Document:

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                                                                     EXHIBIT 4.9

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                             BRE PROPERTIES, INC.

                                      TO

                         [--------------------------]

                                    TRUSTEE

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

                                   INDENTURE

                        DATED AS OF __________________

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

                         SUBORDINATED DEBT SECURITIES

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                               TABLE OF CONTENTS

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

ARTICLE ONE. DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION.........................   1

SECTION 101. DEFINITIONS.....................................................................   1

SECTION 102. COMPLIANCE CERTIFICATES AND OPINIONS............................................  10

SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE..........................................  10

SECTION 104. ACTS OF HOLDERS.................................................................  11

SECTION 105. NOTICES, ETC., TO TRUSTEE AND COMPANY...........................................  12

SECTION 106. NOTICE TO HOLDERS; WAIVER.......................................................  12

SECTION 107. EFFECT OF HEADINGS AND TABLE OF CONTENTS........................................  13

SECTION 108. SUCCESSORS AND ASSIGNS..........................................................  13

SECTION 109. SEPARABILITY CLAUSE.............................................................  14

SECTION 110. BENEFITS OF INDENTURE...........................................................  14

SECTION 111. GOVERNING LAW...................................................................  14

SECTION 112. LEGAL HOLIDAYS..................................................................  14

ARTICLE TWO. SECURITIES FORMS................................................................  14

SECTION 201. FORMS OF DEBT SECURITIES........................................................  14

SECTION 202. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.................................  15

SECTION 203. DEBT SECURITIES ISSUABLE IN GLOBAL FORM.........................................  15

ARTICLE THREE. THE SECURITIES................................................................  16

SECTION 301. AMOUNT UNLIMITED; ISSUABLE IN SERIES............................................  16

SECTION 302. DENOMINATIONS...................................................................  19

SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING..................................  19

SECTION 304. TEMPORARY DEBT SECURITIES.......................................................  21
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SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.....................................   23

SECTION 306. MUTILATED, DESTROYED, LOST AND STOLEN DEBT SECURITIES...................................   25

SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED..........................................   26

SECTION 308. PERSONS DEEMED OWNERS...................................................................   28

SECTION 309. CANCELLATION............................................................................   29

SECTION 310. COMPUTATION OF INTEREST.................................................................   29

ARTICLE FOUR. SATISFACTION AND DISCHARGE.............................................................   29

SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE.................................................   29

SECTION 402. APPLICATION OF TRUST FUNDS..............................................................   30

ARTICLE FIVE. REMEDIES...............................................................................   31

SECTION 501. EVENTS OF DEFAULT.......................................................................   31

SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT......................................   32

SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.........................   33

SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM........................................................   34

SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT  SECURITIES OR COUPONS............   34

SECTION 506. APPLICATION OF MONEY COLLECTED..........................................................   35

SECTION 507. LIMITATION ON SUITS.....................................................................   35

SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM, IF ANY,
              INTEREST AND ADDITIONAL AMOUNTS........................................................   36

SECTION 509. RESTORATION OF RIGHTS AND REMEDIES......................................................   36

SECTION 510. RIGHTS AND REMEDIES CUMULATIVE..........................................................   36

SECTION 511. DELAY OR OMISSION NOT WAIVER............................................................   36

SECTION 512. CONTROL BY HOLDERS OF DEBT SECURITIES...................................................   36

SECTION 513. WAIVER OF PAST DEFAULTS.................................................................   37

SECTION 514. WAIVER OF USURY, STAY OR EXTENSION LAWS.................................................   37
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SECTION 515. UNDERTAKING FOR COSTS....................................................................  37

ARTICLE SIX. THE TRUSTEE..............................................................................  38

SECTION 601. NOTICE OF DEFAULTS.......................................................................  38

SECTION 602. CERTAIN RIGHTS OF TRUSTEE................................................................  38

SECTION 603. NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF DEBT SECURITIES..............................  39

SECTION 604. MAY HOLD DEBT SECURITIES.................................................................  39

SECTION 605. MONEY HELD IN TRUST......................................................................  39

SECTION 606. COMPENSATION AND REIMBURSEMENT...........................................................  40

SECTION 607. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING INTERESTS...........................  40

SECTION 608. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR........................................  40

SECTION 609. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR...................................................  42

SECTION 610. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS..............................  43

SECTION 611. APPOINTMENT OF AUTHENTICATING AGENT......................................................  43

ARTICLE SEVEN. HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY......................................  44

SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS.............................................  44

SECTION 702. REPORTS BY TRUSTEE.......................................................................  44

SECTION 703. REPORTS BY COMPANY.......................................................................  45

SECTION 704. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS................................  45

ARTICLE EIGHT. CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE.......................................  45

SECTION 801. CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES, LEASES AND CONVEYANCES PERMITTED
              SUBJECT TO CERTAIN CONDITIONS...........................................................  45

SECTION 802. RIGHTS AND DUTIES OF SUCCESSOR CORPORATION...............................................  46

SECTION 803. OFFICERS' CERTIFICATE AND OPINION OF COUNSEL.............................................  46
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ARTICLE NINE. SUPPLEMENTAL INDENTURES................................................................  47

SECTION 901. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS......................................  47

SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.........................................  48

SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES....................................................  49

SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES.......................................................  49

SECTION 905. CONFORMITY WITH TRUST INDENTURE ACT.....................................................  49

SECTION 906. REFERENCE IN DEBT SECURITIES TO SUPPLEMENTAL INDENTURES.................................  49

ARTICLE TEN. COVENANTS...............................................................................  49

SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, INTEREST AND ADDITIONAL AMOUNTS.................  49

SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY........................................................  50

SECTION 1003. MONEY FOR DEBT SECURITIES PAYMENTS TO BE HELD IN TRUST.................................  51

SECTION 1004. EXISTENCE..............................................................................  52

SECTION 1005. MAINTENANCE OF PROPERTIES..............................................................  52

SECTION 1006. INSURANCE..............................................................................  53

SECTION 1007. PAYMENT OF TAXES AND OTHER CLAIMS......................................................  53

SECTION 1008. PROVISION OF FINANCIAL INFORMATION.....................................................  53

SECTION 1009. WAIVER OF CERTAIN COVENANTS............................................................  53

SECTION 1010. STATEMENT AS TO COMPLIANCE.............................................................  54

SECTION 1011. ADDITIONAL AMOUNTS.....................................................................  54

ARTICLE ELEVEN. REDEMPTION OF SECURITIES.............................................................  55

SECTION 1101. APPLICABILITY OF ARTICLE...............................................................  55

SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE..................................................  55

SECTION 1103. SELECTION BY TRUSTEE OF DEBT SECURITIES TO BE REDEEMED.................................  55

SECTION 1104. NOTICE OF REDEMPTION...................................................................  55

SECTION 1105. DEPOSIT OF REDEMPTION PRICE............................................................  57
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SECTION 1106. DEBT SECURITIES PAYABLE ON REDEMPTION DATE................................................  57

SECTION 1107. DEBT SECURITIES REDEEMED IN PART..........................................................  58

SECTION 1108. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION.............................................  58

ARTICLE TWELVE. SINKING FUNDS...........................................................................  59

SECTION 1201. APPLICABILITY OF ARTICLE..................................................................  59

SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH DEBT SECURITIES................................  59

SECTION 1203. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND............................................  59

ARTICLE THIRTEEN. REPAYMENT AT THE OPTION OF HOLDERS....................................................  60

SECTION 1301. APPLICABILITY OF ARTICLE..................................................................  60

ARTICLE FOURTEEN. DEFEASANCE AND COVENANT DEFEASANCE....................................................  60

SECTION 1401. APPLICABILITY OF ARTICLE; COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE....  60

SECTION 1402. DEFEASANCE AND DISCHARGE..................................................................  60

SECTION 1403. COVENANT DEFEASANCE.......................................................................  61

SECTION 1404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE...........................................  61

SECTION 1405. DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD IN TRUST; OTHER MISCELLANEOUS
               PROVISIONS...............................................................................  63

SECTION 1406. REINSTATEMENT.............................................................................  64

ARTICLE FIFTEEN. MEETINGS OF HOLDERS OF SECURITIES......................................................  64

SECTION 1501. PURPOSES FOR WHICH MEETINGS MAY BE CALLED.................................................  64

SECTION 1502. CALL, NOTICE AND PLACE OF MEETINGS........................................................  64

SECTION 1503. PERSONS ENTITLED TO VOTE AT MEETINGS......................................................  65

SECTION 1504. QUORUM; ACTION............................................................................  65

SECTION 1505. DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF MEETINGS.......................  66
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SECTION 1506. COUNTING VOTES AND RECORDING ACTION OF MEETINGS...........................................  66

ARTICLE SIXTEEN. SUBORDINATION OF SECURITIES............................................................  67

SECTION 1601. DEBT SECURITIES SUBORDINATED TO SENIOR INDEBTEDNESS.......................................  67

SECTION 1602. SUBROGATION...............................................................................  68

SECTION 1603. OBLIGATIONS OF THE COMPANY UNCONDITIONAL..................................................  68

SECTION 1604. PAYMENTS ON DEBT SECURITIES PERMITTED.....................................................  69

SECTION 1605. EFFECTUATION OF SUBORDINATION BY TRUSTEE..................................................  69

SECTION 1606. KNOWLEDGE OF TRUSTEE......................................................................  69

SECTION 1607. TRUSTEE MAY HOLD SENIOR INDEBTEDNESS......................................................  69

SECTION 1608. RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS NOT IMPAIRED.....................................  69
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TESTIMONIUM

SIGNATURES AND SEALS

EXHIBIT A-1 - FORMS OF CERTIFICATION

EXHIBIT A-2 - FORMS OF CERTIFICATION

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                             BRE PROPERTIES, INC.

     Reconciliation and tie between Trust Indenture Act of 1939 (the "1939 Act")
and Indenture, dated as of _________________.

     1939 ACT SECTION

     Section 310(a)(1)...................................................607
     (a)(2)..............................................................607
     (b).......................................................604, 607, 608
     Section 312(b)......................................................701
     (c).................................................................701
     Section 313.........................................101 ("Outstanding")
     (a).................................................................702
     (c).......................................................601, 702, 703
     Section 314(a)................................................703, 1012
     (a)(4)..............................................................102
     (c)(1)..............................................................102
     (c)(2)..............................................................102
     (e).................................................................102
     Section 315(a)-(d).............................................303, 602
     (e).................................................................515
     Section 316(a) (last sentence)......................101 ("Outstanding")
     (c).................................................................104
     Section 317(a)(1)...................................................503
     (a)(2)..............................................................504
     Section 318(a)......................................................111
     (c).................................................................111

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

     Attention should also be directed to Section 318(c) of the 1939 Act, which
provides that the provisions of Sections 310 to and including 317 of the 1939
Act are a part of and govern every qualified indenture, whether or not
physically contained therein.

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         INDENTURE, dated as of _________________, between BRE PROPERTIES, INC.,
a Maryland corporation (hereinafter called the "COMPANY"), having its principal
office at One Montgomery Street, Telesis Tower, Suite 2500, San Francisco,
California 94104-5525, and [___________________], a corporation duly organized
and existing under the laws of the State of ______________, as Trustee hereunder
(hereinafter called the "TRUSTEE"), having its Corporate Trust Office at
[______________________________].

                             RECITALS OF THE COMPANY

         The Company deems it necessary to issue from time to time for its
lawful purposes subordinated debt securities (hereinafter called the "Debt
Securities") evidencing its unsecured and subordinated indebtedness, and has
duly authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Debt Securities, unlimited as to principal
amount, to bear interest at the rates or formulas, to mature at such times and
to have such other provisions as shall be fixed as hereinafter provided. This
Indenture is subject to the provisions of the Trust Indenture Act of 1939, as
amended, that are deemed to be incorporated into this Indenture and shall, to
the extent applicable, be governed by such provisions. All things necessary to
make this Indenture a valid agreement of the Company, in accordance with its
terms, have been done.

         NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                  ARTICLE ONE
             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     SECTION 101. DEFINITIONS.  For all purposes of this Indenture, except as
otherwise expressly provided or unless the context otherwise requires:

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

     (2)  all other terms used herein which are defined in the TIA, either
directly or by reference therein, have the meanings assigned to them therein,
and the terms "cash transaction" and "self-liquidating paper," as used in TIA
Section 311, shall have the meanings assigned to them in the rules of the
Commission adopted under the TIA;

     (3)  all accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP; and

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

         Certain terms used principally in Article Three, Article Five, Article
Six and Article Ten are defined in those Articles.

         "Acquired Debt" means Debt of a Person (i) existing at the time such
Person is merged or consolidated with or into, or becomes a Subsidiary of, the
Company or (ii) assumed by the Company or any of its Subsidiaries in connection
with the acquisition of assets from such Person. Acquired Debt shall

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be deemed to be incurred on the date the acquired Person is merged or
consolidated with or into, or becomes a Subsidiary of, the Company or the date
of the related acquisition, as the case may be.

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

         "Additional Amounts" means any additional amounts which are required by
a Debt Security or by or pursuant to a Board Resolution, under circumstances
specified therein, to be paid by the Company in respect of certain taxes imposed
on certain Holders and which are owing to such Holders.

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

         "Annual Debt Service Charge" means, for any period, the interest
expense of the Company and its Subsidiaries for such period (including, without
duplication, (i) all amortization of debt discount, (ii) all accrued interest,
(iii) all capitalized interest and (iv) the interest component of capitalized
lease obligations), determined on a consolidated basis in accordance with
generally accepted accounting principles.

         "Authenticating Agent" means any authenticating agent appointed by the
Trustee pursuant to Section 611.

         "Authorized Newspaper" means a newspaper, printed in the English
language or in an official language of the country of publication, customarily
published on each Business Day, whether or not published on Saturdays, Sundays
or holidays, and of general circulation in each place in connection with which
the term is used or in the financial community of each such place. Whenever
successive publications are required to be made in Authorized Newspapers, the
successive publications may be made in the same or in different Authorized
Newspapers in the same city meeting the foregoing requirements and in each case
on any Business Day.

         "Bankruptcy Law" has the meaning specified in Section 501.

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

         "Board of Directors" means the board of directors of the Company or any
committee of that board duly authorized to act generally or in any particular
respect for the Company hereunder.

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

         "Business Day" when used with respect to any Place of Payment or any
other particular location referred to in this Indenture or in the Debt
Securities, means, unless otherwise specified with respect to any securities
pursuant to Section 301, any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which banking institutions in that Place of
Payment or particular location are authorized or required by law, regulation or
executive order to close.

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         "CEDEL" means Centrale de Livraison de Valeurs Mobilieres, S.A., or its
successor.

         "Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Securities Exchange Act of 1934, as
amended, or, if at any time after execution of this instrument such Commission
is not existing and performing the duties now assigned to it under the Trust
Indenture Act, then the body performing such duties on such date.

         "Common Depository" has the meaning set forth in Section 304.

         "Common Shares" means, with respect to any Person, capital stock issued
by such Person other than Preferred Shares.

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

         "Company Request" and "Company Order" mean, respectively, a written
request or order signed in the name of the Company by the Chairman, any Vice
Chairman, the President or a Vice President, and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary, of the Company, and
delivered to the Trustee.

         "Consolidated Income Available For Debt Service" for any period means
Consolidated Net Income of the Company and its Subsidiaries for such period,
plus amounts which have been deducted and minus amounts which have been added
for (without duplication) (i) interest expense on Debt, (ii) provision for taxes
based on income, (iii) amortization of debt discount and deferred financing
costs, (iv) provisions for gains and losses on sales or other dispositions of
properties and other investments, (v) property depreciation and amortization,
(vi) the effect of any non-cash items resulting from a change in accounting
principles in determining Consolidated Net Income, and (vii) amortization of
deferred charges, all determined on a consolidated basis in accordance with
generally accepted accounting principles.

         "Consolidated Net Income" for any period means the amount of net income
(or loss) of the Company and its Subsidiaries for such period, excluding
(without duplication) (i) extraordinary items and (ii) the portion of net income
(but not losses) of the Company and its Subsidiaries allocable to minority
interests in unconsolidated Persons to the extent that cash dividends or
distributions have not actually been received by the Company or one of its
Subsidiaries, all determined on a consolidated basis in accordance with
generally accepted accounting principles.

         "Conversion Event" means the cessation of use of (i) a Foreign Currency
both by the government of the country which issued such currency and for the
settlement of transactions by a central bank or other public institutions of or
within the international banking community (ii) the ECU both within the European
Monetary System and for the settlement of transactions by public institutions of
or within the European Communities or (iii) any currency unit (or composite
currency) other than the ECU for the purposes for which it was established.

         "Corporate Trust Office" means the office of the Trustee at which, at
any particular time, its corporate trust business shall be principally
administered, which office at the date hereof is located at

         "Corporation" or "corporation" includes corporations, associations,
companies and business trusts; provided, however, that for purposes of the
definition of the term "Company" in this Section 101

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and for purposes of Article Eight, the term "corporation" shall not include
associations, companies or business trusts.

         "Coupon" or "coupon" means any interest coupon appertaining to a Bearer
security.

         "Custodian" has the meaning specified in section 501.

         "Debt" means, with respect to any Person, any indebtedness of such
Person, whether or not contingent, in respect of (i) borrowed money or evidenced
by bonds, notes, debentures or similar instruments, (ii) indebtedness secured by
any Lien on any property or asset owned by such Person, but only to the extent
of the lesser of (x) the amount of indebtedness so secured and (y) the fair
market value (determined in good faith by the board of directors of such Person
or, in the case of the Company or a Subsidiary, by the Company's Board of
Directors) of the property subject to such Lien, (iii) reimbursement
obligations, contingent or otherwise, in connection with any letters of credit
actually issued or amounts representing the balance deferred and unpaid of the
purchase price of any property except any such balance that constitutes an
accrued expense or trade payable or (iv) any lease of property by such Person as
lessee which is required to be reflected on such Person's balance sheet as a
capitalized lease in accordance with GAAP, and also includes, to the extent not
otherwise included, any obligation of such Person to be liable for, or to pay,
as obligor, guarantor or otherwise (other than for purposes of collection in the
ordinary course of business), Debt of the types referred to above of another
Person (it being understood that Debt shall be deemed to be incurred by such
Person whenever such Person shall create, assume, guarantee or otherwise become
liable in respect thereof).

         "Debt Security" has the meaning stated in the first recital of this
Indenture and, more particularly, means any Debt Security or Debt Securities
authenticated and delivered under this Indenture; provided, however, that, if at
any time there is more than one Person acting as Trustee under this Indenture,
"Debt Securities" with respect to the Indenture as to which such Person is
Trustee shall have the meaning stated in the first recital of this Indenture and
shall more particularly mean Debt Securities authenticated and delivered under
this Indenture, exclusive, however, of Debt Securities of any series as to which
such Person is not Trustee.

         "Debt Security Register" and "Debt Security Registrar" have the same
meanings as the terms "Security Register" and "Security Registrar,"
respectively.

         "Defaulted Interest" has the meaning set forth in Section 307.

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

         "DTC" means The Depository Trust Company and any successor to DTC in
its capacity as depository for any Debt Securities.

         "ECU" means the European Currency Unit as defined and revised from time
to time by the Council of the European communities.

         "Euroclear" means Morgan Guaranty Trust Company of New York, Brussels
Office, or its successor as operator of the Euroclear System.

         "European Communities" means the European Economic community, the
European Coal and Steel Community and the European Atomic Energy Community.

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         "European Monetary System" means the European Monetary system
established by the Resolution of December 5, 1978 of the Council of the European
Communities.

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

         "Exchange Date" has the meaning set forth in Section 304.

         "Executive Group" means, collectively, those individuals holding the
offices of Chairman, Vice Chairman, President, Chief Executive Officer, Chief
Operating Officer or any Vice President of the Company.

         "Foreign Currency" means any currency, currency unit or composite
currency, including, without limitation, the ECU, issued by the government of
one or more countries other than the United States of America or by any
recognized confederation or association of such governments.

         "GAAP" and "generally accepted accounting principles" mean generally
accepted accounting principles, as in effect from time to time, as used in the
United States of America applied on a consistent basis.

         "Government Obligations" means securities which are (i) direct
obligations of the United States of America or the government which issued the
Foreign Currency in which the Debt Securities of a particular series are
payable, 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 or such government which issued
the Foreign Currency in which the Debt Securities of such series are payable,
the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America or such other government, which, in
either case, are not callable or redeemable at the option of the issuer thereof,
and shall also include a depository receipt issued by a bank or trust company as
custodian with respect to any such Government Obligation or a specific payment
of interest on or principal of any such Government Obligation held by such
custodian for the account of the holder of a depository receipt, provided that
(except as required by law) such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the Government Obligation or
the specific payment of interest on or principal of the Government Obligation
evidenced by such depository receipt.

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

         "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 pursuant to the applicable provisions hereof,
and shall include the terms and provisions of any series of Debt Securities and
any coupons appertaining thereto established pursuant to Section 301 (as such
terms and provisions may be amended pursuant to the applicable provisions
hereof).

         "Indexed Debt Security" means a Debt Security the terms of which
provide that the principal amount thereof payable at Stated Maturity may be more
or less than the principal face amount thereof at original issuance.

         "Interest" when used with respect to an Original Issue Discount Debt
Security which by its terms bears interest only after Maturity, shall mean
interest payable after Maturity, and, when used with respect

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to a Debt Security which provides for the payment of Additional Amounts pursuant
to Section 1015, includes such Additional Amounts.

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

         "Lien" means any mortgage, deed of trust, lien, charge, pledge,
security interest, security agreement or other encumbrance of any kind.

         "Maturity" when used with respect to any Debt Security, means the date
on which the principal of such Debt Security or an installment of principal
becomes due and payable as therein or herein provided, whether at the Stated
Maturity or by declaration of acceleration, notice of redemption, notice of
option to elect repayment or otherwise.

         "Officers' Certificate" means a certificate signed by the Chairman, any
Vice Chairman, the President or a Vice President and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.

         "Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company or who may be an employee of or other counsel for the
Company and who shall be reasonably satisfactory to the Trustee.

         "Original Issue Discount Debt Security" means any Debt Security which
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 502.

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

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

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

         (iii)  Debt Securities, except to the extent provided in Sections 1402
and 1403, with respect to which the Company has effected defeasance and/or
covenant defeasance as provided in Article Fourteen;

         (iv)   Debt Securities which have been paid pursuant to Section 306 or
in exchange for or in lieu of which other Debt Securities have been
authenticated and delivered pursuant to this Indenture, other than any such Debt
Securities in respect of which there shall have been presented to the Trustee
proof satisfactory to it that such Debt Securities are held by a bona fide
purchaser in whose hands such Debt Securities are valid obligations of the
Company; and

                                       6
<PAGE>

         (v)    Debt Securities converted into Common Shares or Preferred Shares
pursuant to or in accordance with this Indenture if the terms of such Debt
Securities provide for convertibility pursuant to Section 301;

         Provided, however, that in determining whether the Holders of the
requisite principal amount of the Outstanding Debt Securities have given any
request, demand, authorization, direction, notice, consent or waiver hereunder
or are present at a meeting of Holders for quorum purposes, and for the purpose
of making the calculations required by TIA Section 313, (i) the principal amount
of an Original Issue Discount Debt Security that may be counted in making such
determination or calculation and that shall be deemed to be Outstanding for such
purpose shall be equal to the amount of principal thereof that would be (or
shall have been declared to be) due and payable, at the time of such
determination, upon a declaration of acceleration of the maturity thereof
pursuant to Section 502, (ii) the principal amount of any Debt Security
denominated in a Foreign Currency that may be counted in making such
determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the Dollar equivalent, determined pursuant to Section
301 as of the date such Debt Security is originally issued by the Company, of
the principal amount (or, in the case of an Original Issue Discount Debt
Security, the Dollar equivalent as of such date of original issuance of the
amount determined as provided in clause (i) above) of such Debt Security, (iii)
the principal amount of any Indexed Debt Security that may be counted in making
such determination or calculation and that shall be deemed Outstanding for such
purpose shall be equal to the principal face amount of such Indexed Debt
Security at original issuance, unless otherwise provided with respect to such
Debt Security pursuant to Section 301, and (iv) Debt Securities owned by the
Company or any other obligor upon the Debt Securities or any Affiliate of the
Company or of such other obligor shall be disregarded and deemed not to be
Outstanding, except that, in determining whether the Trustee shall be protected
in making such calculation or in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Debt Securities which
the Trustee knows to be so owned shall be so disregarded. Debt Securities so
owned which have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Trustee the pledgee's right
so to act with respect to such Debt Securities and that the pledgee is not the
Company or any other obligor upon the Debt Securities or any Affiliate of the
Company or of such other obligor.

         "Paying Agent" means any Person authorized by the Company to pay the
principal of (and premium, if any) or interest on any Debt Securities or coupons
on behalf of the Company.

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

         "Place of Payment" when used with respect to the Debt Securities of or
within any series, means the place or places where the principal of (and
premium, if any) and interest on such Debt Securities are payable as specified
as contemplated by Sections 301 and 1002.

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

                                       7
<PAGE>

         "Preferred Shares" means, with respect to any Person, capital stock
issued by such Person that is entitled to a preference or priority over any
other capital stock issued by such Person upon any distribution of such Person's
assets, whether by dividend or upon liquidation.

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

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

         "Registered Debt Security" shall mean any Debt Security which is
registered in the Security Register.

         "Regular Record Date" for the interest payable on any Interest Payment
Date on the Registered Debt Securities of or within any series means the date
specified for that purpose as contemplated by Section 301, whether or not a
Business Day.

         "Repayment Date" means, when used with respect to any Debt Security to
be repaid at the option of the Holder, the date fixed for such repayment by or
pursuant to this Indenture.

         "Repayment Price" means, when used with respect to any Debt Security to
be repaid at the option of the Holder, the price at which it is to be repaid by
or pursuant to this Indenture.

         "Responsible Officer" when used with respect to the Trustee, means the
chairman or vice-chairman of the board of directors, the chairman or vice-
chairman of the executive committee of the board of directors, the president,
any vice president, the secretary, any assistant secretary, the treasurer, any
assistant treasurer, the cashier, any assistant cashier, any trust officer or
assistant trust officer, the controller or any other officer of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers.

         "Securities Exchange Act of 1934" means the Securities Exchange Act of
1934, as amended, and any reference herein to such Act or a particular provision
or section thereof shall mean, unless otherwise expressly stated or the context
otherwise requires, such Act, provision or section, as the case may be, as
amended or replaced from time to time or as supplemented from time to time.

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

         "Senior Indebtedness" means (i) the principal of and premium, if any,
and unpaid interest, if any, on indebtedness for money borrowed or evidenced by
a bond, note, debenture or similar instrument, (ii) purchase money and similar
obligations, (iii) obligations under capital leases, (iv) guarantees,
assumptions or purchase commitments relating to, or other transactions as a
result of which the Company is responsible for the payment of, indebtedness and
obligations of others of the types referred to in clauses (i) through (iii)
above, (v) renewals, extensions and refunding of any such indebtedness or
obligations, (vi) interest in respect of any such indebtedness or obligations
accruing after the commencement of any insolvency or bankruptcy proceedings and
(vii) obligations associated with derivative products such as interest rate and
currency exchange contracts, foreign exchange contracts, commodity contracts,
and similar arrangements, unless, in each case, the instrument by which the
Company incurred, assumed or guaranteed the indebtedness or obligations
described in clauses (i) through (vii) expressly provides that such indebtedness
or obligation is subordinate or junior in right of payment to all other
indebtedness of

                                       8
<PAGE>

the Company or is not senior in right of payment to the Subordinated Debt
Securities or ranks pari passu with or subordinate to the Subordinated Debt
Securities in right of payment.

         "Significant Subsidiary" means any Subsidiary which is a "significant
subsidiary" (as defined in Rule 1-02 of Regulation S-X promulgated under the
Securities Act of 1933, as in effect on January 1, 1996) of the Company.

         "Special Record Date" for the payment of any Defaulted Interest on the
Registered Debt Securities of or within any series means a date fixed by the
Trustee pursuant to Section 307.

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

         "Subsidiary" means (i) a corporation, partnership, joint venture,
limited liability company or other Person the majority of the shares, if any, of
the non-voting capital stock or other equivalent ownership interests of which
(except directors' qualifying shares) are at the time directly or indirectly
owned by the Company and/or any other Subsidiary or Subsidiaries, and the
majority of the shares of the voting capital stock or other equivalent ownership
interests of which (except directors' qualifying shares) are at the time
directly or indirectly owned by the Company, any other Subsidiary or
Subsidiaries, and/or one or more individuals of the Executive Group (or, in the
event of death or disability of any of such individuals, his/her respective
legal representative(s), or such individuals' successors in office as an officer
of the Company), and (ii) any Person the accounts of which are consolidated with
the accounts of the Company.

         "Total Assets" means the sum of (without duplication) (i) Undepreciated
Real Estate Assets and (ii) all other assets (excluding accounts receivable and
intangibles) of the Company and its Subsidiaries, all determined on a
consolidated basis in accordance with generally accepted accounting principles.

         "Total Unencumbered Assets" means the sum of (without duplication) (i)
those Undepreciated Real Estate Assets which are not subject to a Lien securing
Debt and (ii) all other assets (excluding accounts receivable and intangibles)
of the Company and its Subsidiaries not subject to a Lien securing Debt, all
determined on a consolidated basis in accordance with generally accepted
accounting principles.

         "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939,
as amended, and any reference herein to the Trust Indenture Act or the TIA or a
particular provision thereof shall mean such Act or provision, as the case may
be, as amended or replaced from time to time or as supplemented from time to
time by rules or regulations adopted by the Commission under or in furtherance
of the purposes of such Act or provision, as the case may be.

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

         "Undepreciated Real Estate Assets" means, as of any date, the cost
(original cost plus capital improvements) of real estate assets of the Company
and its Subsidiaries on such date, before depreciation and amortization, all
determined on a consolidated basis in accordance with generally accepted
accounting principles.

                                       9
<PAGE>

         "United States" means, unless otherwise specified with respect to any
Debt Securities pursuant to Section 301, the United States of America (including
the states and the District of Columbia), its territories, its possessions and
other areas subject to its jurisdiction.

         "United States of America" means the United States of America
(including the states and the District of Columbia), but excluding its
territories, its possessions and other areas subject to its jurisdiction.

         "United States Person" means, unless otherwise specified with respect
to any Debt Securities pursuant to Section 301, any citizen or resident of the
United States, any corporation, partnership or other entity created or organized
in or under the laws of the United States any estate the income of which is
subject to United States federal income taxation regardless of its source, or
any trust whose administration is subject to the primary supervision of a United
States court and which has one or more United States fiduciaries who have the
authority to control all substantial decisions of the trust.

         "Unsecured Debt" means Debt of the Company or any of its Subsidiaries
which is not secured by a Lien on any property or assets of the Company or any
of its Subsidiaries.

     SECTION 102.   COMPLIANCE CERTIFICATES AND OPINIONS. Upon any application
or request by the Company to the Trustee to take any action under any provision
of this Indenture, the Company shall furnish to the Trustee an Officers'
Certificate stating that all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with and an Opinion
of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished. Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

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

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

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

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

     SECTION 103. FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where
several matters are required to be certified by, or covered by an opinion of,
any specified Person, it is not necessary that all such matters be certified by,
or covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give an
opinion as to some matters and one or more other such Persons as to other
matters, and any such Person may certify or give an opinion as to such matters
in one or several documents.

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

                                       10
<PAGE>

with respect to the matters upon which his certificate or opinion is based are
erroneous. Any such Opinion of Counsel or certificate or representations may be
based, insofar as it relates to factual matters, upon a certificate or opinion
of, or representations by, an officer or officers of the Company stating that
the information as to such factual matters is in the possession of the Company,
unless such counsel knows that the certificate or opinion or representations as
to such matters are erroneous.

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

     SECTION 104. ACTS OF HOLDERS.

     (a)  Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Holders of
the outstanding Debt Securities of all series or one or more series, as the case
may be, may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing. If Debt Securities of a series are issuable as Bearer Debt
Securities, any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders of Debt Securities of such series may, alternatively, be embodied in and
evidenced by the record of Holders of Debt Securities of such series voting in
favor thereof, either in person or by proxies duly appointed in writing, at any
meeting of Holders of Debt Securities of such series duly called and held in
accordance with the provisions of Article Fifteen, or a combination of such
instruments and any such record. Except as herein otherwise expressly provided,
such action shall become effective when such instrument or instruments or record
or both are delivered to the Trustee and, where it is hereby expressly required,
to the Company. Such instrument or instruments and any such record (and the
action embodied therein and evidenced thereby) are herein sometimes referred to
as the "Act" of the Holders signing such instrument or instruments or so voting
at any such meeting. Proof of execution of any such instrument or of a writing
appointing any such agent, or of the holding by any Person of a Debt Security,
shall be sufficient for any purpose of this Indenture and conclusive in favor of
the Trustee and the Company and any agent of the Trustee or the Company, if made
in the manner provided in this Section. The record of any meeting of Holders of
Debt Securities shall be proved in the manner provided in Section 1506.

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

     (c)  The ownership of Registered Debt Securities shall be proved by the
Security Register.

     (d)  The ownership of Bearer Debt Securities may be proved by the
production of such Bearer Debt Securities or by a certificate executed, as
depository, by any trust company, bank, banker or other depository, wherever
situated, if such certificate shall be deemed by the Trustee to be satisfactory,
showing that at the date therein mentioned such Person had on deposit with such
depository, or exhibited to it, the Bearer Debt Securities therein described; or
such facts may be proved by the certificate or affidavit of the Person holding
such Bearer Debt Securities, if such certificate or affidavit is deemed by the
Trustee to be satisfactory. The Trustee and the Company may assume that such
ownership of any Bearer Debt Security continues until (1) another certificate or
affidavit bearing a later date issued in

                                       11
<PAGE>

respect of the same Bearer Debt Security is produced, or (2) such Bearer Debt
Security is produced to the Trustee by some other Person, or (3) such Bearer
Debt Security is surrendered in exchange for a Registered Debt Security, or (4)
such Bearer Debt Security is no longer outstanding. The ownership of Bearer Debt
Securities may also be proved in any other manner which the Trustee deems
sufficient.

     (e)  If the Company shall solicit from the Holders of Registered Securities
any request, demand, authorization, direction, notice, consent, waiver or other
Act, the Company may, at its option, in or pursuant to a Board Resolution, fix
in advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. Notwithstanding TIA Section
316(c), such record date shall be the record date specified in or pursuant to
such Board Resolution, which shall be a date not earlier than the date 30 days
prior to the first solicitation of Holders generally in connection therewith and
not later than the date such solicitation is completed. If such a record date is
fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the Holders
of record at the close of business on such record date shall be deemed to be
Holders for the purposes of determining whether Holders of the requisite
proportion of outstanding Debt Securities have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other Act, and for that purpose the Outstanding Debt Securities shall be
computed as of such record date; provided that no such authorization, agreement
or consent by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture not later
than eleven months after the record date.

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

     SECTION 105. NOTICES, ETC., TO TRUSTEE AND COMPANY. Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other
document provided or permitted by this Indenture to be made upon, given or
furnished to, or filed with,

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

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

     SECTION 106. NOTICE TO HOLDERS; WAIVER. Where this Indenture provides for
notice of any event to Holders of Registered Debt Securities by the Company or
the Trustee, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each such Holder affected by such event, at his address as it appears in the
Security Register, not later than the latest date, and not earlier than the
earliest date, prescribed for the giving of such notice. In any case where
notice to Holders of Registered Debt Securities is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders of Registered Debt Securities or the sufficiency of

                                       12
<PAGE>

any notice to Holders of Bearer Debt Securities given as provided herein. Any
notice mailed to a Holder in the manner herein prescribed shall be conclusively
deemed to have been received by such Holder, whether or not such Holder actually
receives such notice.

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

     Except as otherwise expressly provided herein or otherwise specified with
respect to any Debt Securities pursuant to Section 301, where this Indenture
provides for notice to Holders of Bearer Debt Securities of any event, such
notice shall be sufficiently given if published in an Authorized Newspaper in
[The City of New York] and in such other city or cities as may be specified in
such Debt Securities on a Business Day, such publication to be not later than
the latest date, and not earlier than the earliest date, prescribed for the
giving of such notice. Any such notice shall be deemed to have been given on the
date of such publication or, if published more than once, on the date of the
first such publication.

     If by reason of the suspension of publication of any Authorized Newspaper
or Authorized Newspapers or by reason of any other cause it shall be
impracticable to publish any notice to Holders of Bearer Debt Securities as
provided above, then such notification to Holders of Bearer Debt Securities as
shall be given with the approval of the Trustee shall constitute sufficient
notice to such Holders for every purpose hereunder. Neither the failure to give
notice by publication to any particular Holder of Bearer Debt Securities as
provided above, nor any defect in any notice so published, shall affect the
sufficiency of such notice with respect to other Holders of Bearer Debt
Securities or the sufficiency of any notice to Holders of Registered securities
given as provided herein.

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

     Where this Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice.
Waivers of notice by Holders shall be filed with the Trustee, but such filing
shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.

     SECTION 107.   EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

     SECTION 108.   SUCCESSORS AND ASSIGNS. All covenants and agreements in this
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

     SECTION 109.   SEPARABILITY CLAUSE. In case any provision in this Indenture
or in any Debt Security or coupon shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

     SECTION 110.   BENEFITS OF INDENTURE. Nothing in this Indenture or in the
Debt Securities or coupons, express or implied, shall give to any Person, other
than the parties hereto, any Debt Security Registrar, any Paying Agent, any
Authenticating Agent and their successors hereunder and the Holders any benefit
or any legal or equitable right, remedy or claim under this Indenture.

                                       13
<PAGE>

     SECTION 111.   GOVERNING LAW. This Indenture and the Debt Securities and
coupons shall be governed by and construed in accordance with the law of the
State of New York. This Indenture is subject to the provisions of the TIA that
are required to be part of this Indenture and shall, to the extent applicable,
be governed by such provisions.

     SECTION 112.   LEGAL HOLIDAYS. In any case where any Interest Payment Date,
Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or
Maturity of any Debt Security shall not be a Business Day at any Place of
Payment, then (notwithstanding any other provision of this Indenture or any Debt
Security or coupon other than a provision in the Debt Securities of any series
which specifically states that such provision shall apply in lieu hereof),
payment of interest or any Additional Amounts or principal (and premium, if any)
need not be made at such Place of Payment on such date, but may be made on the
next succeeding Business Day at such Place of Payment with the same force and
effect as if made on the Interest Payment Date, Redemption Date, Repayment Date
or sinking fund payment date, or at the Stated Maturity or Maturity, as the case
may be, provided that no interest shall accrue on the amount so payable for the
period from and after such Interest Payment Date, Redemption Date, Repayment
Date, sinking fund payment date, Stated Maturity or Maturity, as the case may
be.

                                  ARTICLE TWO
                                SECURITIES FORMS

     SECTION 201.   FORMS OF DEBT SECURITIES. The Registered Debt Securities, if
any, of each series and the Bearer Debt Securities, if any, of each series and
related coupons shall be in substantially the forms as shall be established in
or pursuant to one or more indentures supplemental hereto or by or pursuant to a
Board Resolution, shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture or any indenture supplemental hereto, and may have such letters,
numbers or other marks of identification or designation and such legends or
endorsements placed 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 the Debt Securities may be
listed, or to conform to usage.

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

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

     SECTION 202.   FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION. Subject to
Section 611, the Trustee's certificate of authentication shall be in
substantially the following form:

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

                                                   [________________] as Trustee

                                       14
<PAGE>

                                             By_________________________________
                                                  Authorized Officer

     SECTION 203.   DEBT SECURITIES ISSUABLE IN GLOBAL FORM. If Debt Securities
of or within a series are issuable in global form, as specified as contemplated
by Section 301, then, notwithstanding clause (8) of Section 301 and the
provisions of Section 302, any such Debt Security shall represent such of the
Outstanding Debt Securities of such series as shall be specified therein and may
provide that it shall represent the aggregate amount of Outstanding Debt
Securities of such series from time to time endorsed thereon and that the
aggregate amount of Outstanding Debt Securities of such series represented
thereby may from time to time be increased or decreased to reflect exchanges.
Any endorsement of a Debt Security in global form to reflect the amount, or any
increase or decrease in the amount, of Outstanding Debt Securities represented
thereby shall be made by or at the direction of the Trustee in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or pursuant to Section 301 or in the Company Order to be delivered to the
Trustee pursuant to Section 303 or 304. Subject to the provisions of Section 303
and, if applicable, Section 304, the Trustee shall deliver and redeliver any
Debt Security in permanent global form in the manner and upon instructions given
by the Person or Persons specified therein or pursuant to Section 301 or in the
applicable Company Order. If a Company Order pursuant to Section 303 or 304 has
been or is delivered, any instructions by the Company with respect to
endorsement or delivery or redelivery of a Debt Security in global form shall be
in writing but need not comply with Section 102 and need not be accompanied by
an Opinion of Counsel.

     The provisions of the last sentence of Section 303 shall apply to any Debt
Security represented by a Debt Security in global form if such Debt Security was
never issued and sold by the Company and the Company delivers to the Trustee the
Debt Security in global form together with written instructions (which need not
comply with Section 102 and need not be accompanied by an Opinion of Counsel)
with regard to the reduction in the principal amount of Debt Securities
represented thereby, together with the written statement contemplated by the
last sentence of Section 303.

     Notwithstanding the provisions of Section 307, unless otherwise specified
as contemplated by Section 301, payment of principal of and any premium and
interest on any Debt Security in permanent global form shall be made to the
Person or Persons specified therein.

     Notwithstanding the provisions of Section 308 and except as provided in the
preceding paragraph, the Company, the Trustee and any agent of the Company and
the Trustee shall treat as the Holder of such principal amount of Outstanding
Debt Securities represented by a global Debt Security (i) in the case of a
global Debt Security in registered form, the Holder of such global Debt Security
in registered form, or (ii) in the case of a global Debt Security in bearer
form, Euroclear or CEDEL.

                                 ARTICLE THREE
                                 THE SECURITIES

     SECTION 301.   AMOUNT UNLIMITED; ISSUABLE IN SERIES. The aggregate
principal amount of Debt Securities which may be authenticated and delivered
under this Indenture is unlimited.

     The Debt Securities may be issued in one or more series. There shall be
established in one or more Board Resolutions or pursuant to authority granted by
one or more Board Resolutions and set forth, or determined in the manner
provided, in an Officers' Certificate, or established in or pursuant to one or
more indentures supplemental hereto, prior to the issuance of Debt Securities of
any series, any or all of the following, as applicable (each of which (except
for the matters set forth in clauses (1) and (2) below),

                                       15
<PAGE>

if so provided, may be determined from time to time by the Company with respect
to unissued Debt Securities of the series when issued from time to time):

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

     (2)  any limit upon the aggregate principal amount of the Debt Securities
of the series that may be authenticated and delivered under this Indenture
(except for Debt Securities authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Debt Securities of the
series pursuant to Section 304, 305, 306, 906 or 1107 or upon surrender of other
Debt Securities of the series for conversion in part or repayment in part at the
option of the Holders);

     (3)  the date or dates, or the method by which such date or dates will be
determined, on which the principal of the Debt Securities of the series shall be
payable;

     (4)  the rate or rates at which the Debt Securities of the series shall
bear interest, if any, or the method by which such rate or rates shall be
determined, the date or dates from which such interest shall accrue or the
method by which such date or dates shall be determined, the Interest Payment
Dates on which such interest will be payable and the Regular Record Date, if
any, for the interest payable on any Registered Debt Security on any Interest
Payment Date, or the method by which such date shall be determined, and the
basis upon which interest shall be calculated if other than that of a 360-day
year of twelve 30-day months;

     (5)  the place or places, if any, other than or in addition to the [Borough
of Manhattan, The City of New York], where the principal of (and premium, if
any), interest, if any, on, and Additional Amounts, if any, payable in respect
of, Debt Securities of the series shall be payable, any Registered Debt
Securities of the series may be surrendered for registration of transfer,
exchange or (if applicable) conversion and notices or demands to or upon the
Company in respect of the Debt Securities of the series and this Indenture may
be served;

     (6)  the period or periods within which, the price or prices at which, the
currency or currencies, currency unit or units or composite currency or
currencies in which, and other terms and conditions upon which Debt Securities
of the series may be redeemed, in whole or in part, at the option of the
Company, if the Company is to have the option;

     (7)  the obligation, if any, of the Company to redeem, repay or purchase
Debt Securities of the series pursuant to any sinking fund or analogous
provision or at the option of a Holder thereof, and the period or periods within
which or the date or dates on which, the price or prices at which, the currency
or currencies, currency unit or units or composite currency or currencies in
which, and other terms and conditions upon which Debt Securities of the series
shall be redeemed, repaid or purchased, in whole or in part, pursuant to such
obligation;

     (8)  if other than denominations of $1,000 and any integral multiple
thereof, the denominations in which any Registered Debt Securities of the series
shall be issuable and, if other than the denomination of $5,000, the
denomination or denominations in which any Bearer Debt Securities of the series
shall be issuable;

     (9)  if other than the Trustee, the identity of each Security Registrar
and/or Paying Agent;

     (10) if other than 100% of the principal amount thereof, the portion of the
principal amount of Debt Securities of the series that shall be payable upon
declaration of acceleration of the Maturity thereof

                                       16
<PAGE>

pursuant to Section 502 or, if applicable, the portion of the principal amount
of Debt Securities of the series that is convertible in accordance with the
provisions of this Indenture or the method by which such portion shall be
determined;

     (11) if other than Dollars, the Foreign Currency or Foreign Currencies in
which payment of the principal of (and premium if any) or interest or Additional
Amounts, if any, on the Debt Securities of the series shall be payable or in
which the Debt Securities of the series shall be denominated;

     (12) whether the amount of payments of principal of (and premium, if any)
or interest, if any, on the Debt Securities of the series may be determined with
reference to an index, formula or other method (which index, formula or method
may be based, without limitation, or one or more currencies, currency units,
composite currencies, commodities, equity indices or other indices), and the
manner in which such amounts shall be determined;

     (13) whether the principal of (and premium, if any) or interest or
Additional Amounts, if any, on the Debt Securities of the series are to be
payable, at the election of the Company or a Holder thereof, in a currency or
currencies, currency unit or units or composite currency or currencies other
than that in which such Debt Securities are denominated or stated to be payable,
the period or periods within which, and the terms and conditions upon which,
such election may be made, and the time and manner of, and identity of the
exchange rate agent with responsibility for, determining the exchange rate
between the currency or currencies, currency unit or units or composite currency
or currencies in which such Debt Securities are denominated or stated to be
payable and the currency or currencies, currency unit or units or composite
currency or currencies in which such Debt Securities are to be so payable;

     (14) provisions, if any, granting special rights to the Holders of Debt
Securities of the series upon the occurrence of such events as may be specified;

     (15) any deletions from, modifications of, or additions to the Events of
Default or covenants of the Company with respect to Debt Securities of the
series, whether or not such Events of Default or covenants are consistent with
the Events of Default or covenants set forth herein;

     (16) whether Debt Securities of the series are to be issuable as Registered
Debt Securities, Bearer Debt Securities (with or without coupons) or both, any
restrictions applicable to the offer, sale or delivery of Bearer Debt Securities
and the terms upon which Bearer Debt Securities of the series may be exchanged
for Registered Debt Securities of the series and vice versa (if permitted by
applicable laws and regulations), whether any Debt Securities of the series are
to be issuable initially in temporary global form and whether any Debt
Securities of the series are to be issuable in permanent global form with or
without coupons and, if so, whether beneficial owners of interests in any such
permanent global Debt Security may exchange such interests for definitive Debt
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may occur, if
other than in the manner provided in Section 305, and, if Registered Debt
Securities of the series are to be issuable as a global Debt Security, the
identity of the initial depository for such series;

     (17) the date as of which any Bearer Debt Securities of the series and any
temporary global Debt Security representing Outstanding Debt Securities of the
series shall be dated if other than the date of original issuance of the first
Debt Security of the series to be issued;

     (18) the Person to whom any interest on any Registered Debt Security of the
series shall be payable, if other than the Person in whose name that Debt
Security (or one or more Predecessor Debt Securities) is registered at the close
of business on the Regular Record Date for such interest, the manner in which,
or the Person to whom, any interest on any Bearer Debt Security of the series
shall be payable,

                                       17
<PAGE>

if otherwise than upon presentation and surrender of the coupons appertaining
thereto as they severally mature, and the extent to which, or the manner in
which, any interest payable on a temporary global Debt Security on an Interest
Payment Date will be paid if other than in the manner provided in Section 304;

     (19) the applicability, if any, of Sections 1402 and/or 1403 to the Debt
Securities of the series and any provisions in modification of, in addition to
or in lieu of any of the provisions of Article Fourteen;

     (20) if the Debt Securities of such series are to be issuable in definitive
form (whether upon original issue or upon exchange of a temporary Debt Security
of such series) only upon receipt of certain certificates or other documents or
satisfaction of other conditions, then the form and/or terms of such
certificates, documents or conditions;

     (21) if the Debt Securities of the series are to be issued upon the
exercise of warrants, the time, manner and place for such Debt Securities to be
authenticated and delivered;

     (22) whether and under what circumstances the Company will pay Additional
Amounts as contemplated by Section 1015 on the Debt Securities of the series to
any Holder who is not a United States Person (including any modification to the
definition of such term) in respect of any tax, assessment or governmental
charge and, if so, whether the Company will have the option to redeem such Debt
Securities rather than pay such Additional Amounts (and the terms of any such
option);

     (23) the obligation, if any, of the Company to permit the conversion of the
Debt Securities of such series into the Company's Common Shares or Preferred
Shares or into other securities or property, as the case may be, and the terms
and conditions upon which such conversion shall be effected (which may include,
without limitation, the initial conversion price or rate, the conversion period,
any adjustment of the applicable conversion price and any requirements relative
to the reservation of such shares for purposes of conversion); and

     (24) any other terms of the series and any deletions from or modifications
or additions to this Indenture in respect of such Debt Securities (whether or
not consistent with the other provisions of this Indenture).All Debt Securities
of any one series and all coupons, if any, appertaining to Bearer Debt
Securities of such series shall be substantially identical except as to currency
or currency unit of payments due thereunder, denomination, rate of interest or
method of determining the rate of interest, if any, Maturity, and the date from
which interest, if any, shall accrue and except as may otherwise be provided by
the Company in the Board Resolution, or pursuant to the Board Resolution and set
forth in the Officers' Certificate, or in any indenture or indentures
supplemental hereto, as the case may be, pertaining to such series of Debt
Securities. The terms of the Debt Securities of any series may provide, without
limitation, that the Debt Securities shall be authenticated and delivered by the
Trustee on original issue from time to time upon telephonic or written order of
persons designated in or pursuant to the relevant Board Resolution, Officers'
Certificate or supplemental indenture, as the case may be (telephonic
instructions to be promptly confirmed in writing by such person) and that such
persons are authorized to determine, consistent with such Board Resolution,
Officers' Certificate or supplemental indenture, as the case may be, such terms
and conditions of the Securities of such series as are specified in such Board
Resolution, Officers' Certificate or supplemental indenture, as the case may be.
All Debt Securities of any one series need not be issued at the same time and,
unless otherwise provided, a series may be reopened, without the consent of the
Holders, for issuances of additional Debt Securities of such series.

     If the form or any of the terms of the Debt Securities of any series are
established by action taken pursuant to one or more Board Resolutions, a copy of
an appropriate record of such action(s) shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or

                                       18
<PAGE>

prior to the delivery of the Officers' Certificate setting forth the terms of
the Debt Securities of such series.

     SECTION 302.   DENOMINATIONS. The Debt Securities of each series shall be
issuable in such denominations as shall be specified as contemplated by Section
301. With respect to Debt Securities of any series denominated in Dollars, in
the absence of any such provisions with respect to the Debt Securities of any
series, the Registered Debt Securities of such series, other than Registered
Debt Securities issued in global form (which may be of any denomination), shall
be issuable in denominations of $1,000 and any integral multiple thereof and the
Bearer Debt Securities of such series, other than Bearer Debt Securities issued
in global form (which may be of any denomination), shall be issuable in
denominations of $5,000.

     SECTION 303.   EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The Debt
Securities and any coupons appertaining thereto shall be executed on behalf of
the Company by its Chairman, any Vice Chairman, its President or one of its Vice
Presidents and attested by its Treasurer, one of its Assistant Treasurers, its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Debt Securities and coupons may be manual or facsimile
signatures of the present or any future such authorized officer and may be
imprinted or otherwise reproduced on the Debt Securities.

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

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Debt Securities of any series, together with
any coupon appertaining thereto, executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and
delivery of such Debt Securities, and the Trustee in accordance with the Company
Order shall authenticate and deliver such Debt Securities; provided, however,
that, in connection with its original issuance, no Bearer Debt Security shall be
mailed or otherwise delivered to any location in the United States; and provided
further that, unless otherwise specified with respect to any series of Debt
Securities pursuant to Section 301, a Bearer Debt Security may be delivered in
connection with its original issuance only if the Person entitled to receive
such Bearer Debt Security shall have furnished a certificate to Euroclear or
CEDEL, as the case may be, in the form set forth in Exhibit A-1 to this
Indenture or such other certificate as may be specified with respect to any
series of Debt Securities pursuant to Section 301, dated no earlier than 15 days
prior to the earlier of the date on which such Bearer Debt Security is delivered
and the date on which any temporary Debt Security first becomes exchangeable for
such Bearer Debt Security in accordance with the terms of such temporary Debt
Security and this Indenture. If any Debt Security shall be represented by a
permanent global Bearer Debt Security, then, for purposes of this Section 303
and Section 304, the notation of a beneficial owner's interest therein upon
original issuance of such Debt Security or upon exchange of a portion of a
temporary global Debt Security shall be deemed to be delivery in connection with
its original issuance of such beneficial owner's interest in such permanent
global Debt Security. Except as permitted by Section 306, the Trustee shall not
authenticate and deliver any Bearer Debt Security unless all appurtenant coupons
for interest then matured have been detached and canceled. In authenticating
such Debt Securities, and accepting the additional responsibilities under this
Indenture in relation to such Debt Securities, the Trustee shall be entitled to
receive, and (subject to TIA Section 315(a) through 315(d)) shall be fully
protected in relying upon,

     (i)  an Opinion of Counsel stating that

                                       19
<PAGE>

     (a)  the form or forms of such Debt Securities and any coupons have been
established in conformity with the provisions of this Indenture;

     (b)  the terms of such Debt Securities and any coupons have been
established in conformity with the provisions of this Indenture; and

     (c)  such Debt Securities, together with any coupons appertaining thereto,
when completed by appropriate insertions and executed and delivered by the
Company to the Trustee for authentication in accordance with this Indenture,
authenticated and delivered by the Trustee in accordance with this Indenture and
issued by the Company in the manner and subject to any conditions specified in
such Opinion of Counsel, will constitute legal, valid and binding obligations of
the Company, enforceable in accordance with their terms, except as limited by
any applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or affecting the enforcement of creditors' rights generally and
general equitable principles; and

     (ii)      an Officers' Certificate stating that all conditions precedent
provided for in this Indenture relating to the issuance of the Debt Securities
have been complied with and that, to the best of the knowledge of the signers of
such certificate, no Event of Default with respect to any of the Debt Securities
shall have occurred and be continuing.

