuant to Section 2.01 hereof, the term "regular record date" as
used in this Section with respect to a series of Securities with respect to any
Interest Payment Date for such series shall mean either the fifteenth day of the
month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such
Interest Payment Date is the first day of a month, or the last day of the month
immediately preceding the month in which an Interest Payment Date established
for such series pursuant to Section 2.01 hereof shall occur, if such Interest
Payment Date is the fifteenth day of a month, whether or not such date is a
Business Day.

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

SECTION 2.04 Execution and Authentications.

      The Securities shall be signed on behalf of the Company by its President,
or one of its Vice Presidents, or its Treasurer, or one of its Assistant
Treasurers, or its Secretary, or one of its Assistant Secretaries, under its
corporate seal attested by its Secretary or one of its Assistant Secretaries.
Signatures may be in the form of a manual or facsimile signature. The Company
may use the facsimile signature of any Person who shall have been a President or
Vice President thereof, or of any Person who shall have been a Secretary or
Assistant Secretary thereof, notwithstanding the fact that at the time the
Securities shall be authenticated and delivered or

                                      -8-
<PAGE>

disposed of such Person shall have ceased to be the President or a Vice
President, or the Secretary or an Assistant Secretary, of the Company. The seal
of the Company may be in the form of a facsimile of such seal and may be
impressed, affixed, imprinted or otherwise reproduced on the Securities. The
Securities may contain such notations, legends or endorsements required by law,
stock exchange rule or usage. Each Security shall be dated the date of its
authentication by the Trustee.

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

      In authenticating such Securities and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive, and (subject to Section 7.01) shall be
fully protected in relying upon, an Opinion of Counsel stating that the form and
terms thereof have been established in conformity with the provisions of this
Indenture.

      The Trustee shall not be required to authenticate such Securities if the
issue of such Securities pursuant to this Indenture will affect the Trustee's
own rights, duties or immunities under the Securities and this Indenture or
otherwise in a manner that is not reasonably acceptable to the Trustee.

SECTION 2.05 Registration of Transfer and Exchange.

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

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

                                      -9-
<PAGE>

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

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

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

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

SECTION 2.06 Temporary Securities.

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

                                      -10-
<PAGE>

SECTION 2.07 Mutilated, Destroyed, Lost or Stolen Securities.

      In case any temporary or definitive Security shall become mutilated or be
destroyed, lost or stolen, the Company (subject to the next succeeding sentence)
shall execute, and upon the Company's request the Trustee (subject as aforesaid)
shall authenticate and deliver, a new Security of the same series, bearing a
number not contemporaneously outstanding, in exchange and substitution for the
mutilated Security, or in lieu of and in substitution for the Security so
destroyed, lost or stolen. In every case the applicant for a substituted
Security shall furnish to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless, and, in every case of
destruction, loss or theft, the applicant shall also furnish to the Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of
the applicant's Security and of the ownership thereof. The Trustee may
authenticate any such substituted Security and deliver the same upon the written
request or authorization of any officer of the Company. Upon the issuance of any
substituted Security, the Company may require the payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee)
connected therewith. In case any Security that has matured or is about to mature
shall become mutilated or be destroyed, lost or stolen, the Company may, instead
of issuing a substitute Security, pay or authorize the payment of the same
(without surrender thereof except in the case of a mutilated Security) if the
applicant for such payment shall furnish to the Company and the Trustee such
security or indemnity as they may require to save them harmless, and, in case of
destruction, loss or theft, evidence to the satisfaction of the Company and the
Trustee of the destruction, loss or theft of such Security and of the ownership
thereof.

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

SECTION 2.08 Cancellation.

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

                                      -11-
<PAGE>

redemption or satisfaction of the indebtedness represented by such Securities
unless and until the same are delivered to the Trustee for cancellation.

SECTION 2.09 Benefits of Indenture.

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

SECTION 2.10 Authenticating Agent.

      So long as any of the Securities of any series remain Outstanding there
may be an Authenticating Agent for any or all such series of Securities which
the Trustee shall have the right to appoint. Said Authenticating Agent shall be
authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption thereof, and
Securities so authenticated shall be entitled to the benefits of this Indenture
and shall be valid and obligatory for all purposes as if authenticated by the
Trustee hereunder. All references in this Indenture to the authentication of
Securities by the Trustee shall be deemed to include authentication by an
Authenticating Agent for such series. Each Authenticating Agent shall be
acceptable to the Company and shall be a corporation that has a combined capital
and surplus, as most recently reported or determined by it, sufficient under the
laws of any jurisdiction under which it is organized or in which it is doing
business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination
by Federal or State authorities. If at any time any Authenticating Agent shall
cease to be eligible in accordance with these provisions, it shall resign
immediately.

      Any Authenticating Agent may at any time resign by giving written notice
of resignation to the Trustee and to the Company. The Trustee may at any time
(and upon request by the Company shall) terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and to the Company. Upon resignation, termination or
cessation of eligibility of any Authenticating Agent, the Trustee may appoint an
eligible successor Authenticating Agent acceptable to the Company. Any successor
Authenticating Agent, upon acceptance of its appointment hereunder, shall become
vested with all the rights, powers and duties of its predecessor hereunder as if
originally named as an Authenticating Agent pursuant hereto.

SECTION 2.11 Global Securities.

      (a) If the Company shall establish pursuant to Section 2.01 that the
Securities of a particular series are to be issued as a Global Security, then
the Company shall execute and the Trustee shall, in accordance with Section
2.04, authenticate and deliver, a Global Security that (i) shall represent, and
shall be denominated in an amount equal to the aggregate principal amount of,
all of the Outstanding Securities of such series, (ii) shall be registered in
the name of the Depositary or its nominee, (iii) shall be delivered by the
Trustee to the Depositary or pursuant to

                                      -12-
<PAGE>

the Depositary's instruction and (iv) shall bear a legend substantially to the
following effect: "Except as otherwise provided in Section 2.11 of the
Indenture, this Security may be transferred, in whole but not in part, only to
another nominee of the Depositary or to a successor Depositary or to a nominee
of such successor Depositary."

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

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

                                  ARTICLE III

              REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

SECTION 3.01 Redemption.

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

                                      -13-
<PAGE>

SECTION 3.02 Notice of Redemption.

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

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

      (b) If less than all the Securities of a series are to be redeemed, the
Company shall give the Trustee at least 45 days' notice in advance of the date
fixed for redemption as to the aggregate principal amount of Securities of the
series to be redeemed, and thereupon the Trustee shall select, by lot or in such
other manner as it shall deem appropriate and fair in its discretion and that
may provide for the selection of a portion or portions (equal to one thousand
U.S. dollars ($1,000) or any integral multiple thereof) of the principal amount
of such Securities of a denomination larger than $1,000, the Securities to be
redeemed and shall thereafter promptly notify the Company in writing of the
numbers of the Securities to be redeemed, in whole or in part. The Company may,
if and whenever it shall so elect, by delivery of instructions signed on its
behalf by its President or any Vice President, instruct the Trustee or any
paying agent to call all or any part of the Securities of a particular series
for redemption and to give notice of redemption in the manner set forth in this
Section, such notice to be in the name of the Company or its own name as the
Trustee or such paying agent may deem advisable. In any case in which notice of
redemption is to be given by the Trustee or any such paying agent, the Company
shall

                                      -14-
<PAGE>

deliver or cause to be delivered to, or permit to remain with, the Trustee or
such paying agent, as the case may be, such Security Register, transfer books or
other records, or suitable copies or extracts therefrom, sufficient to enable
the Trustee or such paying agent to give any notice by mail that may be required
under the provisions of this Section.

SECTION 3.03 Payment Upon Redemption.

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

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

SECTION 3.04 Sinking Fund.

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

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

SECTION 3.05 Satisfaction of Sinking Fund Payments with Securities.

      The Company (i) may deliver Outstanding Securities of a series (other than
any Securities previously called for redemption) and (ii) may apply as a credit
Securities of a series that have been redeemed either at the election of the
Company pursuant to the terms of such Securities or through the application of
permitted optional sinking fund payments pursuant to the

                                      -15-
<PAGE>

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

SECTION 3.06 Redemption of Securities for Sinking Fund.

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

                                   ARTICLE IV

                                    COVENANTS

SECTION 4.01 Payment of Principal, Premium and Interest.

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

SECTION 4.02 Maintenance of Office or Agency.

      So long as any series of the Securities remain Outstanding, the Company
agrees to maintain an office or agency in the Borough of Manhattan, the City and
State of New York, with respect to each such series and at such other location
or locations as may be designated as provided in this Section 4.02, where (i)
Securities of that series may be presented for payment, (ii) Securities of that
series may be presented as herein above authorized for registration of transfer
and exchange, and (iii) notices and demands to or upon the Company in respect of
the Securities of that series and this Indenture may be given or served, such
designation to continue with respect to such office or agency until the Company
shall, by written notice signed by its President or a Vice President and
delivered to the Trustee, designate some other office or agency for such
purposes or any of them. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with the
address thereof, such presentations, notices and demands may be made or served
at the Corporate Trust Office of the Trustee, and the Company hereby appoints
the Trustee as its agent to receive all such presentations, notices and demands.

                                      -16-
<PAGE>

SECTION 4.03 Paying Agents.

      (a) If the Company shall appoint one or more paying agents for all or any
series of the Securities, other than the Trustee, the Company will cause each
such paying agent to execute and deliver to the Trustee an instrument in which
such agent shall agree with the Trustee, subject to the provisions of this
Section:

            (1) that it will hold all sums held by it as such agent for the
payment of the principal of (and premium, if any) or interest on the Securities
of that series (whether such sums have been paid to it by the Company or by any
other obligor of such Securities) in trust for the benefit of the Persons
entitled thereto;

            (2) that it will give the Trustee notice of any failure by the
Company (or by any other obligor of such Securities) to make any payment of the
principal of (and premium, if any) or interest on the Securities of that series
when the same shall be due and payable;

            (3) that it will, at any time during the continuance of any failure
referred to in the preceding paragraph (a)(2) above, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such
paying agent; and

            (4) that it will perform all other duties of paying agent as set
forth in this Indenture.

      (b) If the Company shall act as its own paying agent with respect to any
series of the Securities, it will on or before each due date of the principal of
(and premium, if any) or interest on Securities of that series, set aside,
segregate and hold in trust for the benefit of the Persons entitled thereto a
sum sufficient to pay such principal (and premium, if any) or interest so
becoming due on Securities of that series until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and will promptly notify the
Trustee of such action, or any failure (by it or any other obligor on such
Securities) to take such action. Whenever the Company shall have one or more
paying agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of that
series, deposit with the paying agent a sum sufficient to pay the principal (and
premium, if any) or interest so becoming due, such sum to be held in trust for
the benefit of the Persons entitled to such principal, premium or interest, and
(unless such paying agent is the Trustee) the Company will promptly notify the
Trustee of this action or failure so to act.

      (c) Notwithstanding anything in this Section to the contrary, (i) the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Section 11.05, and (ii) the Company may at any time, for the
purpose of obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or direct any paying agent to pay, to the Trustee all sums
held in trust by the Company or such paying agent, such sums to be held by the
Trustee upon the same terms and conditions as those upon which such sums were
held by the Company or such paying agent; and, upon such payment by any paying
agent to the Trustee, such paying agent shall be released from all further
liability with respect to such money.

                                      -17-
<PAGE>

SECTION 4.04 Appointment to Fill Vacancy in Office of Trustee.

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

SECTION 4.05 Compliance with Consolidation Provisions.

      The Company will not, while any of the Securities remain Outstanding,
consolidate with or merge into any other Person, in either case where the
Company is not the survivor of such transaction, or sell or convey all or
substantially all of its property to any other company unless the provisions of
Article Ten hereof are complied with.

                                   ARTICLE V

                       SECURITYHOLDERS' LISTS AND REPORTS
                         BY THE COMPANY AND THE TRUSTEE

SECTION 5.01 Company to Furnish Trustee Names and Addresses of Securityholders.

      The Company will furnish or cause to be furnished to the Trustee (a) on
each regular record date (as defined in Section 2.03) a list, in such form as
the Trustee may reasonably require, of the names and addresses of the holders of
each series of Securities as of such regular record date, provided that the
Company shall not be obligated to furnish or cause to furnish such list at any
time that the list shall not differ in any respect from the most recent list
furnished to the Trustee by the Company and (b) at such other times as the
Trustee may request in writing within 30 days after the receipt by the Company
of any such request, a list of similar form and content as of a date not more
than 15 days prior to the time such list is furnished; provided, however, that,
in either case, no such list need be furnished for any series for which the
Trustee shall be the Security Registrar.

SECTION 5.02 Preservation Of Information; Communications With Securityholders.

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

      (b) The Trustee may destroy any list furnished to it as provided in
Section 5.01 upon receipt of a new list so furnished.

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

                                      -18-
<PAGE>

SECTION 5.03 Reports by the Company.

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

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

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

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

SECTION 5.04 Reports by the Trustee.

      (a) On or before May 15 in each year in which any of the Securities are
Outstanding, the Trustee shall transmit by mail, first class postage prepaid, to
the Securityholders, as their names and addresses appear upon the Security
Register, a brief report dated as of the preceding May 15, if and to the extent
required under Section 313(a) of the Trust Indenture Act.

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

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

                                      -19-
<PAGE>

to notify the Trustee when any Securities become listed on any stock exchange
and of any delisting thereof.

SECTION 5.05 Statement as to Compliance and Default.

      (a) The Company will deliver to the Trustee annually, commencing May 1,
2005, a certificate, from its principal executive officer, principal financial
officer or principal accounting officer, stating whether or not to the best
knowledge of such officer the Company is in compliance (without regard to period
of grace or notice requirements) with all conditions and covenants under this
Indenture, and if the Company shall not be in compliance, specifying such
non-compliance and the nature and status thereof of which such officer may have
knowledge.

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

                                   ARTICLE VI

         REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

SECTION 6.01 Events of Default.

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

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

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

            (3) the Company fails to observe or perform any other of its
covenants or agreements with respect to that series contained in this Indenture
or otherwise established with respect to that series of Securities pursuant to
Section 2.01 hereof (other than a covenant or agreement that has been expressly
included in this Indenture solely for the benefit of one or more series of
Securities other than such series) for a period of 90 days after the date on
which written notice of such failure, requiring the same to be remedied and
stating that such notice is a "Notice of Default" hereunder, shall have been
given to the Company by the Trustee, by registered or

                                      -20-
<PAGE>

certified mail, or to the Company and the Trustee by the holders of at least 25%
in principal amount of the Securities of that series at the time Outstanding;

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

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

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

      (c) At any time after the principal of the Securities of that series shall
have been so declared due and payable, and before any judgment or decree for the
payment of the moneys due shall have been obtained or entered as hereinafter
provided, the holders of a majority in aggregate principal amount of the
Securities of that series then Outstanding hereunder, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its
consequences if: (i) the Company has paid or deposited with the Trustee a sum
sufficient to pay all matured installments of interest upon all the Securities
of that series and the principal of (and premium, if any, on) any and all
Securities of that series that shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of
that series to the date of such payment or deposit) and the amount payable to
the Trustee under Section 7.06, and (ii) any and all Events of Default under the
Indenture with respect to such series, other than the nonpayment of principal on
Securities of that series that shall not have become due by their terms, shall
have been remedied or waived as provided in Section 6.06.

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

      (d) In case the Trustee shall have proceeded to enforce any right with
respect to Securities of that series under this Indenture and such proceedings
shall have been discontinued or abandoned because of such rescission or
annulment or for any other reason or shall have been determined adversely to the
Trustee, then and in every such case, subject to any determination in such
proceedings, the Company and the Trustee shall be restored respectively to their
former positions and rights hereunder, and all rights, remedies and powers of
the Company and the Trustee shall continue as though no such proceedings had
been taken.

                                      -21-
<PAGE>

SECTION 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee.

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

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

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

      (d) All rights of action and of asserting claims under this Indenture, or
under any of the terms established with respect to Securities of that series,
may be enforced by the Trustee without the possession of any of such Securities,
or the production thereof at any trial or other

                                      -22-
<PAGE>

proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.06, be for the ratable benefit of the holders of the
Securities of such series.

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

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

SECTION 6.03 Application of Moneys Collected.

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

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

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

SECTION 6.04 Limitation on Suits.

      No holder of any Security of any series shall have any right by virtue or
by availing of any provision of this Indenture to institute any suit, action or
proceeding in equity or at law upon or under or with respect to this Indenture
or for the appointment of a receiver or trustee, or for any other remedy
hereunder, unless (i) such holder previously shall have given to the Trustee
written notice of an Event of Default and of the continuance thereof with
respect to the Securities of such series specifying such Event of Default, as
hereinbefore provided; (ii) the holders of not less than 25% in aggregate
principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or
proceeding in its own name as trustee hereunder; (iii) such holder or holders
shall have offered to the Trustee such

                                      -23-
<PAGE>

reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby; and (iv) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have
failed to institute any such action, suit or proceeding and (v) during such 60
day period, the holders of a majority in principal amount of the Securities of
that series do not give the Trustee a direction inconsistent with the request.

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

SECTION 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver.

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

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

SECTION 6.06 Control by Securityholders.

