Document:

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                                                                     Exhibit 4.7

                                    INDENTURE

                                     BETWEEN

               STARWOOD HOTELS & RESORTS WORLDWIDE, INC., ISSUER,

                     [THE GUARANTORS PARTY HERETO FROM TIME

                              TO TIME, GUARANTORS,]

                                       AND

                    ________________________________, TRUSTEE

                        DATED AS OF _______________, 20__

                                 DEBT SECURITIES
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                                                           ARTICLE I.

                                                          DEFINITIONS

SECTION 1.1.  CERTAIN TERMS DEFINED..............................................................................            1
SECTION 1.2.  OTHER DEFINED TERMS................................................................................           10

                                                          ARTICLE II.

                                                         SECURITY FORMS

SECTION 2.1.  FORMS GENERALLY....................................................................................           10
SECTION 2.2.  FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION....................................................           11
SECTION 2.3.  FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION BY AN AUTHENTICATING AGENT.........................           11
SECTION 2.4.  SECURITIES ISSUABLE IN THE FORM OF A GLOBAL SECURITY...............................................           11

                                                          ARTICLE III.

                                                         THE SECURITIES

SECTION 3.1.  AMOUNT UNLIMITED; ISSUABLE IN SERIES...............................................................           12
SECTION 3.2.  FORM AND DENOMINATIONS.............................................................................           14
SECTION 3.3.  AUTHENTICATION, DATING AND DELIVERY OF SECURITIES..................................................           15
SECTION 3.4.  EXECUTION OF SECURITIES AND COUPONS................................................................           16
SECTION 3.5.  CERTIFICATE OF AUTHENTICATION......................................................................           17
SECTION 3.6.  REGISTRATION; REGISTRATION OF TRANSFER AND EXCHANGE................................................           17
SECTION 3.7.  MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN SECURITIES OR COUPONS...............................           19
SECTION 3.8.  PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.....................................................           20
SECTION 3.9.  CANCELLATION OF SECURITIES; DESTRUCTION THEREOF....................................................           21
SECTION 3.10.  TEMPORARY SECURITIES..............................................................................           21
SECTION 3.11.  COMPUTATION OF INTEREST...........................................................................           22
SECTION 3.12.  CURRENCY AND MANNER OF PAYMENTS IN RESPECT OF SECURITIES..........................................           22
SECTION 3.13.  COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS......................................................           26
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                                                          ARTICLE IV.

                                                    COVENANTS OF THE ISSUER

SECTION 4.1.  PAYMENT OF SECURITIES..............................................................................           26
SECTION 4.2.  OFFICES OR AGENCY..................................................................................           26
SECTION 4.3.  APPOINTMENT TO FILL A VACANCY IN OFFICE OF TRUSTEE.................................................           27
SECTION 4.4.  PAYING AGENTS......................................................................................           27
SECTION 4.5.  CORPORATE EXISTENCE................................................................................           28
SECTION 4.6.  RESTRICTIONS ON LIENS..............................................................................           28
SECTION 4.7.  SALE AND LEASEBACK TRANSACTIONS....................................................................           30
SECTION 4.8.  COMPLIANCE CERTIFICATE.............................................................................           30
SECTION 4.9.  FURTHER INSTRUMENTS AND ACTS.......................................................................           31
SECTION 4.10.  [SECURITIES TO BE EQUALLY AND RATABLY SECURED UNDER PLEDGE AGREEMENT..............................           31
SECTION 4.11.  DESIGNATION OF SUBSIDIARIES.......................................................................           31

                                                           ARTICLE V.

                                SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

SECTION 5.1.  ISSUER TO FURNISH TRUSTEE INFORMATION AS TO NAMES AND ADDRESSES OF
              SECURITYHOLDERS....................................................................................           32
SECTION 5.2.  PRESERVATION AND DISCLOSURE OF SECURITYHOLDERS LISTS...............................................           32
SECTION 5.3.  REPORTS BY THE ISSUER..............................................................................           34
SECTION 5.4.  REPORTS BY THE TRUSTEE.............................................................................           34

                                                          ARTICLE VI.

                                                     DEFAULTS AND REMEDIES

SECTION 6.1.  EVENT OF DEFAULT DEFINED; ACCELERATION OF MATURITY; WAIVER OF DEFAULT..............................           36
SECTION 6.2.  COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE MAY PROVE DEBT......................................           40
SECTION 6.3.  APPLICATION OF PROCEEDS............................................................................           41
SECTION 6.4.  SUITS FOR ENFORCEMENT..............................................................................           42
SECTION 6.5.  RESTORATION OF RIGHTS ON ABANDONMENT OF PROCEEDINGS................................................           42
SECTION 6.6.  LIMITATIONS ON SUITS BY SECURITYHOLDERS............................................................           43
SECTION 6.7.  UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO INSTITUTE CERTAIN SUITS..................................           43
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SECTION 6.8.  POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION NOT WAIVER OF DEFAULT............................           44
SECTION 6.9.  CONTROL BY THE HOLDERS OF SECURITIES...............................................................           44
SECTION 6.10.  WAIVER OF PAST DEFAULTS...........................................................................           45
SECTION 6.11.  TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT MAY WITHHOLD IN CERTAIN CIRCUMSTANCES......................           45
SECTION 6.12.  RIGHT OF COURT TO REQUIRE FILING OF UNDERTAKING TO PAY COSTS......................................           45
SECTION 6.13.  JUDGMENT CURRENCY.................................................................................           46

                                                          ARTICLE VII.

                                                     CONCERNING THE TRUSTEE

SECTION 7.1.  DUTIES AND RESPONSIBILITIES OF THE TRUSTEE; DURING DEFAULT; PRIOR TO DEFAULT.......................           46
SECTION 7.2.  CERTAIN RIGHTS OF THE TRUSTEE......................................................................           48
SECTION 7.3.  TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION OF SECURITIES OR APPLICATION OF
              PROCEEDS THEREOF...................................................................................           49
SECTION 7.4.  TRUSTEE AND AGENTS MAY HOLD SECURITIES; COLLECTIONS, ETC...........................................           49
SECTION 7.5.  MONEYS HELD BY TRUSTEE.............................................................................           49
SECTION 7.6.  COMPENSATION AND INDEMNIFICATION OF TRUSTEE AND ITS PRIOR CLAIM....................................           49
SECTION 7.7.  RIGHT OF TRUSTEE TO RELY ON OFFICERS' CERTIFICATE, ETC.............................................           50
SECTION 7.8.  QUALIFICATION OF TRUSTEE; CONFLICTING INTERESTS....................................................           50
SECTION 7.9.  PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE........................................................           50
SECTION 7.10.  RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE.........................................           51
SECTION 7.11.  ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE....................................................           52
SECTION 7.12.  MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS OF TRUSTEE............................           53
SECTION 7.13.  PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE ISSUER..............................................           53
SECTION 7.14.  AUTHENTICATING AGENT..............................................................................           57

                                                         ARTICLE VIII.

                                              CONCERNING THE HOLDERS OF SECURITIES

SECTION 8.1.  ACTION BY HOLDERS..................................................................................           58
SECTION 8.2.  PROOF OF EXECUTION OF INSTRUMENTS BY HOLDERS OF SECURITIES.........................................           58
SECTION 8.3.  HOLDERS TO BE TREATED AS OWNERS....................................................................           59
SECTION 8.4.  SECURITIES OWNED BY ISSUER DEEMED NOT OUTSTANDING..................................................           59
SECTION 8.5.  RIGHT OF REVOCATION OF ACTION TAKEN................................................................           59
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                                                          ARTICLE IX.

                                                       HOLDERS' MEETINGS

SECTION 9.1.  PURPOSES OF MEETINGS...............................................................................           60
SECTION 9.2.  CALL OF MEETINGS BY TRUSTEE........................................................................           60
SECTION 9.3.  CALL OF MEETINGS BY ISSUER OR HOLDERS..............................................................           60
SECTION 9.4.  QUALIFICATIONS FOR VOTING..........................................................................           61
SECTION 9.5.  REGULATIONS........................................................................................           61
SECTION 9.6.  VOTING.............................................................................................           62
SECTION 9.7.  NO DELAY OF RIGHTS BY MEETING......................................................................           62

                                                           ARTICLE X.

                                                    SUPPLEMENTAL INDENTURES

SECTION 10.1.  SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF SECURITYHOLDERS........................................           62
SECTION 10.2.  SUPPLEMENTAL INDENTURES WITH CONSENT OF SECURITYHOLDERS...........................................           64
SECTION 10.3.  NOTICE OF SUPPLEMENTAL INDENTURE..................................................................           65
SECTION 10.4.  EFFECT OF SUPPLEMENTAL INDENTURE..................................................................           65
SECTION 10.5.  DOCUMENTS TO BE GIVEN TO TRUSTEE..................................................................           66
SECTION 10.6.  NOTATION ON SECURITIES AND COUPONS IN RESPECT OF SUPPLEMENTAL INDENTURES..........................           66
SECTION 10.7.  ISSUANCE OF SECURITIES BY SUCCESSOR CORPORATION...................................................           66

                                                          ARTICLE XI.

                                                      SUCCESSOR COMPANIES

SECTION 11.1.  MERGER AND CONSOLIDATION..........................................................................           67
SECTION 11.2.  OPINION OF COUNSEL TO BE GIVEN TO TRUSTEE.........................................................           67

                                                          ARTICLE XII.

                                   SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

SECTION 12.1.  SATISFACTION AND DISCHARGE OF SECURITIES OF ANY SERIES............................................           67
SECTION 12.2.  SATISFACTION AND DISCHARGE OF INDENTURE...........................................................           69
SECTION 12.3.  APPLICATION OF TRUST MONEY........................................................................           69
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SECTION 12.4.  REPAYMENT OF MONEYS HELD BY PAYING AGENT..........................................................           70
SECTION 12.5.  RETURN OF MONEYS HELD BY TRUSTEE AND PAYING AGENT UNCLAIMED FOR TWO YEARS.........................           70

                                                         ARTICLE XIII.

                                                    MISCELLANEOUS PROVISIONS

SECTION 13.1.  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS OF ISSUER [AND GUARANTORS] EXEMPT FROM
               INDIVIDUAL LIABILITY .............................................................................           70
SECTION 13.2.  PROVISIONS OF INDENTURE FOR THE SOLE BENEFIT OF PARTIES AND SECURITYHOLDERS.......................           71
SECTION 13.3.  SUCCESSORS AND ASSIGNS OF ISSUER BOUND BY INDENTURE...............................................           71
SECTION 13.4.  NOTICES TO HOLDERS; WAIVER........................................................................           71
SECTION 13.5.  ADDRESSES FOR NOTICES.............................................................................           71
SECTION 13.6.  OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL; STATEMENTS TO BE CONTAINED THEREIN................           72
SECTION 13.7.  CROSS REFERENCES..................................................................................           73
SECTION 13.8.  LEGAL HOLIDAYS....................................................................................           73
SECTION 13.9.  MONEYS OF DIFFERENT CURRENCIES TO BE SEGREGATED...................................................           74
SECTION 13.10.  PAYMENT TO BE IN PROPER CURRENCY.................................................................           74
SECTION 13.11.  CONFLICT OF ANY PROVISION OF INDENTURE WITH TRUST INDENTURE ACT..................................           74
SECTION 13.12.  NEW YORK LAW TO GOVERN...........................................................................           74
SECTION 13.13.  COUNTERPARTS.....................................................................................           74
SECTION 13.14.  EFFECT OF HEADINGS...............................................................................           74
SECTION 13.15.  SEPARABILITY CLAUSE..............................................................................           75

                                                          ARTICLE XIV.

                                                    REDEMPTION OF SECURITIES

SECTION 14.1.  APPLICABILITY OF ARTICLE..........................................................................           75
SECTION 14.2.  NOTICE OF REDEMPTION; SELECTION OF SECURITIES.....................................................           75
SECTION 14.3.  PAYMENT OF SECURITIES CALLED FOR REDEMPTION.......................................................           76
SECTION 14.4.  EXCLUSION OF CERTAIN SECURITIES FROM ELIGIBILITY FOR SELECTION FOR REDEMPTION.....................           77
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                                                          ARTICLE XV.

                                                         SINKING FUNDS

SECTION 15.1.  APPLICABILITY OF ARTICLE..........................................................................           77
SECTION 15.2.  SATISFACTION OF MANDATORY SINKING FUND PAYMENTS WITH SECURITIES...................................           77
SECTION 15.3.  REDEMPTION OF SECURITIES FOR SINKING FUND.........................................................           78

                                                          ARTICLE XVI.*

                                                           GUARANTEE

SECTION 16.1.  GUARANTEE.........................................................................................           80
SECTION 16.2.  LIMITATION OF GUARANTORS' LIABILITY...............................................................           82
SECTION 16.3.  RELEASES..........................................................................................           82
SECTION 16.4.  SUCCESSORS AND ASSIGNS............................................................................           82
SECTION 16.5.  NO WAIVER, ETC....................................................................................           83
SECTION 16.6.  ADDITIONAL GUARANTORS.............................................................................           83
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                  INDENTURE, dated as of ____________, 20__, between STARWOOD
HOTELS & RESORTS WORLDWIDE, INC., a Maryland corporation (the "Issuer"), [the
companies listed on the signature pages thereto that are subsidiaries of the
Issuer (the "Guarantors")]* and ________________, a ________________________, as
Trustee (the "Trustee").

                             RECITALS OF THE ISSUER

                  The Issuer is authorized to borrow money for its corporate
purposes and to issue debentures, notes or other evidences of indebtedness
therefor; and for its corporate purposes, the Issuer has determined to make and
issue its debentures, notes or other evidences of indebtedness to be issued in
one or more series (the "Securities"), as hereinafter provided, up to such
principal amount or amounts as may from time to time be authorized by or
pursuant to the authority granted in one or more resolutions of the Board of
Directors.

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

                  NOW, THEREFORE, THIS INDENTURE WITNESSETH:

                  That, in consideration of the premises and of the mutual
covenants herein contained and of the purchase and acceptance of the Securities
by the holders thereof and of the sum of One Dollar to the Issuer duly paid by
the Trustee at or before the delivery of these presents, and for other valuable
considerations, the receipt whereof is hereby acknowledged, and in order to
declare the terms and conditions upon which the Securities are to be issued, IT
IS HEREBY COVENANTED, DECLARED AND AGREED, by and among the parties hereto, that
all the Securities are to be executed, authenticated and delivered subject to
the further covenants and conditions hereinafter set forth; and the Issuer, for
itself and its successors, does hereby covenant and agree to and with the
Trustee and its successors in said trust, for the benefit of those who shall
hold the Securities, or any of them, as follows:

                                   ARTICLE I.

                                   DEFINITIONS

                  SECTION 1.1. CERTAIN TERMS DEFINED. The following terms
(except as otherwise expressly provided or unless the context otherwise clearly
requires) for all purposes of this Indenture and of any indenture supplemental
hereto shall have the respective meanings specified in this Section. All other
terms used in this Indenture that are defined in the Trust Indenture Act or the
definitions of which in the Securities Act are referred to in the Trust
Indenture Act or by Commission rule under the Trust Indenture Act (except as
herein otherwise expressly provided or unless the context otherwise clearly
requires) shall have the meanings assigned to such terms in said Trust Indenture
Act, such rule thereunder or in said Securities Act as in force at the date of
this Indenture. All accounting terms used and not expressly defined herein shall
have the meanings assigned to such terms in accordance with generally accepted
accounting principles,

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* This language to be included if debt securities are guaranteed.
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and the term "generally accepted accounting principles" means such accounting
principles as are generally accepted at the time of any computation. 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. The terms defined in this Article have the meanings assigned to
them in this Article and include the plural as well as the singular.

                  "AUTHENTICATING AGENT" means with respect to any series of
Securities, an authenticating agent appointed by the Trustee with respect to
that series of Securities pursuant to Section 7.14.

                  "AUTHORIZED NEWSPAPER" means a newspaper in an official
language of the country of publication customarily published at least once a
day, and customarily published for at least five days in each calendar week, and
of general circulation in such city or cities as may be provided elsewhere in
this Indenture or specified as contemplated by Section 3.1 with respect to the
Securities of any series the terms of which permit Unregistered Securities or
Coupon Securities. 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 a Business Day, in such city.

                  "BANKRUPTCY LAW" see Section 6.1.

                  "BOARD OF DIRECTORS" means either the Board of Directors of
the Issuer or any committee of such Board duly authorized to act hereunder.

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

                  "BUSINESS DAY" means with respect to any Security, a day
which, in the city (or in any of the cities, if more than one) in which amounts
are payable as specified in the form of such Security, is neither a legal
holiday nor a day on which banking institutions, including the Trustee, are
authorized or required by law or regulation or executive order to close.

                  "CAPITAL STOCK" means any and all shares, interests,
participations or other equivalents (however designated) of corporate stock.

                  "CAPITALIZED LEASEBACK OBLIGATION" means the total net rental
obligations of the Issuer or a Restricted Subsidiary under any lease entered
into as part of a sale and leaseback transaction involving a Principal Property
discounted to present value at the rate of 9% per annum.

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

                  "COMPONENT CURRENCY" see Section 3.12(i).

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                  "CONSOLIDATED NET TANGIBLE ASSETS" means the total of all
assets appearing on a consolidated balance sheet of the Issuer and its
Restricted Subsidiaries prepared in accordance with generally accepted
accounting principles in the United States as of a date not more than 90 days
prior to the date as of which Consolidated Net Tangible Assets are to be
determined, but excluding:

                  (i) the book amount of all segregated intangible assets;

                  (ii) all depreciation, valuation and other reserves;

                  (iii) current liabilities;

                  (iv) any minority interest in the stock and surplus of
         Restricted Subsidiaries;

                  (v) the investment of the Issuer and its Restricted
         Subsidiaries in any Subsidiary of the Issuer which is not a Restricted
         Subsidiary;

                  (vi) deferred income and deferred liabilities; and

                  (vii) other items deductible under generally accepted
         accounting principles.

