Document:

Ex-10.17 Agreement For Purchase & Sale

 

Exhibit
10.17

AGREEMENT

For

PURCHASE AND SALE

of

CUSTOMER ACCESS LINES

Dated as of February 10,2006

Between

TRINSIC COMMUNICATIONS, INC.

And

ACCESS INTERGRATED NETWORKS, INC.

 

 

TABLE
OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	 
	ARTICLE 1	 	 	PURCHASE AND SALE OF ASSETS	 	 	1	 
	 

	 	 	1.1.	 	 	Purchase and Sale of Transferred Assets
	 	 	1	 
	 

	 	 	1.2.	 	 	Assumption of Obligations by Buyer
	 	 	1	 
	 

	 	 	1.3.	 	 	Purchase Price
	 	 	2	 
	 

	 	 	1.4.	 	 	Prorations
	 	 	3	 
	 

	 	 	1.5.	 	 	Allocation of the Purchase Price for Tax Purposes
	 	 	4	 
	 

	 	 	1.6.	 	 	Transfer Taxes
	 	 	4	 
	ARTICLE 2	 	 	ACCESS	 	 	4	 
	 

	 	 	2.1.	 	 	Access to Books and Records
	 	 	4	 
	 

	 	 	2.2.	 	 	Access to Customer Data
	 	 	4	 
	ARTICLE 3	 	 	CLOSING	 	 	5	 
	 

	 	 	3.1.	 	 	Closing
	 	 	5	 
	 

	 	 	3.2.	 	 	Deliveries by Seller to Buyer
	 	 	5	 
	 

	 	 	3.3.	 	 	Deliveries by Buyer to Seller
	 	 	5	 
	 

	 	 	3.4.	 	 	Further Assurances
	 	 	6	 
	 

	 	 	3.5.	 	 	Partial Closing
	 	 	6	 
	ARTICLE 4	 	 	CONDITIONS	 	 	6	 
	 

	 	 	4.1.	 	 	Conditions to Buyer’s Obligations
	 	 	6	 
	 

	 	 	4.2.	 	 	Conditions to Seller’s Obligations
	 	 	7	 
	ARTICLE 5	 	 	REPRESENTATIONS AND WARRANTIES	 	 	8	 
	 

	 	 	5.1.	 	 	Buyer’s Representations and Warranties
	 	 	8	 
	 

	 	 	5.2.	 	 	Seller’s Representations and Warranties
	 	 	9	 
	ARTICLE 6	 	 	COVENANTS	 	 	10	 
	 

	 	 	6.1.	 	 	Covenants of Seller
	 	 	10	 
	 

	 	 	6.2.	 	 	Mutual Covenants
	 	 	11	 
	ARTICLE 7	 	 	TERMINATION	 	 	12	 
	 

	 	 	7.1.	 	 	Termination By Buyer
	 	 	12	 
	 

	 	 	7.2.	 	 	Termination By Seller
	 	 	12	 
	 

	 	 	7.3.	 	 	Termination By Buyer or Seller
	 	 	12	 
	 

	 	 	7.4.	 	 	Effect of Termination
	 	 	12	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	ARTICLE 8	 	ADDITIONAL MATTERS	 	13
	 
	 	8.1.	 	Pre-Closing	 	13
	 
	 	8.2.	 	New Customer Service Orders and Service Change Orders	 	14
	 
	 	8.3.	 	Access to Books and Records	 	14
	 
	 	8.4.	 	Bulk Sales Laws	 	14
	ARTICLE 9	 	INDEMNIFICATION	 	15
	 
	 	9.1.	 	Survival	 	15
	 
	 	9.2.	 	Indemnification and Payment of Damages by Seller	 	15
	 
	 	9.3.	 	Indemnification and Payment of Damages by Buyer	 	15
	 
	 	9.4.	 	Procedure for  Indemnification — Third arty Claims	 	15
	 
	 	9.5.	 	Procedure for Indemnification — Other Claim	 	16
	 
	 	9.6.	 	Limitations on Seller’s Indemnification of Purchaser	 	16
	 
	 	9.7.	 	Limitations on Buyer’s Indemnification of Seller	 	16
	ARTICLE 10	 	WAIVER OF TRIAL BY JURY	 	17
	 
	 	10.1.	 	Waiver of Trial by Jury	 	17
	ARTICLE 11	 	CERTAIN DEFINITIONS	 	17
	 
	 	11.1.	 	Defined Terms	 	17
	 
	 	11.2.	 	Interpretation	 	21
	ARTICLE 12	 	GENERAL	 	21
	 
	 	12.1.	 	Time of the Essence	 	21
	 
	 	12.2.	 	Notices	 	21
	 
	 	12.3.	 	Waivers	 	22
	 
	 	12.4.	 	Payment of Expenses	 	22
	 
	 	12.5.	 	Headings	 	22
	 
	 	12.6.	 	Counterparts; Facsimile	 	23
	 
	 	12.7.	 	Successors and Assigns	 	23
	 
	 	12.8.	 	Assignment	 	23
	 
	 	12.9.	 	Additional Instruments and Assistance	 	23
	 
	 	12.10.	 	Governing Law	 	23
	 
	 	12.11.	 	Severability	 	23

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 
	 	12.12.	 	Amendments	 	23
	 
	 	12.13.	 	No Construction Against the Drafting Party	 	23
	 
	 	12.14.	 	Entire Agreement; No Third Party Beneficiaries	 	23

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AGREEMENT FOR PURCHASE AND SALE OF CUSTOMER ACCESS LINES

     This Agreement for Purchase and Sale of Customer Access Lines (this “Agreement”) is made and
entered into this 10th day of February, 2006, between Trinsic Communications, Inc., a Delaware
Corporation (“Seller”) and Access Integrated Networks, Inc., a Georgia Corporation (“Buyer”).

RECITALS

     A. Seller is a competitive local exchange carrier, one of whose lines of business is to
provide wireline telecommunications services to mass market residential and small business
customers (the “Customers”) located in the BellSouth territory (the “Territory”). Seller has
certain contractual rights and obligations with respect to the Customers receiving such services.

     B. Buyer is also a competitive local exchange carrier providing telecommunications services to
mass market residential and small business customers located in the Territory, and Buyer is
desirous of purchasing certain of Seller’s Customer Access Lines.

     C. Seller desires to sell, convey, assign, transfer and deliver to Buyer, and Buyer desires to
buy, assume and accept from Seller, all of Seller’s rights and obligations to provide and operate
wireline telecommunication services to the Customers under the Customer Contracts all as set forth
hereinafter.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Seller and Buyer agree as follows:

ARTICLE 1

PURCHASE AND SALE OF ASSETS

     1.1. Purchase and Sale of Transferred Assets. Upon the terms and subject to the
conditions hereinafter set forth, at the Closing described in Article 3, Seller agrees to sell,
convey, transfer and assign to Buyer the “Transferred Assets,” and Buyer agrees to purchase and
receive such Transferred Assets from Seller and pay Seller the Purchase Price (as defined in
Section 1.3 below). Seller shall retain the Excluded Assets, including but not limited to all other
lines of business and the service to customers of such lines of business.

     1.2. Assumption of Obligations by Buyer. Buyer covenants and agrees that, on the
Closing Date, it shall execute and deliver to Seller an Assumption Agreement in substantially the
form attached as Exhibit A (the “Assumption Agreement”) pursuant to which Buyer will assume
and agree to perform and discharge the Assumed Liabilities as and when due. Except for the
Assumed Liabilities, the parties agree that Buyer will not assume any liability or obligation of
Seller, including any liability relating to the Excluded Assets. All such liabilities not assumed
by the Buyer pursuant to this Section 1.2 shall be retained by Seller and shall hereafter be
referred to as the “Retained Liabilities.” Buyer specifically assumes no liability for any billing
by BellSouth and its affiliates to Seller for telecommunications services rendered prior to the
Closing Date whether or not such billing is received by Seller before such Closing Date.

 

 

     1.3. Purchase Price.

          1.3.1. Subject to adjustment pursuant to Section 1.3.2 below, on the Closing Date, Buyer
shall pay by wire transfer of immediately available funds to Seller as consideration for the sale
of the Transferred Assets and the assumption of the Assumed Liabilities a total purchase price (the
“Purchase Price”) equal to the sum of the following:

     (a) with respect to the On-Net Trinsic Business Lines, the product of (i) One Hundred Twenty
Dollars ($120.00), multiplied by (ii) the number of active On-Net Trinsic Business Lines at the
close of business on the day immediately preceding the Closing Date; plus,

     (b) with respect to the Off-Net Trinsic Business Lines, the product of (i) One Hundred Ten
Dollars ($110.00), multiplied by (ii) the number of active Off-Net Trinsic Business Lines at the
close of business on the day immediately preceding the Closing Date; plus,

     (c) with respect to the On-Net Trinsic Residential Lines, the product of (i) Ninety Dollars
($90.00), multiplied by (ii) the number of active On-Net Trinsic Residential Lines at the close of
business on the day immediately preceding the Closing Date; plus,

     (d) with respect to the Off-Net Trinsic Residential Lines, the product of (i) Eighty-Nine
Dollars and fifty cents ($89.50), multiplied by (ii) the number of active Off-Net Trinsic
Residential Lines at the close of business on the day immediately preceding the Closing Date; plus,

     (e) with respect to the On-Net Sprint Business Lines, the product of (i) One Hundred Twenty
Dollars ($120.00), multiplied by (ii) the number of active On-Net Sprint Business Lines at the
close of business on the day immediately preceding the Closing Date; plus,

     (f) with respect to the Off-Net Sprint Business Lines, the product of (i) One Hundred Ten
Dollars ($110.00), multiplied by (ii) the number of active Off-Net Sprint Business Lines at the
close of business on the day immediately preceding the Closing Date; plus,

     (g) with respect to the On-Net Sprint Residential Lines, the product of (i) Ninety-Five
Dollars ($95.00), multiplied by (ii) the number of active On-Net Sprint Residential Lines at the
close of business on the day immediately preceding the Closing Date; plus,

     (h) with respect to the Off-Net Sprint Residential Lines, the product of (i) Ninety Dollars
($90.00), multiplied by (ii) the number of active Off-Net Sprint Residential Lines at the close of
business on the day immediately preceding the Closing Date.

          For purposes hereof, (i) “On-Net” shall mean lines served by the 292 BellSouth central
offices located in the states set out on Exhibit “B”
attached hereto, (ii) “Off-Net” shall mean
all other BellSouth central offices, (iii) “Trinsic Business Lines” shall mean those
Customer Access Lines relating to a business account that were owned by Trinsic on or before
January 31, 2006 or which were obtained by Trinsic other than by purchase from Sprint since
February 1, 2006, (iv) “Trinsic Residential Lines” shall mean those Customer Access Lines
relating to a residential account that were owned by Trinsic on or before January 31, 2006 or
which were obtained by Trinsic other than by purchase from Sprint since February 1, 2006, (v)

2

 

“Sprint Business Lines” shall mean those Customer Access Lines relating to a business
account that were purchased by Trinsic from Sprint on and after February 1, 2006, (vi) “Sprint
Residential Lines” shall mean those Customer Access Lines relating to a residential account
that were purchased by Trinsic from Sprint on and after February 1, 2006, and (vii) the number of
active lines in each category above shall include all lines applicable to that category that are in
service on the Closing Date and with respect to which payment is not 60 days or more past due as of
the Closing Date.

          1.3.2. Post-Closing Purchase Price Adjustment. From and after the Closing Date until
the date which is ninety (90) days following the Closing Date (the “Post-Closing Period”), Buyer
shall maintain a list of all Customer Access Lines that (i) were transferred to Buyer on the
Closing Date but which were not included as active lines on the Closing Date for purposes of
calculating the Purchase Price above because payment on such lines was 60 days or more past due and
(ii) subsequent to the Closing Date have become “current” due to a payment to Buyer with respect to
such account made after the Closing Date (each such reinstated Customer Access Line being
hereinafter referred to as a “Reactivated Line”). Buyer agrees to pay Seller for each Reactivated
Line the same amount Buyer would have paid Seller pursuant to Section 1.3(a) — (h) above had such
Reactivated Line been “active” as of the Closing Date (the aggregate amount to be paid with respect
to all Reactivated Lines being referred to herein as the “Purchase Price Adjustment”). No later
than the third (3rd) business day following the end of the Post-Closing Period, Buyer
shall deliver to Seller a report identifying all of the Reactivated Lines of which Buyer is aware
and including a calculation of the Purchase Price Adjustment to be paid. No later than the third
(3rd) business day following the end of the Post-Closing Period, Seller shall deliver to
buyer a report identifying all of the Reactivated Lines of which Seller is aware and including a
calculation of the Purchase Price Adjustment to be made. Buyer shall pay Seller the Purchase Price
Adjustment, if any, no later than ten (10) business days following the end of said Post-Closing
Period.

          1.3.3. Seller Inspection Rights. Buyer shall permit Seller or its authorized
representatives to enter Seller’s premises during normal business hours to inspect and audit all of
Buyer’s records applicable to the Customer Access Lines for purposes of confirming the number and
type of Reactivated Lines and to evaluate Buyer’s compliance with this Section.

     1.4. Prorations. All taxes imposed on a periodic basis (including personal property
taxes, ad valorem taxes, franchise fees or taxes and similar taxes and assessments with respect to
the Transferred Assets), all utility payments and all other periodic charges and expenses arising
from the operations of the Business shall be prorated between Buyer and Seller as of 11:59 p.m.,
central Time, on the Closing Date. With respect to measurement periods that include (but do not
end on) the Closing Date (all such periods of time being hereinafter called “Proration Periods”),
Seller shall be responsible for the portion of any such liabilities that relates to the portion of
such Proration Period ending on the Closing Date, which shall be deemed to be the amount of such
liability for the entire Proration Period multiplied by a fraction, the numerator of which is the
number of days in the portion of the Proration Period ending on the Closing Date, and the
denominator of which is the number of days in the Proration Period. Buyer shall be responsible for
the portion of any such liabilities that relates to the portion of such Proration Period beginning
after the Closing Date, which shall be deemed to be the amount of such liability for the entire
Proration Period multiplied by a fraction, the numerator of which is the number of days in the

3

 

portion of the Proration Period beginning on the day following the Closing Date, and the
denominator of which is the number of days in the Proration Period. On the Closing Date, Buyer
shall reimburse Seller, on this prorated basis, for Buyer’s portion of any such Proration Period
liabilities that have been paid before the Closing Date. Seller shall reimburse Buyer, on this
prorated basis, for Seller’s portion of any such Proration Period liabilities paid on or after the
Closing Date within five (5) business days of Seller’s receipt of an invoice (including reasonable
support for the calculation of the invoiced amount) from Buyer for such liabilities, but no
earlier than five (5) days prior to the due date for the payment of any such liability. To the
extent that Buyer or Seller has not reimbursed the other party for such a Proration Period
liability for which Buyer or Seller is responsible by the due date for such reimbursement, the
amount of such reimbursement payment shall bear simple interest at the rate of 8% per annum.

     1.5. Allocation of the Purchase Price for Tax Purposes. Seller may, in its
discretion, make an allocation (the “Allocation”) of the Purchase Price, the Assumed Liabilities
and other relevant items to the individual assets or classes of assets comprising the Transferred
Assets in accordance with Section 1060 of the United States Internal Revenue Code of 1986, as
amended (the “Code”). Buyer agrees not to make any filing or take any position with any
Governmental Authority that is inconsistent with the Allocation.

     1.6. Transfer Taxes. Buyer shall bear and be responsible for any Transfer Taxes
imposed by any Governmental Authorities in connection with the sale, transfer or assignment of the
Transferred Assets or otherwise on account of the Transactions, regardless of whether Buyer or
Seller is assessed therefore. Buyer shall pay such Transfer taxes directly to the taxing
authorities or, if requested by Seller, shall remit to Seller on the Closing Date amounts
sufficient to enable Seller to pay any Transfer Taxes assessed against Setter. If Buyer pays any
Transfer Taxes directly, Buyer shall provide to Seller within ten (10) days of each such payment
written evidence of receipt of such payment by the appropriate taxing authority.

ARTICLE 2

ACCESS

     2.1. Access to Books and Records. Upon execution of this Agreement, Seller, upon
reasonable notice from Buyer, shall permit Buyer and its authorized representatives reasonable
access during customary business hours at Seller’s place of business to the books and records,
contracts, permits and other relevant data, information and things pertaining to the Transferred Assets.

     2.2. Access to Customer Data. Upon execution of this Agreement, Seller shall provide
Buyer with all customer information and data relating to the Transferred Assets as reasonably
requested by Buyer that pertains to the Transferred Assets, including but not limited to, customer
test files and universal service order code definitions. Upon the request of Buyer, Seller shall
provide Buyer with a complete computer download of all customer service records for Customers
(including the feature sets, pricing and packages sold to the customer).

4

 

ARTICLE 3

CLOSING

     3.1. Closing. Upon the terms and subject to the conditions of this Agreement, the
consummation of the purchase and sale of the Transferred Assets and the assignment and assumption
of the Assumed Liabilities (the “Closing”) shall take place at such location, date and time as the
parties may mutually determine, within three (3) days following the satisfaction or waiver of all
the conditions precedent to Closing, including, but not limited to: (i) the conditions precedent to
Closing set forth in this Article 4, and (ii) the receipt of all necessary Governmental Approvals.
As of the date hereof, the parties anticipate that the transactions contemplated herein may require
more than one Closing, with the first effecting the transfer of the Trinsic Lines and occurring on
or about April 4, 2006, and the second effecting the transfer of the Sprint Lines and occurring on
or about June 6, 2006. The date of any such Closing (or any partial closing) actually occurs is
referred to as the “Closing Date.” In lieu of attending the Closing, the parties may consummate the
Closing by exchanging documents via e-mail, facsimile and overnight courier in a mutually
acceptable manner. The Closing shall be deemed to have occurred as of 11:59 p.m., Central Standard
Time, on the Closing Date.

     3.2. Deliveries by Seller to Buyer. At or prior to the Closing, Seller will deliver
to Buyer:

          3.2.1. A duly executed Assignment and Assumption Agreement in substantially the form attached
as Exhibit A;

          3.2.2. A duly executed closing certificate of each Seller signed by the appropriate
officer of the Seller certifying as to the fulfillment of the conditions set forth in Sections
4.1.1 and 4.1.2 of this Agreement is substantially the form attached as Exhibit C;

          3.2.3. List of Customer Access Lines. Seller will provide to Buyer a complete list of
the Customer Access Lines to be transferred at Closing (a copy of such list is attached hereto as
Schedule 3.2.3).

     3.3. Deliveries by Buyer to Seller. At or prior to the Closing, Buyer will deliver
to Seller:

          3.3.1. The Purchase Price as required by Section 1.3, together with any proration payment
required to be paid on the Closing Date pursuant to Section 1.4;

          3.3.2. A duly executed closing certificate of Buyer signed by the appropriate Officer or Buyer
certifying as to the fulfillment of the conditions set forth in Section 4.2.1 and 4.2.2 of this
Agreement in substantially the form attached as Exhibit D;

          3.3.3. A duly executed Interim Process Agreement; and

5

 

          3.3.4. A duly executed Assignment and Assumption Agreement in substantially the form
attached as Exhibit A.

     3.4. Further Assurances. Except as otherwise provided herein, all instruments of
conveyance, assignment or transfer referred to herein, all sums of money, and all records and data
to be delivered as specified in this Agreement shall be delivered at or prior to the Closing. The
parties agree following the Closing to execute and deliver such further instruments of conveyance,
assignment and assumption as may be reasonably necessary to consummate the Transactions and to give
effect to the transfer of the Transferred Assets and the assumption of the Assumed Liabilities.

     3.5. Partial Closing. In the event that as of (the anticipated closing dates set
forth in Section 3.1) the parties have received some but not all of the Governmental Approvals
required to transfer all of the Customer Access Lines originally contemplated to be transferred
pursuant to this Agreement, Buyer and Seller may mutually agree to proceed with a closing of the
transfer of some but not all of the Customer Access Lines covered by this Agreement. In the event
the parties agree to proceed with such a partial closing, the parties shall agree to a schedule
listing the Customer Access Lines with respect to which the necessary Governmental Approvals have
been received (the “Partial Closing Schedule”). The parties agree to use commercially reasonable
efforts to resolve any dispute that may arise with respect to the Customer Access Lines to be
included on the Partial Closing Schedule. Upon final determination of the Partial Closing
Schedule, Buyer and Seller shall proceed to a closing with respect to those Customer Access Lines
included on the Partial Closing Schedule. In the event of a partial closing pursuant to this
Section 3.5, Buyer shall only accept and purchase from Seller and Seller shall only sell and
transfer to Buyer those Customer Access Lines with respect to which all required Governmental
Approvals have been received as of the Closing Date of such partial closing and which are set forth
on the Partial Closing Schedule. Buyer and Seller agree, for a reasonable period following any
partial closing, to use commercially reasonable efforts (i) to obtain the necessary Governmental
Approvals required to transfer those Customer Access Lines not transferred as part of such partial
closing and (ii) to effect such transfer of the remaining Customer Access Lines upon receipt of
such Governmental Approval.

ARTICLE 4

CONDITIONS

     4.1. Conditions to Buyer’s Obligations. The obligation of Buyer to consummate the
Transactions shall be subject to the satisfaction, on or prior to the Closing Date, of each of the
following conditions, any of which may be waived by Buyer in writing:

          4.1.1. Representations and Warranties. All representations and warranties of Seller
made in this Agreement shall be true and correct in all material respects as of the Closing Date,
except for such representations and warranties that are made expressly as of an earlier date which
shall be true and correct as of date made.

6

 

          4.1.2. Covenants and Agreements. Seller shall have performed and complied in all
material respects with all covenants and agreements required or contemplated by the Transaction
Documents to be performed by it on or prior to the Closing Date.

          4.1.3. Governmental Approvals. The Governmental Approvals shall have been obtained
and shall be in full force and effect; provided, however, that if the parties mutually agree to
proceed with a partial closing as provided under Section 3.5, Buyer shall waive this condition as
it relates to having received all Governmental Approvals for all lines and proceed with a closing
pursuant to Section 3.5 of this agreement with respect to those Customer Access Lines with respect
to which such Governmental Approvals have been received.

          4.1.4. Legal Proceedings; No Injunction. No action or proceedings before any court or
Governmental Authority shall be pending or threatened wherein an unfavorable judgment, decree or
order would (a) prevent the carrying out of this Agreement, or any of the transactions contemplated
herein, (b) declare unlawful the transactions contemplated by this Agreement, (c) cause such
transactions to be rescinded, (d) permit consummation of the transactions contemplated herein or
therein subject to the imposition of substantial damages on Buyer, or (e) materially affect the
right of Buyer to own the transferred Assets.

          4.1.5. Certificates and Other Documents. Seller shall have executed and delivered
the certificates and other documents required by Sections 3.2 and 3.4.

          4.1.6. No Material Adverse Effect. Subsequent to the date hereof, there shall have
occurred no casualty or other event or change, not subsequently cured by Seller, which has resulted
in a Material Adverse Effect.

     4.2. Conditions to Seller’s Obligations. The obligation of Seller to consummate the
Transactions shall be subject to the satisfaction, on or prior to the Closing Date, of each of the
following conditions, any of which may be waived by Seller in writing:

          4.2.1. Representations and Warranties. All representations and warranties of Buyer
made in this Agreement shall be true and correct in all material respects as of the Closing Date
except for such representations and warranties that are made expressly as of an earlier date which
shall be true and correct as of date made.

          4.2.2. Covenants. Buyer shall have performed and complied with all covenants and
agreements required or contemplated by the Transaction Documents to be performed by it on or prior
to the Closing Date.

          4.2.3. Governmental Approvals. All Governmental Approvals shall have been obtained
and shall be in full force and effect; provided, however, that if the parties mutually agree to
proceed with a partial closing as provided under Section 3.5, Seller shall waive this condition as
it relates to having received all Governmental Approvals for all lines and proceed with a closing
pursuant to Section 3.5 of this agreement with respect to those Customer Access Lines with respect
to which such Governmental Approvals have been received.

          4.2.4. Legal Proceedings; No Injunction. No action or proceeding before any court or
Governmental Authority shall be pending or threatened wherein an unfavorable

7

 

judgment, decree or order would (a) prevent the carrying out of this Agreement or any of the
transactions contemplated herein (b) declare unlawful the transactions contemplated by this
Agreement (c) cause such transactions to be rescinded, or (d) permit consummation of the
transactions contemplated herein subject to the imposition of substantial damages on Seller.

          4.2.5. Certificates and Other Documents. Buyer shall have delivered the
certificates and other documents required under
Sections 3.3 and 3.4.

          4.2.6. Purchase Price. Buyer shall have delivered the Purchase Price to Seller in the
manner specified in Section 1.3.1.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES

     5.1. Buyer’s Representations and Warranties. Buyer represents and warrants to
Seller that:

          5.1.1. Organization. Buyer is a corporation duly organized, validly existing and in
good standing under the laws of the State of Georgia, with full authority: (i) to execute and
deliver the Transaction Documents, to consummate the Transactions and to perform all of its
obligations under the Transaction Documents, and (ii) to own, lease or otherwise hold the assets
owned, leased or held by it. Buyer has obtained all approvals necessary to authorize the
execution, delivery and performance of this Agreement, and Buyer has obtained, or will have
obtained prior to Closing, all approvals necessary to consummate the Transactions and authorize the
execution, delivery and performance of the Transaction Documents.

          5.1.2. Authority. This Agreement has been, and when executed by Buyer each of the
other Transaction Documents will be, duly and validly executed and delivered by Buyer and the
authorization referenced in Section 3.3.2 has been obtained by Buyer. This Agreement constitutes,
and when executed by Buyer each of the other Transaction Documents will constitute, the valid and
binding agreement of Buyer enforceable against Buyer in accordance with its terms, except to the
extent that such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other Laws relating to creditors’ rights generally and by principles
of equity.

          5.1.3. No Restrictions Against Transactions. The execution, delivery and
performance of this Agreement and the Transaction Documents by Buyer do not, and the fulfillment by
Buyer of its obligations under this Agreement and the Transaction Documents will not, conflict
with, violate or result in the breach of any provision of (i) the Articles of Incorporation or
Bylaws (or comparable governing documents or instruments) of Buyer or (ii) any contract, agreement,
instrument or other legally binding arrangement to which Buyer is a party or by which any of
Buyer’s assets are bound. The execution, delivery and performance of this Agreement and the
Transaction Documents by Buyer will not violate any Law. Except as set forth on Schedule
5.1.3 and except for the FCC Approvals and PUC Approvals the parties contemplate obtaining
pursuant to Sections 6.2.3 and 6.2.4 of this Agreement, Buyer’s execution,

8

 

delivery and performance of this Agreement and the Transaction Documents do not require
authorization or approval of, or filing with, any Governmental Authority.

          5.1.4. Brokers. Buyer has not paid or become obligated to pay any fee or commission
to any broker, finder, investment banker or other intermediary in connection with the transactions
contemplated by this Agreement in such a manner as to give rise to a valid claim against Seller for
any broker’s or finder’s fees or similar fees or expenses.

          5.1.5. Litigation. As of the date hereof there are no actions, suit, proceedings,
claims, arbitrations or investigations, either at law or in equity, of any kind now pending (or to
Buyer’s Knowledge threatened) against Buyer (i) that question the validity of any of the
Transaction Documents or the Transactions; or (ii) that seek to delay, prohibit or restrict in any
manner any actions taken or contemplated to be taken by Buyer under the Transaction Documents.

5.2. Seller’s Representations and Warranties. Seller represents and warrants to Buyer that:

          5.2.1. Organization. Seller is a corporation duly and validly existing and in
good standing under the laws of the State of Delaware. Seller has have full power and authority
to execute and deliver the Transaction Documents, to consummate the Transactions and to perform all
of its obligations under the Transaction Documents. Seller has obtained all corporate and
partnership approvals necessary to consummate the Transactions and authorize the execution,
delivery and performance of the Transaction Documents.

          5.2.2. Authorization, Execution and Delivery. This Agreement has been, and when
executed by Seller each of the other Transaction Documents will be, duly and validly executed and
delivered by Seller. This Agreement constitutes, and when executed by Seller each of the other
Transaction Documents will constitute, the valid, legal and binding agreement of Seller enforceable
against Seller in accordance with its terms, except to the extent that such enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or other Laws relating to
creditors’ rights generally and by principles of equity.

          5.2.3. Transferred Assets. Seller has good title to all of the Transferred Assets
and shall deliver same free and clear of all Encumbrances to Buyer at the Closing Date.

          5.2.4. Governmental Authorization. Except as set forth on Schedule 5.2.4 and
except for the FCC Approvals and PUC Approvals the parties contemplate obtaining pursuant to
Sections 6.2.3 and 6.2.4 of this Agreement, Seller’s execution, delivery and performance of this
Agreement and the Transaction Documents do not require authorization or approval of, or filing
with, any Governmental Authority.

          5.2.5. Litigation. As of the date hereof there are no actions, suits, proceedings,
claims, arbitrations or investigations, either at law or in equity, of any kind now pending (or to
Seller’s Knowledge threatened) against Seller (i) that relate to the Transferred Assets; (ii) that
question the validity of any of the Transaction Documents or the Transactions; or (iii) that seek
to delay, prohibit or restrict in any manner any actions taken or contemplated to be taken by
either Seller under the Transaction Documents.

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          5.2.6. Tax Matters. All taxes and assessments, including interest and penalties
thereon, of any kind whatsoever accrued with respect to the Business through the Closing Date
(other than Transfer Taxes and taxes subject to proration pursuant to Section 1.4) have been or
will be paid in full by Seller. There are no liens for federal, state or local taxes upon the
Transferred Assets, except for statutory liens for taxes or assessments not yet delinquent or the
validity of which is being contested in good faith by Seller in appropriate proceedings, the
ultimate liability for which shall remain the obligation of Seller. Seller has timely filed, or
will cause to be timely filed, all material federal, state and local tax returns and reports of any
kind (including income, franchise, sales, use, excise, employment and real and personal property)
which Seller is obligated to file with respect to the Business for all periods up to and including
the Closing Date.

          5.2.7. No Material Violation. The execution and delivery by Seller of the
Transaction Documents and the consummation by Seller of the Transactions will not: (i) violate any
provision of the Articles of Incorporation or Bylaws (or comparable governing documents or
instruments) of either Seller; (ii) except as set forth in Section 5.2.4 and subject to receipt of
the FCC Approvals and PUC Approvals the parties contemplate obtaining pursuant to Sections 6.2.3
and 6.2.4 of this Agreement, violate any applicable Law issued, enacted, entered or deemed
applicable by any Governmental Authority having jurisdiction over a Seller or any of the
Transferred Assets; (iii) result in a violation or breach of, or constitute (with or without due
notice or lapse of time or both) a default (or give another party any rights of termination,
cancellation or acceleration) under any of the terms, conditions or provisions of the Customer
Contracts; or (iv) result in the creation or imposition of any Encumbrance on any of the
Transferred Assets.

          5.2.8. Brokers. Seller has not paid or become obligated to pay any fee or
commission to any broker, finder, investment banker or other intermediary in connection with the
transactions contemplated by this Agreement in such a manner as to give rise to a valid claim
against Buyer for any broker’s or finder’s fees or similar fees or expenses.

ARTICLE 6

COVENANTS

     6.1. Covenants of Seller.

          6.1.1. Satisfaction of Conditions. Seller will use its commercially reasonable
efforts to cause to be fulfilled and satisfied all of the conditions to the Closing to be performed
or satisfied by Seller.

          6.1.2. Maintenance and Conduct of Business. From the date of this Agreement to the
Closing Date, the Seller will cause the Business to be conducted consistent with the ordinary and
normal course of the Business existing prior to the date of this Agreement and will use its
reasonable efforts to retain the services of present officers, employees and agents of the Business
existing prior to the date of this Agreement and will use its reasonable efforts to retain the
services of present officers, employees and agents of the Business and preserve business
relationships of the Business with customers, suppliers and others.

          

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          6.1.3. Seller Rate Changes. Without the consent of Buyer, which shall not be
unreasonably withheld or delayed, Seller shall not make any adjustments to any recurring or non
recurring rates relating to the Customer Access Lines between the execution of this Agreement and
the Closing Date except to the extent such adjustments are mandated by Law.

          6.1.4. Consent to Assignment. At the Closing, Seller will transfer to Buyer all
Customer Contracts that are by their terms assignable. Seller shall also request assignment to
Buyer of those Customer Contracts that are not by their terms assignable. To the extent that the
assignment of any Customer Contract shall require the consent of another person, this Agreement
shall not constitute an agreement to assign the Transferred Customer Contract if an attempted
assignment would constitute a breach thereof. Prior to the Closing, both parties shall use
commercially reasonable efforts (excluding the payment of money) to obtain the consent of any other
party to the assignment of such Customer Contracts to Buyer.

     6.2. Mutual Covenants.

          6.2.1. Public Announcements. The parties agree that immediately following the
execution of this Agreement, the parties will jointly issue the press release attached hereto as
Exhibit E. Except as set forth in the preceding sentence, neither party may publicly
announce the signing of this Agreement and the Transactions contemplated herein before of after the
Closing without the prior written approval of the other party, except as and to the extent that
such party is required to so disclose such information by Law or rule of any stock exchange. In
such event, such disclosing party shall advise the other party of the disclosure required and shall
provide the other party with a copy of the disclosure to be made, and shall use commercially
reasonable efforts to cause a mutually acceptable release, announcement or filing to be made.

          6.2.2. Cooperation. Except as expressly provided otherwise in this Agreement, each
party covenants to use all commercially reasonable efforts to take or cause to be taken all
actions, and to do or cause to be done all things, that are necessary, proper or advisable under
applicable Laws and regulations, expeditiously and practicably to consummate and make effective the
Transactions, including but not limited to (i) using its commercially reasonable efforts to resolve
any disagreements between Buyer and Seller with respect to any applications for governmental or
regulatory approval prior to application for such approval, (ii) obtaining all necessary actions,
waivers, consents and approvals from third parties or Governmental Authorities, and (iii)
effecting all necessary filings with Governmental Authorities.

          6.2.3. PUC Filings. Promptly after the execution of this Agreement, each of the
parties will take such reasonable actions as may be necessary or helpful (including, but not
limited to, making available witnesses, information, documents, and data requested by the PUC) to
apply for and receive all approvals necessary from PUCs for the transfer of the Transferred Assets
to Buyer and the change in the provider of telecommunications services to the Customers. Seller and
Buyer will jointly prepare any applications and customer notice waivers required to be filed with
PUCs. Seller shall take the lead in preparing petitions to discontinue current service offerings
as required, if any. Buyer shall pay all costs and expenses associated with such filings.

          6.2.4. FCC Filings. The parties agree to promptly file after execution of this
Agreement such applications and to take such reasonable actions as may be necessary or helpful

          
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to apply for and receive approval by the FCC for the transfer of the Transferred Assets to Buyer
and the change in the provider of telecommunications services to the Customers. Seller and Buyer
will jointly prepare the applications and customer notice waivers to be filed with the FCC. Seller
shall take the lead in preparing petitions to discontinue current service offerings as required,
if any. Buyer shall pay all costs and expenses relating to such filings.

          6.2.5. Buyer State Filings. Buyer shall be responsible for filing any required
affidavits regarding its status as the “acquiring carrier” as well as any future tariffs relating
to new rate plans.

          6.2.6. Prohibition on Rate Increase. Buyer shall not increase rates to Customers with
respect to the Customer Access Lines for a minimum of 60 days following the Closing Date with
respect to any such line.

ARTICLE 7

TERMINATION

     7.1. Termination By Buyer. If any condition precedent to Buyer’s obligation to effect
the Closing set forth in Section 4.1 shall become incapable of satisfaction through no fault of
Buyer and such condition is not waived by Buyer, Buyer shall not be obligated to effect the Closing
and may terminate this Agreement by written notice to Seller. If either Seller materially breaches
any provisions of this Agreement, and such breach remains uncured for thirty (30) days after notice
from Buyer, Buyer may terminate this Agreement upon written notice to Seller.

     7.2. Termination By Seller. If any condition precedent to Seller’s obligation to
effect the Closing set forth in Section 4.2 shall become incapable of satisfaction through no fault
of Seller and such condition is not waived by Seller, Seller shall not be obligated to effect the
Closing and may terminate this Agreement by written notice to Buyer. If Buyer materially breaches
any provisions of this Agreement, and such breach remains uncured for thirty (30) days after notice
from Seller, Seller may terminate this Agreement upon written notice to Buyer.

     7.3. Termination By Buyer or Seller. If (i) a final, non-appealable order is issued
by any Governmental Authority to restrain, enjoin or prohibit the consummation of the Transactions,
or (ii) the Closing with respect to any Customer Access Lines shall not have occurred on or before
August 1, 2006, then either party may terminate this Agreement by written notice to the other.
Notwithstanding the foregoing, if a non-appealable order is issued by a state PUC to restrain,
enjoin or prohibit the consummation of the Transactions, then within ten (10) days of the date such
an order becomes final and non-appealable, the Buyer and Seller will initiate good faith
negotiations to modify the Agreement to address the terms of the PUC order. If the parties are
unable to successfully modify the Agreement, either party shall, at its option, have the right to
terminate this Agreement by written notice to the other party.

     7.4. Effect of Termination. In the event of the termination of this Agreement pursuant
to this Article 7, this Agreement shall thereafter become void and there shall be no further
liability on the part of any party hereto or its respective shareholders, directors, officers or
employees in respect thereof, except as follows: (i) nothing herein shall relieve any party from

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liability for any intentional breach of this Agreement, (ii) the obligations of the parties hereto
set forth in Sections 12.3, 12.4, 12.5, 12.11, 12.12 and 12.14 shall not be affected by a
termination of this Agreement, and (iii) the Escrowed Funds and any interest earned thereon shall
be either immediately released to the Buyer or retained by the Seller, as applicable, in accordance
with Section 3.b. of the Letter of Intent.

ARTICLE 8

ADDITIONAL MATTERS

     8.1. Pre-Closing. In order to effectuate an orderly Transition in the provision of
telecommunications services to Customers on the Closing Date, Buyer and Seller agree to utilize the
measures set forth below:

          8.1.1. Collection of Receivables. Prior to the Closing Date, Seller will provide
service and collect receivables related to the Customers and will be solely responsible for, and
entitled to, collection of all receivables accrued prior to the Closing Date. Beginning on the
Closing Date, all Customers shall become the responsibility of Buyer, and Buyer will, as of the
Closing Date, be solely responsible for collecting receivables related to service provided after
the Closing Date. Buyer will collect all payments received following the Closing Date and will (i)
on the thirtieth (30) day following the Closing Date and (ii) on the sixtieth (60th) day
following the Closing Date, transfer to Sellers all payments received by Buyer relating to services
provided on or before the Closing Date. Seller will collect all payments received following the
Closing Date and will (i) on the thirtieth (30) day following the Closing Date and (ii) on the
sixtieth (60th) day following the Closing Date, transfer to Buyers all payments received
by Seller relating to services provided after the Closing Date. Thereafter, any payments received
by Buyer relating to services provided on or before the Closing Date will be forwarded by Buyer to
Seller no more than ten (10) business days after receipt thereof, and any payments received by
Seller relating to services provided after the Closing Date by Buyer will be forwarded by Seller to
Buyer no more than ten (10) business days after receipt thereof.

          8.1.2. Notice to Customers. Buyer and Seller agree that Buyer, in cooperation with
Seller, will deliver multiple written notifications to the Customer in order to meet requisite
regulatory standards and to facilitate an orderly transition of services to Buyer with as little
attrition as possible. All such written notifications shall be provided to Seller in advance of any
use thereof, and shall be acceptable to Seller. In no less than the final bill delivered to each
Customer, the Customers shall be informed that Seller will no longer be the Customer’s
telecommunications provider and Customers shall be provided the name, address and telephone number
of Buyer, including the payment information relating to the newly established lock-box and a
request that all such payments due on the final bill be directed to the new payment location.

          8.1.3. Customer Records. To the extent not previously provided to Buyer, Seller shall
use commercially reasonable efforts to maintain all billing and service records for goods sold or
services provided, including any third-party verifications, to Customers prior to Closing until the
later of one year from the Closing Date or the maximum time required by Law. Seller shall use
commercially reasonable efforts to make available, upon reasonable request from Buyer, all such
billing and service records. Such records will be provided without cost to the

          

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Buyer and will include access to third party verifications and letters of authorization associated
with end user subscriptions.

          8.1.4. Carrier Access Billing. Seller shall render their own final carrier access
bills to its interexchange carriers for minutes, messages and other applicable charges. Seller
shall be responsible for collecting and settling any disputes associated with its final carrier
access billings to interexchange carriers, and there shall be no adjustment to the Purchase Price
for any bad debts of these interexchange carriers. All carrier access billings, revenue, and bad
debt associated with usage incurred after Closing shall be the benefit or obligation of Buyer as
the case may be.

     8.2. New Customer Service Orders and Service Change Orders. After customers are
transitioned to Buyer on the Closing Date, Buyer shall be responsible for processing all new
customer service requests and service change order requests submitted by customers or applicants
for service. After the Closing Date, Seller shall forward within ten (10) business days any new
customer service orders or service change orders received by Seller to Buyer for service.

     8.3. Access to Books and Records.

          8.3.1. After the Closing, Seller will retain all Retained Books and Records for a period of
three (3) years.

          8.3.2. After the Closing, upon reasonable notice the parties will give to the representatives,
employees, counsel and accountants of the other party reasonable access during normal business
hours, to books and records relating to the, Transferred Assets and the Assumed Liabilities, and
will permit such persons to examine and copy such records, in each case to the extent reasonably
requested by the other party in connection with tax and financial reporting matters (including any
tax returns and related information, but not attorney work product), audits, legal proceedings,
governmental investigations and other business purposes (including such financial information and
any receipts evidencing payment of taxes as may be requested by Seller to substantiate any claim
for tax credits or refunds); provided, however, that nothing herein will obligate any party to take
actions that would unreasonably disrupt the normal course of its business or violate the terms of
any contract to which it is a party or to which it or any of its assets is subject. Seller and
Buyer will cooperate with each other in the conduct of any tax audit or similar proceedings
involving or otherwise relating to the Business (or the income therefrom or assets thereof) with
respect to any tax and each will execute and deliver such powers of attorney and other documents as
are necessary to carry out the intent of this Section 8.3.2.

     8.4. Bulk Sales Laws. Seller and Buyer waive compliance with applicable laws under
any version of Article 6 of the Uniform Commercial Code adopted by any state or any similar Law
relating to tile sale of inventory, equipment or other assets in bulk in connection with the sale
of the Transferred Assets.

     8.5 Voice-Mail Platform. Buyer agrees to purchase, and Seller agrees to sell to
Buyer, the use of the voice-mail platform currently attached to each of those Customer Access Lines
that currently have voice-mail service and that are being transferred at Closing. In exchange for
the use by Buyer of the voice-mail platform with respect to these Customer Access

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Lines, Buyer agrees to pay to Seller, at Closing, an amount equal to the product of (i) $2.50,
times (ii) the number of Customer Access Lines currently having voice mail and to be transferred
to Buyer at Closing. In addition, from and after Closing up to and including the twelfth
(12th) month following the Closing, Buyer agrees to pay, no later than the
5th day of each month, an amount equal to the product of (i) $2.50, times (ii) the
number of Customer Access Lines currently having voice mail that were transferred to Buyer at
Closing that remain active as of the first (1st) day of any such month.