     If such form or terms have been so established, the Trustee shall not be
required to authenticate such Debt Securities if the issue of such Debt
Securities pursuant to this Indenture will affect the Trustee's own rights,
duties, obligations or immunities under the Debt Securities and this Indenture
or otherwise in a manner which is not reasonably acceptable to the Trustee.

     Notwithstanding anything herein to the contrary, if all the Debt Securities
of any series are not to be issued at one time, it shall not be necessary to
deliver an Officers' Certificate otherwise required pursuant to Section 301 or a
Company Order, an Opinion of Counsel or an Officers' Certificate otherwise
required pursuant to this Section 303 at the time of issuance of each Debt
Security of such series, but such order, opinion and certificates, with
appropriate modifications to cover such future issuances, shall be delivered at
or before the time of issuance of the first Debt Security of such series.

     Each Registered Debt Security shall be dated the date of its authentication
and each Bearer Debt Security shall be dated as of the date specified as
contemplated by Section 301.

     No Debt Security or coupon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Debt Security or Debt Security to which such coupon appertains a certificate of
authentication substantially in the form provided for herein duly executed by
the Trustee by manual signature of an authorized signatory, and such certificate
upon any Debt Security shall be conclusive evidence, and the only evidence, that
such Debt Security has been duly authenticated and delivered hereunder and is
entitled to the benefits of this Indenture. Notwithstanding the foregoing, if
any Debt Security shall have been authenticated and delivered hereunder but
never issued and sold by the Company, and the Company shall deliver such Debt
Security to the Trustee for cancellation as provided in Section 309 together
with a written statement (which need not comply with Section 102 and need not be
accompanied by an Opinion of Counsel) stating that such Debt Security has never
been issued and sold by the Company, for all purposes of this Indenture such
Debt Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

     SECTION 304.   TEMPORARY DEBT SECURITIES.

                                       20
<PAGE>

     (a)  Pending the preparation of definitive Debt Securities of any series,
the Company may execute, and upon Company Order the Trustee shall authenticate
and deliver, temporary Debt Securities which are printed, lithographed,
typewritten, mimeographed or otherwise produced, in any authorized denomination,
substantially of the tenor of the definitive Debt Securities in lieu of which
they are issued, in registered form, or, if authorized, in bearer form with one
or more coupons or without coupons, and with such appropriate insertions,
omissions, substitutions and other variations as the officers executing such
Debt Securities may determine, as conclusively evidenced by their execution of
such Debt Securities. In the case of Debt Securities of any series, such
temporary Debt Securities may be in global form. Except in the case of temporary
Debt Securities in global form (which shall be exchanged in accordance with
Section 304(b) or as otherwise provided in or pursuant to a Board Resolution),
if temporary Debt Securities of any series are issued, the Company will cause
definitive Debt Securities of that series to be prepared without unreasonable
delay. After the preparation of definitive Debt Securities of such series, the
temporary Debt Securities of such series shall be exchangeable for definitive
Debt Securities of such series upon surrender of the temporary Debt Securities
of such series at the office or agency of the Company in a Place of Payment for
that series, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Debt Securities of any series (accompanied by any non-
matured coupons appertaining thereto), the Company shall execute and the Trustee
shall authenticate and deliver in exchange therefor a like principal amount of
definitive Debt Securities of the same series of authorized denominations;
provided, however, that no definitive Bearer Debt Security shall be delivered in
exchange for a temporary Registered Debt Security; and provided further that a
definitive Bearer Debt Security shall be delivered in exchange for a temporary
Bearer Debt Security only in compliance with the conditions set forth in Section
303. Until so exchanged, the temporary Debt Securities of any series shall in
all respects be entitled to the same benefits under this Indenture as definitive
Debt Securities of such series.

     (b)  Unless otherwise provided in or pursuant to a Board Resolution, this
Section 304(b) shall govern the exchange of temporary Debt Securities issued in
global form other than through the facilities of DTC. If any such temporary Debt
Security is issued in global form, then such temporary global Debt Security
shall, unless otherwise provided therein or pursuant to Section 301, be
delivered to the London office of a depository or common depository (the "Common
Depository"), for the benefit of Euroclear and CEDEL, for credit to the
respective accounts of the beneficial owners of such Debt Securities (or to such
other accounts as they may direct).

     Without unnecessary delay but in any event not later than the date
specified in, or determined pursuant to the terms of, any such temporary global
Debt Security (the "Exchange Date"), the Company shall deliver to the Trustee
definitive Debt Securities, in aggregate principal amount equal to the principal
amount of such temporary global Debt Security, executed by the Company. On or
after the Exchange Date, such temporary global Debt Security shall be
surrendered by the Common Depository to the Trustee, as the Company's agent for
such purpose, to be exchanged, in whole or from time to time in part, for
definitive Debt Securities without charge to the Holders, and the Trustee shall
authenticate and deliver, in exchange for each portion of such temporary global
Debt Security, an equal aggregate principal amount of definitive Debt Securities
of the same series of authorized denominations and of like tenor as the portion
of such temporary global Debt Security to be exchanged. The definitive Debt
Securities to be delivered in exchange for any such temporary global Debt
Security shall be in bearer form, registered form, permanent global bearer form
or permanent global registered form, or any combination thereof, as specified as
contemplated by Section 301, and, if any combination thereof is so specified, as
requested by the beneficial owner thereof; provided, however, that, unless
otherwise specified in such temporary global Debt Security, upon such
presentation by the Common Depository, such temporary global Debt Security is
accompanied by a certificate dated the Exchange Date or a subsequent date and
signed by Euroclear as to the portion of such temporary global Debt Security
held for its account then to be exchanged and a certificate dated the Exchange
Date or a subsequent date and

                                       21
<PAGE>

signed by CEDEL as to the portion of such temporary global Debt Security held
for its account then to be exchanged, each in the form set forth in Exhibit A-2
to this Indenture or in such other form as may be established pursuant to
Section 301; and provided further that definitive Bearer Debt Securities shall
be delivered in exchange for a portion of a temporary global Debt Security only
in compliance with the requirements of Section 303.

     Unless otherwise specified in such temporary global Debt Security, the
interest of a beneficial owner of Debt Securities of a series in a temporary
global Debt Security shall be exchanged for definitive Debt Securities of the
same series and of like tenor following the Exchange Date when the account
holder instructs Euroclear or CEDEL, as the case may be, to request such
exchange on his behalf and delivers to Euroclear or CEDEL, as the case may be, a
certificate in the form set forth in Exhibit A-1 to this Indenture (or in such
other form as may be established pursuant to Section 301), dated no earlier than
15 days prior to the Exchange Date, copies of which certificate shall be
available from the offices of Euroclear and CEDEL, the Trustee, any
Authenticating Agent appointed for such series of Debt Securities and each
Paying Agent. Unless otherwise specified in such temporary global Debt Security,
any such exchange shall be made free of charge to the beneficial owners of such
temporary global Debt Security, except that a Person receiving definitive Debt
Securities must bear the cost of insurance, postage, transportation and the like
unless such Person takes delivery of such definitive Debt Securities in person
at the offices of Euroclear or CEDEL. Definitive Debt Securities in bearer form
to be delivered in exchange for any portion of a temporary global Debt Security
shall be delivered only outside the United States.

     Until exchanged in full as hereinabove provided, the temporary Debt
Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as definitive Debt Securities of the same series and of
like tenor authenticated and delivered hereunder, except that, unless otherwise
specified as contemplated by Section 301, interest payable on a temporary global
Debt Security on an Interest Payment Date for Debt Securities of such series
occurring prior to the applicable Exchange Date shall be payable to Euroclear
and CEDEL on such Interest Payment Date upon delivery by Euroclear and CEDEL to
the Trustee of a certificate or certificates in the form set forth in Exhibit
A-2 to this Indenture (or in such other forms as may be established pursuant to
Section 301), for credit without further interest on or after such Interest
Payment Date to the respective accounts of Persons who are the beneficial owners
of such temporary global Debt Security on such Interest Payment Date and who
have each delivered to Euroclear or CEDEL, as the case may be, a certificate
dated no earlier than 15 days prior to the Interest Payment Date occurring prior
to such Exchange Date in the form set forth as Exhibit A-1 to this Indenture (or
in such other forms as may be established pursuant to Section 301).
Notwithstanding anything to the contrary herein contained, the certifications
made pursuant to this paragraph shall satisfy the certification requirements of
the preceding two paragraphs of this Section 304(b) and of the third paragraph
of Section 303 of this Indenture and the interests of the Persons who are the
beneficial owners of the temporary global Debt Security with respect to which
such certification was made will be exchanged for definitive Debt Securities of
the same series and of like tenor on the Exchange Date or the date of
certification if such date occurs after the Exchange Date, without further act
or deed by such beneficial owners. Except as otherwise provided in this
paragraph, no payments of principal or interest owing with respect to a
beneficial interest in a temporary global Debt Security will be made unless and
until such interest in such temporary global Debt Security shall have been
exchanged for an interest in a definitive Debt Security.

     SECTION 305.   REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE. The
Company shall cause to be kept at the Corporate Trust Office of the Trustee or
in any office or agency of the Company in a Place of Payment a register for each
series of Debt Securities (the registers maintained in such office or in any
such office or agency of the Company in a Place of Payment being herein
sometimes referred to collectively as the "Security Register") in which, subject
to such reasonable

                                       22
<PAGE>

regulations as it may prescribe, the Company shall provide for the registration
of Registered Debt Securities and of transfers and exchanges of Registered Debt
Securities. The Security Register shall be in written form or any other form
capable of being converted into written form within a reasonable time. The
Trustee, at its Corporate Trust Office and at its office in the [Borough of
Manhattan, The City of New York] at the address set forth in Section 1002 (or at
such other address at which the Trustee's New York office may subsequently be
located), is hereby initially appointed "Security Registrar" for the purpose of
registering Registered Debt Securities and transfers and exchanges of Registered
Debt Securities on such Security Register as herein provided. In the event that
the Trustee shall cease to be Debt Security Registrar, it shall have the right
to examine the Security Register at all reasonable times.

     Subject to the provisions of this Section 305, upon surrender for
registration of transfer of any Registered Debt Security of any series at any
office or agency of the Company in a Place of Payment for that series, the
Company shall execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new Registered
Debt Securities of the same series, of any authorized denominations and of a
like aggregate principal amount, bearing a number not contemporaneously
outstanding, and containing identical terms and provisions.

     Subject to the provisions of this Section 305, at the option of the Holder,
Registered Debt Securities of any series may be exchanged for other Registered
Debt Securities of the same series, of any authorized denomination or
denominations and of a like aggregate principal amount, containing identical
terms and provisions, upon surrender of the Registered Debt Securities to be
exchanged at any such office or agency. Whenever any such Registered Debt
Securities are so surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Registered Debt Securities which the
Holder making the exchange is entitled to receive. Unless otherwise specified
with respect to any series of Debt Securities as contemplated by Section 301,
Bearer Debt Securities may not be issued in exchange for Registered Debt
Securities.

     If (but only if) permitted by the applicable Board Resolution and (subject
to Section 303) set forth in the applicable Officers" Certificate, or in any
indenture supplemental hereto, delivered as contemplated by Section 301, at the
option of the Holder, Bearer Debt Securities of any series may be exchanged for
Registered Debt Securities of the same series of any authorized denominations
and of a like aggregate principal amount and tenor, upon surrender of the Bearer
Debt Securities to be exchanged at any such office or agency, with all unmatured
coupons and all matured coupons in default thereto appertaining. If the Holder
of a Bearer Debt Security is unable to produce any such unmatured coupon or
coupons or matured coupon or coupons in default, any such permitted exchange may
be effected if the Bearer Debt Securities are accompanied by payment in funds
acceptable to the Company in an amount equal to the face amount of such missing
coupon or coupons, or the surrender of such missing coupon or coupons may be
waived by the Company and the Trustee if there is furnished to them such
security or indemnity as they may require to save each of them and any Paying
Agent harmless. If thereafter the Holder of such Debt Security shall surrender
to any Paying Agent any such missing coupon in respect of which such a payment
shall have been made, such Holder shall be entitled to receive the portion of
such payment equal to the face amount of such surrendered coupon, provided,
however, that, except as otherwise provided in Section 1002, interest
represented by coupons shall be payable only upon presentation and surrender of
those coupons at an office or agency located outside the United States.
Notwithstanding the foregoing, in case a Bearer Debt Security of any series is
surrendered at any such office or agency in a permitted exchange for a
Registered Debt Security of the same series and like tenor after the close of
business at such office or agency on (i) any Regular Record Date and before the
opening of business at such office or agency on the relevant Interest Payment
Date, or (ii) any Special Record Date and before the opening of business at such
office or agency on the related proposed date for payment of Defaulted Interest,
such Bearer Debt Security shall be surrendered without the coupon relating to
such Interest Payment Date or proposed date for payment, as the case may be, and
interest or Defaulted Interest, as the case may be, will

                                       23
<PAGE>

not be payable on such Interest Payment Date or proposed date for payment, as
the case may be, in respect of the Registered Debt Security issued in exchange
for such Bearer Debt Security, but will be payable only to the Holder of such
coupon when due in accordance with the provisions of this Indenture. Whenever
any Debt Securities are so surrendered for exchange, the Company shall execute,
and the Trustee shall authenticate and deliver, the Debt Securities which the
Holder making the exchange is entitled to receive. Notwithstanding the
foregoing, except as otherwise specified as contemplated by Section 301, any
permanent global Debt Security shall be exchangeable only as provided in this
paragraph. If the depository for any permanent global Debt Security is DTC,
then, unless the terms of such global Debt Security expressly permit such global
Debt Security to be exchanged in whole or in part for definitive Debt
Securities, a global Debt Security may be transferred, in whole but not in part,
only to a nominee of DTC, or by a nominee of DTC to DTC, or to a successor to
DTC for such global Debt Security selected or approved by the Company or to a
nominee of such successor to DTC. If at any time (i) DTC notifies the Company
that it is unwilling or unable to continue as depository for the applicable
global Debt Security or Debt Securities or if at any time DTC ceases to be a
clearing agency registered under the Securities Exchange Act of 1934 if so
required by applicable law or regulation, and, in either case, a successor
depository is not appointed by the Company within 90 days after the Company
receives such notice or becomes aware of such ineligibility, (ii) the Company in
its sole discretion determines that such global Debt Securities shall be
exchangeable for definitive Debt Securities or (iii) there shall have occurred
and be continuing an Event of Default under this Indenture with respect to the
Debt Securities of any series and beneficial owners representing a majority in
aggregate principal amount of the Outstanding Debt Securities represented by
such global Debt Securities advise DTC to cease acting as depository, then the
Company shall execute, and the Trustee shall authenticate and deliver,
definitive Debt Securities of like series, rank, tenor and terms in definitive
form in an aggregate principal amount equal to the principal amount of such
global Debt Security or Debt Securities. If any beneficial owner of an interest
in a permanent global Debt Security is otherwise entitled to exchange such
interest for Debt Securities of such series and of like tenor and principal
amount of another authorized form and denomination, as specified as contemplated
by Section 301 and provided that any applicable notice provided in the permanent
global Debt Security shall have been given, then without unnecessary delay but
in any event not later than the earliest date on which such interest may be so
exchanged, the Company shall execute, and the Trustee shall authenticate and
deliver, definitive Debt Securities in aggregate principal amount equal to the
principal amount of such beneficial owner's interest in such permanent global
Debt Security. On or after the earliest date on which such interests may be so
exchanged, such permanent global Debt Security shall be surrendered for exchange
by DTC or such other depository as shall be specified in the Company Order with
respect thereto to the Trustee, as the Company's agent for such purpose;
provided, however, that no Bearer Debt Security delivered in exchange for a
portion of a permanent global Debt Security shall be mailed or otherwise
delivered to any location in the United States. If a Registered Debt Security is
issued in exchange for any portion of a permanent global Debt Security after the
close of business at the office or agency where such exchange occurs on (i) any
Regular Record Date and before the opening of business at such office or agency
on the relevant Interest Payment Date, or (ii) any special Record Date and the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, Interest or Defaulted Interest, as the case may
be, will not be payable on such Interest Payment Date or proposed date for
payment, as the case may be, in respect of such Registered Debt Security, but
will be payable on such Interest Payment Date or proposed date for payment, as
the case may be, only to the Person to whom interest in respect of such portion
of such permanent global Debt Security is payable in accordance with the
provisions of this Indenture.

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

                                       24
<PAGE>

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

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

     The Company or the Trustee, as applicable, shall not be required (i) to
issue, register the transfer of or exchange any Debt Security if such Debt
Security may be among those selected for redemption during a period beginning at
the opening of business 15 days before selection of the Debt Securities to be
redeemed under Section 1103 and ending at the close of business on (A) if such
Debt Securities are issuable only as Registered Debt Securities, the day of the
mailing of the relevant notice of redemption or (B) if such Debt Securities are
issuable as Bearer Debt Securities, the day of the first publication of the
relevant notice of redemption or, if such Debt Securities are also issuable as
Registered Debt Securities and there is no publication, the day of mailing of
the relevant notice of redemption, or (ii) to register the transfer of or
exchange any Registered Debt Security so selected for redemption in whole or in
part, except, in the case of any Registered Debt Security to be redeemed in
part, the portion thereof not to be redeemed, or (iii) to exchange any Bearer
Debt Security so selected for redemption except that such a Bearer Debt Security
may be exchanged for a Registered Debt Security of that series and like tenor,
provided that such Registered Debt Security shall be simultaneously surrendered
for redemption, or (iv) to issue, register the transfer of or exchange any Debt
Security which has been surrendered for repayment at the option of the Holder,
except the portion, if any, of such Debt Security not to be so repaid.

     SECTION 306.   MUTILATED, DESTROYED, LOST AND STOLEN DEBT SECURITIES. If
any mutilated Debt Security or a Debt Security with a mutilated coupon
appertaining to it is surrendered to the Trustee or the Company, together with,
in proper cases, such Debt Security or indemnity as may be required by the
Company or the Trustee to save each of them or any agent of either of them
harmless, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Debt Security of the same series and
principal amount, containing identical terms and provisions and bearing a number
not contemporaneously outstanding, with coupons corresponding to the coupons, if
any, appertaining to the surrendered Debt Security.

     If there shall be delivered to the Company and to the Trustee (i) evidence
to their satisfaction of the destruction, loss or theft of any Debt Security or
coupon, and (ii) such Debt Security or indemnity as may be required by them to
save each of them and any agent of either of them harmless, then, in the absence
of notice to the Company or the Trustee that such Debt Security or coupon has
been acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and deliver, in lieu of any such
destroyed, lost or stolen Debt Security or in exchange for the Debt Security to
which a destroyed, lost or stolen coupon appertains (with all appurtenant
coupons not destroyed, lost or stolen), a new Debt Security of the same series
and principal amount, containing identical terms and provisions and bearing a
number not contemporaneously outstanding, with coupons corresponding to the
coupons, if any, appertaining to such destroyed, lost or stolen Debt Security or
to the Debt Security to which such destroyed, lost or stolen coupon appertains.
Notwithstanding the provisions of the previous two paragraphs, in case any such
mutilated, destroyed, lost or stolen Debt Security or coupon has become or is
about to become due and payable, the company in its discretion may, instead of
issuing a new Debt Security, with coupons corresponding to the coupons, if any,
appertaining to such destroyed, lost or stolen Debt Security or to the Debt
Security to which such destroyed, lost or stolen coupon appertains, pay such

                                       25
<PAGE>

Debt Security or coupon; provided, however, that payment of principal of (and
premium, if any), any interest on and any Additional Amounts with respect to,
Bearer Debt Securities shall, except as otherwise provided in Section 1002, be
payable only at an office or agency located outside the United States and,
unless otherwise specified as contemplated by Section 301, any interest on
Bearer Debt Securities shall be payable only upon presentation and surrender of
the coupons appertaining thereto.

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

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

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

     SECTION 307.   PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED. Except as
otherwise specified with respect to a series of Debt Securities in accordance
with the provisions of Section 301, interest on any Registered Debt 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 Debt Security (or
one or more Predecessor Debt Securities) 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 pursuant to Section 1002; provided, however,
that each installment of interest on any Registered Debt Security may at the
Company's option be paid by (i) mailing a check for such interest, payable to or
upon the written order of the Person entitled thereto pursuant to Section 308,
to the address of such Person as it appears on the Security Register or (ii)
transfer to an account maintained by the payee located in the United States.

     Unless otherwise provided as contemplated by Section 301 with respect to
the Debt Securities of any series, payment of interest may be made, in the case
of a Bearer Debt Security, by transfer to an account maintained by the payee
with a bank located outside the United States.

     Unless otherwise provided as contemplated by Section 301, interest, if any,
payable on any permanent global Debt Security or any Interest Payment Date will
be paid to DTC, Euroclear and/or CEDEL, as the case may be, with respect to that
portion of such permanent global Debt Security held for its account by Cede &
Co. (or by another nominee of DTC or by DTC) or the Common Depository, as the
case may be, for the purpose of permitting such party to credit the interest
received by it in respect of such permanent global Debt Security to the accounts
of the beneficial owners thereof.

     In case a Bearer Debt Security of any series is surrendered in exchange for
a Registered Debt Security of such series after the close of business (at an
office or agency in a Place of Payment for such series) on any Regular Record
Date and before the opening of business (at such office or agency) on the next
succeeding Interest Payment Date, such Bearer Debt Security shall be surrendered
without the coupon relating to such Interest Payment Date and interest will not
be payable on such Interest Payment Date in respect of the Registered Debt
Security issued in exchange for such Bearer Debt Security, but will

                                       26
<PAGE>

be payable only to the Holder of such coupon when due in accordance with the
provisions of this Indenture.

     Except as otherwise specified with respect to a series of Debt Securities
in accordance with the provisions of Section 301, any interest on any Registered
Debt Security of any series that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called "Defaulted Interest")
shall forthwith cease to be payable to the registered Holder thereof on the
relevant Regular Record Date by virtue of having been such Holder, and such
Defaulted Interest may be paid by the Company, at its election in each case, as
provided in clause (1) or (2) below:

     (1)  The Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Registered Debt Securities of such series (or their
respective Predecessor Debt 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
Registered Debt Security of such series and the date of the proposed payment
(which shall not be less than 20 days after such notice is received by the
Trustee), and at the same time the Company shall deposit with the Trustee an
amount of money in the currency or currencies, currency unit or units or
composite currency or currencies in which the Debt Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Debt
Securities of such series) equal to the aggregate amount proposed to be paid in
respect of such Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit on or prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as in this clause provided. Thereupon the
Trustee shall fix a Special Record Date for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior to
the date of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be mailed, first-
class postage prepaid, to each Holder of Registered Debt Securities of such
series at his address as it appears in the Security Register not less than 10
days prior to such Special Record Date. The Trustee shall in the name and at the
expense of the Company, cause a similar notice to be published at least once in
an Authorized Newspaper in each Place of Payment, but such publications shall
not be a condition precedent to the establishment of such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor having been mailed as aforesaid, such Defaulted Interest shall be
paid to the Persons in whose names the Registered Debt Securities of such series
(or their respective Predecessor Debt Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to
the following clause (2). In case a Bearer Debt Security of any series is
surrendered at the office or agency in a Place of Payment for such series in
exchange for a Registered Debt Security of such series after the close of
business at such office or agency on any Special Record Date and before the
opening of business at such office or agency on the related proposed date for
payment of Defaulted Interest, such Bearer Debt Security shall be surrendered
without the coupon relating to such proposed date of payment and Defaulted
Interest will not be payable on such proposed date of payment in respect of the
Registered Debt Security issued in exchange for such Bearer Debt Security, but
will be payable only to the Holder of such coupon when due in accordance with
the provisions of this Indenture.

     (2)  The Company may make payment of any Defaulted Interest on the
Registered Debt Securities of any series in any other lawful manner not
inconsistent with the requirements of any securities exchange on which such Debt
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.

                                       27
<PAGE>

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

     SECTION 308.   PERSONS DEEMED OWNERS. Prior to due presentment of a
Registered Debt Security for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the Person in whose name
such Registered Debt Security is registered as the owner of such Debt Security
for the purpose of receiving payment of principal of (and premium, if any), and
(subject to Sections 305 and 307) interest on, such Registered Debt Security and
for all other purposes whatsoever, whether or not such Registered Debt Security
be overdue, and neither the Company, the Trustee nor any agent of the Company or
the Trustee shall be affected by notice to the contrary.

     Title to any Bearer Debt Security and any coupons appertaining thereto
shall pass by delivery. The Company, the Trustee and any agent of the Company or
the Trustee may treat the Holder of any Bearer Debt Security and the Holder of
any coupon as the absolute owner of such Debt Security or coupon for the purpose
of receiving payment thereof or on account thereof and for all other purposes
whatsoever, whether or not such Debt Security or coupon be overdue, and neither
the Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

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

     Notwithstanding the foregoing, with respect to any global Debt Security,
nothing herein shall prevent the Company, the Trustee, or any agent of the
Company or the Trustee from giving effect to any written certification, proxy or
other authorization furnished by any depository, as a Holder, with respect to
such global Debt Security or impair, as between such depository and owners of
beneficial interests in such global Debt Security, the operation of customary
practices governing the exercise of the rights of such depository (or its
nominee) as Holder of such global Debt Security.

     SECTION 309.   CANCELLATION. All Debt Securities and coupons surrendered
for payment, redemption, repayment at the option of the Holder, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee,
and any such Debt Securities and coupons surrendered directly to the Trustee for
any such purpose shall be promptly canceled by it. The Company may at any time
deliver to the Trustee for cancellation any Debt Securities previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Debt Securities previously
authenticated hereunder which the Company has not issued and sold, and all Debt
Securities so delivered shall be promptly canceled by the Trustee. If the
Company shall so acquire any of the Debt Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented by such Debt Securities unless and until the same are surrendered to
the Trustee for cancellation. No Debt Securities shall be authenticated in lieu
of or in exchange for any Debt Securities canceled as provided in this Section,
except as expressly permitted by or pursuant to this Indenture. Canceled Debt
Securities and coupons held by the Trustee shall be destroyed by the Trustee and
the Trustee shall deliver a certificate of such destruction to the Company,
unless by a Company Order the Company directs their return to it.

                                       28
<PAGE>

     SECTION 310.   COMPUTATION OF INTEREST. Except as otherwise specified as
contemplated by Section 301 with respect to Debt Securities of any series,
interest on the Debt Securities of each series shall be computed on the basis of
a 360-day year consisting of twelve 30-day months.

                                 ARTICLE FOUR
                           SATISFACTION AND DISCHARGE

     SECTION 401.   SATISFACTION AND DISCHARGE OF INDENTURE. This Indenture
shall upon Company Request cease to be of further effect with respect to any
series of Debt Securities specified in such Company Request (except as
hereinafter provided in this Section 401), the Trustee, upon receipt of a
Company Order, and at the expense of the Company, shall execute proper
instruments acknowledging satisfaction and discharge of this Indenture as to
such series when

     (1)  either

     (A)  all Debt Securities of such series theretofore authenticated and
delivered and all coupons, if any, appertaining thereto (other than (i) coupons
appertaining to Bearer Debt Securities surrendered for exchange for Registered
Debt Securities and maturing after such exchange, whose surrender is not
required or has been waived as provided in Section 305, (ii) Debt Securities and
coupons of such series which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 306, (iii) coupons appertaining to
Debt Securities called for redemption and maturing after the relevant Redemption
Date, whose surrender has been waived as provided in Section 1106, and (iv) Debt
Securities and coupons of such series for whose payment money has theretofore
been deposited in trust or segregated and held in trust by the Company and
thereafter repaid to the Company or discharged from such trust, as provided in
Section 1003) have been delivered to the Trustee for cancellation; or(B) all
Debt Securities of such series and, in the case of (i) or (ii) below, any
coupons appertaining thereto not theretofore delivered to the Trustee for
cancellation

     (i)    have become due and payable, or

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

     (iii)  if redeemable at the option of the Company, are to be called for
redemption within one year under arrangements satisfactory to the Trustee for
the giving of notice of redemption by the Trustee in the name, and at the
expense, of the Company, and the Company, in the case of (i), (ii) or(iii)
above, has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust for the purpose an amount in the currency or currencies,
currency unit or units or composite currency or currencies in which the Debt
Securities of such series are payable, sufficient to pay and discharge the
entire indebtedness on such Debt Securities and such coupons not theretofore
delivered to the Trustee for cancellation, for principal (and premium, if any)
and interest, and any Additional Amounts with respect thereto, to the date of
such deposit (in the case of Debt Securities which have become due and payable)
or to the Stated Maturity or Redemption Date, as the case may be;

     (2)  the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and

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

                                       29
<PAGE>

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee and any predecessor Trustee under
Section 606, the obligations of the Company to any Authenticating Agent under
Section 611 and, if money shall have been deposited with and held by the Trustee
pursuant to subclause (B) of clause (1) of this Section, and the obligations of
the Company and the Trustee with respect to the Securities of such series under
Sections 305, 306, 402, 1002 and 1003, with respect to the payment of Additional
Amounts, if any, with respect to such Securities as contemplated by Section 1015
and with respect to any rights to convert or exchange such Securities into
Common Shares or Preferred Shares or other securities or property, shall
survive.

     SECTION 402.   APPLICATION OF TRUST FUNDS. Subject to the provisions of the
last paragraph of Section 1003, all money deposited with the Trustee pursuant to
Section 401 shall be held in trust and applied by it, in accordance with the
provisions of the Debt Securities, the coupons and this Indenture, to the
payment, either directly or through any Paying Agent (other than the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal (and premium, if any), and interest, if any,
and Additional Amounts, if any, for whose payment such money has been deposited
with or received by the Trustee, but such money need not be segregated from
other funds except to the extent required by law.

                                 ARTICLE FIVE
                                    REMEDIES

     SECTION 501.   EVENTS OF DEFAULT. "Event of Default," wherever used herein
with respect to any particular series of Debt Securities, means any one of the
following events (whatever the reason for such Event of Default and whether or
not it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body):

     (1)  default in the payment of any interest on, or any Additional Amounts
payable in respect of any interest on, any Debt Security of that series or of
any coupon appertaining thereto, when such interest, Additional Amounts or
coupon becomes due and payable, and continuance of such default for a period of
30 days; or

     (2)  default in the payment of any principal of or premium, if any, on, or
any Additional Amounts payable in respect of any principal of or premium, if
any, on, any Debt Security of that series when it becomes due and payable at its
Maturity (whether at Stated Maturity, upon redemption, notice of option to elect
repayment or otherwise); or

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

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

     (5)  default under any bond, note, debenture or other evidence of
indebtedness of the Company or any of its Subsidiaries (including an event of
default with respect to any other series of Debt

                                       30
<PAGE>

Securities), or under any mortgage, indenture or other instrument under which
there may be issued or by which there may be secured or evidenced any
indebtedness of the Company or any of its Subsidiaries, whether such
indebtedness exists on the date of this Indenture or shall hereafter be created,
which results in such indebtedness in an aggregate principal amount exceeding
$20,000,000 becoming or being declared due and payable prior to the date on
which it would otherwise have become due and payable, or which constitutes a
failure to pay at maturity or other scheduled payment date (after expiration of
any applicable grace period) such indebtedness in an aggregate principal amount
exceeding $20,000,000, but only if such indebtedness is not discharged or such
acceleration is not rescinded or annulled within 10 days after there shall have
been given, by registered or certified mail, to the Company by the Trustee or to
the Company and the Trustee by the Holders of at least 10% in aggregate
principal amount of the Outstanding Debt Securities of that series a written
notice specifying such default and requiring the Company to cause such
indebtedness to be discharged or cause such acceleration to be rescinded or
annulled and stating that such notice is a "Notice of Default" hereunder; or

     (6)  the Company or any Significant Subsidiary of the Company pursuant to
or within the meaning of any Bankruptcy Law:

     (A)  commences a voluntary case or proceeding,

     (B)  consents to the entry of an order or decree for relief against it in
an involuntary case or to the commencement of any bankruptcy or insolvency case
or proceeding against it,

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

     (D)  makes a general assignment for the benefit of its creditors; or

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

     (A)  is for relief against the Company or any Significant Subsidiary of the
Company in an involuntary case,

     (B)  adjudges the Company or any Significant Subsidiary of the Company a
bankrupt or insolvent,

     (C)  approves as properly filed a petition seeking reorganization,
arrangement, adjustment or composition of or in respect of the Company or any
Significant Subsidiary of the Company,

     (D)  appoints a Custodian of the Company or any Significant Subsidiary of
the Company or for all or any substantial part of the property of the Company or
any Significant Subsidiary of the Company, or

     (E)  orders the winding up or liquidation of the Company or any Significant
Subsidiary of the Company, and the order or decree described in this clause (7)
remains unstayed and in effect for 60 days; or

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

                                       31
<PAGE>

     As used in this Section 501, the term "Bankruptcy Law" means Title 11 U.S.
Code or any similar Federal or State law for the relief of debtors and the term
"Custodian" means any receiver, trustee, assignee, liquidator, sequestrator or
other similar official under any Bankruptcy Law.

     SECTION 502.   ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT. If an
Event of Default with respect to Debt Securities of any series at the time
outstanding occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in principal amount of the Outstanding Debt
Securities of that series may declare the principal (or, if any Debt Securities
are Original Issue Discount Debt Securities or Indexed Debt Securities, such
portion of the principal as may be specified in the terms thereof) of all the
Debt Securities of that series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by the Holders), and upon
any such declaration such principal or specified portion thereof shall become
immediately due and payable.

     At any time after such a declaration of acceleration with respect to Debt
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of not less than a majority in principal amount of
the Outstanding Debt Securities of that series, by written notice to the Company
and the Trustee, may rescind and annul such declaration and its consequences if:

     (1)  the Company has paid or deposited with the Trustee a sum sufficient to
pay in the currency, currency unit or composite currency in which the Debt
Securities of such series are payable (except as may be otherwise specified
pursuant to Section 301 for the Debt Securities of such series):

     (A)  all overdue installments of interest on and any Additional Amounts
payable in respect of all Outstanding Debt Securities of that series and any
related coupons,

     (B)  the principal of (and premium, if any, on) any Outstanding Debt
Securities of that series which have become due otherwise than by such
declaration of acceleration and interest thereon at the rate or rates borne by
or provided for in such Debt Securities,

     (C)  to the extent that payment of such interest is lawful, interest upon
overdue installments of interest and any Additional Amounts at the rate or rates
borne by or provided for in such Debt Securities, and

     (D)  all sums paid or advanced by the Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel; and

     (2)  all Events of Default with respect to Debt Securities of that series,
other than the nonpayment of the principal of (or premium, if any) or interest
on Debt Securities of that series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section
513.

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

     SECTION 503.   COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE. The Company covenants that if:

     (1)  default is made in the payment of any installment of interest or
Additional Amounts, if any, on any Debt Security of any series and any related
coupon when such interest or Additional Amount becomes due and payable and such
default continues for a period of 30 days, or

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<PAGE>

     (2)  default is made in the payment of the principal of (or premium, if
any, on) any Debt Security of any series at its Maturity, then the Company will,
upon demand of the Trustee, pay to the Trustee, for the benefit of the Holders
of such Debt Securities of such series and coupons, the whole amount then due
and payable on such Debt Securities and coupons for principal (and premium, if
any) and interest and Additional Amounts, with interest upon any overdue
principal (and premium, if any) and, to the extent that payment of such interest
shall be legally enforceable, upon any overdue installments of interest or
Additional Amounts, if any, at the rate or rates borne by or provided for in
such Debt Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

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

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

     SECTION 504.   TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency of
any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to
the Company or any other obligor upon the Debt Securities or the property of the
Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Debt Securities of any series shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the payment
of overdue principal, premium, if any, or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise:

     (i)  to file and prove a claim for the whole amount, or such lesser amount
as may be provided for in the Debt Securities of such series, of principal (and
premium, if any) and interest and Additional Amounts, if any, owing and unpaid
in respect of the Debt Securities and to file such other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders allowed
in such judicial proceeding, and

     (ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same; and any custodian,
receiver, assignee, trustee, liquidator, sequestrator (or other similar
official) in any such judicial proceeding is hereby authorized by each Holder of
Debt Securities of such series and coupons to make such payments to the Trustee,
and in the event that the Trustee shall consent to the making of such payments
directly to the Holders, to pay to the Trustee any amount due to it for the
reasonable compensation, expenses, disbursements and advances of the Trustee and
any predecessor Trustee, their agents and counsel, and any other amounts due the
Trustee or any predecessor Trustee under Section 606.

                                       33
<PAGE>

     Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder of a Debt
Security or coupon any plan of reorganization, arrangement, adjustment or
composition affecting the Debt Securities or coupons or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder of a Debt Security or coupon in any such proceeding.

     SECTION 505.   TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF DEBT
SECURITIES OR COUPONS. All rights of action and claims under this Indenture or
any of the Debt Securities or coupons may be prosecuted and enforced by the
Trustee without the possession of any of the Debt Securities or coupons or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Debt Securities and coupons in respect of which such judgment has been
recovered.

     SECTION 506.   APPLICATION OF MONEY COLLECTED. Any money collected by the
Trustee pursuant to this Article shall be applied in the following order, at the
date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal (or premium, if any) or interest and any
Additional Amounts, upon presentation of the Debt Securities or coupons, or
both, as the case may be, and the notation thereon of the payment if only
partially paid and upon surrender thereof if fully paid:

     FIRST:  To the payment of all amounts due the Trustee and any predecessor
Trustee under Section 606;

     SECOND: To the payment of amounts then due and unpaid to the holders of the
Senior Indebtedness, to the extent required by Article XVI;

     THIRD:  To the payment of the amounts then due and unpaid upon the Debt
Securities and coupons for principal (and premium, if any) and interest and any
Additional Amounts 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 aggregate amounts due and payable on such Debt Securities and
coupons for principal (and premium, if any), interest and Additional Amounts,
respectively; and

     FOURTH: To the payment of the remainder, if any, to the Company.

     SECTION 507.   LIMITATION ON SUITS. No Holder of any Debt Security of any
series or any related coupon shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of
a receiver or trustee, or for any other remedy hereunder, unless:

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

     (2)  the Holders of not less than 25% in principal amount of the
Outstanding Debt Securities of that series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in its
own name as Trustee hereunder;

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

                                       34
<PAGE>

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

     (5)  no direction inconsistent with such written request has been given to
the Trustee during such 60-day period by the Holders of a majority in principal
amount of the Outstanding Debt Securities of that series; it being understood
and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture
to affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all such Holders.

     SECTION 508.   UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
PREMIUM, IF ANY, INTEREST AND ADDITIONAL AMOUNTS. Notwithstanding any other
provision in this Indenture, the Holder of any Debt Security or coupon shall
have the right which is absolute and unconditional to receive payment of the
principal of (and premium, if any) and (subject to Sections 305 and 307)
interest on, and any Additional Amounts in respect of, such Debt Security or
payment of such coupon on the respective due dates expressed in such Debt
Security or coupon (or, in the case of redemption, on the Redemption Date or, in
the case of repayment at the option of the Holder, on the Repayment Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

     SECTION 509.   RESTORATION OF RIGHTS AND REMEDIES. If the Trustee or any
Holder of a Debt Security or coupon has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued
or abandoned for any reason, or has been determined adversely to the Trustee or
to such Holder, then and in every such case the Company, the Trustee and the
Holders of Debt Securities and coupons shall, subject to any determination in
such proceeding, be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
the Holders shall continue as though no such proceeding had been instituted.

     SECTION 510.   RIGHTS AND REMEDIES CUMULATIVE. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Debt Securities or coupons in the last paragraph of Section 306, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders of
Debt Securities or coupons is intended to be exclusive of any other right or
remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

     SECTION 511.   DELAY OR OMISSION NOT WAIVER. No delay or omission of the
Trustee or of any Holder of any Debt Security or coupon to exercise any right or
remedy accruing upon any Event of Default shall impair any such right or remedy
or constitute a waiver of any such Event of Default or an acquiescence therein.
Every right and remedy given by this Article Five or by law to the Trustee or to
the Holders may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders of Debt Securities or coupons, as
the case may be.

     SECTION 512.   CONTROL BY HOLDERS OF DEBT SECURITIES. The Holders of not
less than a majority in principal amount of the Outstanding Debt Securities of
any series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on the Trustee with respect to the Debt Securities
of such series, provided that

                                       35
<PAGE>

     (1)  such direction shall not be in conflict with any rule of law or with
this Indenture,

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

     (3)  the Trustee need not take any action which might involve it in
personal liability or be unduly prejudicial to the Holders of Debt Securities of
such series not joining therein.

     SECTION 513.   WAIVER OF PAST DEFAULTS. The Holders of not less than a
majority in principal amount of the Outstanding Debt Securities of any series
may on behalf of the Holders of all the Debt Securities of such series and any
related coupons waive any past default hereunder with respect to such series and
its consequences, except a default

     (1)  in the payment of the principal of (or premium, if any) or interest on
or Additional Amounts payable in respect of any Debt Security of such series or
any related coupons, or

     (2)  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
Outstanding Debt Security of such series affected.

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

     SECTION 514.   WAIVER OF USURY, STAY OR EXTENSION LAWS. The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not 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 515.   UNDERTAKING FOR COSTS. All parties to this Indenture agree,
and each Holder of any Debt Security by his acceptance thereof shall be deemed
to have agreed, that any court may in its discretion require in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Trustee for any action taken or omitted by it as Trustee, the filing by any
party litigant in such suit of any undertaking to pay the costs of such suit,
and that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in such suit having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit
instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the
Outstanding Debt Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if
any) or interest on any Debt Security on or after the respective Stated
Maturities expressed in such Debt Security (or, in the case of redemption, on or
after the Redemption Date or, in the case of repayment at the option of the
Holder, on or after the Repayment Date) or for the enforcement of the right, if
any, to convert or exchange any Debt Security into Common Shares, Preferred
Shares or other securities or property in accordance with its terms.

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                                  ARTICLE SIX
                                  THE TRUSTEE

     SECTION 601.   NOTICE OF DEFAULTS. Within 90 days after the occurrence of
any default hereunder with respect to the Debt Securities of any series, the
Trustee shall transmit in the manner and to the extent provided in TIA Section
313(c), notice of such default hereunder known to the Trustee, unless such
default shall have been cured or waived; provided, however, that, except in the
case of a default in the payment of the principal of (or premium, if any) or
interest on or any Additional Amounts with respect to any Debt Security of such
series, or in the payment of any sinking fund installment with respect to the
Debt Securities of such series, the Trustee shall be protected in withholding
such notice if and so long as a Responsible Officer of the Trustee in good faith
determines, that the withholding of such notice is in the interests of the
Holders of the Debt Securities and coupons of such series; and provided further
that in the case of any default or breach of the character specified in Section
501(4) with respect to the Debt Securities and coupons of such series, no such
notice to Holders shall be given until at least 60 days after the occurrence
thereof. For the purpose of this Section, the term "default" means any event
which is, or after notice or lapse of time or both would become, an Event of
Default with respect to the Debt Securities of such series.

     SECTION 602.   CERTAIN RIGHTS OF TRUSTEE. Subject to the provisions of TIA
Section 315(a) through 315(d):

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

     (2)  any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order (other than
delivery of any Debt Security, together with any coupons appertaining thereto,
to the Trustee for authentication and delivery pursuant to Section 303 which
shall be sufficiently evidenced as provided therein) and any resolution of the
Board of Directors may be sufficiently evidenced by a Board Resolution;

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

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

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

     (6)  the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, coupon or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall

                                       37
<PAGE>

determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Company, personally or by agent
or attorney;

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

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

     The Trustee shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it.

     Except during the continuance of an Event of Default, the Trustee
undertakes to perform only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee.

     SECTION 603.   NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF DEBT SECURITIES.
The recitals contained herein and in the Debt Securities, except the Trustee's
certificate of authentication, and in any coupons shall be taken as the
statements of the Company, and neither the Trustee nor any Authenticating Agent
assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the
Debt Securities or coupons, except that the Trustee represents that it is duly
authorized to execute and deliver this Indenture, authenticate the Debt
Securities and perform its obligations hereunder. Neither the Trustee nor any
Authenticating Agent shall be accountable for the use or application by the
Company of Debt Securities or the proceeds thereof.

     SECTION 604.   MAY HOLD DEBT SECURITIES. The Trustee, any Paying Agent,
Debt Security Registrar, Authenticating Agent or any other agent of the Company,
in its individual or any other capacity, may become the owner or pledgee of Debt
Securities and coupons and, subject to TIA Sections 310(b) and 311, may
otherwise deal with the Company with the same rights it would have if it were
not Trustee, Paying Agent, Debt Security Registrar, Authenticating Agent or such
other agent.

     SECTION 605.   MONEY HELD IN TRUST. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed in writing with the Company.

     SECTION 606. COMPENSATION AND REIMBURSEMENT.  The Company agrees:

     (1)  to pay to the Trustee from time to time reasonable compensation for
all services rendered by it hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust);

     (2)  except as otherwise expressly provided herein, to reimburse each of
the Trustee and any predecessor Trustee upon its request for all reasonable
expenses, disbursements and advances incurred or made by the Trustee in
accordance with any provision of this Indenture (including the reasonable

                                       38
<PAGE>

compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to its
negligence or bad faith; and

     (3)  to indemnify each of the Trustee and any predecessor Trustee for, and
to hold it harmless against, any loss, liability or expense incurred without
negligence or bad faith on its own part, arising out of or in connection with
the acceptance or administration of the trust or trusts hereunder, including the
costs and expenses of defending itself against any claim or liability in
connection with the exercise or performance of any of its powers or duties
hereunder.

     When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Section 501(6) or Section 501(7), 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.

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

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

     SECTION 607.   CORPORATE TRUSTEE REQUIRED; ELIGIBILITY; CONFLICTING
INTERESTS. There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a) (1) and shall have a
combined capital and surplus of at least $50,000,000 (or which trust company
shall have a combined capital and surplus of at least $10,000,000 and whose
ultimate parent holding company shall have a combined capital and surplus of at
least $50,000,000). If such corporation (or ultimate parent holding company, as
the case may be) publishes reports of condition at least annually, pursuant to
law or the requirements of Federal, State, Territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section, the
combined capital and surplus of such corporation (or ultimate parent holding
company, as the case may be) shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

     SECTION 608.   RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

     (a)  No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 609.

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

     (c)  The Trustee may be removed at any time with respect to the Debt
Securities of any series by Act of the Holders of a majority in principal amount
of the Outstanding Debt Securities of such series delivered to the Trustee and
to the Company.

                                       39
<PAGE>

     (d)  If at any time:

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

     (2)  the Trustee shall cease to be eligible under Section 607 and shall
fail to resign after written request therefor by the Company or by any Holder of
a Debt Security who has been a bona fide Holder of a Debt Security for at least
six months, or

     (3)  the Trustee shall become incapable of acting or shall be adjudged a
bankrupt or insolvent or a receiver of the Trustee or of its property shall be
appointed or any public officer shall take charge or control of the Trustee or
of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, (i) the Company by or pursuant to a Board
Resolution may remove the Trustee and appoint a successor Trustee with respect
to all Debt Securities, or (ii) subject to TIA Section 315(e), any Holder of a
Debt Security who has been a bona fide Holder of a Debt Security for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee with respect
to all Debt Securities and the appointment of a successor Trustee or Trustees.

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

     (f)  The Company shall give notice of each resignation and each removal of
the Trustee with respect to the Debt Securities of any series and each
appointment of a successor Trustee with respect to the Debt Securities of any
series in the manner provided for notices to the Holders of Debt Securities in
section 106. Each notice shall include the name of the successor Trustee with
respect to the Debt Securities of such series and the address of its Corporate
Trust Office.

     SECTION 609.   ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

     (a)  In case of the appointment hereunder of a successor Trustee with
respect to all Debt Securities, every such successor Trustee 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

                                       40
<PAGE>

conveyance, shall become vested with all the rights, powers, trusts and duties
of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee, and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder, subject nevertheless to its lien and claim, if any, provided
for in Section 606.

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

     SECTION 610.   MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all of the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Debt Securities or coupons 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 Debt Securities or coupons so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Debt Securities or coupons. In case any Debt Securities or
coupons shall not have been authenticated by such predecessor Trustee, any such
successor Trustee may authenticate and deliver such

                                       41
<PAGE>

Debt Securities or coupons, in either its own name or that of its predecessor
Trustee, with the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee.

     SECTION 611.   APPOINTMENT OF AUTHENTICATING AGENT. At any time when any of
the Debt Securities remain Outstanding, the Trustee may appoint an
Authenticating Agent or Agents with respect to one or more series of Debt
Securities which shall be authorized to act on behalf of the Trustee to
authenticate Debt Securities of such series issued upon exchange, registration
of transfer or partial redemption or repayment thereof, and Debt 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. Any such appointment shall be evidenced by an instrument in writing
signed by a Responsible Officer of the Trustee, a copy of which instrument shall
be promptly furnished to the Company. Wherever reference is made in this
Indenture to the authentication and delivery of Debt Securities by the Trustee
or the Trustee's certificate of authentication, such reference shall be deemed
to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a bank or trust company or
corporation organized and doing business and in good standing under the laws of
the United States of America or of any State or the District of Columbia,
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of not less than $50,000,000 and subject to supervision or
examination by Federal or state authorities. If such Authenticating Agent
publishes reports of condition at least annually, pursuant to law or the
requirements of the aforesaid supervising or examining authority, then for the
purposes of this Section, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. In case at any
time an Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, such Authenticating Agent shall resign immediately
in the manner and with the effect specified in this section.

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

     An Authenticating Agent for any series of Debt Securities may at any time
resign by giving written notice of resignation to the Trustee for such series
and to the Company. The Trustee for any series of Debt Securities may at any
time terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section, the Trustee for such series may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment to all Holders of Debt Securities of the series with
respect to which such Authenticating Agent will serve in the manner set forth in
Section 106. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all the rights, powers and duties
of its predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section.

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

                                       42
<PAGE>

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

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

                                              [____________________], as Trustee

                                              By ____________________________
                                                 as Authenticating Agent

                                              By ____________________________
                                                 as Authorized Officer

                                 ARTICLE SEVEN
               HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

     SECTION 701.   DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS. Every Holder
of Debt Securities or coupons, by receiving and holding the same, agrees with
the Company and the Trustee that neither the Company nor the Trustee nor any
Authenticating Agent nor any Paying Agent nor any Debt Security Registrar shall
be held accountable by reason of the disclosure of any information as to the
names and addresses of the Holders of Debt Securities in accordance with TIA
Section 312, regardless of the source from which such information was derived,
and that the Trustee shall not be held accountable by reason of mailing any
material pursuant to a request made under TIA Section 312(b).

     SECTION 702.   REPORTS BY TRUSTEE. Within 60 days after May 15 of each year
commencing with the first May 15 after the first issuance of Debt Securities
pursuant to this Indenture, the Trustee shall transmit by mail to all Holders of
Debt Securities as provided in TIA Section 313(c) a brief report dated as of
such May 15 if required by TIA Section 313(a).

     SECTION 703.   REPORTS BY COMPANY.  The Company will:

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

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

                                       43
<PAGE>

     (3)  transmit by mail to the Holders of Debt Securities, within 30 days
after the filing thereof with the Trustee, in the manner and to the extent
provided in TIA Section 313(c), such summaries of any information, documents and
reports required to be filed by the Company pursuant to paragraphs (1) and (2)
of this Section as may be required by rules and regulations prescribed from time
to time by the Commission.

     SECTION 704.   COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.
The Company will furnish or cause to be furnished to the Trustee:

     (a)  semi-annually, not later than 15 days after the Regular Record Date
for interest for each series of Debt Securities, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Holders of
Registered Debt Securities of such series as of such Regular Record Date, or if
there is no Regular Record Date for interest for such series of Debt Securities,
semiannually, upon such dates as are set forth in the Board Resolution or
indenture supplemental hereto authorizing such series, 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, so long as the Trustee is the Debt
Security Registrar, no such list shall be required to be furnished.

                                 ARTICLE EIGHT
                CONSOLIDATION, MERGER, SALE, LEASE OR CONVEYANCE

     SECTION 801.   CONSOLIDATIONS AND MERGERS OF COMPANY AND SALES, LEASES AND
CONVEYANCES PERMITTED SUBJECT TO CERTAIN CONDITIONS. The Company will not, in
any transaction or series of related transactions, consolidate with, or sell,
lease, assign, transfer or otherwise convey all or substantially all of its
assets to, or merge with or into any other Person unless (i) either the Company
shall be the continuing corporation, or the successor Person (if other than the
Company) formed by or resulting from any such consolidation or merger or which
shall have received the transfer of such assets is a corporation organized and
existing under the laws of the United States of America or a State thereof or
the District of Columbia and shall expressly assume, by supplemental indenture
executed by such successor corporation and delivered by it to the Trustee (which
supplemental indenture shall comply with Article Nine hereof and shall be
reasonably satisfactory to the Trustee), the due and punctual payment of the
principal of (and premium, if any) and interest, if any, on and all Additional
Amounts, if any, payable in respect of, all of the Outstanding Debt Securities,
according to their tenor, and the due and punctual performance and observance of
all of the other covenants and conditions contained in this Indenture and the
Debt Securities to be performed or observed by the Company; (ii) immediately
after giving effect to such transaction and treating any Debt (including
Acquired Debt) which becomes an obligation of the Company or any of its
Subsidiaries as a result thereof as having been incurred by the Company or such
Subsidiary at the time of such transaction, no Event of Default, and no event
which, after notice or the lapse of time, or both, would become an Event of
Default, shall have occurred and shall be continuing; and (iii) the Company
shall have delivered to the Trustee the Officers' Certificate and Opinion of
Counsel required pursuant to Section 803 below. In the event that the Company is
not the continuing corporation, then, for purposes of clause (ii) of the
preceding sentence, the successor corporation shall be deemed to be the
"Company" referred to in such clause (ii).