                  "CONVERSION DATE" see Section 3.12(e).

                  "CONVERSION RATE" see Section 6.13.

                  "CORPORATE TRUST OFFICE" means the principal office of the
Trustee at which at any particular time its corporate trust business shall be
administered, except that, with respect to presentation of Registered Securities
for payment or for registration of transfer and exchange, presentation of
Unregistered Securities for registration and the location of the Securities
Register, such term shall mean such office or the agency of the Trustee
designated for such purpose.

                  "COUPON" means any interest coupon appertaining to any
Security.

                  "COUPON SECURITY" means any Security authenticated and
delivered with one or more Coupons appertaining thereto.

                  "CUSTODIAN" see Section 6.1.

                  "DEPOSITARY" means with respect to any series of Securities
for which the Issuer shall determine that such Securities will be issued as a
Global Security, The Depository Trust Company, New York, New York, another
clearing agency or any successor registered under the Exchange Act, or other
applicable statute or regulation, which, in each case, shall be designated by
the Issuer pursuant to either Section 2.4 or 3.1.

                  "DOLLAR" 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.

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                  "DOLLAR DETERMINATION AGENT" means the New York clearing house
bank, if any, from time to time selected by the Issuer for purposes of Section
3.12.

                  "DOLLAR EQUIVALENT OF THE CURRENCY UNIT" see Section 3.12(h).

                  "DOLLAR EQUIVALENT OF THE FOREIGN CURRENCY" see Section
3.12(g).

                  "EVENT OF DEFAULT" means any event or condition specified as
such in Section 6.1 which shall have continued for the period of time, if any,
therein designated.

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

                  "EXCHANGE RATE OFFICER'S CERTIFICATE" means a telex or a
certificate setting forth (i) the applicable Official Currency Unit Exchange
Rate and (ii) the Dollar or Foreign Currency amounts of principal, premium, if
any, and interest, if any, respectively (on an aggregate basis and on the basis
of a Security having a principal amount of 1,000 in the relevant currency unit),
payable on the basis of such Official Currency Unit Exchange Rate, sent (in the
case of a telex) or signed (in the case of a certificate) by the Treasurer or
any Associate or Assistant Treasurer of the Issuer and delivered to the Trustee.

                  "FAIR VALUE" when used with respect to property, means the
fair value as determined in good faith by the Board of Directors.

                  "FOREIGN CURRENCY" means a currency issued by the government
of or adopted by the government as the legal currency of any country other than
the United States.

                  "FULLY REGISTERED SECURITY" means any Security registered as
to principal and interest, if any.

                  "FUNDED DEBT" as applied to any corporation means all
indebtedness incurred, created, assumed or guaranteed by such corporation, or
upon which it customarily pays interest charges, which matures, or is renewable
by such corporation to a date, more than one year after the date as of which
Funded Debt is being determined; provided, however, that the term "Funded Debt"
shall not include (i) indebtedness incurred in the ordinary course of business
representing borrowings, regardless of when payable, of such corporation from
time to time against, but not in excess of the face amount of, its installment
accounts receivable for the sale of appliances and equipment sold in the regular
course of business or (ii) advances for construction and security deposits
received by such corporation in the ordinary course of business.

                  "GLOBAL SECURITY" means, with respect to any series of
Securities, a Security executed by the Issuer and authenticated and delivered by
the Trustee to the Depositary or pursuant to the Depositary's instruction, all
in accordance with this Indenture and pursuant to an Issuer Order, which (i)
shall be registered in the name of the Depositary, or its nominee and (ii) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, all of the Outstanding Securities of such series or any
portion thereof, in either case having the same terms, including, without
limitation, the same issue date, date or dates on which principal is due, and
interest rate or method of determining interest.

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                  "GOVERNMENT OBLIGATIONS" means, with respect to the Securities
of any series, securities which are (i) direct obligations of the government
which issued the currency in which the Securities of such series are denominated
or (ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of the government which issued the currency in which
the Securities of such series are denominated the payment of which is
unconditionally guaranteed by such government, and which, in either case, are
full faith and credit obligations of such government and are not callable or
redeemable at the option of the issuer thereof, and shall also include a
depository receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act) as custodian with respect to any such Government Obligation or a
specific payment of interest on or principal of any such Government Obligation
held by such custodian for the account of the holder of 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 Government
Obligation or the specific payment of interest on or principal of the Government
Obligation evidenced by such depository receipt.

                  ["GUARANTEES" means the guarantees set forth in Section 16.1
hereof.]*

                  ["GUARANTORS" means _____________________________]*

                  "HOLDER" or "SECURITYHOLDER" means, with respect to a
Registered Security, any person in whose name at the time a particular
Registered Security is registered in the Securities Register; with respect to an
Unregistered Security, the bearer of such Unregistered Security; and, with
respect to a Coupon, the bearer thereof.

                  "INDEBTEDNESS" means bonds, debentures, notes and other
instruments representing obligations created or assumed by such Person for the
repayment of money borrowed (other than unamortized debt discount or premium).
All indebtedness secured by a lien upon property owned by such Person or any
Subsidiary and upon which indebtedness such Person customarily pays interest,
although such Person has not assumed or become liable for the payment of such
indebtedness, shall for all purposes hereof be deemed to be indebtedness of such
Person. All indebtedness for money borrowed incurred by other persons which is
directly guaranteed as to payment of principal by such Person shall for all
purposes hereof be deemed to be indebtedness of, but no other contingent
obligation of any such Person in respect of indebtedness incurred by other
Persons shall for any purpose be deemed indebtedness of such Person.

                  "INDENTURE" means this instrument as originally executed and
delivered or, if amended or supplemented as herein provided, as so amended or
supplemented, and shall include the forms and terms of particular series of
Securities established as contemplated hereunder, regardless of the currency or
currency unit in which such Securities are denominated.

                  "INTEREST" means, when used with respect to any non-interest
bearing Security, interest payable after Maturity.

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* This language to be included if debt securities are guaranteed.

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                  "INTEREST PAYMENT DATE" means the Stated Maturity of an
installment of interest on the Securities of any series.

                  "ISSUER" means Starwood Hotels & Resorts Worldwide, Inc., a
Maryland corporation, and, subject to Article Eleven, its successors and
assigns.

                  "ISSUER ORDER" and "ISSUER REQUEST" mean a written order and a
written request, respectively, signed in the name of the Issuer by the chairman
or any vice chairman or the president or any vice president and by the treasurer
or any associate or assistant treasurer or the secretary or any assistant
secretary of the Issuer and delivered to the Trustee.

                  "MARKET EXCHANGE RATE" see Section 3.12(i).

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

                  "OFFICER" means the chairman, any vice chairman, the
president, any vice president, the treasurer, any associate or assistant
treasurer or the secretary or any assistant Secretary of the Issuer [or of any
of the Guarantors, as the case may be]*.

                  "OFFICERS' CERTIFICATE" means a certificate signed by the
chairman or any vice chairman or the president or any vice president and by the
treasurer or any associate or assistant treasurer or the secretary or any
assistant secretary of the Issuer [or of any of the Guarantors, as the case may
be,]* and delivered to the Trustee. Each such certificate shall include the
statements provided for in Section 13.6 if and to the extent required thereby.

                  "OFFICIAL CURRENCY UNIT EXCHANGE RATE" means, with respect to
any payment to be made hereunder, the exchange rate between the relevant
currency unit and the Dollar calculated by the agency specified pursuant to
Section 3.1 for the Securities of the relevant series, on the second Business
Day (in the city in which such agency has its principal office) immediately
preceding the applicable payment date.

                  "OPINION OF COUNSEL" means an opinion in writing signed by
legal counsel who may be an employee of or counsel to the Issuer or who may be
other counsel satisfactory to the Trustee. Each such opinion shall include the
statements provided for in Section 13.6 if and to the extent required thereby.

                  "ORIGINAL ISSUE DATE" of any Security (or portion thereof)
means the earlier of (a) the date of such Security or (b) the date of any
Security (or portion thereof) for which such Security was issued (directly or
indirectly) on registration of transfer, exchange or substitution.

                  "ORIGINAL ISSUE DISCOUNT SECURITY" means (i) any Security that
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of

----------

* This language to be included if debt securities are guaranteed.

                                      -6-
<PAGE>   14
acceleration of the maturity thereof pursuant to Section 6.1 and (ii) any other
Security deemed an Original Issue Discount Security for United States Federal
income tax purposes.

                  "OUTSTANDING" (except as otherwise provided in Section 7.8),
when used with reference to Securities, shall, subject to the provisions of
Section 8.4, mean, as of any particular time, all Securities authenticated and
delivered by the Trustee under this Indenture, except

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

                  (b) Securities, or portions thereof, for the payment or
redemption of which moneys in the necessary amount shall have been deposited in
trust with the Trustee or with any Paying Agent (other than the Issuer) or shall
have been set aside, segregated and held in trust by the Issuer for the Holders
of such Securities (if the Issuer shall act as its own Paying Agent); provided
that, if such Securities, or portions thereof, are to be redeemed prior to the
maturity thereof, notice of such redemption shall have been given as herein
provided, or provision satisfactory to the Trustee shall have been made for
giving such notice; and

                  (c) Securities in substitution for which other Securities
shall have been authenticated and delivered, or which shall have been paid,
pursuant to the terms of Section 3.7 (except with respect to any such Security
as to which proof satisfactory to the Trustee is presented that such Security is
held by a person in whose hands such Security is a legal, valid and binding
obligation of the Issuer).

                  In determining whether the Holders of the requisite principal
amount of Outstanding Securities of any or all series have given any request,
demand, authorization, direction, notice, consent or waiver hereunder, the
principal amount of an Original Issue Discount Security that shall be deemed to
be Outstanding for such purposes shall be the amount of the principal thereof
that would be due and payable as of the date of such determination upon a
declaration of acceleration of the maturity thereof pursuant to Section 6.1.

                  "OVERDUE RATE" with respect to any series of Securities means
the rate designated as such in or pursuant to the resolution of the Board of
Directors of the Issuer or the supplemental indenture, as the case maybe,
relating to such series as contemplated by Section 3.1.

                  "PAYING AGENT" means any person authorized by the Issuer to
pay the principal of, or premium, if any, or interest, if any, on, any
Securities on behalf of the Issuer.

                  "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 PAYMENT", when used with respect to the Securities
of any series, means the place or places where the principal of, premium, if
any, and interest, if any, on, the Securities of such series are payable as
specified pursuant to Section 3.1.

                                      -7-
<PAGE>   15
                  ["PLEDGE AGREEMENT" means the Pledge and Security Agreement,
dated February 23, 1998, as amended modified or supplemented, by and between the
Issuer, the Trust, certain direct and indirect subsidiaries of the Issuer and
Bankers Trust Company, as Collateral Agent.]*

                  ["PLEDGE TERMINATION EVENT" means the earliest to occur of (i)
the termination of the Pledge Agreement or the release of all of the collateral
thereunder in accordance with the terms thereof, (ii) the release by the lenders
under the Senior Credit Agreement of the security interests and benefits
afforded by the Pledge Agreement such that the Senior Credit Agreement is no
longer secured by any of the collateral under the Pledge Agreement, (iii) the
repayment in full of the obligations under the Senior Credit Agreement or (iv)
the occurrence of a "Termination Date" (as such term is defined in the Senior
Credit Agreement).]*

                  "PREDECESSOR SECURITY" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 3.7 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the
lost, destroyed or stolen Security.

                  "PRINCIPAL PROPERTY" means any single property owned by the
Issuer or any Restricted Subsidiary having a gross book value in excess of 2% of
Consolidated Net Tangible Assets, except any such property or portion thereof
which the Board of Directors by resolution declares is not of material
importance to the total business conducted by the Issuer and its Restricted
Subsidiaries as an entirety.

                  "REDEMPTION DATE", when used with respect to any Security to
be redeemed, means that date fixed for such redemption by or pursuant to this
Indenture.

                  "REDEMPTION PRICE", when used with respect to any Security to
be redeemed, means the price, in the Dollars or the Foreign Currency or currency
unit in which such Security is denominated or which is otherwise provided for
pursuant to this Indenture, at which it is to be redeemed pursuant to this
Indenture.

                  "REGISTERED HOLDER" means, with respect to a Registered
Security, the Person in whose name such Security is registered in the Securities
Register.

                  "REGISTERED SECURITY" means any Security registered as to
principal.

                  "REQUIRED CURRENCY" see Section 13.10.

                  "RESPONSIBLE OFFICER" when used with respect to the Trustee
means any officer in the Corporate Trust Office of the Trustee and any other
officer of the Trustee to whom any corporate trust matter is referred because of
his knowledge of and familiarity with the particular subject.

----------

* This language to be included if debt securities are guaranteed.

                                      -8-
<PAGE>   16
                  "RESTRICTED SUBSIDIARY" means any Subsidiary other than an
Unrestricted Subsidiary.

                  "SALE AND LEASEBACK TRANSACTION" see Section 4.7.

                  "SECURITY" or "SECURITIES" (except as otherwise provided in
Section 7.8) has the meaning stated in the recitals of this Indenture and more
particularly shall mean any Registered or Unregistered Securities authenticated
and delivered under this Indenture.

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

                  "SECURITIES REGISTER" and "SECURITIES REGISTRAR" see Section
3.6.

                  ["SENIOR CREDIT AGREEMENT" means the Credit Agreement, dated
as of February 23, 1998, among the Issuer, Starwood Hotels & Resorts, a Maryland
real estate investment trust, SLT Realty Limited Partnership, a Delaware limited
partnership, Sheraton Holding Corporation, a Nevada corporation, certain
additional borrowers, various lenders, Bankers Trust Company and The Chase
Manhattan Bank, as administrative agents, and Lehman Commercial Paper Inc. and
Bank of Montreal, as syndication agents, as such agreement has been or hereafter
may be amended in accordance with its terms.]*

                  ["SHERATON INDENTURE" means the Indenture, dated as of
December 19, 1995, as amended, among Sheraton Holding Corporation, as issuer,
Starwood Hotels & Resorts Worldwide, Inc., as guarantor, and The Bank of New
York, as trustee.]*

                  ["SIGNIFICANT SUBSIDIARY" means any subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Indenture.]*

                  "SPECIFIED AMOUNT" see Section 3.12(i).

                  "STATED MATURITY", when used with respect to any Security or
any installment of interest thereon, means the date specified in such Security
or the Coupon, if any, representing such installment of interest, as the fixed
date on which the principal of such Security or such installment of interest is
due and payable.

                  "SUBSIDIARY" of any Person means any corporation, association,
partnership or other business entity of which more than 50% of the total voting
power of shares of Capital Stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (i) such Person, (ii) such
Person and one or more Subsidiaries of such Person or (iii) one or more
Subsidiaries of such Person.

                  "SUCCESSOR COMPANY" see Section 11.1(a).

----------

* This language to be included if debt securities are guaranteed.

                                      -9-
<PAGE>   17

                  "TRUSTEE" means the person identified as "Trustee" in the
first paragraph of this Indenture and, subject to the provisions of Article
Seven shall also include any successor trustee. If there shall be more than one
Trustee at any one time, "Trustee" shall mean each such Trustee and shall apply
to each such Trustee only with respect to those series of Securities with
respect to which it is serving as Trustee.

                  "TRUST INDENTURE ACT" (except as otherwise provided in
Sections 10.1 and 10.2) means the Trust Indenture Act of 1939, as amended by the
Trust Indenture Reform Act of 1990, and as in force at the date as of which this
Indenture was originally executed.

                  "UNREGISTERED SECURITY" means any Security that is not
registered as to principal.

                  "UNRESTRICTED SUBSIDIARY" means:

                  (a) any Subsidiary 50% or less of the voting stock of which is
owned directly by the Issuer and/or one or more Restricted Subsidiaries; or

                  (b) any Subsidiary designated as an Unrestricted Subsidiary by
the Issuer's Board of Directors.

                  "VALUATION DATE" see Section 3.12(e).

                  "VICE PRESIDENT" means any vice president, whether or not
designated by a number or a word or words added before or after the title of
"vice president".

                  SECTION 1.2. OTHER DEFINED TERMS. Certain other terms are
defined in Article Seven.

                                  ARTICLE II.

                                 SECURITY FORMS

                  SECTION 2.1. FORMS GENERALLY. The Securities of each series,
and the Coupons, if any, to be attached thereto, shall be in substantially the
form as shall be established pursuant to Section 3.1 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 or designation and such legends or endorsements
placed thereon as the Issuer may deem appropriate and as are not inconsistent
with the provisions of this Indenture or as may be required to comply with any
law or with any rules or regulations made pursuant thereto or with any rules or
regulations of any securities exchange on which any of the Securities may be
listed, or as may, consistently herewith, be determined by the officers
executing such Securities, and Coupons, if any, as evidenced by their execution
of the Securities, and Coupons, if any.

                  The definitive Securities and Coupons, if any, of each series
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
Securities and Coupons, if any, as evidenced by their execution of such
Securities and Coupons, if any, subject, with respect to the Securities of

                                      -10-
<PAGE>   18
any series, to the rules of any securities exchange on which the Securities of
such series are listed.