ARTICLE 9

INDEMNIFICATION

     9.1. Survival. The representations and warranties made in this Agreement, the
Schedules and the certificates to be delivered by the parties shall survive for a period of twelve
(12) months following the Closing Date (except for Sections 5.2.3 (“Title to Purchased Assets”),
which shall survive indefinitely and Section 5.2.6 (“Taxes”) which shall survive for the
applicable statute of limitations), except to the extent such party, at or prior to the Closing
Date, shall have actual knowledge of a breach or inaccuracy of a representation or warranty of the
other party. No claim may be made for the breach of a representation or warranty made in this
Agreement unless notice of such claim has been delivered to the breaching party prior to the
expiration of the representation or warranty.

     9.2. Indemnification and Payment of Damages by Seller. Subject to the limitations set
forth in Section 9.6, Seller will indemnify and hold harmless Buyer and its respective
representatives, stockholders, controlling persons and affiliates (collectively, the “Indemnified
Persons”) for, and will pay to such Indemnified Persons the amount of, any loss, liability, claim,
damage expense (including costs of investigation and defense and reasonable attorneys’ fees),
whether or not involving a third-party claim (collectively, “Damages”), arising, directly or
indirectly, from or in connection with (a) any breach of representation or warranty made by either
Seller in this Agreement, (b) any breach of any covenant or obligation of a Seller in this
Agreement; (c) the Excluded Assets or the Retained Liabilities; or (d) any claim by any person for
brokerage or finder’s fees or commissions or similar payments based upon any agreement or
understanding alleged to have been made by any such person with a Seller (or any person acting on
its behalf) in connection with any of the contemplated transactions.

     9.3. Indemnification and Payment of Damages by Buyer. Subject to the limitations set
forth in Section 9.7, Buyer will indemnify and hold harmless Seller and its Indemnified Persons
for, and will pay to such Indemnified Persons the amount of, any Damages arising, directly or
indirectly, from or in connection with (a) any breach of representation or warranty made by Buyer
in this Agreement; (b) any breach of any covenant or obligation of Buyer in this Agreement; (c) the
use, conduct or operation of the Transferred Assets from and after the Closing Date solely to the
extent that any such Damages result from events occurring after the Closing Date, (d) the failure
of Buyer to perform any of the Assumed Liabilities, and (e) any claim by any person for brokerage
or finder’s fees or commissions or similar payments based upon any agreement or understanding
alleged to have been made by such person with Buyer (or any person acting on its behalf) in
connection with any of the contemplated transactions.

     9.4. Procedure for Indemnification — Third Party Claims.

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          9.4.1. Promptly after receipt by an Indemnified Person under Section 9.2 or 9.3 of notice of
the commencement of any claim (a “Proceeding”) against it, such Indemnified Person shall, if a
claim is to be made against an indemnifying party under such section, give notice to the
indemnifying party of the commencement of such claim, but the failure to notify the indemnifying
party will not relieve the indemnifying party of any liability that it may have to any Indemnified
Person, except to the extent that the indemnifying party demonstrates that the defense of such
action is prejudiced by the Indemnified Person’s failure to give such notice.

          9.4.2. If any proceedings referred to in Section 9.4.1 is brought against an Indemnified
Person and it give notice to the indemnifying party of the commencement of such Proceeding, the
indemnifying party shall, be entitled to participate in such Proceeding and, to the extent that it
wishes (unless the indemnifying party is also a party to such Proceeding and the Indemnified Person
determines in good faith that joint representation would be inappropriate) to assume the defense of
such Proceeding with counsel reasonably satisfactory to the Indemnified Person and, after notice
from the indemnifying party to the Indemnified Person of its election to assume the defense of such
Proceeding, the indemnifying party will not, as long as it diligently conducts such defense, be
liable to the Indemnified Person under this Article 9 for any fees of other counsel or any other
expenses with respect to the defense of such Proceeding, in each case subsequently incurred by the
Indemnified Person in connection with the defense of such Proceeding, other than reasonable costs
of investigation. If the indemnifying party assumes the defense of a Proceeding, (i) no compromise
or settlement of such claims may be effected by the indemnifying party without the Indemnified
Person’s consent unless (A) there is no finding or admission of any violation of legal
requirements or any violation of the rights of any Person and no effect on any other claims that
may be made against the Indemnified Person, and (B) the sole relief provided is monetary damages
that are paid in full by the indemnifying party; and (ii) the Indemnified Person will have no
liability with respect to any compromise or settlement of such claims effected without the consent
of such Indemnified Person. In no event will the Indemnified Person consent to the entry of any
judgment or enter into any settlement with respect to a Proceeding without the prior written
consent of the Indemnifying Person, which consent shall not be unreasonably withheld.

     9.5. Procedure for Indemnification — Other Claim. A claim for the indemnification for
any matter not involving a third-party claim may be asserted by notice to the party from whom
indemnification is sought.

     9.6. Limitations on Seller’s Indemnification of Purchaser. Notwithstanding any other
provision to the contrary, Seller shall be obligated to indemnify Buyer and its Indemnified Persons
only to the extent that the amount of such Damages, when aggregated with the total amount of other
claims for indemnification under Section 9.2, does not exceed $250,000 and (ii) any such claims are
made upon Seller in writing prior to the close of business on the second anniversary of the Closing
Date.

     9.7. Limitations on Buyer’s Indemnification of Seller. Notwithstanding any other
provision to the contrary, Buyer shall be obligated to indemnify Seller and its Indemnified Persons
only to the extent that the amount of such Damages, when aggregated with the total amount of other
claims for indemnification under Section 9.3, does not exceed $250,000, and (ii)

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any such claims are made upon Buyer in writing prior to the close of business on the second
anniversary of the Closing Date.

ARTICLE 10

WAIVER OF TRIAL BY JURY

     10.1. Waiver of Trial by Jury. Each party waives its right to a jury trial in any
court action arising between the parties, whether under this. Agreement or otherwise related to
this Agreement, and whether made by claim, counterclaim, third party claim or otherwise. If for
any reason the jury waiver is held to be unenforceable, the parties agree to binding arbitration
under the applicable commercial rules of the American Arbitration Association and 9 U.S.C. § 1, et
seq. Any arbitration will be subject to the Governing Law provision set forth in Section 12.10.
Discovery in the arbitration will be governed by the Federal Rules of Civil Procedure. The
determination of the arbitrator shall be final, binding and conclusive upon the parties and
enforceable in a court of competent jurisdiction. The agreement of each Party to waive its right
to a jury trial will be binding on its successors and assignees.

ARTICLE 11

CERTAIN DEFINITIONS

     11.1. Defined Terms. For purposes of this Agreement, certain terms used in this
Agreement and not otherwise defined herein shall have the meanings designated below:

     “Accounts Receivable” means all customer accounts receivable with respect to goods
sold and/or services provided to Customers by Seller and its Affiliates prior to the Closing Date.

     “Affiliate” of a specified entity means any legal entity directly or indirectly controlling,
controlled by, or under the common control with the specified entity. The term “control”
(including “controlling,” “controlled by” and “under common control with”) of an entity means the
possession, directly or indirectly, of the power to (i) vote 50% or more of the voting securities
or other voting interests of such person, or (ii) direct or cause the direction of the management
and policies of such entity, whether through the ownership of voting shares, by contract or
otherwise.

     “Agreement” means this Agreement for Purchase and Sale of Customers Line’s, together with all
Schedules and Exhibits hereto, as any of the foregoing may be amended, modified or supplemented in
writing from time to time.

     “Assumed Liabilities” means any and all of the following liabilities and obligations
of Seller or its Affiliates.

     (a) to the extent arising out of events occurring after the Closing Date, all liabilities and
obligations of Seller or their Affiliates arising under the Customer Contracts and the Permits
pursuant to Seller’s existing Tariffs;

     (b) All liabilities and obligations arising out of litigation and claims relating to the
Customer Contract arising out of events occurring after the Closing Date.

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     “Assumption Agreement” is defined in Section 1.2.

     “Business” means Seller’s business of providing wireline telecommunication services to the
Customers associated with the Customer Access Lines to be transferred pursuant to the Agreement.

     “Buyer” is defined in the preamble of this Agreement.

     “Buyer’s Knowledge” means the actual knowledge of Buyer after reasonable
investigation.

      “Closing” is defined in Section 3.1.

     “Closing Date” is defined in Section 3.1.

     “Code” is defined in Section 1.5.

     “Customer” means each end user identified on the applicable Customer Contract (or as
identified in the Seller’s or Buyer’s databases) of the telecommunication services provided by
Seller, prior to Closing, and Buyer, following the Closing.

     “Customer Access Line” means each customer access line as set forth on Exhibit F, all
of which are Customer Access Lines within the nine (9) state BellSouth territory.

     “Customer Contracts” means all contracts, agreements, instruments and other legally
binding arrangements (and all amendments and modifications thereto) relating to the provision of
wireline telecommunication service by Seller to a Customer that is associated with a Customer
Access Line that is transferred to Buyer pursuant to this Agreement, and all such contracts,
agreements and instruments entered into by a Seller in the ordinary course of the Business between
the date of this Agreement and the Closing Date relating to the provision of services to the
Customers.

     “Encumbrances” means any and all security interests, liens, charges or similar restrictions,
except for (i) liens for taxes not yet due and payable or that are being contested in good faith,
(ii) liens of workers, carriers or materialmen or similar liens arising by operation of Law in the
ordinary course of the Business in respect of obligations that are not yet due and payable or that
are being contested in good faith, and (iii) any liens, defects or irregularities that are the
result of Buyer’s or its representative’s actions.

     “Excluded Assets” means, any of the following:

     (a) all assets, properties and rights of Seller and its Affiliates that are not used
exclusively in connection with the Business, including assets, properties and rights associated
with service to customers of other lines of business of Seller and its affiliates that are not the
subject of this Agreement;

     (b) this Agreement and all rights of Seller under this Agreement;

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     (c) the Retained Books and Records;

     (d) all cash or cash equivalents of Seller and its Affiliates, including, without limitation,
checks or drafts received by the Business for which Seller has not received funds on or prior to
the Closing Date, certificates of deposit, time deposits and marketable securities; and all of the
right, title and interest in the bank accounts, safe deposit boxes and checking accounts of either
Seller, its Affiliates and the Business;

     (e) all rights to refunds of all federal, state, local and foreign taxes relating to Seller or
its Affiliates, the Transferred Assets or the Business to the extent such taxes relate to a period
ending on or prior to the Closing Date and were not paid or assumed by Buyer;

     (f) all Accounts Receivable, inventory and fixed assets of Seller and its Affiliates,

     (g) all real property and interests in real property owned by Seller and its Affiliates; and

     (h) all policies of insurance and fidelity, surety or similar bonds and the coverages
afforded thereby of a Seller and its Affiliates, and any and all claims or rights thereunder;

     “FCC” means the Federal Communications Commission or any other Federal agency which succeeds
in whole or in part to its jurisdiction so far as the subject matter of this Agreement is
concerned.

     FCC Approval” means the approval of the FCC to completion of the transactions
contemplated hereunder.

     “Governmental Approval” means the PUC Approval, the FCC Approval and all consents and
approvals of, filings and registrations with, and notifications to any other Governmental
Authority necessary to consummate the transaction contemplated by this Agreement.

     “Governmental Authority” means any United States, state or local governmental entity
or municipality or subdivision thereof or any authority, department, commission, board, bureau,
agency, court or instrumentality thereof.

     “Law” or “Laws” means any statute, rule, regulation or ordinance of any Governmental
Authority.

     “Material Adverse Effect” means a materially adverse effect on the Business or the
Transferred Assets, taken as a whole, other than effects relating to or arising from (i) the
execution of this Agreement, (ii) the United States economy generally or (iii) events or
circumstances that affect the Business in the same manner and to the same extent as other
businesses in the industry generally.

     “Permits” means all permits of any Governmental Authority relating to the Transferred Assets.

     “Person” means any individual, sole proprietorship, partnership, limited liability company,
joint venture, trust, unincorporated association, corporation, entity or government

19

 

(whether federal, foreign, state, county, city or otherwise, including any instrumentality,
division, agency or department thereof).

     “Post-Closing Purchase Price Adjustment” is defined in Section 1.3.2.

     “PUC” means the Public Utility Commissions or any state’s equivalent regulatory body.

     “PUC Approval” means the approval of a PUC to completion of the transactions contemplated
hereunder.

     “Proration Periods” is defined in Section 1.4.

     “Purchase Price” is defined in Section 1.3.

     “Purchase Price Adjustment” is defined on Section 1.3.3.

     “Retained Books and Records” means, collectively, all corporate records and stock
books of Seller and their Affiliates, the general ledger, all records required by Law to be
retained by Seller and all books and records relating to (i) tax returns and tax records; (ii) the
Excluded Assets; (iii) the organization, maintenance and existence of Seller as a corporation or
partnership; and (iv) attorney work product; provided that where reasonably necessary or prudent,
Retained Books and Records shall also include copies of the Transferred Books and Records.

     “Retained Liabilities” is defined in Section 1.2 of this Agreement.

     “Seller” is defined in the preamble of this Agreement.

     “Seller’s Knowledge” means the actual knowledge of either Seller after reasonable
investigation.

     “Transactions” means the purchase and sale of the Transferred Assets as contemplated by this
Agreement and all other transactions contemplated by the Transaction Documents.

     “Transaction Documents” means this Agreement and each document to be executed in
connection with the Closing of the Transactions. When used with respect to Seller or Buyer,
“Transaction Documents” means this Agreement and such documents as are required to be executed by
such party with respect to the Closing of the Transactions.

     “Transfer Taxes” means any and all federal, state, county, municipal, foreign or other taxing
jurisdiction sales, use, transfer, gross receipts, consumer levy, privilege or similar taxes,
duties, excises or governmental charges, including any penalties and interest thereon, arising out
of the sale of the Transferred Assets by Seller to Buyer hereunder.

     “Transferred Assets” means all of Seller’s right, title and interest in and to the
following assets:

     (a) the Customer Contracts and the associated Customer Access Lines, provided, however,
that if the parties proceed with a partial closing pursuant to Section 3.5 of this

20

 

Agreement, this definition of Transferred Assets shall include only those Customer Access Lines
identified on the Partial Closing Schedule and the Customer Contracts relating thereto;

     (b) the Transferred Books and Records; and

     (c) With respect to Customer Access lines and Customer contracts, Transferred Assets
shall be limited to:

	 	(i)	 	those which the applicable Governmental Authority will
permit to be transferred to Buyer without a written and executed Letter of
Authority; and
	 
	 	(ii)	 	those for which Seller has obtained prior to the Closing
Date a written and executed Letter of Authority.

     but excluding from the foregoing the Excluded Assets.

     “Transferred Books and Records” means Seller’s customer lists and records, accounts
and billing records, plans, blueprints, specifications, drawings, surveys and engineering reports
that relate to the operation of the Business, except for the Retained Books and Records.

     “Transition” means the transfer of Customers and the related Customer Access Lines from Seller
to Buyer.

     11.2. Interpretation. Unless the context otherwise requires, (i) all references to
Sections, Articles or Schedules are to Sections, Articles or Schedules of or to this Agreement,
(ii) the term “primarily” means primarily or exclusively, and (iii) the term “including” means
including without limitation.

ARTICLE 12

GENERAL

     12.1. Time of the Essence. Time is of the essence with respect to each and
every term, condition, obligation and provision hereof, and failure to timely perform or remedy
any of the terms, conditions, obligations or provisions hereof by either party shall constitute a
material breach of and a non-curable default under this Agreement by the party so failing to
perform (but which may be waived by the non-breaching party).

     12.2. Notices. All notices hereunder will be in writing and served by certified mail,
return receipt requested. Notice shall be deemed to have been duly given on the earlier of the
date received or the fifth business day following the date mailed by the notifying party using
first class mail, postage prepaid. Notices shall be sent as follows:

     If to Seller:

Trinsic Communications, Inc. 
100
Brookwood Road

21

 

Atmore, AL 36502 
Attention:
John Lines 

Facsimile: 251-368-1314

     with a required copy (which shall not constitute notice) to:

Schiff
Hardin LLP 
6600 Sears
Tower
 Chicago, IL 60606

Attention: Richard T. Miller

Facsimile: 312-258-5700

     If to Buyer:

Access Integrated Networks, Inc.

4885 Riverside Drive

Suite 107

Macon, Georgia 31210

Attn: Vincent M. Oddo

Facsimile: 478-405-3130

     with a required copies (which shall not constitute notice) to:

Stone
& Baxter, LLP
 Fickling &
Company Building 
577 Mulberry
Street, Suite 800  

Macon, Georgia
31201 

Attn: D. Mark Baxter

Facsimile: 478-750-9899

     12.3. Waivers. No failure of a party to enforce a provision of this Agreement will be
construed as a general or a specific waiver of that provision, or of a party’s right to enforce
that provision, or of a party’s right to enforce any other provision of this Agreement. No waiver
of any breach of any covenant or other provision herein contained shall be deemed to be a waiver of
any preceding or succeeding breach, or of any other covenant or provision herein contained. No
extension of time for performance of any obligation or act shall be deemed to be an extension of
the time for performance of any other obligation or act.

     12.4. Payment of Expenses. Except as otherwise provided herein, each of the parties
shall pay all costs and expenses incurred or to be incurred by it in the negotiation and
preparation of this Agreement and in consummating and carrying out the Transactions, whether or
not the Transactions are consummated.

     12.5. Headings. The subject headings of the sections and subsections of this
Agreement are included only for purposes of convenience, and shall not affect the construction or
interpretation of any of its provisions.

22

 

     12.6. Counterparts; Facsimile. This Agreement may be executed in counterparts, each of
which shall be deemed an original and, when each of the parties hereto has executed and delivered a
counterpart to the other party, this Agreement shall be binding and effective even though no single
counterpart has been executed by both of the parties. This Agreement may be executed and delivered
by facsimile transmission, and a facsimile of this Agreement or of a signature of a party will be
effective as an original.

     12.7. Successors and Assigns. This Agreement shall be binding on and shall inure to
the benefit of the parties hereto and their permitted successors and assigns; provided, however,
that no assignment shall be permitted except as provided for in this Agreement.

     12.8. Assignment. The rights and obligations of the parties to this Agreement or any
interest in this Agreement shall not be assigned, transferred, hypothecated, pledged or otherwise
disposed of without the prior written consent of the non-assigning party, which consent may be
withheld in such party’s sole discretion; provided, however, that Buyer or Seller may, without the
prior consent of the other party, assign its rights under this Agreement to any Affiliate.

     12.9. Additional Instruments and Assistance. Each party hereto shall from time to
time execute and deliver such further instruments, provide additional information and render such
further assistance as the other party or its counsel may reasonably request in order to complete
and perfect the Transactions.

     12.10. Governing Law. To the extent that federal law does not apply exclusively, this
Agreement shall be construed in accordance with the laws of the State of Delaware (without
reference to the choice of law provisions of any jurisdiction).

     12.11. Severability. If any term or provision of this Agreement is held or deemed to
be invalid or unenforceable when applied to any person or circumstance, the remaining provisions
of this Agreement and the enforcement of such provision to other persons or circumstances shall
not be affected thereby, and each provision of this Agreement shall be enforced to the fullest
extent allowed by Law.

     12.12. Amendments. This Agreement may not be modified, changed, supplemented or
terminated, nor may any obligations hereunder be waived by a party, except by written instrument
signed by the party to be charged or by its agent duly authorized in writing or as otherwise
expressly permitted herein.

     12.13. No Construction Against the Drafting Party. Each party hereto acknowledges
that such party and its counsel have reviewed this Agreement and participated in its drafting.
This Agreement shall not be construed against either party for having prepared it.

     12.14. Entire Agreement; No Third Party Beneficiaries. This Agreement, including all
schedules and exhibits attached hereto, constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof, and there are no agreements, understandings,
warranties or representations between the parties with respect to such subject matter except as
set forth or noted herein. The parties do not intend to confer any benefit hereunder on any
person, firm or corporation other than the parties hereto.

23

 

     IN WITNESS WHEREOF, the parties to this Agreement for Purchase and Sale of Customer Access
Lines have executed it as of the date first above written.

	 	 	 	 	 
	 	 	BUYER:
	 
	 	 	 	 
	 	 	ACCESS INTERGRATED 

NETWORKS,
INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SELLER:
	 
	 	 	 	 
	 	 	TRINSIC COMMUNICATIONS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

24

 

EXHIBITS

and

SCHEDULES

to

AGREEMENT

For

PURCHASE AND SALE

of

CUSTOMER ACCESS LINES

DATED AS OF FEBRUARY 10, 2006

Between

TRINSIC COMMUNICATIONS, INC.

And

ACCESS INTERGRATED NETWORKS, INC.

 

 

Exhibit A      Assumption Agreement

ASSIGNMENT AND ASSUMPTION AGREEMENT

     This Assignment and Assumption Agreement (this “Assignment and Assumption
Agreement”) is made and entered into on
                                         _________, 2006,
between Trinsic Communications,
Inc., a Delaware Corporation (“Assignor”) and Access Integrated Networks, Inc., a Georgia
Corporation (“Assignee”).

     WHEREAS, Assignor and Assignee are parties to that certain Agreement for Purchase
and Sale of Customer Access Lines dated as of
February         , 2006 (the “Purchase Agreement”),
between Assignor and Assignee;

     WHEREAS, pursuant to Section 1.1 of the Purchase Agreement, Assignor has agreed to sell and
the Assignee has agreed to purchase all of the Assignor’s right, title and interest in the
Transferred Assets (as defined in the Purchase Agreement), including the Customer Contracts and
Customer Access Lines (as defined in the Purchase Agreement) which include the Customer Access
Lines as set for on Exhibit F of the Purchase Agreement; and

     WHEREAS, pursuant to Section 1.2 of the Purchase Agreement, Assignor has agreed to assign to
Assignee and Assignee has agreed to assume, perform and discharge when due the Assumed Liabilities
(as defined in the Purchase Agreement).

     NOW, THEREFORE, for and in consideration of the premises and the mutual covenants contained
herein and in the Purchase Agreement, and for other good and valuable consideration, the receipt,
adequacy and legal sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:

     1. Capitalized Terms. Capitalized terms used but not defined herein shall
have the meanings given such terms in the Purchase Agreement.

     2. Assignment. Effective as of the Closing Date, Assignor hereby assigns, conveys,
sells and transfers to Assignee (i) all of Assignor’s right, title and interest in the Transferred
Assets, including the Customer Contracts and Customer Access Lines, and (ii) all of the Assumed
Liabilities.

     3. Assumption. Assignee hereby accepts the foregoing assignment and assumes and
agrees to observe and perform all duties and obligations of Assignor or its affiliates arising
under the Assumed Liabilities. Assignee assumes no liability of Assignor except the Assumed
Liabilities. The parties hereto agree that any and all such liabilities, including the Retained
Liabilities, shall remain the sole responsibility of Assignor.

     4. Terms of the Purchase Agreement. The terms of the Purchase Agreement, including
but not limited to the parties’ representations, warranties, covenants, and indemnities relating
to the Assumed Liabilities, are incorporated herein by this reference. Assignor and Assignee
acknowledge and agree that the representations, warranties, covenants and indemnities

 

 

contained in the Purchase Agreement shall not be superseded by this Assignment and Assumption
Agreement but shall remain in full force and effect to the full extent provided therein. In the
event of any conflict or inconsistency between the terms of the Purchase Agreement and the terms of
this Agreement, the terms of the Purchase Agreement shall govern.

     5. Further Actions. Each of the parties hereto covenants and agrees, at its own
expense, to execute and deliver, at the request of the other party hereto, such further instruments
of transfer and assignment and to take such other action as such other party may reasonably request
to more effectively consummate the assignments and assumptions contemplated by this Assignment and
Assumption Agreement.

     6. Benefit and Assignment. This Assignment and Assumption Agreement shall be
binding upon and inure to the benefit of the parties hereto, and their respective successors and
assigns.

     7. Counterparts. This Assignment and Assumption Agreement may be signed in any number
of counterparts with the same effect as if the signature on each such counterpart were upon the
same instrument.

     8. Choice of Law. This Assignment and Assumption Agreement shall be interpreted
according to the laws of the State of Delaware, excluding any choice of law provisions or conflict
of law principles which would require reference to the laws of any other jurisdiction.

[SIGNATURE PAGE TO FOLLOW]

 

 

qq

     IN WITNESS WHEREOF, the parties have executed this Assignment and Assumption Agreement as of
the date first above written.

ASSIGNOR:

TRINSIC COMMUNICATIONS, INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

ASSIGNEE:

ACCESS
INTERGRATED 

NETWORKS,
INC.

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Its:
	 	 	 	 
	 

	 	 

	 	 

 

 

Exhibit B

States Included as “On-Net” Lines

	 	 	 
	State	 	CLLI/CO
	AL

	 	ALBSALMA
	AL

	 	ALVLALMA
	AL

	 	ANTNALMT
	AL

	 	ANTNALOX
	AL

	 	ATHNALMA
	AL

	 	BRHMALVA
	AL

	 	BSMRALHT
	AL

	 	CLMNALFA
	AL

	 	CLMNALMA
	AL

	 	DCTRALMT
	AL

	 	DORAALMA
	AL

	 	FLRNALMA
	AL

	 	FTPYALMA
	AL

	 	GDSDALMT
	AL

	 	GTVLALNM
	AL

	 	HNVIALLW
	AL

	 	HNVIALMT
	AL

	 	HNVIALPW
	AL

	 	HNVIALUN
	AL

	 	HRTSALNM
	AL

	 	JSPRALMT
	AL

	 	KLLNALMA
	AL

	 	MDSNALNM
	AL

	 	MOLTALNM
	AL

	 	PHCYALMA
	AL

	 	RLVLALMA
	AL

	 	RRVLALMA
	AL

	 	SHFDALMT
	AL

	 	SYLCALMT
	AL

	 	TLDGALMA
	AL

	 	TSCLALMT
	AL

	 	TSCLALNO
	FL

	 	BCRTFLBT
	FL

	 	BCRTFLMA
	FL

	 	BCRTFLSA
	FL

	 	CCBHFLMA
	FL

	 	COCOFLMA
	FL

	 	COCOFLME
	FL

	 	DLBHFLMA
	FL

	 	DRBHFLMA
	FL

	 	EGLLFLBG
	FL

	 	EGLLFLIH
	FL

	 	FRBHFLFP
	FL

	 	FTLDFLCR
	FL

	 	FTLDFLCY
	FL

	 	FTLDFLJA

 

 

	 	 	 
	State	 	CLLI/CO
	FL

	 	FTLDFLMR
	FL

	 	FTLDFLOA
	FL

	 	FTLDFLPL
	FL

	 	FTLDFLSU
	FL

	 	FTPRFLMA
	FL

	 	GCSPFLCN
	FL

	 	JCVLFLSJ
	FL

	 	JCVLFLWC
	FL

	 	LKCYFLMA
	FL

	 	MLBRFLMA
	FL

	 	ORLDFLAP
	FL

	 	ORLDFLCL
	FL

	 	ORLDFLMA
	FL

	 	ORLDFLPC
	FL

	 	ORLDFLPH
	FL

	 	ORPKFLMA
	FL

	 	ORPKFLRW
	FL

	 	PLTKFLMA
	FL

	 	PMBHFLCS
	FL

	 	PMBHFLFE
	FL

	 	PMBHFLMA
	FL

	 	PNVDFLMA
	FL

	 	SNFRFLMA
	FL

	 	STAGFLMA
	FL

	 	STAGFLSH
	FL

	 	STRTFLMA
	FL

	 	TTVLFLMA
	FL

	 	VRBHFLMA
	FL

	 	WPBHFLAN
	FL

	 	WPBHFLGA
	FL

	 	WPBHFLGR
	FL

	 	WPBHFLHH
	FL

	 	WPBHFLLE
	FL

	 	WPBHFLRB
	FL

	 	WPBHFLRP
	GA

	 	AGSTGAAU
	GA

	 	AGSTGAFL
	GA

	 	AGSTGAMT
	GA

	 	AGSTGATH
	GA

	 	ALBYGAMA
	GA

	 	ALPRGAMA
	GA

	 	AMRCGAMA
	GA

	 	ATHNGAMA
	GA

	 	BRWKGAMA
	GA

	 	BUFRGABH
	GA

	 	CDTWGAMA
	GA

	 	CLHNGAES
	GA

	 	CLMBGAMT
	GA

	 	CLMBGAMW
	GA

	 	CMNGGAMA

 

 

	 	 	 
	State	 	CLLI/CO
	GA

	 	CNYRGAMA
	GA

	 	CORDGAMA
	GA

	 	CRTNGAMA
	GA

	 	CRVLGAMA
	GA

	 	CVTNGAMT
	GA

	 	DBLNGAMA
	GA

	 	ETTNGAES
	GA

	 	FRSYGAMA
	GA

	 	FTVYGAMA
	GA

	 	GRFNGAMA
	GA

	 	GSVLGAMA
	GA

	 	JCSNGAMA
	GA

	 	MACNGAGP
	GA

	 	MACNGAMT
	GA

	 	MACNGAVN
	GA

	 	MCDNGAGS
	GA

	 	MDSNGAMA
	GA

	 	NWNNGAMA
	GA

	 	POLRGAMA
	GA

	 	ROMEGATL
	GA

	 	RSWLGAMA
	GA

	 	SNVLGAES
	GA

	 	SSISGAES
	GA

	 	SVNHGABS
	GA

	 	SVNHGADE
	GA

	 	SVNHGAGC
	GA

	 	SVNHGAWB
	GA

	 	SVNHGAWI
	GA

	 	SYLVGAES
	GA

	 	TFTNGAMA
	GA

	 	THSNGAMA
	GA

	 	VDALGAMA
	GA

	 	VLDSGAMA
	GA

	 	WRRBGAMA
	GA

	 	WRTNGAMA
	LA

	 	ABVLLAMA
	LA

	 	BTRGLAGW
	LA

	 	BTRGLAIS
	LA

	 	BTRGLAMA
	LA

	 	BTRGLASB
	LA

	 	BTRGLASW
	LA

	 	BTRGLAWN
	LA

	 	CRNCLAMA
	LA

	 	CRWYLAMA
	LA

	 	CVTNLAMA
	LA

	 	DNSPLAMA
	LA

	 	HMNDLAMA
	LA

	 	HOUMLAMA
	LA

	 	KNNRLABR
	LA

	 	KNNRLAHN

 

 

	 	 	 
	State	 	CLLI/CO
	LA

	 	LFYTLAMA
	LA

	 	LFYTLAVM
	LA

	 	MINDLAMA
	LA

	 	MONRLAMA
	LA

	 	NWIBLAMA
	LA

	 	NWORLAMA
	LA

	 	NWORLAMT
	LA

	 	NWORLARV
	LA

	 	NWORLASW
	LA

	 	OPLSLATL
	LA

	 	PLQMLAMA
	LA

	 	SHPTLAMA
	LA

	 	SLIDLAMA
	LA

	 	THBDLAMA
	LA

	 	ZCHRLAMA
	MS

	 	ABRDMSES
	MS

	 	BTVLMSDS
	MS

	 	CLEVMSMA
	MS

	 	CLMBMSMA
	MS

	 	CRNTMSMA
	MS

	 	CSDLMSMA
	MS

	 	GNVLMSMA
	MS

	 	GNWDMSMA
	MS

	 	GRNDMSMA
	MS

	 	HLSPMSMA
	MS

	 	HRNNMSDS
	MS

	 	HTBGMSMA
	MS

	 	HTBGMSWE
	MS

	 	JCSNMSCP
	MS

	 	JCSNMSMB
	MS

	 	JCSNMSPC
	MS

	 	JCSNMSRW
	MS

	 	LARLMSMA
	MS

	 	MDSNMSES
	MS

	 	OXFRMSMA
	MS

	 	SKVLMSMA
	MS

	 	SNTBMSPS
	MS

	 	SOHNMSDC
	MS

	 	TUNCMSMA
	MS

	 	TUPLMSMA
	MS

	 	WSPNMSMA
	NC

	 	AHVLNCBI
	NC

	 	AHVLNCOH
	NC

	 	AHVLNCOT
	NC

	 	ARDNNCCE
	NC

	 	CARYNCCE
	NC

	 	CHRLNCBO
	NC

	 	CHRLNCCA
	NC

	 	CHRLNCCE
	NC

	 	DVSNNCPO

 

 

	 	 	 
	State	 	CLLI/CO
	NC

	 	GSTANCSO
	NC

	 	HNVLNCCH
	NC

	 	RLGHNCGL
	NC

	 	RLGHNCHO
	NC

	 	RLGHNCMO
	NC

	 	RLGHNCSI
	NC

	 	SHLBNCMA
	SC

	 	AIKNSCMA
	SC

	 	ARSNSCMA
	SC

	 	CHTNSCDP
	SC

	 	CHTNSCDT
	SC

	 	CHTNSCNO
	SC

	 	CLMASCCH
	SC

	 	CLMASCSA
	SC

	 	CLMASCSN
	SC

	 	CLMASCSW
	SC

	 	ESLYSCMA
	SC

	 	GFNYSCMA
	SC

	 	GNVLSCCH
	SC

	 	GNVLSCDT
	SC

	 	GNVLSCWR
	SC

	 	GRERSCMA
	SC

	 	MNPLSCES
	SC

	 	NAGSSCMA
	SC

	 	ORBGSCMA
	SC

	 	SENCSCMA
	SC

	 	SPBGSCBS
	SC

	 	SPBGSCMA
	SC

	 	SPBGSCVW
	SC

	 	SUVLSCMA
	SC

	 	WMTNSCPW
	TN

	 	ATHNTNMA
	TN

	 	BLVRTNMA
	TN

	 	BVWLTNMA
	TN

	 	CHTGTNBR
	TN

	 	CHTGTNDT
	TN

	 	CHTGTNRO
	TN

	 	CLEVTNMA
	TN

	 	CLMATNMA
	TN

	 	CLTNTNMA
	TN

	 	CLVLTNMA
	TN

	 	CMDNTNMA
	TN

	 	CRVLTNMA
	TN

	 	CVTNTNMT
	TN

	 	DKSNTNMT
	TN

	 	DYBGTNMA
	TN

	 	DYTNTNMA
	TN

	 	FYVLTNMA
	TN

	 	GALLTNMA
	TN

	 	GDVLTNMA

 

 

	 	 	 
	State	 	CLLI/CO
	TN

	 	GTBGTNMT
	TN

	 	HDVLTNMA
	TN

	 	HIMNTNMA
	TN

	 	HMBLTNMA
	TN

	 	HNSNTNMT
	TN

	 	JCSNTNMA
	TN

	 	JCSNTNNS
	TN

	 	KGTNTNMT
	TN

	 	KNVLTNFC
	TN

	 	KNVLTNMA
	TN

	 	KNVLTNWH
	TN

	 	KNVLTNYH
	TN

	 	LBNNTNMA
	TN

	 	LNCYTNMA
	TN

	 	LODNTNMA
	TN

	 	LRBGTNMA
	TN

	 	LWBGTNMA
	TN

	 	LXTNTNMA
	TN

	 	MAVLTNMA
	TN

	 	MCKNTNMA
	TN

	 	MDVITNMT
	TN

	 	MILNTNMA
	TN

	 	MMPHTNBA
	TN

	 	MMPHTNCT
	TN

	 	MMPHTNEL
	TN

	 	MMPHTNGT
	TN

	 	MMPHTNMA
	TN

	 	MMPHTNOA
	TN

	 	MMPHTNSL
	TN

	 	MNCHTNMA
	TN

	 	MRBOTNMA
	TN

	 	MRTWTNMA
	TN

	 	NWPTTNMT
	TN

	 	OKRGTNMT
	TN

	 	PARSTNMA
	TN

	 	PLSKTNMA
	TN

	 	RPLYTNMA
	TN

	 	SHVLTNMA
	TN

	 	SLMRTNMT
	TN

	 	SOVLTNMT
	TN

	 	SVNHTNMT
	TN

	 	SVVLTNMT
	TN

	 	SWTWTNMT
	TN

	 	TLLHTNMA
	TN

	 	TRTNTNMA
	TN

	 	WNCHTNMA

 

 

Exhibit C

Sellers Closing Certificates

TRINSIC COMMUNICATIONS, INC.

CLOSING CERTIFICATE

     Reference is made to the Agreement for Purchase and Sale of Customer Access Lines dated as of
February 10, 2006 (the “Agreement”), between Trinsic Communications, Inc., a Delaware Corporation
(“Seller”) and Access Integrated Networks, Inc., a Georgia Corporation (“Buyer”) All capitalized
terms used herein without specific designation shall have the meaning set forth in the Agreement.

     Pursuant to Section 3.2.2 of the Agreement, the undersigned hereby certifies that:

     1. All representations and warranties of Seller contained in the Agreement are true and
correct in all material respects as of the date hereof, except for those representations and
warranties that are made expressly as of an earlier date, which were true and correct as of the
date made.

     2. Seller has performed and complied with all covenants and agreements required or
contemplated by the Transaction Documents to be performed by Seller on or prior to the Closing
Date.

 

 

     IN WITNESS WHEREOF, the undersigned have each signed this certificate.

Dated:                                                             , 2006

	 	 	 	 	 
	 	 	TRINSIC COMMUNICATIONS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit D     Buyer Closing Certificate

ACCESS INTERGRATED NETWORKS, INC.

CLOSING CERTIFICATE

     Reference is made to the Agreement for Purchase and Sale of Customer Access Lines dated as of
February 10, 2006 (the “Agreement”), between Trinsic Communications, Inc., a Delaware Corporation
(“Seller”) and Access Integrated Networks, Inc., a Georgia Corporation (“Buyer”) All capitalized
terms used herein without specific designation shall have the meaning set forth in the Agreement.

     Pursuant to Section 3.3.2 of the Agreement, the undersigned hereby certifies that:

     1. All representations and warranties of Buyer contained in the Agreement are true
and correct in all material respects as of the date hereof, except for those representations
and warranties that are made expressly as of an earlier date, which were true and correct as of
the date made.

     2. Buyer has performed and complied with all covenants and agreements required or
contemplated by the Transaction Documents to be performed by Buyer on or prior to the Closing
Date.

 

 

     IN WITNESS WHEREOF, the undersigned have each signed this certificate.

Dated:                                                             ,2005

	 	 	 	 	 
	 	 	ACCESS INTERGRATED NETWORKS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

Exhibit E
      Press Release

	 	 	 	 	 
	FOR
IMMEDIATE RELEASE

	 	Contact:
	 	Andrew Graham
	 

	 	 	 	Corporate Counsel
	 

	 	 	 	agraham@trinsic.com
	 

	 	 	 	(813) 233-4567

TRINSIC
AGREES TO SELL LOCAL ACCESS LINES

TAMPA, Fl. — (February 13, 2006) — Trinsic, Inc. (OTCBB: TRIM), a leading provider of traditional
and IP telephony services, announced today it has entered into a definitive agreement to sell
approximately 43,000 local access lines to Access Integrated Networks, Inc., a privately-held
telephone company headquartered in Macon, Georgia. The lines represent substantially all of
Trinsic’s business and residential lines within BellSouth territories, including Alabama, Florida,
Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina and Tennessee. Lines
serving multi-unit enterprises were excluded from the sale. Trinsic said it expects to close the
sale within several months pending regulatory approvals. Access Integrated Networks also agreed
to utilize Trinsic’s voicemail platform for at least one year after the sale.

Trey Davis, Trinsic chief executive officer, remarked “We’re delighted to sign this agreement.
Access Integrated Networks is a fine company that already has a large customer base in this region.
The transition will be nearly seamless to end users. The sale will allow us to focus on territories
where we have a higher density of customers and higher margins.”

Forward-Looking
Statements

This news release contains forward-looking statements made pursuant to the Private Securities
Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” and “projects”
signify forward-looking statements. Forward-looking statements are not guarantees of future results
and conditions but rather are subject to various risks and uncertainties. Some of these risks and
uncertainties are identified in Trinsic’s periodic filings with the Securities and Exchange
Commission. Should any risks or uncertainties develop into actual events, these developments could
have material adverse effects on Trinsic’s business, financial condition, and results of
operations. Trinsic assumes no obligation to update these forward-looking statements.

About
Trinsic

Trinsic offers consumers and businesses traditional and IP telephony services. Trinsic’s products
include proprietary services such as Web-accessible, voice-activated calling and messaging features
that are designed to meet customers’ communications needs intelligently and intuitively. Trinsic is
a member of the Cisco Powered Network Program and makes its services available on a wholesale basis
to other communications and utility companies, including Sprint. Trinsic, Inc. changed its name
from Z-Tel Technologies, Inc. on January 3, 2005. For more information about Trinsic and its
innovative services, please visit www.trinsic.com.

-MORE-

 

 

About Access Integrated Networks:

Access Integrated Networks provides a telecommunications alternative to small business customers in
more than 1,000 communities in the Southeast. Founded in 1996 and headquartered in Macon, Ga.,
Access is a profitable, privately held Competitive Local Exchange Carrier (CLEC). For more
information about Access Integrated Networks, please visit www.accesscomm.com.

-END-

 

 

Schedule 3.2.3

List of Customer Access Lines

See Attached Disk

 

 

Schedule 5.1.3

Required Approvals

None

 

 

Schedule 5.2.4

Required Approvals

None<PAGE>

                                                                     Exhibit 4.6

                                SANTANDER BANCORP

                                       TO

                          BANCO POPULAR DE PUERTO RICO

                                     TRUSTEE

                                   ----------

                                    INDENTURE

                          DATED AS OF FEBRUARY 28, 2006

                                   ----------

                       JUNIOR SUBORDINATED DEBT SECURITIES

<PAGE>

                               SANTANDER BANCORP

         RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939 AND
                    INDENTURE, DATED AS OF FEBRUARY 28, 2006

<TABLE>
<CAPTION>
TRUST INDENTURE ACT SECTION                                    INDENTURE SECTION
---------------------------                                    -----------------
<S>                                                            <C>
SS. 310(A)(1)...............................................          609
   (A)(2)...................................................          609
   (A)(3)...................................................     NOT APPLICABLE
   (A)(4)...................................................     NOT APPLICABLE
   (A)(5)...................................................          609
   (B)......................................................        608, 610
   (C)......................................................     NOT APPLICABLE
SS. 311(A)..................................................          613
   (B)......................................................          613
SS. 312(A)..................................................      701, 702(A)
   (B)......................................................         702(B)
   (C)......................................................         702(C)
SS. 313(A)..................................................         703(A)
   (B)......................................................         703(A)
   (C)......................................................         703(A)
   (D)......................................................         703(B)
SS. 314(A)..................................................       704, 1004
   (B)......................................................    NOT APPLICABLE
   (C)(1)...................................................          102
   (C)(2)...................................................          102
   (C)(3)...................................................     NOT APPLICABLE
   (D)......................................................     NOT APPLICABLE
   (E)......................................................          102
SS. 315(A)..................................................          601
   (B)......................................................          602
   (C)......................................................          601
   (D)......................................................          601
   (E)......................................................          514
SS. 316(A)..................................................          101
   (A)(1)(A)................................................    104(H), 502, 512
   (A)(1)(B)................................................      104(H), 513
   (A)(2)...................................................     NOT APPLICABLE
   (B)......................................................          508
   (C)......................................................         104(H)
SS. 317(A)(1)...............................................          503
   (A)(2)...................................................          504
   (B)......................................................          1003
SS. 318(A)..................................................          107
   (C)......................................................          107
</TABLE>

----------

     NOTE: THIS RECONCILIATION AND TIE SHALL NOT, FOR ANY PURPOSE, BE DEEMED TO
BE PART OF THE INDENTURE.

