Document:

<PAGE>

                                                                     EXHIBIT 4.1

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                   INFINITY PROPERTY AND CASUALTY CORPORATION,

                                    as Issuer

                                       and

                    American Stock Transfer & Trust Company,

                                   as Trustee

                           5.50% Senior Notes due 2014

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

                                    INDENTURE

                          Dated as of February 17, 2004

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

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

                              CROSS-REFERENCE TABLE

       Certain Sections of this Indenture relating to Sections 310 through
               318, inclusive, of the Trust Indenture Act of 1939:

<TABLE>
<CAPTION>
Trust Indenture Act                                        Indenture
     Section                                                Section
     -------                                                -------
<S>                                                     <C>
310(a)(1)                                                   7.9; 7.10
   (a)(2)                                                   7.10
   (a)(3)                                                   N.A.
   (a)(4)                                                   N.A.
   (b)                                                      7.8; 7.10
   (c)                                                      N.A.
311(a)                                                      7.11
   (b)                                                      7.11
   (c)                                                      N.A.
312(a)                                                      2.5
   (b)                                                      10.3
   (c)                                                      10.3
313(a)                                                      7.6
   (b)(1)                                                   N.A.
   (b)(2)                                                   7.6
   (c)                                                      7.6
   (d)                                                      7.6
314(a)                                                  4.4; 4.12; 10.2
   (b)                                                      N.A.
   (c)(1)                                                   10.4
   (c)(2)                                                   10.4
   (c)(3)                                                   N.A.
   (d)                                                      N.A.
   (e)                                                      10.5
   (f)                                                      4.4
315(a)                                                      7.1
   (b)                                                      7.5
   (c)                                                      7.1
   (d)                                                      7.1
   (e)                                                      6.11
316(a)(last sentence)                                       10.6
   (a)(1)(A)                                                6.5
   (a)(1)(B)                                                6.4
   (a)(2)                                                   N.A.
   (b)                                                      6.7
317(a)(1)                                                   6.8
   (a)(2)                                                   6.9
   (b)                                                      2.4
318(a)                                                      10.1
</TABLE>

                           N.A. means Not Applicable.
--------------
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be
      part of this Indenture.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                                PAGE
<S>                                                                                                             <C>
ARTICLE I        Definitions and Incorporation by Reference.................................................     1

      SECTION 1.1            Definitions....................................................................     1
      SECTION 1.2            Other Definitions..............................................................     6
      SECTION 1.3            Incorporation by Reference of Trust Indenture Act..............................     6
      SECTION 1.4            Rules of Construction..........................................................     7

ARTICLE II       The Securities.............................................................................     7

      SECTION 2.1            Form and Dating................................................................     7
      SECTION 2.2            Execution and Authentication...................................................    11
      SECTION 2.3            Registrar and Paying Agent.....................................................    12
      SECTION 2.4            Paying Agent To Hold Money in Trust............................................    13
      SECTION 2.5            Holder Lists...................................................................    13
      SECTION 2.6            Transfer and Exchange..........................................................    13
      SECTION 2.7            Form of Certificates to be Delivered in Connection with
                             Transfers Pursuant to Rule 144A ...............................................    16
      SECTION 2.8            Business Days..................................................................    16
      SECTION 2.9            Replacement Securities.........................................................    16
      SECTION 2.10           Outstanding Securities.........................................................    16
      SECTION 2.11           Temporary Securities...........................................................    16
      SECTION 2.12           Cancellation...................................................................    17
      SECTION 2.13           Defaulted Interest.............................................................    17
      SECTION 2.14           CUSIP Numbers, etc.............................................................    17
      SECTION 2.15           Issuance of Additional Securities..............................................    17
      SECTION 2.16           One Class of Securities........................................................    18

ARTICLE III      Redemption.................................................................................    18

      SECTION 3.1            Notices to Trustee.............................................................    18
      SECTION 3.2            Selection of Securities to be Redeemed.........................................    18
      SECTION 3.3            Notice of Redemption...........................................................    19
      SECTION 3.4            Effect of Notice of Redemption.................................................    19
      SECTION 3.5            Deposit of Redemption Price....................................................    20
      SECTION 3.6            Securities Redeemed in Part....................................................    20

ARTICLE IV       Covenants..................................................................................    20

      SECTION 4.1            Payment of Securities..........................................................    20
      SECTION 4.2            Maintenance of Office or Agency................................................    21
      SECTION 4.3            Money for Security Payments to Be Held in Trust................................    21
      SECTION 4.4            Statements of Officers of Company as to Default; Notice of
                             Default .......................................................................    22
      SECTION 4.5            Existence......................................................................    23
</TABLE>

                                       -i-
<PAGE>

<TABLE>
<S>                                                                                                             <C>
      SECTION 4.6            Maintenance of Properties......................................................    23
      SECTION 4.7            Payment of Taxes and Other Claims..............................................    23
      SECTION 4.8            Further Instruments and Acts...................................................    23
      SECTION 4.9            Limitation on Liens............................................................    23
      SECTION 4.10           Limitations on Disposition of Stock of Significant Subsidiaries................    24
      SECTION 4.11           Waiver of Certain Covenants....................................................    24
      SECTION 4.12           SEC Reports....................................................................    24

ARTICLE V        Consolidation, Merger and Sale of Assets...................................................    25

      SECTION 5.1            Company May Consolidate, Etc., Only on Certain Terms...........................    25
      SECTION 5.2            Successor Substituted for Company..............................................    25

ARTICLE VI       Defaults and Remedies......................................................................    25

      SECTION 6.1            Events of Default..............................................................    25
      SECTION 6.2            Acceleration...................................................................    27
      SECTION 6.3            Other Remedies.................................................................    27
      SECTION 6.4            Waiver of Past Defaults........................................................    27
      SECTION 6.5            Control by Majority............................................................    27
      SECTION 6.6            Limitation on Suits............................................................    28
      SECTION 6.7            Rights of Holders To Receive Payment...........................................    28
      SECTION 6.8            Collection Suit by Trustee.....................................................    28
      SECTION 6.9            Trustee May File Proofs of Claim...............................................    28
      SECTION 6.10           Priorities.....................................................................    29
      SECTION 6.11           Undertaking for Costs..........................................................    29
      SECTION 6.12           Waiver of Stay or Extension Laws...............................................    29

ARTICLE VII      Trustee....................................................................................    30

      SECTION 7.1            Duties of Trustee..............................................................    30
      SECTION 7.2            Rights of Trustee..............................................................    31
      SECTION 7.3            Individual Rights of Trustee...................................................    32
      SECTION 7.4            Trustee's Disclaimer...........................................................    32
      SECTION 7.5            Notice of Defaults.............................................................    32
      SECTION 7.6            Reports by Trustee to Holders..................................................    32
      SECTION 7.7            Compensation and Indemnity.....................................................    32
      SECTION 7.8            Replacement of Trustee.........................................................    33
      SECTION 7.9            Successor Trustee by Merger....................................................    34
      SECTION 7.10           Eligibility; Disqualification..................................................    35
      SECTION 7.11           Preferential Collection of Claims Against the Company..........................    35

ARTICLE VIII     Discharge of Indenture; Defeasance.........................................................    35

      SECTION 8.1            Discharge of Liability on Securities; Defeasance...............................    35
      SECTION 8.2            Conditions to Defeasance.......................................................    36
      SECTION 8.3            Application of Trust Money.....................................................    37
      SECTION 8.4            Repayment to the Company.......................................................    37
</TABLE>

                                      -ii-
<PAGE>

<TABLE>
<S>                                                                                                             <C>
      SECTION 8.5            Indemnity for Government Obligations...........................................    37
      SECTION 8.6            Reinstatement..................................................................    38

ARTICLE IX       Amendments.................................................................................    38

      SECTION 9.1            Without Consent of Holders.....................................................    38
      SECTION 9.2            With Consent of Holders........................................................    39
      SECTION 9.3            Compliance with Trust Indenture Act............................................    40
      SECTION 9.4            Revocation and Effect of Consents and Waivers..................................    40
      SECTION 9.5            Notation on or Exchange of Securities..........................................    40
      SECTION 9.6            Trustee To Sign Amendments.....................................................    41
      SECTION 9.7            Payment for Consent............................................................    41

ARTICLE X        Miscellaneous..............................................................................    41

      SECTION 10.1           Trust Indenture Act Controls...................................................    41
      SECTION 10.2           Notices........................................................................    41
      SECTION 10.3           Communication by Holders with other Holders....................................    42
      SECTION 10.4           Certificate and Opinion as to Conditions Precedent.............................    42
      SECTION 10.5           Statements Required in Certificate or Opinion..................................    42
      SECTION 10.6           When Securities Disregarded....................................................    43
      SECTION 10.7           Rules by Trustee, Paying Agent and Registrar...................................    43
      SECTION 10.8           Governing Law..................................................................    43
      SECTION 10.9           No Recourse Against Others.....................................................    43
      SECTION 10.10          Successors.....................................................................    43
      SECTION 10.11          Multiple Originals.............................................................    43
      SECTION 10.12          Variable Provisions............................................................    43
      SECTION 10.13          Qualification of Indenture.....................................................    43
      SECTION 10.14          Table of Contents; Headings....................................................    44
      SECTION 10.15          Separability Clause............................................................    44
</TABLE>

Exhibit A - Form of Initial Security
Exhibit B - Form of Exchange Security
Exhibit C - Form of Rule 144A Certificate

Note: This Table of Contents shall not, for any purpose, be deemed to be part of
      this Indenture.

                                     -iii-

<PAGE>

                  INDENTURE, dated as of February 17, 2004, between Infinity
Property and Casualty Corporation, an Ohio corporation (the "Company"), and
American Stock Transfer & Trust Company, a New York banking corporation, as
trustee (the "Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of Holders of the Company's 5.50%
Senior Notes due 2014 (the "Initial Securities") and, if and when issued in
exchange for Initial Securities as provided in the Registration Rights
Agreement, the Company's 5.50% Senior Notes due 2014 (the "Exchange Securities"
and, together with the Initial Securities and any Additional Securities, the
"Securities"):

                                   ARTICLE I

                   Definitions and Incorporation by Reference

                  SECTION 1.1 Definitions.

                  "Additional Interest" shall have the meaning assigned to such
term in the Registration Rights Agreement.

                  "Additional Securities" means 5.50% Senior Notes due 2014
issued from time to time after the Issue Date under the terms of this Indenture
(other than pursuant to Sections 2.6, 2.9, 2.11, 3.6 and 9.5 of this Indenture,
in the case of Securities that are not already Additional Securities, and other
than Exchange Securities issued pursuant to an exchange offer for the other
Securities outstanding under this Indenture).

                  "Bankruptcy Law" means Title 11, United States Code, or any
applicable bankruptcy, insolvency, reorganization, rehabilitation or other
similar Federal or state law.

                  "Board of Directors" or "Board" means, with respect to any
Person, the Board of Directors of such Person or any committee thereof duly
authorized to act on behalf of such Board of Directors.

                  "Business Day" means a day which is not, in New York City or
any other place of payment, a Saturday, Sunday or other day on which banking
institutions or trust companies are authorized or required by law, resolution or
executive order to close.

                  "Capital Lease Obligation" means an obligation of the Company
or any Subsidiary to pay rent or other amounts under a lease of (or another
Indebtedness arrangement conveying the right to use) real or personal property
thereof that is required to be classified and accounted for as a capital lease
or a liability on the face of a balance sheet thereof in accordance with
generally accepted accounting principles. For purposes of this Indenture, the
amount of such obligation shall be the capitalized amount thereof and the stated
maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease (or such other arrangement) prior to the first date
upon which such lease (or such other arrangement) may be terminated by the
lessee (or obligor) without payment of a penalty.

<PAGE>

                  "Capital Stock" of any Person means any and all shares,
interests, units, participations or other equivalents (however designated) of
corporate stock or other equity of such Person.

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

                  "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.

                  "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 of the execution of this Indenture is
located at 59 Maiden Lane, New York, NY 10038 Attention: Corporate Trust
Department, or at any other time at such other address as the Trustee may
designate from time to time by notice to the Holders.

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

                  "DTC" means The Depository Trust Company, its nominees and
their respective successors and assigns.

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

                  "GAAP" means generally accepted accounting principles in the
United States as in effect from time to time.

                  "Guaranty" by any Person means any obligation, contingent or
otherwise, of such Person guaranteeing any Indebtedness of any other Person (the
"primary obligor") in any manner, whether directly or indirectly, and including,
without limitation, every Obligation of such Person (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or to
purchase (or to advance or supply funds for the purchase of) any security for
the payment of such Indebtedness, (ii) to purchase property, securities or
services for the purpose of assuring the holder of such Indebtedness of the
payment of such Indebtedness or (iii) to maintain working capital, equity
capital or other financial statement condition or liquidity of the primary
obligor so as to enable the primary obligor to pay such Indebtedness (and the
terms "Guaranteed," and "Guarantor" shall have meanings correlative to the
foregoing); provided, however, that the Guaranty by any Person shall not include
endorsements by such Person for collection or deposit, in either case in the
ordinary course of business.

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

                  "Incur" means create, issue, assume, incur or guarantee.

                  "Indenture" means this Indenture, as amended or supplemented
from time to time.

                                        2
<PAGE>

                  "Indebtedness" of any Person means, without duplication, (i)
every obligation of such Person for money borrowed; (ii) every obligation of
such Person evidenced by bonds, debentures, notes or similar instruments,
including obligations incurred in connection with the acquisition of property,
assets or businesses; (iii) every obligation of such Person under conditional
sale or other title retention agreements relating to assets or property
purchased by such Person or issued or assumed as the deferred purchase price of
property, assets or services (but excluding trade accounts payable or accrued
liabilities arising in the ordinary course of business that are not overdue by
more than 90 days or are being contested by such Person in good faith); (iv)
every Capital Lease Obligation of such Person; (v) every obligation of such
Person with respect to any Sale and Leaseback Transaction to which such Person
is a party (vi) if such Person is engaged in the insurance business, all Surplus
Debt of such Person; (vii) every obligation of the type referred to in clauses
(i) through (vi) and (viii) of another Person the payment of which such Person
has Guaranteed or is otherwise responsible for or liable for, directly or
indirectly, as obligor, Guarantor or otherwise; and (viii) every amendment,
modification, renewal and extension of an obligation of the type referred to in
clauses (i) through (vii).

                  "Initial Purchasers" means Lehman Brothers Inc. and UBS
Securities LLC.

                  "Insurance Regulator" means any Person having (i) authority to
administer or enforce any statute, regulation or other law of the United States,
any State or the District of Columbia or any instrumentality or political
subdivision thereof (or any order or decree of any court thereof) governing the
conduct of an insurance business, and (ii) jurisdiction over the matter in
question.

                  "Issue Date" means February 17, 2004.

                  "Lien" means, with respect to any property or assets, any
mortgage, pledge, security interest, lien, conditional sale or other title
retention agreement or other similar encumbrance.

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

                  "Officers' Certificate" means a certificate signed by any two
Officers of the Company.

                  "Opinion of Counsel" means a written opinion from legal
counsel to the Company who is reasonably acceptable to the Trustee. The counsel
may be an employee of or counsel to the Company.

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

                                        3
<PAGE>

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

                  "Principal" means the principal of the Security plus the
premium, if any, payable on the Security which is due or overdue or is to become
due at the relevant time; provided, however, that for purposes of calculating
any such premium, the term "principal" shall not include the premium with
respect to which such calculation is being made.

                  "Purchase Agreement" means the Purchase Agreement dated
February 11, 2004 between the Company and the Initial Purchasers.

                  "Registered Exchange Offer" means the offer by the Company,
pursuant to the Registration Rights Agreement, to certain Holders of Initial
Securities, to issue and deliver to such Holders, in exchange for the Initial
Securities, a like aggregate principal amount of Exchange Securities registered
under the Securities Act.

                  "Registration Rights Agreement" means the Exchange and
Registration Rights Agreement, dated as of February 17, 2004, between the
Company and the Initial Purchasers, and with respect to any Additional
Securities, one or more substantially similar registration rights agreements
between the Company and the other parties thereto, as such agreement(s) may be
amended, from time to time.

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

                  "Restrictive Securities Legend" means the Restrictive Legend
set forth in Section 2.1(c).

                  "Sale and Leaseback Transaction" means any arrangement with
any bank, insurance company or other lender or investor (other than the Company
or a Subsidiary), or to which such lender or investor is a party, providing for
the leasing by the Company or any Subsidiary of any property or asset of the
Company or any Subsidiary that has been or is to be sold or transferred by the
Company or any Subsidiary to such lender or investor or to any Person (other
than the Company or a Subsidiary) to whom funds have been or are to be advanced
by such lender or investor on the security of such property or asset.

                  "SEC" means the U.S. Securities and Exchange Commission, or
any successor agency.

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

                                        4
<PAGE>

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

                  "Significant Subsidiary" means a Subsidiary, including its
Subsidiaries, that meets any of the conditions set forth under Rule 405 under
the Securities Act.

                  "Stated Maturity" means, with respect to any Security, the
date specified in such Security as the fixed date on which the payment of
Principal of such Security is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase of such Security at the option of the Holder thereof upon the
happening of any contingency beyond the control of the Company unless such
contingency has occurred).

                  "Subsidiary" means a corporation, company (including any
limited liability company), association, partnership, joint venture, trust or
other business entity in which the Company and/or one or more of its other
Subsidiaries owns at least 50% of the Voting Stock.

                  "Surplus Debt" of any Person engaged in the insurance business
means any liability of such Person to another Person for repayment of a sum of
money to such other Person under a written agreement approved by an Insurance
Regulator providing for such liability to be paid only out of surplus of such
Person in excess of a minimum amount of surplus specified in such agreement.

                  "Trust Indenture Act" means the U.S. Trust Indenture Act of
1939, as amended (15 U.S.C. Sections 77aaa-77bbbb) as in effect on the date of
this Indenture; provided, however, that in the event the Trust Indenture Act of
1939 is amended after such date, "Trust Indenture Act" means, to the extent
required by any such amendments, the U.S. Trust Indenture Act of 1939, as so
amended.

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

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

                  "U.S. Government Obligations" means direct obligations (or
certificates representing an ownership interest in such obligations) of the
United States of America (including any agency or instrumentality thereof) for
the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the option of the issuer
thereof.

                  "Voting Stock" means stock of any class or classes or other
ownership interest having general voting power under ordinary circumstances to
elect a majority of the board of directors, managers, trustees or persons with
similar functions of the entity in question, provided that, for the purposes of
this definition, stock which carries only the right to vote conditionally on the
happening of an event will not be considered Voting Stock whether or not that
event has happened.

                                        5
<PAGE>

                  "Wholly Owned Subsidiary" means, at any time, a Subsidiary all
of the outstanding Capital Stock of which (other than directors' qualifying
shares) shall at such time be owned, directly or indirectly, by the Company, one
or more Wholly Owned Subsidiaries or the Company and one or more Wholly Owned
Subsidiaries.

                  SECTION 1.2 Other Definitions.

<TABLE>
<CAPTION>
                                                                                              Defined in
                                     Term                                                      Section
                                     ----                                                      -------
<S>                                                                                           <C>
"Affiliate"..........................................................................          10.6
"Agent Members"......................................................................          2.1(d)
"Authenticating Agent"...............................................................          2.2
"Company Order"......................................................................          2.2
"covenant defeasance option".........................................................          8.1(b)
"Definitive Securities"..............................................................          2.1(e)
"Event of Default"...................................................................          6.1
"Exchange Global Security"...........................................................          2.1(a)
"Exchange Securities"................................................................          Preamble
"Global Securities"..................................................................          2.1(a)
"Initial Securities".................................................................          Preamble
"full defeasance option".............................................................          8.1(b)
"Paying Agent".......................................................................          2.3
"QIBs"...............................................................................          2.1(a)
"Registrar"..........................................................................          2.3
"Resale Restriction Termination Date"................................................          2.6
"Restrictive Legend".................................................................          2.1(c)
"Rule 144A"..........................................................................          2.1(a)
"Rule 144A Certificate"..............................................................          2.7
"Rule 144A Global Security"..........................................................          2.1(a)
"Rule 144A Security".................................................................          2.1(a)
"Securities".........................................................................          Preamble
</TABLE>

                  SECTION 1.3 Incorporation by Reference of Trust Indenture Act.
This Indenture is subject to the mandatory provisions of the Trust Indenture Act
which are incorporated by reference in and made a part of this Indenture. The
following terms in the Trust Indenture Act have the following meanings:

                  "Commission" means the SEC.

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Holder.

                  "indenture to be qualified" means this Indenture.

                                        6
<PAGE>

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

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

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

                  SECTION 1.4 Rules of Construction. Unless the context
otherwise requires:

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

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

                  (3)      "or" is not exclusive;

                  (4)      "including" means including without limitation;

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

                  (6)      all references to (a) Initial Securities shall refer
         also to any Additional Securities issued in the form of Initial
         Securities and (b) Exchange Securities shall refer also to any
         Additional Securities issued in the form of Exchange Securities, in
         each case, pursuant to Section 2.15;

                  (7)      all references to the date the Securities were
         originally issued shall refer to the Issue Date or the date any
         Additional Securities were originally issued, as the case may be; and

                  (8)      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.

                                   ARTICLE II

                                 The Securities

                  SECTION 2.1 Form and Dating. (a) The Initial Securities are
being offered and sold by the Company to the Initial Purchasers pursuant to the
Purchase Agreement. The Initial Securities will be resold initially by the
Initial Purchasers only to qualified institutional buyers (as defined in Rule
144A under the Securities Act ("Rule 144A")) in reliance on Rule 144A ("QIBs").
The Initial Securities may thereafter be transferred only to QIBs for the period
specified herein or in accordance with the procedure described herein.

                                        7
<PAGE>

                  The Initial Securities will be offered and sold to QIBs in
reliance on Rule 144A (each, a "Rule 144A Security" and collectively, the "Rule
144A Securities") in the form of a permanent global Security, without interest
coupons, substantially in the form of Exhibit A, which is incorporated by
reference and made a part of this Indenture, including appropriate legends as
set forth in Section 2.1(c) (the "Rule 144A Global Security"), deposited with
the Trustee, as custodian for DTC, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The Rule 144A Global
Security may be represented by more than one certificate, if so required by
DTC's rules regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Rule 144A Global Security may
from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for DTC or its nominee, as hereinafter provided.

                  Exchange Securities exchanged for interests in the Rule 144A
Security will be issued in the form of a permanent global Security substantially
in the form of Exhibit B hereto, which is hereby incorporated by reference and
made a part of this Indenture, deposited with the Trustee as hereinafter
provided, including the appropriate legend set forth in Section 2.1(c) (the
"Exchange Global Security"). The Exchange Global Security may be represented by
more than one certificate, if so required by DTC's rules regarding the maximum
principal amount to be represented by a single certificate.

                  The Rule 144A Global Security and the Exchange Global Security
are sometimes collectively herein referred to as the "Global Securities."

                  The Principal of and interest on the Securities shall be
payable at the office or agency of the Company maintained for such purpose in
The City of New York, or at such other office or agency of the Company as may be
maintained for such purpose pursuant to Section 2.3; provided, however, that at
the option of the Company, each installment of interest may be paid by (i) check
mailed to addresses of the Persons entitled thereto as such addresses shall
appear on the Note Register or (ii) wire transfer to an account located in the
United States maintained by the payee. Payments in respect of Securities
represented by a Global Security (including Principal, premium and interest)
will be made by wire transfer of immediately available funds to the accounts
specified by DTC.

                  (b)      Denominations. The Securities shall be issuable only
in fully registered form, without coupons, and only in denominations of $1,000
and any integral multiple thereof.

                  (c)      Legends. (A) Unless and until (i) an Initial Security
is sold under an effective registration statement pursuant to the Registration
Rights Agreement or a similar agreement, (ii) an Initial Security is exchanged
for an Exchange Security in connection with an effective registration statement
pursuant to the Registration Rights Agreement or a similar agreement or (iii)
the Resale Restriction Termination Date (as defined below), the Rule 144A Global
Security shall bear the following legend (the "Restrictive Legend") on the face
thereof:

         "THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
         1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
         STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
         PARTICIPATION HEREIN MAY BE REOFFERED, SOLD,

                                        8
<PAGE>

         ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
         THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT
         FROM, OR NOT SUBJECT TO, SUCH REGISTRATION.

         THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS
         OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
         PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH
         SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION DATE")
         THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
         THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS
         THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY
         (A) TO THE COMPANY OR A SUBSIDIARY OF THE COMPANY, (B) PURSUANT TO A
         REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE
         SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
         RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT
         REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN
         RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT
         OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS
         GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR (D)
         PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
         REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S AND THE
         TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO
         CLAUSE (D) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
         CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.
         THIS LEGEND WILL BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE
         RESALE RESTRICTION TERMINATION DATE."

                  (B)      The Global Securities, whether or not an Initial
Security, shall bear the following legend on the face thereof:

         "THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
         HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
         OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR
         SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY
         OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
         INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF
         THIS SECURITY AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
         DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR
         ANOTHER NOMINEE OF THE DEPOSITARY) MAY BE REGISTERED EXCEPT IN LIMITED
         CIRCUMSTANCES.

                                        9
<PAGE>

         UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
         THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR
         REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED
         IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
         BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY
         PAYMENT HEREON IS MADE TO CEDE & CO. OR SUCH OTHER NAME, ANY TRANSFER,
         PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS
         WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
         HEREIN."

                  (d)      Book-Entry Provisions. (i) This Section 2.1(d) shall
apply only to Global Securities deposited with the Trustee, as custodian for
DTC.

                  (ii)      Each Global Security initially shall (x) be
registered in the name of DTC for such Global Security or the nominee of DTC,
(y) be delivered to the Trustee as custodian for DTC and (z) bear legends as set
forth in Section 2.1(c).

                  (iii)    Members of, or participants in, DTC ("Agent Members")
shall have no rights under this Indenture with respect to any Global Security
held on their behalf by DTC or by the Trustee as the custodian of DTC or under
such Global Security, and DTC may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, 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 DTC or impair, as between DTC and its Agent Members,
the operation of customary practices of DTC governing the exercise of the rights
of a holder of a beneficial interest in any Global Security.

                  (iv)    In connection with any transfer of a portion of the
beneficial interest in a Global Security pursuant to subsection (e) of this
Section 2.1 to beneficial owners who are required to hold Definitive Securities,
the Securities Custodian shall reflect on its books and records the date and a
decrease in the principal amount of such Global Security in an amount equal to
the principal amount of the beneficial interest in the Global Security to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Definitive Securities of like tenor and amount.

                  (v)     In connection with the transfer of an entire Global
Security to beneficial owners pursuant to subsection (e) of this Section 2.1,
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall authenticate
and deliver, to each beneficial owner identified by DTC in exchange for its
beneficial interest in such Global Security, an equal aggregate principal amount
of Definitive Securities of authorized denominations.

                  (vi)      The registered holder of a Global Security may grant
proxies and otherwise authorize any person, including Agent Members and persons
that may hold interests through Agent Members, to take any action which a Holder
is entitled to take under this Indenture or the Securities.

                                       10
<PAGE>

                  (e)      Definitive Securities. (i) Except as provided below,
owners of beneficial interests in Global Securities will not be entitled to
receive certificated Securities ("Definitive Securities"). If required to do so
pursuant to any applicable law or regulation, beneficial owners may obtain
Definitive Securities in exchange for their beneficial interests in a Global
Security upon written request in accordance with DTC's and the Registrar's
procedures. In addition, Definitive Securities shall be transferred to all
beneficial owners in exchange for their beneficial interests in a Global
Security if (a) DTC notifies the Company that it is unwilling or unable to
continue as depositary for such Global Security or DTC ceases to be a clearing
agency registered under applicable law and a successor depositary is not
appointed by the Company within 90 days of such notice, (b) the Company executes
and delivers to the Trustee an Officers' Certificate stating that such Global
Security shall be so exchangeable or (c) an Event of Default has occurred and is
continuing and the Registrar has received a request from DTC.

                  (ii)     Any Definitive Security delivered in exchange for an
interest in a Global Security pursuant to Section 2.1(d)(iv) or (v) shall bear
the legend regarding transfer restrictions applicable to the Definitive Security
set forth in Section 2.1(c).

                  SECTION 2.2 Execution and Authentication. An Officer of the
Company shall sign the Securities for the Company by manual or facsimile
signature and may be imprinted or otherwise reproduced.

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

                  A Security shall not be valid until an authorized signatory of
the Trustee authenticates the Security by manual or facsimile signature. The
signature of the Trustee on a Security shall be conclusive evidence that such
Security has been duly and validly authenticated and issued under this
Indenture. A Security shall be dated the date of its authentication.

                  At any time and from time to time after the execution and
delivery of this Indenture, the Trustee shall authenticate and make available
for delivery: (1) Initial Securities for original issue on the Issue Date in an
aggregate principal amount of $200.0 million, (the "Original Securities"), (2)
any Additional Securities for original issue from time to time after the Issue
Date as set forth in Section 2.15 and (3) any Exchange Securities for issue only
in exchange for a like principal amount of Initial Securities, in each case upon
a written order of the Company signed by two Officers of the Company (a "Company
Order"). Such Company Order shall specify the amount of the Securities to be
authenticated and the date on which the original issue of Securities is to be
authenticated and whether the Securities are to be Initial Securities,
Additional Securities or Exchange Securities. The aggregate principal amount of
Initial Securities which may be authenticated and delivered under this Indenture
is limited to $200.0 million. Additionally, the Company may from time to time,
without notice to or consent of the Holders, issue such additional principal
amounts of Additional Securities as may be issued and authenticated pursuant to
clause (2) of this paragraph, and Securities authenticated and delivered upon
registration or transfer of, or in exchange for, or in lieu of, other Securities
of the same class pursuant to Section 2.6, Section 2.9, Section 2.10, Section
3.6 or Section 9.5.

                                       11

<PAGE>

                  The Trustee may appoint an agent (the "Authenticating Agent")
reasonably acceptable to the Company to authenticate the Securities. Unless
limited by the terms of such appointment, any such Authenticating Agent may
authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent.

                  In case the Company, pursuant to Article V, shall be
consolidated or merged with or into any other Person or shall convey, transfer,
lease or otherwise dispose of all or substantially all its properties to any
Person, and the successor Person resulting from such consolidation, or surviving
such merger, or into which the Company shall have been merged, or the Person
which shall have received a conveyance, transfer, lease or other disposition as
aforesaid, shall have executed an indenture supplemental hereto (if not
otherwise a party to the Indenture) with the Trustee pursuant to Article V, any
of the Securities authenticated or delivered prior to such consolidation,
merger, conveyance, transfer, lease or other disposition may, from time to time,
at the request of the successor Person, be exchanged for other Securities
executed in the name of the successor Person with such changes in phraseology
and form as may be appropriate, but otherwise in substance of like tenor as the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon Company Order of the successor Person, shall authenticate and
deliver Securities as specified in such order for the purpose of such exchange.
If Securities shall at any time be authenticated and delivered in any new name
of a successor Person (if other than the Company) pursuant to this Section 2.2
in exchange or substitution for or upon registration of transfer of any
Securities, such successor Person (if other than the Company), at the option of
the Holders but without expense to them, shall provide for the exchange of all
Securities at the time outstanding for Securities authenticated and delivered in
such new name.

                  SECTION 2.3 Registrar and Paying Agent. The Company shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Registrar
shall keep a register of the Securities and of their transfer and exchange. The
Company may have one or more additional paying agents. The term "Paying Agent"
includes any such additional paying agent.

                  In the event the Company shall retain any Person not a party
to this Indenture as an agent hereunder, the Company shall enter into an
appropriate agency agreement with such agent, which shall incorporate the terms
of the Trust Indenture Act. The agreement shall implement the provisions of this
Indenture that relate to such agent. The Company shall notify the Trustee of the
name and address of each such agent. If the Company fails to maintain a
Registrar or Paying Agent, the Trustee shall act as such and shall be entitled
to appropriate compensation therefor pursuant to Section 7.7. The Company shall
be responsible for the fees and compensation of all agents appointed or approved
by it. Either the Company or any of its domestically incorporated wholly owned
Subsidiaries may act as Paying Agent.

                  The Company initially appoints the Trustee as Registrar and
Paying Agent for the Securities.

                                       12

<PAGE>

                  SECTION 2.4 Paying Agent To Hold Money in Trust. By no later
than 11:00 a.m. (New York City time) on the date on which any Principal or
interest (including any Additional Interest) on any Security is due and payable,
the Company shall deposit with the Paying Agent a sum sufficient to pay such
Principal or interest (including any Additional Interest) when due. The Company
shall require each Paying Agent (other than the Trustee) to agree in writing
that such Paying Agent shall hold in trust for the benefit of Holders or the
Trustee all money held by such Paying Agent for the payment of Principal of or
interest (including any Additional Interest) on the Securities and shall notify
the Trustee in writing of any default by the Company in making any such payment.
If either of the Company or any of its Subsidiaries acts as Paying Agent, it
shall segregate the money held by it as Paying Agent and hold it as a separate
trust fund. The Company at any time may require a Paying Agent (other than the
Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section 2.4, the Paying
Agent (if other than the Company or a Subsidiary) shall have no further
liability for the money delivered to the Trustee. Upon any bankruptcy,
reorganization or similar proceeding with respect to the Company, the Trustee
shall serve as Paying Agent for the Securities.

                  SECTION 2.5 Holder Lists. The Trustee shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of Holders. If the Trustee is not the Registrar, the
Company shall cause the Registrar to furnish to the Trustee, in writing at least
five Business Days before each interest payment date and at such other times as
the Trustee may request in writing, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Holders.

                  SECTION 2.6 Transfer and Exchange. With respect to any
proposed registration of transfer of a Global Security prior to the date which
is two years after the later of the date of its original issue and the last date
on which the Company or any Affiliate of the Company was the owner of such
Security (or any predecessor thereto) (the "Resale Restriction Termination
Date"), a registration of transfer shall be made upon the representation of the
transferee in the form as set forth on the reverse of the Security that it is
purchasing for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A, and is aware that the sale
to it is being made in reliance on Rule 144A and acknowledges that it has
received such information regarding the Company as the transferee has requested
pursuant to Rule 144A or has determined not to request such information and that
it is aware that the transferor is relying upon the foregoing representations in
order to claim the exemption from registration provided by Rule 144A.

                  (a)      Restrictive Legend. Upon the transfer, exchange or
replacement of Securities not bearing a Restrictive Legend, the Registrar shall
deliver Securities that do not bear a Restrictive Legend. Upon the transfer,
exchange or replacement of Securities bearing a Restrictive Legend, the
Registrar shall deliver only Securities that bear a Restrictive Legend unless
there is delivered to the Registrar an Opinion of Counsel to the effect that
neither such legend nor the related restrictions on transfer are required in
order to maintain compliance with the provisions of the Securities Act. The
Registrar shall not register a transfer of any Security that does not comply
with the applicable provisions of this Indenture.

                                       13

<PAGE>

                  (b)      Copies. The Registrar shall retain copies of all
letters, notices and other written communications received pursuant to Section
2.1 or this Section 2.6. The Company shall have the right to inspect and make
copies of all such letters, notices or other written communications at any
reasonable time upon the giving of reasonable written notice to the Registrar.

                  (c)      Obligations with Respect to Transfers and Exchanges
of Securities.

                           (i)      To permit registrations of transfers and
         exchanges, the Company shall, subject to the other terms and conditions
         of this Article II, execute and the Trustee shall authenticate
         Definitive Securities and Global Securities at the Registrar's request.

                           (ii)     No service charge shall be made to a Holder
         for any registration of transfer or exchange, but the Company may
         require payment of a sum sufficient to cover any transfer tax,
         assessment, or similar governmental charge payable in connection
         therewith (other than any such transfer taxes, assessments or similar
         governmental charges payable upon exchange or transfer pursuant to
         Sections 3.6 or 9.5).

                           (iii)    The Registrar shall not be required to
         register the transfer of or exchange of any Security for a period
         beginning (1) 15 days before the mailing of a notice of an offer to
         repurchase or redeem Securities and ending at the close of business on
         the day of such mailing or (2) 15 days before an interest payment date
         and ending on such interest payment date.

                           (iv)     Prior to the due presentation for
         registration of transfer of any Security, the Company, the Trustee, the
         Paying Agent or the Registrar may deem and treat the person in whose
         name a Security is registered as the absolute owner of such Security
         for the purpose of receiving payment of Principal of and interest on
         such Security and for all other purposes whatsoever, whether or not
         such Security is overdue, and none of the Company, the Trustee, the
         Paying Agent or the Registrar shall be affected by notice to the
         contrary.

                           (v)      Any Definitive Security delivered in
         exchange for an interest in a Global Security pursuant to Section
         2.1(d) shall bear the legend regarding transfer restrictions applicable
         to the Definitive Security set forth in Section 2.1(c).

                           (vi)     All Securities issued upon any transfer or
         exchange pursuant to the terms of this Indenture shall be the valid and
         legally binding obligation of the Company, shall evidence the same debt
         and shall be entitled to the same benefits under this Indenture as the
         Securities surrendered upon such transfer or exchange.

                           (vii)    All certificates, certifications and
         opinions of counsel required to be submitted to the Registrar pursuant
         to this Section 2.6 to effect any transfer or exchange may be submitted
         by facsimile transmission, with the original to follow by first class
         mail or hand delivery.

                  (d)      No Obligation of the Trustee. (i) The Trustee shall
have no responsibility or obligation to any beneficial owner of a Global
Security, a member of, or a participant in, DTC or

                                       14

<PAGE>

other Person in respect of any aspect of the records, or for maintaining,
supervising or reviewing any records, relating to beneficial ownership interests
of a Global Security, with respect to the accuracy of the records of DTC or its
nominee or of any participant or member thereof, with respect to any ownership
interest in the Securities or with respect to the delivery to any participant,
member, beneficial owner or other Person (other than DTC) of any notice
(including any notice of redemption) or the payment of any amount or delivery of
any Securities (or other security or property) under or with respect to such
Securities. All notices and communications to be given to the Holders and all
payments to be made to Holders in respect of the Securities shall be given or
made only to or upon the order of the Holders (which shall be DTC or its nominee
in the case of a Global Security). The rights of beneficial owners in any Global
Security shall be exercised only through DTC subject to the applicable rules and
procedures of DTC. The Trustee and the Company may conclusively rely and shall
be fully protected in relying upon information furnished by DTC with respect to
its members, participants and any beneficial owners.

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

                  (e)      Transfer and Exchange of Global Securities. A Global
Security may not be transferred as a whole except by DTC to a nominee of DTC, by
a nominee of DTC to DTC or to another nominee of DTC, or by the DTC or any such
nominee to a successor depositary or to a nominee of such successor depositary.

                  (f)      Accrual of Interest on the Exchange Security;
Exchange of Exchange Securities.

                           (i)      Interest on any Exchange Security shall
         accrue from the dates provided in Exhibit B.

                           (ii)     Subject to Section 2.1(e), upon the
         occurrence of the exchange offer in accordance with the Registration
         Rights Agreement, the Company shall issue and, upon receipt of an
         authentication order in accordance with Section 2.2, the Trustee shall
         authenticate, one or more Exchange Global Securities in an aggregate
         principal amount equal to the principal amount of the beneficial
         interests in the Initial Securities or Additional Securities tendered
         for acceptance by Persons that certify in the applicable letters of
         transmittal that (x) they are not broker-dealers, (y) they are not
         participating in a distribution of the Exchange Securities and (z) they
         are not affiliates (as defined in Rule 144 under the Securities Act) of
         the Company, and accepted for exchange in the exchange offer.
         Concurrently with the issuance of such Securities, the Trustee shall
         cause the aggregate principal amount of the applicable Initial
         Securities in the form of Global Securities and/or Additional
         Securities in the form of Global Securities to be reduced accordingly.

                                       15

<PAGE>

                  SECTION 2.7 Form of Certificates to be Delivered in Connection
with Transfers Pursuant to Rule 144A. Attached hereto as Exhibit C is the
certificate to be delivered in connection with transfers pursuant to Rule 144A
(the "Rule 144A Certificate").

                  SECTION 2.8 Business Days. If a payment date is on a date that
is not a Business Day, payment shall be made on the next succeeding day that is
a Business Day, and no interest shall accrue on such payment for the intervening
period. If a regular record date is on a day that is not a Business Day, the
record date shall not be affected.

                  SECTION 2.9 Replacement Securities. If a mutilated Security is
surrendered to the Registrar or if the Holder of a Security shall provide the
Company and the Trustee with evidence to their satisfaction that the Security
has been lost, destroyed or wrongfully taken, the Company shall issue and the
Trustee shall authenticate a replacement Security if the requirements of Section
8-405 of the Uniform Commercial Code are met and the Holder satisfies any other
reasonable requirements of the Trustee. In addition, such Holder shall furnish
an indemnity or surety bond sufficient in the judgment of the Company and the
Trustee to protect the Company, the Trustee, the Paying Agent and the Registrar
from any loss which any of them may suffer if a Security is replaced. The
Company and the Trustee may charge the Holder for their expenses in replacing a
Security, including reasonable fees and expenses of counsel. Every replacement
Security is an additional obligation of the Company.

                  SECTION 2.10 Outstanding Securities. Securities outstanding at
any time are all Securities authenticated by the Trustee except for those
canceled, those delivered for cancellation and those described in this Section
2.10 as not outstanding. A Security does not cease to be outstanding because the
Company or an Affiliate of the Company holds the Security.

                  If a Security is replaced pursuant to Section 2.9, it ceases
to be outstanding unless the Trustee and the Company receive proof satisfactory
to them that the replaced Security is held by a bona fide purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, on a redemption date or maturity date money
sufficient to pay all Principal and interest payable on that date with respect
to the Securities (or portions thereof) to be redeemed or maturing, as the case
may be, then on and after that date such Securities (or portions thereof) cease
to be outstanding and interest on them ceases to accrue.

                  SECTION 2.11 Temporary Securities. Until definitive Securities
are ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be substantially
in the form of definitive Securities but may have variations that the Company
considers appropriate for temporary Securities. Without unreasonable delay, the
Company shall prepare and the Trustee shall authenticate definitive Securities.
After the preparation of definitive Securities, the temporary Securities shall
be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency maintained by the Company for that purpose
and such exchange shall be without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute,
and the Trustee shall authenticate and deliver in exchange therefor, one or more
definitive Securities representing an equal principal amount of Securities.
Until so

                                       16

<PAGE>

exchanged, the Holder of temporary Securities shall in all respects be entitled
to the same benefits under this Indenture as a Holder of definitive Securities.

                  SECTION 2.12 Cancellation. The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee for cancellation any Securities surrendered to them
for registration of transfer or exchange or payment. The Trustee and no one else
shall cancel (subject to the record retention requirements of the Exchange Act)
all Securities surrendered for registration of transfer or exchange, payment or
cancellation and, upon the request of the Company, deliver a certificate of such
cancellation to the Company. The Company may not issue new Securities to replace
Securities it has redeemed, paid or delivered to the Trustee for cancellation,
which shall not prohibit the Company from issuing any Additional Securities, or
any Exchange Securities in exchange for Initial Securities. All cancelled
Securities held by the Trustee may be disposed of by the Trustee in accordance
with its then customary practices and procedures, unless the Company directs
otherwise.

                  SECTION 2.13 Defaulted Interest. If the Company defaults in a
payment of interest on the Securities, the Company shall pay defaulted interest
plus interest on such defaulted interest to the extent lawful at the rate
specified therefor in the Securities in any lawful manner. The Company may pay
the defaulted interest to the Persons who are Holders on a subsequent special
record date. The Company shall fix or cause to be fixed any such special record
date and payment date to the reasonable satisfaction of the Trustee which
specified record date shall not be less than 10 days prior to the payment date
for such defaulted interest and shall promptly mail or cause to be mailed to
each Holder a notice that states the special record date, the payment date and
the amount of defaulted interest to be paid. The Company shall notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each Security and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such defaulted interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the date of
the proposed payment, such money when so deposited to be held in trust for the
benefit of the Person entitled to such defaulted interest as provided in this
Section 2.13.

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

                  SECTION 2.15 Issuance of Additional Securities. The Company
shall be entitled to issue, from time to time, Additional Securities under this
Indenture which shall have identical terms as the Initial Securities issued on
the Issue Date or the Exchange Securities exchanged therefor (in each case,
other than with respect to the date of issuance, issue price and amount of
interest payable on the first payment date applicable thereto), as the case may
be. The

                                       17

<PAGE>

Initial Securities issued on the Issue Date, any Additional Securities and all
Exchange Securities issued in exchange therefor shall be treated as a single
class for all purposes under this Indenture.

                  With respect to any Additional Securities, the Company shall
set forth in a resolution of the Board of Directors and an Officers'
Certificate, a copy of each shall be delivered to the Trustee, the following
information:

                  (i)      the aggregate principal amount of such Additional
Securities to be authenticated and delivered pursuant to this Indenture;

                  (ii)     the issue price, the issue date and the "CUSIP" and
"ISIN" number of any such Additional Securities and the amount of interest
payable on the first payment date applicable thereto;

                  (iii)    whether such Additional Securities shall be transfer
restricted securities and issued in the form of Initial Securities as set forth
in Exhibit A to this Indenture or shall be issued in the form of Exchange
Securities as set forth in Exhibit B to this Indenture; and

                  (iv)     if applicable, the Resale Restriction Termination
Date for such Additional Securities.

                  SECTION 2.16 One Class of Securities. The Initial Securities,
any Additional Securities and the Exchange Securities shall vote and consent
together on all matters as one class; and none of the Initial Securities, any
Additional Securities and the Exchange Securities shall have the right to vote
or consent as a separate class on any matter. The Initial Securities, any
Additional Securities and the Exchange Securities shall together be deemed to be
a single series under this Indenture.

                                  ARTICLE III

                                   Redemption

                  SECTION 3.1 Notices to Trustee. If the Company elects to
redeem Securities pursuant to Section 5 of the Securities, it shall notify the
Trustee in writing of the redemption date and the principal amount of Securities
to be redeemed.

                  The Company shall give each notice to the Trustee provided for
in this Section 3.1 at least 60 days (45 days in the case of redemption of all
the Securities) before the redemption date unless the Trustee consents to a
shorter period. Such notice shall be accompanied by an Officers' Certificate
from the Company to the effect that such redemption will comply with the
conditions herein. The record date, if any, relating to such redemption shall be
selected by the Company and set forth in the related notice given to the
Trustee, which record date shall be not less than 15 days prior to the date
selected for redemption by the Company.

                  SECTION 3.2 Selection of Securities to be Redeemed. If fewer
than all the Securities then outstanding are to be redeemed, the Trustee shall
select the Securities to be redeemed by a method that complies with applicable
legal and securities exchange requirements,

                                       18

<PAGE>

if any, and that the Trustee considers, in its discretion, to be fair and
appropriate in accordance with methods generally used at the time of selection
by fiduciaries in similar circumstances. The Trustee shall make the selection
from outstanding Securities not previously called for redemption. The Trustee
may select for redemption portions of the Principal of Securities that have
denominations larger than $1,000. Securities and portions of them that the
Trustee selects shall be in amounts of $1,000 or a whole multiple of $1,000.
Provisions of this Indenture that apply to Securities called for redemption also
apply to portions of Securities called for redemption. The Trustee shall notify
the Company of the Securities or portions of Securities to be redeemed.

                  SECTION 3.3 Notice of Redemption. At least 30 days but not
more than 60 days before a date for redemption of Securities, notice of
redemption shall be mailed by first-class mail to each Holder of Securities to
be redeemed.

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

                           (1)      the redemption date;

                           (2)      the redemption price (or the method of
         calculating such price) and the amount of accrued interest to be paid,
         if any;

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

                           (4)      that Securities called for redemption must
         be surrendered to the Paying Agent to collect the redemption price plus
         accrued and unpaid interest, if any;

                           (5)      if fewer than all the outstanding Securities
         are to be redeemed, the Bond No. (if certificated) and principal
         amounts of the particular Securities to be redeemed;

                           (6)      that, unless the Company defaults in making
         such redemption payment, interest on Securities (or portion thereof)
         called for redemption ceases to accrue on and after the redemption
         date;

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

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

                  At the Company's request, the Trustee shall give the notice of
redemption in the name of the Company and at the Company's expense. In such
event, the Company shall provide the Trustee with the information required by
this Section 3.3.