      The holders of a majority in aggregate principal amount of the Securities
of any series at the time Outstanding, determined in accordance with Section
8.01, shall have the right to direct the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee with respect to such series; provided,
however, that such direction shall not be in conflict with any rule of law or
with this

                                      -24-
<PAGE>

Indenture or be unduly prejudicial to the rights of holders of Securities of any
other series at the time Outstanding determined in accordance with Section 8.01.
Subject to the provisions of Section 7.01, the Trustee shall have the right to
decline to follow any such direction if the Trustee in good faith shall, by a
Responsible Officer or Officers of the Trustee, determine that the proceeding so
directed would involve the Trustee in personal liability. The holders of a
majority in aggregate principal amount of the Securities of any series at the
time Outstanding affected thereby, determined in accordance with Section 8.01,
may on behalf of the holders of all of the Securities of such series waive any
past default in the performance of any of the covenants contained herein or
established pursuant to Section 2.01 with respect to such series and its
consequences, except a default in the payment of the principal of, or premium,
if any, or interest on, any of the Securities of that series as and when the
same shall become due by the terms of such Securities otherwise than by
acceleration (unless such default has been cured and a sum sufficient to pay all
matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)). Upon any such
waiver, the default covered thereby shall be deemed to be cured for all purposes
of this Indenture and the Company, the Trustee and the holders of the Securities
of such series shall be restored to their former positions and rights hereunder,
respectively; but no such waiver shall extend to any subsequent or other default
or impair any right consequent thereon.

SECTION 6.07 Undertaking to Pay Costs.

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

                                  ARTICLE VII

                             CONCERNING THE TRUSTEE

SECTION 7.01 Certain Duties and Responsibilities of Trustee.

      (a) The Trustee, prior to the occurrence of an Event of Default with
respect to the Securities of a series and after the curing of all Events of
Default with respect to the Securities of that series that may have occurred,
shall undertake to perform with respect to the Securities of such series such
duties and only such duties as are specifically set forth in this Indenture, and
no implied covenants shall be read into this Indenture against the Trustee. In
case an Event of

                                      -25-
<PAGE>

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

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

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

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

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

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

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

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

                                      -26-
<PAGE>

SECTION 7.02 Certain Rights of Trustee.

      Except as otherwise provided in Section 7.01:

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

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

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

      (d) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request, order or direction of
any of the Securityholders, pursuant to the provisions of this Indenture, unless
such Securityholders shall have offered to the Trustee security or indemnity
reasonably satisfactory to the Trustee against the costs, expenses and
liabilities that may be incurred therein or thereby; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default with respect to a series of the Securities (that has not been
cured or waived) to exercise with respect to Securities of that series such of
the rights and powers vested in it by this Indenture, and to use the same degree
of care and skill in their exercise, as a prudent man would exercise or use
under the circumstances in the conduct of his own affairs;

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

      (f) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, consent, order, approval, bond, security or
other papers or documents, unless requested in writing so to do by the holders
of not less than a majority in principal amount of the Outstanding Securities of
the particular series affected thereby (determined as provided in Section 8.04);
provided, however, that if the payment within a reasonable time to the Trustee
of the costs, expenses or liabilities likely to be incurred by it in the making
of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture,
the Trustee may require reasonable indemnity against such costs, expenses or
liabilities as a condition to so proceeding. The reasonable expense of every
such examination shall be paid by the Company or, if paid by the Trustee, shall
be repaid by the Company upon demand;

                                      -27-
<PAGE>

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

      (h) 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;

      (i) 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 each agent, custodian and other Person employed to act hereunder;
and

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

SECTION 7.03 Trustee Not Responsible for Recitals or Issuance or Securities.

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

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

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

SECTION 7.04 May Hold Securities.

      The Trustee or any paying agent or Security Registrar, in its individual
or any other capacity, may become the owner or pledgee of Securities with the
same rights it would have if it were not Trustee, paying agent or Security
Registrar.

SECTION 7.05 Moneys Held in Trust.

      Subject to the provisions of Section 11.05, all moneys received by the
Trustee shall, until used or applied as herein provided, be held in trust for
the purposes for which they were received, but need not be segregated from other
funds except to the extent required by law. The

                                      -28-
<PAGE>

Trustee shall be under no liability for interest on any moneys received by it
hereunder except such as it may agree with the Company to pay thereon.

SECTION 7.06 Compensation and Reimbursement.

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

      (b) The obligations of the Company under this Section to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Securities upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Securities.

      (c) When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Section 6.01(a)(4) or Section 6.01(a)(5),
the expenses (including the reasonable charges and expenses of its counsel) and
the compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.

      The provisions of this Section shall survive the termination of the
Indenture.

SECTION 7.07 Reliance on Officers' Certificate.

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

                                      -29-
<PAGE>

Trustee for any action taken, suffered or omitted to be taken by it under the
provisions of this Indenture upon the faith thereof.

SECTION 7.08 Disqualification; Conflicting Interests.

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

SECTION 7.09 Corporate Trustee Required; Eligibility.

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

SECTION 7.10 Resignation and Removal; Appointment of Successor.

      (a) The Trustee or any successor hereafter appointed, may at any time
resign with respect to the Securities of one or more series by giving written
notice thereof to the Company and by transmitting notice of resignation by mail,
first class postage prepaid, to the Securityholders of such series, as their
names and addresses appear upon the Security Register. Upon receiving such
notice of resignation, the Company shall promptly appoint a successor trustee
with respect to Securities of such series by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the resigning Trustee and one copy to the successor trustee. If
no successor trustee shall have been so appointed and have accepted appointment
within 30 days after the mailing of such notice of resignation, the resigning
Trustee may, at the Company's expense, petition any court of competent
jurisdiction for the appointment of a successor trustee with respect to
Securities of such series, or any Securityholder of that series who has been a
bona fide holder of a Security or Securities for at least six months may on
behalf of himself and all others similarly situated, petition any such court for
the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

      (b) In case at any time any one of the following shall occur:

                                      -30-
<PAGE>

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

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

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

then, in any such case, the Company may remove the Trustee with respect to all
Securities and appoint a successor trustee by written instrument, in duplicate,
executed by order of the Board of Directors, one copy of which instrument shall
be delivered to the Trustee so removed and one copy to the successor trustee,
or, unless the Trustee's duty to resign is stayed as provided herein, any
Securityholder who has been a bona fide holder of a Security or Securities for
at least six months may, on behalf of that holder and all others similarly
situated, petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor trustee. Such court may thereupon
after such notice, if any, as it may deem proper and prescribe, remove the
Trustee and appoint a successor trustee.

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

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

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

SECTION 7.11 Acceptance of Appointment By Successor.

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

                                      -31-
<PAGE>

instrument transferring to such successor trustee all the rights, powers and
trusts of the retiring Trustee and shall duly assign, transfer and deliver to
such successor trustee all property and money held by such retiring Trustee
hereunder.

      (b) In case of the appointment hereunder of a successor trustee with
respect to the Securities of one or more (but not all) series, the Company, the
retiring Trustee and each successor trustee with respect to the Securities of
one or more series shall execute and deliver an indenture supplemental hereto
wherein each successor trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor trustee relates, (2)
shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee
with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, it being understood that nothing herein or
in such supplemental indenture shall constitute such Trustees co-trustees of the
same trust, that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee and that no Trustee shall be responsible for any act or
failure to act on the part of any other Trustee hereunder; and upon the
execution and delivery of such supplemental indenture the resignation or removal
of the retiring Trustee shall become effective to the extent provided therein,
such retiring Trustee shall with respect to the Securities of that or those
series to which the appointment of such successor trustee relates have no
further responsibility for the exercise of rights and powers or for the
performance of the duties and obligations vested in the Trustee under this
Indenture, and each such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor trustee relates; but, on request of
the Company or any successor trustee, such retiring Trustee shall duly assign,
transfer and deliver to such successor trustee, to the extent contemplated by
such supplemental indenture, the property and money held by such retiring
Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor trustee relates.

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

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

      (e) Upon acceptance of appointment by a successor trustee as provided in
this Section, the Company shall transmit notice of the succession of such
trustee hereunder by mail, first class postage prepaid, to the Securityholders,
as their names and addresses appear upon the Security Register. If the Company
fails to transmit such notice within ten days after acceptance

                                      -32-
<PAGE>

of appointment by the successor trustee, the successor trustee shall cause such
notice to be transmitted at the expense of the Company.

SECTION 7.12 Merger, Conversion, Consolidation or Succession to Business.

      Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to the corporate trust business of the Trustee, shall be
the successor of the Trustee hereunder, provided that such corporation shall be
qualified under the provisions of Section 7.08 and eligible under the provisions
of Section 7.09, without the execution or filing of any paper or any further act
on the part of any of the parties hereto, anything herein to the contrary
notwithstanding. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

SECTION 7.13 Preferential Collection of Claims Against the Company.

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

                                  ARTICLE VIII

                         CONCERNING THE SECURITYHOLDERS

SECTION 8.01 Evidence of Action by Securityholders.

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

      If the Company shall solicit from the Securityholders of any series any
request, demand, authorization, direction, notice, consent, waiver or other
action, the Company may, at its option, as evidenced by an Officers'
Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other action, but the Company shall have
no obligation to do so. If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after the record date, but only the Securityholders of record at the
close of business on the record date shall be deemed to be Securityholders for
the purposes of determining whether Securityholders of the requisite proportion
of Outstanding

                                      -33-
<PAGE>

Securities of that series have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
action, and for that purpose the Outstanding Securities of that series shall be
computed as of the record date; provided, however, that no such authorization,
agreement or consent by such Securityholders on the record date shall be deemed
effective unless it shall become effective pursuant to the provisions of this
Indenture not later than six months after the record date.

SECTION 8.02 Proof of Execution by Securityholders.

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

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

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

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

SECTION 8.03 Who May be Deemed Owners.

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

SECTION 8.04 Certain Securities Owned by Company Disregarded.

      In determining whether the holders of the requisite aggregate principal
amount of Securities of a particular series have concurred in any direction,
consent of waiver under this Indenture, the Securities of that series that are
owned by the Company or any other obligor on the Securities of that series or by
any Person directly or indirectly controlling or controlled by or under common
control with the Company or any other obligor on the Securities of that series
shall be disregarded and deemed not to be Outstanding for the purpose of any
such determination, except that for the purpose of determining whether the
Trustee shall be protected in relying on any such direction, consent or waiver,
only Securities of such series that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded. The Securities so owned
that have been pledged in good faith may be regarded as Outstanding for the

                                      -34-
<PAGE>

purposes of this Section, if the pledgee shall establish to the satisfaction of
the Trustee the pledgee's right so to act with respect to such Securities and
that the pledgee is not a Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company or any
such other obligor. In case of a dispute as to such right, any decision by the
Trustee taken upon the advice of counsel shall be full protection to the
Trustee.

SECTION 8.05 Actions Binding on Future Securityholders.

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

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

SECTION 9.01 Supplemental Indentures Without the Consent of Securityholders.

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

      (a) to cure any ambiguity, defect or inconsistency herein or in the
Securities of any series;

      (b) to comply with Article Ten;

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

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

                                      -35-
<PAGE>

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

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

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

      The Trustee is hereby authorized to join with the Company in the execution
of any such supplemental indenture, and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into any such supplemental indenture that affects the
Trustee's own rights, duties or immunities under this Indenture or otherwise.

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

SECTION 9.02 Supplemental Indentures With Consent of Securityholders.

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

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

SECTION 9.03 Effect of Supplemental Indentures.

      Upon the execution of any supplemental indenture pursuant to the
provisions of this Article or of Section 10.01, this Indenture shall, with
respect to such series, be and be deemed to

                                      -36-
<PAGE>

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

SECTION 9.04 Securities Affected by Supplemental Indentures.

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

SECTION 9.05 Execution of Supplemental Indentures.

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

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

                                      -37-
<PAGE>

                                    ARTICLE X

                                SUCCESSOR ENTITY

SECTION 10.01 Company May Consolidate, Etc.

      Nothing contained in this Indenture or in any of the Securities shall
prevent any consolidation or merger of the Company with or into any other Person
(whether or not affiliated with the Company) or successive consolidations or
mergers in which the Company or its successor or successors shall be a party or
parties, or shall prevent any sale, conveyance, transfer or other disposition of
the property of the Company or its successor or successors as an entirety, or
substantially as an entirety, to any other corporation (whether or not
affiliated with the Company or its successor or successors) authorized to
acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the
Company is not the survivor of such transaction), sale, conveyance, transfer or
other disposition, the due and punctual payment of the principal of (premium, if
any) and interest on all of the Securities of all series in accordance with the
terms of each series, according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture
with respect to each series or established with respect to such series pursuant
to Section 2.01 to be kept or performed by the Company shall be expressly
assumed, by supplemental indenture (which shall conform to the provisions of the
Trust Indenture Act, as then in effect) satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such
consolidation, or into which the Company shall have been merged, or by the
entity which shall have acquired such property.

SECTION 10.02 Successor Entity Substituted.

      (a) In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition and upon the assumption by the successor entity by
supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the due and punctual payment of the principal of,
premium, if any, and interest on all of the Securities of all series Outstanding
and the due and punctual performance of all of the covenants and conditions of
this Indenture or established with respect to each series of the Securities
pursuant to Section 2.01 to be performed by the Company with respect to each
series, such successor entity shall succeed to and be substituted for the
Company with the same effect as if it had been named as the Company herein, and
thereupon the predecessor corporation shall be relieved of all obligations and
covenants under this Indenture and the Securities.

      (b) In case of any such consolidation, merger, sale, conveyance, transfer
or other disposition such changes in phraseology and form (but not in substance)
may be made in the Securities thereafter to be issued as may be appropriate.

      (c) Nothing contained in this Article shall apply to a consolidation or
merger of any Person into the Company where the Company is the survivor of such
transaction, or the acquisition by the Company, by purchase or otherwise, of all
or any part of the property of any other Person (whether or not affiliated with
the Company).

                                      -38-
<PAGE>

SECTION 10.03 Evidence of Consolidation, Etc. to Trustee.

      The Trustee, subject to the provisions of Section 7.01, may receive an
Opinion of Counsel as conclusive evidence that any such consolidation, merger,
sale, conveyance, transfer or other disposition, and any such assumption, comply
with the provisions of this Article.

                                   ARTICLE XI

                           SATISFACTION AND DISCHARGE

SECTION 11.01 Satisfaction and Discharge of Indenture.

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

SECTION 11.02 Discharge of Obligations.

      If at any time all such Securities of a particular series not heretofore
delivered to the Trustee for cancellation or that have not become due and
payable as described in Section 11.01 shall have been paid by the Company by
depositing irrevocably with the Trustee as trust funds moneys or an amount of
Governmental Obligations sufficient to pay at maturity or upon redemption all
such Securities of that series not theretofore delivered to the Trustee for
cancellation, including principal (and premium, if any) and interest due or to
become due to such date of maturity or date fixed for redemption, as the case
may be, and if the Company shall also pay or cause to be paid all other sums
payable hereunder by the Company with respect to such series, then after the
date such moneys or Governmental Obligations, as the case may be, are

                                      -39-
<PAGE>

deposited with the Trustee the obligations of the Company under this Indenture
with respect to such series shall cease to be of further effect except for the
provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4,03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid.
Thereafter, Sections 7.06 and 11.05 shall survive.

SECTION 11.03 Deposited Moneys to be Held in Trust.

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

SECTION 11.04 Payment of Moneys Held by Paying Agents.

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

SECTION 11.05 Repayment to Company.

      Any moneys or Governmental Obligations deposited with any paying agent or
the Trustee, or then held by the Company, in trust for payment of principal of
or premium, if any, or interest on the Securities of a particular series that
are not applied but remain unclaimed by the holders of such Securities for at
least two years after the date upon which the principal of (and premium, if any)
or interest on such Securities shall have respectively become due and payable,
shall be repaid to the Company on May 31 of each year or (if then held by the
Company) shall be discharged from such trust; and thereupon the paying agent and
the Trustee shall be released from all further liability with respect to such
moneys or Governmental Obligations, and the holder of any of the Securities
entitled to receive such payment shall thereafter, as an unsecured general
creditor, look only to the Company for the payment thereof.

                                  ARTICLE XII

         IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

SECTION 12.01 No Recourse.

      No recourse under or upon any obligation, covenant or agreement of this
Indenture, or of any Security, or for any claim based thereon or otherwise in
respect thereof, shall be had against any incorporator, stockholder, officer or
director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such
predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or
otherwise; it being expressly understood that this Indenture and the obligations
issued hereunder are solely corporate

                                      -40-
<PAGE>

obligations, and that no such personal liability whatever shall attach to, or is
or shall be incurred by, the incorporators, stockholders, officers or directors
as such, of the Company or of any predecessor or successor corporation, or any
of them, because of the creation of the indebtedness hereby authorized, or under
or by reason of the obligations, covenants or agreements contained in this
Indenture or in any of the Securities or implied therefrom; and that any and all
such personal liability of every name and nature, either at common law or in
equity or by constitution or statute, of, and any and all such rights and claims
against, every such incorporator, stockholder, officer or director as such,
because of the creation of the indebtedness hereby authorized, or under or by
reason of the obligations, covenants or agreements contained in this Indenture
or in any of the Securities or implied therefrom, are hereby expressly waived
and released as a condition of, and as a consideration for, the execution of
this Indenture and the issuance of such Securities.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

SECTION 13.01 Effect on Successors and Assigns.

