Document:

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                                                                    EXHIBIT 10.1

                           MEDICAL SERVICES AGREEMENT

                                     BETWEEN

             COMMONWEALTH OF PENNSYLVANIA, DEPARTMENT OF CORRECTIONS

                                       AND

                          PRISON HEALTH SERVICES, INC.

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                                    TABLE OF CONTENTS

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<S>                                                                                                     <C>
INTRODUCTION.............................................................................................4

WITNESSING PART..........................................................................................4

ARTICLE 1   COMMENCEMENT DATE, TERM, AND TERMINATION.....................................................4

ARTICLE 2   SERVICES.....................................................................................5

ARTICLE 3   COMPENSATION, BILLING, AND COST ADJUSTMENTS..................................................6

ARTICLE 4   NON-APPROPRIATION OF FUNDS AND TERMINATION...................................................8

ARTICLE 5   PROVIDER PERSONNEL...........................................................................8

ARTICLE 6   EVENTS OF DEFAULT...........................................................................10

ARTICLE 7   NOTICE OF DEFAULT, CURE, AND TERMINATION UPON DEFAULT.......................................10

ARTICLE 8   RISK OF LOSS AND INDEMNIFICATION............................................................11

ARTICLE 9   FORCE MAJEURE...............................................................................13

ARTICLE 10  INDEPENDENT CAPACITY OF THE PARTIES.........................................................14

ARTICLE 11  REPRESENTATIONS AND WARRANTIES..............................................................14

ARTICLE 12  FURTHER DOCUMENTS AND ASSURANCES............................................................15

ARTICLE 13  NOTICE AND CHANGES OF ADDRESS...............................................................15

ARTICLE 14  ASSIGNMENT, DELEGATION, AND SUCCESSION......................................................16

ARTICLE 15  COMPLIANCE WITH LAW AND STANDARD PRACTICES..................................................17

ARTICLE 16  NONDISCRIMINATION/SEXUAL HARASSMENT CLAUSE..................................................17

ARTICLE 17  CONTRACTOR INTEGRITY PROVISIONS.............................................................18

ARTICLE 18  CONTRACTOR RESPONSIBILITY PROVISIONS........................................................20

ARTICLE 19  AMERICANS WITH DISABILITIES ACT.............................................................22

ARTICLE 20  HAZARDOUS SUBSTANCES........................................................................22

ARTICLE 21  ENVIRONMENTAL PROVISIONS....................................................................24

ARTICLE 22  APPLICABLE LAW..............................................................................24

ARTICLE  23 SEVERABILITY...............................................................................24

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<TABLE>
<S>                                                                                                    <C>
ARTICLE 24   NO WAIVER..................................................................................25

ARTICLE 25  THIRD PARTY RIGHTS..........................................................................25

ARTICLE 26  TITLES AND CAPTIONS.........................................................................25

ARTICLE 27  APPENDICES, ATTACHMENTS, EXHIBITS, & SCHEDULES..............................................25

ARTICLE 28  ORDER OF PRECEDENCE AND INTERPRETATION......................................................26

ARTICLE 29  AUDIT PROVISIONS............................................................................26

ARTICLE 30  COMPLETE AGREEMENT AND MODIFICATION.........................................................26

ARTICLE 31  SERB COMMITMENTS............................................................................27

SIGNATURE PAGE..........................................................................................29

ATTACHMENTS

ONE:    REQUEST FOR PROPOSAL

TWO:    PROPOSAL

THREE:  COST PROPOSAL

FOUR:   SUPPLEMENTAL PROVISIONS
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                           MEDICAL SERVICES AGREEMENT

         This Medical Services Agreement ("AGREEMENT") is made and entered into
this first day of September, 2003 at Camp Hill in the County of Cumberland,
Pennsylvania, by and between Prison Health Services, Inc. ("PROVIDER"), a
Delaware corporation, duly operating under the laws of the Commonwealth of
Pennsylvania, with its principal offices at 105 Westpark, Dr. Suite 200,
Brentwood, TN 37027 and the Commonwealth of Pennsylvania, Department of
Corrections, 2520 Lisburn Road, P.O. Box 598, Camp Hill, PA 17001-0598
("DEPARTMENT").

                                   WITNESSETH:

         WHEREAS, DEPARTMENT operates twenty-seven correctional facilities at
Albion, Cambridge Springs, Camp Hill, Chester, Coal Township, Cresson, Dallas,
Fayette, Frackville, Graterford, Greene, Greensburg, Houtzdale, Huntingdon,
Laurel Highlands, Mahanoy, Mercer, Muncy, Pine Grove, Pittsburgh, Quehanna,
Retreat, Rockview, Smithfield, Somerset, Waymart, and Waynesburg,
("FACILITIES"); and

         WHEREAS, the DEPARTMENT may wish to add, and PROVIDER is willing to
provide services at other institutions; and

         WHEREAS, DEPARTMENT has determined that it is in the best interest of
the Commonwealth of Pennsylvania to procure medical services to the FACILITIES
through a contract provider; and

         WHEREAS, PROVIDER is willing to provide medical services to DEPARTMENT
and FACILITIES under the terms and conditions of this AGREEMENT;

         NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE 1
                    COMMENCEMENT DATE, TERM, AND TERMINATION

         1.1.     The commencement date of this AGREEMENT shall be September 1,
                  2003, provided that this AGREEMENT is fully executed and
                  approved by necessary Commonwealth of Pennsylvania officials
                  and a notice to proceed is provided. The term of this
                  AGREEMENT shall begin on the commencement date and run
                  continuously from such day until and including August 31, 2008
                  unless earlier terminated as provided for by this AGREEMENT.

         1.2.     DEPARTMENT may terminate this AGREEMENT for convenience and
                  without cause upon six (6) months advance written notice.
                  PROVIDER

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                  may terminate this AGREEMENT for convenience and without cause
                  anytime after the first eighteen (18) months from the
                  commencement of this agreement upon nine (9) months advance
                  written notice, provided however, that PROVIDER may state in
                  the termination notice that it wants the termination to take
                  place in six (6) months rather than nine (9). If the PROVIDER
                  seeks a six (6) month termination time, DEPARTMENT shall use
                  reasonable efforts to replace these contractual services in
                  accordance with its procurement rules and processes as close
                  to six (6) months as possible, but in no case shall this
                  procurement process cause this termination to be any longer
                  than nine (9) months. Any such termination shall be effected
                  by delivery to the other party of a written notice of
                  termination. In the event that the DEPARTMENT exercises the
                  option to terminate pursuant to this section, the parties
                  agree that, in no event, and under no circumstances, will the
                  PROVIDER be paid for or make claim for loss of anticipated
                  profit or revenue. DEPARTMENT may elect to discontinue having
                  the PROVIDER deliver general health care and specialized
                  medical services to inmates incarcerated at one or more
                  FACILITIES or discontinue having the PROVIDER deliver a
                  specific general health care or specialized medical service to
                  one or more FACILITIES upon six months advance written notice.
                  The costs of these services would be withdrawn from the
                  contract. and the PROVIDER's compensation would be similarly
                  reduced, as mutually agreed in writing.

         1.3.     Other provisions under which this AGREEMENT may be terminated
                  are set forth under Articles 4, 6, 7 and 14.

                                    ARTICLE 2
                                    SERVICES

         2.1.     The PROVIDER shall deliver general health care and specialized
                  medical services to inmates incarcerated at the FACILITIES.

         2.2.     Except to the extent modified herein, services shall be as
                  described in the:

                  1.       Request for Proposal ("R.F.P.") issued by the
                           DEPARTMENT on February 27, 2003 and amended on March
                           13, 2003, March 25, 2003, April 3, 2003, April 10,
                           2003 and April 15, 2003 and appended hereto as
                           Attachment One and incorporated by reference and made
                           a part hereof; and

                  2.       Proposal submitted by the PROVIDER, dated May 1,
                           2003, and amended on June 10, 2003 and appended
                           hereto as Attachment Two, and incorporated by
                           reference and made a part hereof; and

                  3.       Cost Proposal submitted by the PROVIDER, dated July
                           25, 2003,

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                           which is appended hereto as Attachment Three, and
                           which is incorporated by reference and made a part
                           hereof; and

                  4.       Supplemental Provisions, which is appended hereto as
                           Attachment Four, and incorporated by reference and
                           made a part hereof.

         2.3.     The PROVIDER is responsible for all general health care and
                  specialized medical services provided for in this AGREEMENT,
                  whether or not it provides such services directly or through
                  the use of independent contractors or subcontractors.

                  1.       The PROVIDER shall be the sole point of contact with
                           the DEPARTMENT in regard to all contractual matters
                           arising under this AGREEMENT.

         2.4.     As set forth in the RFP and upon the request of the
                  DEPARTMENT, the PROVIDER shall serve as a consultant to the
                  DEPARTMENT in the development or review of the DEPARTMENT's
                  policies that affect the delivery of general health care and
                  specialized medical care.

         2.5.     The PROVIDER shall submit a performance guarantee to the
                  DEPARTMENT in the amount of $5,000,000 within ten working days
                  following PROVIDER's execution of this document.

                                    ARTICLE 3
                   COMPENSATION, BILLING, AND COST ADJUSTMENTS

         3.1.     The DEPARTMENT shall compensate the PROVIDER in accordance
                  with the provisions of Attachment Three and Attachment Four.

         3.2.     This AGREEMENT does not entitle PROVIDER to compensation for
                  services or service hours not actually provided to or used by
                  DEPARTMENT.

         3.3.     The DEPARTMENT cannot make any advance payments for service.

         3.4.     The PROVIDER shall submit all invoices for service to the
                  DEPARTMENT at the following address: Department of
                  Corrections, P.O. Box 598, Camp Hill, PA 17001-0598,
                  Attention: Accounts Payable.

         3.5.     Except as expressly provided for in Section 3.6 below, in the
                  event that any statute, governmental rule or regulation, court
                  order or DEPARTMENT policy is enacted, promulgated, issued or
                  adopted after the commencement date of this AGREEMENT which
                  expressly mandates the delivery of services not required under
                  this AGREEMENT or expressly directs the increase in frequency
                  or amount of services beyond that required to be rendered
                  under this AGREEMENT, the PROVIDER and the DEPARTMENT shall
                  enter into

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                           negotiations upon the receipt by the Director of the
                           Bureau of Health Care Services of the PROVIDER's
                           written request for contract amendment, which request
                           shall specify the reason(s) for the request and which
                           shall also set forth, in detail, the impact of the
                           statute, governmental rule or regulation, court
                           order, or DEPARTMENT policy on the PROVIDER's
                           performance in terms of services and costs. Upon
                           reaching agreement on the amount of compensation to
                           be paid for the increase in service, the parties
                           shall execute a written amendment to this AGREEMENT,
                           which amendment shall be effective upon its full and
                           final execution.

                  3.6.     In the event that the DEPARTMENT requires that the
                           PROVIDER immediately provide specific services in
                           order to preserve the health, safety and well-being
                           of the DEPARTMENT's employees or the inmates, or the
                           property of the Commonwealth, the DEPARTMENT's
                           Director of the Bureau of Health Care services shall
                           review and approve the provision of additional
                           compensation for emergency services by the PROVIDER
                           prior to the performance of services.

                  3.7.     Where natural disaster, other emergency, or
                           administrative efficiency results in the closure or a
                           significant reduction in use of one or more of the
                           FACILITIES, the DEPARTMENT may conduct a special
                           audit to determine the need for services under this
                           AGREEMENT. PROVIDER agrees to reallocate or reduce
                           services or service hours in accordance with the
                           findings of the DEPARTMENT's audit. Compensation due
                           PROVIDER shall be adjusted commensurate with
                           reduction or reallocation in services. Reallocations
                           that do not increase or decrease overall services
                           shall occur without additional compensation due to
                           PROVIDER.

                  3.8.     The DEPARTMENT may transfer inmates between the
                           FACILITIES and to and from other prison and
                           pre-release facilities operated and used by the
                           DEPARTMENT throughout the Commonwealth of
                           Pennsylvania and receive inmates from other states
                           and the United States pursuant to the laws and
                           compacts governing the trans-jurisdictional custody
                           of foreign prisoners. The transfer of prisoners,
                           regardless of their medical condition or the extent
                           of medical care they previously received, to any of
                           the FACILITIES does not entitle the PROVIDER to
                           increased compensation under any provision of this
                           AGREEMENT.

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                                    ARTICLE 4
                   NON-APPROPRIATION OF FUNDS AND TERMINATION

                  4.1.     Any payment obligation or portion thereof incurred by
                           the DEPARTMENT as a result of this AGREEMENT is
                           conditioned upon the appropriation and availability
                           of funds which are appropriated or allocated for the
                           payment of any obligation, or portion thereof. The
                           DEPARTMENT agrees to take all reasonable steps to
                           secure such appropriations. In the event that the
                           DEPARTMENT fails to make payments due under this
                           AGREEMENT for reason of lack of adequate
                           appropriations from the General Assembly to operate
                           one or more of the FACILITIES, the obligation to make
                           future payments shall cease except for those payments
                           for which funds were appropriated but not paid. Said
                           payments constitute current expenses of the
                           DEPARTMENT and the DEPARTMENT's obligations under
                           this AGREEMENT are from year to year only and do not
                           constitute a mandatory payment obligation of the
                           DEPARTMENT in any ensuing Fiscal Year beyond the
                           current Fiscal Year. No provision of this AGREEMENT
                           shall be construed or interpreted as creating a
                           general obligation or other indebtedness of the
                           Commonwealth within the meaning of any constitutional
                           or statutory debt limitation. In the event that
                           sufficient funds are not appropriated or allocated,
                           either the PROVIDER or the DEPARTMENT may terminate
                           this AGREEMENT. No penalty shall accrue to the
                           DEPARTMENT in the event that either party exercises
                           this option to terminate and PROVIDER shall make no
                           claim for lost profit or revenue.

                                    ARTICLE 5
                               PROVIDER PERSONNEL

                  5.1.     The PROVIDER may engage medical professionals, either
                           individuals or business entities that are licensed to
                           conduct business in the Commonwealth, as independent
                           contractors or as subcontractors, to assist the
                           PROVIDER in rendering services.

                  5.2.     The DEPARTMENT reserves the right to approve or
                           disapprove each individual or business entity whether
                           it be an independent contractor or subcontractor that
                           the PROVIDER seeks to use. PROVIDER shall not engage,
                           employ or retain any independent contractor or
                           subcontractor rejected, banned, suspended or debarred
                           by the DEPARTMENT or the Commonwealth of
                           Pennsylvania.

                  5.3.     The PROVIDER shall not employ, nor engage any agent,
                           affiliate, independent contractor or subcontractor or
                           any person to perform services within the FACILITIES
                           without prior clearance by the DEPARTMENT. No less
                           than two (2) weeks prior to the anticipated starting
                           date of employment or engagement, the PROVIDER shall
                           submit to the FACILITY Health Care Administrator a
                           written request for security clearance which shall
                           include the full name, address, date of birth, social
                           security number, driver's license number and state of
                           license of each prospective employee or other person
                           engaged to perform services. Additionally, the
                           request shall include a

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                           notarized statement from the prospective employee or
                           other person attesting to whether he or she was ever
                           arrested for, or convicted of a felony, misdemeanor
                           or summary charge, exclusive of traffic and juvenile
                           violations. Such statement shall include details of
                           the circumstances surrounding any arrest(s) or
                           conviction(s).

                           1.       In the event of an emergency which creates
                                    an immediate need for alternative or
                                    additional staffing, the DEPARTMENT may
                                    waive the procedures specified in Section
                                    5.3. Further, in such event, as soon as
                                    practicable after the onset of the
                                    emergency, the PROVIDER may submit a written
                                    or oral request for expedited clearance to
                                    the Corrections Health Care Administrator,
                                    supplying the full name, address, date of
                                    birth, and social security number of the
                                    prospective employee or other person. The
                                    notarized statement and driver's license
                                    information described in Section 5.3 above
                                    shall be submitted as soon as possible.

                           2.       The PROVIDER shall establish a procedure
                                    whereby its employees or other persons
                                    engaged to provide services are required to
                                    immediately notify the PROVIDER when those
                                    employees or other persons are arrested
                                    and/or convicted of a felony, misdemeanor or
                                    summary offense, exclusive of traffic
                                    violations. The PROVIDER shall immediately
                                    notify the Corrections Health Care
                                    Administrator at the affected FACILITY(IES).

                  5.4.     The DEPARTMENT reserves the right to make entries and
                           notations in the Commonwealth's Contractor
                           Responsibility File and to suspend or debar pursuant
                           to the Commonwealth Contractor Integrity policies set
                           forth in Article Seventeen.

                  5.5.     The DEPARTMENT, by and through its Superintendents,
                           or their designees, reserves the right to immediately
                           ban, either temporarily or permanently, any of the
                           PROVIDER's employees, agents, affiliates or
                           independent contractors and subcontractors from the
                           FACILITIES for reason of security or the good
                           operational order of the FACILITIES. In the event an
                           employee is denied entry, PROVIDER shall request that
                           the PROVIDER be given a reasonable time to replace
                           said employee without incurring any penalty or
                           assessment resulting from DEPARTMENT's right to
                           refuse entry or otherwise prohibit vendor employees
                           from working at the facility. During this time,
                           PROVIDER may use temporary staffing as appropriate.
                           DEPARTMENT shall only withhold approval for severe
                           security violations after a review by the
                           DEPARTMENT's Bureau of Health Care Services.

                  5.6.     The PROVIDER shall ensure that its employees, agents,
                           affiliates, independent contractors and
                           subcontractors who have direct inmate contact must
                           abide by DEPARTMENT's policy on tuberculosis as it
                           relates to testing of employes.

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                  5.7.     The DEPARTMENT reserves the right to require
                           PROVIDER's employees, agents, affiliates, independent
                           contractors or subcontractors who enter the
                           FACILITIES more than three times per week to undergo
                           an orientation program. Employee, agent, affiliate,
                           independent contractor and subcontractor costs
                           associated with the orientation are the
                           responsibility of the PROVIDER.

                  5.8.     PROVIDER shall notify the Director of the Bureau of
                           Health Care Services or designee whenever an agent,
                           affiliate, independent contractor or subcontractor or
                           any person performing services under this Agreement
                           is asked to testify or provide an opinion or evidence
                           in any litigation involving the Department, its staff
                           or any inmate.

                                    ARTICLE 6
                                EVENTS OF DEFAULT

                  6.1.     The DEPARTMENT may (subject to the cure provisions
                           addressed below), in accordance with the provisions
                           of this Section 6.1 and Section 7.2, and in addition
                           to its rights under the TERMINATION and
                           NON-APPROPRIATION articles of this AGREEMENT, by
                           written Notice of Default to the PROVIDER, terminate
                           the whole or any part of this AGREEMENT, in any one
                           of the following circumstances:

                           1.       If the PROVIDER fails to provide general
                                    health care and/or specialized medical
                                    services as set forth in this AGREEMENT;

                           2.       If the PROVIDER fails to comply with
                                    federal, state, departmental or
                                    institutional laws, regulations or policies;
                                    or

                           3.       If the PROVIDER fails to perform any of the
                                    obligations imposed by this AGREEMENT;

                  provided, however, that within thirty (30) days after receipt
                  of notice from the DEPARTMENT specifying the event of default,
                  or within such longer period as the DEPARTMENT may authorize
                  in writing, the PROVIDER shall either cure the event of
                  default or, if the event of default cannot be cured within 30
                  days, commence a cure and complete such curative action within
                  a reasonable time thereafter; provided further, however, that
                  the DEPARTMENT may terminate this AGREEMENT without providing
                  a cure period or a cure period of less than 30 days if the
                  PROVIDER's actions: (a) are part of a pattern of PROVIDER non
                  compliance with a material obligation, (b) demonstrate
                  PROVIDER's failure to make reasonable effort to cure after
                  prior notice, or (c) significantly threaten the health, safety
                  or welfare of those within the facility.