     SECTION 802.   RIGHTS AND DUTIES OF SUCCESSOR CORPORATION. In case of any
such consolidation, merger, sale, lease, assignment, transfer or conveyance and
upon any such assumption by the successor corporation, such successor
corporation shall succeed to and be substituted for and may exercise every right
and power of the Company, with the same effect as if it had been named as the

                                       44
<PAGE>

"Company" herein; and the predecessor corporation, except in the case of a
lease, shall be released from any further obligation under this Indenture and
the Debt Securities. Such successor corporation thereupon may cause to be
signed, and may issue either in its own name or in the name of the Company, any
or all of the Debt Securities issuable hereunder which theretofore shall not
have been signed by the Company and delivered to the Trustee; and, upon the
order of such successor corporation, instead of the Company, and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee
shall authenticate and shall deliver any Debt Securities which previously shall
have been signed and delivered by the officers of the Company to the Trustee for
authentication, and any Debt Securities which such successor corporation
thereafter shall cause to be signed and delivered to the Trustee for that
purpose. All the Debt Securities so issued shall in all respects have the same
legal rank and benefit under this Indenture as the Debt Securities theretofore
or thereafter issued in accordance with the terms of this Indenture.

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

     SECTION 803.   OFFICERS' CERTIFICATE AND OPINION OF COUNSEL. Any
consolidation, merger, sale, lease, assignment, transfer or conveyance permitted
under Section 801 is also subject to the condition precedent that the Trustee
receive an Officers' Certificate and an Opinion of Counsel to the effect that
any such consolidation, merger, sale, lease, assignment, transfer or conveyance,
and the assumption by any successor corporation, complies with the provisions of
this Article and that all conditions precedent herein provided for relating to
such transaction have been complied with.

                                 ARTICLE NINE
                            SUPPLEMENTAL INDENTURES

     SECTION 901.   SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. Without
the consent of any Holders of Debt Securities or coupons, the Company, when
authorized by or pursuant to a Board Resolution, and the Trustee, at any time
and from time to time, may enter into one or more indentures supplemental
hereto, in form satisfactory to the Trustee, for any of the following purposes:

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

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

     (3)  to add any additional Events of Default for the benefit of the Holders
of all or any series of Debt Securities (and if such Events of Default are to be
for the benefit of less than all series of Debt Securities, stating that such
Events of Default are expressly being included solely for the benefit of such
series); provided, however, that in respect of any such additional Events of
Default such supplemental indenture may provide for a particular period of grace
after default (which period may be shorter or longer than that allowed in the
case of other defaults) or may provide for an immediate enforcement upon such
default or may limit the remedies available to the Trustee upon such default or
may limit the right of the Holders of a majority in aggregate principal amount
of that or those series of Debt Securities to which such additional Events of
Default apply to waive such default; or

                                       45
<PAGE>

     (4)  to add to or change any of the provisions of this Indenture to provide
that Bearer Debt Securities may be registrable as to principal, to change or
eliminate any restrictions on the payment of principal of or any premium or
interest on Bearer Debt Securities, to permit Bearer Debt Securities to be
issued in exchange for Registered Debt Securities, to permit Bearer Debt
Securities to be issued in exchange for Bearer Debt Securities of other
authorized denominations or to permit or facilitate the issuance of Debt
Securities in uncertificated form, provided that any such action shall not
adversely affect the interests of the Holders of Debt Securities of any series
or any related coupons in any material respect; or

     (5)  to change or eliminate any of the provisions of this Indenture,
provided that no such change or elimination shall become effective with respect
to the Outstanding Debt Securities of any series issued hereunder which were
first issued prior to the date of such change or elimination and which are
entitled to the benefit of such provision; or

     (6)  to secure the Debt Securities; or

     (7)  to establish the form or terms of Debt Securities of any series and
any related coupons as permitted by Sections 201 and 301, including the
provisions and procedures if applicable, relating to Debt Securities convertible
into Common Shares or Preferred Shares or other securities or property, as the
case may be; or

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

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

     (10) to supplement any of the provisions of this Indenture to such extent
as shall be necessary to permit or facilitate the discharge, defeasance or
covenant defeasance, as the case may be, of any series of Debt Securities
pursuant to Sections 401, 1402 and 1403; provided that any such action shall not
adversely affect the interests of the Holders of Debt Securities of such series
and any related coupons or any other series of Debt Securities in any material
respect.

     SECTION 902.   SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the
consent of the Holders of not less than a majority in principal amount of all
Outstanding Debt Securities of each series affected by such supplemental
indenture, by Act of said Holders delivered to the Company and the Trustee, the
Company, when authorized by or pursuant to a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of the Debt Securities of such series or of
modifying in any manner the rights of the Holders of Debt Securities of such
series and any related coupons under this Indenture; provided, however, that no
such supplemental indenture shall, without the consent of the Holder of each
Outstanding Debt Security affected thereby:

     (1)  change the Stated Maturity of the principal of (or premium, if any,
on) or any installment of principal of, or premium, if any, or interest, if any,
on, or Additional Amounts, if any, with respect to,

                                       46
<PAGE>

any Debt Security; or reduce the principal amount thereof or the rate or amount
of interest thereon or any Additional Amounts payable in respect thereof, or any
premium payable thereon, or change any obligation of the Company to pay
Additional Amounts pursuant to Section 1015 (except as contemplated by Section
801 and permitted by Section 901(1)), or reduce the amount of the principal of
an Original Issue Discount Debt Security that would be due and payable upon a
declaration of acceleration of the maturity thereof pursuant to Section 502 or
the amount thereof provable in bankruptcy pursuant to Section 504, or adversely
affect any right of the Holder of any Debt Security to repayment of such Debt
Security at such Holder's option, or change any Place of Payment where, or the
currency or currencies, currency unit or units or composite currency or
currencies in which, the principal of any Debt Security or any premium or
interest thereon or any Additional Amounts in respect thereof is payable, or
impair the right to institute suit for the enforcement of any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after
the Redemption Date or, in the case of repayment at the option of Holder, on or
after the Repayment Date, as the case may be),or

     (2)  reduce the percentage in principal amount of the Outstanding Debt
Securities of any series, the consent of whose Holders is required for any such
supplemental indenture, or the consent of whose Holders is required for any
waiver with respect to such series (of compliance with certain provisions of
this Indenture or certain defaults hereunder and their consequences) provided
for in this Indenture, or reduce the requirements of Section 1504 for quorum or
voting, or

     (3)  modify any of the provisions of this Section, Section 513 or Section
1013 except to increase the percentage required to effect such action or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each Outstanding Debt Security
affected thereby, or

     (4)  make any change that adversely affects the right, if any, to convert
or exchange any Debt Security for Common Shares, Preferred Shares or other
securities or property in accordance with its terms. It shall not be necessary
for any Act of Holders under this Section to approve the particular form of any
proposed supplemental indenture, but it shall be sufficient if such Act shall
approve the substance thereof. A supplemental indenture which changes or
eliminates any covenant or other provision of this Indenture which has expressly
been included solely for the benefit of one or more particular series of Debt
Securities, or which modifies the rights of the Holders of Debt Securities of
such series with respect to such covenant or other provision, shall be deemed
not to affect the rights under this Indenture of the Holders of Debt Securities
of any other series.

     SECTION 903.   EXECUTION OF SUPPLEMENTAL INDENTURES. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modification thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

     SECTION 904.   EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of any
supplemental indenture under this Article Nine, this Indenture shall be modified
in accordance therewith, and such supplemental indenture shall form a part of
this Indenture for all purposes; and every Holder of Debt Securities theretofore
or thereafter authenticated and delivered hereunder and of any coupon
appertaining thereto shall be bound thereby.

                                       47
<PAGE>

     SECTION 905.   CONFORMITY WITH TRUST INDENTURE ACT. Every supplemental
indenture executed pursuant to this Article Nine shall conform to the
requirements of the Trust Indenture Act as then in effect.

     SECTION 906.   REFERENCE IN DEBT SECURITIES TO SUPPLEMENTAL INDENTURES.
Debt Securities of any series authenticated and delivered after the execution of
any supplemental indenture pursuant to this Article Nine may, and shall, if
required by the Trustee, bear a notation in form approved by the Trustee as to
any matter provided for in such supplemental indenture. If the Company shall so
determine, new Debt Securities of any series so modified as to conform, in the
opinion of the Trustee and the Company, to any such supplemental indenture may
be prepared and executed by the Company and authenticated and delivered by the
Trustee in exchange for Outstanding Debt Securities of such series.

                                  ARTICLE TEN
                                   COVENANTS

     SECTION 1001.  PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, INTEREST AND
ADDITIONAL AMOUNTS. The Company covenants and agrees for the benefit of the
Holders of each series of Debt Securities that it will duly and punctually pay
the principal of (and premium, if any) and interest on and any Additional
Amounts payable in respect of the Debt Securities of that series in accordance
with the terms of such series of Debt Securities, any coupons appertaining
thereto and this Indenture. Unless otherwise specified as contemplated by
Section 301 with respect to any series of Debt Securities, any interest due on
and any Additional Amounts payable in respect of Bearer Debt Securities on or
before Maturity, other than Additional Amounts, if any, payable as provided in
Section 1015 in respect of principal of (or premium, if any, on) such a Debt
Security, shall be payable only upon presentation and surrender of the several
coupons for such interest installments as are evidenced thereby as they
severally mature.

     SECTION 1002.  MAINTENANCE OF OFFICE OR AGENCY. If Debt Securities of a
series are issuable only as Registered Debt Securities, the Company shall
maintain in each Place of Payment for any series of Debt Securities an office or
agency where Debt Securities of that series may be presented or surrendered for
payment or conversion, where Debt Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Debt Securities of that series and this
Indenture may be served. If Debt Securities of a series are issuable as Bearer
Debt Securities, the Company will maintain: (A) in the [Borough of Manhattan,
The City of New York], an office or agency where any Registered Debt Securities
of that series may be presented or surrendered for payment or conversion, where
any Registered Debt Securities of that series may be surrendered for
registration of transfer, where Debt Securities of that series may be
surrendered for exchange, where notices and demands to or upon the Company in
respect of the Debt Securities of that series and this Indenture may be served
and where Bearer Debt Securities of that series and related coupons may be
presented or surrendered for payment or conversion in the circumstances
described in the following paragraph (and not otherwise); (B) subject to any
laws or regulations applicable thereto, in a Place of Payment for that series
which is located outside the United States, an office or agency where Debt
Securities of that series and related coupons may be presented and surrendered
for payment (including payment of any Additional Amounts payable on Debt
Securities of that series pursuant to Section 1015) or conversion; provided,
however, that if the Debt Securities of that series are listed on the Luxembourg
Stock Exchange or any other stock exchange located outside the United States and
such stock exchange shall so require, the Company will maintain a Paying Agent
for the Debt Securities of that series in Luxembourg or any other required city
located outside the United States, as the case may be, so long as the Debt
Securities of that series are listed on such exchange; and (C) subject to any
laws or regulations applicable thereto, in a Place of Payment for that series
located outside the United States an

                                       48
<PAGE>

office or agency where any Registered Debt Securities of that series may be
surrendered for registration of transfer, where Debt Securities of that series
may be surrendered for exchange and where notices and demands to or upon the
Company in respect of the Debt Securities of that series and this Indenture may
be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of each such office or agency. If at
any time the Company shall fail to maintain any such required office or agency
or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee (and the Company hereby appoints the
Trustee its agent to receive all such presentations, surrenders, notices and
demands), except that Bearer Debt Securities of that series and the related
coupons may be presented and surrendered for payment (including payment of any
Additional Amounts payable on Bearer Debt Securities of that series pursuant to
Section 1015) or conversion at the offices specified in the Debt Security or
pursuant to Section 301 in London, England, and the Company hereby appoints the
same as its agent to receive such presentations, surrenders, notices and
demands.

     Unless otherwise specified with respect to any Debt Securities pursuant to
Section 301, no payment of principal, premium or interest on or Additional
Amounts in respect of Bearer Debt Securities shall be made at any office or
agency of the Company in the United States or by check mailed to any address in
the United States or by transfer to an account maintained with a bank located in
the United States; provided, however, that, if the Debt Securities of a series
are payable in Dollars, payment of principal of and any premium and interest on
any Bearer Debt Security (including any Additional Amounts payable in respect of
Debt Securities of such series pursuant to Section 1015) shall be made at the
office or agency maintained by the Company for such purpose in the [Borough of
Manhattan, The City of New York] if (but only if) payment in Dollars of the full
amount of such principal, premium, interest or Additional Amounts, as the case
may be, at all offices or agencies outside the United States maintained for the
purpose by the Company in accordance with this Indenture is illegal or
effectively precluded by exchange controls or other similar restrictions.

     The Company may from time to time designate one or more other offices or
agencies where the Debt Securities of one or more series may be presented or
surrendered for any or all of such purposes, and may from time to time rescind
such designations; provided, however, that no such designation or rescission
shall in any manner relieve the Company of its obligation to maintain an office
or agency in accordance with the requirements set forth above for Debt
Securities of any series for such purposes. The Company will give prompt written
notice to the Trustee of any such designation or rescission and of any change in
the location of any such other office or agency. Unless otherwise specified
pursuant to Section 301 with respect to a series of Debt Securities, the Company
hereby designates as a Place of Payment for each series of Debt Securities the
office or agency of the Company in the [Borough of Manhattan, The City of New
York], and initially appoints the Trustee at its offices which on the date of
this Indenture are located at ____________________________ in such city as its
agent to receive all such presentations, surrenders, notices and demands and
appoints the Trustee, at its Corporate Trust Office and at its offices in the
[Borough of Manhattan, The City of New York], as Paying Agent and Securities
Registrar. The Company may subsequently appoint a different office or agency in
the [Borough of Manhattan, The City of New York] and a different Paying Agent
and Security Registrar for the Debt Securities of any Series. Unless otherwise
specified with respect to any Debt Securities pursuant to Section 301, if and so
long as the Debt Securities of any series (i) are denominated in a Foreign
Currency or (ii) may be payable in a Foreign Currency, or so long as it is
required under any other provision of this Indenture, then the Company will
maintain with respect to each such series of Debt Securities, or as so required,
at least one exchange rate agent.

     SECTION 1003.  MONEY FOR DEBT SECURITIES PAYMENTS TO BE HELD IN TRUST. If
the Company shall at any time act as its own Paying Agent with respect to any
series of any Debt Securities and any related coupons, it will, on or before
each due date of the principal of (or premium, if

                                       49
<PAGE>

any) or interest on or Additional Amounts in respect of any of the Debt
Securities of that series, segregate and hold in trust for the benefit of the
Persons entitled thereto a sum in the currency or currencies, currency unit or
units or composite currency or currencies in which the Debt Securities of such
series are payable (except as otherwise specified pursuant to Section 301 for
the Debt Securities of such series) sufficient to pay the principal (and
premium, if any) and interest and Additional Amounts so becoming due until such
sums shall be paid to such Persons or otherwise disposed of as herein provided,
and will promptly notify the Trustee of its action or failure so to act.

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

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

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

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

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

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

     Except as otherwise provided with respect to the Debt Securities of any
series pursuant to Section 301, any money deposited with the Trustee or any
Paying Agent, or held by the Company, in trust for the payment of the principal
of (or premium, if any) or interest on, or any Additional Amounts in respect of,
any Debt Security of any series and remaining unclaimed for two years after such
principal (or premium, if any), or interest or Additional Amounts has become due
and payable shall be paid to the Company upon Company Request or (if then held
by the Company) shall be discharged from such trust; and the Holder of such Debt
Security shall thereafter, as an unsecured general creditor, look only to the
Company for payment of such principal of (or premium, if any) or interest on, or
any Additional Amounts in respect of, such Debt Security, and all liability of
the Trustee or such Paying Agent with respect to such trust money, and all
liability of the Company as trustee thereof, shall thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be published
once, in an Authorized Newspaper, notice that such money remains

                                       50
<PAGE>

unclaimed and that, after a date specified therein, which shall not be less than
30 days from the date of such publication, any unclaimed balance of such money
then remaining will be repaid to the Company.

     SECTION 1004. EXISTENCE. Subject to Article Eight, the Company will do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, rights (charter and statutory) and franchises;
provided, however, that the Company will not be required to preserve any right
or franchise if its Board of Directors determines that the preservation thereof
is no longer desirable in the conduct of its business and that the loss thereof
is not disadvantageous in any material respect to the Holders of the Debt
Securities Outstanding under this Indenture.

     SECTION 1005. MAINTENANCE OF PROPERTIES. The Company will cause all of its
properties used or useful in the conduct of its business or the business of any
Subsidiary to be maintained and kept in good condition, repair and working order
and supplied with all necessary equipment and will cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof,
all as in the judgment of the Company may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided, however, that nothing in this Section shall prevent the
Company and its Subsidiaries from selling or otherwise disposing of for value
their respective properties in the ordinary course of business.

     SECTION 1006. INSURANCE. The Company will, and will cause each of its
Subsidiaries to, keep in force upon all of its properties and operations
policies of insurance carried with responsible companies in such amounts and
covering all such risks as shall be customary in the industry in accordance with
prevailing market conditions and availability.

     SECTION 1007. PAYMENT OF TAXES AND OTHER CLAIMS. The Company will pay or
discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or
imposed upon it or any Subsidiary or upon the income, profits or property of the
Company or any Subsidiary, and (2) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a lien upon the property of the
Company or any Subsidiary; provided, however, that the Company will not be
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings.

     SECTION 1008. PROVISION OF FINANCIAL INFORMATION. Whether or not the
Company is subject to Section 13 or 15(d) of the Securities Exchange Act of
1934, for so long as any Debt Securities are Outstanding, the Company will, to
the extent permitted under the Securities Exchange Act of 1934, file with the
Commission the annual reports, quarterly reports and other documents which the
Company would have been required to file with the Commission pursuant to such
Section 13 or 15(d) if the Company were so subject, on or prior to the
respective dates (the "Required Filing Dates") by which the Company would have
been so required so to file such documents.

         The Company will also in any event (x) within 15 days after each
Required Filing Date (i) transmit by mail to all Holders, as their names and
addresses appear in the Security Register, without cost to such Holders, copies
of the annual reports, quarterly reports and other documents which the Company
would have been required to file with the Commission pursuant to Section 13 or
15(d) of the Securities Exchange Act of 1934 if the Company were subject to such
Sections, and (ii) file with the Trustee copies of the annual reports, quarterly
reports and other documents which the Company would have been required to file
with the Commission pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 if the Company were subject to such Sections and (y) if filing such
documents by the Company with the Commission is not permitted under the
Securities Exchange Act of 1934, promptly upon written

                                       51
<PAGE>

request and payment of the reasonable cost of duplication and delivery, supply
copies of such documents to any prospective Holder.

     SECTION 1009. WAIVER OF CERTAIN COVENANTS. The Company may omit in any
particular instance to comply with any term, provision or condition set forth in
Sections 1004 to 1012, inclusive, if before or after the time for such
compliance the Holders of at least a majority in principal amount of all
Outstanding Debt Securities of such series, by Act of such Holders, either waive
such compliance in such instance or generally waive compliance with such
covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such term, provision or condition shall remain in
full force and effect.

     SECTION 1010. STATEMENT AS TO COMPLIANCE. The Company will deliver to the
Trustee, within 120 days after the end of each fiscal year, a brief certificate
from its principal executive officer, principal financial officer or principal
accounting officer as to his or her knowledge of the Company's compliance with
all conditions and covenants under this Indenture and, in the event of any
noncompliance, specifying such noncompliance and the nature and status thereof.
For purposes of this Section 1014, such compliance shall be determined without
regard to any period of grace or requirement of notice under this Indenture.

     SECTION 1011. ADDITIONAL AMOUNTS. If any Debt Securities of a series
provide for the payment of Additional Amounts, the Company will pay to the
Holder of any Debt Security of such series or any coupon appertaining thereto
Additional Amounts as may be specified as contemplated by Section 301. Whenever
in this Indenture there is mentioned, in any context, the payment of the
principal of or any premium or interest on, or in respect of, any Debt Security
of any series or payment of any related coupon or the net proceeds received on
the sale or exchange of any Debt Security of any series, such mention shall be
deemed to include mention of the payment of Additional Amounts provided by the
terms of such series established pursuant to Section 301 to the extent that, in
such context, Additional Amounts are, were or would be payable in respect
thereof pursuant to such terms and express mention of the payment of Additional
Amounts (if applicable) in any provisions hereof shall not be construed as
excluding Additional Amounts in those provisions hereof where such express
mention is not made.

         Except as otherwise specified as contemplated by Section 301, if the
Debt Securities of a series provide for the payment of Additional Amounts, at
least 10 days prior to the first Interest Payment Date with respect to that
series of Debt Securities (or if the Debt Securities of that series will not
bear interest prior to Maturity, the first day on which a payment of principal
and any premium is made), and at least 10 days prior to each date of payment of
principal and any premium or interest if there has been any change with respect
to the matters set forth in the below-mentioned Officers' Certificate, the
Company will furnish the Trustee and the Company's principal Paying Agent or
Paying Agents, if other than the Trustee, with an Officers' Certificate
instructing the Trustee and such Paying Agent or Paying Agents whether such
payment of principal of and any premium or interest on the Debt Securities of
that series shall be made to Holders of Debt Securities of that series or any
related coupons who are not United States Persons without withholding for or on
account of any tax, assessment or other governmental charge specified by the
terms of the Debt Securities of the series. If any such withholding shall be
required, then such Officers' Certificate shall specify by country the amount,
if any, required to be withheld on such payments to such Holders of Debt
Securities of that series or related coupons and the Company will pay to the
Trustee or such Paying Agent or Paying Agents the Additional Amounts required by
the terms of such Debt Securities. In the event that the Trustee or any Paying
Agent, as the case may be, shall not so receive the above-mentioned certificate,
then the Trustee or such Paying Agent shall be entitled (i) to assume that no
such withholding or deduction is required with respect to any payment of
principal, premium, if any, or interest with respect to any Debt Securities of a
series or related coupons until it shall

                                       52
<PAGE>

have received an Officers' Certificate advising otherwise and (ii) to make all
payments of principal, premium, if any, and interest with respect to the Debt
Securities of a series or related coupons without withholding or deductions
until otherwise advised. The Company covenants to indemnify the Trustee and any
Paying Agent for, and to hold them harmless against, any loss, liability or
expense reasonably incurred without negligence or bad faith on their part
arising out of or in connection with actions taken or omitted by any of them or
in reliance on any Officers' Certificate furnished pursuant to this Section or
in reliance on the Company's not furnishing such an Officers' Certificate.

                                ARTICLE ELEVEN.
                           REDEMPTION OF SECURITIES

     SECTION 1101. APPLICABILITY OF ARTICLE. Debt Securities of any series which
are redeemable before their Stated Maturity shall be redeemable in accordance
with their terms and (except as otherwise specified as contemplated by Section
301 for Debt Securities of any series) in accordance with this Article.

     SECTION 1102. ELECTION TO REDEEM; NOTICE TO TRUSTEE. The election of the
Company to redeem any Debt Securities shall be evidenced by or pursuant to a
Board Resolution. In case of any redemption at the election of the Company of
less than all of the Debt Securities of any series, the Company shall, at least
45 days prior to the giving of the notice of redemption referred to in Section
1104 (unless a shorter notice shall be satisfactory to the Trustee), notify the
Trustee of such Redemption Date and of the principal amount of Debt Securities
of such series to be redeemed. In the case of any redemption of Debt Securities
prior to the expiration of any restriction on such redemption provided in the
terms of such Debt Securities or elsewhere in this Indenture, the Company shall
furnish the Trustee with an Officers' Certificate evidencing compliance with
such restriction.

     SECTION 1103. SELECTION BY TRUSTEE OF DEBT SECURITIES TO BE REDEEMED. If
less than all the Debt Securities of any series issued on the same day with the
same terms are to be redeemed, the particular Debt Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Debt Securities of such series issued on such date
with the same terms not previously called for redemption (excluding any such
Outstanding Debt Securities held by the Company or any of its Subsidiaries), by
such method as the Trustee shall deem fair and appropriate and which may provide
for the selection for redemption of portions (equal to the minimum authorized
denomination for Debt Securities of that series or any integral multiple
thereof) of the principal amount of Debt Securities of such series of a
denomination larger than the minimum authorized denomination for Debt Securities
of that series.

         The Trustee shall promptly notify the Company and the Debt Security
Registrar (if other than itself) in writing of the Debt Securities selected for
redemption and, in the case of any Debt Securities selected for partial
redemption, the principal amount thereof to be redeemed.

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

     SECTION 1104. NOTICE OF REDEMPTION. Notice of redemption shall be given in
the manner provided in section 106, not less than 30 days nor more than 60 days
prior to the Redemption Date, unless a shorter period is specified by the terms
of such series established pursuant to Section 301, to each Holder of Debt
Securities to be redeemed, but failure to give such notice in the manner herein
provided to the Holder of any Debt Security designated for redemption as a whole
or in part, or any defect

                                       53
<PAGE>

in the notice to any such Holder, shall not affect the validity of the
proceedings for the redemption of any other such Debt Security or portion
thereof.

         Any notice that is mailed to the Holders of Registered Debt Securities
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Holder receives the notice.

         All notices of redemption shall state:

         (1)   the Redemption Date,

         (2)   the Redemption Price and the amount of accrued interest to the
Redemption Date payable as provided in Section 1106, if any, and Additional
Amounts, if any,

         (3)   if less than all Outstanding Debt Securities of any series are to
be redeemed, the identification (and, in the case of partial redemption, the
principal amount) of the particular Debt Security or Debt Securities to be
redeemed,

         (4)   in case any Debt Security is to be redeemed in part only, the
notice shall state that on and after the Redemption Date, upon surrender of such
Debt Security, the Holder will receive, without a charge, a new Debt Security or
Debt Securities of such series of authorized denominations for the principal
amount thereof remaining unredeemed,

         (5)   that on the Redemption Date the Redemption Price and accrued
interest to the Redemption Date and Additional Amounts, if any, payable as
provided in Section 1106, will become due and payable upon each such Debt
Security, or the portion thereof, to be redeemed and, if applicable, that
interest thereon shall cease to accrue on and after said date,

         (6)   the Place or Places of Payment where such Debt Securities,
together in the case of Bearer Debt Securities with all coupons appertaining
thereto, if any, maturing after the Redemption Date, are to be surrendered for
payment of the Redemption Price and accrued interest, if any, and Additional
Amounts, if any, or (if applicable) for conversion,

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

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

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

         (10)  the CUSIP number of such Debt Security, if any, and

         (11)  if applicable, that a Holder of Debt Securities who desires to
convert Debt Securities for redemption must satisfy the requirements for
conversion contained in such Debt Securities the then existing conversion price
or rate, and the date and time when the option to convert shall expire. Notice
of

                                       54
<PAGE>

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

     SECTION 1105. DEPOSIT OF REDEMPTION PRICE. At or prior to 12:00 noon (New
York City time) on any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, which it may not do in the case of a sinking fund payment under Article
Twelve, segregate and hold in trust as provided in Section 1003) an amount of
money in the currency or currencies, currency unit or units or composite
currency or currencies in which the Debt Securities of such series are payable
(except as otherwise may be specified pursuant to Section 301 for the Debt
Securities of such series) sufficient to pay on the Redemption Date the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, and Additional Amounts, if any, with respect
to, all the Debt Securities or portions thereof which are to be redeemed on that
date.

     SECTION 1106. DEBT SECURITIES PAYABLE ON REDEMPTION DATE. Notice of
redemption having been given as aforesaid, the Debt Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price
therein specified in the currency or currencies, currency unit or units or
composite currency or currencies in which the Debt Securities of such series are
payable (except as otherwise specified pursuant to Section 301 for the Debt
Securities of such series) (together with accrued interest, if any, and
Additional Amounts, if any, to the Redemption Date), and from and after such
date (unless the Company shall default in the payment of the Redemption Price or
accrued interest, if any, or Additional Amounts, if any) such Debt Securities
shall, if the same were interest-bearing, cease to bear interest and the coupons
for such interest appertaining to any Bearer Debt Securities so to be redeemed,
except to the extent provided below, shall be void. Upon surrender of any such
Debt Security for redemption in accordance with said notice, together with all
coupons, if any, appertaining thereto maturing after the Redemption Date, such
Debt Security shall be paid by the Company at the Redemption Price, together
with accrued interest, if any, and Additional Amounts, if any, to the Redemption
Date; provided, however, that installments of interest on Bearer Debt Securities
whose Stated Maturity is on or prior to the Redemption Date shall be payable
only at an office or agency located outside the United States (except as
otherwise provided in Section 1002) and, unless otherwise specified as
contemplated by Section 301, only upon presentation and surrender of coupons for
such interest; and provided further that, except as otherwise provided with
respect to Debt Securities convertible into Common Shares or Preferred Shares or
other securities or property, installments of interest on Registered Debt
Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Debt Securities, or one or more Predecessor Debt
Securities, registered as such at the close of business on the relevant Record
Dates according to their terms and the provisions of Section 307. If any Bearer
Debt Security surrendered for redemption shall not be accompanied by all
appurtenant coupons maturing after the Redemption Date, such Debt Security may
be paid after deducting from the Redemption Price an amount equal to the face
amount of all such missing coupons, or the surrender of such missing coupon or
coupons may be waived by the Company and the Trustee if there be furnished to
them such security or indemnity as they may require to save each of them and any
Paying Agent harmless. If thereafter the Holder of such Debt Security shall
surrender to the Trustee or any Paying Agent any such missing coupon in respect
of which a deduction shall have been made from the Redemption Price, such Holder
shall be entitled to receive the amount so deducted; provided, however, that
interest represented by coupons shall be payable only at an office or agency
located outside the United States (except as otherwise provided in Section 1002)
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those coupons.

         If any Debt Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest from the Redemption Date at the rate borne by or
provided in the Debt Security.

                                       55
<PAGE>

     SECTION 1107. DEBT SECURITIES REDEEMED IN PART. Any Registered Debt
Security which is to be redeemed only in part (pursuant to the provisions of
this Article or of Article Twelve) shall be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by,
or a written instrument of transfer in form satisfactory to the Company and the
Trustee duly executed by, the Holder thereof or his attorney duly authorized in
writing) and the Company shall execute and the Trustee shall authenticate and
deliver to the Holder of such Debt Security without service charge a new Debt
Security or Debt Securities of the same series, of any authorized denomination
as requested by such Holder in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Debt Security so
surrendered.

     SECTION 1108. CONVERSION ARRANGEMENT ON CALL FOR REDEMPTION. In connection
with any redemption of Debt Securities, the Company may arrange for the purchase
and conversion of any Debt Securities called for redemption by an agreement with
one or more investment bankers or other purchasers to purchase such Debt
Securities (a copy of which shall be delivered to the Trustee by the Company
prior to the relevant Redemption Date) by paying to the Trustee or the Paying
Agent in trust for the Holders of Debt Securities, on or before 12:00 Noon (New
York City time) on the Redemption Date, an amount not less than the Redemption
Price, together with interest, if any, accrued to the Redemption Date of such
Debt Securities and Additional Amounts, if any, in immediately available funds.
Notwithstanding anything to the contrary contained in this Article Eleven, the
obligation of the Company to pay the Redemption Price of such Debt Securities,
including all accrued interest, if any, and Additional Amounts, if any, shall be
deemed to be satisfied and discharged to the extent such amount is so paid by
such purchasers. If such an agreement is entered into, any Debt Securities not
duly surrendered for conversion by the Holders thereof may, at the option of the
Company, be deemed, to the fullest extent permitted by law, acquired by such
purchasers from such Holders and surrendered by such purchasers for conversion,
all as of immediately prior to the close of business on the last day on which
Debt Securities of such series called for redemption may be converted in
accordance with this Indenture and the terms of such Debt Securities, subject to
payment to the Trustee or Paying Agent of the above- described amount. The
Trustee or the Paying Agent shall hold and pay to the Holders whose Debt
Securities are selected for redemption any such amount paid to it in the same
manner as it would pay moneys deposited with it by the Company for the
redemption of Debt Securities. Without the Trustee's and the Paying Agent's
prior written consent, no arrangement between the Company and such purchasers
for the purchase and conversion of any Debt Securities shall increase or
otherwise affect any of the powers, duties, responsibilities or obligations of
the Trustee and the Paying Agent as set forth in this Indenture, and the Company
agrees to indemnify the Trustee and the Paying Agent from, and hold them
harmless against, any loss, liability or expense arising out of or in connection
with any such arrangement for the purpose and conversion of any Debt Securities
between the Company and such purchasers, including the costs and expenses
incurred by the Trustee and the Paying Agent (including the fees and expenses of
their agents and counsel) in the defense of any claim or liability arising out
of or in connection with the exercise or performance of any of their powers,
duties, responsibilities or obligations under this Indenture.

                                ARTICLE TWELVE.
                                 SINKING FUNDS

     SECTION 1201. APPLICABILITY OF ARTICLE. The provisions of this Article
shall be applicable to any sinking fund for the retirement of Debt Securities of
a series except as otherwise specified as contemplated by Section 301 for Debt
Securities of such series.

         The minimum amount of any sinking fund payment provided for by the
terms of Debt 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 such Debt Securities of any series is herein referred to as
an "optional sinking fund payment". If provided for by the terms of any Debt
Securities of any

                                       56
<PAGE>

series, the cash amount of any mandatory sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be
applied to the redemption of Debt Securities of any series as provided for by
the terms of Debt Securities of such series.

     SECTION 1202. SATISFACTION OF SINKING FUND PAYMENTS WITH DEBT SECURITIES.
The Company may, in satisfaction of all or any part of any mandatory sinking
fund payment with respect to the Debt Securities of a series, (1) deliver
Outstanding Debt Securities of such series (other than any previously called for
redemption) together in the case of any Bearer Debt Securities of such series
with all unmatured coupons appertaining thereto and (2) apply as a credit Debt
Securities of such series which have been redeemed either at the election of the
Company pursuant to the terms of such Debt Securities or through the application
of permitted optional sinking fund payments pursuant to the terms of such Debt
Securities, as provided for by the terms of such Debt Securities, or which have
otherwise been acquired by the Company; provided that such Debt Securities so
delivered or applied as a credit have not been previously so credited. Such Debt
Securities shall be received and credited for such purpose by the Trustee at the
applicable Redemption Price specified in such Debt Securities for redemption
through operation of the sinking fund and the amount of such mandatory sinking
fund payment shall be reduced accordingly.

     SECTION 1203. REDEMPTION OF DEBT SECURITIES FOR SINKING FUND. Not less than
60 days prior to each sinking fund payment date for Debt Securities of any
series, the Company will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing mandatory sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash in the currency or currencies,
currency unit or units or composite currency or currencies in which the Debt
Securities of such series are payable (except as otherwise specified pursuant to
Section 301 for the Debt Securities of such series) and the portion thereof, if
any, which is to be satisfied by delivering and crediting Debt Securities of
that series pursuant to Section 1202, and the optional amount, if any, to be
added in cash to the next ensuing mandatory sinking fund payment, and will also
deliver to the Trustee any Debt Securities to be so delivered and credited. If
such Officers' Certificate shall specify an optional amount to be added in cash
to the next ensuing mandatory sinking fund payment, the Company shall thereupon
be obligated to pay the amount therein specified. Not less than 30 days before
each such sinking fund payment date the Trustee shall select the Debt Securities
to be redeemed upon such sinking fund payment date in the manner specified in
Section 1103 and cause notice of the redemption thereof to be given in the name
of and at the expense of the Company in the manner provided in Section 1104.
Such notice having been duly given, the redemption of such Debt Securities shall
be made upon the terms and in the manner stated in Sections 1106 and 1107.

                               ARTICLE THIRTEEN.
                      REPAYMENT AT THE OPTION OF HOLDERS

     SECTION 1301. APPLICABILITY OF ARTICLE. Debt Securities of any series which
are repayable at the option of the Holders thereof before their Stated Maturity
shall be repaid in accordance with the terms of the Debt Securities of such
series. The repayment of any principal amount of Debt Securities pursuant to
such option of the Holder to require repayment of Debt Securities before their
Stated Maturity, for purposes of Section 309, shall not operate as a payment,
redemption or satisfaction of the indebtedness represented by such Debt
Securities unless and until the Company, at its option, shall deliver or
surrender the same to the Trustee with a directive that such Debt Securities be
canceled. Notwithstanding anything to the contrary contained in this Section
1301, in connection with any repayment of Debt Securities, the Company may
arrange for the purchase of any Debt Securities by an agreement with one or more
investment bankers or other purchasers to purchase such Debt Securities by
paying to the Holders of such Debt Securities on or before the close of business
on the Repayment Date an amount not less than the Repayment Price payable by the
Company on repayment of such Debt

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Securities (together with interest, if any, and Additional Amounts, if any, to
the Redemption Date), and the obligation of the Company to pay the Repayment
Price of such Debt Securities (together with interest, if any, and Additional
Amounts, if any, to the Redemption Date), shall be satisfied and discharged to
the extent such payment is so paid by such purchasers.

                               ARTICLE FOURTEEN.
                      DEFEASANCE AND COVENANT DEFEASANCE

     SECTION 1401. APPLICABILITY OF ARTICLE; COMPANY'S OPTION TO EFFECT
DEFEASANCE OR COVENANT DEFEASANCE. If, pursuant to Section 301, provision is
made for either or both of (a) defeasance of the Debt Securities of or within a
series under Section 1402 or (b) covenant defeasance of the Debt Securities of
or within a series under Section 1403, then the provisions of such Section or
Sections, as the case may be, together with the other provisions of this Article
(with such modifications thereto as may be specified pursuant to Section 301
with respect to such Debt Securities), shall be applicable to such Debt
Securities and any coupons appertaining thereto, and the Company may at its
option by Board Resolution, at any time, with respect to such Debt Securities
and any coupons appertaining thereto, elect to have Section 1402 (if applicable)
or Section 1403 (if applicable) be applied to such Outstanding Debt Securities
and any coupons appertaining thereto upon compliance with the conditions set
forth below in this Article. Unless otherwise specified pursuant to Section 301,
the Company's right, if any, to elect defeasance pursuant to Section 1402 or
covenant defeasance pursuant to Section 1403 may only be exercised with respect
to all of the Outstanding Debt Securities of any series.

     SECTION 1402. DEFEASANCE AND DISCHARGE. Upon the Company's exercise of the
above option applicable to this Section with respect to any Debt Securities of
or within a series, the Company shall be deemed to have been discharged from its
obligations with respect to such Outstanding Debt Securities and any coupons
appertaining thereto on the date the conditions set forth in Section 1404 are
satisfied (hereinafter "defeasance"). For this purpose, such defeasance means
that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by such Outstanding Debt Securities and any coupons
appertaining thereto, which shall thereafter be deemed to be "Outstanding" only
for the purposes of Section 1405 and the other Sections of this Indenture
referred to in clauses (A) through (D) below, and to have satisfied all of its
other obligations under such Debt Securities and any coupons appertaining
thereto and this Indenture insofar as such Debt Securities and any coupons
appertaining thereto are concerned (and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (A) the rights of Holders of such outstanding Debt Securities and any
coupons appertaining thereto to receive, solely from the trust fund described in
Section 1404 and as more fully set forth in such Section, payments in respect of
the principal of (and premium, if any) and interest, if any, on such Debt
Securities and any coupons appertaining thereto when such payments are due, (B)
the Company's obligations with respect to such Debt Securities under Sections
304, 305, 306, 1002 and 1003, with respect to the payment of Additional Amounts,
if any, on such Debt Securities as contemplated by Section 1015, and with
respect to any rights to convert or exchange such Debt Securities into Common
Shares, Preferred Shares or other securities or property, (C) the rights,
powers, trusts, duties and immunities of the Trustee hereunder (including,
without limitation, those in Section 606 hereof) and (D) this Article Fourteen.
Subject to compliance with this Article Fourteen, the Company may exercise its
option under this Section notwithstanding the prior exercise of its option under
Section 1403 with respect to such Debt Securities and any coupons appertaining
thereto.

     SECTION 1403. COVENANT DEFEASANCE. Upon the Company's exercise of the above
option applicable to this Section with respect to any Debt Securities of or
within a series, the Company shall be released from its obligations under
Sections 1004 to 1012, inclusive, (except that the Company

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<PAGE>

shall remain subject to the covenant set forth in Section 1008 to preserve and
keep in full force and effect its corporate existence, except as permitted under
Article Eight) and, if specified pursuant to Section 301, its obligations under
any other covenant, with respect to such Outstanding Debt Securities and any
coupons appertaining thereto on and after the date the conditions set forth in
Section 1404 are satisfied (hereinafter, "covenant defeasance"), and such Debt
Securities and any coupons appertaining thereto shall thereafter be deemed to be
not "Outstanding" for the purposes of any direction, waiver, consent or
declaration or Act of Holders (and the consequences of any thereof) in
connection with Sections 1004 to 1012, inclusive, or such other covenant, but
shall continue to be deemed "Outstanding" for all other purposes hereunder. For
this purpose, such covenant defeasance means that, with respect to such
Outstanding Debt Securities and any coupons appertaining thereto, the Company
may omit to comply with and shall have no liability in respect of any term,
condition or limitation set forth in any such Section or such other covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such Section or such other covenant or by reason of reference in any such
Section or such other covenant to any other provision herein or in any other
document and such omission to comply shall not constitute a default or an Event
of Default under Section 501(4) or 501(8) or otherwise, as the case may be, but,
except as specified above, the remainder of this Indenture and such Debt
Securities and any coupons appertaining thereto shall be unaffected thereby.

     SECTION 1404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE. The
following shall be the conditions to application of Section 1402 or Section 1403
to any Outstanding Debt Securities of or within a series and any coupons
appertaining thereto:

     (a) The Company shall irrevocably have deposited or caused to be deposited
with the Trustee (or another trustee satisfying the requirements of Section 607
who shall agree to comply with the provisions of this Article Fourteen
applicable to it) as trust funds in trust for the purpose of making the
following payments, specifically pledged as security for, and dedicated solely
to, the benefit of the Holders of such Debt Securities and any coupons
appertaining thereto, (1) an amount in such currency, currencies or currency
unit in which such Debt Securities and any coupons appertaining thereto are then
specified as payable at Stated Maturity or, if such defeasance or covenant
defeasance is to be effected in compliance with subsection (f) below, on the
relevant Redemption Date, as the case may be, or (2) Government Obligations
applicable to such Debt Securities and coupons appertaining thereto (determined
on the basis of the currency, currencies or currency unit in which such Debt
Securities and coupons appertaining thereto are then specified as payable at
Stated Maturity or the applicable Redemption Date, as the case may be) which
through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than one day before the due
date of any payment of principal of (and premium, if any) and interest, if any,
on such Debt Securities and any coupons appertaining thereto, money in an
amount, or (3) a combination thereof, in any case, in an amount sufficient,
without consideration of any reinvestment of such principal and interest, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, to pay
and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium, if any) and
interest, if any, on such Outstanding Debt Securities and any coupons
appertaining thereto on the Stated Maturity of such principal or installment of
principal or interest or the applicable Redemption Date, as the case may be, and
(ii) any mandatory sinking fund payments or analogous payments applicable to
such Outstanding Debt Securities and any coupons appertaining thereto on the day
on which such payments are due and payable in accordance with the terms of this
Indenture and of such Debt Securities and any coupons appertaining thereto.

     (b) Such defeasance or covenant defeasance shall not result in a breach or
violation of, or constitute a default under, this Indenture or any other
material agreement or instrument to which the Company is a party or by which it
is bound.

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<PAGE>

     (c) No Event of Default or event which with notice or lapse of time or both
would become an Event of Default with respect to such Debt Securities and any
coupons appertaining thereto shall have occurred and be continuing on the date
of such deposit or, insofar as Sections 501(6) and 501(7) are concerned, at any
time during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until the
expiration of such period).

     (d) In the case of an election under Section 1402, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that (i) the Company has
received from, or there has been published by, the Internal Revenue Service a
ruling, or (ii) since the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based
thereon such opinion shall confirm that, the Holders of such Outstanding Debt
Securities and any coupons appertaining thereto will not recognize income, gain
or loss for Federal income tax purposes as a result of such defeasance and will
be subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred.

     (e) In the case of an election under Section 1403, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the Holders of
such Outstanding Debt Securities and any coupons appertaining thereto will not
recognize income, gain or loss for Federal income tax purposes as a result of
such covenant defeasance and will be subject to Federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if
such covenant defeasance had not occurred.

     (f) If the monies or Government Obligations or combination thereof, as the
case may be, deposited under subsection (a) above are sufficient to pay the
principal of, and premium, if any, and interest, if any, on such Debt Securities
provided such Debt Securities are redeemed on a particular Redemption Date, the
Company shall have given the Trustee irrevocable instructions to redeem such
Debt Securities on such date and to provide notice of such redemption to Holders
as provided in or pursuant to this Indenture.

     (g) The Company shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance under Section 1402 or the covenant defeasance under
Section 1403 (as the case may be) have been complied with and an Opinion of
Counsel to the effect that, as a result of a deposit pursuant to subsection (a)
above and the related exercise of the Company's option under Section 1402 or
Section 1403 (as the case may be), registration is not required under the
Investment Company Act of 1940, as amended, by the Company, with respect to the
trust funds representing such deposit or by the Trustee for such trust funds.

     (h) Notwithstanding any other provisions of this Section, such defeasance
or covenant defeasance shall be effected in compliance with any additional or
substitute terms, conditions or limitations which may be imposed on the Company
in connection therewith pursuant to Section 301.

     SECTION 1405. DEPOSITED MONEY AND GOVERNMENT OBLIGATIONS TO BE HELD IN
TRUST; OTHER MISCELLANEOUS PROVISIONS. Subject to the provisions of the last
paragraph of Section 1003, all money and Government Obligations (or other
property as may be provided pursuant to Section 301) (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee, collectively
for purposes of this Section 1405, the "Trustee") pursuant to Section 1404 in
respect of any Outstanding Debt Securities of any series and any coupons
appertaining thereto shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Debt Securities and any coupons
appertaining thereto and this Indenture, to the payment, either directly or
through any Paying Agent (other than the Company acting as its own Paying Agent)
as the Trustee may determine, to the Holders of such Debt Securities and any
coupons appertaining thereto of all sums due and to become due thereon in

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respect of principal (and premium, if any) and interest, but such money need not
be segregated from other funds except to the extent required by law.

     Unless otherwise specified with respect to any Debt Security pursuant to
Section 301, if, after a deposit referred to in Section 1404(a) has been made,
(a) the Holder of a Debt Security in respect of which such deposit was made is
entitled to, and does, elect to receive payment in a currency or currency unit
other than that in which the deposit pursuant to Section 1404(a) has been made
in respect of such Debt Security, or (b) a Conversion Event occurs in respect of
the currency or currency unit in which the deposit pursuant to Section 1404(a)
has been made, the indebtedness represented by such Debt Security and any
coupons appertaining thereto shall be deemed to have been, and will be, fully
discharged and satisfied through the payment of the principal of (and premium,
if any), and interest, if any, on such Debt Security as it becomes due out of
the proceeds yielded by converting (from time to time as specified below in the
case of any such election) the amount or other property deposited in respect of
such Debt Security into the currency or currency unit in which such Debt
Security becomes payable as a result of such election or Conversion Event based
on the applicable market exchange rate on (x) in the case of payments made
pursuant to clause (a) above, the applicable market exchange rate for such
currency or currency unit in effect on the second Business Day prior to each
payment date, or (y) with respect to a Conversion Event, the applicable market
exchange rate for such currency or currency unit in effect (as nearly as
feasible) at the time of the Conversion Event.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the Government Obligations deposited
pursuant to Section 1404 or the principal and interest received in respect
thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of such Outstanding Debt Securities and any coupons
appertaining thereto.

     Anything in this Article to the contrary notwithstanding, subject to
Section 606, the Trustee shall deliver or pay to the Company from time to time
upon Company Request any money or Government Obligations (or other property and
any proceeds therefrom) held by it as provided in Section 1404 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect a defeasance or covenant defeasance, as applicable, in accordance with
this Article.

     SECTION 1406. REINSTATEMENT. If the Trustee or Paying Agent is unable to
apply any cash or Government Obligations deposited pursuant to Section 1404 in
accordance with this Indenture or the Debt Securities of the applicable series
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company's obligations under this Indenture and the
Debt Securities of such series shall be revived and reinstated as though no
deposit had occurred pursuant to Section 1404 until such time as the Trustee or
Paying Agent is permitted to apply such money in accordance with this Indenture
and the Debt Securities of such series; provided, however, that if the Company
makes any payment of principal of, premium, if any, or interest on any Debt
Security of such series following the reinstatement of its obligations, the
Company shall be subrogated to the rights of the Holders of such Debt Securities
to receive such payment from the cash and Government Obligations held by the
Trustee or Paying Agent.

                               ARTICLE FIFTEEN.
                       MEETINGS OF HOLDERS OF SECURITIES

     SECTION 1501. PURPOSES FOR WHICH MEETINGS MAY BE CALLED. A meeting of
Holders of Debt Securities of any series may be called at any time and from time
to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or

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<PAGE>

other action provided by this Indenture to be made, given or taken by Holders of
Debt Securities of such series.

     SECTION 1502. CALL, NOTICE AND PLACE OF MEETINGS.

     (a) The Trustee may at any time call a meeting of Holders of Debt
Securities of any series for any purpose specified in Section 1501, to be held
at such time and at such place in The City of New York or, if Debt Securities of
such series have been issued in whole or in part as Bearer Debt Securities, in
London as the Trustee shall determine. Notice of every meeting of Holders of
Debt Securities of any series, setting forth the time and the place of such
meeting and in general terms the action proposed to be taken at such meeting,
shall be given, in the manner provided in Section 106, not less than 21 nor more
than 180 days prior to the date fixed for the meeting.

     (b) In case at any time the Company, pursuant to a Board Resolution, or the
Holders of at least 10% in principal amount of the Outstanding Debt Securities
of any series shall have requested the Trustee to call a meeting of the Holders
of Debt Securities of such series for any purpose specified in Section 1501, by
written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have made the first publication
of the notice of such meeting within 21 days after receipt of such request or
shall not thereafter proceed to cause the meeting to be held as provided herein,
then the Company or the Holders of Debt Securities of such series in the amount
above specified, as the case may be, may determine the time and the place in The
City of New York, or, if Debt Securities of such series have been issued in
whole or in part as Bearer Debt Securities, in London for such meeting and may
call such meeting for such purposes by giving notice thereof as provided in
subsection (a) of this Section.

     SECTION 1503. PERSONS ENTITLED TO VOTE AT MEETINGS. To be entitled to vote
at any meeting of Holders of Debt Securities of any series, a Person shall be
(1) a Holder of one or more Outstanding Debt Securities of such series, or (2) a
Person appointed by an instrument in writing as proxy for a Holder or Holders of
one or more Outstanding Debt Securities of such series by such Holder or
Holders. The only Persons who shall be entitled to be present or to speak at any
meeting of Holders of Debt Securities of any series shall be the Persons
entitled to vote at such meeting and their counsel, any representatives of the
Trustee and its counsel and any representatives of the Company and its counsel.

     SECTION 1504. QUORUM; ACTION. The Persons entitled to vote a majority in
principal amount of the Outstanding Debt Securities of a series shall constitute
a quorum for a meeting of Holders of Debt Securities of such series; provided,
however, that if any action is to be taken at such meeting with respect to a
consent or waiver which this Indenture expressly provides may be given by the
Holders of not less than a specified percentage in principal amount of the
Outstanding Debt Securities of a series, the Persons entitled to vote such
specified percentage which is less or more than a majority in principal amount
of the Outstanding Debt Securities of such series shall constitute a quorum. In
the absence of a quorum within 30 minutes after the time appointed for any such
meeting, the meeting shall, if convened at the request of Holders of Debt
Securities of such series, be dissolved. In any other case the meeting may be
adjourned for a period of not less than 10 days as determined by the chairman of
the meeting prior to the adjournment of such meeting. In the absence of a quorum
at any such adjourned meeting, such adjourned meeting may be further adjourned
for a period of not less than 10 days as determined by the chairman of the
meeting prior to the adjournment of such adjourned meeting. Notice of the
reconvening of any adjourned meeting shall be given as provided in Section
1502(a), except that such notice need be given only once not less than five days
prior to the date on which the meeting is scheduled to be reconvened. Notice of
the reconvening of any adjourned meeting shall state expressly the percentage,
as provided above, of the principal amount of the Outstanding Debt Securities of
such series which shall constitute a quorum.

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<PAGE>

     Except as limited by the proviso to Section 902, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted by the affirmative vote of the Holders of a majority
in principal amount of the Outstanding Debt Securities of that series; provided,
however, that, except as limited by the proviso to Section 902, any resolution
with respect to any request, demand, authorization, direction, notice, consent,
waiver or other action which this Indenture expressly provides may be made,
given or taken by the Holders of a specified percentage, which is less or more
than a majority, in principal amount of the Outstanding Debt Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Debt
Securities of that series. Any resolution passed or decision taken at any
meeting of Holders of Debt Securities of any series duly held in accordance with
this Section shall be binding on all the Holders of Debt Securities of such
series and the related coupons, whether or not present or represented at the
meeting.

     Notwithstanding the foregoing provisions of this Section 1504, if any
action is to be taken at a meeting of Holders of Debt Securities of any series
with respect to any request, demand, authorization, direction, notice, consent,
waiver or other action that this Indenture expressly provides may be made, given
or taken by the Holders of a specified percentage in principal amount of all
Outstanding Debt Securities affected thereby, or by the Holders of a specified
percentage in principal amount of the Outstanding Debt Securities of such series
and one or more additional series:

     (i)  there shall be no minimum quorum requirement for such meeting; and

     (ii) the principal amount of the Outstanding Debt Securities of such series
that are entitled to vote in favor of such request, demand, authorization,
direction, notice, consent, waiver or other action shall be taken into account
in determining whether such request, demand, authorization, direction, notice,
consent, waiver or other action has been made, given or taken under this
Indenture.

     SECTION 1505. DETERMINATION OF VOTING RIGHTS; CONDUCT AND ADJOURNMENT OF
MEETINGS.

     (a) Notwithstanding any provisions of this Indenture, the Trustee may make
such reasonable regulations as it may deem advisable for any meeting of Holders
of Debt Securities of a series in regard to proof of the holding of Debt
Securities of such series and of the appointment of proxies and in regard to the
appointment and duties of inspectors of votes, the submission and examination of
proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the holding
of Debt Securities shall be proved in the manner specified in Section 104 and
the appointment of any proxy shall be proved in the manner specified in Section
104 or by having the signature of the Person executing the proxy witnessed or
guaranteed by any trust company, bank or banker authorized by Section 104 to
certify to the holding of Bearer Debt Securities. Such regulations may provide
that written instruments appointing proxies, regular on their face, may be
presumed valid and genuine without the proof specified in Section 104 or other
proof .