      All the covenants, stipulations, promises and agreements in this Indenture
contained by or on behalf of the Company shall bind its successors and assigns,
whether so expressed or not.

SECTION 13.02 Actions by Successor.

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

SECTION 13.03 Surrender of Company Powers.

      The Company by instrument in writing executed by authority of its Board of
Directors and delivered to the Trustee may surrender any of the powers reserved
to the Company, and thereupon such power so surrendered shall terminate both as
to the Company and as to any successor corporation.

SECTION 13.04 Notices.

      Except as otherwise expressly provided herein any notice or demand that by
any provision of this Indenture is required or permitted to be given or served
by the Trustee or by the holders of Securities to or on the Company may be given
or served by being deposited first class postage prepaid in a post-office
letterbox addressed (until another address is filed in writing by the Company
with the Trustee), as follows: Transkaryotic Therapies, Inc., 700 Main Street,
Cambridge, MA 02139, Attention: Chief Financial Officer. Any notice, election,
request or demand by the Company or any Securityholder to or upon the Trustee
shall be deemed to have been sufficiently given or made, for all purposes, if
given or made in writing at the Corporate Trust Office of the Trustee.

                                      -41-
<PAGE>

SECTION 13.05 Governing Law.

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

SECTION 13.06 Treatment of Securities as Debt.

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

SECTION 13.07 Compliance Certificates and Opinions.

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

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

SECTION 13.08 Payments on Business Days.

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

                                      -42-
<PAGE>

SECTION 13.09 Conflict with Trust Indenture Act.

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

SECTION 13.10 Counterparts.

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

SECTION 13.11 Separability.

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

SECTION 13.12 Assignment.

      The Company will have the right at all times to assign any of its rights
or obligations under this Indenture to a direct or indirect wholly owned
Subsidiary of the Company, provided that, in the event of any such assignment,
the Company will remain liable for all such obligations. Subject to the
foregoing, the Indenture is binding upon and inures to the benefit of the
parties thereto and their respective successors and assigns. This Indenture may
not otherwise be assigned by the parties thereto.

                                      -43-
<PAGE>

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

                                     TRANSKARYOTIC THERAPIES, INC.

                                     By: /s/ Michael J. Astrue
                                         _______________________________________
                                     Name: Michael J. Astrue
                                     Title: President and CEO

                                     THE BANK OF NEW YORK,
                                     as Trustee

                                     By: /s/ Kisha Holder
                                         _______________________________________
                                     Name: Kisha A. Holder
                                     Title: Assistant Vice President

                                      -44-<PAGE>

                                                                     EXHIBIT 4.3

                          FIRST SUPPLEMENTAL INDENTURE

                                     BETWEEN

                          TRANSKARYOTIC THERAPIES, INC.

                                       AND

                              THE BANK OF NEW YORK

                                   MAY 4, 2004

                                  TO INDENTURE
                             DATED AS OF MAY 4, 2004
                           PROVIDING FOR THE ISSUANCE
                            OF SENIOR DEBT SECURITIES

<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                     Page
<S>                                                                                                  <C>
ARTICLE ONE THE 2011 NOTES...............................................................              2

         SECTION 101. DESIGNATION OF 2011 NOTES; ESTABLISHMENT OF FORM...................              2
         SECTION 102. AMOUNT 3
         SECTION 103. INTEREST...........................................................              3
         SECTION 104. DENOMINATIONS......................................................              4
         SECTION 105. PLACE OF PAYMENT...................................................              4
         SECTION 106. REDEMPTION.........................................................              4
         SECTION 107. DISCHARGE OF LIABILITY ON 2011 NOTES...............................              4
         SECTION 108. CONVERSION.........................................................              4
         SECTION 109. MATURITY...........................................................              4
         SECTION 110. REPURCHASE.........................................................              4
         SECTION 111. OTHER TERMS OF 2011 NOTES..........................................              5

ARTICLE TWO AMENDMENTS TO THE INDENTURE..................................................              5

         SECTION 201. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION............              5
         SECTION 202. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE................              8
         SECTION 203. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES...................              8
         SECTION 204. CANCELLATION.......................................................              9
         SECTION 205. REDEMPTION.........................................................              9
         SECTION 206. MAINTENANCE OF OFFICE OR AGENCY....................................             10
         SECTION 207. EVENTS OF DEFAULT; LIMITATION ON SUITS.............................             11
         SECTION 208. SUPPLEMENTAL INDENTURES............................................             13
         SECTION 209. COMPANY MAY CONSOLIDATE, ETC.......................................             16
         SECTION 210. CONVERSION.........................................................             17

ARTICLE THREE MISCELLANEOUS PROVISIONS...................................................             36

         SECTION 301. INTEGRAL PART......................................................             36
         SECTION 302. GENERAL DEFINITIONS................................................             36
         SECTION 303. ADOPTION, RATIFICATION AND CONFIRMATION............................             36
         SECTION 304. COUNTERPARTS.......................................................             36
         SECTION 305. GOVERNING LAW......................................................             36

ANNEX A - FORM OF 2011 NOTE
</TABLE>

                                       i

<PAGE>

                          TRANSKARYOTIC THERAPIES, INC.

                          FIRST SUPPLEMENTAL INDENTURE

         THIS FIRST SUPPLEMENTAL INDENTURE to the Indenture (as defined below),
dated as of May 4, 2004, is made between Transkaryotic Therapies, Inc., a
Delaware corporation (the "COMPANY") and The Bank of New York, a New York
banking corporation, as trustee (the "TRUSTEE"). All terms defined in the
Indenture and used in this Supplemental Indenture but not specifically defined
herein are used herein as so defined.

                               W I T N E S S E T H

         WHEREAS, the Company has executed and delivered to the Trustee an
Indenture, of even date herewith (the "INDENTURE"), providing for the issuance
from time to time of its debentures, notes, bonds or other evidence of
indebtedness in one or more fully registered series;

         WHEREAS, the Indenture provides for the Company's issuance from time to
time of senior unsecured debt securities;

         WHEREAS, no Securities have heretofore been issued under the indenture
and no securityholders currently exist thereunder;

         WHEREAS, Section 9.01(g) of the Indenture provides that the Company and
the Trustee may from time to time without the consent of any Securityholders
enter into one or more indentures supplemental to the Indenture to establish the
form and terms of Securities of any series, including redemption, conversion and
repurchase terms and procedures;

         WHEREAS, Section 2.01 of the Indenture provides that the Company may
enter into supplemental indentures to establish the terms and provisions of a
series of Securities issued pursuant to the Indenture;

         WHEREAS, the Company desires to issue a series of 1.25% senior
convertible notes due May 15, 2011 under the Indenture, and has duly authorized
the creation and issuance of such notes and the execution and delivery of this
Supplemental Indenture to modify the Indenture and provide certain additional
provisions as hereinafter described;

         WHEREAS, the Company and the Trustee deem it advisable to enter into
this Supplemental Indenture for the purpose of establishing the terms of such
convertible senior debt securities and providing for the rights, obligations and
duties of the Trustee with respect to such debt securities;

         WHEREAS, concurrent with the execution hereof, the Company has
delivered an Officers' Certificate and has caused its counsel to deliver to the
Trustee an Opinion of Counsel or a reliance letter upon an Opinion of Counsel to
the effect that the execution of this Supplemental Indenture is authorized or
permitted by the Indenture;

                                       1
<PAGE>

         WHEREAS, all conditions and requirements of the Indenture necessary to
make this Supplemental Indenture a valid, binding and legal instrument in
accordance with its terms have been performed and fulfilled by the parties
hereto.

         NOW THEREFORE:

         In consideration of the premises provided for herein, the Company and
the Trustee mutually covenant and agree for the equal and proportionate benefit
of all Holders of the Securities as follows:

                                  ARTICLE ONE

                                 THE 2011 NOTES

SECTION 101. DESIGNATION OF 2011 NOTES; ESTABLISHMENT OF FORM.

         There shall be a series of securities designated "1.25% Senior
Convertible Notes Due May 15, 2011" of the Company (the "2011 NOTES"), and the
form thereof shall be substantially as set forth in Annex A hereto, which is
incorporated into and shall be deemed a part of this First Supplemental
Indenture, in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by the
Indenture, and which may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may,
consistently herewith, be determined by the officers of the Company executing
such 2011 Notes, as evidenced by their execution of the 2011 Notes.

         Securities of this series need not be issued at the same time and,
unless specifically provided otherwise, this series may be reopened, without the
consent of the Holders, for issuances of additional securities of such series.

         The 2011 Notes will initially be issued in permanent form as a Global
Security (as defined in the Indenture), substantially in the form set forth in
Annex A hereto, as a book-entry security. Each Global Security shall represent
such of the Outstanding 2011 Notes as shall be specified therein and shall
provide that it shall represent the aggregate amount of Outstanding 2011 Notes
from time to time endorsed thereon and that the aggregate amount of Outstanding
2011 Notes represented thereby may from time to time be increased or reduced to
reflect exchanges, conversions, repurchases and redemptions. Any endorsement of
a Global Security to reflect the amount, or any increase or decrease in the
amount, of Outstanding 2011 Notes represented thereby shall be made by the
Trustee in accordance with written instructions or such other written form of
instructions as is customary for the Depositary, from the Depositary or its
nominee on behalf of any Person having the beneficial interest in the Global
Security.

         The Company initially appoints The Depository Trust Company to act as
Depositary with respect to the Global Securities.

         The Company shall maintain an office or agency where the 2011 Notes may
be presented for purchase or payment ("PAYING AGENT") and an office or agency
where the 2011 Notes may

                                       2
<PAGE>

be presented for conversion ("CONVERSION AGENT"). The Company may have one or
more additional paying agents and one or more additional conversion agents.

         The Company shall enter into an appropriate agency agreement with any
Paying Agent or Conversion Agent (other than the Trustee). The agreement shall
implement the provisions of the Indenture and this Supplemental Indenture that
relate to such agent. The Company shall notify the Trustee of the name and
address of any such agent. If the Company fails to maintain a Paying Agent or
Conversion Agent, the Trustee shall act as such and shall be entitled to
appropriate compensation therefor pursuant to Section 7.06 of the Indenture. The
Company or any Subsidiary or an Affiliate of either of them may act as Paying
Agent or Conversion Agent.

         The Company initially appoints the Trustee to act as its agent, Paying
Agent and Conversion Agent with respect to the 2011 Notes.

SECTION 102. AMOUNT.

         (a)      The Trustee shall authenticate and deliver 2011 Notes for
original issue in an initial aggregate Principal Amount of up to $100,000,000
upon a Company Order for the authentication and delivery of the 2011 Notes,
without any further action by the Company.

         (b)      The Company may not issue new 2011 Notes to replace 2011 Notes
that it has paid or delivered to the Trustee for cancellation or that any Holder
has converted pursuant to Article 14 of the Indenture.

SECTION 103. INTEREST.

                  The 2011 Notes shall bear interest at the rate and from the
date specified on the face of the form of 2011 Note attached as Annex A hereto.
Interest shall be payable semi-annually in arrears on each Interest Payment Date
to holders of record on the Regular Record Date immediately preceding such
Interest Payment Date. Interest on the 2011 Notes shall be computed on the basis
of a 360-day year comprised of twelve 30-day months.

         Interest on the 2011 Notes shall accrue from the most recent date to
which interest has been paid, or if no interest has been paid, from May 4, 2004,
until the Principal Amount is paid or duly made available for payment.

         Interest on any 2011 Note 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 2011 Note shall be made by
check mailed to the address of the Holder specified in the register of
Securities, provided, however, that, with respect to any Holder with an
aggregate Principal Amount in excess of $2,000,000, at the request of such
Holder in writing to the Company, interest on such Holder's Securities shall be
paid by wire transfer in immediately available funds in accordance with the
written wire transfer instruction supplied by such Holder from time to time to
the Trustee and Paying Agent (if different from the Trustee) at least ten days
prior to the applicable Interest Payment Date. In the case of a Global Security,
interest payable on any Interest Payment Date will be paid by wire transfer of
immediately available funds to the account of the

                                       3
<PAGE>

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.

SECTION 104. DENOMINATIONS.

         The 2011 Notes shall be in fully registered form without coupons in
denominations of $1,000 of Principal Amount or any integral multiple thereof.

SECTION 105. PLACE OF PAYMENT.

         The "PLACE OF PAYMENT" for the 2011 Notes and the place or places where
the 2011 Notes may be surrendered for registration of transfer, exchange,
repurchase, redemption or conversion and where notices may be given to the
Company in respect of the 2011 Notes is at the office of the Trustee in New
York, New York and at the agency of the Trustee maintained for that purpose at
the office of the Trustee; provided that payment of interest may be made at the
option of the Company by check mailed to the address of the person entitled
thereto as such address shall appear in the Security Register.

SECTION 106. REDEMPTION.

         (a) There shall be no sinking fund for the retirement of the 2011
Notes.

         (b) The Company, at its option, may redeem the 2011 Notes in accordance
with the provisions of and at the redemption price set forth under the captions
"Redemption" and "Notice of Redemption" in the 2011 Notes and in accordance with
the provisions of the Indenture, including, without limitation, Article Three
thereof.

SECTION 107. DISCHARGE OF LIABILITY ON 2011 NOTES.

         Article 11 of the Indenture shall be applicable to the 2011 Notes as
amended by Section 211 hereto.

SECTION 108. CONVERSION.

         The 2011 Notes shall be convertible in accordance with the provisions
and at the conversion price set forth under the caption "Conversion" in the 2011
Notes and in accordance with any applicable provisions of the Indenture,
including, without limitation, Article 14 thereof.

SECTION 109. MATURITY.

         The Stated Maturity of the 2011 Notes is May 15, 2011.

SECTION 110. REPURCHASE.

         The Company, at the option of the Holders thereof, shall repurchase the
2011 Notes in accordance with the provisions of and at the Fundamental Change
Repurchase Price as set forth under the caption "Purchase of 2011 Notes at
Option of Holder Upon a Fundamental Change" in

                                       4
<PAGE>

the 2011 Notes and in accordance with the provisions of the Indenture,
including, without limitation, Article 15 thereof.

SECTION 111. OTHER TERMS OF 2011 NOTES.

         Without limiting the foregoing provisions of this Article One, the
terms of the 2011 Notes shall be as set forth in the form of 2011 Notes set
forth in Annex A hereto and as provided in the Indenture. In the event of a
conflict or inconsistency between the Indenture and this First Supplement, this
First Supplement will control.

                                   ARTICLE TWO

                           AMENDMENTS TO THE INDENTURE

         The amendments contained herein shall apply to the 2011 Notes only and
not to any other series of Security issued under the Indenture and any covenants
provided herein are expressly being included solely for the benefit of the 2011
Notes. These amendments shall be effective for so long as any 2011 Notes remain
Outstanding.

SECTION 201. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION.

         Section 101 of the Indenture is amended by inserting, amending or
restating, as the case may be, in their appropriate alphabetical position, the
following definitions:

         "Capital Stock" or "capital stock" of any Person means any and all
shares, interests, partnership interests, participations, rights or other
equivalents (however designated) of such Person's equity interest (however
designated) issued by that Person.

         "Change of Control Event" means any transaction or event (whether by
means of an exchange offer, liquidation, tender offer, consolidation, merger,
combination, reclassification, recapitalization, sale of all or substantially
all the Company's consolidated assets or otherwise) in connection with which all
or substantially all of the Company's Common Stock is exchanged for, converted
into, acquired for or constitutes solely the right to receive, consideration
which is not all or substantially all Common Stock or American Depositary Shares
that:

         -        is listed on, or immediately after the transaction or event
                  will be listed on, a United States national securities
                  exchange, or

         -        is approved, or immediately after the transaction or event
                  will be approved, for quotation on the Nasdaq National Market
                  System or any similar United States system of automated
                  dissemination of quotations of securities prices.

         "Closing Price" with respect to the Company's Common Stock on any date
means the closing price on such date as reported on the National Association of
Securities Dealers Automated Quotation System or the principal U.S. securities
exchange on which the Company's Common Stock is then listed, or, if the
Company's Common Stock is not quoted on the National Association of Securities
Dealers Automated Quotation System and is not listed on a U.S. national or
regional exchange or, as reported on the principal other market on which the

                                       5
<PAGE>

Company's Common Stock is then traded. In the absence of such quotations, the
Board of Directors of the Company will make a good faith determination of the
sale price.

         "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 or, in the event of a merger, consolidation or other
similar transaction involving the Company that is otherwise permitted hereunder
in which the Company is not the surviving corporation, the common stock, common
equity interests, ordinary shares or depositary shares or other certificates
representing common equity interests of such surviving corporation or its direct
or indirect parent corporation.

         "Conversion Agent" has the meaning specified in Section 1.01 hereto.

         "Conversion Date" has the meaning specified in Section 14.02(a) hereto.

         "Conversion Price" has the meaning specified in Section 14.01(c)
hereto.