                  SECTION 3.4 Effect of Notice of Redemption. Once notice of
redemption is mailed in accordance with Section 3.3, Securities called for
redemption shall become due and payable on the redemption date and at the
redemption price as stated in the notice. Upon

                                       19

<PAGE>

surrender to the Paying Agent on or after the redemption date, such Securities
shall be paid at the redemption price stated in the notice, plus accrued and
unpaid interest to the redemption date; provided, that the Company shall have
deposited the redemption price with the Paying Agent or the Trustee on or before
11:00 a.m. (New York City time) on the date of redemption; provided further that
if the redemption date is after a regular record date and on or prior to the
interest payment date, the accrued and unpaid interest shall be payable to the
Holder of the redeemed Securities entitled to the redemption price. Failure to
give notice or any defect in the notice to any Holder shall not affect the
validity of the notice to any other Holder.

                  SECTION 3.5 Deposit of Redemption Price. By no later than
11:00 a.m. (New York City time) on the date of redemption, the Company shall
deposit with the Paying Agent (or, if the Company or any of its Subsidiaries is
the Paying Agent, shall segregate and hold in trust) money sufficient to pay the
redemption price of and accrued and unpaid interest on all Securities to be
redeemed on that date other than Securities or portions of Securities called for
redemption which are owned by the Company or a Subsidiary and have been
delivered by the Company or such Subsidiary to the Trustee for cancellation.

                  Unless the Company defaults in the payment of such redemption
price, interest on the Securities to be redeemed will cease to accrue on and
after the applicable redemption date, whether or not such Securities are
presented for payment.

                  SECTION 3.6 Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Company shall execute and the Trustee
shall authenticate for the Holder thereof (at the Company's expense) a new
Security, equal in a principal amount to the unredeemed portion of the Security
surrendered.

                                   ARTICLE IV

                                    Covenants

                  SECTION 4.1 Payment of Securities. The Company covenants and
agrees that it will promptly pay the Principal of and interest (including
Additional Interest) on the Securities and the redemption price as and when due,
on the dates and in the manner provided in the Securities and in this Indenture.
Principal and interest (including Additional Interest) shall be considered paid
on the date due if, on or before 11:00 a.m. (New York City time) on such date,
the Trustee or the Paying Agent (or, if the Company or any of its Subsidiaries
is the Paying Agent, the segregated account or separate trust fund maintained by
the Company or such Subsidiary pursuant to Section 2.4) holds in accordance with
this Indenture money sufficient to pay all Principal and interest (including
Additional Interest) then due. If any Additional Interest is due, the Company
shall deliver an Officers' Certificate to the Trustee setting forth the
Additional Interest per $1,000 aggregate principal amount of Securities.

                  The Company shall pay interest on overdue Principal at the
rate specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful as provided in
Section 2.13.

                                       20

<PAGE>

                  Notwithstanding anything to the contrary contained in this
Indenture, the Company or the Paying Agent may, to the extent it is required to
do so by law, deduct or withhold income or other similar taxes imposed by the
United States of America or other domestic or foreign taxing authorities from
Principal or interest payments hereunder.

                  SECTION 4.2 Maintenance of Office or Agency. The Company will
maintain an office or agency in the United States where Securities may be
presented or surrendered for payment, where Securities may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served. Such
office or agency will initially be the office of the Trustee located at 59
Maiden Lane, New York, NY 10038. The Company will give prompt written notice to
the Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
address of the Trustee set forth in Section 10.2, and the Company hereby
appoints the Trustee as its agent to receive all such presentations, surrenders,
notices and demands.

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

                  SECTION 4.3 Money for Security Payments to Be Held in Trust.
If the Company shall at any time act as its own Paying Agent, it will, on or
before each due date of the Principal of and premium, if any, or interest on any
of the Securities, segregate and hold in trust for the benefit of the Persons
entitled thereto a sum sufficient to pay the Principal (and premium, if any) or
interest 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, it
will, on or prior to each due date of the Principal of and premium, if any, or
interest on any Securities, deposit with the Paying Agent or Paying Agents a sum
sufficient to pay the Principal, premium, if any, or interest so becoming due,
such sum to be held in trust for the benefit of the Persons entitled to such
Principal, premium, if any, or interest, 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
         the Principal of and premium, if any, or interest on Securities in
         trust for the benefit of the Persons entitled

                                       21

<PAGE>

         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 Securities) in the making of
         any payment of Principal and premium, if any, or interest; 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 money.

                  Any money deposited with the Trustee or any Paying Agent, or
then held by the Company in trust for the payment of the Principal of and
premium, if any, or interest on any Security and remaining unclaimed for two
years after such Principal and premium, if any, or interest has become due and
payable shall be paid to the Company on Company Order, or, if then held by the
Company, shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, 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 disseminated once, in a press release through
Dow Jones & Company, Inc. or Bloomberg Business News (or any successor or
similar organization), notice that such money remains unclaimed and that, after
a date specified therein, which shall not be less than 30 days from the date of
such publication, any unclaimed balance of such money then remaining will be
repaid to the Company.

                  SECTION 4.4 Statements of Officers of Company as to Default;
Notice of Default. (a) The Company will deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company ending after the date hereof, a
certificate, signed by the principal executive officer, principal financial
officer, or principal accounting officer, stating whether or not to the best
knowledge of the signers thereof the Company is in Default (without regard to
periods of grace or requirements of notice) in the performance and observance of
any of the terms, provisions and conditions hereof, and if the Company shall be
in Default, specifying all such Defaults and the nature and status thereof of
which they may have knowledge.

                  (a)      The Company shall file with the Trustee written
notice of the occurrence of any Default or Event of Default within five Business
Days of its becoming aware of any such Default or Event of Default.

                                       22

<PAGE>

                  SECTION 4.5 Existence. Subject to Article VIII, the Company
will do or cause to be done all things necessary to preserve and keep in full
force and effect its existence, rights (charter and statutory) and franchises
and those of each of its Significant Subsidiaries; provided, however, that the
Company shall not be required to preserve any such right or franchise if its
Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company or the business of any
Subsidiary and that the loss thereof is not disadvantageous in any material
respect to the Holders.

                  SECTION 4.6 Maintenance of Properties. The Company will cause
all properties used or useful in the conduct of its business or the business of
any Significant 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 reasonable 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 from discontinuing the operation or
maintenance of any of such properties if such discontinuance is, in the
reasonable judgment of the Company, desirable in the conduct of its business or
the business of any Significant Subsidiary and not disadvantageous in any
material respect to the Holders.

                  SECTION 4.7 Payment of Taxes and Other Claims. The Company
shall pay or discharge or cause to be paid or discharged, before the same shall
become delinquent, (1) all taxes, assessments and governmental charges
(including withholding taxes and any penalties, interest and additions to taxes)
levied or imposed upon the Company or any Subsidiary or upon the income, profits
or property of the Company or any Subsidiary, and (2) all material 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 shall 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 and for
which disputed amounts adequate reserves have been made.

                  SECTION 4.8 Further Instruments and Acts. Upon request of the
Trustee, the Company will execute and deliver such further instruments and
perform such further acts as may be reasonably necessary or proper to carry out
more effectively the purposes of this Indenture.

                  SECTION 4.9 Limitation on Liens. (a) The Company will not, and
will not permit any Subsidiary to, incur, issue, assume or Guaranty any
Indebtedness if such Indebtedness is secured by Lien on any shares of Voting
Stock of any Significant Subsidiary, whether such Voting Stock is now owned or
shall hereafter be acquired, without providing that the Securities (together
with, if the Company shall so determine, any other Indebtedness or obligations
of the Company or any Subsidiary ranking equally with such Securities and then
existing or thereafter created) shall be secured equally and ratably with such
Indebtedness. For the purposes of the foregoing, pledging, placing a lien on or
creating a security interest in any shares of Voting Stock of a Significant
Subsidiary in order to secure then outstanding Indebtedness of the Company or
any Subsidiary shall be deemed to be the incurrence, issuance, assumption or
Guaranty (as the case may be) of such Indebtedness.

                                       23

<PAGE>

                  (b)      The foregoing limitation shall not apply to (i) up to
$10 million of Indebtedness not contemplated by clauses (ii) and (iii), (ii)
Indebtedness secured by a Lien on any shares of Voting Stock of any corporation
if such Lien is made or granted prior to or at the time such corporation becomes
a Significant Subsidiary, (iii) Liens securing Indebtedness of a Significant
Subsidiary to the Company or another Significant Subsidiary or (iv) the
extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in the foregoing
clauses (ii) and (iii) but only if the principal amount of Indebtedness secured
by the Liens immediately prior to the extension, renewal or replacement is not
increased and the Lien is not extended to other property.

                  SECTION 4.10 Limitations on Disposition of Stock of
Significant Subsidiaries. The Company will not, and will not permit any
Subsidiary to, sell, transfer or otherwise dispose of any shares of Capital
Stock of any Significant Subsidiary (or of any Subsidiary having direct or
indirect control of any Significant Subsidiary) except for, subject to the
covenant relating to mergers and sales of assets described in Section 5.1, (i) a
sale, transfer or other disposition of any Capital Stock of any Significant
Subsidiary (or of any Subsidiary having direct or indirect control of any
Significant Subsidiary) to a Wholly Owned Subsidiary of the Company or (ii) a
sale, transfer or other disposition for at least fair value (as determined by
the Board of Directors acting in good faith) of any of the Capital Stock of any
Significant Subsidiary (or of any Subsidiary having direct or indirect control
of any Significant Subsidiary) held by the Company and its Subsidiaries, and in
either such case, after giving effect to the use of proceeds therefrom, the
Company and its Subsidiaries, considered as a whole, would continue to be
principally engaged in the business the Company and its Subsidiaries conduct as
of February 11, 2004.

                  SECTION 4.11 Waiver of Certain Covenants. The Company may omit
in any particular instance to comply with any term, provision or condition set
forth in this Article IV (other than Sections 4.1 through 4.4, inclusive), if
before the time for such compliance the Holders of at least a majority (or such
greater amount as may be specified in any such term, provision or condition) in
Principal amount of the Outstanding Securities shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Company and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

                  SECTION 4.12 SEC Reports. The Company will comply with all the
applicable provisions of Section 314(a) of the Trust Indenture Act. Delivery of
such information, documents or reports to the Trustee pursuant to such
provisions is for informational purposes only, and the Trustee's receipt thereof
shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of the covenants hereunder (as to which the Trustee is
entitled to rely exclusively on the Officers' Certificate).

                                       24

<PAGE>

                                   ARTICLE V

                    Consolidation, Merger and Sale of Assets

                  SECTION 5.1 Company May Consolidate, Etc., Only on Certain
Terms. The Company shall not consolidate with or merge into another corporation
or sell or lease all or substantially all its assets to another corporation,
unless:

                           (1)      either the Company is the continuing
         corporation, or the successor corporation (if other than the Company)
         expressly assumes by supplemental indenture the obligations evidenced
         by the Securities (in which case, except in the case of such a lease,
         the Company will be discharged therefrom; provided that any successor
         corporation must be a corporation organized and existing under the laws
         of the United States of America, any State thereof or the District of
         Columbia); and

                           (2)      immediately thereafter, the Company or the
         successor corporation (if other than the Company) would not be in
         default in the performance of any covenant or condition contained
         herein.

                  SECTION 5.2 Successor Substituted for Company. Upon any
consolidation of the Company with, or merger of the Company into, any other
Person or any conveyance, transfer or lease of all or substantially all the
properties and assets of the Company in accordance with Section 5.1, the
successor Person formed by such consolidation or into which the Company is
merged or to which such conveyance, transfer or lease is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture with the same effect as if such successor Person had been
named as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

                                   ARTICLE VI

                              Defaults and Remedies

                  SECTION 6.1 Events of Default. "Event of Default," wherever
used herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order or any court or
any order, rule or regulation of any administrative or governmental body):

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

                           (2)      default by the Company in the payment of the
         Principal of or premium, if any, on, or the redemption price on, any
         Security when the same becomes due and payable at its Maturity Date; or

                                       25

<PAGE>

                           (3)      default by the Company in the performance,
         or breach, of any covenant or warranty of the Company in this Indenture
         (other than a covenant or warranty a default in whose performance or
         whose breach is elsewhere in this Section specifically dealt with), and
         continuance of such default or breach for a period of 30 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 Securities then outstanding 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

                           (4)      (A) the failure by the Company or any
         Subsidiary to pay Indebtedness in an aggregate principal amount
         exceeding $10 million at the later of final maturity or upon expiration
         of any applicable grace period with respect to such principal amount,
         or (B) acceleration of the maturity of any Indebtedness of the Company
         or any Subsidiary, in excess of $10 million, if such failure to pay is
         not discharged or such acceleration is not annulled within 10 days
         after due notice; or

                           (5)      a decree or order by a court having
         jurisdiction in the premises shall have been entered adjudging the
         Company or any Significant Subsidiary as bankrupt or insolvent, or
         approving as properly filed a petition seeking reorganization or
         rehabilitation of the Company or any Significant Subsidiary under any
         Bankruptcy Law, and such decree or order shall have continued
         undischarged and unstayed for a period of 60 days; or a decree or order
         of a court having jurisdiction in the premises for the appointment of a
         receiver or rehabilitator or custodian or sequestrator or liquidator or
         trustee or assignee in bankruptcy or insolvency of the Company or any
         Significant Subsidiary or of their respective property or other similar
         official, or for the winding up or liquidation of their respective
         affairs, shall have been entered, and such decree or order shall have
         remained in force undischarged and unstayed for a period of 60 days; or

                           (6)      the Company or any Significant Subsidiary
         shall institute proceedings to be adjudicated a voluntary bankrupt, or
         shall consent to the filing of a bankruptcy proceeding against any of
         them, or shall file a petition or answer or consent seeking
         reorganization or rehabilitation under any Bankruptcy Law, or shall
         consent to the filing of any such petition, or shall consent to the
         appointment of a receiver or rehabilitator or custodian or sequestrator
         or liquidator or trustee or assignee in bankruptcy or insolvency of the
         Company or any Significant Subsidiary or of their respective property
         or other similar official, or shall make an assignment for the benefit
         of creditors, or shall admit in writing its inability to pay their
         respective debts generally as they become due; or

                           (7)      the entry against the Company or any
         Significant Subsidiary of one or more judgments, decrees or orders by a
         court having jurisdiction in the premises from which no appeal may be
         or is taken for the payment of money, either individually or in the
         aggregate, in excess of $10 million and the continuance of such
         judgment, decree or order unsatisfied and in effect for any period of
         60 consecutive days without a stay of execution and there has been
         given, by registered or certified mail in the manner set forth in
         Section 10.2, to the Company by the Trustee or to the Company and the
         Trustee by the

                                       26

<PAGE>

         Holders of not less than 25% in principal amount of the Securities then
         outstanding a written notice specifying such entry and continuance of
         such judgment, decree or order and stating that such notice is a
         "Notice of Default" hereunder.

                  SECTION 6.2 Acceleration. If an Event of Default with respect
to the Securities (other than an Event of Default specified in Section 6.1(5) or
(6)) occurs and is continuing, the Trustee by notice to the Company, or the
Holders of at least 25% in aggregate principal amount of the Securities then
outstanding by notice to the Company and the Trustee, may declare the Principal
of and accrued but unpaid interest on all the Securities to be due and payable.
Upon such a declaration, such Principal and interest shall be due and payable
immediately. If an Event of Default specified in Section 6.1(5) or (6) occurs
and is continuing, the Principal of and accrued interest on all the Securities
shall ipso facto become and be immediately due and payable without any
declaration or other act on the part of the Trustee or any Holders. The Holders
of a majority in aggregate principal amount of the Securities then outstanding
by notice to the Trustee may rescind an acceleration and its consequences if the
rescission would not conflict with any judgment or decree (other than a judgment
or decree for the payment of Principal or interest or monies due on the
Securities) and if all existing Events of Default have been cured or waived
except nonpayment of Principal or interest that has become due solely because of
such acceleration and the Trustee has been paid all amounts due to it pursuant
to Section 7.7. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

                  SECTION 6.3 Other Remedies. If an Event of Default with
respect to the Securities occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of Principal of or interest on the
Securities or to enforce the performance of any provision of the Securities or
this Indenture.

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

                  SECTION 6.4 Waiver of Past Defaults. The Holders of a majority
in aggregate principal amount of the Securities then outstanding by notice to
the Trustee may waive any past or existing Default and its consequences except
(i) a Default in the payment of the Principal of, or premium, or interest on a
Security or (ii) a Default in respect of a provision that under Section 9.2
cannot be amended without the consent of each Holder affected. When a Default is
waived, it is deemed cured, and any Event of Default arising therefrom shall be
deemed to have been cured, but no such waiver shall extend to any subsequent or
other Default or impair any consequent right.

                  SECTION 6.5 Control by Majority. Upon provision of security or
indemnity reasonably satisfactory to the Trustee, the Holders of a majority in
aggregate principal amount of the Securities then outstanding may direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee with respect to the Securities or of exercising

                                       27

<PAGE>

any trust or power conferred on the Trustee. However, the Trustee, which may
rely on opinions of counsel, may refuse to follow any direction that conflicts
with law or this Indenture or that the Trustee determines is unduly prejudicial
to the rights of other Holders or would involve the Trustee in personal
liability; provided, however, that the Trustee may take any other action deemed
proper by the Trustee that is not inconsistent with such direction.

                  SECTION 6.6 Limitation on Suits. A Holder of Securities may
not pursue any remedy with respect to this Indenture or the Securities unless:

                           (i)      the Holder gives to the Trustee previous
         written notice stating that an Event of Default has occurred and is
         continuing;

                           (ii)     the Holders of at least 25% in aggregate
         principal amount of the Securities then outstanding make a written
         request to the Trustee to pursue the remedy;

                           (iii)    such Holder or Holders offer to the Trustee
         reasonable indemnity satisfactory to it against any costs, liabilities
         or expenses;

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

                           (v)      the Holders of a majority in aggregate
         principal amount of the Securities then outstanding do not give the
         Trustee a direction inconsistent with the request during such 60-day
         period.

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

                  SECTION 6.7 Rights of Holders To Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of Principal of and interest on the Securities held by such
Holder, on or after the respective due dates expressed in the Securities, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

                  SECTION 6.8 Collection Suit by Trustee. If an Event of Default
specified in Section 6.1(1) or (2) occurs and is continuing, the Trustee may
recover judgment in its own name and as trustee of an express trust against the
Company for the whole amount then due and owing (together with interest on any
unpaid interest to the extent lawful) and the amounts provided for in Section
7.7.

                  SECTION 6.9 Trustee May File Proofs of Claim. The Trustee may
file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company, its creditors or any other obligor upon the
Securities, or any of their creditors or the property of the Company or such
other obligor or their creditors and, unless prohibited by law or applicable
regulations, may vote on behalf of the Holders in any election of a trustee in
bankruptcy or other Person performing similar functions,

                                       28

<PAGE>

and any custodian, receiver, liquidator or similar official, in any such
judicial proceeding is hereby authorized by each Holder to make payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and its counsel, and any other amounts due the Trustee under
Section 7.7.

                  SECTION 6.10 Priorities. Any money or other property collected
by the Trustee pursuant to Article VI hereof, or any money or other property
otherwise distributable in respect of the Company's obligations under this
Indenture, shall be applied in the following order:

                  FIRST: to the Trustee (including any predecessor Trustee) for
         amounts due under Section 7.7;

                  SECOND: to Holders for amounts due and unpaid on the
         Securities for Principal and interest, ratably, without preference or
         priority of any kind, according to the amounts due and payable on the
         Securities for Principal and interest, respectively; and

                  THIRD: to the Company.

                  The Trustee may fix a record date and payment date for any
payment to Holders pursuant to this Section 6.10. At least 15 days before such
record date, the Company shall mail to each Holder and the Trustee a notice that
states the record date, the payment date and amount to be paid.

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

                  SECTION 6.12 Waiver of Stay or Extension Laws. The Company (to
the extent it may lawfully do so) shall not at any time insist upon, or plead,
or in any manner whatsoever claim or take the benefit or advantage of, any stay
or extension law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit
or advantage of any such law, and shall not hinder, delay or impede the
execution of any power herein granted to the Trustee, but shall suffer and
permit the execution of every such power as though no such law had been enacted.

                                       29

<PAGE>

                                  ARTICLE VII

                                     Trustee

                  SECTION 7.1 Duties of Trustee. (a) If an Event of Default has
occurred and is continuing, the Trustee shall exercise the rights and powers
vested in it by this Indenture and use the same degree of care and skill in
their exercise as a prudent Person would exercise or use under the circumstances
in the conduct of such Person's own affairs.

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

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

                           (ii)     in the absence of bad faith on its part, the
         Trustee may conclusively rely, as to the truth of the statements and
         the correctness of the opinions expressed therein, upon Officers'
         Certificates and Opinions of Counsel furnished to the Trustee and
         conforming to the requirements of this Indenture. However, in the case
         of any such Officers' Certificates and Opinions of Counsel which by any
         provision hereof are specifically required to be furnished to the
         Trustee, the Trustee shall examine such Officers' Certificates and
         Opinions of Counsel to determine whether or not they conform to the
         requirements of this Indenture.

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

                           (i)      this subsection does not limit the effect of
         subsections (b) or (f) of this Section 7.1;

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

                           (iii)    the Trustee shall not be liable with respect
         to any action it takes or omits to take in good faith in accordance
         with a direction received by it pursuant to Section 6.5.

                  (d)      Every provision of this Indenture that in any way
relates to the Trustee is subject to subsections (a), (b), (c) and (f) of this
Section 7.1.

                  (e)      The Trustee shall not be liable for interest on any
money or other property received by it or for holding moneys or other property
uninvested, in either case, except as otherwise agreed between the Company and
the Trustee. Money and other property held in trust by the Trustee need not be
segregated from other money or property except to the extent required by law.

                                       30

<PAGE>

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

                  (g)      Every provision of this Indenture relating to the
conduct or affecting the liability of or affording protection to the Trustee
shall be subject to the provisions of this Section 7.1 and to the provisions of
the Trust Indenture Act, where applicable.

                  SECTION 7.2 Rights of Trustee. (a) The Trustee may
conclusively rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. The Trustee need not investigate any
fact or matter stated in the document.

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

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

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

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

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

                  (g)      The Trustee shall not be charged with knowledge of
any Default or Event of Default with respect to the Securities unless either (1)
a Responsible Officer shall have actual knowledge of such Default or Event of
Default or (2) written notice of such Default or Event of Default shall have
been given to a Responsible Officer of the Trustee at the Corporate Trust Office
by the Company or any other obligor on the Securities or by any Holder of the
Securities. Any such notice shall reference this Indenture and the Securities.

                  (h)      The rights, privileges, protections, immunities and
benefits given to the Trustee pursuant to this Indenture, including its rights
to be indemnified, are extended to, and

                                       31

<PAGE>

shall be enforceable by, the Trustee in each of its capacities as Registrar and
Paying Agent, as the case may be, hereunder.

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

                  SECTION 7.3 Individual Rights of Trustee. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company with the same rights it would have if it
were not Trustee. Any Paying Agent or Registrar may do the same with like
rights. However, the Trustee must comply with Sections 7.10 and 7.11.

                  SECTION 7.4 Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities or any offering document, it shall not be
accountable for the Company's use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company in this Indenture or
in any document issued in connection with the sale of the Securities or in the
Securities other than the Trustee's certificate of authentication.

                  SECTION 7.5 Notice of Defaults. If a Default or an Event of
Default occurs with respect to the Securities and is continuing and if it is
known to the Trustee, the Trustee shall mail to each Holder notice of the
Default within 90 days after it is known to a Responsible Officer or written
notice of it is received by a Responsible Officer of the Trustee. Except in the
case of a Default in payment of Principal of or interest on any Security, the
Trustee may withhold the notice if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is not opposed to
the interests of Holders.

                  SECTION 7.6 Reports by Trustee to Holders. As promptly as
practicable after each May 15 beginning with the May 15 following the date of
this Indenture, and in any event prior to July 15 in each year, the Trustee
shall, if required, mail to each Holder a brief report dated as of such May 15
that complies with Section 313(a) of the Trust Indenture Act. The Trustee also
shall comply with Section 313(b) of the Trust Indenture Act. The Trustee shall
promptly deliver to the Company a copy of any report it delivers to Holders
pursuant to this Section 7.6.