     (b) The Trustee shall, by an instrument in writing appoint a temporary
chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Debt Securities as provided in Section 1502(b), in
which case the Company or the Holders of Debt Securities of the series calling
the meeting, as the case may be, shall in like manner appoint a temporary
chairman. A permanent chairman and a permanent secretary of the meeting shall be
elected by vote of the Persons entitled to vote a majority in principal amount
of the Outstanding Debt Securities of such series represented at the meeting.

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<PAGE>

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

     (d) Any meeting of Holders of Debt Securities of any series duly called
pursuant to Section 1502 at which a quorum is present may be adjourned from time
to time by Persons entitled to vote a majority in principal amount of the
Outstanding Debt Securities of such series represented at the meeting, and the
meeting may be held as so adjourned without further notice.

     SECTION 1506. COUNTING VOTES AND RECORDING ACTION OF MEETINGS. The vote
upon any resolution submitted to any meeting of Holders of Debt Securities of
any series shall be by written ballots on which shall be subscribed the
signatures of the Holders of Debt Securities of such series or of their
representatives by proxy and the principal amounts and serial numbers of the
Outstanding Debt Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of Holders of Debt Securities of
any series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the fact, setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1502 and, if
applicable, Section 1504. Each copy shall be signed and verified by the
affidavits of the permanent chairman and secretary of the meeting and one such
copy shall be delivered to the Company and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                               ARTICLE SIXTEEN.
                          SUBORDINATION OF SECURITIES

     SECTION 1601. DEBT SECURITIES SUBORDINATED TO SENIOR INDEBTEDNESS. The
Company covenants and agrees, and each Holder of Debt Securities, by his
acceptance thereof, likewise covenants and agrees, that the indebtedness
represented by the Debt Securities and the payment of the principal of (and
premium, if any) and interest and any Additional Amounts payable in respect of
each and all of the Debt Securities is hereby expressly subordinated, to the
extent and in the manner hereinafter set forth, in right of payment to the prior
payment in full of Senior Indebtedness.

     In the event (a) of any distribution of assets of the company upon any
dissolution, winding up, liquidation or reorganization of the Company whether in
bankruptcy, insolvency, reorganization or receivership proceeding or upon an
assignment for the benefit of creditors or any other marshaling of the assets
and liabilities of the Company or otherwise, except a distribution in connection
with a merger or consolidation or a conveyance or transfer of all or
substantially all of the properties of the Company which compiles with the
requirements of Article Eight, or (b) that a default shall have occurred and be
continuing with respect to the payment of principal of (or premium, if any) or
interest on or any Additional Amounts payable in of any Senior Indebtedness, or
(c) that the principal of the Debt Securities of any series (or in the case of
Original Issue Discount Debt Securities, the portion of the principal amount
thereof referred to in section 502) shall have been declared due and payable
pursuant to Section 502 and such declaration shall not have been rescinded and
annulled as provided in Section 502, then:

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<PAGE>

     (1)  in a circumstance described in the foregoing clause (a) or (b) the
holders of all Senior Indebtedness, and in the circumstance described in the
foregoing clause (c) the holders of all Senior Indebtedness (other than Other
Obligations) outstanding at the time the principal of such Debt Securities (or
in the case of Original Issue Discount Debt Securities, such portion of the
principal amount) shall have been so declared due and payable, shall first be
entitled to receive payment of the full amount due thereon in respect of
principal, premium (if any), Interest and Additional Amounts, or provision shall
be made for such payment in money or money's worth, before the Holders of any of
the Debt Securities are entitled to receive any payment on account of the
principal of (or premium, if any) or interest on or any Additional Amounts in
respect of the indebtedness evidenced by the Debt Securities;

     (2)  any payment by, or distribution of assets of, the Company of any kind
or character, whether in cash, property or securities (other than securities of
the Company as reorganized or readjusted or securities of the Company or any
other corporation provided for by a plan of reorganization or readjustment the
payment of which is subordinate, at least to the extent provided in this Article
with respect to the securities, the payment of all Senior Indebtedness, provided
that the rights of the Holders of the Senior Indebtedness are not altered by
such reorganization or readjustment), to which the Holders of any of the Debt
Securities would be entitled except for the subordination provisions of this
Article shall be paid or delivered by the person making such payment or
distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee
or otherwise, directly to the holders of such Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any
indenture under which any instrument evidencing an of such Senior Indebtedness
held or represented by each, to the extent necessary to make payment in full of
all Senior Indebtedness remaining unpaid after giving effect to any concurrent
payment or distribution (or provision therefor) to the holders of such Senior
Indebtedness, before any payment or distribution is made to the Holders of the
indebtedness evidenced by the Debt Securities under this Indenture; and

     (3)  in the event that, notwithstanding the foregoing, any payment by, or
distribution of assets of, the Company of any kind or character, whether in
cash, property or securities (other than securities of the Company as
reorganized or readjusted or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in this Article with respect to the
Debt Securities, to the payment of all Senior Indebtedness, provided that the
rights of the holders of Senior Indebtedness are not altered by such
reorganization or readjustment), shall be received by the Holders of an of the
Debt Securities before all Senior Indebtedness is paid in full, such payment or
distribution shall be paid over to the holders of such Senior Indebtedness is
paid in full, such payment or distribution shall be paid over to the holders of
such Senior Indebtedness or their representative or representatives or to the
trustee or trustees under any indenture under which any instruments evidencing
any of such Senior Indebtedness may have been issued, ratably as aforesaid, for
application to the payment of all Senior Indebtedness remaining unpaid until all
such Senior Indebtedness shall have been paid in full, after giving effect to
any concurrent payment or distribution (or provision therefor) to the holders of
such Senior Indebtedness.

     SECTION 1602.  SUBROGATION. Subject to the payment in full of all Senior
Indebtedness to which the indebtedness evidenced by the Debt Securities is in
the circumstances subordinated as provided in Section 1701, the Holders of the
Debt Securities shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to such Senior Indebtedness until all
amounts owing on the Debt Securities shall be paid in full, and, as between the
Company, its creditors other than holders of such Senior Indebtedness, and the
Holders of the Debt Securities, no such payment or distribution made to the
holders of such Senior Indebtedness by virtue of this Article which otherwise
would have been made to the Holders of the Debt Securities shall be deemed to be
a payment by the Company on account of such Senior Indebtedness, it being
understood that the provisions of this Article are and are intended solely for
the purpose of defining

                                       65
<PAGE>

the relative rights of the Holders of the Debt Securities, on the one hand, and
the holders of Senior Indebtedness.

     SECTION 1603.  OBLIGATIONS OF THE COMPANY UNCONDITIONAL. Nothing contained
in this Article or elsewhere in its Indenture or in the Debt Securities is
intended to or shall impair, as between the Company, its creditors other than
the holders of Senior Indebtedness, and the Holders of the Debt Securities, the
obligation of the Company, which is absolute and unconditional, to pay to the
Holders of the Debt Securities the principal of (and premium, if any) and
interest on and any Additional Amounts in respect of the Debt Securities as and
when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the Holders of the Debt
Securities and creditors of the Company other than the holders of Senior
Indebtedness nor shall anything herein or therein prevent the Trustee or the
Holder of any Security from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any,
under this Article of the holders of Senior Indebtedness in respect of cash,
property or securities of the Company received upon the exercise of any such
remedy.

     Upon any payment or distribution of assets of the Company referred to in
this Article, the Trustee and the Holders of the Debt Securities shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction in which any such dissolution, winding up, liquidation or
reorganization proceeding affecting the affairs of the Company is pending or
upon a certificate of the trustee in bankruptcy, receiver, assignee for the
benefit of creditors, liquidating trustee or agent or other person making any
payment or distribution, delivered to the Trustee or to the Holders of the Debt
Securities, for the purpose of ascertaining the persons entitled to participate
in such payment or distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the
amount paid or distributed thereon and all other facts pertinent thereto or to
this Article.

     SECTION 1604.  PAYMENTS ON DEBT SECURITIES PERMITTED. Nothing contained in
this Article or elsewhere in this Indenture, or in any of the Debt Securities,
shall affect the obligation of the Company to make, or prevent the Company from
making, payment of the principal of (or premium, if any) or interest on or any
Additional Amounts in respect of the Debt Securities in accordance with the
provision hereof and thereof, except as otherwise provided in this Article.

     SECTION 1605.  EFFECTUATION OF SUBORDINATION BY TRUSTEE. Each Holder of
Debt Securities, by his acceptance thereof, authorizes and directs the Trustee
in his behalf to take such action as may be necessary or appropriate to
effectuate the subordination provided in this Article and appoints the Trustee
his attorney-in-fact for any all such purposes.

     SECTION 1606.   KNOWLEDGE OF TRUSTEE. Notwithstanding the provisions of
this Article or any other provision of this Indenture, the Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness and shall
not be charged with knowledge of the existence of any facts which would prohibit
the making of any payment of moneys to or by the Trustee, or the taking of any
other action by the Trustee, unless and until the Trustee shall have received
written notice thereof from the Company, and Holder of Debt Securities, any
paying or conversion agent of the Company or the holder or representative of any
class of Senior Indebtedness; provided, however, that if the Trustee shall not
have received the notice provided for in this Section at least 3 Business Days
prior to the date upon which, by the terms hereof, any money may become payable
for any purpose (including, without limitation, the payment of the principal of
(or premium, if any) or interest on, or Additional Amounts in respect of, any
Security) then, anything herein contained to the contrary notwithstanding, the
Trustee shall have all power and authority to receive such money and to apply
the same to the purpose for which such money was received and shall not be
affected by any notice to the contrary which may be received by it during or
after such 3 Business Day period.

                                       66
<PAGE>

     SECTION 1607.  TRUSTEE MAY HOLD SENIOR INDEBTEDNESS. The Trustee in its
individual capacity shall be entitled to all the rights set forth in this
Article with respect to any Senior Indebtedness at the time held by it, to the
same extent as any other holder of Senior Indebtedness, and nothing in Section
313 of the Trust Indenture Act or elsewhere in this Indenture shall deprive the
Trustee of any of its rights as such holder.

     Nothing in this Article shall subordinate any claims of, or payments to,
the Trustee (under or pursuant to Section 606) to Senior Indebtedness.

     SECTION 1608.  RIGHTS OF HOLDERS OF SENIOR INDEBTEDNESS NOT IMPAIRED. No
right of any present or future holder of any Senior Indebtedness to enforce the
subordination herein shall at any time or in any way be prejudiced or impaired
by any act or failure to act on the part of the Company or by any non-
compliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

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

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

                                         BRE PROPERTIES, INC.

                                         By ___________________________________
                                         Title:

                                         ______________________________________
                                         as Trustee

[SEAL]

Attest:

Title: ___________________

                                       67
<PAGE>

                                 EXHIBIT A-___

     FORM OF CERTIFICATE TO BE GIVEN BY PERSON ENTITLED TO RECEIVE BEARER
       SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE

                                  CERTIFICATE

                                  -----------

     [insert title or sufficient description of Debt Securities to be delivered]
This is to certify that, as of the date hereof, and except as set forth below,
the above-captioned Debt Securities held by you for our account (i) are owned by
person(s) that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to United States federal income taxation regardless of its source
("United States person(s)"), (ii) are owned by United States person(s) that are
(a) foreign branches of United States financial institutions (financial
institutions, as defined in United States Treasury Regulations Section 2.165-
12(c)(1)(v) are herein referred to as "financial institutions") purchasing for
their own account or for resale, or (b) United States person(s) who acquired the
Debt Securities through foreign branches of United States financial institutions
and who hold the Debt Securities through such United States financial
institutions on the date hereof (and in either case (a) or (b), each such United
States financial institution hereby agrees, on its own behalf or through its
agent, that you may advise BRE PROPERTIES, INC. or its agent that such financial
institution will comply with the requirements of Section 165(j)(3)(A), (B) or
(C) of the United States Internal Revenue Code of 1986, as amended, and the
regulations thereunder), or (iii) are owned by United States or foreign
financial institutions) for purposes of resale during the restricted period (as
defined in United States Treasury Regulations Section 1.163-5(c)(2)(i)(D)(7)),
and, in addition, if the owner is a United States or foreign financial
institution described in clause (iii) above (whether or not also described in
clause (i) or (ii)), this is to further certify that such financial institution
has not acquired the Debt Securities for purposes of resale directly or
indirectly to a United States person or to a person within the United States or
its possessions.

     As used herein, "United States" means the United States of America
(including the States and the District of Columbia); and its "possessions"
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

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

     This certificate excepts and does not relate to [U.S.$] ____________ of
such interest in the above-captioned securities in respect of which we are not
able to certify and as to which we understand an exchange for an interest in a
Permanent Global Debt Security or an exchange for and delivery of definitive
Debt Securities (or, if relevant, collection of any interest) cannot be made
until we do so certify.

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

                                       1
<PAGE>

Dated:  _______________, 200_

[To be dated no earlier than the 15th day
prior to (i) the Exchange Date or (ii) the
relevant Interest Payment Date occurring
prior to the Exchange Date, as applicable]

                                   [Name of Person Making Certification]
                                   -------------------------------------

                                   (Authorized Signatory)

                                   Name:

                                   Title:

                                       2
<PAGE>

                                 EXHIBIT A-___

        FORM OF CERTIFICATE TO BE GIVEN BY EUROCLEAR AND CEDEL S.A. IN
       CONNECTION WITH THE EXCHANGE OF A PORTION OF A TEMPORARY GLOBAL
      SECURITY OR TO OBTAIN INTEREST PAYABLE PRIOR TO THE EXCHANGE DATE
                                  CERTIFICATE

                                  -----------

     [Insert title or sufficient description of Debt Securities to be delivered]
This is to certify that, based solely on written certifications that we have
received in writing, by tested telex or by electronic transmission from each of
the persons appearing in our records as persons entitled to a portion of the
principal amount set forth below (our "Member Organizations") substantially in
the form attached hereto, as of the date hereof, [U.S.$] ___________________
principal amount of the above-captioned Debt Securities (i) is owned by
person(s) that are not citizens or residents of the United States, domestic
partnerships, domestic corporations or any estate or trust the income of which
is subject to United States Federal income taxation regardless of its source
("United States person(s)"), (ii) is owned by United States person(s) that are
(a) foreign branches of United States financial institutions (financial
institutions, as defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v)
are herein referred to as "financial institutions") purchasing for their own
account or for resale, or (b) United States person(s) who acquired the Debt
Securities through foreign branches of United States financial institutions and
who hold the Debt Securities through such United States financial institutions
on the date hereof (and in either case (a) or (b), each such financial
institution has agreed, on its own behalf or through its agent, that we may
advise BRE PROPERTIES, INC. or its agent that such financial institution will
comply with the requirements of Section 165(j)(3)(A), (B) or (C) of the Internal
Revenue Code of 1986, as amended, and the regulations thereunder), or (iii) is
owned by United States or foreign financial institutions) for purposes of resale
during the restricted period (as defined in United States Treasury Regulations
Section 1.163-5(c)(2)(i)(D)(7)), and, to the further effect, that financial
institutions described in clause (iii) above (whether or not also described in
clause (i) or (ii)) have certified that they have not acquired the Debt
Securities for purposes of resale directly or indirectly to a United States
person or to a person within the United States or its possessions.

     As used herein, "United States" means the United States of America
(including the States and the District of Columbia) ; and its possessions
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

     We further certify that (i) we are not making available herewith for
exchange (or, if relevant, collection of any interest) any portion of the
temporary global Debt Security representing the above-captioned Debt Securities
excepted in the above-referenced certificates of Member Organizations and (ii)
as of the date hereof we have not received any notification from any of our
Member Organizations to the effect that the statements made by such Member
Organizations with respect to any portion of the part submitted herewith for
exchange (or, if relevant, collection of any interest) are no longer true and
cannot be relied upon as of the date hereof.

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

                                       3
<PAGE>

Dated:  _______________, 19__

[To be dated no earlier than the Exchange Date
or the relevant Interest Payment Date occurring
prior to the Exchange Date, as applicable]

                                   (Morgan Guaranty Trust Company of New York,
                                   Brussels Office,] as Operator of the
                                   Euroclear System (Cedel S.A.]

                                   By:_________________________________

                                       4<PAGE>

                                                                    EXHIBIT 10.1

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

                         AGREEMENT AND PLAN OF MERGER

                                     among

                      SANTA FE INTERNATIONAL CORPORATION

                               SILVER SUB, INC.

                             GOLD MERGER SUB, INC.

                                      and

                              GLOBAL MARINE INC.

                          Dated as of August 31, 2001

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                  Page
<S>                                                                                                               <C>
ARTICLE 1 THE MERGER............................................................................................    1
     Section 1.1    The Merger..................................................................................    1
     Section 1.2    The Closing.................................................................................    1
     Section 1.3    Effective Time..............................................................................    2

ARTICLE 2 MEMORANDUM AND ARTICLES OF ASSOCIATION OF SANTA FE AND CERTIFICATE OF INCORPORATION AND BYLAWS OF THE
           SURVIVING ENTITY.....................................................................................    2
     Section 2.1    Memorandum and Articles of Association of Santa Fe..........................................    2
     Section 2.2    Certificate of Incorporation of the Surviving Entity........................................    2
     Section 2.3    Bylaws of the Surviving Entity..............................................................    2

ARTICLE 3 DIRECTORS AND OFFICERS OF SANTA FE AND OF THE SURVIVING ENTITY; HEADQUARTERS..........................    3
     Section 3.1    Board of Directors of Santa Fe..............................................................    3
     Section 3.2    Certain Officers of Santa Fe................................................................    3
     Section 3.3    Employment Agreements.......................................................................    4
     Section 3.4    Board of Directors of Surviving Entity......................................................    4
     Section 3.5    Officers of Surviving Entity................................................................    4
     Section 3.6    Headquarters Location.......................................................................    4

ARTICLE 4 CONVERSION OF GLOBAL COMMON STOCK.....................................................................    4
     Section 4.1    Merger Ratio................................................................................    4
     Section 4.2    Conversion of Capital Stock of Global and Merger Sub........................................    4
     Section 4.3    Exchange of Certificates Representing Global Common Stock...................................    7
     Section 4.4    Adjustment of Merger Ratio..................................................................    9
     Section 4.5    Rule 16b-3 Approval.........................................................................    9

ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF GLOBAL..............................................................    9
     Section 5.1    Existence; Good Standing; Corporate Authority...............................................    9
     Section 5.2    Authorization, Validity and Effect of Agreements............................................   10
     Section 5.3    Capitalization..............................................................................   10
     Section 5.4    Subsidiaries................................................................................   10
     Section 5.5    Compliance with Laws; Permits...............................................................   11
     Section 5.6    No Conflict.................................................................................   12
     Section 5.7    SEC Documents...............................................................................   13
     Section 5.8    Litigation..................................................................................   13
     Section 5.9    Absence of Certain Changes..................................................................   13
     Section 5.10   Taxes.......................................................................................   14
     Section 5.11   Employee Benefit Plans......................................................................   15
     Section 5.12   Labor Matters...............................................................................   16
     Section 5.13   Environmental Matters.......................................................................   17
     Section 5.14   Intellectual Property.......................................................................   17
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                <C>
     Section 5.15   Decrees, Etc................................................................................   18
     Section 5.16   Insurance...................................................................................   18
     Section 5.17   No Brokers..................................................................................   18
     Section 5.18   Opinion of Financial Advisor................................................................   19
     Section 5.19   Santa Fe Share Ownership....................................................................   19
     Section 5.20   Vote Required...............................................................................   19
     Section 5.21   Ownership of Drilling Rigs and Drillships...................................................   19
     Section 5.22   Undisclosed Liabilities.....................................................................   20
     Section 5.23   Certain Contracts...........................................................................   20
     Section 5.24   Capital Expenditure Program.................................................................   21
     Section 5.25   Improper Payments...........................................................................   21

ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF SANTA FE, SUB AND MERGER SUB........................................   21
     Section 6.1    Existence; Good Standing; Corporate Authority...............................................   21
     Section 6.2    Authorization, Validity and Effect of Agreements............................................   22
     Section 6.3    Capitalization..............................................................................   22
     Section 6.4    Subsidiaries................................................................................   22
     Section 6.5    Compliance with Laws; Permits...............................................................   23
     Section 6.6    No Conflict.................................................................................   23
     Section 6.7    SEC Documents...............................................................................   24
     Section 6.8    Litigation..................................................................................   25
     Section 6.9    Absence of Certain Changes..................................................................   25
     Section 6.10   Taxes.......................................................................................   25
     Section 6.11   Employee Benefit Plans......................................................................   26
     Section 6.12   Labor Matters...............................................................................   27
     Section 6.13   Environmental Matters.......................................................................   28
     Section 6.14   Intellectual Property.......................................................................   29
     Section 6.15   Decrees, Etc................................................................................   29
     Section 6.16   Insurance...................................................................................   29
     Section 6.17   No Brokers..................................................................................   30
     Section 6.18   Opinion of Financial Advisor................................................................   30
     Section 6.19   Global Stock Ownership......................................................................   30
     Section 6.20   Vote Required...............................................................................   30
     Section 6.21   Ownership of Drilling Rigs and Drillships...................................................   30
     Section 6.22   Undisclosed Liabilities.....................................................................   31
     Section 6.23   Certain Contracts...........................................................................   31
     Section 6.24   Capital Expenditure Program.................................................................   32
     Section 6.25   Improper Payments...........................................................................   32

ARTICLE 7 COVENANTS.............................................................................................   32
     Section 7.1    Conduct of Business.........................................................................   32
     Section 7.2    No Solicitation by Global...................................................................   36
     Section 7.3    No Solicitation by Santa Fe.................................................................   37
     Section 7.4    Meetings of Stockholders....................................................................   38
     Section 7.5    Filings; Reasonable Best Efforts, Etc.......................................................   39
     Section 7.6    Inspection..................................................................................   41
</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                                                                <C>
     Section 7.7    Publicity...................................................................................   41
     Section 7.8    Registration Statement on Form S-4..........................................................   41
     Section 7.9    Listing Application.........................................................................   42
     Section 7.10   Letters of Accountants......................................................................   42
     Section 7.11   Agreements of Rule 145 Affiliates...........................................................   43
     Section 7.12   Expenses....................................................................................   43
     Section 7.13   Indemnification and Insurance...............................................................   43
     Section 7.14   Employee Matters............................................................................   44
     Section 7.15   Delivery of Santa Fe Ordinary Shares........................................................   46
     Section 7.16   Supplemental Indenture......................................................................   46
     Section 7.17   Notification................................................................................   47

ARTICLE 8 CONDITIONS............................................................................................   47
     Section 8.1    Conditions to Each Party's Obligation to Effect the Merger..................................   47
     Section 8.2    Conditions to Obligation of Global to Effect the Merger.....................................   48
     Section 8.3    Conditions to Obligation of Santa Fe, Sub and Merger Sub to Effect the Merger...............   49

ARTICLE 9 TERMINATION...........................................................................................   49
     Section 9.1    Termination by Mutual Consent...............................................................   49
     Section 9.2    Termination by Santa Fe or Global...........................................................   49
     Section 9.3    Termination by Global.......................................................................   50
     Section 9.4    Termination by Santa Fe.....................................................................   51
     Section 9.5    Effect of Termination.......................................................................   52
     Section 9.6    Extension; Waiver...........................................................................   53

ARTICLE 10 GENERAL PROVISIONS...................................................................................   53
     Section 10.1   Nonsurvival of Representations, Warranties and Agreements...................................   53
     Section 10.2   Notices.....................................................................................   53
     Section 10.3   Assignment; Binding Effect; Benefit.........................................................   54
     Section 10.4   Entire Agreement............................................................................   54
     Section 10.5   Amendments..................................................................................   55
     Section 10.6   Governing Law...............................................................................   55
     Section 10.7   Counterparts................................................................................   55
     Section 10.8   Headings....................................................................................   55
     Section 10.9   Interpretation..............................................................................   55
     Section 10.10  Waivers.....................................................................................   56
     Section 10.11  Incorporation of Exhibits...................................................................   56
     Section 10.12  Severability................................................................................   56
     Section 10.13  Enforcement of Agreement....................................................................   56
     Section 10.14  Waiver of Jury Trial........................................................................   57
</TABLE>

                                      iii
<PAGE>

                            GLOSSARY OF DEFINED TERMS

<TABLE>
<CAPTION>
Defined Terms                                                                                 Where Defined
-------------                                                                                 -------------
<S>                                                                                           <C>
Action......................................................................................  Section 7.13(a)
Affected Employee...........................................................................  Section 7.14(b)
Agreement...................................................................................  Preamble
Antitrust Laws..............................................................................  Section 7.5(c)
Applicable Laws.............................................................................  Section 5.5(a)
Assumed Plans...............................................................................  Section 4.2(d)
Certificate of Merger.......................................................................  Section 1.3
Certificates................................................................................  Section 4.3(b)
Closing.....................................................................................  Section 1.2
Closing Date................................................................................  Section 1.2
Code........................................................................................  Section 4.2(d)
Confidentiality and Standstill Agreement....................................................  Section 7.6
Cutoff Date.................................................................................  Section 7.2(d), 7.3(d)
DGCL........................................................................................  Section 1.1
Effective Time..............................................................................  Section 1.3
Employees...................................................................................  Section 7.14(d)
Employment Agreement........................................................................  Section 3.3
Environmental Laws..........................................................................  Section 5.13(a)
ERISA.......................................................................................  Section 5.11(a)
ERISA Affiliate.............................................................................  Section 5.11(b)
Exchange Act................................................................................  Section 4.5
Exchange Agent..............................................................................  Section 4.3(a)
Exchange Fund...............................................................................  Section 4.3(a)
Form S-4....................................................................................  Section 7.8(a)
Former Global Directors.....................................................................  Section 3.1(a)
Former Santa Fe Directors...................................................................  Section 3.1(a)
Global......................................................................................  Preamble
Global Acquisition Proposal.................................................................  Section 7.2(a)
Global Benefit Plans........................................................................  Section 5.11(a)
Global Common Stock.........................................................................  Section 4.2(b)
Global Convertible Debentures...............................................................  Section 4.3
Global Disclosure Letter....................................................................  Article 5 Preface
Global Material Adverse Effect..............................................................  Section 10.9(c)
Global Material Contract....................................................................  Section 5.23(a)
Global Option...............................................................................  Section 4.2(e)(i)
Global Permits..............................................................................  Section 5.5(b)
Global Permitted Liens......................................................................  Section 5.21
Global Real Property........................................................................  Section 5.5(d)
Global Reports..............................................................................  Section 5.7
Global Stock Plans..........................................................................  Section 4.1(e)(i)
Global Superior Proposal....................................................................  Section 7.2(a)
Hazardous Materials.........................................................................  Section 5.13(b)
HSR Act.....................................................................................  Section 5.6(b)
</TABLE>

                                      iv
<PAGE>

<TABLE>
<S>                                                                                           <C>
Indemnified Parties.........................................................................  Section 7.13(a)
Indenture Trustee...........................................................................  Section 5.6(c)
Letter of Transmittal.......................................................................  Section 4.3(b)
Liens.......................................................................................  Section 5.4
Material Adverse Effect.....................................................................  Section 10.9(c)
Merger......................................................................................  Recitals
Merger Ratio................................................................................  Section 4.1(a)
Merger Sub..................................................................................  Preamble
Non-U.S. Antitrust Laws.....................................................................  Section 7.5(a)(i)
NYSE........................................................................................  Section 4.3(e)
Proxy Statement/Prospectus..................................................................  Section 7.8(a)
Regulatory Filings..........................................................................  Section 5.6(b)
Returns.....................................................................................  Section 5.10(a)
Rule 145 Affiliates.........................................................................  Section 7.11
Rule 16b-3..................................................................................  Section 4.5
Santa Fe....................................................................................  Preamble
Santa Fe Acquisition Proposal...............................................................  Section 7.3(a)
Santa Fe Amendments.........................................................................  Section 2.1
Santa Fe Benefit Plans......................................................................  Section 6.11
Santa Fe Disclosure Letter..................................................................  Article 6 Preface
Santa Fe Material Adverse Effect............................................................  Section 10.9(c)
Santa Fe Material Contract..................................................................  Section 6.23(a)
Santa Fe Ordinary Shares....................................................................  Section 2.1
Santa Fe Ordinary Share Price...............................................................  Section 4.3(e)
Santa Fe Permits............................................................................  Section 6.5(b)
Santa Fe Permitted Liens....................................................................  Section 6.21
Santa Fe Preference Shares..................................................................  Section 6.3
Santa Fe Real Property......................................................................  Section 6.5(d)
Santa Fe Reports............................................................................  Section 6.7
Santa Fe Superior Proposal..................................................................  Section 7.3(a)
SEC.........................................................................................  Section 4.2(e)(ii)
Securities Act..............................................................................  Section 4.3(d)
Severance Program...........................................................................  Section 7.14(e)
Significant Subsidiary......................................................................  Section 5.4
Shareholder Agreement.......................................................................  Recitals
Sub.........................................................................................  Preamble
Subsidiary..................................................................................  Section 10.9(d)
Supplemental Indenture......................................................................  Section 5.6(c)
Surviving Entity............................................................................  Section 1.1
Taxes.......................................................................................  Section 5.10(e)
Third-Party Provisions......................................................................  Section 10.3
2001 Plan...................................................................................  Section 4.2(d)
</TABLE>

                                       v
<PAGE>

                         AGREEMENT AND PLAN OF MERGER

                  THIS AGREEMENT AND PLAN OF MERGER (this "Agreement") dated as
of August 31, 2001, is by and among Santa Fe International Corporation, a
company incorporated under the laws of the Cayman Islands ("Santa Fe"), Silver
Sub, Inc., a company organized under the laws of Delaware and a direct wholly
owned subsidiary of Santa Fe ("Sub"), Gold Merger Sub, Inc., a company organized
under the laws of Delaware and a direct wholly owned subsidiary of Sub ("Merger
Sub"), and Global Marine Inc., a company organized under the laws of Delaware
("Global").

                                   RECITALS

                  A.  The Merger.  At the Effective Time (as defined herein),
the parties intend to effect a merger of Merger Sub with and into Global, with
Global being the surviving entity (the "Merger"), thus enabling Sub to acquire
all of the stock of Global solely in exchange for voting shares of Santa Fe.

                  B.  Shareholder Agreement.  Concurrently with the execution
and delivery hereof, SFIC Holdings (Cayman), Inc., the owner of 43,500,000 Santa
Fe Ordinary Shares (as hereinafter defined), is entering into a Shareholder
Agreement (the "Shareholder Agreement") with Global providing for, among other
things, the voting of the Santa Fe Ordinary Shares owned by SFIC Holdings
(Cayman), Inc.

                  C.  Intended U.S. Accounting Treatment.  The parties to this
Agreement intend that the Merger be treated as the purchase of Santa Fe by
Global for U.S. generally accepted accounting principles.

                  NOW, THEREFORE, in consideration of the foregoing, and of the
representations, warranties, covenants and agreements contained herein, the
parties hereto hereby agree as follows:

                                   ARTICLE 1

                                  THE MERGER

                  Section 1.1  The Merger. Subject to the terms and conditions
of this Agreement, at the Effective Time, Merger Sub shall be merged with and
into Global in accordance with this Agreement, and the separate corporate
existence of Merger Sub shall thereupon cease. Global shall be the surviving
entity in the Merger (sometimes hereinafter referred to as the "Surviving
Entity"). The Merger shall have the effects specified herein and in the General
Corporation Law of the State of Delaware (the "DGCL").

                  Section 1.2  The Closing. Upon the terms and subject to the
conditions of this Agreement, the closing of the Merger (the "Closing") shall
take place (a) at the offices of Baker Botts L.L.P., One Shell Plaza, 910
Louisiana, Houston, Texas 77002, at 9:00 a.m., local time, on the first business
day immediately following the day on which the last to be fulfilled or waived of
the conditions set forth in Section 8.1, or, if on such day any condition set
forth in Section 8.2 or 8.3 has not been fulfilled or waived, as soon as
practicable after all the conditions set forth in
<PAGE>

Article 8 have been fulfilled or waived in accordance herewith or (b) at such
other time, date or place as Santa Fe and Global may agree. The date on which
the Closing occurs is hereinafter referred to as the "Closing Date."

                  Section 1.3  Effective Time. On the Closing Date, Santa Fe,
Global and Merger Sub shall cause a certificate of merger (the "Certificate of
Merger") meeting the requirements of Section 251 of the DGCL to be properly
executed and filed in accordance with such section. The Merger shall become
effective at the time of filing of the Certificate of Merger with the Secretary
of State of the State of Delaware in accordance with the DGCL or at such later
time that Santa Fe and Global shall have agreed upon and designated in such
filing as the effective time of the Merger (the "Effective Time").

                                   ARTICLE 2

            MEMORANDUM AND ARTICLES OF ASSOCIATION OF SANTA FE AND
        CERTIFICATE OF INCORPORATION AND BYLAWS OF THE SURVIVING ENTITY

                  Section 2.1  Memorandum and Articles of Association of Santa
Fe. Subject to the approval by the holders of the issued ordinary shares, par
value $.01 per share, of Santa Fe ("Santa Fe Ordinary Shares") as and to the
extent required by Cayman Islands law and Santa Fe's memorandum of association
and articles of association, as of the Effective Time, Santa Fe's memorandum of
association and articles of association shall be amended as described in Exhibit
2.1 hereto (the "Santa Fe Amendments") such that, among other things:

                  (a)     The name of Santa Fe shall be changed to
         "GlobalSantaFe Corporation"; and

                  (b)     Any action taken prior to the third anniversary of the
         Effective Time to remove or replace the Chairman of the Board or the
         Chief Executive Officer shall require a vote of two-thirds of the
         entire Board of Directors of Santa Fe.

                  Section 2.2  Certificate of Incorporation of the Surviving
Entity. As of the Effective Time, the certificate of incorporation of Global in
effect immediately prior to the Effective Time shall be the certificate of
incorporation of the Surviving Entity, until duly amended in accordance with
applicable law.

                  Section 2.3  Bylaws of the Surviving Entity. As of the
Effective Time, the bylaws of Global in effect immediately prior to the
Effective Time shall be the bylaws of the Surviving Entity, until duly amended
in accordance with applicable law.

                                   ARTICLE 3

                    DIRECTORS AND OFFICERS OF SANTA FE AND
                     OF THE SURVIVING ENTITY; HEADQUARTERS

                  Section 3.1  Board of Directors of Santa Fe.

                                       2
<PAGE>

                  (a)  At the Effective Time, the Board of Directors of Santa Fe
shall consist of 14 members, one-half consisting of current members of the Santa
Fe board of directors designated by Santa Fe, after consultation with Global,
before the Effective Time ("Former Santa Fe Directors") and one-half consisting
of current members of the Global board of directors designated by Global, after
consultation with Santa Fe, before the Effective Time ("Former Global
Directors"), with such persons being allocated by Santa Fe or Global as
applicable as nearly as practicable on a proportionate basis to each of the
three classes into which the Board of Directors is divided in accordance with
Santa Fe's articles of association. At the Effective Time, Robert E. Rose shall
be the Chairman of the Board of Santa Fe. From and after the Effective Time,
each person so designated shall serve as a director of Santa Fe until such
person's successor shall be elected and qualified or such person's earlier
death, resignation or removal in accordance with the memorandum of association
and articles of association of Santa Fe.

                  (b)  At the Effective Time, the membership of each committee
of the Board of Directors of Santa Fe shall consist of an equal number of Former
Santa Fe Directors and Former Global Directors. The Former Santa Fe Directors
shall select the Chairman of the Nominating and Governance Committee and the
Audit Committee. Robert E. Rose shall be Chairman of the Executive Committee.
The Former Global Directors shall select the Chairman of the Compensation
Committee. The Chairmen of all other committees shall be selected so that one-
half have been selected by the Former Global Directors and one-half selected by
the Former Santa Fe Directors.

                  (c)  Santa Fe shall cause the directors of Santa Fe not
continuing after the Effective Time to resign from the Board of Directors of
Santa Fe as of the Effective Time.

                  (d)  Prior to the Effective Time, the Board of Directors of
Santa Fe shall take such action as may be necessary to cause (i) any Santa Fe
designees who are changing classes to be elected to the appropriate classes as
of the Effective Time and (ii) the Global designees (including Robert E. Rose)
to be elected to the Board of Directors of Santa Fe as of the Effective Time.

                  Section 3.2  Certain Officers of Santa Fe. At the Effective
Time, Robert E. Rose shall be the Chairman of the Board of Santa Fe, C. Stedman
Garber, Jr. shall be the President and Chief Executive Officer of Santa Fe and
the other individuals listed on Exhibit 3.2 hereto shall have the officer
positions with Santa Fe listed on such Exhibit, and each such officer shall
thereafter serve until such officer's successor shall be appointed or such
officer's earlier death, resignation, retirement, disqualification or removal in
accordance with the memorandum of association and articles of association of
Santa Fe. If, before the Effective Time, any such person is unable or unwilling
to serve as an officer of Santa Fe in the capacity set forth in Exhibit 3.2,
then a substitute officer shall be selected by mutual agreement of Santa Fe and
Global.

                  Section 3.3  Employment Agreements. Santa Fe is entering into
a letter agreement, with duties to be effective as of the Effective Time, with
C. Stedman Garber, Jr. and shall assume, as of the Effective Time, Global's
obligation under the employment agreement with Robert E. Rose, as amended,
identified on Schedule 5.9 to the Global Disclosure Letter (as hereinafter
defined) (each such agreement, as so amended, or any successor agreement,
including any amendment thereto, an "Employment Agreement"). During the terms of
their respective

                                       3
<PAGE>

Employment Agreements, Mr. Rose and Mr. Garber will have the respective powers,
and perform the respective duties, set forth in each of their respective
Employment Agreements.

                  Section 3.4  Board of Directors of Surviving Entity. The
directors of Merger Sub immediately prior to the Effective Time shall be the
directors of the Surviving Entity as of the Effective Time, until their
successors shall be elected and qualified or their earlier death, resignation or
removal in accordance with the certificate of incorporation and bylaws of the
Surviving Entity.

                  Section 3.5  Officers of Surviving Entity. The officers of
Global immediately prior to the Effective Time shall be the officers of the
Surviving Entity as of the Effective Time, until their successors shall be
appointed or their earlier death, resignation or removal in accordance with the
certificate of incorporation and bylaws of the Surviving Entity.

                  Section 3.6  Headquarters Location. From and after the
Effective Time, the principal U.S. executive offices of Santa Fe shall be
located in Houston, Texas.

                                   ARTICLE 4

                       CONVERSION OF GLOBAL COMMON STOCK

                  Section 4.1  Merger Ratio. For purposes of this Agreement, the
"Merger Ratio" shall equal 0.665.

                  Section 4.2  Conversion of Capital Stock of Global and Merger
Sub.

                  (a)     At the Effective Time, each share of common stock, par
value $.01 per share, of Merger Sub issued and outstanding immediately prior to
the Effective Time shall, by virtue of the Merger and without any action on the
part of the holder thereof, be converted into and become one fully paid and non-
assessable share of common stock, par value $.01 per share, of the Surviving
Entity.

                  (b)     At the Effective Time, each share of common stock, par
value $.10 per share, of Global ("Global Common Stock") issued and outstanding
immediately prior to the Effective Time (other than shares of Global Common
Stock to be canceled without payment of any consideration therefor pursuant to
Section 4.2(c)), shall, by virtue of the Merger and without any action on the
part of the holder thereof, be converted into the right to receive a number of
Santa Fe Ordinary Shares equal to the Merger Ratio, which Santa Fe Ordinary
Shares shall be transferred by Sub pursuant to the Merger, and each such share
of Global Common Stock shall cease to be outstanding and shall be canceled and
retired and shall cease to exist, and each holder of such shares of Global
Common Stock shall thereafter cease to have any rights with respect to such
shares of Global Common Stock, except the right to receive, without interest,
certificates for Santa Fe Ordinary Shares in accordance with Section 4.3(b) and
cash for fractional shares in accordance with Sections 4.3(b) and 4.3(d) upon
the surrender of the relevant Certificate (as hereinafter defined).

                  (c)     Each share of Global Common Stock issued and held in
Global's treasury and each share of Global Common Stock owned by any wholly
owned Subsidiary of Global or

                                       4
<PAGE>

by Santa Fe, Sub or Merger Sub, shall, at the Effective Time and by virtue of
the Merger, cease to be outstanding and shall be canceled and retired without
payment of any consideration therefor, and no capital shares of Santa Fe or
other consideration shall be delivered in exchange therefor.

                  (d)      (i)   At the Effective Time, all options to acquire
shares of Global Common Stock outstanding at the Effective Time under Global's
stock plans (collectively, the "Global Stock Plans") identified in Section
4.2(d) of the Global Disclosure Letter and all options to acquire shares of
Global Common Stock issued hereafter pursuant to Section 7.1(f) (individually, a
"Global Option" and collectively, the "Global Options") shall remain outstanding
following the Effective Time, subject to the modifications described in this
Section 4.2(d). Prior to the Effective Time, Global and Santa Fe shall take all
actions (if any) as may be required to permit the assumption of such Global
Options by Santa Fe pursuant to this Section 4.2(d)(i). At the Effective Time,
the Global Options shall be assumed and adjusted by Santa Fe in such manner that
Santa Fe (i) is a corporation "assuming a stock option in a transaction to which
Section 424(a) applies" within the meaning of Section 424 of the U.S. Internal
Revenue Code of 1986, as amended (the "Code"), or (ii) to the extent that the
Global Option is not or ceases to qualify as an "incentive stock option" within
the meaning of Section 422 of the Code, would be such a corporation were Section
424 of the Code applicable to such option. Each Global Option assumed and
adjusted by Santa Fe shall, in accordance with the Global Stock Plans and the
option agreements entered into pursuant thereto, be fully vested and exercisable
as of the Effective Time and shall otherwise be subject to the same terms and
conditions as under the applicable Global Stock Option Plan and the applicable
option agreement entered into pursuant thereto, except that (i) immediately
following the Effective Time (A) each Global Option shall be exercisable for
that whole number of Santa Fe Ordinary Shares equal to the product (rounded to
the nearest whole share) of the number of shares of Global Common Stock subject
to such Global Option immediately prior to the Effective Time multiplied by the
Merger Ratio, and (B) the exercise price per Santa Fe Ordinary Share shall be an
amount equal to the exercise price per share of Global Common Stock subject to
such Global Option in effect immediately prior to the Effective Time divided by
the Merger Ratio (the price per share, as so determined, being rounded down to
the nearest whole cent), and (ii) as of the Effective Time, each Global Option
outstanding under Global's 1990 Non-Employee Director Stock Option Plan
identified in Section 4.2(d) of the Global Disclosure Letter shall be deemed
modified to remain exercisable for the full scheduled term of such Global Option
in the event the holder of such Global Option does not become a non-employee
director of Santa Fe, or terminates service as a non-employee director of Santa
Fe prior to the expiration of the option under conditions which would permit the
option to remain outstanding and exercisable for its full scheduled term under
the terms of the Global Options issued to such non-employee director pursuant to
the Global 2001 Non-Employee Director Stock Option and Incentive Plan (the "2001
Plan"), and to remain exercisable for three months following termination of
service under any other conditions. Without limiting the foregoing, effective at
the Effective Time, Santa Fe shall assume the Global 1998 Stock Option and
Incentive Plan, the Global 1994 Non-Employee Stock Option and Incentive Plan,
and the 2001 Plan (collectively the "Assumed Plans") for purposes of employing
such plans to make grants of stock options and other awards based on Santa Fe
Ordinary Shares following the Effective Time.

                                       5
<PAGE>

                           (ii)  At or prior to the Effective Time, Santa Fe
                  shall take all corporate action necessary to reserve for
                  issuance a number of Santa Fe Ordinary Shares equal to the
                  number of Santa Fe Ordinary Shares available for issuance
                  pursuant to the Assumed Plans (which number shall be the
                  product (rounded to the nearest whole share) of the number of
                  shares of Global Common Stock available for issuance
                  immediately prior to the Effective Time multiplied by the
                  Merger Ratio). On the Closing Date, Santa Fe shall file with
                  the U.S. Securities and Exchange Commission (the "SEC") a
                  Registration Statement on Form S-8 (or a post-effective
                  amendment on Form S-8 with respect to the Form S-4 (as defined
                  in Section 7.8) or such other appropriate form) covering all
                  such Santa Fe Ordinary Shares and shall cause such
                  registration statement to remain effective (and shall cause
                  the prospectus or prospectuses relating thereto to remain
                  compliant with applicable securities laws) for as long as
                  there are outstanding any such Global Options.

                           (iii) Except as otherwise specifically provided by
                  this Section 4.2(d), the terms of the Global Options and the
                  relevant Global Stock Plans, as in effect on the Effective
                  Time, shall remain in full force and effect with respect to
                  the Global Options after giving effect to the Merger and the
                  assumptions by Santa Fe as set forth above. As soon as
                  practicable following the Effective Time, Santa Fe shall
                  deliver to the holders of Global Options appropriate notices
                  setting forth such holders' rights pursuant to the respective
                  Global Stock Plans and the agreements evidencing the grants of
                  such Global Options, and that such Global Options and such
                  agreements shall be assumed by Santa Fe and shall continue in
                  effect on the same terms and conditions (subject to the
                  adjustments required by this Section 4.2(d)).

                  (e) Santa Fe shall agree to be bound by the conversion
provisions of Global's Zero Coupon Convertible Debentures due 2020 (the "Global
Convertible Debentures"), such that following the Effective Time, each
outstanding Global Convertible Debenture will be convertible into the number of
Santa Fe Ordinary Shares (and cash in lieu of fractional shares) that the holder
thereof would have had the right to receive after the Effective Time if such
Global Convertible Debenture had been converted immediately prior to the
Effective Time.

                  Section 4.3  Exchange of Certificates Representing Global
                               Common Stock.

                  (a) As of the Effective Time, Sub shall appoint Mellon
Investor Services LLC or such other party reasonably satisfactory to Global as
exchange agent (the "Exchange Agent"), and Sub shall, when and as needed,
deposit, or cause to be deposited with the Exchange Agent for the benefit of the
holders of shares of Global Common Stock for exchange in accordance with this
Article 4, certificates representing the Santa Fe Ordinary Shares to be issued
pursuant to Section 4.2 and delivered pursuant to this Section 4.3 in exchange
for outstanding shares of Global Common Stock. When and as needed, the Surviving
Entity shall provide the Exchange Agent immediately following the Effective Time
cash sufficient to pay cash in lieu of fractional shares in accordance with
Sections 4.3(b) and 4.3(d) (such cash and certificates for Santa Fe Ordinary
Shares together with any dividends or distributions with respect thereto, being
hereinafter referred to as the "Exchange Fund").

                                       6
<PAGE>

                  (b)     Promptly after the Effective Time, Sub shall cause the
Exchange Agent to mail to each holder of record of one or more certificates
("Certificates") that immediately prior to the Effective Time represented shares
of Global Common Stock (other than to holders of shares of Global Common Stock
that, pursuant to Section 4.2(c), are canceled without payment of any
consideration therefor): (A) a letter of transmittal (the "Letter of
Transmittal") which shall specify that delivery shall be effected, and risk of
loss and title to the Certificates shall pass, only upon delivery of the
Certificates to the Exchange Agent and shall be in such form and have such other
provisions as Santa Fe may reasonably specify and (B) instructions for use in
effecting the surrender of the Certificates in exchange for certificates
representing Santa Fe Ordinary Shares and cash in lieu of fractional shares.
Upon surrender of a Certificate for cancellation to the Exchange Agent together
with such Letter of Transmittal, duly executed and completed in accordance with
the instructions thereto, the holder of such Certificate shall be entitled to
receive in exchange therefor (x) a certificate representing that number of whole
Santa Fe Ordinary Shares and (y) a check representing the amount of cash in lieu
of fractional shares, if any, and unpaid dividends and distributions, if any,
which such holder has the right to receive pursuant to the provisions of this
Article 4, after giving effect to any required withholding tax, and the
Certificate so surrendered shall forthwith be canceled. No interest will be paid
or accrued on the cash in lieu of fractional shares and unpaid dividends and
distributions, if any, payable to holders of Certificates. In the event of a
transfer of ownership of Global Common Stock which is not registered in the
transfer records of Global, a certificate representing the proper number of
Santa Fe Ordinary Shares together with a check for the cash to be paid in lieu
of fractional shares, may be issued to such a transferee if the Certificate
representing such Global Common Stock is presented to the Exchange Agent,
accompanied by all documents required to evidence and effect such transfer and
to evidence that any applicable stock transfer taxes have been paid.

                  (c)     Notwithstanding any other provisions of this
Agreement, no dividends or other distributions declared or made after the
Effective Time with respect to Santa Fe Ordinary Shares with a record date after
the Effective Time shall be paid to the holder of any unsurrendered Certificate
with respect to the Santa Fe Ordinary Shares represented by such Certificate as
a result of the conversion provided in Section 4.2(b) or 4.2(c) until such
Certificate is surrendered as provided herein. Subject to the effect of
applicable laws, following surrender of any such Certificate, there shall be
paid to the holder of the Certificates so surrendered, without interest, (i) at
the time of such surrender, the amount of dividends or other distributions with
a record date after the Effective Time theretofore payable and not paid with
respect to the number of whole Santa Fe Ordinary Shares issued pursuant to
Section 4.2, less the amount of any withholding taxes, and (ii) at the
appropriate payment date, the amount of dividends or other distributions with a
record date after the Effective Time but prior to surrender and a payment date
subsequent to surrender payable with respect to such whole Santa Fe Ordinary
Shares, less the amount of any withholding taxes.

                  (d)     At or after the Effective Time, the Surviving Entity
shall pay from funds on hand at the Effective Time any dividends or make other
distributions with a record date prior to the Effective Time that may have been
declared or made by Global on shares of Global Common Stock which remain unpaid
at the Effective Time, and after the Effective Time, there shall be no transfers
on the stock transfer books of the Surviving Entity of the shares of Global
Common Stock which were outstanding immediately prior to the Effective Time. If,
after the Effective Time, Certificates are presented to the Surviving Entity,
the presented Certificates shall

                                       7
<PAGE>

be canceled and exchanged for certificates representing Santa Fe Ordinary Shares
and cash in lieu of fractional shares, if any, deliverable in respect thereof
pursuant to this Agreement in accordance with the procedures set forth in this
Article 4. Certificates surrendered for exchange by any person constituting an
"affiliate" of Global for purposes of Rule 145(c) under the Securities Act of
1933, as amended (the "Securities Act"), shall not be exchanged until Global has
received a written agreement from such person as provided in Section 7.11.

                  (e)     No fractional Santa Fe Ordinary Shares shall be issued
pursuant hereto. In lieu of the issuance of any fractional Santa Fe Ordinary
Shares pursuant to Section 4.2(b), cash adjustments provided by Sub will be paid
to holders in respect of any fractional Santa Fe Ordinary Shares that would
otherwise be issuable, and the amount of such cash adjustment shall be equal to
such fractional proportion of the Santa Fe Ordinary Share Price. For purposes of
this Agreement, the "Santa Fe Ordinary Share Price" shall mean the average of
the per share closing prices of the Santa Fe Ordinary Shares as reported on the
consolidated transaction reporting system for securities traded on the New York
Stock Exchange, Inc. ("NYSE") (as reported in the New York City edition of The
Wall Street Journal or, if not reported thereby, another authoritative source)
for the 20 consecutive trading days ending on the fifth trading day prior to the
Closing Date, appropriately adjusted for any stock splits, reverse stock splits,
stock dividends, recapitalizations or other similar transactions.

                  (f)     Any portion of the Exchange Fund (including the
proceeds of any investments thereof and any certificates for Santa Fe Ordinary
Shares) that remains undistributed to the former stockholders of Global one year
after the Effective Time shall be delivered to Sub. Any former stockholders of
Global who have not theretofore complied with this Article 4 shall thereafter
look only to Sub for delivery of certificates representing their Santa Fe
Ordinary Shares and cash in lieu of fractional shares and to Santa Fe for any
unpaid dividends and distributions on the Santa Fe Ordinary Shares deliverable
to such former stockholder pursuant to this Agreement.

                  (g)     None of Santa Fe, Sub, Global, the Surviving Entity,
the Exchange Agent or any other person shall be liable to any person for any
portion of the Exchange Fund properly delivered to a public official pursuant to
applicable abandoned property, escheat or similar laws.

                  (h)     In the event any Certificate shall have been lost,
stolen or destroyed, upon the making of an affidavit of that fact by the person
claiming such Certificate to be lost, stolen or destroyed and, if required by
the Surviving Entity, the posting by such person of a bond in such reasonable
amount as the Surviving Entity may direct as indemnity against any claim that
may be made against it with respect to such Certificate, the Exchange Agent will
issue in exchange for such lost, stolen or destroyed Certificate certificates
representing the Santa Fe Ordinary Shares, cash in lieu of fractional shares and
unpaid dividends and distributions on Santa Fe Ordinary Shares, as provided in
Section 4.3(c), deliverable in respect thereof pursuant to this Agreement.

                  Section 4.4  Adjustment of Merger Ratio. In the event that,
subsequent to the date of this Agreement but prior to the Effective Time, Santa
Fe changes the number of Santa Fe Ordinary Shares, or Global changes the number
of shares of Global Common Stock, issued and outstanding as a result of a stock
split, reverse stock split, stock dividend, recapitalization or

                                       8
<PAGE>

other similar transaction, the Merger Ratio and other items dependent thereon
shall be appropriately adjusted.

          Section 4.5 Rule 16b-3 Approval. Santa Fe agrees that the Santa Fe
Board of Directors or the Executive Compensation Committee of the Santa Fe Board
of Directors shall, at or prior to the Effective Time, adopt resolutions
specifically approving, for purposes of Rule 16b-3 ("Rule 16b-3") under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), the receipt,
pursuant to Section 4.2, of Santa Fe Ordinary Shares, and of options to acquire
Santa Fe Ordinary Shares, by executive officers or directors of Global who
become executive officers or directors of Santa Fe subject to Rule 16b-3.

                                   ARTICLE 5

                   REPRESENTATIONS AND WARRANTIES OF GLOBAL

          Except as set forth in the disclosure letter delivered to Santa Fe by
Global at or prior to the execution hereof (the "Global Disclosure Letter") and
making reference to the particular subsection of this Agreement to which
exception is being taken, Global represents and warrants to Santa Fe, Sub and
Merger Sub that:

          Section 5.1 Existence; Good Standing; Corporate Authority. Global is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware. Global is duly qualified to do business and, to
the extent such concept or similar concept exists in the relevant jurisdiction,
is in good standing under the laws of any jurisdiction in which the character of
the properties owned or leased by it therein or in which the transaction of its
business makes such qualification necessary, except where the failure to be so
qualified does not and is not reasonably likely to have, individually or in the
aggregate, a Global Material Adverse Effect (as defined in Section 10.9). Global
has all requisite corporate power and authority to own, operate and lease its
properties and to carry on its business as now conducted. The copies of Global's
certificate of incorporation and bylaws previously made available to Santa Fe
are true and correct and contain all amendments as of the date hereof.