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE I - Definitions and Other Provisions of General Application......      1
   Section 101.  Definitions.............................................      1
   Section 102.  Compliance Certificates and Opinions....................     11
   Section 103.  Form of Documents Delivered to Trustee..................     12
   Section 104.  Acts of Holders.........................................     12
   Section 105.  Notices, etc., to Trustee and Company...................     14
   Section 106.  Notice to Holders; Waiver...............................     14
   Section 107.  Conflict with Trust Indenture Act.......................     15
   Section 108.  Effect of Headings and Table of Contents................     15
   Section 109.  Successors and Assigns..................................     15
   Section 110.  Separability Clause.....................................     15
   Section 111.  Benefits of Indenture...................................     15
   Section 112.  Governing Law...........................................     16
   Section 113.  Legal Holidays..........................................     16
   Section 114.  Counterparts............................................     16

ARTICLE II - Debt Security Forms.........................................     16
   Section 201.  Forms Generally.........................................     16
   Section 202.  Form of Trustee's Certificate of Authentication.........     17
   Section 203.  Debt Securities in Global Form..........................     17

ARTICLE III - The Debt Securities........................................     17
   Section 301.  Amount Unlimited; Issuance in Series....................     17
   Section 302.  Denominations...........................................     21
   Section 303.  Execution, Authentication, Delivery and Dating..........     21
   Section 304.  Temporary Debt Securities...............................     24
   Section 305.  Registration; Registration of Transfer and Exchange.....     26
   Section 306.  Mutilated, Destroyed, Lost and Stolen Debt Securities...     29
   Section 307.  Payment of Interest and Additional Interest; Interest
                 Rights Preserved........................................     30
   Section 308.  Persons Deemed Owners...................................     32
   Section 309.  Cancellation............................................     32
   Section 310.  Computation of Interest.................................     33
   Section 311.  Certification by a Person Entitled to Delivery of a
                 Bearer Security.........................................     33
   Section 312.  Judgments...............................................     33
   Section 313.  Deferrals of Interest Payment Dates.....................     33
   Section 314.  Right of Set Off........................................     34
   Section 315.  Agreed Tax Treatment....................................     35

ARTICLE IV - Satisfaction and Discharge..................................     35
   Section 401.  Satisfaction and Discharge of Indenture.................     35
   Section 402.  Application of Trust Money and Eligible Instruments.....     37
   Section 403.  Satisfaction, Discharge and Defeasance of Debt
                 Securities of any Series................................     36

ARTICLE V - Remedies.....................................................     39
   Section 501.  Events of Default.......................................     39
   Section 502.  Acceleration of Maturity; Rescission and Annulment......     40
   Section 503.  Collection of Indebtedness and Suits for Enforcement
                 by Trustee..............................................     41
   Section 504.  Trustee May File Proofs of Claim........................     42
   Section 505.  Trustee May Enforce Claims without Possession of Debt
                 Securities or Coupons...................................     43
</TABLE>

                                        i

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 506.  Application of Money Collected..........................     43
   Section 507.  Limitation on Suits.....................................     43
   Section 508.  Unconditional Right of Holders to Receive Principal,
                 Premium and Interest and to Exchange Debt Securities for
                 Capital Securities; Direct Action by Holders of Capital
                 Trust Securities........................................     44
   Section 509.  Restoration of Rights and Remedies......................     44
   Section 510.  Rights and Remedies Cumulative..........................     45
   Section 511.  Delay or Omission Not Waiver............................     45
   Section 512.  Control by Holders of Debt Securities...................     45
   Section 513.  Waiver of Past Defaults.................................     45
   Section 514.  Undertaking for Costs...................................     46
   Section 515.  Waiver of Stay or Extension Laws........................     46

ARTICLE VI - The Trustee.................................................     47
   Section 601.  Certain Duties and Responsibilities.....................     47
   Section 602.  Notice of Default.......................................     47
   Section 603.  Certain Rights of Trustee...............................     47
   Section 604.  Not Responsible for Recitals or Issuance of Debt
                 Securities..............................................     48
   Section 605.  May Hold Debt Securities or Coupons.....................     48
   Section 606.  Money Held in Trust.....................................     49
   Section 607.  Compensation and Reimbursement..........................     49
   Section 608.  Disqualification; Conflicting Interests.................     49
   Section 609.  Corporate Trustee Required; Eligibility.................     49
   Section 610.  Resignation and Removal; Appointment of Successor.......     50
   Section 611.  Acceptance of Appointment by Successor..................     52
   Section 612.  Merger, Conversion, Consolidation or Succession to
                 Business................................................     53
   Section 613.  Preferential Collection of Claims Against Company.......     53
   Section 614.  Authenticating Agent....................................     53

ARTICLE VII - Holders' Lists and Reports By Trustee and Company..........     54
   Section 701.  Company to Furnish Trustee Names and Addresses of
                 Holders.................................................     54
   Section 702.  Preservation of Information; Communications to Holders..     55
   Section 703.  Reports by Trustee......................................     55
   Section 704.  Reports by Company......................................     55

ARTICLE VIII - Consolidation, Merger, Conveyance, Transfer or Lease......     55
   Section 801.  Company May Consolidate, etc. only on Certain Terms.....     55
   Section 802.  Successor Corporation Substituted.......................     56

ARTICLE IX - Supplemental Indentures.....................................     56
   Section 901.  Supplemental Indentures without Consent of Holders......     56
   Section 902.  Supplemental Indentures with Consent of Holders.........     57
   Section 903.  Execution of Supplemental Indentures....................     59
   Section 904.  Effect of Supplemental Indentures.......................     59
   Section 905.  Conformity with Trust Indenture Act.....................     60
   Section 906.  Reference in Debt Securities to Supplemental
                 Indentures..............................................     60

ARTICLE X - Covenants....................................................     60
   Section 1001. Payment of Principal, Premium and Interest..............     60
   Section 1002. Maintenance of Office or Agency.........................     60
   Section 1003. Money for Debt Securities Payments to Be Held in Trust..     61
   Section 1004. Officers' Certificate as to Default.....................     63
   Section 1005. Waiver of Certain Covenants.............................     63
   Section 1006. Payment of Additional Amounts...........................     63
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                         <C>
   Section 1007. Additional Sums.........................................     64
   Section 1008. Additional Covenants....................................     64

ARTICLE XI - Redemption of Debt Securities...............................     65
   Section 1101. Applicability of Article................................     65
   Section 1102. Election to Redeem; Notice to Trustee...................     65
   Section 1103. Selection by Trustee of Debt Securities to be Redeemed..     66
   Section 1104. Notice of Redemption....................................     66
   Section 1105. Deposit of Redemption Price.............................     67
   Section 1106. Debt Securities Payable on Redemption Date..............     67
   Section 1107. Debt Securities Redeemed in Part........................     68
   Section 1108. Right of Redemption of Debt Securities Initially
                 Issued to an Issuer Trust...............................     68

ARTICLE XII - Sinking Funds..............................................     69
   Section 1201. Applicability of Article................................     69
   Section 1202. Satisfaction of Sinking Fund Payments with Debt
                 Securities..............................................     69
   Section 1203. Redemption of Debt Securities for Sinking Fund..........     69

ARTICLE XIII - Repayment at the Option of Holders........................     70
   Section 1301. Applicability of Article................................     70
   Section 1302. Repayment of Debt Securities............................     70
   Section 1303. Exercise of Option; Notice..............................     70
   Section 1304. Election of Repayment by Remarketing Entities...........     71
   Section 1305. Securities Payable on the Repayment Date................     71

ARTICLE XIV - Exchange of Capital Securities for Debt Securities.........     72
   Section 1401. Applicability of Article................................     72
   Section 1402. Exchange of Capital Securities for Debt Securities at
                 Stated Maturity.........................................     72
   Section 1403. Right of Early Exchange of Capital Securities for Debt
                 Securities..............................................     72
   Section 1404. Notices of Exchange.....................................     73
   Section 1405. Rights and Duties of Holders of Debt Securities to be
                 Exchanged for Capital Securities........................     75
   Section 1406. Election to Exchange....................................     76
   Section 1407. Deposit of Capital Exchange Price.......................     76
   Section 1408. Debt Securities Due on Capital Exchange Date; Debt
                 Securities Exchanged in Part............................     76
   Section 1409. Form of Capital Security Election Form..................     78
   Section 1410. Fractional Capital Securities...........................     78
   Section 1411. Company to Obtain Governmental and Regulatory
                 Approvals...............................................     78
   Section 1412. Taxes on Exchange.......................................     79
   Section 1413. Covenants as to Capital Securities and Secondary
                 Offering................................................     79
   Section 1414. Provision in Case of Consolidation, Merger or Transfer
                 of Assets...............................................     79
   Section 1415. Trustee Not Responsible.................................     80
   Section 1416. Revocation of Obligation to Exchange Capital Securities
                 for Debt Securities.....................................     80
   Section 1417. Optional Securities Funds...............................     80

ARTICLE XV - Securities Funds............................................     81
   Section 1501. Creation of Securities Funds............................     81
   Section 1502. Designations of Securities Funds........................     82
   Section 1503. Covenant of the Company to Obtain Securities Funds......     82
</TABLE>

                                       iii

<PAGE>

<TABLE>
<S>                                                                         <C>
ARTICLE XVI - Meetings of Holders of Debt Securities.....................     83
   Section 1601. Purposes for Which Meetings May Be Called...............     83
   Section 1602. Call, Notice and Place of Meetings......................     83
   Section 1603. Persons Entitled to Vote at Meetings....................     83
   Section 1604. Quorum; Action..........................................     84
   Section 1605. Determination of Voting Rights; Conduct and Adjournment
                 of Meetings.............................................     84
   Section 1606. Counting Votes and Recording Action of Meetings.........     85

ARTICLE XVII - Defeasance................................................     85
   Section 1701. Termination of Company's Obligations....................     85
   Section 1702. Repayment to Company....................................     87
   Section 1703. Indemnity for Eligible Instruments......................     87

ARTICLE XVIII - Subordination of Debt Securities.........................     87
   Section 1801. Debt Securities Subordinate to Senior Debt..............     87
   Section 1802. Trustee and Holders of Debt Securities May Rely on
                 Certificate of Liquidating Agent; Trustee May Require
                 Further Evidence as to Ownership of Senior Debt;
                 Trustee Not Fiduciary to Holders of Senior Debt.........     89
   Section 1803. Payment Permitted If No Default.........................     89
   Section 1804. Trustee Not Charged with Knowledge of Prohibition.......     90
   Section 1805. Trustee to Effectuate Subordination.....................     90
   Section 1806. Rights of Trustee as Holder of Senior Debt..............     90
   Section 1807. Article Applicable to Paying Agents.....................     90
   Section 1808. Subordination Rights Not Impaired by Acts or Omissions
                 of the Company or Holders of Senior Debt................     90

ARTICLE XIX - Conversion of Convertible Securities.......................     91
   Section 1901. Applicability of Article................................     91
   Section 1902. Right to Convert........................................     91
   Exercise of Conversion Privilege; Delivery of Common Stock on
                 Conversion; No Adjustment for Interest or Dividends.....     91
   Section 1904. Cash Payments in Lieu of Fractional Shares..............     92
   Section 1905. Conversion Price........................................     93
   Section 1906. Adjustment to Conversion Price..........................     93
   Section 1907. Effect of Reclassification, Consolidation, Merger or
                 Sale....................................................     96
   Section 1908. Taxes on Shares Issued..................................     97
   Section 1909. Shares to be Fully Paid; Compliance with Governmental
                 Requirements; Listing of Common Stock...................     97
   Section 1910. Trustee Not Responsible.................................     97
   Section 1911. Notice to Holders Prior to Certain Actions..............     97
   Section 1912. Covenant to Reserve Shares..............................     98

EXHIBIT A 1 - [Form of Certificate of Beneficial Ownership by a
              Non-United States Person or by Certain Other Persons]......      1

EXHIBIT A 2 - [Form of Certificate of Status as a Foreign Branch of a
              United States Financial Institution].......................      1

EXHIBIT B - [Form of Certificate to be Given by Euroclear and Cedel S.A.
            in Connection with the Exchange of All or a Portion of a
            Temporary Global Security or to Obtain Interest Prior to
            Exchange]....................................................      1
</TABLE>

                                       iv

<PAGE>

     INDENTURE (the "Indenture") dated as of February 28, 2006 between SANTANDER
BANCORP, a Commonwealth of Puerto Rico corporation (hereinafter called the
"Company"), having its principal place of business at 207 Ponce de Leon Avenue,
San Juan, Puerto Rico 00917, and BANCO POPULAR DE PUERTO RICO,as trustee under
this Indenture, a Commonwealth of Puerto Rico banking corporation (hereinafter
called the "Trustee"), having its Corporate Trust Office at 209 Ponce de Leon
Avenue, San Juan, Puerto Rico 00918.

                             RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured junior
subordinated debentures (herein called the "Debt Securities"), including Debt
Securities issued to evidence loans made to the Company of the proceeds from the
issuance from time to time by one or more statutory business trusts (each an
"Issuer Trust") of undivided preferred beneficial interests in the assets of
such Issuer Trusts (the "Capital Trust Securities") and undivided common
beneficial interests in the assets of such Issuer Trusts (the "Common Trust
Securities" and, together with the Capital Trust Securities, the "Trust
Securities").

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Debt
Securities of any series created and issued on or after the date hereof by the
Holders thereof, it is mutually covenanted and agreed for the equal and
proportionate benefit of all Holders of such Debt Securities or of any such
series, as follows:

                                    ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

     Section 101. Definitions.

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

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

          (2) all other terms used herein which are defined in the Trust
     Indenture Act or by Commission rule or regulation under the Trust Indenture
     Act, either directly or by reference therein, as in force at the date as of
     which this instrument was executed, except as provided in Section 905, have
     the meanings assigned to them therein;

          (3) all accounting terms not otherwise defined herein have the
     meanings assigned to them in accordance with generally accepted accounting
     principles, and, except as otherwise herein expressly provided, the term
     "generally accepted accounting principles" with respect to any computation
     required or permitted hereunder shall mean such accounting principles as
     are generally accepted in the United States and the Commonwealth of Puerto
     Rico at the date of such computation; and

                                        1

<PAGE>

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

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

     "Additional Interest" means the interest, if any, that shall accrue on any
interest on the Debt Securities of any series the payment of which has not been
made on the applicable Interest Payment Date and which shall accrue at the rate
per annum specified or determined as specified in such Debt Security.

     "Additional Sums" has the meaning specified in Section 1007.

     "Additional Taxes" means any additional taxes, duties and other
governmental charges to which an Issuer Trust has become subject from time to
time as a result of a Tax Event.

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

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

     "Bearer Security" means any Debt Security established pursuant to Section
201 which is payable to bearer including, without limitation, unless the context
otherwise indicates, a Debt Security in global bearer form.

     "Board of Directors" means either the board of directors of the Company, or
the executive or any other committee of that board duly authorized to act in
respect hereof.

     "Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of the Company to have been duly adopted by the Board
of Directors and to be in full force and effect on the date of such
certification, and delivered to the Trustee. Where any provision of this
Indenture refers to action to be taken pursuant to a Board Resolution (including
the establishment of any series of the Debt Securities and the forms and terms
thereof), such action may be taken by any committee of the Board of Directors or
any officer or employee of the Company authorized to take such action by a Board
Resolution.

     "Business Day", when used with respect to any Place of Payment or Place of
Capital Exchange, means any day which is not a Saturday or Sunday and which is
not a legal holiday or a day on which banking institutions or trust companies in
that Place of Payment or Place of Capital Exchange are authorized or obligated
by law, regulation or executive order to remain closed or are customarily
closed.

                                        2

<PAGE>

     "Capital Exchange Agent" means the Person or Persons appointed by the
Company to give notices and to exchange Debt Securities of any series for
Capital Securities as specified in Article XIV.

     "Capital Exchange Date", when used with respect to the Debt Securities of
any series, means any date on which such Debt Securities are to be exchanged for
Capital Securities pursuant to this Indenture.

     "Capital Exchange Price", when used with respect to any Debt Security of
any series to be exchanged for Capital Securities, means the amount of Capital
Securities for which such Debt Security is to be exchanged pursuant to this
Indenture or the aggregate sale price of such Capital Securities in the
Secondary Offering for such Debt Security, as the case may be.

     "Capital Securities" means any securities issued by the Company which
consist of any of the following: (i) Common Stock, (ii) Perpetual Preferred
Stock or (iii) securities which at the date of issuance may be issued in
exchange for, or the proceeds from the sale of which may be designated as
Securities Funds or Optional Securities Funds for the payment of the principal
of, "mandatory convertible securities" under applicable regulations of the
Primary Federal Regulator. Capital Securities may have such terms, rights and
preferences as may be determined by the Company.

     "Capital Security Election Form" means a form substantially in the form
included in Section 1409.

     "Capital Trust Securities" has the meaning specified in the first recital
of this Indenture.

     "Capital Treatment Event" means, in respect of any Issuer Trust, the
reasonable determination by the Company (as evidenced by an Officers'
Certificate delivered to the Trustee) that, as a result of the occurrence of any
amendment to, or change (including any announced prospective change) in, the
laws (or any rules or regulations thereunder) of the United States or any
political subdivision thereof or therein or the Commonwealth of Puerto Rico, or
as a result of any official or administrative pronouncement or action or
judicial decision interpreting or applying such laws, rules or regulations,
which amendment or change is effective or such pronouncement, action or decision
is announced on or after the date of the issuance of the Capital Trust
Securities of such Issuer Trust, there is more than an insubstantial risk that
the Company will not be entitled to treat, within 90 days of such determination,
an amount equal to the aggregate Liquidation Amount (as such term is defined in
the related Trust Agreement) of such Capital Trust Securities as "Tier 1
Capital" (or the then equivalent thereof) for purposes of the capital adequacy
guidelines of the Board of Governors of the Federal Reserve System, as then in
effect and applicable to the Company.

     "Clearstream" means Clearstream Banking S.A.

     "Closing Price" has the meaning specified in Section 1906(d).

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

     "Common Trust Securities" has the meaning specified in the first recital of
this Indenture.

                                        3

<PAGE>

     "Common Stock" means, when used with reference to the capital stock of the
Company, the class of stock which, at the date of execution of this Indenture,
is designated as common stock of the Company and stock of any class or classes
into which such common stock or any such other class may thereafter be changed
or reclassified. In case by reason of the operation of Article XIX, the
Convertible Securities shall be convertible into any other shares or other
securities or property of the Company or any other corporation, any reference in
this Indenture to the conversion of Convertible Securities pursuant to Article
XIX shall be deemed to refer to and include conversion of Convertible Securities
into such other shares or other securities or property.

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

     "Company Request" and "Company Order" mean, respectively, except as
otherwise provided in this Indenture, a written request or order signed in the
name of the Company by the Chairman of the Board, a Vice Chairman of the Board,
the President or a Vice President (any references to a Vice President of the
Company herein shall be deemed to include any Vice President of the Company
whether or not designated by a number or word or words added before or after the
title "Vice President"), the Treasurer, an Assistant Treasurer, the Controller,
an Assistant Controller, Secretary or an Assistant Secretary of the Company, or
by another officer of the Company duly authorized to sign by a Board Resolution,
and delivered to the Trustee.

     "Conversion Price" has the meaning specified in Section 1905.

     "Convertible Securities" means any series of Debt Securities that are
designated as such pursuant to Section 301.

     "Corporate Trust Office" means the principal corporate trust office of the
Trustee at which at any particular time its corporate trust business shall be
administered.

     The term "corporation" includes corporations, associations, companies and
business trusts.

     The term "coupon" means any interest coupon appertaining to a Bearer
Security.

     "Debt Securities" has the meaning stated in the first recital of this
Indenture and more particularly means any Debt Securities authenticated and
delivered under this Indenture.

     "Defaulted Interest" has the meaning specified in Section 307.

     "Delaware Trustee" means, with respect to any Issuer Trust, the Person
identified as the "Delaware Trustee" in the related Trust Agreement, solely in
its capacity as Delaware Trustee of such Issuer Trust under such Trust Agreement
and not in its individual capacity, or its successor in interest in such
capacity, or any successor Delaware trustee appointed as therein provided.

     "Depositary" means, with respect to the Debt Securities of any series
issuable or issued in the form of a Global Security, the Person designated as
Depositary by the Company pursuant to Section 301 until a successor Depositary
shall have become such pursuant to the applicable provisions of this Indenture,
and thereafter "Depositary" shall mean or include each person who is then a
Depositary hereunder, and if at any time there is more than one such Person,

                                        4

<PAGE>

"Depositary" as used with respect to the Debt Securities of any such series
shall mean the Depositary with respect to the Debt Securities of that series.

     "Designated Currency" has the meaning specified in Section 312.

     "Distributions," with respect to the Trust Securities issued by an Issuer
Trust, means the amounts payable in respect of such Trust Securities as provided
in the related Trust Agreement and referred to therein as "Distributions."

     "Dollar" or "$" means the coin or currency of the United States of America
as at the time of payment is legal tender for the payment of public and private
debts.

     "Eligible Instruments" means monetary assets, money market instruments and
securities that are payable in Dollars only and essentially risk free as to
collection of principal and interest, including U.S. Government Obligations.

     "Euro" means the single currency of the European Monetary Union as defined
under EC Regulation 1103/97 adopted under Article 235 of the EU Treaty and under
EC Regulation 974/98 adopted under Article 109l(4) of the EU Treaty or under any
successor European legislation from time to time.

     "Euroclear" means Morgan Guarantee Trust Company of New York, Brussels
Office, as operator of the Euroclear System.

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

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

     "Exchange Rate" shall have the meaning specified as contemplated in Section
301.

     "Exchange Rate Agent" shall have the meaning specified as contemplated in
Section 301.

     "Exchange Rate Officer's Certificate", with respect to any date for the
payment of principal of (and premium, if any) and interest on any series of Debt
Securities, means a certificate setting forth the applicable Exchange Rate and
the amounts payable in Dollars and Foreign Currencies in respect of the
principal of (and premium, if any) and interest on Debt Securities denominated
in Euro, any other composite currency or Foreign Currency, and signed by the
Chairman of the Board, a Vice Chairman of the Board, the President, the
Treasurer or any Assistant Treasurer of the Company or the Exchange Rate Agent
appointed pursuant to Section 301, and delivered to the Trustee.

     "Extension Period" has the meaning specified in Section 313.

     "Foreign Currency" means a currency issued by the government of any country
other than the United States of America.

     "Global Exchange Agent" has the meaning specified in Section 304.

     "Global Exchange Date" has the meaning specified in Section 304.

     "Global Security" means a Debt Security issued to evidence all or part of a
series of Debt Securities in accordance with Section 303.

     "Guarantee Agreement" means, with respect to any Issuer Trust, the
Guarantee Agreement executed by the Company for the benefit of the holders of
the

                                        5

<PAGE>

Capital Trust Securities issued by such Issuer Trust, as modified, amended or
supplemented from time to time.

     "Holder", with respect to a Registered Security, means a Person in whose
name such Registered Security is registered in the Security Register and, with
respect to a Bearer Security or a coupon, means the bearer thereof.

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented, amended or restated by or pursuant to one or more
indentures supplemental hereto entered into pursuant to the applicable
provisions hereof and, unless the context otherwise requires, shall include the
terms of a particular series of Debt Securities established as contemplated by
Section 301.

     The term "interest", when used with respect to an Original Issue Discount
Security which by its terms bears interest only after Maturity, means interest
payable after Maturity.

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

     "Investment Company Event" means the receipt by an Issuer Trust of an
Opinion of Counsel (as defined in the relevant Trust Agreement) experienced in
such matters to the effect that, as a result of the occurrence of a change in
law or regulation or a written change (including any announced prospective
change) in interpretation or application of law or regulation by any legislative
body, court, governmental agency or regulatory authority, there is more than an
insubstantial risk that such Issuer Trust is or will be considered an
"investment company" that is required to be registered under the Investment
Company Act, which change or prospective change becomes effective or would
become effective, as the case may be, on or after the date of the issuance of
the Capital Trust Securities of such Issuer Trust.

     "Issuer Trust" has the meaning specified in the first recital of this
Indenture.

     "Market Value" of any Capital Securities issued on any Capital Exchange
Date for Debt Securities of any series shall be the sale price of such Capital
Securities which are sold in the Secondary Offering for the Debt Securities of
such series. In the event no such Secondary Offering takes place, the Market
Value of such Capital Securities shall be the fair value of such Capital
Securities on such Capital Exchange Date for Debt Securities of such series as
determined by three independent nationally recognized investment banking firms
selected by the Company.

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

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

     "Opinion of Counsel" means a written opinion of counsel, who may (except as
otherwise expressly provided in this Indenture) be an employee of or counsel for
the Company, or who may be other counsel acceptable to the Trustee, which is
delivered to the Trustee.

                                        6

<PAGE>

     "Optional Securities Fund" means a fund pursuant to which the proceeds of
sales of Capital Securities may be designated on the books of the Company for
the payment of any of the principal of any Debt Security pursuant to Section
1417 of this Indenture.

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

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

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

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

               (iii) Debt Securities in exchange for or in lieu of which other
     Debt Securities have been authenticated and delivered, or which have been
     paid, pursuant to this Indenture;

provided, however, that in determining whether the Holders of the requisite
principal amount of Debt Securities Outstanding have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, Debt Securities
owned by the Company or any other obligor upon the Debt Securities or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be Outstanding, except that, in determining whether the Trustee
shall be protected in relying upon such request, demand, authorization,
direction, notice, consent or waiver, only Debt Securities which the Trustee
knows to be so owned shall be so disregarded. Debt Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee's right so to act
with respect to such Debt Securities and that the pledgee is not the Company or
any other obligor upon the Debt Securities or any Affiliate of the Company or of
such other obligor. Notwithstanding anything herein to the contrary, Debt
Securities of any series initially issued to an Issuer Trust that are owned by
such Issuer Trust shall be deemed to be Outstanding notwithstanding the
ownership by the Company or an Affiliate of any beneficial interest in such
Issuer Trust.

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

     "Perpetual Preferred Stock" means any stock of any class of the Company
which has a preference over Common Stock in respect of dividends or of amounts
payable in the event of any voluntary or involuntary liquidation, dissolution or
winding up of the Company and which is not mandatorily redeemable or repayable,
or redeemable or repayable at the option of the Holder, otherwise than in shares
of Common Stock or Perpetual Preferred Stock of another class or series or with
the proceeds of the sale of Common Stock or Perpetual Preferred Stock.

                                        7

<PAGE>

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

     "Place of Capital Exchange", when used with respect to Debt Securities of
any series, means any place where the Debt Securities of such series are
exchangeable for Capital Securities as specified pursuant to Section 301.

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

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

     "Primary Federal Regulator" means the primary United States federal
regulator of the Company (which at the date of this Indenture is the Federal
Reserve or its district reserve banks), or any successor body or institution.

     "Property Trustee" means, with respect to any Issuer Trust, the Person
identified as the "Property Trustee" in the related Trust Agreement, solely in
its capacity as Property Trustee of such Issuer Trust and not in its individual
capacity, or its successor in interest in such capacity, or any successor
property trustee appointed as therein provided.

     "ranking junior to the Debt Securities," when used with respect to any
obligation of the Company shall mean any obligation of the Company which (a)
ranks junior to and not equally with or prior to the Debt Securities (or any
other obligations of the Company ranking on a parity with the Debt Securities)
in right of payment upon the happening of any event of the kind specified in the
first sentence of the second paragraph in Section 1801 or (b) is specifically
designated as ranking junior to the Debt Securities by express provision in the
instrument creating or evidencing such obligation. The securing of any
obligations of the Company, otherwise ranking junior to the Debt Securities,
shall not be deemed to prevent such obligations from constituting obligations
ranking junior to the Debt Securities.

     "ranking on a parity with the Debt Securities," when used with respect to
any obligation of the Company shall mean any obligation of the Company which (a)
ranks equally with and not prior to the Debt Securities in right of payment upon
the happening of any event of the kind specified in the first sentence of the
second paragraph in Section 1801 or (b) is specifically designated as ranking on
a parity with the Debt Securities by express provision in the instrument
creating or evidencing such obligation. The securing of any obligations of the
Company, otherwise ranking on a parity with the Debt Securities, shall not be
deemed to prevent such obligations from constituting obligations ranking on a
parity with the Debt Securities.

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

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

                                        8

<PAGE>

     "Registered Security" means any Debt Security in the form of Registered
Securities established pursuant to Section 201 which is registered in the
Security Register.

     "Regular Record Date" for the interest payable on any Interest Payment Date
on the Registered Securities of any series means the date specified for that
purpose as contemplated by Section 301.

     "Remarketing Entity", when used with respect to Debt Securities of any
series which are repayable at the option of the Holders thereof before their
Stated Maturity, means any person designated by the Company to purchase any such
Debt Securities.

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

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

     "Responsible Officer" when used with respect to the Trustee, means any
officer of the Trustee assigned by it to administer its corporate trust matters.

     "Rights" has the meaning specified in Section 1906(c).

     "Rights Plan" means a plan of the Company providing for the issuance by the
Company to all holders of its Common Stock of rights entitling the holders
thereof to subscribe for or purchase shares of any class or series of capital
stock of the Company which rights (i) are deemed to be transferred with such
shares of such Common Stock, and (ii) are also issued in respect of future
issuances of such Common Stock, in each case until the occurrence of a specified
events or events.

     "Secondary Offering", when used with respect to the Debt Securities of any
series, means the offering and sale by the Company of Capital Securities for the
account of Holders of Debt Securities of such series who elect to receive cash
and not Capital Securities on the Capital Exchange Date for such series.

     "Securities Fund" means a fund pursuant to which the proceeds of sales of
Capital Securities are designated on the books of the Company for the payment of
any principal of any Debt Security pursuant to the provisions of Section 1501.

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

     "Senior Debt" means

               (i) any of the Company's indebtedness for borrowed or purchased
     money, whether or not evidenced by bonds, debentures, notes or other
     written instruments,

               (ii) the Company's obligations under letters of credit,

               (iii) any of the Company's indebtedness or other obligations with
     respect to commodity contracts, interest rate and currency swap agreements,
     cap, floor and collar agreements, currency spot and forward contracts, and
     other similar agreements or arrangements designed to protect against
     fluctuations in currency exchange or interest rates, and

                                        9

<PAGE>

               (iv) any guarantees, endorsements (other than by endorsement of
     negotiable instruments for collection in the ordinary course of business)
     or other similar contingent obligations in respect of obligations of others
     of a type described in clauses (i), (ii) and (iii) above, whether or not
     such obligation is classified as a liability on a balance sheet prepared in
     accordance with generally accepted accounting principles, in each case
     whether outstanding on the date of execution of this Indenture or
     thereafter incurred, other than obligations ranking on a parity with the
     Debt Securities (including without limitation the Trust Related Securities)
     or ranking junior to the Debt Securities.

     "Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 307.

     "Stated Maturity", when used with respect to any Debt Security or any
installment of interest (including any Additional Interest) thereon, means the
date specified in such Debt Security or a coupon representing such installment
of interest (including any Additional Interest) as the fixed date on which the
principal of such Debt Security or such installment is due and payable, subject,
in the case of any installment of interest, to the deferral of any such date in
the case of an Extension Period.

     "Tax Event" means the receipt by an Issuer Trust of an Opinion of Counsel
(as defined in the relevant Trust Agreement) experienced in such matters to the
effect that, as a result of any amendment to, or change (including any announced
prospective change) in, the laws (or any regulations thereunder) of the United
States or any political subdivision thereof or the Commonwealth of Puerto Rico
or any taxing authority thereof or therein, or as a result of any official
administrative pronouncement or judicial decision interpreting or applying such
laws or regulations, which amendment or change is effective or which
pronouncement or decision is announced on or after the date of issuance of the
Capital Trust Securities of such Issuer Trust, there is more than an
insubstantial risk that (i) such Issuer Trust is, or will be within 90 days of
the delivery of such Opinion of Counsel, subject to United States federal or
Commonwealth of Puerto Rico income tax with respect to income received or
accrued on the series of Debt Securities issued by the Company to such Issuer
Trust, (ii) interest payable by the Company on such series of Debt Securities is
not, or within 90 days of the delivery of such Opinion of Counsel will not be,
deductible by the Company, in whole or in part, for Commonwealth of Puerto Rico
tax purposes, or for United States federal income tax purposes, to the extent
applicable to the Company, or (iii) such Issuer Trust is, or will be within 90
days of the delivery of such Opinion of Counsel, subject to more than an
immaterial amount of other taxes, duties or other governmental charges.

     "Trust Agreement" means, with respect to any Issuer Trust, the declaration
of trust, trust agreement or other governing instrument of such Issuer Trust.

     "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed, except as provided in Section
905.

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

     "Trust Related Securities" means any obligations evidenced by debt
securities (and guarantees in respect of those debt securities) initially issued

                                       10

<PAGE>

to any trust, partnership or other entity affiliated with the Company that is,
directly or indirectly, a financing vehicle of the Company in connection with
the issuance by such entity of capital securities or other similar securities.

     "Trust Securities" has the meaning specified in the first recital of this
Indenture.

     "United States" means the United States of America (including the District
of Columbia and the Commonwealth of Puerto Rico) and its possessions.

     "United States Alien" means any Person who, for United States federal
income tax purposes, is a foreign corporation, a non-resident alien individual,
a non-resident alien fiduciary of a foreign estate or trust, or a foreign
partnership one or more of the members of which is, for United States federal
income tax purposes, a foreign corporation, a non-resident alien individual or a
non-resident alien fiduciary of a foreign estate or trust.

     "U.S. Government Obligations" means direct obligations of the United States
for the payment of which its full faith and credit is pledged, or obligations of
a person controlled or supervised by and acting as an agency or instrumentality
of the United States the timely payment of which is unconditionally guaranteed
as a full faith and credit obligation by the United States, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act of 1933, as amended) as custodian with respect to any such
U.S. Government Obligation or a specific payment of principal of or interest on
any such U.S. Government Obligation held by such custodian for the account of
the holder of such depository receipt, provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt.

     Section 102. Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture (other than the delivery of any
Debt Security to the Trustee for authentication pursuant to Section 303), the
Company shall furnish to the Trustee, if so requested by the Trustee, an
Officers' Certificate stating that all conditions precedent, if any, provided
for in this Indenture relating to the proposed action have been complied with
and an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with, except that in the case
of any such application or request as to which the furnishing of such documents
is specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.

     Every certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:

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

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

          (3) a statement that, in the opinion of each such individual, he or
     she has made such examination or investigation as is necessary to

                                       11

<PAGE>

     enable him or her 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, in the opinion of each such individual, such
condition or covenant has been complied with.

     Section 103. Form of Documents Delivered to Trustee.

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

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

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

     Section 104. Acts of Holders.

          (a) Any request, demand, authorization, direction, notice, consent,
     waiver or other action provided by this Indenture to be given or taken by
     Holders may be embodied in and evidenced by one or more instruments of
     substantially similar tenor signed by such Holders in person or by an agent
     duly appointed in writing. If Debt Securities of a series are issuable in
     whole or in part as Bearer Securities, any request, demand, authorization,
     direction, notice, consent, waiver or other action provided by this
     Indenture to be given or taken by Holders may, alternatively, be embodied
     in and evidenced by the record of Holders of Debt Securities voting in
     favor thereof, either in person or by proxies duly appointed in writing, at
     any meeting of Holders of Debt Securities duly called and held in
     accordance with the provisions of Article XVI, or a combination of such
     instruments and any such record. Except as herein otherwise expressly
     provided, such action shall become effective when such instrument or
     instruments or record or both are delivered to the Trustee, and, where it
     is hereby expressly required, to the Company. Such instrument or
     instruments and any such record (and the action embodied therein and
     evidenced thereby) are herein sometimes referred to as the "Act" of the
     Holders signing such instrument or instruments and so voting at any such
     meeting. Proof of execution of any such instrument or of a writing
     appointing any such agent, or the holding by any Person of a Debt Security,
     shall be sufficient for any purpose of this Indenture and (subject to
     Section 601) conclusive in favor of the Trustee and the Company, if made in
     the manner provided in this Section. The record of any

                                       12

<PAGE>

     meeting of Holders of Debt Securities shall be proved in the manner
     provided in Section 1606.

          (b) The fact and date of the execution by any Person of any such
     instrument or writing may be proved in any manner which the Trustee deems
     sufficient.

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

          (d) The principal amount and serial numbers of Bearer Securities held
     by any Person, and the date of holding the same, may be proved by the
     production of such Bearer Securities or by a certificate executed, as
     depositary, by any trust company, bank, banker or other depositary,
     wherever situated, if such certificate shall be deemed by the Trustee to be
     satisfactory, showing that at the date therein mentioned such Person had on
     deposit with such depositary, or exhibited to it, the Bearer Securities in
     the amount and with the serial numbers therein described; or such facts may
     be proved by the certificate or affidavit of the Person holding such Bearer
     Securities, if such certificate or affidavit is deemed by the Trustee to be
     satisfactory. The Trustee and the Company may assume that such ownership of
     any Bearer Security continues until (1) another certificate or affidavit
     bearing a later date issued in respect of the same Bearer Security is
     produced, or (2) such Bearer Security is produced to the Trustee by some
     other person, or (3) such Bearer Security is surrendered in exchange for a
     Registered Security, or (4) such Bearer Security is no longer Outstanding.

          (e) The fact and date of execution of any such instrument or writing,
     the authority of the Person executing the same and the principal amount and
     serial numbers of Bearer Securities held by the Person so executing such
     instrument or writing and the date of holding the same may also be proved
     in any other manner which the Trustee deems sufficient; and the Trustee may
     in any instance require further proof with respect to any of the matters
     referred to in this Section.

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

          (g) For purposes of determining the principal amount of Outstanding
     Debt Securities of any series, the Holders of which are required, requested
     or permitted to give any request, demand, authorization, direction, notice,
     consent, waiver or take any other Act under this Indenture, (i) each
     Original Issue Discount Security shall be deemed to have the principal
     amount determined by the Trustee that could be declared to be due and
     payable pursuant to the terms of such Original Issue Discount Security as
     of the date there is delivered to the Trustee and, where it is hereby
     expressly required, to the Company, such Act by Holders of the required
     aggregate principal amount of the Outstanding Debt Securities of such
     series and (ii) each Debt Security denominated in a Foreign Currency or
     composite currency shall be deemed to have the principal amount determined
     by the Exchange Rate Agent by converting the principal amount of such Debt
     Security in the currency in which such Debt Security is denominated into
     Dollars at the Exchange Rate as of the date such Act is delivered to the
     Trustee and, where it is hereby expressly required, to the Company, by
     Holders of the required aggregate principal

                                       13

<PAGE>

     amount of the Outstanding Debt Securities of such series (or, if there is
     no such rate on such date, such rate on the date determined as specified as
     contemplated in Section 301).

          (h) The Company may set a record date for purposes of determining the
     identity of Holders of Debt Securities of any series entitled to vote or
     consent to any action by vote or consent authorized or permitted by Section
     512 or Section 513. Such record date shall be the later of 30 days prior to
     the first solicitation of such consent or the date of the most recent list
     of Holders of such Debt Securities furnished to the Trustee pursuant to
     Section 701 prior to such solicitation.

     Section 105. Notices, etc., to Trustee and Company.

     Any request, demand, authorization, direction, notice, consent, waiver or
other Act of Holders or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with,

          (1) the Trustee by any Holder, any holder of Capital Trust Securities
     or the Company shall be sufficient for every purpose hereunder (unless
     otherwise herein expressly provided), if made, given, furnished or filed in
     writing to or with the Trustee at its Corporate Trust Office, Attention:
     Corporate Trust Division, or

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

     Section 106. Notice to Holders; Waiver.

     Except as otherwise expressly provided herein, where this Indenture
provides for notice to Holders of any event, (1) such notice shall be
sufficiently given to Holders of Registered Securities if in writing and mailed,
first-class postage prepaid, to each Holder of a Registered Security affected by
such event, at such Holder's address as it appears in the Security Register, not
later than the latest date, and not earlier than the earliest date, prescribed
for the giving of such notice; and (2) such notice shall be sufficiently given
to Holders of Bearer Securities by publication thereof in an Authorized
Newspaper in The City of New York and, if the Debt Securities of such series are
then listed on The International Stock Exchange of the United Kingdom and the
Republic of Ireland and such stock exchange shall so require, in London, and, if
the Debt Securities of such series are then listed on the Luxembourg Stock
Exchange and such stock exchange shall so require, in Luxembourg and, if the
Debt Securities of such series are then listed on any other stock exchange
outside the United States and such stock exchange shall so require, in any other
required city outside the United States or, if not practicable, in Europe on a
Business Day at least twice, the first such publication to be not later than the
latest date and not earlier than the earliest date prescribed for the giving of
such notice. In case, by reason of the suspension of or irregularities in
regular mail service or for any other reason, it shall be impossible or
impracticable to mail notice of any event to Holders when said notice is
required to be given pursuant to any provision of this Indenture or of the Debt
Securities, then any manner of giving such notice as shall be satisfactory to
the Trustee shall be deemed to be a sufficient giving of such notice.

     In any case where notice to Holders of Registered Securities is to be given
by mail, neither the failure to mail such notice, nor any defect in any notice
so

                                       14

<PAGE>

mailed, to any particular Holder of a Registered Security shall affect the
sufficiency of such notice with respect to other Holders of Registered
Securities or the sufficiency of any notice by publication to Holders of Bearer
Securities given as provided above.

     In case, by reason of the suspension of publication of any Authorized
Newspaper, or by reason of any other cause, it shall be impossible or
impracticable to make publication of any notice to Holders of Bearer Securities
as provided above, then such method of publication or notification as shall be
made with the approval of the Trustee shall constitute a sufficient publication
of such notice. Neither failure to give notice by publication to Holders of
Bearer Securities as provided above, nor any defect in any notice so published,
shall affect the sufficiency of any notice mailed to Holders of Registered
Securities as provided above.

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

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

     Section 107. Conflict with Trust Indenture Act.

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

     Section 108. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction hereof.

     Section 109. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind
its successors and assigns, whether expressed or not.

     Section 110. Separability Clause.

     In case any provision in this Indenture or in the Debt Securities or
coupons shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

     Section 111. Benefits of Indenture.

     Nothing in this Indenture or in the Debt Securities or coupons, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, any Paying Agent, the Holders and, to the extent expressly
provided in Sections 502, 508, 509, 511, 513, 901 and 902, the holders of
Capital Trust Securities, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

                                       15

<PAGE>

     Section 112. Governing Law.