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

                  SECTION 7.7 Compensation and Indemnity. The Company covenants
and agrees to pay to the Trustee (and any predecessor Trustee) from time to time
such compensation for its services as the Company and the Trustee shall from
time to time agree in writing. The Trustee's compensation shall not be limited
by any law on compensation of a trustee of an

                                       32

<PAGE>

express trust. The Company shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses (including attorneys' fees and expenses),
disbursements and advances incurred or made by it in accordance with the
provisions of this Indenture, including costs of collection, in addition to such
compensation for its services, except any such expense, disbursement or advance
as may arise from its negligence, willful misconduct or bad faith. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee's agents and counsel. The Trustee shall provide the
Company reasonable notice of any expenditure not in the ordinary course of
business; provided that prior approval by the Company of any such expenditure
shall not be a requirement for the making of such expenditure nor for
reimbursement by the Company thereof. The Company shall indemnify each of the
Trustee, its officers, directors, employees and any predecessor Trustees against
any and all loss, damage, claim, liability or expense (including reasonable
attorneys' fees and expenses), including taxes (other than taxes applicable to
the Trustee's compensation hereunder) incurred by it in connection with the
acceptance or administration of this trust and the performance of its duties
hereunder. The Trustee shall notify the Company promptly of any claim for which
it may seek indemnity. Failure by the Trustee so to notify the Company shall not
relieve the Company of its obligations hereunder, except to the extent that the
Company has been prejudiced by such failure. The Company shall defend the claim
and the Trustee shall cooperate, to the extent reasonable, in the defense of any
such claim, and, if (in the opinion of counsel to the Trustee) the facts and/or
issues surrounding the claim are reasonably likely to create a conflict with the
Company, the Company shall pay the reasonable fees and expenses of separate
counsel to the Trustee. The Company need not reimburse any expense or indemnify
against any loss, liability or expense incurred by the Trustee through the
Trustee's own willful misconduct, negligence or bad faith. The Company need not
pay for any settlement made without its consent, which consent shall not be
unreasonably withheld or delayed.

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

                  The Company's payment obligations pursuant to this Section 7.7
shall survive the satisfaction, discharge and termination of this Indenture, the
resignation or removal of the Trustee and any discharge of this Indenture
including any discharge under any Bankruptcy Law. In addition to and without
prejudice to the rights provided to the Trustee under any of the provisions of
this Indenture, when the Trustee incurs expenses or renders services after the
occurrence of a Default specified in Section 6.1(5) or (6) with respect to the
Company, the expenses and the compensation for the services are intended to
constitute expenses of administration under the Bankruptcy Law.

                  SECTION 7.8 Replacement of Trustee. The Trustee may resign at
any time with 30 days notice to the Company. The Holders of a majority in
principal amount of the Securities then outstanding, may remove the Trustee with
30 days notice to the Trustee and may appoint a successor Trustee, which
successor Trustee shall be reasonably acceptable to the Company. The Company
shall remove the Trustee if:

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

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<PAGE>

                           (ii)     the Trustee is adjudged bankrupt or
         insolvent;

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

                           (iv)     the Trustee otherwise becomes incapable of
         acting.

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

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company and the Company shall pay
all amounts due and owing to the retiring Trustee under Section 7.7 of the
Indenture. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers
and duties of the Trustee under this Indenture. The successor Trustee shall mail
a notice of its succession to Holders affected by such resignation or removal.
The retiring Trustee shall promptly transfer all property held by it as Trustee
to the successor Trustee, subject to the lien provided for in Section 7.7.

                  If a successor Trustee does not take office with respect to
the Securities within 30 days after the retiring Trustee resigns or is removed,
the retiring Trustee or the Holders of 10% in principal amount of the Securities
may petition any court of competent jurisdiction at the expense of the Company
for the appointment of a successor Trustee.

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

                  Notwithstanding the replacement of the Trustee pursuant to
this Section 7.8, the Company's obligations under Section 7.7 shall continue for
the benefit of the retiring Trustee.

                  SECTION 7.9 Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee; provided that such corporation shall
be eligible under this Article VII and Section 310(a) of the Trust Indenture
Act.

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

                                       34

<PAGE>

certificates shall have the full force which it is anywhere in the Securities or
in this Indenture provided that the certificate of the Trustee shall have.

                  SECTION 7.10 Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of Section 310(a) of the Trust Indenture
Act. The Trustee shall have a combined capital and surplus of at least
$10,000,000 as set forth in its most recent published annual report of
condition. The Trustee shall comply with Section 310(b) of the Trust Indenture
Act; provided, however, that there shall be excluded from the operation of
Section 310(b)(1) of the Trust Indenture Act and any indenture or indentures
under which other securities or certificates of interest or participation in
other securities of the Company are outstanding if the requirements for such
exclusion set forth in Section 310(b)(1) of the Trust Indenture Act are met.

                  Nothing herein shall prevent the Trustee from filing with the
SEC the application referred to in the second to last paragraph of Section
310(b) of the Trust Indenture Act.

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

                                  ARTICLE VIII

                       Discharge of Indenture; Defeasance

                  SECTION 8.1 Discharge of Liability on Securities; Defeasance.
With respect to the Securities, (a) when (i) the Company delivers to the Trustee
all outstanding Securities for cancellation or (ii) all outstanding Securities
have become due and payable, whether at maturity or as a result of the mailing
of a notice of redemption pursuant to Article III hereof, or the Securities will
become due and payable at their Stated Maturity within one year, or the
Securities 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, in each case of
this clause (ii), the Company irrevocably deposits or causes to be deposited
with the Trustee funds sufficient to pay at maturity or upon redemption all
outstanding Securities, including interest thereon to maturity or such
redemption date, and if in either case the Company pays all other sums payable
hereunder by the Company, then this Indenture shall, subject to Section 8.1(c),
cease to be of further effect. The Trustee shall acknowledge satisfaction and
discharge of this Indenture on demand of the Company accompanied by an Officers'
Certificate from the Company and an Opinion of Counsel from the Company that all
conditions precedent provided herein for relating to satisfaction and discharge
of this Indenture have been complied with and at the cost and expense of the
Company.

                  (b)      Subject to Sections 8.1(c) and 8.2, the Company at
any time may terminate (i) all of its obligations under the Securities and this
Indenture ("full defeasance option") or (ii) its obligations under Section 4.9
and Section 4.10 and the operation of Section 6.1(4) ("covenant defeasance
option"). The Company may exercise its full defeasance option notwithstanding
its prior exercise of its covenant defeasance option.

                                       35

<PAGE>

                  If the Company exercises its full defeasance option with
respect to the Securities, payment of the Securities may not be accelerated
because of an Event of Default. If the Company exercises its covenant defeasance
option, payment of the Securities may not be accelerated because of an Event of
Default specified in Section 6.1(4).

                  Upon satisfaction of the conditions set forth herein and upon
request of the Company, the Trustee shall acknowledge in writing the discharge
of those obligations that the Company terminates.

                  (c)      Notwithstanding clauses (a) and (b) above, the
Company's and the Trustee's obligations in Sections 2.3, 2.4, 2.5, 2.9, 4.1,
4.2, 4.8, 7.7, 7.8, 8.3, 8.4, 8.5 and 8.6 shall survive until the Securities
have been paid in full. Thereafter, the Company's and the Trustee's obligations
in Sections 7.7, 8.3, 8.4 and 8.5 shall survive.

                  SECTION 8.2 Conditions to Defeasance. The Company may exercise
its full defeasance option or its covenant defeasance option with respect to the
Securities only if:

                           (i)      the Company irrevocably deposits or causes
         to be deposited in trust with the Trustee money or U.S. Government
         Obligations which through the scheduled payment of Principal and
         interest in respect thereof in accordance with their terms will provide
         cash at such times and in such amounts as will be sufficient to pay
         Principal and interest and any other payments when due on all
         outstanding Securities (except Securities replaced pursuant to Section
         2.9) to maturity or redemption, as the case may be, as evidenced by a
         certificate from a nationally recognized firm of independent
         accountants delivered to the Trustee expressing their opinion that the
         payments of Principal and interest when due and without reinvestment on
         the deposited U.S. Government Obligations plus any deposited money
         without investment will provide cash at such times and in such amounts
         as will be sufficient to pay Principal and interest when due on all
         outstanding Securities (except Securities replaced pursuant to Section
         2.9) to maturity or redemption, as the case may be;

                           (ii)     No Default or Event of Default with respect
         to such Securities shall have occurred and be continuing on the date of
         such deposit or, insofar as Sections 6.1(5) or 6.1(6) are concerned, at
         any time on or prior to the 90th day after the date of such deposit (it
         being understood that this condition shall not be deemed satisfied
         until after such 90th day);

                           (iii)    the deposit does not constitute a default
         under any other material agreement binding on the Company;

                           (iv)     the Company delivers to the Trustee an
         Opinion of Counsel to the effect that either (i) as a result of the
         deposit, 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 or
         (ii) all necessary registrations under said Act have been effected;

                           (v)      in the case of the full defeasance option,
         the Company shall have delivered to the Trustee an Opinion of Counsel
         stating that (i) the Company has received

                                       36

<PAGE>

         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 of Counsel shall confirm
         that, the Holders will not recognize income, gain or loss for federal
         income tax purposes as a result of such deposit and 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
         deposit and defeasance had not occurred;

                           (vi)     in the case of the covenant defeasance
         option, the Company shall have delivered to the Trustee an Opinion of
         Counsel to the effect that the Holders will not recognize income, gain
         or loss for federal income tax purposes as a result of such deposit and
         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 deposit and defeasance had not occurred; and

                           (vii)    the Company delivers to the Trustee an
         Officers' Certificate and an Opinion of Counsel, each stating that all
         conditions precedent to the defeasance and discharge of the Securities
         as contemplated by this Article VIII have been complied with.

                  Before or after a deposit, the Company may make arrangements
satisfactory to the Trustee for the redemption of Securities at a future date in
accordance with Article III.

                  SECTION 8.3 Application of Trust Money. The Trustee shall hold
in trust money or U.S. Government Obligations deposited with it pursuant to this
Article VIII. It shall apply the deposited money and the money from U.S.
Government Obligations either directly or through the Paying Agent as the
Trustee may determine and in accordance with this Indenture to the payment of
Principal of and interest on the Securities.

                  SECTION 8.4 Repayment to the Company. The Trustee and the
Paying Agent shall promptly turn over to the Company upon request any excess
money or securities held by them at any time.

                  Subject to any applicable abandoned property law, the Trustee
and the Paying Agent shall pay to the Company upon written request any money
held by them for the payment of Principal or interest that remains unclaimed for
two years after the date of payment of such Principal and interest, and,
thereafter, Holders entitled to the money must look to the Company for payment
as general creditors.

                  Anything in this Section 8.4 to the contrary notwithstanding,
in the absence of a written request from the Company to return unclaimed funds
to the Company, the Trustee shall from time to time deliver all unclaimed funds
to or as directed by applicable escheat authorities, as determined by the
Trustee in its sole discretion, in accordance with the customary practices and
procedures of the Trustee. Any unclaimed funds held by the Trustee pursuant to
this Section 8.4 shall be held uninvested and without any liability for
interest.

                  SECTION 8.5 Indemnity for Government Obligations. The Company
shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the
principal and interest received on such

                                       37

<PAGE>

U.S. Government Obligations other than any such tax, fee or other charge which
by law is for the account of the Holders of the defeased Securities; provided
that the Trustee shall be entitled to charge any such tax, fee or other charge
to such Holder's account.

                  SECTION 8.6 Reinstatement. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with this
Article VIII by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, the Company's obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with this Article VIII; provided, however, that (a) if
the Company has made any payment of interest on or Principal of any Securities
following the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Obligations held by the Trustee or Paying Agent and (b)
unless otherwise required by any legal proceeding or any order or judgment of
any court or governmental authority, the Trustee or Paying Agent shall return
all such money and U.S. Government Obligations to the Company promptly after
receiving a written request therefor at any time, if such reinstatement of the
Company's obligations has occurred and continues to be in effect.

                                   ARTICLE IX

                                   Amendments

                  SECTION 9.1 Without Consent of Holders. The Company and the
Trustee may amend this Indenture or the Securities without notice to or consent
of any Holder:

                           (i)      to cure any ambiguity, omission, defect or
         inconsistency;

                           (ii)     to comply with Article V;

                           (iii)    to add any additional Events of Default;

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

                           (v)      to add one or more guarantees for the
         benefit of Holders of the Securities;

                           (vi)     to secure the Securities pursuant to the
         terms of this Indenture;

                           (vii)    to add or appoint a successor or separate
         Trustee or other agent;

                           (viii)   to comply with any requirements in
         connection with qualifying this Indenture under the Trust Indenture
         Act;

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<PAGE>

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

                           (x)      to provide for the issuance of the Exchange
         Securities, which will have terms substantially identical in all
         material respects to the Initial Securities (except that the transfer
         restrictions contained in the Initial Securities will be modified or
         eliminated, as appropriate);

                           (xi)     to provide for the issuance of any
         Additional Securities, which will have terms substantially identical in
         all material respects to the Initial Securities or the Exchange
         Securities (in each case, other than with respect to the date of
         issuance, issue price and amount of interest payable on the first
         payment date applicable thereto), as the case may be, and which will be
         treated, together with any outstanding Initial Securities and any
         Additional Securities, as a single issue of Securities; and

                           (xii)    to change any other provision if the change
         does not adversely affect the interests of any Holder.

                  After an amendment under this Section 9.1 becomes effective,
the Company shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section 9.1.

                  SECTION 9.2 With Consent of Holders. The Company and the
Trustee may amend this Indenture or the Securities without notice to any Holder
but with the written consent of the Holders of at least a majority in principal
amount of the Securities then outstanding (including consents obtained in
connection with a tender offer or exchange for Securities). However, without the
consent of each Holder affected, an amendment may not:

                           (i)      change the Stated Maturity of the Principal
         of, or installment of interest on, any Security;

                           (ii)     reduce the principal amount of, or premium,
         if any, or the rate of interest on, or any other amounts due on any
         Securities (including amounts due upon optional redemption or
         otherwise);

                           (iii)    reduce the principal amount of any Security
         that would be due and payable upon a declaration of acceleration of the
         Stated Maturity thereof;

                           (iv)     change the place of payment or the coin or
         currency in which the Principal of or interest on any Security is
         payable;

                           (v)      impair the right of any Holder to institute
         suit for the enforcement of any payment on or after the Stated Maturity
         of any Security;

                                       39

<PAGE>

                           (vi)     reduce the percentage in principal amount of
         the outstanding Securities, the consent of whose Holders is required in
         order to modify or amend the Indenture;

                           (vii)    modify any of the provisions of this
         Indenture regarding the waiver of past defaults and the waiver of
         certain covenants by Holders except to increase any percentage vote
         required or to provide that certain other provisions of the Indenture
         cannot be modified or waived without the consent of the Holder of each
         Security affected thereby; or

                           (viii)   modify any of the above provisions of this
         Section 9.2.

                  It shall not be necessary for the consent of the Holders under
this Section 9.2 to approve the particular form of any proposed amendment, but
it shall be sufficient if such consent approves the substance thereof.

                  After an amendment under this Section 9.2 becomes effective,
the Company shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not
impair or affect the validity of an amendment under this Section 9.2.

                  SECTION 9.3 Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the Trust
Indenture Act as then in effect.

                  SECTION 9.4 Revocation and Effect of Consents and Waivers. A
consent to an amendment or a waiver by a Holder of a Security shall bind the
Holder and every subsequent Holder of that Security or portion of the Security
that evidences the same debt as the consenting Holder's Security, even if
notation of the consent or waiver is not made on the Security. After an
amendment or waiver becomes effective with respect to the Securities, it shall
bind every Holder.

                  The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to give their consent
or take any other action described above or required or permitted to be taken
pursuant to this Indenture. If a record date is fixed, then notwithstanding the
immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be
entitled to give such consent or to revoke any consent previously given or to
take any such action, whether or not such Persons continue to be Holders after
such record date.

                  SECTION 9.5 Notation on or Exchange of Securities. If an
amendment changes the terms of a Security, the Trustee may require the Holder of
the Security to deliver it to the Trustee. The Company shall provide in writing
to the Trustee an appropriate notation to be placed on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determine, the Company in exchange for the Security shall issue
and the Trustee shall authenticate a new Security that reflects the changed
terms. Failure to make the appropriate notation or to issue a new Security shall
not affect the validity of such amendment.

                                       40

<PAGE>

                  SECTION 9.6 Trustee To Sign Amendments. The Trustee shall sign
any amendment authorized pursuant to this Article IX if the amendment does not
adversely affect the rights, duties, liabilities or immunities of the Trustee.
If it does, the Trustee may but need not sign it. In signing such amendment the
Trustee shall be entitled to receive indemnity reasonably satisfactory to it and
to receive, and (subject to Section 7.1) shall be fully protected in relying
upon, in addition to the documents required by Section 10.4, an Officers'
Certificate of the Company and an Opinion of Counsel stating that such amendment
complies with the provisions of this Article IX and that the supplemental
indenture evidencing such amendment constitutes the legal valid and binding
obligation of the Company in accordance with its terms subject to customary
exceptions.

                  SECTION 9.7 Payment for Consent. Neither the Company nor any
affiliate of the Company shall, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fee or otherwise, to any Holder
of a Security for, or as an inducement to any consent, waiver or amendment of
any of the terms or provisions of this Indenture or the Securities unless such
consideration is offered to be paid to all Holders of a Securities that so
consent, waive or agree to amend in the time frame set forth in solicitation
documents relating to such consent, waiver or agreement.

                                   ARTICLE X

                                  Miscellaneous

                  SECTION 10.1 Trust Indenture Act Controls. If any provision of
this Indenture limits, qualifies or conflicts with the duties imposed by, or
with another provision included or which is required to be included in this
Indenture by the Trust Indenture Act, the duty or provision required by the
Trust Indenture Act shall control.

                  SECTION 10.2 Notices. Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail addressed as
follows:

                      if to the Company:

                      Infinity Property and Casualty Corporation
                      2204 Lakeshore Drive
                      Birmingham, Alabama 35209
                      Facsimile Number: 205-803-8487
                      Attention: General Counsel

                      if to the Trustee:

                      American Stock Transfer & Trust Company
                      59 Maiden Lane
                      New York, New York 10038

                      Facsimile Number: 718-331-1852
                      Attention: Corporate Trust Department

                                       41

<PAGE>

                  Any notices between the Company and the Trustee may be by
facsimile or email, receipt confirmed and the original to follow by guaranteed
overnight courier. The Company or the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.

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

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

                  SECTION 10.3 Communication by Holders with other Holders.
Holders may communicate pursuant to Section 312(b) of the Trust Indenture Act
with other Holders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of Section 312(c) of the Trust Indenture Act.

                  SECTION 10.4 Certificate and Opinion as to Conditions
Precedent. Upon any request or application by the Company to the Trustee to take
or refrain from taking any action under this Indenture, the Company shall
furnish to the Trustee:

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

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

                  SECTION 10.5 Statements Required in Certificate or Opinion.
The Officers' Certificate or Opinion of Counsel with respect to compliance with
a covenant or condition provided for in this Indenture shall include:

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

                           (ii)     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;

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

                                       42

<PAGE>

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

                  SECTION 10.6 When Securities Disregarded. In determining
whether the Holders of the required principal amount of Securities have
concurred in any direction, waiver or consent, Securities owned by the Company
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Company (an "Affiliate") shall be
disregarded and deemed not to be outstanding, except that, for the purpose of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Securities which a Responsible Officer of the
Trustee knows are so owned shall be so disregarded. Also, subject to the
foregoing, only Securities outstanding at the time shall be considered in any
such determination.

                  SECTION 10.7 Rules by Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by or a meeting of Holders. The
Registrar and the Paying Agent may make reasonable rules for their functions.

                  SECTION 10.8 Governing Law. THIS INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK APPLICABLE TO CONTRACTS TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

                  SECTION 10.9 No Recourse Against Others. A director, officer,
employee or stockholder (other than the Company), as such, of the Company shall
not have any liability for any obligations of the Company under the Securities,
this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation.

                  SECTION 10.10 Successors. All agreements of the Company in
this Indenture and the Securities shall bind its successors. All agreements of
the Trustee in this Indenture shall bind its successors.

                  SECTION 10.11 Multiple Originals. The parties may sign any
number of copies of this Indenture. Each signed copy shall be an original, but
all of them together represent the same agreement. One signed copy is enough to
prove this Indenture.

                  SECTION 10.12 Variable Provisions. The Company initially
appoints the Trustee as Paying Agent and Registrar and Securities Custodian with
respect to any Global Securities.

                  SECTION 10.13 Qualification of Indenture. The Company shall
qualify this Indenture under the Trust Indenture Act in accordance with the
terms and conditions of the Registration Rights Agreement and shall pay all
reasonable costs and expenses (including attorneys' fees for the Company, the
Trustee and the Holders) incurred in connection therewith, including, but not
limited to, costs and expenses of qualification of this Indenture and the
Securities and printing this Indenture and the Securities. The Trustee shall be
entitled to receive from the Company any such Officers' Certificates, Opinions
of Counsel or other documentation as it may reasonably request in connection
with any such qualification of this Indenture under the Trust Indenture Act.

                                       43

<PAGE>

                  SECTION 10.14 Table of Contents; Headings. The table of
contents, cross-reference sheet and headings of the Articles and Sections of
this Indenture have been inserted for convenience of reference only, are not
intended to be considered a part hereof and shall not modify or restrict any of
the terms or provisions hereof.

                  SECTION 10.15 Separability Clause. In case any provision in
this Indenture or any Security 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.

                                       44

<PAGE>

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

                                        INFINITY PROPERTY AND CASUALTY
                                        CORPORATION

                                        By______________________________________
                                          Name:
                                          Title:

                                        AMERICAN STOCK TRANSFER & TRUST
                                        COMPANY as Trustee

                                        By______________________________________
                                          Name:
                                          Title:

<PAGE>

                                                                       EXHIBIT A

                       [FORM OF FACE OF INITIAL SECURITY]

                   INFINITY PROPERTY AND CASUALTY CORPORATION

                           5.50% SENIOR NOTES DUE 2014

No.1                              Principal Amount $200,000,000,
                                      (subject to adjustment as reflected in the
                                      Schedule of Increases and Decreases in
                                      Global Security attached hereto)

                                                             CUSIP NO. 45665QAB9

                  Infinity Property and Casualty Corporation, an Ohio
corporation, (together with its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company") for value received,
promises to pay to Cede & Co., or registered assigns, the principal sum of Two
Hundred Million Dollars ($200,000,000), subject to adjustment as reflected in
the Schedule of Increases and Decreases in Global Security attached hereto, on
February 18, 2014 at the office or agency of the Company maintained for such
purpose.

                  Interest Payment Dates: February 18 and August 18 of each
year, commencing on August 18, 2004.

                  Record Dates:  February 3 and August 3 of each year.

                  Additional provisions of this Security are set forth on the
other side of this Security.

                  Unless the certificate of authentication hereon has been duly
executed by the Trustee by manual signature of an authorized officer, this
Security shall not be entitled to any benefit under the Indenture, or be valid
for any purpose.

                                      A-1

<PAGE>

                                        INFINITY PROPERTY AND CASUALTY
                                        CORPORATION

                                        By______________________________________
                                          Name:
                                          Title:

TRUSTEE'S CERTIFICATE OF
 AUTHENTICATION

This is one of the Securities referred
to in the within-mentioned Indenture.

AMERICAN STOCK TRANSFER & TRUST COMPANY,
 as Trustee

By_____________________________
  Authorized Signatory

Dated:_______ __, 20__

                                      A-2

<PAGE>

                   [FORM OF REVERSE SIDE OF INITIAL SECURITY]

                              [Reverse of Security]

                           5.50% Senior Notes due 2014

1.       Interest

                  Infinity Property and Casualty Corporation, an Ohio
corporation (together with its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above; provided, however, that if a Registration Default (as defined in the
Registration Rights Agreement defined in paragraph 7 below) occurs, additional
interest will accrue on this Security at a rate of 0.25% per annum. If a
Registration Default occurs and is continuing for a period more than 90 days,
then the amount of additional interest the Company is required to pay on this
Security will increase, effective from and after the 91st day in that period, by
an additional 0.25% per annum until all Registration Defaults have been cured.
However, in no event will the rate of additional interest exceed 0.50% per
annum. Such additional interest is payable in addition to any other interest
payable from time to time with respect to this Security. The Trustee will not be
deemed to have notice of a Registration Default until a Responsible Officer
shall have received actual notice of such Registration Default.