          Section 5.2 Authorization, Validity and Effect of Agreements. Global
has the requisite corporate power and authority to execute and deliver this
Agreement and all other agreements and documents contemplated hereby to which it
is a party. The consummation by Global of the transactions contemplated hereby
have been duly authorized by all requisite corporate action on behalf of Global,
other than the approvals referred to in Section 5.20. This Agreement constitutes
the valid and legally binding obligation of Global, enforceable against Global
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to creditors' rights
and general principles of equity. Global has taken all action necessary to
render the restrictions set forth in Section 203 of the DGCL, and any other
applicable takeover law restricting or purporting to restrict business
combinations, and in Article Ninth of its certificate of incorporation
inapplicable to this Agreement and the transactions contemplated hereby.

          Section 5.3 Capitalization. The authorized capital stock of Global
consists of 300,000,000 shares of Global Common Stock and 10,000,000 shares of
preferred stock, par

                                       9
<PAGE>

value $.01 per share. As of August 29, 2001, there were 176,602,294 outstanding
shares of Global Common Stock, 19,124,251 shares of Global Common Stock reserved
for issuance upon conversion of Global Options, 241,891 shares reserved for
issuance under the Global Non-Employee Director Restricted Stock Plan, 7,330,920
shares of Global Common Stock reserved for issuance upon conversion of
outstanding Global Convertible Debentures, 5,043 shares of Global Common Stock
reserved for issuance upon conversion of Global senior debt (none of which
shares will ever be issuable because none of such senior debt remains
enforceable) and no outstanding shares of Global preferred stock. All such
issued and outstanding shares of Global Common Stock are duly authorized,
validly issued, fully paid, nonassessable and free of preemptive rights. As of
the date of this Agreement, except as set forth in this Section 5.3, there are
no outstanding shares of capital stock and there are no options, warrants,
calls, subscriptions, convertible securities or other rights, agreements or
commitments which obligate Global or any of its Subsidiaries to issue, transfer
or sell any shares of capital stock or other voting securities of Global or any
of its Subsidiaries. Global has no outstanding bonds, debentures, notes or other
obligations the holders of which have the right to vote (or which are
convertible into or exercisable for securities having the right to vote) with
the stockholders of Global on any matter.

          Section 5.4 Subsidiaries. For purposes of this Agreement, "Significant
Subsidiary" shall mean significant subsidiary as defined in Rule 1-02 of
Regulation S-X of the Exchange Act. Each of Global's Significant Subsidiaries is
a corporation or other legal entity duly organized, validly existing and, to the
extent such concept or similar concept exists in the relevant jurisdiction, in
good standing under the laws of its jurisdiction of incorporation or
organization, has the corporate or other entity power and authority to own,
operate and lease its properties and to carry on its business as it is now being
conducted, and is duly qualified to do business and is in good standing (where
applicable) in each jurisdiction in which the ownership, operation or lease of
its property or the conduct of its business requires such qualification, except
for jurisdictions in which such failure to be so qualified or to be in good
standing does not and is not reasonably likely to have a Global Material Adverse
Effect. As of the date of this Agreement, all of the outstanding shares of
capital stock of, or other ownership interests in, each of Global's Subsidiaries
are duly authorized, validly issued, fully paid and nonassessable and are owned,
directly or indirectly, by Global free and clear of all mortgages, deeds of
trust, liens, security interests, pledges, leases, conditional sale contracts,
charges, privileges, easements, rights of way, reservations, options, rights of
first refusal and other encumbrances ("Liens").

          Section 5.5 Compliance with Laws; Permits. Except for such matters as,
individually or in the aggregate, do not or are not reasonably likely to have a
Global Material Adverse Effect and except for matters arising under
Environmental Laws (as defined herein) which are treated exclusively in Section
5.13:

          (a) Neither Global nor any Subsidiary of Global is in violation of any
     applicable law, rule, regulation, code, governmental determination, order,
     treaty, convention, governmental certification requirement or other public
     limitation, U.S. or non-U.S. (collectively, "Applicable Laws"), and no
     claim is pending or, to the knowledge of Global, threatened with respect to
     any such matters. No condition exists which does or is reasonably likely to
     constitute a violation of or deficiency under any Applicable Law by Global
     or any Subsidiary of Global.

                                       10
<PAGE>

          (b) Global and each Subsidiary of Global hold all permits, licenses,
     certifications, variations, exemptions, orders, franchises and approvals of
     all governmental or regulatory authorities necessary for the conduct of
     their respective businesses (the "Global Permits"). All Global Permits are
     in full force and effect and there exists no default thereunder or breach
     thereof, and Global has no notice or actual knowledge that such Global
     Permits will not be renewed in the ordinary course after the Effective
     Time. No governmental authority has given, or to the knowledge of Global
     threatened to give, any action to terminate, cancel or reform any Global
     Permit.

          (c) Each drilling rig, drillship or other drilling unit owned or
     leased by Global or a subsidiary of Global which is subject to
     classification is in class according to the rules and regulations of the
     applicable classifying body and is duly and lawfully documented under the
     laws of its flag jurisdiction.

          (d) Global and each Subsidiary of Global possess all permits,
     licenses, operating authorities, orders, exemptions, franchises, variances,
     consents, approvals or other authorizations required for the present
     ownership and operation of all its real property or leaseholds ("Global
     Real Property"). There exists no material default or breach with respect
     to, and no party or governmental authority has taken or, to the knowledge
     of Global, threatened to take, any action to terminate, cancel or reform
     any such permit, license, operating authority, order, exemption, franchise,
     variance, consent, approval or other authorization pertaining to Global
     Real Property.

          Section 5.6 No Conflict. (a) Neither the execution and delivery by
Global of this Agreement nor the consummation by Global of the transactions
contemplated hereby in accordance with the terms hereof will (i) subject to the
approvals referred to in Section 5.20, conflict with or result in a breach of
any provisions of the certificate of incorporation or bylaws of Global, (ii)
violate, or conflict with, or result in a breach of any provision of, or
constitute a default (or an event which, with notice or lapse of time or both,
would constitute a default) under, or result in the termination or in a right of
termination or cancellation of, or give rise to a right of purchase under, or
accelerate the performance required by, or result in the creation of any Lien
upon any of the properties of Global or its Subsidiaries under, or result in
being declared void, voidable, or without further binding effect, or otherwise
result in a detriment to Global or any of its Subsidiaries under, any of the
terms, conditions or provisions of, any note, bond, mortgage, indenture, deed of
trust, license, franchise, permit, lease, contract, agreement, joint venture or
other instrument or obligation to which Global or any of its Subsidiaries is a
party, or by which Global or any of its Subsidiaries or any of their properties
is bound or affected or (iii) subject to the filings and other matters referred
to in Section 5.6(b), contravene or conflict with or constitute a violation of
any provision of any law, rule, regulation, judgment, order or decree binding
upon or applicable to Global or any of its Subsidiaries, except, for such
matters described in clause (ii) or (iii) as do not and are not reasonably
likely to have, individually or in the aggregate, a Global Material Adverse
Effect.

          (b) Neither the execution and delivery by Global of this Agreement nor
the consummation by Global of the transactions contemplated hereby in accordance
with the terms hereof will require any consent, approval or authorization of, or
filing or registration with, any governmental or regulatory authority, other
than (i) the filing of the Certificate of Merger

                                       11
<PAGE>

provided for in Section 1.3, (ii) filings required under the U.S. Hart-Scott-
Rodino Antitrust Improvements Act of 1976, as amended (the "HSR Act"), the
Exchange Act, the Securities Act or applicable state securities and "Blue Sky"
laws, and (iii) filings and notifications required under applicable Non-U.S.
antitrust laws set forth in Schedule 5.6 of the Global Disclosure Letter ((i),
(ii) and (iii) collectively, the "Regulatory Filings"), except for any consent,
approval or authorization the failure of which to obtain and for any filing or
registration the failure of which to make does not and is not reasonably likely
to have a Global Material Adverse Effect.

          (c) This Agreement, the Merger and the transactions contemplated
hereby do not, and will not upon consummation of such transactions in accordance
with their terms, constitute a "Change of Control" for the purposes of, or a
default under, (A) the Indenture dated as of September 1, 1997, between Global
and Wilmington Trust Company, as Trustee (the "Indenture Trustee"), or the First
Supplemental Indenture dated as of June 23, 2000 between Global and the
Indenture Trustee (the "Supplemental Indenture") or (B) the Global Convertible
Debentures.

          Section 5.7 SEC Documents. Global has filed with the SEC all documents
(including exhibits and any amendments thereto) required to be so filed by it
since January 1, 1999 pursuant to Sections 13(a), 14(a) and 15(d) of the
Exchange Act, and has made available to Santa Fe each registration statement,
report, proxy statement or information statement (other than preliminary
materials) it has so filed, each in the form (including exhibits and any
amendments thereto) filed with the SEC (collectively, the "Global Reports"). As
of its respective date, each Global Report (i) complied in all material respects
in accordance with the applicable requirements of the Exchange Act and the rules
and regulations thereunder and (ii) did not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements made therein, in the light of the circumstances
under which they were made, not misleading except for such statements, if any,
as have been modified by subsequent filings with the SEC prior to the date
hereof. Each of the consolidated balance sheets included in or incorporated by
reference into the Global Reports (including the related notes and schedules)
fairly presents in all material respects the consolidated financial position of
Global and its Subsidiaries as of its date, and each of the consolidated
statements of operations, cash flows and changes in stockholders' equity
included in or incorporated by reference into the Global Reports (including any
related notes and schedules) fairly presents in all material respects the
results of operations, cash flows or changes in stockholders' equity, as the
case may be, of Global and its Subsidiaries for the periods set forth therein
(subject, in the case of unaudited statements, to (x) such exceptions as may be
permitted by Form 10-Q of the SEC and (y) normal year-end audit adjustments), in
each case in accordance with generally accepted accounting principles
consistently applied during the periods involved, except as may be noted
therein. Except as and to the extent set forth on the consolidated balance sheet
of Global and its Subsidiaries included in the most recent Global Report filed
prior to the date of this Agreement that includes such a balance sheet,
including all notes thereto, as of the date of such balance sheet, neither
Global nor any of its Subsidiaries has any liabilities or obligations of any
nature (whether accrued, absolute, contingent or otherwise) that would be
required to be reflected on, or reserved against in, a balance sheet of Global
or in the notes thereto prepared in accordance with generally accepted
accounting principles consistently applied, other than liabilities or
obligations which do not and are not reasonably likely to have, individually or
in the aggregate, a Global Material Adverse Effect.

                                       12
<PAGE>

          Section 5.8  Litigation. Except as described in the Global Reports
filed prior to the date of this Agreement, there are no actions, suits or
proceedings pending against Global or any of its Subsidiaries or, to Global's
knowledge, threatened against Global or any of its Subsidiaries, at law or in
equity or in any arbitration or similar proceedings, before or by any U.S.
federal, state or non-U.S. court, commission, board, bureau, agency or
instrumentality or any U.S. or non-U.S. arbitral or other dispute resolution
body, that are reasonably likely to have, individually or in the aggregate, a
Global Material Adverse Effect.

          Section 5.9  Absence of Certain Changes. From December 31, 2000 to the
date of this Agreement, there has not been (i) any event or occurrence that has
had or is reasonably likely to have a Global Material Adverse Effect, (ii) any
material change by Global or any of its Subsidiaries, when taken as a whole, in
any of its accounting methods, principles or practices or any of its tax
methods, practices or elections, (iii) any declaration, setting aside or payment
of any dividend or distribution in respect of any capital stock of Global or any
redemption, purchase or other acquisition of any of its securities or (iv) any
increase in or establishment of any bonus, insurance, severance, deferred
compensation, pension, retirement, profit sharing, stock option, stock purchase
or other employee benefit plan, except in the ordinary course of business
consistent with past practice.

          Section 5.10 Taxes. (a) All tax returns, statements, reports,
declarations, estimates and forms ("Returns") required to be filed by or with
respect to Global and any of its Subsidiaries (including any Return required to
be filed by a consolidated, combined or unitary group that included Global or
any of its Subsidiaries) on or prior to the date hereof have been duly filed on
a timely basis with the appropriate governmental authorities, except to the
extent that any failure to file does not and is not reasonably likely to have,
individually or in the aggregate, a Global Material Adverse Effect, and all
taxes due with such Returns have been duly paid, or deposited in full on a
timely basis or adequately reserved for in accordance with generally accepted
accounting principles, except to the extent that any failure to pay or deposit
or make adequate provision for the payment of such taxes does not and is not
reasonably likely to have, individually or in the aggregate, a Global Material
Adverse Effect. Representations made in this Section 5.10 are made to the
knowledge of Global to the extent that the representations relate to a
corporation which was, but is not currently, a part of Global's or any
Subsidiary's affiliated, consolidated, combined unitary or similar group.

          (b) Except to the extent not reasonably likely to have, individually
or in the aggregate, a Global Material Adverse Effect, (i) no audits or other
administrative proceedings or court proceedings are presently pending with
regard to any taxes or Returns of Global or any of its Subsidiaries as to which
any taxing authority has asserted in writing any claim; (ii) no governmental
authority is now asserting in writing any deficiency or claim for taxes or any
adjustment to taxes with respect to which Global or any of its Subsidiaries may
be liable with respect to income and other material taxes which have not been
fully paid or finally settled; and (iii) neither Global nor any of its
Subsidiaries has any liability for taxes under Treas. Reg. (S) 1.1502-6 or any
similar provision of state, local, or non-U.S. tax law, except for taxes of the
affiliated group of which Global is the common parent, within the meaning of
Section 1504(a)(1) of the Code or any similar provision of state, local, or non-
U.S. tax law. As of the date of this Agreement, neither Global nor any of its
Subsidiaries has granted any requests, agreements, consents or waivers to extend
the statutory period of limitations applicable to the assessment of

                                       13
<PAGE>

any taxes with respect to any Returns of Global or any of its Subsidiaries.
Neither Global nor any of its Subsidiaries is a party to any closing agreement
described in Section 7121 of the Code or any predecessor provision thereof or
any similar agreement under state, local, or non-U.S. tax law. Neither Global
nor any of its Subsidiaries is a party to, is bound by or has any obligation
under any tax sharing, allocation or indemnity agreement or any similar
agreement or arrangement. Neither Global nor any of its Subsidiaries has made an
election under Section 341(f) of the Code. To the knowledge of Global, Global
has not been a United States real property holding corporation within the
meaning of Section 897(c)(2) of the Code at any time within the past five years.

          (c) For purposes of this Agreement, "tax" or "taxes" means all net
income, gross income, gross receipts, sales, use, ad valorem, transfer,
accumulated earnings, personal holding company, excess profits, franchise,
profits, license, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, disability, capital stock, or windfall profits
taxes, customs duties or other taxes, fees, assessments or governmental charges
of any kind whatsoever, together with any interest and any penalties, additions
to tax or additional amounts imposed by any taxing authority (U.S. or non-U.S.).

          Section 5.11 Employee Benefit Plans. (a) Section 5.11 of the Global
Disclosure Letter contains a list of all Global Benefit Plans. The term "Global
Benefit Plans" means all material employee benefit plans and other material
benefit arrangements, including all "employee benefit plans" as defined in
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), whether or not U.S.-based plans, and all other material employee
benefit, bonus, incentive, deferred compensation, stock option (or other equity-
based), severance, employment, change in control, welfare (including post-
retirement medical and life insurance) and fringe benefit plans, practices or
agreements, whether or not subject to ERISA or U.S.-based and whether written or
oral, sponsored, maintained or contributed to or required to be contributed to
by Global or any of its Subsidiaries, to which Global or any of its Subsidiaries
is a party or is required to provide benefits under applicable law or in which
any person who is currently, has been or, prior to the Effective Time, is
expected to become an employee of Global is a participant. Global will provide
Santa Fe, within 30 days after the date hereof, with true and complete copies of
the Global Benefit Plans and, if applicable, the most recent trust agreements,
Forms 5500, summary plan descriptions, funding statements, annual reports and
actuarial reports, if applicable, for each such plan.

          (b) Except as for such matters as, individually or in the aggregate,
do not and are not reasonably likely to have a Global Material Adverse Effect:
all applicable reporting and disclosure requirements have been met with respect
to Global Benefit Plans; there has been no "reportable event," as that term is
defined in Section 4043 of ERISA, with respect to Global Benefit Plans subject
to Title IV of ERISA for which the 30-day reporting requirement has not been
waived; to the extent applicable, the Global Benefit Plans comply with the
requirements of ERISA and the Code or with the regulations of any applicable
jurisdiction, and any Global Benefit Plan intended to be qualified under Section
401(a) of the Code has received a favorable determination letter from the IRS;
the Global Benefit Plans have been maintained and operated in accordance with
their terms, and, to Global's knowledge, there are no breaches of fiduciary duty
in connection with the Global Benefit Plans; there are no pending or, to
Global's knowledge, threatened claims against or otherwise involving any Global
Benefit Plan, and no

                                       14
<PAGE>

suit, action or other litigation (excluding claims for benefits incurred in the
ordinary course of Global Benefit Plan activities) has been brought against or
with respect to any such Global Benefit Plan; all material contributions
required to be made as of the date hereof to the Global Benefit Plans have been
made or provided for; with respect to the Global Benefit Plans or any "employee
pension benefit plans," as defined in Section 3(2) of ERISA, that are subject to
Title IV of ERISA and have been maintained or contributed to within six years
prior to the Effective Time by Global, its Subsidiaries or any trade or business
(whether or not incorporated) which is under common control, or which is treated
as a single employer, with Global or any of its Subsidiaries under Section
414(b), (c), (m) or (o) of the Code (an "ERISA Affiliate"), (i) neither Global
nor any of its Subsidiaries has incurred any direct or indirect liability under
Title IV of ERISA in connection with any termination thereof or withdrawal
therefrom; and (ii) there does not exist any accumulated funding deficiency
within the meaning of Section 412 of the Code or Section 302 of ERISA, whether
or not waived.

          (c) Neither Global nor any of its Subsidiaries nor any of its ERISA
Affiliates contributes to, or has an obligation to contribute to, and has not
within six years prior to the Effective Time contributed to, or had an
obligation to contribute to, a "multiemployer plan" within the meaning of
Section 3(37) of ERISA, and the execution of, and performance of the
transactions contemplated by, this Agreement will not (either alone or upon the
occurrence of any additional or subsequent events) constitute an event under any
benefit plan, policy, arrangement or agreement or any trust or loan (in
connection therewith) that will or may result in any payment (whether of
severance pay or otherwise), acceleration, forgiveness of indebtedness, vesting,
distribution, increase in benefits or obligations to fund benefits with respect
to any employee of Global or any Subsidiary thereof.

          (d) No Global Benefit Plan provides medical, surgical,
hospitalization, death or similar benefits (whether or not insured) for
employees or former employees of Global or any Subsidiary of Global for periods
extending beyond their retirement or other termination of service other than (i)
coverage mandated by applicable law, (ii) death benefits under any "pension
plan" or (iii) benefits the full cost of which is borne by the current or former
employee (or his beneficiary).

          Section 5.12 Labor Matters. (a) Neither Global nor any of its
Subsidiaries is a party to, or bound by, any collective bargaining agreement or
similar contract, agreement or understanding with a labor union or similar labor
organization (i) covering any employees in the U.S. or (ii) covering, in any
single instance, 10% or more of the employees of Global and its Subsidiaries
taken as a whole. As of the date of this Agreement, to Global's knowledge, there
are no organizational efforts with respect to the formation of a collective
bargaining unit presently being made or threatened (x) involving any employees
in the U.S. or (y) involving, in any single instance, 10% or more of the
employees of Global and its Subsidiaries taken as a whole.

          (b) Except for such matters as do not and are not reasonably likely to
have a Global Material Adverse Effect and except as described in the Global
Reports filed prior to the date of this Agreement, (i) neither Global nor any
Subsidiary of Global has received any written complaint of any unfair labor
practice or other unlawful employment practice or any written notice of any
material violation of any federal, state or local statutes, laws, ordinances,
rules,

                                       15
<PAGE>

regulations, orders or directives with respect to the employment of individuals
by, or the employment practices of, Global or any Subsidiary of Global or the
work conditions or the terms and conditions of employment and wages and hours of
their respective businesses and (ii) there are no unfair labor practice charges
or other employee related complaints against Global or any Subsidiary of Global
pending or, to the knowledge of Global, threatened, before any governmental
authority by or concerning the employees working in their respective businesses.

          Section 5.13 Environmental Matters. (a) Global and each Subsidiary of
Global has been and is in compliance with all applicable orders of any court,
governmental authority or arbitration board or tribunal and any applicable law,
ordinance, rule, regulation or other legal requirement (including common law)
related to human health and the environment ("Environmental Laws") except for
such matters as do not and are not reasonably likely to have, individually or in
the aggregate, a Global Material Adverse Effect. There are no past or present
facts, conditions or circumstances that interfere with the conduct of any of
their respective businesses in the manner now conducted or which interfere with
continued compliance with any Environmental Law, except for any non-compliance
or interference that is not reasonably likely to have, individually or in the
aggregate, a Global Material Adverse Effect.

          (b) Except for such matters as do not and are not reasonably likely to
have, individually or in the aggregate, a Global Material Adverse Effect, no
judicial or administrative proceedings or governmental investigations are
pending or, to the knowledge of Global, threatened against Global or its
Subsidiaries that allege the violation of or seek to impose liability pursuant
to any Environmental Law, and there are no past or present facts, conditions or
circumstances at, on or arising out of, or otherwise associated with, any
current (or, to the knowledge of Global or its Subsidiaries, former) businesses,
assets or properties of the Global or any Subsidiary of Global, including but
not limited to on-site or off-site disposal, release or spill of any material,
substance or waste classified, characterized or otherwise regulated as
hazardous, toxic, pollutant, contaminant or words of similar meaning under
Environmental Laws, including petroleum or petroleum products or byproducts
("Hazardous Materials") which violate Environmental Law or are reasonably likely
to give rise to (i) costs, expenses, liabilities or obligations for any cleanup,
remediation, disposal or corrective action under any Environmental Law, (ii)
claims arising for personal injury, property damage or damage to natural
resources, or (iii) fines, penalties or injunctive relief.

          (c) Neither Global nor any of its Subsidiaries has (i) received any
notice of noncompliance with, violation of, or liability or potential liability
under any Environmental Law or (ii) entered into any consent decree or order or
is subject to any order of any court or governmental authority or tribunal under
any Environmental Law or relating to the cleanup of any Hazardous Materials,
except for any such matters as do not and are not reasonably likely to have a
Global Material Adverse Effect.

          Section 5.14 Intellectual Property. Global and its Subsidiaries own or
possess adequate licenses or other valid rights to use all patents, patent
rights, trademarks, trademark rights and proprietary information used or held
for use in connection with their respective businesses as currently being
conducted, except where the failure to own or possess such licenses and other
rights does not and is not reasonably likely to have, individually or in the
aggregate, a Global Material Adverse Effect, and there are no assertions or
claims challenging the validity of

                                       16
<PAGE>

any of the foregoing that are reasonably likely to have, individually or in the
aggregate, a Global Material Adverse Effect. The conduct of Global's and its
Subsidiaries' respective businesses as currently conducted does not conflict
with any patents, patent rights, licenses, trademarks, trademark rights, trade
names, trade name rights or copyrights of others that are reasonably likely to
have, individually or in the aggregate, a Global Material Adverse Effect. There
is no material infringement of any proprietary right owned by or licensed by or
to Global or any of its Subsidiaries that is reasonably likely to have,
individually or in the aggregate, a Global Material Adverse Effect.

            Section 5.15 Decrees, Etc. Except for such matters as do not and are
not reasonably likely to have a Global Material Adverse Effect, (a) no order,
writ, fine, injunction, decree, judgment, award or determination of any court or
governmental authority or any arbitral or other dispute resolution body has been
issued or entered against Global or any Subsidiary of Global that continues to
be in effect that affects the ownership or operation of any of their respective
assets or that involves an amount greater than $5 million, and (b) since January
1, 1991, no criminal order, writ, fine, injunction, decree, judgment or
determination of any court or governmental authority has been issued against
Global or any Subsidiary of Global.

            Section 5.16 Insurance. (a) Except for such matters as do not and
are not reasonably likely to have, individually or in the aggregate, a Global
Material Adverse Effect, Global and its Subsidiaries maintain insurance coverage
with financially responsible insurance companies in such amounts and against
such losses as are customary in the drilling services and oil and gas industries
on the date hereof.

            (b)  Except for such matters as do not and are not reasonably likely
to have, individually or in the aggregate, a Global Material Adverse Effect, no
event relating specifically to Global or its Subsidiaries (as opposed to events
affecting the drilling services or oil and gas industries in general) has
occurred that is reasonably likely, after the date of this Agreement, to result
in an upward adjustment in premiums under any insurance policies they maintain.
Excluding insurance policies that have expired and been replaced in the ordinary
course of business, no excess liability, hull or protection and indemnity
insurance policy has been canceled by the insurer within one year prior to the
date hereof, and to Global's knowledge, no threat in writing has been made to
cancel (excluding cancellation upon expiration or failure to renew) any such
insurance policy of Global or any Subsidiary of Global during the period of one
year prior to the date hereof. Prior to the date hereof, no event has occurred,
including the failure by Global or any Subsidiary of Global to give any notice
or information or by giving any inaccurate or erroneous notice or information,
which materially limits or impairs the rights of Global or any Subsidiary of
Global under any such excess liability, hull or protection and indemnity
insurance policies.

            Section 5.17 No Brokers. Global has not entered into any contract,
arrangement or understanding with any person or firm which may result in the
obligation of Global or Santa Fe to pay any finder's fees, brokerage or other
like payments in connection with the negotiations leading to this Agreement or
the consummation of the transactions contemplated hereby, except that Global has
retained Morgan Stanley & Co. Incorporated as its financial advisor, the
arrangements with which have been disclosed in writing to Santa Fe prior to the
date hereof.

                                       17
<PAGE>

            Section 5.18 Opinion of Financial Advisor. The Board of Directors of
Global has received the opinion of Morgan Stanley & Co. Incorporated to the
effect that, as of the date of this Agreement, the Merger Ratio is fair, from a
financial point of view, to the holders of Global Common Stock.

            Section 5.19 Santa Fe Share Ownership. Neither Global nor any of its
Subsidiaries owns any shares in the capital of Santa Fe or any other securities
convertible into or otherwise exercisable to acquire shares in the capital of
Santa Fe.

            Section 5.20 Vote Required. The only votes of the holders of any
class or series of Global capital stock necessary to approve any transaction
contemplated by this Agreement are the affirmative vote in favor of the adoption
of this Agreement of the holders of at least a majority of the outstanding
shares of Global Common Stock.

            Section 5.21 Ownership of Drilling Rigs and Drillships. (a) As of
the date hereof, Global or a Subsidiary of Global has good and marketable title
to the drilling rigs and drillships listed in Global's most recent annual report
on Form 10-K, in each case free and clear of all Liens except for (a) defects or
irregularities of title or encumbrances of a nature that do not materially
impair the ownership or operation of these assets and which have not had and are
not reasonably likely to have a Global Material Adverse Effect, (b) Liens that
secure obligations not yet due and payable or, if such obligations are due and
have not been paid, Liens securing such obligations that are being diligently
contested in good faith and by appropriate proceedings (any such contests
involving an amount in excess of $10 million being described in the Global
Disclosure Letter), (c) Liens for taxes, assessments or other governmental
charges or levies not yet due or which are being contested in good faith, (d)
Liens in connection with workmen's compensation, unemployment insurance or other
social security, old age pension or public liability obligations not yet due or
which are being contested in good faith, (e) operators', vendors', suppliers of
necessaries to Global's drilling rigs and drillships, carriers', warehousemen's,
repairmen's, mechanics', workmen's, materialmen's, construction or shipyard
liens (during repair or upgrade periods) or other like Liens arising by
operation of law in the ordinary course of business or statutory landlord's
liens, each of which is in respect of obligations that have not been outstanding
more than 90 days (so long as no action has been taken to file or enforce such
Liens within said 90-day period) or which are being contested in good faith and
(f) other Liens disclosed in the Global Disclosure Letter (the Liens described
in clauses (a), (b), (c), (d), (e) and (f), collectively, "Global Permitted
Liens"). No such asset is leased under an operating lease from a lessor that, to
Global's knowledge, has incurred non-recourse indebtedness to finance the
acquisition or construction of such asset.

            (b)  As of the date hereof and except as would not have a Global
Material Adverse Effect, Global has caused the drilling rigs and drillships
listed in Global's most recent annual report on 10-K to be maintained consistent
with general practice in the offshore drilling industry, and all such drilling
rigs and drillships are in good operating condition and repair consistent with
general practice in the offshore drilling industry.

            Section 5.22 Undisclosed Liabilities. Neither Global nor any of its
Subsidiaries has any liabilities or obligations of any nature, whether or not
fixed, accrued, contingent or otherwise, except liabilities and obligations that
(i) are disclosed in the Global Reports filed prior

                                       18
<PAGE>

to the date of this Agreement, (ii) are referred to in the Global Disclosure
Letter, or (iii) do not and are not reasonably likely to have, individually or
in the aggregate, a Global Material Adverse Effect.

            Section 5.23 Certain Contracts. (a) Section 5.23 of the Global
Disclosure Letter contains a list of all of the following contracts or
agreements (other than those set forth on an exhibit index in the Global Reports
filed prior to the date of this Agreement) to which Global or any Subsidiary of
Global is a party or by which any of them or their assets is bound as of the
date of this Agreement: (i) any non-competition agreement that purports to limit
the manner in which, or the localities in which, all or any portion of their
respective businesses is conducted, other than any such limitation that is not
material to Global and its Subsidiaries, taken as a whole, and will not be
material to Santa Fe and its Subsidiaries, taken as a whole, following the
Effective Time, (ii) any drilling rig construction or conversion contract with
respect to which the drilling rig has not been delivered and paid for, (iii) any
drilling contracts of one year or greater remaining duration including fixed
price customer options, (iv) any contract or agreement for the borrowing of
money with a borrowing capacity or outstanding indebtedness of $50 million or
more or (v) any "material contract" (as such term is defined in Item 601(b)(10)
of Regulation S-K of the SEC) (all contracts or agreements of the types
described in clauses (i) through (v) being referred to herein as "Global
Material Contracts").

            (b)  As of the date of this Agreement, each Global Material Contract
is, to the knowledge of Global, in full force and effect, and Global and each of
its Subsidiaries have in all material respects performed all obligations
required to be performed by them to date under each Global Material Contract to
which it is a party, except where such failure to be binding or in full force
and effect or such failure to perform does not and is not reasonably likely to
create, individually or in the aggregate, a Global Material Adverse Effect.
Except for such matters as do not and are not reasonably likely to have a Global
Material Adverse Effect, neither Global nor any of its Subsidiaries (x) knows
of, or has received written notice of, any breach of or violation or default
under (nor, to the knowledge of Global, does there exist any condition which
with the passage of time or the giving of notice or both would result in such a
violation or default under) any Global Material Contract or (y) has received
written notice of the desire of the other party or parties to any such Global
Material Contract to exercise any rights such party has to cancel, terminate or
repudiate such contract or exercise remedies thereunder. Except as would not be
reasonably likely to have, individually or in the aggregate, a Global Material
Adverse Effect, the consummation of the transactions contemplated by this
Agreement will not breach or violate any Global Material Contract or permit any
other party to a Global Material Contract to exercise rights adverse to Global.
Each Global Material Contract is enforceable by Global or a Subsidiary of Global
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to creditors' rights
and general principles of equity, except where such unenforceability is not
reasonably likely to create, individually or in the aggregate, a Global Material
Adverse Effect.

            Section 5.24 Capital Expenditure Program. As of the date of this
Agreement, the Global Disclosure Letter accurately sets forth in all material
respects, for each of Global's sustaining and life extension capital expenditure
programs, the capital expenditures for all such programs that were forecasted to
be incurred in each of 2001 and 2002 on a monthly basis, as

                                       19
<PAGE>

previously provided to Santa Fe. Global has no newbuild rigs under
construction or contracted to be built.

            Section 5.25 Improper Payments. No bribes, kickbacks or other
improper payments have been made by Global or any Subsidiary of Global or agent
of any of them in connection with the conduct of their respective businesses or
the operation of their respective assets, and neither Global, any Subsidiary of
Global nor any agent of any of them has received any such payments from vendors,
suppliers or other persons, where any such payment made or received is
reasonably likely to have a Global Material Adverse Effect.

                                   ARTICLE 6

                        REPRESENTATIONS AND WARRANTIES
                        OF SANTA FE, SUB AND MERGER SUB

            Except as set forth in the disclosure letter delivered to Global by
Santa Fe at or prior to the execution hereof (the "Santa Fe Disclosure Letter")
and making reference to the particular subsection of this Agreement to which
exception is being taken, Santa Fe, Sub and Merger Sub, jointly and severally,
represent and warrant to Global that:

            Section 6.1 Existence; Good Standing; Corporate Authority. Each of
Santa Fe, Sub and Merger Sub is a corporation duly incorporated and validly
existing under the laws of its jurisdiction of incorporation. Santa Fe is duly
qualified to do business and, to the extent such concept or similar concept
exists in the relevant jurisdiction, is in good standing under the laws of any
jurisdiction in which the character of the properties owned or leased by it
therein or in which the transaction of its business makes such qualification
necessary, except where the failure to be so qualified does not and is not
reasonably likely to have, individually or in the aggregate, a Santa Fe Material
Adverse Effect (as defined in Section 10.9). Santa Fe has all requisite
corporate power and authority to own, operate and lease its properties and to
carry on its business as now conducted. The copies of Santa Fe's memorandum of
association and articles of association and the comparable charter and
organizational documents of Sub and Merger Sub previously made available to
Global are true and correct and contain all amendments as of the date hereof.

            Section 6.2 Authorization, Validity and Effect of Agreements. Each
of Santa Fe, Sub and Merger Sub has the requisite corporate power and authority
to execute and deliver this Agreement and all other agreements and documents
contemplated hereby to which it is a party. The consummation by each of Santa
Fe, Sub and Merger Sub of the transactions contemplated hereby, including the
issuance by Santa Fe and delivery by Sub of Santa Fe Ordinary Shares pursuant to
the Merger, have been duly authorized by all requisite corporate action on
behalf of Santa Fe, other than the approvals referred to in Section 6.20. This
Agreement constitutes the valid and legally binding obligation of Santa Fe, Sub
and Merger Sub, enforceable against Santa Fe, Sub or Merger Sub, as applicable,
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to creditors' rights
and general principles of equity.

                                       20
<PAGE>

            Section 6.3 Capitalization. The authorized share capital of Santa Fe
consists of 600,000,000 Santa Fe Ordinary Shares. As of July 31, 2001, there
were 115,483,594 Santa Fe Ordinary Shares issued, including 196,865 restricted
shares, and 5,212,977 Santa Fe Ordinary Shares reserved for issuance upon
exercise of outstanding Santa Fe options. All such issued Santa Fe Ordinary
Shares are duly authorized, validly issued, fully paid, nonassessable and free
of preemptive rights. The Santa Fe Ordinary Shares to be issued in connection
with the Merger, when issued in accordance with this Agreement, will be validly
issued, fully paid, nonassessable and free of preemptive rights. As of the date
of this Agreement, except as set forth in this Section 6.3, there are no
outstanding shares, and there are no options, warrants, calls, subscriptions,
convertible securities or other rights, agreements or commitments which obligate
Santa Fe or any of its Subsidiaries to issue, transfer or sell any shares or
other voting securities of Santa Fe or any of its Subsidiaries. Santa Fe has no
outstanding bonds, debentures, notes or other obligations the holders of which
have the right to vote (or which are convertible into or exercisable for
securities having the right to vote) with the shareholders of Santa Fe on any
matter.

            Section 6.4 Subsidiaries. (a) Each of Santa Fe's Significant
Subsidiaries is a corporation or other legal entity duly organized, validly
existing and, to the extent such concept or similar concept exists in the
relevant jurisdiction, in good standing under the laws of its jurisdiction of
incorporation or organization, has the corporate or other entity power and
authority to own, operate and lease its properties and to carry on its business
as it is now being conducted, and is duly qualified to do business and is in
good standing (where applicable) in each jurisdiction in which the ownership,
operation or lease of its property or the conduct of its business requires such
qualification, except for jurisdictions in which such failure to be so qualified
or to be in good standing does not and is not reasonably likely to have a Santa
Fe Material Adverse Effect. As of the date of this Agreement, all of the
outstanding shares of capital stock of, or other ownership interests in, each of
Santa Fe's Subsidiaries are duly authorized, validly issued, fully paid and
nonassessable, and are owned, directly or indirectly, by Santa Fe free and clear
of all Liens.

            (b)  Sub and Merger Sub. All of the outstanding capital stock of
Merger Sub is owned directly by Sub, all of the outstanding capital stock of Sub
is owned directly by Santa Fe, and Merger Sub has been formed solely for the
purpose of engaging in the transactions contemplated hereby and, as of the
Effective Time, will have not engaged in any activities other than in connection
with the transactions contemplated by this Agreement. Immediately prior to the
Effective Time, Merger Sub will have 100 outstanding shares of its common stock,
par value $0.01 per share.

            Section 6.5 Compliance with Laws; Permits. Except for such matters
as, individually or in the aggregate, do not or are not reasonably likely to
have a Santa Fe Material Adverse Effect and except for matters arising under
Environmental Laws which are treated exclusively in Section 6.13:

             (a)  Neither Santa Fe nor any Subsidiary of Santa Fe is in
         violation of any Applicable Laws and no claim is pending or, to the
         knowledge of Santa Fe, threatened with respect to any such matters. No
         condition exists which does or is reasonably likely

                                       21
<PAGE>

         to constitute a violation of or deficiency under any Applicable Law by
         Santa Fe or any Subsidiary of Santa Fe.

             (b)  Santa Fe and each Subsidiary of Santa Fe hold all permits,
         licenses, certifications, variations, exemptions, orders, franchises
         and approvals of all governmental or regulatory authorities necessary
         for the conduct of their respective businesses (the "Santa Fe
         Permits"). All Santa Fe Permits are in full force and effect and there
         exists no default thereunder or breach thereof, and Santa Fe has no
         notice or actual knowledge that such Santa Fe Permits will not be
         renewed in the ordinary course after the Effective Time. No
         governmental authority has given, or to the knowledge of Santa Fe
         threatened to give, any action to terminate, cancel or reform any Santa
         Fe Permit.

             (c)  Each drilling rig, drillship or other drilling unit owned or
         leased by Santa Fe or a subsidiary of Santa Fe which is subject to
         classification is in class according to the rules and regulations of
         the applicable classifying body and is duly and lawfully documented
         under the laws of its flag jurisdiction.

             (d)  Santa Fe and each Subsidiary of Santa Fe possess all permits,
         licenses, operating authorities, orders, exemptions, franchises,
         variances, consents, approvals or other authorizations required for the
         present ownership and operation of all its real property or leaseholds
         ("Santa Fe Real Property"). There exists no material default or breach
         with respect to, and no party or governmental authority has taken or,
         to the knowledge of Santa Fe, threatened to take, any action to
         terminate, cancel or reform any such permit, license, operating
         authority, order, exemption, franchise, variance, consent, approval or
         other authorization pertaining to the Santa Fe Real Property.

             Section 6.6 No Conflict. (a) Neither the execution and delivery by
Santa Fe, Sub and Merger Sub of this Agreement nor the consummation by Santa Fe,
Sub and Merger Sub of the transactions contemplated hereby in accordance with
the terms hereof will (i) subject to the approvals referred to in Section 6.20,
conflict with or result in a breach of any provisions of the memorandum of
association or articles of association of Santa Fe or the certificate of
incorporation or bylaws of Sub or Merger Sub; (ii) violate, or conflict with, or
result in a breach of any provision of, or constitute a default (or an event
which, with notice or lapse of time or both, would constitute a default) under,
or result in the termination or in a right of termination or cancellation of, or
give rise to a right of purchase under or accelerate the performance required
by, or result in the creation of any Lien upon any of the properties of Santa Fe
or its Subsidiaries under, or result in being declared void, voidable, or
without further binding effect, or otherwise result in a detriment to Santa Fe
or any of its Subsidiaries under any of the terms, conditions or provisions of,
any note, bond, mortgage, indenture, deed of trust, license, franchise, permit,
lease, contract, agreement, joint venture or other instrument or obligation to
which Santa Fe or any of its Subsidiaries is a party, or by which Santa Fe or
any of its Subsidiaries or any of their properties is bound or affected; or
(iii) subject to the filings and other matters referred to in Section 6.6(b),
contravene or conflict with or constitute a violation of any provision of any
law, rule, regulation, judgment, order or decree binding upon or applicable to
Santa Fe or any of its Subsidiaries, except for such matters described in clause
(ii) or (iii) as do not and are not reasonably likely to have, individually or
in the aggregate, a Santa Fe Material Adverse Effect.

                                       22
<PAGE>

            (b)  Neither the execution and delivery by Santa Fe, Sub or Merger
Sub of this Agreement nor the consummation by Santa Fe, Sub or Merger Sub of the
transactions contemplated hereby in accordance with the terms hereof will
require any consent, approval or authorization of, or filing or registration
with, any governmental or regulatory authority, other than the Regulatory
Filings and the filing of a listing application with the NYSE pursuant to
Section 7.9(a) and the filing of the resolutions relating to the Santa Fe
Amendments with the Registrar of Companies of the Cayman Islands, except for any
consent, approval or authorization the failure of which to obtain and for any
filing or registration the failure of which to make does not and is not
reasonably likely to have a Santa Fe Material Adverse Effect.

            Section 6.7 SEC Documents. Santa Fe has filed with the SEC all
documents (including exhibits and any amendments thereto) required to be so
filed by it since January 1, 1999 pursuant to Sections 13(a), 14(a) and 15(d) of
the Exchange Act, and has made available to Global each registration statement,
report, proxy statement or information statement (other than preliminary
materials) it has so filed, each in the form (including exhibits and any
amendments thereto) filed with the SEC (collectively, the "Santa Fe Reports").
As of its respective date, each Santa Fe Report (i) complied in all material
respects in accordance with the applicable requirements of the Exchange Act and
the rules and regulations thereunder and (ii) did not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements made therein, in the light of
the circumstances under which they were made, not misleading except for such
statements, if any, as have been modified by subsequent filings with the SEC
prior to the date hereof. Each of the consolidated balance sheets included in or
incorporated by reference into the Santa Fe Reports (including the related notes
and schedules) fairly presents in all material respects the consolidated
financial position of Santa Fe and its Subsidiaries as of its date, and each of
the consolidated statements of operations, cash flows and changes in
shareholders equity included in or incorporated by reference into the Santa Fe
Reports (including any related notes and schedules) fairly presents in all
material respects the results of operations, cash flows or changes in
shareholders equity, as the case may be, of Santa Fe and its Subsidiaries for
the periods set forth therein (subject, in the case of unaudited statements, to
(x) such exceptions as may be permitted by Form 10-Q of the SEC and (y) normal
year-end audit adjustments), in each case in accordance with generally accepted
accounting principles consistently applied during the periods involved, except
as may be noted therein. Except as and to the extent set forth on the
consolidated balance sheet of Santa Fe and its Subsidiaries included in the most
recent Santa Fe Report filed prior to the date of this Agreement that includes
such a balance sheet, including all notes thereto, as of the date of such
balance sheet, neither Santa Fe nor any of its Subsidiaries has any liabilities
or obligations of any nature (whether accrued, absolute, contingent or
otherwise) that would be required to be reflected on, or reserved against in, a
balance sheet of Santa Fe or in the notes thereto prepared in accordance with
generally accepted accounting principles consistently applied, other than
liabilities or obligations which do not and are not reasonably likely to have,
individually or in the aggregate, a Santa Fe Material Adverse Effect.

            Section 6.8 Litigation. Except as described in the Santa Fe Reports
filed prior to the date of this Agreement, there are no actions, suits or
proceedings pending against Santa Fe or any of its Subsidiaries or, to Santa
Fe's knowledge, threatened against Santa Fe or any of its Subsidiaries, at law
or in equity or in any arbitration or similar proceedings, before or by any U.S.
federal, state or non-U.S. court, commission, board, bureau, agency or
instrumentality or

                                       23
<PAGE>

any U.S. or non-U.S. arbitral or other dispute resolution body, that are
reasonably likely to have, individually or in the aggregate, a Santa Fe Material
Adverse Effect.

            Section 6.9 Absence of Certain Changes. From December 31, 2000
to the date of this Agreement, there has not been (i) any event or occurrence
that has had or is reasonably likely to have a Santa Fe Material Adverse Effect,
(ii) any material change by Santa Fe or any of its Subsidiaries, when taken as a
whole, in any of its accounting methods, principles or practices or any of its
tax methods, practices or elections, (iii) any declaration, setting aside or
payment of any dividend or distribution in respect of any share capital of Santa
Fe or any redemption, purchase or other acquisition of any of its securities,
except dividends on Santa Fe Ordinary Shares at a rate of not more than $0.0325
per share per quarter or (iv) any increase in or establishment of any bonus,
insurance, severance, deferred compensation, pension, retirement, profit
sharing, stock option, stock purchase or other employee benefit plan, except in
the ordinary course of business consistent with past practice.

            Section 6.10 Taxes. (a) All Returns required to be filed by or with
respect to Santa Fe and any of its Subsidiaries (including any Return required
to be filed by a consolidated, combined or unitary group that included Santa Fe
or any of its Subsidiaries) on or prior to the date hereof have been duly filed
on a timely basis with the appropriate governmental authorities, except to the
extent that any failure to file does not and is not reasonably likely to have,
individually or in the aggregate, a Santa Fe Material Adverse Effect, and all
taxes due with such Returns have been duly paid, or deposited in full on a
timely basis or adequately reserved for in accordance with generally accepted
accounting principles, except to the extent that any failure to pay or deposit
or make adequate provision for the payment of such taxes does not and is not
reasonably likely to have, individually or in the aggregate, a Santa Fe Material
Adverse Effect. Representations made in this Section 6.10 are made to the
knowledge of Santa Fe to the extent that the representations relate to a
corporation which was, but is not currently, a part of Santa Fe's or any
Subsidiary's affiliated, consolidated, combined unitary or similar group.

            (b)  Except to the extent not reasonably likely to have,
individually or in the aggregate, a Santa Fe Material Adverse Effect, (i) no
audits or other administrative proceedings or court proceedings are presently
pending with regard to any taxes or Returns of Santa Fe or any of its
Subsidiaries as to which any taxing authority has asserted in writing any claim;
(ii) no governmental authority is now asserting in writing any deficiency or
claim for taxes or any adjustment to taxes with respect to which Santa Fe or any
of its Subsidiaries may be liable with respect to income and other material
taxes which have not been fully paid or finally settled; and (iii) neither Santa
Fe nor any of its Subsidiaries has any liability for taxes under Treas. Reg. ss.
1.1502-6 or any similar provision of state, local, or non-U.S. tax law, except
for taxes of the affiliated group of which Santa Fe or any of its Subsidiaries
is the common parent, within the meaning of Section 1504(a)(1) of the Code or
any similar provision of state, local, or non-U.S. tax law. As of the date of
this Agreement, neither Santa Fe nor any of its Subsidiaries has granted any
requests, agreements, consents or waivers to extend the statutory period of
limitations applicable to the assessment of any taxes with respect to any
Returns of Santa Fe or any of its Subsidiaries. Neither Santa Fe nor any of its
Subsidiaries is a party to any closing agreement described in Section 7121 of
the Code or any predecessor provision thereof or any similar agreement under
state, local, or non-U.S. tax law. Neither Santa Fe nor any of its Subsidiaries
is a party to, is bound by or has any obligation under any tax sharing,
allocation or

                                       24
<PAGE>

indemnity agreement or any similar agreement or arrangement. Neither Santa Fe
nor any of its Subsidiaries has made an election under Section 341(f) of the
Code. To the knowledge of Santa Fe, Santa Fe has not been a United States real
property holding corporation within the meaning of Section 897(c)(2) of the Code
at any time within the past five years.

                  Section 6.11 Employee Benefit Plans. (a) Section 6.11 of the
Santa Fe Disclosure Letter contains a list of all Santa Fe Benefit Plans. The
term "Santa Fe Benefit Plans" means all material employee benefit plans and
other material benefit arrangements, including all "employee benefit plans" as
defined in Section 3(3) of ERISA, whether or not U.S.-based plans, and all other
material employee benefit, bonus, incentive, deferred compensation, stock option
(or other equity-based), severance, employment, change in control, welfare
(including post-retirement medical and life insurance) and fringe benefit plans
or agreements, whether or not subject to ERISA or U.S.-based and whether written
or oral, sponsored, maintained or contributed to or required to be contributed
to by Santa Fe or any of its Subsidiaries, to which Santa Fe or any of its
Subsidiaries is a party or is required to provide benefits under applicable law
or in which any person who is currently, has been or, prior to the Effective
Time, is expected to become an employee of Santa Fe is a participant. Santa Fe
will provide Global, within 30 days after the date hereof, with true and
complete copies of the Santa Fe Benefit Plans and, if applicable, the most
recent trust agreements, Forms 5500, summary plan descriptions, funding
statements, annual reports and actuarial reports, if applicable, for each such
plan.

                  (b) Except for such matters as, individually or in the
aggregate, do not and are not reasonably likely to have a Santa Fe Material
Adverse Effect: all applicable reporting and disclosure requirements have been
met with respect to Santa Fe Benefit Plans; there has been no "reportable
event," as that term is defined in Section 4043 of ERISA, with respect to Santa
Fe Benefit Plans subject to Title IV of ERISA for which the 30-day reporting
requirement has not been waived; to the extent applicable, Santa Fe Benefit
Plans comply with the requirements of ERISA and the Code or with the regulations
of any applicable jurisdiction, and any Santa Fe Benefit Plan intended to be
qualified under Section 401(a) of the Code has received a favorable
determination letter from the IRS; Santa Fe Benefit Plans have been maintained
and operated in accordance with their terms, and, to Santa Fe's knowledge, there
are no breaches of fiduciary duty in connection with Santa Fe Benefit Plans;
there are no pending, or to Santa Fe's knowledge, threatened claims against or
otherwise involving any Santa Fe Benefit Plan, and no suit, action or other
litigation (excluding claims for benefits incurred in the ordinary course of
Santa Fe Benefit Plan activities) has been brought against or with respect to
any such Santa Fe Benefit Plan; all material contributions required to be made
as of the date hereof to Santa Fe Benefit Plans have been made or provided for;
with respect to Santa Fe Benefit Plans or any "employee pension benefit plans,"
as defined in Section 3(2) of ERISA, that are subject to Title IV of ERISA and
have been maintained or contributed to within six years prior to the Effective
Time by Santa Fe, its Subsidiaries or any of its ERISA Affiliates, (i) neither
Santa Fe nor any of its Subsidiaries has incurred any direct or indirect
liability under Title IV of ERISA in connection with any termination thereof or
withdrawal therefrom; and (ii) there does not exist any accumulated funding
deficiency within the meaning of Section 412 of the Code or Section 302 of
ERISA, whether or not waived.

                  (c) Neither Santa Fe nor any of its Subsidiaries nor any of
its ERISA Affiliates contributes to, or has an obligation to contribute to, and
has not within six years prior

                                       25
<PAGE>

to the Effective Time contributed to, or had an obligation to contribute to, a
"multiemployer plan" within the meaning of Section 3(37) of ERISA, and the
execution of, and performance of the transactions contemplated by, this
Agreement will not (either alone or upon the occurrence of any additional or
subsequent events) constitute an event under any benefit plan, policy,
arrangement or agreement or any trust or loan (in connection therewith) that
will or may result in any payment (whether of severance pay or otherwise),
acceleration, forgiveness of indebtedness, vesting, distribution, increase in
benefits or obligations to fund benefits with respect to any employee of Santa
Fe or any Subsidiary thereof.

                  (d) No Santa Fe Benefit Plan provides medical, surgical,
hospitalization, death or similar benefits (whether or not insured) for
employees or former employees of Santa Fe or any Subsidiary of Santa Fe for
periods extending beyond their retirement or other termination of service other
than (i) coverage mandated by applicable law, (ii) death benefits under any
"pension plan" or (iii) benefits the full cost of which is borne by the current
or former employee (or his beneficiary).

                  Section 6.12 Labor Matters. (a) Neither Santa Fe nor any of
its Subsidiaries is a party to, or bound by, any collective bargaining agreement
or similar contract, agreement or understanding with a labor union or similar
labor organization (i) covering any employees in the U.S. or (ii) covering, in
any single instance, 10% or more of the employees of Santa Fe and its
Subsidiaries taken as a whole. As of the date of this Agreement, to Santa Fe's
knowledge, there are no organizational efforts with respect to the formation of
a collective bargaining unit presently being made or threatened (x) involving
any employees in the U.S. or (y) involving, in any single instance, 10% or more
of the employees of Santa Fe and its Subsidiaries taken as a whole.

                  (b) Except for such matters as do not and are not reasonably
likely to have a Santa Fe Material Adverse Effect and except as described in the
Santa Fe Reports filed prior to the date of this Agreement, (i) neither Santa Fe
nor any Subsidiary of Santa Fe has received any written complaint of any unfair
labor practice or other unlawful employment practice or any written notice of
any material violation of any federal, state or local statutes, laws,
ordinances, rules, regulations, orders or directives with respect to the
employment of individuals by, or the employment practices of, Santa Fe or any
Subsidiary of Santa Fe or the work conditions or the terms and conditions of
employment and wages and hours of their respective businesses and (ii) there are
no unfair labor practice charges or other employee related complaints against
Santa Fe or any Subsidiary of Santa Fe pending or, to the knowledge of Santa Fe,
threatened, before any governmental authority by or concerning the employees
working in their respective businesses.

                  Section 6.13 Environmental Matters. (a) Santa Fe and each
Subsidiary of Santa Fe has been and is in compliance with all Environmental Laws
except for such matters as do not and are not reasonably likely to have,
individually or in the aggregate, a Santa Fe Material Adverse Effect. There are
no past or present facts, conditions or circumstances that interfere with the
conduct of any of their respective businesses in the manner now conducted or
which interfere with continued compliance with any Environmental Law, except for
any non-compliance or interference that is not reasonably likely to have,
individually or in the aggregate, a Santa Fe Material Adverse Effect.