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                                    ARTICLE 7
              NOTICE OF DEFAULT, CURE, AND TERMINATION UPON DEFAULT

         7.1.     Written Notice of Default shall be sent via first class
                  registered mail in accordance with Article 13. Notice sent by
                  first class mail shall be received upon actual delivery.
                  Notice also may be provided by hand delivery or overnight mail
                  in which case notice shall be deemed to have been given upon
                  actual receipt.

         7.2.     In the event the DEPARTMENT terminates this AGREEMENT in whole
                  or in part pursuant to Article 6, the DEPARTMENT may procure,
                  upon such terms and in such manner as the DEPARTMENT deems
                  appropriate, substitute or repeat services to those so
                  terminated.

                  1.       The PROVIDER shall compensate the DEPARTMENT for the
                           difference in cost between the substitute services
                           and the cost of those services that would have been
                           provided under this AGREEMENT but for PROVIDER's
                           default.

                  2.       The PROVIDER shall compensate the DEPARTMENT for the
                           total cost of repeat services caused to be procured
                           for reason of PROVIDER's default. PROVIDER's
                           liability under this Subsection 7.3.2 is limited to
                           the services actually repeated.

         7.3.     In the event the DEPARTMENT terminates this AGREEMENT in part,
                  as provided in Article 6, the PROVIDER shall continue to
                  perform under this AGREEMENT to the extent not terminated,
                  subject to mutually agreeable compensation terms.

         7.4.     The rights and remedies of the DEPARTMENT provided in Articles
                  6 and 7 shall not be exclusive and are in addition to any
                  other rights and remedies provided by law.

         7.5.     In the event that it is later found that a determination of
                  default as a basis for termination was incorrect, then the
                  provision for termination without cause under Section 1.2
                  shall take effect immediately and relate back to the issuance
                  of the notice of default or notice of termination and PROVIDER
                  may seek redress for its damages arising from the incorrect
                  termination through the Pennsylvania Board of Claims.

                                    ARTICLE 8
                        RISK OF LOSS AND INDEMNIFICATION

         8.1.     As between DEPARTMENT and PROVIDER only, PROVIDER and its

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                  successors and assigns shall bear the full risk of loss with
                  respect to damage to or destruction of personal property
                  furnished by PROVIDER except as set forth in Section 8.3 of
                  this Article.

         8.2.     As between DEPARTMENT and PROVIDER only, PROVIDER and its
                  successors and assigns shall be responsible for and bear the
                  full risk of loss with respect to damage to or destruction of
                  DEPARTMENT property resulting from PROVIDER's performance of
                  this AGREEMENT excepting reasonable wear and tear or as set
                  forth in Section 8.3 of this Article.

         8.3.     The risk of loss provisions of Sections 8.1 and 8.2 shall not
                  apply to loss, damage or injury caused by DEPARTMENT's failure
                  to act in accordance with this AGREEMENT, or negligence or
                  willful misconduct by DEPARTMENT, its officers, agents or
                  employees. In such cases, liability shall be determined by law
                  in a Pennsylvania court or administrative agency having
                  jurisdiction over the subject matter unless the dispute is
                  settled by agreement of the parties.

         8.4.     In the event of damage to or destruction of PROVIDER's
                  personal property through misuse or wanton act by any inmate
                  incarcerated at the FACILITIES, DEPARTMENT shall not bear
                  liability for loss of said personal property, except as set
                  forth in Section 8.3 of this Article unless the damage or
                  destruction would not have occurred but for the DEPARTMENT's
                  failure to act in accordance with this AGREEMENT or negligence
                  or willful misconduct by DEPARTMENT, its officers, agents or
                  employees.

         8.5.     The PROVIDER neither assumes nor accepts any liability for the
                  acts or failure to act, of the DEPARTMENT, its officers,
                  agents or employees, as relating to or affecting the delivery
                  of comprehensive medical services under this AGREEMENT.

         8.6.     The PROVIDER agrees to indemnify, defend and save harmless the
                  Commonwealth of Pennsylvania, its officers, agents and
                  employees, and DEPARTMENT, its officers, agents and employees,
                  from any and all claims, suits, actions, judgments and losses
                  accruing or resulting from PROVIDER'S acts or omissions to
                  other persons or entities furnishing or supplying work,
                  services, materials or supplies in connection with the
                  performance of this AGREEMENT. The DEPARTMENT reserves the
                  right to defend itself at its own expense.

         8.7.     The PROVIDER agrees to indemnify, defend and save harmless the
                  Commonwealth of Pennsylvania, its officers, agents and
                  employees, and DEPARTMENT, its officers, agents and employees,
                  from any and all claims, suits, actions, judgments and losses,
                  including, but not limited to reasonable attorneys fees,
                  arising from any act or failure to act, professionally or
                  otherwise, by the PROVIDER, its employees, agents, affiliates,
                  independent

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                  contractors or subcontractors with respect to the delivery of
                  comprehensive medical services under this AGREEMENT.

         8.8.     The DEPARTMENT neither assumes nor accepts any liability for
                  any act or failure to act, professionally or otherwise, of the
                  PROVIDER, its employees, agents, affiliates, independent
                  contractors or subcontractors.

         8.9.     The DEPARTMENT shall not provide insurance for the PROVIDER,
                  its employees, agents, affiliates, independent contractors or
                  subcontractors.

         8.10.    The PROVIDER shall purchase and maintain for the term of this
                  AGREEMENT, at its own expense, Comprehensive General Liability
                  Insurance coverage, which shall name the DEPARTMENT as an
                  additional insured, in an amount which shall be equal to or
                  greater than the amount specified in Attachment Two. Further,
                  the PROVIDER shall notify the DEPARTMENT in writing within ten
                  (10) days in advance of any change in its insurance coverage.

         8.11.    The PROVIDER shall maintain, for the term of this AGREEMENT,
                  workmen's compensation Insurance sufficient to cover all
                  employees of the PROVIDER whose work is applied to satisfy
                  PROVIDER's obligations under this AGREEMENT.

         8.12.    The PROVIDER shall maintain, for the term of this AGREEMENT,
                  malpractice insurance equal to or greater than the amount
                  required by law. Further, the PROVIDER shall notify the
                  DEPARTMENT in writing within ten (10) days in advance of any
                  change in its medical malpractice insurance coverage.

         8.13.    Upon request of the DEPARTMENT, the PROVIDER shall produce its
                  current certificates of insurance for the DEPARTMENT's
                  inspection and verification. These certificates shall contain
                  a provision that coverage afforded under the policies will not
                  be canceled or changed until the carrier has endeavored to
                  provide at least thirty (30) days prior written notice to the
                  DEPARTMENT. PROVIDER shall provide general liability coverage
                  of $1 million per occurrence / $2 million general aggregate.
                  PROVIDER shall also provide professional medical liability as
                  mutually agreed to.

         8.14     The obligations of the parties under this Article 8 shall
                  survive the expiration or termination of this AGREEMENT.

         8.15     PROVIDER neither assumes nor accepts any liability for any act
                  or omission of DEPARTMENT, its employees, agents or
                  affiliates.

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                                    ARTICLE 9
                                  FORCE MAJEURE

         9.1.     Except with respect to default, negligent, or willful conduct
                  of its independent contractors and subcontractors, the
                  PROVIDER shall not be in breach of this AGREEMENT if the
                  failure to perform arises out of causes beyond the control and
                  without the fault of the PROVIDER. Such causes may include,
                  but are not restricted to: strikes or labor disputes, inmate
                  disturbances, acts of God, acts of civil and military
                  authority, acts of public enemy, fires, explosions,
                  earthquakes, and floods. In the event that the failure to
                  perform is caused by the default of an independent contractor
                  or subcontractor, and if such default arises out of causes
                  beyond the control of both the PROVIDER and the independent
                  contractor or subcontractor, and without the fault of the
                  PROVIDER and the independent contractor or subcontractor, the
                  PROVIDER shall not be in breach unless the service(s) to be
                  furnished by the independent contractor or subcontractor were
                  obtainable from other sources in sufficient time to permit the
                  PROVIDER to meet the requirements for delivery of the service.

         9.2.     The PROVIDER shall immediately notify the DEPARTMENT in
                  writing of its inability to perform by specifying all reasons
                  constituting the cause or causes beyond its control and
                  without its fault.

         9.3.     In the event that the PROVIDER fails to perform its
                  obligations after a reasonable period of time for causes set
                  forth in this Article 9, the PROVIDER shall pay the
                  DEPARTMENT, and the DEPARTMENT is entitled to recover by
                  offsetting against PROVIDER's invoices if necessary, the
                  actual costs incurred by the DEPARTMENT to the extent that
                  such actual costs exceed the cost that would have been
                  incurred had the PROVIDER provided the services for the entire
                  period that such excess costs are incurred.

                                   ARTICLE 10
                       INDEPENDENT CAPACITY OF THE PARTIES

         10.1.    PROVIDER understands that it and its agents and employees
                  shall act in an independent capacity and shall not act or be
                  deemed to act as officers, employees or agents of DEPARTMENT,
                  nor as a partnership or joint venture between the DEPARTMENT
                  and the PROVIDER.

                                   ARTICLE 11
                         REPRESENTATIONS AND WARRANTIES

         11.1.    Each party warrants and represents to the other that:

                  1.       It has all requisite power, authority, licenses,
                           permits, and franchises corporate or otherwise, to
                           execute and deliver this AGREEMENT and perform its
                           obligations hereunder; and

                                       14
<PAGE>

                  2.       Its execution, delivery, and performance of this
                           AGREEMENT has been duly authorized by, or is in
                           accordance with, its organic instruments, and this
                           AGREEMENT had been duly executed and delivered for it
                           by the signatories so authorized, and when fully
                           executed and approved by necessary Commonwealth
                           officials, it constitutes its legal, valid, and
                           binding obligation; and

                  3.       Its execution, delivery and performance of this
                           AGREEMENT will not result in a breach or violation of
                           or constitute a default under any agreement, lease or
                           instrument to which it is a party or by which it or
                           its properties may be bound or affected.

         11.2.    The PROVIDER shall certify to the DEPARTMENT that the
                  PROVIDER, its employees, agents, affiliates, independent
                  contractors and subcontractors comply with any and all
                  licensing and/or certification requirements, as established by
                  law and as they relate to the performance of the AGREEMENT by
                  PROVIDER. Within thirty working days after receipt of the
                  fully executed and approved document of this AGREEMENT, and
                  thereafter as changes in personnel are effected, the PROVIDER
                  shall provide written proof of compliance with such licensing
                  and/or certification requirements.

                                   ARTICLE 12
                        FURTHER DOCUMENTS AND ASSURANCES

         12.1.    The parties shall execute and deliver all documents and
                  perform all further acts that may be reasonably necessary to
                  effectuate the provisions of this AGREEMENT.

                                   ARTICLE 13
                          NOTICE AND CHANGES OF ADDRESS

         13.1.    All notices to be given in writing by either party to the
                  other shall be mailed by registered or certified mail, return
                  receipt requested, to the following addresses or such other
                  addresses as either party may hereinafter designate by a
                  notice to the other.

                  DEPARTMENT:       Department of Corrections
                                    Bureau of Health Care Services
                                    PO Box 598
                                    2520 Lisburn Road
                                    Camp Hill, PA  17001-0598
                                    ATTN:  Contract Compliance Monitor

                  PROVIDER:         President
                                    Prison Health Services, Inc.

                                       15
<PAGE>

                                    105 Westpark Drive, Suite 200
                                    Brentwood, TN 37027

                  Cc:               General Counsel
                                    Prison Health Services, Inc.
                                    105 Westpark Drive, Suite 200
                                    Brentwood, TN 37027

                                   ARTICLE 14
                      ASSIGNMENT, DELEGATION AND SUCCESSION

         14.1.    PROVIDER understands that its performance of duties and
                  obligations imposed by this AGREEMENT is not assignable
                  without the prior written consent of DEPARTMENT. DEPARTMENT's
                  consent to such assignments will not be unreasonably withheld.
                  However, no DEPARTMENT consent or approval is required prior
                  to the sale or merger of PROVIDER.

         14.2.    In the event that the PROVIDER should change to become another
                  entity through sale or merger or otherwise, the DEPARTMENT
                  shall have the following options:

                  1.       Continuing under the terms and conditions of this
                           AGREEMENT with the successor for the remaining term
                           of this AGREEMENT; or

                  2.       Continuing under the terms and conditions of this
                           AGREEMENT with the successor for such period as is
                           necessary to procure a different provider; or

                  3.       Immediately terminating this AGREEMENT.

         14.3.    In the event that the PROVIDER should become insolvent, or
                  make an assignment for the benefit of creditors, or have a
                  receiver appointed, or should it be declared bankrupt under
                  the laws of the United States or Canada, or should a petition
                  for reorganization or rearrangement be filed under the
                  bankruptcy laws of the United States or Canada, the DEPARTMENT
                  shall have the following options:

                  1.       Continuing with the PROVIDER or its successors or
                           assigns or trustee in bankruptcy under the terms and
                           conditions of this AGREEMENT for the full remaining
                           term of this AGREEMENT; or

                  2.       Continuing with the PROVIDER or its successor or
                           assigns or trustee in bankruptcy under the terms and
                           conditions of this AGREEMENT for

                                       16
<PAGE>

                  such period as is necessary to procure a different provider;
                  or

                  3.       Immediately terminating this AGREEMENT.

                                   ARTICLE 15
                   COMPLIANCE WITH LAW AND STANDARD PRACTICES

         15.1.    The PROVIDER shall perform its obligations hereunder in
                  compliance with all applicable federal, state, and local laws,
                  codes, and regulations, in accordance with sound medical
                  practices, in compliance with all applicable environmental
                  laws and regulations, and in compliance with all security
                  rules of DEPARTMENT relative to the FACILITIES.

         15.2.    PROVIDER shall be responsible for obtaining all governmental
                  permits, consents, and authorizations as may be required to
                  perform its obligations hereunder.

         15.3.    The PROVIDER shall require its employees, agents, affiliates,
                  independent contractors and subcontractors to comply with all
                  laws, codes, regulations and rules as described in this
                  Article 15.

         15.4.    No member of the General Assembly of the Commonwealth of
                  Pennsylvania or any individual employed by the Commonwealth of
                  Pennsylvania on a full-time basis shall be admitted to any
                  share or part of this AGREEMENT, or to any benefit that may
                  arise there from.

                                   ARTICLE 16
                   NONDISCRIMINATION/SEXUAL HARASSMENT CLAUSE

         16.1.    During the term of the AGREEMENT, the PROVIDER agrees as
                  follows:

                  a.       In the hiring of any employees for the manufacture of
                           supplies, performance of work, or any other activity
                           required under the AGREEMENT or any subcontract, the
                           PROVIDER, subcontractor or any person acting on
                           behalf of the PROVIDER or subcontractor shall not by
                           reason of gender, race, creed, or color discriminate
                           against any citizen of this Commonwealth who is
                           qualified and available to perform the work to which
                           the employment relates.

                  b.       Neither the PROVIDER nor any subcontractor nor any
                           person on their behalf shall in any manner
                           discriminate against or intimidate any employee
                           involved in the manufacture of supplies, the
                           performance of work or any other activity required
                           under the AGREEMENT on account of gender, race,
                           creed, or color.

                                       17
<PAGE>

                  c.       The PROVIDER and any subcontractors shall establish
                           and maintain a written sexual harassment policy and
                           shall inform their employees of the policy. The
                           policy must contain a notice that sexual harassment
                           will not be tolerated and employees who practice it
                           will be disciplined.

                  d.       The PROVIDER shall not discriminate by reason of
                           gender, race, creed, or color against any
                           subcontractor or supplier who is qualified to perform
                           the work to which the contract relates.

                  e.       The PROVIDER and each subcontractor shall furnish all
                           necessary employment documents and records to and
                           permit access to its books, records, and accounts by
                           the contracting officer and the Department of General
                           Services' Bureau of Contract Administration and
                           Business Development for purposes of investigation to
                           ascertain compliance with the provisions of this
                           Nondiscrimination/Sexual Harassment Clause. If the
                           PROVIDER or any subcontractor does not possess
                           documents or records reflecting the necessary
                           information requested, it shall furnish such
                           information on reporting forms supplied by the
                           contracting officer or the Bureau of Contract
                           Administration and Business Development.

                  f.       The PROVIDER shall include the provisions of this
                           Nondiscrimination/Sexual Harassment Clause in every
                           subcontract so that such provisions will be binding
                           upon each subcontractor.

                  g.       The Commonwealth may cancel or terminate the
                           AGREEMENT, and all money due or to become due under
                           the AGREEMENT may be forfeited for a violation of the
                           terms and conditions of this Nondiscrimination/Sexual
                           Harassment Clause. In addition, the agency may
                           proceed with debarment or suspension and may place
                           the Contractor in the Contractor Responsibility File.

                                   ARTICLE 17
                         CONTRACTOR INTEGRITY PROVISIONS

         17.1.    For purposes of this clause only, the words "confidential
                  information," "consent," "PROVIDER," "financial interest," and
                  "gratuity" shall have the following definitions.

                  a.       Confidential Information means information that is
                           not public knowledge, or available to the public on
                           request, disclosure of which would give an unfair,
                           unethical, or illegal advantage to another desiring
                           to contract with the Commonwealth.

                                       18
<PAGE>

                  b.       Consent means written permission signed by a duly
                           authorized officer or employee of the Commonwealth,
                           provided that where the material facts have been
                           disclosed, in writing, by prequalification, bid,
                           proposal, or contractual terms, the Commonwealth
                           shall be deemed to have consented by virtue of
                           execution of this agreement.

                  c.       PROVIDER means the individual or entity that has
                           entered into the Contract with the Commonwealth,
                           including directors, officers, partners, managers,
                           key employees and owners of more than a five percent
                           interest.

                  d.       Financial Interest means:

                           a)       Ownership of more than a five percent
                                    interest in any business; or

                           b)       Holding a position as an officer, director,
                                    trustee, partner, employee, or the like, or
                                    holding any position of management.

                  e.       Gratuity means any payment of more than nominal
                           monetary value in the form of cash, travel,
                           entertainment, gifts, meals, lodging, loans,
                           subscriptions, advances, deposits of money, services,
                           employment, or contracts of any kind.

         17.2.    The PROVIDER shall maintain the highest standards of integrity
                  in the performance of the AGREEMENT and shall take no action
                  in violation of state or federal laws, regulations, or other
                  requirements that govern contracting with the Commonwealth.

         17.3.    The PROVIDER shall not disclose to others any confidential
                  information gained by virtue of the AGREEMENT.

         17.4.    The PROVIDER shall not, in connection with this or any other
                  agreement with the Commonwealth, directly, or indirectly,
                  offer, confer, or agree to confer any pecuniary benefit on
                  anyone as consideration for the decision, opinion,
                  recommendation, vote, other exercise of discretion, or
                  violation of a known legal duty by any officer or employee of
                  the Commonwealth.