                  The Company will pay interest semiannually on February 18 and
August 18 of each year (each such date, an "Interest Payment Date"), commencing
on August 18. Interest on the Securities will accrue from February 17, 2004, or
from the most recent date to which interest has been paid on the Securities.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

2.       Method of Payment

                  By no later than 11:00 a.m. (New York City time) on the date
on which any Principal of or interest on any Security is due and payable, the
Company shall irrevocably deposit with the Trustee or the Paying Agent money
sufficient to pay such Principal and/or interest. The Company will pay interest
(except defaulted interest and interest on Securities redeemed after a record
date and on or prior to the corresponding interest payment date) to the Persons
who are registered Holders of Securities at the close of business on the
February 18 or August 18 next preceding the interest payment date. Holders must
surrender Securities to a Paying Agent to collect Principal payments. The
Company will pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.
Payments in respect of Securities represented by a Global Security (including
Principal, premium, if any, and interest) will be made by the transfer of
immediately available funds to the accounts specified by The Depository Trust
Company. The Company may make all payments in respect of a Definitive Security
(including Principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof or by wire transfer to an account
located in the United States maintained by the Holder.

                                      A-3

<PAGE>

3.       Paying Agent and Registrar

                  Initially, American Stock Transfer & Trust Company, a New York
corporation (together with its successors and assigns, the "Trustee"), will act
as Paying Agent and Registrar. The Company may appoint and change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its
domestically organized wholly owned Subsidiaries may act as Paying Agent.

4.       Indenture

                  This Security is one of the duly authorized issue of
securities of the Company designated as its 5.50% Senior Notes due 2014 (the
"Securities") limited (except as otherwise provided in the Indenture referred to
below) in the aggregate principal amount of $200.0 million. The Company issued
the Securities under an Indenture dated as of February 17, 2004 (as it may be
amended or supplemented from time to time in accordance with the terms thereof,
the "Indenture"), between the Company and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) as in effect on the date of the Indenture (the "Trust Indenture
Act"). Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture. The Securities are subject to all such terms,
and Holders are referred to the Indenture and the Trust Indenture Act for a
statement of those terms.

                  The Securities are senior obligations of the Company. This
Security is one of the Initial Securities referred to in the Indenture. The
Securities include the Initial Securities issued on the Issue Date, any
Additional Securities issued in accordance with Section 2.15 of the Indenture
and the Exchange Securities issued in exchange for the Initial Securities or
Additional Securities pursuant to the Indenture. The Initial Securities, any
Additional Securities and the Exchange Securities are treated as a single class
of securities under the Indenture. The Indenture imposes certain limitations on
the ability of the Company and its Subsidiaries to create Liens, sell Voting
Stock of Significant Subsidiaries and enter into mergers and consolidations.

5.       Optional Redemption

                  The Securities are redeemable, in whole or in part, at any
time and from time to time, at the option of the Company, at a redemption price
equal to the greater of (i) 100% of the Principal amount of such Securities and
(ii) the sum of the present values of the remaining scheduled payments of
Principal and interest thereon (exclusive of interest accrued to the date of
redemption) discounted to the redemption date on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20
basis points, plus accrued interest thereon to the date of redemption.

                  "Treasury Rate" means, with respect to any redemption date for
the Securities, the rate per annum equal to the semiannual equivalent yield to
maturity or interpolated (on a day count basis) of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

                                      A-4

<PAGE>

                  "Comparable Treasury Issue" means the United States Treasury
security or securities selected by an Independent Investment Banker as having an
actual or interpolated maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Securities to be redeemed.

                  "Comparable Treasury Price" means, with respect to any
redemption date for the Securities, (a) the average of the Reference Treasury
Dealer Quotations for such redemption date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations or (b) if the Trustee
obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such Quotations.

                  "Independent Investment Banker" means one of the Reference
Treasury Dealers appointed by the Trustee after consultation with the Company.

                  "Reference Treasury Dealer" means (x) each of UBS Securities
LLC and Lehman Brothers Inc. or their respective affiliates; provided, however,
that if either of the foregoing shall cease to be a primary U.S. government
securities dealer in the United States (a "Primary Treasury Dealer"), the
Company will substitute therefor another Primary Treasury Dealer and (y) two
other Primary Treasury Dealers selected by the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any redemption date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer as of 3:30
p.m., New York City time, on the third Business Day preceding such redemption
date.

                  Except as set forth above, the Securities will not be
redeemable by the Company prior to maturity.

                  The Securities will not be entitled to the benefit of any
sinking fund.

6.       Notice of Redemption

                  Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date by first-class mail to each Holder
of Securities to be redeemed at his or her registered address. Securities in
denominations of Principal amount larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000. If money sufficient to pay the redemption
price of and accrued and unpaid interest on all Securities (or portions thereof)
to be redeemed on the redemption date is deposited with the Paying Agent on or
before 11:00 a.m. (New York City time) on the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on
such Securities (or such portions thereof) called for redemption.

7.       Registration Rights

                  The Company is party to an Exchange and Registration Rights
Agreement, dated as of February 17, 2004, between the Company and UBS Securities
LLC and Lehman Brothers

                                      A-5

<PAGE>

Inc. (the "Registration Rights Agreement"), pursuant to which the Company is
obligated to pay Additional Interest (as defined therein) upon the occurrence of
certain Registration Defaults (as defined therein).

8.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may register, transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. The Registrar need not register
the transfer of or exchange any Securities selected for redemption (except, in
the case of a Security to be redeemed in part, the portion of the Security not
to be redeemed) for a period beginning 15 days before a selection of Securities
to be redeemed and ending on the date of such selection.

9.       Persons Deemed Owners

                  The registered holder of this Security may be treated as the
owner of it for all purposes.

10.      Unclaimed Money

                  If money for the payment of Principal or interest remains
unclaimed for two years after the date of payment of Principal and interest, the
Trustee or Paying Agent shall pay the money back to the Company at its request
unless an abandoned property law designates another Person. After any such
payment, Holders entitled to the money must look only to the Company and not to
the Trustee for payment.

                  Anything in this Section 10 to the contrary notwithstanding,
in the absence of a written request from the Company to return unclaimed funds
to the Company, the Trustee shall from time to time deliver all unclaimed funds
to or as directed by applicable escheat authorities, as determined by the
Trustee in its sole discretion, in accordance with the customary practices and
procedures of the Trustee.

11.      Defeasance

                  Subject to certain conditions set forth in the Indenture, the
Company at any time may terminate some or all of its obligations under the
Securities and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of Principal of and interest on the
Securities to redemption or maturity, as the case may be.

12.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount of the outstanding Securities
and (ii) any default or noncompliance with any provision of the Indenture or the
Securities may be waived with the written consent of the Holders of a majority
in principal amount of the outstanding Securities. However, the Indenture
requires the consent of each Holder that would be affected for certain specified
amendments or

                                      A-6

<PAGE>

modifications of the Indenture and the Securities. Subject to certain exceptions
set forth in the Indenture, without the consent of any Holder, the Company and
the Trustee may amend the Indenture or the Securities to, among other things,
cure any ambiguity, omission, defect or inconsistency, or to comply with Article
V of the Indenture, or to add any additional Events of Default, or to add
additional covenants of or surrender rights and powers conferred on the Company,
or to add or appoint a successor or separate trustee or other agent, or to
comply with any requirements in connection with qualifying the Indenture under
the Trust Indenture Act, or to provide for uncertificated Securities in addition
to or in place of Definitive Securities, or to change any other provision if the
change does not adversely affect the interests of any Holder.

13.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default in
payment of Principal on the Securities at maturity, upon redemption pursuant to
paragraph 5 of the Securities, upon declaration or otherwise; (ii) default for
30 days in payment of interest on the Securities; (iii) failure by the Company
to comply with other agreements in the Indenture or the Securities for 30 days
after notice; (iv) failure to pay when due or certain accelerations of other
indebtedness of the Company or any Significant Subsidiary in an aggregate amount
of $10,000,000 or more, subject to notice and (v) certain events of bankruptcy
or insolvency involving the Company or any Significant Subsidiary.

                  If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate Principal amount of the Securities
may declare all the Securities to be due and payable immediately. Certain events
of bankruptcy or insolvency are Events of Default which will result in the
Securities being due and payable immediately upon the occurrence of such Events
of Default.

                  Holders may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security reasonably satisfactory
to it. Subject to certain limitations, Holders of a majority in Principal amount
of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event
of Default (except a Default or Event of Default in payment of Principal or
interest) if it in good faith determines that withholding notice is not opposed
to their interest.

14.      Trustee Dealings with the Company

                  Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company and may otherwise deal with the Company
with the same rights it would have if it were not Trustee.

15.      No Recourse Against Others

                  A director, officer, employee or stockholder (other than the
Company), as such, of the Company shall not have any liability for any
obligations of the Company under the Securities, the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation.

                                      A-7

<PAGE>

16.      Authentication

                  This Security shall not be valid until an authorized officer
of the Trustee (or an authenticating agent acting on its behalf) manually signs
the certificate of authentication on the other side of this Security.

17.      Abbreviations

                  Customary abbreviations may be used in the name of a Holder or
an assignee, such as TEN COM (tenants in common), TEN ENT (tenants by the
entirety), JT TEN (joint tenants with rights of survivorship and not as tenants
in common), CUST (custodian) and U/G/M/A (Uniform Gift to Minors Act).

18.      CUSIP Numbers

                  The Company has caused CUSIP numbers and/or other similar
numbers to be printed on the Securities and has directed the Trustee to use
CUSIP numbers and/or other similar numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Securities or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

19.      Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

                                      A-8

<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

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

                  (Insert assignee's soc. sec. or tax I.D. No.)

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

Date:____________________            Your Signature:___________________

Signature Guarantee:______________________________

(Signature must be guaranteed by a participant in a recognized Signature
Guarantee Medallion Program or other signature guarantor program reasonably
acceptable to the Trustee)

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

In connection with any transfer or exchange of any of the Definitive Securities
evidenced by this certificate occurring prior to the date that is two years
after the later of the date of original issuance of such Securities and the last
date, if any, on which such Securities were owned by the Company or any
Affiliate of the Company, the undersigned confirms that such Securities are
being transferred:

CHECK ONE BOX BELOW:

         (1) []   to the Company or any of its Subsidiaries; or

         (2) []   for so long as the Securities are eligible for resale pursuant
                  to Rule 144A under the Securities Act, to a person it
                  reasonably believes is a "Qualified Institutional Buyer" as
                  defined in Rule 144A under the Securities Act that purchases
                  for its own account or for the account of a Qualified
                  Institutional Buyer to whom notice is given that the transfer
                  is being made in reliance on Rule 144A; or

         (3) []   pursuant to Rule 144 under the Securities Act or any other
                  available exemption from the registration requirements of the
                  Securities Act; or

         (4) []   pursuant to a registration statement that has been declared
                  effective under the Securities Act.

Unless one of the boxes is checked, the Trustee may refuse to register any of
the certificated Securities evidenced by this certificate in the name of any
Person other than the registered Holder thereof; provided, however, that if box
(3) is checked, the Trustee may require, prior to registering any such transfer
of the Securities, such legal opinions, certifications and other

                                      A-9

<PAGE>

information as the Company has reasonably requested to confirm that such
transfer is being made pursuant to an exemption from, or in a transaction not
subject to, the registration requirements of the Securities Act of 1933, such as
the exemption provided by Rule 144 under such Act.

                                        ________________________________________
                                                        Signature

Signature Guarantee:

__________________________________      ________________________________________
                                                        Signature

(Signature must be guaranteed by a
participant in a recognized Signature
Guarantee Medallion Program or other
signature guarantor program reasonably
acceptable to the Trustee)

___________________________________________________________________

                                      A-10

<PAGE>

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

                  The undersigned represents and warrants that it is purchasing
this Definitive Security for its own account or an account with respect to which
it exercises sole investment discretion and that it and any such account is a
"qualified institutional buyer" within the meaning of Rule 144A under the
Securities Act of 1933, and is aware that the sale to it is being made in
reliance on Rule 144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested pursuant to Rule 144A or
has determined not to request such information and that it is aware that the
transferor is relying upon the undersigned's foregoing representations in order
to claim the exemption from registration provided by Rule 144A.

Dated:___________________               ________________________________________
                                        NOTICE:  To be executed by an executive
                                                 officer

Signature Guarantee:

________________________________        ________________________________________
                                                      Signature

(Signature must be guaranteed by a
participant in a recognized Signature
Guarantee Medallion Program or other
signature guarantor program reasonably
acceptable to the Trustee)

________________________________________________________

                                      A-11

<PAGE>

                      [TO BE ATTACHED TO GLOBAL SECURITIES]

              SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY

                  The following increases or decreases in this Global Security
have been made:

<TABLE>
<CAPTION>

                                                                            Principal Amount of this   Signature of authorized
Date of   Amount of decrease in Principal  Amount of increase in Principal  Global Security following  officer of Trustee or
Exchange  Amount of this Global Security   Amount of this Global Security   such decrease or increase  Securities Custodian
--------  -------------------------------  -------------------------------  -------------------------  -----------------------
<S>       <C>                              <C>                              <C>                        <C>

</TABLE>

                                      A-12

<PAGE>

                                                                       EXHIBIT B

                       [FORM OF FACE OF EXCHANGE SECURITY]

                   INFINITY PROPERTY AND CASUALTY CORPORATION

                           5.50% SENIOR NOTES DUE 2014

No. __                         Principal Amount $200,000,000,
                                      (subject to adjustment as reflected in the
                                      Schedule of Increases and Decreases in
                                      Global Security attached hereto)

                                                             CUSIP NO. 45665QAC7

                  Infinity Property and Casualty Corporation, an Ohio
corporation, (together with its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company") for value received,
promises to pay to Cede & Co. , or registered assigns, the principal sum of Two
Hundred Million Dollars ($200,000,000) on February 18, 2014.

                  Interest Payment Dates: February 18 and August 18 of each
year, commencing on [________] [first interest payment date relating to Exchange
Securities].

                  Record Dates:  February 3 and August 3 of each year.

                  Additional provisions of this Security are set forth on the
other side of this Security.

                  Unless the certificate of authentication hereon has been duly
executed by the Trustee by manual signature of an authorized officer, this
Security shall not be entitled to any benefit under the Indenture, or be valid
for any purpose.

                             INFINITY PROPERTY AND CASUALTY
                             CORPORATION

                             By_________________________________________
                                Name:
                                Title:

                                      B-1

<PAGE>

TRUSTEE'S CERTIFICATE OF
 AUTHENTICATION

This is one of the Securities referred
to in the within-mentioned Indenture.

AMERICAN STOCK TRANSFER & TRUST COMPANY,
 as Trustee

By_____________________________
  Authorized Officer

Dated:________ ___, 20___

                                      B-2

<PAGE>

                   [FORM OF REVERSE SIDE OF EXCHANGE SECURITY]

                          5.50 % Senior Notes due 2014

1.       Interest

                  Infinity Property and Casualty Corporation, an Ohio
corporation (together with its successors and assigns under the Indenture
hereinafter referred to, being herein called the "Company"), promises to pay
interest on the principal amount of this Security at the rate per annum shown
above.

                  The Company will pay interest semiannually on February 18 and
August 18 of each year (each such date, an "Interest Payment Date"), commencing
on [________] [first interest payment date relating to Exchange Securities].
Interest on the Securities will accrue from February 17, 2004, or from the most
recent date to which interest has been paid on the Securities. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.

2.       Method of Payment

                  By no later than 11:00 a.m. (New York City time) on the date
on which any Principal of or interest on any Security is due and payable, the
Company shall irrevocably deposit with the Trustee or the Paying Agent money
sufficient to pay such Principal and/or interest. The Company will pay interest
(except defaulted interest and interest on Securities redeemed after a record
date and on or prior to the corresponding interest payment date) to the Persons
who are registered Holders of Securities at the close of business on the
February 18 or August 18 next preceding the Interest Payment Date. Holders must
surrender Securities to a Paying Agent to collect Principal payments. The
Company will pay Principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private debts.
Payments in respect of Securities represented by a Global Security (including
Principal, premium, if any, and interest) will be made by the transfer of
immediately available funds to the accounts specified by The Depository Trust
Company. The Company may make all payments in respect of a Definitive Security
(including Principal, premium, if any, and interest) by mailing a check to the
registered address of each Holder thereof or by wire transfer to an account
located in the United States maintained by the Holder.

3.       Paying Agent and Registrar

                  Initially, American Stock Transfer & Trust Company, a New York
corporation (together with its successors and assigns the "Trustee"), will act
as Paying Agent and Registrar. The Company may appoint and change any Paying
Agent or Registrar without notice to any Holder. The Company or any of its
domestically organized wholly owned Subsidiaries may act as Paying Agent.

4.       Indenture

                  The Company issued the Securities under an Indenture dated as
of February 17, 2004 (as it may be amended or supplemented from time to time in
accordance with the terms

                                      B-3

<PAGE>

thereof, the "Indenture"), between the Company and the Trustee. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections
77aaa-77bbbb) as in effect on the date of the Indenture (the "Trust Indenture
Act"). Capitalized terms used herein and not defined herein have the meanings
ascribed thereto in the Indenture. The Securities are subject to all such terms,
and Holders are referred to the Indenture and the Trust Indenture Act for a
statement of those terms.

                  The Securities are senior obligations of the Company. This
Security is one of the Exchange Securities referred to in the Indenture. The
Securities include the Initial Securities issued on the Issue Date, any
Additional Securities issued in accordance with Section 2.15 of the Indenture
and any Exchange Securities issued in exchange for the Initial Securities
pursuant to the Indenture and the Registration Rights Agreement. The Initial
Securities, any Additional Securities and the Exchange Securities are treated as
a single class of securities under the Indenture. The Indenture imposes certain
limitations on the ability of the Company and its Subsidiaries to create Liens,
sell Voting Stock of Significant Subsidiaries and enter into mergers and
consolidations.

5.       Optional Redemption

                  The Securities are redeemable, in whole or in part, at any
time and from time to time, at the option of the Company, at a redemption price
equal to the greater of (i) 100% of the Principal amount of such Securities and
(ii) the sum of the present values of the remaining scheduled payments of
Principal and interest thereon (exclusive of interest accrued to the date of
redemption) discounted to the redemption date on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus 20
basis points, plus accrued interest thereon to the date of redemption.

                  "Treasury Rate" means, with respect to any redemption date for
the Securities, the rate per annum equal to the semiannual equivalent yield to
maturity or interpolated (on a day count basis) of the Comparable Treasury
Issue, assuming a price for the Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for
such redemption date.

                  "Comparable Treasury Issue" means the United States Treasury
security or securities selected by an Independent Investment Banker as having an
actual or interpolated maturity comparable to the remaining term of the
Securities to be redeemed that would be utilized, at the time of selection and
in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the
Securities to be redeemed.

                  "Comparable Treasury Price" means, with respect to any
redemption date for the Securities, (a) the average of the Reference Treasury
Dealer Quotations for such redemption date, after excluding the highest and
lowest of such Reference Treasury Dealer Quotations or (b) if the Trustee
obtains fewer than four such Reference Treasury Dealer Quotations, the average
of all such Quotations.

                  "Independent Investment Banker" means one of the Reference
Treasury Dealers appointed by the Trustee after consultation with the Company.

                                      B-4

<PAGE>

                  "Reference Treasury Dealer" means (x) each of UBS Securities
LLC and Lehman Brothers Inc. or their respective affiliates; provided, however,
that if either of the foregoing shall cease to be a primary U.S. government
securities dealer in the United States (a "Primary Treasury Dealer"), the
Company will substitute therefor another Primary Treasury Dealer and (y) two
other Primary Treasury Dealers selected by the Company.

                  "Reference Treasury Dealer Quotations" means, with respect to
each Reference Treasury Dealer and any redemption date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable
Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer as of 3:30
p.m., New York City time, on the third Business Day preceding such redemption
date.

                  Except as set forth above, the Securities will not be
redeemable by the Company prior to maturity.

                  The Securities will not be entitled to the benefit of any
sinking fund.

6.       Notice of Redemption

                  Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date by first-class mail to each Holder
of Securities to be redeemed at his registered address. Securities in
denominations of Principal amount larger than $1,000 may be redeemed in part but
only in whole multiples of $1,000. If money sufficient to pay the redemption
price of and accrued and unpaid interest on all Securities (or portions thereof)
to be redeemed on the redemption date is deposited with the Paying Agent on or
before 11:00 a.m. (New York City time) on the redemption date and certain other
conditions are satisfied, on and after such date interest ceases to accrue on
such Securities (or such portions thereof) called for redemption.

7.       Denominations; Transfer; Exchange

                  The Securities are in registered form without coupons in
denominations of principal amount of $1,000 and whole multiples of $1,000. A
Holder may register transfer or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements or transfer documents and to pay any taxes and fees
required by law or permitted by the Indenture. The Registrar need not register
the transfer of or exchange any Securities selected for redemption (except, in
the case of a Security to be redeemed in part, the portion of the Security not
to be redeemed) for a period beginning 15 days before a selection of Securities
to be redeemed and ending on the date of such selection.

8.       Persons Deemed Owners

                  The registered holder of this Security may be treated as the
owner of it for all purposes.

9.       Unclaimed Money

                  If money for the payment of Principal or interest remains
unclaimed for two years after the date of payment of Principal and interest, the
Trustee or Paying Agent shall pay the

                                      B-5

<PAGE>

money back to the Company at its request unless an abandoned property law
designates another Person. After any such payment, Holders entitled to the money
must look only to the Company and not to the Trustee for payment.

                  Anything in this Section 9 to the contrary notwithstanding, in
the absence of a written request from the Company to return unclaimed funds to
the Company, the Trustee shall from time to time deliver all unclaimed funds to
or as directed by applicable escheat authorities, as determined by the Trustee
in its sole discretion, in accordance with the customary practices and
procedures of the Trustee.

10.      Defeasance

                  Subject to certain conditions set forth in the Indenture, the
Company at any time may terminate some or all of its obligations under the
Securities and the Indenture if the Company deposits with the Trustee money or
U.S. Government Obligations for the payment of Principal of and interest on the
Securities to redemption or maturity, as the case may be.

11.      Amendment, Waiver

                  Subject to certain exceptions set forth in the Indenture, (i)
the Indenture or the Securities may be amended with the written consent of the
Holders of at least a majority in principal amount of the outstanding Securities
and (ii) any default or noncompliance with any provision of the Indenture or the
Securities may be waived with the written consent of the Holders of a majority
in principal amount of the outstanding Securities. However, the Indenture
requires the consent of each Holder that would be affected for certain specified
amendments or modifications of the Indenture and the Securities. Subject to
certain exceptions set forth in the Indenture, without the consent of any
Holder, the Company and the Trustee may amend the Indenture or the Securities
to, among other things, cure any ambiguity, omission, defect or inconsistency,
or to comply with Article V of the Indenture, or to add any additional Events of
Default, or to add additional covenants of or surrender rights and powers
conferred on the Company, or to add or appoint a successor or separate trustee
or other agent, or to comply with any requirements in connection with qualifying
the Indenture under the Trust Indenture Act, or to provide for uncertificated
Securities in addition to or in place of Definitive Securities, or to change any
other provision if the change does not adversely affect the interests of any
Holder.

12.      Defaults and Remedies

                  Under the Indenture, Events of Default include (i) default in
payment of Principal on the Securities at maturity, upon redemption pursuant to
paragraph 5 of the Securities, upon declaration or otherwise; (ii) default for
30 days in payment of interest on the Securities; (iii) failure by the Company
to comply with other agreements in the Indenture or the Securities for sixty
days after notice; (iv) failure to pay when due or certain accelerations of
other indebtedness of the Company or any Significant Subsidiary in an aggregate
amount of $10,000,000 or more, subject to notice and (v) certain events of
bankruptcy or insolvency involving the Company or any Significant Subsidiary.

                  If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate Principal amount of the Securities
may declare all the Securities to be due

                                      B-6

<PAGE>

and payable immediately. Certain events of bankruptcy or insolvency are Events
of Default which will result in the Securities being due and payable immediately
upon the occurrence of such Events of Default.

                  Holders may not enforce the Indenture or the Securities except
as provided in the Indenture. The Trustee may refuse to enforce the Indenture or
the Securities unless it receives indemnity or security reasonably satisfactory
to it. Subject to certain limitations, Holders of a majority in Principal amount
of the Securities may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders notice of any continuing Default or Event
of Default (except a Default or Event of Default in payment of Principal or
interest) if it in good faith determines that withholding notice is not opposed
to their interest.

13.      Trustee Dealings with the Company

                  Subject to certain limitations set forth in the Indenture, the
Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Securities and may otherwise deal with and collect
obligations owed to it by the Company and may otherwise deal with the Company
with the same rights it would have if it were not Trustee.

14.      No Recourse Against Others

                  A director, officer, employee or stockholder (other than the
Company), as such, of the Company shall not have any liability for any
obligations of the Company under the Securities, the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation.