                  SECTION 2.2. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
The Trustee's Certificate of Authentication on all Securities shall be in
substantially the following form:

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

                                           ----------------------------------,
                                           as Trustee

                                           by
                                              --------------------------------
                                                Authorized Officer

                  SECTION 2.3. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION
BY AN AUTHENTICATING AGENT. If at any time there shall be an Authenticating
Agent appointed with respect to any series of Securities, then the Trustee's
Certificate of Authentication by such Authenticating Agent on all Securities of
such series shall be in substantially the following form:

                                            ---------------------------------,
                                            as Trustee

                                            by [NAME OF AUTHENTICATING AGENT],
                                            Authenticating Agent

                                           by
                                              --------------------------------
                                                Authorized Officer

                  SECTION 2.4. SECURITIES ISSUABLE IN THE FORM OF A GLOBAL
SECURITY. (a) If the Issuer shall establish pursuant to Section 3.1 that the
Securities of a particular series are to be issued in whole or in part in one or
more Global Securities, then the Issuer shall execute and the Trustee shall, in
accordance with Section 3.3 and the Issuer Order delivered to the Trustee
thereunder, authenticate and deliver a Global Security or Securities which (i)
shall represent, and shall be denominated in an amount equal to the aggregate
principal amount of, the Outstanding Securities of such series to be represented
by such Global Security or Securities, (ii) shall be registered in the name of
the Depositary for such Global Security or Securities or its nominee, (iii)
shall be delivered by the Trustee to the Depositary or pursuant to the
Depositary's instruction and (iv) shall bear a legend substantially to the
following effect: "Except as otherwise provided in Section 2.4 of the Indenture,
this Security may be transferred, in whole but not in part, only to a nominee of
the Depositary, or by a nominee of the Depositary to the Depositary, or to a
successor Depositary or to a nominee of such successor Depositary."

                  (b) Notwithstanding any other provision of this Section 2.4 or
of Section 3.6, the Global Security of a series may be transferred, in whole but
not in part and in the manner provided in Section 3.6, only to a nominee of the
Depositary, for such series or by a nominee of the Depositary to the Depositary
or to a successor Depositary for such series selected or approved by the Issuer
or to a nominee of such successor Depositary.

                                      -11-
<PAGE>   19
                  (c) If at any time the Depositary for a series of Securities
notifies the Issuer that it is unwilling or unable to continue as Depositary for
such series or if at any time the Depositary for such series shall no longer be
registered or in good standing under the Exchange Act, or other applicable
statute or regulation and a successor Depositary for such series is not
appointed by the Issuer within 90 days after the Issuer receives such notice or
becomes aware of such condition, as the case may be, this Section 2.4 shall no
longer be applicable to the Securities of such series and the Issuer will
execute, and the Trustee will, in accordance with Section 3.3 and an Issuer
Order delivered to the Trustee, authenticate and deliver, Fully Registered
Securities of such series, in authorized denominations, and in an aggregate
principal amount equal to the principal amount of the Global Security of such
series in exchange for such Global Security. In addition, the Issuer may at any
time determine that the Securities of any series shall no longer be represented
by a Global Security and that the provisions of this Section 2.4 shall no longer
apply to the Securities of such series. In such event the Issuer will execute
and the Trustee, upon receipt of an Officers' Certificate evidencing such
determination by the Issuer, will authenticate and deliver Fully Registered
Securities of such series, in authorized denominations, and in an aggregate
principal amount equal to the principal amount of the Global Security of such
series in exchange for such Global Security. Upon the exchange of the Global
Security for Fully Registered Securities issued in exchange for the Global
Security pursuant to this Section 2.4(c), such (i) Global Security shall be
canceled by the Trustee, and (ii) Fully Registered Securities shall be
registered in such names and in such authorized denominations as the Depositary,
pursuant to instructions from its direct or indirect participants or otherwise,
shall instruct the Trustee. The Trustee shall deliver such Securities to the
Persons in whose names such Securities are so registered.

                                  ARTICLE III.

                                 THE SECURITIES

                  SECTION 3.1. AMOUNT UNLIMITED; ISSUABLE IN SERIES. The
aggregate principal amount of Securities which may be authenticated and
delivered under this Indenture is unlimited. The Securities may be issued in one
or more series. There shall be established in or pursuant to the authority
granted in a Board Resolution or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series:

                  (a) the form of the Securities of any series and the Coupons,
if any, appertaining thereto;

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

                  (c) any limit upon the aggregate principal amount of the
Securities of the series that may be authenticated and delivered under this
Indenture (except for Securities authenticated and delivered upon registration
of transfer of, or in exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.4, 3.6, 3.7, 3.10 or 14.3);

                  (d) the date or dates on which such Securities may be issued;

                                      -12-
<PAGE>   20
                  (e) the date or dates, which may be serial, on which the
principal of, and premium, if any, on, the Securities of such series shall be
payable;

                  (f) the rate or rates, or the method of determination thereof,
at which the Securities of such series shall bear interest, if any, the date or
dates from which such interest shall accrue, the Interest Payment Dates on which
such interest shall be payable and, in the case of Registered Securities, the
record dates, if other than as set forth in Section 3.8, for the determination
of Holders to whom interest is payable, and whether any special terms and
conditions relating to the payment of additional amounts in respect of payments
on the Securities of such series shall in the event of certain changes in the
United States Federal income tax laws apply to Unregistered Securities of such
series or to Registered Securities of such series;

                  (g) the place or places where the principal of, and premium,
if any, and interest, if any, on Securities of the series shall be payable (if
other than as provided in Section 4.2);

                  (h) the provisions, if any, establishing the price or prices
at which, the period or periods within which and the terms and conditions upon
which Securities of the series may be redeemed, in whole or in part, at the
option of the Issuer, pursuant to any sinking fund or otherwise, and whether any
special terms and conditions of redemption shall apply to Unregistered
Securities of such series or to Registered Securities of such series;

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

                  (j) if other than denominations of 1,000 and any integral
multiple thereof, in Dollars or the Foreign Currency or currency unit in which
the Securities of such series are denominated, the denominations in which
Securities of such series shall be issuable;

                  (k) if other than the principal amount thereof, the portion of
the principal amount of Securities of such series which shall be payable upon
declaration of acceleration of the maturity thereof pursuant to Section 6.1 or
provable in bankruptcy pursuant to Section 6.2;

                  (l) whether payment of the principal of, premium, if any, and
interest, if any, on the Securities of such series shall be with or without
deduction for taxes, assessments or governmental charges, and with or without
reimbursement of taxes, assessments or governmental charges paid by Holders;

                  (m) any Events of Default with respect to the Securities of
such series, if not set forth herein;

                  (n) if other than the rate of interest stated in the title of
the Securities of such series, the applicable Overdue Rate;

                                      -13-
<PAGE>   21
                  (o) in case the Securities of such series do not bear
interest, the applicable dates for the purpose of clause (a) of Section 5.1;

                  (p) whether the Securities of such series are to be issued as
Registered Securities (with or without Coupons) or Unregistered Securities or
both, and, if Unregistered Securities or Coupon Securities are issued, whether
Unregistered Securities or Coupon Securities of such series may be exchanged for
Registered Securities or Fully Registered Securities of such series and whether
Registered Securities or Fully Registered Securities of such series may be
exchanged for Unregistered Securities of such series and the circumstances under
which and the place or places where any such exchanges, if permitted, may be
made;

                  (q) the currency or currencies, or currency unit or currency
units, whether in Dollars or a Foreign Currency or currency unit, in which the
principal of, and premium, if any, and interest, if any, on the Securities of
such series or any other amounts payable with respect thereto, including,
without limitation, Coupons, are to be denominated, payable, redeemable or
repurchaseable, as the case may be, and whether such principal, premium, if any,
and interest, if any, payable otherwise than in Dollars may, at the option of
the holders of any Security of such series, also be payable in Dollars;

                  (r) if other than as set forth in Section 12.1, provisions for
the satisfaction and discharge of the indebtedness represented by the Securities
of such series;

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

                  (t) if the amount of payment of principal of, premium, if any,
or interest on the Securities of such series may be determined with reference to
an index, formula or other method based on a coin, currency, or currency unit
other than that in which the Securities are stated to be payable or otherwise,
the manner in which such amounts shall be determined;

                  (u) any other terms of such series (which terms shall not be
inconsistent with the provisions of this Indenture); and

                  (v) any trustees, authenticating or paying agents, warrant
agents, transfer agents or registrars with respect to the Securities of such
series, and, if the Securities of such series are to be denominated and payable
in any currency other than Dollars, the initial Dollar Determination Agent.

                  All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the authority granted in such resolution of the Board of
Directors or in any such indenture supplemental hereto.

                  SECTION 3.2. FORM AND DENOMINATIONS. In the absence of any
specification pursuant to Section 3.1 with respect to the Securities of any
series, the Securities of such series shall be issuable as Fully Registered
Securities in denominations of $1,000 and any integral multiple thereof, and
shall be payable in Dollars.

                                      -14-
<PAGE>   22
                  SECTION 3.3. AUTHENTICATION, DATING AND DELIVERY OF
SECURITIES. At any time and from time to time after the execution and delivery
of this Indenture, the Issuer may deliver Securities of any series, with
appropriate Coupons, if any, attached thereto, executed by the Issuer to the
Trustee for authentication. Except as otherwise provided in this Article Three,
the Trustee shall thereupon authenticate and deliver, or cause to be
authenticated and delivered, said Securities to or upon Issuer Order, without
any further action by the Issuer. In authenticating such Securities and
accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee shall be entitled to receive, prior to the initial
authentication of such Securities, and (subject to Section 7.1) shall be fully
protected in relying upon:

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

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

                  (c) an Officers' Certificate which shall state that all
conditions precedent provided for in this Indenture relating to the issuance of
such Securities have been complied with, that no Event of Default with respect
to any series of Securities has occurred and is continuing and that the issuance
of such Securities does not constitute and will not result in (i) any Event of
Default or any event or condition, which, upon the giving of notice or the lapse
of time or both, would become an Event of Default or (ii) any default under the
provisions of any other instrument or agreement by which the Issuer is bound;
and

                  (d) an Opinion of Counsel, which shall state:

                  (i) that the form and the terms of such Securities and
         Coupons, if any, have been established by or pursuant to the authority
         granted in a Board Resolution delivered to the Trustee pursuant to
         subparagraph (a) above or by a supplemental indenture delivered to the
         Trustee pursuant to subparagraph (b) above as provided by Section 3.1
         and in accordance with the provisions of this Indenture;

                  (ii) that such Securities, when authenticated and delivered by
         the Trustee and issued by the Issuer in the manner and subject to any
         conditions specified in such Opinion of Counsel, will constitute
         (together with the Coupons, if any appertaining thereto) valid and
         binding obligations of the Issuer enforceable in accordance with their
         terms, subject to bankruptcy, insolvency, organization and other laws
         of general applicability relating to or affecting the enforcement of
         creditors' rights and to general equity principles;

                  (iii) that the Issuer has the corporate power to issue such
         Securities and Coupons, if any, and has duly taken all necessary
         corporate action with respect to such issuance;

                  (iv) that the issuance of such Securities and Coupons, if any,
         will not contravene the charter or by-laws of the Issuer or result in
         any violation of any of the terms or provisions of any law or
         regulation or of any indenture, mortgage or other agreement known to
         such Counsel by which the Issuer or any of its Subsidiaries is bound;

                                      -15-
<PAGE>   23
                  (v) that all laws and requirements in respect of the execution
         and delivery by the Issuer of the Securities and Coupons, if any, and
         the related supplemental indenture, if any, have been complied with and
         that authentication and delivery of such Securities and Coupons, if
         any, and the execution and delivery of the related supplemental
         indenture, if any, by the Trustee will not violate the terms of the
         Indenture; and

                  (vi) such other matters as the Trustee may reasonably request.

                  Notwithstanding the provisions of Section 3.1 and of this
Section 3.3, if all Securities of a series are not to be originally issued at
one time, it shall not be necessary to deliver the Officers' Certificate or
supplemental indenture otherwise required pursuant to Section 3.1 or the Issuer
Order, Officers' Certificate and Opinion of Counsel required pursuant to this
Section 3.3 at or prior to the time of authentication of each Security of such
series if such documents are delivered at or prior to the time of authentication
upon original issuance of the first Security of such series to be issued;
provided, however, that any subsequent request by the Issuer to the Trustee to
authenticate Securities of such series shall constitute a representation and
warranty by the Issuer that as of the date of such request the statements made
in the Officers' Certificate delivered pursuant to Section 3.3(c) shall be true
and correct on the date thereof as if made on and as of the date thereof.

                  The Trustee shall have the right to decline to authenticate
and deliver any Securities together with any Coupons appertaining thereto under
this Section if the Trustee, being advised by counsel, determines that such
action may not lawfully be taken by the Issuer or if the Trustee in good faith
by its board of directors or board of trustees, executive committee, or a trust
committee of directors or trustees and/or responsible officers shall determine
that such action would expose the Trustee to personal liability to existing
Holders.

                  Each Registered Security shall be dated the date of its
authentication.

                  SECTION 3.4. EXECUTION OF SECURITIES AND COUPONS. The
Securities and Coupons, if any, appertaining thereto shall be signed in the name
of and on behalf of the Issuer by both (a) its chairman or any vice chairman or
its president or any vice president and (b) by its treasurer or any associate or
assistant treasurer or its secretary or any assistant secretary, under its
corporate seal which may, but need not, be attested. Such signatures may be the
manual or facsimile signatures of such officers. The seal of the Issuer may be
in the form of a facsimile thereof and may be impressed, affixed, imprinted or
otherwise reproduced thereon. Typographical and other minor errors or defects in
any such reproduction of the seal or any such signature shall not affect the
validity or enforceability of any Security or Coupon that has been duly
authenticated and delivered by the Trustee.

                  In case any officer of the Issuer who shall have signed any of
the Securities or Coupons, if any, shall cease to be such officer before the
Security or Coupons, if any, so signed shall be authenticated (in the case of
the Securities) and delivered by or on behalf of the Trustee or disposed of by
the Issuer, such Securities and Coupons, if any, appertaining thereto
nevertheless may be authenticated (in the case of the Securities) and delivered
or disposed of as though the person who signed such Securities or Coupons, if
any, had not ceased to be such officer of the Issuer; and any Security or
Coupon, if any, may be signed on behalf of the Issuer

                                      -16-
<PAGE>   24
by such persons as, at the actual date of the execution of such Security or
Coupon, if any, shall be the proper officers of the Issuer, although at the date
of the execution and delivery of this Indenture any such person was not such an
officer.

                  The Trustee shall not authenticate or deliver any Coupon
Security until any matured Coupons appertaining thereto have been detached and
canceled, except as otherwise provided or permitted by this Indenture.

                  SECTION 3.5. CERTIFICATE OF AUTHENTICATION. No Security or
Coupon appertaining thereto shall be entitled to the benefits of this Indenture
or be valid or obligatory for any purpose, unless there appears on such Security
a certificate of authentication substantially in the form hereinbefore recited,
executed by or on behalf of the Trustee by manual signature. Such certificate by
or on behalf of the Trustee upon any Security executed by the Issuer shall be
conclusive evidence that the Security so authenticated has been duly
authenticated and delivered hereunder and that the Holder is entitled to the
benefits of this Indenture.

                  SECTION 3.6. REGISTRATION; REGISTRATION OF TRANSFER AND
EXCHANGE. Subject to the conditions set forth below, Securities of any series
may be exchanged for a like aggregate principal amount of Securities of the same
series of other authorized denominations. Securities to be exchanged shall be
surrendered together, in the case of Coupon Securities, with all unmatured
Coupons and matured Coupons in default appertaining thereto, at the offices or
agencies to be maintained by the Issuer for such purposes as provided in Section
4.2, and the Issuer shall execute and register and the Trustee or any
Authenticating Agent shall authenticate and deliver in exchange therefor the
Security or Securities which the Holder making the exchange shall be entitled to
receive.

                  The Issuer shall keep or cause to be kept, at one of said
offices or agencies, a register for each series of Securities issued hereunder
which may include Registered Securities (hereinafter collectively referred to as
the "Securities Register") in which, subject to such reasonable regulations as
it may prescribe, and subject also to the provisions of Section 2.4, the Issuer
shall provide for the registration of Registered Securities of such series and
shall register the transfer of Registered Securities of such series as in this
Article Three provided. The Securities Register shall be in written form or in
any other form capable of being converted into written form within a reasonable
time. The Trustee and the Authenticating Agent are hereby appointed "Securities
Registrars" for the purpose of registering Registered Securities and registering
transfers of Registered Securities as herein provided. Subject to the provisions
of Section 2.4, upon due presentment for registration of transfer of any
Security of any series at any such office or agency, the Issuer shall execute
and register and the Trustee or any Authenticating Agent shall authenticate and
deliver in the name of the transferee or transferees a new Registered Security
or Securities of the same series for an equal aggregate principal amount.

                  Subject to the provisions of Section 2.4, at the option of the
Holder thereof, Securities of any series, whether Registered Securities or
Unregistered Securities, which by their terms are registrable as to principal
only or as to principal and interest, may, to the extent and under the
circumstances specified pursuant to Section 3.1, be exchanged for such
Registered Securities with Coupons or Fully Registered Securities of such
series, as may be issued by the terms thereof. Securities of any series, whether
Registered Securities or Unregistered Securities,

                                      -17-
<PAGE>   25
which by their terms provide for the issuance of Unregistered Securities, may
not, except to the extent and under the circumstances specified pursuant to
Section 3.1, be exchanged for Unregistered Securities of such series.
Unregistered Securities of any series issued in exchange for Registered
Securities of such series between the record date for such Registered Securities
and the next Interest Payment Date will be issued without the Coupon relating to
such Interest Payment Date, and Unregistered Securities surrendered in exchange
for Registered Securities between such dates shall be surrendered without the
Coupon relating to such Interest Payment Date.