         17.5.    The PROVIDER shall not, in connection with this or any other
                  agreement with the Commonwealth, directly or indirectly,
                  offer, give, or agree or promise to give to anyone any
                  gratuity for the benefit of or at the direction or request of
                  any officer or employee of the Commonwealth.

         17.6.    Except with the consent of the Commonwealth, neither the
                  PROVIDER nor anyone in privity with him or her shall accept or
                  agree to accept from, or give or agree to give to, any person,
                  any gratuity from any person in connection

                                       19
<PAGE>

                  with the performance of work under the AGREEMENT except as
                  provided therein.

         17.7.    Except with the consent of the Commonwealth, the PROVIDER
                  shall not have a financial interest in any other contractor,
                  subcontractor, or supplier providing services, labor, or
                  material on this project.

         17.8.    The PROVIDER, upon being informed that any violation of these
                  provisions has occurred or may occur, shall immediately notify
                  the Commonwealth in writing.

         17.9.    The PROVIDER, by execution of the AGREEMENT and by the
                  submission of any bills or invoices for payment pursuant
                  thereto, certifies, and represents that he or she has not
                  violated any of these provisions.

         17.10.   The PROVIDER, upon the inquiry or request of the Inspector
                  General of the Commonwealth or any of that official's agents
                  or representatives, shall provide, or if appropriate, make
                  promptly available for inspection or copying, any information
                  of any type or form deemed relevant by the Inspector General
                  to the Contractor's integrity or responsibility, as those
                  terms are defined by the Commonwealth's statutes, regulations,
                  or management directives. Such information may include, but
                  shall not be limited to, the PROVIDER'S business or financial
                  records, documents or files of any type or form which refer to
                  or concern the AGREEMENT. Such information shall be retained
                  by the PROVIDER for a period of three years beyond the
                  termination of the AGREEMENT unless otherwise provided by law.

         17.11.   For intentional violation of any of the above Section 17
                  provisions, the Commonwealth may terminate this and any other
                  agreement with the PROVIDER, claim liquidated damages in an
                  amount equal to the value of anything received in breach of
                  these provisions, claim reasonable damages for all expenses
                  incurred in obtaining another PROVIDER to complete performance
                  hereunder, and debar and suspend the PROVIDER from doing
                  business with the Commonwealth. These rights and remedies are
                  cumulative, and the use or nonuse of any one shall not
                  preclude the use of all or any other. These rights and
                  remedies are in addition to those the Commonwealth may have
                  under law, statute, regulation, or otherwise.

                                   ARTICLE 18
                      CONTRACTOR RESPONSIBILITY PROVISIONS

         18.1.    The PROVIDER certifies, for itself and all its subcontractors,
                  that as of the date of its execution of this Bid/AGREEMENT,
                  that neither the PROVIDER, nor any subcontractors, nor any
                  suppliers are under suspension or debarment by the
                  Commonwealth or any governmental entity, instrumentality, or
                  authority

                                       20
<PAGE>

                  and, if the PROVIDER cannot so certify, then it agrees to
                  submit, along with its proposal, a written explanation of why
                  such certification cannot be made.

         18.2.    The PROVIDER also certifies, that as of the date of its
                  execution of this Bid/AGREEMENT, it has no tax liabilities or
                  other Commonwealth obligations.

         18.3.    The PROVIDER obligations pursuant to these provisions are
                  ongoing from and after the effective date of the AGREEMENT
                  through the termination date thereof. Accordingly, the
                  PROVIDER shall have an obligation to inform the Commonwealth
                  if, at any time during the term of the AGREEMENT, it becomes
                  delinquent in the payment of taxes, or other Commonwealth
                  obligations, or if it or any of its subcontractors are
                  suspended or debarred by the Commonwealth, the federal
                  government, or any other state or governmental entity. Such
                  notification shall be made within 15 days of the date of
                  suspension or debarment.

         18.4     The failure of the PROVIDER to notify the Commonwealth of its
                  suspension or debarment by the Commonwealth, any other state,
                  or the federal government shall constitute an event of default
                  of the AGREEMENT with the Commonwealth.

         18.5.    The PROVIDER agrees to reimburse the Commonwealth for the
                  reasonable costs of investigation incurred by the Office of
                  State Inspector General for investigations of the PROVIDER'S
                  compliance with the terms of this or any other agreement
                  between the PROVIDER and the Commonwealth, which result in the
                  suspension or debarment of the PROVIDER. Such costs shall
                  include, but shall not be limited to, salaries of
                  investigators, including overtime; travel and lodging
                  expenses; and expert witness and documentary fees. The
                  PROVIDER shall not be responsible for investigative costs for
                  investigations that do not result in the PROVIDER'S suspension
                  or debarment.

         18.6.    The PROVIDER may obtain a current list of suspended and
                  debarred Commonwealth contractors by either searching the
                  internet at http)://www.dgs.state.pa.us/debarment.htm or
                  contacting the:

                              Department of General Services
                              Office of Chief Counsel
                              603 North Office Building
                              Harrisburg, PA 17125 '
                              Telephone No. (717) 783-6472
                              FAX No. (717) 787-9138

                                       21
<PAGE>
                                   ARTICLE 19
                         AMERICANS WITH DISABILITIES ACT

         19.1.    Pursuant to federal regulations promulgated under the
                  authority of The Americans With Disabilities Act,. 28
                  C.F.R.ss.35.101 et seq., the PROVIDER understands and agrees
                  that it shall not cause any individual with a disability to be
                  excluded from participation in this AGREEMENT or from
                  activities provided for under this AGREEMENT on the basis of
                  the disability. As a condition of accepting this AGREEMENT,
                  the PROVIDER agrees to comply with the "General Prohibitions
                  Against Discrimination," 28 C.F.R.ss.35.130, and all other
                  regulations promulgated under Title II of The Americans With
                  Disabilities Act which are applicable to all benefits,
                  services, programs, and activities provided by the
                  Commonwealth of Pennsylvania through contracts with outside
                  contractors.

         19.2.    The PROVIDER shall be responsible for and agrees to indemnify
                  and hold harmless the Commonwealth of Pennsylvania from all
                  losses, damages, expenses, claims, demands, suits, and actions
                  brought by any party against the Commonwealth of Pennsylvania
                  as a result of the PROVIDER'S failure to comply with the
                  provisions of subparagraph a above.

                                   ARTICLE 20
                              HAZARDOUS SUBSTANCES

         20.1.    The PROVIDER shall provide information to the Commonwealth
                  about the identity and hazards of hazardous substances
                  supplied or used by the PROVIDER in the performance of the
                  AGREEMENT. The PROVIDER must comply with Act 159 of October 5,
                  1984, known as the "Worker and Community Right to Know Act"
                  (the "Act") and the regulations promulgated pursuant thereto
                  at 4 Pa. Code Section 301.1 et seq.

                  a.       Labeling. The PROVIDER shall insure that each
                           individual product (as well as the carton, container
                           or package in which the product is shipped) of any of
                           the following substances (as defined by the Act and
                           the regulations) supplied by the PROVIDER is clearly
                           labeled, tagged or marked with the information listed
                           in Paragraph (1) through (4):

                           1)        Hazardous substances:
                                     a)     The chemical name or common name,
                                     b)     A hazard warning, and
                                     c)     The name, address, and telephone
                                            number of the manufacturer.

                                       22
<PAGE>
                           2)       Hazardous mixtures:

                                    a)       The common name, but if none
                                             exists, then the trade name,
                                    b)       The chemical or common name of
                                             special hazardous substances
                                             comprising .01 % or more of the
                                             mixture,
                                    c)       The chemical or common name of
                                             hazardous substances consisting of
                                             1.0% or more of the mixture,
                                    d)       A hazard warning, and
                                    e)       The name, address, and telephone
                                             number of the manufacturer.

                           3)       Single chemicals:

                                    a)       The chemical name or the common
                                             name,
                                    b)       A hazard warning, if appropriate,
                                             and
                                    c)       The name, address, and telephone
                                             number of the manufacture.

                           4)       Chemical Mixtures:

                                    a)       The common name, but if none
                                             exists, then the trade name,
                                    b)       A hazard warning, if appropriate,
                                    c)       The name, address, and telephone
                                             number of the manufacturer, and
                                    d)       the chemical name or common name of
                                             either the top five substances by
                                             volume or those substances
                                             consisting of 5.0% or more of the
                                             mixture.

                           A common name or trade name may be used only if the
                           use of the name more easily or readily identifies the
                           true nature of the hazardous substance, hazardous
                           mixture, single chemical, or mixture involved.

                           Container labels shall provide a warning as to the
                           specific nature of the hazard arising from the
                           substance in the container.

                           The hazard warning shall be given in conformity with
                           one of the nationally recognized and accepted systems
                           of providing warnings, and hazard warnings shall be
                           consistent with one or more of the recognized systems
                           throughout the workplace. Examples are:

                           -        NFPA 704, identification of the Fire Hazards
                                    of Materials.
                           -        National Paint and Coatings Association:
                                    Hazardous Materials Identification System.

                                       23
<PAGE>
                           -        American Society for testing and materials,
                                    Safety Alert Pictorial Chart.

                           Labels must be legible and prominently affixed to and
                           displayed on the product and the carton, container,
                           or package so that employees can easily identify the
                           substance or mixture present therein.

         20.2.    Material Safety Data Sheet. The PROVIDER shall provide
                  Material Safety Data Sheets (MSDS) with the information
                  required by the Act and the regulations for each hazardous
                  substance or hazardous mixture. The Commonwealth must be
                  provided an appropriate MSDS with the initial shipment and
                  with the first shipment after an MSDS is updated or product
                  changed. For any other chemical, the contractor shall provide
                  an appropriate MSDS, if the manufacturer, importer, or
                  supplier produces or possesses the MSDS. The PROVIDER shall
                  also notify the Commonwealth when a substance or mixture is
                  subject to the provisions of the Act. Material Safety Data
                  Sheets may be attached to the carton, container, or package
                  mailed to the Commonwealth at the time of shipment.

                                   ARTICLE 21
                            ENVIRONMENTAL PROVISIONS

         21.1     In the performance of the AGREEMENT, the PROVIDER shall
                  minimize pollution and shall strictly comply with all
                  applicable environmental laws and regulations.

                                   ARTICLE 22
                                 APPLICABLE LAW

         22.1.    This AGREEMENT and the construction and enforceability thereof
                  shall be interpreted under the law of the Commonwealth of
                  Pennsylvania.

                                   ARTICLE 23
                                  SEVERABILITY

         23.1.    In the event that any clause or provision of this AGREEMENT or
                  any part thereof shall be declared invalid, void or
                  unenforceable by an administrative agency of the United States
                  or the Commonwealth of Pennsylvania or any court having
                  jurisdiction, such invalidity shall not affect the validity or
                  enforceability of the remaining portions of this AGREEMENT
                  unless the result would be manifestly inequitable or
                  unconscionable.

                                   ARTICLE 24
                                    NO WAIVER

         24.1.    Both parties reserve any and all rights not expressly and
                  directly waived in this AGREEMENT.

                                       24
<PAGE>

         24.2.    The failure of either party to insist upon the strict
                  performance of the terms and conditions hereof shall not
                  constitute or be construed as a waiver or relinquishment of
                  either party's right to thereafter enforce the same in
                  accordance with this AGREEMENT in the event of a continuing or
                  subsequent default on the part of PROVIDER or DEPARTMENT.

         24.3.    Neither this AGREEMENT, nor any provision herein, is or shall
                  be deemed a waiver of any sovereign immunity of DEPARTMENT or
                  the Commonwealth of Pennsylvania.

                                   ARTICLE 25
                               THIRD PARTY RIGHTS

         25.1.    The only parties to this AGREEMENT are the DEPARTMENT and
                  PROVIDER. The parties understand that this AGREEMENT does not
                  create or intend to confer any rights in or on persons or
                  entities not a party to this AGREEMENT.

                                   ARTICLE 26
                               TITLES AND CAPTIONS

         26.1.    The table of contents and all article titles or captions to
                  this AGREEMENT are for convenience only and shall not be
                  deemed part of this AGREEMENT and in no way define, limit,
                  augment, extend or describe the scope, content or intent of
                  any part or parts of this AGREEMENT.

                                   ARTICLE 27
                APPENDICES, ATTACHMENTS, EXHIBITS, AND SCHEDULES

         27.1.    All appendices, attachments, exhibits and schedules annexed to
                  this AGREEMENT or referred to herein are expressly made a part
                  of this AGREEMENT as fully as though completely set forth in
                  it. All references to this AGREEMENT, either in this document
                  itself or in any of such writings, shall be deemed to refer to
                  and include this AGREEMENT and all such appendices,
                  attachments, exhibits, and schedules.

                                   ARTICLE 28
                     ORDER OF PRECEDENCE AND INTERPRETATION

         28.1.    In the event of conflict or discrepancy arising within the
                  terms and condition of this AGREEMENT, or in the
                  interpretation thereof, the order or precedence for resolution
                  shall be:

                                       25
<PAGE>
                  1.       The AGREEMENT.

                  2.       Supplemental Provisions (Attachment Four)

                  3.       Cost Proposal (Attachment Three).

                  4.       The DEPARTMENT's R.F.P. (Attachment One).

                  5.       The PROVIDER's Proposal (Attachment Two).

         28.2.    Because this AGREEMENT is based on fairness, any ambiguity
                  shall be based on actual facts.

                                   ARTICLE 29
                                AUDIT PROVISIONS

         29.1.    The Commonwealth shall have the right, at reasonable times and
                  at a site designated by the Commonwealth, to audit the books,
                  documents and records of the PROVIDER to the extent that the
                  books, documents and records relate to costs or pricing data
                  for the AGREEMENT. The PROVIDER is required to maintain
                  records which will support the prices charged and costs
                  incurred for the AGREEMENT.

         29.2.    The PROVIDER shall preserve books, documents, and records that
                  relate to costs or pricing data of the AGREEMENT for a period
                  of three (3) years from date of final payment. The PROVIDER
                  shall give full and free access to all records to the
                  Commonwealth and/or their authorized representatives.

                                   ARTICLE 30
                       COMPLETE AGREEMENT AND MODIFICATION

         30.1.    This AGREEMENT, together with all attachments which are
                  appended hereto and incorporated by reference herein, shall,
                  upon execution, approval, and delivery, constitute the final,
                  complete and exclusive AGREEMENT between the parties
                  containing all the terms and conditions agreed to by the
                  parties. All representations, understandings, promises and
                  agreements pertaining to the subject matter of this AGREEMENT
                  made prior to or at the time this AGREEMENT is executed are
                  superseded by this AGREEMENT. There are no conditions
                  precedent to the performance of this AGREEMENT except as
                  expressly set forth herein.

         30.2.    This AGREEMENT may not be amended or modified except by a
                  written agreement signed by the parties hereto.

                                       26
<PAGE>

         30.3.    Alterations, variations or amendments to this AGREEMENT shall
                  not be valid unless made in writing and signed by the Parties
                  hereto. Future oral understandings shall not be binding unless
                  subsequently reduced to writing and signed by both parties.

         30.4     The Parties recognize that medical science continues to
                  advance and that the commonly accepted standard of medical
                  care is likely to evolve during the term of this AGREEMENT.
                  Any medical advance which: (1) becomes the commonly accepted
                  standard of medical care; and (2) was not known or could not
                  reasonably have been anticipated at the time the PROVIDER
                  submitted its proposal or which was not otherwise noted prior
                  to the awarding of this AGREEMENT; and (3) which results in a
                  material per patient cost increase, may be submitted by the
                  PROVIDER and shall be reviewed by the DEPARTMENT in good faith
                  for consideration of additional compensation. (All three
                  elements of the preceding standard must be satisfied for a
                  medical advance to support a request for additional
                  compensation. A material per patient cost increase is defined,
                  for this purpose, as a cost increase of three percent per
                  year.) If the PROVIDER believes that a medical advance
                  satisfies all three elements of the preceding standard, the
                  PROVIDER may request in writing that the DEPARTMENT increase
                  its compensation in an amount equal to the actual, direct
                  increased cost incurred by the PROVIDER in meeting the new
                  commonly accepted standard of medical care as compared to the
                  cost incurred by the PROVIDER in meeting the previously
                  existing commonly accepted standard of medical care. The
                  PROVIDER shall submit detailed documentation to support its
                  claim in its request. All other cost increases are the
                  responsibility of the PROVIDER.

                                   ARTICLE 31
                                SERB COMMITMENTS

         31.1     The PROVIDER has made a SERB commitment of $1,440,000
                  annually. If this subcontracting commitment listed in the
                  contract is terminated, the PROVIDER must continue in good
                  faith to meet this commitment with other appropriately
                  qualified SERB providers by entering into contractual
                  agreement with other SERB(s) who have demonstrated ability to
                  perform on this AGREEMENT. The Department must submit all
                  changes to the Bureau of Contract Administration and Business
                  Development for approval.

         31.2     The PROVIDER must provide the DEPARTMENT with a report of SERB
                  activity on a quarterly basis. This report shall reflect the
                  names of and total dollar amounts paid to all SERBs used.

                                       27

<PAGE>

         IN WITNESS WHEREOF, and intending to be legally bound, the parties
hereto subscribe their names to this instrument.

PRISON HEALTH SERVICES, INC.                   COMMONWEALTH OF PA.
                                               DEPARTMENT OF CORRECTIONS

/s/ Richard D. Wright                          /s/ Jeffrey A. Beard, Ph.D.
------------------------------------           ---------------------------------
By:                                            By:
         President/Vice President              Secretary/Designee

/s/ Jean L. Byassee
-----------------------------------
By:
         Secretary/Treasurer

                                               /s/ Debra Chernicoff
                                               ---------------------------------
                                                       Comptroller

                                               N/A
                                               ---------------------------------
                                                       Office of the Budget

                         Approved for Form and Legality:

/s/ Randall N. Sear                            /s/ David J. DeVries
-----------------------------------            ---------------------------------
         Office of Chief Counsel                       Office of General Counsel

                                               /s/ Amy Elliott
                                               --------------------------------
                                                 Office of Attorney General

                                        I hereby certify funds in the amount of
                                        (see attached breakdown of coding).

                                       28
<PAGE>
                                 ATTACHMENT FOUR

                             SUPPLEMENTAL PROVISIONS

         1.       Exclusion of pharmacy and mental health services. This
                  Agreement for general health care and specialized medical
                  services does not include the provision of pharmacy and mental
                  health services.

         2.       New Staffing Classifications. Should it become necessary to
                  add new staffing classifications to the Agreement, the new
                  classifications can be added on the appropriate quarterly
                  adjustment if approved in writing by both parties. The hourly
                  cost per position for these services will be negotiated by the
                  parties and added to the contract.