15.      Authentication

                  This Security shall not be valid until an authorized officer
of the Trustee (or an authenticating agent acting on its behalf) manually signs
the certificate of authentication on the other side of this Security.

16.      Abbreviations

                  Customary abbreviations may be used in the name of a Holder or
an assignee, such as TEN COM (tenants in common), TEN ENT (tenants by the
entirety), JT TEN (joint tenants with rights of survivorship and not as tenants
in common), CUST (custodian) and U/G/M/A (Uniform Gift to Minors Act).

17.      CUSIP Numbers

                  The Company has caused CUSIP numbers and/or other similar
numbers to be printed on the Securities and has directed the Trustee to use
CUSIP numbers and/or other similar numbers in notices of redemption as a
convenience to Holders. No representation is made as to the accuracy of such
numbers either as printed on the Securities or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

                                      B-7

<PAGE>

18.      Governing Law

                  THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

                                      B-8

<PAGE>

                                 ASSIGNMENT FORM

                  To assign this Security, fill in the form below:

                  I or we assign and transfer this Security to

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

                  (Insert assignee's soc. sec. or tax I.D. No.)

         and irrevocably appoint [______] agent to transfer this Security on the
         books of the Company. The agent may substitute another to act for him.

Date:____________________             Your Signature:______________________

Signature Guarantee:  ______________________________
(Signature must be guaranteed by a participant in a recognized Signature
Guarantee Medallion Program or other signature guarantor program reasonably
acceptable to the Trustee)
________________________________________________________________________________
Sign exactly as your name appears on the other side of this Security.

                                      B-9

<PAGE>

                                                             EXHIBIT C - Form of
                                                           Rule 144A Certificate

                              RULE 144A CERTIFICATE

                       (For transfers pursuant to Section
                              2.6 of the Indenture)

To:  American Stock Transfer & Trust Company,
         as Trustee

                       Re:  5.50% Senior Notes due 2014 of
                            Infinity Property and Casualty Corporation (the
                            "Securities")

                  Reference is made to the Indenture, dated as of February 17,
2004, (the "Indenture"), between Infinity Property and Casualty Corporation (the
"Company") and American Stock Transfer & Trust Company, as Trustee. Terms used
herein and defined in the Indenture or in Rule 144 under the U.S. Securities Act
of 1933, as amended (the "Securities Act") are used herein as so defined.

                  This certificate relates to U.S.$________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):

                  CUSIP No(s). __________________________

                  CERTIFICATE No(s). ____________________

The person in whose name this certificate is executed below (the "undersigned")
hereby certifies that either (i) it is the sole beneficial owner of the
Specified Securities or (ii) it is acting on behalf of all the beneficial owners
of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner".
If the Specified Securities are represented by a Global Security, they are held
through DTC or an Agent Member in the name of the undersigned, as or on behalf
of the Owner. If the Specified Securities are not represented by a Global
Security, they are registered in the name of the Undersigned, as or on behalf of
the Owner.

                  The Owner has requested that the Specified Securities be
transferred to a person (the "Transferee") who will take delivery in the form of
a Rule 144A Security. In connection with such transfer, the Owner hereby
certifies that, unless such transfer is being effected pursuant to an effective
registration statement under the Securities Act, it is being effected in
accordance with Rule 144A or Rule 144 under the Securities Act and with all
applicable securities laws of the states of the United States and other
jurisdictions. Accordingly, the Owner hereby further certifies as:

                  1.       Rule 144A Transfers. If the transfer is being
effected in accordance with Rule 144A:

                  (a)      the Specified Securities are being transferred to a
person that the Owner and any person acting on its behalf reasonably believe is
a "qualified institutional buyer" within

                                      C-1

<PAGE>

                                                             EXHIBIT C - Form of
                                                           Rule 144A Certificate

the meaning of Rule 144A, acquiring for its own account or for the account of a
qualified institutional buyer; and

                  (b)      the Owner and any person acting on its behalf have
taken reasonable steps to ensure that the Transferee is aware that the Owner is
relying on Rule 144A in connection with the transfer; and

                  2.       Rule 144 Transfers. If the transfer is being effected
pursuant to Rule 144:

                  (a)      the transfer is occurring after [________] and is
being effected in accordance with the applicable amount, manner of sale and
notice requirements of Rule 144; or

                  (b)      the transfer is occurring after [________] and the
Owner is not, and during the preceding three months has not been, an affiliate
of the Company.

                  This certificate and the statements contained herein are made
for your benefit and the benefit of the Company and the Initial Purchasers.

Dated:
                            ____________________________________________________
                            (Print the name of the undersigned, as such term is
                            defined in the second paragraph of this certificate)

                            By:_________________________________________________
                               Name:
                               Title:

                            (If the undersigned is a corporation, partnership or
                            fiduciary, the title of the person signing on behalf
                            of the undersigned must be stated)

                                      C-2<PAGE>

                                                                     EXHIBIT 4.2

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

          EXCHANGE AND REGISTRATION RIGHTS AGREEMENT, dated as of February 17,
2004 (the "Exchange and Registration Rights Agreement").

          WHEREAS, Infinity Property and Casualty Corporation, an Ohio
corporation (the "Company"), proposes to issue and sell to the Initial
Purchasers ("the Initial Purchasers"), as defined in the purchase agreement,
dated February 11, 2004 between the Company and the Initial Purchasers (the
"Purchase Agreement"), upon the terms set forth in the Purchase Agreement,
$200.0 million aggregate principal amount of the Company's 5.50% Senior Notes
Due 2014 (the "Securities").

          WHEREAS, it is a condition to the Initial Purchasers' obligation to
purchase the Securities that the Company enter into this Agreement;

          NOW THEREFORE, the Company hereby undertakes as follows:

          1. Certain Definitions. For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

          "Additional Interest" shall have the meaning assigned thereto in
     Section 2(c) hereof.

          "Base Interest" shall mean the interest that would otherwise accrue on
     the Securities under the terms thereof and the Indenture, without giving
     effect to the provisions of this Agreement.

          The term "broker-dealer" shall mean any broker or dealer registered
     with the Commission under the Exchange Act.

          "Closing Date" shall mean the date on which the Securities are
     initially issued.

          "Commission" shall mean the United States Securities and Exchange
     Commission, or any other federal agency at the time administering the
     Exchange Act or the Securities Act, whichever is the relevant statute for
     the particular purpose.

          "Effective Time," in the case of (i) an Exchange Registration, shall
     mean the time and date as of which the Commission declares the Exchange
     Registration Statement effective or as of which the Exchange Registration
     Statement otherwise becomes effective and (ii) a Shelf Registration, shall
     mean the time and date as of which the Commission declares the Shelf
     Registration Statement effective or as of which the Shelf Registration
     Statement otherwise becomes effective.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended, or any successor thereto, as the same shall be amended from time
     to time.

          "Exchange Offer" shall have the meaning assigned thereto in Section
     2(a) hereof.

<PAGE>

          "Exchange Registration" shall have the meaning assigned thereto in
     Section 3(c) hereof.

          "Exchange Registration Statement" shall have the meaning assigned
     thereto in Section 2(a) hereof.

          "Exchange Securities" shall have the meaning assigned thereto in
     Section 2(a) hereof.

          The term "holder" shall mean the Initial Purchasers and other persons
     who acquire Registrable Securities from time to time (including any
     successors or assigns), in each case for so long as such person is a record
     or beneficial owner of any Registrable Securities.

          "Indenture" shall mean the Indenture, dated as of February 17, 2004,
     between the Company and American Stock Transfer & Trust Company, as trustee
     (the "Trustee"), as the same shall be amended from time to time.

          "Majority Holders" shall mean the holders of a majority of the
     aggregate principal amount of Registrable Securities outstanding; provided,
     however, that whenever the consent or approval of holders of a specified
     percentage of Registrable Securities is required hereunder, Registrable
     Securities held by the Company or any of its affiliates (as such term is
     defined in Rule 405 under the Securities Act) shall be disregarded in
     determining whether such consent or approval was given by the holders of
     such required percentage.

          "Notice and Questionnaire" means a Notice of Registration Statement
     and Selling Securityholder Questionnaire substantially in the form of
     Exhibit A hereto.

          "Outstanding" has the meaning specified in the Indenture.

          The term "person" shall mean a corporation, association, limited
     liability company, partnership, organization, business trust, individual,
     government or political subdivision thereof or governmental agency.

          "Private Exchange Securities" shall have the meaning set forth in
     Section 2(a) hereof.

          "Registrable Securities" shall mean the Securities other than any
     Exchange Securities issued in an Exchange Offer as contemplated in Section
     2(a) hereof (unless such Exchange Securities are held by broker-dealers who
     have exchanged their Registrable Securities for Exchange Securities for the
     resale of such Exchange Securities, in which case such Exchange Securities
     will be deemed to be Registrable Securities until the resale of such
     Registrable Securities within the 60-day period referred to in the second
     paragraph of Section 2(a)); provided, however, that a Security shall cease
     to be a Registrable Security when (i) in the circumstances contemplated by
     Section 2(b) hereof, a Shelf Registration Statement registering such
     Security under the Securities Act has been declared or becomes effective
     and such Security has been sold or otherwise transferred by the holder
     thereof pursuant to and in a manner contemplated by such effective Shelf
     Registration Statement; (ii) such Security is sold pursuant to Rule 144
     under circumstances in which any legend borne by such Security relating to
     restrictions on transferability thereof, under the Securities Act or
     otherwise, is removed by the Company or pursuant to the Indenture; (iii)
     such Security is eligible to be sold pursuant to paragraph (k) of Rule 144;
     (iv) such Securities shall have been exchanged

                                       -2-

<PAGE>

     for Private Exchange Securities pursuant to this Agreement, in which case
     such Private Exchange Securities will be deemed to be Registrable
     Securities until such time as such Private Exchange Securities are sold to
     a purchaser in whose hands such Private Exchange Securities are freely
     tradeable without any limitations or restrictions under the Securities Act;
     or (v) such Security shall cease to be outstanding.

          "Registration Default" shall have the meaning assigned thereto in
     Section 2(c) hereof.

          "Registration Expenses" shall have the meaning assigned thereto in
     Section 4 hereof.

          "Resale Period" shall have the meaning assigned thereto in Section
     2(a) hereof.

          "Restricted Holder" shall mean (i) a holder that is an affiliate of
     the Company within the meaning of Rule 405, (ii) a holder who acquires
     Exchange Securities outside the ordinary course of such holder's business,
     (iii) a holder who has arrangements or understandings with any person to
     participate in the Exchange Offer for the purpose of distributing Exchange
     Securities and (iv) a holder that is a broker-dealer who has exchanged its
     Registrable Securities for Exchange Securities for the resale of such
     Exchange Securities.

          "Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such
     rule promulgated under the Securities Act (or any successor provision), as
     the same shall be amended from time to time.

          "Securities Act" shall mean the Securities Act of 1933, as amended, or
     any successor thereto, as the same shall be amended from time to time.

          "Shelf Registration" shall mean a registration covering the resale of
     Securities or Private Exchange Securities (if any) effected pursuant to
     Section 2(b) hereof.

          "Shelf Registration Statement" shall mean a registration statement of
     the Company on Form S-3 filed pursuant to Rule 415(a)(1)(i) under the
     Securities Act covering the Shelf Registration, and all amendments and
     supplements to such registration statement, including post-effective
     amendments, in each case including the Prospectus contained therein, all
     exhibits thereto and all material incorporated or deemed to be incorporated
     by reference therein.

          "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, as
     amended, or any successor thereto, and the rules, regulations and forms
     promulgated thereunder, all as the same shall be amended from time to time.

          Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the case may be, of this
Exchange and Registration Rights Agreement, and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

                                      -3-

<PAGE>

     2. Registration Under the Securities Act.

     (a) Except as set forth in Section 2(b) below, the Company agrees to file
under the Securities Act, no later than 90 days after the Closing Date, one
registration statement relating to an offer to exchange (the "Exchange
Registration Statement", and such offer, the "Exchange Offer") any and all of
the Securities for a like aggregate principal amount of debt securities issued
by the Company, which debt securities are substantially identical to the
Securities (and are entitled to the benefits of a trust indenture which is
substantially identical to the Indenture or is the Indenture and which has been
qualified under the Trust Indenture Act), except that they have been registered
pursuant to the Exchange Registration Statement which shall have been declared
effective by the Commission and do not contain provisions for the additional
interest contemplated in Section 2(c) below (any such new debt securities
hereinafter called "Exchange Securities"). The Company agrees to use reasonable
best efforts to cause an Exchange Registration Statement to become effective
under the Securities Act no later than 150 days after the Closing Date. The
Exchange Offers will be registered under the Securities Act on the appropriate
form and will comply, in all material respects, with all applicable tender offer
rules and regulations under the Exchange Act. The Company further agrees to use
reasonable best efforts to commence and complete the Exchange Offer promptly,
but no later than 30 days after the Exchange Registration Statement has become
effective and exchange Exchange Securities for all Registrable Securities that
have been properly tendered and not withdrawn on or prior to the expiration of
the Exchange Offer.

          The Exchange Offer will be deemed to have been "completed" only if the
debt securities received by holders other than Restricted Holders in such
Exchange Offer for Registrable Securities are, upon receipt, transferable by
each such holder without restriction under the Securities Act and the Exchange
Act and without material restrictions under the blue sky or securities laws of a
substantial majority of the States of the United States of America. The Exchange
Offer shall be deemed to have been completed upon the earlier to occur of (i)
the Company having exchanged Exchange Securities for all outstanding Registrable
Securities pursuant to the Exchange Offer and (ii) the Company having exchanged,
pursuant to such Exchange Offer, Exchange Securities for all Registrable
Securities that have been properly tendered and not withdrawn before the
expiration of the Exchange Offer, which shall be on a date that is at least 20
business days following the commencement of such Exchange Offer. The Company
agrees (x) to include in an Exchange Registration Statement a prospectus for use
in any resales by any holder of Registrable Securities that is a broker-dealer
and (y) to keep such Exchange Registration Statement effective for a period (the
"Resale Period") beginning when Exchange Securities are first issued in the
Exchange Offer and ending upon the earlier of the expiration of the 60th day
after such Exchange Offer has been completed or such time as such broker-dealers
no longer own any Registrable Securities. With respect to such Exchange
Registration Statement, such holders shall have the benefit of the rights of
indemnification and contribution set forth in Sections 6(a), (c) and (d) hereof.

     If, at or prior to the consummation of the Exchange Offer, any Initial
Purchaser holds any Securities acquired by it and having the status of an unsold
allotment in the initial offering and sale of Securities pursuant to the
Purchase Agreement, the Company shall, upon the request of such Initial
Purchaser, simultaneously with the delivery of the Exchange Securities

                                       -4-

<PAGE>

in the Exchange Offer to other holders, issue and deliver to such Initial
Purchaser in exchange for such Securities a like principal amount of debt
securities of the Company ("Private Exchange Securities") to be issued under the
Indenture with terms identical to the Exchange Securities, except that such debt
securities shall be subject to transfer restrictions and minimum purchase
requirements, shall bear a legend relating to restrictions on ownership and
transfer identical to those applicable to the Securities as a result of the
issuance thereof without registration under the Securities Act and shall provide
for the payment of Additional Interest during any Registration Default. The
Company shall use its reasonable best efforts to have the Private Exchange
Securities bear the same CUSIP number as the Exchange Securities and, if unable
to do so, the Company will, at such time as any Private Exchange Security ceases
to be a "restricted security" within the meaning of Rule 144 under the
Securities Act, permit any such Private Exchange Security to be exchanged for a
like principal amount of Exchange Securities.

     (b) (i) If, because of any change in law or applicable interpretations
thereof by the staff of the Commission, the Company is not permitted to effect
the Exchange Offer as contemplated by Section 2(a) hereof, or (ii) if for any
other reason (A) the Exchange Registration Statement is not declared effective
within 150 days following the Closing Date or (B) the Exchange Offer is not
consummated within 30 days after effectiveness of the Exchange Registration
Statement (provided that if the Exchange Registration Statement shall be
declared effective after such 150-day period or if the Exchange Offer shall be
consummated after such 30-day period, then the Company's obligations under this
clause (ii) arising from the failure of the Exchange Registration Statement to
be declared effective within such 150-day period or the failure of the Exchange
Offer to be consummated within such 30-day period, respectively, shall
terminate), or (iii) if any holder (other than an Initial Purchaser holding
Securities acquired directly from the Company as part of the offering and sale
of Securities pursuant to the Purchase Agreement) is not eligible to participate
in the Exchange Offer or elects to participate in the Exchange Offer but does
not receive Exchange Securities which are freely tradeable without any
limitations or restrictions under the Securities Act or (iv) upon the request of
any Initial Purchaser (provided that, in the case of this clause (iv), such
Initial Purchaser shall hold Registrable Securities (including, without
limitation, Private Exchange Securities) that it acquired directly from the
Company as part of the offering and sale of Securities pursuant to the Purchase
Agreement), the Company shall, at its cost:

                    (A) as promptly as practicable, but no later than 45 days
          after so required or requested pursuant to Section 2(b), file with the
          Commission a Shelf Registration Statement relating to the resale of
          the Registrable Securities by the holders from time to time in
          accordance with the methods of distribution elected by the Majority
          Holders of such Registrable Securities and set forth in such Shelf
          Registration Statement; provided, however, that the Company shall not
          be required to file any Shelf Registration Statement earlier than 90
          days after the Closing Date;

                    (B) use its reasonable best efforts to cause such Shelf
          Registration Statement to be declared effective by the Commission as
          promptly as practicable,

                                       -5-

<PAGE>

          but in no event later than 60 days after the date on which the Company
          files such Shelf Registration Statement.

     The Company agrees to use its reasonable best efforts to keep such Shelf
Registration Statement continuously effective, supplemented and amended as
required, for a period ending on the earlier of the first date that Securities
continuously held by a non-affiliate become eligible to be sold pursuant to
paragraph (k) of Rule 144 or such time as there are no longer any Registrable
Securities outstanding, provided, however, that no holder shall be entitled to
be named as a selling securityholder in such Shelf Registration Statement or to
use the prospectus forming a part thereof for resales of such Registrable
Securities unless such holder agrees to be bound by all of the provisions of
this Agreement applicable to such holder. The Company further agrees to
supplement or make amendments to such Shelf Registration Statement, as and when
required by the rules, regulations or instructions applicable to the
registration form used by the Company for such Shelf Registration Statement or
by the Securities Act or rules and regulations thereunder for shelf
registration. The Company further agrees, if necessary, to supplement or amend
the Shelf Registration Statement if reasonably requested by the Majority Holders
with respect to information relating to the holders and otherwise as required by
Section 3(c)(ii) below, to use its reasonable best efforts to cause any such
amendment to become effective and such Shelf Registration Statement to become
usable as soon as practicable thereafter and to furnish to the holders of
Registrable Securities copies of any such supplement or amendment promptly after
its being used or filed with the Commission.

     (c) In the event that: (i) the Exchange Registration Statement is not filed
with the Commission on or prior to the 90 days following the Closing Date, or
(ii) the Exchange Registration Statement is not declared effective by the
Commission on or prior to 150 days following the Closing Date, or (iii) the
Exchange Offer is not consummated on or prior to 30 days following the effective
date of the Exchange Registration Statement, or (iv) if required, a Shelf
Registration Statement is not filed with the Commission on or prior to 45 days
after the filing obligation arises, or (v) if required, a Shelf Registration
Statement is not declared effective on or prior to the 60 days after the date on
which the Company files such Shelf Registration Statement, or (vi) a Shelf
Registration Statement is declared effective by the Commission but such Shelf
Registration Statement ceases to be effective or such Shelf Registration
Statement or the Prospectus included therein ceases to be usable in connection
with resales of Registrable Securities for any reason (each such event referred
to in clauses (i) through (vi), a "Registration Default" and each period during
which a Registration Default has occurred and is continuing until the earlier of
such time as no Registration Default is in effect or the first date the
Securities become eligible to be sold pursuant to paragraph (k) of Rule 144, a
"Registration Default Period"), then, the Company hereby agrees to pay to each
holder of Registrable Securities affected thereby, additional interest
("Additional Interest"), in addition to the Base Interest, which shall accrue at
a per annum rate of 0.25% for the first 90-day period immediately following the
Registration Default and at a per annum rate of 0.50% for each subsequent 90-day
period, provided that the Company shall in no event be required to pay
Additional Interest for more than one Registration Default at any given time;
provided, further, that, in the event of an occurrence of another Registration
Default, the interest rate shall again be increased by 0.25% for the first
90-day period following such

                                       -6-

<PAGE>

Registration Default and 0.50% for each subsequent 90-day period pursuant to the
foregoing provisions.

          The Company shall notify the Trustee within three business days after
each and every date on which an event occurs in respect of which Additional
Interest is required to be paid (an "Event Date"). Additional Interest shall be
paid by depositing with the Trustee, in trust, for the benefit of the holders of
Registrable Securities, on or before the applicable interest payment date,
immediately available funds in sums sufficient to pay the Additional Interest
then due. The Additional Interest due shall be payable on each such interest
payment date to the record holder of Registrable Securities entitled to receive
the interest payment to be paid on such date as set forth in the Indenture. Each
obligation to pay Additional Interest shall be deemed to accrue from and
including the day following the applicable Event Date.

          (d) Without limiting the remedies available to the Initial Purchasers
     and the holders, the Company acknowledges that any failure by the Company
     to comply with its obligations under Sections 2(a) through 2(c) hereof may
     result in material irreparable injury to the Initial Purchasers or the
     holders for which there is no adequate remedy at law, that it will not be
     possible to measure damages for such injuries precisely and that, in the
     event of any such failure, the Initial Purchasers and any holder may obtain
     such relief as may be required to specifically enforce the Company's
     obligations under Sections 2(a) through 2(c) hereof.

          (e) The Company shall take all actions reasonably necessary or
     advisable to be taken by it to ensure that the transactions contemplated
     herein are effected as so contemplated.

          (f) Any reference herein to a registration statement as of any time
     shall be deemed to include any document incorporated, or deemed to be
     incorporated, therein by reference as of such time and any reference herein
     to any post-effective amendment to a registration statement as of any time
     shall be deemed to include any document incorporated, or deemed to be
     incorporated, therein by reference as of such time.

          3. Registration Procedures.

          If the Company files a registration statement pursuant to Section 2(a)
or Section 2(b), the following provisions shall apply:

          (a) At or before the Effective Time of any Exchange Registration
     Statement or any Shelf Registration Statement, as the case may be, the
     Company shall qualify the Indenture under the Trust Indenture Act.

          (b) In the event that such qualification would require the appointment
     of a new trustee under the Indenture, the Company shall appoint a new
     trustee thereunder pursuant to the applicable provisions of the Indenture.