         "Conversion Rate" has the meaning specified in Section 14.01(c) hereto.

         "Corporate Trust Office" means the principal office of the Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of original execution of this Indenture is located at
101 Barclay Street, Floor 8W, New York, New York 10286, Attention: Corporate
Trust Administration, except that, with respect to presentation of the 2011
Notes for payment or registration of transfers or exchanges and the location of
the register, such term means the office or agency of the Trustee at which at
any particular time its principal corporate trust business shall be conducted,
which at the date of original execution of this Indenture is located at 101
Barclay Street, Floor 8W, New York, New York 10286.

         "Current Market Price" has the meaning specified in Section 14.06(f) of
the Indenture.

         "Determination Date" has the meaning specified in Section 14.06(d) of
the Indenture.

         "Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any successor statute.

         "Expiration Date" has the meaning specified in Section 14.06(e) of the
Indenture.

         "Expiration Time" has the meaning specified in Section 14.06(e) of the
Indenture.

         "Fundamental Change" means any transaction or event resulting in either
a Change of Control Event or a Termination of Trading.

         "Fundamental Change Company Notice" has the meaning specified in
Section 15.01(b) of the Indenture.

         "Fundamental Change Repurchase Date" has the meaning specified in
Section 15.01(a) of the Indenture.

                                       6
<PAGE>

         "Fundamental Change Repurchase Notice" has the meaning specified in
Section 15.01(b) of the Indenture.

         "Fundamental Change Repurchase Price" has the meaning specified in
Section 15.01(a) of the Indenture.

         "Global Securities" has the meaning specified in Section 101 hereof.

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

         "interest", when used with respect to the 2011 Notes means any interest
payable under the terms of the 2011 Notes.

         "Interest Payment Date" means May 15 and November 15 of each year,
commencing November 15, 2004.

         "Issue Date" of any 2011 Note means the date on which the 2011 Note was
originally issued as specified on the face of the 2011 Note.

         "Issue Price" of any 2011 Note means, in connection with the original
issuance of such 2011 Note, the initial issue price at which the 2011 Note is
sold to the public as set forth on the face of the 2011 Note.

         "Notice of Conversion" has the meaning specified in Section 14.02(a) of
the Indenture.

         "Principal Amount" of a 2011 Note means the Principal Amount as set
forth on the face of the 2011 Note.

         "Purchased Shares" has the meaning specified in 14.05 of the Indenture.

         "Registrar" has the meaning specified in Section 4.02 of the Indenture.

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

         "Regular Record Date" means, with respect to each Interest Payment
Date, the close of business on the May 1 or November 1 next preceding such
Interest Payment Date (whether or not a Business Day).

         "Rights Plan" has the meaning specified in Section 14.06(c) of the
Indenture.

         "Sale Price" means the closing per share sale price (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 Nasdaq National Market System or its successors.

         "Securities Act" means the Securities Act of 1933, as amended, or any
successor statute.

                                       7
<PAGE>
         "Surviving Entity" has the meaning specified in Section 10.01 of the
Indenture.

         "Termination of Trading" means the Company's Common Stock or other
common stock into which the 2011 Notes are convertible is neither listed for
trading on a United States national securities exchange nor approved for listing
on the Nasdaq National Market System or any similar United States system of
automated dissemination of quotations of securities prices, and no American
Depositary Shares or similar instruments for such common stock are so listed or
approved for listing in the United States.

         "Trading Day" means (x) if the applicable security is quoted on the
Nasdaq National Market System or Nasdaq SmallCap Market, a day on which trades
may be made on thereon or (y) if the applicable security is listed or admitted
for trading on the New York Stock Exchange or another national security
exchange, a day on which the New York Stock Exchange or such other national
security exchange is open for business or (z) if the applicable security is not
so listed, admitted for trading or quoted, any Business Day.

         "Trigger Event" has the meaning specified in Section 14.06(c) of the
Indenture.

         "Triggering Distribution" has the meaning specified in Section 14.06(d)
of the Indenture.

         "2011 Notes" means the 1.25% Senior Convertible Notes due August 2011
of the Company authorized by resolution of the Board of Directors.

SECTION 202. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.

         The Indenture shall be amended by replacing clause (d) of Section 2.05
with the following paragraph:

                  "(d) The Company shall not be required (i) to issue, exchange
         or register the transfer of any Securities during a period beginning at
         the opening of business 15 days before the day of the mailing of a
         notice of redemption of less than all the Outstanding Securities of the
         same series and ending at the close of business on the day of such
         mailing, (ii) to register the transfer of or exchange any Securities of
         any series or portions thereof called for redemption or (iii) to
         exchange or register a transfer of any 2011 Note or portion thereof in
         respect of which a Fundamental Change Repurchase Notice has been
         delivered and not withdrawn by the Holder thereof (except, in the case
         of the purchase of a 2011 Note in part, the portion not to be
         purchased). The provisions of this Section 2.05 are, with respect to
         any Global Security, subject to Section 2.11 hereof."

SECTION 203. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

         The Indenture shall be amended by replacing the fifth sentence of the
first paragraph of Section 2.07 with the following sentence:

                  "In case any Security that has matured or is about to mature,
         or is about to be repurchased by the Company upon a Fundamental Change
         or redeemed by the Company on a Redemption Date, shall become mutilated
         or be destroyed, lost or stolen, the Company may, instead of issuing a
         substitute Security, pay or authorize the payment of

                                       8
<PAGE>

         the same (without surrender thereof except in the case of a mutilated
         Security) if the applicant for such payment shall furnish to the
         Company and the Trustee such security or indemnity as they may require
         to save them harmless, and, in the case of destruction, loss or theft,
         evidence to the satisfaction of the Company and the Trustee of the
         destruction, loss or theft of such Security and the of the ownership
         thereof."

SECTION 204. CANCELLATION.

         The first sentence of Section 2.08 of the Indenture shall be amended by
inserting the word "conversion" in the first sentence thereof, following the
word "redemption".

Section 205. REDEMPTION.

         Article III of the Indenture shall be amended by:

                  (a) Section 3.01 of the Indenture is amended to read in its
entirety as follows:

                  "Section 3.01 Redemption

                   Prior to May 20, 2007, the 2011 Notes are not redeemable.
         Thereafter, the 2011 Notes are redeemable as follows:

                  (a) At any time on or after May 20, 2007 and before May 20,
         2009, the 2011 Notes are redeemable for cash, in whole or in part, at a
         Redemption Price equal to 100% expressed as a percentage of the
         Principal Amount of Securities to be redeemed, together with accrued
         and unpaid interest, to, but excluding, the Redemption Date, provided
         that the Closing Price of the Company's Common Stock is greater than
         145% of the Conversion Price then in effect for at least 20 Trading
         Days within a period of 30 consecutive Trading Days ending on the
         Trading Day prior to the date on which the written notice is mailed to
         the Trustee of the Company's redemption; provided further that such
         notice date shall be at least 20 days but not more than 60 days prior
         to the Redemption Date; and

                  (b) At any time on or after May 20, 2009, the 2011 Notes are
         redeemable for cash, in whole or in part, at the option of the Company
         at the Redemption Price equal to 100% expressed as a percentage of the
         Principal Amount of Securities to be redeemed, together with accrued
         and unpaid interest, to, but excluding, the Redemption Date."

                  (b) Section 3.02 of the Indenture is amended by replacing the
         words "90 days" with the words "60 days".

                  (c) A new Section 3.07 shall be inserted as follows:

         "Section 3.07.  Conversion Arrangement on Call for Redemption

                  In connection with the 2011 Notes, the Company may arrange for
         the purchase and conversion of any 2011 Notes called for redemption by
         an agreement with one or more investment bankers or other purchasers to
         purchase such 2011 Notes by paying to a

                                       9
<PAGE>

         Paying Agent (other than the Company or any of its Affiliates) in trust
         for the Holders, on or before 11:00 A.M. New York City time on the
         Redemption Date, an amount that, together with any amounts deposited
         with such Paying Agent by the Company for the redemption of such 2011
         Notes, is not less than the Redemption Price of such 2011 Notes.
         Notwithstanding anything to the contrary contained in this Article
         Three, the obligation of the Company to pay the Redemption Price of
         such 2011 Notes, including interest, if any, shall be deemed to be
         satisfied and discharged to the extent such amount is so paid by such
         purchasers; provided, however, that nothing in this Section 3.07 shall
         relieve the Company of its obligation to pay the Redemption Price on
         the 2011 Notes called for redemption. If such an agreement is entered
         into, any 2011 Notes called for redemption and not surrendered for
         conversion by the Holders thereof prior to the relevant Redemption Date
         may, at the option of the Company upon written notice to the Trustee,
         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 Fourteen) surrendered by such purchasers
         for conversion, all as of 11:00 A.M. New York City time on the
         Redemption Date, subject to payment of the above amount as aforesaid.
         The Paying Agent shall hold and pay to the Holders whose 2011 Notes are
         selected for redemption any such amount paid to it for purchase in the
         same manner as it would money deposited with it by the Company for the
         redemption of the 2011 Notes. Without the Paying Agent's prior written
         consent, no arrangement between the Company and such purchasers for the
         purchase and conversion of any 2011 Notes shall increase or otherwise
         affect any of the powers, duties, responsibilities or obligations of
         the Paying Agent as set forth in this Indenture, and the Company agrees
         to indemnify the Paying Agent 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 2011 Notes
         between the Company and such purchasers, including the costs and
         expenses incurred by the Paying Agent in the defense of any claim or
         liability reasonably incurred without negligence or bad faith on its
         part arising out of or in connection with the exercise or performance
         of any of its powers, duties, responsibilities or obligations under
         this Indenture, in accordance with the indemnity provisions applicable
         to the Trustee set forth herein."

SECTION 206. MAINTENANCE OF OFFICE OR AGENCY.

         Section 4.02 of the Indenture shall be amended by replacing it with the
following:

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

                                       10
<PAGE>

         required office or agency or shall fail to furnish the Trustee with the
         address thereof, such presentations, notices and demands may be made or
         served at the Corporate Trust Office of the Trustee, and the Company
         hereby appoints the Trustee as its agent to receive all such
         presentations, notices, surrenders and demands."

SECTION 207. EVENTS OF DEFAULT; LIMITATION ON SUITS.

         (a)      Clause (a)(1) of Section 6.01 of the Indenture is amended to
read in its entirety as follows:

                  "(1) the Company defaults in the payment of any installment of
         interest upon any of the Securities of that series, as and when the
         same shall become due, and payable, and continuance of such default for
         a period of 30 days; provided, however, that a valid extension of an
         interest payment period by the Company in accordance with the terms of
         any indenture supplemental hereto, shall not constitute a default in
         the payment of interest for this purpose;"

         (b)      Clause (a)(2) of Section 6.01 of the Indenture is amended by
inserting the words "upon repurchase (including upon a Fundamental Change)," in
the first sentence thereof, following the word "redemption".

         (c)      Clause (a)(3) of Section 6.01 of the Indenture is amended by
replacing the phrase "90 days" with the phrase "60 days".

         (d)      Clause (a)(4) of Section 6.01 of the Indenture is renumbered
as clause (a)(7).

         (e)      Section 6.01(a) of the Indenture is amended by included the
                  following new clauses (4), (5) and (6):

         "(4) the Company defaults in the performance of its obligation to
         convert the 2011 Notes upon the exercise of a Holder's rights pursuant
         to Article 14 and continuance of such default for a period of 10 days;

         (5) the Company or any Subsidiary defaults in the payment of the
         principal or interest on any loan, agreement or other instrument under
         which there may be outstanding, or by which there may be secured or
         evidenced, any of the indebtedness of the Company or any of its
         Subsidiaries for money borrowed in excess of $10,000,000 in the
         aggregate (other than the indebtedness for borrowed money secured only
         by the real property where the indebtedness relates and which is
         non-recourse to the Company or to any Subsidiary, whether such
         indebtedness now exists or shall hereafter be created, resulting in
         such indebtedness becoming or being declared due and payable prior to
         its Stated Maturity, and such acceleration shall not have been
         rescinded or annulled within 30 days after the date on which written
         notice of such acceleration has been received by the Company or such
         Subsidiary from the Trustee or by the Trustee, the Company and such
         Subsidiary by holders of at least 25% in principal amount of the
         Securities of that series at the time Outstanding;

         (6) the Company fails to give the Fundamental Change Notice;"

                                       11
<PAGE>

         (c) Section 6.01(b) of the Indenture is amended by: (i) inserting the
words "(other than an Event of Default as specified in Section 6.01(a)(7)" after
the words "such case"; (ii) inserting the words "plus accrued and unpaid
interest, if any, to the acceleration date" after the words "the same" and (iii)
inserting the following words at the end of the paragraph:

         "If an Event of Default specified in Section 6.01(a)(7) occurs, the
principal of all the Securities of that series, plus accrued and unpaid
interest, if any, to the acceleration date, shall be immediately and
automatically due and payable without necessity of further action."

         (c) Section 6.01(c) of the Indenture is amended by inserting the words
"and the Redemption Price or Fundamental Change Repurchase Price, as applicable
on", in the first sentence following the phrase, "the principal of (and premium,
if any, on)".

         (d) Section 6.02(a) of the Indenture is amended by replacing the phrase
"90 Business Days" with the phrase "30 days" and inserting the words, "or
repurchase (including upon a Fundamental Change)", following the word
"redemption".

         (e) Section 6.03 of the Indenture is amended by replacing the words
"and interest" in the third paragraph with the words ", Redemption Price,
Fundamental Change Repurchase Price and interest, as the case may be" and
deleting the words "for principal (and premium, if any) and interest,
respectively" at the end of that paragraph.

         (f) Section 6.04 of the Indenture shall be amended by replacing the
second paragraph of that section with the following:

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

                                       12
<PAGE>

         (g)      Section 6.06 of the Indenture is amended by: (i) inserting the
words "the Redemption Price or the Fundamental Change Repurchase Price,"
following the words "or premium, if any," in the third sentence and inserting
the words "the Redemption Price or the Fundamental Change Repurchase Price"
following the words "and any premium" in the third sentence and (ii) inserting
the following phrase following the words "except a default" in the third
sentence:

                  "(a) in respect of a covenant or provision hereof which under
                  Article Nine cannot be modified or amended without the consent
                  of the Holder of each Security then Outstanding and (b)"

         (h)      Section 6.07 of the Indenture is amended by inserting the
words "or the Redemption Price or the Fundamental Change Repurchase Price"
following the words "(or premium, if any)".

         (i)      Section 6.08 below is hereby added in its entirety to the
Indenture.

         Section 6.08. Unconditional Right of Holders to Receive Payment.

         Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of the Principal Amount, Redemption Price, Fundamental
Change Repurchase Price or interest in respect of the Securities held by such
Holder, on or after the respective due dates expressed in the Securities in
accordance with Article 14, or to bring suit for the enforcement of any such
payment on or after such respective dates or the right to convert, shall not be
impaired or affected adversely without the consent of such Holder.

         (j)      Section 6.09 below is hereby added in its entirety to the
Indenture.

         Section 6.09. Waiver of Stay or Extension Laws.

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

SECTION 208. SUPPLEMENTAL INDENTURES.

         (a)      Section 9.01 of the Indenture shall be amended by replacing
the entire section with the following:

         "In addition to any supplemental indenture otherwise authorized by this
         Indenture, the Company and the Trustee may from time to time and at any
         time enter into an indenture or indentures supplemental hereto (which
         shall conform to the provisions of the Trust

                                       13
<PAGE>

         Indenture Act as then in effect), without the consent of the
         Securityholders, for one or more of the following purposes:

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

                  (b)      to add to the covenants of the Company for the
                           benefit of the Holders, or to surrender any right or
                           power herein conferred upon the Company;

                  (c)      to provide for a successor Trustee with respect to
                           the Securities of any series;

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

                  (e)      to add any additional Events of Default for the
                           benefit of the Holders;

                  (f)      to convey, transfer, assign, mortgage or pledge to
                           the Trustee as security for the Securities of any
                           series any property or assets;

                  (g)      to increase the Conversion Rate of the Securities of
                           any series; provided, however, that such increase
                           shall be in accordance with the terms of this
                           Indenture or shall not adversely affect the interests
                           of the Holders of the Securities of any series;

                  (h)      to supplement any provision of this Indenture to such
                           extent as shall be necessary to permit or facilitate
                           the discharge of the Securities of any series;
                           provided that such change or modification does not
                           adversely affect the interests of the Holders of the
                           Securities of any series;

                  (i)      to make any change or modification necessary in
                           connection with the registration of the Securities of
                           any series under the Securities Act; provided that
                           such change or modification does not adversely affect
                           the interests of the Holders of Securities of any
                           series;

                  (j)      to add or modify any other provision herein with
                           respect to matters or questions arising hereunder
                           which the Company and the Trustee may deem necessary
                           or desirable and which would not reasonably be
                           expected to adversely affect the interests of the
                           Holders of Securities of any series in any material
                           respect;

                  (k)      to reopen a series of securities and to issue
                           additional securities of such series pursuant to the
                           terms of this Indenture.

                  The Trustee is hereby authorized to join with the Company in
         the execution of any such supplemental indenture, and to make any
         further appropriate agreements and stipulations that may be therein
         contained, but the Trustee shall not be obligated to enter into any
         such supplemental indenture that affects the Trustee's own rights,
         duties or immunities under this Indenture or otherwise.