                                       26
<PAGE>

                  (b) Except for such matters as do not and are not reasonably
likely to have, individually or in the aggregate, a Santa Fe Material Adverse
Effect, no judicial or administrative proceedings or governmental investigations
are pending or, to the knowledge of Santa Fe, threatened against Santa Fe or its
Subsidiaries that allege the violation of or seek to impose liability pursuant
to any Environmental Law, and there are no past or present facts, conditions or
circumstances at, on or arising out of, or otherwise associated with, any
current (or, to the knowledge of Santa Fe or its Subsidiaries, former)
businesses, assets or properties of Santa Fe or any Subsidiary of Santa Fe,
including but not limited to on-site or off-site disposal, release or spill of
any Hazardous Materials which violate Environmental Law or are reasonably likely
to give rise to (i) costs, expenses, liabilities or obligations for any cleanup,
remediation, disposal or corrective action under any Environmental Law, (ii)
claims arising for personal injury, property damage or damage to natural
resources, or (iii) fines, penalties or injunctive relief.

                  (c) Neither Santa Fe nor any of its Subsidiaries has (i)
received any notice of noncompliance with, violation of, or liability or
potential liability under any Environmental Law or (ii) entered into any consent
decree or order or is subject to any order of any court or governmental
authority or tribunal under any Environmental Law or relating to the cleanup of
any Hazardous Materials, except for any such matters as do not and are not
reasonably likely to have a Santa Fe Material Adverse Effect.

                  Section 6.14 Intellectual Property. Santa Fe and its
Subsidiaries own or possess adequate licenses or other valid rights to use all
patents, patent rights, trademarks, trademark rights and proprietary information
used or held for use in connection with their respective businesses as currently
being conducted, except where the failure to own or possess such licenses and
other rights does not and is not reasonably likely to have, individually or in
the aggregate, a Santa Fe Material Adverse Effect, and there are no assertions
or claims challenging the validity of any of the foregoing that are reasonably
likely to have, individually or in the aggregate, a Santa Fe Material Adverse
Effect. The conduct of Santa Fe's and its Subsidiaries' respective businesses as
currently conducted does not conflict with any patents, patent rights, licenses,
trademarks, trademark rights, trade names, trade name rights or copyrights of
others that are reasonably likely to have, individually or in the aggregate, a
Santa Fe Material Adverse Effect. There is no material infringement of any
proprietary right owned by or licensed by or to Santa Fe or any of its
Subsidiaries that is reasonably likely to have, individually or in the
aggregate, a Santa Fe Material Adverse Effect.

                  Section 6.15 Decrees, Etc. Except for such matters as do not
and are not reasonably likely to have a Santa Fe Material Adverse Effect, (a) no
order, writ, fine, injunction, decree, judgment, award or determination of any
court or governmental authority or any arbitral or other dispute resolution body
has been issued or entered against Santa Fe or any Subsidiary of Santa Fe that
continues to be in effect that affects the ownership or operation of any of
their respective assets or that involves an amount greater than $5 million, and
(b) since January 1, 1991, no criminal order, writ, fine, injunction, decree,
judgment or determination of any court or governmental authority has been issued
against Santa Fe or any Subsidiary of Santa Fe.

                  Section 6.16 Insurance. (a) Except for such matters as do not
and are not reasonably likely to have, individually or in the aggregate, a Santa
Fe Material Adverse Effect, Santa Fe and its Subsidiaries maintain insurance
coverage with financially responsible insurance

                                       27
<PAGE>

companies in such amounts and against such losses as are customary in the
drilling services industry on the date hereof.

                  (b) Except for such matters as do not and are not reasonably
likely to have, individually or in the aggregate, a Santa Fe Material Adverse
Effect, no event relating specifically to Santa Fe or its Subsidiaries (as
opposed to events affecting the drilling services industry in general) has
occurred that is reasonably likely, after the date of this Agreement, to result
in an upward adjustment in premiums under any insurance policies they maintain.
Excluding insurance policies that have expired and been replaced in the ordinary
course of business, no excess liability, hull or protection and indemnity
insurance policy has been canceled by the insurer within one year prior to the
date hereof, and to Santa Fe's knowledge, no threat in writing has been made to
cancel (excluding cancellation upon expiration or failure to renew) any such
insurance policy of Santa Fe or any Subsidiary of Santa Fe during the period of
one year prior to the date hereof. Prior to the date hereof, no event has
occurred, including the failure by Santa Fe or any Subsidiary of Santa Fe to
give any notice or information or by giving any inaccurate or erroneous notice
or information, which materially limits or impairs the rights of Santa Fe or any
Subsidiary of Santa Fe under any such excess liability, hull or protection and
indemnity insurance policies.

                  Section 6.17 No Brokers. Santa Fe has not entered into any
contract, arrangement or understanding with any person or firm which may result
in the obligation of Global or Santa Fe to pay any finder's fees, brokerage or
other like payments in connection with the negotiations leading to this
Agreement or the consummation of the transactions contemplated hereby, except
that Santa Fe has retained Credit Suisse First Boston Corporation as its
financial advisor, the arrangements with which have been disclosed in writing to
Global prior to the date hereof.

                  Section 6.18 Opinion of Financial Advisor. The Board of
Directors of Santa Fe has received the opinion of Credit Suisse First Boston
Corporation to the effect that, as of the date of this Agreement, the Merger
Ratio is fair to Santa Fe from a financial point of view.

                  Section 6.19 Global Stock Ownership. Neither Santa Fe nor any
of its Subsidiaries owns any shares of capital stock of Global or any other
securities convertible into or otherwise exercisable to acquire capital stock of
Global.
                  Section 6.20 Vote Required. The only votes of the holders of
any class or series of Santa Fe share capital necessary to approve any
transaction contemplated by this Agreement are (a) the vote of the holders of
Santa Fe Ordinary Shares required by the rules of the NYSE to approve the
issuance of Santa Fe Ordinary Shares pursuant to the Merger and (b) the
affirmative vote of at least two-thirds of the votes represented by the holders
of the issued Santa Fe Ordinary Shares present in person or by proxy at a
meeting to be held in accordance with Section 7.4 to approve the Santa Fe
Amendments.

                  Section 6.21 Ownership of Drilling Rigs and Drillships. (a) As
of the date hereof, Santa Fe or a Subsidiary of Santa Fe has good and marketable
title to the drilling rigs and drillships listed in Santa Fe's most recent
annual report on Form 10-K, in each case free and clear of all Liens except for
(a) defects or irregularities of title or encumbrances of a nature that

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<PAGE>

do not materially impair the ownership or operation of these assets and which
have not had and are not reasonably likely to have a Santa Fe Material Adverse
Effect, (b) Liens that secure obligations not yet due and payable or, if such
obligations are due and have not been paid, Liens securing such obligations that
are being diligently contested in good faith and by appropriate proceedings (any
such contests involving an amount in excess of $10 million being described in
the Santa Fe Disclosure Letter), (c) Liens for taxes, assessments or other
governmental charges or levies not yet due or which are being contested in good
faith, (d) Liens in connection with workmen's compensation, unemployment
insurance or other social security, old age pension or public liability
obligations not yet due or which are being contested in good faith, (e)
operators', vendors', suppliers of necessaries to Santa Fe's drilling rigs and
drillships, carriers', warehousemen's, repairmen's, mechanics', workmen's,
materialmen's, construction or shipyard liens (during repair or upgrade periods)
or other like Liens arising by operation of law in the ordinary course of
business or statutory landlord's liens, each of which is in respect of
obligations that have not been outstanding more than 90 days (so long as no
action has been taken to file or enforce such Liens within said 90-day period)
or which are being contested in good faith and (f) other Liens disclosed in the
Santa Fe Disclosure Letter (the Liens described in clauses (a), (b), (c), (d),
(e) and (f), collectively, "Santa Fe Permitted Liens"). No such asset is leased
under an operating lease from a lessor that, to Santa Fe's knowledge, has
incurred non-recourse indebtedness to finance the acquisition or construction of
such asset.

                  (b) As of the date hereof and except as would not have Santa
Fe Material Adverse Effect, Santa Fe has caused the drilling rigs and drillships
listed in Santa Fe's most recent annual report on Form 10-K to be maintained
consistent with general practice in the offshore drilling industry, and all such
drilling rigs and drillships are in good operating condition and repair
consistent with general practice in the offshore drilling industry.

                  Section 6.22 Undisclosed Liabilities. Neither Santa Fe nor any
of its Subsidiaries has any liabilities or obligations of any nature, whether or
not fixed, accrued, contingent or otherwise, except liabilities and obligations
that (i) are disclosed in the Santa Fe Reports filed prior to the date of this
Agreement, (ii) are referred to in the Santa Fe Disclosure Letter, or (iii) do
not and are not reasonably likely to have, individually or in the aggregate, a
Santa Fe Material Adverse Effect.

                  Section 6.23 Certain Contracts. (a) Section 6.23 of the Santa
Fe Disclosure Letter contains a list of all of the following contracts or
agreements (other than those set forth on an exhibit index in the Santa Fe
Reports filed prior to the date of this Agreement) to which Santa Fe or any
Subsidiary of Santa Fe is a party or by which any of them or their assets is
bound as of the date of this Agreement: (i) any non-competition agreement that
purports to limit the manner in which, or the localities in which, all or any
portion of their respective businesses is conducted other than any such
limitation that is not, and will not be following the Effective Time, material
to Santa Fe and its Subsidiaries, taken as a whole, (ii) any drilling rig
construction or conversion contract with respect to which the drilling rig has
not been delivered and paid for, (iii) any drilling contracts of one year or
greater remaining duration including fixed price customer options, (iv) any
contract or agreement for the borrowing of money with a borrowing capacity or
outstanding indebtedness of $50 million or more or (v) any "material contract"
(as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC) (all
contracts or agreements of the

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<PAGE>

types described in clauses (i) through (v) being referred to herein as "Santa Fe
Material Contracts").[B

                  (b) As of the date of this Agreement, each Santa Fe Material
Contract is, to the knowledge of Santa Fe, in full force and effect, and Santa
Fe and each of its Subsidiaries have in all material respects performed all
obligations required to be performed by them to date under each Santa Fe
Material Contract to which it is a party, except where such failure to be
binding or in full force and effect or such failure to perform does not and is
not reasonably likely to create, individually or in the aggregate, a Santa Fe
Material Adverse Effect. Except for such matters as do not and are not
reasonably likely to have a Santa Fe Material Adverse Effect, neither Santa Fe
nor any of its Subsidiaries (x) knows of, or has received written notice of, any
breach of or violation or default under (nor, to the knowledge of Santa Fe, does
there exist any condition which with the passage of time or the giving of notice
or both would result in such a violation or default under) any Santa Fe Material
Contract or (y) has received written notice of the desire of the other party or
parties to any such Santa Fe Material Contract to exercise any rights such party
has to cancel, terminate or repudiate such contract or exercise remedies
thereunder. Except as would not be reasonably likely to have, individually or in
the aggregate, a Santa Fe Material Adverse Effect, the consummation of the
transactions contemplated by this Agreement will not breach or violate any Santa
Fe Material Contract or permit any other party to a Santa Fe Material Contract
to exercise rights adverse to Santa Fe. Each Santa Fe Material Contract is
enforceable by Santa Fe or a Subsidiary of Santa Fe in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws relating to creditors' rights and general principles of
equity, except where such unenforceability is not reasonably likely to create,
individually or in the aggregate, a Global Material Adverse Effect.

                  Section 6.24 Capital Expenditure Program. As of the date of
this Agreement, the Santa Fe Disclosure Letter accurately sets forth in all
material respects, for each of Santa Fe's sustaining, life extension and
newbuild capital expenditure programs, the capital expenditures for all such
programs that were forecasted to be incurred from July 1, 2001 through December
31, 2002 on a calendar quarter basis, as previously provided to Global. The
construction in progress attributable to the newbuilds and included in the
consolidated balance sheet of Santa Fe at June 30, 2001 included in the Santa Fe
Reports and the projected newbuild capital expenditures to be incurred in 2001
and thereafter as previously provided to Global equal the projected total
construction costs to complete such newbuilds, as at the time of such forecast.

                  Section 6.25 Improper Payments. No bribes, kickbacks or other
improper payments have been made by Santa Fe or any Subsidiary of Santa Fe or
agent of any of them in connection with the conduct of their respective
businesses or the operation of their respective assets, and neither Santa Fe,
any Subsidiary of Santa Fe, nor any agent of any of them has received any such
payments from vendors, suppliers or other persons, where any such payment made
or received is reasonably likely to have a Santa Fe Material Adverse Effect.

                                       30
<PAGE>

                                   ARTICLE 7

                                   COVENANTS

                  Section 7.1  Conduct of Business. Prior to the Effective Time,
except as set forth in the Santa Fe Disclosure Letter or the Global Disclosure
Letter or as expressly contemplated by any other provision of this Agreement or
(provided that the party proposing to take such action has provided the other
party with advance notice of the proposed action to the extent practicable) as
required by Applicable Laws, unless the other party has consented in writing
thereto, each of Santa Fe and Global:

                  (a)     shall, and shall cause each of its Subsidiaries to,
         conduct its operations according to their usual, regular and ordinary
         course in substantially the same manner as heretofore conducted;

                  (b)     shall use its reasonable best efforts, and shall cause
         each of its Subsidiaries to use its reasonable best efforts, to
         preserve intact their business organizations and goodwill (except that
         any of its Subsidiaries may be merged with or into, or be consolidated
         with, any of its Subsidiaries or may be liquidated into it or any of
         its Subsidiaries), keep available the services of their respective
         officers and employees and maintain satisfactory relationships with
         those persons having business relationships with them;

                  (c)     shall not amend its memorandum of association or
         articles of association, or its certificate of incorporation or bylaws,
         respectively, and in the case of Santa Fe, shall not amend the
         Intercompany Agreement dated as of June 9, 1997, by and among Santa Fe,
         SFIC Holdings (Cayman), Inc. and Kuwait Petroleum Corporation or any
         other related agreement between Santa Fe, on the one hand, and Kuwait
         Petroleum Corporation or any of its affiliates, on the other hand;

                  (d)     shall promptly notify the other of any material change
         in its condition (financial or otherwise) or business or any
         termination, cancellation, repudiation or material breach of any Santa
         Fe Material Contract or Global Material Contract, respectively (or
         communications indicating that the same may be contemplated), or any
         material litigation or proceedings (including arbitration and other
         dispute resolution proceedings) or material governmental complaints,
         investigations or hearings (or communications indicating that the same
         may be contemplated), or the breach in any material respect of any
         representation or warranty contained herein;

                  (e)     shall promptly deliver to the other true and correct
         copies of any report, statement or schedule filed with the SEC
         subsequent to the date of this Agreement;

                  (f)     shall not, (i) except pursuant to the exercise of
         options, warrants, conversion rights and other contractual rights
         existing on the date hereof and disclosed pursuant to this Agreement or
         pursuant to the exercise of awards granted after the date hereof and
         expressly permitted under this Agreement or in connection with
         transactions permitted by Section 7.1(i), issue any shares of its
         capital stock, effect any stock split or

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<PAGE>

         otherwise change its capitalization as it existed on the date hereof,
         (ii) grant, confer or award any option, warrant, conversion right or
         other right not existing on the date hereof to acquire any shares of
         its capital stock, except for (A) awards of options to acquire up to
         30,000 shares of Global Common Stock, per person, to newly hired
         employees or to existing employees as the result of promotions, in each
         case other than officers or directors of Global (including former
         officers or directors) in the ordinary course of business consistent
         with past practices as set forth in Section 7.1(f) of the Global
         Disclosure Letter and (B) up to 7,000, in the aggregate, of restricted
         Santa Fe Ordinary Shares for award to newly hired employees, (iii)
         amend or otherwise modify any option, warrant, conversion right or
         other right to acquire any shares of its capital stock existing on the
         date hereof, (iv) with respect to any of its former, present or future
         employees (excluding officers and directors), increase any compensation
         or benefits, or enter into, amend or extend (or permit the extension
         of) any employment or consulting agreement, except in each case in the
         ordinary course of business consistent with past practice, (v) with
         respect to any of its former, present or future officers or directors,
         increase any compensation or benefits or enter into, amend or extend
         (or permit the extension of) any employment or consulting agreement,
         (vi) adopt any new employee benefit plan or agreement (including any
         stock option, stock benefit or stock purchase plan) or amend (except as
         required by law) any existing employee benefit plan in any material
         respect, or (vii) permit any holder of an option to acquire Santa Fe
         Ordinary Shares or Global Common Stock to have shares withheld upon
         exercise, for tax purposes, in excess of the number of shares needed to
         satisfy the minimum statutory withholding requirements for federal and
         state tax withholding;

                  (g)     except for the payment of regular quarterly dividends
         on the Santa Fe Ordinary Shares not to exceed $.0325 per share with
         customary record and payment dates, shall not (i) declare, set aside or
         pay any dividend or make any other distribution or payment with respect
         to any shares of its share capital or capital stock or (ii) redeem,
         purchase or otherwise acquire any shares of its share capital or
         capital stock or capital stock of any of its Subsidiaries, or make any
         commitment for any such action;

                  (h)     shall not, and shall not permit any of its
         Subsidiaries to, sell, lease or otherwise dispose of any of its assets
         (including capital stock of Subsidiaries) which are, individually or in
         the aggregate, material to it and its Subsidiaries as a whole, except
         for (i) sales of surplus or obsolete equipment, (ii) sales of other
         assets in the ordinary course of business, or (iii) sales, leases or
         other transfers between such party and its wholly owned Subsidiaries or
         between those Subsidiaries;

                  (i)     shall not, and shall not permit any of its
         Subsidiaries to, except pursuant to contractual commitments in effect
         on the date hereof and disclosed in the Santa Fe Disclosure Letter or
         the Global Disclosure Letter, acquire or agree to acquire by merging or
         consolidating with, or by purchasing an equity interest in or a
         substantial portion of the assets of, or by any other manner, any
         business or any corporation, partnership, association or other business
         organization or division thereof, in each case (i) for an aggregate
         consideration for all such acquisitions in excess of $10 million
         (excluding acquisitions approved in writing by both parties) or (ii)
         where a filing under the HSR Act or any non -U.S. competition,
         antitrust or premerger notification laws is required;

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<PAGE>

                  (j)     shall not, except as may be required as a result of a
         change in generally accepted accounting principles, change any of the
         material accounting principles or practices used by it;

                  (k)     shall, and shall cause any of its Subsidiaries to, use
         reasonable efforts to maintain with financially responsible insurance
         companies insurance in such amounts and against such risks and losses
         as are customary for such party;

                  (l)     shall not, and shall not permit any of its
         Subsidiaries to, (i) make or rescind any material election relating to
         taxes, including elections for any and all joint ventures,
         partnerships, limited liability companies, working interests or other
         investments where it has the capacity to make such binding election,
         (ii) settle or compromise any material claim, action, suit, litigation,
         proceeding, arbitration, investigation, audit or controversy relating
         to taxes, or (iii) change in any material respect any of its methods of
         reporting any item for tax purposes from those employed in the
         preparation of its tax returns for the most recent taxable year for
         which a return has been filed, except as may be required by applicable
         law;

                  (m)     shall not, and shall not permit any of its
         Subsidiaries to, (i) incur any indebtedness for borrowed money in
         excess of $25 million, in the aggregate, or guarantee any such
         indebtedness or issue or sell any debt securities or warrants or rights
         to acquire any of its debt securities or any of its Subsidiaries or
         guarantee any debt securities of others, (ii) except in the ordinary
         course of business or with or between its Subsidiaries, enter into any
         material lease (whether such lease is an operating or capital lease) or
         create any material mortgages, Liens, security interests or other
         encumbrances on its property in connection with any indebtedness
         thereof (other than Permitted Liens) or (iii) make or commit to make
         aggregate capital expenditures in excess of $50 million per quarter for
         each quarter from the date of this Agreement to the Effective Time over
         the capital expenditures forecast disclosed in Schedule 6.24 of the
         Santa Fe Disclosure Letter or Schedule 5.24 of the Global Disclosure
         Letter for such quarter, excluding capital expenditures to repair
         damage covered by insurance, provided, however, that capital
         expenditures in connection with the total loss (actual or constructive)
         of any drilling rig or other vessel shall require the consent of the
         other party;

                  (n)     shall not, and shall cause its Subsidiaries not to,
         purchase or otherwise acquire any Santa Fe Ordinary Shares or Global
         Common Stock;

                  (o)     subject to Section 7.5, shall not take any action that
         is reasonably likely to delay materially or adversely affect the
         ability of any of the parties hereto to obtain any consent,
         authorization, order or approval of any governmental commission, board
         or other regulatory body or the expiration of any applicable waiting
         period required to consummate the transactions contemplated by this
         Agreement;

                  (p)     unless in the good faith opinion of its Board of
         Directors after consultation with its outside legal counsel the
         following would be inconsistent with its fiduciary duties, (i) shall
         not terminate, amend, modify or waive any provision of any agreement
         containing a standstill covenant to which it is a party; and (ii)
         during such period shall

                                       33
<PAGE>

         enforce, to the fullest extent permitted under Applicable Law, the
         provisions of such agreement, including by obtaining injunctions to
         prevent any breaches of such agreements and to enforce specifically the
         terms and provisions thereof in any court of the United States of
         America or any state having jurisdiction;

                  (q)     shall not take any action that would reasonably be
         expected to result in (i) the breach of any representation or warranty
         contained herein, or (ii) any condition in Article VIII not being
         satisfied; and

                  (r)     shall not (i) agree in writing or otherwise to take
         any of the foregoing actions or (ii) permit any of its Subsidiaries to
         agree in writing or otherwise to take any of the foregoing actions that
         refer to Subsidiaries.

                  Section 7.2  No Solicitation by Global. (a) Global agrees that
(i) neither it nor any of its Subsidiaries shall, and it shall not authorize or
permit any of its officers, directors, employees, agents or representatives
(including, without limitation, any investment banker, attorney or accountant
retained by it or any of its Subsidiaries) to, and on becoming aware of it will
use its reasonable best efforts to stop such person from continuing to, directly
or indirectly, solicit, initiate or encourage (including by way of furnishing
nonpublic information), or take any action designed to facilitate, directly or
indirectly, any inquiry, proposal or offer (including, without limitation, any
proposal or offer to its stockholders) with respect to a tender or exchange
offer, merger, consolidation, business combination, purchase or similar
transaction or series of transactions (other than the transactions contemplated
by this Agreement) involving, individually or in the aggregate, 15% or more of
the assets, net revenues or net income of Global and its Subsidiaries on a
consolidated basis or 15% or more of any class of capital stock of Global,
including, without limitation, any merger or similar transaction in which 15% or
more of Global's capital stock is issued to a third party or its stockholders
(any such proposal, offer or transaction being hereinafter referred to as a
"Global Acquisition Proposal") or cooperate with or assist, participate or
engage in any discussions or negotiations concerning a Global Acquisition
Proposal; and (ii) it will immediately cease and cause to be terminated any
existing negotiations with any parties conducted heretofore with respect to any
of the foregoing; provided that nothing contained in this Agreement shall
prevent Global or its Board of Directors from (A) complying with Rule 14e-2
promulgated under the Exchange Act with regard to a Global Acquisition Proposal
or (B) prior to the Cutoff Date (as defined herein), providing information
(pursuant to a confidentiality and standstill agreement in reasonably customary
form and which does not contain terms that prevent Global from complying with
its obligations under this Section 7.2) to, or engaging in any negotiations or
discussions with, any person or entity who has made an unsolicited bona fide
written Global Acquisition Proposal with respect to all the outstanding capital
stock of Global or all or substantially all the assets of Global (or a merger or
similar transaction in which 40% or more of Global's capital stock is issued to
a third party or its stockholders) that, in the good faith judgment of the Board
of Directors of Global, taking into account the likelihood of financing and
consummation, after consultation with a financial advisor of recognized national
reputation, is superior to the Merger (a "Global Superior Proposal"), to the
extent the Board of Directors of Global, after consultation with its outside
legal counsel, determines that the failure to do so would be inconsistent with
its fiduciary obligations.

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<PAGE>

                  (b)     Prior to taking any action referred to in Section
7.2(a), if Global intends to participate in any such discussions or negotiations
or provide any such information to any such third party, Global shall give
prompt prior oral and written notice to Santa Fe of each such action. Global
will immediately notify Santa Fe orally and in writing of any such requests for
such information or the receipt of any Global Acquisition Proposal or any
inquiry with respect to or that could lead to a Global Acquisition Proposal,
including the identity of the person or group engaging in such discussions or
negotiations, requesting such information or making such Global Acquisition
Proposal, and the material terms and conditions of any Global Acquisition
Proposal. Global will (i) keep Santa Fe fully informed of the status and details
(including any changes or proposed changes to such status or details) on a
timely basis of any such requests, Global Acquisition Proposals or inquiries and
(ii) provide to Santa Fe as soon as practicable after receipt or delivery
thereof with copies of all correspondence and other written material sent or
provided to Global from any third party in connection with any Global
Acquisition Proposal or sent or provided by Global to any third party in
connection with any Global Acquisition Proposal. Any written notice under this
Section 7.2 shall be given by facsimile with receipt confirmed or personal
delivery.

                  (c)     Nothing in this Section 7.2 shall permit Global to
enter into any agreement with respect to a Global Acquisition Proposal during
the term of this Agreement, it being agreed that during the term of this
Agreement (except pursuant to Section 9.3(c)), Global shall not enter into any
agreement with any person that provides for, or in any way facilitates, a Global
Acquisition Proposal, other than a confidentiality and standstill agreement in
reasonably customary form and which does not contain terms that prevent Global
from complying with its obligations under this Section 7.2.

                  (d)     For purposes hereof, the "Cutoff Date," when used with
respect to Global, means the date the condition set forth in Section 8.1(a)(i)
is satisfied.

                  Section 7.3  No Solicitation by Santa Fe. (a) Santa Fe agrees
that (i) neither it nor any of its Subsidiaries shall, and it shall not
authorize or permit any of its officers, directors, employees, agents or
representatives (including, without limitation, any investment banker, attorney
or accountant retained by it or any of its Subsidiaries) to, and on becoming
aware of it will use its reasonable best efforts to stop such person from
continuing to, directly or indirectly, solicit, initiate or encourage (including
by way of furnishing nonpublic information), or take any action designed to
facilitate, directly or indirectly, any inquiry, proposal or offer (including,
without limitation, any proposal or offer to its shareholders) with respect to a
tender or exchange offer, merger, consolidation, business combination, purchase
or similar transaction or series of transactions (other than the transactions
contemplated by this Agreement) involving, individually or in the aggregate, 15%
or more of the assets, net revenues or net income of Santa Fe and its
Subsidiaries on a consolidated basis or 15% or more of any class of share
capital of Santa Fe, including, without limitation, any merger or similar
transaction in which 15% or more of Santa Fe's share capital is issued to a
third party or its shareholders (any such proposal, offer or transaction being
hereinafter referred to as a "Santa Fe Acquisition Proposal") or cooperate with
or assist, participate or engage in any discussions or negotiations concerning a
Santa Fe Acquisition Proposal; and (ii) it will immediately cease and cause to
be terminated any existing negotiations with any parties conducted heretofore
with respect to any of the foregoing; provided that nothing contained in this
Agreement shall prevent Santa Fe or its Board of Directors from

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<PAGE>

(A) complying with Rule 14e-2 promulgated under the Exchange Act with regard to
a Santa Fe Acquisition Proposal or (B) prior to the Cutoff Date (as defined
herein), providing information (pursuant to a confidentiality and standstill
agreement in reasonably customary form and which does not contain terms that
prevent Santa Fe from complying with its obligations under this Section 7.3) to
or engaging in any negotiations or discussions with any person or entity who has
made an unsolicited bona fide written Santa Fe Acquisition Proposal with respect
to all the outstanding Santa Fe Ordinary Shares or all or substantially all the
assets of Santa Fe (or a merger or similar transaction in which 40% or more of
Santa Fe's share capital is issued to a third party or its stockholders) that,
in the good faith judgment of the Board of Directors of Santa Fe, taking into
account the likelihood of financing and consummation, after consultation with a
financial advisor of recognized national reputation, is superior to the Merger
(a "Santa Fe Superior Proposal"), to the extent that the Board of Directors of
Santa Fe, after consultation with its outside legal counsel, determines that the
failure to do so would be inconsistent with its fiduciary obligations

                  (b)     Prior to taking any action referred to in Section
7.3(a), if Santa Fe intends to participate in any such discussions or
negotiations or provide any such information to any such third party, Santa Fe
shall give prompt prior oral and written notice to Global of each such action.
Santa Fe will immediately notify Global orally and in writing of any such
requests for such information or the receipt of any Santa Fe Acquisition
Proposal or any inquiry with respect to or that could lead to a Santa Fe
Acquisition Proposal, including the identity of the person or group engaging in
such discussions or negotiations, requesting such information or making such
Santa Fe Acquisition Proposal, and the material terms and conditions of any
Santa Fe Acquisition Proposal. Santa Fe will (i) keep Global fully informed of
the status and details (including any changes or proposed changes to such status
or details) on a timely basis of any such requests, Santa Fe Acquisition
Proposals or inquiries and (ii) provide to Global as soon as practicable after
receipt or delivery thereof with copies of all correspondence and other written
material sent or provided to Santa Fe from any third party in connection with
any Santa Fe Acquisition Proposal or sent or provided by Santa Fe to any third
party in connection with any Santa Fe Acquisition Proposal. Any written notice
under this Section 7.3 shall be given by facsimile with receipt confirmed or
personal delivery.

                  (c)     Nothing in this Section 7.3 shall permit Santa Fe to
enter into any agreement with respect to a Santa Fe Acquisition Proposal during
the term of this Agreement, it being agreed that during the term of this
Agreement (except pursuant to Section 9.4(c)), Santa Fe shall not enter into any
agreement with any person that provides for, or in any way facilitates, a Santa
Fe Acquisition Proposal, other than a confidentiality agreement in reasonably
customary form and which does not contain terms that prevent Santa Fe from
complying with its obligations under this Section 7.3.

                  (d)     For purposes hereof, the "Cutoff Date," when used with
respect to Santa Fe, means the date the condition set forth in Section
8.1(a)(ii) is satisfied.

                  Section 7.4  Meetings of Stockholders. (a) Each of Santa Fe
and Global shall take all action necessary, in accordance with applicable law
and its memorandum of association and articles of association (Santa Fe) or
certificate of incorporation and bylaws (Global), to convene a meeting of its
stockholders as promptly as practicable to consider and vote upon (i) in

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<PAGE>

the case of Santa Fe, the approval of the Santa Fe Amendments and the issuance
of Santa Fe Ordinary Shares pursuant to the Merger and (ii) in the case of
Global, the adoption of this Agreement. Santa Fe and Global shall coordinate and
cooperate with respect to the timing of such meetings and shall use their
reasonable best efforts to hold such meetings on the same day. Notwithstanding
any other provision of this Agreement, unless this Agreement is terminated in
accordance with the terms hereof, Global and Santa Fe shall each submit this
Agreement to its stockholders, whether or not the Board of Directors of Global
or Santa Fe, as the case may be, withdraws, modifies or changes its
recommendation and declaration regarding the foregoing matters.

                  (b)     Each of Santa Fe and Global, through its Board of
Directors, shall recommend approval of such matters and use its reasonable best
efforts to solicit from its stockholders proxies in favor of such matters;
provided, however, that the Board of Directors of Santa Fe or the Board of
Directors of Global may at any time prior to the Effective Time upon one
business day's prior written notice to Global or Santa Fe, respectively, (i)
withdraw, modify or change any recommendation and declaration regarding such
matters or (ii) recommend and declare advisable any Global Superior Proposal or
Santa Fe Superior Proposal, as the case may be, if in the good faith opinion of
such Board of Directors after consultation with its outside legal counsel the
failure to (x) so withdraw, modify or change its recommendation and declaration
or (y) so recommend and declare advisable any Global Superior Proposal or Santa
Fe Superior Proposal, as the case may be, would be inconsistent with its
fiduciary obligations.

                  Section 7.5   Filings; Reasonable Best Efforts, Etc. (a)
Subject to the terms and conditions herein provided, Global and Santa Fe shall:

                          (i)   make their respective required filings under the
                  HSR Act and any applicable non-U.S. competition, antitrust or
                  premerger notification laws ("Non-U.S. Antitrust Laws") to be
                  made pursuant to Section 8.1(b), including, for the avoidance
                  of doubt, filing of a Merger Notice with the U.K. Office of
                  Fair Trading (and shall share equally all filing fees incident
                  thereto), which filings shall be made promptly, and which
                  filings as required under the HSR Act shall be made in not
                  more than 15 business days from the date hereof, and
                  thereafter shall promptly make any other required submissions
                  under the HSR Act or other such laws;

                          (ii)  use their reasonable best efforts to cooperate
                  with one another in (A) determining which filings are required
                  to be made prior to the Effective Time with, and which
                  consents, approvals, permits or authorizations are required to
                  be obtained prior to the Effective Time from, governmental or
                  regulatory authorities of the United States, the several
                  states, and non-U.S. jurisdictions in connection with the
                  execution and delivery of this Agreement, including, for the
                  avoidance of doubt, filing of a Merger Notice with the U.K.
                  Office of Fair Trading, and the consummation of the Merger and
                  the transactions contemplated hereby; and (B) timely making
                  all such filings and timely seeking all such consents,
                  approvals, permits or authorizations without causing a Santa
                  Fe Material Adverse Effect or a Global Material Adverse
                  Effect;

                                       37
<PAGE>

                          (iii) promptly notify each other of any communication
                  concerning this Agreement or the transactions contemplated
                  hereby to that party from any governmental authority and
                  permit the other party to review in advance any proposed
                  communication concerning this Agreement or the transactions
                  contemplated hereby to any governmental entity;

                          (iv)  not agree to participate in any meeting or
                  discussion with any governmental authority in respect of any
                  filings, investigation or other inquiry concerning this
                  Agreement or the transactions contemplated hereby unless it
                  consults with the other party in advance and, to the extent
                  permitted by such governmental authority, gives the other
                  party the opportunity to attend and participate in such
                  meeting or discussion;

                           (v)  furnish the other party with copies of all
                  correspondence, filings and communications (and memoranda
                  setting forth the substance thereof) between them and their
                  affiliates and their respective representatives on the one
                  hand, and any government or regulatory authority or members or
                  any such authority's staff on the other hand, with respect to
                  this Agreement and the transactions contemplated hereby; and

                           (vi) furnish the other party with such necessary
                  information and reasonable assistance as such other party and
                  its affiliates may reasonably request in connection with their
                  preparation of necessary filings, registrations or submissions
                  of information to any governmental or regulatory authorities,
                  including, without limitation, any filings necessary or
                  appropriate under the provisions of the HSR Act or any
                  applicable Non-U.S. Antitrust Laws.

                  (b)      Without limiting Section 7.5(a), but subject to
Section 7.5(c), Santa Fe and Global shall:

                           (i)  each use reasonable best efforts to avoid the
                  entry of, or to have vacated, terminated or modified, any
                  decree, order or judgment that would restrain, prevent or
                  delay the Closing; and

                           (ii) each use reasonable best efforts to take any
                  and all steps necessary to obtain any consents or eliminate
                  any impediments to the Merger.

                  (c)      Nothing in this Agreement shall require Santa Fe or
Global to dispose of any of its assets or to limit its freedom of action with
respect to any of its businesses, or to consent to any disposition of its assets
or limits on its freedom of action with respect to any of its businesses,
whether prior to or after the Effective Time, or to commit or agree to any of
the foregoing, to obtain any consents, approvals, permits or authorizations or
to remove any impediments to the Merger relating to the HSR Act, Non-U.S.
Antitrust Laws or other antitrust, competition or premerger notification, trade
regulation law, regulation or order ("Antitrust Laws") or to avoid the entry of,
or to effect the dissolution of, any injunction, temporary restraining order or
other order in any suit or proceeding relating to Antitrust Laws, other than
dispositions, limitations or consents, commitments or agreements that in each
such case may be

                                       38
<PAGE>

conditioned upon the consummation of the Merger and the transactions
contemplated hereby and that in each such case do not and are not reasonably
likely individually or in the aggregate to have a Material Adverse Effect on
Santa Fe and its Subsidiaries taken as a whole as constituted after the
Effective Time of the Merger.

          Section 7.6 Inspection. From the date hereof to the Effective Time,
each of Global and Santa Fe shall allow all designated officers, attorneys,
accountants and other representatives of Santa Fe or Global, as the case may be,
access, at all reasonable times, upon reasonable notice, to the records and
files, correspondence, audits and properties, as well as to all information
relating to commitments, contracts, titles and financial position, or otherwise
pertaining to the business and affairs of Santa Fe and Global and their
respective Subsidiaries, including inspection of such properties; provided that
no investigation pursuant to this Section 7.6 shall affect any representation or
warranty given by any party hereunder, and provided further that notwithstanding
the provision of information or investigation by any party, no party shall be
deemed to make any representation or warranty except as expressly set forth in
this Agreement. Notwithstanding the foregoing, no party shall be required to
provide any information which it reasonably believes it may not provide to the
other party by reason of applicable law, rules or regulations, which constitutes
information protected by attorney/client privilege, or which it is required to
keep confidential by reason of contract or agreement with third parties. The
parties hereto shall make reasonable and appropriate substitute disclosure
arrangements under circumstances in which the restrictions of the preceding
sentence apply. Each of Santa Fe and Global agrees that it shall not, and shall
cause its respective representatives not to, use any information obtained
pursuant to this Section 7.6 for any purpose unrelated to the consummation of
the transactions contemplated by this Agreement. All non-public information
obtained pursuant to this Section 7.6 shall be governed by the Confidentiality
and Standstill Agreement dated May 10, 2001 between Santa Fe and Global (the
"Confidentiality and Standstill Agreement").

          Section 7.7 Publicity. The parties will consult with each other before
issuing any press release or public announcement pertaining to this Agreement or
the transactions contemplated hereby and shall not issue any such press release
or make any such public announcement without the prior written consent of the
other party, which consent shall not be unreasonably withheld, except as may be
required by applicable law or by obligations pursuant to any listing agreement
with any national securities exchange, in which case the party proposing to
issue such press release or make such public announcement shall use its
reasonable best efforts to consult in good faith with the other party before
issuing any such press releases or making any such public announcements.

          Section 7.8 Registration Statement on Form S-4. (a) Each of Santa Fe
and Global shall cooperate and promptly prepare, and Santa Fe shall file with
the SEC, as soon as practicable, a Registration Statement on Form S-4 (the "Form
S-4") under the Securities Act with respect to the Santa Fe Ordinary Shares
issuable in the Merger, a portion of which Registration Statement shall also
serve as the joint proxy statement with respect to the meetings of the
stockholders of Santa Fe and of Global in connection with the transactions
contemplated by this Agreement (the "Proxy Statement/Prospectus"). The
respective parties will cause the Proxy Statement/Prospectus and the Form S-4 to
comply as to form in all material respects with the applicable provisions of the
Securities Act, the Exchange Act and the rules and regulations

                                       39
<PAGE>

thereunder. Santa Fe shall use reasonable best efforts, and Global shall
cooperate with Santa Fe, to have the Form S-4 declared effective by the SEC as
promptly as practicable. Santa Fe shall use reasonable best efforts to obtain,
prior to the effective date of the Form S-4, all necessary non-U.S., state
securities law or "Blue Sky" permits or approvals required to carry out the
transactions contemplated by this Agreement and the parties shall share equally
all expenses incident thereto (including all SEC and other filing fees and all
printing and mailing expenses associated with the Form S-4 and the Proxy
Statement/Prospectus). Santa Fe will advise Global, promptly after it receives
notice thereof, of the time when the Form S-4 has become effective or any
supplement or amendment has been filed, the issuance of any stop order, the
suspension of the qualification of the Santa Fe Ordinary Shares issuable in
connection with the Merger for offering or sale in any jurisdiction or any
request by the SEC for amendment of the Proxy Statement/Prospectus or the Form
S-4 or comments thereon and responses thereto or requests by the SEC for
additional information. Each of the parties shall also promptly provide each
other party copies of all written correspondence received from the SEC and
summaries of all oral comments received from the SEC in connection with the
transactions contemplated by this Agreement. Each of the parties shall promptly
provide each other party with drafts of all correspondence intended to be sent
to the SEC in connection with the transactions contemplated by this Agreement
and allow each such party the opportunity to comment thereon prior to delivery
to the SEC.

          (b) Santa Fe and Global shall each use its reasonable best efforts to
cause the Proxy Statement/Prospectus to be mailed to its stockholders as
promptly as practicable after the Form S-4 is declared effective under the
Securities Act.

          (c) Each of Santa Fe and Global shall ensure that the information
provided by it for inclusion in the Proxy Statement/Prospectus and each
amendment or supplement thereto, at the time of mailing thereof and at the time
of the respective meetings of stockholders of Santa Fe and Global, or, in the
case of information provided by it for inclusion in the Form S-4 or any
amendment or supplement thereto, at the time it becomes effective, (i) will not
include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading and (ii)
will comply as to form in all material respects with the provisions of the
Securities Act and the Exchange Act.

          Section 7.9  Listing Application. Santa Fe shall promptly prepare and
submit to the NYSE a listing application covering the Santa Fe Ordinary Shares
issuable in the Merger and shall use reasonable best efforts to obtain, prior to
the Effective Time, approval for the listing of such Santa Fe Ordinary Shares,
subject to official notice of issuance.

          Section 7.10 Letters of Accountants. (a) Global shall use reasonable
best efforts to cause to be delivered to Santa Fe "comfort" letters of
PricewaterhouseCoopers LLP, Global's independent public accountants, dated
within two business days of the effective date of the Form S-4 and within two
business days of the Closing Date, respectively, and addressed to Santa Fe with
regard to certain financial information regarding Global included in the Form S-
4, in form reasonably satisfactory to Santa Fe and customary in scope and
substance for "comfort" letters delivered by independent public accountants in
connection with registration statements similar to the Form S-4.

                                       40
<PAGE>

          (b) Santa Fe shall use reasonable best efforts to cause to be
delivered to Global "comfort" letters of Ernst & Young LLP, Santa Fe's
independent public accountants, dated within two business days of the effective
date of the Form S-4 and within two business days of the Closing Date,
respectively, and addressed to Global, with regard to certain financial
information regarding Santa Fe included in the Form S-4, in form reasonably
satisfactory to Global and customary in scope and substance for "comfort"
letters delivered by independent public accountants in connection with
registration statements similar to the Form S-4.

          Section 7.11 Agreements of Rule 145 Affiliates. Prior to the Effective
Time, Global shall cause to be prepared and delivered to Santa Fe a list
identifying all persons who Global believes, at the date of the meeting of
Global's stockholders to consider and vote upon the adoption of this Agreement,
may be deemed to be "affiliates" of Global, as that term is used in paragraphs
(c) and (d) of Rule 145 under the Securities Act (the "Rule 145 Affiliates").
Global shall use reasonable best efforts to cause each person who is identified
as a Rule 145 Affiliate in such list to deliver to Santa Fe, at or prior to the
Effective Time, a written agreement, in the form of Exhibit 7.11. Santa Fe shall
be entitled to place restrictive legends on any Santa Fe Ordinary Shares issued
to such Rule 145 Affiliates pursuant to the Merger.

          Section 7.12 Expenses. Whether or not the Merger is consummated, all
costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring such
expenses, except as expressly provided in Sections 7.5(a)(i) and 7.8(a) of this
Agreement or as otherwise agreed in writing by the parties.

          Section 7.13 Indemnification and Insurance. (a) From and after the
Effective Time, Santa Fe shall cause the Surviving Entity to indemnify, defend
and hold harmless to the fullest extent permitted under applicable law each
person who is, or has been at any time prior to the Effective Time, an officer
or director of Global (or any Subsidiary or division thereof) and each person
who served at the request of Global as a director, officer, trustee or fiduciary
of another corporation, partnership, joint venture, trust, pension or other
employee benefit plan or enterprise, and each person who is, or has been at any
time prior to the Effective Time, a party to a written employee indemnification
agreement with Global or any Subsidiary thereof (individually, an "Indemnified
Party" and, collectively, the "Indemnified Parties") against all losses, claims,
damages, liabilities, costs or expenses (including attorneys' fees), judgments,
fines, penalties and amounts paid in settlement in connection with any claim,
action, suit, proceeding or investigation arising out of or pertaining to acts
or omissions, or alleged acts or omissions, by them in their capacities as such,
whether commenced, asserted or claimed before or after the Effective Time. In
the event of any such claim, action, suit, proceeding or investigation (an
"Action"), (i) Santa Fe shall cause the Surviving Entity to pay, as incurred,
the fees and expenses of counsel selected by the Indemnified Party, which
counsel shall be reasonably acceptable to the Surviving Entity, in advance of
the final disposition of any such Action to the fullest extent permitted by
applicable law and, if required, upon receipt of any undertaking required by
applicable law, and (ii) Santa Fe and the Surviving Entity will cooperate in the
defense of any such matter; provided, however, the Surviving Entity shall not be
liable for any settlement effected without its written consent (which consent
shall not be unreasonably withheld or delayed), and provided further, that Santa
Fe and the Surviving Entity shall not be obligated pursuant to this Section 7.13
to pay the fees and disbursements of more than one counsel for all Indemnified
Parties in any single Action, unless, in the good faith judgment of

                                       41
<PAGE>

any of the Indemnified Parties, there is or may be a conflict of interests
between two or more of such Indemnified Parties, in which case there may be
separate counsel for each similarly situated group.

          (b) The parties agree that the rights to indemnification, including
provisions relating to advances of expenses incurred in defense of any action or
suit, in the certificate of incorporation and bylaws of Global and its
Subsidiaries with respect to matters occurring through the Effective Time, shall
survive the Merger.

          (c) For a period of six years after the Effective Time, Santa Fe and
the Surviving Entity shall cause to be maintained officers' and directors'
liability insurance covering the Indemnified Parties who are, or at any time
prior to the Effective Time were, covered by Global's existing officers' and
directors' liability insurance policies on terms substantially no less
advantageous to the Indemnified Parties than such existing insurance, provided
that Santa Fe and the Surviving Entity shall not be required to pay annual
premiums in excess of 150% of the last annual premium paid by Global prior to
the date hereof (the amount of which premium is set forth in the Global
Disclosure Letter), but in such case shall purchase as much coverage as
reasonably practicable for such amount.

          (d) The rights of each Indemnified Party hereunder shall be in
addition to any other rights such Indemnified Party may have under the
certificate of incorporation or bylaws of Global or any of its Subsidiaries,
under applicable law or otherwise. The provisions of this Section 7.13 shall
survive the consummation of the Merger and expressly are intended to benefit
each of the Indemnified Parties.

          (e) In the event Santa Fe, the Surviving Entity or any of their
respective successors or assigns (i) consolidates with or merges into any other
person and shall not be the continuing or surviving corporation or entity in
such consolidation or merger or (ii) transfers all or substantially all of its
properties and assets to any person, then and in either such case, proper
provision shall be made so that the successors and assigns of Santa Fe or the
Surviving Entity, as the case may be, shall assume the obligations set forth in
this Section 7.13.

          Section 7.14 Employee Matters. (a) At the Effective Time, Santa Fe
will cause the Surviving Entity and its Subsidiaries to continue the employment
of all of the employees of Global and its Subsidiaries initially at the same
salaries and wages of such employees immediately prior to the Effective Time.
Nothing in this Agreement shall be considered a contract between Santa Fe, the
Surviving Entity, its Subsidiaries and any employee or consideration for, or
inducement with respect to, any employee's continued employment and, without
limitation, all such employees are and will continue to be considered to be
employees at will pursuant to the applicable employment at will laws or
doctrines, subject to any express written agreement to the contrary with such
employee, and the Surviving Entity and its Subsidiaries will have the right, in
their discretion and subject to this Section 7.14, to alter the salaries, wages
and terms of employment of such employees at any time after the Effective Time.

          (b) With respect to each employee of Global and its Subsidiaries
("Affected Employee"), Santa Fe shall cause the Surviving Entity to deem the
period of employment with Global and its Subsidiaries to have been employment
and service with Santa Fe for purposes of

                                       42
<PAGE>

determining the Affected Employee's eligibility to join and vesting (but not
benefit accrual for any purpose other than vacation pay, sick leave and life
insurance) under all employee benefit plans, programs, policies or similar
employment related arrangements of Santa Fe and its Subsidiaries in which the
Affected Employee is eligible to participate. Santa Fe shall waive, and to the
extent necessary to effect the terms hereof, shall use its reasonable best
efforts to cause the relevant insurance carriers and other third parties to
waive, any restrictions and limitations for medical conditions existing as of
the Effective Time of those Affected Employees and their dependents who were
covered immediately prior to the Effective Time under a group health plan
maintained by Global, but only to the extent that such medical condition would
be covered by Santa Fe's or the Surviving Entity's group health plan if it were
not a pre-existing condition and only to the extent that such limitations would
not have applied under Global's group health plan prior to the Effective Time.
Further, Santa Fe shall cause the Surviving Entity to offer at the Effective
Time to each Affected Employee coverage under a group health plan (as defined in
Section 5000(b)(1) of the Code) which credits such Affected Employee towards the
deductibles, coinsurance and maximum out-of-pocket provisions imposed under such
group health plan, for the year during which the Effective Time (or such later
date as the Affected Employees participate in such group health plan) occurs,
with any applicable expenses already incurred during such year under Global's
group health plan.

          (c) Santa Fe and Global agree to cooperate in good faith to (i)
establish a process to promptly integrate their compensation and benefit plans
following the Effective Time and (ii) take appropriate and substantially
consistent actions to retain key employees and provide for a smooth transition.

          (d) Except with respect to offers of employment to prospective new
employees in the ordinary course of business consistent with past practices and
other than statements that merely repeat or summarize the effects of this
Agreement or the terms of agreements identified in the disclosure schedules,
Global and Santa Fe agree that they will not make, or permit their Subsidiaries
to make, any representations or promises, oral or written, to their employees
concerning continued employment following the Effective Time, or the terms and
conditions of that employment or benefits offered, other than with the express
mutual consent of both Global and Santa Fe.

          (e) Santa Fe agrees that in the event the annual bonus payments for
employees of Global and its Subsidiaries in respect of service during 2001 have
not been paid prior to the Effective Date, Santa Fe shall pay, or cause its
Subsidiaries to pay, such annual bonus in accordance with the terms of the
management incentive award plans listed in Schedule 5.11 of the Global
Disclosure Letter.

          (f) Santa Fe agrees to continue, or cause its Subsidiaries to
continue, the Global Severance Program for Shorebased Staff Personnel (as
identified on Schedule 5.11 of the Global Disclosure Letter) (the "Severance
Program") for the benefit of any Affected Employee who would be eligible for
severance benefits under the Severance Program as a result of a qualifying
layoff or termination of employment within twelve months following the Effective
Time.

                                       43
<PAGE>

          (g) Santa Fe agrees to treat the Merger as a change in control with
respect to (i) awards made under the Global Stock Plans and the Global Non-
Employee Director Restricted Stock Plan, (ii) the Severance Program, (iii) the
employment agreement with Robert E. Rose , as amended, identified on Schedule
5.9 to the Global Disclosure Letter, and (iv) the severance agreements
identified on Schedule 7.14 of the Global Disclosure Letter. Santa Fe agrees to
assume the obligations of Global with respect to the severance agreements listed
on Schedule 7.14 of the Global Disclosure Schedule.

          (h) Santa Fe agrees to assume the obligations of Global with respect
to the performance stock awards identified on Schedule 7.14 to the Global
Disclosure Schedule, including the obligation to accelerate the removal of all
conditions, contingencies and other restrictions from the total number of shares
of Global Common Stock subject to the awards for all Affected Employees. Within
10 days after the Effective Time, Santa Fe agrees to issue to each holder of
performance shares identified on Schedule 7.14, other than any holder who has
terminated employment with Global and its Subsidiaries prior to the Effective
Time without entitlement to a performance share payment, a number of Santa Fe
Ordinary Shares equal to the product (rounded to the nearest whole share) of the
number of shares of Global Common Stock subject to the performance share award
multiplied by the Merger Ratio.

          (i) Santa Fe agrees to assume the obligation of Global to issue an
award of 250,000 restricted shares of Global Common Stock to Robert E. Rose, by
the issuance as of the Effective Time of a number of Santa Fe Ordinary Shares
equal to the product (rounded to the nearest whole share) of 250,000 multiplied
by the Merger Ratio, with such award to be subject to the forfeiture
restrictions previously approved by the Compensation Committee of the Board of
Directors of Global.

          Section 7.15 Delivery of Santa Fe Ordinary Shares. Prior to the
Merger, Sub shall purchase from Santa Fe and Santa Fe shall sell to Sub all or a
portion of that number of Santa Fe Ordinary Shares which Sub is required to
deliver pursuant to Section 4.3(a). If Sub purchases fewer than all such shares
from Santa Fe, Santa Fe will otherwise provide to Sub the remaining required
shares.

          Section 7.16 Supplemental Indenture. Santa Fe and Global shall comply
with all of the provisions of the Supplemental Indenture, including without
limitation, the provisions contained in Section 11.11 of the Supplemental
Indenture prior to the Effective Time.

          Section 7.17 Notification. Each party shall give to the others prompt
notice of (i) any representation or warranty made by it or contained in this
Agreement becoming untrue or inaccurate in any material respect and (ii) the
failure by it to comply with or satisfy in any material respect any covenant,
condition or agreement to be complied with or satisfied by it under this
Agreement; provided, however, that no such notification shall affect the
representations, warranties, covenants or agreements of the parties or the
conditions to the obligations of the parties under this Agreement.

                                       44
<PAGE>

                                   ARTICLE 8

                                  CONDITIONS

                  Section 8.1  Conditions to Each Party's Obligation to Effect
the Merger. The respective obligation of each party to effect the Merger shall
be subject to the fulfillment at or prior to the Closing Date of the following
conditions:

                  (a)     (i)  This Agreement shall have been adopted by the
         affirmative vote of holders of a majority of the outstanding shares of
         Global Common Stock entitled to vote thereon; and

                          (ii) Each of the Santa Fe Amendments and the issuance
                  of Santa Fe Ordinary Shares pursuant to the Merger shall have
                  been approved by the holders of issued Santa Fe Ordinary
                  Shares as and to the extent required by Cayman Islands law,
                  Santa Fe's memorandum of association and articles of
                  association and the rules of the NYSE.