     This Indenture and the Debt Securities and coupons shall be governed by and
construed in accordance with the laws of the Commonwealth of Puerto Rico.

     Section 113. Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date, Capital
Exchange Date, Repayment Date or Stated Maturity of any Debt Security shall not
be a Business Day at any Place of Payment or Place of Capital Exchange, then
(notwithstanding any other provision of this Indenture or of the Debt Securities
or coupons) payment of interest or principal (and premium, if any) or exchange
of Debt Securities for Capital Securities or cash need not be made at such Place
of Payment or Place of Capital Exchange on such date, but may be made on the
next succeeding Business Day at such Place of Payment or Place of Capital
Exchange with the same force and effect as if made on the Interest Payment Date,
Capital Exchange Date, Redemption Date, Repayment Date or at the Stated
Maturity, and no interest shall accrue for the period from and after such
Interest Payment Date, Redemption Date, Repayment Date, Capital Exchange Date or
Stated Maturity, as the case may be.

     Section 114. Counterparts.

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

                                   ARTICLE II

                               DEBT SECURITY FORMS

     Section 201. Forms Generally.

     The Registered Securities, if any, and the Bearer Securities and related
coupons, if any, of each series shall be in substantially the form (including
temporary or permanent global form) as shall be established in or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon, as may be required to comply with the rules of any securities exchange,
or as may, consistently herewith, be determined by the officers executing such
Debt Securities or coupons, as evidenced by their signatures on the Debt
Securities or coupons. If the form of Debt Securities of any series or coupons
(including any such Global Security) is established by action taken pursuant to
a Board Resolution, a copy of an appropriate record of such action shall be
certified by the Secretary or an Assistant Secretary of the Company and
delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such Debt
Securities or coupons. Unless otherwise specified as contemplated by Section
301, Debt Securities in bearer form other than Debt Securities in temporary or
permanent global form shall have coupons attached. The definitive Debt
Securities and coupons, if any, shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Debt Securities, as evidenced by the execution of
such Debt Securities and coupons.

                                       16

<PAGE>

     Section 202.Form of Trustee's Certificate of Authentication.

     This is one of the Debt Securities, of the series designated herein,
described in the within-mentioned Indenture.

                                        -----------------------------------,
                                        not in its individual capacity
                                        but solely as Trustee

                                        By
                                           -------------------------------------
                                           Authorized Officer

     Section 203. Debt Securities in Global Form.

     If Debt Securities of a series are issuable in whole or in part in global
form, as specified as contemplated by Section 301, then, notwithstanding clause
(12) of Section 301 and the provisions of Section 302, such Global Security
shall represent such of the outstanding Debt Securities of such series as shall
be specified therein and may provide that it shall represent the aggregate
amount of Outstanding Debt Securities from time to time endorsed thereon and
that the aggregate amount of Outstanding Debt Securities represented thereby may
from time to time be reduced to reflect exchanges. Any endorsement of a Global
Security to reflect the amount, or any increase or decrease in the amounts, of
Outstanding Debt Securities represented thereby shall be made in such manner and
upon instructions given by such Person or Persons as shall be specified therein
or in the Company Order to be delivered to the Trustee pursuant to Section 303
or Section 304.

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

     Global Securities may be issued in either registered or bearer form and in
either temporary or permanent form.

                                   ARTICLE III

                               THE DEBT SECURITIES

     Section 301. Amount Unlimited; Issuance in Series.

     The aggregate principal amount of Debt Securities which may be
authenticated and delivered under this Indenture is unlimited.

     The Debt Securities may be issued in one or more series. There shall be
established in or pursuant to a Board Resolution, and set forth in an Officers'
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of Debt Securities of any series:

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

                                       17

<PAGE>

          (2) the limit, if any, 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 304, 305, 306, 906, 1107,
     1303, 1408 or 1903 and except for any Debt Securities which, pursuant to
     Section 303, are deemed never to have been authenticated and delivered
     hereunder);

          (3) the date or dates on which the principal and premium, if any, of
     the Debt Securities of the series are payable;

          (4) the rate or rates, if any, at which the Debt Securities of the
     series shall bear interest, the rate or rates of and extent to which
     Additional Interest, if any, shall be payable in respect of any Debt
     Securities of the series, or the method or methods by which such rate or
     rates may be determined, the date or dates from which such interest or
     Additional Interest shall accrue, the Interest Payment Dates on which such
     interest shall be payable, the right, pursuant to Section 313 or as
     otherwise set forth therein, of the Company to defer or extend an Interest
     Payment Date, the Regular Record Date for the interest payable on any
     Registered Security on any Interest Payment Date and the other
     circumstances, if any, in which the Company may defer interest payments;

          (5) the place or places where, subject to the provisions of Section
     1002, the principal of (and premium, if any) and interest (including
     Additional Interest) on Debt Securities of the series shall be payable, any
     Registered Securities of the series may be surrendered for registration of
     transfer, Debt Securities of the series may be surrendered for exchange and
     notices and demands to or upon the Company in respect of the Debt
     Securities of the series and this Indenture may be served and where notices
     to Holders pursuant to Section 106 will be published;

          (6) if applicable, the period or periods within which or the date or
     dates on 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;

          (7) if applicable, the place or places at which, the period or periods
     within which, the price or prices at which and the terms and conditions
     upon which Debt Securities shall be exchangeable for Capital Securities of
     the Company, which terms and conditions shall not be inconsistent with
     Article XIV;

          (8) any covenant or option of the Company to create a Securities Fund
     for the repayment of the Debt Securities and the terms and conditions of
     such Securities Fund, which terms and conditions shall not be inconsistent
     with Article XV;

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

          (10) whether Debt Securities of the series are to be issuable as
     Registered Securities, Bearer Securities or both, whether Debt Securities
     of the series are to be issuable with or without coupons or both and, in
     the case of Bearer Securities, the date as of which such Bearer Securities

                                       18

<PAGE>

     shall be dated if other than the date of original issuance of the first
     Debt Security of such series of like tenor and term to be issued;

          (11) whether the Debt Securities of the series shall be issued in
     whole or in part in the form of a Global Security or Securities and, in
     such case, the Depositary and Global Exchange Agent for such Global
     Security or Securities, whether such global form shall be permanent or
     temporary and, if applicable, the Global Exchange Date;

          (12) if Debt Securities of the series are to be issuable initially in
     the form of a temporary Global Security, the circumstances under which the
     temporary Global Security can be exchanged for definitive Debt Securities
     and whether the definitive Debt Securities will be Registered and/or Bearer
     Securities and will be in global form and whether interest (including any
     Additional Interest) in respect of any portion of such Global Security
     payable in respect of an Interest Payment Date prior to the Global Exchange
     Date shall be paid to any clearing organization with respect to a portion
     of such Global Security held for its account and, in such event, the terms
     and conditions (including any certification requirements) upon which any
     such interest payment received by a clearing organization will be credited
     to the Persons entitled to interest payable on such Interest Payment Date
     if other than as provided in this Article III;

          (13) whether, and under what conditions, additional amounts will be
     payable to Holders of Debt Securities of the series pursuant to Section
     1006;

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

          (15) if other than the principal amount thereof, 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 502;

          (16) the currency or currencies of denomination of the Debt Securities
     of any series, which may be in Dollars, any Foreign Currency or any
     composite currency, including but not limited to the Euro, and, if any such
     currency of denomination is a composite currency other than the Euro, the
     agency or organization, if any, responsible for overseeing such composite
     currency;

          (17) the currency or currencies in which payment of the principal of
     (and premium, if any) and interest (including any Additional Interest) on
     the Debt Securities will be made, the currency or currencies, if any, in
     which payment of the principal of (and premium, if any) or the interest
     (including any Additional Interest) on Registered Securities, at the
     election of each of the Holders thereof, may also be payable and the
     periods within which and the terms and conditions upon which such election
     is to be made and the Exchange Rate and Exchange Rate Agent;

          (18) if the amount of payments of principal of (and premium, if any)
     or interest (including any Additional Interest) on the Debt Securities of
     the series may be determined with reference to an index based on a currency
     or currencies other than that in which the Debt Securities are denominated
     or designated to be payable, the manner in which such amounts shall be
     determined;

                                       19

<PAGE>

          (19) if payments of principal of (and premium, if any) or interest
     (including any Additional Interest) on the Debt Securities of the series
     are to be made in a Foreign Currency other than the currency in which such
     Debt Securities are denominated, the manner in which the Exchange Rate with
     respect to such payments shall be determined or if the Exchange Rate is to
     be determined otherwise than as provided in Section 101;

          (20) any Events of Default with respect to Debt Securities of such
     series, if not set forth herein, and any Events of Default set forth herein
     that shall not apply to Debt Securities of the series;

          (21) any other covenant or warranty included for the benefit of the
     Debt Securities of the series in addition to (and not inconsistent with)
     those set forth herein for the benefit of Debt Securities of all series, or
     any other covenant or warranty included for the benefit of Debt Securities
     of the series in lieu of any covenant or warranty set forth herein for the
     benefit of Debt Securities of all series, or any provision that any
     covenant or warranty set forth herein for the benefit of Debt Securities of
     all series shall not be for the benefit of Debt Securities of such series,
     or any combination of such covenants, warranties or provisions and whether
     the provisions of Section 1005 will not apply such covenants and
     warranties;

          (22) the terms and conditions, if any, pursuant to which the Company's
     obligations under this Indenture may be terminated through the deposit of
     money or Eligible Instruments as provided in Articles IV and XVII;

          (23) the Person or Persons who shall be Security Registrar for the
     Debt Securities of such series if other than the Trustee, and the place or
     places where the Security Register for such series shall be maintained and
     the Person or Persons who will be the initial Paying Agent or Agents, if
     other than the Trustee;

          (24) whether the Debt Securities of the series are Convertible
     Securities and the terms related thereto including the Conversion Price and
     the date on which the right to convert expires;

          (25) if such Debt Securities are to be issued to an Issuer Trust, the
     form or forms of the Trust Agreement and Guarantee Agreement relating
     thereto;

          (26) if other than as set forth herein, the relative degree, if any,
     to which the Debt Securities of the series shall be senior to or be
     subordinated to other series of Debt Securities in right of payment,
     whether such other series of Debt Securities are Outstanding or not; and

          (27) any other terms of the series (which terms shall not be
     inconsistent with the provisions of this Indenture).

     All Debt Securities of any one series and the coupons appertaining to
Bearer Securities of such series, if any, shall be substantially identical
except, in the case of Registered Securities, as to denomination and except as
may otherwise be provided in or pursuant to such Board Resolution and set forth
in such Officers' Certificate or in any such indenture supplemental hereto.

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

                                       20
<PAGE>

may be payable and with different Redemption or Repayment Dates and may be
denominated in different currencies or payable in different currencies.

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

     Section 302. Denominations.

     Debt Securities of each series shall be issuable in such form and
denominations as shall be specified in the form of Debt Security for such series
approved or established pursuant to Section 201 or in the Officers' Certificate
delivered pursuant to Section 301. In the absence of any specification with
respect to the Debt Securities of any series, the Registered Securities of such
series, if any, shall be issuable in denominations of $1,000 and any integral
multiple thereof and the Bearer Securities of such series, if any, shall be
issuable in the denominations of $5,000.

     Section 303. Execution, Authentication, Delivery and Dating.

          (a) The Debt Securities shall be executed on behalf of the Company by
     its Chairman of the Board, a Vice Chairman of the Board, the President or a
     Vice President, and by its Treasurer or one of its Assistant Treasurers or
     its Secretary or one of its Assistant Secretaries under its corporate seal
     reproduced thereon. The signature of any of these officers on the Debt
     Securities may be manual or facsimile. Coupons shall bear the facsimile
     signature of an authorized officer of the Company.

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

          (b) At any time and from time to time after the execution and delivery
     of this Indenture, Debt Securities of any series may be executed by the
     Company and delivered to the Trustee for authentication, and, except as
     otherwise provided in this Article III, shall thereupon be authenticated
     and delivered by the Trustee upon Company Order, without any further action
     by the Company; provided, however, that, in connection with its original
     issuance, a Bearer Security may be delivered only outside the United States
     and, except in the case of a temporary Global Security, only if the Company
     or its agent shall have received the certification required pursuant to
     Sections 304(b)(iii) and (iv), unless such certification shall have been
     provided earlier pursuant to Section 304(b)(v) hereof, and only if the
     Company has no reason to know that such certification is false.

     To the extent authorized in or pursuant to a Board Resolution and set forth
in an Officers' Certificate, or established in one or more indentures
supplemental hereto, such written Company Order may be given by any one officer
or employee of the Company, may be electronically transmitted, and may provide
instructions as to registration of holders, principal amounts, rates of
interest, maturity dates and other matters contemplated by such Board Resolution
and Officers' Certificate or supplemental indenture to be so instructed in
respect thereof. Before authorizing and delivering the first Debt Securities of
any series (and upon request of the Trustee thereafter), the Company shall
deliver to the Trustee (i) the certificates called for under Sections 201 and
301 hereof and (ii) an Opinion of Counsel described in the next sentence.

                                       21

<PAGE>

     In authenticating such Debt Securities, and accepting the additional
responsibilities under this Indenture in relation to any Debt Securities, the
Trustee shall be entitled to receive, prior to the initial authentication of
such Debt Securities, and (subject to Section 601) shall be fully protected in
relying upon:

               (i) a Board Resolution relating thereto and, if applicable, an
     appropriate record of any action taken pursuant to such resolution
     certified by the Secretary or an Assistant Secretary of the Company;

               (ii) an executed supplemental indenture, if any, relating
     thereto;

               (iii) an Officers' Certificate setting forth the form and terms
     of the Debt Securities of such series and coupons, if any, pursuant to
     Sections 201 and 301 and stating that all conditions precedent provided for
     in this Indenture relating to the issuance of such Debt Securities have
     been complied with; and

               (iv) an Opinion of Counsel stating

                    (A) that the form of such Debt Securities and coupons, if
          any, has been established in or pursuant to a Board Resolution or by a
          supplemental indenture as permitted by Section 201 in conformity with
          the provisions of this Indenture;

                    (B) that the terms of such Debt Securities and coupons, if
          any, have been established in or pursuant to a Board Resolution or by
          a supplemental indenture as permitted by Section 301 in conformity
          with the provisions of this Indenture; and

                    (C) that such Debt Securities and coupons, if any, when
          authenticated and delivered by the Trustee and issued by the Company
          in the manner and subject to any conditions specified in such Opinion
          of Counsel, will constitute valid and binding obligations of the
          Company, enforceable in accordance with their terms, except that where
          Debt Securities of any series are to be exchanged for Capital
          Securities or paid from the Securities Fund, the issuance of Capital
          Securities will require further action by the Board of Directors, and
          subject, as to enforcement of remedies, to applicable bankruptcy,
          reorganization, insolvency, moratorium or other laws affecting
          creditors' rights generally and the application of general principles
          of equity and except further as enforcement thereof may be limited by
          (i) requirements that a claim with respect to any Debt Securities
          denominated other than in Dollars (or a Foreign Currency or currency
          unit judgment in respect of such claim) be converted into Dollars at a
          rate of exchange prevailing on a date determined pursuant to
          applicable law or (ii) governmental authority to limit, delay or
          prohibit the making of payments in Foreign Currencies or currency
          units or payments outside the United States.

          (c) If the Company shall establish pursuant to Section 301 that the
     Debt Securities of a series are to be issued in whole or in part in the
     form of one or more Global Securities, then the Company shall execute and
     the Trustee shall, in accordance with this Section and the Company Order
     with respect to such series, authenticate and deliver one or more Global
     Securities in permanent or temporary form that (i) shall represent and
     shall be denominated in an aggregate amount equal to the aggregate
     principal amount of the Outstanding Debt Securities of such series to be
     represented by one or more Global Securities, (ii) shall be registered in

                                       22

<PAGE>

     the name of the Depositary for such Global Security or Securities or the
     nominee of such Depositary and (iii) shall be delivered by the Trustee to
     such Depositary or pursuant to such Depositary's instructions.

          (d) The Trustee shall have the right to decline to authenticate and
     deliver any Debt Securities under this Section 303 if the issuance of such
     Debt Securities will adversely affect the Trustee's own rights, duties or
     immunities under the Debt Securities and this Indenture or otherwise in a
     manner which is not reasonably acceptable to the Trustee.

          (e) If all the Debt Securities of any series are not to be issued at
     one time, it shall not be necessary to deliver an Opinion of Counsel at the
     time of issuance of each Debt Security, but such Opinion of Counsel, with
     appropriate modifications, may instead be delivered at or prior to the time
     of the first issuance of Debt Securities of such series.

          (f) Each Registered Security shall be dated the date of its
     authentication. Each Bearer Security shall be dated as of the date
     specified as contemplated by Section 301.

          (g) No Debt Security or coupon attached thereto shall be entitled to
     any benefit under this Indenture or be valid or obligatory for any purpose,
     unless there appears on such Debt Security a certificate of authentication
     substantially in the form provided for herein executed by the Trustee, and
     such certificate upon any Debt Security shall be conclusive evidence, and
     the only evidence, that such Debt Security has been duly authenticated and
     delivered hereunder. Except as permitted by Section 306, the Trustee shall
     not authenticate and deliver any Bearer Security unless all appurtenant
     coupons for interest then matured have been detached and cancelled.
     Notwithstanding the foregoing, if any Debt Security or portion thereof
     shall have been duly authenticated and delivered hereunder but never issued
     and sold by the Company, and the Company shall deliver such Debt Security
     to the Trustee for cancellation as provided in Section 309 together with a
     written statement (which need not comply with Section 102 and need not be
     accompanied by an Opinion of Counsel) stating that such Debt Security or
     portion thereof has never been issued and sold by the Company, for all
     purposes of this Indenture such Debt Security shall be deemed never to have
     been authenticated and delivered hereunder and shall never be entitled to
     the benefits of this Indenture.

          (h) Each Depositary designated pursuant to Section 301 for a Global
     Security in registered form must, at the time of its designation and at all
     times while it serves as Depositary, be a clearing agency registered under
     the Securities Exchange Act of 1934 and any other applicable statute or
     regulation.

          (i) Debt Securities distributed to holders of Book-Entry Capital
     Securities (as defined in the applicable Trust Agreement) upon the
     dissolution of an Issuer Trust shall be distributed in the form of one or
     more Global Securities registered in the name of a Depositary or its
     nominee, and deposited with the Security Registrar, as custodian for such
     Depositary, or with such Depositary, for credit by the Depositary to the
     respective accounts of the beneficial owners of the Debt Securities
     represented thereby (or such other accounts as they may direct). Debt
     Securities distributed to holders of Capital Trust Securities other than
     Book-Entry Capital Securities upon the dissolution of an Issuer Trust shall
     not be issued in the form of a Global Security or any other form intended
     to facilitate book-entry trading in beneficial interests in such Debt
     Securities.

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     Section 304. Temporary Debt Securities.

          (a) Pending the preparation of definitive Debt Securities of any
     series, the Company may execute, and upon receipt of documents required by
     Sections 301 and 303, together with a Company Order, the Trustee shall
     authenticate and deliver, temporary Debt Securities which are printed,
     lithographed, typewritten, mimeographed or otherwise produced, in any
     denomination, substantially of the tenor and terms of the definitive Debt
     Securities in lieu of which they are issued in registered form or, if
     authorized, in bearer form with one or more coupons or without coupons, and
     with such appropriate insertions, omissions, substitutions and other
     variations as the officers executing such Debt Securities may determine, as
     evidenced by their signatures on such Debt Securities. In the case of Debt
     Securities of any series issuable as Bearer Securities, such temporary Debt
     Securities may be in global form, representing all or any part of the
     Outstanding Debt Securities of such series.

          (b) Unless otherwise provided pursuant to Section 301:

               (i) Except in the case of temporary Debt Securities in global
     form, if temporary Debt Securities of any series are issued, the Company
     will cause definitive Debt Securities of such series to be prepared without
     unreasonable delay. After the preparation of definitive Debt Securities of
     such series, the related temporary Debt Securities shall be exchangeable
     for such definitive Debt Securities upon surrender of the temporary Debt
     Securities of such series at the office or agency of the Company in the
     Place of Payment for such series, without charge to the Holder. Upon
     surrender for cancellation of any one or more temporary Debt Securities of
     any series (accompanied, if applicable, by all unmatured coupons and all
     matured coupons in default appertaining thereto), the Company shall execute
     and the Trustee shall authenticate and deliver in exchange therefor a like
     principal amount of definitive Debt Securities of the same series of like
     tenor and terms and of authorized denominations; provided, however, that no
     Bearer Security shall be delivered in exchange for a Registered Security;
     and provided, further, that a Bearer Security shall be delivered in
     exchange for a Bearer Security only in compliance with the conditions set
     forth in Section 305.

               (ii) If Debt Securities of any series are issued in temporary
     global form, any such temporary Global Security shall, unless otherwise
     provided pursuant to Section 301, be delivered to the Depositary for the
     benefit of Euroclear and Clearstream, for credit to the respective accounts
     of the beneficial owners of such Debt Securities (or to such other accounts
     as they may direct).

               (iii) Without unnecessary delay but in any event not later than
     the date specified in, or determined pursuant to the terms of, any such
     temporary Global Security (the "Global Exchange Date"), the Company shall
     deliver definitive Debt Securities to the Trustee or the agent appointed by
     the Company pursuant to Section 301 to effect the exchange of the temporary
     Global Security for definitive Debt Securities (the "Global Exchange
     Agent"), in an aggregate principal amount equal to the principal amount of
     such temporary Global Security, executed by the Company. On or after the
     Global Exchange Date, such temporary Global Security shall be surrendered
     by the Depositary to the Global Exchange Agent, to be exchanged, in whole
     or from time to time in part, for definitive Debt Securities without charge
     and the Trustee or the Global Exchange Agent, if authorized by the Trustee
     pursuant to Section 614, shall authenticate and deliver, in exchange for
     each portion of such temporary Global Security, an equal aggregate
     principal amount of definitive Debt Securities of the same series of
     authorized denominations and of like tenor and terms as the

                                       24

<PAGE>

     portion of such temporary Global Security to be exchanged. Upon any
     exchange of a part of such temporary Global Security for definitive Debt
     Securities, the portion of the principal amount and any interest (including
     any Additional Interest) thereon so exchanged shall be endorsed by the
     Global Exchange Agent on a schedule to such temporary Global Security,
     whereupon the principal amount and interest payable with respect to such
     temporary Global Security shall be reduced for all purposes by the amount
     so exchanged and endorsed. The definitive Debt Securities to be delivered
     in exchange for any such temporary Global Security shall be in bearer form,
     registered form, global registered form or global bearer form, or any
     combination thereof, as specified and contemplated by Section 301, and, if
     any combination thereof is so specified, as requested by the beneficial
     owner thereof; provided, however, that, in the case of the exchange of the
     temporary Global Security for definitive Bearer Securities (including a
     definitive Global Bearer Security), upon such presentation by the
     Depositary, such temporary Global Security shall be accompanied by a
     certificate signed by Euroclear as to the portion of such temporary Global
     Security held for its account then to be exchanged and a certificate signed
     by Clearstream as to the portion of such temporary Global Security held for
     its account then to be exchanged, each in the form set forth in Exhibit B
     to this Indenture, unless such certificate(s) shall have been provided
     earlier pursuant to Section 304(b)(v) hereof; and provided, further, that
     definitive Bearer Securities (including a definitive Global Bearer
     Security) shall be delivered in exchange for a portion of a temporary
     Global Security only in compliance with the requirements of Section 303.

               (iv) The interest of a beneficial owner of Debt Securities of a
     series in a temporary Global Security shall be exchanged for definitive
     Debt Securities of the same series and of like tenor and terms following
     the Global Exchange Date when the account holder instructs Euroclear or
     Clearstream, as the case may be, to request such exchange on such account
     holder's behalf and, in the case of the exchange of the temporary Global
     Security for definitive Bearer Securities (including a definitive Global
     Bearer Security), unless such certificate(s) shall have been provided
     earlier pursuant to Section 304(b)(v) hereof, the account holder delivers
     to Euroclear or Clearstream, as the case may be, a certificate in the form
     set forth in Exhibit A-1 and, if applicable, A-2 to this Indenture, dated
     no earlier than 15 days prior to the Global Exchange Date, copies of which
     certificate shall be available from the offices of Euroclear and
     Clearstream, the Global Exchange Agent, any authenticating agent appointed
     for such series of Debt Securities and each Paying Agent. Unless otherwise
     specified in such temporary Global Security, any such exchange shall be
     made free of charge to the beneficial owners of such temporary Global
     Security, except that a Person receiving definitive Debt Securities must
     bear the cost of insurance, postage, transportation and the like in the
     event that such Person does not take delivery of such definitive Debt
     Securities in person at the offices of Euroclear and Clearstream.
     Definitive Debt Securities in bearer form to be delivered in exchange for
     any portion of a temporary Global Security shall be delivered only outside
     the United States.

               (v) Until exchanged in full as hereinabove provided, the
     temporary Debt Securities of any series shall in all respects be entitled
     to the same benefits under this Indenture as definitive Debt Securities of
     the same series and of like tenor and terms authenticated and delivered
     hereunder, except that interest (including any Additional Interest) payable
     on a temporary Global Security on an Interest Payment Date shall be payable
     to Euroclear and Clearstream on such Interest Payment Date only if there
     has been delivery by Euroclear and Clearstream to the Global Exchange Agent
     of a certificate or certificates in the form set forth in

                                       25

<PAGE>

     Exhibit B to this Indenture dated no earlier than the first Interest
     Payment Date, for credit without further interest on or after such Interest
     Payment Date to the respective accounts of the Persons who are the
     beneficial owners of such temporary Global Security on such Interest
     Payment Date and who have each delivered to Euroclear or Clearstream, as
     the case may be, a certificate in the form set forth in Exhibit A-1 and, if
     applicable, A-2 to this Indenture dated no earlier than the first Interest
     Payment Date. Any interest so received by Euroclear and Clearstream and not
     paid as herein provided prior to the Global Exchange Date shall be returned
     to the Global Exchange Agent which, upon expiration of two years after such
     Interest Payment Date, shall repay such interest to the Company in
     accordance with Section 1003.

     Section 305. Registration; Registration of Transfer and Exchange.

     The Company shall cause to be kept at one of the offices or agencies to be
maintained by the Company in accordance with the provisions of this Section 305
and Section 1002, with respect to the Debt Securities of each series which are
Registered Securities, a register (herein sometimes referred to as the "Security
Register") in which, subject to such reasonable regulations as it may prescribe,
the Company shall provide for the registration of Registered Securities and of
transfers of Registered Securities. Pursuant to Section 301, the Company shall
appoint, with respect to Debt Securities of each series which are Registered
Securities, a "Security Registrar" for the purpose of registering such Debt
Securities and transfers and exchanges of such Debt Securities as herein
provided.

     Upon surrender for registration of transfer of any Registered Security of
any series at the office or agency of the Company maintained for such purpose,
the Company shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new Registered
Securities of the same series of any authorized denomination or denominations,
of like tenor and terms and aggregate principal amount.

     At the option of the Holder, Registered Securities of any series may be
exchanged for other Registered Securities of the same series of any authorized
form and denomination, of like tenor and terms and aggregate principal amount,
upon surrender of the Registered Securities to be exchanged at such office or
agency. Bearer Securities may not be delivered in exchange for Registered
Securities.

     At the option of the Holder, Registered Securities or Bearer Securities of
any series may be issued in exchange for Bearer Securities (except as otherwise
specified as contemplated by Section 301 with respect to a Bearer Security in
global form) of the same series, of any authorized denominations and of like
tenor and terms and aggregate principal amount, upon surrender of the Bearer
Securities to be exchanged at any such office or agency, with all unmatured
coupons and all matured coupons in default thereto appertaining. If the Holder
of a Bearer Security is unable to produce any such unmatured coupon or coupons
or matured coupon or coupons in default, such exchange may be effected if the
Bearer Securities are accompanied by payment in funds acceptable to the Company
and the Trustee in an amount equal to the face amount of such missing coupon or
coupons, or the surrender of such missing coupon or coupons may be waived by the
Company and the Trustee if there be furnished to them such security or indemnity
as they may require to save each of them and any Paying Agent harmless. If
thereafter the Holder of such Security shall surrender to any Paying Agent any
such missing coupon in respect of which such a payment shall have been made,
such Holder shall be entitled to receive the amount of such payment; provided,
however, that, except as otherwise provided in Section 1002, interest
represented by coupons shall be payable only upon presentation and surrender of
those coupons at an office or agency located outside the United States.
Notwithstanding the

                                       26

<PAGE>

foregoing, in case a Bearer Security of any series is surrendered at any such
office or agency in exchange for a Registered Security of the same series and
like tenor and terms after the close of business at such office or agency of (i)
any Regular Record Date and before the opening of business at such office or
agency on the relevant Interest Payment Date, or (ii) any Special Record Date
and before the opening of business at such office or agency on the related date
for payment of Defaulted Interest, such Bearer Security shall be surrendered
without the coupon relating to such Interest Payment Date or proposed date of
payment, as the case may be.

     Whenever any Debt Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Debt
Securities which the Holder making the exchange is entitled to receive.

     If at any time the Depositary for the Debt Securities of a series notifies
the Company that it is unwilling or unable to continue as Depositary for the
Debt Securities of such series or if at any time the Depositary for the Debt
Securities of such series shall no longer be eligible under Section 303(h), the
Company shall appoint a successor Depositary with respect to the Debt Securities
of such series. If a successor Depositary for the Debt 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 301(11) shall no longer be effective with respect to the Debt
Securities of such series and the Company will execute, and the Trustee, upon
receipt of a Company Order for the authentication and delivery of definitive
Debt Securities of such series, will authenticate and deliver, Debt Securities
of such series in definitive form in an aggregate principal amount equal to the
principal amount of the Global Security or Securities representing such series
in exchange for such Global Security or Securities.

     The Company may at any time and in its sole discretion determine that the
Debt Securities of any series issued in the form of one or more Global
Securities shall no longer be represented by such Global 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 definitive Debt Securities
of such series, will authenticate and deliver, Debt Securities of such series in
definitive form and in an aggregate principal amount equal to the principal
amount of the Global Security or Securities representing such series in exchange
for such Global Security or Securities.

     If specified by the Company pursuant to Section 301 with respect to a
series of Debt Securities, the Depositary for such series of Debt Securities may
surrender a Global Security for such series of Debt Securities in exchange in
whole or in part for Debt Securities of such series of like tenor and terms and
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 Debt Security or
     Securities of the same series, of like tenor and terms and of any
     authorized denominations as requested by such person in aggregate principal
     amount equal to and in exchange for such Person's beneficial interest in
     the Global Security; and

          (b) to such Depositary a new Global Security of like tenor and terms
     and in a denomination equal to the difference, if any, between the
     principal amount of the surrendered Global Security and the aggregate
     principal amount of 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 Debt

                                       27

<PAGE>

Securities (a) in definitive registered form in authorized denominations, if the
Debt Securities of such series are issuable as Registered Securities, (b) in
definitive bearer form in authorized denominations, with coupons attached, if
the Debt Securities of such series are issuable as Bearer Securities or (c) as
either Registered or Bearer Securities, as shall be specified by the beneficial
owner thereof, if the Debt Securities of such series are issuable in either
form; provided, however, that no definitive Bearer Security shall be delivered
in exchange for a temporary Global Security unless the Company or its agent
shall have received from the person entitled to receive the definitive Bearer
Security a certificate substantially in the form set forth in Exhibit A-1 and,
if applicable, A-2 hereto; and provided further that delivery of a Bearer
Security shall occur only outside the United States; and provided further that
no definitive Bearer Security will be issued if the Company has reason to know
that any such certificate is false.

     Upon the exchange of a Global Security for Debt Securities in definitive
form, such Global Security shall be cancelled by the Trustee. Registered
Securities issued in exchange for a Global Security pursuant to this Section
shall be registered in such names and in such authorized denominations as the
Depositary for such Global Security, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Registered Securities to the persons in whose names such Debt
Securities are so registered. The Trustee shall deliver Bearer Securities issued
in exchange for a Global Security pursuant to this Section to the persons, and
in such authorized denominations, as the Depositary for such Global Security,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee; provided, however, that no definitive Bearer
Security shall be delivered in exchange for a temporary Global Security unless
the Company or its agent shall have received from the person entitled to receive
the definitive Bearer Security a certificate substantially in the form set forth
in Exhibit A-1 and, if applicable, A-2 hereto; and provided further that
delivery of a Bearer Security shall occur only outside the United States; and
provided further that no definitive Bearer Security will be issued if the
Company has reason to know that any such certificate is false.

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

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

     No service charge shall be made for any registration of transfer or
exchange of Debt Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any transfer, registration of transfer or exchange of Debt
Securities, other than exchanges expressly provided in this Indenture to be made
at the Company's own expense or without expense or without charge to the
Holders.

     The Company shall not be required (i) to issue, register the transfer of or
exchange Debt Securities of any particular series to be redeemed or exchanged
for Capital Securities for a period of fifteen days preceding the first
publication of the relevant notice of redemption or exchange or, if Registered
Securities are outstanding and there is no publication, the mailing of the
relevant notice of redemption or exchange, or (ii) to register the transfer of
or exchange any Registered Security so selected for redemption or exchange in
whole or in part,

                                       28

<PAGE>

except the unredeemed or unexchanged portion of such Registered Security being
redeemed or exchanged in part, or (iii) to exchange any Bearer Security so
selected for redemption or exchange except that such a Bearer Security may be
exchanged for a Registered Security of like tenor and terms of that series,
provided that such Registered Security shall be simultaneously surrendered for
redemption or exchange.

     Notwithstanding anything herein to the contrary, the exchange of Bearer
Securities into Registered Securities shall be subject to applicable laws and
regulations in effect at the time of exchange; neither the Company, the Trustee
nor the Security Registrar shall exchange any Bearer Securities into Registered
Securities if it has received an Opinion of Counsel that as a result of such
exchanges the Company would suffer adverse consequences under the United States
federal income tax laws and regulations then in effect and the Company has
delivered to the Trustee a Company Order directing the Trustee not to make such
exchanges thereafter unless and until the Trustee receives a subsequent Company
Order to the contrary. The Company shall deliver copies of such Company Orders
to the Security Registrar.

     Section 306. Mutilated, Destroyed, Lost and Stolen Debt Securities.

     If (i) any mutilated Debt Security or a Bearer Security with a mutilated
coupon appertaining to it is surrendered to a Paying Agent outside the United
States designated by the Company, or, in the case of any Registered Security, to
the Trustee, or (ii) the Company and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of any Debt Security or coupon,
and there is delivered to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless, then, in the absence
of notice to the Company and the Trustee that such Debt Security or coupon has
been acquired by a bona fide purchaser, the Company shall execute and upon its
written request the Trustee shall authenticate and deliver, in exchange for any
such mutilated Debt Security or Bearer Security with a mutilated coupon
appertaining to it or to which a destroyed, lost or stolen coupon appertains
(with all appurtenant coupons not destroyed, lost or stolen) or in lieu of any
such destroyed, lost or stolen Debt Security, a new Debt Security of like tenor
and terms and principal amount, bearing a number not contemporaneously
outstanding, with coupons corresponding to the coupon, if any, appertaining to
such destroyed, lost or stolen Debt Security or to the Debt Security to which
such destroyed, lost or stolen coupon appertains; provided, however, that any
such new Bearer Security will be delivered only in compliance with the
conditions set forth in Section 305.

     In case any such mutilated, destroyed, lost or stolen Debt Security or
coupon has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Debt Security, pay such Debt Security
or coupon; provided, however, that payment of principal of (and premium, if any)
and any interest on Bearer Securities shall, except as otherwise provided in
Section 1002, be payable only at an office or agency located outside the United
States; and provided, further, that, with respect to any such coupons, interest
represented thereby (but not any additional amounts payable as provided in
Section 1006), shall be payable only upon presentation and surrender of the
coupons appertaining thereto.

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

     Every new Debt Security of any series, with its coupons, if any, issued
pursuant to this Section in lieu of any destroyed, lost or stolen Debt Security,

                                       29

<PAGE>

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

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

     Section 307. Payment of Interest and Additional Interest; Interest Rights
Preserved.

     Interest and any Additional Interest on any Registered 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 Registered Security (or one
or more Predecessor Securities) is registered at the close of business on the
Regular Record Date for such interest. In case a Bearer Security of any series
is surrendered in exchange for a Registered Security of such series after the
close of business (at an office or agency in a Place of Payment for such series)
on any Regular Record Date and before the opening of business (at such office or
agency) on the next succeeding Interest Payment Date, such Bearer Security shall
be surrendered without the coupon relating to such Interest Payment Date and
interest and any Additional Interest will not be payable on such Interest
Payment Date in respect of the Registered Security issued in exchange for such
Bearer Security, but will be payable only to the Holder of such coupon when due
in accordance with the provisions of this Indenture. At the option of the
Company, payment of interest and any Additional Interest on any Registered
Security may be made by check in the currency designated for such payment
pursuant to the terms of such Registered Security mailed to the address of the
Person entitled thereto as such address shall appear in the Security Register or
by wire transfer to an account in such currency designated by such Person in
writing not later than ten days prior to the date of such payment.

     Any interest (including any Additional Interest) on any Registered Security
of any series which is payable, but is not punctually paid or duly provided for,
on any Interest Payment Date (herein called "Defaulted Interest") shall
forthwith cease to be payable to the registered Holder on the relevant Regular
Record Date by virtue of his having been such Holder, and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Clause (1) or (2) below:

          (1) The Company may elect to make payment of any Defaulted Interest to
     the Persons in whose names the Registered Securities of such series (or
     their respective Predecessor Securities) are registered at the close of
     business on a Special Record Date for the payment of such Defaulted
     Interest, which shall be fixed in the following manner. The Company shall
     notify the Trustee in writing of the amount of Defaulted Interest proposed
     to be paid on each Registered Security of such series and the date of the
     proposed payment, and at the same time the Company shall deposit with the
     Trustee an amount of money and/or, to the extent such Debt Securities are
     denominated and payable in Dollars only, Eligible Instruments the payments
     of principal and interest on which when due (and without reinvestment and
     providing no tax liability will be imposed upon the Trustee or the Holder
     of such Registered Securities) will provide money in such amounts as will
     (together with any money irrevocably deposited in trust with the Trustee,
     without investment) be equal to the aggregate amount proposed to be paid in
     respect of such Defaulted Interest

                                       30

<PAGE>

     or shall make arrangements satisfactory to the Trustee for such deposit
     prior to the date of the proposed payment, such money and/or Eligible
     Instruments when deposited to be held in trust for the benefit of the
     Persons entitled to such Defaulted Interest as in this clause provided.
     Thereupon the Trustee shall fix a Special Record Date for the payment of
     such Defaulted Interest which shall be not more than 15 days and not less
     than 10 days prior to the date of the proposed payment and not less than 10
     days after the receipt by the Trustee of the notice of the proposed
     payment. The Trustee shall promptly notify the Company of such Special
     Record Date. Unless the Trustee is acting as the Security Registrar,
     promptly after such Special Record Date, the Company shall furnish the
     Trustee with a list, or shall make arrangements satisfactory to the Trustee
     with respect thereto, of the names and addresses of, and principal amounts
     of Registered Securities of such series held by, the Holders appearing on
     the Security Register at the close of business on such Special Record Date.
     In the name and at the expense of the Company, the Trustee shall cause
     notice of the proposed payment of such Defaulted Interest and the Special
     Record Date therefor to be mailed, first-class postage prepaid, to each
     Holder of Registered Securities of such series at his address as it appears
     in the Security Register, not less than 10 days prior to such Special
     Record Date. Notice of the proposed payment of such Defaulted Interest and
     the Special Record Date therefor having been mailed as aforesaid, such
     Defaulted Interest shall be paid to the Persons in whose names the
     Registered Securities of such series (or their respective Predecessor
     Securities) are registered at the close of business on such Special Record
     Date and shall no longer be payable pursuant to the following Clause (2).
     In case a Bearer Security of any series is surrendered at the office or
     agency in a Place of Payment for such series in exchange for a Registered
     Security of such series after the close of business at such office or
     agency on any Special Record Date and before the opening of business at
     such office or agency on the related proposed date for payment of Defaulted
     Interest, such Bearer Security shall be surrendered without the coupon
     relating to such proposed date of payment and Defaulted Interest will not
     be payable on such proposed date of payment in respect of the Registered
     Security issued in exchange for such Bearer Security, but will be payable
     only to the Holder of such coupon when due in accordance with the
     provisions of this Indenture.

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

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

     Subject to the limitations set forth in Section 1002, the Holder of any
coupon appertaining to a Bearer Security shall be entitled to receive the
interest payable on such coupon upon presentation and surrender of such coupon
on or after the Interest Payment Date of such coupon at an office or agency
maintained for such purpose pursuant to Section 1002.

     If any Registered Security is exchanged for Capital Securities after any
record date and on or prior to the next succeeding Interest Payment Date (other
than any Debt Security whose Maturity is prior to such Interest Payment Date),

                                       31

<PAGE>

interest whose Stated Maturity is on such Interest Payment Date shall be paid by
the Company on such Interest Payment Date notwithstanding such exchange, and
such interest (whether or not punctually paid or duly provided for) shall be
paid to the Person in whose name that Debt Security is registered at the close
of business on such record date.

     If any Bearer Security is exchanged for Capital Securities after any record
date and on or prior to the next succeeding Interest Payment Date (other than
any Debt Security whose Maturity is prior to such Interest Payment Date),
interest whose Stated Maturity is on such Interest Payment Date shall be payable
on such Interest Payment Date notwithstanding such exchange, and such interest
(whether or not punctually paid or duly provided for) shall be paid by the
Company pursuant to such procedures as may be satisfactory to the Trustee.

     Section 308. Persons Deemed Owners.

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

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

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

     Section 309. Cancellation.

     Unless otherwise provided with respect to a series of Debt Securities, all
Debt Securities and coupons surrendered for payment, redemption, repayment,
transfer, exchange or credit against any sinking fund payment pursuant to this
Indenture, shall, if surrendered to the Company or any agent of the Company, be
delivered to the Trustee and shall be promptly cancelled by it. The Company may
at any time deliver to the Trustee for cancellation any Debt Securities
previously authenticated and delivered hereunder which the Company may have
acquired in any manner whatsoever, and all Debt Securities so delivered shall be
promptly cancelled by the Trustee. No Debt Securities shall be authenticated in
lieu of or in exchange for any Debt Securities cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled Debt
Securities and coupons held by the Trustee shall be destroyed and certification
of their destruction delivered to the Company, upon request, unless by a Company
Order the Company shall direct that the cancelled Debt Securities or coupons be
returned to it.

                                       32

<PAGE>

     Section 310. Computation of Interest.

     Except as otherwise specified as contemplated by Section 301 for Debt
Securities of any series, interest (including any Additional Interest) on the
Debt Securities of each series shall be computed on the basis of a 360-day year
of twelve 30-day months.

     Section 311. Certification by a Person Entitled to Delivery of a Bearer
Security.