         3.       Clarification of Non-Hourly Penalties. In the event of default
                  pursuant to the terms of Section 6.1 of the Agreement, the
                  DEPARTMENT, if it does not elect to terminate the Agreement
                  pursuant to the terms thereof, may require PROVIDER to
                  compensate the Department by payment or credit if the
                  Department, at its discretion, determines to impose a
                  non-hourly penalty as provided in Section II-39 (B) 2 of
                  Attachment One (Request for Proposal). Prior to the assessment
                  of any such non-hourly penalties, DEPARTMENT will submit a
                  notice of pending penalty assessment to PROVIDER that sets
                  forth in reasonable detail the contracting issue, the nature
                  of the default, the amount of penalty and a cure period for
                  the contractor to avoid the penalty. The cure period will be
                  30 days or, if the event of default cannot be cured within 30
                  days, a cure period sufficient to complete such curative
                  action. DEPARTMENT may issue penalties without providing a
                  cure period or a cure period of less than 30 days if the
                  PROVIDER's actions: (a) are part of a pattern of PROVIDER non
                  compliance with a material obligation, (b) demonstrate
                  PROVIDER's failure to make reasonable effort to cure after
                  prior notice, or (c) significantly threaten the health, safety
                  or welfare of those within the facility.

         4.       Hourly Penalty Grace Period. No hourly penalties will be
                  assessed to the PROVIDER for the period of September 1, 2003
                  to October 25, 2003 provided that the PROVIDER provides at
                  least ninety percent (90%) of the entire staffing hours for
                  the total of all classifications for the month that is being
                  reconciled.

<PAGE>

         5.       Bonding. The PROVIDER shall provide a $5 million performance
                  guarantee from American Services Group, Inc. PROVIDER is not
                  required to obtain and maintain a performance or payment bond.

         6.       Payment. PROVIDER shall submit semi-monthly invoices (which
                  shall include all costs of services including 1/24th of the
                  outside medical services cap, except for malpractice insurance
                  costs discussed in Section 8, below) to DEPARTMENT thirty (30)
                  days in advance of payment. The DEPARTMENT shall provide
                  payment to the PROVIDER electronically on the fifteen and
                  thirtieth days (twenty-eighth day for February) of the month.
                  The final semi-monthly payment of the contract shall be
                  withheld by DEPARTMENT until all invoice reconciliations are
                  completed unless expenditure trends show that the last outside
                  medical services cap payment will exceed $200,000. The
                  PROVIDER invoices shall be developed on the basis of the
                  latest inmate population approved by all parties on an invoice
                  reconciliation. The PROVIDER shall use the same monthly
                  population number for both semi-monthly invoices submitted to
                  be paid in the same month. Until the first reconciliation is
                  completed, the PROVIDER shall use the population number
                  provide by the DEPARTMENT, which will be based on the July
                  2003 inmate population numbers.

         7.       Invoice Reconciliation. A monthly reconciliation of inmate
                  population totals and PROVIDER staffing hours will be
                  completed after the completion of the month. Should the
                  PROVIDER owe the DEPARTMENT monies after the reconciliation,
                  this amount will be deducted from the next semi-monthly
                  payment to the PROVIDER. Should the PROVIDER be owed monies
                  after the reconciliation, the DEPARTMENT has the option to
                  include this payment on the next semi-monthly payment or
                  process a separate payment due with the next semi-monthly
                  payment.

         8.       Malpractice Insurance Payment. The PROVIDER shall submit an
                  invoice in the beginning of the contract year and as incurred
                  for actual malpractice insurance costs. The PROVIDER agrees to
                  discuss the type of policy with the DEPARTMENT in advance and
                  provide a policy only after checking the insurance market for
                  insurance rates. The DEPARTMENT agrees to provide payment of
                  the annual premium cost of such policy for the initial year of
                  this AGREEMENT that the next payment is due from the
                  DEPARTMENT on the semi-monthly invoice provided to the
                  DEPARTMENT pursuant to Paragraph 6 of the Attachment Four. For
                  insurance coverage that renews during subsequent years of this
                  Agreement, or catastrophic fund charges that are additionally

<PAGE>
                  incurred, such insurance invoice shall be billed and paid on
                  the next semi-monthly invoice date closest to the placement or
                  change date.

         9.       Optional Services. DEPARTMENT shall have the right, in its
                  sole discretion, to negotiate with PROVIDER concerning the
                  optional services, and costs thereof, contained in PROVIDER'S
                  proposal and to require PROVIDER to provide such services
                  under mutually agreeable terms. This includes mental health
                  and pharmacy services.

         10.      Outside Medical Services Cap. The PARTIES will work to develop
                  information requirements for monthly reporting to the
                  DEPARTMENT by the PROVIDER to be used for quarterly outside
                  medical services cap settlements.

         11.      Cost Savings. The PROVIDER shall work toward a common goal of
                  cost savings with DEPARTMENT and its other health care
                  providers.

         12.      Performance-Based Standards. The PROVIDER shall work
                  cooperatively with DEPARTMENT and its other health care
                  providers in developing performance-based standards through
                  the collection of data, tracking of information and the
                  improvement of outcomes.

         13.      Committee Participation. The PROVIDER shall participate in
                  committee meetings with DEPARTMENT and its other health care
                  providers. Written minutes from these meetings as agreed to by
                  the PROVIDER and obligations of PROVIDER therein shall be
                  binding on the PROVIDER.

         14.      Special Needs. The PROVIDER shall work cooperatively with the
                  DEPARTMENT and its other health care providers to address the
                  special needs and programs of the inmate population.

        15.       Hourly Penalties for Staff. Penalties for staffing may be
                  assessed as follows:
                  -Staffing 100-95% of staffing plan - no penalties
                  -Staffing less than 95% to 90% of staffing plan - 100%
                  -Clinical staffing at less than 90% of staffing plan - 150%

         16.      Vendor Indemnification. The parties providing healthcare
                  services to PA DOC hereby agree to indemnify each other as
                  follows: MHM Correctional Services, Inc. (MHM) agrees to
                  indemnify, defend and hold harmless Prison Health Services,
                  Inc. (PHS) and Diamond Pharmacy Services (Diamond) from and
                  against any

<PAGE>

                  claims (including attorney fees and costs) against Diamond
                  and/or PHS, their employees, agents, officers and
                  subcontractors arising out of acts or omissions of MHM; and

                  Diamond agrees to indemnify, defend and hold harmless PHS and
                  MHM from and against any claims (including attorney fees and
                  costs) against MHM and/or PHS, their employees, agents,
                  officers and subcontractors arising out of acts or omissions
                  of Diamond; and

                  PHS agrees to indemnify, defend and hold harmless Diamond and
                  MHM from and against any claims (including attorney fees and
                  costs) against MHM and/or Diamond, their employees, agents,
                  officers and subcontractors arising out of acts or omissions
                  of PHS.

         17.      RFP Changes. The DEPARTMENT accepts all of the changes to the
                  RFP proposed by the PROVIDER on pages 10.1 to 10.5 of its
                  technical proposal except where language of this Attachment
                  Four and the contract provide alternate or clarifying language
                  to those changes.<PAGE>
                                                                     EXHIBIT 4.1

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

                               RYDER SYSTEM, INC.

                                       and

                J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION,

                                   as Trustee

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

                                    INDENTURE

                              Dated as of [ ], 2003

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

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

<PAGE>

                              CROSS-REFERENCE TABLE

                  Reconciliation and tie between Indenture dated as of [ ],
2003, and the Trust Indenture Act of 1939. This reconciliation section does not
constitute a part of the Indenture.

Trusted Indenture Act of 1939
           Section                                           Indenture Section
-------------------------------                              -----------------

310  (a)(1).....................................................  7.10
     (a)(2).....................................................  7.10
     (a)(3).....................................................  N.A.
     (a)(4).....................................................  N.A.
     (b)........................................................  7.08;7.10;
                                                                  10.02
     (c)........................................................  N.A.
311  (a)........................................................  7.11
     (b)........................................................  7.11
     (c)........................................................  N.A.
312  (a)........................................................  2.06
     (b)........................................................  10.03
     (c)........................................................  10.03
313  (a)........................................................  7.06
     (b)(1).....................................................  N.A.
     (b)(2).....................................................  7.06
     (c)........................................................  10.02
     (d)........................................................  7.06
314  (a)........................................................  4.02; 10.02
     (b)........................................................  N.A.
     (c)(1).....................................................  10.04
     (c)(2).....................................................  10.04
     (c)(3).....................................................  N.A.
     (d)........................................................  N.A.
     (e)........................................................  10.05
     (f)........................................................  N.A.
315  (a)........................................................  7.01(b)
     (b)........................................................  7.05; 10.02
     (c)........................................................  7.01(a)
     (d)........................................................  7.01(c)
     (e)........................................................  6.11
316  (a) (last sentence)........................................  2.10
     (a)(1)(A)..................................................  6.05
     (a)(1)(B)..................................................  6.04
     (a)(2).....................................................  N.A.
     (b)........................................................  6.07
317  (a)(1).....................................................  6.08

<PAGE>

Trusted Indenture Act of 1939
           Section                                           Indenture Section
-------------------------------                              -----------------
     (a)(2).....................................................  6.09
     (b)........................................................  2.05
318  (a)........................................................  10.01

----------------------
N.A. means Not Applicable.

                                       2
<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                       Page
                                                                                                       ----
<S>            <C>                                                                                    <C>
                                    ARTICLE I

                   Definitions and Incorporation by Reference

SECTION 1.01.  Definitions...............................................................................1
SECTION 1.02.  Incorporation by Reference of Trust Indenture Act.........................................6
SECTION 1.03.  Trust Indenture Act.......................................................................7
SECTION 1.04.  Rules of Construction.....................................................................7
SECTION 1.05.  Accounting Terms..........................................................................8

                                   ARTICLE II

                               The Debt Securities

SECTION 2.01.  Issuable in Series........................................................................8
SECTION 2.02.  Establishment of Terms of Series of Debt Securities.......................................8
SECTION 2.03.  Execution and Authentication.............................................................10
SECTION 2.04.  CUSIP Numbers............................................................................11
SECTION 2.05.  Registrar and Paying Agent...............................................................12
SECTION 2.06.  Paying Agent to Hold Money in Trust......................................................12
SECTION 2.07.  Debt Securityholder Lists................................................................12
SECTION 2.08.  Transfer and Exchange....................................................................13
SECTION 2.09.  Replacement Debt Securities..............................................................13
SECTION 2.10.  Outstanding Debt Securities..............................................................13
SECTION 2.11.  Treasury Debt Securities for Certain Purposes............................................14
SECTION 2.12.  Temporary Debt Securities................................................................14
SECTION 2.13.  Cancelation..............................................................................14
SECTION 2.14.  Defaulted Interest.......................................................................15
SECTION 2.15.  Persons Deemed Owners....................................................................15
SECTION 2.16.  Certain Provisions Relating to Global Registered Securities..............................15

                                   ARTICLE III

                                   Redemption

SECTION 3.01.  Notice to Trustee........................................................................18
SECTION 3.02.  Selection of Debt Securities to be Redeemed..............................................18
SECTION 3.03.  Notice of Redemption.....................................................................19
SECTION 3.04.  Effect of Notice of Redemption...........................................................19
SECTION 3.05.  Deposit of Redemption Price..............................................................19
SECTION 3.06.  Debt Securities Redeemed in Part.........................................................19
SECTION 3.07.  Remarketing of Remarketable Securities...................................................20

</TABLE>

<PAGE>
<TABLE>
<CAPTION>
<S>            <C>                                                                                    <C>
                                   ARTICLE IV

                                    Covenants

SECTION 4.01.  Payment of Debt Securities...............................................................20
SECTION 4.02.  SEC Reports..............................................................................20
SECTION 4.03.  Compliance Certificate; Notice of Default and Event of Default...........................21
SECTION 4.04.  Maintenance of Office or Agency..........................................................21
SECTION 4.05.  Additional Amounts.......................................................................21
SECTION 4.06.  Limitation on Secured Indebtedness.......................................................22
SECTION 4.07.  Limitation on Investments in Unrestricted Subsidiaries...................................23
SECTION 4.08.  Limitation on Permitting Restricted Subsidiaries to Become Unrestricted Subsidiaries and
                     Unrestricted Subsidiaries to Become Restricted Subsidiaries........................23
SECTION 4.09.  Waiver of Certain Covenants..............................................................23

                                    ARTICLE V

                              Successor Corporation

SECTION 5.01.  When Company May Merge, Etc..............................................................24
SECTION 5.02.  Successor Corporation Substituted........................................................24

                                   ARTICLE VI

                              Default and Remedies

SECTION 6.01.  Events of Default........................................................................25
SECTION 6.02.  Acceleration.............................................................................26
SECTION 6.03.  Other Remedies...........................................................................26
SECTION 6.04.  Waiver of Past Defaults..................................................................26
SECTION 6.05.  Control by Majority......................................................................26
SECTION 6.06.  Limitation on Suits......................................................................27
SECTION 6.07.  Rights of Holders to Receive Payment.....................................................27
SECTION 6.08.  Collection Suits by Trustee..............................................................27
SECTION 6.09.  Trustee May File Proofs of Claim.........................................................27
SECTION 6.10.  Priorities...............................................................................28
SECTION 6.11.  Undertaking for Costs....................................................................28

                                   ARTICLE VII

                                     Trustee

SECTION 7.01.  Duties of Trustee........................................................................28
SECTION 7.02.  Rights of Trustee........................................................................29

</TABLE>

                                       ii

<PAGE>
<TABLE>
<CAPTION>
<S>            <C>                                                                                    <C>
SECTION 7.03.  Individual Rights of Trustee.............................................................30
SECTION 7.04.  Trustee's Disclaimer.....................................................................30
SECTION 7.05.  Notice of Defaults.......................................................................30
SECTION 7.06.  Reports by Trustee to Holders............................................................30
SECTION 7.07.  Compensation and Indemnity...............................................................31
SECTION 7.08.  Replacement of Trustee...................................................................32
SECTION 7.09.  Successor Trustee by Merger, etc.........................................................33
SECTION 7.10.  Eligibility; Disqualification............................................................33
SECTION 7.11.  Preferential Collection of Claims Against Company........................................33

                                  ARTICLE VIII

                             Discharge of Indenture

SECTION 8.01.  Termination of Company's Obligations.....................................................33
SECTION 8.02.  Application of Trust Money...............................................................34
SECTION 8.03.  Reinstatement............................................................................34
SECTION 8.04.  Repayment to Company.....................................................................35
SECTION 8.05.  Indemnity for Government Obligations.....................................................35

                                   ARTICLE IX

                       Amendments; Supplements and Waivers

SECTION 9.01.  Without Consent of Holders...............................................................35
SECTION 9.02.  With Consent of Holders..................................................................35
SECTION 9.03.  Limitations..............................................................................36
SECTION 9.04.  Compliance with Trust Indenture Act......................................................36
SECTION 9.05.  Revocation and Effect of Consents........................................................36
SECTION 9.06.  Notation on or Exchange of Debt Securities...............................................37
SECTION 9.07.  Trustee Protected........................................................................37

                                    ARTICLE X

                                  Miscellaneous

SECTION 10.01.  Trust Indenture Act Controls............................................................37
SECTION 10.02.  Notices.................................................................................37
SECTION 10.03.  Communication by Holders with Other Holders.............................................38
SECTION 10.04.  Certificate and Opinion as to Conditions Precedent......................................38
SECTION 10.05.  Statements Required in Certificate or Opinion...........................................38
SECTION 10.06.  Rules by Trustee and Agents.............................................................38
SECTION 10.07.  Legal Holidays..........................................................................39
SECTION 10.08.  Governing Law...........................................................................39
SECTION 10.09.  No Adverse Interpretation of Other Agreements...........................................39
SECTION 10.10.  No Recourse Against Others..............................................................39
SECTION 10.11.  Duplicate Originals.....................................................................39

</TABLE>

                                      iii
<PAGE>
<TABLE>
<CAPTION>

                                                                                                       Page
                                                                                                       ----
<S>            <C>                                                                                    <C>
SECTION 10.12.  Severability............................................................................39

SIGNATURES..............................................................................................39
ACKNOWLEDGMENTS.........................................................................................40

</TABLE>

                                       iv
<PAGE>

         INDENTURE, dated as of [    ], 2003, between RYDER SYSTEM, INC., a
Florida corporation (the "Company"), and J.P. MORGAN TRUST COMPANY, NATIONAL
ASSOCIATION, a national banking association organized and existing under the
laws of the United States of America (the "Trustee").

                  Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Debt
Securities issued under this Indenture:

                                   ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  SECTION 1.01. DEFINITIONS.

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

                  "Affiliate" means any Person directly or indirectly
controlling or controlled by or under direct or indirect common control with the
Company.

                  "After-Acquired Indebtedness" means:

                  (1) Pre-existing indebtedness assumed by the Company or a
         Restricted Subsidiary as a result of the purchase, takeover or other
         acquisition of the assets or stock of an entity other than a Subsidiary
         of the Company;

                  (2) mortgages or liens on property existing at the time of
         acquisition of said property; or

                  (3) Indebtedness of an Unrestricted Subsidiary which is
         outstanding at the time such Unrestricted Subsidiary becomes a
         Restricted Subsidiary subsequent to the date of this Indenture.

                  "Agent" means any Paying Agent, Registrar or co-registrar.

                  "Applicable Procedures" means, with respect to any transfer,
redemption or exchange of beneficial interests in any Global Registered
Security, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer, redemption or exchange.

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

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

<PAGE>

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

                  "Business Day", when used with respect to any place, means any
day, other than a Saturday or Sunday, and other than a day on which banking
institutions in such place are authorized or required by law, regulation or
executive order to close.

                  "Clearstream" means Clearstream Banking, societe anonyme,
Luxembourg (formerly Cedel Bank, societe anonyme), or any successor to the
operations thereof.

                  "Company" means the party named as such above until a
successor replaces it and thereafter means the successor.

                  "Company Order" means an order signed by two Officers or by
any Officer and either an Assistant Treasurer or an Assistant Secretary of the
Company.

                  "Corporate Trust Office" means the office of the Trustee in
the City of Birmingham, Alabama at which at any particular time its corporate
trust business shall principally be administered, which office at the date of
the execution and delivery of this instrument as originally executed is located
at 3800 Colonnade Parkway, Suite 490, Birmingham, Alabama 35243, Attention:
Corporate Trust Administration, except that with respect to presentation or
surrender of Debt Securities for payment or for registration of transfer or
exchange, such term shall mean the office or agency of the Trustee in The City
of New York at which at any particular time its corporate agency business shall
principally be administered in that city, which office at the date of the
execution and delivery of this instrument as originally executed is located at 4
New York Plaza, New York, New York 10004, Attention: Institutional Trust
Services; and, in either case, such other office or offices as the Trustee may
designate from time to time by notice to the Company and to the Holders.

                  "Consolidated" when used with respect to any of the terms
herein shall refer to such terms as reflected in a consolidation of the accounts
of the Company and its Restricted Subsidiaries in accordance with generally
accepted accounting principles.

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

                  "Debt Securities" means the debentures, notes, bonds or other
evidences of indebtedness of the Company of any Series established in a
supplemental indenture or by or pursuant to a Board Resolution and authenticated
and delivered under this Indenture.

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

                                       2
<PAGE>

                  "Depositary" means, unless otherwise specified by the Company
pursuant to either Section 2.02 or 2.16, with respect to the Debt Securities of
any Series issuable or issued in whole or in part as one or more Global
Registered Security or Securities, The Depository Trust Company, New York, New
York, or any successor thereto registered as a clearing agency under the
Securities Exchange Act of 1934, as amended, and any other applicable statute or
regulation and appointed as Depositary hereunder pursuant to the applicable
provisions of this Indenture.

                  "Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear System, or any successor securities clearing agency.

                  "Event of Default" has the meaning specified in Section 6.01.