                  Upon presentation for registration of any Unregistered
Security of any series which by its terms is registrable as to principal, at the
office or agency of the Issuer to be maintained as provided in Section 4.2, such
Security shall be registered as to principal in the name of the Holder thereof,
and such registration shall be noted on such Security. Any Security so
registered shall be transferable on the Securities Register of the Issuer upon
presentation of such Security at such office or agency for similar notation
thereon, but, to the extent permitted by law, such security, may be discharged
from registration by being in a like manner transferred to bearer whereupon
transferability by delivery shall be restored. To the extent permitted by law,
Unregistered Securities shall continue to be subject to successive registrations
and discharges from registration at the option of the Holders thereof.

                  Unregistered Securities and Coupons shall be transferred by
delivery. All Securities presented for registration of transfer or for exchange,
redemption or payment shall (if so required by the Issuer or the Securities
Registrar) be duly endorsed by, or be accompanied by, a written instrument or
instruments of transfer in form satisfactory to the Issuer and the Securities
Registrar duly executed by, the Holder thereof or his attorney duly authorized
in writing.

                  Each Security issued upon registration of transfer or exchange
of Securities pursuant to this Section 3.6 shall be the valid obligation of the
Issuer, evidencing the same indebtedness and entitled to the same benefits under
this Indenture as the Security or Securities surrendered upon registration of
such transfer or exchange.

                  No service charge shall be made to a Holder for any
registration of transfer or exchange of Securities, but the Issuer may require
payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection with any registration of transfer or exchange of
Securities, other than exchanges pursuant to Section 3.10, 10.6 or 14.3 not
involving any transfer.

                  The Issuer shall not be required (a) to issue, exchange or
register the transfer of any Securities of any series during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of
redemption of Securities of such series and ending at the close of business on
the day of such mailing, or (b) to exchange or register the transfer of any
Securities selected, called or being called for redemption except, in the case
of any Security to be redeemed in part, the portion thereof not to be so
redeemed. None of the Issuer, the Trustee, any Paying Agent or Securities
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

                                      -18-
<PAGE>   26
Security or for maintaining, supervising or reviewing any records relating to
such beneficial ownership interest.

                  SECTION 3.7. MUTILATED, DEFACED, DESTROYED, LOST AND STOLEN
SECURITIES OR COUPONS. In case any temporary or definitive Security shall become
mutilated, defaced or be destroyed, lost or stolen, and in the absence of notice
to the Issuer or the Trustee that such Security or Coupon has been acquired by a
bona fide purchaser, the Issuer in the case of a mutilated Security or Coupon
shall, and in the case of a lost, stolen or destroyed Security or Coupon may in
its discretion, execute, and, upon an Issuer Request, the Trustee shall
authenticate and deliver, a new Security with like Coupons, if any, as those
attached to the mutilated, destroyed, lost or stolen Security (so that neither
gain nor loss in interest shall result), of the same series, tenor and principal
amount, and bearing a number, letter or other distinguishing symbol not
contemporaneously outstanding, or a new Coupon, as appropriate, in exchange and
substitution for the mutilated Security or Coupon, or in lieu of and in
substitution for the Security or Coupon so destroyed, lost or stolen, or if any
such Security or Coupon shall have matured or shall be about to mature, instead
of issuing a substituted Security or Coupon, the Issuer may pay or authorize the
payment of the same without surrender thereof (except in the case of a mutilated
Security or Coupon); 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, unless otherwise provided
pursuant to Section 3.1. In every case the applicant for a substituted Security
or Coupon shall furnish to the Issuer and to the Trustee such security or
indemnity as may be required by them to save each of them harmless and, in every
case of destruction, loss or theft, the applicant shall also furnish to the
Issuer and to the Trustee evidence to their satisfaction of the destruction,
loss or theft of such Security or Coupon and of the ownership thereof.

                  Upon the issuance of any substitute Security or Coupon under
this Section 3.7, the Issuer 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
or any Authenticating Agent) connected therewith. In case any Security or Coupon
which has matured or is about to mature or has been called for redemption in
full shall become mutilated or defaced or be destroyed, lost or stolen, the
Issuer may, instead of issuing a substitute Security or Coupon, pay or authorize
the payment of the same (without surrender thereof except in the case of a
mutilated or defaced Security or Coupon), if the applicant for such payment
shall furnish to the Issuer and to the Trustee and any agent of the Issuer or
the Trustee such security or indemnity as any of them may require to save each
of them harmless, and, in every case of destruction, loss or theft, the
applicant shall also furnish to the Issuer and the Trustee and any agent of the
Issuer or the Trustee evidence to their satisfaction of the destruction, loss or
theft of such Security and of the ownership thereof.

                  Every substitute Security or Coupon of any series issued
pursuant to the provisions of this Section 3.7 by virtue of the fact that any
such Security is destroyed, lost or stolen shall constitute an additional
contractual obligation of the Issuer, whether or not the destroyed, lost or
stolen Security or Coupon shall be at any time enforceable by anyone and shall
be entitled to all the benefits of (but shall be subject to all the limitations
of rights set forth in) this Indenture equally and proportionately with any and
all other Securities and Coupons of such series duly authenticated and delivered
hereunder. All Securities and Coupons shall be held and

                                      -19-
<PAGE>   27
owned upon the express condition that, to the extent permitted by law, the
foregoing provisions of this Section 3.7 are exclusive with respect to the
replacement or payment of mutilated, defaced or destroyed, lost or stolen
Securities and Coupons and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

                  SECTION 3.8. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
The Holder of any Fully Registered Securities at the close of business on any
record date with respect to any Interest Payment Date shall be entitled to
receive the interest, if any, payable on such Interest Payment Date
notwithstanding the cancellation of such Securities upon any transfer or
exchange subsequent to the record date and prior to such Interest Payment Date
and, if provided for in the Board Resolution pursuant to Section 3.1, in the
case of a Security issued between a record date and the initial Interest Payment
Date relating to such record date, interest for the period beginning on the date
of issue and ending on such initial Interest Payment Date shall be paid to the
person to whom such Security shall have been originally issued. In the case of
Coupon Securities, the Holder of any Coupon shall be entitled to receive the
interest, if any, payable on such Interest Payment Date, upon surrender on such
Interest Payment Date of the Coupon appertaining thereto in respect of such
interest. Except as otherwise specified as contemplated by Section 3.1, for
Fully Registered Securities of a particular series the term "record date" as
used in this Section 3.8 with respect to any Interest Payment Date shall mean
the close of business on the last day of the calendar month preceding such
Interest Payment Date if such Interest Payment Date is the 15th day of a
calendar month and shall mean the close of business on the 15th day of the
calendar month preceding such Interest Payment Date if such Interest Payment
Date is the first day of a calendar month, whether or not such day shall be a
Business Day in The City of New York. At the option of the Issuer, payment of
interest on any Fully Registered Security may be made by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register.

                  If and to the extent the Issuer shall default in the payment
of the interest due on such Interest Payment Date in respect of any Fully
Registered Securities such defaulted interest shall be paid by the Issuer, at
its election in each case, as provided in clause (a) or (b) below:

                  (a) The Issuer may make payment of any defaulted interest to
the Holder of Fully Registered Securities at the close of business on a
subsequent record date established by notice given by mail, first-class postage
prepaid, by or on behalf of the Issuer to such Holder at his address as it
appears on the Security Register not less than 15 days preceding such subsequent
record date, such record date to be not less than 10 days preceding the date of
payment of such defaulted interest.

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

                                      -20-
<PAGE>   28
                  Any defaulted interest payable in respect of a Coupon Security
of any series shall be payable pursuant to such procedures as may be
satisfactory to the Trustee in such manner that there is no discrimination
between the Holders of Fully Registered Securities and Coupon Securities of such
series, and notice of the payment date therefor shall be given by the Trustee,
in the name and at the expense of the Issuer, in the manner provided in Section
13.4.

                  Subject to the foregoing provisions of this Section 3.8, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.

                  SECTION 3.9. CANCELLATION OF SECURITIES; DESTRUCTION THEREOF.
All Securities surrendered for payment, redemption, registration of transfer or
exchange, or for credit against any payment in respect of a sinking or analogous
fund, and all Coupons surrendered for payment or exchange, if surrendered to the
Issuer or any Paying Agent or any Securities Registrar, shall be delivered to
the Trustee for cancellation or, if surrendered to the Trustee, shall be
canceled by it, and no Securities or Coupons shall be issued in lieu thereof
except as expressly permitted by any of the provisions of this Indenture. The
Trustee shall destroy canceled Securities and Coupons held by it and deliver a
certificate of destruction to the Issuer. If the Issuer shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the indebtedness represented by such Securities unless and until the same are
delivered to the Trustee for cancellation.

                  SECTION 3.10. TEMPORARY SECURITIES. Pending the preparation of
definitive Securities for any series, the Issuer may execute and the Trustee
shall authenticate and deliver temporary Securities for such series (printed,
lithographed, typewritten or otherwise reproduced, in each case in form
satisfactory to the Trustee). Temporary Securities of any series shall be
issuable in any authorized denomination, and substantially in the form of the
definitive Securities of such series in lieu of which they are issued but with
such omissions, insertions and variations as may be appropriate for temporary
securities all as may be determined by the Issuer with the concurrence of the
Trustee. Temporary Securities may contain such reference to any provisions of
this Indenture as may be appropriate. Every temporary Security shall be executed
by the Issuer and be authenticated by the Trustee upon the same conditions and
in substantially the same manner, and with like effect, as the definitive
Securities. Temporary Securities may be issued as Registered Securities or
Unregistered Securities, with or without one or more Coupons attached. Without
unreasonable delay the Issuer shall execute and shall furnish definitive
Securities of such series and thereupon temporary Securities of such series may
be surrendered in exchange therefor without charge to a Holder at the Corporate
Trust Office of the Trustee or, in the case of temporary Securities issued in
respect of Unregistered Securities of any series, at the Corporate Trust Office
of the Trustee located in a city specified elsewhere in this Indenture or
pursuant to Section 3.1, and the Trustee shall authenticate and deliver in
exchange for such temporary Securities an equal aggregate principal amount of
definitive Securities of the same series with appropriate Coupons, if any,
attached. Such exchange shall be made by the Issuer at its own expense and
without any charge therefor to a Holder except that in case of any such exchange
involving any registration of transfer the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
relation thereto. Until so exchanged, the temporary Securities of any series
shall in all respects be entitled to the

                                      -21-
<PAGE>   29
same benefits under this Indenture as definitive Securities of such series
authenticated and delivered hereunder.

                  SECTION 3.11. COMPUTATION OF INTEREST. Except as otherwise
specified as contemplated by Section 3.1 for Securities of any series, interest
on the Securities of each series shall be computed on the basis of a 360-day
year of twelve 30-day months.

                  SECTION 3.12. CURRENCY AND MANNER OF PAYMENTS IN RESPECT OF
SECURITIES. (a) With respect to Registered Securities of any series denominated
in Dollars or Foreign Currency and with respect to Registered Securities of any
series denominated in any currency unit with respect to which the Holders of
Securities of such series have not made the election provided for in paragraph
(b) below, the following payment provisions shall apply:

                  (i) Except as provided in subparagraph (a)(ii) or in paragraph
         (e) below, payment of the principal of and premium, if any, on any
         Registered Security will be made at the Place of Payment by delivery of
         a check in the currency or currency unit in which the Security is
         payable on the payment date against surrender of such Registered
         Security, and any interest on any Fully Registered Security will be
         paid at the Place of Payment by mailing a check in the currency or
         currency unit in which such interest is payable to the Person entitled
         thereto at the address of such Person appearing on the Securities
         Register.

                  (ii) Payment of the principal of, premium, if any, and (with
         respect to Fully Registered Securities only) interest on such Security
         may also, subject to applicable laws and regulations, be made at such
         other place or places as may be designated by the Issuer by any
         appropriate method.

                  (b) With respect to Registered Securities of any series
denominated in any Foreign Currency or currency unit, the following payment
provisions shall apply, except as otherwise provided in paragraphs (e) and (f)
below:

                  (i) It may be provided pursuant to Section 3.1 with respect to
         the Securities of such series that Holders shall have the option to
         receive payments of principal of, premium, if any, and (with respect to
         Fully Registered Securities only) interest, if any, on such Securities
         in any of the currencies which may be designated for such election in
         such Securities by delivering to the Trustee a written election, to be
         in form and substance satisfactory to the Trustee, not later than the
         close of business on the record date immediately preceding the
         applicable payment date. Such election will remain in effect for such
         Holder until changed by the Holder by written notice to the Trustee
         (but any such change must be made not later than the close of business
         on the record date immediately preceding the next payment date to be
         effective for the payment to be made on such payment date and no such
         change may be made with respect to payments to be made on any Security
         of such series with respect to which notice of redemption has been
         given by the Issuer pursuant to Article Fourteen). Any Holder of any
         such Security who shall not have delivered any such election to the
         Trustee not later than the close of business on the applicable record
         date will be paid the amount due on the applicable payment date in the
         relevant currency unit as provided in paragraph (a) of this Section

                                      -22-
<PAGE>   30
         3.12. Payment of principal of and premium, if any, shall be made on the
         payment date against surrender of such Security. Payment of principal
         of, premium, if any, and (with respect to Fully Registered Securities
         only) interest, if any, shall be made at the Place of Payment by
         mailing at such location a check, in the applicable currency or
         currency unit, to the Person entitled thereto at the address of such
         Person appearing on the Securities Register.

                  (ii) Payment of the principal of, premium, if any, and (with
         respect to Fully Registered Securities only) interest, if any, on such
         Security may also, subject to applicable laws and regulations, be made
         at such other place or places as may be designated by the Issuer by any
         appropriate method.

                  (c) Payment of the principal of, and premium, if any, on any
Unregistered Security and of interest on any Coupon Security will be made unless
otherwise specified pursuant to Section 3.1 or Section 10.1(f) by a Paying Agent
at such place or places outside the United States as may be designated by the
Issuer pursuant to any applicable laws or regulations by any appropriate method
in the currency or currency unit in which the Security is payable (except as
provided in paragraph (e) below) on the payment date against surrender of the
Unregistered Security, in the case of payment of principal and premium, if any,
or the relevant Coupon, in the case of payment of interest, if any. Except as
provided in paragraph (e) below, payment with respect to Unregistered Securities
and Coupons will be made by check, subject to any limitations on the methods of
effecting such payment as shall be specified in the terms of the Security
established as provided in Section 3.1 and Section 10.1(f) and as shall be
required under applicable laws and regulations.

                  (d) Not later than the fourth Business Day after the record
date for each payment date, the Trustee will deliver to the Issuer a written
notice specifying, in the currency or currency unit in which each series of the
Securities is payable, the respective aggregate amounts of principal of,
premium, if any, and interest, if any, on the Securities to be made on such
payment date, specifying the amounts so payable in respect of Fully Registered
Securities, Registered Securities with Coupons and Unregistered Securities and
in respect of the Registered Securities as to which the Holders of Securities
denominated in any currency unit shall have elected to be paid in another
currency as provided in paragraph (b) above. If the election referred to in
paragraph (b) above has been provided for pursuant to Section 3.1 and if at
least one Holder has made such election, then, not later than the eighth
Business Day following each record date the Issuer will deliver to the Trustee
and each Paying Agent an Exchange Rate Officer's Certificate in respect of the
Dollar or Foreign Currency payments to be made on such payment date. The Dollar
or Foreign Currency amount receivable by Holders of Registered Securities
denominated in a currency unit who have elected payment in such currency as
provided in paragraph (b) above shall be determined by the Issuer on the basis
of the applicable Official Currency Unit Exchange Rate set forth in the
applicable Exchange Rate Officer's Certificate.

                  (e) If a Foreign Currency in which any of the Securities are
denominated or payable ceases to be used both by the government of the country
which issued such currency or adopted such currency as its legal currency and
for the settlement of transactions by public institutions of or within the
international banking community, or if any currency unit in which a Security is
denominated or payable ceases to be used for the purposes for which it was

                                      -23-
<PAGE>   31
established, then with respect to each date for the payment of principal of, or
premium, if any, and interest, if any, on the applicable Securities denominated
or payable in such Foreign Currency or such currency unit occurring after the
last date on which such Foreign Currency or such currency unit was so used (the
"Conversion Date"), the Dollar shall be the currency of payment for use on each
such payment date. The Dollar amount to be paid by the Issuer to the Paying
Agent and by the Paying Agent to the Holders of such Securities with respect to
such payment date shall be the Dollar Equivalent of the Foreign Currency or, in
the case of a currency unit, the Dollar Equivalent of the Currency Unit as
determined by the Dollar Determination Agent as of the record date, if any, with
respect to any Interest Payment Date or the fifteenth day before the Maturity of
an installment of principal (the "Valuation Date"), in the manner provided in
paragraph (g) or (h) below.

                  (f) If the Holder of a Registered Security denominated in a
currency unit elects payment in a specified Foreign Currency as provided for by
paragraph (b) and such Foreign Currency ceases to be used both by the government
of the country which issued such currency or adopted such currency as its legal
currency and for the settlement of transactions by public institutions of or
within the international banking community, such Holder shall receive payment in
such currency unit, and if such currency unit ceases to be used for the purposes
for which it was established, such Holder shall receive payment in Dollars.

                  (g) The "Dollar Equivalent of the Foreign Currency" shall be
determined by, and shall be set forth in a certificate delivered to the Issuer,
the Trustee and each Paying Agent of, the Dollar Determination Agent as of each
Valuation Date and shall be obtained by converting the specified Foreign
Currency into Dollars at the Market Exchange Rate on the Valuation Date.

                  (h) The "Dollar Equivalent of the Currency Unit" shall be
determined by, and shall be set forth in a certificate delivered to the Issuer,
the Trustee and each Paying Agent of, the Dollar Determination Agent as of each
Valuation Date and shall be the sum obtained by adding together the results
obtained by converting the Specified Amount of each Component Currency into
Dollars at the Market Exchange Rate on the Valuation Date for such Component
Currency.