     Whenever any provision of this Indenture or a Debt Security contemplates
that certification be given by a Person entitled to delivery of a Bearer
Security, such certification shall be provided substantially in the form of
Exhibit A-1 and, if applicable, A-2 hereto, with only such changes as shall be
approved by the Company and consented to by the Trustee whose consent shall not
unreasonably be withheld.

     Section 312. Judgments.

     The Company may provide, pursuant to Section 301, for the Debt Securities
of any series that, to the fullest extent possible under applicable law and
except as may otherwise be specified as contemplated in Section 301, (a) the
obligation, if any, of the Company to pay the principal of (and premium, if any)
and interest (including any Additional Interest) on the Debt Securities of any
series and any appurtenant coupons in a Foreign Currency, composite currency or
Dollars (the "Designated Currency") as may be specified pursuant to Section 301
is of the essence and agrees that judgments in respect of such Debt Securities
shall be given in the Designated Currency; (b) the obligation of the Company to
make payments in the Designated Currency of the principal of (and premium, if
any) and interest (including any Additional Interest) on such Debt Securities
and any appurtenant coupons shall, notwithstanding any payment in any other
currency (whether pursuant to a judgment or otherwise), be discharged only to
the extent of the amount in the Designated Currency that the Holder receiving
such payment may, in accordance with normal banking procedures, purchase with
the sum paid in such other currency (after any premium and cost of exchange) in
the country of issue of the Designated Currency in the case of Foreign Currency
or Dollars or in the international banking community in the case of a composite
currency on the Business Day immediately following the day on which such Holder
receives such payment; (c) if the amount in the Designated Currency that may be
so purchased for any reason falls short of the amount originally due, the
Company shall pay such additional amounts as may be necessary to compensate for
such shortfall; and (d) any obligation of the Company not discharged by such
payment shall be due as a separate and independent obligation and, until
discharged as provided herein, shall continue in full force and effect.

     Section 313. Deferrals of Interest Payment Dates.

     If specified as contemplated by Section 301 with respect to the Debt
Securities of a particular series, so long as no Event of Default has occurred
and is continuing, the Company shall have the right, at any time during the term
of such series, from time to time to defer the payment of interest on such Debt
Securities for such period or periods as may be specified as contemplated by
Section 301 (each, an "Extension Period"), during which Extension Periods the
Company shall, if so specified as contemplated by Section 301, have the right to
make partial payments of interest on any Interest Payment Date. No Extension
Period shall end on a date other than an Interest Payment Date. At the end of
any such Extension Period the Company shall pay all interest then accrued and
unpaid on the Debt Securities (together with Additional Interest thereon, if
any, at the rate specified for the Debt Securities of such series to the extent
permitted by applicable law); provided, however, that no Extension Period shall
extend beyond the Stated Maturity of the principal of the Debt Securities of
such series; and

                                       33

<PAGE>

provided further, however that, unless otherwise specified as contemplated by
Section 301, during any such Extension Period, the Company shall not (i) make
any payment of principal of or interest or premium, if any, on or repay,
repurchase or redeem any debt securities of the Company that rank pari passu in
all respects with or junior in interest to the Debt Securities of such series,
or (ii) declare or pay any dividends or distributions on, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of the Company's
capital stock (other than (a) repurchases, redemptions or other acquisitions of
shares of capital stock of the Company in connection with any employment
contract, benefit plan or other similar arrangement with or for the benefit of
any one or more employees, officers, directors or consultants, in connection
with a dividend reinvestment or stockholder stock purchase plan or in connection
with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock) as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of an exchange, redemption or conversion of any class or series of the
Company's capital stock (or any capital stock of a subsidiary of the Company)
for any other class or series of the Company's capital stock, or of any class or
series of the Company's indebtedness for any class or series of the Company's
capital stock, (c) the purchase of fractional interests in shares of the
Company's capital stock pursuant to the conversion or exchange provisions of
such capital stock or the securities being converted or exchanged, (d) any
declaration of a dividend in connection with any Rights Plan, or the issuance of
rights, stock or other property under any Rights Plan, or the redemption or
repurchase of rights pursuant thereto, (e) any payment by the Company under any
Guarantee Agreement, or (f) any dividend in the form of stock, warrants, options
or other rights where the dividend stock or the stock issuable upon exercise of
such warrants, options or other rights is the same stock as that on which the
dividend is being paid or ranks pari passu with or junior to such stock). Prior
to the termination of any such Extension Period, the Company may extend such
Extension Period and further defer the payment of interest, provided that no
Event of Default has occurred and is continuing, and provided, further that no
Extension Period shall exceed the period or periods specified in such Debt
Securities, extend beyond the Stated Maturity of the principal of such Debt
Securities or end on a date other than an Interest Payment Date. Upon the
termination of any such Extension Period and upon the payment of all accrued and
unpaid interest and any Additional Interest then due on any Interest Payment
Date, the Company may elect to begin a new Extension Period, subject to the
above conditions. No interest or Additional Interest shall be due and payable
during an Extension Period, except at the end thereof, but each installment of
interest that would otherwise have been due and payable during such Extension
Period shall bear Additional Interest as and to the extent as may be specified
as contemplated by Section 301. The Company shall give the Holders of the Debt
Securities of such series and the Trustee notice of its election to begin any
such Extension Period at least one Business Day prior to the next succeeding
Interest Payment Date on which interest on Debt Securities of such series would
be payable but for such deferral or, with respect to any Debt Securities of a
series issued to an Issuer Trust, so long as any such Debt Securities are held
by such Issuer Trust, at least one Business Day prior to the earlier of (i) the
next succeeding date on which Distributions on the Capital Trust Securities of
such Issuer Trust would be payable but for such deferral, and (ii) the date on
which the Property Trustee of such Issuer Trust is required to give notice to
holders of such Capital Trust Securities of the record date or the date such
Distributions are payable. The Trustee shall promptly give notice of the
Company's election to begin any such Extension Period to the Holders of the
Outstanding Debt Securities of such series.

     Section 314. Right of Set-Off.

     With respect to the Debt Securities of a series initially issued to an
Issuer Trust, notwithstanding anything to the contrary herein, the Company shall
have the right to set off any payment it is otherwise required to make in
respect

                                       34

<PAGE>

of any such Debt Security to the extent the Company has theretofore made, or is
concurrently on the date of such payment making, a payment under the Guarantee
Agreement relating to such payment in respect of such Debt Security or a payment
to a holder of Capital Trust Securities relating to such payment in respect of
such Debt Security pursuant to an action undertaken under Section 508 of this
Indenture.

     Section 315. Agreed Tax Treatment.

     Each Debt Security issued hereunder shall provide that the Company and, by
its acceptance of a Debt Security or a beneficial interest therein, the Holder
of, and any Person that acquires a beneficial interest in, such Debt Security
agree that for United States federal, Commonwealth of Puerto Rico, state and
local tax purposes it is intended that such Debt Security constitutes
indebtedness.

                                   ARTICLE IV

                           Satisfaction and Discharge

     Section 401. Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect,
including the provisions of Article XVIII hereof (except as to any surviving
rights of registration of transfer or exchange of Debt Securities herein
expressly provided for and rights to receive payments of principal and interest
thereon (including any Additional Interest) and any right to receive additional
amounts, as provided in Section 1006) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture when

          (1) either

               (A) all Debt Securities theretofore authenticated and delivered
          and all coupons appertaining thereto (other than (i) coupons
          appertaining to Bearer Securities surrendered in exchange for
          Registered Securities and maturing after such exchange, surrender of
          which is not required or has been waived as provided in Section 305,
          (ii) Debt Securities and coupons which have been destroyed, lost or
          stolen and which have been replaced or paid as provided in Section
          306, (iii) coupons appertaining to Bearer Securities called for
          redemption or surrendered for repayment and maturing after the
          relevant Redemption Date or Repayment Date, as appropriate, surrender
          of which has been waived as provided in Section 1106 or 1303 and (iv)
          Debt Securities and coupons for whose payment money and/or Eligible
          Instruments have theretofore been deposited in trust or segregated and
          held in trust by the Company and thereafter repaid to the Company or
          discharged from such trust, as provided in Section 1003) have been
          delivered to the Trustee cancelled or for cancellation; or

               (B) all such Debt Securities not theretofore delivered to the
          Trustee for cancellation

                    (i) have become due and payable, or

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

                                       35

<PAGE>

                    (iii) are to be called for redemption within one year under
               arrangements satisfactory to the Trustee for the giving of notice
               of redemption by the Trustee in the name, and at the expense, of
               the Company,

     and the Company, in the case of (B)(i), (B)(ii) or (B)(iii) above, has
     irrevocably deposited or caused to be deposited with the Trustee as trust
     funds in trust for the purpose money and/or, to the extent such Debt
     Securities are denominated and payable in Dollars only, Eligible
     Instruments the payments of principal and interest on which when due (and
     without reinvestment and providing no tax liability will be imposed upon
     the Trustee or the Holders of Debt Securities) will provide money in such
     amounts as will (together with any money irrevocably deposited in trust
     with the Trustee, without investment) be sufficient to pay and discharge
     the entire indebtedness on such Debt Securities and coupons of such series
     for principal (and premium, if any) and interest (including any Additional
     Interest), and any mandatory sinking fund, repayment or analogous payments
     thereon, on the scheduled due dates therefor to the date of such deposit
     (in the case of Debt Securities and coupons which have become due and
     payable) or to the Stated Maturity or Redemption Date, if any, and all
     Repayment Dates (in the case of Debt Securities repayable at the option of
     the Holders thereof); provided, however, that in the event a petition for
     relief under the Bankruptcy Reform Act of 1978 or a successor statute is
     filed with respect to the Company within 91 days after the deposit, the
     obligations of the Company under the Indenture with respect to the Debt
     Securities of such series shall not be deemed terminated or discharged, and
     in such event the Trustee shall be required to return the deposited money
     and Eligible Instruments to the Company;

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

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

Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 607 and, if money or
Eligible Instruments shall have been deposited with the Trustee pursuant to
subclause (B) of Clause (1) of this Section, the obligations of the Trustee
under Section 402 and the last paragraph of Section 1003 shall survive.

     Section 402. Application of Trust Money and Eligible Instruments.

          (a) Subject to the provisions of the last paragraph of Section 1003,
     all money and Eligible Instruments deposited with the Trustee pursuant to
     Section 401, 403 or 1701 shall be held in trust and such money and the
     principal and interest received on such Eligible Instruments shall be
     applied by it, in accordance with the provisions of the Debt Securities,
     the coupons and this Indenture, to the payment, either directly or through
     any Paying Agent (including the Company acting as its own Paying Agent) as
     the Trustee may determine, to the Persons entitled thereto, of the
     principal (and premium, if any) and interest (including any Additional
     Interest) for whose payment such money or Eligible Instruments have been
     deposited with the Trustee.

          (b) The Trustee shall deliver or pay to the Company from time to time
     upon Company Request any Eligible Instruments or money held by it as
     provided in Section 403 or 1701 which, in the opinion of a nationally
     recognized firm of independent public accountants expressed in a written

                                       36

<PAGE>

     certification thereof delivered to the Trustee, are then in excess of the
     amount thereof which then would have been required to be deposited for the
     purpose for which such Eligible Instruments or money were deposited or
     received.

          (c) If this Section 402(c) is specified, as contemplated by Section
     301, to be applicable to the Debt Securities of any series, the Trustee
     shall deliver to the Company from time to time upon Company Request any
     Eligible Instruments held by it as provided in Section 403 or 1701,
     provided that the Company in substitution therefor simultaneously delivers
     to the Trustee, money or other Eligible Instruments which, in the opinion
     of a nationally recognized firm of independent public accountants expressed
     in a written certification thereof delivered to the Trustee, would then be
     sufficient to satisfy the Company's payment obligations in respect of the
     Debt Securities in the manner contemplated by Section 403 or 1701.

     Section 403. Satisfaction, Discharge and Defeasance of Debt Securities of
any Series.

     If this Section 403 is specified, as contemplated by Section 301, to be
applicable to Debt Securities of any series, then, notwithstanding Section 401,
(i) the Company shall be deemed to have paid and discharged the entire
indebtedness on all the Outstanding Debt Securities of any such series and
related coupons; (ii) the provisions of this Indenture as it relates to such
Outstanding Debt Securities and related coupons shall no longer be in effect,
including the provisions of Article XVIII hereof (except as to the rights of
Holders of Debt Securities to receive, from the trust fund described in
subparagraph (1) below, payment of (x) the principal of (and premium, if any)
and any installment of principal of (and premium, if any) or interest (including
any Additional Interest) on such Debt Securities and related coupons on the
Stated Maturity of such principal (and premium, if any) or installment of
principal (and premium, if any) or interest (including any Additional Interest)
or (y) any mandatory sinking fund, repayment or analogous payments applicable to
the Debt Securities of that series on that day on which such payments are due
and payable in accordance with the terms of this Indenture and of such Debt
Securities, the Company's obligations with respect to such Debt Securities under
Sections 304, 305, 306, 1002, 1003 and 1006 and the rights, powers, trusts,
duties and immunities of the Trustee hereunder, including those under Section
607 hereof); and (iii) the Trustee, at the expense of the Company, shall, upon
Company Order, execute proper instruments acknowledging satisfaction and
discharge of such indebtedness, when

          (1) either

               (A) with respect to all Outstanding Debt Securities of such
          series and related coupons, with reference to this Section 403, the
          Company has deposited or caused to be deposited with the Trustee (or
          another trustee satisfying the requirements of Section 609 who shall
          agree to comply with the provisions of this Section 403 applicable to
          it) irrevocably, as trust funds in trust, money and/or, to the extent
          such Debt Securities are denominated and payable in Dollars only,
          Eligible Instruments the payments of principal and interest on which
          when due (and without reinvestment and providing no tax liability will
          be imposed upon the Trustee or the Holders of such Debt Securities)
          will provide money in such amounts as will (together with any money
          irrevocably deposited in trust with the Trustee, without investment)
          be sufficient to pay and discharge (i) the principal of (and premium,
          if any) and interest (including any Additional Interest) on the
          Outstanding Debt Securities of that series and related coupons on the
          Stated Maturity of such principal

                                       37

<PAGE>

          or interest (including any Additional Interest) or, if such series may
          be redeemed by the Company prior to the Stated Maturity thereof, and
          the Company shall have given irrevocable instructions to the Trustee
          to effect such redemption, at the date fixed for such redemption
          pursuant to Article XI, and (ii) any mandatory sinking fund payments
          or analogous payments applicable to Debt Securities of such series on
          the date on which such payments are due and payable in accordance with
          the terms of this Indenture and of such Debt Securities; or

               (B) the Company has properly fulfilled such other means of
          satisfaction and discharge as is specified, as contemplated by Section
          301, to be applicable to the Debt Securities of such series;

          (2) the Company has paid or caused to be paid all other sums payable
     with respect to the Outstanding Debt Securities of such series and related
     coupons;

          (3) such deposit will not result in a breach of, or constitute a
     default under, this Indenture or any other agreement or instrument to which
     the Company is a party or by which it is bound;

          (4) no Event of Default or event which, with the giving of notice or
     lapse of time, or both, would become an Event of Default with respect to
     the Debt Securities of such series shall have occurred and be continuing on
     the date of such deposit and no Event of Default under Section 501(5) or
     Section 501(6) or event which, with the giving of notice or lapse of time,
     or both, would become an Event of Default under Section 501(5) or Section
     501(6) shall have occurred and be continuing on the 91st day after such
     date; provided, however, that should that condition fail to be satisfied on
     or before such 91st day, the Trustee shall promptly, upon satisfactory
     receipt of evidence of such failure, return such deposit to the Company;

          (5) the Company has delivered to the Trustee an Opinion of Counsel to
     the effect that (a) the Company has received from, or there has been
     published by, the Internal Revenue Service a ruling, or (b) since the date
     of this Indenture there has been a change in applicable federal income tax
     law, in either case to the effect that, and based thereon such Opinion of
     Counsel shall confirm that, the Holders of Debt Securities and related
     coupons of such series will not recognize income, gain or loss for United
     States federal or Puerto Rico income tax purposes as a result of such
     deposit, defeasance and discharge and will be subject to United States
     federal and Puerto Rico income tax on the same amount and in the same
     manner and at the same times as would have been the case if such deposit,
     defeasance and discharge had not occurred;

          (6) if the Debt Securities of that series are then listed on any
     domestic or foreign securities exchange, the Company shall have delivered
     to the Trustee an Opinion of Counsel to the effect that such deposit,
     defeasance and discharge will not cause such Debt Securities to be
     delisted;

          (7) such deposit shall have been effected in compliance with any
     additional terms, conditions or limitations which may be imposed on the
     Company in connection therewith pursuant to Section 301; and

          (8) the Company has delivered to the Trustee an Officers' Certificate
     and an Opinion of Counsel, each stating that all conditions precedent
     herein provided for relating to the satisfaction and discharge

                                       38

<PAGE>

     of the entire indebtedness of all Outstanding Debt Securities and related
     coupons have been complied with.

     Any deposits with the Trustee referred to in Section 403(1)(A) above shall
be irrevocable and shall be made under the terms of an escrow trust agreement in
form and substance satisfactory to the Trustee. If any Outstanding Debt
Securities of such series are to be redeemed prior to their Stated Maturity,
whether pursuant to any optional redemption provisions or in accordance with any
mandatory sinking fund requirement, the applicable escrow trust agreement shall
provide therefor and the Company shall make such arrangements as are
satisfactory to the Trustee for the giving of notice of redemption by the
Trustee in the name, and at the expense, of the Company.

     Upon the satisfaction of the conditions set forth in this Section 403 with
respect to all the Outstanding Debt Securities of any series, the terms and
conditions of such series, including the terms and conditions with respect
thereto set forth in this Indenture, shall no longer be binding upon, or
applicable to, the Company; provided that the Company shall not be discharged
from any payment obligations in respect of Debt Securities of such series which
are deemed not to be Outstanding under clause (iii) of the definition thereof if
such obligations continue to be valid obligations of the Company under
applicable law.

     Notwithstanding the cessation, termination and discharge of all
obligations, covenants and agreements (except as provided above in this Section
403) of the Company under this Indenture with respect to any series of Debt
Securities, the obligations of the Company to the Trustee under Section 607, and
the obligations of the Trustee under Section 402 and the last paragraph of
Section 1003, shall survive with respect to such series of Debt Securities.

                                    ARTICLE V

                                    Remedies

     Section 501. Events of Default.

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

          (1) default in the payment of any interest upon any Debt Security of
     such series or a related coupon, if any, when it becomes due and payable,
     and continuance of such default for a period of 30 days (subject to the
     deferral of any due date in the case of an Extension Period); or

          (2) default in the payment of the principal of (or premium, if any,
     on) any Debt Security of such series at its Maturity; or

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

          (4) default in the performance, or breach, of any covenant or warranty
     of the Company in this Indenture (other than a covenant or warranty a
     default in whose performance or whose breach is elsewhere in this Section
     specifically dealt with or which has expressly been included in this
     Indenture solely for the benefit of Debt Securities of a series other than
     such series), and continuance of such default or breach for a period of 90
     days after there has been given by registered or certified

                                       39

<PAGE>

     mail, to the Company by the Trustee, or to the Company and the Trustee by
     the Holders of at least 25% in principal amount of the Outstanding Debt
     Securities of such series, a written notice specifying such default or
     breach and requiring it to be remedied and stating that such notice is a
     "Notice of Default" hereunder; or

          (5) the entry of a decree or order for relief in respect of the
     Company by a court having jurisdiction in the premises in an involuntary
     case under the United States federal bankruptcy laws, as now or hereafter
     constituted, and the continuance of any such decree or order unstayed and
     in effect for a period of 60 consecutive days; or

          (6) the commencement by the Company of a voluntary case under the
     United States federal bankruptcy laws, as now or hereafter constituted, or
     the consent by the Company to the entry of a decree or order for relief in
     an involuntary case under any such law; or

          (7) any other Event of Default, if any, provided with respect to Debt
     Securities of such series specified as contemplated by Section 301.

     Section 502. Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Debt Securities of any series at the
time Outstanding occurs and is continuing, then and in every such case the
Trustee or the Holders of not less than 25% in principal amount of Outstanding
Debt Securities of such series may declare the principal amount (or, if the Debt
Securities of such series are Original Issue Discount Securities, such portion
of the principal amount as may be specified in the terms of such series) of and
all accrued but unpaid interest (including any Additional Interest) on all the
Debt Securities of such series to be due and payable immediately, by a notice in
writing to the Company (and to the Trustee if given by such Holders), provided
that, in the case of the Debt Securities of a series issued to an Issuer Trust,
if, upon an Event of Default, the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Debt Securities of such series fail to
declare the principal of all the Outstanding Debt Securities of such series to
be immediately due and payable, either the Property Trustee or the holders of at
least 25% in aggregate Liquidation Amount (as defined in the related Trust
Agreement) of the related series of Capital Trust Securities issued by such
Issuer Trust then outstanding shall have the right to make such declaration by a
notice in writing to the Company and the Trustee; and upon any such declaration
such principal amount (or specified amount) shall become immediately due and
payable. Upon payment of such amount, all obligations of the Company in respect
of the payment of principal of the Debt Securities of such series shall
terminate.

     At any time after such a declaration of acceleration with respect to Debt
Securities of any series has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this
Article provided, the Holders of a majority in principal amount of the
Outstanding Debt Securities of such series, by written notice to the Company and
the Trustee, may rescind and annul such declaration and its consequences if

          (1) the Company has paid or deposited with the Trustee a sum
     sufficient to pay

                    (A) all overdue installments of interest on all Debt
          Securities of such series and any related coupons and any accrued
          Additional Interest on all Debt Securities of such series,

                    (B) the principal of (and premium, if any, on) any Debt
          Securities of such series which have become due otherwise than

                                       40
<PAGE>

          by such declaration of acceleration and interest and Additional
          Interest thereon at the rate or rates prescribed therefor in such Debt
          Securities,

                    (C) to the extent that payment of such interest is lawful,
          interest upon overdue installments of interest on each Debt Security
          and any related coupons at the rate or rates prescribed therefor in
          such Debt Securities, and

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

     and

          (2) all Events of Default with respect to Debt Securities of such
     series, other than the non-payment of the principal of such series which
     have become due solely by such declaration of acceleration, have been cured
     or waived as provided in Section 513;

provided, however, that in the case of Debt Securities of a series initially
issued to an Issuer Trust, any such recision and annulment shall require the
consent of the holders of a majority in aggregate Liquidation Amount (as defined
in the related Trust Agreement) of the related series of Capital Trust
Securities then outstanding.

     In the case of Debt Securities of a series initially issued to an Issuer
Trust, if the Holders of such Debt Securities fail to annul such declaration and
waive such default, the holders of a majority in aggregate Liquidation Amount
(as defined in the related Trust Agreement) of the related series of Capital
Trust Securities issued by such Issuer Trust then outstanding shall also have
the right to rescind and annul such declaration and its consequences by written
notice to the Company and the Trustee, subject to the satisfaction of the
conditions set forth in Clauses (1) and (2) above of this Section 502.

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

     Section 503. Collection of Indebtedness and Suits for Enforcement by
Trustee.

     The Company covenants that if:

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

          (2) default is made in the payment of the principal of (or premium, if
     any, on) any Debt Security at the Maturity thereof,

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Debt Securities and coupons, the amount then due and payable on
such Debt Securities and coupons for principal (and premium, if any) and
interest (including any Additional Interest), including the delivery of any
Capital Securities then required to be delivered, and, to the extent that
payment of such interest shall be legally enforceable, interest upon the overdue
principal (and premium, if any) and, upon overdue installments of interest, at
the rate or rates prescribed therefor in such Debt Securities, and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of

                                       41

<PAGE>

collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

     If the Company fails to pay such amounts (including the delivery of any
Capital Securities then required to be delivered) forthwith upon such demand,
the Trustee, in its own name and as trustee of an express trust, may institute a
judicial proceeding for the collection of the sums so due and unpaid and the
delivery of any Capital Securities required to be delivered and not so
delivered, or, in the case of the failure to deliver Capital Securities, money
equal to the principal amount of the Debt Securities for which the Capital
Securities were to be exchanged, and may prosecute such proceeding to judgment
or final decree, and may enforce the same against the Company or any other
obligor upon such Debt Securities and coupons and collect the moneys (or money
equal to the principal amount of any Debt Securities for which Capital
Securities were to be exchanged) adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or any other obligor upon
such Debt Securities and coupons, wherever situated.

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

     Section 504. Trustee May File Proofs of Claim.

     In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceedings, or any voluntary or involuntary case under the United
States federal bankruptcy laws as now or hereafter constituted, relative to the
Company or any other obligor upon the Debt Securities of a particular series or
any related coupons or the property of the Company or of such other obligor or
their creditors, the Trustee (irrespective of whether the principal of such Debt
Securities shall then be due and payable as therein expressed or by declaration
or otherwise and irrespective of whether the Trustee shall have made any demand
on the Company for the payment of overdue principal or interest (including any
Additional Interest)) shall be entitled and empowered, by intervention in such
proceedings or otherwise,

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

          (2) to collect and receive any moneys or other property payable or
     deliverable on any such claims and to distribute the same;

and any receiver, assignee, trustee, custodian, liquidator, sequestrator or
other similar official in any such proceeding is hereby authorized by each
Holder to make such payments to the Trustee, and in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 607.

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

     Section 505. Trustee May Enforce Claims without Possession of Debt
Securities or Coupons.

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

     Section 506. Application of Money Collected.

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

          FIRST: To the payment of all amounts due the Trustee under Section
     607;

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

          THIRD: To the payment of the amounts then due and unpaid for principal
     of (and premium, if any) and interest (including any Additional Interest)
     on the Debt Securities and any coupons, in respect of which or for the
     benefit of which such money has been collected ratably, without preference
     or priority of any kind, according to the amounts due and payable on such
     Debt Securities and any coupons for principal (and premium, if any) and
     interest (including any Additional Interest), respectively. The Holders of
     each series of Debt Securities denominated in Euro, any other composite
     currency or a Foreign Currency and any matured coupons relating thereto
     shall be entitled to receive a ratable portion of the amount determined by
     the Exchange Rate Agent by converting the principal amount Outstanding of
     such series of Debt Securities and matured but unpaid interest (including
     any Additional Interest) on such series of Debt Securities in the currency
     in which such series of Debt Securities is denominated into Dollars at the
     Exchange Rate as of the date of declaration of acceleration of the Maturity
     of the Debt Securities; and

          FOURTH: The balance, if any, to the Person or Persons entitled
     thereto.

     Section 507. Limitation on Suits.

     No Holder of any Debt Securities of any series or any related coupons shall
have any right to institute any proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any
other remedy hereunder, unless

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<PAGE>

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

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

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

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

          (5) no direction inconsistent with such written request has been given
     to the Trustee during such 60-day period by the Holders of a majority in
     principal amount of the Outstanding Debt Securities of such series;

it being understood and intended that no one or more of such Holders shall have
any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb or prejudice the rights of any other such
Holders, or to obtain or to seek to obtain priority or preference over any other
of such Holders or to enforce any right under this Indenture, except in the
manner herein provided and for the equal and ratable benefit of all of such
Holders.

     Section 508. Unconditional Right of Holders to Receive Principal, Premium
and Interest and to Exchange Debt Securities for Capital Securities; Direct
Action by Holders of Capital Trust Securities.

     Notwithstanding any other provision in this Indenture, the Holder of any
Debt Security or coupon shall have the right which is absolute and unconditional
to receive payment of the principal of (and premium, if any) and (subject to
Section 307) interest (including any Additional Interest) on such Debt Security
or payment of such coupon on the respective Stated Maturity or Maturities
expressed in such Debt Security or coupon (or, in the case of redemption or
repayment, on the Redemption Date or the Repayment Date, as the case may be), to
have the Debt Securities exchanged for Capital Securities pursuant to Article
XIV, if applicable, and to institute suit for the enforcement of any such
payment or exchange, and such right shall not be impaired without the consent of
such Holder, subject, however, to the provisions of Article XVIII. In the case
of Debt Securities of a series issued to an Issuer Trust, any registered holder
of the series of Capital Trust Securities issued by such Issuer Trust shall have
the right, upon the occurrence of an Event of Default described in Section
501(1) or (2), to institute a suit directly against the Company for enforcement
of payment to such holder of principal of (premium, if any) and (subject to
Sections 307 and 313) interest (including any Additional Interest) on the Debt
Securities having a principal amount equal to the aggregate Liquidation Amount
(as defined in the related Trust Agreement) of such Capital Trust Securities
held by such holder.

     Section 509. Restoration of Rights and Remedies.

     If the Trustee, any Holder or any holder of Capital Trust Securities issued
by an Issuer Trust has instituted any proceedings to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or abandoned for
any reason, or has been determined adversely to the Trustee, such Holder or such

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<PAGE>

holder of Capital Trust Securities, then and in every such case the Company, the
Trustee, the Holders and the holders of Capital Trust Securities shall, subject
to any determination in such proceeding, be restored severally and respectively
to their former positions hereunder, and thereafter all rights and remedies of
the Trustee, the Holders and the holders of the Capital Trust Securities shall
continue as though no such proceeding had been instituted.

     Section 510. Rights and Remedies Cumulative.

     Except as otherwise provided in Section 306, no right or remedy herein
conferred upon or reserved to the Trustee or to the Holders is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

     Section 511. Delay or Omission Not Waiver.

     No delay or omission of the Trustee or of any Holder of any Debt Security
or coupon to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article or by law to the Trustee or to the Holders and the right and remedy
given to the holders of Capital Trust Securities by Section 508 may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee, the
Holders or the holders of Capital Trust Securities, as the case may be.

     Section 512. Control by Holders of Debt Securities.

     The Holders of a majority in principal amount of the Outstanding Debt
Securities of any series shall have the right to direct the time, method and
place of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee with respect to the Debt
Securities of such series, provided, that

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

          (2) subject to the provisions of Section 601, the Trustee shall have
     the right to decline to follow any such direction if the Trustee in good
     faith shall, by a Responsible Officer or Responsible Officers of the
     Trustee, determine that the proceedings so directed would be unjustly
     prejudicial to the Holders of Debt Securities of such series not joining in
     any such direction; and

          (3) the Trustee may take any other action deemed proper by the Trustee
     which is not inconsistent with such direction.

     Section 513. Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the
Outstanding Debt Securities of any series on behalf of the Holders of all the
Debt Securities of any such series and any related coupons and, in the case of
any Debt Securities of a series initially issued to an Issuer Trust, the holders
of a majority in aggregate Liquidation Amount (as defined in the related Trust
Agreement) of Capital Trust Securities issued by such Issuer Trust may waive any
past default hereunder with respect to such series and its consequences, except
a default

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<PAGE>

          (1) in the payment of the principal of (or premium, if any) or
     interest (including any Additional Interest) on any Debt Security of such
     series, or

          (2) in respect of a covenant or provision hereof which under Article
     IX cannot be modified or amended without the consent of the Holder of each
     Outstanding Debt Security of such series or coupons affected;

provided, however, that in the case of any Debt Securities of a series initially
issued by an Issuer Trust, such waiver shall not be effective as to such Debt
Securities unless the holders of at least a majority in aggregate Liquidation
Amount (as defined in the related Trust Agreement) of Capital Trust Securities
issued by such Issuer Trust shall have consented to such waiver; provided
further, that if the consent of the Holder of each Outstanding Debt Security is
required, such waiver shall not be effective unless each holder of Capital Trust
Securities issued by such Issuer Trust shall have consented to such waiver.

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

     Section 514. Undertaking for Costs.

     All parties to this Indenture agree, and each Holder of any Debt Security
or coupon by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees, against any party litigant in such suit, having a due regard to
the merits and good faith of the claims or defenses made by such party litigant,
but the provisions of this Section shall not apply to any suit instituted by the
Company or the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the
Outstanding Debt Securities of any series, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of (or premium, if
any) or interest (including any Additional Interest) on any Debt Security or the
payment of any coupons on or after the respective Stated Maturity or Maturities
expressed in such Debt Security or coupon (or, in the case of redemption or
repayment, on or after the Redemption Date or Repayment Date, as the case may
be) or for the enforcement of the right to exchange any Debt Securities for
Capital Securities as provided in Article XIV.

     Section 515. Waiver of Stay or Extension Laws.

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

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                                   ARTICLE VI

                                   The Trustee

     Section 601. Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as provided in the
Trust Indenture Act. The provisions of Section 315 of the Trust Indenture Act
shall be deemed to be incorporated into this Indenture. Notwithstanding the
foregoing, no provision of this Indenture shall require the Trustee to expend or
risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or
powers, if it shall have reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or liability is not reasonably
assured to it. Whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section.

     Section 602. Notice of Default.

     If a default occurs hereunder with respect to Debt Securities of any series
the Trustee shall transmit by mail to all Holders of Debt Securities of such
series notice of such default as and to the extent provided by the Trust
Indenture Act; provided, however, that in the case of any default of the
character specified in Section 501(4) with respect to Debt Securities of such
series no such notice to Holders shall be given until at least 30 days after the
occurrence thereof; and provided further, that, except in the case of a default
in the payment of the principal of (or premium, if any) or interest (including
any Additional Interest) on any Debt Security of such series or any related
coupons or in the payment of any sinking fund installment with respect to Debt
Securities of such series or in the exchange of Capital Securities for Debt
Securities of such series, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determines that the withholding of such notice is in the interest of the
Holders of Debt Securities of such series. For the purpose of this Section, the
term "default" means any event which is, or after notice or lapse of time or
both would become, an Event of Default with respect to Debt Securities of such
series.

     Section 603. Certain Rights of Trustee.

Except as otherwise provided in Section 601:

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

          (b) any request or direction of the Company mentioned herein shall be
     sufficiently evidenced by a Company Request or Company Order and any
     resolution of the Board of Directors shall be sufficiently evidenced by a
     Board Resolution;

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

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<PAGE>

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

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

          (f) the Trustee shall not be bound to make any investigation into the
     facts or matters stated in any resolution, certificate, statement,
     instrument, opinion, report, notice, request, direction, consent, order,
     bond, debenture, note, coupon, other evidence of indebtedness or other
     paper or document, but the Trustee, in its discretion, may make such
     further inquiry or investigation into such facts or matters as it may see
     fit, and, if the Trustee shall determine to make such further inquiry or
     investigation, it shall be entitled to examine the books, records and
     premises of the Company, personally or by agent or attorney, other than any
     such books or records containing information as to the affairs of the
     customers of the Company or any of its subsidiaries; provided that the
     Trustee may examine such books and records relating to customers to the
     extent that such books and records contain information as to any payments
     made to such customers in their capacity as Holders of Debt Securities; and

          (g) the Trustee may execute any of the trusts or powers hereunder or
     perform any duties hereunder either directly or by or through agents or
     attorneys and the Trustee shall not be responsible for any misconduct or
     negligence on the part of any agent or attorney appointed with due care by
     it hereunder; no Exchange Rate Agent, Capital Exchange Agent, Global
     Exchange Agent, Depositary or Paying Agent shall be deemed an agent of the
     Trustee and the Trustee shall not be responsible for any act or omission by
     any of them.

     Section 604. Not Responsible for Recitals or Issuance of Debt Securities.

     The recitals contained herein and in the Debt Securities, except the
Trustee's certificates of authentication, and in any coupons, and the
information in any registration statement, including all attachments thereto,
except information provided by the Trustee therein, shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Debt Securities of any series or any
coupons or any Capital Securities. The Trustee shall not be accountable for the
use or application by the Company of any Debt Securities or the proceeds
thereof. The Trustee shall not be responsible for and makes no representations
to the Company's ability or authority to issue Bearer Securities or the
lawfulness thereof.

     Section 605. May Hold Debt Securities or Coupons.

     The Trustee, any Paying Agent, the Security Registrar or any other agent of
the Company or the Trustee, in its individual or any other capacity, may become
the owner or pledgee of Debt Securities and coupons, and, subject to Sections
608 and 613, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Paying Agent, Security Registrar or such agent.

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     Section 606. Money Held in Trust.

     Money held by the Trustee or any Paying Agent in trust hereunder need not
be segregated from other funds except to the extent required by law. Neither the
Trustee nor any Paying Agent shall be under any liability for interest on any
money received by it hereunder except as otherwise agreed with the Company.

     Section 607. Compensation and Reimbursement.

     The Company agrees

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

          (2) except as otherwise expressly provided herein, to reimburse the
     Trustee upon its request for all reasonable expenses, disbursements and
     advances incurred or made by the Trustee in accordance with any provision
     of this Indenture (including the reasonable compensation and the expenses
     and disbursements of its agents and counsel), except any such expense,
     disbursement or advance as may be attributable to its negligence or bad
     faith; and

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

     As security for the performance of the obligations of the Company under
this Section the Trustee shall have a claim prior to the Debt Securities and any
coupons upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the payment of principal of (and premium, if any)
or interest on particular Debt Securities or any coupons. The claims of the
Trustee under this Section shall not be subject to the provisions of Article
XVIII. The provisions of this Section 607 shall survive the termination of this
Indenture and the resignation or removal of the Trustee.

     Section 608. Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire any conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture. To the extent
permitted by such Act, the Trustee shall not be deemed to have a conflicting
interest with respect to Debt Securities of any series by virtue of being a
trustee under this Indenture with respect to Debt Securities of any particular
series of Debt Securities other than that series. The Trust Agreement and the
Guarantee Agreement with respect to each Issuer Trust shall be deemed to be
specifically described in this Indenture for the purposes of clause (i) of the
first proviso contained in Section 310(b) of the Trust Indenture Act.

     Section 609. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a
corporation that is eligible pursuant to the Trust Indenture Act to act as such

                                       49

<PAGE>

and organized and doing business under the laws of the United States, any State
thereof, the District of Columbia or the Commonwealth of Puerto Rico, authorized
under such laws to exercise corporate trust powers, having a combined capital
and surplus of at least $50,000,000, and subject to supervision or examination
by United States federal, State or Commonwealth of Puerto Rico authority;
provided, however, that if Section 310(a) of the Trust Indenture Act or the
rules and regulations of the Commission under the Trust Indenture Act at any
time permit a corporation organized and doing business under the laws of any
other jurisdiction to serve as trustee of an indenture qualified under the Trust
Indenture Act, this Section 609 shall be automatically amended to permit a
corporation organized and doing business under the laws of any such other
jurisdiction to serve as Trustee hereunder. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of the aforesaid supervising or examining authority, then for the purposes of
this Section, the combined capital and surplus of such corporation shall be
deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, it shall resign
immediately in the manner and with the effect hereinafter specified in this
Article.

     Section 610. Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a
     successor Trustee pursuant to this Article shall become effective until the
     acceptance of appointment by the successor Trustee under Section 611.

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

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

          (d) If at any time:

               (1) the Trustee shall fail to comply with Section 608 with
respect to the Debt Securities of any series after written request therefor by
the Company or by any Holder who has been a bona fide Holder of a Debt Security
of such series for at least six months, or

               (2) the Trustee shall cease to be eligible under Section 609 with
respect to any series of Debt Securities and shall fail to resign after written
request therefor by the Company or by any such Holder, or

               (3) the Trustee shall become incapable of acting with respect to
any series of Debt Securities or a decree or order for relief by a court having
jurisdiction in the premises shall have been entered in respect of the Trustee
in an involuntary case under the United States federal bankruptcy laws, as now
or hereafter constituted, or any other applicable United States federal, State
or Commonwealth of Puerto Rico bankruptcy, insolvency or similar law; or a
decree or order by a court having jurisdiction in the premises shall have been
entered for the appointment of a receiver, custodian, liquidator, assignee,
trustee, sequestrator or other similar official of the Trustee or of its
property or affairs, or any public officer shall take charge or control of the
Trustee or

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<PAGE>

of its property or affairs for the purpose of rehabilitation, conservation,
winding up or liquidation, or

               (4) the Trustee shall commence a voluntary case under the United
States federal bankruptcy laws, as now or hereafter constituted, or any other
applicable United States federal, State or Commonwealth of Puerto Rico
bankruptcy, insolvency or similar law or shall consent to the appointment of or
taking possession by a receiver, custodian, liquidator, assignee, trustee,
sequestrator or other similar official of the Trustee or its property or
affairs, or shall make an assignment for the benefit of creditors, or shall
admit in writing its inability to pay its debts generally as they become due, or
shall take corporate action in furtherance of any such action,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to such series or (ii) subject to Section 514, any Holder
who has been a bona fide Holder of a Debt Security of any series for at least
six months may, on behalf of himself and all others similarly situated, petition
any court of competent jurisdiction for the removal of the Trustee for the Debt
Securities of such series and the appointment of a successor Trustee.

          (e) If the Trustee shall resign, be removed or become incapable of
     acting with respect to any series of Debt Securities, or if a vacancy shall
     occur in the office of Trustee for any cause, with respect to the Debt
     Securities of one or more series, the Company, by a Board Resolution, shall
     promptly appoint a successor Trustee or Trustees with respect to the Debt
     Securities of that or those series (it being understood that any such
     successor Trustee may be appointed with respect to the Debt Securities of
     one or more or all of such series and that at any time there shall be only
     one Trustee with respect to the Debt Securities of any particular series)
     and shall comply with the applicable requirements of Section 611. If,
     within one year after such resignation, removal or incapability, or the
     occurrence of such vacancy, a successor Trustee with respect to the Debt
     Securities of any series shall be appointed by Act of the Holders of a
     majority in principal amount of the Outstanding Debt Securities of such
     series delivered to the Company and the retiring Trustee, the successor
     Trustee so appointed shall, forthwith upon its acceptance of such
     appointment, become the successor Trustee with respect to the Debt
     Securities of such series and to that extent supersede the successor
     Trustee appointed by the Company. If no successor Trustee with respect to
     the Debt Securities of any series shall have been so appointed by the
     Company or the Holders and accepted appointment in the manner hereinafter
     provided, any Holder who has been a bona fide Holder of a Debt Security of
     such series for at least six months may, subject to Section 514, on behalf
     of himself and all others similarly situated, petition any court of
     competent jurisdiction for the appointment of a successor Trustee with
     respect to the Debt Securities of such series.

          (f) The Company shall give notice of each resignation and each removal
     of the Trustee with respect to the Debt Securities of any series and each
     appointment of a successor Trustee with respect to the Debt Securities of
     any series by mailing written notice of such event by first-class mail,
     postage prepaid, to the Holders of Registered Securities, if any, of such
     series as their names and addresses appear in the Security Register and, if
     Debt Securities of such series are issuable as Bearer Securities, by
     publishing notice of such event once in an Authorized Newspaper in each
     Place of Payment located outside the United States. Each notice shall
     include the name of the successor Trustee with respect to the Debt
     Securities of such series and the address of its Corporate Trust Office.

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<PAGE>

     Section 611. Acceptance of Appointment by Successor.