                  "Foreign Financing Subsidiary" means any Subsidiary, not
organized under the laws of the United States of America or any state thereof,
engaged in the business of Lending to the Company or its Restricted Subsidiaries
and borrowing on behalf of the Company or its Restricted Subsidiaries.

                  "Global Registered Security" means, unless otherwise specified
by the Company pursuant to either Section 2.02 or 2.16, with respect to any
Series of Debt Securities issued hereunder, a Registered Debt Security which is
executed by the Company and authenticated and delivered by the Trustee to the
Depositary or a custodian therefor, or pursuant to the Depositary's instruction,
all in accordance with this Indenture and an indenture supplemental hereto, or a
Board Resolution, which shall be registered in the name of the Depositary or its
nominee and which shall represent, and shall be denominated in an amount equal
to the aggregate Principal amount of all the outstanding Debt Securities of such
Series or any portion thereof, in either case having the same terms, including,
without limitation, the same original issue date, date or dates on which
Principal and interest, if any, are due, and, if interest shall be payable
thereon, interest rate or method of determining such interest. The term "global
form" or "definitive global registered form" when used in this Indenture shall
include Global Registered Securities.

                  "Holder" or "Debt Securityholder" with respect to a Registered
Debt Security, means a Person in whose name a Debt Security is registered on the
registration books kept for that purpose in accordance with the terms hereof.

                  "Indebtedness" means all indebtedness other than Subordinated
Indebtedness of the Company or its Restricted Subsidiaries for borrowed money or
leasing obligations which have been created, incurred or assumed as reflected on
the Consolidated balance sheet of the Company and its Restricted Subsidiaries,
and any indebtedness of other parties guaranteed by the Company or its
Restricted Subsidiaries, without duplication.

                  "Indenture" means this Indenture as supplemented and amended
from time to time.

                  "Intercompany Indebtedness" means any Indebtedness owed
directly between the Company and/or its Restricted Subsidiaries.

                                       3
<PAGE>

                  "Net Tangible Assets" means the total amount of assets as
reflected on the Consolidated balance sheet of the Company and its Restricted
Subsidiaries, after appropriate deduction for minority interests, less:

                  (1) all goodwill, operating rights, patents, trade-names,
         unamortized debt expense and other intangibles;

                  (2) amounts invested in, advanced to or equity in Unrestricted
         Subsidiaries; and

                  (3) unamortized debt discount.

                  "Net Worth" means, with regard to each Series of Debt
Securities, the sum of the following as reflected on the Consolidated balance
sheet of the Company and its Restricted Subsidiaries (1) shareholders' equity,
(2) Subordinated Indebtedness and (3) 50% of the reserve for deferred income
taxes, less (A) all goodwill, operating rights, patents, trade-names and other
intangibles in excess of the balance at December 31 of the year prior to
issuance of that Series, (B) any increase in the value of a fixed asset arising
from a revaluation thereof after December 31 of the year prior to issuance of
that Series, and (C) any equity interest in an Unrestricted Subsidiary.

                  "Officer" means the Chairman of the Board, the President, any
Vice President (whether or not designated by a number or word added before or
after the title vice president), the Treasurer, the Secretary or the Controller
of the Company.

                  "Officers' Certificate" means a certificate signed by two
Officers or by any Officer and either an Assistant Treasurer or Assistant
Secretary of the Company.

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

                  "Original Issue Discount Debt Security" means any Debt
Security which provides for an amount less than the stated Principal amount
thereof to be due and payable upon redemption or declaration of acceleration of
the maturity thereof pursuant to Section 6.02 or any Debt Security which for
United States Federal income tax purposes would be considered an original issue
discount debt security.

                  "Paying Agent" has the meaning specified in Section 2.05.

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

                  "Place of Payment", when used with respect to the Debt
Securities of any Series, means the place or places where, subject to the
provisions of Section 4.04, the Principal of and any interest on the Debt
Securities of such Series are payable as specified in Section 2.02.

                                       4
<PAGE>

                  "Leasing Indebtedness" means the capitalized Indebtedness of
any leasing obligations on personal property.

                  "Principal" of a Debt Security means the principal of the Debt
Security plus, when appropriate, the premium, if any, on the Debt Security
except that (i) in the case of an Original Issue Discount Debt Security, the
term shall mean the amount as specified in such Debt Security that would then be
due and payable upon redemption or acceleration of the maturity thereof and (ii)
in the case of a Debt Security denominated in a foreign currency or composite
currency, for purposes of determining the aggregate principal amount of Debt
Securities which shall have voted or given consent with respect to any matter,
the term shall mean the U.S. dollar equivalent, determined as of the issue date,
of the principal amount (determined, in the case of an Original Issue Discount
Debt Security, pursuant to (i) above) of such Debt Security.

                  "Real Property Indebtedness" means Indebtedness secured by
real property acquired by the Company or its Restricted Subsidiaries after the
date of this Indenture, including both mortgage and lease financing.

                  "Registered Debt Security" means any Debt Security established
pursuant to Section 2.02 which is payable to the registered holder thereof.

                  "Registrar" has the meaning specified in Section 2.05.

                  "Remarketable Securities" has the meaning specified in
Section 3.07.

                  "Responsible Officer", when used with respect to the Trustee,
shall mean any officer or assistant officer of the Trustee within the Corporate
Trust Administration unit of the Trustee who has responsibility for the
administration of this Indenture and, for the purposes of Sections 7.01(3) (B)
and 7.05, also means any other officer or officers of the Trustee to whom any
corporate trust matter is referred because of such person's knowledge of and
familiarity with a particular subject.

                  "Restricted Subsidiary" means any Subsidiary other than
Unrestricted Subsidiary.

                  "SEC" means the Securities and Exchange Commission.

                  "Secured Indebtedness" means Indebtedness secured by pledge
of, or mortgage, lien or security interest on, or title to any property, as well
as any unsecured Indebtedness of any Restricted Subsidiary other than a Foreign
Financing Subsidiary.

                   "Series" or "Series of Debt Securities" means the series of
debentures, notes, bond or other evidences of Indebtedness of the Company
established in a supplemental indenture or by or pursuant to a Board Resolution
and authenticated and delivered under this Indenture.

                  "Subordinated Indebtedness" means Indebtedness which is
expressly made subordinate and junior in rank and right of payment to the Debt
Securities and other

                                       5
<PAGE>

such indebtedness as may be specified or characterized in the instruments
evidencing the Subordinated Indebtedness or the indenture of other such similar
instrument under which it is issued.

                  "Subsidiary" means any corporation of which the Company,
directly or through one or more Subsidiaries, owns more than 50% of the shares
of Voting Stock.

                  "TIA" means the Trust Indenture Act of 1939 (15 U.S. Code
ss.ss. 77aaa-77bbbb) as in effect on the date shown above, except as provided in
Section 9.04.

                  "Trustee" means the party named as Trustee above until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture and thereafter means the successor.

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

                  "U.S. Government Obligations" means:

                  (1) direct obligations of the United States of America for the
payment of which the full faith and credit of the United States of America is
pledged; or

                  (2) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America, the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America.

                  "U.S. Person" means any citizen or resident of the United
States, any corporation, partnership or other entity created or organized in or
under the laws of the United States or any political subdivision thereof, or any
estate or trust the income of which is subject to United States Federal income
taxation regardless of its source.

                  "Unrestricted Subsidiary" means (1) any Subsidiary (other than
a Foreign Financing Subsidiary) substantially all of the property of which is
located or substantially all of the business of which is conducted outside of
the United States of America or its possessions, Canada or the United Kingdom,
and (2) any other Subsidiary (including, if so designated, a Foreign Financing
Subsidiary) so designated by the Board of Directors or the Chief Executive
Officer of the Company.

                  "Voting Stock" means stock of the class or classes having
general voting power under ordinary circumstances to elect at least a majority
of the board of directors or other governing body of a corporation (other than
stock having such power by reason of the happening of any contingency).

                  SECTION 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE
ACT. Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by

                                       6
<PAGE>

reference in and made a part of this Indenture. The following terms used in this
Indenture have the following TIA meanings:

                  the "Company" means obligor on the indenture securities.

                  this "Indenture" means indenture to be qualified.

                  "SEC" means the Commission.

                  "Debt Securities" means the indenture securities.

                  "Debt Securityholder" means an indenture security holder.

                  the "Trustee" means indenture trustee or institutional
         trustee.

                  All other terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by SEC rule under
the TIA have the meanings so assigned to them.

                  SECTION 1.03. TRUST INDENTURE ACT. The provisions of TIA
Sections 310 through 317 that impose duties on any Person (including the
provisions automatically deemed included herein unless expressly excluded by
this Indenture) are a part of and govern this Indenture upon and so long as the
Indenture and Debt Securities are subject to the TIA. If any provision of this
Indenture limits, qualifies or conflicts with any duties required by the TIA,
the imposed duties shall control. If a provision of the TIA permits a provision
of this Indenture and the TIA provision is amended, then the Indenture provision
shall be automatically amended to like effect.

                  Any reference to a requirement under the TIA shall only apply
upon and so long as the Indenture is qualified under and subject to the TIA.

                  SECTION 1.04. RULES OF CONSTRUCTION. Unless the context
otherwise requires:

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

                  (2) "or" is not exclusive;

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

                  (4) all references in this table to designated "Articles,"
         "Sections," and other subdivisions are to designated Articles, Sections
         and other subdivisions of this Indenture as originally executed; and

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

                                       7
<PAGE>

                  SECTION 1.05. ACCOUNTING TERMS. All accounting terms not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles ("GAAP") as in effect on June 30, 2003. If any
changes in GAAP are hereafter required or permitted and are adopted by the
Company or any of its Subsidiaries, or the Company or any of its Subsidiaries
shall change its application of GAAP with respect to any off-balance sheet
liabilities or otherwise, in each case with the agreement of its independent
certified public accountants and such changes, if applicable, could result in a
change in the methods of calculation of any of the financial covenants, tests,
restrictions or standards herein or in the related definitions or terms used
therein ("Accounting Changes"), then the Company, may, in its sole discretion,
give effect to such changes in the calculation of such financial covenants,
tests, restrictions or standards.

                                   ARTICLE II

                               THE DEBT SECURITIES

                  SECTION 2.01. ISSUABLE IN SERIES. The aggregate Principal
amount of Debt Securities which may be authenticated and delivered under this
Indenture is unlimited. The Debt Securities may be issued in one or more Series.
The form of Debt Securities of each Series shall be established by or pursuant
to a Board Resolution or in one or more indenture supplements hereto at or prior
to the issuance of such Debt Securities. Debt Securities of any one Series shall
be substantially identical in all respects except as to denomination, maturity
date, interest rate, if any, and except as may otherwise be provided in or
pursuant to any Board Resolution or in any indenture supplements hereto. Debt
Securities may differ between Series, in respect of any matter. All Series of
Debt Securities shall be equally and ratably entitled to the benefits of this
Indenture. Each Debt Security shall be dated the date of its authentication.

                  SECTION 2.02. ESTABLISHMENT OF TERMS OF SERIES OF DEBT
SECURITIES. At or prior to the issuance of any Series of Debt Securities, the
following shall be established by or pursuant to a Board Resolution and set
forth in an Officers' Certificate or established in one or more indenture
supplements hereto:

                  (1) the title of the Debt Securities of the Series (which
         shall distinguish the Debt Securities of the Series from the Debt
         Securities of any other Series);

                  (2) any limit upon the aggregate Principal amount of the Debt
         Securities of the Series which may be authenticated and delivered under
         this Indenture (except for Debt Securities authenticated and delivered
         upon registration of transfer of, or in exchange for, or in lieu of,
         other Debt Securities of the Series pursuant to Section 2.08, 2.09,
         2.12 or 2.16);

                  (3) the Person to whom any interest on any Registered Debt
         Securities of the Series shall be payable if other than the Person in
         whose name that Debt Security is registered at the close of business on
         the record date for such interest;

                                       8
<PAGE>

                  (4) the date or dates on which the Principal of the Debt
         Securities of the Series is payable;

                  (5) the rate or rates at which the Debt Securities of the
         Series shall bear interest or the method for calculating such rate or
         rates, the date or dates from which such interest shall accrue, the
         dates on which such interest shall be payable and the record date for
         the interest payable on any Registered Debt Securities on any interest
         payment date, if other than in the manner provided in Section 4.01;

                  (6) the place or places where, subject to the provisions of
         Section 4.01, the Principal of and interest on Debt Securities of the
         Series shall be payable and, if different, the places where, subject to
         the provisions of Section 2.08, any Registered Debt Securities of the
         Series may be surrendered for registration of transfer, where Debt
         Securities of the Series may be surrendered for exchange and where
         notices and demands to or upon the Company in respect of the Debt
         Securities of the Series and this Indenture may be served;

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

                  (8) the obligation, if any, of the Company to redeem or
         purchase Debt Securities of the Series pursuant to any sinking fund or
         analogous provisions or at the option of a Holder thereof, the period
         or periods within which, the price or prices at which and the terms and
         conditions upon which Debt Securities of the Series shall be redeemed
         or purchased, in whole or in part, pursuant to such obligation and
         provisions, if any, for the remarketing of such Securities;

                  (9) if other than denominations of 1,000 United States dollars
         and any integral multiple thereof, the denominations in which Debt
         Securities of the Series shall be issuable;

                  (10) the currency or currencies, including composite
         currencies, in which payment of the Principal of and any interest on
         the Debt Securities of the Series shall be payable if other than United
         States dollars;

                  (11) in the case of Original Issue Discount Debt Securities,
         the portion of the Principal amount of Debt Securities of the Series
         which shall be payable upon declaration of acceleration of the maturity
         thereof pursuant to Section 6.02;

                  (12) the obligation, if any, of the Company to pay Additional
         Amounts pursuant to Section 4.05;

                  (13) whether the Debt Securities of the Series shall be issued
         in whole or in part in the form of a Global Registered Security or
         Securities, the terms and conditions, if any, upon which such Global
         Registered Security or Securities may be exchanged in whole or in part
         for individual certificates evidencing Debt Securities, and the
         Depositary for such Global Registered Security or Securities;

                                       9
<PAGE>

                  (14) any deletions from or modifications of or additions to
         the (i) Events of Default set forth in Section 6.01, (ii) covenants of
         the Company set forth in Article 4 or (iii) provisions set forth in
         Article 8, which in any such case shall be applicable to the Debt
         Securities of the Series;

                  (15) any other terms of the Debt Securities of the Series
         (which terms shall not be inconsistent with the provisions of this
         Indenture); and

                  (16) the form of the Debt Securities of the Series.

                  SECTION 2.03. EXECUTION AND AUTHENTICATION. Debt Securities
shall be executed by an Officer for the Company and attested by the Secretary or
an Assistant Secretary. Signatures shall be manual or facsimile.

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

                  A Debt Security shall not be valid until authenticated by the
manual signature of the trustee or an authenticating agent. The signature shall
be conclusive evidence that the Debt Security has been authenticated under this
Indenture.

                  The Trustee shall at any time, and from time to time,
authenticate Debt Securities for original issue in an unlimited aggregate
Principal amount, upon receipt by the Trustee of a Company Order for the
authentication and delivery of such Debt Securities.

                  In authenticating such Debt Securities, and accepting the
additional responsibilities under this Indenture in relation to such Debt
Securities, the Trustee shall be entitled to receive, and (subject to Section
7.01) shall be fully protected in relying upon:

                  (1) a copy of the Board Resolution and, if applicable, the
         Officers' Certificate delivered pursuant to such Board Resolution
         relating to the establishment of the forms and terms of such Debt
         Securities and, if applicable, an appropriate record of any action
         taken pursuant to such Board Resolution;

                  (2) an executed supplemental indenture or an Officers'
         Certificate setting forth the form and terms of the Debt Securities as
         required by Section 2.02; and

                  (3) an Opinion of Counsel which shall state in effect:

                           (A) that the form or forms and terms of such Debt
                  Securities have been duly authorized by the Company and have
                  been established in conformity with the provisions of this
                  Indenture;

                           (B) that such Debt Securities have been duly
                  authorized and, when duly executed and delivered by the
                  Company and authenticated and

                                       10
<PAGE>

                  delivered by the Trustee in the manner and subject to any
                  conditions specified in such Opinion of Counsel, will have
                  been duly issued under this Indenture and will constitute
                  valid and legally binding obligations of the Company, entitled
                  to the benefits provided by this Indenture, enforceable in
                  accordance with their terms, subject to bankruptcy,
                  insolvency, reorganization and other laws of general
                  applicability relating to or affecting the enforcement of
                  creditors' rights and to general equity principles; and

                           (C) that all laws and requirements (including the
                  obtaining of all necessary authorizations, approvals and
                  consents, if any, of governmental bodies) in respect of the
                  execution and delivery by the Company of such Debt Securities
                  have been complied with and that authentication and delivery
                  of such Debt Securities by the Trustee will not violate the
                  terms of the Indenture.

                  The Trustee shall have the right to decline to authenticate
and deliver any Debt Securities under Section 2.03 if the Trustee, being advised
by counsel, determines that such action may not lawfully be taken or if the
Trustee in good faith by its board of directors or trustees, executive
committee, or a trust committee of directors or trustees and/or vice presidents
shall determine that such action would adversely affect the Trustee's own
rights, duties or immunities under this Indenture or would otherwise expose the
Trustee to personal liability to existing Debt Securityholders.

                  Notwithstanding the provisions of Section 2.02 and of this
Section 2.03, if all the Debt Securities of a Series are not to be originally
issued at one time, it shall not be necessary to deliver the Officers'
Certificate or supplemental indenture otherwise required pursuant to Section
2.02 or the other documents deliverable pursuant to Section 2.03(1), (2) and (3)
at or prior to the time of authentication of each Debt Security of such Series
if such documents are delivered at or prior to the time of authentication upon
original issuance of the first Debt Security of such Series to be issued.

                  The aggregate Principal amount of Debt Securities of any
Series outstanding at any time may not exceed any limit upon the maximum
Principal amount for such Series set forth in the Board Resolution or the
Officers' Certificate delivered pursuant to a Board Resolution or supplemental
indenture delivered pursuant to Section 2.02, subject to the provisions of
Section 2.09.

                  The Trustee may appoint an authenticating agent to
authenticate Debt Securities. An authenticating agent may authenticate Debt
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as an Agent to deal with the Company or
an Affiliate with respect to the authentication of Debt Securities.

                  SECTION 2.04. CUSIP NUMBERS. The Company in issuing Debt
Securities of any Series may use "CUSIP," "ISIN" or other similar numbers (if
then

                                       11
<PAGE>

generally in use), and, if so, the Trustee shall use CUSIP, ISIN or such other
numbers in notices of redemption as a convenience to Holders of such Series;
PROVIDED that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Debt Securities of such
Series or as contained in any notice of a redemption and that reliance may be
placed only on the other identification numbers printed on the Debt Securities
of such Series, 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, ISIN or such other numbers.

                  SECTION 2.05. REGISTRAR AND PAYING AGENT. Subject to the
provisions of Section 4.04, the Company shall maintain an office or agency in
The City of New York where Registered Debt Securities may be presented for
registration of transfer or for exchange ("Registrar") and an office or agency
in the Place of Payment where any Series of Debt Securities having such Place of
Payment may be presented for payment ("Paying Agent"). The Registrar shall keep
a register in accordance with the provisions of Section 4.04 with respect to
each Series of Registered Debt Securities and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional
paying agents for each Series of Registered Debt Securities. The term
"Registrar" includes any co-registrar. The term "Paying Agent" includes any
additional paying agent. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company shall notify the Trustee of the name
and address of any Agent not a party to this Indenture. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such. The Company
or any Subsidiary may act as Paying Agent or Registrar.