                  (b)     (i)  Any waiting period applicable to the consummation
         of the Merger under the HSR Act shall have expired or been terminated,
         (ii) there shall not be pending or threatened in writing any claim,
         proceeding or action by an agency of the government of the United
         States, of the United Kingdom or of the European Union seeking to
         restrain, prohibit or rescind any transactions contemplated by this
         Agreement as an actual or threatened violation of any Antitrust Law, as
         applicable, or seeking to penalize a party for completing any such
         transaction which in any of such cases is, in the reasonable judgment
         of either Global or Santa Fe, reasonably likely to have any of the
         effects described in Section 7.5(c), (iii) in the event of any review
         by the U.K. Office of Fair Trading or, if applicable, the U.K.
         Secretary of State for Trade and Industry, indications reasonably
         satisfactory to each of Global and Santa Fe that the Merger will not be
         referred to the Competition Commission shall have been received or, if
         the Merger is referred to the Competition Commission, indications
         reasonably satisfactory to each of Global and Santa Fe that the Merger
         can proceed, (iv) any mandatory waiting period under any applicable
         Non-U.S. Antitrust Laws (where the failure to observe such waiting
         period referred to in this clause (iv) would, in the reasonable
         judgment of either Global or Santa Fe, reasonably be expected to have
         any of the effects described in Section 7.5(c) shall have expired or
         been terminated and (v) there shall not have been a final or
         preliminary administrative order denying approval of or prohibiting the
         Merger issued by a governmental authority with jurisdiction to enforce
         applicable Non-U.S. Antitrust Laws, which order is in the reasonable
         judgment of either Global or Santa Fe reasonably likely to have any of
         the effects described in Section 7.5(c).

                  (c)     None of the parties hereto shall be subject to any
         decree, order or injunction of a court of competent jurisdiction, U.S.
         or non-U.S., which prohibits the consummation of the Merger; provided,
         however, that, prior to invoking this condition, each party agrees to
         comply with Section 7.5, and with respect to other matters not covered
         by Section 7.5, to use its reasonable best efforts to have any such
         decree, order or injunction lifted or vacated; and no statute, rule or
         regulation shall have been enacted by

                                       45
<PAGE>

         any governmental authority which prohibits or makes unlawful the
         consummation of the Merger.

                  (d) The Form S-4 shall have become effective and no stop order
         with respect thereto shall be in effect.

                  (e) The Santa Fe Ordinary Shares to be issued pursuant to the
         Merger shall have been authorized for listing on the NYSE, subject to
         official notice of issuance.

                  Section 8.2 Conditions to Obligation of Global to Effect the
Merger. The obligation of Global to effect the Merger shall be subject to the
fulfillment or waiver at or prior to the Closing Date of the following
conditions:

                  (a) Santa Fe, Sub and Merger Sub shall have performed, in all
         material respects, their covenants and agreements contained in this
         Agreement required to be performed on or prior to the Closing Date, and
         the representations and warranties of Santa Fe, Sub and Merger Sub
         contained in this Agreement (i) that are qualified as to materiality or
         Santa Fe Material Adverse Effect shall be true and correct in all
         respects as of the Closing Date, except to the extent such
         representations and warranties expressly relate to an earlier date (in
         which case as of such earlier date), and (ii) that are not so qualified
         shall be true and correct in all respects as of the Closing Date,
         except to the extent such representations and warranties expressly
         relate to an earlier date (in which case as of such earlier date),
         except for such breaches of representations and inaccuracies in
         warranties in this clause (ii) that do not and are not reasonably
         likely to have, individually or in the aggregate, a Santa Fe Material
         Adverse Effect, and Global shall have received a certificate of each of
         Santa Fe, Sub and Merger Sub, executed on its behalf by its President
         or one of its Vice Presidents, dated the Closing Date, certifying to
         such effect.

                  (b) At any time after the date of this Agreement, there shall
         not have been any event or occurrence, or series of events or
         occurrences, that has had or is reasonably likely to have, individually
         or in the aggregate with all other events or occurrences since the date
         of this Agreement, a Santa Fe Material Adverse Effect.

                  Section 8.3 Conditions to Obligation of Santa Fe, Sub and
Merger Sub to Effect the Merger. The obligations of Santa Fe, Sub and Merger Sub
to effect the Merger shall be subject to the fulfillment or waiver at or prior
to the Closing Date of the following conditions:

                  (a) Global shall have performed, in all material respects, its
         covenants and agreements contained in this Agreement required to be
         performed on or prior to the Closing Date, and the representations and
         warranties of Global contained in this Agreement (i) that are qualified
         as to materiality or Global Material Adverse Effect shall be true and
         correct in all respects as of the Closing Date, except to the extent
         such representations and warranties expressly relate to an earlier date
         (in which case as of such earlier date), and (ii) that are not so
         qualified shall be true and correct in all respects as of the Closing
         Date, except to the extent such representations and warranties
         expressly relate to an earlier date (in which case as of such earlier
         date), except for such breaches of

                                       46
<PAGE>

         representations and inaccuracies in warranties in this clause (ii) that
         do not and are not reasonably likely to have, individually or in the
         aggregate, a Global Material Adverse Effect, and Santa Fe shall have
         received a certificate of Global, executed on its behalf by its
         President or one of its Vice Presidents, dated the Closing Date,
         certifying to such effect.

                  (b) At any time after the date of this Agreement, there shall
         not have been any event or occurrence, or series of events or
         occurrences, that has had or is reasonably likely to have, individually
         or in the aggregate with all other events or occurrences since the date
         of this Agreement, a Global Material Adverse Effect.

                                   ARTICLE 9

                                  TERMINATION

                  Section 9.1 Termination by Mutual Consent. This Agreement may
be terminated at any time prior to the Effective Time by the mutual written
consent of Global and Santa Fe.

                  Section 9.2 Termination by Santa Fe or Global. This Agreement
may be terminated at any time prior to the Effective Time by action of the Board
of Directors of Santa Fe or Global if:

                  (a) the Merger shall not have been consummated by March 31,
         2002; provided, however, that the right to terminate this Agreement
         pursuant to this clause (a) shall not be available to any party whose
         failure to perform or observe in any material respect any of its
         obligations under this Agreement in any manner shall have been the
         cause of, or resulted in, the failure of the Merger to occur on or
         before such date;

                  (b) a meeting (including adjournments and postponements) of
         Global's stockholders for the purpose of obtaining the approvals
         required by Section 8.1(a)(i) shall have been held and such stockholder
         approvals shall not have been obtained;

                  (c) a meeting (including adjournments and postponements) of
         Santa Fe's shareholders for the purpose of obtaining the approvals
         required by Section 8.1(a)(ii) shall have been held and such
         shareholder approvals shall not have been obtained; or

                  (d) a U.S. federal, state or non-U.S. court of competent
         jurisdiction or federal, state or non-U.S. governmental, regulatory or
         administrative agency or commission shall have issued an order, decree
         or ruling or taken any other action permanently restraining, enjoining
         or otherwise prohibiting the transactions contemplated by this
         Agreement and such order, decree, ruling or other action shall have
         become final and nonappealable; provided, however, that the party
         seeking to terminate this Agreement pursuant to this clause (d) shall
         have complied with Section 7.5 and, with respect to other matters not
         covered by Section 7.5, shall have used its reasonable best efforts to
         remove such injunction, order or decree.

                                       47
<PAGE>

                  Section 9.3  Termination by Global. This Agreement may be
terminated at any time prior to the Effective Time by action of the Board of
Directors of Global, after consultation with its outside legal advisors, if

                  (a)     (i)  there has been a breach by Santa Fe, Sub or
         Merger Sub of any representation, warranty, covenant or agreement set
         forth in this Agreement or if any representation or warranty of Santa
         Fe, Sub or Merger Sub shall have become untrue, in either case such
         that the conditions set forth in Section 8.2(a) would not be satisfied
         and (ii) such breach is not curable, or, if curable, is not cured
         within 30 days after written notice of such breach is given to Santa Fe
         by Global; provided, however, that the right to terminate this
         Agreement pursuant to Section 9.3(a) shall not be available to Global
         if it, at such time, is in breach of any representation, warranty,
         covenant or agreement set forth in this Agreement such that the
         condition set forth in Section 8.3(a) shall not be satisfied;

                  (b)     the Board of Directors of Santa Fe shall have
         withdrawn or materially modified, in a manner adverse to Global, its
         approval or recommendation of the Santa Fe Amendments or the issuance
         of Santa Fe Ordinary Shares pursuant to the Merger or recommended a
         Santa Fe Acquisition Proposal, or resolved to do so; or

                  (c)     prior to the Cutoff Date, (i) the Board of Directors
         of Global has received a Global Superior Proposal, (ii) in light of
         such Global Superior Proposal the Board of Directors of Global shall
         have determined in good faith, (A) after consultation with its outside
         legal advisors, that proceeding with the Merger would be inconsistent
         with its fiduciary obligations and (B) that there is a substantial
         likelihood that the adoption by Global's stockholders of this Agreement
         will not be obtained by reason of the existence of such Global Superior
         Proposal, (iii) Global has complied in all material respects with
         Section 7.2, (iv) Global has previously paid the fee provided for under
         Section 9.5(a)(i), and (v) the Board of Directors of Global
         concurrently approves, and Global concurrently enters into, a binding
         definitive written agreement providing for the implementation of such
         Global Superior Proposal; provided that Global may not effect such
         termination pursuant to this Section 9.3(c) unless and until (i) Santa
         Fe receives at least five business days' prior written notice from
         Global of its intention to effect such termination pursuant to this
         Section 9.3(c); and (ii) during such five business day period, Global
         shall, and shall cause its respective financial and legal advisors to,
         consider any adjustment in the terms and conditions of this Agreement
         that Santa Fe may propose.

                  Section 9.4 Termination by Santa Fe. This Agreement may be
terminated at any time prior to the Effective Time by action of the Board of
Directors of Santa Fe, after consultation with its outside legal advisors, if:

                  (a)     (i) there has been a breach by Global of any
         representation, warranty, covenant or agreement set forth in this
         Agreement or if any representation or warranty of Global shall have
         become untrue, in either case such that the conditions set forth in
         Section 8.3(a) would not be satisfied and (ii) such breach is not
         curable, or, if curable, is not cured within 30 days after written
         notice of such breach is given by Santa Fe to Global; provided,
         however, that the right to terminate this Agreement pursuant to Section
         9.4(a) shall not be available to Santa Fe if it, at such time, is in
         breach of any

                                       48
<PAGE>

         representation, warranty, covenant or agreement set forth in this
         Agreement such that the conditions set forth in Section 8.2(a) shall
         not be satisfied; or

                  (b)     the Board of Directors of Global shall have withdrawn
         or materially modified, in a manner adverse to Santa Fe, its approval
         or recommendation of the Merger or recommended a Global Acquisition
         Proposal, or resolved to do so; or

                  (c)     prior to the Cutoff Date, (i) the Board of Directors
         of Santa Fe has received a Santa Fe Superior Proposal, (ii) in light of
         such Santa Fe Superior Proposal the Board of Directors of Santa Fe
         shall have determined in good faith, (A) after consultation with its
         outside legal advisors, that proceeding with the Merger would be
         inconsistent with its fiduciary obligations and (B) that there is a
         substantial likelihood that the adoption by Santa Fe's shareholders of
         this Agreement will not be obtained by reason of the existence of such
         Santa Fe Superior Proposal, (iii) Santa Fe has complied in all material
         respects with Section 7.3, (iv) Santa Fe has previously paid the fee
         provided for under Section 9.5(b)(i), and (v) the Board of Directors of
         Santa Fe concurrently approves, and Santa Fe concurrently enters into,
         a binding definitive written agreement providing for the implementation
         of such Santa Fe Superior Proposal; provided that Santa Fe may not
         effect such termination pursuant to this Section 9.4(c) unless and
         until (i) Global receives at least five business days' prior written
         notice from Santa Fe of its intention to effect such termination
         pursuant to this Section 9.4(c); and (ii) during such five business day
         period, Santa Fe shall, and shall cause its respective financial and
         legal advisors to, consider any adjustment in the terms and conditions
         of this Agreement that Global may propose.

                  Section 9.5  Effect of Termination. (a) (i) If this Agreement
         is terminated:

                          (A)  by Global or Santa Fe pursuant to Section 9.2(b)
                  after the public announcement of a Global Acquisition
                  Proposal, whether or not the Global Acquisition Proposal is
                  still pending or has been consummated; or

                          (B)  by Santa Fe pursuant to Section 9.4(b); or

                          (C)  by Global pursuant to Section 9.3(c);

then Global shall pay Santa Fe a fee of $120 million at the time of such
termination in cash by wire transfer to an account designated by Santa Fe.

                          (ii) If this Agreement is terminated by Global
                  pursuant to Section 9.3(c) and in accordance with the terms
                  thereof (including the payment of the fee referred to
                  therein), no fee additional to the fee specified in Section
                  9.3(c) shall be payable by Global to Santa Fe.

                  (b)     (i) If this Agreement is terminated:

                          (A)  by Global or Santa Fe pursuant to Section 9.2(c)
                  after the public announcement of a Santa Fe Acquisition
                  Proposal, whether or not the Santa Fe Acquisition Proposal is
                  still pending or has been consummated; or

                                       49
<PAGE>

                           (B)  by Global pursuant to Section 9.3(b); or

                           (C)  by Santa Fe pursuant to Section 9.4(c);

then Santa Fe shall pay Global a fee of $120 million at the time of such
termination in cash by wire transfer to an account designated by Global.

                           (ii) If this Agreement is terminated by Santa Fe
                    pursuant to Section 9.4(c) and in accordance with the terms
                    thereof (including the payment of the fee referred to
                    therein), no fee additional to the fee specified in Section
                    9.4(c) shall be payable by Santa Fe to Global.

                    (c)    If this Agreement is terminated by Global or Santa Fe
pursuant to Section 9.2(b) other than in circumstances covered by Section
9.5(a), then Global shall pay Santa Fe a fee of $10 million to reimburse it for
its costs and expenses incurred in connection with this transaction. If this
Agreement is terminated by Global or Santa Fe pursuant to Section 9.2(c), other
than in circumstances covered by Section 9.5(b), then Santa Fe shall pay Global
a fee of $10 million to reimburse it for its costs and expenses incurred in
connection with this transaction.

                    (d)    In the event of termination of this Agreement and the
abandonment of the Merger pursuant to this Article 9, all obligations of the
parties hereto shall terminate, except the obligations of the parties pursuant
to this Section 9.5, the last sentence of Section 7.6 and Section 7.12 and
except for the provisions of Sections 10.2, 10.3, 10.4, 10.6, 10.8, 10.9, 10.11,
10.12 and 10.13, provided that nothing herein shall relieve any party from any
liability for any willful and material breach by such party of any of its
representations, warranties, covenants or agreements set forth in this Agreement
and all rights and remedies of such nonbreaching party under this Agreement in
the case of such a willful and material breach, at law or in equity, shall be
preserved. The Confidentiality and Standstill Agreement shall survive any
termination of this Agreement, and the provisions of such Confidentiality and
Standstill Agreement shall apply to all information and material delivered by
any party hereunder.

                    Section 9.6 Extension; Waiver. At any time prior to the
Effective Time, each party may by action taken by its Board of Directors, to the
extent legally allowed, (a) extend the time for the performance of any of the
obligations or other acts of the other parties hereto, (b) waive any
inaccuracies in the representations and warranties made to such party contained
herein or in any document delivered pursuant hereto and (c) waive compliance
with any of the agreements or conditions for the benefit of such party contained
herein. Any agreement on the part of a party hereto to any such extension or
waiver shall be valid only if set forth in an instrument in writing signed on
behalf of such party.

                                  ARTICLE 10

                              GENERAL PROVISIONS

                    Section 10.1 Nonsurvival of Representations, Warranties and
Agreements. All representations, warranties and agreements in this Agreement or
in any instrument delivered pursuant to this Agreement shall not survive the
Merger; provided, however, that the agreements

                                       50
<PAGE>

contained in Article 4 and in Sections 3.1, 3.2, 7.11, 7.12, 7.13, 7.14, 7.15
and this Article 10 and the agreements delivered pursuant to this Agreement
shall survive the Merger.

          Section 10.2 Notices. Except as otherwise provided herein, any notice
required to be given hereunder shall be sufficient if in writing, and sent by
facsimile transmission or by courier service (with proof of service), hand
delivery or certified or registered mail (return receipt requested and first-
class postage prepaid), addressed as follows:

                  (a)      if to Global:

                           Senior Vice President and General Counsel
                           Global Marine Inc.
                           777 N. Eldridge Parkway
                           Houston, Texas 77079-4493
                           Facsimile: (281) 596-5196

                               with a copy to:

                               Baker Botts L.L.P.
                               One Shell Plaza
                               910 Louisiana
                               Houston, Texas 77002-4995
                               Attention: J. David Kirkland, Jr., Esq.
                               Facsimile: (713) 229-7701

                  (b)      if to Santa Fe, Sub or Merger Sub:

                           Santa Fe International Corporation
                           5420 LBJ Freeway, Suite 1100
                           Dallas, Texas 75240-2648
                           Attention: Seals M. McCarty
                                      Senior Vice President and Chief
                                      Financial Officer
                           Facsimile: (972) 701-7600

                               with a copy to:

                               Shearman & Sterling
                               599 Lexington Avenue
                               New York, New York 10022
                               Attention: John J. Madden, Esq.
                                          Creighton O'M. Condon, Esq.
                               Facsimile: (212) 848-7179

or to such other address as any party shall specify by written notice so given,
and such notice shall be deemed to have been delivered as of the date so
telecommunicated, personally delivered or mailed.

                                       51
<PAGE>

          Section 10.3 Assignment; Binding Effect; Benefit. Neither this
Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto (whether by operation of law or otherwise)
without the prior written consent of the other parties. Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns. Notwithstanding
anything contained in this Agreement to the contrary, except for the provisions
of Article 4 and Section 7.13 and except as provided in any agreements delivered
pursuant hereto (collectively, the "Third-Party Provisions"), nothing in this
Agreement, expressed or implied, is intended to confer on any person other than
the parties hereto or their respective heirs, successors, executors,
administrators and assigns any rights, remedies, obligations or liabilities
under or by reason of this Agreement. The Third-Party Provisions may be enforced
by the beneficiaries thereof.

          Section 10.4 Entire Agreement. This Agreement, the exhibits to this
Agreement, the Global Disclosure Letter, the Santa Fe Disclosure Letter and any
documents delivered by the parties in connection herewith constitute the entire
agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings among the parties with respect
thereto, except that the Confidentiality and Standstill Agreement shall continue
in effect. No addition to or modification of any provision of this Agreement
shall be binding upon any party hereto unless made in writing and signed by all
parties hereto.

          Section 10.5 Amendments. This Agreement may be amended by the parties
hereto, by action taken or authorized by their Boards of Directors, at any time
before or after approval of matters presented in connection with the Merger by
the stockholders of Global or Santa Fe, but after any such stockholder approval,
no amendment shall be made which by law requires the further approval of
stockholders without obtaining such further approval. This Agreement may not be
amended except by an instrument in writing signed on behalf of each of the
parties hereto.

          Section 10.6 Governing Law. Except to the extent that the laws of the
jurisdiction of organization of any party hereto, or any other jurisdiction, are
mandatorily applicable to the Merger or to matters arising under or in
connection with this Agreement, this Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without regard
to its rules of conflicts of laws.

          Section 10.7 Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute one and the same instrument. Each counterpart may consist of a number
of copies hereof each signed by less than all, but together signed by all of the
parties hereto.

          Section 10.8 Headings. Headings of the Articles and Sections of this
Agreement are for the convenience of the parties only and shall be given no
substantive or interpretative effect whatsoever.

                                       52
<PAGE>

                  Section 10.9 Interpretation. In this Agreement:

                  (a) Unless the context otherwise requires, words describing
         the singular number shall include the plural and vice versa, words
         denoting any gender shall include all genders, and words denoting
         natural persons shall include corporations and partnerships and vice
         versa.

                  (b) The phrase "to the knowledge of" and similar phrases
         relating to knowledge of Global or Santa Fe, as the case may be, shall
         mean the actual knowledge of its executive officers.

                  (c) "Material Adverse Effect" with respect to any person shall
         mean a material adverse effect on or change in (a) the business,
         assets, financial condition or results of operations of such person and
         its Subsidiaries, taken as a whole, except for such changes or effects
         in general economic, capital market, regulatory or political conditions
         or changes that affect generally the drilling services industry and do
         not disproportionately affect such person, or (b) the ability of the
         party to consummate the transactions contemplated by this Agreement or
         fulfill the conditions to closing. "Global Material Adverse Effect" and
         "Santa Fe Material Adverse Effect" mean a Material Adverse Effect with
         respect to Global and Santa Fe, respectively.

                  (d) The term "Subsidiary," when used with respect to any
         party, means any corporation or other organization (including a limited
         liability company), whether incorporated or unincorporated, of which
         such party directly or indirectly owns or controls at least a majority
         of the securities or other interests having by their terms ordinary
         voting power to elect a majority of the board of directors or others
         performing similar functions with respect to such corporation or other
         organization or any organization of which such party is a general
         partner.

                  Section 10.10 Waivers. Except as provided in this Agreement,
no action taken pursuant to this Agreement, including, without limitation, any
investigation by or on behalf of any party, shall be deemed to constitute a
waiver by the party taking such action of compliance with any representations,
warranties, covenants or agreements contained in this Agreement. The waiver by
any party hereto of a breach of any provision hereunder shall not operate or be
construed as a waiver of any prior or subsequent breach of the same or any other
provision hereunder.

                  Section 10.11 Incorporation of Exhibits. The Global Disclosure
Letter, the Santa Fe Disclosure Letter and all exhibits attached hereto and
referred to herein are hereby incorporated herein and made a part hereof for all
purposes as if fully set forth herein.

                  Section 10.12 Severability. Any term or provision of this
Agreement which is invalid or unenforceable in any jurisdiction shall, as to
that jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms
and provisions of this Agreement or affecting the validity or enforceability of
any of the terms or provisions of this Agreement in any other jurisdiction. If
any provision of

                                       53
<PAGE>

this Agreement is so broad as to be unenforceable, the provision shall be
interpreted to be only so broad as is enforceable.

          Section 10.13 Enforcement of Agreement. (a) The parties hereto agree
that irreparable damage would occur in the event that any of the provisions of
this Agreement were not performed in accordance with its specific terms or was
otherwise breached. It is accordingly agreed that the parties shall be entitled
to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically the terms and provisions hereof, this being in addition to
any other remedy to which they are entitled at law or in equity.

          (b) Each of the parties hereto (i) consents to submit itself to the
personal jurisdiction of any Delaware state court or any Federal court located
in the State of Delaware in the event any dispute arises out of this Agreement
or any of the transactions contemplated herein, (ii) agrees that it will not
attempt to deny or defeat such personal jurisdiction by motion or other request
for leave from any such court, and (iii) agrees that it will not bring any
action relating to this Agreement or any of the transactions contemplated herein
in any court other than any Delaware state court or any Federal court sitting in
the State of Delaware.

          (c) Santa Fe designates and appoints Corporation Services Company with
an address in the State of Delaware at 4303 Lancaster Pike, Wilmington, Delaware
19085 and such person's successors and assigns as its lawful agent in the State
of Delaware upon which may be served, and which may accept and acknowledge for
and on behalf of Santa Fe, all process in any action, suit or proceedings that
may be brought against Santa Fe in any of the courts referred to in this
Section, and agrees that such service of process, or the acceptance or
acknowledgment thereof by said agent, shall be valid, effective and binding in
every respect.

          Section 10.14 Waiver of Jury Trial. EACH OF SANTA FE, SUB, MERGER SUB
AND GLOBAL HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ALL RIGHTS OF TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

                                       54
<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement and
caused the same to be duly delivered on their behalf on the day and year first
written above.

                                    SANTA FE INTERNATIONAL
                                    CORPORATION

                                    By: /s/ SANTA FE INTERNATIONAL CORPORATION
                                        --------------------------------------
                                    Name:
                                    Title:

                                    SILVER SUB, INC.

                                    By: /s/ SILVER SUB, INC.
                                        --------------------------------------
                                    Name:
                                    Title:

                                    GOLD MERGER SUB, INC.

                                    By: /s/ GOLD MERGER SUB, INC.
                                        --------------------------------------
                                    Name:
                                    Title:

                                    GLOBAL MARINE INC.

                                    By: /s/ GLOBAL MARINE INC.
                                        --------------------------------------
                                    Name:
                                    Title:

                                       55
<PAGE>

================================================================================
                                                                  EXECUTION COPY

                                    EXHIBITS

                                       TO

                          AGREEMENT AND PLAN OF MERGER

                                     among

                       SANTA FE INTERNATIONAL CORPORATION

                                SILVER SUB, INC.

                             GOLD MERGER SUB, INC.

                                      and

                               GLOBAL MARINE INC.

                          Dated as of August 31, 2001

===============================================================================
<PAGE>

                               INDEX TO EXHIBITS
                               -----------------

Exhibit 2.1  Amendments to Articles of Association and
             Memorandum of Association

Exhibit 3.2  Other Officers

Exhibit 7.11 Form of Agreement of Rule 145 Affiliate
<PAGE>

                                  EXHIBIT 2.1
                                  -----------

                   AMENDMENTS TO ARTICLES OF ASSOCIATION AND

                           MEMORANDUM OF ASSOCIATION
<PAGE>

                    THE COMPANIES LAW (2001 SECOND REVISION)

                           COMPANY LIMITED BY SHARES

                  AMENDED AND RESTATED ARTICLES OF ASSOCIATION

                                       OF

                           GLOBALSANTAFE CORPORATION

                     (Adopted by Special Resolution of the

                Shareholders effective _____________, 2001)/1/

                              I.  INTERPRETATION

     1.1 The Regulations or Articles contained or incorporated in Table 'A' in
the First Schedule to the Statute shall not apply to this Company and the
following Articles shall comprise the Articles of Association of the Company.
Unless there be something in the subject or context inconsistent therewith,

          "Articles" means these Amended and Restated Articles of Association as
     originally framed or as from time to time amended.

          "Board of Directors" or "Board" means the Board of Directors of the
     Company, comprised of Directors holding office from time to time.

          "Company" means GlobalSantaFe Corporation.

          "Directors" means the directors for the time being of the Company.

          "dividend" includes share dividend.

          "Effective Time" shall mean the effective time of the merger
     contemplated by the Agreement and Plan of Merger among Santa Fe
     International Corporation, Silver Sub, Inc., Gold Merger Sub, Inc. and
     Global Marine Inc. dated as of August 31, 2001.

          "holder" in relation to any shares means the Shareholder whose name is
     entered in the Register as the holder of such shares.

          "Independent Director" means a Director who is not a current or
     former, (i) director, officer, employee or affiliate of any member of the
     KPC Affiliated Group or (ii) officer or employee of the Company or any of
     its subsidiaries.

---------------------
/1/  To be the date of the effective time of the Merger.
<PAGE>

          "Memorandum" means the Amended and Restated Memorandum of Association
     of the Company, as the same may be amended from time to time.

          "Merger Agreement" means the Agreement and Plan of Merger among Santa
     Fe International Corporation, Silver Sub, Inc., Gold Merger Sub, Inc. and
     Global Marine Inc., dated as of August 31, 2001.

          "Month" means calendar month.

          "Ordinary Resolution" means a resolution passed by a simple majority
     of the votes cast by Shareholders being entitled to vote and present in
     person or by proxy at a general meeting.

          "Ordinary Shares" has the meaning ascribed to it in Article III.

          "Outstanding Voting Stock" means the shares of Voting Stock issued and
     outstanding from time to time, and shall not include shares of Voting Stock
     held by the Company or any subsidiary of the Company.

          "Paid-up" means paid-up and/or credited as paid-up.

          "Register" means the Register of Shareholders of the Company as
     maintained in accordance with Section 40 of the Statute.

          "Registered Office" means the registered office for the time being of
     the Company.

          "seal" means the common seal of the Company and includes every
     official seal.

          "Secretary" means the secretary of the Company and includes an
     Assistant Secretary and any person appointed to perform the duties of
     Secretary of the Company.

          "shares" means any Ordinary Shares or other shares issued in the
     capital of the Company.

          "share dividend" means a distribution of shares in lieu of payment of
     a dividend in cash.

          "Shareholder" has the meaning ascribed to the term "member" in Section
     38 of the Statute.

          "Special Resolution" has the same meaning as in the Statute.

          "Specified Period" means the period of time commencing at the
     Effective Time and terminating upon the later of the date on which the
     members of the KPC Affiliated Group shall cease to own, in the aggregate,
     at least ten percent (10%), (i) of the voting power of the Outstanding
     Voting Stock or (ii) of all the outstanding Ordinary Shares.

                                       2
<PAGE>

          "Statute" means the Companies Law (2001 Second Revision) of the Cayman
     Islands as amended and every statutory modification or re-enactment thereof
     for the time being in force.

          "Voting Stock" means all shares and other securities issued by the
     Company having the ordinary power to vote in the election of directors of
     the Company, other than securities having such power only upon the
     occurrence of a default or any other extraordinary contingency.

          "written" and "in writing" includes all modes of representing or
     reproducing words in visible form.

          For the purposes of this Article I, the members of the KPC Affiliated
     Group shall have the meaning set forth in Article XXXIII.

          Words importing the singular number shall also include the plural
     number and vice-versa.

          Words importing the masculine gender shall also include the feminine
     gender.

          Words importing persons shall also include corporations, partnerships,
     trusts and other entities.

                         II.  CERTIFICATES FOR SHARES

     2.1 Certificates representing shares of the Company shall be in such form
and may bear such legends (reflecting or referring to the terms of issue of the
shares thereby represented, or any of these Articles or other relevant matters)
as shall be determined by the Board of Directors. Such certificates shall be
under seal (which may be a facsimile), signed manually or by facsimile by the
Chairman of the Board, the Chief Executive Officer, the President or any Vice
President of the Company, countersigned manually or by facsimile by the
Secretary or another authorized person, registered in the Register and signed
manually by or on behalf of the transfer agent. In case any officer or officers
who have signed, or whose facsimile signature or signatures have been used on,
any such certificate or certificates shall cease to be such officer or officers
of the Company, whether because of death, resignation or otherwise, before such
certificate or certificates have been delivered by the Company, such certificate
or certificates may nevertheless be validly issued and delivered as though the
person or persons who signed such certificate or certificates or whose facsimile
signature or signatures have been used thereon had not ceased to be such officer
or officers of the Company. Certificates for shares shall be in such form as
shall be in conformity to law or as may be prescribed from time to time by the
Board of Directors. All certificates for shares shall be consecutively numbered
or otherwise identified and shall specify the shares to which they relate. The
name and address of the person to whom the shares represented thereby are
issued, with the number of shares and date of issue and whether fully paid, or
deemed fully paid or partly paid, shall be entered in the Register of the
Company. All certificates surrendered to the Company for transfer shall be
cancelled and no new certificate shall be issued until the former certificate
for a like number of shares has been surrendered and cancelled.

                                       3
<PAGE>

     2.2 The Company shall maintain, or cause to be maintained, a register of
its Shareholders and every person whose name is entered as a Shareholder in the
Register shall be entitled without payment to receive within two months after
allotment or lodgment of transfer (or within such other period as the conditions
of issue shall provide) one certificate for all his shares or several
certificates each for one or more of his shares provided that in respect of a
share or shares held jointly by several persons the Company shall not be bound
to issue more than one certificate and delivery of a certificate for a share to
one of the several joint holders shall be sufficient delivery to all such
holders.

     2.3 Notwithstanding Section 2.1, if a share certificate be defaced, lost or
destroyed, it may be renewed on such terms (if any) as to evidence and indemnity
and the payment of the expenses incurred by the Company in investigating
evidence, as any Director or officer of the Company may prescribe.

                             III.  ISSUE OF SHARES

     3.1 The authorized share capital of the Company shall be as set forth in
the Memorandum represented by (i) Ordinary Shares of the Company (the "Ordinary
Shares") , with the rights as set forth in Article IV, and (ii) such other
classes or series of shares with the respective rights to be determined upon the
creation thereof by action of the Board of Directors from time to time in
accordance with Article V.

                             IV.  ORDINARY SHARES

     4.1 Subject to the provisions of the Articles, all unissued shares for the
time being in the capital of the Company shall be at the disposal of the Board
of Directors, and the Board of Directors may (subject as aforesaid) allot, issue
or grant any option, right, warrant or other security exercisable for,
convertible into, or exchangeable for, or otherwise dispose of, the shares to
such persons, on such terms and conditions and at such times as they deem
proper.

     4.2 Dividends, whether to be paid in cash or to be satisfied by
distributions of property other than cash, will be made or paid (as the case may
be) on an equal per share basis (in all material respects) to all holders of
Ordinary Shares as of the record date fixed for such dividend.

     4.3 No holder of Ordinary Shares or any other shares of the Company (unless
otherwise expressly agreed to by the Company) shall, by reason of such holding,
have any preemptive or preferential right to subscribe to or purchase any shares
of any class or series of any shares of the Company, now or hereafter to be
authorized, or any notes, debentures, bonds or other securities, whether or not
the issuance of any such shares, notes, debentures, bonds or other securities
would adversely affect the dividend, voting or any other rights of such holder.

     4.4 Upon approval of the Board of Directors, such number of Ordinary
Shares, or other shares or securities of the Company, as may be required for
such purpose shall be reserved for issuance in connection with any option,
right, warrant or other security of the Company or any other person that is
exercisable for, convertible into, exchangeable for or otherwise issuable in
respect of such Ordinary Shares or other shares or securities of the Company.
Without limiting the generality of Section 4.1 or the foregoing, the Board of

                                       4
<PAGE>

Directors is expressly authorized and empowered to approve and enter into a
rights agreement between the Company and a rights agent pursuant to which rights
to purchase shares are granted to the holders of the Ordinary Shares on such
terms and for such purposes, including the influencing of takeovers, as the
Board of Directors shall in its absolute discretion determine.

     4.5 Unless otherwise specified by the Board of Directors, any shares which
have been redeemed or repurchased by the Company shall have the status of
authorized but unissued shares and may be subsequently issued in accordance with
the Memorandum and the Articles.

     4.6 The Board of Directors shall have the fullest powers permitted by law
to pay all or any redemption or repurchase monies in respect of any shares out
of the profits and reserves of the Company, the Company's share capital and
share premium account.

                     V.  OTHER CLASSES OR SERIES OF SHARES

     5.1 Subject to Article VI, the Board of Directors is authorized, subject to
any limitations prescribed by law, to provide from time to time for the issuance
of other classes or series of shares, and in accordance with applicable
procedures of the Statute, to establish the characteristics of each class or
series including, without limitation, the following:

          (a) the number of shares of that class or series, which may
     subsequently be increased or decreased (but not below the number of shares
     of that class or series then outstanding) by resolution of the Board of
     Directors, and the distinctive designation thereof;

          (b) the voting powers, full or limited, if any, of the shares of that
     class or series, including without limitation, the authority to confer
     multiple votes per share, voting rights as to specified matters or issues
     such as mergers, consolidations or sales of assets, or voting rights to be
     exercised either together with holders of Ordinary Shares as a single
     class, or independently as a separate class;

          (c) the rights in respect of dividends, if any, on the shares of that
     class or series; the rate at which such dividends shall be payable and/or
     cumulate, which rate may be determined on factors external to the Company
     and which dividends may be payable in cash, shares of capital or other
     securities or property of the Company; whether dividends shall be
     cumulative and, if so, from which date or dates; the relative rights or
     priority, if any, of payment of dividends on shares of that class or
     series; and any limitation, restrictions or conditions on the payment of
     dividends;

          (d) the relative amounts, and the relative rights or priority, if any,
     of payment in respect of shares of that class or series, which the holder
     of the shares of that class or series shall be entitled to receive upon any
     liquidation, dissolution or winding up of the Company;

          (e) any redemption, repurchase, retirement and sinking fund rights,
     preferences and limitations of that class or series, the amount payable on
     shares of that class or series in the event of such redemption, repurchase
     or retirement, the terms and

                                       5
<PAGE>

     conditions of any sinking fund, the manner of creating such fund or funds
     and whether any of the foregoing shall be cumulative or non-cumulative;

          (f) the terms, if any, upon which the shares of that class or series
     shall be convertible into or exchangeable for shares of any other classes,
     or series, or other securities, whether or not issued by the Company;

          (g) the restrictions, limitations and conditions, if any, upon
     issuance of indebtedness of the Company so long as any shares of that class
     or series are outstanding; and

          (h) any other preferences and relative, participating, optional or
     other rights and limitations.

                      VI.  VARIATION OF RIGHTS OF SHARES

     6.1 (a) If at any time the share capital of the Company is divided into
different classes or series of shares, the rights attached to any class or
series (unless otherwise provided by the terms of issue of the shares of that
class) may, whether or not the Company is being wound-up, be varied with the
consent in writing of the holders of all of the issued shares of that class or
series, or with the sanction of a Special Resolution passed at a general meeting
with the holders of the shares of that class or series voting separately as a
class.

     (b) The provisions of the Articles relating to separate general meetings
shall apply to every such general meeting of the holders of one class or series
of shares.

     (c) Class or series meetings and class or series votes may only be called
at the direction of the Board of Directors or upon the written request of
Shareholders holding an aggregate of at least 25% of the outstanding shares of
such class or series of shares of the Company (unless otherwise expressly
provided by the terms of issue of the shares of such class or series).

     6.2 The rights conferred upon the holders of the shares of any class or
series issued with preferred or other rights shall not, unless otherwise
expressly provided by the terms of issue of the shares of that class or series,
be deemed to be varied by the creation or issue of further shares ranking pari
passu therewith. The rights of the holders of Ordinary Shares shall not be
deemed to be varied by the granting of rights to purchase Ordinary Shares to the
holders of Ordinary Shares under any rights agreement that may be entered into
between the Company and a rights agent in accordance with the provisions of
these Articles or the issue of Ordinary Shares pursuant to those rights. The
entry into any such rights agreement, the granting of such rights and the issue
of Ordinary Shares pursuant to such rights may be effected by the Directors
without any consent or vote of the holders of the Ordinary Shares.

                      VII.  REPURCHASE OF ORDINARY SHARES

     7.1 Subject to the provisions of the Statute and the Memorandum, the
Company may at any time and from time to time purchase the Company's issued
Ordinary Shares by (i) agreement between the Company and any one or more of its
Shareholders holding

                                       6
<PAGE>

the Ordinary Shares to be purchased, (ii) tender offer to all Shareholders or
(iii) purchase on any exchange or market on which the Ordinary Shares are
traded, provided always that, in each case, unless approved by Ordinary
Resolution, the purchase price is no greater than the then existing market price
as determined by the Directors by reference to the closing prices on the
principal exchange or market for the Ordinary Shares for a period of not less
than one and not more than ten consecutive trading days ending not more than
three trading days before such determination. In the event of a purchase by the
Company of its own Ordinary Shares on any exchange or market on which the
Ordinary Shares are traded, the manner of the purchase shall be in accordance
with the rules and regulations of the relevant exchange or market.

                           VIII.  TRANSFER OF SHARES

     8.1 Upon surrender to the Company or the transfer agent of the Company of a
certificate for shares duly endorsed or accompanied by proper evidence of
transfer, and otherwise meeting all legal requirements for transfer, it shall be
the duty of the Company to cause the issue of a new certificate to the person
entitled thereto, cancel the old certificate and record the transaction in the
Register. Transfers of shares shall be made on the books of the Company only by
the registered holder thereof, or by such holder's attorney thereunto authorized
by power of attorney filed with the Secretary or the transfer agent. The Company
shall be entitled to recognize the exclusive right of a person registered in the
Register as the owner of shares to receive dividends, and to vote as such owner.

     8.2 The holder of any redeemable shares for which the Company has issued a
notice of redemption may not transfer such shares, whether or not the Company
has yet paid the redemption price to the Shareholder unless otherwise provided
(i) by the terms of such shares or (ii) by the Board of Directors in connection
with the redemption of such shares.

          IX.  NON-RECOGNITION OF TRUSTS OR OTHER EQUITABLE OWNERSHIP

     9.1 The Company shall not be required to recognize any person as holding
any share upon any trust (except the trustee(s) thereof) and the Company shall
not be bound by or be compelled in any way to recognize (even when having notice
thereof) any equitable, contingent, future, or partial interest in any share, or
any interest in any fractional part of a share, or (except only as is otherwise
provided by the Articles or the Statute) any other rights in respect of any
share except an absolute right to the entirety thereof in the registered holder.

                          X.  TRANSMISSION OF SHARES

     10.1 In case of the death of a Shareholder who is a natural person, the
survivor or survivors where the deceased was a joint holder, and the legal
personal representatives of the deceased where he was a sole holder, shall be
the only persons recognized by the Company as having any title to his interest
in the shares, but nothing herein contained shall release the estate of any such
deceased holder from any liability in respect of any shares which had been held
by him solely or jointly with other persons.

     10.2 (a) Any person becoming entitled to a share by reason of the death or
bankruptcy of a Shareholder (or in any way other than by transfer) may, upon
such evidence being produced as may from time to time be required by the Board
of Directors and subject as

                                       7
<PAGE>

hereinafter provided, elect either to be registered himself as holder of the
share or to make such transfer of the share to such other person nominated by
him as the deceased or bankrupt person could have made and to have such person
registered as the transferee thereof, but the Board of Directors shall, in
either case, have the same right to decline or suspend registration as they
would have had in the case of a transfer of the share by that Shareholder before
his death or bankruptcy as the case may be.

     (b) If the person so becoming entitled shall elect to be registered himself
as holder he shall deliver or send to the Company a notice in writing signed by
him stating that he so elects.

     10.3 A person becoming entitled to a share by reason of the death or
bankruptcy of the holder (or in any way other than by transfer) shall be
entitled to the same dividends and other advantages to which he would be
entitled if he were the registered holder of the share, except that he shall
not, before being registered as a Shareholder in respect of the share, be
entitled in respect of it to exercise any right conferred by share ownership in
relation to meetings of the Company; provided, however, that the Board of
Directors may at any time give notice requiring any such person to elect either
to be registered himself or to transfer the share and if the notice is not
complied with within ninety days the Board of Directors may thereafter withhold
payment of all dividends, bonuses or other monies payable in respect of the
share until the requirements of the notice have been complied with.

          XI.  AMENDMENT OF MEMORANDUM AND ARTICLES OF ASSOCIATION,
        CHANGE OF LOCATION OR REGISTERED OFFICE & ALTERATION OF CAPITAL

     11.1 (a) Subject to and insofar as permitted by the provisions of the
Statute, the Company may from time to time by Special Resolution alter or amend
the Memorandum and Articles and may by Ordinary Resolution:

          (i) increase the share capital by such sum to be divided into shares
     of such amount or without nominal or par value as the resolution shall
     prescribe;

          (ii) consolidate all or any of its share capital into shares of larger
     amount than its existing shares;

          (iii) by subdivision of its existing shares or any of them divide the
     whole or any part of its share capital into shares of smaller amount than
     is fixed by the Memorandum; and

          (iv) cancel any shares which at the date of the passing of the
     resolution have not been taken or agreed to be taken by any person.

     (b) All new shares created hereunder shall be subject to the same
provisions with reference to transfer, transmission, and otherwise as provided
in the Articles.

     (c) Subject to the provisions of the Statute, the Company may by Special
Resolution reduce its share capital or any capital redemption reserve fund.

                                       8
<PAGE>

     11.2 Subject to the provisions of the Statute, the Company may by Special
Resolution change its name or alter its objects.

     11.3 Subject to the provisions of the Statute, the Company may by
resolution of the Board of Directors change the location of its registered
office.

         XII.  CLOSING REGISTER OF SHAREHOLDERS OR FIXING RECORD DATE

     12.1 For the purpose of determining Shareholders entitled to notice of or
to vote at any meeting of Shareholders or any adjournment thereof, or
Shareholders entitled to receive payment of any dividend, or in order to make
the determination of Shareholders for any other proper purpose, the Board of
Directors of the Company may provide that the Register shall be closed for
transfers for a stated period but not to exceed in any case forty days. If the
Register shall be so closed for the purpose of determining Shareholders entitled
to notice of or to vote at a meeting of Shareholders such register shall be so
closed for at least ten days immediately preceding such meeting and the record
date for such determination shall be the date of the closure of the Register.

     12.2 In lieu of or apart from closing the Register, the Board of Directors
may fix in advance a date as the record date for any such determination of
Shareholders entitled to notice of or to vote at a meeting of the Shareholders,
and for the purpose of determining the Shareholders entitled to receive payment
of any dividend, the Board of Directors may fix a subsequent date no later than
the date of payment as the record date for such dividend.

     12.3 If the Register is not so closed and no record date is fixed for the
determination of Shareholders entitled to notice of or to vote at a meeting of
Shareholders or Shareholders entitled to receive payment of a dividend, the date
on which notice of the meeting is mailed or the date on which the resolution of
the Board of Directors declaring such dividend is adopted, as the case may be,
shall be the record date for such determination of Shareholders. When a
determination for Shareholders entitled to vote at any meeting of Shareholders
has been made as provided in this section, such determination shall apply to any
adjournment thereof.

                            XIII.  GENERAL MEETING

     13.1 (a) The Company shall in each year of its existence hold a general
meeting as its annual general meeting. The annual general meeting shall be held
at such time and place as the Board of Directors shall appoint.

     (b) At each annual general meeting, the Directors to be elected at that
meeting shall be elected for the applicable term or until their respective
successors have been elected and have qualified.

     13.2 (a) Except as otherwise required by law, and subject to the terms of
any class or series of shares issued by the Company having a preference over the
Ordinary Shares as to dividends or upon liquidation or to elect directors in
specified circumstances, extraordinary general meetings of the Shareholders of
the Company may be called only (i) by the Board of

                                       9
<PAGE>

Directors or (ii) upon the written request of Shareholders holding at least 35%
of the outstanding Ordinary Shares generally entitled to vote.

     (b) Any action required or permitted to be taken by the Shareholders of the
Company must be taken at a duly called annual or extraordinary general meeting
of the Shareholders of the Company and may not be taken by consent of the
Shareholders in writing or otherwise.

                       XIV.  NOTICE OF GENERAL MEETINGS

     14.1 Written notice of each meeting of the Shareholders stating the place,
date and time of the meeting shall be given not less than fifteen nor more than
sixty days before the date of the meeting, to each Shareholder entitled to vote
at such meeting. The notice of any extraordinary meeting of Shareholders shall
state the purpose or purposes for which the meeting is called. Business
transacted at any extraordinary meeting shall be limited to the purposes stated
in the notice.

     14.2 The accidental omission to give notice of a general meeting to, or the
non-receipt of notice of a general meeting by, any person entitled to receive
notice shall not invalidate the proceedings of that meeting.

                     XV.  PROCEEDINGS AT GENERAL MEETINGS

     15.1 No business shall be transacted at any general meeting unless a quorum
of Shareholders is present at the time when the meeting proceeds to business.
Subject to the proviso below, one or more Shareholders present in person or by
proxy holding at least a majority of the issued and outstanding shares of the
Company entitled to vote at such meeting shall constitute a quorum; provided
that the quorum for any meeting at which a Special Resolution is to be
considered and voted upon pursuant to Sections 18.8(c), 19.1(c), 33.8, 34.7 or
35.5 shall be one or more Shareholders present in person or by proxy holding at
least a majority of the issued and outstanding shares of the Company entitled to
vote at such meeting and, for so long as members of the KPC Affiliated Group
own, in the aggregate, at least four percent (4%), (i) of the voting power of
Outstanding Voting Stock, or (ii) of all the outstanding Ordinary SHARES, one of
such Shareholders present is SFIC Holdings (a "Special Quorum"). The
Shareholders present at a duly constituted general meeting may continue to
transact business until adjournment, despite the withdrawal of enough
Shareholders to leave less than a quorum, or, as the case may be, Special
Quorum. If a meeting is adjourned for lack of quorum, or, as the case may be,
Special Quorum, it will stand adjourned to such other day at such other time and
place as the Board of Directors may determine and at which a quorum or, as the
case may be, Special Quorum is present in person or by proxy.

     15.2 (a) Subject to the terms of any class or series of shares issued by
the Company, if a Shareholder desires to nominate persons for election as
Directors at any general meeting duly called for the election of Directors,
written notice of such Shareholder's intent to make such a nomination must be
given and received by the Secretary of the Company at the principal executive
offices of the Company not later than (i) with respect to an annual general

                                       10
<PAGE>

meeting of Shareholders, ninety days in advance of the anniversary date of the
immediately preceding annual general meeting and (ii) with respect to an
extraordinary general meeting, the close of business on the tenth day following
the date on which notice of such meeting is first sent or given to Shareholders.
Each such notice shall set forth (i) the name and address, as it appears in the
Register of the Company, of the Shareholder who intends to make the nomination
and of the person or persons to be nominated; (ii) a representation that the
Shareholder is a holder of record of shares of the Company entitled to vote at
such meeting and intends to appear in person or by proxy at the meeting to
nominate the person or persons specified in the notice; (iii) the class and
number of shares of the Company which are beneficially owned by the Shareholder;
(iv) a description of all arrangements or understandings between the Shareholder
and each nominee and any other person or persons (naming such person or persons)
pursuant to which the nomination or nominations are to be made by the
Shareholder; (v) such other information regarding each nominee proposed by such
Shareholder as would be required to be included in a proxy statement filed
pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended
from time to time, of the United States of America, whether or not the Company
is then subject to such Regulation; and (vi) the consent of each nominee to
serve as a Director of the Company, if so elected. The Chairman of the annual
general meeting or extraordinary general meeting shall, if the facts warrant,
refuse to acknowledge a nomination not made in compliance with the foregoing
procedure, and any such nomination not properly brought before the meeting shall
not be considered.

     (b) Subject to the terms of any class or series of shares issued by the
Company, if a Shareholder desires to submit a proposal for consideration by the
Shareholders at any general meeting, written notice of such Shareholder's intent
to submit such a proposal must be given and received by the Secretary of the
Company not later than (i) with respect to an annual general meeting of
Shareholders, ninety days in advance of the anniversary date of the immediately
preceding annual general meeting; and (ii) with respect to an extraordinary
general meeting, the close of business on the tenth day following the date on
which notice of such meeting is sent or given to Shareholders. Each such notice
shall set forth (i) the name and address, as it appears in the Register, of the
Shareholder who intends to submit the proposal; (ii) a representation that the
Shareholder is a holder of record of shares of the Company entitled to vote at
such meeting and intends to appear in person or by proxy at the meeting to
submit the proposal specified in the notice; (iii) the class and number of
shares of the Company which are beneficially owned by the Shareholder; and (iv)
such other information regarding each proposal submitted by such Shareholder as
would be required to be included in a proxy statement filed pursuant to
Regulation 14A under the Securities Exchange Act of 1934, as amended from time
to time, of the United States of America, whether or not the company is then
subject to such Regulation. The Chairman of the annual general meeting or
extraordinary general meeting shall, if the facts warrant, refuse to acknowledge
a proposal not made in compliance with the foregoing procedure, and any such
proposal not properly brought before the meeting shall not be considered.

     15.3 The Chairman of the Board, or any Director designated by the Board of
Directors, shall preside as Chairman at every general meeting of the Company, or
if there is no such Chairman, or if he or such designee shall not be present
within one hour after the time appointed for the holding of the meeting, or is
unwilling to act, the Directors present shall elect one of their number to be
Chairman of the meeting.

                                       11
<PAGE>

     15.4 If at any general meeting no Director is willing to act as Chairman or
if no Director is present within one hour after the time appointed for holding
the meeting, the Shareholders present shall choose one of their number to be
Chairman of the meeting.

     15.5 The Chairman may, with the consent of any general meeting duly
constituted hereunder, adjourn the meeting from time to time and from place to
place, but no business shall be transacted at any adjourned meeting other than
the business left unfinished at the meeting from which the adjournment took
place. When a general meeting is adjourned for thirty days or more, notice of
the adjourned meeting shall be given as in the case of an original meeting; save
as aforesaid it shall not be necessary to give any notice of an adjournment or
of the business to be transacted at an adjourned general meeting.

     15.6 At any general meeting a resolution put to the vote at the meeting
shall be decided on a poll taken in such manner as the Chairman directs.

     15.7 Subject to the terms of any class or series of shares issued by the
Company, every Shareholder of record present in person or by proxy shall have
one vote for each issued Ordinary Share registered in his name in the Register.
Cumulative voting is expressly prohibited. Elections of Directors need not be by
ballot.

     15.8 In the case of joint holders of record, the vote of each joint holder,
whether in person or by proxy, shall be required in order for such joint
holders` vote to be counted.

     15.9 A Shareholder of unsound mind, or in respect of whom an order has been
made by any court, having jurisdiction in lunacy, may vote, whether on a show of
hands or on a poll, by his committee, receiver, curator bonis, or other person
in the nature of a committee, receiver or curator bonis appointed by that court,
and any such committee, receiver, curator bonis or other persons may vote by
proxy.

     15.10 No Shareholder shall be entitled to vote at any general meeting
unless he is registered as a Shareholder of the Company on the record date for
such meeting or holds a valid proxy of such a Shareholder and unless all sums
presently payable in respect of the shares to be voted have been paid.

     15.11  Votes may be given either personally or by proxy.

                                 XVI.  PROXIES

     16.1 The instrument appointing a proxy shall be in writing and shall be
executed under the hand of the appointer or of his attorney duly authorized in
writing, or, if the appointer is a corporation under the hand of an officer or
attorney duly authorized in that behalf. A proxy need not be a Shareholder of
the Company.

     16.2 The instrument appointing a proxy shall be deposited at the Registered
Office or at such other place as is specified for that purpose in the notice
convening the meeting no later than the time for holding the meeting, or
adjourned meeting provided that the Chairman of the meeting may at his
discretion direct that an instrument of proxy shall be deemed to have been duly
deposited upon receipt of facsimile transmission of the signed proxy or upon
receipt of

                                       12
<PAGE>

telex or cable confirmation from the appointer that the instrument of proxy duly
signed is in the course of transmission to the Company.

     16.3 The instrument appointing a proxy may be in any usual or common form
and may be expressed to be for a particular meeting or any adjournment thereof
or generally until revoked.

     16.4 A vote given in accordance with the term of an instrument of proxy
shall be valid notwithstanding the previous death or insanity of the principal
or revocation of the proxy or of the authority under which the proxy was
executed, or the transfer of the share in respect of which the proxy is given
provided that no intimation in writing of such death, insanity, revocation or
transfer as aforesaid shall have been received by the Company at the office
before the commencement of the general, meeting, or adjourned meeting at which
it is sought to use the proxy.

     16.5 Any corporation which is a Shareholder of record of the Company may in
accordance with its articles of association or other governing documents or in
the absence of such provision by resolution of its board of directors or other
governing body authorize one or more persons as it thinks fit to act as its
representative or representatives at any meeting of the Company or of any class
or series of Shareholders of the Company, and the person or persons so
authorized shall be entitled to exercise the same powers on behalf of the
corporation which he or they represent as the corporation could exercise if it
were an individual Shareholder of record of the Company and may cast votes or
abstain on any motion in any manner as he or they may be directed.

                              XVII.    DIRECTORS

     17.1 (a) The Board of Directors shall consist of not less than six nor more
than fifteen persons. Subject to Section 17.1(c), the Board of Directors shall
have the exclusive power and right to set the exact number of Directors within
that range from time to time by resolution adopted by the vote of a majority of
the whole Board of Directors. Until the Board of Directors adopts such a
resolution, the exact number of Directors shall be fourteen.