                  (i) For purposes of this Section 3.12, the following terms
shall have the following meanings:

                  A "Component Currency" shall mean any currency which, on the
Conversion Date, was a component currency of the relevant currency unit.

                  A "Specified Amount" of a Component Currency shall mean the
number of units or fractions thereof which such Component Currency represented
in the relevant currency unit, on the Conversion Date. If after the Conversion
Date the official unit of any Component Currency is altered by way of
combination or subdivision, the Specified Amount of such Component Currency
shall be divided or multiplied in the same proportion. If after the Conversion
Date two or more Component Currencies are consolidated into a single currency,
the respective Specified Amounts of such Component Currencies shall be replaced
by an amount in such single currency equal to the sum of the respective
Specified Amounts of such consolidated Component Currencies expressed in such
single currency, and such amount shall thereafter be a

                                      -24-
<PAGE>   32
Specified Amount and such single currency shall thereafter be a Component
Currency. If after the Conversion Date any Component Currency shall be divided
into two or more currencies, the Specified Amount of such Component Currency
shall be replaced by specified amounts of such two or more currencies, the sum
of which, at the Market Exchange Rate of such two or more currencies on the date
of such replacement, shall be equal to the Specified Amount of such former
Component Currency divided by the number of currencies into which such Component
Currency was divided, and such amounts shall thereafter be Specified Amounts and
such currencies shall thereafter be Component Currencies.

                  "Market Exchange Rate" shall mean for any currency the noon
Dollar buying rate for that currency for cable transfers quoted in New York City
on the Valuation Date as certified for customs purposes by the Federal Reserve
Bank of New York. If such rates are not available for any reason with respect to
one or more currencies for which an Exchange Rate is required, the Dollar
Determination Agent shall use, in its sole discretion and without liability on
its part, such quotation of the Federal Reserve Bank of New York as of the most
recent available date, or quotations from one or more major banks in New York
City or in the country of issue of the currency in question, or such other
quotations as the Dollar Determination Agent shall deem appropriate. Unless
otherwise specified by the Dollar Determination Agent, if there is more than one
market for dealing in any currency by reason of foreign exchange regulations or
otherwise, the market to be used in respect of such currency shall be that upon
which a nonresident issuer of securities designated in such currency would
purchase such currency in order to make payments in respect of such securities.

                  All decisions and determinations of the Dollar Determination
Agent regarding the Dollar Equivalent of the Foreign Currency, the Dollar
Equivalent of the Currency Unit and the Market Exchange Rate shall be in its
sole discretion and shall, in the absence of manifest error, be conclusive for
all purposes and irrevocably binding upon the Issuer, the Trustee, any Paying
Agent and all Holders of the Securities and Coupons denominated or payable in
the relevant currency or currency units. In the event that a Foreign Currency
ceases to be used both by the government of the country which issued such
currency or adopted such currency as its legal currency and for the settlement
of transactions by public institutions of or within the international banking
community, the Issuer, after learning thereof, will immediately give notice
thereof to the Trustee (and the Trustee will promptly thereafter give notice in
the manner provided in Section 13.4 to the Holders) specifying the Conversion
Date. In the event a currency unit in which Securities or Coupons are
denominated or payable ceases to be used for the purposes for which it was
established, the Issuer, after learning thereof, will immediately give notice
thereof to the Trustee (and the Trustee will promptly thereafter give notice in
the manner provided in Section 13.4 to the Holders) specifying the Conversion
Date and the Specified Amount of each Component Currency on the Conversion Date.
In the event of any subsequent change in any Component Currency as set forth in
the definition of Specified Amount above, the Issuer, after learning thereof,
will similarly give notice to the Trustee. The Trustee shall be fully justified
and protected in relying and acting upon information received by it from the
Issuer and the Dollar Determination Agent, if any, and shall not otherwise have
any duty or obligation to determine such information independently.

                  SECTION 3.13. COMPLIANCE WITH CERTAIN LAWS AND REGULATIONS. If
any Unregistered Securities or Coupon Securities are to be issued in any series
of Securities, the

                                      -25-
<PAGE>   33
Issuer will use reasonable efforts to provide for arrangements and procedures
designed pursuant to then applicable laws and regulations, if any, to ensure
that such Unregistered Securities or Coupon Securities are sold or resold,
exchanged, transferred and paid only in compliance with such laws and
regulations and without adverse consequences to the Issuer.

                                   ARTICLE IV.

                             COVENANTS OF THE ISSUER

                  The Issuer covenants and agrees for the benefit of each series
of Securities that on and after the date of execution of this Indenture and,
except as otherwise provided, so long as any of the Securities of such series
remain outstanding, as to which the Issuer remains an obligor:

                  SECTION 4.1. PAYMENT OF SECURITIES. The Issuer will duly and
punctually pay or cause to be paid (in the Dollars or the Foreign Currency or
currency unit in which the Securities of such series and Coupons, if any,
appertaining thereto are payable, except as otherwise specified as contemplated
by Section 3.1 for the Securities of such series and except as provided in
Sections 3.12(b), 3.12(e) and 3.12(f) of this Indenture) the principal of, the
premium, if any, and interest, if any, on the Securities of such series at the
place or places, at the respective times and in the manner provided in such
Securities, in any Coupons appertaining thereto, and in this Indenture. Each
installment of interest on the Registered Securities of any series may be paid
by mailing checks for such interest payable to or upon the written order of the
Holders of Registered Securities entitled thereto as they shall appear on the
registry books of the Issuer.

                  The interest on Coupon Securities shall be payable only upon
presentation and surrender of the several Coupons for such interest installments
as are evidenced thereby as they severally mature. The interest, if any, on any
temporary Unregistered Security shall be paid, as to any installment of interest
evidenced by a Coupon attached thereto, if any, only upon presentation and
surrender of such Coupon, and, as to other installments of interest, if any,
only upon presentation of such Security for notation thereon of the payment of
such interest.

                  SECTION 4.2. OFFICES OR AGENCY. So long as any of the
Securities remain Outstanding, the Issuer will maintain in the Borough of
Manhattan, The City of New York, New York, an office or agency where Registered
Securities of such series may be presented or surrendered for payment, where
Securities of such series may be surrendered for registration of transfer or
exchange and where notices and demands to or upon the Issuer in respect of the
Securities of such series and this Indenture may be served, which office or
agency, unless otherwise set forth in, or pursuant to, a Board Resolution or
supplemental indenture relating to the Securities of such series, shall
initially be the principal corporate trust facility of the Trustee located in
the Borough of Manhattan, The City of New York, New York, and, if the Trustee
shall cease to maintain such corporate trust facility, such office or agency
shall be the principal corporate trust office of the Authenticating Agent
designated pursuant to Section 7.14 hereof. So long as any Coupon Securities or
Unregistered Securities of any series remain Outstanding, the Issuer will
(except as specified pursuant to Section 3.1 or Section 10.1(f)) maintain one or
more offices or agencies outside the United States in such city or cities as may
be specified elsewhere in this Indenture or as contemplated by Section 3.1, with
respect to such series, where Coupons

                                      -26-
<PAGE>   34
appertaining to Securities of such series or Unregistered Securities of such
series may be surrendered or presented for payment, or surrendered for exchange
pursuant to Section 3.6 and where notices and demands to or upon the Issuer in
respect of Coupons appertaining to Securities of such series or the Unregistered
Securities of such series or of this Indenture may be served. The Issuer 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 Issuer shall fail to
maintain such required office or agency or shall fail to furnish the Trustee
with the address thereof, presentations, surrenders, notices and demands in
respect of Registered Securities may be made or served at the Corporate Trust
Office of the Trustee and the corporate trust office of any Authenticating Agent
appointed hereunder, and presentations, surrenders, notices and demands in
respect of Coupons appertaining to Securities of any series and Unregistered
Securities may be made or served at the Corporate Trust Office of the Trustee in
the other city or cities referred to above; and the Issuer hereby appoints the
Trustee and any Authenticating Agent appointed hereunder its agents to receive
all such presentations, surrenders, notices and demands. The Issuer agrees to
appoint and continue to maintain the appointment of a Dollar Determination
Agent, if necessary, to perform the functions set forth herein for the Dollar
Determination Agent.

                  The Issuer may also from time to time designate one or more
other offices or agencies (in or outside The City of New York) where the
Securities of such series may be presented or surrendered for any or all of such
purposes, and may from time to time rescind such designation; provided, however,
that no such designation or rescission shall in any manner relieve the Issuer of
its obligation to maintain for such purposes an office or agency in the Borough
of Manhattan, The City of New York, and, except as otherwise specified pursuant
to Section 3.1 or Section 10.1(f), so long as any Unregistered Securities or
Coupon Securities remain Outstanding, one or more offices or agencies outside
the United States.

                  SECTION 4.3. APPOINTMENT TO FILL A VACANCY IN OFFICE OF
TRUSTEE. The Issuer, whenever necessary to avoid or fill a vacancy in the office
of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so
that there shall at all times be a Trustee with respect to each series of
Securities hereunder.

                  SECTION 4.4. PAYING AGENTS. Whenever the Issuer shall appoint
a Paying Agent other than the Trustee with respect to the Securities of any
series, it will cause such Paying Agent 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:

                  (a) that it will hold all sums received by it as such Paying
Agent for the payment of the principal of, and the premium, if any, and
interest, if any, on the Securities of such series (whether such sums have been
paid to it by the Issuer or by any other obligor on the Securities of such
series) in trust for the benefit of the Holders of the Securities of such
series, and the Coupons, if any, appertaining thereto or of the Trustee;

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

                                      -27-
<PAGE>   35
                  (c) that at any time during the continuance of any such
failure, upon the written request of the Trustee it will forthwith pay to the
Trustee all sums so held in trust by such Paying Agent.

                  If the Issuer shall act as its own Paying Agent with respect
to the Securities of any series, it will, on or before each due date of the
principal of, premium, if any, or interest, if any, on the Securities of such
series and the Coupons, if any, appertaining thereto, set aside, segregate and
hold in trust for the benefit of the Holders of the Securities of such series
and the Coupons, if any, appertaining thereto a sum (in the currency or currency
unit in which the Securities of such series are denominated, except as otherwise
specified as contemplated by Section 3.1 for the Securities of such series and
except as provided in Sections 3.12(b), 3.12(e) and 3.12(f) of this Indenture)
sufficient to pay such principal, premium, if any, or interest, if any, so
becoming due. The Issuer will promptly notify the Trustee of any failure to take
such action.

                  Whenever the Issuer shall have one or more Paying Agents with
respect to the Securities of any series, it will, prior to the due date of the
principal of, premium, if any, or interest, if any, on the Securities of such
series and the Coupons, if any, appertaining thereto, deposit with a designated
Paying Agent a sum (in the currency or currency unit described in the preceding
paragraph) sufficient to pay the principal, premium, if any, or interest, if
any, so becoming due, such sum to be held in trust for the benefit of the
Persons entitled to such principal, premium, if any, or interest, if any, and
(unless such Paying Agent is the Trustee) the Issuer will promptly notify the
Trustee at its Corporate Trust Office of its failure so to act.

                  Anything in this Section to the contrary notwithstanding, the
Issuer may at any time, for the purpose of obtaining a satisfaction and
discharge with respect to one or more or all series of Securities hereunder, or
for any other reason, pay or cause to be paid to the Trustee all sums held in
trust for any such series by the Issuer or any Paying Agent hereunder, as
required by this Section, such sums to be held by the Trustee upon the trusts
herein contained.

                  Anything in this Section to the contrary notwithstanding, the
agreement to hold sums in trust as provided in this Section is subject to the
provisions of Sections 12.4 and 12.5.

                  SECTION 4.5. CORPORATE EXISTENCE. The Issuer shall do or cause
to be done all things necessary to preserve and keep in full force and effect
its corporate existence, material rights (charter and statutory) and material
franchises (other than as contemplated by Section 11.1); provided, however, that
the Issuer shall not be required to preserve any such right or franchise if the
Board of Directors shall determine that the preservation of such rights or
franchises is no longer desirable in the conduct of the business of the Issuer.

                  SECTION 4.6. RESTRICTIONS ON LIENS. So long as any of the
Securities are outstanding, the Issuer shall not pledge, mortgage or
hypothecate, or permit to exist, and shall not cause, suffer or permit any
Restricted Subsidiary to pledge, mortgage or hypothecate, or permit to exist,
except in favor of the Issuer or any Subsidiary, any mortgage, pledge or other
lien upon, any Principal Property at any time owned by it, to secure any
indebtedness, without making effective provisions whereby the Securities shall
be equally and ratably secured with any and all such indebtedness and with any
other indebtedness thereby; provided, however, that this restriction shall not
apply to or prevent the creation or existence of:

                                      -28-
<PAGE>   36
                  (a) mortgages or other liens on any such property acquired,
constructed or improved by the Issuer or a Restricted Subsidiary to secure or
provide for the payment of any part of the purchase price of such property or
the cost of such construction or improvement or any mortgage or other lien on
any such property existing at the time of acquisition thereof;

                  (b) any mortgage or other lien on any property of another
company existing at the time it is acquired by merger, consolidation or
acquisition of substantially all of its stock or its assets;

                  (c) pledges or deposits to secure payment of workers'
compensation or insurance premiums, or relating to tenders, bids, contracts
(except contracts for the payment of money) or leases;

                  (d) pledges or liens in connection with tax assessments or
other governmental charges, or as security required by law or governmental
regulation as a condition to the transaction of any business or the exercise of
any privilege or right;

                  (e) pledges or liens to secure a stay of process in
proceedings to enforce a contested liability, or required in connection with the
institution of legal proceedings or in connection with any other order or decree
in any such proceeding or in connection with any contest of any tax or other
governmental charge, or deposits with a governmental agency entitling the Issuer
or a Restricted Subsidiary to maintain self-insurance or to participate in other
specified insurance arrangements;

                  (f) mechanics', carriers', workmen's and other like liens;

                  (g) encumbrances in favor of the U.S. Government to secure
progress or advance payments;

                  (h) mortgages, pledges or other liens securing any
indebtedness incurred to finance the cost of property leased to the U.S.
Government at a rental rate sufficient to pay the principal of and interest on
such indebtedness;

                  (i) mortgages or other liens securing indebtedness of a
Restricted Subsidiary to the Issuer or to a Restricted Subsidiary;

                  (j) mortgages, pledges or other liens affecting property
securing indebtedness of a governmental authority issued to finance the cost of
a pollution control program with respect to operations of the Issuer or a
Restricted Subsidiary;

                  (k) renewals, extensions and replacements of any permitted
mortgage, lien, deposit or encumbrance, provided the amount secured is not
increased;

                  (l) mortgages or other liens on any such property existing on
the date hereof; and

                  (m) the creation of any other mortgage, pledge or other lien,
if, after giving effect to the creation thereof, the total of (i) the aggregate
principal amount of indebtedness of

                                      -29-
<PAGE>   37
the Issuer and its Restricted Subsidiaries secured by all mortgages, pledges or
other liens created under the provisions referred to in this clause (m), plus
(ii) the aggregate amount of Capitalized Leaseback Obligations of the Issuer and
its Restricted Subsidiaries under the entire unexpired terms of all leases
entered into in connection with sale and leaseback transactions which would have
been precluded by the provision for limitations on such transactions described
above, but for the satisfaction of the condition referred to in clause (ii) of
the description of such provision, will not exceed an amount equal to 15% of
Consolidated Net Tangible Assets.

                  The lease of any property and rental obligations thereunder
(whether or not involving a Sale and Leaseback Transaction and whether or not
capitalized) shall not be deemed to create a lien. The sale or other transfer of
(a) timber or other natural resources in place for a period of time until, or in
an amount such that, the purchaser will realize therefrom a specified amount of
money (however determined) or a specified amount of such resources, or (b) any
other interest in property of the character commonly referred to as a
"production payment", shall not be deemed to create a lien.

                  SECTION 4.7. SALE AND LEASEBACK TRANSACTIONS. The Issuer shall
not, and shall not permit any Restricted Subsidiary to, after the date hereof,
enter into any arrangement with any Person providing for the leasing by the
Issuer or any Restricted Subsidiary of any Principal Property now owned or
hereafter acquired which has been or is to be sold or transferred by the Issuer
or such Restricted Subsidiary to such Person with the intention of taking back a
lease of such Principal Property (a "Sale and Leaseback Transaction"), unless
(i) the Issuer or such Restricted Subsidiary applies or causes to be applied an
amount equal to the greater of the fair value (as determined by the Board of
Directors) of such Principal Property and the net proceeds of such sale or
transfer, within 120 days of receipt thereof, to the retirement or prepayment of
the Securities or of Funded Debt of the Issuer or any Restricted Subsidiary
ranking equal in right of payment with the Securities or to the acquisition,
construction, development or improvement of properties, facilities or equipment
used for operating purposes which are, or upon such acquisition, construction,
development or improvement will be, a Principal Property or a part thereof, or
(ii) at the time of entering into such transaction, such Principal Property
could have been subjected to a mortgage-securing indebtedness in a principal
amount equal to the Capitalized Leaseback Obligation with respect to such
Principal Property under Section 4.6(m) without securing the Securities pursuant
to Section 4.6. The foregoing restriction shall not apply to any Sale and
Leaseback Transaction (i) between the Issuer and any Restricted Subsidiary or
among Restricted Subsidiaries, (ii) which has a lease of less than three years
in length, or (iii) entered into within 120 days after the later of the
acquisition of such Principal Property or the completion of construction and
commencement of full operation of such Principal Property.