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

                  SECTION 2.06. PAYING AGENT TO HOLD MONEY IN TRUST. The Company
shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust, for the benefit of Holders of any Series of
Debt Securities, or the Trustee, all money held by the Paying Agent for the
payment of Principal or interest on such Series of Debt Securities, and will
notify the Trustee of any default by the Company in making any such payment. If
the Company or a Subsidiary acts as a Paying Agent, it shall segregate the money
and hold it as a separate trust fund. The Company at any time may require a
Paying Agent to pay all money held by it to the Trustee. Upon doing so, the
Paying Agent shall have no further liability for the money.

                  SECTION 2.07. DEBT SECURITYHOLDER 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 Registered Debt Securityholders of
each Series that includes Registered Debt Securities. If the Trustee is not the
Registrar, the Company shall furnish to the Trustee on or 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 Registered Debt Securityholders of each Series that
includes Registered Debt Securities.

                                       12
<PAGE>

                  SECTION 2.08. TRANSFER AND EXCHANGE. Where Registered Debt
Securities of a Series are presented to the Registrar or a co-registrar with a
request to register, transfer or to exchange them for an equal Principal amount
of Registered Debt Securities of the same Series and date of maturity of other
denominations, the Registrar shall register the transfer or make the exchange if
its requirements for such transactions are met. To permit registration of
transfer and exchanges the Trustee shall authenticate Registered Debt Securities
at the Registrar's request. The Company will not make any charge for any
registration of transfer or exchange but may require the payment of an amount
sufficient to cover any tax or other governmental charge payable in connection
therewith.

                  The Company shall not be required (1) to register the transfer
or exchange of any Debt Security during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of Debt
Securities of that Series selected for redemption under Section 3.03 and ending
at the close of business on the day of such mailing or (2) to register the
transfer or exchange of any Debt Security so selected for redemption in whole or
in part.

                  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, the Debt Securities or applicable law with respect to any
transfer or any interest in any Debt Security (including any transfers between
or among Depositary participants or owners or holders of beneficial interests in
any Global Registered Security) other than to require delivery of such
certificates and other documentation or evidence, if any, 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.

                  SECTION 2.09. REPLACEMENT DEBT SECURITIES. If the Holder of a
Debt Security claims that the Debt Security has been lost, destroyed or
wrongfully taken, then, in the absence of notice to the Company that the Debt
Security has been acquired by a protected purchaser, the Company shall issue and
the Trustee shall authenticate a replacement Debt Security of the same Series
and date of maturity, if the Trustee's and the Company's requirements are met.
If required, an indemnity bond must be sufficient, in the judgment of the
Company and the Trustee, to protect the Company, the Trustee, any Agent or any
authenticating agent from any loss which any of them may suffer if a Debt
Security is replaced. The Company may charge for its expenses in replacing a
Debt Security.

                  Every replacement Debt Security is an obligation of the
Company.

                  SECTION 2.10. OUTSTANDING DEBT SECURITIES. Debt Securities
outstanding at any time are all Debt Securities authenticated by the Trustee
pursuant to this Indenture except for those canceled by it, reductions in the
interest in a Global Registered Security effected by the Trustee in accordance
with the provisions hereof, those delivered to it for cancellation, and those
described in this Section as not outstanding.

                                       13
<PAGE>

                  If a Debt Security is replaced pursuant to Section 2.09, it
ceases to be outstanding until the Trustee receives proof satisfactory to it
that the replaced Debt Security is held by a protected purchaser.

                  If the Paying Agent holds, on a redemption date or a maturity
date, money sufficient to pay Debt Securities of a Series payable on that date,
then on and after that date such Debt Securities cease to be outstanding and
interest then ceases to accrue.

                  A Debt Security does not cease to be outstanding because the
Company or an Affiliate holds the Debt Security.

                  SECTION 2.11. TREASURY DEBT SECURITIES FOR CERTAIN PURPOSES.
In determining whether the Holders of the required Principal amount of Debt
Securities of a Series have concurred in any direction, waiver or consent, Debt
Securities of such Series owned by the Company or an Affiliate shall be
disregarded and deemed not to be outstanding, except that, for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Debt Securities of such Series which a
Responsible Officer of the Trustee actually knows are so owned shall be so
disregarded. Securities so owned which have been pledged in good faith shall not
be disregarded if the pledgee establishes to the satisfaction of the Trustee the
pledgee's right to deliver any such direction, waiver or consent with respect to
the Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or of such other obligor.

                  SECTION 2.12. TEMPORARY DEBT SECURITIES. Pending the
preparation of definitive Debt Securities, the Company may execute, and upon
receipt of a Company Order, the Trustee shall authenticate and deliver,
temporary Debt Securities which are printed, lithographed, typewritten,
mimeographed or otherwise produced, in any authorized denominations,
substantially of the tenor of the definitive Debt Securities in lieu of which
they are issued and with such appropriate insertions, omissions, substitutions
and other variations as the Officers executing such Debt Securities may
determine as evidenced by their execution of such Debt Securities.

                  If temporary Debt Securities are issued, the Company will
cause definitive Debt Securities to be prepared without unreasonable delay.
After the preparation of definitive Debt Securities, the temporary Debt
Securities shall be exchangeable for definitive Debt Securities upon surrender
of the temporary Debt Securities at the office or agency of the Company
maintained for that purpose, without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Debt Securities, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor one
or more definitive Debt Securities, of any authorized denominations and of like
series, tenor and aggregate Principal amount. Until so exchanged, the temporary
Debt Securities shall in all respects be entitled to the same benefits under
this Indenture as definitive Debt Securities.

                  SECTION 2.13. CANCELATION. The Company at any time may deliver
Debt Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall

                                       14
<PAGE>

forward to the Trustee any Debt Securities surrendered to them for transfer,
exchange or payment. The Trustee shall cancel all Debt Securities surrendered
for transfer, exchange, payment (except payment as provided in Section 3.07) or
cancellation and shall dispose of canceled Debt Securities in accordance with
its then customary procedures therefor or as the Company otherwise directs. The
Company may not issue new Debt Securities to replace Debt Securities that it has
paid (except Debt Securities paid pursuant to Section 3.07) or delivered to the
Trustee for cancellation.

                  SECTION 2.14. DEFAULTED INTEREST. If the Company defaults in a
payment of interest on a Series of Debt Securities, it shall, in the case of
Registered Debt Securities, pay the defaulted interest, plus, to the extent
lawful, any interest payable on the defaulted interest, to the Persons who are
Registered Debt Securityholders of such Series on a subsequent special record
date. The Company shall fix the special record date and payment date. At least
15 days before the special record date, the Company shall mail to the Trustee
and to each Holder of the Series a notice that states the special record date,
the payment date and the amount of defaulted interest to be paid. The Company
may pay defaulted interest in any other lawful manner.

                  SECTION 2.15. PERSONS DEEMED OWNERS. Prior to due presentment
of a Registered Debt Security for transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose name such
Registered Debt Security is registered as the owner of such Registered Debt
Security for the purpose of receiving payment of Principal of and (subject to
Section 2.14) interest on such Debt Security and for all other purposes
whatsoever, whether or not such Debt Security is overdue, and none of the
Company, the Trustee or any agent of the Company or the Trustee shall be
affected by notice to the contrary.

                  Except to the extent otherwise provided in or pursuant to the
Board Resolution establishing a Series of Debt Securities, Persons (other than
the Holders thereof) holding beneficial interests in Global Registered
Securities shall not be deemed the Holders of any Debt Securities represented by
such Global Registered Securities.

                  None of the Company, the Trustee, any Paying Agent, any
authenticating agent or the Registrar will have any responsibility or liability
for any aspect of the records relating to or payments made on account of any
beneficial ownership interest in a Global Registered Security or any other
security issued in global form or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interest.

                  SECTION 2.16. CERTAIN PROVISIONS RELATING TO GLOBAL REGISTERED
SECURITIES. If the Company shall establish pursuant to paragraph (13) of Section
2.02 that the Registered Debt Securities of a particular Series are to be issued
in whole or in part in the form of one or more Global Registered Securities,
then the Company shall execute and the Trustee shall, in accordance with Section
2.03 and the Company Order delivered to the Trustee thereunder with respect to
such Series, authenticate and deliver such Global Registered Security or
securities, which (i) shall represent and shall be denominated in an aggregate
amount equal to the aggregate Principal amount of the Debt Securities of such
Series to be represented by such Global Registered Security or

                                       15
<PAGE>

Securities, (ii) shall be registered in the name of the Depositary for such
Global Registered Security or Securities or its nominee, (iii) shall be
delivered by the Trustee to such Depositary or pursuant to such Depositary's
instruction and (iv) unless otherwise specified by the Company pursuant to
Section 2.02, shall bear a legend substantially in the following form: "Unless
and until it is exchanged in whole or in part for individual certificates
evidencing the Debt Securities represented hereby, this Global Registered
Security may not be transferred except as a whole by the Depositary to a nominee
of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary."

                  Notwithstanding any other provision of this Indenture, but
subject to the provisions of the following paragraph, unless otherwise specified
by the Company pursuant to Section 2.02(13) or unless the terms of a Global
Registered Security expressly permit such Global Registered Security to be
exchanged in whole or in part for individual certificates evidencing Registered
Debt Securities, a Global Registered Security may be transferred, in whole but
not in part in the manner provided in Section 2.08, only to a nominee of the
Depositary for such Global Registered Security, or to the Depositary, or to a
successor Depositary for such Global Registered Security selected or approved by
the Company, or to a nominee of such successor Depositary.

                  If at any time the Depositary for the Global Registered
Securities of a Series notifies the Company that it is unwilling or unable to
continue as Depositary for the Global Registered Securities of such Series or if
at any time the Depositary for the Global Registered Securities of such Series
shall no longer be eligible or in good standing under the Securities Exchange
Act of 1934, as amended, or any other applicable statute or regulation, the
Company shall appoint a successor Depositary with respect to such Global
Registered Security. If a successor Depositary for the Global Registered
Securities of such Series is not appointed by the Company within 90 days after
the Company receives such notice or becomes aware of such ineligibility, the
Company's election pursuant to Section 2.02(13) shall no longer be effective
with respect to the Global Registered Securities of such Series and the Company
will execute, and the Trustee, upon receipt of a Company Order for the
authentication and delivery of individual certificates evidencing Registered
Debt Securities of such Series in exchange for the Global Registered Securities
of such Series, will authenticate and deliver such certificates of like tenor
and terms in definitive form in an aggregate Principal amount equal to the
Principal amount of the Global Registered Security or Global Registered
Securities of such Series in exchange for such Global Registered Security or
Global Registered Securities.

                  The Company may at any time and in its sole discretion
determine that the Debt Securities of any Series issued or issuable in the form
of one or more Global Registered Securities shall no longer be represented by
such Global Registered Security or Securities. In such event the Company will
execute, and the Trustee, upon receipt of a Company Order for the authentication
and delivery of individual certificates evidencing Registered Debt Securities of
such Series in exchange in whole or in part for such Global Registered Security,
will authenticate and deliver such certificates of like tenor and terms in
definitive form in an aggregate Principal amount equal to the Principal amount
of such

                                       16
<PAGE>

Global Registered Security or Securities of such Series in exchange for such
Global Registered Security or Securities.

                  If specified by the Company pursuant to Section 2.02(13) with
respect to a Series of Debt Securities issued or issuable in the form of one or
more Global Registered Securities, the Depositary for any such Global Registered
Security may at its option surrender such Global Registered Security in exchange
in whole or in part for individual certificates evidencing Registered Debt
Securities of such Series of like tenor and terms in definitive form on such
terms as are acceptable to the Company and such Depositary. Thereupon the
Company shall execute, and the Trustee shall authenticate and deliver, without
service charge, (A) to each Person specified by such Depositary a new
certificate or certificates evidencing Registered Debt Securities of the same
Series of like tenor and terms and of any authorized denomination as requested
by such Person in aggregate Principal amount equal to and in exchange for such
Person's beneficial interest in the Global Registered Security; and (B) to such
Depositary a new Global Registered Security of like tenor and terms and in an
authorized denomination equal to the difference, if any, between the Principal
amount of the surrendered Global Registered Security and the aggregate Principal
amount of certificates evidencing Registered Debt Securities delivered to
Holders thereof.

                  In any exchange provided for in any of the preceding three
paragraphs, the Company will execute and the Trustee will authenticate and
deliver individual certificates evidencing Registered Debt Securities in
authorized denominations upon the exchange of the entire Principal amount of a
Global Registered Security for individual Registered Debt Securities, such
Global Registered Security shall be cancelled by the Trustee. Certificates
issued in exchange for a Global Registered Security pursuant to this Section
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Registered Security, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct the Trustee or
the Registrar. Provided that the Company and the Trustee or the Registrar have
so agreed, the Trustee shall deliver such certificates to the Persons in whose
names the newly issued Registered Debt Securities are registered.

                  Until such time as the Depositary notifies the Company that it
is willing and able to make any election on behalf of the Persons having a
beneficial interest in a Global Registered Security entitled to be made by the
Holder of such Debt Security relating to the payment of Principal of and
interest on such Debt Securities, Debt Securities denominated in a foreign
currency will not be issued in the form of a Global Registered Security.

                  The transfer and exchange of beneficial interests in a Global
Registered Security shall be effected in accordance with the provisions of this
Indenture and the Applicable Procedures.

                  The Company, the Trustee and the Agents shall not be
responsible for any acts or omissions of a Depositary, or for any Depositary
records of beneficial ownership interests or for any transactions between the
Depositary and beneficial owners.

                                       17
<PAGE>

                  With respect to any Global Registered Security, nothing herein
shall prevent the Company, the Trustee, or any agent of the Company or the
Trustee, from giving effect to any written certification, proxy or other
authorization furnished by a Depositary or impair, as between a Depositary and
holders of beneficial interests in any Global Registered Security, the operation
of customary practices governing the exercise of the rights of the Depositary as
Holder of such Global Registered Security.

                                   ARTICLE III

                                   REDEMPTION

                  SECTION 3.01. NOTICE TO TRUSTEE. The Company may, with respect
to any Series of Debt Securities, reserve the right to redeem and pay the Series
of Debt Securities, or any part thereof, or may covenant to redeem and pay the
Series of Debt Securities or any part thereof before maturity at such time and
on such terms as provided for in the supplemental indenture or the Board
Resolution or an Officers' Certificate pursuant thereto under which the Series
of Debt Securities was issued. If a Series of Debt Securities is redeemable and
the Company wants or is obligated to redeem all or part of the Series of Debt
Securities pursuant to the terms of the supplemental indenture or the Board
Resolution or an Officers' Certificate pursuant thereto under which the Series
of Debt Securities was issued, it shall notify the Trustee of the redemption
date and the Principal amount of the Series of Debt Securities to be redeemed.
The Company shall give the notice at least 60 days before the redemption date
(or such shorter notice as may be acceptable to the Trustee).

                  SECTION 3.02. SELECTION OF DEBT SECURITIES TO BE REDEEMED. If
less than all the Debt Securities of a Series are to be redeemed, the Trustee
shall select the Debt Securities of the Series to be redeemed by a method that
complies with the requirements, if any, of any stock exchange on which the Debt
Securities are listed and that the Trustee considers fair and appropriate, which
may include selection pro rata or by lot. The Trustee shall make the selection
and notify the Company in writing of the Debt Securities selected for redemption
within ten days after receipt of notice from the Company. The Trustee may select
for redemption portions of the Principal of Debt Securities of the Series that
have denominations larger than $1,000. Debt Securities of the Series and
portions of them it selects shall be in amounts of $1,000 or integral multiples
of $1,000 or, with respect to Debt Securities of any Series issuable in other
denominations pursuant to Section 2.02(9), the minimum Principal denomination
for each Series and integral multiples thereof. Provisions of this Indenture
that apply to Debt Securities of a Series called for redemption also apply to
portions of Debt Securities of that Series called for redemption. Any redemption
affecting a Global Registered Security shall be made in accordance with the
provisions of this Indenture and the Applicable Procedures.

                                       18
<PAGE>

                  SECTION 3.03. NOTICE OF REDEMPTION. At least 30 days but not
more than 60 days before a redemption date, the Company shall give notice in the
manner provided in Section 10.02 to each Holder whose Debt Securities are to be
redeemed.

                  Except as otherwise provided in Section 2.02, the notice shall
identify the Debt Securities of the Series to be redeemed and shall state:

                  (1) The redemption date;

                  (2) the redemption price (or, if not known, the manner of
         calculation thereof);

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

                  (4) that Debt Securities called for redemption must be
         surrendered to the Paying Agent to collect the redemption price;

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

                  (6) list the CUSIP, ISIN or other similar numbers referred to
         in Section 2.04.

                  At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense.

                  Any notice which is mailed in the manner herein provided shall
be conclusively presumed to have been duly given, whether or not the Holder
shall have received such notice. In any case, failure to give notice by mail or
any defect in notices to the Holder of a Series of Debt Securities designated
for redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Debt Security of such Series.

                  SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION. Once notice is
mailed pursuant to Section 3.03, Debt Securities called for redemption become
due and payable on the redemption date and at the redemption price stated in the
notice. Upon surrender to the Paying Agent, such Debt Securities shall be paid
at the redemption price stated in the notice plus accrued interest to the
redemption date.

                  SECTION 3.05. DEPOSIT OF REDEMPTION PRICE. On or before the
redemption date, the Company shall deposit with the Paying Agent money
sufficient to pay the redemption price of and accrued interest on all Debt
Securities to be redeemed on that date.

                  SECTION 3.06. DEBT SECURITIES REDEEMED IN PART. Upon surrender
of a Debt Security that is redeemed in part, the Trustee shall authenticate for
the Holder a new

                                       19
<PAGE>

Debt Security of the same Series and the same maturity equal in Principal amount
to the unredeemed portion of the Debt Security surrendered.

                  SECTION 3.07. REMARKETING OF REMARKETABLE SECURITIES.
Securities of any Series which are payable at the option of the Holders thereof
before their stated maturity (other than upon acceleration pursuant to Section
6.02) ("Remarketable Securities"), shall be paid in accordance with the terms of
the Board Resolution or supplemental indenture authorizing such Series. The
payment of any Principal amount of Remarketable Securities pursuant to such
option for purposes of Section 2.13, shall not operate as a payment of the
indebtedness represented by such Remarketable Securities unless and until the
Company, at its option, shall deliver or surrender the same to the Trustee with
a directive that such Remarketable Securities be cancelled. In connection with
any such payment of Remarketable Securities, the Company may, in lieu of
purchasing such Remarketable Securities, arrange for the purchase of any such
Remarketable Securities by an agreement with one or more investment bankers or
other purchasers to purchase Remarketable Securities by paying to the Holders of
such Remarketable Securities on or before the close of business on the payment
date upon which such option may be exercised, an amount not less than the
aggregate amount (including accrued interest, if any) payable by the Company,
upon exercise of such option and the obligation of the Company to pay such
amount in respect of such Remarketable Securities shall be satisfied and
discharged to the extent such amount is so paid by such purchasers.