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

          (b) In the case of the appointment hereunder of a successor Trustee
     with respect to the Debt Securities of one or more (but not all) series,
     the Company, the retiring Trustee upon payment of its charges and each
     successor Trustee with respect to the Debt Securities of one or more series
     shall execute and deliver an indenture supplemental hereto wherein each
     successor Trustee shall accept such appointment and which (1) shall contain
     such provisions as shall be necessary or desirable to transfer and confirm
     to, and to vest in, each successor Trustee all the rights, powers, trusts
     and duties of the retiring Trustee with respect to the Debt Securities of
     that or those series to which the appointment of such successor Trustee
     relates, (2) if the retiring Trustee is not retiring with respect to all
     Debt Securities, shall contain such provisions as shall be deemed necessary
     or desirable to confirm that all the rights, powers, trusts and duties of
     the retiring Trustee with respect to the Debt Securities of that or those
     series as to which the retiring Trustee is not retiring shall continue to
     be vested in the retiring Trustee, and (3) shall add to or change any of
     the provisions of this Indenture as shall be necessary to provide for or
     facilitate the administration of the trusts hereunder by more than one
     Trustee, it being understood that nothing herein or in such supplemental
     indenture shall constitute such Trustees co-trustees of the same trust and
     that each such Trustee shall be trustee of a trust or trusts hereunder
     separate and apart from any trust or trusts hereunder administered by any
     other such Trustee; and upon the execution and delivery of such
     supplemental indenture, the resignation or removal of the retiring Trustee
     shall become effective to the extent provided therein and each such
     successor Trustee, without any further act, deed or conveyance, shall
     become vested with all the rights, powers, trusts and duties of the
     retiring Trustee with respect to the Debt Securities of that or those
     series to which the appointment of such successor Trustee relates; but, on
     the request of the Company or any successor Trustee, such retiring Trustee
     shall duly assign, transfer and deliver to such successor Trustee all
     property and money held by such retiring Trustee hereunder with respect to
     the Debt Securities of that or those series to which the appointment of
     such successor Trustee relates.

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

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

                                       52

<PAGE>

     Section 612. Merger, Conversion, Consolidation or Succession to Business.

     Any corporation into which the Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified and eligible under this
Article, without the executing or filing of any paper or any further act on the
part of any of the parties hereto. In case any Debt Securities shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Debt Securities so authenticated with the
same effect as if such successor Trustee had itself authenticated such Debt
Securities. In case any Debt Securities shall not have been authenticated by
such predecessor Trustee, any such successor Trustee may authenticate and
deliver such Debt Securities, in either its own name or that of its predecessor
Trustee, with the full force and effect which this Indenture provides for the
certificate of authentication of the Trustee.

     Section 613. Preferential Collection of Claims Against Company.

     If and when the Trustee shall be or shall become a creditor, directly or
indirectly, secured or unsecured, of the Company (or any other obligor upon the
Debt Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding collection of claims against the Company (or any such
other obligor).

     Section 614. Authenticating Agent.

     The Trustee shall upon Company request appoint one or more authenticating
agents (including, without limitation, the Company or any Affiliate thereof)
with respect to one or more series of Debt Securities which shall be authorized
on behalf of the Trustee in authenticating Debt Securities of such series in
connection with the issue, delivery, registration of transfer, exchange, partial
redemption or repayment of such Debt Securities. Wherever reference is made in
this Indenture to the authentication of Debt Securities by the Trustee or the
Trustee's certificate of authentication, such reference shall be deemed to
include authentication on behalf of the Trustee by an authenticating agent and a
certificate of authentication executed on behalf of the Trustee by an
authenticating agent. Each authenticating agent must be acceptable to the
Company and must be a corporation organized and doing business under the laws of
the United States or of any State or the District of Columbia or the
Commonwealth of Puerto Rico, having a combined capital and surplus of at least
$1,000,000, authorized under such laws to do a trust business and subject to
supervision or examination by United States federal, State or Commonwealth of
Puerto Rico authorities or the equivalent foreign authority, in the case of an
authenticating agent who is not organized and doing business under the laws of
the United States or of any State thereof or the District of Columbia or the
Commonwealth of Puerto Rico.

     Any corporation succeeding to the corporate agency business of an
authenticating agent shall continue to be an authenticating agent without the
execution or filing of any paper or any further act on the part of the Trustee
or such authenticating agent.

     An authenticating agent may at any time resign with respect to one or more
series of Debt Securities by giving written notice of resignation to the Trustee
and to the Company. The Trustee may at any time terminate the agency of any
authenticating agent with respect to one or more series of Debt Securities by

                                       53

<PAGE>

giving written notice of termination to such authenticating agent and to the
Company. Upon receiving such a notice of resignation or upon such a termination,
or in case at any time an authenticating agent shall cease to be eligible in
accordance with the provisions of this Section, the Trustee promptly may appoint
a successor authenticating agent. Any successor authenticating agent upon
acceptance of its appointment hereunder shall become vested with all rights,
powers and duties of its predecessor hereunder, with like effect as if
originally named as an authenticating agent herein. No successor authenticating
agent shall be appointed unless eligible under the provisions of this Section.

     The Company agrees to pay to each authenticating agent from time to time
reasonable compensation for its services under this Section.

     The provisions of Sections 104, 111, 306, 309, 603, 604 and 605 shall be
applicable to any authenticating agent.

     Pursuant to each appointment made under this Section, the Debt Securities
of each series covered by such appointment may have endorsed thereon, in lieu of
the Trustee's certificate of authentication, an alternate certificate of
authentication in substantially the following form:

     This is one of the Debt Securities, of the series designated herein,
described in the within-mentioned Indenture.

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

                                        By
                                           -------------------------------------
                                           As Authenticating Agent for the
                                           Trustee

                                        By
                                           -------------------------------------
                                           Authorized Officer

                                  ARTICLE VII

                Holders' Lists and Reports By Trustee and Company

     Section 701. Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee with
respect to Debt Securities of each series for which it acts as Trustee:

          (1) not more than 15 days after the Regular Record Date in respect of
     the Debt Securities of such series or on May 15 and November 15 of each
     year with respect to each series of Debt Securities for which there are no
     Regular Record Dates, a list, in such form as the Trustee may reasonably
     require, of the names and addresses of the Holders of Registered Securities
     as of such Regular Record Date or May 1 or November 1, as the case may be,
     and

          (2) at such other times as the Trustee may request in writing, within
     30 days after the receipt by the Company of any such request, a list of
     similar form and content as of a date not more than 15 days prior to the
     time such list is furnished;

                                       54

<PAGE>

provided, however, that if and so long as the Trustee shall be the Security
Registrar, no such list need be furnished.

     Section 702. Preservation of Information; Communications to Holders.

          (a) The Trustee shall preserve, in as current a form as is reasonably
     practicable, the names and addresses of Holders of Registered Securities
     contained in the most recent list furnished to the Trustee as provided in
     Section 701 and the names and addresses of Holders of Registered Securities
     received by the Trustee in its capacity as Paying Agent or Security
     Registrar, if so acting. The Trustee may destroy any list furnished to it
     as provided in Section 701 upon receipt of a new list so furnished. The
     Trustee shall preserve for at least two years the names and addresses of
     Holders of Bearer Securities filed with the Trustee by such Holders.

          (b) The rights of Holders to communicate with other Holders with
     respect to their rights under this Indenture or under the Debt Securities,
     and the corresponding rights and privileges of the Trustee, shall be as
     provided by the Trust Indenture Act.

          (c) Every Holder of Debt Securities or coupons, by receiving and
     holding the same, agrees with the Company and the Trustee that neither the
     Company nor the Trustee shall be held accountable by reason of any
     disclosure of information as to the names and addresses of the Holders made
     pursuant to the Trust Indenture Act.

     Section 703. Reports by Trustee.

          (a) Within 60 days after April 15 of each year commencing with the
     first April 15 after the first issuance of Debt Securities pursuant to this
     Indenture and at any other time required by the Trust Indenture Act, the
     Trustee shall transmit to Holders such reports concerning the Trustee and
     its actions under this Indenture and such other matters as may be required
     pursuant to the Trust Indenture Act in the manner required by the Trust
     Indenture Act.

          (b) A copy of each such report shall, at the time of such transmission
     to Holders, be filed by the Trustee with each stock exchange upon which any
     Debt Securities of such series are listed, with the Commission and also
     with the Company. The Company will notify the Trustee when any series of
     Debt Securities are listed on any stock exchange.

     Section 704. Reports by Company.

     The Company shall file with the Trustee and the Commission, and transmit to
Holders, such information, documents and other reports, and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at the time and
in the manner pursuant to such Act; provided that such information, documents or
reports required to be filed with the Commission pursuant to Section 13 or
Section 15(d) of the Securities Exchange Act of 1934 shall be filed with the
Trustee within 15 days after the same are so required to be filed with the
Commission.

                                  ARTICLE VIII

              Consolidation, Merger, Conveyance, Transfer or Lease

     Section 801. Company May Consolidate, etc. only on Certain Terms.

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<PAGE>

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

          (1) the corporation formed by such consolidation or into which the
     Company is merged or the Person which acquires by conveyance or transfer,
     or which leases, the properties and assets of the Company substantially as
     an entirety shall be a corporation organized and existing under the laws of
     the United States of America, any political subdivision thereof, any State
     thereof or the Commonwealth of Puerto Rico and shall expressly assume, by
     an indenture supplemental hereto, executed and delivered to the Trustee, in
     form satisfactory to the Trustee, the due and punctual payment of the
     principal of (and premium, if any) and interest (including any Additional
     Interest and all additional amounts, if any, payable pursuant to Section
     1006) on all the Debt Securities and any related coupons and the
     performance of every covenant of this Indenture on the part of the Company
     to be performed or observed;

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

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

     Section 802. Successor Corporation Substituted.

     Upon any consolidation with or merger into any other corporation, or any
conveyance, transfer or lease of the properties and assets of the Company
substantially as an entirety in accordance with Section 801, the successor
corporation formed by such consolidation or into which the Company is merged or
to which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor had been named as the
Company herein, and thereafter, except in the case of a lease, the Company
(which term for this purpose shall mean the Person named as the "Company" in the
first paragraph of this instrument or any successor corporation which shall
theretofore have become such in the manner presented in this Article) shall be
relieved of all obligations and covenants under this Indenture and the Debt
Securities and coupons.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

     Section 901. Supplemental Indentures without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into
one or more indentures supplemental hereto, in form satisfactory to the Trustee,
for any of the following purposes:

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

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<PAGE>

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

          (3) to add any additional Events of Default (and if such Events of
     Default are to be applicable to less than all series of Debt Securities,
     stating that such Events of Default are expressly being included solely to
     be applicable to such series); or

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

          (5) to change or eliminate any of the provisions of this Indenture,
     provided that any such change or elimination (a) shall become effective
     only when there is no Debt Security Outstanding of any series created prior
     to the execution of such supplemental indenture which is entitled to the
     benefit of such provisions or (b) shall not apply to any Debt Security
     Outstanding; or

          (6) to establish the form or terms of Debt Securities of any series as
     permitted by Sections 201 and 301; or

          (7) to evidence and provide for the acceptance of appointment
     hereunder by a successor Trustee with respect to the Debt Securities of one
     or more series and to add to or change any of the provisions of this
     Indenture as shall be necessary to provide for or facilitate the
     administration of the trusts hereunder by more than one Trustee, pursuant
     to the requirements of Section 611(b); or

          (8) to cure any ambiguity, to correct or supplement any provision
     herein which may be defective or inconsistent with any other provision
     herein, or to make any other provisions with respect to matters or
     questions arising under this Indenture which shall not be inconsistent with
     any provision of this Indenture, provided such other provisions shall not
     adversely affect the interests of the Holders of Debt Securities of any
     series or any related coupons in any material respect or, in the case of
     the Debt Securities of a series issued to an Issuer Trust and for so long
     as any of the corresponding series of Capital Trust Securities issued by
     such Issuer Trust shall remain outstanding, the holders of such Capital
     Trust Securities; or

          (9) to add to or change or eliminate any provision of this Indenture
     as shall be necessary or desirable in accordance with any amendments to the
     Trust Indenture Act, provided such action shall not adversely affect the
     interest of Holders of Debt Securities of any series or any appurtenant
     coupons in any material respect.

     Section 902. Supplemental Indentures with Consent of Holders.

                                       57

<PAGE>

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

          (1) change the Stated Maturity of the principal or any installment of
     principal of, or any installment of interest (including any Additional
     Interest) on, any Debt Security (other than to the extent set forth in any
     such Debt Security), or reduce the principal amount thereof or the interest
     thereon or any premium payable upon redemption or repayment thereof, or
     change any obligation of the Company to pay additional amounts pursuant to
     Section 1006 (except as contemplated by Section 801(1) and permitted by
     Section 901(1)), or reduce the amount of the principal of an Original Issue
     Discount Security that would be due and payable upon a declaration of
     acceleration of the Maturity thereof pursuant to Section 502, or change any
     Place of Payment, or the coin or currency in which any Debt Security or the
     interest thereon or any coupon is payable, or impair any right to the
     delivery of Capital Securities in exchange for Debt Securities provided for
     in this Indenture or the right to institute suit for the enforcement of any
     such payment on or after the Stated Maturity thereof (or, in the case of
     redemption or repayment, on or after the Redemption Date or Repayment Date
     or Capital Exchange Date, as the case may be), or

          (2) reduce the percentage in principal amount of the Outstanding Debt
     Securities of any series, the consent of whose Holders is required for any
     such supplemental indenture, or the consent of whose Holders is required
     for any waiver (of compliance with certain provisions of this Indenture or
     certain defaults hereunder and their consequences) provided for in this
     Indenture, or reduce the requirements of Section 1604 for quorum or voting,
     or

          (3) modify any of the provisions of this Section, Section 513 or
     Section 1005, except to increase any such percentage or to provide that
     certain other provisions of this Indenture cannot be modified or waived
     without the consent of the Holder of each Outstanding Debt Security
     affected thereby; provided, however, that this clause shall not be deemed
     to require the consent of any Holder with respect to changes in the
     references to "the Trustee" and concomitant changes in this Section and
     Section 1005, or the deletion of this proviso, in accordance with the
     requirements of Section 611(b) and 901(7); or

          (4) adversely affect the right to repayment, if any, of Debt
     Securities of any series at the option of the Holders thereof; or

          (5) impair the right of any Holder of Debt Securities of any series to
     receive Capital Securities on any Capital Exchange Date for Debt Securities
     of such series with a Market Value equal to the principal amount of such
     Holder's Debt Securities of such series or in an amount sufficient to
     provide proceeds upon sale by the Company in the Secondary Offering equal
     to the principal amount of such Holder's Debt Securities of such series; or

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<PAGE>

          (6) impair the right of any Holder of Convertible Securities of any
     series to convert such Debt Securities pursuant to Article XIX;

and provided, further, that no change shall be made in the provisions of Article
XVIII that will affect adversely the holders of Senior Debt without the consent
of the holders of all Senior Debt Outstanding; and provided, further, that, in
the case of the Debt Securities of a series issued to an Issuer Trust, so long
as any of the corresponding series of Capital Trust Securities issued by such
Issuer Trust remains outstanding, (i) no such amendment shall be made that
adversely affects the holders of such related Capital Trust Securities in any
material respect, and no termination of this Indenture shall occur, and no
waiver of compliance with any covenant under this Indenture shall be effective,
without the prior consent of the holders of at least a majority of the aggregate
Liquidation Amount (as defined in the related Trust Agreement) of such Capital
Trust Securities then outstanding unless and until the principal of (and
premium, if any, on) the Debt Securities of such series and all accrued and
(subject to Section 307) unpaid interest (including any Additional Interest)
thereon have been paid in full, (ii) no such amendment or waiver that requires
the consent of the Holder of each Outstanding Debt Security affected thereby
shall be made without the prior consent of all the holders of the related
Capital Trust Securities then outstanding unless and until the principal of (and
premium, if any, on) the Debt Securities of such series and all accrued interest
and (subject to Section 307) unpaid interest (including any Additional Interest)
therein have been paid in full, and (iii) no amendment shall be made to Section
508 of this Indenture that would impair the rights of the holders of Capital
Trust Securities issued by any Issuer Trust provided therein without the prior
consent of the holders of each such Capital Trust Security then outstanding
unless and until the principal of (and premium, if any, on) the Debt Securities
of such series and all accrued and (subject to Section 307) unpaid interest
(including any Additional Interest) thereon have been paid in full.

     A supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which has expressly been included solely for the
benefit of one or more particular series of Debt Securities or any corresponding
series of Capital Trust Securities of an Issuer Trust that holds the Debt
Securities of any series, or which modifies the rights of the Holders of Debt
Securities of such series or holders of such Capital Trust Securities of such
corresponding series with respect to such covenant or other provision, shall be
deemed not to affect the rights under this Indenture of the Holders of Debt
Securities of any other series or holders of Capital Trust Securities of any
other such corresponding series.

     It shall not be necessary for any Act of Holders of the Debt Securities
under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

     Section 903. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and (subject to Section 601) shall be fully protected in relying upon, an
Opinion of Counsel and an Officers' Certificate each stating that the execution
of such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.

     Section 904. Effect of Supplemental Indentures.

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<PAGE>

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

     Section 905. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall
conform to the requirements of the Trust Indenture Act as then in effect.

     Section 906. Reference in Debt Securities to Supplemental Indentures.

     Debt Securities of any series authenticated and delivered after the
execution of any supplemental indenture pursuant to this Article may, and shall
if required by the Trustee, bear a notation in form approved by the Trustee as
to any matter provided for in such supplemental indenture. If the Company shall
so determine, new Debt Securities of any series and any appurtenant coupons so
modified as to conform, in the opinion of the Trustee and the Board of
Directors, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for
Outstanding Debt Securities of such series and any appurtenant coupons.

                                   ARTICLE X

                                    Covenants

     Section 1001. Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of Debt
Securities and any appurtenant coupons that it will duly and punctually pay the
principal of (and premium, if any) and interest (including any Additional
Interest) on the Debt Securities and any appurtenant coupons in accordance with
the terms of the Debt Securities, any appurtenant coupons and this Indenture.
Any interest due on Bearer Securities on or before Maturity, other than
additional amounts, if any, payable as provided in Section 1006 in respect of
principal of (or premium, if any, on) such a Debt Security, shall be payable
only upon presentation and surrender of the several coupons for such interest
installments as are evidenced thereby as they severally mature. For all purposes
of this Indenture, the exchange of Capital Securities for Debt Securities of any
series pursuant to the Indenture shall constitute full payment of principal of
the Debt Securities of such series being exchanged on any Capital Exchange Date
for Debt Securities of such series, without prejudice to any Holder's rights
pursuant to Section 1413.

     Section 1002. Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of Debt
Securities an office or agency where Debt Securities (but, except as otherwise
provided below, unless such Place of Payment is located outside the United
States, not Bearer Securities) may be presented or surrendered for payment,
where Debt Securities may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Company in respect of the
Debt Securities and this Indenture may be served. If Debt Securities of a series
are issuable as Bearer Securities, the Company will maintain, subject to any
laws or regulations applicable thereto, an office or agency in a Place of
Payment for such series which is located outside the United States where Debt
Securities of such series and the related coupons may be presented and
surrendered for payment (including payment of any additional amounts payable on
Debt Securities of such series pursuant to Section 1006); provided, however,
that if the Debt Securities

                                       60
<PAGE>

of such series are listed on The Stock Exchange of the United Kingdom and the
Republic of Ireland or the Luxembourg Stock Exchange or any other stock exchange
located outside the United States and such stock exchange shall so require, the
Company will maintain a Paying Agent in London or Luxembourg or any other
required city located outside the United States, as the case may be, so long as
the Debt Securities of such series are listed on such exchange. The Company will
give prompt written notice to the Trustee of the location, and any change in the
location, of any such office or agency. If at any time the Company shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee
with the address thereof, such presentations, surrenders, notices or demands may
be made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee its agent to receive all presentations, surrenders,
notices and demands, except that Bearer Securities of that series and the
related coupons may be presented and surrendered for payment (including payment
of any additional amounts payable on Bearer Securities of that series pursuant
to Section 1006) at the place specified for the purpose pursuant to Section
301(5).

     No payment of principal of, premium or interest on Bearer Securities shall
be made at any office or agency of the Company in the United States or by check
mailed to any address in the United States or by transfer to an account
maintained with a bank located in the United States; provided, however, payment
of principal of and any premium and interest denominated in Dollars (including
additional amounts payable in respect thereof) on any Bearer Security may be
made at an office or agency of, and designated by, the Company located in the
United States if (but only if) payment of the full amount of such principal,
premium, interest or additional amounts in Dollars at all offices outside the
United States maintained for the purpose by the Company in accordance with this
Indenture is illegal or effectively precluded by exchange controls or other
similar restrictions and the Trustee receives an Opinion of Counsel that such
payment within the United States is legal. Unless otherwise provided as
contemplated by Section 301 with respect to any series of Debt Securities, at
the option of the Holder of any Bearer Security or related coupon, payment may
be made by check in the currency designated for such payment pursuant to the
terms of such Bearer Security presented or mailed to an address outside the
United States or by transfer to an account in such currency maintained by the
payee with a bank located outside the United States.

     The Company may also from time to time designate one or more other offices
or agencies (in or outside of such Place of Payment) where the Debt Securities
of one or more series and any appurtenant coupons (subject to the preceding
paragraph) may be presented or surrendered for any or all such purposes, and may
from time to time rescind such designations; provided, however, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in each Place of Payment for any
series of Debt Securities for such purposes. The Company will give prompt
written notice to the Trustee of any such designation and any change in the
location of any such other office or agency.

     Section 1003. Money for Debt Securities Payments to Be Held in Trust.

     If the Company shall at any time act as its own Paying Agent with respect
to any series of Debt Securities, it will, on or before each due date of the
principal of (and premium, if any) or interest on any of the Debt Securities of
such series and any appurtenant coupons, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
(and premium, if any) or interest (including any Additional Interest) so
becoming due until such sums shall be paid to such Persons or otherwise disposed
of as herein provided, and will promptly notify the Trustee of its action or
failure so to act.

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

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

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

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

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

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

     Any principal and interest received on the Eligible Instruments deposited
with the Trustee or any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of (and
premium, if any) or interest (including any Additional Interest) on any Debt
Security of any series or any appurtenant coupons or any money on deposit with
the Trustee or any Paying Agent representing amounts deducted from the
Redemption Price or Repayment Price with respect to unmatured coupons not
presented upon redemption or exercise of the Holder's option for repayment
pursuant to Section 1106 or 1303 and remaining unclaimed for two years after
such principal (and premium, if any) or interest has become due and payable
shall be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Debt
Security or any coupon appertaining thereto shall thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money
(including the principal and interest received on Eligible Instruments deposited
with the Trustee), and all liability of the Company as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of the
Company cause to be published once, in an Authorized Newspaper of general
circulation in the Borough of Manhattan, The City

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of New York, and each Place of Payment or mailed to each such Holder, or both,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication
or mailing, any unclaimed balance of such money then remaining will be repaid to
the Company.

     Section 1004. Officers' Certificate as to Default.

     The Company will deliver to the Trustee, on or before a date not more than
four months after the end of each fiscal year of the Company ending after the
date hereof, an Officers' Certificate, stating whether or not to the best
knowledge of the signers thereof the Company is in default in the performance
and observance of any of the terms, provisions and conditions of this Indenture,
and, if the Company shall be in default, specifying all such defaults and the
nature thereof of which they may have knowledge.

     Section 1005. Waiver of Certain Covenants.

     Subject to the rights of holders of Capital Trust Securities specified in
Section 902, if any, the Company may omit in any particular instance to comply
with any covenant or condition applicable to the Debt Securities of any series
pursuant to Section 301 unless such covenant or condition is determined pursuant
to Section 301 not to be subject to this provision if, before the time for such
compliance the Holders of at least a majority in principal amount of all series
of the Debt Securities at the time Outstanding to which such covenant or
condition applies shall, acting together as a class, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with
such covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of
the Trustee in respect of any such covenant or condition shall remain in full
force and effect.

     Section 1006. Payment of 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 any series
or any coupon appertaining thereto additional amounts upon the terms and subject
to the conditions provided therein. Whenever in this Indenture there is
mentioned, in any context, the payment of the principal of (or premium, if any)
or interest on, or in respect of, any Debt Security of any series or any related
coupon or the net proceeds received on the sale or exchange of any Debt Security
of any series, such mention shall be deemed to include mention of the payment of
additional amounts provided for in the terms of such Debt Securities and this
Section to the extent that, in such context, additional amounts are, were or
would be payable in respect thereof pursuant to the provisions of this Section
and express mention of the payment of additional amounts (if applicable) in any
provisions hereof shall not be construed as excluding additional amounts in
those provisions hereof where such express mention is not made.

     If the Debt Securities of a series provide for the payment of additional
amounts, at least 10 days prior to the first Interest Payment Date with respect
to that series of Debt Securities (or if the Debt Securities of that series will
not bear interest prior to Maturity, the first day on which a payment of
principal (and premium, if any) is made), and at least 10 days prior to each
date of payment of principal (and premium, if any) or interest if there has been
any change with respect to the matters set forth in the below-mentioned
Officers' Certificate, the Company will furnish the Trustee and the Company's
principal Paying Agent or Paying Agents, if other than the Trustee, with an
Officers' Certificate instructing the Trustee and such Paying Agent or Paying
Agents whether such payment of principal of (and premium, if any) or interest on
the

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Debt Securities of that series shall be made to Holders of Debt Securities of
that series or the related coupons who are United States Aliens without
withholding for or on account of any tax, assessment or other governmental
charge described in the Debt Securities of that series. If any such withholding
shall be required, then such Officers' Certificate shall specify by country the
amount, if any, required to be withheld on such payments to such Holders of Debt
Securities or coupons and the Company will pay to the Trustee or such Paying
Agent the additional amounts, if any, required by the terms of such Debt
Securities and the first paragraph of this Section. The Company covenants to
indemnify the Trustee and any Paying Agent for, and to hold them harmless
against, any loss, liability or expense reasonably incurred without negligence
or bad faith on their part arising out of or in connection with actions taken or
omitted by any of them in reliance on any Officers' Certificate furnished
pursuant to this Section.

     Section 1007. Additional Sums.

     In the case of the Debt Securities of a series initially issued to an
Issuer Trust, so long as no Event of Default has occurred and is continuing and
except as otherwise specified as contemplated by Section 301, if (i) an Issuer
Trust is the Holder of all of the Outstanding Debt Securities of such series,
and (ii) a Tax Event has occurred and is continuing in respect of such Issuer
Trust, the Company shall pay to such Issuer Trust (and its permitted successors
or assigns under the related Trust Agreement) for so long as such Issuer Trust
(or its permitted successor or assignee) is the registered holder of the
Outstanding Debt Securities of such series, such additional sums as may be
necessary in order that the amount of Distributions (including any Additional
Amounts (as defined in the relevant Trust Agreement)) then due and payable by
such Issuer Trust on the related Capital Trust Securities and Common Trust
Securities that at any time remain outstanding in accordance with the terms
thereof shall not be reduced as a result of any Additional Taxes arising from
such Tax Event; provided, however, that Additional Sums shall not include any
withholding taxes arising after the occurrence of a Tax Event and which have
been withheld from payments to Holders of Trust Securities and for which Holders
are liable (the "Additional Sums"). Whenever in this Indenture or the Debt
Securities there is a reference in any context to the payment of principal of or
interest on the Debt Securities, such mention shall be deemed to include mention
of the payments of the Additional Sums provided for in this paragraph to the
extent that, in such context, Additional Sums are, were or would be payable in
respect thereof pursuant to the provisions of this paragraph and express mention
of the payment of Additional Sums (if applicable) in any provisions hereof shall
not be construed as excluding Additional Sums in those provisions hereof where
such express mention is not made; provided, however, that the deferral of the
payment of interest pursuant to Section 313 or the Debt Securities shall not
defer the payment of any Additional Sums that may be due and payable.

     Section 1008. Additional Covenants.

     The Company covenants and agrees with each Holder of Debt Securities of
each series that it shall not (x) make any payment of principal of or interest
or premium, if any, on or repay, repurchase or redeem any debt securities of the
Company that rank pari passu in all respects with or junior in interest to the
Debt Securities of such series, or (y) declare or pay any dividends or
distributions on, or redeem, purchase, acquire or make a liquidation payment
with respect to, any shares of the Company's capital stock (other than (a)
repurchases, redemptions or other acquisitions of shares of capital stock of the
Company in connection with any employment contract, benefit plan or other
similar arrangement with or for the benefit of any one or more employees,
officers, directors or consultants, in connection with a dividend reinvestment
or stockholder stock purchase plan or in connection with the issuance of capital
stock of the Company (or securities convertible into or exercisable for such
capital stock) as consideration in an acquisition transaction entered into prior

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to the applicable Extension Period, (b) as a result of an exchange, redemption
or conversion of any other class or series of the Company's capital stock (or
any capital stock of a subsidiary of the Company) for any class or series of the
Company's capital stock, or of any class or series of the Company's indebtedness
for any class or series of the Company's capital stock, (c) the purchase of
fractional interests in shares of the Company's capital stock pursuant to the
conversion or exchange provisions of such capital stock or the securities being
converted or exchanged, (d) any declaration of a dividend in connection with any
Rights Plan, or the issuance of rights, stock or other property under any Rights
Plan, or the redemption or repurchase of rights pursuant thereto, (e) any
payment by the Company under any Guarantee Agreement, or (f) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the
same stock as that on which the dividend is being paid or ranks pari passu with
or junior to such stock) if at such time (i) there shall have occurred any event
(A) of which the Company has actual knowledge that with the giving of notice or
the lapse of time, or both, would constitute an Event of Default with respect to
the Debt Securities of such series under Sections 501(1), (2), (5) or (6), and
(B) which the Company shall not have taken reasonable steps to cure, (ii) if the
Debt Securities of such series are held by an Issuer Trust, the Company shall be
in default with respect to its payment of any obligations under the Guarantee
Agreement relating to the Capital Trust Securities issued by such Issuer Trust,
or (iii) the Company shall have given notice of its election to begin an
Extension Period with respect to the Debt Securities of such series as provided
herein and shall not have rescinded such notice, and such Extension Period, or
any extension thereof, shall be continuing.

     The Company also covenants with each Holder of Debt Securities of a series
issued to an Issuer Trust (i) to hold, directly or indirectly, 100% of the
Common Trust Securities of such Issuer Trust, provided that any permitted
successor of the Company hereunder may succeed to the Company's ownership of
such Common Trust Securities, (ii) as holder of such Common Trust Securities,
not to voluntarily terminate, wind-up or liquidate such Issuer Trust, other than
(a) in connection with a distribution of the Debt Securities of such series to
the holders of the related Capital Trust Securities in liquidation of such
Issuer Trust, or (b) in connection with certain mergers, consolidations or
amalgamations permitted by the related Trust Agreement, and (iii) to use its
reasonable efforts, consistent with the terms and provisions of such Trust
Agreement, to cause such Issuer Trust to continue not to be taxable as a
corporation for United States federal or Commonwealth of Puerto Rico income tax
purposes.

                                   ARTICLE XI

                          REDEMPTION OF DEBT SECURITIES

     Section 1101. Applicability of Article.

     Subject to the Company having received the prior approval of the Primary
Federal Regulator, if then required under the applicable capital guidelines or
policies of the Primary Federal Regulator, Debt Securities of any series which
are redeemable before their Stated Maturity shall be redeemable in accordance
with their terms and (except as otherwise specified as contemplated by Section
301 for Debt Securities of any series) in accordance with this Article.

     Section 1102. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Debt Securities shall be
evidenced by a Board Resolution. In case of any redemption at the election of
the Company of less than all of the Debt Securities of any series, the Company
shall, at least 45 days prior to the Redemption Date fixed by the Company
(unless a

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shorter notice shall be satisfactory to the Trustee), notify the Trustee and, in
the case of Debt Securities of a series held by an Issuer Trust, the Property
Trustee under the related Trust Agreement, of such Redemption Date and of the
principal amount and the tenor and terms of the Debt Securities of any series to
be redeemed; provided that in the case of any series of Debt Securities
initially issued to an Issuer Trust, for so long as such Debt Securities are
held by such Issuer Trust, such notice shall be given not less than 48 nor more
than 75 days prior to such Redemption Date (unless a shorter notice shall be
satisfactory to the Property Trustee under the related Trust Agreement). In the
case of any redemption of Debt Securities prior to the expiration of any
restriction on such redemption provided in the terms of such Debt Securities or
elsewhere in this Indenture, the Company shall furnish the Trustee with an
Officers' Certificate evidencing compliance with such restriction.

     Section 1103. Selection by Trustee of Debt Securities to be Redeemed

     Except as otherwise specified and contemplated by Section 301 for Debt
Securities of any series, if less than all the Debt Securities of any series
with like tenor and terms are to be redeemed, the particular Debt Securities to
be redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Debt Securities of such series with like
tenor and terms not previously called for redemption, by such method as the
Trustee shall deem fair and appropriate and which may provide for the selection
for redemption of portions (equal to the minimum authorized denomination for
Debt Securities of such series or any integral multiple thereof which is also an
authorized denomination) of the principal amount of Registered Securities or
Bearer Securities (if issued in more than one authorized denomination) of such
series of a denomination larger than the minimum authorized denomination for
Debt Securities of such series.

     The Trustee shall promptly notify the Company in writing of the Debt
Securities selected for redemption and, in the case of any Debt Securities
selected for partial redemption, the principal amount thereof to be redeemed.

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

     Section 1104. Notice of Redemption.

     Notice of redemption shall be given in the manner provided in Section 106
not less than 30 nor more than 60 days prior to the Redemption Date, to each
Holder of Debt Securities to be redeemed, provided that in the case of any
series of Debt Securities initially issued to an Issuer Trust, for so long as
such Debt Securities are held by such Issuer Trust, such notice shall be given
not less than 45 nor more than 75 days prior to such Redemption Date (unless a
shorter notice shall be satisfactory to the Property Trustee under the related
Trust Agreement).

     All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

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

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     redemption, the principal amounts) of the particular Debt Securities to be
     redeemed,

          (4) that on the Redemption Date the Redemption Price will become due
     and payable upon each such Debt Security to be redeemed, and that interest
     (including any Additional Interest) thereon shall cease to accrue on and
     after said date,

          (5) the Place or Places of Payment where such Debt Securities,
     together in the case of Bearer Securities with all coupons, if any,
     appertaining thereto maturing after the Redemption Date, are to be
     surrendered for payment of the Redemption Price,

          (6) that Bearer Securities may be surrendered for payment only at such
     place or places which are outside the United States, except as otherwise
     provided in Section 1002,

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

          (8) the CUSIP number, if any.

     A notice of redemption published as contemplated by Section 106 need not
identify particular Registered Securities to be redeemed.

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

     Section 1105. Deposit of Redemption Price.

     On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying
Agent, segregate and hold in trust as provided in Section 1003) an amount of
money and/or, to the extent the Debt Securities to be redeemed are denominated
and payable in Dollars only, Eligible Instruments the payments of principal and
interest on which when due (and without reinvestment and providing no tax
liability will be imposed upon the Trustee or the Holders of the Debt Securities
to be redeemed) will provide money on or prior to the Redemption Date in such
amounts as will (together with any money irrevocably deposited in trust with the
Trustee, without investment) be sufficient to pay the Redemption Price of, and
(except if the Redemption Date shall be an Interest Payment Date) accrued
interest (including any Additional Interest) on, all the Debt Securities or
portions thereof which are to be redeemed on that date; provided, however, that
deposits with respect to Bearer Securities shall be made with a Paying Agent or
Paying Agents located outside the United States except as otherwise provided in
Section 1002, unless otherwise specified as contemplated by Section 301.

     Section 1106. Debt Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Debt Securities to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Debt Securities shall cease to bear interest and the coupons for
such interest appertaining to any Bearer Securities so to be redeemed, except to
the extent provided below, shall be void. Upon surrender of any such Debt
Security for redemption in accordance with said notice, such Debt Security shall
be paid by the Company at the Redemption Price, together with accrued interest
(including any Additional Interest) to the Redemption Date; provided, however,
that installments of interest (including any Additional Interest) on Bearer

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Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable only upon presentation and surrender of coupons for such interest (at an
office or agency located outside the United States except as otherwise provided
in Section 1002), and provided further, that installments of interest (including
any Additional Interest) on Registered Securities whose Stated Maturity is on or
prior to the Redemption Date shall be payable to the Holders of such Debt
Securities, or one or more Predecessor Securities, registered as such on the
relevant Record Dates according to their terms and the provisions of Section
307.

     If any Bearer Security surrendered for redemption shall not be accompanied
by all appurtenant coupons maturing after the Redemption Date, such Bearer
Security may be paid after deducting from the Redemption Price an amount equal
to the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Bearer
Security shall surrender to the Trustee or any Paying Agent any such missing
coupon in respect of which a deduction shall have been made from the Redemption
Price, such Holder shall be entitled to receive the amount so deducted without
interest thereon; provided, however, that interest represented by coupons shall
be payable only upon presentation and surrender of those coupons at an office or
agency located outside of the United States except as otherwise provided in
Section 1002.

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

     Section 1107. Debt Securities Redeemed in Part.

     Any Registered Security which is to be redeemed only in part shall be
surrendered at a Place of Payment therefor (with, if the Company, the Security
Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company, the Security
Registrar and the Trustee duly executed by, the Holder thereof or his attorney
duly authorized in writing), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Debt Security without
service charge, a new Registered Security or Registered Securities of the same
series and of like tenor and terms, of any authorized denominations as requested
by such Holder in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Debt Security so surrendered.

     Section 1108. Right of Redemption of Debt Securities Initially Issued to an
Issuer Trust.

     In the case of the Debt Securities of a series initially issued to an
Issuer Trust, except as otherwise specified as contemplated by Section 301, the
Company, at its option, may redeem such Debt Securities (i) on or after the date
specified in such Debt Security, in whole at any time or in part from time to
time, or (ii) upon the occurrence and during the continuation of a Tax Event, an
Investment Company Event or a Capital Treatment Event, at any time within 90
days following the occurrence and during the continuation of such Tax Event,
Investment Company Event or Capital Treatment Event, in whole (but not in part),
in each case at a Redemption Price specified in such Debt Security, together
with accrued interest (including any Additional Interest) to, but excluding, the
Redemption Date.

     If less than all the Debt Securities of any such series are to be redeemed,
the aggregate principal amount of such Debt Securities remaining Outstanding
after giving effect to such redemption shall be sufficient to satisfy any

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provisions of the Trust Agreement related to the Issuer Trust to which such Debt
Securities were issued, including any requirement in such Trust Agreement as to
the minimum Liquidation Amount (as defined in such Trust Agreement) of Capital
Trust Securities that may be held by a holder of Capital Trust Securities
thereunder.

                                   ARTICLE XII

                                  Sinking Funds

     Section 1201. Applicability of Article.

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

     The minimum amount of any sinking fund payment provided for by the terms of
Debt Securities of any series is herein referred to as a "mandatory sinking fund
payment", and any payment in excess of such minimum amount provided for by the
term of Debt Securities of any series is herein referred to an "optional sinking
fund payment". If provided for by the terms of Debt Securities of any series,
the amount of any sinking fund payment may be subject to reduction as provided
in Section 1202. Each sinking fund payment shall be applied to the redemption of
Debt Securities of any series as provided for by the terms of Debt Securities of
such series.

     Section 1202. Satisfaction of Sinking Fund Payments with Debt Securities.

     The Company (1) may deliver Outstanding Debt Securities of a series (other
than any previously called for redemption), together in the case of any Bearer
Securities of such series with all unmatured coupons appertaining thereto, and
(2) may apply as a credit Debt Securities of a series which have been redeemed
either at the election of the Company pursuant to the terms of such Debt
Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Debt Securities, in each case in
satisfaction of all or any part of any sinking fund payment with respect to the
Debt Securities of such series required to be made pursuant to the terms of such
Debt Securities as provided for by the terms of such series; provided that such
Debt Securities have not been previously so credited. Such Debt Securities shall
be received and credited for such purpose by the Trustee at the Redemption Price
specified in such Debt Securities for redemption through operation of the
sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If as a result of the delivery or credit of Debt Securities in lieu
of cash payments pursuant to this Section 1202, the principal amount of Debt
Securities to be redeemed in order to exhaust the aforesaid cash payment shall
be less than $100,000, the Trustee need not call Debt Securities for redemption,
except upon Company Request, and such cash payment shall be held by the Trustee
or a Paying Agent and applied to the next succeeding sinking fund payment,
provided, however, that the Trustee or such Paying Agent shall at the request of
the Company from time to time pay over and deliver to the Company any cash
payment so being held by the Trustee or such Paying Agent upon delivery by the
Company to the Trustee of Debt Securities purchased by the Company having an
unpaid principal amount equal to the cash payment requested to be released to
the Company.

     Section 1203. Redemption of Debt Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any
series of Debt Securities (unless a shorter period shall be satisfactory to the
Trustee), the Company will deliver to the Trustee an Officers' Certificate

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specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash, the portion thereof, if any, which is to be
satisfied by crediting Debt Securities of that series pursuant to Section 1202
and the basis for any such credit and, prior to or concurrently with the
delivery of such Officers' Certificate, will also deliver to the Trustee any
Debt Securities to be so credited and not theretofore delivered to the Trustee.
Not less than 30 days (unless a shorter period shall be satisfactory to the
Trustee) before each such sinking fund payment date the Trustee shall select the
Debt Securities to be redeemed upon such sinking fund payment date in the manner
specified in Section 1103 and cause notice of the redemption thereof to be given
in the name of and at the expense of the Company in the manner provided in
Section 1104. Such notice having been duly given, the redemption of such Debt
Securities shall be made upon the terms and in the manner stated in Sections
1105, 1106 and 1107.

                                  ARTICLE XIII

                       Repayment at the Option of Holders

     Section 1301. Applicability of Article.

     Debt Securities of any series which are repayable at the option of the
Holders thereof before their Stated Maturity shall be repaid in accordance with
their terms and (except as otherwise specified pursuant to Section 301 for Debt
Securities of such series) in accordance with this Article.

     Section 1302. Repayment of Debt Securities.

     Each Debt Security which is subject to repayment in whole or in part at the
option of the Holder thereof on a Repayment Date shall be repaid at the
applicable Repayment Price together with interest accrued to such Repayment Date
as specified pursuant to Section 301.

     Section 1303. Exercise of Option; Notice.

     Each Holder desiring to exercise such Holder's option for repayment shall,
as conditions to such repayment, surrender the Debt Security to be repaid in
whole or in part together with written notice of the exercise of such option at
any office or agency of the Company in a Place of Payment, not less than 30 nor
more than 45 days prior to the Repayment Date; provided, however, that surrender
of Bearer Securities together with written notice of exercise of such option
shall be made at an office or agency located outside the United States except as
otherwise provided in Section 1002. Such notice, which shall be irrevocable,
shall specify the principal amount of such Debt Security to be repaid, which
shall be equal to the minimum authorized denomination for such Debt Security or
an integral multiple thereof, and shall identify the Debt Security to be repaid
and, in the case of a partial repayment of the Debt Security, shall specify the
denomination or denominations of the Debt Security or Debt Securities of the
same series to be issued to the Holder for the portion of the principal of the
Debt Security surrendered which is not to be repaid.