                  SECTION 4.8. COMPLIANCE CERTIFICATE. The Issuer shall deliver
to the Trustee within 120 days after the end of each fiscal year of the Issuer
an Officers' Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Issuer they would normally have
knowledge of any Event of Default and whether or not the signers know of any
Event of Default that occurred during such period. If they do, the certificate
shall describe the Event of Default, its status and what action the Issuer is
taking or proposes to take with respect thereto. The Issuer also shall comply
with Trust Indenture Act Section 314(a)(4).

                                      -30-
<PAGE>   38
                  SECTION 4.9. FURTHER INSTRUMENTS AND ACTS. The Issuer shall
execute and deliver to the Trustee such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

                  SECTION 4.10. [SECURITIES TO BE EQUALLY AND RATABLY SECURED
UNDER PLEDGE AGREEMENT.

                  (a) Until a Pledge Termination Event occurs, the Securities
shall be entitled to the benefits of the Pledge Agreement as described and
confirmed in the Notice of Pledge Agreement Entitlement, a form of which appears
as Exhibit __ to this Indenture.

                  (b) At or prior to the original issuance of any Securities,
unless a Pledge Termination Event has occurred, the Issuer will have delivered
an executed Notice of Pledge Agreement Entitlement to the collateral agent under
the Pledge Agreement and will have obtained a confirmation of receipt and
approval, a form of which appears as Exhibit __ to this Indenture.

                  (c) Until a Pledge Termination Event occurs, the Issuer will
do all things necessary to extend the benefits of the Pledge Agreement to the
Securities as provided in the Notice of Pledge Agreement Entitlement, including
without limitation, executing, filing, registering or recording any instruments,
documents, confirmations or notices and complying with the reasonable requests
of the collateral agent.

                  (d) The Issuer shall comply with the requirements of Section
314(d) of the Trust Indenture Act to the extent applicable to the Securities and
the Pledge Agreement.

                  (e) Each Holder, by acceptance of a Security, and the Trustee
acknowledge and agree that the benefits of the Pledge Agreement shall terminate
upon a Pledge Termination Event, and that prior to a Pledge Termination Event,
the collateral agent under the Pledge Agreement may release any part of the
collateral under the Pledge Agreement without the consent of any Holder or the
Trustee.

                  (f) In the event that a Pledge Termination Event occurs as a
result of a simultaneous refinancing of the Senior Credit Agreement and such
refinanced Indebtedness is secured by a lien on any of the assets or properties
of the Issuer or any Guarantor, the Securities shall be secured equally and
ratably so long as, and only for so long as, such other indebtedness is so
secured.]*

                  SECTION 4.11. DESIGNATION OF SUBSIDIARIES. The Issuer may at
any time designate a Restricted Subsidiary as an Unrestricted Subsidiary and may
at any time rescind the designation of an Unrestricted Subsidiary, except that:

                  (a) the Issuer shall not designate a Subsidiary as an
Unrestricted Subsidiary if, upon the effectiveness of such designation, such
Subsidiary would own any Capital Stock of, or hold any Indebtedness of, any
Restricted Subsidiary and

----------

* This language to be included if debt securities are guaranteed.

                                      -31-
<PAGE>   39
                  (b) the Issuer shall not redesignate an Unrestricted
Subsidiary as a Restricted Subsidiary unless (i) such Unrestricted Subsidiary
has no outstanding liens on its properties that would be prohibited by Section
4.6 if created immediately after such Unrestricted Subsidiary was designated as
a Restricted Subsidiary and (ii) such Unrestricted Subsidiary is not a party to
any lease that would be prohibited by Section 4.7 if at the time such
Unrestricted Subsidiary entered into such lease it was designated as a
Restricted Subsidiary.

                                   ARTICLE V.

        SECURITYHOLDERS LISTS AND REPORTS BY THE ISSUER AND THE TRUSTEE

                  SECTION 5.1. ISSUER TO FURNISH TRUSTEE INFORMATION AS TO NAMES
AND ADDRESSES OF SECURITYHOLDERS. The Issuer covenants and agrees that it will
furnish or cause to be furnished to the Trustee for the Securities of each
series a list in such form as the Trustee may reasonably require of the names
and addresses of the Holders of the Registered Securities of each series:

                  (a) semiannually and not more than 15 days after each record
date for the payment of interest, if any, on such Securities of such series, as
of such record date, and on dates to be determined pursuant to Section 3.1 for
non-interest bearing Securities of such series in each year, and

                  (b) at such other times as the Trustee may request in writing,
within 30 days after receipt by the Issuer of any such request, a list, in such
form as the Trustee may reasonably require, of the names and addresses of the
Holders of the Registered Securities of such series, as of the respective record
dates therefor (and on dates to be determined pursuant to Section 3.1 if the
Securities of such series do not bear interest) as of a date not more than 15
days prior to the time such information is furnished and need not include
information received after such date; provided that if and so long as the
Trustee shall be the Securities Registrar for such series, such list shall not
be required to be furnished.

                  The Issuer shall also be required to furnish such information
which is known to it concerning the Holders of Coupons and Unregistered
Securities; provided, however, that the Issuer shall have no obligation to
investigate any matter relating to any Holder of an Unregistered Security or any
Holder of a Coupon.

                  SECTION 5.2. PRESERVATION AND DISCLOSURE OF SECURITYHOLDERS
LISTS. (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, all information as to the names and addresses of the Holders of
each series of Securities (1) contained in the most recent list furnished to it
as provided in Section 5.1, (2) maintained by the Trustee in its capacity as
Paying Agent for such series (if so acting) and of the Security Registrar for
such series, and (3) filed with it within two preceding years pursuant to the
provisions of paragraph (ii) of subsection (c) of Section 5.4.

                  The Trustee for any series of the Securities may (1) destroy
any list furnished to it as provided in Section 5.1 upon receipt of a new list
so furnished, (2) destroy any information received by it as Paying Agent for
such series (if so acting) hereunder upon delivery to itself as

                                      -32-
<PAGE>   40
Trustee of a list containing the names and addresses of the Holders of
Securities of such series obtained from such information since the delivery of
the next previous list, if any, (3) destroy any list delivered to itself as
Trustee which was compiled from information received by it as Paying Agent (if
so acting) upon the receipt of a new list so delivered, and (4) destroy any
information filed with it by Holders of Securities of such series for the
purpose of receiving reports pursuant to the provisions of paragraph (ii) of
subsection (c) of Section 5.4, but not until two years after such information
has been filed with it.

                  (b) In case three or more Holders of Securities (hereinafter
referred to as "applicants") apply in writing to the Trustee and furnish to the
Trustee reasonable proof that each such applicant has owned a Security of such
series for a period of at least six months preceding the date of such
application, and such application states that the applicants desire to
communicate with other Holders of Securities of a particular series (in which
case at least three of the applicants must all hold Securities of such series)
or with Holders of all Securities with respect to their rights under this
Indenture or under such Securities and such application is accompanied by a copy
of the form of proxy or other communication which such applicants propose to
transmit, then the Trustee shall, within five Business Days after the receipt of
such application, as its election, either:

                  (i) afford to such applicants access to the information
         preserved at the time by the Trustee in accordance with the provisions
         of subsection (a) of this Section 5.2; or

                  (ii) inform such applicants as to the approximate number of
         Holders of Securities of such series or all Securities, as the case may
         be, whose names and addresses appear in the information preserved at
         the time by the Trustee, in accordance with the provisions of
         subsection (a) of this Section 5.2, and as to the approximate cost of
         mailing to such Securityholders the form of proxy or other
         communication, if any, specified in such application.

                  If the Trustee shall elect not to afford to such applicants
access to such information, the Trustee shall, upon the written request of such
applicants, mail to each Holder of Securities of such series or all Holders of
Securities of all series for which it is Trustee, as the case may be, whose name
and address appear in the information preserved at the time by the Trustee in
accordance with the provisions of subsection (a) of this Section 5.2 a copy of
the form of proxy or other communication which is specified in such request,
with reasonable promptness after a tender to the Trustee of the material to be
mailed and of payment, or provision for the payment, of the reasonable expenses
of mailing, unless within five days after such tender, the Trustee shall mail to
such applicants and file with the Commission together with a copy of the
material to be mailed, a written statement to the effect that, in the opinion of
the Trustee, such mailing would be contrary to the best interests of the Holders
of Securities of such series or all Holders of Securities of all series for
which it is Trustee, as the case may be, or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If the
Commission, after opportunity for a hearing upon the objections specified in the
written statement so filed, shall enter an order refusing to sustain any of such
objections or if, after the entry of an order sustaining one or more of such
objections, the Commission shall find, after notice and opportunity for hearing,
that all the objections so sustained have been met, and shall enter an order so
declaring, the Trustee shall mail copies of such material to all such

                                      -33-
<PAGE>   41
Securityholders with reasonable promptness after the entry of such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

                  (c) Each and every Holder of Securities, by receiving and
holding the same, agrees with the Issuer [, each of the Guarantors]* and the
Trustee that neither the Issuer [nor any of the Guarantors]* nor the Trustee nor
any Paying Agent shall be held accountable by reason of the disclosure of any
such information as to the names and addresses of the Holders of Securities in
accordance with the provisions of subsection (b) of this Section 5.2, regardless
of the source from which such information was derived, and that the Trustee
shall not be held accountable by reason of mailing any material pursuant to a
request made under such subsection (b).

                  SECTION 5.3. REPORTS BY THE ISSUER. The Issuer covenants:

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

                  (b) to file with the Trustee for each series of Securities and
the Commission, in accordance with rules and regulations prescribed from time to
time by the Commission, such additional information, documents, and reports with
respect to compliance by the Issuer with the conditions and covenants provided
for in this Indenture as may be required from time to time by such rules and
regulations; and

                  (c) to transmit by mail to the Holders of Securities in the
manner and to the extent provided in Section 5.4(c) and (d), within 30 days
after the filing thereof with the Trustee for each series of Securities, such
summaries of any information, documents and reports required to be filed by the
Issuer pursuant to subsections (a) and (b) of this Section as may be required to
be transmitted to such Holders by rules and regulations prescribed from time to
time by the Commission.

                  SECTION 5.4. REPORTS BY THE TRUSTEE. (a) On or before July 15
in each year following the date hereof, so long as any Securities are
outstanding hereunder, the Trustee for each series of Securities shall transmit
by mail as provided below to the Securityholders of such series, as hereinafter
in this Section provided, a brief report dated as of the preceding May 15 with
respect to any of the following events which may have occurred during the twelve
months

----------

* This language to be included if debt securities are guaranteed.

                                      -34-
<PAGE>   42
preceding the date of such report (but if no such event has occurred within such
period, no report need be transmitted):

                  (i) any change to its eligibility under Section 7.9 and its
         qualifications under Section 7.8;

                  (ii) the creation of or any material change to a relationship
         specified in Section 310(b)(1) through Section 310(b)(10) of the Trust
         Indenture Act;

                  (iii) the character and amount of any advances (and if the
         Trustee elects so to state, the circumstances surrounding the making
         thereof) made by the Trustee (as such) which remain unpaid on the date
         of such report and for the reimbursement of which it claims or may
         claim a lien or charge, prior to that of the Securities of any series,
         on any property or funds held or collected by it as Trustee, except
         that the Trustee shall not be required (but may elect) to report such
         advances if such advances so remaining unpaid aggregate not more than
         1/2 of 1% of the principal amount of the Securities of any series
         Outstanding on the date of such report;

                  (iv) any change to the amount, interest rate, and maturity
         date of all other indebtedness owing by the Issuer (or by any other
         obligor on the Securities of any series) to the Trustee in its
         individual capacity on the date of such report, with a brief
         description of any property held as collateral security therefor,
         except any indebtedness based upon a creditor relationship arising in
         any manner described in Section 7.13(b)(2), (3), (4) or (6);

                  (v) any change to the property and funds, if any, physically
         in the possession of the Trustee (as such) on the date of such report;

                  (vi) any additional issue of Securities of any series for
         which it is Trustee which the Trustee has not previously reported; and

                  (vii) any action taken by the Trustee in the performance of
         its duties under this Indenture which it has not previously reported
         and which in its opinion materially affects the Securities of any
         series, except action in respect of a default, notice of which has been
         or is to be withheld by it in accordance with the provisions of Section
         6.11.

                  (b) The Trustee for each series of Securities shall transmit
to the Securityholders of such series, as provided in subsection (c) of this
Section, a brief report with respect to the character and amount of any advances
(and if the Trustee elects so to state, the circumstances surrounding the making
thereof) made by the Trustee, as such, since the date of the last report
transmitted pursuant to the provisions of subsection (a) of this Section (or if
no such report has yet been so transmitted, since the date of this Indenture)
for the reimbursement of which it claims or may claim a lien or charge prior to
that of the Securities of any series on property or funds held or collected by
it as Trustee and which it has not previously reported pursuant to this
subsection (b), except that the Trustee shall not be required (but may elect) to
report such advances if such advances remaining unpaid at any time aggregate 10%
or less of the principal amount of Securities of such series Outstanding at such
time, such report to be transmitted within 90 days after such time.

                                      -35-
<PAGE>   43
                  (c) Reports pursuant to this Section shall be transmitted by
mail:

                  (i) to all registered Holders of Registered Securities, as the
         names and addresses of such Holders appear in the applicable Securities
         Register;

                  (ii) to such Holders of Securities of any series as have,
         within two years preceding such transmission, filed their names and
         addresses with the Trustee for such series for that purpose; and

                  (iii) except in the cases of reports pursuant to subsection
         (b) of this Section 5.4, to each Holder of a Security of any series
         whose name and address is preserved at the time by the Trustee for such
         series, as provided in subsection (a) of Section 5.2.

                  (d) A copy of each such report shall, at the time of such
transmission to Securityholders of any series, be furnished to the Issuer and be
filed by the Trustee for such series with each stock exchange upon which the
Securities of any series are listed and also with the Commission. The Issuer
agrees to notify the Trustee for each series when and as the Securities of such
series become admitted to trading on any national securities exchange.

                                  ARTICLE VI.

                              DEFAULTS AND REMEDIES

                  SECTION 6.1. EVENT OF DEFAULT DEFINED; ACCELERATION OF
MATURITY; WAIVER OF DEFAULT. "Event of Default", with respect to the Securities
of any series, wherever used herein, means each one of the following events
which shall have occurred and be continuing (whatever the reason for such Event
of Default and whether it shall be voluntary or involuntary or be effected by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body),
unless such event is either inapplicable to a particular series or is
specifically deleted or modified in the applicable Board Resolution or in the
supplemental indenture under which such series of Securities is issued, as the
case may be, as contemplated by Section 3.1:

                  (a) the Issuer defaults in any payment of the principal of or
premium, if any, on such series when it becomes due and payable;

                  (b) the Issuer defaults in the payment of any installment of
interest upon any of the Securities of such series as and when the same becomes
due and payable, and such default continues for a period of 30 days;

                  (c) the Issuer defaults in the deposit of any sinking fund
payment when and as due and payable by the terms of the Securities of such
series;

                  (d) the Issuer fails to comply with any of its covenants or
agreements contained in such series of Securities or this Indenture (other than
those referred to in (a) or (b) above) and such failure continues for 60 days
after the notice specified below;

                                      -36-
<PAGE>   44
                  (e) a default occurs under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness for money borrowed by the Issuer, whether such
Indebtedness or guarantee now exists, or is created after the date of this
Indenture, which default results in the acceleration of such Indebtedness prior
to its express maturity and, in each case, the principal amount of such
Indebtedness, together with the principal amount of any other such Indebtedness
the maturity of which has been so accelerated, aggregates $100 million or more
and such acceleration continues for 30 days after the notice specified below;

                  (f) the Issuer [or, so long as there are any Guarantors, any
Guarantor that constitutes a Significant Subsidiary of the Issuer]* pursuant to
or within the meaning of any Bankruptcy Law:

                  (i) commences a voluntary case;

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

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

                  (iv) makes a general assignment for the benefit of its
         creditors or takes any comparable action under any foreign laws
         relating to insolvency; or

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

                  (i) is for relief against the Issuer [or, so long as there are
         any Guarantors, any Guarantor that constitutes a Significant Subsidiary
         of the Issuer]* or in an involuntary case;

                  (ii) appoints a Custodian of the Issuer [or, so long as there
         are any Guarantors, any Guarantor that constitutes a Significant
         Subsidiary of the Issuer]* or for any substantial part of its property;

                  (iii) orders the winding up or liquidation of the Issuer [or,
         so long as there are any Guarantors, any Guarantor that constitutes a
         Significant Subsidiary of the Issuer]*or any similar relief is granted
         under any foreign laws and the order or decree remains unstayed and in
         effect for 60 days; or

                  (h) any other Event of Default established by or pursuant to a
Board Resolution or one or more indentures supplemental hereto as applicable to
the Securities of such series.

---------
* This language to be included if debt securities are guaranteed.

                                      -37-
<PAGE>   45
                  The foregoing shall constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body, unless such event is either inapplicable to a particular
series or is specifically deleted or modified in the applicable Board Resolution
or in the supplemental indenture under which such series of Securities is
issued, as the case may be, as contemplated by Section 3.1.

                  An Event of Default with respect to any particular series of
Securities issued under this Indenture does not necessarily constitute an Event
of Default with respect to any other series of Securities issued under this
Indenture.

                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  An Event of Default described under clause (d) or (e) above is
not an Event of Default until the Trustee or the Holders of at least 25% in
aggregate principal amount of the outstanding Securities notify the Issuer of
the Event of Default and the Issuer does not cure such Event of Default within
the time specified in clause (d) or (e), as the case may be, after receipt of
such notice. Such notice must specify the Event of Default, demand that it be
remedied and state that such notice is a "Notice of Default."