                                   ARTICLE IV

                                    COVENANTS

                  SECTION 4.01. PAYMENT OF DEBT SECURITIES. The Company shall
pay the Principal of and interest on the Debt Securities on the dates and in the
manner provided in the Debt Securities. An installment of Principal or interest
shall be considered paid on the date it is due if the Trustee or Paying Agent
holds on that date money designated for and sufficient to pay the installment.

                  Interest on any Registered Debt Security which is payable, and
is punctually paid or duly provided for, on any interest payment date shall be
paid to the Person in whose name that Debt Security is registered at the close
of business on the regular record date for such interest.

                  Interest on overdue Principal shall be paid at the rate borne
by the Debt Securities of that Series; interest on overdue installments of
interest shall be paid at the same rate to the extent lawful.

                  SECTION 4.02. SEC REPORTS. The Company shall file with the
Trustee, within 30 days after it files them with the SEC, copies of the annual
reports and of the information, documents, and other reports (or copies of such
portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to
Section 13 or 15(d) of the Securities Exchange

                                       20
<PAGE>

Act of 1934. The Company also shall comply with the other provisions of TIA ss.
314(a). Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute notice or constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on the Officers' Certificates).

                  SECTION 4.03. COMPLIANCE CERTIFICATE. The Company shall
deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, a certificate from the principal executive officer, principal financial
officer or principal accounting officer as to his or her knowledge of such
obligor's compliance with all conditions and covenants under this Indenture. If
they do, the certificate shall describe the Default. The certificate need not
comply with Section 10.05.

                  SECTION 4.04. MAINTENANCE OF OFFICE OR AGENCY. If Debt
Securities of a Series are issuable only as Registered Debt Securities, the
Company will maintain in each Place of Payment for such Series an office or
agency where Debt Securities of that Series may be presented or surrendered for
payment, transfer or exchange, as the case may be and where notices and demands
to or upon the Company in respect of the Debt Securities of that Series and this
Indenture may be served. If at any time the Company shall fail to maintain any
such office or agency in respect of any Series of Debt Securities or shall fail
to furnish the Trustee with the address thereof, such presentations, and
surrenders of Debt Securities of that Series may be made and notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive such respective
presentations, surrenders, notices and demands.

                  SECTION 4.05. ADDITIONAL AMOUNTS. If the Debt Securities of a
Series provide for the payment of Additional Amounts, the Company will pay to
the Holder of any Debt Security of such Series Additional Amounts as provided
therein. Whenever in this Indenture there is mentioned, in any context, the
payment of the Principal of or interest on, or in respect of, any Debt Security
of any Series, such mention shall be deemed to include mention of the payment of
any Additional Amounts provided for pursuant to this Section.

                  If the Debt Securities of a Series provide for the payment of
Additional Amounts, at least 10 days prior to the first interest payment date
(or if the Debt Securities of that Series will not bear interest prior to
maturity, the first day on which a payment of Principal is made) on which
withholding for or on account of any tax, assessment or other governmental
charge described in the Debt Securities of that Series would be imposed and at
least 10 days prior to each such date of payment of Principal or interest if
there has been any change with respect to the matters set forth in the
below-mentioned Officers' Certificate, the Company will furnish the Trustee and
the Company's Paying Agent or Paying Agents, if other than the Trustee, with an
Officers' Certificate specifying by country the amount, if any, required to be
withheld on such payments to such Holders of Debt Securities and the Company
will pay to the Trustee or such Paying Agent the Additional Amounts required by
such Debt Security and this Section. The Company

                                       21
<PAGE>

covenants to indemnify the Trustee and any Paying Agent for, and to hold them
harmless against, any loss, liability or expense reasonably incurred without
negligence or bad faith on their part arising out or in connection with actions
taken or omitted by any of them in reliance on any Officers' Certificate
furnished pursuant to this Section.

                  SECTION 4.06. LIMITATION ON SECURED INDEBTEDNESS. The Company
will not, and will not permit any Restricted Subsidiary to create, incur or
assume any Secured Indebtedness unless the Debt Securities then outstanding are
equally and ratably secured, with the following exceptions:

                  (1) any Secured Indebtedness existing at the date of this
         Indenture,

                  (2) any Indebtedness of a corporation in existence at the time
         such corporation becomes a Restricted Subsidiary,

                  (3) any After-Acquired Indebtedness,

                  (4) any Intercompany Indebtedness secured in favor of the
         Company or any Restricted Subsidiary,

                  (5) any Indebtedness deemed to be Secured Indebtedness by
         virtue of any of the following liens or charges which are not yet due
         or are payable without penalty or of which the amount, applicability or
         validity is being contested in good faith by appropriate proceedings
         and for which the Company or Restricted subsidiary shall have set aside
         on its books reserves which it deems to be adequate with respect
         thereto:

                           (A) liens for taxes, assessments or other
                  governmental charges,

                           (B) security given in the ordinary course of business
                  to any governmental agency or other body approved by law or
                  governmental regulation in order to allow the Company or
                  Restricted Subsidiary to maintain self-insurance, or to
                  participate in any fund or participate in any benefits in
                  connection with workmen's compensation, unemployment
                  insurance, old age pensions or other social security, or for
                  any other purpose at any time required by law or governmental
                  regulation as a condition to the transaction of business or
                  the exercise of any privilege or license,

                           (C) any encumbrances consisting of zoning
                  restrictions, exceptions, easements, leases or other like
                  restrictions on the use of real property which do not
                  materially impair the use or such property,

                           (D) mechanic's, carrier's workmen's, warehouseman's
                  landlord's or other like liens arising in the ordinary course
                  of business, including liens incident to construction, and the
                  normal extension of trade credit by equipment manufacturers
                  and dealers,

                                       22
<PAGE>

                           (E) any inchoate liens arising under the Employee
                  Retirement Income Security Act of 1974, as amended, to secure
                  any contingent liability of the Company or a Restricted
                  Subsidiary, and

                           (F) other liens incidental to the conduct of business
                  or ownership of property and assets which were not incurred in
                  connection with the borrowing of money and which do not in the
                  aggregate materially detract from the value of the property or
                  assets, taken as a whole, of the Company or any of its
                  Restricted Subsidiaries, or materially impair the use thereof,

                  (6) any industrial revenue bond Indebtedness,

                  (7) any Real Property Indebtedness,

                  (8) any Leasing Indebtedness not to exceed a total of 10% of
         Consolidated Net Tangible Assets, and

                  (9) all other Secured Indebtedness (in addition to that
         otherwise permitted in paragraphs (1) to (8) above) plus additional
         Leasing Indebtedness (in addition to that in (8) above) not to exceed a
         total of 20% of Consolidated Net Tangible Assets.

                  SECTION 4.07. LIMITATION ON INVESTMENTS IN UNRESTRICTED
SUBSIDIARIES. The Company will not, and will not permit any Restricted
Subsidiary to, make any investment in, or transfer any assets to, an
Unrestricted Subsidiary if immediately thereafter the Company would be in breach
or in default in the performance of any covenant or warranty of the Company
contained in this Indenture.

                  SECTION 4.08. LIMITATION ON PERMITTING RESTRICTED SUBSIDIARIES
TO BECOME UNRESTRICTED SUBSIDIARIES AND UNRESTRICTED SUBSIDIARIES TO BECOME
RESTRICTED SUBSIDIARIES.

                  (1) The Company will not permit any Restricted Subsidiary to
         become an Unrestricted Subsidiary unless immediately thereafter such
         Subsidiary will not own, directly or indirectly, any capital stock of
         any Restricted Subsidiary.

                  (2) The Company will not permit any Unrestricted Subsidiary to
         become a Restricted Subsidiary unless immediately thereafter:

                           (A) no shares of the capital stock of such Subsidiary
                  shall be owned or held by any Unrestricted Subsidiary; and

                           (B) the Company would not be prohibited from issuing
                  any additional Secured Indebtedness by the provisions of
                  Section 4.06.

                  SECTION 4.09. WAIVER OF CERTAIN COVENANTS. The Company may
omit in any particular instance to comply with any covenant or condition set
forth in Section 4.06 through 4.08 if, before, or after the time for such
compliance, the Holders of at least a majority in Principal amount of all the
Debt Securities of each Series affected

                                       23
<PAGE>

thereby at the time outstanding shall, by notice to the Trustee, either waive
such compliance in such instance or generally waive compliance with such
covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such covenant or condition shall remain in full
force and effect.

                                   ARTICLE V

                              SUCCESSOR CORPORATION

                  SECTION 5.01. WHEN COMPANY MAY MERGE, ETC. The Company shall
not consolidate with or merge into, or transfer all or substantially all of its
assets to, any Person unless:

                  (1) either the Company shall be the resulting or surviving
         entity, or if another Person is the resulting or surviving entity, such
         Person assumes by supplemental indenture all the obligations of the
         Company under the Debt Securities and this Indenture;

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

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

                  If, upon any such consolidation, merger, or transfer, any
assets of the Company or any Restricted Subsidiary, or any shares of stock or
Indebtedness of any Restricted Subsidiary, would thereupon become subject to any
lien, security interest or other charge or encumbrance, or any other type of
preferential arrangement (any such lien, security interest, charge, encumbrance
or other type of preferential arrangement being herein called a "Mortgage"),
unless, after giving effect to such consolidation, merger or transfer, such
corporation could issue at least $1 of Secured Indebtedness pursuant to Section
4.06(9), the Company prior to such consolidation, merger or transfer, will
secure the outstanding Debt Securities of each Series hereunder, equally and
ratably with (or prior to) the indebtedness secured by such Mortgage.

                  SECTION 5.02. SUCCESSOR CORPORATION SUBSTITUTED. Upon any
consolidation or merger, or any transfer of all or substantially all of the
assets of the Company in accordance with Section 5.01, the successor corporation
formed by such consolidation or into which the Company is merged or to which
such transfer is made shall succeed to, and be substituted for, and may exercise
every right and power of, the

                                       24
<PAGE>

Company under this Indenture and the Debt Securities with the same effect as if
such successor corporation had been named as the Company herein and in the Debt
Securities.

                                   ARTICLE VI

                              DEFAULT AND REMEDIES

                  SECTION 6.01. EVENTS OF DEFAULT. An "Event of Default" occurs
(unless the occurrence of such an event is specifically deleted or modified with
respect to Debt Securities of a particular Series in or pursuant to the
supplemental indenture or Board Resolution establishing such Series or in the
form of Debt Security for such Series) with respect to the Debt Securities of
any Series if:

                  (1) the Company defaults in the payment of interest on any
         Debt Security of that Series when the same becomes due and payable and
         the default continues for a period of 30 days;

                  (2) the Company defaults in the payment of the Principal of
         any Debt Security of that Series when the same becomes due and payable
         at maturity, upon redemption or otherwise;

                  (3) the Company fails to comply with any of its other
         agreements or conditions in the Debt Securities of that Series, this
         Indenture or any supplemental indenture under which the Debt Securities
         may have been issued and the default continues for the period and after
         the notice specified below;

                  (4) the Company pursuant to or within the meaning of any
         Bankruptcy Law:

                           (A) commences a voluntary case,

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

                           (C) consents to the appointment of a Custodian of it
                  or for all or substantially all of its property, or

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

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

                           (A) is for relief against the Company in an
                  involuntary case,

                           (B) appoints a Custodian for the Company or for all
                  or substantially all of its property, or

                           (C) orders the liquidation of the Company,

                                       25
<PAGE>

         and the order or decree remains unstayed and in effect for 30 days.

                  A Default under Section 6.01(3) is not an Event of Default
until the Trustee or the Holders of at least 25% in aggregate Principal amount
of all of the Debt Securities of that Series then outstanding notify the Company
of the Default, and the Company does not cure the Default within 60 days after
receipt of the notice. The notice must specify the Default, demand that it be
remedied and state that the notice is a "Notice of Default".

                  SECTION 6.02. ACCELERATION. If an Event of Default occurs with
respect to the Debt Securities of any Series and is continuing, the Trustee by
notice to the Company, or the Holders of at least 25% in aggregate Principal
amount of all of the Debt Securities of that Series then outstanding by notice
to the Company and the Trustee, may declare the Principal (or, if the Debt
Securities of that Series are Original Issue Discount Debt Securities, such
portion of the Principal amount as may be specified in the terms of that Series)
and accrued interest on all the Debt Securities of that Series to be due and
payable. Upon such declaration, such Principal (or specified amount) and
interest on the Debt Securities of that Series shall be due and payable
immediately. The Holders of a majority in aggregate Principal amount of all of
the Debt Securities of that Series 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 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 the acceleration.

                  SECTION 6.03. OTHER REMEDIES. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy by proceeding at
law or in equity to collect the payment of Principal or interest on the Debt
Securities of the Series that is in default or to enforce the performance of any
provision of such Debt Securities or this Indenture.

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

                  SECTION 6.04. WAIVER OF PAST DEFAULTS. The Holders of a
majority in aggregate Principal amount of any Series of Debt Securities then
outstanding by notice to the Trustee may waive on behalf of Holders of all Debt
Securities of that Series, an existing Default or Event of Default with respect
to that Series and its consequences except a continuing Default or Event of
Default in the payment of the Principal of or interest on any Debt Security.

                  SECTION 6.05. CONTROL BY MAJORITY. The Holders of a majority
in aggregate Principal amount of any Series of Debt Securities then outstanding
may direct the time, method and place of conducting any proceeding for any
remedy available to the

                                       26
<PAGE>

Trustee or exercising any trust or power conferred on it with respect to such
Series of Debt Securities. However, the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, is unduly prejudicial to
the rights of other Debt Securityholders, or would involve the Trustee in
personal liability.

                  SECTION 6.06. LIMITATION ON SUITS. A Debt Securityholder may
pursue a remedy with respect to this Indenture or the Debt Securities only if:

                  (1) the Holder gives to the Trustee written notice of a
         continuing Event of Default;

                  (2) the Holders of at least 25% in aggregate Principal amount
         of the Series of Debt Securities affected thereby make a written
         request to the Trustee to pursue the remedy;

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

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

                  (5) during such 60 day period, the Holders of a majority in
         Principal amount of the Series of Debt Securities affected thereby do
         not give the Trustee a direction inconsistent with the request.

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

                  SECTION 6.07. RIGHTS OF HOLDERS TO RECEIVE PAYMENT.
Notwithstanding any other provision of this Indenture, the right of any Holder
to receive payment of Principal and interest on a Debt Security, on or after the
respective due dates expressed in the Debt Security, 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 the Holder.

                  Nothing in this Indenture limits or defers the right or
ability of Holders to petition for commencement of a case under applicable
Bankruptcy Law to the extent consistent with such Bankruptcy Law.

                  SECTION 6.08. COLLECTION SUITS BY TRUSTEE. If an Event of
Default specified in Section 6.01(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 of Principal and interest remaining
unpaid and reasonable expenses of collection and any other amounts due under
Section 7.07 hereof.

                  SECTION 6.09. TRUSTEE MAY FILE PROOFS OF CLAIM. The Trustee
may file such proofs of claim and other papers or documents and take any other
action as may be necessary or advisable in order to have the claims of the
Trustee and the Debt

                                       27
<PAGE>

Securityholders allowed in any judicial proceedings relative to the Company, its
creditors or its property.

                  SECTION 6.10. PRIORITIES. Any money collected by the Trustee
pursuant to this Article VI with respect to any Series, and any other money or
property distributable in respect of the Company's obligations under this
Indenture after an Event of Default shall be applied in the following order:

                  First: to the Trustee (including any predecessor Trustee) for
         amounts due under Section 7.07 with respect to such Series;

                  Second: to Debt Securityholders for amounts due and unpaid on
         the Debt Securities of such Series for Principal and interest, ratably,
         without preference or priority of any kind, according to the amounts
         due and payable on the Debt Securities of such Series for Principal and
         interest, respectively; and

                  Third: to the Company.

                  The Trustee may fix a record date and payment date for any
such payment to Registered Debt Securityholders.

                  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, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by
Holders of more than 10% in aggregate Principal amount of the Debt Securities of
any Series then outstanding.

                                   ARTICLE VII

                                     TRUSTEE

                  SECTION 7.01. DUTIES OF TRUSTEE. (1) If an Event of Default
has occurred and is continuing with respect to any Series of Debt Securities,
the Trustee shall exercise its rights and powers vested in it by this Indenture
and use the same degree of care and skill in their exercise as to that Series as
a prudent Person would exercise or use under circumstances in the conduct of its
own affairs.

                  (2) Except during the continuance of an Event of Default with
         respect to any Series:

                           (A) the Trustee need perform only those duties with
                  respect to such Series that are specifically set forth in this
                  Indenture and no others.

                                       28
<PAGE>

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

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

                           (A) This paragraph does not limit the effect of
                  paragraphs (2) and (5) of this Section.

                           (B) 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.

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

                  (4) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
paragraphs (1), (2), (3) and (5) of this Section.

                  (5) The Trustee may refuse to perform any duty or exercise any
right or power which would require it to expend its own funds or risk any
liability if it shall reasonably believe that repayment of such funds or
adequate indemnity against such risk is not reasonably assured to it.

                  (6) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law.

                  SECTION 7.02. RIGHTS OF TRUSTEE. (1) The Trustee may rely on
any document believed by it to be genuine and have been signed or presented by
the proper Person. The Trustee need not investigate any fact or matter stated in
the document.

                  (2) Before the Trustee acts or refrains from acting, it may
consult with counsel or 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. The Trustee may also consult with counsel on any matter relating to
this Indenture or the Debt Securities and the Trustee shall not be liable for
any action it takes or omits to take in good faith in reliance on the advice of
counsel.

                                       29
<PAGE>

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

                  (4) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within the
rights or powers conferred upon it by this Indenture.

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

                  (6) The Trustee shall not be deemed to have notice of any
Default or Event of Default with respect to the Debt Securities of any Series
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is such a Default or Event of Default
is received at the Corporate Trust Office of the Trustee from the Company, any
other obligor on such Debt Securities or any Holder. Any such notice shall
reference this Indenture and the Debt Securities.

                  SECTION 7.03. INDIVIDUAL RIGHTS OF TRUSTEE. The Trustee in its
individual or any other capacity may become the owner or pledgee of Debt
Securities and may otherwise deal with the Company or an Affiliate with the same
rights it would have if it were not Trustee. Any Agent may do the same with like
rights. However, the Trustee is subject to Sections 7.10 and 7.11.

                  SECTION 7.04. TRUSTEE'S DISCLAIMER. The Trustee makes no
representation as to and shall have no responsibility for the validity or
adequacy of this Indenture or the Debt Securities. It shall not be accountable
for the Company's use of the proceeds from the Debt Securities or for monies
paid over to the Company pursuant to the Indenture, and it shall not be
responsible for any statement in the Debt Securities other than its
authentication.

                  SECTION 7.05. NOTICE OF DEFAULTS. If a Default or Event of
Default occurs with respect to any Series and is continuing and if it is known
to the Trustee, the Trustee shall give to each Debt Securityholder of such
Series notice of the Default or Event of Default in the manner provided for in
Section 10.02 within 90 days after it occurs. Except in the case of a Default or
Event of Default in payment on any Debt Security, the Trustee may withhold the
notice if and so long as its corporate trust committee or a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Debt Securityholders.