          (c) In connection with the Company's obligations with respect to any
     registration of Exchange Securities as contemplated by Section 2(a) (an
     "Exchange Registration"), if applicable, the Company shall:

                                       -7-

<PAGE>

          (i) prepare and file with the Commission no later than 90 days after
     the Closing Date, an Exchange Registration Statement on any form which may
     be utilized by the Company and which shall permit such Exchange Offer and
     resales of Exchange Securities by broker-dealers during the Resale Period
     to be effected as contemplated by Section 2(a), and use reasonable best
     efforts to cause such Exchange Registration Statement to become effective
     no later than 150 days after the Closing Date;

          (ii) use reasonable best efforts to prepare and file with the
     Commission such amendments and supplements to such Exchange Registration
     Statement and the prospectus included therein as may be necessary to effect
     and maintain the effectiveness of such Exchange Registration Statement for
     the periods and purposes contemplated in Section 2(a) hereof and as may be
     required by the applicable rules and regulations of the Commission and the
     instructions applicable to the form of such Exchange Registration
     Statement, and promptly provide without cost, each broker-dealer holding
     Exchange Securities with such number of copies of the prospectus included
     therein (as then amended or supplemented), in conformity in all material
     respects with the requirements of the Securities Act and the Trust
     Indenture Act and the rules and regulations of the Commission thereunder,
     as such broker-dealer reasonably may request prior to the expiration of the
     Resale Period, for use in connection with resales of such Exchange
     Securities;

          (iii) promptly notify in writing each broker-dealer that has requested
     or received copies of the prospectus included in such registration
     statement (A) when such Exchange Registration Statement or the prospectus
     included therein or any prospectus amendment or supplement or
     post-effective amendment has been filed, and, with respect to such Exchange
     Registration Statement or any post-effective amendment, when the same has
     become effective, (B) of any request by the Commission for amendments or
     supplements to such Exchange Registration Statement or prospectus or for
     additional information, (C) of the issuance by the Commission of any stop
     order suspending the effectiveness of such Exchange Registration Statement
     under the Securities Act or the initiation of any proceedings for that
     purpose, (D) if at any time the representations and warranties of the
     Company contemplated by Section 5 hereof cease to be true and correct in
     all material respects, (E) of the receipt by the Company of any
     notification with respect to the suspension of the qualification of the
     Exchange Securities for sale in any jurisdiction or the initiation of any
     proceeding for such purpose, or (F) at any time during the Resale Period
     when a prospectus is required to be delivered under the Securities Act,
     that such Exchange Registration Statement, prospectus, prospectus amendment
     or supplement or post-effective amendment does not conform in all material
     respects to the applicable requirements of the Securities Act and the Trust
     Indenture Act and the rules and regulations of the Commission thereunder or
     contains an untrue statement of a material fact or omits to state any
     material fact required to be stated therein or necessary to make the
     statements therein, in the light of the circumstances under which they were
     made, not misleading;

          (iv) in the event that the Company would be required, pursuant to
     Section 3(c)(iii)(F) above, to notify any broker-dealers holding Exchange
     Securities, promptly prepare and furnish to each such holder a reasonable
     number of copies of a

                                       -8-

<PAGE>

     prospectus supplemented or amended so that, as thereafter delivered to
     purchasers of such Exchange Securities during the Resale Period, such
     prospectus shall conform in all material respects to the applicable
     requirements of the Securities Act and the Trust Indenture Act and the
     rules and regulations of the Commission thereunder and shall not contain an
     untrue statement of a material fact or omit to state a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading in light of the circumstances then existing;

          (v) use reasonable best efforts to obtain the withdrawal or lifting of
     any order suspending the effectiveness of such Exchange Registration
     Statement or any post-effective amendment thereto at the earliest
     practicable date;

          (vi) use reasonable best efforts to (A) register or qualify the
     Exchange Securities under the securities laws or blue sky laws of such
     jurisdictions as are contemplated by Section 2(a) no later than the
     commencement of an Exchange Offer, (B) keep such registrations or
     qualifications in effect and comply with such laws so as to permit the
     continuance of offers, sales and dealings therein in such jurisdictions
     until the expiration of the Resale Period and (C) take any and all other
     actions as may be reasonably necessary or advisable to enable each
     broker-dealer holding Exchange Securities to consummate the disposition
     thereof in such jurisdictions; provided, however, that the Company shall
     not be required for any such purpose to (1) qualify as a foreign
     corporation in any jurisdiction wherein it would not otherwise be required
     to qualify but for the requirements of this Section 3(c)(vi), (2) consent
     to general service of process in any such jurisdiction or (3) make any
     changes to its articles of incorporation or regulations or any agreement
     between it and its stockholders;

          (vii)use reasonable best efforts to obtain the consent or approval of
     each governmental agency or authority, whether federal, state or local,
     which may be required in order for the Company to effect such Exchange
     Registration and such Exchange Offer;

          (viii) provide a CUSIP number for all such Exchange Securities, not
     later than the applicable Effective Time;

          (ix) use reasonable best efforts to comply with all applicable rules
     and regulations of the Commission, and make generally available to its
     securityholders as soon as practicable, an earning statement of the Company
     and its subsidiaries complying with Section 11(a) of the Securities Act
     (including, at the option of the Company, Rule 158 thereunder).

     (d) In connection with the Company's obligations with respect to any Shelf
Registration, if applicable, the Company shall:

          (i) prepare and file with the Commission, within the time periods
     specified in Section 2(b), a Shelf Registration Statement on any form which
     may be utilized by the Company and which shall register all of the
     Registrable Securities for resale by the holders thereof in accordance with
     such method or methods of disposition as may be specified by the Majority
     Holders included in such offering and use reasonable best

                                       -9-

<PAGE>

     efforts to cause such Shelf Registration Statement to become effective
     within the time periods specified in Section 2(b);

          (ii) in the case of a Shelf Registration, (i) notify each holder of
     Registrable Securities, at least ten business days prior to filing, that a
     Shelf Registration Statement with respect to the Registrable Securities is
     being filed and advising such holders that the distribution of Registrable
     Securities will be made in accordance with the method elected by the
     Majority Holders;

          (iii)The Company may require each holder of Securities to be sold
     pursuant to any Shelf Registration Statement to furnish to the Company the
     information regarding the holder and the distribution of such securities as
     set forth in the Notice and Questionnaire in the form of Exhibit A hereto
     or such other information as the Company may from time to time reasonably
     require, in connection with any comments received from the Commission or
     otherwise, for inclusion in such Registration Statement. The Company may
     exclude from such Shelf Registration Statement the Securities of any holder
     that unreasonably fails to furnish such information within 30 calendar days
     after receiving such request;

          (iv) use reasonable best efforts to prepare and file with the
     Commission such amendments and supplements to such Shelf Registration
     Statement and the prospectus included therein as may be necessary to effect
     and maintain the effectiveness of such Shelf Registration Statement for the
     period specified in Section 2(b) hereof and as may be required by the
     applicable rules and regulations of the Commission and the instructions
     applicable to the form of such Shelf Registration Statement;

          (v) use reasonable best efforts to comply with the provisions of the
     Securities Act with respect to the disposition of all of the Registrable
     Securities covered by such Shelf Registration Statement in accordance with
     the intended methods of disposition by the Majority Holders included in
     such Shelf Registration Statement;

          (vi) provide (A) the holders selling Registrable Securities pursuant
     to any Shelf Registration Statement, (B) the underwriters (which term, for
     purposes of this Exchange and Registration Rights Agreement, shall include
     a person deemed to be an underwriter within the meaning of Section 2(a)(11)
     of the Securities Act), if any, thereof, (C) any sales or placement agent
     therefor, (D) counsel for any such underwriter or agent and (E) not more
     than one counsel for all the holders selling Registrable Securities
     pursuant to any Shelf Registration Statement the opportunity to make any
     changes in any Shelf Registration Statement, any Prospectus forming a part
     thereof, any amendment to such Shelf Registration Statement or amendment or
     supplement to such Prospectus a reasonable time prior to filing any of the
     foregoing;

          (vii) for a reasonable period prior to the filing of such Shelf
     Registration Statement, and throughout the period specified in Section
     2(b), make available at reasonable times at the Company's principal place
     of business or another reasonable place for inspection by the persons
     referred to in Section 3(d)(vi), who shall certify to the Company that they
     have a current intention to sell the Registrable Securities pursuant to the
     Shelf

                                      -10-

<PAGE>

     Registration, such financial and other information and books and records of
     the Company, and cause the officers and employees of the Company to respond
     to such inquiries, as shall be reasonably necessary, to conduct a
     reasonable investigation within the meaning of Section 11 of the Securities
     Act; provided, however, that each such party shall be required to maintain
     in confidence and not to disclose to any other person any information or
     records reasonably designated by the Company as being confidential, and to
     certify as to the foregoing in writing in advance of such review, until
     such time as (A) such information becomes a matter of public record
     (whether by virtue of its inclusion in such registration statement or
     otherwise), or (B) such person shall be required to so disclose such
     information pursuant to a subpoena or order of any court or other
     governmental agency or body having jurisdiction over the matter (subject to
     the requirements of such order, and only after such person shall have given
     the Company prompt prior written notice of such requirement), or (C) such
     information is required to be set forth in such Shelf Registration
     Statement or the prospectus included therein or in an amendment to such
     Shelf Registration Statement or an amendment or supplement to such
     prospectus in order that such Shelf Registration Statement, prospectus,
     amendment or supplement, as the case may be, complies with applicable
     requirements of the federal securities laws and the rules and regulations
     of the Commission and does not contain an untrue statement of a material
     fact or omit to state therein a material fact required to be stated therein
     or necessary to make the statements therein, in the light of the
     circumstances under which they were made, not misleading;

          (viii) advise in writing each holder selling Registrable Securities
     pursuant to a Shelf Registration Statement, any sales or placement agent
     therefor and any underwriter thereof (which notification may be made
     through any managing underwriter that is a representative of such
     underwriter for such purpose) (A) when such Shelf Registration Statement or
     the prospectus included therein or any prospectus amendment or supplement
     or post-effective amendment has been filed, and, with respect to such Shelf
     Registration Statement or any post-effective amendment, when the same has
     become effective, (B) of any request by the Commission for amendments or
     supplements to such Shelf Registration Statement or prospectus or for
     additional information, (C) of the issuance by the Commission of any stop
     order suspending the effectiveness of such Shelf Registration Statement
     under the Securities Act or the initiation of any proceedings for that
     purpose, (D) if at any time the representations and warranties of the
     Company contemplated by Section 5 hereof cease to be true and correct in
     all material respects, (E) of the receipt by the Company of any
     notification with respect to the suspension of the qualification of the
     Registrable Securities for sale in any jurisdiction or the initiation of
     any proceeding for such purpose, or (F) if at any time when a prospectus is
     required to be delivered under the Securities Act, that such Shelf
     Registration Statement, prospectus, prospectus amendment or supplement or
     post-effective amendment does not conform in all material respects to the
     applicable requirements of the Securities Act and the Trust Indenture Act
     and the rules and regulations of the Commission thereunder or contains an
     untrue statement of a material fact or omits to state any material fact
     required to be stated therein or necessary to make the statements therein,
     in the light of the circumstances under which they were made, not
     misleading; and without limitation to any other provisions of this
     Agreement, the Company agrees that this Section 3(d)(viii) shall also be
     applicable, mutatis mutandis,

                                      -11-

<PAGE>

     with respect to the Exchange Registration Statement and the prospectus
     included therein to the extent that such prospectus is being used by
     broker-dealers who have exchanged their Registrable Securities for Exchange
     Securities for the resale of such Exchange Securities as contemplated by
     Section 2(a);

          (ix) use reasonable best efforts to obtain the withdrawal or lifting
     of any order suspending the effectiveness of such registration statement or
     any post-effective amendment thereto at the earliest practicable date;

          (x) if requested by any managing underwriter or underwriters, any
     placement or sales agent or any holder selling Registrable Securities
     pursuant to a Shelf Registration Statement, promptly incorporate in a
     prospectus supplement or post-effective amendment such information as is
     required by the applicable rules and regulations of the Commission and as
     such managing underwriter or underwriters, such agent or such holder
     specifies should be included therein relating to the terms of the sale of
     such Registrable Securities, including information with respect to the
     principal amount of such Registrable Securities being sold by such holder
     or agent or to any underwriters, the name and description of such holder,
     agent or underwriter, the offering price of such Registrable Securities and
     any discount, commission or other compensation payable in respect thereof,
     the purchase price being paid therefor by such underwriters and with
     respect to any other terms of the offering of the Registrable Securities to
     be sold by such holder or agent or to such underwriters; and make all
     required filings of such prospectus supplement or post-effective amendment
     promptly after notification of the matters to be incorporated in such
     prospectus supplement or post-effective amendment;

          (xi) furnish to each holder, each placement or sales agent, if any,
     therefor, each underwriter, if any, thereof and their respective counsel a
     copy of such Shelf Registration Statement, each such amendment and
     supplement thereto (in each case including all exhibits thereto (in the
     case of such holder of Registrable Securities, upon request) and documents
     incorporated by reference therein) and such number of copies of such Shelf
     Registration Statement (excluding exhibits thereto and documents
     incorporated by reference therein unless specifically so requested by such
     holder, agent or underwriter, as the case may be) and of the prospectus
     included in such Shelf Registration Statement (including each preliminary
     prospectus and any summary prospectus), in conformity in all material
     respects with the applicable requirements of the Securities Act and the
     Trust Indenture Act and the rules and regulations of the Commission
     thereunder, and such other documents, as such holder, agent, if any, and
     underwriter, if any, may reasonably request in order to facilitate the
     offering and disposition of the Registrable Securities owned by such
     holder, offered or sold by such agent or underwritten by such underwriter
     and to permit such holder, agent and underwriter to satisfy the prospectus
     delivery requirements of the Securities Act; and the Company hereby
     consents to the use of such prospectus (including such preliminary and
     summary prospectus) and any amendment or supplement thereto by each such
     holder and by any such agent and underwriter, in each case in the form most
     recently provided to such person by the Company, in connection with the
     offering and sale of the Registrable Securities covered by the prospectus
     (including such preliminary and summary prospectus) or any supplement or
     amendment thereto;

                                      -12-

<PAGE>

          (xii) use reasonable best efforts to (A) register or qualify the
     Registrable Securities to be included in such Shelf Registration Statement
     under such securities laws or blue sky laws of such jurisdictions within
     the United States as any holder shall reasonably request, (B) keep such
     registrations or qualifications in effect and comply with such laws so as
     to permit the continuance of offers, sales and dealings therein in such
     jurisdictions during the period such Shelf Registration is required to
     remain effective under Section 2(b) above and for so long as may be
     necessary to enable any such holder, agent or underwriter to complete its
     distribution of Securities pursuant to such Shelf Registration Statement
     and (C) take any and all other actions as may be reasonably necessary or
     advisable to enable each such holder, agent, if any, and underwriter, if
     any, to consummate the disposition in such jurisdictions of such
     Registrable Securities; provided, however, that the Company shall not be
     required for any such purpose to (1) qualify as a foreign corporation in
     any jurisdiction wherein it would not otherwise be required to qualify but
     for the requirements of this Section 3(d)(xii), (2) consent to general
     service of process in any such jurisdiction or (3) make any changes to its
     certificate of incorporation or by-laws or any agreement between it and its
     stockholders;

          (xiii) use reasonable best efforts to obtain the consent or approval
     of each governmental agency or authority, whether federal, state or local,
     which may be required by the Company in order to effect such Shelf
     Registration or the offering or sale contemplated thereby;

          (xiv)in the case of an underwritten offering, use reasonable best
     efforts to obtain legal opinions and accountants' "comfort letters"
     addressed to the holders, any placement or sales agent and any underwriter
     in forms customary for public offerings of securities;

          (xv) provide a CUSIP number for all such Registrable Securities, not
     later than the applicable Effective Time;

          (xvi)in the case of an underwritten offering, enter into one or more
     underwriting agreements, engagement letters, agency agreements, "best
     efforts" underwriting agreements or similar agreements, as appropriate,
     including customary provisions relating to indemnification and
     contribution, and take such other actions in connection therewith that the
     Majority Holders shall reasonably request in order to expedite or
     facilitate the disposition of such Registrable Securities;

          (xvii) use reasonable best efforts to comply with all applicable rules
     and regulations of the Commission, and make generally available to its
     securityholders as soon as practicable, an earning statement of the Company
     and its subsidiaries complying with Section 11(a) of the Securities Act
     (including, at the option of the Company, Rule 158 thereunder).

     (e) In the event that the Company would be required, pursuant to Section
3(d)(viii)(F) above, to notify the holders selling Registrable Securities
pursuant to a Shelf Registration Statement, the placement or sales agent, if
any, therefor and the managing underwriters, if any, thereof, the Company shall
prepare and furnish to each such holder, to each placement or sales agent, if
any, and to each such underwriter, if any, a reasonable number of copies of

                                      -13-

<PAGE>

     a prospectus supplemented or amended so that, as thereafter delivered to
     purchasers of such Registrable Securities, such prospectus shall conform in
     all material respects to the applicable requirements of the Securities Act
     and the Trust Indenture Act and the rules and regulations of the Commission
     thereunder and shall not contain an untrue statement of a material fact or
     omit to state a material fact required to be stated therein or necessary to
     make the statements therein, in the light of the circumstances under which
     they were made, not misleading. Each such holder agrees that upon receipt
     of any notice from the Company pursuant to Section 3(d)(viii)(F) hereof,
     such holder shall forthwith discontinue the disposition of the Registrable
     Securities pursuant to the Shelf Registration Statement applicable to such
     Registrable Securities until such holder shall have received copies of such
     amended or supplemented prospectus; and if so directed by the Company, such
     holder shall deliver to the Company (at the Company's expense) all copies,
     other than permanent file copies, of the prospectus covering such
     Registrable Securities in such holder's possession at the time of receipt
     of such notice.

          (f) In the event the Company is required to file a Shelf Registration
     Statement pursuant to Section 2(b), in addition to the information required
     to be provided in its Notice and Questionnaire by each holder selling
     Registrable Securities pursuant to such Shelf Registration Statement, the
     Company may require such holder to furnish to the Company such additional
     information regarding such holder's intended method of distribution of the
     Registrable Securities if required in order to comply with the Securities
     Act. Each such holder agrees to notify the Company as promptly as
     practicable of any material inaccuracy or material change in information
     previously furnished by such holder to the Company or of the occurrence of
     any event in either case as a result of which any prospectus relating to
     such Shelf Registration contains or would contain an untrue statement of a
     material fact regarding such holder or such holder's intended method of
     disposition of such Registrable Securities or omits to state any material
     fact regarding such holder or such holder's intended method of disposition
     of such Registrable Securities required to be stated therein or necessary
     to make the statements therein, in the light of the circumstances under
     which they were made, not misleading, and promptly to furnish to the
     Company any additional information required to correct and update any
     previously furnished information or required so that such prospectus shall
     not contain, with respect to such holder or the disposition of such
     Registrable Securities, an untrue statement of a material fact or omit to
     state a material fact required to be stated therein or necessary to make
     the statements therein, in the light of the circumstances under which they
     were made, not misleading.

          (g) Until the expiration of two years after the Closing Date, the
     Company will not, and will not permit any of its "affiliates" (as defined
     in Rule 144) to, resell any of the Securities that have been reacquired by
     any of them except pursuant to an effective registration statement under
     the Securities Act.

          4. Registration Expenses.

          The Company agrees to bear and to pay or cause to be paid all expenses
incident to the Company's performance of or compliance with this Exchange and
Registration Rights Agreement, including (a) all Commission, stock exchange or
National Association of Securities Dealers, Inc., registration, filing and
review fees and expenses including fees and disbursements

                                      -14-

<PAGE>

of counsel for the placement or sales agent or underwriters in connection with
such registration, filing and review, (b) all fees and expenses in connection
with the qualification of the Securities for offering and sale under the State
securities and blue sky laws referred to in Sections 3(c)(vi) and 3(d)(xii)
hereof and determination of their eligibility for investment under the laws of
such jurisdictions as any managing underwriters or the holders may designate,
including any fees and disbursements of counsel for the holders or underwriters
in connection with such qualification and determination, (c) all expenses
relating to the preparation, printing, production, distribution and reproduction
of each registration statement required to be filed hereunder, each prospectus
included therein or prepared for distribution pursuant hereto, each amendment or
supplement to the foregoing, the expenses of preparing the Securities for
delivery and the expenses of printing or producing any underwriting agreements,
agreements among underwriters, selling agreements and blue sky or legal
investment memoranda and all other documents in connection with the offering,
sale or delivery of Securities to be disposed of (including certificates
representing the Securities), (d) messenger, telephone and delivery expenses
relating to the offering, sale or delivery of the Securities and the preparation
of documents referred in clause (c) above, (e) fees and expenses of the Trustee
under the Indenture, any agent of the Trustee and of any collateral agent or
custodian, (f) internal expenses (including all salaries and expenses of the
Company's officers and employees performing legal or accounting duties), (g)
fees, disbursements and expenses of counsel and independent certified public
accountants of the Company (including the expenses of any opinions or "cold
comfort" letters required by or incident to such performance and compliance),
(h) reasonably incurred fees, disbursements and expenses of one counsel for the
holders retained in connection with a Shelf Registration and an Exchange
Registration, as selected by the Majority Holders (which counsel shall be
reasonably satisfactory to the Company and approved by the Company in writing,
it being agreed that Dewey Ballantine LLP is hereby found to be reasonably
satisfactory to the Company), (i) any fees charged by securities rating services
for rating the Securities, (j) in the case of an underwritten offering, any fees
and disbursements of the underwriters customarily paid by issuers or sellers of
securities but excluding fees of counsel to the underwriters or the holders of
Registrable Securities (except as provided in clause (h) above), underwriting
discounts and commissions and transfer taxes, if any, relating to the sale or
disposition of Registrable Securities and (k) fees, expenses and disbursements
of any other persons, including special experts, retained by the Company in
connection with such registration (collectively, the "Registration Expenses").
To the extent that any Registration Expenses are incurred, assumed or paid by
any holder of Registrable Securities or any placement or sales agent therefor or
underwriter thereof, the Company shall promptly reimburse such person for the
full amount of the Registration Expenses so incurred, assumed or paid after
receipt of a request therefor. Notwithstanding the foregoing, the holders of the
Registrable Securities being registered shall pay all agency fees and
commissions and underwriting discounts and commissions attributable to the sale
of such Registrable Securities and the fees and disbursements of any counsel or
other advisors or experts retained by such holders (severally or jointly), other
than the counsel and experts specifically referred to above.

          5. Representations and Warranties.

          The Company represents and warrants to, and agrees with, the Initial
Purchasers and each of the holders from time to time of Registrable Securities
that:

                                      -15-

<PAGE>

          (a) Each registration statement covering Registrable Securities and
     each prospectus (including any preliminary or summary prospectus) contained
     therein or furnished pursuant to Section 3(c) or Section 3(d) hereof and
     any further amendments or supplements to any such registration statement or
     prospectus, when it becomes effective or is filed with the Commission, as
     the case may be, and, in the case of an underwritten offering of
     Registrable Securities, at the time of the closing under the underwriting
     agreement relating thereto, will conform in all material respects to the
     requirements of the Securities Act and the Trust Indenture Act and will not
     contain an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein in the light of the circumstances then existing not misleading; and
     at all times subsequent to the Effective Time when a prospectus would be
     required to be delivered under the Securities Act, other than from (i) such
     time as a notice has been given to holders of Registrable Securities
     pursuant to Section 3(c)(iii)(F) or Section 3(d)(viii)(F) hereof until (ii)
     such time as the Company furnishes an amended or supplemented prospectus
     pursuant to Section 3(c)(iv) or Section 3(e) hereof, each such registration
     statement, and each prospectus (including any summary prospectus) contained
     therein or furnished pursuant to Section 3(c) or Section 3(d) hereof, as
     then amended or supplemented, will conform in all material respects to the
     requirements of the Securities Act and the Trust Indenture Act and will not
     contain an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein, in the light of the circumstances under which they were made, not
     misleading; provided, however, that this representation and warranty shall
     not apply to (i) statements or omissions in the registration statement or
     the prospectus made in reliance upon and in conformity with information
     furnished in writing by a holder of Registrable Securities expressly for
     use therein and (ii) that part of the registration statement which
     constitutes the Statement of Eligibility under the Trust Indenture Act of
     the Trustee.

          (b) The documents to be incorporated by reference in the prospectus,
     when they were filed with the Commission, conformed in all material
     respects to the requirements of the Exchange Act, and none of such
     documents contained an untrue statement of a material fact or omitted to
     state a material fact necessary to make the statements therein, in the
     light of the circumstances under which they are made, not misleading; and
     any further documents so filed and incorporated by reference, when they are
     filed with the Commission, will conform in all material respects to the
     requirements of the Exchange Act and will not contain an untrue statement
     of a material fact or omit to state a material fact necessary to make the
     statements therein, in the light of the circumstances under which they are
     made, not misleading.

          (c) The compliance by the Company with all of the provisions of this
     Exchange and Registration Rights Agreement and the consummation of the
     transactions herein contemplated will not result in a breach or violation
     of any of the terms or provisions of, or constitute a default under (i) any
     indenture, mortgage, deed of trust, loan agreement or other agreement or
     instrument to which the Company or any of its subsidiaries is a party or by
     which the Company or any of its subsidiaries is bound or to which any of
     the property or assets of the Company or any of its subsidiaries is
     subject, (ii) the charter or by-laws (or similar corporate documents) of
     the Company or any of its subsidiaries, or (iii) any law, statute or any
     order, rule or regulation of any court or regulatory authority or
     governmental

                                      -16-

<PAGE>

     agency or body having jurisdiction over the Company or any of its
     subsidiaries or any of its or their properties, except, in the case of
     clauses of (i) and (iii), for such breaches, defaults and violations that
     would not result in a material adverse change in the condition, financial
     or otherwise, or in the earnings, business or operations, whether or not
     arising from transactions in the ordinary course of business, of the
     Company and its subsidiaries, considered as one entity (any such change is
     called a "Material Adverse Change"); and no consent, approval,
     authorization, order, registration or qualification of or with any court or
     any regulatory authority or other governmental agency or body is required
     for the issue and sale of the Registrable Securities or the consummation by
     the Company of the transactions contemplated by this Exchange and
     Registration Rights Agreement or the Purchase Agreement, except for the
     registration of the Registrable Securities under the Act, and the
     qualification of an indenture under the Trust Indenture Act, as
     contemplated by this Exchange and Registration Rights Agreement, and such
     consents, approvals, authorizations, registrations or qualifications as may
     be required under state securities or blue sky or insurance securities laws
     in connection with the offering and distribution of the Securities.