                  If an Event of Default described in clause (a), (b), (c), (d)
or (h) above (if the Event of Default under clause (d) or (h) is with respect to
less than all series of Securities then Outstanding) occurs and is continuing,
then and in each and every such case, unless the principal of all of the
Securities of such series shall have already become due and payable, either the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
Securities of such series then Outstanding hereunder (each such series voting as
a separate class), by notice in writing to the Issuer (and to the Trustee if
given by Securityholders), may declare the entire principal (or, if the
Securities of such series are Original Issue Discount Securities, such portion
of the principal as may be specified in the terms of such series) of all
Securities of such series and the interest accrued thereon, if any, to be due
and payable immediately, and upon any such declaration the same shall become
immediately due and payable. If an Event of Default described in clause (d),
(e), (f), (g) or (h) above (if the Event of Default under clause (d) or (h) is
with respect to all series of Securities then Outstanding) occurs and is
continuing, then and in each and every such case, unless the principal of all
the Securities shall have already become due and payable, either the Trustee or
the Holders of not less than 25% in aggregate principal amount of all the
Securities then Outstanding hereunder (treated as one class), by notice in
writing to the Issuer (and to the Trustee if given by Securityholders), may
declare the entire principal (or, if any Securities are Original Issue Discount
Securities, such portion of the principal as may be specified in the terms
thereof) of all the Securities then Outstanding and the interest accrued
thereon, if any, to be due and payable immediately, and upon any such
declaration the same shall become immediately due and payable.

                  The foregoing provisions, however, are subject to the
condition that, if, at any time after the principal (or, if the Securities are
Original Issue Discount Securities, such portion

                                      -38-
<PAGE>   46
of the principal as may be specified in the terms thereof) of the Securities of
any series (or of all the Securities, as the case may be) shall have been so
declared due and payable, and before any judgment or decree for the payment of
the moneys due shall have been obtained or entered as hereinafter provided, the
Issuer shall pay or shall deposit with the Trustee a sum sufficient to pay in
the currency or currency unit in which the Securities of such series are payable
(except as otherwise specified as contemplated by Section 3.1 for the Securities
of such series and except as provided in Sections 3.12(b), 3.12(e) and 3.12(f)
of this Indenture), all matured installments of interest, if any, upon all the
Securities of such series (or upon all the Securities, as the case may be) and
(in the currency or currency unit described above) the principal of (and
premium, if any, on) any and all Securities of such series (or of all the
Securities, as the case may be) which shall have become due otherwise than by
acceleration (with interest upon such principal and premium, if any, and, to the
extent that payment of such interest is enforceable under applicable law, on
overdue installments of interest, at the Overdue Rate applicable to such series
to the date of such payment or deposit) and in Dollars all amounts payable to
the Trustee pursuant to the provisions of Section 7.6 and such amount as shall
be sufficient to cover reasonable compensation to the Trustee, its agents,
attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Trustee except as a result of negligence or bad faith, and
if any and all Events of Default under this Indenture, other than the nonpayment
of the principal of and accrued interest on Securities of such series which
shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein--then and in every such case the Holders
of a majority in aggregate principal amount of the Securities of such series
(each Series voting as a separate class) or of all the Securities (voting as a
single class), as the case may be, then Outstanding, by written notice to the
Issuer and to the Trustee, may waive all defaults with respect to that series
(or with respect to all the Securities, as the case may be) and rescind and
annul such declaration and its consequences, but no such waiver or rescission
and annulment shall extend to or shall affect any subsequent default or shall
impair any right consequent thereon.

                  In case the Trustee shall have proceeded to enforce any right
under this Indenture and such proceedings shall have been discontinued or
abandoned because of such rescission or annulment or for any other reason or
shall have been determined adversely to the Trustee, then and in every such case
the Issuer and the Trustee shall be restored respectively to their several
positions and rights hereunder, and all rights, remedies and powers of the
Issuer and the Trustee shall continue as though no such proceedings had been
taken.

                  For all purposes under this Indenture, if a portion of the
principal of any Original Issue Discount Securities shall have been accelerated
and declared due and payable pursuant to the provisions hereof, then, from and
after such declaration, unless such declaration has been rescinded and annulled,
the principal amount of such Original Issue Discount Securities shall be deemed,
for all purposes hereunder, to be such portion of the principal thereof as shall
be due and payable as a result of such acceleration, and payment of such portion
of the principal thereof as shall be due and payable as a result of such
acceleration, together with interest, if any, thereon and all other amounts
owing thereunder, shall constitute payment in full of such Original Issue
Discount Securities.

                  SECTION 6.2. COLLECTION OF INDEBTEDNESS BY TRUSTEE; TRUSTEE
MAY PROVE DEBT. The Issuer covenants that (a) in case default shall be made in
the payment of any installment of

                                      -39-
<PAGE>   47
interest on any of the Securities of any series when such interest shall have
become due and payable, and such default shall have continued for a period of 30
days or (b) in case default shall be made in the payment of all or any part of
the principal of or any premium, if any, on any Securities of any series when
the same shall have become due and payable, whether upon Maturity of the
Securities of such series or upon any redemption or by declaration or otherwise
or (c) in case of default in the making or satisfaction of any sinking fund
payment or analogous obligation when the same becomes due by the terms of the
Securities of any series--then upon demand of the Trustee for such series, the
Issuer will pay to the Trustee for the benefit of the Holder of any such
Security (or Holders of any such series of Securities in the case of clause (c)
above) and the Holders of any Coupons appertaining thereto the whole amount that
then shall have become due and payable on any such Security (or Securities of
any such series in the case of clause (c) above) and matured Coupons, if any,
appertaining thereto for the principal, premium, if any, and interest, if any,
with interest upon the overdue principal and premium, if any, and, so far as
payment of the same is enforceable under applicable law, on overdue installments
of interest, at the Overdue Rate applicable to any such Security (or Securities
of any such series in the case of clause (c)); and, in addition thereto, such
further amount as shall be sufficient to cover the costs and expenses of
collection and any further amounts payable to the Trustee pursuant to the
provisions of Section 7.6.

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

                  The Trustee for any series of the Securities shall be entitled
and empowered, either in its own name as trustee of an express trust, or as
attorney-in-fact for the Holders of any of the Securities of such series and for
the Holders of any Coupons appertaining thereto or in both such capacities, to
file such proof of debt, amendment of proof of debt, claim, petition or other
document as may be necessary or advisable in order to have the claims of the
Trustee and of the Holders of Securities of such series and the Holders of any
Coupons appertaining thereto allowed in any equity receivership, insolvency,
bankruptcy, liquidation, readjustment, reorganization or other similar
proceedings, or any judicial proceedings, relative to the Issuer or any other
obligor on the Securities of such series and any Coupons appertaining thereto or
its creditors or its property. The Trustee for each series of the Securities is
hereby irrevocably appointed (and the successive respective Holders of the
Securities of such series and the Holders of any Coupons appertaining thereto,
by taking and holding the same, shall be conclusively deemed to have so
appointed the Trustee) the true and lawful attorney-in-fact of the respective
Holders of the Securities of such series and the Holders of any Coupons
appertaining thereto, with authority to make or file in the respective names of
the Holders of the Securities of such series and the Holders of any Coupons
appertaining thereto or on behalf of all the Holders of Securities of all series
and the Holders of any Coupons appertaining thereto for which it is Trustee any
proof of debt, amendment of proof of debt, claim, petition or other document in
any

                                      -40-
<PAGE>   48
such proceedings and to receive payment of any sums becoming distributable on
account thereof, and to execute any other papers and documents and do and
perform any and all acts and things for and on behalf of such Holders of the
Securities of such series and the Holders of any Coupons appertaining thereto,
as may be necessary or advisable in the opinion of the Trustee in order to have
the respective claims of the Holders of the Securities of such series and the
Holders of any Coupons appertaining thereto against the Issuer or any other
obligor on the Securities of such series and any Coupons appertaining thereto
and/or its property allowed in any such proceedings, and to receive payment of
or on account of such claims in moneys or such other properties payable therefor
and to distribute the same; provided, however, that nothing herein contained
shall be deemed to authorize or empower the Trustee to consent to or accept or
adopt, on behalf of any Holder of Securities of any series or any Holder of any
Coupons appertaining thereto, any plan of reorganization, arrangement or
readjustment of the Issuer or any other obligor on the Securities of any series
and any Coupons appertaining thereto or, by other action of any character in any
such proceeding, to waive or change in any way any right of any Holder of any
Security of any series or any Holder of any Coupon appertaining thereto even
though it may otherwise be entitled so to do under any present or future law,
all such power or authorization being thereby expressly denied.

                  All rights of action and of asserting claims under this
Indenture, or under any of the Securities of any series or Coupons appertaining
thereto, may be enforced by the Trustee for such series without the possession
of any of the Securities of any series or Coupons appertaining thereto, or the
production thereof on any trial or other proceedings relative thereto, and any
such action or proceedings instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment, subject to
the payment of the expenses, disbursements and compensation of the Trustee for
such series, each predecessor Trustee and their respective agents and attorneys,
shall be for the ratable benefit of the holders of the Securities or Coupons in
respect of which such action was taken.

                  In any proceedings brought by the Trustee (and also any
proceedings involving the interpretation of any provision of this Indenture to
which the Trustee shall be party) the Trustee shall be held to represent all the
Holders of the Securities in respect of which such action was taken, and it
shall not be necessary to make any Holders of such Securities parties to any
such proceedings.

                  SECTION 6.3. APPLICATION OF PROCEEDS. Any moneys collected by
the Trustee pursuant to this Article in respect of any series of the Securities,
together with any other sums held by the Trustee (as such) hereunder (other than
sums held in trust for the benefit of the Holders of particular Securities or
Coupons), shall be applied in the following order at the date or dates fixed by
the Trustee and, in case of the distribution of such moneys on account of
principal or interest, upon presentation (except in respect of Subdivision First
below) of the several Securities and any Coupons appertaining thereto in respect
of which moneys have been collected and stamping (or otherwise noting) thereon
the payment, or issuing Securities of such series in reduced principal amounts
in exchange for the presented Securities of like series if only partially paid,
or upon surrender thereof if fully paid:

                  FIRST: To the payment of costs and expenses applicable to such
series in respect of which moneys have been collected, including reasonable
compensation to the Trustee and

                                      -41-
<PAGE>   49
each predecessor Trustee and their respective agents and attorneys, and of all
expenses and liabilities incurred, and all advances made, by the Trustee and
each predecessor Trustee, except as a result of negligence or bad faith, and all
other amounts due to the Trustee or any predecessor Trustee pursuant to Section
7.6;

                  SECOND: In case the principal of the Securities of such series
in respect of which moneys have been collected shall not have become and be then
due and payable, to the payment of interest on the Securities of such series in
default in the order of the maturity of the installments of such interest, with
interest (to the extent that such interest has been collected by the Trustee),
so far as it may be enforceable under applicable law, upon the overdue
installments of interest at the Overdue Rate applicable to such series, such
payments to be made ratably to the persons entitled thereto, without
discrimination or preference;

                  THIRD: In case the principal of the Securities of such series
in respect of which moneys have been collected shall become and shall be then
due and payable, to the payment of the whole amount then owing and unpaid upon
all the Securities of such series for principal, premium, if any, and interest,
if any, with interest upon the overdue principal, and (to the extent that such
interest has been collected by the Trustee), so far as payment of the same is
enforceable under applicable law, upon overdue installments of interest, if any,
at the Overdue Rate applicable to such series; and, in case such moneys shall be
insufficient to pay in full the whole amount so due and unpaid upon the
Securities of such series, then to the payment of such principal, premium, if
any, and interest, if any, without preference or priority, of principal and
premium, if any, over interest, or of interest, if any, over principal and
premium, if any, or of any installment of interest, if any, over any other
installment of interest, if any, or of any Security of such series over any
other Security of such series, or of any Coupon appertaining thereto over any
other Coupon appertaining thereto, ratably to the aggregate of such principal
premium, if any, and accrued and unpaid interest, if any; and

                  FOURTH: To the payment of the remainder, if any, to the Issuer
or any other person lawfully entitled thereto or as a court of competent
jurisdiction may direct.

                  SECTION 6.4. SUITS FOR ENFORCEMENT. In case an Event of
Default with respect to Securities of any series has occurred, has not been
waived and is continuing, the Trustee for such series may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any of such rights, either at law or in equity or in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

                  SECTION 6.5. RESTORATION OF RIGHTS ON ABANDONMENT OF
PROCEEDINGS. In case the Trustee shall have proceeded to enforce any right under
this Indenture and such proceedings shall have been discontinued or abandoned
for any reason, or shall have been determined adversely to the Trustee, then and
in every such case the Issuer [, each of the Guarantors]* and the Trustee shall
be restored respectively to their former positions and rights hereunder, and all

---------
* This language to be included if debt securities are guaranteed.

                                      -42-
<PAGE>   50
rights, remedies and powers of the Issuer, [, each of the Guarantors]* the
Trustee and the Securityholders shall continue as though no such proceedings had
been taken.

                  SECTION 6.6. LIMITATIONS ON SUITS BY SECURITYHOLDERS. No
Holder of any Security of any series or Holder of any Coupon appertaining
thereto shall have any right by virtue or by availing of any provision of this
Indenture to institute any action or proceeding at law or in equity or in
bankruptcy or otherwise upon or under or with respect to this Indenture, or for
the appointment of a trustee, receiver, liquidator, custodian or other similar
official or for any other remedy hereunder, unless such Holder previously shall
have given to the Trustee for such series written notice of default with respect
to such series and of the continuance thereof, as hereinbefore provided, and
unless also the Holders of not less than 25% in aggregate principal amount of
the Securities of such series then Outstanding shall have made written request
upon the Trustee for such series to institute such action or proceeding in its
own name as Trustee hereunder and shall have offered to the Trustee such
reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby and the Trustee for 60 days after
its receipt of such notice, request and offer of indemnity shall have failed to
institute any such action or proceeding and no direction inconsistent with such
written request shall have been given to the Trustee pursuant to Section 6.9; it
being understood and intended, and being expressly covenanted by the taker and
Holder of every Security and by the taker and Holder of any Coupon appertaining
thereto with every other taker and Holder of any Security and of any Coupon
appertaining thereto and the Trustee for the Securities of each series that no
one or more Holders of Securities of any series or of any Coupons appertaining
thereto shall have any right in any manner whatever by virtue or by availing of
any provision of this Indenture to affect, disturb or prejudice the rights of
any other Holder of Securities of such series or of any Coupons appertaining
thereto, or to obtain or seek to obtain priority over or preference to any other
such Holder or to enforce any right under this Indenture, except in the manner
herein provided and for the equal, ratable and common benefit of all Holders of
Securities of such series or of any Coupons appertaining thereto. For the
protection and enforcement of the provisions of this Section, each and every
Holder of Securities of any series or of any Coupons appertaining thereto and
the Trustee shall be entitled to such relief as can be given either at law or in
equity.

                  SECTION 6.7. UNCONDITIONAL RIGHT OF SECURITYHOLDERS TO
INSTITUTE CERTAIN SUITS. Nothing contained in this Indenture, in the Securities
of any series or in any Coupon appertaining thereto shall affect or impair the
obligation of the Issuer, which is unconditional and absolute, to pay the
principal of, and premium, if any, and interest, if any, on the Securities of
such series at the respective places, at the respective times, at the respective
rates, in the respective amounts and in the coin, currency, or currency unit
therein and herein prescribed, or affect the right of any Holder of a Security
of any series or a Coupon to receive payment of the principal of (or premium, if
any) or interest, if any, on any such Security or Coupon on or after the
Maturity of such Security or the related Interest Payment Date, or affect or
impair the right of action, which is also absolute and unconditional, of any
Holder of any Security or Coupon, if any, to institute suit to enforce such
payment at the respective due dates expressed in such Security or Coupon, if
any, or upon redemption, by declaration, repayment or otherwise as herein
provided without reference to, or the consent of, the Trustee or the Holder of
any other Security or Coupon, if any, unless such Holder consents thereto.

---------
* This language to be included if debt securities are guaranteed.

                                      -43-
<PAGE>   51
                  SECTION 6.8. POWERS AND REMEDIES CUMULATIVE; DELAY OR OMISSION
NOT WAIVER OF EVENT OF DEFAULT. Except as provided in Section 6.6, no right or
remedy herein conferred upon or reserved to the Trustee for any series of the
Securities or to the Holder of any Security of such series or any Coupon
appertaining thereto 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.

                  No delay or omission of the Trustee or of any Holder of any
Security of any series or any Coupon appertaining thereto to exercise any right
or power accruing upon any Event of Default occurring and continuing as
aforesaid shall impair any such right or power or shall be construed to be a
waiver of any such Event of Default or an acquiescence therein; and, subject to
Section 6.6, every power and remedy given by this Indenture or by law to the
Trustee for any series of the Securities or to the Holder of the Security of
such series or any Coupon appertaining thereto may be exercised from time to
time, and as often as shall be deemed expedient, by the Trustee or by the Holder
of such Security or any Coupon appertaining thereto.

                  SECTION 6.9. CONTROL BY THE HOLDERS OF SECURITIES. The Holders
of a majority in aggregate principal amount of the Securities of each series
affected (with each series voting as a separate class) at the time Outstanding
shall have the right to direct the time, method, and place of conducting any
proceeding for any remedy available to the Trustee for such series, or
exercising any trust or power conferred on the Trustee with respect to the
Securities of such series by this Indenture; provided that such direction shall
not be otherwise than in accordance with law and the provisions of this
Indenture and provided further that (subject to the provisions of Section 7.1)
the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, shall determine that the action or proceeding
so directed may not lawfully be taken or if the Trustee in good faith by its
board of directors, the executive committee or a trust committee of directors or
responsible officers of the Trustee shall determine that the action or
proceedings so directed would involve the Trustee in personal liability or if
the Trustee in good faith shall so determine that the actions or forbearances
specified in or pursuant to such direction would be unduly prejudicial to the
interests of Holders of the Securities of all series so affected not joining in
the giving of said direction, it being understood that (subject to Section 7.1)
the Trustee shall have no duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such Holders.