     (b) Upon the date that these Articles are adopted, the Directors shall by
resolution of the Board of Directors be divided into three classes of equal
size, designated as Class I, Class II and Class III, each class to be comprised
of at least three Directors; provided, however, if the total number of Directors
is 10, 11, 13 or 14, one Class may have one fewer or one more Director than the
other two Classes. The Board of Directors shall make the subsequent appointments
of individual Directors to particular Classes. Upon the date that these Articles
are adopted, the Directors then appointed to Class I will hold office for a term
expiring at the 2004 annual general meeting of Shareholders; the Directors then
appointed to Class II will hold office for a term expiring at the 2002 annual
general meeting of Shareholders; and the Directors then appointed to Class III
will hold office for a term expiring at the 2003 annual general meeting of
Shareholders. At each annual general meeting of Shareholders, the successors of
the class of Directors whose terms expire at that meeting shall be of the same
class as the Directors they succeed and shall be elected for three-year terms.

                                       13
<PAGE>

     (c) No resolution of the Board of Directors may be adopted if its effect
would be to remove from office, or shorten the term of, any incumbent Director.

     (d) A Director shall hold office until the annual general meeting for the
year in which his term expires and until his successor shall be elected and
shall qualify, subject, however, to prior death, resignation, retirement or
removal from office. Any newly created directorship resulting from an increase
in the number of Directors and any other vacancy on the Board of Directors,
however caused, may be filled by a majority vote of the Directors then in
office, although less than a quorum, or by a sole remaining Director. Any
Director elected by the Board of Directors to fill a vacancy shall hold office
until the annual general meeting of Shareholders for the year in which the term
of the Director vacating office expires and until his successor shall have been
elected and qualified. Any newly created directorship resulting from an increase
in the number of Directors may be created in any class of Directors that the
Board of Directors may determine, and any Director elected to fill the newly
created vacancy shall hold office until the term of office of such class
expires.

     (e) One or more or all of the Directors of the Company may be removed only
for cause by the affirmative vote of the holders of at least a majority of the
outstanding shares generally entitled to vote, voting together as a single
class, at a meeting of Shareholders for which proper notice of the proposed
removal has been given.

     (f) If at any time the number of Directors is less than six, the Board of
Directors may act to fill any vacancies on the Board of Directors.

     17.2 The Board of Directors shall have the authority to fix the
compensation of Directors, which may include their expenses, if any, of
attendance at each meeting of the Board of Directors or of a committee.

     17.3 A Director may hold any other office or place of profit under the
Company in conjunction with his office of Director for such period and on such
terms as to remuneration and otherwise as the Board of Directors may determine.

     17.4 A Director may act by himself or his firm in a professional capacity
for the Company and he or his firm shall be entitled to remuneration for
professional services as if he were not a Director.

     17.5 (a) No share ownership qualification for Directors shall be required.

     (b) No person shall serve as a Director of the Company who at the time of
his or her election has reached his or her 70th birthday.

     17.6 A Director of the Company may be or become a Director or other officer
of or otherwise interested in any company promoted by the Company or in which
the Company may be interested as shareholder or otherwise and no such Director
shall be accountable to the Company for any remuneration or other benefits
received by him as a director or officer of, or from his interest in, such other
company.

                                       14
<PAGE>

     17.7 No person shall be disqualified from the office of Director or
prevented by such office from contracting with the Company, either as vendor,
purchaser or otherwise, nor shall any such contract or any contract or
transaction entered into by or on behalf of the Company in which any Director
shall be in any way interested or be liable to be avoided, nor shall any
Director so contracting or being so interested be liable to account to the
Company for any profit realized by any such contract or transaction by reason of
such Director holding office or of the fiduciary relation thereby established. A
Director shall be at liberty to vote in respect of any contract or transaction
in which he is so interested as aforesaid; provided, however, that the nature of
the interest of any Director in any such contract or transaction shall be
disclosed by him at or prior to its consideration and any vote thereon.

     17.8 A general notice that a Director is an officer, director or
shareholder of any specified firm or company and is to be regarded as interested
in any transaction with such firm or company shall be sufficient disclosure
under Section 17.7 and after such general notice it shall not be necessary to
give special notice relating to any particular transaction.

                  XVIII.      POWERS AND DUTIES OF DIRECTORS

     18.1 The business and affairs of the Company shall be managed by the Board
of Directors who may exercise all such powers of the Company and do all such
lawful acts and things as are not from time to time by the Statute or by the
Articles required to be exercised or done by the Company in general meeting.

     18.2 The Board of Directors may from time to time and at any time by powers
of attorney appoint any company, firm, person or body of persons, whether
nominated directly or indirectly by the Board of Directors, to be the attorney
or attorneys of the Company for such purpose and with such powers, authorities
and discretions (not exceeding those vested in or exercisable by the Board of
Directors under these Articles) and for such period and subject to such
conditions as it may think fit, and any such powers of attorney may contain such
provisions for the protection and convenience of persons dealing with any such
attorneys as the Board of Directors may deem fit and may also authorize any such
attorney to delegate all or any of powers, authorities and discretions vested in
him.

     18.3 All cheques, promissory notes, drafts, bills of exchange and other
negotiable instruments and all receipts for monies paid to the Company shall be
signed, drawn, accepted, endorsed or otherwise executed as the case may be by
such officer or officers or such other person or persons as the Board of
Directors shall from time to time designate.

     18.4 The Board of Directors shall cause minutes to be made for the purpose
of recording the proceedings at all meetings of the Shareholders and the
Directors and of Committees of the Board of Directors.

     18.5 The Board of Directors on behalf of the Company may direct the payment
of a gratuity or pension or allowance on retirement to any Director who has held
any other salaried office or place of profit with the Company or to his widow or
dependents and may make contributions to any fund and pay premiums for the
purchase or provision of any such gratuity, pension or allowance.

                                       15
<PAGE>

     18.6 The Board of Directors may exercise all the powers of the Company to
borrow money and to mortgage or charge its undertaking, property and uncalled
capital or any part thereof and to issue debentures, debenture stock and other
securities whether outright or as security for any debt, liability or obligation
of the Company or of any third party.

     18.7 Board of Directors may authorize any officer, officers, agent or
agents to enter into any contract or agreement of any nature whatsoever,
including, without limitation, any contract, deed, bond, mortgage, guaranty,
deed of trust, security agreement, pledge agreement, act of pledge, collateral
mortgage, collateral chattel mortgage or any other document or instrument of any
nature whatsoever, and to execute and deliver any such contract, agreement,
document or other instrument of any nature whatsoever for and in the name of and
on behalf of the Company, and such authority may be general or confined to
specific instances.

     18.8 (a) Notwithstanding anything in the Articles to the contrary, during
the Specified Period the Board of Directors shall cause the Company, and shall
use its best endeavors to cause the subsidiaries of the Company, not to permit
the following to occur without obtaining the prior consent, as provided in
Section 18.8(b), of SFIC Holdings (Cayman), Inc. ("SFIC Holdings"): (i) the
reincorporation or organization of any existing subsidiary of the Company or the
incorporation or organization of any new subsidiary of the Company in any
jurisdiction (other than, in the case of existing subsidiaries, in the
jurisdiction in which it is then incorporated or under which laws it is then
organized), in a manner materially adversely affecting the rights or interest of
any member of the KPC Affiliated Group, or (ii) the reincorporation or
organization of the Company in a jurisdiction other than in the jurisdiction in
which it is then incorporated or under which laws it is then organized.

     (b) As soon as practicable following a determination by the Board of
Directors to undertake any of the actions specified in Section 18.8(a), the
Board of Directors shall give SFIC Holdings written notice of the proposed
action, which notice shall set forth in reasonable detail the terms of the
proposed action, including without limitation, as applicable, the parties to the
action, the intended timing of the action, the amount of consideration and
assets involved and such other terms as may be relevant to SFIC Holdings'
decision whether to consent to the proposed action. Within thirty calendar days
after SFIC Holdings receives such notice, SFIC Holdings shall give the Company
written notice of its consent or withholding of consent to the action specified
in the notice. In the event that SFIC Holdings fails to deliver to the Company
during such thirty-day period a written notice indicating its withholding of
consent to the proposed action, SFIC Holdings shall be deemed to have consented
to such action. For purposes of this Section 18.8(b), (i) notices shall be given
by personal delivery, confirmed facsimile or overnight courier and (ii) any
notice by SFIC Holdings either giving or withholding consent to a proposed
action may be signed by any director or authorized officer of SFIC Holdings (and
need not be preceded by a resolution of the board of directors of SFIC
Holdings). The Company shall not take until after the date defined in Section
18.8(a) the action specified in Section 18.8(a) unless the Company shall have
obtained SFIC Holdings' consent or SFIC Holdings shall be deemed to have
consented to such action pursuant to this Section 18.8(b).

     (c) The provisions of Section 18.8, including, without limitation, the
provisions of this Section 18.8(c), may only be altered or amended by a Special
Resolution passed at a meeting of the Company at which a Special Quorum of
Shareholders is present.

                                       16
<PAGE>

                               XIX.  COMMITTEES

     19.1 (a) Subject to Sections 19.1(b) and 19.2, the Board of Directors may
designate one or more committees of the Board, each such committee to consist of
four or more Directors during the Specified Period and thereafter not less than
three Directors. Except as limited by the Statute, the Memorandum, the Articles
or the resolution establishing such committee, each committee shall have and may
exercise all of the authority of the Board of Directors as specified in the
Articles with respect to each such committee or as the Board of Directors may
determine and specify in the respective resolutions appointing each such
committee. Subject to Sections 19.1(b) and 19.2, a majority of all of the
members of any such committee may elect the Chairman of such committee and may
fix the time and place of its meetings, unless the Articles or the Board of
Directors shall otherwise provide, and meetings of any committee may be held
upon such notice, or without notice, as shall from time to time be determined by
the members of any such committee. At all meetings of any committee, any three
of its members shall constitute a quorum for the transaction of business, and
the act of a majority of the members present shall be the act of any such
committee, unless otherwise specifically provided by the Statute, the
Memorandum, the Articles or the resolution establishing such committee. The
committees shall keep regular minutes of their proceedings and report the same
to the Board of Directors when required. The Board of Directors shall have power
at any time to change the number, subject as aforesaid, and members of any such
committee, to fill vacancies and to modify the powers of (except that powers of
committees established by the Articles shall not be decreased) or discharge any
such committee. Such committee or committees shall have such name or names as
may be determined from time to time by resolution adopted by the Board of
Directors.

     (b) As long as SFIC Holdings has the right to designate a Director pursuant
to the first sentence of Section 35.1(a), SFIC Holdings shall have the right, by
notice in writing to the Board of Directors, to appoint one designee (being a
KPC Designee on the Board of Directors) to each committee, including the Audit,
Nominating and Governance, Compensation and Executive Committees, of the Board
of Directors; provided, however, that if any applicable law or regulation of the
New York Stock Exchange shall prohibit the Board from appointing a designee who
is not an Independent Director to serve on any committee, at any time at which
there is no such designee of SFIC Holdings who is an Independent Director, SFIC
Holdings shall not be permitted to appoint any designee of SFIC Holdings to
serve on such committee.

     (c) The provisions of Section 19.1(b) and this Section 19.1(c) may only be
altered or amended by a Special Resolution passed at a meeting of the Company at
which a Special Quorum of Shareholders is present.

     19.2 Until further action of the Board of Directors creating additional
committees, the following shall constitute the committees of the Board of
Directors:

     (a)  AUDIT COMMITTEE.

          (i) The Board of Directors shall appoint at least four Directors
     during the Specified Period and thereafter not less than three Directors,
     each of whom shall not be an officer or employee of the Company, to act as
     its Audit Committee.

                                       17
<PAGE>

          (ii) The Audit Committee shall recommend to the Board of Directors
     periodically a firm of certified public accountants to serve as auditors
     for the Company, which accountants shall be subject to appointment by the
     Board of Directors and ratification thereof by Shareholders entitled to
     vote thereon. The Audit Committee shall determine the manner, if at all, in
     which the accounts relating to the Company's affairs shall be audited and
     shall meet with the Company's auditors to discuss the scope of their
     examination, with particular emphasis on areas where either the Audit
     Committee or the auditors believe special attention should be directed.
     After the audit, the Audit Committee shall review the financial statements
     and the auditors report thereon to determine whether they had received all
     information and explanations requested. The Audit Committee shall also
     invite the auditors' recommendations regarding internal controls and such
     other matters as it deems appropriate and shall see that the
     recommendations for changes which the Audit Committee feels are necessary
     have been implemented. In addition, the Audit Committee is authorized to
     have the auditors perform such supplemental review or audits as it deems
     necessary or appropriate. The Audit Committee shall meet with the auditors
     at least once a year, as soon after the completion of the audit of the
     Company's books as practicable.

          (iii) The Audit Committee shall be responsible for reviewing
     relationships between the Company and other parties, including employment
     and consulting relationships, for conflicts of interest. The Audit
     Committee shall review Company policy and practices to ensure that the
     Company acts in an ethical manner and to ensure compliance with all
     applicable laws regarding business conduct.

     (b)  COMPENSATION COMMITTEE.

          (i) The Board of Directors shall appoint at least four Directors
     during the Specified Period and thereafter not less than three Directors,
     each of whom shall not be an officer or employee of the Company, to act as
     its Compensation Committee.

          (ii) The Compensation Committee shall from time to time fix the
     salaries of the executive officers of the Company and grant such bonuses
     and awards pursuant to the Company's compensation plans, or otherwise, to
     Directors and officers and employees of the Company as it deems
     appropriate. The Compensation Committee shall establish, or recommend the
     establishment of, compensation plans for Directors and officers and
     employees of the Company as it deems appropriate. The Compensation
     Committee shall also oversee the Company's employee benefit programs. No
     member of the Compensation Committee shall in any way take part in the
     determination of any compensation or awards paid or granted to him.

     (c)  EXECUTIVE COMMITTEE

          (i) The Board of Directors shall appoint at least four Directors
     during the Specified Period and thereafter not less than three Directors to
     act as its Executive Committee.

                                       18
<PAGE>

          (ii) The Executive Committee shall have and may exercise such power
     and authority of the Board of Directors in the management of the business
     and affairs of the Company (including, without limitation, reviewing, and
     making recommendations to the Board of Directors concerning, the general
     financial policies and direction of the Company), as the Board of Directors
     shall specify by a majority vote of the Board of Directors.

     (d)  NOMINATING AND GOVERNANCE COMMITTEE

          (i) The Board of Directors shall appoint at least four Directors
     during the Specified Period and thereafter not less than three Directors,
     each of whom shall not be an officer or employee of the Company, to act as
     its Nominating and Governance Committee.

          (ii) The Nominating and Governance Committee shall from time to time,
     subject to Article XXXV, (w) recommend to the Board of Directors such
     matters pertaining to governance of the Company as it shall from time to
     time consider appropriate, (x) recommend to the Board of Directors, prior
     to the annual general meeting, each director nominee to be voted on at such
     annual general meeting to the Board of Directors, (y) recommend to the
     Board of Directors any candidate to fill any directorships or memberships
     of committees that become vacant, and (z) recommend to the Board of
     Directors the directors to be appointed to each standing committee,
     including the Audit, Compensation, Executive and Nominating and Governance
     Committees.

     19.3 Each member of any such committee shall hold office until such
member's successor is elected and has qualified, unless such member sooner dies,
resigns or is removed.

                         XX.  PROCEEDINGS OF DIRECTORS

     20.1 Except as otherwise provided by the Articles, the Board of Directors
shall meet together for the dispatch of business, convening, adjourning and
otherwise regulating its meetings as it thinks fit. Subject to Section 24.1,
questions arising at any meeting shall be decided by a majority of the Directors
present at a meeting at which there is a quorum.

     20.2 Regularly scheduled meetings of the Board of Directors may be held at
such time and at such place as shall from time to time be determined by the
Board of Directors. Special meetings of the Board of Directors may, or upon the
written request of any two Directors shall, be called by the Chairman of the
Board on at least forty-eight hours' notice to each Director, either personally
or by facsimile, telex or cable. Unless otherwise required by these Articles,
neither the business to be transacted at, nor the purpose of, any special
meeting of the Board of Directors need be specified in the notice or waiver of
notice of such meeting in respect of such Director. Attendance of a Director at
any meeting shall constitute a waiver of notice of such meeting, except when a
Director attends for the express purpose of objecting to the transaction of any
business on the ground that the meeting is not lawfully called or convened.

                                       19
<PAGE>

     20.3 The Chairman of the Board shall preside as Chairman at every meeting
of the Board of Directors. In the event that the Chairman of the Board is unable
to attend a meeting of the Board of Directors, any Director designated by the
Board of Directors shall preside over such meeting.

     20.4 The quorum necessary for the transaction of the business of the Board
of Directors shall be a majority of the Board then in office.

     20.5 All acts done by any meeting of the Board of Directors or of a
committee of the Board of Directors shall, notwithstanding that it afterwards be
discovered that there was some defect in the appointment of any Director, or
that they or any of them were disqualified, be as valid as if every such person
had been duly appointed and qualified to be a Director.

     20.6 Members of the Board of Directors or of any committee thereof may
participate in a meeting of the Board or of such committee by means of
conference telephone or similar communications equipment by means of which all
persons participating in the meeting can hear each other and participation in a
meeting pursuant to this provision shall constitute presence in person at such
meeting.

     20.7 A resolution in writing (in one or more counterparts) signed by all
the Directors for the time being or all the members of a committee of Directors
shall be as valid and effectual as if it had been passed at a meeting of the
Board of Directors or committee as the case may be duly convened and held.

                     XXI.  VACATION OF OFFICE OF DIRECTOR

21.1  The office of a Director shall be vacated:

          (a) If he gives notice in writing to the Company that he resigns the
     office of Director;

          (b)  If he dies;

          (c)  If he is found to be or becomes of unsound mind;

          (d)  If he is removed pursuant to Section 17.1(e); or

          (e)  If he is deemed to resign pursuant to Section 35.2(b).

                     XXII.  CERTAIN BUSINESS COMBINATIONS

     22.1 In addition to any approval by Shareholders and Directors required by
the Statute or any other law of the Cayman Islands, the approval by Ordinary
Resolution, at a meeting called, for such purpose, shall be required in order
for the Board of Directors to approve any of the following matters:

          (i)  to merge, consolidate or amalgamate with another company;

                                       20
<PAGE>

          (ii) to reorganize or reconstruct itself pursuant to a plan sanctioned
     by the Cayman Islands courts; or

          (iii) to sell, lease or exchange all or substantially all of the
     assets of the Company;

provided that the foregoing approval by Shareholders shall not be required for
any such transaction of the Company with any entity which the Company, directly
or indirectly, controls, as defined in Rule 405 under the Securities Act of
1933, as amended from time to time, of the United States of America, unless the
Company is not the surviving entity in such transaction or the Company transfers
all or substantially all of its assets in such transaction and provided further
that the foregoing shall be without prejudice to the requirement for such
statutory majorities and approvals as may be necessary.

                                 XXIII.  SEAL

     23.1 The Company may have a seal, and the seal may be used by causing it or
a facsimile thereof to be impressed or affixed or reproduced or otherwise. Any
Director or officer of the Company will have the authority to affix the seal to
any document requiring it. The Company may have for use in any place or places
outside the Cayman Islands, a duplicate seal or seals each of which shall be a
facsimile of the common seal of the Company and, if the Directors so determine,
with the addition on its face of the name of every place where it is to be used.

                                XXIV.  OFFICERS

     24.1 The officers of the Company shall be appointed by the Board of
Directors and shall include a Chairman of the Board, a Chief Executive Officer,
a President, a Secretary and a Treasurer and may also include one or more Vice
Chairmen, Senior and Executive Vice Presidents and Vice Presidents, Assistant
Secretaries and Assistant Treasurers. The Board of Directors may also choose
such other officers and agents as it shall deem necessary or desirable and such
persons shall hold their offices for such terms and shall exercise such powers
and perform such duties as shall be determined by the Board of Directors from
time to time. Two or more offices may be held by the same person. None of the
officers other than the Chairman of the Board need be a Director of the Company,
and none of the officers need be a Shareholder of the Company. No officer shall
be prevented from receiving compensation as an officer by reason of his also
being a Director. The officers of the Company shall hold office until their
successors are elected or appointed and qualified, or until their earlier death,
resignation, retirement, disqualification or removal. Any officer elected or
appointed by the Board of Directors may be removed at any time with or without
cause by the Board of Directors, provided, however that until the third
anniversary of the date these Articles are adopted, a vote of two-thirds of the
whole Board of Directors shall be required (i) to remove the Chairman of the
Board, the Chief Executive Officer or the President, and (ii) to authorize any
modification, amendment or termination of (A) the employment agreement dated
August 31, 2001 between the Company and Robert E. Rose or (B) the employment
agreement dated August 31, 2001 between the Company and C. Stedman Garber. Any
officer may resign at any time by giving written notice to the Company. Any such
resignation shall take effect at the date of the receipt of such notice or at
such other time specified therein, and unless otherwise specified therein, the
acceptance of

                                       21
<PAGE>

such resignation shall not be necessary to make it effective. Election or
appointment of an officer shall not of itself create contract rights.

     24.2 Any provision of the Statute or the Articles requiring or authorizing
a thing to be done by a Director and an officer shall not be satisfied by its
being done by the one person acting in the dual capacity of Director and
officer.

                         XXV.  DIVIDENDS AND RESERVES

     25.1 Subject to the Statute, the Board of Directors may from time to time
declare dividends on shares of the Company outstanding and authorize payment of
the same out of the profits of the Company (realized or unrealized), share
premium account, or any other account permitted by the Statute, and may from
time to time pay to the Shareholders such interim dividends, as appears to the
Board of Directors to be appropriate.

     25.2 The Board of Directors may declare that any dividend be paid wholly or
partly by the distribution of shares or other securities of the Company and/or
specific assets and in particular of paid up shares, debentures, or debenture
stock of any other company or in any one or more of such ways and where any
difficulty arises in regard to such distribution, the Board of Directors may
settle the same as it deems expedient and in particular may issue fractional
shares and fix the value for distribution of such specific assets or any part
thereof and may determine that cash payments shall be made to any Shareholders
upon the basis of the value so fixed in order to adjust the rights of all
Shareholders and may vest any such specific assets in trustees as may seem
expedient to the Board of Directors.

     25.3 No dividend shall bear interest against the company unless expressly
authorized by the Board of Directors.

                             XXVI.  CAPITALIZATION

     26.1 The Company may upon the recommendation of the Board of Directors
capitalize any sum standing to the credit of any of the Company's reserve
accounts (including share premium account and capital redemption reserve fund)
or any sum standing to the credit of profit and loss account or otherwise
available for distribution and to appropriate such sum to Shareholders in the
proportions in which such sum would have been divisible amongst them had the
same been a distribution of profits by way of dividend and to apply such sum on
their behalf in paying up in full unissued shares (not being redeemable shares)
for allotment and distribution credited as fully paid up to and amongst then in
the proportion aforesaid. In such event the Board of Directors shall do all acts
and things required to give effect to such capitalization, with full power to
the Board of Directors to make such provisions as it thinks fit for the case of
shares becoming distributable in fractions (including provisions whereby the
benefit of fractional entitlements accrue to the Company rather than to the
Shareholders concerned).

                 XXVII.  INDEMNITY AND LIMITATION OF LIABILITY

     27.1 (a) The Company shall indemnify, except in respect of wilful default
or fraud, to the full extent now or hereafter permitted by law, any person
(including his heirs, executors and administrators) who was or is a party or is
threatened to be made a party to any

                                       22
<PAGE>

threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (including, without limitation, an
action by or in the right of the Company), by reason of his acting as, or having
in the past acted as, a Director, officer, employee or agent of, or his acting
in any other capacity for or on behalf of, the Company (including his serving
for, on behalf of or at the request of the Company as a director, officer
employee or agent of another company, partnership, joint venture, trust or other
enterprise, or in a fiduciary or other capacity with respect to any employee
benefit plan maintained by the company) against any expense (including
attorney's fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by such person (or his heirs, executors and administrators)
in respect thereof. The Company shall advance the expenses of defending any such
action, suit or proceeding (including appeals) in accordance with and to the
full extent now or hereafter permitted by law.

     (b) The Board of Directors may, notwithstanding any interest of the
Directors in such action, authorize the Company to purchase and maintain
insurance on behalf of any person described in Section 27.1(a), against any
liability asserted against him and incurred by him in any such capacity, or
arising out of his status as such, whether or not the Company would have the
power to indemnify him against such liability under the provisions of this
Article XXVII.

     (c) The provisions of this Article XXVII shall be applicable to all
actions, claims, suits or proceedings made or commenced after the adoption
hereof, whether arising from acts or omissions to act occurring before or after
its adoption. The provisions of this Article XXVII shall be deemed to be a
contract between the Company and each Director, officer, employee or agent who
serves in such capacity at any time while this Article XXVII and the relevant
provisions of the law, if any, are in effect, and any repeal or modification
thereof shall not affect any rights or obligations then existing with respect to
any state of facts or any action, suit or proceeding then or theretofore
existing, or any action, suit or proceeding thereafter brought or threatened
based in whole or in part on any such state of facts.

If any provision of this Article XXVII shall be found to be invalid or limited
in application by reason of any law or regulation, it shall not affect any other
application of such provision or the validity of the remaining provisions
hereof.  The rights of indemnification and advancement of expenses provided in
this Article XXVII shall neither be exclusive of, nor be deemed in limitation
of, any rights to which any such officer, Director, employee or agent may
otherwise be entitled or permitted by contract, vote of Shareholders or
Directors or otherwise, or as a matter of law, both as to actions in his
official capacity and actions in any other capacity while holding such office,
it being the policy of the Company that indemnification of the specified
individuals, except in respect of wilful default or fraud, shall be made to the
fullest extent permitted by law.

                         XXVIII.    BOOKS AND RECORDS

     28.1 In addition to any rights which may be conferred on Shareholders by
Statute, upon written demand under oath stating the purpose thereof, any
Shareholder may review for any proper purpose, during usual hours for business,
the books and records of the Company, including without limitation, the
Register. A proper purpose shall mean a purpose reasonably related to such
person's interest as a Shareholder.

                                       23
<PAGE>

                               XXIX.  WINDING UP

     29.1 In the event of any liquidation or winding up of the Company, whether
voluntary or involuntary, after there shall have been paid or set aside for
payment to the holders of any outstanding shares ranking senior to the Ordinary
Shares as to distribution on liquidation, distribution or winding up, the full
amounts to which they shall be entitled, the holders of the then outstanding
Ordinary Shares shall be entitled to receive, pro rata according to the number
of Ordinary Shares registered in the names of such Shareholders, any remaining
assets of the Company available for distribution to its Shareholders; provided,
if, at such time, the holder of Ordinary Shares has any outstanding debts,
liabilities or engagements to or with the Company (whether presently payable or
not), either alone or jointly with any other person, whether a Shareholder or
not (including, without limitation, any liability associated with the unpaid
purchase price of such Ordinary Shares), the liquidator appointed may deduct
from the amount payable in respect of such Ordinary Shares the aggregate amount
of such debts, liabilities and engagements and apply such amount to any of such
holder's debts, liabilities or engagements to or with the Company (whether
presently payable or not). The liquidator may distribute, in kind, to the
holders of the Ordinary Shares the remaining assets of the Company or may sell,
transfer or otherwise dispose of all or any part of such remaining assets to any
other person, corporation, trust or entity and receive payment therefor in cash,
shares or obligations of such other person, corporation, trust or entity or any
combination thereof, and may sell all or any part of the consideration so
received, and may distribute the consideration received or any balance or
proceeds thereof to holders of the Ordinary Shares. The liquidator may, with the
like authority, vest the whole or any part of such assets in trustees upon such
trusts for the benefit of the holders of the Ordinary Shares as the liquidator,
with the like authority shall think fit, but so that no Shareholder shall be
compelled to accept any shares or other securities whereon there is any
liability.

                             XXX.  DEREGISTRATION

     30.1 (a) Subject to Section 18.8(a), the Company may by Special Resolution
resolve to be registered by way of continuation in a jurisdiction outside the
Cayman Islands or such other jurisdiction in which it is for the time being
incorporated, registered or existing; and

     (b) In furtherance of a resolution adopted pursuant to (a) above of this
Section 30.1 and subject as aforesaid, the Directors may cause an application to
be made to the Registrar of Companies to deregister the Company in the Cayman
Islands or such other jurisdiction in which it is for the time being
incorporated, registered or existing and may cause all such further steps as
they consider appropriate to be taken to effect the transfer by way of
continuation of the Company.

                              XXXI.   FISCAL YEAR

     31.1 Each Fiscal Year shall commence on such date as may be specified by
the Board of Directors.

                                       24
<PAGE>

                                XXXII.  NOTICES

     32.1 Notices shall be in writing and may be given by the Company to any
Shareholder either personally or by sending it by post, air courier, cable,
facsimile transmission or telex to him or to his address as shown in the
Register, such notice, if mailed, to be forwarded by airmail where practicable.
Any such notice shall be deemed to have been effected on the date the letter
containing the same is posted as aforesaid, or sent by air courier, cable,
facsimile transmission or telex.

     32.2 A notice shall be given by the Company to the joint holders of record
of a share by giving the notice to all joint holders named on the Register in
respect of the share.

     32.3 A notice may be given by the Company to the person or persons which
the Company has been advised are entitled to a share or shares in consequence of
the death or bankruptcy of a Shareholder by sending it through the post as
aforesaid in a prepaid letter addressed to them by name, or by the title of
representatives of the deceased, or trustee of the bankruptcy, or by any like
description at the address supplied for that purpose by the persons claiming to
be so entitled, or at the option of the Company by giving the notice in any
manner in which the same might have been given if the death or bankruptcy had
not occurred.

     32.4 Notice of every general meeting shall be given in any manner
hereinbefore authorized to:

          (a) every holder of voting shares as shown in the Register as of the
     record date for such meeting;

          (b) every person upon whom the ownership of a voting share devolves by
     reason of his being a legal personal representative or a trustee in
     bankruptcy of a holder of voting shares of record where such holder but for
     his death or bankruptcy would be entitled to receive notice of the meeting;
     and

except as otherwise required by law or the Articles, no other person shall be
entitled to receive notice of general meetings.

                       XXXIII.  CORPORATE OPPORTUNITIES

     33.1 In anticipation that the Company and the members of the KPC Affiliated
Group (as defined below) may engage in the same or similar activities or lines
of business and have an interest in the same areas of corporate opportunities,
and in recognition of the benefits to be derived by the Company through its
continued contractual, corporate and business relations with the members of the
KPC Affiliated Group (including service of officers and directors of the members
of the KPC Affiliated Group as Directors of the Company), the provisions of this
Article XXXIII are set forth to regulate and define the conduct of certain
affairs of the Company as they may involve the members of the KPC Affiliated
Group and their officers and directors, and the powers, rights, duties and
liabilities of the Company and its officers, Directors and Shareholders in
connection therewith.

                                       25
<PAGE>

     33.2 The members of the KPC Affiliated Group shall have the right to, and
shall have no duty not to, (i) engage in the same or similar business activities
or lines of business as the Company, (ii) do business with any client or
customer of the Company and (iii) employ or otherwise engage any officer or
employee of the Company, and no member of the KPC Affiliated Group nor any
officer or director thereof (except as provided in Section 33.3) shall be liable
to the Company or its Shareholders by reason of any such activities of the KPC
Affiliated Group or of such person's participation therein. In the event that a
member of the KPC Affiliated Group acquires knowledge of a potential transaction
or matter which may be a corporate opportunity for both such member of the KPC
Affiliated Group and the Company, such member of the KPC Affiliated Group shall
be under no obligation to communicate or present such corporate opportunity to
the Company and shall not be liable to the Company or its Shareholders by reason
of the fact that such member of the KPC Affiliated Group pursues or acquires
such corporate opportunity for itself, directs such corporate opportunity to
another person or entity, or does not present such corporate opportunity to the
Company.

     33.3 In the event that a Director or officer of the Company who is also a
director or officer of a member of the KPC Affiliated Group acquires knowledge
of a potential transaction or matter which may be a corporate opportunity for
both the Company and any member of the KPC Affiliated Group, such Director or
officer of the Company shall not be liable to the Company or its Shareholders by
reason of the fact that such member of the KPC Affiliated Group pursues or
acquires such corporate opportunity for itself or directs such corporate
opportunity to another person or does not present such corporate opportunity to
the Company, except for willful default or fraud of such Director or officer, if
such Director or officer acts in a manner consistent with the following policy:

          (a) a corporate opportunity offered to any person who is an officer of
     the Company and who is also a director but not an officer of a member of
     the KPC Affiliated Group shall first be offered to the Company, unless such
     opportunity is expressly offered to such person solely in his capacity as a
     director of such member of the KPC Affiliated Group in which case such
     opportunity shall first be offered to such member of the KPC Affiliated
     Group;

          (b) a corporate opportunity offered to any person who is a Director
     but not an officer of the Company and who is also a director or officer of
     a member of the KPC Affiliated Group shall first be offered to the Company
     only if such opportunity is expressly offered to such person solely in his
     capacity as a Director of the Company, and otherwise shall first be offered
     to such member of the KPC Affiliated Group; and

          (c) a corporate opportunity offered to any person who is an officer of
     both the Company and a member of the KPC Affiliated Group shall first be
     offered to such member of the KPC Affiliated Group unless (x) such person
     is an employee of the Company or (y) such opportunity is expressly offered
     to such person solely in his capacity as an officer of the Company, in
     either of which case such opportunity shall first be offered to the
     Company.

     33.4 For the purposes of this Article XXXIII, "corporate opportunities"
shall include, but not be limited to, business opportunities which the Company
is financially able to

                                       26
<PAGE>

undertake, which are, from their nature, in the line of the Company's business,
are of practical advantage to it and are ones in which the Company has an
interest or a reasonable expectancy, and in which, by embracing the
opportunities, the self-interest of a member of the KPC Affiliated Group or its
officers or directors, will be brought into conflict with that of the Company.

     33.5 Any person or entity purchasing or otherwise acquiring any interest in
shares shall be deemed to have notice of and consented to the provisions of this
Article XXXIII.

     33.6 For purposes of this Article XXXIII, and, to the extent set forth
therein, Article XXXIV and Article XXXV and, in relation to the definition of
"KPC Affiliated Group" only, Article I:

          (a) the members of the "KPC Affiliated Group" shall mean,
     collectively, Kuwait Petroleum Corporation, a company organized under the
     laws of Kuwait ("KPC"), SFIC Holdings (Cayman), Inc., a Cayman Islands
     company ("SFIC Holdings"), and all corporations, partnerships, joint
     ventures, limited liability companies, trust, associations, governments or
     government agencies or instrumentalities which would be considered
     "affiliates" of KPC or SFIC Holdings within the meaning of Regulation S-K
     or Regulation S-X under the U.S. Securities Act of 1933, as amended (the
     "Securities Act"), including without limitation any entity in which KPC or
     SFIC Holdings owns (directly or indirectly) fifty percent (50%) or more of
     the outstanding voting shares or stock, voting power, partnership interests
     or similar ownership interests, and all successors to KPC, SFIC Holdings
     and their affiliates by way of merger, consolidation or sale of all or
     substantially all of its assets, but shall not include the Company (as
     defined in clause (b) below); and

          (b) the "Company" shall mean the Company and all corporations,
     partnerships, joint ventures, limited liability companies, trusts,
     associations and other entities in which the Company owns (directly or
     indirectly) more than fifty percent (50%) of the outstanding voting shares
     or stock, voting power, partnership interests or similar ownership
     interests.

     33.7 If any contract, agreement, arrangement or transaction between the
company and a member of the KPC Affiliated Group involves a corporate
opportunity and is approved in accordance with the procedures set forth in
Article XXXIV, the officers and directors of such member of the KPC Affiliated
Group shall, for purposes of these Articles, not be liable to the Company or its
Shareholders, except for wilful default or fraud on the part of the relevant
officer or director.

     33.8 The provisions of this Section 33, including, without limitation, the
provisions of this Section 33.8, may only be altered or amended by a Special
Resolution passed at a meeting of the Company at which a Special Quorum of
Shareholders is present.

                  XXXIV.  TRANSACTIONS WITH RELATED ENTITIES

     34.1 In anticipation that (i) the Company and the members of the KPC
Affiliated Group may enter into contracts or otherwise transact business with
each other and that

                                       27
<PAGE>

the Company and the members of the KPC Affiliated Group may derive benefits
therefrom and (ii) the Company may from time to time enter into contractual,
corporate or business relations with one or more of its Directors, or one or
more corporations, partnerships, associations or other organizations in which
one or more of its Directors have a financial interest (collectively, "Related
Entities"), the provisions of this Article XXXIV are set forth to regulate and
define certain contractual relations and other business relations of the Company
as they may involve the members of the KPC Affiliated Group, Related Entities
and their respective officers and directors, and the powers, rights, duties and
liabilities of the Company and its officers, Directors and Shareholders in
connection therewith. The provisions of this Article XXXIV are in addition to,
and not in limitation of, the provisions of the Statute and the other provisions
of the Articles. Any contract or business relation which does not comply with
the procedures set forth in this Article XXXIV shall not by reason thereof be
deemed void or voidable or be deemed to result in any breach of any fiduciary
duty or duty of loyalty or failure to act in good faith or in the interests of
the Company or to be the derivation of any improper personal benefit, but shall
be governed by the provisions of the Articles, the Memorandum, the Statute and
other applicable law.

     34.2 No contract, agreement, arrangement or transaction between the Company
and a member of the KPC Affiliated Group or between the Company and one or more
of the Directors or officers of the Company, a member of the KPC Affiliated
Group or any Related Entity or between the Company and any Related Entity shall
be void or voidable solely for the reason that a member of the KPC Affiliated
Group, any Related Entity or any one or more of the officers or Directors of the
Company, a member of the KPC Affiliated Group or any Related Entity are parties
thereto, or solely because any such Directors or officers are present at or
participate in the meeting of the Board of Directors or committee thereof which
authorizes the contract, agreement, arrangement or transaction, or solely
because his or their votes are counted for such purpose, and such member of the
KPC Affiliated Group, any Related Entity and such Directors and officers shall
not be liable to the Company or its Shareholders by reason of the entering into,
performance or consummation of any such contract, agreement, arrangement or
transaction, except in the case of wilful default or fraud on the part of such
directors or officers, if:

          (a) the material facts as to the contract, agreement, arrangement or
     transaction are disclosed or are known to the Board of Directors or the
     committee thereof that authorizes the contract, agreement, arrangement or
     transaction, and the Board of Directors or such committee in good faith
     authorizes the contract, agreement, arrangement or transaction by the
     affirmative vote of a majority of the disinterested Directors, even though
     the disinterested Directors be less than a quorum; or

          (b) the material facts as to the contract, agreement, arrangement or
     transaction are disclosed or are known to the holders of the Ordinary
     Shares entitled to vote thereon, and the contract, agreement, arrangement
     or transaction is specifically approved by vote of the holders of a
     majority of the voting power of the Ordinary Shares then outstanding not
     owned by the members of the KPC Affiliated Group or a Related Entity, as
     the case may be.

                                       28
<PAGE>

     34.3 Directors of the Company who are also directors or officers of a
member of the KPC Affiliated Group or any Related Entity may be counted in
determining the presence of a quorum at a meeting of the Board of Directors or
of a committee which authorizes the contract, agreement, arrangement or
transaction. Ordinary Shares owned by the members of the KPC Affiliated Group
and any Related Entities may be counted in determining the presence of a quorum
at a meeting of Shareholders which authorizes the contract, agreement,
arrangement or transaction.

     34.4 Any person or entity purchasing or otherwise acquiring any interest in
any shares will be deemed to have notice of and to have consented to the
provisions of this Article XXXIV.

     34.5 For purposes of this Article XXXIV, the members of the KPC Affiliated
Group and the Company shall have the meanings set forth in Article XXXIII.

     34.6 For purposes of this Article XXXIV, any contract, agreement,
arrangement or transaction with any corporation, partnership, joint venture,
limited liability company, trust, association or other entity which would be
considered a "subsidiary" of the Company within the meaning of Regulation S-K or
Regulation S-X under the Securities Act, shall be deemed to be a contract,
agreement, arrangement or transaction with the Company.

     34.7 The provisions of Section 34, including, without limitation, the
provisions of this Section 34.7, may only be altered or amended by a Special
Resolution passed at a meeting of the Company at which a Special Quorum of
Shareholders is present.

                             XXXV.  KPC PROVISIONS

     35.1 (a) For so long as members of the KPC Affiliated Group own, in the
aggregate, at least four percent (4%), (i) of the voting power of Outstanding
Voting Stock, or (ii) of all the outstanding Ordinary Shares, the Nominating and
Governance Committee and the Board of Directors shall, subject to Section 35.3,
the next succeeding sentence of this Section 35.1(a) and the Statute, cause any
slate of Directors presented to the Shareholders for election to the Board of
Directors to consist of such nominees that, if elected, would result in a Board
of Directors that includes individuals designated by SFIC Holdings (the "KPC
Designees") such that, after giving effect to the election of such KPC Designees
to the Board of Directors, the number of KPC Designees then serving as Directors
shall equal the product (rounded up to the nearest whole number) of (i) the
total number of Directors constituting the whole Board of Directors, multiplied
by (ii) the KPC Ownership Percentage on the date such slate of Directors is
presented to the Shareholders. As used herein, the "KPC Ownership Percentage"
means, (i) as of any date on and after the date any member of the KPC Affiliated
Group has sold or otherwise disposed of any Outstanding Voting Stock (the
"Disposition Date"), the percentage of the voting power of all Outstanding
Voting Stock represented by shares of Outstanding Voting Stock which are owned
by members of the KPC Affiliated Group on such date, which shares were also
owned on the date of the Merger Agreement by members of the KPC Affiliated
Group, and (ii) as of any date prior to the Disposition Date, the percentage of
the voting power of all Outstanding Voting Stock immediately following the
Effective Time represented by shares of Outstanding Voting Stock which are owned
by members of the KPC Affiliated Group on such date, which shares were also

                                       29
<PAGE>

owned immediately following the Effective Time by members of the KPC Affiliated
Group. Notwithstanding anything to the contrary in the foregoing, it is
understood and agreed that as long as SFIC Holdings has the right to designate a
director pursuant to the first sentence of this Section 35.1(a), the number of
KPC Designees entitled to be nominated for election to the Board of Directors
pursuant to the first sentence of this Section 35.1(a) shall be not less than
(i) three until such time as the KPC Ownership Percentage is reduced to less
than 12.5% and equal to or greater than 7.5%, at which time the number of KPC
Designees entitled to be so nominated shall be reduced from three to two, (ii)
two until such time as the KPC Ownership Percentage is reduced to less than 7.5%
and equal to or greater than 4%, at which time the number of KPC Designees
entitled to be so nominated shall be reduced from two to one, and (iii) one
until such time as the KPC Ownership Percentage is reduced to less than 4%, at
which time no KPC Designees shall be entitled to be so nominated.

     (b) As long as SFIC Holdings has the right, pursuant to Section 35.1, to
designate more than one Director, to the extent possible, each KPC Designee
shall be elected or designated to different classes.

     35.2 (a) As long as SFIC Holdings has the right to designate a Director
pursuant to the first sentence of Section 35.1(a), subject to Section 35.1,
Section 35.2(b) and Section 35.3, if a KPC Designee ceases to serve as a
Director for any reason, the Nominating and Governance Committee and the Board
of Directors shall exercise all authority under applicable law to cause the
vacancy created by such Director ceasing to serve to be filled by the
affirmative vote of a majority of the remaining Directors then in office,
through the appointment of another KPC Designee.

     (b) In the event that, on the date of any election of Directors by the
Shareholders, (A)(i) the KPC Ownership Percentage is less than 12.5% and equal
to or greater than 7.5%, and (ii) the aggregate number of KPC Designees on the
Board on such date (immediately prior to such election) exceeds two, then the
number of KPC Designees on the Board exceeding two shall be deemed to have
resigned from the Board of Directors on such date (immediately prior to such
election) such that the remaining number of KPC Designees is two and (B)(i) the
KPC Ownership Percentage is less than 7.5%, and (ii) the aggregate number of KPC
Designees on the Board on such date (immediately prior to such election) exceeds
one, then the number of KPC Designees on the Board exceeding one shall be deemed
to have resigned from the Board of Directors on such date (immediately prior to
such election) such that the remaining number of KPC Designee(s) is one. Unless
otherwise decided among the KPC Designees and SFIC Holdings, the KPC Designee(s)
who shall resign pursuant to this Section 35.2(b) shall be the KPC Designees
selected by the Nominating and Governance Committee.

     35.3 Each KPC Designee shall be reasonably acceptable to the Company.

     35.4 For the purposes of this Article XXXV, the members of the KPC
Affiliated Group shall have the meaning set forth in Article XXXIII.

     35.5 The provisions of Section 35, including, without limitation, the
provisions of this Section 35.5, may only be altered or amended by a Special
Resolution passed at a meeting of the Company at which a Special Quorum of
Shareholders is present.

                                       30
<PAGE>

                        XXXVI.  AMENDMENTS OF ARTICLES

     36.1 Subject to the Statute and except as otherwise provided in the
Articles, the Company may at any time and from time to time by Special
Resolution alter or amend the Articles in whole or in part.

                                       31
<PAGE>

                               THE COMPANIES LAW

                COMPANY LIMITED BY SHARES (2001 SECOND REVISION)

                 AMENDED AND RESTATED MEMORANDUM OF ASSOCIATION

                                       OF

                            GLOBALSANTAFECORPORATION

                       (Adopted by Special Resolution of

                  the members effective ______________, 2001)

     1.   The name of the company is GLOBALSANTAFE Corporation (the "Company").

     2. The Registered Office of the Company shall be situated at the offices
of Maples and Calder, P.O. Box 309, Ugland House, South Church Street, Grand
Cayman, Cayman Islands, or at such other place as the Board of Directors may
from time to time determine.

     3. The objects for which the Company is established are unrestricted and
the Company shall have full power and authority to carry out any object not
prohibited by any law as provided by Section 6(4) of the Companies Law (2001
Second Revision).

     4. Except as prohibited or limited by the Companies Law (2001 Second
Revision), in carrying out its objects the Company shall have all the powers of
a natural person in doing in any part of the world whether as principal, agent,
contractor, or otherwise whatever may be considered by it necessary or desirable
for the attainment of its objects and whatever else may be considered by it as
incidental or conducive thereto or consequential thereof, including, but without
in any way restricting the generality of the foregoing, the power to make any
alterations or amendments to this Amended and Restated Memorandum of Association
and the Amended and Restated Articles of Association of the Company considered
necessary or
<PAGE>

convenient in the manner set out in the Amended and Restated Articles of
Association of the Company all irrespective of any question of corporate
benefit, and the power to do any of the following acts or things, viz: to pay
all expenses of and incidental to the promotion, formation and incorporation of
the Company; to sell, lease or dispose of any property of the Company; to draw,
make, accept, endorse, discount, execute and issue promissory notes, debentures,
bills of exchange, bills of lading, warrants and other negotiable or
transferable instruments; to lend money or other assets and to act as
guarantors; to borrow or raise money on the security of the undertaking or on
all or any of the assets of the Company, including uncalled capital or without
security; to invest monies of the Company; to sell the undertaking of the
Company for cash or any other consideration; to distribute assets in specie to
members of the Company; to carry on any trade or business and generally to do
all acts and things which may be conveniently or profitably or usefully acquired
and dealt with, carried on, executed or done by the Company.

     5. The liability of each member is limited to the amount from time to time
unpaid on such member's shares.

     6. The authorized share capital of the Company is US$6,000,000, divided
into 600,000,000 Ordinary Shares, par value of US $.01 per share, all of such
shares with power for the Company, insofar as is permitted by law and subject to
the provisions of the Companies Law (2001 Second Revision) and the Amended and
Restated Articles of Association of the Company, to redeem, call or purchase any
of its shares, to increase or reduce the said capital and to issue any part of
its capital, whether original, redeemed, called or increased with or without any
preference, priority or special privilege or subject to any postponement of
rights or to any conditions or restrictions and so that unless the conditions of
issue shall otherwise expressly

                                       2
<PAGE>

declare every issue of shares whether declared to be ordinary, preference or
otherwise shall be subject to the powers hereinabove contained.

<PAGE>

                                  EXHIBIT 3.2
                                  -----------

                                 OTHER OFFICERS

Executive Vice President and Chief        Mr. Jon Marshall
 Operating Officer

Executive Vice President -                Mr. Seals McCarty
 Finance and Administration

Senior Vice President,                    Mr. James L. McCulloch
 General Counsel and Secretary

Senior Vice President and                 Mr. W. Matt Ralls
 Chief Financial Officer

Vice President, Human                     Mr. Joe E. Boyd
 Resources

Vice President, Investor                  Mr. Richard J. Hoffman
 Relations
<PAGE>

                                  EXHIBIT 7.11
                                  ------------

                          RULE 145 AFFILIATE AGREEMENT

__________, 2001

Santa Fe International Corporation
Two Lincoln Centre, Suite 1100
5420 LBJ Freeway
Dallas, TX  75240-2648

Ladies and Gentlemen:

          I have been advised that as of the date of this letter I may be deemed
to be an "affiliate" of Global Marine Inc., a Delaware corporation ("Global"),
as the term "affiliate" is defined for purposes of paragraphs (c) and (d) of
Rule 145 of the Rules and Regulations (the "Rules and Regulations") of the
Securities and Exchange Commission (the "Commission") under the Securities Act
of 1933, as amended (the "Securities Act").  I have been further advised that
pursuant to the terms of the Agreement and Plan of Merger dated as of August 31,
2001 (the "Merger Agreement") among Santa Fe International Corporation, a
company organized under the laws of the Cayman Islands ("Santa Fe"), Silver Sub,
Inc., a Delaware corporation and a wholly owned subsidiary of Santa Fe ("Sub"),
Gold Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of
Sub ("Merger Sub"), and Global, Merger Sub will be merged with and into Global
(the "Merger") and that as a result of the Merger, I may receive Santa Fe
Ordinary Shares (as defined in the Merger Agreement) in exchange for shares of
Global Common Stock (as defined in the Merger Agreement) owned by me.

          I represent, warrant and covenant to Santa Fe that in the event I
receive any Santa Fe Ordinary Shares as a result of the Merger:

          (a) I shall not make any sale, transfer or other disposition of such
     Santa Fe Ordinary Shares in violation of the Securities Act or the Rules
     and Regulations.

          (b) I have carefully read this letter and discussed its requirements
     and other applicable limitations upon my ability to sell, transfer or
     otherwise dispose of Santa Fe Ordinary Shares to the extent I believed
     necessary with my counsel or counsel for Global.

          (c) I have been advised that the issuance of Santa Fe Ordinary Shares
     to me pursuant to the Merger will be registered with the Commission under
     the Securities Act on a Registration Statement on Form S-4.  However, I
     have also been advised that, since at the time the Merger will be submitted
     for a vote of the stockholders of Global I may be deemed to have been an
     affiliate of Global for purposes of paragraphs (c) and (d) of Rule 145 of
     the Rules and Regulations, I may not sell, transfer or otherwise dispose of
     Santa Fe Ordinary Shares issued to me in the Merger within one year
     following the Merger, and, if I am then an affiliate of Santa Fe,
     thereafter, unless (i) such sale, transfer or other disposition has been
     registered under the Act, (ii) such sale, transfer or other disposition is
     made in conformity with the volume and other limitations of Rule 145 of the
     Rules and
<PAGE>

     Regulations, or (iii) such sale, transfer or other disposition is otherwise
     exempt from registration under the Act.

          (d) I understand that Santa Fe is under no obligation to register such
     sale, transfer or other disposition by me or on my behalf under the
     Securities Act or take any other action necessary in order to make
     compliance with an exemption from such registration available.

          (e) I also understand that stop transfer instructions will be given to
     Santa Fe's transfer agents with respect to the Santa Fe Ordinary Shares and
     that there will be placed on the certificate for the Santa Fe Ordinary
     Shares issued to me in connection with the Merger, or any substitutions
     therefor, a legend substantially in the form set forth below:

          "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED IN A
          TRANSACTION TO WHICH RULE 145 PROMULGATED UNDER THE SECURITIES ACT OF
          1933 APPLIES.  THE SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED
          EXCEPT IN COMPLIANCE WITH THE REQUIREMENTS OF SAID RULE 145 OR
          PURSUANT TO A REGISTRATION STATEMENT UNDER SAID ACT OR AN EXEMPTION
          FROM SUCH REGISTRATION."

          It is understood and agreed that the legend set forth in paragraph (e)
     above shall be removed by delivery of substitute certificates without such
     legend (i) prior to the first anniversary of the Merger if (x) I am not at
     such time an affiliate of Santa Fe and (y)  the undersigned shall have
     delivered to Santa Fe a copy of a letter from the staff of the Commission
     or an opinion of counsel, in each case reasonably satisfactory to Santa Fe
     in form and substance, to the effect that such legend is no longer required
     for purposes of the Securities Act, or (ii) thereafter at the request of
     the undersigned.

          (f) I also understand that unless the transfer by me of my Santa Fe
     Ordinary Shares has been registered under the Securities Act or is a sale
     made in conformity with the provisions of Rule 145 of the Rules and
     Regulations, Santa Fe reserves the right to put the following legend on the
     certificates issued to my transferee:

          "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER THE SECURITIES ACT OF 1933 AND WERE ACQUIRED FROM A PERSON WHO
          RECEIVED SUCH SHARES IN A TRANSACTION TO WHICH RULE 145 PROMULGATED
          UNDER THE SECURITIES ACT OF 1933 APPLIES.  THE SHARES HAVE BEEN
          ACQUIRED BY THE HOLDER NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION
          WITH, ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF THE SECURITIES
          ACT OF 1933 AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED
          EXCEPT IN

                                       2
<PAGE>

          ACCORDANCE WITH AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
          OF THE SECURITIES ACT OF 1933."

          It is understood and agreed that the legend set forth in paragraph (f)
     above shall be removed by delivery of substitute certificates without such
     legend if such legend is not required for purposes of the Securities Act.

          Execution of this letter should not be construed as an admission,
stipulation or acknowledgment by me that I am an "affiliate" of Santa Fe as
described in the first paragraph hereof or considered as a waiver of any rights
that I may have to object to any claim that I am such an affiliate on or after
the date of this letter.

                                    Very truly yours,

                                    ---------------------------------
                                    Name:

ACCEPTED AND AGREED THIS
---- DAY OF ----------, 2001.

SANTA FE INTERNATIONAL CORPORATION

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

Name:  ------------------------------

Title: ------------------------------

                                       3

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