                                       14
<PAGE>

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

         (b)      Section 9.02 of the Indenture shall be amended by replacing
the lettered clauses (i) and (ii) of that section with the following:

                  (a)      reduce the rate of or extend the time for payment of
                           interest, if any, on the Security of any series;

                  (b)      reduce the Principal Amount of, or extend the Stated
                           Maturity of, any Security of any series;

                  (c)      make any change that impairs or adversely affects the
                           conversion rights of any Securities of any series;

                  (d)      reduce the Redemption Price or Fundamental Change
                           Repurchase Price of any Security of any series or
                           amend or modify in any manner adverse to the Holders
                           of Securities of any series the Company's obligation
                           to make such payments, whether through an amendment
                           or waiver of provisions in the covenants, definitions
                           or otherwise;

                  (e)      modify the provisions with respect to the right of
                           Holders to cause the Company to repurchase Securities
                           of any series upon a Fundamental Change in a manner
                           adverse to Holders of Securities of any series;

                  (f)      make any interest or principal on a Security of any
                           series payable in money other than that stated in the
                           Security of any series or other than in accordance
                           with the provisions of this Indenture;

                  (g)      impair the right of any Holder to receive payment of
                           the Principal Amount of or interest on a Holder's
                           Securities of any series on or after the due dates
                           therefor or to institute suit for the enforcement of
                           any payment on or with respect to such Holder's
                           Securities of any series;

                  (h)      reduce the quorum or voting requirements under this
                           Indenture;

                  (i)      change the ranking of the Securities of any series in
                           a manner adverse to the Holders of the Securities of
                           any series;

                  (j)      make any change in the amendment provisions which
                           require each Holder's consent or in the waiver
                           provisions;

                  (k)      reduce the percentage in Principal Amount of the
                           Outstanding Securities, the consent of whose Holders
                           is required for any such supplemental indenture, or
                           the consent of whose Holders is required for any
                           waiver (of compliance with certain

                                       15
<PAGE>

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

                  (l)      modify any of the provisions of this Section 9.02 or
                           Section 6.06, except to increase any such percentage
                           or to provide that certain other provisions of this
                           Indenture cannot be modified or waived without the
                           consent of the Holder of each Outstanding Security
                           affected thereby."

SECTION 209. COMPANY MAY CONSOLIDATE, ETC. ONLY ON CERTAIN TERMS

         Article 10 of the Indenture is amended by replacing Sections 10.01,
10.02 and 10.03 with the following:

         "Section 10.01.  Company May Consolidate, Etc., Only on Certain Terms.

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

         (a) either (i) the Company shall be the continuing Person or (ii) the
Person (if other than the Company) formed by such consolidation or into which
the Company is merged or the Person which acquires by conveyance or transfer, or
which leases, the properties and assets of the Company substantially as an
entirety (the "SURVIVING ENTITY"), (1) shall be either (a) organized and validly
existing under the laws of the United States of America, any State thereof or
the District of Columbia, or (b) organized under the laws of a jurisdiction
outside of the United States and has common stock traded on a national
securities exchange in the United States and a worldwide total market
capitalization of its equity securities before giving effect to the
consolidation or merger of at least US$2 billion, and (2) the Surviving Entity
shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, all of the obligations of the Company under the
Securities and this Indenture;

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

         (c) the Company or the Surviving Entity has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease and, if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture comply with the applicable provisions of this Indenture.

         Section 10.02.  Successor Entity Substituted.

         (a) Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any conveyance, transfer or lease of the
properties and assets of the Company substantially as an entirety in accordance
with Section 10.01, the successor Person formed by

                                       16
<PAGE>

such consolidation or into which the Company is merged or to which such
conveyance, transfer or lease is made shall succeed to, and be substituted for,
and may exercise every right and power of, the Company under this Indenture with
the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Securities.

         (b) In case of any such consolidation, merger, sale, conveyance,
transfer or other disposition such changes in phraseology and form (but not in
substance) may be made in the Securities thereafter to be issued as may be
appropriate."

SECTION 210. CONVERSION.

         The Indenture is amended by adding the following Article Fourteen:

                                   ARTICLE XIV

                            CONVERSION OF 2011 NOTES

         Section 14.01.  Conversion Privilege.

         Subject to and upon compliance with the provisions of this Article, at
the option of the Holder thereof, any 2011 Note or any portion of the principal
amount at which is $1,000 or an integral multiple of $1,000 at Stated Maturity
thereof may be converted based on the principal amount at Stated Maturity
thereof, or of such portion thereof, into fully paid and non-assessable shares
(calculated as to each conversion to the nearest 1/100 of a share) of Common
Stock of the Company, at the conversion price, determined as hereinafter
provided, in effect at the time of conversion. Such conversion right shall
commence on the date of issuance of the 2011 Notes and expire at the close of
business on the date provided for in the 2011 Notes with respect to such 2011
Notes. In case a 2011 Note or portion thereof is called for redemption, such
conversion right in respect of the 2011 Note or portion so called shall expire
at the close of business on the second Business Day immediately preceding the
Redemption Date, unless the Company defaults in making the payment due upon
redemption.

            (b) Conversion Period. Notwithstanding the foregoing, if such 2011
Note is submitted or presented for repurchase pursuant to Article 15, such
conversion right shall terminate at the close of business on the Business Day
prior to the Fundamental Change Repurchase Date for such 2011 Note or such
earlier date as the Holder presents such 2011 Note for repurchase (unless the
Company shall default when due, in which case the conversion right shall
terminate at the close of business on the date such default is cured and such
2011 Note is repurchased).

            (c) Conversion Rate; Conversion Price. The conversion rate per 2011
Note (the "CONVERSION Rate") shall be that set forth in under the caption
"Conversion" in the 2011 Notes, subject to adjustment as herein set forth. The
initial Conversion Rate is 54.0972 shares of Common Stock per $1,000 principal
amount of Securities. The "CONVERSION PRICE" at any particular time is
determined by dividing $1,000 by the then-applicable Conversion Rate and rounded
to the nearest cent.

                                       17
<PAGE>

         (d) Delivery of Officers' Certificate. If any of the 2011 Notes is
convertible by the Holders into Common Stock, the Company shall deliver to the
Trustee an Officers' Certificate to that effect stating (i) the fact that such
2011 Notes are so convertible, (ii) the date as of which the 2011 Notes are
convertible, (iii) the reason why the 2011 Notes are convertible and (iv) the
Conversion Rate at which the 2011 Notes are convertible. Unless and until a
Trust Officer of the Trustee receives such Officers' Certificate, the Trustee
may assume without inquiry that the 2011 Notes are not convertible. Whenever any
fact set forth in an Officers' Certificate delivered pursuant to this Section
14.01 changes, the Company shall deliver to the Trustee a new Officers'
Certificate setting forth the correct information. Unless and until a Trust
Officer receives such a correcting Officers' Certificate, the Trustee may assume
without inquiry that the last Officers' Certificate delivered to it remains in
full force and effect and is correct is every respect.

         (e) 2011 Notes Converted in Whole or in Part. Provisions of this
Indenture that apply to conversion of all of a 2011 Note also apply to
conversion of a portion of a 2011 Note.

         (f) Rights of Holders. A Holder of 2011 Notes is not entitled to any
rights of a holder of Common Stock until such Holder has converted its 2011
Notes to Common Stock, and only to the extent such 2011 Notes are deemed to have
been converted into Common Stock pursuant to this Article 14.

         (g) Payment of Interest. Except as provided in the following sentence,
Holders will not receive any cash payment representing accrued and unpaid
interest upon conversion of a 2011 Note and accrued and unpaid interest will be
deemed paid in full rather than canceled, extinguished or forfeited.
Notwithstanding the previous sentence, if a 2011 Note shall be surrendered for
conversion during the period from the close of business on any Regular Record
Date for the payment of interest through the close of business on corresponding
Interest Payment Date, the Holder of such 2011 Note (or portion thereof being
converted) at the close of business on such Regular Record Date shall receive
the interest payable on the corresponding Interest Payment Date notwithstanding
the conversion. Such a 2011 Note must be accompanied by an amount, in funds
acceptable to the Company, equal to the interest payable on such Interest
Payment Date on the Principal Amount being converted; provided, however, that no
such payment shall be required if (i) the 2001 Notes surrendered for conversion
shall have been called for redemption by the Company on a Redemption Date that
is after such Regular Record Date but prior to the corresponding Interest
Payment Date or (ii) there shall exist at the time of conversion a default in
the payment of interest on the 2011 Notes. Except where 2011 Notes surrendered
for conversion must be accompanied by payment as described above, no interest on
converted 2011 Notes will be payable by the Company on any Interest Payment Date
subsequent to the date of conversion.

         Section 14.02. Conversion Procedure.

         (a) To convert a 2011 Note, a Holder must (i) complete and manually
sign the conversion notice on the back of the 2011 Note or facsimile of the
conversion notice and deliver such notice to a Conversion Agent, (ii) surrender
the 2011 Note to a Conversion Agent or, in the case of a Global Security,
deliver, or cause to be delivered, by book-entry delivery an interest in such
2011 Note, (iii) furnish appropriate endorsements and transfer documents if
required by a Registrar or a Conversion Agent, (iii) in the case of a Global
Security, complete, or cause to be

                                       18
<PAGE>

completed, the appropriate instruction form for conversion pursuant to the
Depositary's book-entry conversion program, (v) pay any amount as required by
Section 14.01(g), if applicable, and (vi) pay any transfer or similar tax, if
required. Such notice is hereinafter referred to as a "NOTICE OF CONVERSION." A
2011 Note shall be deemed to have been converted as of the close of business on
the date (the "CONVERSION DATE") on which the Holder has complied with the
immediately preceding sentence of this clause (a) of Section 14.02. Anything
herein to the contrary notwithstanding, in the case of Global Securities, a
Notice of Conversion shall be delivered and such 2011 Notes shall be surrendered
for conversion in accordance with the rules and procedures of the Depositary as
in effect from time to time.

         (b) The Company will, as soon as practicable after the Conversion Date,
issue, or cause to be issued, and deliver to the Conversion Agent or to such
Holder, or such Holder's nominee or nominees, in book-entry form, the number of
full shares of Common Stock, if any, to which such Holder shall be entitled. The
Person or Persons entitled to receive such Common Stock upon such conversion
shall be treated for all purposes as the record holder or holders of such Common
Stock, as of the close of business on the applicable Conversion Date; provided,
however, that no surrender of a 2011 Note on any date when the stock transfer
books of the Company shall be closed shall be effective to constitute the Person
or Persons 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; provided further that such conversion shall
be at the Conversion Rate in effect on the Conversion Date as if the stock
transfer books of the Company had not been closed. Upon conversion of a 2011
Note, such Person shall no longer be a Holder of such 2011 Note. Except as
otherwise provided in Section 14.06, no payment or adjustment will be made for
dividends or distributions on shares of Common Stock issued upon conversion of a
2011 Note.

         (c) If a Holder converts more than one 2011 Note at the same time, the
number of shares of Common Stock issuable upon the conversion shall be based on
the aggregate Principal Amount of 2011 Notes converted.

         (d) Upon surrender of a 2011 Note that is converted in part, the
Company shall execute, and the Trustee shall authenticate and deliver to the
Holder, a new 2011 Note equal in principal amount to the unconverted portion of
the 2011 Note surrendered.

         (e) If the last day on which 2011 Note may be converted is not a
Business Day in a place where a Conversion Agent is located, the 2011 Notes may
be surrendered to that Conversion Agent on the next succeeding Business Day.

         (f) Holders that have already delivered a Fundamental Change Repurchase
Notice with respect to a 2011 Note may not surrender such 2011 Note for
conversion until the Fundamental Change Repurchase Notice has been withdrawn in
accordance with the procedures set forth in Article 15.

         Section 14.03. Fractional Shares.

                                       19
<PAGE>

         The Company will not issue fractional shares of Common Stock upon
conversion of 2011 Notes. In lieu thereof, the Company will pay an amount in
cash for the current market value of the fractional shares. The current market
value of a fractional share shall be determined, (calculated to the nearest
1/1000th of a share) by multiplying the Closing Price of the Common Stock on the
Trading Day immediately prior to the Conversion Date by such fractional share
and rounding the product to the nearest whole cent.

         Section 14.04. Taxes on Conversion.

         If a Holder converts a 2011 Note, the Company shall pay any
documentary, stamp or similar issue or transfer tax due on the issuance of
shares of Common Stock upon such 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 certificate representing the Common Stock being issued in a name other than
the Holder's name until the Conversion Agent receives a sum 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 regulation.

         Section 14.05. Company to Provide Stock.

         (a) The Company shall, prior to issuance of any 2011 Notes hereunder,
and from time to time as may be necessary, reserve, out of its authorized but
unissued Common Stock, a sufficient number of shares of Common Stock to permit
the conversion of all outstanding 2011 Notes into shares of Common Stock
(including after taking into account any adjustments to the Conversion Rate
pursuant to Section 14.06).

         All shares of Common Stock delivered upon conversion of the 2011 Notes
shall be newly issued shares, shall be duly authorized, validly issued, fully
paid and non-assessable 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 2011 Notes, if any, and will list or cause to have quoted such
shares of Common Stock on each national securities exchange or on the New York
Stock Exchange, the Nasdaq National Market System or other over-the-counter
market or such other market on which the Common Stock is then listed or quoted;
provided, however, that if rules of such automated quotation system or exchange
permit the Company to defer the listing of such Common Stock until the first
conversion of the 2011 Notes into Common Stock in accordance with the provisions
of this Indenture, the Company covenants to list such Common Stock issuable upon
conversion of the Notes in accordance with the requirements of such automated
quotation system or exchange at such time.

         Section 14.06. Adjustment of Conversion Rate.

         The Conversion Rate shall be adjusted from time to time by the Company
as follows:

                                       20
<PAGE>

         (a) In case the Company shall (i) pay a dividend on its Common Stock in
shares of Common Stock, (ii) make a distribution on its Common Stock in shares
of Common Stock, (iii) subdivide its outstanding Common Stock into a greater
number of shares, or (iv) combine its outstanding Common Stock into a smaller
number of shares, the Conversion Rate in effect immediately prior thereto shall
be adjusted so that the Holder of any 2011 Note thereafter surrendered for
conversion shall be entitled to receive that number of shares of Common Stock
which it would have owned had such 2011 Note been converted immediately prior to
the happening of such event. An adjustment made pursuant to this subsection (a)
shall become effective immediately after the record date in the case of a
dividend or distribution and shall become effective immediately after the
effective date in the case of subdivision or combination.

         (b) Subject to the last paragraph of Section 14.06(c), in case the
Company shall issue rights or warrants (other than pursuant to a stockholder
rights plan) to all or substantially all holders of its Common Stock entitling
them (for a period commencing no earlier than the record date described below
and expiring not more than 60 days after such record date) to subscribe for or
purchase shares of Common Stock (or securities convertible into Common Stock) at
a price per share (or having a conversion price per share) less than the Closing
Price per share of Common Stock on the Business Day immediately prior to the
date of announcement of such issuance, the Conversion Rate in effect shall be
adjusted so that the same shall equal the rate determined by multiplying the
Conversion Rate in effect immediately prior to such announcement by a fraction
of which the numerator shall be the number of shares of Common Stock outstanding
at the close of business on the date of announcement plus the number of
additional shares of Common Stock offered (or into which the convertible
securities so offered are convertible), and the denominator of which shall be
the number of shares of Common Stock outstanding at the close of business on the
date of announcement plus the number of shares which the aggregate offering
price of the total number of shares of Common Stock so offered (or the aggregate
conversion price of the convertible securities so offered, which shall be
determined by multiplying the number of shares of Common Stock issuable upon
conversion of such convertible securities by the conversion price per share of
Common Stock pursuant to the terms of such convertible securities) would
purchase at the Current Market Price per share of Common Stock on the Business
Day immediately preceding the date of announcement of such issuance. Such
adjustment shall be made successively whenever any such rights or warrants are
issued, and shall become effective on the day following the date of announcement
of such issuance. If at the end of the period during which such rights or
warrants are exercisable not all rights or warrants shall have been exercised,
the adjusted Conversion Rate shall be immediately readjusted to what it would
have been based upon the number of additional shares of Common Stock actually
issued (or the number of shares of Common Stock issuable upon conversion of
convertible securities actually issued).

         (c) In case the Company shall distribute to all or substantially all
holders of its Common Stock any shares of capital stock of the Company (other
than Common Stock), evidences of indebtedness or other non-cash assets
(including securities of any person other than the Company but excluding (1)
dividends or distributions paid exclusively in cash or (2) dividends or
distributions referred to in subsection (a) of this Section 14.06), or shall
distribute to all or substantially all holders of its Common Stock rights or
warrants to subscribe for or purchase any of its securities (excluding those
rights and warrants referred to in

                                       21
<PAGE>

subsection (b) of this Section 14.06 and also excluding the distribution of
rights to all holders of Common Stock pursuant to a Rights Plan (as defined
below) or the detachment of such rights to the extent set forth in the second
following paragraph), then in each such case the Conversion Rate shall be
adjusted so that the same shall equal the rate determined by multiplying the
current Conversion Rate by a fraction of which the numerator shall be the
Current Market Price per share of the Common Stock on the record date mentioned
below and the denominator shall be the Current Market Price per share of the
Common Stock on such record date less the fair market value on such record date
(as determined by the Board of Directors, whose determination shall be
conclusive evidence of such fair market value and which shall be evidenced by an
Officers' Certificate delivered to the Trustee) of the portion of the capital
stock, evidences of indebtedness or other non-cash assets so distributed or of
such rights or warrants applicable to one share of Common Stock (determined on
the basis of the number of shares of Common Stock outstanding on the record
date). Such adjustment shall be made successively whenever any such distribution
is made and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such distribution.