     If any Bearer Security surrendered for repayment shall not be accompanied
by all unmatured coupons and all matured coupons in default, such Bearer
Security may be paid after deducting from the Repayment Price an amount equal to
the face amount of all such missing coupons, or the surrender of such missing
coupon or coupons may be waived by the Company and the Trustee if there be
furnished to them such security or indemnity as they may require to save each of
them and any Paying Agent harmless. If thereafter the Holder of such Bearer
Security shall surrender to the Trustee or any Paying Agent any such missing
coupon in respect

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of which a deduction shall have been made from the Repayment Price, such Holder
shall be entitled to receive the amount so deducted without interest thereon;
provided, however, that interest represented by coupons shall be payable only at
an office or agency located outside the United States except as otherwise
provided in Section 1002.

     The Company shall execute and the Trustee shall authenticate and deliver
without service charge to the Holder of any Registered Security so surrendered a
new Registered Security or Securities of the same series, of any authorized
denomination specified in the foregoing notice, in an aggregate principal amount
equal to any portion of the principal of the Registered Security so surrendered
which is not to be repaid.

     The Company shall execute and the Trustee shall authenticate and deliver
without service charge to the Holder of any Bearer Security so surrendered a new
Registered Security or Securities or new Bearer Security or Securities (and all
appurtenant unmatured coupons and matured coupons in default) or any combination
thereof of the same series of any authorized denomination or denominations
specified in the foregoing notice, in an aggregate principal amount equal to any
portion of the principal of the Debt Security so surrendered which is not to be
paid; provided, however, that the issuance of a Registered Security therefor
shall be subject to applicable laws and regulations, including provisions of the
United States federal income tax laws and regulations in effect at the time of
the exchange; neither the Company, the Trustee nor the Security Registrar shall
issue Registered Securities for Bearer Securities if it has received an Opinion
of Counsel that as a result of such issuance the Company would suffer adverse
consequences under the United States federal income tax laws then in effect and
the Company has delivered to the Trustee a Company Order directing the Trustee
not to make such issuances thereafter unless and until the Trustee receives a
subsequent Company Order to the contrary. The Company shall deliver copies of
such Company Order to the Security Registrar.

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

     Section 1304. Election of Repayment by Remarketing Entities.

     The Company may elect, with respect to Debt Securities of any series which
are repayable at the option of the Holders thereof before their Stated Maturity,
at any time prior to any Repayment Date to designate one or more Remarketing
Entities to purchase, at a price equal to the Repayment Price, Debt Securities
of such series from the Holders thereof who give notice and surrender their Debt
Securities in accordance with Section 1303.

     Section 1305. Securities Payable on the Repayment Date.

     Notice of exercise of the option of repayment having been given and the
Debt Securities so to be repaid having been surrendered as aforesaid, such Debt
Securities shall, unless purchased in accordance with Section 1304, on the
Repayment Date become due and payable at the price therein specified and from
and after the Repayment Date such Debt Securities shall cease to bear interest
and shall be paid on the Repayment Date, and the coupons for such interest
appertaining to Bearer Securities so to be repaid, except to the extent provided
above, shall be void, unless the Company shall default in the payment of such
price in which case the Company shall continue to be obligated for the principal
amount of such Debt Securities and shall be obligated to pay interest on such
principal amount at the rate borne by such Debt Securities from time to time
until payment in full of such principal amount.

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                                  ARTICLE XIV

 EXCHANGE OF CAPITAL SECURITIES FOR DEBT SECURITIESERROR! BOOKMARK NOT DEFINED.

     Section 1401. Applicability of Article.

     If an Officers' Certificate or supplemental indenture pursuant to Section
301 provides for the exchange of Capital Securities for Debt Securities of any
series at the election of the Company or otherwise, Debt Securities of such
series shall be exchanged for Capital Securities in accordance with their terms
and (except as otherwise specified in such Officers' Certificate or supplemental
indenture) in accordance with this Article.

     Section 1402. Exchange of Capital Securities for Debt Securities at Stated
Maturity.

     At the Stated Maturity of Debt Securities of any series which may be
exchanged, subject to prepayment prior to such Stated Maturity on the Capital
Exchange Date selected by the Company for Debt Securities of such series, as
described below, early exchange pursuant to Section 1403 or payment in cash
pursuant to Section 502, 1416 or 1417, the Company shall exchange Capital
Securities with a Market Value equal to the principal amount of the Outstanding
Debt Securities of such series for the Debt Securities of such series in whole.

     The Company shall give notice in the manner provided in Section 106 to
Holders of the Debt Securities of any series to be exchanged, the Trustee and
the Capital Exchange Agent as to the type of Capital Securities to be exchanged
for the Debt Securities of such series on the Capital Exchange Date for Debt
Securities of such series. Such notice shall include a form of Capital Security
Election Form substantially as set forth in Section 1409, shall make the
statements and contain the information included in Section 1404(a), and shall be
given no less than 90 days prior to the Stated Maturity of such Debt Securities.
Notice of such Capital Exchange Date, together with the amount of Capital
Securities being exchanged for each $1,000 principal amount of Debt Securities
of such series, or the minimum denomination of the Debt Securities of such
series, if larger, shall also be given by the Company in the manner required by
Section 1404(b) not less than three Business Days prior to such Capital Exchange
Date.

     The Capital Exchange Date for any prepayment of Debt Securities of each
series may be selected by the Company to be any date between a date 60 days
prior to the Stated Maturity of such Debt Securities and such Stated Maturity,
inclusive, and to be the date of the closing of the Secondary Offering for Debt
Securities of such series. In the event the Company fails to effect such
Secondary Offering, the Capital Exchange Date will be the Stated Maturity of the
Debt Securities of such series. Notice of each such Capital Exchange Date,
together with the amount of Capital Securities being exchanged for each $1,000
principal amount of Debt Securities of such series, or the minimum denomination
of the Debt Securities of such series, if larger, shall also be given by the
Company in the manner required by Section 1404(b) not less than three Business
Days prior to such Capital Exchange Date.

     The Company will effect each Secondary Offering such that the closing of
the Secondary Offering will occur on the Capital Exchange Date.

     Section 1403. Right of Early Exchange of Capital Securities for Debt
Securities.

     The Debt Securities of any series to be exchanged may be exchanged at the
election of the Company, as a whole or from time to time in part, prior to the

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Stated Maturity thereof for Capital Securities with a Market Value equal to the
principal amount of such Debt Securities on any early Capital Exchange Date,
together with accrued interest to such Capital Exchange Date.

     The Company shall give notice in the manner provided in Section 106 to
Holders of the Debt Securities of any series to be exchanged, the Trustee and
the Capital Exchange Agent not less than 90 days nor more than 120 days prior to
any early Capital Exchange Date for Debt Securities of such series, which notice
shall include a form of Capital Security Election Form substantially as set
forth in Section 1409 and make the statements and contain the information
included in Section 1404(a). Notice of each such early Capital Exchange Date,
together with the amount of Capital Securities being exchanged for each $1,000
principal amount of Debt Securities of such series, or the minimum denomination
of such series, if larger, shall also be given by the Company in the manner
required by Section 1404(b) not less than three Business Days prior to such
early Capital Exchange Date.

     The Company may at its option accelerate any such Capital Exchange Date
within the 60-day period prior to such Capital Exchange Date by giving notice of
such accelerated Capital Exchange Date, together with the amount of Capital
Securities being exchanged for each $1,000 principal amount of Debt Securities
of such series, or the minimum denomination of such series, if larger, in the
manner required by Section 1404(b) not less than three Business Days prior to
such accelerated Capital Exchange Date.

     The Company will effect each Secondary Offering such that the closing of
such Secondary Offering will occur on the Capital Exchange Date.

     Section 1404. Notices of Exchange.

          (a) All notices of exchange subject to this paragraph shall state:

          (1) the type of Capital Securities to be exchanged for the Debt
     Securities of such series on the Capital Exchange Date for Debt Securities
     of such series;

          (2) the proposed Capital Exchange Date;

          (3) that each Holder of Debt Securities of such series being exchanged
     will receive on such Capital Exchange Date accrued and unpaid interest in
     cash and may elect to receive on such Capital Exchange Date Capital
     Securities with a Market Value equal to the principal amount of the Debt
     Securities of such series owned by such Holder and that, in the absence of
     any such election by the Holder, such Holder will be deemed to have
     received on such Capital Exchange Date Capital Securities having such
     Market Value and to have elected to have such Capital Securities sold for
     such Holder by the Company in the related Secondary Offering for cash
     proceeds to such Holder on such Capital Exchange Date equal to the
     aggregate principal amount of all Debt Securities of such series being
     exchanged owned by such Holder;

          (4) that on such Capital Exchange Date the Capital Exchange Price will
     become due and payable upon each such Debt Security to be exchanged and
     that interest thereon will cease to accrue on and after said date;

          (5) if less than all the Outstanding Debt Securities of any series are
     to be exchanged, the identification and principal amount of the particular
     Debt Securities to be exchanged;

          (6) that each Holder for whom Capital Securities are being offered in
     the Secondary Offering shall be deemed to have appointed the Company

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     its attorney-in-fact to execute any and all documents and agreements the
     Company deems necessary or appropriate to effect such Secondary Offering;

          (7) that the Company will assume, unless advised to the contrary in
     writing within 30 days after the date of notice of exchange, that the
     Capital Securities are to be offered for the account of the Holder, that
     such Holder has not held any position, office or other material
     relationship with the Company within three years preceding the Secondary
     Offering, that the Holder owns no other Capital Securities, and that after
     completion of the Secondary Offering the Holder will own less than one
     percent of the class of such Capital Securities, and (B) that if any of
     these assumptions is not correct, the Holder shall promptly so advise the
     Company;

          (8) the Place or Places of Capital Exchange;

          (9) that Bearer Securities may be surrendered for payment or exchange
     only at a Place or Places of Capital Exchange which are outside the United
     States, except as otherwise provided in Section 1002; and

          (10) the CUSIP number, if any.

          (b) Each notice of exchange subject to this paragraph shall be given
     in the manner provided in Section 106 to each Holder of Debt Securities to
     be exchanged, and the Company shall forthwith give such notice by telephone
     to the Trustee and the Capital Exchange Agent, promptly confirmed in
     writing.

          (c) (1) Except as may otherwise be specified pursuant to Section 301
     for Debt Securities of any series, if less than all the Debt Securities of
     any series are to be exchanged, the Company shall at least 135 days prior
     to the related Capital Exchange Date (unless a shorter period shall be
     satisfactory to the Trustee) notify the Trustee of such Capital Exchange
     Date and of the principal amount of Debt Securities of such series to be
     exchanged and the particular Debt Securities to be exchanged shall be
     selected not more than 135 days prior to the related Capital Exchange Date
     by the Trustee, from the Outstanding Debt Securities of such series not
     previously exchanged, by such method as the Trustee shall deem fair and
     appropriate and which may provide for the selection for exchange of
     portions (equal to the minimum authorized denomination for Debt Securities
     of such series or any integral multiple thereof) of the principal amount of
     Registered or Bearer Securities of such series of a denomination larger
     than the minimum authorized denomination for Debt Securities of such
     series.

                    In any case where Debt Securities of such series are
     registered in the same name, the Trustee in its discretion may treat the
     aggregate principal amount so registered as if it were represented by one
     Debt Security of such series.

               (2) The Trustee shall promptly notify the Company in writing of
     the Debt Securities selected for exchange and, in the case of any Debt
     Securities selected for partial exchange, the principal amount thereof to
     be exchanged.

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

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     Section 1405. Rights and Duties of Holders of Debt Securities to be
Exchanged for Capital Securities.

          (a) Subject to Section 503, and without prejudice to the rights
     pursuant to Section 1413 of Holders of Debt Securities of any series to be
     exchanged, no Holder of Debt Securities of such series shall be entitled to
     receive any cash from the Company on any Capital Exchange Date or at the
     Stated Maturity of any Debt Security of such series except from the
     proceeds of the sale of such Holder's Capital Securities in the related
     Secondary Offering and except as provided herein with respect to fractional
     Capital Securities, amounts equal to expenses of the sale in the related
     Secondary Offering of such Capital Securities, accrued and unpaid interest
     and acceleration upon an Event of Default. In the event that the Company
     does not effect such Secondary Offering, such Holder will receive Capital
     Securities with a Market Value equal to the principal amount of Debt
     Securities of such series owned by such Holder which are subject to such
     exchange and not cash other than in lieu of any fractional Capital
     Securities and for accrued and unpaid interest, without prejudice to such
     Holder's rights pursuant to Section 1413.

          (b) Each Holder for whom Capital Securities are being offered in the
     Secondary Offering shall be deemed to have appointed the Company its
     attorney-in-fact to execute any and all documents and agreements the
     Company deems necessary or appropriate to effect such Secondary Offering.

          (c) Unless advised to the contrary in writing within 30 days following
     the date of the notice described in Section 1404(a) by any Holder for whom
     Capital Securities are being offered in the Secondary Offering, the Company
     shall assume for the purposes of any Secondary Offering that the Capital
     Securities are to be offered for the account of such Holder, that such
     Holder has not held any position, office or other material relationship
     with the Company within three years preceding the Secondary Offering, that
     such Holder owns no other Capital Securities, and that after completion of
     the Secondary Offering such Holder will own less than one percent of the
     class of such Capital Securities.

          (d) Each Holder for whom Capital Securities are being offered in the
     Secondary Offering agrees to indemnify and hold harmless the Company, any
     other Holder, and any underwriter, agent or other similar person from and
     against any and all losses, claims, damages and liabilities resulting from
     or based upon any untrue statement or alleged untrue statement of any
     material fact contained in any notice of exchange, any offering memorandum
     or selling document or registration statement relating to the Secondary
     Offering, any preliminary prospectus or prospectus contained therein, or
     any amendment thereof or supplement thereto, or resulting from or based
     upon the omission or alleged omission to state therein a material fact
     required to be stated therein or necessary to make the statements therein
     not misleading, which untrue statement, alleged untrue statement, omission
     or alleged omission is made therein (i) in reliance upon and in conformity
     with any written information furnished to the Company by or on behalf of
     any such Holder specifically for use in connection with the preparation
     thereof or (ii) because of such Holder's failure to advise the Company in
     writing that any of the assumptions described in Section 1404(a)(7)(A) and
     Subsection (c) of this Section is incorrect.

          (e) In order for any Holder who has duly returned a Capital Security
     Election Form to receive Capital Securities on any Capital Exchange Date
     for any Debt Security of any series, (1) the Holder of any Registered
     Security to be exchanged shall surrender such Debt Security (with, if the
     Company or the Trustee so requires, due endorsement by, or a written
     instrument of transfer in form satisfactory to the Company and the

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     Trustee duly executed by, the Holder of any Registered Security or his
     attorney duly authorized in writing) to the Capital Exchange Agent on the
     Capital Exchange Date, and (2) the Holder of any Bearer Security to be
     exchanged shall surrender such Debt Security and all unmatured coupons and
     all matured coupons in default with the Capital Security Election Form at a
     Place of Capital Exchange outside the United States designated pursuant to
     Section 1404(a)(8) except as otherwise provided in Section 1002. If the
     Holder of a Bearer Security is unable to produce any such Debt Security or
     coupons, the surrender of such Debt Security or coupons may be waived by
     the Company and the Trustee, if there be furnished to them such security or
     indemnity as they may require to save each of them and any Capital Exchange
     Agent harmless in respect of such Debt Security or coupons. Except as
     provided in Section 307, no payment or adjustment shall be made upon any
     exchange on account of any interest accrued on any Debt Securities
     surrendered for exchange or on account of any dividends or interest on the
     Capital Securities issued upon exchange.

          (f) Debt Securities of any series to be exchanged shall be deemed to
     have been exchanged on the Capital Exchange Date therefor in accordance
     with the foregoing provisions, and at such time the rights of the Holders
     of such Debt Securities as Holders shall cease (subject to the provisions
     of Section 307 and without prejudice to the rights of Holders of Debt
     Securities of such series pursuant to Section 1413), and the Person or
     Persons entitled to receive the Capital Securities issuable upon such
     exchange shall be treated for all purposes as the record holder or holders
     of such Capital Securities at such time.

     Section 1406. Election to Exchange.

     The election of the Company to exchange Capital Securities for Debt
Securities pursuant to Section 1403 shall be evidenced by a Board Resolution.

     Section 1407. Deposit of Capital Exchange Price.

     On any Capital Exchange Date for Debt Securities of any series which may be
exchanged, the Company shall deposit with the Trustee or with a Capital Exchange
Agent in the Borough of Manhattan, The City of New York (or, if the Company is
acting as Capital Exchange Agent, segregate and hold in trust as provided in
Section 1003) Capital Securities and an amount of money which together are
sufficient to pay the Capital Exchange Price of, and (except if such Capital
Exchange Date shall be an Interest Payment Date) accrued interest on, all the
Debt Securities of such series or portions thereof which are to be exchanged on
that date; provided, however, that deposits with respect to Bearer Securities
shall be made with a Capital Exchange Agent or Capital Exchange Agents located
outside the United States except as otherwise provided in Section 1002, unless
otherwise specified as contemplated by Section 301.

     Section 1408. Debt Securities Due on Capital Exchange Date; Debt Securities
Exchanged in Part.

     Notice of exchange having been given as aforesaid, the Debt Securities of
any series so to be exchanged shall, on the Capital Exchange Date for such Debt
Securities, become due and payable at the Capital Exchange Price therein
specified, and from and after such date (unless the Company shall default in the
payment of the Capital Exchange Price and accrued interest) Debt Securities of
such series to be exchanged shall cease to bear interest and the coupons for
such interest appertaining to any Bearer Securities to be exchanged, except to
the extent provided below, shall be void. Upon surrender of any Debt Security of
such series for exchange in accordance with said notice, such Debt Security
shall be paid by the Company at the Capital Exchange Price, together with
accrued interest to the Capital Exchange Date; provided, however, that if such
Capital Exchange

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Date is an Interest Payment Date, the interest payable on such date shall be
paid to the Holder of Debt Securities of such series according to the terms of
the Debt Securities of such series and the provisions of Section 307; and
provided further, that exchanges of Bearer Securities shall be made only and
installments of interest on Bearer Securities whose Stated Maturity is on or
prior to the Capital Exchange Date shall be payable only at an office or agency
located outside the United States except as otherwise provided in Section 1002
and, unless otherwise specified as contemplated by Section 301, only upon
presentation and surrender of those Bearer Securities and coupons.

     If any Bearer Security surrendered for exchange shall not be accompanied by
all unmatured coupons and all matured coupons in default, such Bearer Security
may be paid after deducting from the Capital Exchange Price an amount equal to
the face amount of all missing coupons, or the surrender of such missing coupons
may be waived by the Company and the Trustee if there be furnished to them such
security or indemnity as they may require to save each of them and any Capital
Exchange Agent harmless. If thereafter the Holder of such Bearer Security shall
surrender to the Trustee or Capital Exchange Agent any such missing coupon in
respect of which a deduction shall have been made from the Capital Exchange
Price, such Holder shall be entitled to receive the amount so deducted without
interest thereon; provided, however, that interest on Bearer Securities shall be
payable only at an office or agency located outside of the United States except
as otherwise provided in Section 1002.

     If any Debt Security of any series called for exchange shall not be so paid
or exchanged upon surrender thereof for exchange, the principal shall, until
paid, bear interest from such Capital Exchange Date at the rate or rates
prescribed therefor in such Debt Security; provided, however, that in the case
of Bearer Securities, any such principal and interest thereon shall be paid at
an office or agency located outside the United States except as otherwise
provided in Section 1002.

     Any Registered Security which is to be exchanged only in part shall be
surrendered as provided herein (with, if the Company or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by, the Holder or his attorney duly
authorized in writing) and the Company shall execute, the Trustee shall
authenticate and there shall be delivered to the Holder of such Debt Security
without service charge a new Registered Security or Securities of the same
series, of any authorized denomination or denominations as requested by such
Holder in aggregate principal amount equal to and in exchange for the
unexchanged portion of principal of the Debt Security so surrendered.

     Any Bearer Security which is to be exchanged only in part shall be
surrendered as provided herein and the Company shall execute, the Trustee shall
authenticate and there shall be delivered to the Holder of such Debt Security
without service charge a new Registered Security or Securities or new Bearer
Security or Securities (and all appurtenant unmatured coupons and coupons in
default) or any combination thereof of the same series, of any surrendered
denomination or denominations as requested by such Holder in aggregate principal
amount equal to and in exchange for the unexchanged portion of principal of the
Debt Security so surrendered; provided, however, the issuance of a Registered
Security therefor shall be subject to applicable laws and regulations, including
provisions of the United States federal income tax laws and regulations in
effect at the time of the exchange; neither the Company, the Trustee nor the
Security Registrar shall issue Registered Securities in exchange for Bearer
Securities if it has received an Opinion of Counsel that as a result of such
exchanges the Company would suffer adverse consequences under the United States
federal income tax laws then in effect and the Company has delivered to the
Trustee a Company Order directing the Trustee not to make such exchanges
thereafter unless and until the Company delivers to the Trustee a subsequent
Company Order to the

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contrary. The Company shall deliver copies of such Company Orders to the
Security Registrar.

     Section 1409. Form of Capital Security Election Form.

     The form of Capital Security Election Form shall be substantially as
follows with such additions, deletions or changes thereto as may be approved by
the Company:

                         CAPITAL SECURITY ELECTION FORM

To:  [Insert Names and Addresses
     of Capital Exchange Agents]

     The undersigned Holder of [insert title of Debt Security] ("Debt
Securities") of Santander BanCorp hereby elects to receive on the Capital
Exchange Date determined pursuant to the Indenture dated as of February 28,
2006, ("Indenture"), between Santander BanCorp and Banco Popular de Puerto Rico,
as Trustee, and referred to in the notice of exchange published or delivered to
the undersigned with this Capital Security Election Form, Capital Securities of
Santander BanCorp with a Market Value equal to the principal amount of the Debt
Securities being exchanged owned by the undersigned Holder and, in the case of
Bearer Securities, delivered herewith together with all coupons appertaining
thereto. Unless this Capital Security Election Form together with, in the case
of Bearer Securities, such Bearer Securities and coupons, is received by any
Capital Exchange Agent named above at an address shown above on or prior to
______________________________, the Holder will be deemed to have elected to
participate in the sale of the Holder's Capital Securities in the Secondary
Offering and will receive cash on the Capital Exchange Date in an amount equal
to the principal amount of all Debt Securities being exchanged owned by the
Holder. All terms used herein and not otherwise defined herein shall have the
meanings specified in the Indenture.

Dated
      -------------------------

                                        ----------------------------------------
                                        Name of Holder

     Section 1410. Fractional Capital Securities.

     No fractional Capital Securities shall be issued upon exchange for any Debt
Securities. If more than one Debt Security of any series shall be surrendered
for exchange at one time by the same Holder, the amount of all Capital
Securities which shall be issuable upon exchange thereof shall be computed on
the basis of the aggregate principal amount of Debt Securities of such series so
surrendered. In lieu of issuing any fractional Capital Security, the Company
shall pay a cash adjustment in respect of such fraction in an amount equal to
the same fraction of the Market Value of the Capital Security.

     Section 1411. Company to Obtain Governmental and Regulatory Approvals.

     The Company covenants that if any Capital Securities required to be
exchanged for Debt Securities hereunder require registration with or approval of
any governmental authority under any United States federal, state or
Commonwealth of Puerto Rico law, or any national securities exchange, before
such Capital Securities may be issued, the Company will in good faith and as
expeditiously as possible endeavor to cause such Capital Securities to be duly
registered or approved, as the case may be; provided, however, that nothing in
this Section shall be deemed to affect in any way the obligation of the Company
to exchange Capital Securities for Debt Securities as provided in this Article.

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     Section 1412. Taxes on Exchange.

     The Company will pay any and all transfer, stamp or similar taxes that may
be payable in respect of the issue or delivery of Capital Securities in exchange
for Debt Securities pursuant hereto.

     Section 1413. Covenants as to Capital Securities and Secondary Offering.

          (a) The Company covenants that it will issue, or cause to be issued,
     Capital Securities of the type, in the amounts and at the times required by
     this Indenture.

          (b) The Company covenants that all Capital Securities which may be
     issued in exchange for Debt Securities will upon issuance be duly and
     validly issued and, if applicable, fully paid and nonassessable.

          (c) The Company unconditionally undertakes to sell Capital Securities
     in each Secondary Offering (and to bear all expenses of each Secondary
     Offering, including underwriting discounts and commissions) at the times
     and in the manner required by this Indenture unless all Holders have duly
     elected to receive Capital Securities on the related Capital Exchange Date.

          (d) The Company agrees to indemnify and hold harmless in connection
     with any Secondary Offering any Holder for the account of whom Capital
     Securities are being offered and sold from and against any and all losses,
     claims, damages and liabilities resulting from or based upon any untrue
     statement or alleged untrue statement of any material fact contained in any
     notice of exchange, any offering memorandum or selling document or
     registration statement relating to the Secondary Offering, any preliminary
     prospectus or prospectus contained therein, or any amendment thereof or
     supplement thereto, or resulting from or based upon the omission or alleged
     omission to state therein a material fact required to be stated therein or
     necessary to make the statements therein not misleading, or resulting from
     the Company's failure to comply with Section 1411; provided, however, the
     Company will not be liable in any such case to the extent that any such
     loss, claim, damage or liability arises out of or is based upon any such
     untrue statement, alleged untrue statement, omission or alleged omission
     made therein (i) in reliance upon and in conformity with written
     information furnished to the Company by or on behalf of any such Holder
     specifically for use in connection with the preparation thereof or (ii)
     because of such Holder's failure to advise the Company in writing that any
     of the assumptions described in Section 1404(a)(7)(A) is incorrect. In
     connection with any Secondary Offering, the Company agrees to obtain
     appropriate indemnification of any Holder for the account of whom Capital
     Securities are being offered and sold in any Secondary Offering from any
     underwriter, agent or other similar person.

     Section 1414. Provision in Case of Consolidation, Merger or Transfer of
Assets.

     In case of any consolidation of the Company with, or merger of the Company
into, any other corporation (other than a consolidation or merger in which the
Company is the continuing corporation), or in case of any conveyance or transfer
of the properties and assets of the Company substantially as an entirety, the
corporation formed by such consideration or the corporation into which the
Company shall have been merged or the corporation which shall have acquired such
assets of the Company, as the case may be, shall execute and deliver to the

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Trustee a supplemental indenture providing that the Holder of each Debt Security
then Outstanding shall have the right thereafter to receive securities of such
successor on the Capital Exchange Date for such Debt Security with a Market
Value equal to the principal amount of such Debt Security. The above provisions
of this Section shall similarly apply to successive consolidations, mergers,
conveyances or transfers.

     Section 1415. Trustee Not Responsible.

     The Trustee shall not at any time be under any duty or responsibility to
any Holder of Debt Securities of any series to be exchanged to determine the
Market Value of any Capital Securities delivered in exchange for Debt Securities
of such series and may rely on and shall be entitled to receive prior to any
Capital Exchange Date for Debt Securities of such series an Officers'
Certificate of the Company as to the Market Value of the Capital Securities
being exchanged for the Debt Securities of such series and the amount of Capital
Securities being exchanged for each $1,000 principal amount of Debt Securities
of such series or the minimum denomination of such series, if larger, and that
such Capital Securities qualify as Capital Securities under the definition
thereof contained herein. The Trustee shall not be accountable with respect to
the validity or value (or the kind or amount) of any Capital Securities which
may at any time be issued or delivered in exchange for any Debt Security; and
the Trustee does not make any representation with respect thereto. The Trustee
shall not be responsible for any failure of the Company to issue, transfer or
deliver any Capital Securities or Capital Security certificates or other
securities or property upon the surrender of any Debt Security for the purpose
of exchange or to comply with any of the covenants of the Company contained in
this Article.

     Section 1416. Revocation of Obligation to Exchange Capital Securities for
Debt Securities.

     The Company's obligations to exchange Capital Securities for Debt
Securities of any series as provided in Section 1402 is absolute and
unconditional; provided, however, that such obligation may be revoked at the
option of the Company at any time on not less than 60 days' prior notice given
in the manner provided in Section 106 to the Holders of Debt Securities of such
series, the Trustee and the Capital Exchange Agent, if the Company shall
determine that under regulations then in effect of the Company's Primary Federal
Regulator either the Debt Securities are no longer includable as capital or it
is no longer necessary for the Company to be obligated to exchange Capital
Securities for Debt Securities in order for the Debt Securities to maintain the
same capital treatment as they are then receiving under the regulations or if
approval of the Primary Federal Regulator is obtained for such revocation.

     In the event such obligation is revoked

          (a) the Company will pay the Debt Securities of such series in cash at
     100% of the principal amount thereof on the Stated Maturity thereof, and

          (b) the Company may, at any time on or after a date selected by the
     Company, on not less than 60 days' prior notice given in the manner
     provided in Section 106 to the Holders of Debt Securities of such series
     and the Trustee, redeem the Debt Securities of such series, in whole or in
     part, for cash at 100% of the principal amount thereof, plus accrued
     interest to the Redemption Date.

     Section 1417. Optional Securities Funds.

          (a) (1) With respect to Debt Securities of any series for which an
     Officers' Certificate or supplemental indenture pursuant to Section 301

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     provides that the Debt Securities of such series are exchangeable for
     Capital Securities, the Company may elect to establish a fund (referred to
     herein as the "Optional Securities Funds") to which funds may at any time
     be designated by the Company as provided in Section 1502 as if such
     Optional Securities Funds were Securities Funds (as defined in Article XV)
     to be used to pay the principal of the Debt Securities of such series.

               (2) Notwithstanding any provisions to the contrary contained in
     this Indenture or in the Debt Securities of any series, neither funds
     designated as Optional Securities Funds nor any other property from time to
     time held as Optional Securities Funds shall be deemed to be for any
     purpose property of the Holders or trust funds for the benefit of the
     Holders, and the Optional Securities Funds shall not constitute security
     for the payment of the Debt Securities.

          (b) In lieu of, or in addition to, any exchange of Capital Securities
     for Debt Securities of any series which may be made in accordance with the
     provisions of Sections 1402 and 1403, the Company may elect to redeem the
     Debt Securities of such series in accordance with the provisions of Section
     1106 and the terms of the Debt Securities of each series, in whole or in
     part, by paying the principal of such Debt Securities with funds designated
     as Optional Securities Funds at a price equal to the percentage of the
     principal amount established in the terms of the Debt Securities of such
     series on the Redemption Date of the Debt Securities to be so redeemed, and
     (except if such Redemption Date shall be an Interest Payment Date) by
     paying accrued interest on such Debt Securities. If such Redemption Date is
     an Interest Payment Date, the interest payable on such date shall be paid
     to the Holder of Debt Securities of such series according to the terms of
     the Debt Securities of such series and the provisions of Section 307.

          (c) The Company shall give notice of such proposed redemption in the
     manner provided in Section 106 to the Holders of the Debt Securities of
     such series within the time prescribed for the giving of the initial notice
     in Section 1402 or 1403, depending upon the Redemption Date selected by the
     Company. Such notice shall state the Redemption Date and the place or
     places where the Debt Securities of the series to be paid are to be
     surrendered for payment; provided, however, if such redemption is of less
     than all of the Debt Securities of such series and is to be made on a
     Capital Exchange Date specified in accordance with Section 1402 or 1403,
     then such notice may be incorporated into any initial notice of such
     Capital Exchange Date and provided that no notice of any redemption may be
     given unless there are sufficient Optional Securities Funds to pay the
     principal amount of the Debt Securities to be redeemed.

          (d) If less than all the Debt Securities of any series are to be so
     redeemed, then Sections 1404(c) and 1408 shall apply to the redemption in
     the same manner as if such Debt Securities were to be exchanged for Capital
     Securities.

          (e) Funds designated as Optional Securities Funds shall be released
     from such designation under the circumstances described in Section 1503.

                                   ARTICLE XV

                                SECURITIES FUNDS

     Section 1501. Creation of Securities Funds.

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     A fund (the "Securities Funds") will be established when specified in an
Officers' Certificate or supplemental indenture pursuant to Section 301 for the
Debt Securities of any series pursuant to which funds may be designated by the
Company as provided in Section 1502, to be used to pay the principal of the Debt
Securities of that series.

     Notwithstanding any provision to the contrary contained in this Indenture
or in the Debt Securities of any series, neither funds designated as Securities
Funds nor any other property from time to time held as Securities Funds shall be
deemed to be for any purpose property of the Holders or trust funds for the
benefit of the Holders, and the Securities Funds shall not constitute security
for the payment of the Debt Securities.

     Section 1502. Designations of Securities Funds.

     The Securities Funds will consist of amounts equal to (i) the net proceeds
of the sale of Capital Securities for cash from time to time after the date of
initial issuance of the Debt Securities of any series for which funds may be
designated by the Company as provided in this Section, and (ii) the market
value, as determined by the Company, of Capital Securities sold from time to
time after the date of initial issuance of the Debt Securities of such series in
exchange for other property, less the expenses to effect any such exchanges, and
(iii) other funds which the regulations of the Primary Federal Regulator then
permit for the payment of principal of "mandatory convertible securities (equity
commitment notes)" as defined in such regulations; provided that (x) the Company
has designated such amounts as Securities Funds on its books and records in the
manner required by the Primary Federal Regulator, and (y) there shall be
deducted from the Securities Funds an amount equal to the amount of any funds
used to redeem or repay the Debt Securities of such series for which Securities
Funds are required to be designated or any similar securities.

     Section 1503. Covenant of the Company to Obtain Securities Funds.

     Notwithstanding anything else contained herein, the Company hereby
covenants and agrees that with regard to the Debt Securities of any series which
by its terms requires the designation of Securities Funds (i) by the Interest
Payment Date which occurs on or next preceding the date when one-third of the
period from the date of issuance of the Debt Securities of such series to their
Stated Maturity has elapsed, it will have obtained Securities Funds in an amount
that will equal at least one-third of the original aggregate principal amount of
the Debt Securities of such series (or such lesser amount as the Primary Federal
Regulator may permit from time to time) and will have prepared and delivered to
the Trustee an Officers' Certificate to the foregoing effect, (ii) by the
Interest Payment Date which occurs on or next preceding the date when two-thirds
of the period from the date of issuance of the Debt Securities of such series to
their Stated Maturity has elapsed, it will have obtained Securities Funds in an
amount that will equal at least two-thirds of the original aggregate principal
amount of the Debt Securities of such series (or such lesser amount as the
Primary Federal Regulator may permit from time to time) and will have prepared
and delivered to the Trustee an Officers' Certificate to the foregoing effect,
and (iii) by 60 days prior to the Stated Maturity of the Debt Securities of such
series, it will have obtained Securities Funds in an amount that will equal not
less than the original aggregate principal amount of the Debt Securities of such
series (or such lesser amount as the Primary Federal Regulator may permit from
time to time) and will have prepared and delivered to the Trustee an Officers'
Certificate to the foregoing effect; provided, however, that such covenant and
agreement of the Company shall be cancelled and amounts theretofore designated
as Securities Funds will be released from such designation in the event and to
the extent that the Company shall determine that under the regulations of the
Company's Primary Federal Regulator either the Debt Securities are no longer
includable as capital or it is no longer necessary for the Company to be

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obligated to pay the principal of the Debt Securities out of Securities Funds in
order for the Debt Securities to maintain the same capital treatment as they are
then receiving under such regulations, in the event and to the extent that
approval of the Primary Federal Regulator is obtained for such cancellation and
release or in the event and to the extent that the Company shall have exchanged
or redeemed such Debt Securities pursuant to the terms of such Debt Securities
of such series from a source other than amounts designated as Securities Funds.

                                   ARTICLE XVI

                     MEETINGS OF HOLDERS OF DEBT SECURITIES

     Section 1601. Purposes for Which Meetings May Be Called.

     If Debt Securities of a series are issuable in whole or in part as Bearer
Securities, a meeting of Holders of Debt Securities of such series may be called
at any time and from time to time pursuant to this Article to make, give or take
any request, demand, authorization, direction, notice, consent, waiver or other
Act provided by this Indenture to be made, given or taken by Holders of Debt
Securities of such series.

     Section 1602. Call, Notice and Place of Meetings.

          (a) The Trustee may at any time call a meeting of Holders of Debt
     Securities of any series issuable as Bearer Securities for any purpose
     specified in Section 1601, to be held at such time and at such place in the
     Borough of Manhattan, The City of New York, or in San Juan, Puerto Rico, as
     the Trustee shall determine. Notice of every meeting of Holders of Debt
     Securities of any series, setting forth the time and the place of such
     meeting and in general terms the action proposed to be taken at such
     meeting, shall be given, in the manner provided in Section 106, not less
     than 21 nor more than 180 days prior to the date fixed for the meeting.

          (b) In case at any time the Company, pursuant to a Board Resolution,
     or the Holders of at least 10% in principal amount of the Outstanding Debt
     Securities of any series shall have requested the Trustee to call a meeting
     of the Holders of Debt Securities of such series for any purpose specified
     in Section 1601, by written request setting forth in reasonable detail the
     action proposed to be taken at the meeting, and the Trustee shall not have
     made the first publication of the notice of such meeting within 21 days
     after receipt of such request or shall not thereafter proceed to cause the
     meeting to be held as provided herein, then the Company or the Holders of
     Debt Securities of such series in the amount above specified, as the case
     may be, may determine the time and the place in the Borough of Manhattan,
     The City of New York, or in San Juan, Puerto Rico, for such meeting and may
     call such meeting for such purposes by giving notice thereof as provided in
     subsection (a) of this Section.

     Section 1603. Persons Entitled to Vote at Meetings.

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

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     Section 1604. Quorum; Action.

     The Persons entitled to vote a majority in principal amount of the
Outstanding Debt Securities of a series shall constitute a quorum for a meeting
of Holders of Debt Securities of such series. In the absence of a quorum within
30 minutes of the time appointed for any such meeting, the meeting shall, if
convened at the request of Holders of Debt Securities of such series, be
dissolved. In the absence of a quorum in any other case the meeting may be
adjourned for a period of not less than 10 days as determined by the chairperson
of the meeting prior to the adjournment of such meeting. In the absence of a
quorum at any such adjourned meeting, such adjourned meeting may be further
adjourned for a period of not less than 10 days as determined by the chairperson
of the meeting prior to the adjournment of such adjourned meeting. Notice of
this reconvening of any adjourned meeting shall be given as provided in Section
1602(a), except that such notice need be given only once not less than five days
prior to the date on which the meeting is scheduled to be reconvened. Notice of
the reconvening of an adjourned meeting shall state expressly the percentage, as
provided above, of the principal amount of the Outstanding Debt Securities of
such series which shall constitute a quorum.

     Except as limited by the proviso to Section 902, any resolution presented
to a meeting or adjourned meeting duly reconvened at which a quorum is present
as aforesaid may be adopted only by the affirmative vote of the Holders of
majority in principal amount of the Outstanding Debt Securities of that series,
provided however, that, except as limited by the proviso to Section 902, any
resolution with respect to any request, demand, authorization, direction,
notice, consent, waiver or other Act which this Indenture expressly provides may
be made, given or taken by the Holders of a specified percentage, which is less
than a majority, in principal amount of the Outstanding Debt Securities of a
series may be adopted at a meeting or an adjourned meeting duly reconvened and
at which a quorum is present as aforesaid by the affirmative vote of the Holders
of such specified percentage in principal amount of the Outstanding Debt
Securities of that series.

     Any resolution passed or decision taken at any meeting of Holders of Debt
Securities of any series duly held in accordance with this Section shall be
binding on all the Holders of Debt Securities of such series and the related
coupons, whether or not present or represented at the meeting.

     Section 1605. Determination of Voting Rights; Conduct and Adjournment of
Meetings.

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

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          (b) The Trustee shall, by an instrument in writing, appoint a
     temporary chairperson of the meeting, unless the meeting shall have been
     called by the Company or by Holders of Debt Securities as provided in
     Section 1602(b), in which case the Company or the Holders of Debt
     Securities of the series calling the meeting, as the case may be, shall in
     like manner appoint a temporary chairperson. A permanent chairperson and a
     permanent secretary of the meeting shall be elected by vote of the Persons
     entitled to vote a majority in principal amount of the Outstanding Debt
     Securities of such series represented at the meeting.

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

          (d) Any meeting of Holders of Debt Securities of any series duly
     called pursuant to Section 1602 at which a quorum is present may be
     adjourned from time to time by Persons entitled to vote a majority in
     principal amount of the Outstanding Debt Securities of such series
     represented at the meeting; and the meeting may be held as so adjourned
     without further notice.

     Section 1606. Counting Votes and Recording Action of Meetings.

     The vote upon any resolution submitted to any meeting of Holders of Debt
Securities of any series shall be by written ballots on which shall be
subscribed the signatures of the Holders of Debt Securities of such series or of
their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Debt Securities of such series held or represented by them. The
permanent chairperson of the meeting shall appoint two inspectors of votes who
shall count all votes cast at the meeting for or against any resolution and who
shall make and file with the secretary of the meeting their verified written
reports in triplicate of all votes cast at the meeting. A record, at least in
triplicate, of the proceedings of each meeting of Holders of Debt Securities of
any series shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the inspectors of votes on any
vote by ballot taken thereat and affidavits by one or more persons having
knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 1602 and, if
applicable, Section 1601. Each copy shall be signed and verified by the
affidavits of the permanent chairperson and secretary of the meeting and one
such copy shall be delivered to the Company, and another to the Trustee to be
preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                                  ARTICLE XVII

                                   Defeasance

     Section 1701. Termination of Company's Obligations.

     If this Section 1701 is specified, as contemplated by Section 301, to be
applicable to any series of Debt Securities and if the Company deposits
irrevocably in trust with the Trustee money and/or, to the extent such Debt

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Securities are denominated and payable in Dollars only, Eligible Instruments the
payments of principal and interest on which when due (and without reinvestment
and providing no tax liability will be imposed upon the Trustee or the Holders
of such Debt Securities) will provide money in such amounts as will (together
with any money irrevocably deposited in trust with the Trustee, without
investment) be sufficient to pay the principal of (and premium, if any) and any
installment of principal of (and premium, if any) or interest (including any
Additional Interest) when due on the Debt Securities of such series and any
coupons appertaining thereto and any mandatory sinking fund, repayment or
analogous payments thereon on the scheduled due dates therefor at the Stated
Maturity thereof, the Company's obligations under any covenant determined
pursuant to Section 301 to be subject to this Section shall terminate with
respect to the Debt Securities of the series for which such deposit was made;
provided, however, that (i) no Event of Default with respect to the Debt
Securities of such series under Section 501(6) or Section 501(7) or event that
with notice or lapse of time or both would constitute such an Event of Default
shall have occurred and be continuing on such date, (ii) such deposit will not
result in a breach of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Company is a party or by which it is
bound, and (iii) such termination shall not relieve the Company of its
obligations under the Debt Securities of such series and this Indenture to pay
when due the principal of (and premium, if any) and interest (including any
Additional Interest) and additional amounts on such Debt Securities and any
coupons appertaining thereto if such Debt Securities or coupons are not paid (or
payment is not provided for) when due from the money and Eligible Instruments
(and the proceeds thereof) so deposited.