          6. Indemnification.

          (a) Indemnification by the Company. The Company will indemnify and
     hold harmless the Initial Purchasers each of the holders of Registrable
     Securities included in an Exchange Registration Statement or the Shelf
     Registration Statement and its partners, members, directors and officers,
     and each person, if any, who controls such holder within the meaning of
     Section 15 of the Act, and each person who participates as a placement or
     sales agent or as an underwriter, its partners, members, directors and
     officers and each person, if any, who controls such, placement or sales
     agent or underwriter within the meaning of the Act in any offering or sale
     of such Registrable Securities (i) against any losses, claims, damages or
     liabilities, joint or several, to which such holder, agent, underwriter or
     control person may become subject under the Securities Act, the Exchange
     Act or other federal or state statutory law or regulation, or at common law
     or otherwise (including in settlement of any litigation), insofar as such
     losses, claims, damages or liabilities (or actions in respect thereof)
     arise out of or are based upon an untrue statement or alleged untrue
     statement of a material fact contained in any Exchange Registration
     Statement or Shelf Registration Statement, as the case may be, under which
     such Registrable Securities were registered under the Securities Act, or
     any preliminary, final or summary prospectus contained therein or furnished
     by the Company to any such holder, agent or underwriter, or any amendment
     or supplement thereto, or arise out of or are based upon the omission or
     alleged omission to state therein a material fact required to be stated
     therein or necessary to make the statements therein not misleading, and
     will reimburse such holder, such agent, such underwriter and such control
     person for any legal or other expenses incurred by them in connection with
     investigating or defending any such loss, claim, damage, liability or
     action; provided, however, that the Company shall not be liable in any such
     case to the extent that any such loss, claim, damage or liability arises
     out of or is based upon an untrue statement or alleged untrue statement or
     omission or alleged omission made in any of such documents in reliance upon
     and in conformity with written information furnished to the Company by such
     person expressly for use therein, including but not limited to information
     furnished, in connection with a Shelf Registration Statement, by a holder
     of Securities in the Notice and Questionnaire submitted to the Company by
     such holder.

                                      -17-

<PAGE>

          (b) Indemnification by the Holders and any Agents and Underwriters.
     The Company may require, as a condition to including any Registrable
     Securities in any registration statement filed pursuant to Section 2(b)
     hereof and to entering into any underwriting agreement with respect
     thereto, that the Company shall have received an undertaking reasonably
     satisfactory to it from the holder of such Registrable Securities and from
     each underwriter named in any such underwriting agreement, severally and
     not jointly, to (i) indemnify and hold harmless the Company, each of its
     directors, each of its officers who have signed any Shelf Registration
     Statement and each person, if any, who controls the Company within the
     meaning of the Securities Act and all other holders of Registrable
     Securities, against any losses, claims, damages or liabilities to which the
     Company or any such director, officer, controlling person or such other
     holders of Registrable Securities may become subject, under the Securities
     Act, the Exchange Act or other federal or state statutory law or
     regulation, or at common law or otherwise (including in settlement of any
     litigation, if such settlement is effected with the written consent of such
     holder, agent or underwriter), insofar as such losses, claims, damages or
     liabilities (or actions in respect thereof) arise out of or are based upon
     an untrue statement or alleged untrue statement of a material fact
     contained in such registration statement, or any preliminary, final or
     summary prospectus contained therein or furnished by the Company to any
     such holder, agent or underwriter, or any amendment or supplement thereto,
     or arise out of or are based upon the omission or alleged omission to state
     therein a material fact required to be stated therein or necessary to make
     the statements therein not misleading, in each case to the extent, but only
     to the extent, that such untrue statement or alleged untrue statement or
     omission or alleged omission was made in reliance upon and in conformity
     with written information furnished to the Company by such holder or
     underwriter expressly for use therein; and will reimburse the Company, any
     director, officer or controlling person for any legal or other expenses
     reasonably incurred by the Company or any such director, officer or
     controlling person in connection with investigating or defending any such
     loss, claim, damage, liability or action.

          (c) Notices of Claims, Etc. Promptly after receipt by an indemnified
     party under subsection (a) or (b) above of notice in writing of the
     commencement of any action, such indemnified party shall, if a claim in
     respect thereof is to be made against an indemnifying party pursuant to the
     indemnification provisions under this Section 6, notify the indemnifying
     party of the commencement of such action; but the failure to so notify an
     indemnifying party shall not relieve such indemnifying party from any
     liability hereunder to the extent it is not materially prejudiced as a
     result thereof and in any event shall not relieve it from any liability
     which it may have otherwise than on account of this indemnity agreement. In
     case any such action shall be brought against any indemnified party and it
     shall notify an indemnifying party of the commencement thereof, such
     indemnifying party shall be entitled to participate therein and, to the
     extent that it may wish, jointly with any other indemnifying party
     similarly notified, to assume the defense thereof, with counsel reasonably
     satisfactory to such indemnified party (who shall not, except with the
     consent of the indemnified party, be counsel to the indemnifying party),
     and, after notice from the indemnifying party to such indemnified party of
     its election so to assume the defense thereof, such indemnifying party
     shall not be liable to such indemnified party for any legal (other than
     local counsel) or other expenses, in each case subsequently incurred by
     such indemnified party, in connection with the defense thereof other than
     reasonable costs of investigation. Notwithstanding the

                                      -18-

<PAGE>

     indemnifying party's election to appoint counsel to represent the
     indemnified party in an action, the indemnified party shall have the right
     to employ separate counsel (including local counsel), and the indemnifying
     party shall bear the reasonable fees, costs and expenses of such separate
     counsel if (i) the use of counsel chosen by the indemnifying party to
     represent the indemnified party would present such counsel with a conflict
     of interest; (ii) the actual or potential defendants in, or targets of, any
     such action include both the indemnified party and the indemnifying party
     and the indemnified party shall have reasonably concluded that there may be
     legal defenses available to it and/or other indemnified parties which are
     different from or additional to those available to the indemnifying party;
     (iii) the indemnifying party shall not have employed counsel satisfactory
     to the indemnified party to represent the indemnified party within a
     reasonable time after notice of the institution of such action; or (iv) the
     indemnifying party shall authorize the indemnified party to employ separate
     counsel at the expense of the indemnifying party. An indemnifying party
     will not, without the prior written consent of the indemnified parties,
     settle or compromise or consent to the entry of any judgment with respect
     to any pending or threatened claim, action, suit or proceeding in respect
     of which indemnification or contribution may be sought hereunder (whether
     or not the indemnified parties are actual or potential parties to such
     claim or action) unless such settlement, compromise or consent (i) includes
     an unconditional release of each indemnified party from all liability
     arising out of such claim, action, suit or proceeding and (ii) does not
     include a statement as to or an admission of fault, culpability or failure
     to act by or on behalf of any indemnified party.

          (d) Contribution. If for any reason the indemnification provisions
     contemplated by Section 6(a) or Section 6(b) hereof are unavailable to or
     insufficient to hold harmless an indemnified party in respect of any
     losses, claims, damages or liabilities (or actions in respect thereof)
     referred to therein, then each indemnifying party shall contribute to the
     amount paid or payable by such indemnified party as a result of such
     losses, claims, damages or liabilities (or actions in respect thereof) in
     such proportion as is appropriate to reflect the relative fault of the
     indemnifying party and the indemnified party in connection with the
     statements or omissions which resulted in such losses, claims, damages or
     liabilities (or actions in respect thereof), as well as any other relevant
     equitable considerations. The relative fault of such indemnifying party and
     indemnified party shall be determined by reference to, among other things,
     whether the untrue or alleged untrue statement of a material fact or
     omission or alleged omission to state a material fact relates to
     information supplied by such indemnifying party or by such indemnified
     party, and the parties' relative intent, knowledge, access to information
     and opportunity to correct or prevent such statement or omission. The
     parties hereto agree that it would not be just and equitable if
     contributions pursuant to this Section 6(d) were determined by pro rata
     allocation (even if the holders or any agents or underwriters or all of
     them were treated as one entity for such purpose) or by any other method of
     allocation which does not take account of the equitable considerations
     referred to in this Section 6(d). The amount paid or payable by an
     indemnified party as a result of the losses, claims, damages or liabilities
     (or actions in respect thereof) referred to above in this subsection (d)
     shall be deemed to include any legal or other expenses incurred by such
     indemnified party in connection with investigating or defending any such
     action or claim. Notwithstanding the provisions of this subsection (d), no
     holder shall be required to contribute any amount in excess of the amount
     by which the total price at which Registrable

                                      -19-

<PAGE>

     Securities sold by it were offered exceeds the amount of damages that such
     holder has otherwise been required to pay by reason of any untrue or
     alleged untrue statement or omission or alleged omission. No person guilty
     of fraudulent misrepresentation (within the meaning of Section 11(f) of the
     1933 Act) shall be entitled to contribution from any person who was not
     guilty of such fraudulent misrepresentation.

          7. Underwritten Offerings.

          (a) Selection of Underwriters. If any of the Registrable Securities
     covered by a Shelf Registration are to be sold pursuant to an underwritten
     offering, the managing underwriter or underwriters thereof shall be
     designated by Majority Holders of such Registrable Securities included in
     such offering, provided that such designated managing underwriter or
     underwriters is or are reasonably acceptable to the Company, such
     acceptance not to be unreasonably withheld.

          (b) Participation by Holders. Each holder of Registrable Securities
     hereby agrees with each other such holder that no such holder may
     participate in any underwritten offering hereunder unless such holder (i)
     agrees to sell such holder's Registrable Securities on the basis provided
     in any underwriting arrangements approved by the persons entitled hereunder
     to approve such arrangements and (ii) completes and executes all
     questionnaires, powers of attorney, indemnities, underwriting agreements
     and other documents reasonably required under the terms of such
     underwriting arrangements.

          8. Rule 144.

          The Company covenants to the holders of Registrable Securities that to
the extent it shall be required to do so under the Exchange Act, the Company
shall timely file the reports required to be filed by it under the Exchange Act
or the Securities Act (including the reports under Section 13 and 15(d) of the
Exchange Act referred to in subparagraph (c)(1) of Rule 144 adopted by the
Commission under the Securities Act) and the rules and regulations adopted by
the Commission thereunder, and shall take such further action as any holder of
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such holder to sell Registrable Securities without
registration under the Securities Act within the limitations of the exemption
provided by Rule 144 under the Securities Act, as such Rule may be amended from
time to time, or any similar or successor rule or regulation hereafter adopted
by the Commission. Upon the request of any holder of Registrable Securities in
connection with that holder's sale pursuant to Rule 144, the Company shall
deliver to such holder a written statement as to whether it has complied with
such requirements.

          9. Miscellaneous.

          (a) Notices. All notices, requests, claims, demands, waivers and other
     communications hereunder shall be in writing and shall be deemed to have
     been duly given when delivered by hand, if delivered personally or by
     courier, or three days after being deposited in the mail (registered or
     certified mail, postage prepaid, return receipt requested) as follows: If
     to the Company, to it at 2204 Lakeshore Drive, Birmingham, Alabama 35209,
     Facsimile: 205-803-8080, Attention: Secretary, and if to a holder, to the
     address of such holder set forth in the

                                      -20-

<PAGE>

     security register or other records of the Company, or to such other address
     as the Company or any such holder may have furnished to the other in
     writing in accordance herewith, except that notices of change of address
     shall be effective only upon receipt.

          (b) Parties in Interest. All the terms and provisions of this Exchange
     and Registration Rights Agreement shall be binding upon, shall inure to the
     benefit of and shall be enforceable by the parties hereto and the holders
     from time to time of the Registrable Securities and the respective
     successors and assigns of the parties hereto and such holders, its
     partners, members, directors, officers, controlling persons and all other
     persons referred to in Section 6 hereof. In the event that any transferee
     of any holder of Registrable Securities shall acquire Registrable
     Securities, in any manner, whether by gift, bequest, purchase, operation of
     law or otherwise, such transferee shall, without any further writing or
     action of any kind, be deemed a beneficiary hereof for all purposes and
     such Registrable Securities shall be held subject to all of the terms of
     this Exchange and Registration Rights Agreement, and by taking and holding
     such Registrable Securities such transferee shall be entitled to receive
     the benefits of, and be conclusively deemed to have agreed to be bound by
     all of the applicable terms and provisions of this Exchange and
     Registration Rights Agreement. If the Company shall so request, any such
     successor, assign or transferee shall agree in writing to acquire and hold
     the Registrable Securities subject to all of the applicable terms hereof.

          (c) Survival. The respective indemnities, agreements, representations,
     warranties and each other provision set forth in this Exchange and
     Registration Rights Agreement or made pursuant hereto shall remain in full
     force and effect regardless of any investigation (or statement as to the
     results thereof) made by or on behalf of any holder of Registrable
     Securities, its partners, members, directors and officers, and each person,
     if any, who controls such holder, any agent or underwriter, its partners,
     members, directors and officers, and each person, if any, who controls any
     of the foregoing within the meaning of Section 15 of the Act, and shall
     survive delivery of and payment for the Registrable Securities pursuant to
     the Purchase Agreement and the transfer and registration of Registrable
     Securities by such holder and the consummation of an Exchange Offer.

          (d) GOVERNING LAW. THIS EXCHANGE AND REGISTRATION RIGHTS AGREEMENT
     SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
     OF NEW YORK.

          (e) Headings. The descriptive headings of the several Sections and
     paragraphs of this Exchange and Registration Rights Agreement are inserted
     for convenience only, do not constitute a part of this Exchange and
     Registration Rights Agreement and shall not affect in any way the meaning
     or interpretation of this Exchange and Registration Rights Agreement.

          (f) Entire Agreement; Amendments. This Exchange and Registration
     Rights Agreement and the other writings referred to herein (including the
     Indenture and the forms of Securities) or delivered pursuant hereto which
     form a part hereof contain the entire understanding of the parties with
     respect to its subject matter. This Exchange and Registration Rights
     Agreement supersedes all prior agreements and understandings between the
     parties with respect to its subject matter. This Exchange and Registration
     Rights Agreement may be amended and the observance of any term of this
     Exchange and Registration Rights Agreement may be waived (either generally
     or in a particular instance and either retroactively or prospectively) only
     by

                                      -21-

<PAGE>

     a written instrument duly executed by the Company and UBS Securities LLC
     and Lehman Brothers Inc. Each holder of any Registrable Securities at the
     time or thereafter outstanding shall be bound by any amendment or waiver
     effected pursuant to this Section 9(f), whether or not any notice, writing
     or marking indicating such amendment or waiver appears on such Registrable
     Securities or is delivered to such holder. Any such amendment may be
     retroactive so long as such amendment does not adversely affect the rights
     of any holder of Registrable Securities in any material respect. In the
     case of any amendment that materially and adversely affects the rights of a
     holder of Registrable Securities, such amendment must be approved by the
     holders of Registrable Securities of not less than a majority of the
     Registrable Securities held by the materially and adversely affected
     holders of Registrable Securities.

          (g) Counterparts. This agreement may be executed by the parties in
     counterparts, each of which shall be deemed to be an original, but all such
     respective counterparts shall together constitute one and the same
     instrument.

                                      -22-

<PAGE>

          If the foregoing is in accordance with your understanding, please sign
and return to us five counterparts hereof, and upon the acceptance hereof by
you, this letter and such acceptance hereof shall constitute a binding agreement
between the Initial Purchasers and the Company.

                                       Very truly yours,

                                       INFINITY PROPERTY AND CASUALTY
                                       CORPORATION

                                       By:________________________________
                                          Name:
                                          Title:

The foregoing Exchange and Registration Rights Agreement is
hereby confirmed and accepted as of the date first above
written.

LEHMAN BROTHERS INC.

By:________________________________
   Name:
   Title:

UBS SECURITIES LLC

By:________________________________
   Name:
   Title:

By:
   Name:
   Title:

Acting on behalf of themselves and as the
representatives of the Initial Purchasers

                                      -23-

<PAGE>

                                                                       EXHIBIT A

                   INFINITY PROPERTY AND CASUALTY CORPORATION

                         INSTRUCTION TO DTC PARTICIPANTS

                                (Date of Mailing)

                     URGENT - IMMEDIATE ATTENTION REQUESTED

                          DEADLINE FOR RESPONSE: [DATE]

The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in Infinity Property and Casualty Corporation
(the "Company") 5.50% Senior Notes Due 2014 (the "Securities") are held.

The Company is in the process of registering the Securities under the Securities
Act of 1933 for resale by the beneficial owners thereof. In order to have their
Securities included in the registration statement, beneficial owners must
complete and return the enclosed Notice of Registration Statement and Selling
Securityholder Questionnaire.

It is important that beneficial owners of the Securities receive a copy of the
enclosed materials as soon as possible as their rights to have the Securities
included in the registration statement depend upon their returning the Notice
and Questionnaire by [DEADLINE FOR RESPONSE]. Please forward a copy of the
enclosed documents to each beneficial owner that holds interests in the
Securities through you. If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact Infinity Property
and Casualty Corporation, 2204 Lakeshore Drive, Birmingham, Alabama 35209,
Attention: Secretary, Facsimile: 205-803-8080.

                                       A-1

<PAGE>

                   INFINITY PROPERTY AND CASUALTY CORPORATION

                        Notice of Registration Statement

                                       and

                      Selling Securityholder Questionnaire

                                     (Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the
"Exchange and Registration Rights Agreement") between Infinity Property and
Casualty Corporation (the "Company") and the Initial Purchasers named therein.
Pursuant to the Exchange and Registration Rights Agreement, the Company has
filed with the Securities and Exchange Commission (the "Commission") a
registration statement on Form S-3 (the "Shelf Registration Statement") for the
registration and resale under Rule 415 of the Securities Act of 1933, as amended
(the "Securities Act"), of the Company's 5.50% Senior Notes Due 2014 (the
"Securities"). A copy of the Exchange and Registration Rights Agreement is
attached hereto. All capitalized terms not otherwise defined herein shall have
the meanings ascribed thereto in the Exchange and Registration Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement. In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Company's counsel at the address set
forth herein for receipt ON OR BEFORE [DEADLINE FOR RESPONSE]. Beneficial owners
of Registrable Securities who do not complete, execute and return this Notice
and Questionnaire by such date (i) will not be named as selling securityholders
in the Shelf Registration Statement and (ii) may not use the prospectus forming
a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related prospectus. Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related prospectus.

The term "Registrable Securities" is defined in the Exchange and Registration
Rights Agreement.

                                       A-2

<PAGE>

                                    ELECTION

The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3). The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Exchange and Registration Rights
Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Company
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the
Company and represents and warrants that such information is accurate and
complete:

                                       A-3

<PAGE>

                                  QUESTIONNAIRE

(1)  (a)  Full Legal Name of Selling Securityholder:

     (b)  Full Legal Name of Registered Holder (if not the same as in (a) above)
          of Registrable Securities Listed in Item (3) below:

     (c)  Full Legal Name of DTC Participant (if applicable and if not the same
          as (b) above) Through Which Registrable Securities Listed in Item (3)
          below are Held:

(2)       Address for Notices to Selling Securityholder:

          _________________
          _________________
          _________________

          Telephone:     ________________
          Fax:           ________________
          Contact Person:________________

(3)       Beneficial Ownership of Securities:

          Except as set forth below in this Item (3), the undersigned does not
          beneficially own any Securities.

     (a)  Principal amount of Registrable Securities beneficially owned: $ _____

          CUSIP No(s). of such Registrable Securities: No(s). __________________

     (b)  Principal amount of Securities other than Registrable Securities
          beneficially owned: $____________________

          CUSIP No(s). of such other Securities: No(s). __________________

     (c)  Principal amount of Registrable Securities which the undersigned
          wishes to be included in the Shelf Registration Statement: $__________

          CUSIP No(s). of such Registrable Securities to be included in the
          Shelf Registration Statement: No(s).____________________

(4)       Beneficial Ownership of Other Securities of the Company:

          Except as set forth below in this Item (4), the undersigned Selling
          Securityholder is not the beneficial or registered owner of any other
          securities of the Company, other than the Securities listed above in
          Item (3).

                                       A-4

<PAGE>

          State any exceptions here:

(5)       Relationships with the Company:

          Except as set forth below, neither the Selling Securityholder nor any
          of its affiliates, officers, directors or principal equity holders (5%
          or more) has held any position or office or has had any other material
          relationship with the Company (or its predecessors or affiliates)
          during the past three years.

          State any exceptions here:

(6)       Plan of Distribution:

          Except as set forth below, the undersigned Selling Securityholder
          intends to distribute the Registrable Securities listed above in Item
          (3) only as follows (if at all): Such Registrable Securities may be
          sold from time to time directly by the undersigned Selling
          Securityholder or, alternatively, through underwriters, broker-dealers
          or agents. Such Registrable Securities may be sold in one or more
          transactions at fixed prices, at prevailing market prices at the time
          of sale, at varying prices determined at the time of sale, or at
          negotiated prices. Such sales may be effected in transactions (which
          may involve crosses or block transactions) (i) on any national
          securities exchange or quotation service on which the Registered
          Securities may be listed or quoted at the time of sale, (ii) in the
          over-the-counter market, (iii) in transactions otherwise than on such
          exchanges or services or in the over-the-counter market, or (iv)
          through the writing of options. In connection with sales of the
          Registrable Securities or otherwise, the Selling Securityholder may
          enter into hedging transactions with broker-dealers, which may in turn
          engage in short sales of the Registrable Securities in the course of
          hedging the positions they assume. The Selling Securityholder may also
          sell Registrable Securities short and deliver Registrable Securities
          to close out such short positions, or loan or pledge Registrable
          Securities to broker-dealers that in turn may sell such securities.

          State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Company, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

                                       A-5

<PAGE>

By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus. The Selling Securityholder understands that such information
will be relied upon by the Company in connection with the preparation of the
Shelf Registration Statement and related Prospectus.

In accordance with the Selling Securityholder's obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Company of any material
inaccuracies or material changes in the information provided herein which may
occur subsequent to the date hereof at any time while the Shelf Registration
Statement remains in effect. All notices hereunder and pursuant to the Exchange
and Registration Rights Agreement shall be made in writing, by hand-delivery,
first-class mail, or air courier guaranteeing overnight delivery as follows:

                    (i)       To the Company:

                              Infinity Property and Casualty Corporation
                              2204 Lakeshore Drive
                              Birmingham, Alabama 35209
                              Facsimile: 205-803-8080
                              Attention: Secretary

                    (ii)      With a copy to:

                              Keating, Muething & Klekamp
                              1 East Fourth Street, 14th Floor
                              Cincinnati, OH 45202
                              Facsimile: 513-579-6956
                              Attention: Mark A. Weiss

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Company's counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Company and the
Selling Securityholder with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above. This Exchange
and Registration Rights Agreement shall be governed in all respects by the laws
of the State of New York.

                                       A-6

<PAGE>

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated:____________________

                        ________________________________________________________
                        Selling Securityholder
                        (Print/type full legal name of beneficial owner of
                        Registrable Securities)

                        By:_____________________________________________________
                        Name:
                        Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE [DEADLINE FOR RESPONSE] TO THE COMPANY'S COUNSEL AT:

                                    Keating, Muething & Klekamp
                                    1 East Fourth Street, 14th Floor
                                    Cincinnati, OH  45202
                                    Facsimile:  513-579-6956
                                    Attention:  Mark A. Weiss

                                       A-7

<PAGE>

                                                                       EXHIBIT B

              NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

[____________________]

Attention: Corporate Trust Administration

          Re:       Infinity Property and Casualty Corporation (the "Company")
                    5.50% Senior Notes Due 2014

Dear Sirs:

Please be advised that ________________has transferred $___________________
aggregate principal amount of the 5.50% Senior Notes Due 2014 pursuant to an
effective Registration Statement on Form (File No. 333-______ ) filed by the
Company.

We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the 5.50% Senior Notes Due 2014 (individually and
collectively known as the "Notes") is named as a "Selling Holder" in the
Prospectus dated [DATE] or in supplements thereto, and that the aggregate
principal amount of the Notes transferred are the Notes listed in such
Prospectus opposite such owner's name.

Dated:

                                        Very truly yours,

                                                  ______________________________
                                                  (Name)

                                                  By:___________________________
                                                       (Authorized Signature)

                                       B-1

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