         In the event the then fair market value (as so determined) of the
portion of the Capital Stock, evidences of indebtedness or other non-cash assets
so distributed or of such rights or warrants applicable to one share of Common
Stock is equal to or greater than the Current Market Price per share of the
Common Stock on such record date, in lieu of the foregoing adjustment, adequate
provision shall be made so that each holder of a 2011 Note shall have the right
to receive upon conversion the amount of Capital Stock, evidences of
indebtedness or other non-cash assets so distributed or of such rights or
warrants such holder would have received had such holder converted each 2011
Note on such record date. In the event that such dividend or distribution is not
so paid or made, the Conversion Rate shall again be adjusted to be the
Conversion Rate which would then be in effect if such dividend or distribution
had not been declared. If the Board of Directors determines the fair market
value of any distribution for purposes of this Section 14.06 by reference to the
actual or when issued trading market for any securities, it must in doing so
consider the prices in such market over the same period used in computing the
Current Market Price of the Common Stock.

         In the event that the Company has in effect a preferred shares rights
plan ("Rights Plan"), upon conversion of the 2011 Notes into Common Stock, to
the extent that the Rights Plan is still in effect upon such conversion, the
holders of 2011 Notes will receive, in addition to the Common Stock, the rights
described therein (whether or not the rights have separated from the Common
Stock at the time of conversion), subject to the limitations set forth in the
Rights Plan. If the Rights Plan provides that upon separation of rights under
such plan from the Company's Common Stock that the Holders would not be entitled
to receive any such rights in respect of the Common Stock issuable upon
conversion of the 2011 Notes, the Conversion Rate will be adjusted as provided
in this Section 14.06(c) (with such separation deemed to be the distribution of
such rights), subject to readjustment in the event of the expiration,
termination or redemption of the rights. Any distribution of rights or warrants
pursuant to a Rights Plan that would allow a Holder to receive upon conversion,
in addition to the Common Stock, the rights described therein (whether or not
the rights have separated from the Common Stock at the time of conversion),
shall not constitute a distribution of rights or warrants pursuant to this
Article 14.

                                       22
<PAGE>

                  Rights or warrants distributed by the Company to all holders
of Common Stock entitling the holders thereof to subscribe for or purchase
shares of the Company's Capital Stock (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a specified
event or events ("Trigger Event"): (i) are deemed to be transferred with such
shares of Common Stock; (ii) are not exercisable; and (iii) are also issued in
respect of future issuances of Common Stock, shall be deemed not to have been
distributed for purposes of this Section 14.06 (and no adjustment to the
Conversion Rate under this Section 14.06 will be required) until the occurrence
of the earliest Trigger Event, whereupon such rights and warrants shall be
deemed to have been distributed and an appropriate adjustment (if any is
required) to the Conversion Rate shall be made under this clause (c) of Section
14.06. If any such right or warrant, including any such existing rights or
warrants distributed prior to the date of this Indenture, are subject to events,
upon the occurrence of which such rights or warrants become exercisable to
purchase different securities, evidences of indebtedness or other assets, then
the date of the occurrence of any and each such event shall be deemed to be the
date of distribution and record date with respect to new rights or warrants with
such rights (and a termination or expiration of the existing rights or warrants
without exercise by any of the holders thereof). In addition, in the event of
any distribution (or deemed distribution) of rights or warrants, or any Trigger
Event or other event (of the type described in the preceding sentence) with
respect thereto that was counted for purposes of calculating a distribution
amount for which an adjustment to the Conversion Rate under this Section 14.06
was made, (1) in the case of any such rights or warrants which shall all have
been redeemed or repurchased without exercise by any holders thereof, the
Conversion Rate shall be readjusted upon such final redemption or repurchase to
give effect to such distribution or Trigger Event, as the case may be, as though
it were a cash distribution, equal to the per share redemption or repurchase
price received by a holder or holders of Common Stock with respect to such
rights or warrants (assuming such holder had retained such rights or warrants),
made to all holders of Common Stock as of the date of such redemption or
repurchase, and (2) in the case of such rights or warrants which shall have
expired or been terminated without exercise by any holders thereof, the
Conversion Rate shall be readjusted as if such rights and warrants had not been
issued.

            (d) In case the Company shall, by dividend or otherwise, at any time
distribute cash (a "TRIGGERING DISTRIBUTION") to all or substantially all
holders of its Common Stock, the Conversion Rate shall be increased so that the
same shall equal the rate determined by multiplying such Conversion Rate in
effect on the Business Day (the "DETERMINATION DATE") immediately preceding the
day on which such Triggering Distribution is declared by the Company by a
fraction of which the numerator shall be the Current Market Price per share of
the Common Stock on the Determination Date, and the denominator shall be the
Current Market Price per share of the Common Stock on the Determination Date
less the aggregate amount of cash so distributed applicable to one share of
Common Stock (determined on the basis of the number of shares of Common Stock
outstanding on the Determination Date), such increase to become effective
immediately prior to the opening of business on the day following the date on
which the Triggering Distribution is paid. It is expressly understood that a
stock buyback, repurchase or similar transaction or program shall in no event be
considered a Triggering Distribution for purposes of this clause (d) or (e) of
Section 14.06.

                                       23
<PAGE>

         (e) In case the Company or any of its Subsidiaries shall purchase any
shares of the Company's Common Stock by means of a tender offer, then, effective
immediately prior to the opening of business on the day after the last date (the
"EXPIRATION DATE") tenders could have been made pursuant to such tender offer
(as it may be amended) (the last time at which such tenders could have been made
on the Expiration Date is hereinafter sometimes called the "EXPIRATION TIME"),
the Conversion Rate shall be increased so that the same shall equal the rate
determined by multiplying the Conversion Rate in effect immediately prior to the
close of business on the Expiration Date by a fraction of which the numerator
shall be the sum of (x) the aggregate consideration (determined as set forth
below) payable to stockholders of the Company based on the acceptance (up to any
maximum specified in the terms of the tender offer) of all shares validly
tendered and not withdrawn as of the Expiration Time (the shares deemed so
accepted, up to any such maximum, being referred to as the "PURCHASED SHARES")
and (y) the product of the number of shares of Common Stock outstanding (less
any Purchased Shares and excluding any shares held in the treasury of the
Company) immediately prior to the Expiration Time and the Current Market Price
per share of Common Stock (as determined in accordance with clause (f) of
Section 14.06), and the denominator shall be the product of the number of shares
of Common Stock outstanding (including Purchased Shares but excluding any shares
held in the treasury of the Company) immediately prior to the Expiration Time
multiplied by the Current Market Price per share of the Common Stock (as
determined in accordance with clause (f) of Section 14.06). For purposes of this
clause (e) of Section 14.06, the aggregate consideration in any such tender
offer shall equal the sum of the aggregate amount of cash consideration and the
aggregate fair market value (as determined by the Board of Directors, whose
determination shall be conclusive evidence thereof and which shall be evidenced
by an Officers' Certificate delivered to the Trustee) of any other consideration
payable in such tender offer. In the event that the Company is obligated to
purchase shares pursuant to any such tender offer, but the Company is
permanently prevented by applicable law from effecting any or all such purchases
or any or all such purchases are rescinded, the Conversion Rate shall again be
adjusted to be the Conversion Rate which would have been in effect based upon
the number of shares actually purchased. If the application of this clause (e)
of Section 14.06 to any tender offer would result in a decrease in the
Conversion Rate, no adjustment shall be made for such tender offer under this
Section 14.06(e). For purposes of this clause (e) of Section 14.06, the term
"tender offer" shall mean and include both tender offers and exchange offers,
all references to "purchases" of shares in tender offers (and all similar
references) shall mean and include both the purchase of shares in tender offers
and the acquisition of shares pursuant to exchange offers, and all references to
"tendered shares" (and all similar references) shall mean and include shares
tendered in both tender offers and exchange offers.

         (f) For the purpose of any computation under clauses (b), (c) and (d)
of Section 14.06, the current market price (the "CURRENT MARKET PRICE") per
share of Common Stock on any date shall be deemed to be the average of the daily
Closing Prices for the ten consecutive Trading Days commencing 11 Trading Days
before (i) the Determination Date, with respect to distributions under
subsection (c) of this Section 14.06 or (ii) the record date with respect to
distributions, issuances or other events requiring such computation under
subsection (b) or (d) of this Section 14.06. For purposes of any computation
under subsection (e) of this Section 14.06, the Current Market Price per share
of Common Stock shall be deemed to be the average of the

                                       24
<PAGE>

daily Closing Prices for the ten consecutive Trading Days commencing on the
Trading Day next succeeding the Expiration Date.

         (g) In any case in which this Section 14.06 shall require that an
adjustment be made following a record date, an announcement date or a
Determination Date or Expiration Date, as the case may be, established for
purposes of this Section 14.06, the Company may elect to defer (but only until
five Business Days following the filing by the Company with the Trustee of the
certificate described in Section 14.09) issuing to the Holder of any 2011 Note
converted after such record date or announcement date or Determination Date or
Expiration Date the shares of Common Stock and other capital stock of the
Company issuable upon such conversion over and above the shares of Common Stock
and other capital stock of the Company issuable upon such conversion only on the
basis of the Conversion Rate prior to adjustment; and, in lieu of the shares the
issuance of which is so deferred, the Company shall issue or cause its transfer
agents to issue due bills or other appropriate evidence prepared by the Company
of the right to receive such shares. If any distribution in respect of which an
adjustment to the Conversion Rate is required to be made as of the record date
or announcement date or Determination Date or Expiration Date therefor is not
thereafter made or paid by the Company for any reason, the Conversion Rate shall
be readjusted to the Conversion Rate which would then be in effect if such
record date had not been fixed or such announcement date or effective date or
Determination Date or Expiration Date had not occurred.

         Section 14.07. No Adjustment.

         (a) No adjustment need be made for issuances of Common Stock pursuant
to a Company plan for reinvestment of dividends or interest or for a change in
the par value or a change to no par value of the Common Stock.

         (b) No adjustment in the Conversion Rate shall be made pursuant to this
Section 14.06 if the Holders may participate in the transaction that would
otherwise give rise to an adjustment pursuant to Section 14.06.

         (c) Other than as described above in Section 14.06, no adjustment to
the Conversion Rate shall be required for any issuance of Common Stock or
convertible or exchangeable securities or rights to purchase Common Stock or
convertible or exchangeable securities.

         (d) Except as provided in Section 14.01(g), no payment or adjustment to
the Conversion Rate shall be required for accrued and unpaid interest.

         Section 14.08. Adjustment for Tax Purposes.

         The Company shall be entitled to make such increases in the Conversion
Rate, in addition to those required by Section 14.06, as it in its discretion
shall determine to be advisable in order that any stock dividends, subdivisions
of shares, distributions of rights to purchase stock or securities or
distributions of securities convertible into or exchangeable for stock hereafter
made by the Company to its stockholders shall not be taxable.

                                       25
<PAGE>

         Section 14.09. Notice of Conversion Rate Adjustment.

         Whenever the Conversion Rate or conversion privilege is adjusted, the
Company shall promptly mail to Holders of 2011 Notes a notice of the adjustment
and file with the Trustee an Officers' Certificate briefly stating the facts
requiring the adjustment and the manner of computing it. Unless and until the
Trustee shall receive an Officers' Certificate setting forth an adjustment of
the Conversion Rate, the Trustee may assume without inquiry that the Conversion
Rate has not been adjusted and that the last Conversion Rate of which it has
knowledge remains in effect.

         Section 14.10. Notice of Certain Transactions. In the event that:

         (a) the Company takes any action which would require an adjustment in
the Conversion Rate;

         (b) the Company consolidates or merges with, or transfers all or
substantially all of its property and assets to, another corporation and
shareholders of the Company must approve the transaction; or

         (c) there is a dissolution or liquidation of the Company,

the Company shall mail to Holders and file with the Trustee a notice stating the
proposed record or effective date, as the case may be. The Company shall mail
the notice at least ten days before such date. Failure to mail such notice or
any defect therein shall not affect the validity of any transaction referred to
in clause (a), (b) or (c) of this Section 14.10.

         Section 14.11. Effect of Reclassification, Consolidation, Merger or
Sale on Conversion Privilege.

         If any of the following shall occur, namely: (a) any reclassification
or change of shares of Common Stock issuable upon conversion of the 2011 Notes
(other than a change in par value, or from par value to no par value, or from no
par value to par value, or as a result of a subdivision or combination, or any
other change for which an adjustment is provided in Section 14.06); (b) any
consolidation or merger or combination to which the Company is a party other
than a merger in which the Company is the continuing corporation and which does
not result in any reclassification of, or change (other than in par value, or
from par value to no par value, or from no par value to par value, or as a
result of a subdivision or combination) in, outstanding shares of Common Stock;
or (c) any sale or conveyance as an entirety or substantially as an entirety of
the property and assets of the Company, directly or indirectly, to any Person,
then the Company, or such successor, purchasing or transferee corporation, as
the case may be, shall, as a condition precedent to such reclassification,
change, combination, consolidation, merger, sale or conveyance, execute and
deliver to the Trustee a supplemental indenture providing that the Holder of
each 2011 Note then outstanding shall have the right to convert such 2011 Note
into the kind and amount of shares of stock and other securities and property
(including cash) receivable upon such reclassification, change, combination,
consolidation, merger, sale or conveyance by a holder of the number of shares of
Common Stock deliverable upon conversion

                                       26
<PAGE>

of such 2011 Note immediately prior to such reclassification, change,
combination, consolidation, merger, sale or conveyance. Such supplemental
indenture shall provide for adjustments of the Conversion Rate which shall be as
nearly equivalent as may be practicable to the adjustments of the Conversion
Rate provided for in this Article 14. If, in the case of any such consolidation,
merger, combination, sale or conveyance, the stock or other securities and
property (including cash) receivable thereupon by a holder of Common Stock
include shares of stock or other securities and property of a person other than
the successor, purchasing or transferee corporation, as the case may be, in such
consolidation, merger, combination, sale or conveyance, then such supplemental
indenture shall also be executed by such other person and shall contain such
additional provisions to protect the interests of the Holders of the 2011 Notes
as the Board of Directors shall reasonably consider necessary by reason of the
foregoing. The provisions of this Section 14.11 shall similarly apply to
successive reclassifications, changes, combinations, consolidations, mergers,
sales or conveyances.

         In the event the Company shall execute a supplemental indenture
pursuant to this Section 14.11, the Company shall promptly file with the Trustee
(x) an Officers' Certificate briefly stating the reasons therefor, the kind or
amount of shares of stock or other securities or property (including cash)
receivable by Holders of the 2011 Notes upon the conversion of their 2011 Notes
after any such reclassification, change, combination, consolidation, merger,
sale or conveyance, any adjustment to be made with respect thereto and that all
conditions precedent have been complied with and (y) an Opinion of Counsel that
all conditions precedent have been complied with, and shall promptly mail notice
thereof to all Holders.

         Section 14.12. Trustee's Disclaimer.

         The Trustee shall have no duty to determine when an adjustment under
this Article 14 should be made, how it should be made or what such adjustment
should be, but may accept as conclusive evidence of that fact or the correctness
of any such adjustment, and shall be protected in relying upon, an Officers'
Certificate including the Officers' Certificate with respect thereto which the
Company is obligated to file with the Trustee pursuant to Section 14.09. The
Trustee makes no representation as to the validity or value of any securities or
assets issued upon conversion of 2011 Notes, and the Trustee shall not be
responsible for the Company's failure to comply with any provisions of this
Article 14.

         The Trustee shall not be under any responsibility to determine the
correctness of any provisions contained in any supplemental indenture executed
pursuant to Section 14.11, but may accept as conclusive evidence of the
correctness thereof, and shall be fully protected in relying upon, the Officers'
Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 14.11.

         Section 14.13. Voluntary Increase.

         The Company from time to time may increase the Conversion Rate by any
amount for any period of time if the period is at least 20 days and if the
increase is irrevocable during the period if the Board of Directors determines
that such increase would be in the best interest of the Company or the Board of
Directors deems it advisable to avoid or diminish income tax to

                                       27
<PAGE>

holders of shares of our Common Stock in connection with any stock or rights
dividend or distribution or similar event, and the Company provides 15 days
prior notice of any increase in the Conversion Rate.

         Section 14.14. Company Determination Final.

         Any determination that the Company or the Board of Directors must make
pursuant to this Article 14 shall be conclusive if made in good faith and in
accordance with the provisions of this Article 14, absent manifest error, and
set forth in a resolution of the Board of Directors.