                  SECTION 7.06. REPORTS BY TRUSTEE TO HOLDERS. If required
pursuant to TIA ss. 313(a), within 60 days after the yearly anniversary of the
date of this instrument as originally executed, the Trustee shall mail to each
Debt Securityholder a brief report dated as of such date that complies with TIA
ss. 313(a). The Trustee also shall comply with TIA ss. 313(b)(2).

                                       30
<PAGE>

                  A copy of each report at the time of its mailing to Debt
Securityholders shall be filed with the SEC and each stock exchange on which the
Debt Securities are listed. The Company agrees to notify the Trustee whenever
the Debt Securities become listed on any stock exchange.

                  SECTION 7.07. COMPENSATION AND INDEMNITY. The Company shall
pay to the Trustee from time to time reasonable compensation for its services,
including for any Agency capacity in which it acts. The Trustee's compensation
shall not be limited by any law on compensation of a trustee of an express
trust. The Company shall reimburse the Trustee upon request for all reasonable
out-of-pocket expenses incurred by it in connection with the performance of its
obligations under this Indenture or any Debt Securities. Such expenses shall
include the reasonable compensation and expenses of the Trustee's agents and
counsel.

                  The Company shall indemnify the Trustee (and any predecessor
Trustee) against any loss, liability or expense (including reasonable fees and
expenses of counsel) incurred by it, including for any Agency capacity in which
it acts, in connection with acceptance and administration of this trust and its
duties hereunder including the reasonable costs and expenses (including
reasonable fees and expenses of counsel) of defending itself against or
investigating any claim (whether asserted by the Company, any Holder or other
Person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, or in connection with enforcing the provisions
of this Section 7.07. The Trustee shall notify the Company promptly of any claim
which it may seek indemnity; PROVIDED, HOWEVER, that any failure of the Trustee
to so notify the Company shall not relieve the Company of any of its obligations
hereunder.

                  The Company need not reimburse any expense or indemnify
against any loss or liability incurred by the Trustee through negligence,
willful misconduct or bad faith.

                  To secure the Company's payment obligations in this Section,
the Trustee shall have a lien prior to the Debt Securities on all money or
property held or collected by the Trustee, except that held in trust to pay
Principal and interest on particular Debt Securities.

                  Without prejudice to its rights hereunder, when the Trustee
incurs expenses or renders services after an Event of Default specified in
Section 6.01(4) or (5) occurs, the expenses (including the reasonable fees and
expenses of its counsel) and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.

                  The obligations of the Company and the lien provided for in
this Section 7.07 shall survive the satisfaction and discharge of this
Indenture, the resignation or removal of the Trustee and termination of this
Indenture for any reason.

                                       31
<PAGE>

                  SECTION 7.08. REPLACEMENT OF TRUSTEE. A resignation or removal
of the Trustee and appointment of a successor Trustee shall become effective
only upon the successor Trustee's acceptance of appointment as provided in this
Section.

                  The Trustee may resign with respect to the Debt Securities of
one or more Series in writing at any time upon 30 days' prior written notice to
the Company. The Holders of a majority in Principal amount of the Debt
Securities of any Series may remove the Trustee with respect to that Series by
so notifying the Trustee and the Company. The Company may remove the Trustee
with respect to Debt Securities of one or more Series if:

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

                  (2) the Trustee is adjudged a bankrupt or an insolvent, or an
         order of relief is entered with respect to the Trustee under any
         Bankruptcy Law;

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

                  (4) the Trustee becomes incapable of acting.

                  With respect to any Series, if the Trustee resigns or is
removed or if a vacancy exists in the office of Trustee for any reason, the
Company shall promptly appoint a successor Trustee. There shall at all times be
a Trustee with respect to each Series.

                  If a successor Trustee is not appointed within 30 days after
the retiring Trustee resigns or if a successor Trustee does not take office
within 45 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in aggregate Principal amount
of the Debt Securities of the affected Series may petition any court of
competent jurisdiction for the appointment of a successor Trustee.

                  If the Trustee fails to comply with Section 7.10, after
written request by any Debt Securityholder of a Series affected thereby who has
been a Debt Securityholder of that Series for at least six (6) months, such Debt
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have, and be bound by, all the rights, powers, duties
and agreements of the Trustee under this Indenture with respect to such Series.
A successor Trustee shall mail notice of its succession to each Registered Debt
Securityholder of a Series as to which it acts as Trustee. The retiring Trustee
shall promptly transfer all property held by it as Trustee with respect to that
or those Series as to which the retiring Trustee is retiring to the successor
Trustee, subject to the lien provided for in Section 7.07.

                                       32
<PAGE>

                  SECTION 7.09. SUCCESSOR TRUSTEE BY MERGER, ETC. If the Trustee
consolidates with, mergers or converts into, or transfers all or substantially
all of its corporate trust business assets to, another Person, the successor
Person without any further act shall be the successor Trustee. As soon as
practicable, the successor Trustee shall mail a notice of its succession to the
Company. Any such successor shall nevertheless be eligible and qualified under
the provisions of Section 7.10.

                  SECTION 7.10. ELIGIBILITY; DISQUALIFICATION. This Indenture
shall always have a Trustee who satisfies the requirements of TIA ss. 310(a)(1).
The Trustee shall always have a combined capital and surplus of at least
$50,000,000, as set forth in its most recent published annual report of
condition. The Trustee is subject to TIA ss. 310(b), including the optional
provision permitted by the second sentence of TIA ss. 310(b)(9) provided,
however, that (a) there shall be excluded from the operation of TIA ss.
310(b)(1) any indenture or indentures under which other securities of the
Company ranking equally in right of payment with the Debt Securities of any
Series, or certificates of interest or participation in other such securities
are outstanding if the requirements for such exclusion set forth in TIA ss.
310(b)(1) are met, and (b) the Trustee, in its capacity as trustee in respect of
the Debt Securities of any Series, shall not be deemed to have a conflicting
interest arising from its capacity as trustee in respect of the Debt Securities
of any other Series.

                  Nothing herein shall prevent the Trustee from filing with the
Commission the application referred to in the second to last paragraph of TIA
ss. 310(b).

                  SECTION 7.11. PREFERENTIAL COLLECTION OF CLAIMS AGAINST
COMPANY. The Trustee is subject to TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated.

                                  ARTICLE VIII

                             DISCHARGE OF INDENTURE

                  SECTION 8.01. TERMINATION OF COMPANY'S OBLIGATIONS. By
irrevocably depositing in trust with the Trustee money or U.S. Government
Obligations sufficient to pay Principal and interest when due on the Debt
Securities of one or more Series until maturity, the Company may, on the 91st
day after such deposit, terminate all its obligations under this Indenture with
respect to any Series of Debt Securities which does not provide for the payment
of any Additional Amounts; PROVIDED, HOWEVER, that no Event of Default under
Sections 6.01.(4) and (5) or event with which notice or lapse of time or both
would constitute such an Event of Default shall have occurred and be continuing
on such date. Notwithstanding the termination of any obligations of the Company
with respect to Debt Securities of one or more Series in accordance with this
Section 8.01, the Company's obligations in Sections 2.05, 2.06, 2.07, 2.08,
2.09, 4.01, 7.07, 7.08, 8.03 and 8.04, and such other obligations of the Company
(whether under this Indenture or in or pursuant to the supplemental indenture or
Board Resolution establishing the terms of the Debt Securities of such Series or
in the form of Debt security

                                       33
<PAGE>

for such Series) as may be expressly stated, in the supplemental indenture or
Board Resolution establishing the terms of the Debt Securities of such Series or
in the form of Debt Security for such Series, to survive compliance by the
Company with this Section 8.01, with respect to such Debt Securities shall
survive until such Debt Securities are no longer outstanding. Thereafter the
Company's obligations in Sections 7.07, 8.03 and 8.04 with respect to such Debt
Securities shall survive. In order to have money available on a payment date to
pay Principal or interest upon such Debt Securities, the U.S. Government
Obligations shall be payable as to Principal or interest on or before such
payment date in such amounts as will provide the necessary money.

                  It shall be a condition to the deposit of cash and/or U.S.
Government Obligations and the termination of the Company's obligations with
respect to Debt Securities of one or more Series under this Section that the
Company deliver to the Trustee (1) an opinion of nationally recognized
independent tax counsel to the effect that: (A) Holders of such Debt Securities
will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit and termination and (B) such Holders (and future Holders
of such Debt Securities) will be subject to tax in the same amount, manner and
timing as if such deposit and termination had not occurred; and (2) an Officers'
Certificate to the effect that under the laws in effect on the date such money
and/or U.S. Government Obligations are deposited with the Trustee, the amount
thereof will be sufficient, after payment of all Federal, state and local taxes
in respect thereof payable by the Trustee, to pay Principal and interest when
due on such Debt Securities.

                  After a deposit as provided herein, the Trustee shall, upon
request, acknowledge in writing the discharge of the Company's obligations with
respect to any Series of Debt Securities under this Indenture except for those
surviving obligations specified above.

                  SECTION 8.02. APPLICATION OF TRUST MONEY. The Trustee or
Paying Agent shall hold in trust, for the benefit of the Debt Securityholders,
all money and U.S. Government Obligations deposited with it (or into which such
money and U.S. Government Obligations are reinvested) pursuant to Section 8.01.
The Trustee or Paying Agent shall apply the deposited money and money from U.S.
Government Obligations in accordance with this Indenture to the timely payment
of Principal and interest on the Debt Securities of the Series with respect to
which the deposit was made. Any remaining amounts held in trust after payment of
Principal and interest on the Debt Securities shall be returned to the Company,
subject to the Trustee's rights to receive any payments under Section 7.07.

                  SECTION 8.03. REINSTATEMENT. If the Trustee or Paying Agent is
unable to apply any money or U.S. Government Obligations in accordance with
Section 8.01 by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Company's obligations under this Indenture and the Debt Securities shall be
revived and reinstated as though no deposit had occurred pursuant to this
Article 8, until such time as the Trustee or Paying Agent is permitted to apply
all such money or U.S. Government Obligations in accordance with Section 8.01;
provided, however, that if the Company makes any

                                       34
<PAGE>

payment of Principal of or interest on any Debt Security following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Debt Securities to receive such payment from the money or
U.S. Government Obligations held by the Trustee or Paying Agent after payment in
full to the Holders.

                  SECTION 8.04. REPAYMENT TO COMPANY. The Trustee and the Paying
Agent shall promptly pay to the Company upon request any excess money or U.S.
Government Obligations held by them at any time.

                  Subject to applicable law governing abandoned property, the
Trustee and the Paying Agent shall pay to the Company any money held by them for
the payment of Principal or interest that remains unclaimed for two years unless
an abandoned property law designates otherwise. After that, Debt Securityholders
entitled to the money must look to the Company or such other Person for payment
as general creditors.

                  SECTION 8.05. INDEMNITY FOR GOVERNMENT OBLIGATIONS. The
Company shall pay and shall indemnify the Trustee and each Debt Securityholder
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
obligations.

                                   ARTICLE IX

                       AMENDMENTS; SUPPLEMENTS AND WAIVERS

                  SECTION 9.01. WITHOUT CONSENT OF HOLDERS. Notwithstanding
Section 9.02, the Company and the Trustee may enter into supplemental indentures
to amend this Indenture or the Debt Securities without consent of any Debt
Securityholder:

                  (1) to cure any ambiguity, defect or inconsistency;

                  (2) to comply with Article 5;

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

                  (4) to make any change that does not adversely affect in any
         material respect the rights of any Debt Securityholder under this
         Indenture; or

                  (5) to provide for the issuance of and establish the form and
         terms and conditions of Debt Securities of any Series or to add any
         additional provisions to the Indenture to facilitate the issuance of
         Debt Securities in currencies other than U.S. Dollars.

                  SECTION 9.02. WITH CONSENT OF HOLDERS. Subject to Section
9.03, the Company and the Trustee may enter into supplemental indentures to
amend this Indenture or the Debt Securities with the written consent of the
Holders of at least a

                                       35
<PAGE>

majority in aggregate Principal amount of the Debt Securities then outstanding
affected thereby. The Holders of a majority in Principal amount of the Debt
Securities of any Series by notice to the Trustee may waive, in respect of such
Series, compliance by the Company with any provision of this Indenture or the
Debt Securities except as specified in Section 9.03(4).

                  SECTION 9.03. LIMITATIONS. Without the consent of each Debt
Securityholder affected, an amendment or waiver may not:

                  (1) reduce the amount of Debt Securities whose Holders must
         consent to an amendment or waiver;

                  (2) change the rate of or change the time for payment of
         interest on any Debt Security or change the method of calculation if
         the change would reduce the rate of interest thereon;

                  (3) change the Principal of or change the fixed maturity of
         any Debt Security, or change any obligation of the Company to pay
         Additional Amounts pursuant to Section 4.05, or reduce the amount of
         Principal of an Original Issue Discount Debt Security that would be due
         and payable upon a declaration of acceleration of the maturity thereof
         pursuant to Section 6.02;

                  (4) waive a Default in the payment of the Principal or
         interest on any Debt Security;

                  (5) make any Debt Security or any interest thereon payable at
         any Place of Payment or in currency or currencies other than as stated
         in the Debt Security; or

                  (6) make any change in Section 6.04, 6.07 or 9.03.

                  After an amendment or waiver under this Article 9 becomes
effective, the Company shall give a notice in the manner provided in Section
10.02 to the Debt Securityholders briefly describing the amendment or waiver.

                  SECTION 9.04. COMPLIANCE WITH TRUST INDENTURE ACT. Every
amendment to this Indenture or the Debt Securities shall be set forth in a
supplemental indenture that complies with the TIA as then in effect. The Trustee
is entitled to, and the Company shall provide, an Opinion of Counsel and an
Officers' Certificate stating that the Trustee's execution of any amendment or
supplemental indenture is permitted under this Article 9.

                  SECTION 9.05. REVOCATION AND EFFECT OF CONSENTS. Until an
amendment or waiver becomes effective, a consent to it by a Holder of a Debt
Security is a continuing consent by the Holder and every subsequent Holder of a
Debt Security or portion of a Debt Security that evidences the same debt as the
consenting Holder's Debt Security, even if notation of the consent is not made
on any Debt Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Debt Security or

                                       36
<PAGE>

portion of his Debt Security if the Trustee receives the notice of revocation
before the date the amendment or waiver becomes effective.

                  An amendment or waiver becomes effective in accordance with
its terms and thereafter binds every Debt Securityholder.

                  SECTION 9.06. NOTATION ON OR EXCHANGE OF DEBT SECURITIES. The
Trustee may place an appropriate notation about an amendment or waiver on any
Debt Security thereafter authenticated. The Company in exchange for Debt
Securities may issue and the Trustee shall authenticate new Debt Securities that
reflect the amendment or waiver.

                  SECTION 9.07. TRUSTEE PROTECTED. The Trustee need not sign any
supplemental indenture that adversely affects its rights.

                                    ARTICLE X

                                  MISCELLANEOUS

                  SECTION 10.01. TRUST INDENTURE ACT CONTROLS. If any provision
of this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the required provision
shall control.

                  SECTION 10.02. NOTICES. Any notice or communication by the
Company or the Trustee to the other is duly given if in writing and delivered in
Person or mailed by first-class mail:

                  If to the Company:

                           Ryder System, Inc.
                           3600 N.W. 82nd Avenue
                           Miami, Florida 33166
                           Attention:  Office of the Treasurer

                  If to the Trustee:

                           J.P. Morgan Trust Company, National Association
                           3800 Colonnade Parkway, Suite 490
                           Birmingham, Alabama  35243
                           Attention:  Corporate Trust Administration

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

                  Any notice or communication to a Registered Debt
Securityholder shall be mailed by first-class mail to the address shown on the
register kept by the Registrar. Failure to mail a notice or communication to a
Registered Debt Securityholder or any

                                       37
<PAGE>

defect in it shall not affect its sufficiency with respect to other Registered
Debt Security-holders.

                  If a notice or communication is mailed in the manner provided
above within the time prescribed, it is duly given, whether or not the addressee
receives it.

                  If the Company mails a notice or communication to Registered
Debt Securityholders, it shall mail a copy to the Trustee and each Agent at the
same time.

                  SECTION 10.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
Debt Securityholders may communicate pursuant to TIA ss. 312(b) with other Debt
Securityholders with respect to their rights under this Indenture or the Debt
Securities. The Company, the Trustee, the Registrar and anyone else shall have
the protection of TIA ss. 312(c).

                  SECTION 10.04. CERTIFICATE AND OPINION AS TO CONDITIONS
PRECEDENT. Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee:

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

                  (2) an Opinion of Counsel stating that, in the opinion of such
         counsel, all such conditions precedent have been complied with.

                  SECTION 10.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

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

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

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

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

                  SECTION 10.06. RULES BY TRUSTEE AND AGENTS. The Trustee may
make reasonable rules for action by or a meeting of Debt Securityholders. The
Paying Agent or Registrar may make reasonable rules and set reasonable
requirements for its functions.

                                       38
<PAGE>

                  SECTION 10.07. LEGAL HOLIDAYS. If a payment date is not a
Business Day at a Place of Payment, payment may be made at that place on the
next succeeding day that is a Business Day, and no interest shall accrue for the
intervening period. If a regular record date is not a Business Day at a Place of
Payment, then the record date shall be the next preceding day that is a Business
Day.

                  SECTION 10.08. GOVERNING LAW. The laws of the State of New
York (including, without limitation, Section 5-1401 of the New York General
Obligations Law or any successor to such statute) shall govern this Indenture
and the Debt Securities.

                  SECTION 10.09. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

                  SECTION 10.10. NO RECOURSE AGAINST OTHERS. All liability
described in the Debt Securities of any director, officer, employee or
stockholder, as such, of the Company is waived and released.

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

                  SECTION 10.12. SEVERABILITY. In case any one or more of the
provisions in this Indenture or in the Debt Securities shall be held invalid,
illegal or unenforceable, in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions shall not in any way be affected or impaired thereby, it
being intended that all of the provisions hereof shall be enforceable to the
full extent permitted by law.

                                       SIGNATURES

                                       RYDER SYSTEM, INC.

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

                                       J.P. MORGAN TRUST COMPANY,
                                       NATIONAL ASSOCIATION,
                                       as Trustee

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

                                       39
<PAGE>
STATE OF NEW YORK       )
                        ) ss.:
COUNTY OF NEW YORK      )

                  Before me personally appeared [Name], to me known and known to
me to be the individuals described in and who executed the foregoing instrument
as the [Title] of the above named RYDER SYSTEM, INC., a Florida corporation, and
acknowledged to and before me that he executed such instrument as such [Title]
of said corporation, and that he signed his name thereto by authority of the
Board of Directors of said corporation.

                  WITNESS my hand and official seal this    day of       , 2003.

                                                 ------------------------------
                                                          Notary Public

My Commission Expires:

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

                                       40
<PAGE>
STATE OF NEW YORK       )
                        ) ss.:
COUNTY OF NEW YORK      )

                  Before me personally appeared [Name], to me known and known to
me to be the individual described in and who executed the foregoing instrument
as the [Title] of J.P. MORGAN CHASE BANK, NATIONAL ASSOCIATION, a national
banking association organized and existing under the laws of the United States
of America, and acknowledged to and before me that he executed such instrument
as such [Title] of said association and that he signed his name thereto by
authority of the Board of Directors of said association.

                  WITNESS my hand and official seal this    day of       , 2003.

                                                  ------------------------------
                                                             Notary Public

My Commission Expires:

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

                                       41

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