     It shall be a condition to the deposit of cash and/or Eligible Instruments
and the termination of the Company's obligations pursuant to the provisions of
this Section with respect to the Debt Securities of any series under any
covenant determined pursuant to Section 301 to be subject to this Section that
the Company deliver to the Trustee (i) an Opinion of Counsel to the effect that:
(a) Holders of Debt Securities of such series and any coupons appertaining
thereto will not recognize income, gain or loss for United States federal income
tax purposes as a result of such deposit and termination and (b) such Holders
(and future Holders) will be subject to tax in the same amount, manner and
timing as if such deposit and termination had not occurred, (ii) an Officers'
Certificate to the effect that under the laws in effect on the date such money
and/or Eligible Instruments are deposited with the Trustee, the amount thereof
will be sufficient, after payment of all United States federal, state,
Commonwealth of Puerto Rico and local taxes in respect thereof payable by the
Trustee, to pay principal (and premium, if any) and interest (including any
Additional Interest) when due on the Debt Securities of such series and any
coupons appertaining thereto; and (iii) an Officers' Certificate and an Opinion
of Counsel, each stating that all conditions precedent herein provided for
relating to the defeasance contemplated in this Section have been complied with.

     It shall be an additional condition to the deposit of cash and/or Eligible
Instruments and the termination of the Company's obligations pursuant to the
provisions of this Section under any covenant determined pursuant to Section 301
to be subject to this Section, with respect to the Debt Securities of any series
then listed on the New York Stock Exchange, that the Company deliver an Opinion
of Counsel that the Debt Securities of such series will not be delisted from the
New York Stock Exchange as a result of such deposit and termination.

     After a deposit as provided herein, the Trustee shall, upon Company
Request, acknowledge in writing the discharge of the Company's obligations
pursuant to the provisions of this Section with respect to the Debt Securities
of such series under any covenant determined pursuant to Section 301 to be
subject to this Section.

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     Section 1702. Repayment to Company.

     The Trustee and any Paying Agent shall promptly pay to the Company upon
Company Request any money or Eligible Instruments not required for the payment
of the principal of (and premium, if any) and interest (including any Additional
Interest) on the Debt Securities of any series and any related coupons for which
money or Eligible Instruments have been deposited pursuant to Section 1701 held
by them at any time.

     The Trustee and any Paying Agent shall promptly pay to the Company upon
Company Request any money held by them for the payment of principal (and
premium, if any) and interest (including any Additional Interest) that remains
unclaimed for two years after the Maturity of the Debt Securities for which a
deposit has been made pursuant to Section 1701. After such payment to the
Company, the Holders of the Debt Securities of such series and any related
coupons shall thereafter, as unsecured general creditors, look only to the
Company for the payment thereof.

     Section 1703. Indemnity for Eligible Instruments.

     The Company shall pay and shall indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the deposited Eligible
Instruments or the principal or interest received on such Eligible Instruments.

                                  ARTICLE XVIII

                        SUBORDINATION OF DEBT SECURITIES

     Section 1801. Debt Securities Subordinate to Senior Debt.

     The Company covenants and agrees that anything in this Indenture or the
Debt Securities of any series to the contrary notwithstanding, the indebtedness
evidenced by the Debt Securities of each series and any coupons appurtenant
thereto is subordinate and junior in right of payment to all Senior Debt to the
extent provided herein and shall be pari passu with all Trust Related
Securities, and each Holder of Debt Securities of each series and coupons
appurtenant thereto, by such Holder's acceptance thereof, likewise covenants and
agrees to the subordination herein provided and shall be bound by the provisions
hereof. Senior Debt shall continue to be Senior Debt and entitled to the
benefits of these subordination provisions irrespective of any amendment,
modification or waiver of any term of the Senior Debt or extension or renewal of
the Senior Debt.

     In the event of

          (a) any insolvency, bankruptcy, receivership, liquidation,
     reorganization, readjustment, composition or other similar proceeding
     relating to the Company, its creditors or its property,

          (b) any proceeding for the liquidation, dissolution or other winding
     up of the Company, voluntary or involuntary, whether or not involving
     insolvency or bankruptcy proceedings,

          (c) any assignment by the Company for the benefit of creditors, or

          (d) any other marshalling of the assets of the Company,

all Senior Debt (including any interest thereon accruing after the commencement
of any such proceedings) shall first be paid in full before any payment or
distribution, whether in cash, securities or other property, shall be made to
any Holder of any of the Debt Securities or coupons appurtenant thereto on
account

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thereof. Any payment or distribution, whether in cash, securities or other
property (other than securities of the Company or any other corporation provided
for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in these subordination provisions
with respect to the indebtedness evidenced by the Debt Securities, to the
payment of all Senior Debt at the time outstanding and to any securities issued
in respect thereof under any such plan of reorganization or readjustment), which
would otherwise (but for these subordination provisions) be payable or
deliverable in respect of the Debt Securities of any series or coupons
appurtenant thereto shall be paid or delivered directly to the holders of Senior
Debt in accordance with the priorities then existing among such holders until
all Senior Debt (including any interest thereon accruing after the commencement
of any such proceedings) shall have been paid in full. In the event of any such
proceeding, after payment in full of all sums owing with respect to Senior Debt,
the Holders of the Debt Securities and coupons appurtenant thereto, together
with the holders of any obligations of the Company ranking on a parity with the
Debt Securities, shall be entitled to be paid from the remaining assets of the
Company the amounts at the time due and owing on account of unpaid principal of
(and premium, if any) and interest on the Debt Securities and such other
obligations before any payment or other distribution, whether in cash, property
or otherwise, shall be made on account of any capital stock or any obligations
of the Company ranking junior to the Debt Securities and such other obligations.

     In the event that, notwithstanding the foregoing, any payment or
distribution of any character or any security, whether in cash, securities or
other property (other than securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment the payment of which is
subordinate, at least to the extent provided in these subordination provisions
with respect to the indebtedness evidenced by the Debt Securities, to the
payment of all Senior Debt at the time outstanding and to any securities issued
in respect thereof under any such plan or reorganization or readjustment), shall
be received by the Trustee or any Holder in contravention of any of the terms
hereof such payment or distribution or security shall be received in trust for
the benefit of, and shall be paid over or delivered and transferred to, the
holders of the Senior Debt at the time outstanding in accordance with the
priorities then existing among such holders for application to the payment of
all Senior Debt remaining unpaid, to the extent necessary to pay all such Senior
Debt in full. In the event of the failure of the Trustee or any Holder to
endorse or assign any such payment, distribution or security, each holder of
Senior Debt is hereby irrevocably authorized to endorse or assign the same.

     No present or future holder of any Senior Debt shall be prejudiced in the
right to enforce subordination of the indebtedness evidenced by the Debt
Securities by any act or failure to act on the part of the Company. Nothing
contained herein shall impair, as between the Company and the Holders of Debt
Securities of each series, the obligation of the Company to pay to such Holders
the principal of (and premium, if any) and interest (including any Additional
Interest) on such Debt Securities and coupons appurtenant thereto or prevent the
Trustee or the Holder (or to the extent expressly provided herein, the holder of
any Capital Trust Securities) from exercising all rights, powers and remedies
otherwise permitted by applicable law or hereunder upon a default or Event of
Default hereunder, all subject to the rights of the holders of the Senior Debt
to receive cash, securities or other property otherwise payable or deliverable
to the Holders.

     Senior Debt shall not be deemed to have been paid in full unless the
holders thereof shall have received cash, securities or other property equal to
the amount of such Senior Debt then outstanding. Upon the payment in full of all
Senior Debt, the Holders of Debt Securities of each series and coupons
appurtenant thereto, if any, shall be subrogated to all rights of any holders of
Senior Debt to receive any further payments or distributions applicable to the

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Senior Debt until the indebtedness evidenced by the Debt Securities of such
series and coupons appertaining thereto, if any, shall have been paid in full,
and such payments or distributions received by such Holders, by reason of such
subrogation, of cash, securities or other property which otherwise would be paid
or distributed to the holders of Senior Debt shall, as between the Company and
its creditors other than the holders of Senior Debt, on the one hand, and such
Holders, on the other hand, be deemed to be a payment by the Company on account
of Senior Debt, and not on account of the Debt Securities of such series.

     The Trustee and Holders will take such action (including, without
limitation, the delivery of this Indenture to an agent for the holders of Senior
Debt or consent to the filing of a financing statement with respect hereto) as
may, in the opinion of counsel designated by the holders of a majority in
principal amount of the Senior Debt at the time outstanding, be necessary or
appropriate to assure the effectiveness of the subordination effected by these
provisions.

     The provisions of this Section 1801 shall not impair any rights, interests,
remedies or powers of any secured creditor of the Company in respect of any
security interest the creation of which is not prohibited by the provisions of
this Indenture.

     Section 1802. Trustee and Holders of Debt Securities May Rely on
Certificate of Liquidating Agent; Trustee May Require Further Evidence as to
Ownership of Senior Debt; Trustee Not Fiduciary to Holders of Senior Debt.

     Upon any payment or distribution of assets of the Company referred to in
this Article XVIII, the Trustee and the Holders shall be entitled to rely upon
an order or decree made by any court of competent jurisdiction in which such
dissolution or winding up or liquidation or reorganization or arrangement
proceedings are pending or upon a certificate of the trustee in bankruptcy,
receiver, assignee for the benefit of creditors or other Person making such
payment or distribution, delivered to the Trustee or to the Holders, for the
purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Debt and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article
XVIII. In the absence of any such bankruptcy trustee, receiver, assignee or
other Person, the Trustee shall be entitled to rely upon a written notice by a
Person representing himself or herself to be a holder of Senior Debt (or a
trustee or representative on behalf of such holder) as evidence that such Person
is a holder of such Senior Debt (or is such a trustee or representative). In the
event that the Trustee determines, in good faith, that further evidence is
required with respect to the right of any Person as a holder of Senior Debt to
participate in any payments or distributions pursuant to this Article XVIII, the
Trustee may request such person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of Senior Debt held by such Person,
as to the extent to which such Person is entitled to participate in such payment
or distribution, and as to other facts pertinent to the rights of such Person
under this Article XVIII, and if such evidence is not furnished, the Trustee may
offer any payment to such Person pending judicial determination as to the right
of such Person to receive payment. The Trustee, however, shall not be deemed to
owe any fiduciary duty to the holders of Senior Debt.

     Section 1803. Payment Permitted If No Default.

     Nothing contained in this Article XVIII or elsewhere in this Indenture, or
in any of the Debt Securities, shall prevent (a) the Company at any time, except
during the pendency of any dissolution, winding up, liquidation or
reorganization proceedings referred to in Section 1801, from making payments of
the principal of (or premium, if any) or interest (including any Additional
Interest) on the Debt

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Securities or (b) the application by the Trustee or any Paying Agent of any
moneys deposited with it hereunder to payments of the principal of or interest
(including any Additional Interest) on the Debt Securities, if, at the time of
such deposit, the Trustee or such Paying Agent, as the case may be, did not have
the written notice provided for in Section 1804 of any event prohibiting the
making of such deposit, or if, at the time of such deposit (whether or not in
trust) by the Company with the Trustee or any Paying Agent (other than the
Company) such payment would not have been prohibited by the provisions of this
Article, and the Trustee or any Paying Agent shall not be affected by any notice
to the contrary received by it on or after such date.

     Section 1804. Trustee Not Charged with Knowledge of Prohibition.

     Anything in this Article XVIII or elsewhere in this Indenture contained to
the contrary notwithstanding, the Trustee shall not at any time be charged with
knowledge of the existence of any facts which would prohibit the making of any
payment of money to or by the Trustee and shall be entitled conclusively to
assume that no such facts exist and that no event specified in Section 1801 has
happened, until the Trustee shall have received an Officers' Certificate to that
effect or notice in writing to that effect signed by or on behalf of the holder
or holders, or their representatives, of Senior Debt who shall have been
certified by the Company or otherwise established to the reasonable satisfaction
of the Trustee to be such holder or holders or representatives or from any
trustee under any indenture pursuant to which such Senior Debt shall be
outstanding. The Company shall give prompt written notice to the Trustee and to
the Paying Agent of any facts which would prohibit the payment of money to or by
the Trustee or any Paying Agent.

     Section 1805. Trustee to Effectuate Subordination.

     Each Holder of Debt Securities or coupons by such Holder's acceptance
thereof authorizes and directs the Trustee in such Holder's behalf to take such
action as may be necessary or appropriate to effectuate the subordination as
between such Holder and holders of Senior Debt as provided in this Article and
appoints the Trustee its attorney-in-fact for any and all such purposes.

     Section 1806. Rights of Trustee as Holder of Senior Debt.

     The Trustee shall be entitled to all the rights set forth in this Article
with respect to any Senior Debt which may at the time be held by it, to the same
extent as any other holder of Senior Debt; provided that nothing in this Article
shall deprive the Trustee of any rights as such holder and provided further that
nothing in this Article shall apply to claims of, or payments to, the Trustee
under or pursuant to Section 607.

     Section 1807. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term "Trustee" as
used in this Article shall in such case (unless the context shall otherwise
require) be construed as extending to and including such Paying Agent within its
meaning as fully for all intents and purposes as if the Paying Agent were named
in this Article in addition to or in place of the Trustee, provided, however,
that Sections 1804 and 1806 shall not apply to the Company or any Affiliate of
the Company if the Company or such Affiliate acts as Paying Agent.

     Section 1808. Subordination Rights Not Impaired by Acts or Omissions of the
Company or Holders of Senior Debt.

     No right of any present or future holders of any Senior Debt to enforce
subordination as herein provided shall at any time in any way be prejudiced or

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impaired by any act or failure to act on the part of the Company or by any act
or failure to act, in good faith, by any such holder, or by any noncompliance by
the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof which any such holder may have or be
otherwise charged with. The holders of Senior Debt may, at any time or from time
to time and in their absolute discretion, change the manner, place or terms of
payment, change or extend the time of payment of, or renew or alter, any such
Senior Debt, or amend or supplement any instrument pursuant to which any such
Senior Debt is issued or by which it may be secured, or release any security
therefor, or exercise or refrain from exercising any other of their rights under
the Senior Debt including, without limitation, the waiver of default thereunder,
all without notice to or assent from the Holders of the Debt Securities or the
Trustee and without affecting the obligations of the Company, the Trustee or the
Holders of the Debt Securities under this Article.

                                  ARTICLE XIX

                      CONVERSION OF CONVERTIBLE SECURITIES

     Section 1901. Applicability of Article.

     If an Officers' Certificate or supplemental indenture pursuant to Section
301 provides that the Debt Securities of a series shall be Convertible
Securities, Debt Securities of such series shall be convertible in accordance
with their terms and (except as otherwise specified in such Officers'
Certificate or supplemental indenture) in accordance with this Article.

     Section 1902. Right to Convert.

     Subject to and upon compliance with the provisions of this Article, the
Holder of any Convertible Security shall have the right, at such Holder's
option, at any time prior to the close of business on the date set forth in the
Officers' Certificate delivered pursuant to Section 301 hereof (or if such
Convertible Security is called for redemption or submitted for repayment, then
in respect of such Convertible Security to and including but not after the close
of business on the Redemption or Repayment Date, as the case may be, unless the
Company shall default in the payment due) to convert the principal amount of any
such Convertible Security, or, in the case of any Convertible Security of a
denomination greater than $1,000, any portion of such principal which is $1,000
or an integral multiple thereof, into that number of fully paid and
nonassessable shares of Common Stock (as such shares shall then be constituted)
obtained by dividing the principal amount of the Convertible Security or portion
thereof surrendered for conversion by the Conversion Price, by surrender of the
Convertible Security so to be converted in whole or in part in the manner
provided in Section 1903. Such conversion shall be effected by the Company.

     Section 1903. Exercise of Conversion Privilege; Delivery of Common Stock on
Conversion; No Adjustment for Interest or Dividends.

     In order to exercise the conversion privilege, the Holder of any
Convertible Security to be converted in whole or in part shall surrender such
Convertible Security at an office or agency maintained by the Company pursuant
to Section 1002, accompanied by the funds, if any, required by the last
paragraph of this Section, together with written notice of conversion, in the
form provided on the Convertible Securities, that the Holder elects to convert
such Convertible Security or the portion thereof specified in said notice. Such
notice shall also state the name or names (with address) in which the
certificate or certificates for shares of Common Stock which shall be
deliverable on such conversion shall be registered, and shall be accompanied by
transfer taxes, if required pursuant to Section 1908. Each Convertible Security
surrendered for conversion shall, unless

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the shares deliverable on conversion are to be registered in the same name as
the registration of such Convertible Security, be duly endorsed by, or
accompanied by instruments of transfer in form satisfactory to the Company duly
executed by, the Holder or such Holder's duly authorized attorney.

     As promptly as practicable after the surrender of such Convertible Security
and the receipt of such notice and funds, if any, as aforesaid, the Company
shall deliver at such office or agency to such Holder, or on such Holder's
written order, a certificate or certificates for the number of full shares
deliverable upon the conversion of such Convertible Security or portion thereof
in accordance with the provisions of this Article and a check or cash in respect
of any fractional interest in respect of a share of Common Stock arising upon
such conversion as provided in Section 1904. In case any Convertible Security of
a denomination greater than $1,000 shall be surrendered for partial conversion
and subject to Section 302, the Company shall execute and the Trustee shall
authenticate and deliver to or upon the written order of the Holder of the
Convertible Security so surrendered, without charge to such Holder, a new
Convertible Security or Convertible Securities in authorized denominations in an
aggregate principal amount equal to the unconverted portion of the surrendered
Convertible Security.

     Each conversion shall be deemed to have been effected on the date on which
such Convertible Security shall have been surrendered (accompanied by the funds,
if any, required by the last paragraph of this Section) and such notice shall
have been received by the Company, as aforesaid, and the person in whose name
any certificate or certificates for shares of Common Stock shall be registrable
upon such conversion shall be deemed to have become on said date the holder of
record of the shares represented thereby; provided however, that any such
surrender on any date when the stock transfer books of the Company shall be
closed shall constitute the person in whose name the certificates are to be
registered as the record holder thereof for all purposes on the next succeeding
day on which stock transfer books are open, but such conversion shall be at the
Conversion Price in effect on the date upon which such Convertible Security
shall have been surrendered.

     Any Convertible Security or portion thereof surrendered for conversion
during the period from the close of business on the Regular Record Date for any
Interest Payment Date to the opening of business on such Interest Payment Date
shall (unless such Convertible Security or portion thereof being converted shall
have been called for redemption or submitted for repayment on a date in such
period) be accompanied by payment, in legal tender or other funds acceptable to
the Company, of an amount equal to the interest otherwise payable on such
Interest Payment Date on the principal amount being converted; provided,
however, that no such payment need be made if there shall exist at the time of
conversion a default in the payment of interest on the Convertible Securities.
An amount equal to such payment shall be paid by the Company on such Interest
Payment Date to the Holder of such Convertible Security on such Regular Record
Date, provided, however, that if the Company shall default in the payment of
interest on such Interest Payment Date, such amount shall be paid to the person
who made such required payment. Except as provided above in this Section, no
adjustment shall be made for interest accrued on any Convertible Security
converted or for dividends on any shares issued upon the conversion of such
Convertible Security as provided in this Article.

     Section 1904. Cash Payments in Lieu of Fractional Shares.

     No fractional shares of Common Stock or scrip representing fractional
shares shall be delivered upon conversion of Convertible Securities. If more
than one Convertible Security shall be surrendered for conversion at one time by
the same Holder, the number of full shares which shall be deliverable upon
conversion shall be computed on the basis of the aggregate principal amount of
the

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Convertible Securities (or specified portions thereof to the extent permitted
hereby) so surrendered. If any fractional share of stock would be deliverable
upon the conversion of any Convertible Security or Convertible Securities, the
Company shall make an adjustment therefor in cash at the current market value of
such fractional share of stock. The market value of a share of Common Stock
shall be the Closing Price on the Business Day immediately preceding the day on
which the Convertible Securities (or specified portions thereof) are deemed to
have been converted.

     Section 1905. Conversion Price.

     The Conversion Price shall be as specified in the form of Convertible
Security hereinabove set forth, subject to adjustment as provided in this
Article.

     Section 1906. Adjustment to Conversion Price.

     The Conversion Price shall be adjusted from time to time as follows:

          (a) In case the Company shall (i) pay a dividend or make a
     distribution on the Common Stock in shares of its capital stock (whether
     shares of Common Stock or of capital stock of any other class), (ii)
     subdivide or reclassify its outstanding Common Stock into a greater number
     of securities (including Common Stock), or (iii) combine or reclassify its
     outstanding Common Stock into a smaller number of securities (including
     Common Stock), the Conversion Price in effect immediately prior thereto
     shall be adjusted so that the Holder of any Convertible Security thereafter
     surrendered for conversion shall be entitled to receive the number of
     shares of capital stock of the Company which such Holder would have owned
     or have been entitled to receive after the happening of any of the events
     described above had such Convertible Security been converted immediately
     prior to the happening of such event. An adjustment made pursuant to this
     subsection (a) shall become effective immediately after the record date in
     the case of a dividend and shall become effective immediately after the
     effective date in the case of a subdivision or combination. If, as a result
     of an adjustment made pursuant to this subsection (a), the Holder of any
     Convertible Security thereafter surrendered for conversion shall become
     entitled to receive shares of two or more classes of capital stock of the
     Company, the Board of Directors of the Company (whose determination shall
     be conclusive and shall be described in a written statement filed with the
     Trustee and any conversion agent) shall determine the allocation of the
     adjusted Conversion Price between or among shares of such classes of
     capital stock.

               In the event that at any time, as a result of an adjustment made
     pursuant to this subsection (a) of this Section 1906, the Holder of any
     Convertible Security thereafter converted shall become entitled to receive
     any shares or other securities of the Company other than shares of Common
     Stock, thereafter the number of such other shares so received upon
     conversion of any Convertible Security shall be subject to adjustment from
     time to time in a manner and on terms as nearly equivalent as practicable
     to the provisions with respect to the shares of Common Stock contained in
     this Section 1906, and other provisions of this Article XIX with respect to
     the shares of Common Stock shall apply on like terms to any such other
     shares or other securities.

          (b) In case the Company shall fix a record date for the issuance of
     rights or warrants to all holders of its Common Stock (or securities
     convertible into Common Stock) entitling them (for a period expiring within
     45 days after such record date) to subscribe for or purchase Common Stock
     at a price per share (or a conversion price per share) less than the

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<PAGE>

     current market price per share of Common Stock (as defined in subsection
     (d) below) at such record date, the Conversion Price in effect immediately
     prior thereto shall be adjusted so that the same shall equal the price
     determined by multiplying the Conversion Price in effect immediately prior
     to such record date by a fraction of which the numerator shall be the
     number of shares of Common Stock outstanding on such record date plus the
     number of shares which the aggregate offering price of the total number of
     shares so offered (or the aggregate initial conversion price of the
     convertible securities so offered) would purchase at such current market
     price, and of which the denominator shall be the number of shares of Common
     Stock outstanding on such record date plus the number of additional shares
     of Common Stock offered for subscription or purchase (or into which the
     convertible securities so offered are initially convertible). Such
     adjustment shall be made successively whenever such a record date is fixed,
     and shall become effective immediately after such record date. In
     determining whether any rights or warrants entitle the holders to subscribe
     for or purchase shares of Common Stock at less than such current market
     price, and in determining the aggregate offering price of such shares,
     there shall be taken into account any consideration received by the Company
     for such rights or warrants, the value of such consideration, if other than
     cash, to be determined by the Board of Directors of the Company. Common
     Stock owned by or held for the account of the Company or any majority owned
     subsidiary shall not be deemed outstanding for the purpose of any
     adjustment required under this subsection (b).

          (c) In case the Company shall fix a record date for making a
     distribution to all holders of its Common Stock evidences of its
     indebtedness or assets (excluding regular quarterly or other periodic or
     recurring cash dividends or distributions and cash dividends or
     distributions paid from retained earnings of the Company or dividends or
     distributions referred to in subsection (a) above) or rights or warrants to
     subscribe or purchase (excluding those referred to in subsection (b)
     above), then in each such case the Conversion Price shall be adjusted so
     that the same shall equal the price determined by multiplying the
     Conversion Price in effect immediately prior to such record date by a
     fraction of which the numerator shall be the current market price per share
     (as defined in subsection (d) below) of the Common Stock on such record
     date less the then fair market value (as determined by the Board of
     Directors of the Company whose determination shall be conclusive, and
     described in a certificate filed with the Trustee) of the portion of the
     assets or evidences of indebtedness so distributed or of such rights or
     warrants applicable to one share of Common Stock, and the denominator shall
     be the current market price per share (as defined in subsection (d) below)
     of the Common Stock. Such adjustment shall be made successively whenever
     such a record date is fixed and shall become effective immediately after
     such record date. Notwithstanding the foregoing, in the event that the
     Company shall distribute any rights or warrants to acquire capital stock
     ("Rights") pursuant to this subsection (c), the distribution of separate
     certificates representing such Rights subsequent to their initial
     distribution (whether or not such distribution shall have occurred prior to
     the date of the issuance of such Convertible Securities) shall be deemed to
     be the distribution of such Rights for purposes of this subsection (c);
     provided that the Company may, in lieu of making any adjustment pursuant to
     this subsection (c) upon a distribution of separate certificates
     representing such Rights, make proper provision so that each Holder of such
     Convertible Security who converts such Convertible Security (or any portion
     thereof) (i) before the record date for such distribution of separate
     certificates shall be entitled to receive upon such conversion shares of
     Common Stock issued with Rights and (ii) after such record date and prior
     to the expiration, redemption or termination of such Rights

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     shall be entitled to receive upon such conversion, in addition to the
     shares of Common Stock issuable upon such conversion, the same number of
     such Rights as would a holder of the number of shares of Common Stock that
     such Convertible Security so converted would have entitled the holder
     thereof to purchase in accordance with the terms and provisions of and
     applicable to the Rights if such Convertible Security were converted
     immediately prior to the record date for such distribution. Common Stock
     owned by or held for the account of the Company or any majority owned
     subsidiary shall not be deemed outstanding for the purpose of any
     adjustment required under this subsection (c).

          (d) For the purpose of any computation under subsection (b) and (c)
     above, the current market price per share of Common Stock at any date shall
     be deemed to be the average of the daily Closing Prices for the thirty
     consecutive days (which are not legal holidays as defined in Section 113)
     commencing forty-five days (which are not legal holidays as defined in
     Section 113) before the day in question. The Closing Price for any day
     shall be (i) if the Common Stock is listed or admitted for trading on any
     national securities exchange, the last sale price (regular way), or the
     average of the closing bid and ask prices if no sale occurred, of Common
     Stock on the principal securities exchange on which the Common Stock is
     listed, or, if not listed or admitted to trading on any national securities
     exchange, on the National Market System of the National Association of
     Securities Dealers, Inc. Automated Quotations System ("NASDAQ"), (ii) if
     not listed or quoted as described in (i), the mean between the closing high
     bid and low asked quotations of Common Stock reported by NASDAQ, or any
     similar system or automated dissemination of quotations of securities
     prices then in common use, if so quoted, or (iii) if not quoted as
     described in clause (ii), the mean between the high bid and low asked
     quotations for Common Stock as reported by the National Quotation Bureau
     Incorporated if at least two securities dealers have inserted both bid and
     asked quotations for Common Stock on at least 5 of the 10 preceding days.
     If none of the conditions set forth above is met, the Closing Price of
     Common Stock on any day or the average of such Closing Prices for any
     period shall be the fair market value of Common Stock as determined by a
     member firm of the New York Stock Exchange, Inc. selected by the Company.

          (e) (i) Nothing contained herein shall be construed to require an
     adjustment in the Conversion Price as a result of the issuance of Common
     Stock pursuant to, or the granting or exercise of any rights under, the
     Santander BanCorp 2005 Employee Stock Option Plan.

               (ii) In addition, no adjustment in the Conversion Price shall be
     required unless such adjustment would require an increase or decrease of at
     least 1% in such price; provided, however, that any adjustments which by
     reason of this subsection (e)(ii) are not required to be made shall be
     carried forward and taken into account in any subsequent adjustment,
     further provided, however, that any adjustments which by reason of this
     subsection (e)(ii) are not otherwise required to be made shall be made no
     later than 3 years after the date on which occurs an event that requires an
     adjustment to be made or carried forward.

               (iii) All calculations under this Article XIX shall be made to
     the nearest cent or to the nearest one-hundredth of a share, as the case
     may be. Anything in this Section 1906 to the contrary notwithstanding, the
     Company shall be entitled to make such reductions in the Conversion Price,
     in addition to those required by this Section 1906, as it in its discretion
     shall determine to be advisable in order that any stock dividends,
     subdivision of shares, distribution of rights to purchase stock or
     securities, or distribution of securities convertible into or

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     exchangeable for stock hereafter made by the Company to its shareholders
     shall not be taxable.

          (f) Whenever the Conversion Price is adjusted, as herein provided, the
     Company shall promptly file with the Trustee and any conversion agent other
     than the Trustee an Officers' Certificate setting forth the Conversion
     Price after such adjustment and setting forth a brief statement of the
     facts requiring such adjustment. Promptly after delivery of such
     certificate, the Company shall prepare a notice of such adjustment of the
     Conversion Price setting forth the adjusted Conversion Price and the date
     on which such adjustment becomes effective and shall mail such notice of
     such adjustment of the Conversion Price to the Holder of each Convertible
     Security at such Holder's last address appearing on the Security Register
     provided for in Section 305 of this Indenture.

          (g) In any case in which this Section 1906 provides that an adjustment
     shall become effective immediately after a record date for an event, the
     Company may defer until the occurrence of such event (i) delivering to the
     Holder of any Convertible Security converted after such record date and
     before the occurrence of such event the additional shares of Common Stock
     deliverable upon such conversion by reason of the adjustment required by
     such event over and above the Common Stock deliverable upon such conversion
     before giving effect to such adjustment and (ii) paying to such Holder any
     amount in cash in lieu of any fraction pursuant to Section 1904, provided,
     however, that the Company shall deliver to such Holder a due bill or other
     appropriate instrument evidencing such Holder's rights to receive such
     additional shares, and such cash, upon the occurrence of the event
     requiring such adjustment. If such event does not occur, no adjustments
     shall be made pursuant to this Section 1906.

     Section 1907. Effect of Reclassification, Consolidation, Merger or Sale.

     If any of the following events occur, namely (i) any reclassification or
change of outstanding shares of Common Stock deliverable upon conversion of the
Convertible Securities (other than a change in par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision
or combination, but including any change in the shares of Common Stock into two
or more classes or series of securities), (ii) any consolidation or merger to
which the Company is a party (other than a consolidation or merger in which the
Company is the continuing corporation and which does not result in any
reclassification of, or change (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a
subdivision or combination) in, outstanding shares of its Common Stock) or (iii)
any sale or conveyance of the properties and assets of the Company as, or
substantially as, an entirety to any other corporation; then the Company, or
such successor or purchasing corporation, as the case may be, shall execute with
the Trustee a supplemental indenture (which shall conform to the Trust Indenture
Act as in force at the date of execution of such supplemental indenture and
comply with the provisions of Article IX) providing that each Convertible
Security shall be convertible into the kind and amount of shares of stock and
other securities or property, including cash, receivable upon such
reclassification, change, consolidation, merger, sale or conveyance by a holder
of a number of shares of Common Stock deliverable upon conversion of such
Convertible Securities immediately prior to such reclassification, change,
consolidation, merger, sale or conveyance. Such supplemental indenture shall
provide for adjustments which shall be as nearly equivalent as may be
practicable to the adjustments provided for in this Article. The Company shall
cause notice of the execution of such supplemental indenture to be mailed to
each holder of Convertible Securities, at

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his address appearing on the Security Register provided for in Section 305 of
this Indenture.

     The above provisions of this Section shall similarly apply to successive
reclassifications, consolidations, mergers and sales.

     Section 1908. Taxes on Shares Issued.

     The delivery of stock certificates on conversions of Convertible Securities
shall be made without charge to the Holder converting a Convertible Security for
any tax in respect of the issue thereof. The Company shall not, however, be
required to pay any tax which may be payable in respect of any transfer involved
in the delivery of stock registered in any name other than of the Holder of any
Convertible Security converted, and the Company shall not be required to deliver
any such stock certificate unless and until the person or persons requesting the
delivery thereof shall have paid to the Company the amount of such tax or shall
have established to the satisfaction of the Company that such tax has been paid.

     Section 1909. Shares to be Fully Paid; Compliance with Governmental
Requirements; Listing of Common Stock.

     The Company covenants that all shares of Common Stock which may be
delivered upon conversion of Convertible Securities will upon delivery be fully
paid and nonassessable by the Company and free from all taxes, liens and charges
with respect to the issue thereof.

     The Company covenants that if any shares of Common Stock to be provided for
the purpose of conversion of Convertible Securities hereunder require
registration with or approval of any governmental authority under any United
States federal, state or Commonwealth of Puerto Rico law before such shares may
be validly delivered upon conversion, the Company will in good faith and as
expeditiously as possible endeavor to secure such registration or approval, as
the case may be.

     The Company further covenants that it will, if permitted by the rules of
the New York Stock Exchange, list and keep listed for so long as the Common
Stock shall be so listed on such exchange, upon official notice of issuance, all
Common Stock deliverable upon conversion of the Convertible Securities.

     Section 1910. Trustee Not Responsible.

     Neither the Trustee nor any authenticating agent nor any conversion agent
shall at any time be under any duty or responsibility to any Holder of
Convertible Securities to determine whether any facts exist which may require
any adjustment of the Conversion Price, or with respect to the nature or extent
of any such adjustment when made, or with respect to the method employed, or
herein or in any supplemental indenture provided to be employed, in making the
same. Neither the Trustee nor any authenticating agent nor any conversion agent
shall be accountable with respect to the validity or value (or the kind or
amount) of any shares of Common Stock, or of any securities or property, which
may at any time be delivered upon the conversion of any Convertible Security,
and neither the Trustee nor any authenticating agent nor any conversion agent
makes any representation with respect thereto. Subject to the provisions of
Section 601, neither the Trustee nor any authenticating agent nor any conversion
agent shall be responsible for any failure of the Company to deliver any shares
of Common Stock or stock certificates or other securities or property or cash
upon the surrender of any Convertible Security for the purpose of conversion or
for any failure of the Company to comply with any of the covenants of the
Company contained in this Article.

     Section 1911. Notice to Holders Prior to Certain Actions.

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     In case:

          (a)  the Company shall declare a dividend (or any other distribution)
               on the Common Stock (other than in cash out of its current or
               retained earnings); or

          (b)  the Company shall authorize the granting to the holders of the
               Common Stock of rights or warrants to subscribe for or purchase
               any share of any class or any other rights or warrants; or

          (c)  of any reclassification or change of the Common Stock (other than
               a subdivision or combination of its outstanding Common Stock, or
               a change in par value, or from par value to no par value, or from
               no par value to par value) or of any consolidation or merger to
               which the Company is a party and for which approval of any
               stockholders of the Company is required or of the sale or
               transfer of all or substantially all of the assets of the
               Company; or

          (d)  of the voluntary or involuntary dissolution, liquidation or
               winding up of the Company;

the Company shall cause to be filed with the Trustee and the Company shall cause
to be mailed to each holder of Convertible Securities at his address appearing
on the Security Register, provided for in Section 305 of this Indenture, as
promptly as possible but in any event no less than fifteen days prior to the
applicable date hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution, rights or
warrants, or, if a record is not to be taken, the date as of which the holders
of Common Stock of record to be entitled to such dividend, distribution, rights
or warrants are to be determined, or (y) the date on which such
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up is expected to become effective, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to
exchange their Common Stock for securities or other property deliverable upon
such reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of such dividend, distribution,
reclassification, consolidation, merger, sale, transfer, dissolution,
liquidation or winding up or any adjustment in the Conversion Price required by
this Article XIX.

     Section 1912. Covenant to Reserve Shares.

     The Company covenants that it will at all times reserve and keep available,
free from pre-emptive rights, out of its authorized but unissued Common Stock,
such number of shares of Common Stock as shall then be deliverable upon the
conversion of all outstanding Convertible Securities.

                                       98

<PAGE>

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

                                        SANTANDER BANCORP

                                        By:
                                            ------------------------------------
                                        Name: Carlos M. Garcia
                                        Title: Senior Executive Vice President
                                               and Chief Operating Officer

                                        By:
                                            ------------------------------------
                                        Name: Juan P. Perez Hanley
                                        Title: Senior Vice President and
                                               Treasurer

                                        BANCO POPULAR DE PUERTO RICO,
                                        as Property Trustee

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

                                       99

<PAGE>

                                                                     EXHIBIT A-1

                [FORM OF CERTIFICATE OF BENEFICIAL OWNERSHIP BY A
              NON-UNITED STATES PERSON OR BY CERTAIN OTHER PERSONS]

                                   CERTIFICATE

                                SANTANDER BANCORP

                     [INSERT TITLE OR SUFFICIENT DESCRIPTION
                       OF DEBT SECURITIES TO BE DELIVERED]

     Reference is hereby made to the Indenture dated as of February 28, 2006
(the "Indenture") between Santander BanCorp and Banco Popular de Puerto Rico, as
trustee (the "Trustee"), covering the above-captioned Debt Securities. This is
to certify that as of the date hereof, __________ principal amount of Debt
Securities credited to you for our account (i) is owned by persons that are not
United States Persons, as defined below; (ii) is owned by United States Persons
that are (a) foreign branches of United States financial institutions (as
defined in U.S. Treasury Regulations Section 1.165-12(c)(1)(v)) ("financial
institutions") purchasing for their own account or for resale, or (b) United
States Persons who acquired the Debt Securities through foreign branches of
United States financial institutions and who hold the Debt Securities through
such United States financial institutions on the date hereof (and in either case
(a) or (b), each such United States financial institution encloses herewith a
certificate in the form of Exhibit A-2 to the Indenture); or (iii) is owned by
United States or foreign financial institutions for purposes of resale during
the restricted period (as defined in U.S. Treasury Regulations Section
1.163-5(c)(2)(i)(D)(7)), which United States or foreign financial institutions
described in clause (iii) above (whether or not also described in clause (i) or
(ii)) certify that they have not acquired the Debt Securities for purposes of
resale directly or indirectly to a United States Person or to a person within
the United States or its possessions.

     [Insert if certificate does not relate to an interest payment--We undertake
to advise you by tested telex followed by written confirmation if the above
statement as to beneficial ownership is not correct on the date of delivery of
the above-captioned Debt Securities in bearer form as to all of such Debt
Securities with respect to such of said Debt Securities as then appear in your
books as being held for our account.] We understand that this certificate is
required in connection with United States tax laws. We irrevocably authorize you
to produce this certificate or a copy hereof to any interested party in any
administrative or legal proceedings with respect to the matters covered by this
certificate. "United States Person" shall mean a citizen or resident of the
United States of America (including the District of Columbia), a corporation,
partnership or other entity created or organized in or under the laws of the
United States or any political subdivision thereof or an estate or trust that is
subject to United States federal income taxation regardless of the source of its
income.
<PAGE>

     [This certificate excepts and does not relate to principal amount of Debt
Securities credited to you for our account and to which we are not now able to
make the certification set forth above. We understand that definitive Debt
Securities cannot be delivered and interest cannot be paid until we are able to
so certify with respect to such principal amount of Debt Securities.]*

Dated:
       ----------------------------

[To be dated on or after

-----------------------------------
(the date determined as
provided in the Indenture)]

                                        [Name of Person Entitled to Receive
                                        Bearer Security]

                                        ----------------------------------------
                                        (Authorized Signatory)
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       2

<PAGE>

                                                                     EXHIBIT A-2

                       [FORM OF CERTIFICATE OF STATUS AS A
            FOREIGN BRANCH OF A UNITED STATES FINANCIAL INSTITUTION]

                                   CERTIFICATE

                                SANTANDER BANCORP

                     [INSERT TITLE OR SUFFICIENT DESCRIPTION
                       OF DEBT SECURITIES TO BE DELIVERED]

     Reference is hereby made to the Indenture dated as of February 28, 2006
(the "Indenture"), between Santander BanCorp and Banco Popular de Puerto Rico,
as trustee, relating to the offering of the above-captioned Debt Securities (the
"Debt Securities"). Unless herein defined, terms used herein have the same
meaning as given to them in the Indenture.

     The undersigned represents that it is a branch located outside the United
States of a United States securities clearing organization, bank or other
financial institution (as defined in U.S. Treasury Regulation Section
1.165-12(c)(1)(v)) that holds customers' securities in the ordinary course of
its trade or business and agrees, and authorizes you to advise the issuer or the
issuer's agent, that it will comply with the requirements of Section
165(j)(3)(A), (B) or (C) of the Internal Revenue Code of 1986 and the
regulations thereunder and is not purchasing for resale directly or indirectly
to a United States Person or to a person within the United States or its
possessions. We undertake to advise you by tested telex followed by written
confirmation if the statement in the immediately preceding sentence is not
correct on the date of delivery of the above-captioned Debt Securities in bearer
form.

     We understand that this certificate is required in connection with the
United States tax laws. We irrevocably authorize you to produce this certificate
or a copy hereof to any interested party in any administrative or legal
proceedings with respect to the matters covered by this certificate.

Dated:
       ---------------------------

[To be dated on or after

---------------------------------
(the date determined as
provided in the Indenture)]

                                        [Name of Person Entitled to Receive
                                        Security]

                                        ----------------------------------------
                                        (Authorized Signatory)
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

<PAGE>

                                                                       EXHIBIT B

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

                                   CERTIFICATE

                                SANTANDER BANCORP

                     [INSERT TITLE OR SUFFICIENT DESCRIPTION
                       OF DEBT SECURITIES TO BE DELIVERED]

     We refer to that portion, _______________________________, of the Global
Security representing the above-captioned issue [which is herewith submitted to
be exchanged for definitive Debt Securities]* [for which we are seeking to
obtain payment of interest]* (the "Submitted Portion"). This is to certify,
pursuant to the Indenture dated as of February 28, 2006 (the "Indenture")
between Santander BanCorp and Banco Popular de Puerto Rico, as trustee (the
"Trustee"), that we have received in writing, by tested telex or by electronic
transmission from member organizations with respect to each of the persons
appearing in our records as being entitled to a beneficial interest in the
Submitted Portion a Certificate of Beneficial Ownership by a Non-United States
Person or by Certain Other Persons [and, in some cases, a Certificate of Status
as a Foreign Branch of a United States Financial Institution, authorizing us to
inform the issuer or the issuer's agent that it will comply with the
requirements of Section 165(j)(3)(A), (B) or (C) of the Internal Revenue Code of
1986 and the regulations thereunder]* substantially in the form of Exhibit A-1
[and A-2]* to the Indenture.

     We hereby request that you deliver to the office of _____________________
________________________ in _________________ definitive Bearer Securities in
the denominations on the attached Schedule A.

     We further certify that as of the date hereof we have not received any
notification from any of the persons giving such certificates to the effect that
the statements made by them with respect to any part of the Submitted Portion
are no longer true and cannot be relied on as of the date hereof.

Dated:
       ----------------------------

                                        [MORGAN GUARANTY TRUST COMPANY OF NEW
                                        YORK, BRUSSELS OFFICE, as Operator of
                                        the Euroclear System]
                                        [CEDEL S.A.]

                                        By
                                           -------------------------------------

----------
*    DELETE IF INAPPROPRIATE.

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