SECTION 216. REPURCHASE AT OPTION OF HOLDER; REPURCHASE UPON CHANGE IN CONTROL;
TAX EVENTS.

         The Indenture is amended by inserting the following new Article 15:

                                   ARTICLE XV

               REPURCHASE OF 2011 NOTES UPON A FUNDAMENTAL CHANGE

         Section 15.01. Repurchase of 2011 Notes at Option of the Holder Upon
Fundamental Change.

         (a) General. If prior to the Stated Maturity there shall have occurred
a Fundamental Change, 2011 Notes shall be repurchased by the Company at a price
(the "FUNDAMENTAL CHANGE REPURCHASE PRICE") equal to 100% of the Principal
Amount plus accrued and unpaid interest to, but excluding, the Fundamental
Change Repurchase Date (as defined below) on a date specified by the Company
that is not less than 25 days nor more than 35 days after the date of the
mailing of a Fundamental Change Company Notice pursuant to clause (b) of this
Section 15.01 (the "FUNDAMENTAL CHANGE REPURCHASE DATE"), at the option of the
Holder thereof, in accordance with the following procedures; provided that the
Company shall not be required to repurchase the 2011 Notes pursuant to this
Section 15.01 if the Sale Price per share of Common Stock for any five Trading
Days within the period of ten consecutive Trading Days ending immediately after
the later of the Fundamental Change and the public announcement of the
Fundamental Change equals or exceeds 110% of the Conversion Price of the 2011
Notes in effect on each of those five Trading Days.

         (b) Company Notice of Fundamental Change. Within 15 days after the
occurrence of a Fundamental Change, the Company shall, if Holders have the right
to require the Company to repurchase 2011 Notes hereunder, deliver a written
notice of Fundamental Change (the "FUNDAMENTAL CHANGE COMPANY NOTICE") by
first-class mail or by overnight courier to the Trustee and to each Holder (and
to beneficial owners as required by applicable law). The notice shall include a
form of Fundamental Change Repurchase Notice to be completed by the Holder of a
2011 Note and shall state:

                  (i) the events causing a Fundamental Change and the date of
         such Fundamental Change;

                                       28
<PAGE>

                  (ii) the date by which a Holder must deliver a Fundamental
         Change Repurchase Notice to elect the repurchase option pursuant to
         this Section 15.01;

                  (iii) the Fundamental Change Repurchase Date;

                  (iv) the Fundamental Change Repurchase Price;

                  (v) whether the Fundamental Change Repurchase Price will be
         paid in cash, shares of Common Stock or a combination thereof,
         specifying the percentages of each;

                  (vi) if shares of Common Stock will be used to pay all or part
         of the Fundamental Change Repurchase Price, state:

                           (a) the method for valuing the shares of Common
                  Stock to be delivered in connection with the repurchase; and

                           (b) that holders of the 2011 Notes will bear the
                  market risk with respect to the value of the shares of Common
                  Stock to be delivered from the date the number of shares is
                  determined;

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

                  (viii) the Conversion Rate applicable on the date of the
         Fundamental Change Company Notice;

                  (ix) that 2011 Notes as to which a Fundamental Change
         Repurchase Notice has been given may be converted pursuant to Article
         14 hereof only if the Fundamental Change Repurchase Notice has been
         withdrawn in accordance with the terms of this Indenture;

                  (x) that 2011 Notes must be surrendered to the Paying Agent
         for cancellation to collect payment;

                  (xi) that the Fundamental Change Repurchase Price for any 2011
         Note as to which a Fundamental Change Repurchase Notice has been duly
         given and not withdrawn will be paid promptly following the later of
         the Fundamental Change Repurchase Date and the time of surrender of
         such 2011 Note as described in clause (x) above;

                  (xii) the procedures the Holder must follow to exercise rights
         under this Section 15.01;

                  (xiii) the conversion rights of the 2011 Notes;

                                       29
<PAGE>

                  (xiv) the procedures for withdrawing a Fundamental Change
         Repurchase Notice;

                  (xv) that, unless the Company defaults in making payment of
         such Fundamental Change Repurchase Price, 2011 Notes covered by any
         Fundamental Change Repurchase Notice will cease to be outstanding and
         interest will cease to accrue on and after the Fundamental Change
         Repurchase Date; and

                  (xvi) the CUSIP number of the 2011 Notes.

         At the Company's request, the Trustee shall give such Fundamental
Change Company Notice in the Company's name and at the Company's expense;
provided that, in all cases, the text of such Fundamental Change Company Notice
shall be prepared by the Company. In connection with delivery of the Fundamental
Change Company Notice to the Holders, the Company shall publish a notice
containing substantially the same information that is required in the
Fundamental Change Company Notice in a newspaper published in the English
language, customarily published each Business Day and of general circulation in
The City of New York, or publish such information on the Company's website or
through such other public medium as the Company may use at such time.

         (c) Fundamental Change Repurchase Notice. Holders must deliver to the
Paying Agent:

                  (1) a written notice of repurchase (a "FUNDAMENTAL CHANGE
         REPURCHASE NOTICE"), substantially in the form of Exhibit A hereto, at
         any time from the opening of business on the date of the Fundamental
         Change Company Notice until the close of business on Business Day prior
         to the Fundamental Change Repurchase Date stating:

                           (A) the certificate number (if such 2011 Note
                  is held other than in global form) of the 2011 Note which the
                  Holder will deliver to be purchased;

                           (B) the portion of the Principal Amount of the
                  2011 Note which the Holder will deliver to be purchased,
                  which portion must be in a Principal Amount of $1,000 or
                  integral multiples thereof; and

                           (C) that such 2011 Note shall be purchased as
                  of the Fundamental Change Repurchase Date pursuant to the
                  terms and conditions specified in the 2011 Notes and in this
                  Indenture; and

                  (2) the 2011 Note (if such 2011 Note is held other than in
         global form) 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 that such Fundamental Change Repurchase Price
         shall be so paid pursuant to this Section 15.01 only if the 2011 Note
         so delivered to

                                       30
<PAGE>

         the Paying Agent shall conform in all respects to the description
         thereof in the related Fundamental Change Repurchase Notice.

         The Company shall purchase from the Holder thereof, pursuant to this
Section 15.01, a portion of a 2011 Note if the Principal Amount 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 repurchase of all of a 2011 Note
also apply to the repurchase of such portion of such 2011 Note.

         Any repurchase by the Company contemplated pursuant to the provisions
of this Section 15.01 shall be consummated by the delivery to the Paying Agent
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 2011
Note.

         Notwithstanding anything herein to the contrary, any Holder delivering
to the Paying Agent the Fundamental Change Repurchase Notice contemplated by
this Section 15.01(c) shall have the right to withdraw such Fundamental Change
Repurchase Notice at any time prior to the close of business on the Business Day
prior to the Fundamental Change Repurchase Date by delivery of a written notice
of withdrawal to the Paying Agent in accordance with Section 15.02.

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

         (d) Payment of Fundamental Change Repurchase Price. The 2011 Notes to
be repurchased pursuant to this Section 15.01 shall be paid for in cash;
provided that if a Fundamental Change occurs as a result of a Change of Control
Event, the 2011 Notes to be repurchased may be paid for, in whole or in part, at
the election of the Company, in cash or Common Stock or any combination of cash
and Common Stock, subject to the conditions set forth in clause (e) of this
Section 15.01.

         (e) Conditions for Election to Pay Fundamental Change Repurchase Price
in Common Stock. If the Company elects to pay all or any portion of the
Fundamental Change Repurchase Price in Common Stock, the number of shares of
Common Stock to be paid will equal the quotient obtained by dividing (i) the
portion of the Fundamental Change Repurchase Price to be paid in shares of
Common Stock by (ii) 97% of the average Closing Price of the shares of Common
Stock for the five Trading Day period ending on the second Business Day
immediately preceding the Fundamental Change Repurchase Date, appropriately
adjusted to take into account the occurrence, during the period commencing on
the first of the Trading Days during the five Trading Day period and ending on
the Fundamental Change Repurchase Date, of any event described in Section 13.06,
subject to the next succeeding paragraph. The Company shall designate, in the
Fundamental Change Company Notice delivered pursuant to clause (b) of Section
15.01, whether it will repurchase the 2011 Notes for cash or shares of Common
Stock, or, if a combination thereof, the percentages of the Fundamental Change
Repurchase Price of 2011 Notes in respect of which it will pay in cash or shares
of Common Stock; provided that the Company will pay cash for fractional
interests in shares of Common Stock. For purposes of determining the existence
of potential fractional interests, all 2011 Notes subject to repurchase by the
Company held by a Holder shall be considered together (no matter how many
separate

                                       31
<PAGE>

certificates are to be presented). Each holder whose 2011 Notes are repurchased
pursuant to this Section 15.01 shall receive the same percentage of cash or
shares of Common Stock in payment of the Fundamental Change Repurchase Price for
such 2011 Notes, except with regard to the payment of cash in lieu of fractional
shares of Common Stock. The Company may not change its election with respect to
the consideration (or components or percentages of components thereof) to be
paid once the Company has given its Fundamental Change Company Notice to holders
except as set forth in the next succeeding paragraph in the event of a failure
to satisfy, prior to the close of business on the Business Day prior to the
Fundamental Change Repurchase Date, any condition to the payment of the
Fundamental Change Repurchase Price, in whole or in part, in shares of Common
Stock.

         The Company shall, at least three Business Days prior to delivering the
Fundamental Change Company Notice, deliver an Officers' Certificate to the
Trustee specifying:

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

                  (ii) the information required by the Company Repurchase Notice
         pursuant to clause (b) of Section 15.01,

                  (iii) if the Company elects to pay the Fundamental Change
         Repurchase Price, or a specified percentage thereof, in shares of
         Common Stock, that the conditions to such manner of payment set forth
         in this clause (e) have been or will be complied with, and

                  (iv) whether the Company desires the Trustee to give the
         Fundamental Change Company Notice required by clause (b) of Section
         15.01.

         The Company's right to exercise its election to repurchase 2011 Notes
through the issuance of shares of Common Stock shall be conditioned upon:

                  (v) the Company's giving a timely Fundamental Change Company
         Notice containing an election to purchase all or a specified percentage
         of the 2011 Notes with shares of Common Stock as provided herein;

                  (vi) the registration of such shares of Common Stock under the
         2011 Notes Act and, if required, the Exchange Act;

                  (vii) the listing of such shares of Common Stock on a United
         States national securities exchange or the quotation of such shares of
         Common Stock in an inter-dealer quotation system of any registered
         United States national securities association, in each case, if the
         Common Stock is then listed on a national securities exchange or quoted
         in an inter-dealer quotation system;

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

                                       32
<PAGE>

                  (ix) the receipt by the Trustee of an (A) Officers'
         Certificate stating that the terms of the issuance of the shares of
         Common Stock are in conformity with this Indenture, (B) an Opinion of
         Counsel to the effect that the shares of Common Stock to be issued by
         the Company in payment of the Fundamental Change Repurchase Price in
         respect of the 2011 Notes 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 2011 Notes, will
         be validly issued, fully paid and non-assessable and (c) an Officer's
         Certificate, stating that the conditions to the issuance of the shares
         of Common Stock have 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 of 2011 Notes upon
their Stated Maturity and the Closing Price of a share of Common Stock on each
Trading Day during the period commencing on the fifth Trading Day immediately
preceding but ending on the third Business Day prior to the applicable
Fundamental Change Repurchase Date. If the foregoing conditions are not
satisfied prior to the close of business on the Business Day immediately
preceding the Fundamental Change Repurchase Date and the Company has elected to
repurchase the 2011 Notes through the issuance of shares of Common Stock, the
Company shall pay the entire Fundamental Change Repurchase Price of the 2011
Notes in cash.

         Promptly after determination of the actual number of shares of Common
Stock to be issued upon repurchase of 2011 Notes, the Company shall be required
to disseminate a press release through Dow Jones & Company, Inc. or Bloomberg
Business News containing this information or publish the information on the
Company's web site or through such other public medium as the Company may use at
that time.

         All shares of Common Stock delivered upon repurchase of the 2011 Notes
shall be duly authorized, validly issued, fully paid and non-assessable.

         If a holder of a repurchased 2011 Note is paid in shares of Common
Stock, the Company shall pay any documentary, stamp or similar issue or transfer
tax due on such issue of Common Stock. However, the holder shall pay any such
tax which is due because the holder requests the Common Stock to be issued in a
name other than the holder's name. The Trustee (or other paying agent appointed
by the Company) may refuse to deliver the certificates representing the shares
of Common Stock being issued in a name other than the holder's name until the
Trustee (or other paying agent appointed by the Company) receives a sum
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.

         (f) Procedure Upon Repurchase. The Company shall deposit cash or Common
Stock, if permitted hereunder, at the time and in the manner as provided in
Section 15.04, sufficient to pay the aggregate Fundamental Change Repurchase
Price of all 2011 Notes to be purchased pursuant to this Section 15.01.

         Section 15.02. Effect of Fundamental Change Repurchase Notice.

                                       33
<PAGE>

         Upon receipt by the Paying Agent of the Fundamental Change Repurchase
Notice specified in clause (b) of Section 15.01, the Holder of the 2011 Note in
respect of which such Fundamental Change Repurchase Notice was given shall
(unless such Fundamental Change Repurchase Notice is withdrawn as specified in
the following two paragraphs) thereafter be entitled to receive solely the
Fundamental Change Repurchase Price with respect to such 2011 Note. Such
Fundamental Change Repurchase Price shall be paid to such Holder, subject to
receipt of funds by the Paying Agent, promptly following the later of (x) the
Fundamental Change Repurchase Date with respect to such 2011 Note (provided the
conditions in clause (b) of Section 15.01 have been satisfied) and (y) the time
of delivery of such 2011 Note to the Paying Agent by the Holder thereof in the
manner required by clause (b) of Section 15.01. 2011 Notes in respect of which a
Fundamental Change Repurchase Notice has been given by the Holder thereof may
not be converted pursuant to Article 14 on or after the date of the delivery of
such Fundamental Change Repurchase Notice unless such Fundamental Change
Repurchase Notice has first been validly withdrawn as specified in the following
two paragraphs.

         A Fundamental Change Repurchase Notice may be withdrawn only by means
of a written notice of withdrawal delivered to the office of the Paying Agent in
accordance with the procedures set forth in the Fundamental Change Company
Notice at any time prior to the close of business on the Business Day prior to
the Fundamental Change Repurchase Date specifying:

                  (i) the Principal Amount of the 2011 Note with respect to
         which such notice of withdrawal is being submitted; and

                  (ii) the certificate number (if such 2011 Note is held in
         other than global form) of the 2011 Note in respect of which such
         notice of withdrawal is being submitted; and

                  (iii) the Principal Amount, if any, of such 2011 Note which
         remains subject to the original Fundamental Change Repurchase Notice
         and which has been or will be delivered for purchase or repurchase by
         the Company.

         There shall be no repurchase of any 2011 Notes pursuant to Section
15.01 if there has occurred (prior to, on or after, as the case may be, the
giving, by the Holders of such 2011 Notes, of the required Fundamental Change
Repurchase Notice) and is continuing an Event of Default (other than a default
in the payment of the Fundamental Change Repurchase Price with respect to such
2011 Notes). The Paying Agent will promptly return to the respective Holders
thereof any 2011 Notes (x) with respect to which a Fundamental Change Repurchase
Notice 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 Fundamental Change Repurchase Price with respect to such 2011
Notes) in which case, upon such return, the Fundamental Change Repurchase Notice
with respect thereto shall be deemed to have been withdrawn.

         Section 15.03. Deposit of Fundamental Change Repurchase Price.

                                       34
<PAGE>

         Prior to 10:00 a.m. (local time in The City of New York) on the
Business Day following the Fundamental Change Repurchase Date, as the case may
be, the Company shall deposit with the Trustee or with the Paying Agent (or, if
the Company or a Subsidiary or an Affiliate of either of them is acting as the
Paying Agent, shall segregate and hold in trust as provided herein) an amount of
money (in immediately available funds if deposited on such Business Day) or
Common Stock, if permitted hereunder, sufficient to pay the Fundamental Change
Repurchase Price of all the 2011 Notes or portions thereof which are to be
repurchased as of the Fundamental Change Repurchase Date. The Company shall
promptly notify the Trustee in writing of the amount of any deposits of cash or
Common Stock made pursuant to Section 15.03. If the Trustee or the Paying Agent
holds, in accordance with the terms hereof, money, and/or shares of Common Stock
sufficient to pay the Fundamental Change Repurchase Price of any 2011 Note for
which a Fundamental Change Repurchase Notice has been tendered and not withdrawn
in accordance with this Indenture then, on the Fundamental Change Repurchase
Date, such 2011 Note will cease to be Outstanding and the rights of the Holder
in respect thereof shall terminate (other than the right to receive the
Fundamental Change Repurchase Price as aforesaid).

         Section 15.04. 2011 Notes Repurchased in Whole or in Part.

         Any 2011 Note which is to be repurchased, whether in whole or in part,
shall be surrendered at the office of the Paying Agent (with, if the Company or
the Trustee so requires, due endorsement by, or a written instrument of transfer
in form satisfactory to the Company and the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing) and the Company
shall execute and the Trustee shall authenticate and deliver to the Holder of
such 2011 Note, without service charge, a new 2011 Note or 2011 Notes, of any
authorized denomination as requested by such Holder in aggregate Principal
Amount equal to, and in exchange for, the portion of the Principal Amount of the
2011 Note so surrendered which is not repurchased.

         Section 15.05. Covenant to Comply With Securities Laws Upon Repurchase
of 2011 Notes.

         In connection with any offer to repurchase 2011 Notes under Section
15.01 (provided that such offer 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
repurchase), the Company 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 Section 15.01 to be exercised in the time and in the manner specified in
Section 15.01.

         Section 15.06. Repayment to the Company.

         The Trustee and the Paying Agent shall return to the Company any cash
that remains unclaimed, together with interest or dividends, if any, thereon,
held by them for the payment of the Fundamental Change Repurchase Price;
provided that to the extent that the aggregate amount of cash or Common Stock
deposited by the Company pursuant to Section 15.03 exceeds the aggregate
Fundamental Change Repurchase Price of the 2011 Notes or portions thereof which

                                       35
<PAGE>

the Company is obligated to repurchase as of the Fundamental Change Repurchase
Date, then as soon as practicable following the Fundamental Change Repurchase
Date, the Trustee or the Paying Agent, as the case may be, shall return any such
excess to the Company.

                                  ARTICLE THREE

                            MISCELLANEOUS PROVISIONS

SECTION 301. INTEGRAL PART.

         This First Supplemental Indenture constitutes an integral part of the
Indenture.

SECTION 302. GENERAL DEFINITIONS.

         For all purposes of this First Supplemental Indenture:

                  (a) capitalized terms used herein without definition shall
         have the meanings specified in the Indenture; and

                  (b) the terms "herein", "hereof", "hereunder" and other words
         of similar import refer to this First Supplemental Indenture.

SECTION 303. ADOPTION, RATIFICATION AND CONFIRMATION.

         The Indenture, as supplemented and amended by this First Supplemental
Indenture, is in all respects hereby adopted, ratified and confirmed.

SECTION 304. COUNTERPARTS.

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

SECTION 305. GOVERNING LAW.

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

                                       36
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this First
Supplemental Indenture to be duly executed and their respective corporate seals
to be hereunto fixed and attested as of the day and year first written above.

                                  TRANSKARYOTIC THERAPIES, INC.

                                  By: /s/ Michael J. Astrue
                                      __________________________________________

                                  Name: Michael J. Astrue
                                        ________________________________________

                                  Title: President and CEO
                                         _______________________________________

                                  THE BANK OF NEW YORK

                                  By: /s/ Kisha A. Holder
                                      __________________________________________

                                  Name: Kisha A. Holder
                                        ________________________________________

                                  Title: Assistant Vice President
                                         _______________________________________

                                       37
<PAGE>

                                     ANNEX A

                                 GLOBAL SECURITY

                         1.25% SENIOR CONVERTIBLE NOTES
                                DUE MAY 15, 2011

                          TRANSKARYOTIC THERAPIES, INC.

Issue Date: ___________                               Maturity: May 15, 2011

Principal Amount: $___________                           CUSIP: __________

Registered: No.  ___

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

         Unless and until it is exchanged in whole or in part for the individual
2011 Notes represented hereby, this Global Security may not be transferred
except as a whole by the Depositary to a nominee of the Depositary or by a
nominee of the Depositary to the Depositary or another nominee of the Depositary
or by the Depositary or any such nominee to a successor Depositary or a nominee
of such successor Depositary.

         Transkaryotic Therapies, Inc., a Delaware corporation (herein called
the "COMPANY", which term includes any successor corporation under the indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of ________________________ United
States dollars ($_________) (which amount may from time to time be increased or
decreased to reflect redemptions, repurchases, conversions, transfers or
exchanges permitted under the terms of the Indenture, by adjustment made on the
records of the Trustee, as custodian for the Depositary, in accordance with the
rules and procedures of the Depositary) on May 15, 2011 at the office or agency
of the Company maintained for that purpose in accordance with the terms of the
Indenture, in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts, and to pay interest, semiannually on May 15 and November 15 (each, an
"INTEREST PAYMENT DATE") of each year, commencing November 15, 2004, on said
principal sum at said office or agency, in like coin or currency, at the rate
per annum of 1.25%, from and including May 4, 2004 or from the most recent
Interest Payment Date to which interest has been paid or duly provided for.

         Except as otherwise provided in the Indenture, the interest payable on
the Note pursuant to the Indenture on any May 15 or November 15 will be paid to
the Person entitled thereto as it appears in the Security Register at the close
of business on the Regular Record Date, which shall

                                       38
<PAGE>

be the May 1 and November 1 (whether or not a Business Day) next preceding such
May 15 or November 15; provided that any such interest not punctually paid or
duly provided for shall be payable as provided in the Indenture.

         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.

         The Company shall pay Interest (i) on any Security in certificated form
by check mailed to the address of the Person entitled thereto as it appears in
the Security Register (or upon written notice received from the registered
holder thereof prior to the relevant Regular Record Date, by wire transfer in
immediately available funds, if such Person is entitled to interest on Notes
with an aggregate principal amount in excess of $2,000,000) or (ii) on any
Global Security by wire transfer of immediately available funds to the account
of the Depositary or its nominee.

         Interest on the Notes shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.

         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.

                                       39
<PAGE>

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

Dated: ___________

                                            TRANSKARYOTIC THERAPIES, INC.

                                            By: ________________________________
                                                Name:
                                                Title:

________________________________________
Corporate Secretary

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the 2011 Notes of the series designated therein referred
to in the within-mentioned Indenture.

                                            The Bank of New York, as Trustee

                                            ____________________________________
                                            Authorized Signature

                                       40
<PAGE>

                       [FORM OF REVERSE SIDE OF SECURITY]

                          TRANSKARYOTIC THERAPIES, INC.

                   1.25% SENIOR CONVERTIBLE NOTE DUE MAY 2011

         This Security is one of a duly authorized issue of senior unsecured
securities of the Company (herein called the "SECURITIES"), issued and to be
issued in one or more series under an Indenture, dated as of May 4, 2004, as
amended by the First Supplemental Indenture thereto, dated as of May 4, 2004 (as
so amended, herein called the "INDENTURE"), between the Company 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 Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof, limited in an initial aggregate
principal amount at Stated Maturity to $100,000,000.

         The indebtedness evidenced by the Securities is unsecured and
unsubordinated senior indebtedness of the Company and ranks equally with the
Company's other unsecured and unsubordinated senior indebtedness.

METHOD OF PAYMENT

         Cash payments in respect of principal and interest on the Securities
shall be made by the Company in immediately available funds. Payments may be
made in stock in certain circumstances as set forth in the Indenture.

SINKING FUND

         No sinking fund is provided for the Securities.

REDEMPTION

         Provisional Redemption. At any time on or after May 20, 2007 and before
May 20, 2009, this Security may be redeemed for cash, in whole or in part, at
100% of the Principal Amount of the Securities (the "REDEMPTION PRICE"),
together with accrued and unpaid interest to, but excluding, the Redemption
Date, if the closing price of the Company's Common Stock is greater than 145% of
the Conversion Price then in effect for at least 20 Trading Days within a period
of 30 consecutive Trading Days ending on the Trading Day prior to the date of
notice of provisional redemption as described below under "Notice of Redemption
by the Company", provided, however, that the notice date is at least 20 days but
not more than 60 days prior to the Redemption Date.

         Optional Redemption. At any time on or after May 20, 2009, the
Securities may be redeemed for cash, in whole or in part, at the option of the
Company at the Redemption Price, together with accrued and unpaid interest to,
but excluding, the Redemption Date.

                                       41
<PAGE>

         If the Company redeems less than all of the outstanding Securities, the
Trustee will select the Securities to be redeemed (i) by lot; (ii) pro rata or
(iii) by another method the Trustee considers fair and appropriate. If the
Trustee selects a portion of a Holder's Securities for partial redemption and
the Holder converts a portion of the same Securities, the converted portion will
be deemed to be from the portion selected for redemption.

NOTICE OF REDEMPTION BY THE COMPANY

         Notice of redemption by the Company will be mailed by first-class mail
at least 30 days but not more than 60 days, in the case of Optional Redemption,
and at least 20 days but no more than 60 days, in the case of Provisional
Redemption, before the Redemption Date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than
$1,000 Principal Amount may be redeemed in part, but only in whole multiples of
$1,000. On and after the Redemption Date, subject to the deposit with the Paying
Agent of funds sufficient to pay the Redemption Price, interest ceases to accrue
on Securities or portions thereof called for redemption.

CONVERSION

         A Holder of a Security may convert the Security into Common Stock at
any time until the close of business on the Business Day prior to the Stated
Maturity; provided, however, that if the Security is called for redemption, the
conversion right will terminate at the close of business on the Business Day
immediately preceding the Redemption Date for such Security or such earlier date
as the Holder presents such Security for redemption (unless the Company shall
default in making the redemption payment when due, in which case the conversion
right shall terminate at the close of business on the date such default is cured
and such Security is redeemed). A Security in respect of which a Holder has
delivered a Repurchase Notice exercising the option of such Holder to require
the Company to purchase such Security may be converted only if such notice of
exercise is withdrawn in accordance with the terms of the Indenture. The initial
conversion rate is 54.0972 shares of Common Stock per $1,000 Principal Amount of
Securities at Stated Maturity, subject to adjustment in certain events described
in the Indenture. This is equal to an initial conversion price of $18.49 per
share of Common Stock. The Company will deliver cash or a check in lieu of any
fractional Common Stock.

         Except as provided in the following sentence, holders will not receive
any cash payment representing accrued and unpaid interest upon conversion of a
Security and accrued and unpaid interest will be deemed paid in full rather than
canceled, extinguished or forfeited. Notwithstanding the previous sentence, if a
Security shall be surrendered for conversion during the period from close of
business on any Regular Record Date for the payment of interest through the
close of business on the Business Day next preceding the following Interest
Payment Date, the Holder of such Security (or portion thereof being converted)
at the close of business on such Regular Record Date shall receive the interest
payable on the corresponding Interest Payment Date notwithstanding the
conversion. Such a Security must be accompanied by an amount, in funds
acceptable to the Company, equal to the interest payable on such Interest
Payment Date on the Principal Amount being converted; provided, however, that no
such payment shall be required if there shall exist at the time of conversion a
default in the payment of interest on the Securities.

                                       42
<PAGE>

         Except where Securities surrendered for conversion must be accompanied
by payment as described above, no interest on converted Securities will be
payable by the Company on any Interest Payment Date subsequent to the date of
conversion.

         A Holder may convert a portion of a Security if the Principal Amount 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.

         No fractional shares will be issued upon conversion; in lieu thereof,
an amount will be paid in cash based upon the closing price of the Common Stock
on the Trading Day immediately prior to the Conversion Date.

         To convert a Security, a Holder must (a) complete and manually sign the
conversion notice set forth below and deliver such notice to a Conversion Agent,
(b) surrender the Security to the Conversion Agent or, in the case of a Global
Security, deliver, or cause to be delivered, by book-entry delivery an interest
in such Security, (c) furnish appropriate endorsements and transfer documents if
required by a Registrar or a Conversion Agent, (d) in the case of a Global
Security, complete, or cause to be completed, the appropriate instruction form
for conversion pursuant to the Depositary's book-entry conversion program, (e)
pay any amount due in respect of interest, if required, and (f) pay any transfer
or similar tax, if required.

PURCHASE OF SECURITIES AT OPTION OF HOLDER UPON A FUNDAMENTAL CHANGE

         At the option of the Holder and subject to the terms and conditions of
the Indenture, if prior to the Stated Maturity there shall have occurred a
Fundamental Change, Securities shall be repurchased by the Company at the
Fundamental Change Repurchase Price, equal to 100% of the Principal Amount plus
accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase
Date, on a date specified by the Company that is not less than 25 days nor more
than 35 days after the date of the mailing of a Fundamental Change Company
Notice. The Fundamental Change Repurchase Price may be paid, at the option of
the Company, in cash or by the issuance of Common Stock as provided in the
Indenture, or in any combination thereof. The Holder shall have the right to
withdraw any Fundamental Change Repurchase Notice (in whole or in a portion
thereof that is $1,000 Principal Amount or an integral multiple of $1,000 in
excess thereof) at any time prior to the close of business on the Business Day
prior to the Fundamental Change Repurchase Date by delivering a written notice
of withdrawal to the Paying Agent in accordance with the terms of the Indenture.

CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION

         Any Securities called for redemption, or as to which a Fundamental
Change Repurchase Notice has been given but not withdrawn, unless surrendered
for conversion before the close of business on the Redemption Date, may be
deemed to be purchased from the Holders of such Securities at an amount not less
than the Redemption Price, by one or more investment bankers or other purchasers
who may agree with the Company to purchase such Securities from the Holders, to
convert them into Common Stock of the Company and to make payment for such
Securities to the Paying Agent in trust for such Holders.

                                       43
<PAGE>

TRANSFER

         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 or transfer at the
office or agency in a Place of Payment for Securities of this series, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more new
Securities of this series, of any authorized denominations and for the same
aggregate principal amount, executed by the Company and authenticated and
delivered by the Trustee, will be issued to the designated transferee or
transferees.

         The Securities of this series are issuable only in registered form
without coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations set forth therein
and on the face of this Security, Securities of this series are exchangeable for
a like aggregate principal amount of Securities of this series of a different
authorized denomination as requested by the Holder surrendering the same.

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

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

INCREASE OR DECREASE IN GLOBAL SECURITY

         In the event of a deposit or withdrawal of an interest in this
Security, including a redemption, repurchase, conversion, transfer or exchange
of this Security in part only, the Trustee, as custodian for 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.

AMENDMENT, SUPPLEMENT AND WAIVER

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

                                       44
<PAGE>

issued upon the registration of transfer hereof or in exchange hereof or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.

SUCCESSOR CORPORATION

         When a successor corporation assumes all the obligations of its
predecessor under the Securities and the Indenture in accordance with the terms
and conditions of the Indenture, the predecessor corporation will (except in
certain circumstances specified in the Indenture) be released from those
obligations.

DEFAULTS AND REMEDIES

         If an Event of Default with respect to any Security of this Series
shall occur and be continuing, then in accordance with Section 6.01 of the
Indenture, the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding 2011 Notes may declare 100% of the Principal Amount plus
accrued and unpaid interest, if any, to the acceleration date, of all of the
2011 Notes to be due and payable immediately by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon any such declaration
such specified amount shall become immediately due and payable.

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

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

NO RECOURSE AGAINST OTHERS

         No recourse shall be had for the payment of the principal of or the
interest, if any, on this Security, for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Indenture or any indenture
supplemental thereto, against any incorporator, shareholder, officer or
director, as such, past, present or future, of the Company or of any successor
corporation, whether by virtue of any constitution, statute or rule of law or by
the enforcement of any assessment of penalty or otherwise, all such liability
being, by acceptance hereof and as part of the consideration for the issue
hereof, expressly waived and released.

AUTHENTICATION

         This Security shall not be valid until the Trustee or an authenticating
agent manually signs the certificate of authentication on the other side of this
Security.

INDENTURE TO CONTROL; GOVERNING LAW

         In the case of any conflict between the provisions of this Security and
the Indenture, the provisions of the Indenture shall control.

                                       45
<PAGE>

THE INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

ABBREVIATIONS AND DEFINITIONS

         Customary abbreviations may be used in the name of the Holder or an
assignee, such as:

TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (=
Custodian) and U/G/M/A (= Uniform Gifts to Minors Act).

         All terms defined in the Indenture and used in this Security but not
specifically defined herein are defined in the Indenture and are used herein as
so defined.

CONVERSION NOTICE

         To convert this Security into Common Stock of the Company, check the
box: [ ]

         To convert only part of this Security, state the Principal Amount to be
converted (must be $1,000 or a 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 soc. sec. or tax I.D. no.)

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

Your Signature: _____________________________ Date: ____________________________

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

*Signature guaranteed by: ______________________________________________________

By: ______________________________

*The signature must be guaranteed by an institution which is a member of one of
the following recognized signature guaranty programs: (i) the Securities
Transfer Agent Medallion Program (STAMP); (ii) the New York Stock Exchange
Medallion Program (MSP); (iii) the Stock Exchange Medallion Program (SEMP); or
(iv) such other guaranty program acceptable to the Trustee.

                                       46
<PAGE>

                                    EXHIBIT A

                  Form of Fundamental Change Repurchase Notice

The Bank of New York
101 Barclay Street, Floor 8 West
New York, NY 10286
Attention: Corporate Trust Administration

                 Transkaryotic Therapies, Inc., (the "COMPANY")
                    1.25% Senior Convertible Notes Due 2011

         This is a Fundamental Change Repurchase Notice as defined in Section
15.01 of the Indenture dated as of May 4, 2004 (the "INDENTURE"), between the
Company and The Bank of New York, as trustee (the "TRUSTEE"), as supplemented by
the First Supplemental Indenture dated as of May 4, 2004 between the Company and
the 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 of
Securities for repurchase by the Company pursuant to Section 15.01 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.

Signed:

_____________________________

                                       47

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