                  Nothing in this Indenture shall impair the right of the
Trustee in its discretion to take any action deemed proper by the Trustee and
which is not inconsistent with such direction or directions by Securityholders.

                  SECTION 6.10. WAIVER OF PAST DEFAULTS. Prior to the
declaration of the acceleration of the maturity of the Securities of any series
as provided in Section 6.1, the Holders of a majority in aggregate principal
amount of the Securities of such series at the time Outstanding may on behalf of
the Holders of all the Securities of such series waive any past default or Event
of Default described in clauses (d) and (h) of Section 6.1 which relates to less
than all series of Securities then Outstanding, the Holders of a majority in
aggregate principal

                                      -44-
<PAGE>   52
amount of the Securities then Outstanding affected thereby (each series voting
as a separate class) may waive any such default or Event of Default or, in the
case of an event specified in clause (d) or (h) (if the Event of Default under
clause (d) or (h) relates to all series of Securities then Outstanding), (e),
(f) or (g) of Section 6.1, the Holders of a majority in aggregate principal
amount of all the Securities then Outstanding (voting as one class) may waive
any such default or Event of Default and its consequences, except a default in
respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Security affected. In the case of any
such waiver, the Issuer, [, each of the Guarantors]* the Trustee and the Holders
of the Securities of such series shall be restored to their former positions and
rights hereunder, respectively, such default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other default or Event of Default or impair any right consequent thereon.

                  SECTION 6.11. TRUSTEE TO GIVE NOTICE OF DEFAULT, BUT MAY
WITHHOLD IN CERTAIN CIRCUMSTANCES. The Trustee shall transmit to the
Securityholders of any series, as the names and addresses of such Holders appear
on the registry books, and to such Holders of Securities of any series and of
Coupons as have, within two years preceding such notice, filed their names and
addresses with the Trustee for that purpose, notice by mail of all defaults
known to the Trustee which have occurred with respect to such series, such
notice to be transmitted within 90 days after the occurrence thereof, unless
such defaults shall have been cured before the giving of such notice (the term
"default" or "defaults" for the purposes of this Section being hereby defined to
mean any event or condition which is, or with notice or lapse of time or both
would become, an Event of Default); provided that, except in the case of default
in the payment of the principal of or interest on any of the 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 or trustees and/or responsible officers of the Trustee in good faith
determines that the withholding of such notice is in the interests of the
Securityholders of such series and of Coupons, if any, appertaining thereto.

                  SECTION 6.12. RIGHT OF COURT TO REQUIRE FILING OF UNDERTAKING
TO PAY COSTS. All parties to this Indenture agree, and each Holder of any
Security and each Holder of any 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 the Securities of any series 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 due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section shall not apply to any suit instituted by the Trustee
for the Securities of any series, to any suit instituted by any Securityholder
or group of Securityholders of any series holding in the aggregate more than 10%
in aggregate principal amount of the Securities of such series Outstanding or,
in the case of any suit relating to or arising under clause (d) or (h) of
Section 6.1 (if the suit relates to Securities of more than one but less than
all series), 10% in aggregate

---------
* This language to be included if debt securities are guaranteed.

                                      -45-
<PAGE>   53
principal amount of Securities Outstanding affected thereby or, in the case of
any suit relating to or arising under clause (d), (h) (if the suit under clause
(d) or (h) relates to all the Securities then Outstanding), (e), (f) or (g) of
Section 6.1, 10% in aggregate principal amount of all Securities Outstanding or
to any suit instituted by any Holder of Securities or Coupons for the
enforcement of the payment of the principal of, premium, if any, or interest, if
any, on any Security or Coupon on or after the due date expressed in such
Security or Coupon.

                  SECTION 6.13. JUDGMENT CURRENCY. If, for the purpose of
obtaining a judgment in any court with respect to any obligation of the Issuer
hereunder or under any Security or Coupon, it shall become necessary to convert
into any other currency or currency unit any amount in the currency or currency
unit due hereunder or under such Security or Coupon, then such conversion shall
be made at the Conversion Rate as in effect on the date the Issuer shall make
payment to any person in satisfaction of such judgment. If, pursuant to any such
judgment, conversion shall be made on a date other than the date payment is made
and there shall occur a change between such Conversion Rate and the Conversion
Rate as in effect on the date of payment, the Issuer agrees to pay such
additional amounts (if any) as may be necessary to ensure that the amount paid
is the amount in such other currency or currency unit which, when converted at
the Conversion Rate as in effect on the date of payment or distribution, is the
amount then due hereunder or under such Security or Coupon. Any amount due from
the Issuer under this Section 6.13 shall be due as a separate debt and is not to
be affected by or merged into any judgment being obtained for any other sums due
hereunder or in respect of any Security or Coupon. In no event, however, shall
the Issuer be required to pay more in the currency or currency unit due
hereunder or under such Security or Coupon at the Conversion Rate as in effect
when payment is made than the amount of currency or currency unit stated to be
due hereunder or under such Security or Coupon so that in any event the Issuer's
obligations hereunder or under such Security or Coupon will be effectively
maintained as obligations in such currency or currency unit.

                  For purposes of this Section 6.13, "Conversion Rate" shall
mean the spot rate at which in accordance with normal banking procedures the
currency or currency unit into which an amount due hereunder or under any
Security or Coupon is to be converted could be purchased with the currency or
currency unit due hereunder or under any Security or Coupon from major banks
located in New York, London, or any other principal market for such purchased
currency or currency unit.

                                  ARTICLE VII.

                             CONCERNING THE TRUSTEE

                  SECTION 7.1. DUTIES AND RESPONSIBILITIES OF THE TRUSTEE;
DURING DEFAULT; PRIOR TO DEFAULT. With respect to the Holders of any series of
Securities issued hereunder, the Trustee, prior to the occurrence of an Event of
Default with respect to the Securities of that series and after the curing or
waiving of all Events of Default which may have occurred with respect to such
series, undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture. In case an Event of Default with
respect to the Securities of a series has occurred (which has not been cured or
waived) the Trustee as to that series shall exercise such of the rights and
powers vested in it by this Indenture, and use the same degree of care and skill
in their

                                      -46-
<PAGE>   54
exercise, as a prudent man would exercise or use under the circumstances in the
conduct of his own affairs.

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

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

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

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

                  (b) the Trustee shall not be liable for any error of judgment
made in good faith by a responsible officer or responsible officers of the
Trustee, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

                  (c) the Trustee shall not be liable for any determination,
action or judgment of any Dollar Determination Agent or any other agent
appointed by the Issuer pursuant to this Indenture; and

                  (d) the Trustee for the Securities of any series shall not be
liable with respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the Holders of Securities of such
series pursuant to Section 6.9 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred upon the Trustee, under this Indenture with respect
to the Securities of such series.

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

                  SECTION 7.2. CERTAIN RIGHTS OF THE TRUSTEE. Subject to Section
7.1:

                                      -47-
<PAGE>   55
                  (a) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers' Certificate, certificate
of a Dollar Determination Agent or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, bond, debenture, note, coupon,
security or other paper or document believed by it to be genuine and to have
been signed or presented by the proper party or parties;

                  (b) any request, direction, order or demand of the Issuer
mentioned herein shall be sufficiently evidenced by an Officers' Certificate
(unless other evidence in respect thereof be herein specifically prescribed);
and any resolution of the Board of Directors may be evidenced to the Trustee by
a copy thereof certified by the Secretary or any Assistant Secretary of the
Issuer;

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

                  (d) the Trustee for Securities of any series shall be under no
obligation to exercise any of the trusts or powers vested in it by this
Indenture at the request, order or direction of any of the Securityholders of
such series pursuant to the provisions of this Indenture, unless such
Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred
therein or thereby;

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

                  (f) prior to the occurrence of an Event of Default hereunder
and after the curing or waiving of all Events of Default, the Trustee shall not
be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, appraisal, bond, debenture, note, coupon,
security or other paper or document unless requested in writing so to do by the
Holders of not less than a majority in aggregate principal amount of the
Securities of all series affected then Outstanding; provided that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities
likely to be incurred by it in the making of such investigation is, in the
opinion of the Trustee, not reasonably assured to the Trustee by the security
afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such expenses or liabilities as a condition to
proceeding; the reasonable expenses of every such investigation shall be paid by
the Issuer or, if paid by the Trustee or any predecessor Trustee, shall be
repaid by the Issuer upon demand; 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 not regularly in its employ and the Trustee shall not be
responsible for any misconduct or negligence on the part of any such agent or
attorney appointed with due care by it hereunder.

                                      -48-
<PAGE>   56
                  SECTION 7.3. TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITION
OF SECURITIES OR APPLICATION OF PROCEEDS THEREOF. The recitals contained herein
and in the Securities, except the certificates of authentication, shall be taken
as the statements of the Issuer, and the Trustee assumes no responsibility for
the correctness of the same. The Trustee makes no representation as to the
validity or sufficiency of this Indenture or of the Securities or Coupons. The
Trustee shall not be accountable for the use or application by the Issuer of any
of the Securities or of the proceeds thereof.

                  SECTION 7.4. TRUSTEE AND AGENTS MAY HOLD SECURITIES;
COLLECTIONS, ETC. The Trustee, any Paying Agent, any Securities Registrar or any
agent of the Issuer or the Trustee, in its individual or any other capacity, may
become the owner or pledgee of Securities or Coupons with the same rights it
would have if it were not the Trustee or such agent and, subject to Sections 7.8
and 7.13, if operative, may otherwise deal with the Issuer and receive, collect,
hold and retain collections from the Issuer with the same rights it would have
if it were not the Trustee, Paying Agent, Securities Registrar or such agent.

                  SECTION 7.5. MONEYS HELD BY TRUSTEE. Subject to the provisions
of Section 4.4 hereof, all moneys in any currency or currency unit received by
the Trustee shall, until used or applied as herein provided, be held in trust
for the purposes for which they were received, but need not be segregated from
other funds except to the extent required by mandatory provisions of law. The
Trustee shall be under no liability for interest on any money received by it
hereunder except as otherwise agreed with the Issuer.

                  SECTION 7.6. COMPENSATION AND INDEMNIFICATION OF TRUSTEE AND
ITS PRIOR CLAIM. The Issuer covenants and agrees to pay to the Trustee for the
Securities of each series from time to time, and the Trustee shall be entitled
to, reasonable compensation in Dollars (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust) and the Issuer covenants and agrees to pay or reimburse the Trustee and
each predecessor Trustee in Dollars for the Securities of each series upon its
request for all reasonable expenses, disbursements and advances incurred or made
by or on behalf of it in accordance with any of the provisions of this Indenture
(including the reasonable compensation and the expenses and disbursements of its
counsel and of all agents and other persons not regularly in its employ) except
any such expense, disbursement or advance as may arise from its negligence or
bad faith. The Issuer also covenants to indemnify in Dollars the Trustee and
each predecessor Trustee for the Securities of each series for, and to hold it
harmless against, any 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 Indenture or the trusts hereunder and the performance of
its duties hereunder, including the costs and expenses of defending itself
against or investigating any claim of liability in the premises. The obligations
of the Issuer under this Section to compensate and indemnify the Trustee and
each predecessor Trustee and to pay or reimburse the Trustee and each
predecessor Trustee for expenses, disbursements and advances shall constitute
additional indebtedness hereunder and shall survive the satisfaction and
discharge of this Indenture. Such additional indebtedness shall be a claim prior
to that of the Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the benefit of the Holders of
particular Securities, and the Securities are hereby subordinated to such senior
claim.

                                      -49-
<PAGE>   57
                  SECTION 7.7. RIGHT OF TRUSTEE TO RELY ON OFFICERS'
CERTIFICATE, ETC. Subject to Sections 7.1 and 7.2, whenever in the
administration of the trusts of this Indenture the Trustee shall deem it
necessary or desirable that a matter be proved or established prior to taking or
suffering or omitting any action hereunder, such matter (unless other evidence
in respect thereof be herein specifically prescribed) may, in the absence of
negligence or bad faith on the part of the Trustee, be deemed to be conclusively
proved and established by an Officers' Certificate delivered to the Trustee, and
such certificate, in the absence of negligence or bad faith on the part of the
Trustee, shall be full warrant to the Trustee for any action taken, suffered or
omitted by it under the provisions of this Indenture upon the faith thereof.

                  SECTION 7.8. QUALIFICATION OF TRUSTEE; CONFLICTING INTERESTS.
The Trustee for the Securities of any series issued hereunder shall be subject
to the provisions of Section 310(b) of the Trust Indenture Act during the period
of time provided for therein. In determining whether the Trustee has a
conflicting interest as defined in Section 310(b) of the Trust Indenture Act
with respect to the Securities of any series, there shall be excluded this
Indenture with respect to Securities of any particular series of Securities
other than that series. Nothing herein shall prevent the Trustee from filing
with the Commission the application referred to in the second-to-last paragraph
of Section 310(b) of the Trust Indenture Act.

                  SECTION 7.9. PERSONS ELIGIBLE FOR APPOINTMENT AS TRUSTEE.
There shall at all times be a Trustee for each series of Securities hereunder,
which shall at all times be either:

                  (a) a corporation organized and doing business under the laws
of the United States of America or of any State or the District of Columbia
which is authorized under such laws to exercise corporate trust powers and is
subject to supervision or examination by Federal, state or District of Columbia
authority, or

                  (b) a corporation or other Person organized and doing business
under the laws of a foreign government that is permitted to act as Trustee
pursuant to a rule, regulation or order of the Commission, authorized under such
laws to exercise corporate trust powers and is subject to supervision or
examination by authority of such foreign government or a political subdivision
thereof substantially equivalent to supervision or examination applicable to
United States institutional trustees, in either case having a combined capital
and surplus of at least $10,000,000. 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. In case at any time the Trustee for the Securities of
any series shall cease to be eligible in accordance with the provisions of this
Section, the Trustee shall resign immediately in the manner and with the effect
specified in Section 7.10. Neither the Issuer nor any person directly or
indirectly controlling, controlled by or under common control with the Issuer
shall serve as trustee for the Securities of any series issued hereunder.

                  SECTION 7.10. RESIGNATION AND REMOVAL; APPOINTMENT OF
SUCCESSOR TRUSTEE. (a) The Trustee, or any trustee or trustees hereafter
appointed, for the Securities of any series may at any time resign with respect
to one or more or all series of Securities by giving written notice of
resignation to the Issuer and by mailing notice thereof by first-class mail to
Holders of

                                      -50-
<PAGE>   58
the applicable series of Securities at their last addresses as they shall appear
on the Security Register. Upon receiving such notice of resignation, the Issuer
shall promptly appoint a successor trustee or trustees with respect to the
applicable series by written instrument in duplicate, executed by authority of
the Board of Directors, one copy of which instrument shall be delivered to the
resigning Trustee and one copy to the successor trustee or trustees. If no
successor trustee shall have been so appointed with respect to any series and
have accepted appointment within 30 days after the mailing of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee, or any Securityholder
who has been a bona fide Holder of a Security or Securities of the applicable
series for at least six months may, subject to the provisions of Section 6.12,
on behalf of himself and all others similarly situated, petition any such court
for the appointment of a successor trustee. Such court may thereupon, after such
notice, if any, as it may deem proper and prescribe, appoint a successor
trustee.

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

                  (i) the Trustee for the Securities of any series shall fail to
         comply with the provisions of Section 7.8 with respect to any series of
         Securities after written request therefor by the Issuer or by any
         Securityholder who has been a bona fide Holder of a Security or
         Securities of such series for at least six months;

                  (ii) the Trustee for the Securities of any series shall cease
         to be eligible in accordance with the provisions of Section 7.9 and
         shall fail to resign after written request therefor by the Issuer or by
         any Securityholder of such series; or

                  (iii) the Trustee for the Securities of any series shall
         become incapable of acting with respect to any series of Securities, or
         shall be adjudged a bankrupt or insolvent, or a receiver or liquidator
         of the Trustee or of its property shall be appointed, or any public
         officer shall take charge or control of the Trustee or of its property
         or affairs for the purpose of rehabilitation, conservation or
         liquidation; then, in any such case, the Issuer may remove the Trustee
         with respect to the applicable series of Securities and appoint a
         successor trustee for such series by written instrument, in duplicate,
         executed by order of the Board of Directors of the Issuer, one copy of
         which instrument shall be delivered to the Trustee so removed and one
         copy to the successor trustee, or, subject to the provisions of Section
         6.12, any Securityholder who has been a bona fide Holder of a Security
         or Securities of such series for at least six months may, on behalf of
         himself and all others similarly situated, petition any court of
         competent jurisdiction for the removal of the Trustee and the
         appointment of a successor trustee with respect to such series. Such
         court may thereupon, after such notice, if any, as it may deem proper
         and prescribe, remove the Trustee and appoint a successor trustee for
         such series.

                  (c) The Holders of a majority in aggregate principal amount of
the Securities of each series at the time Outstanding may at any time remove the
Trustee with respect to the Securities of such series and appoint a successor
trustee with respect to the Securities of such series by delivering to the
Trustee so removed, to the successor trustee so appointed and to the Issuer the
evidence provided for in Section 8.1 of the action in that regard taken by the
Securityholders.

                                      -51-
<PAGE>   59
                  (d) Any resignation or removal of the Trustee with respect to
any series of the Securities and any appointment of a successor trustee with
respect to such series pursuant to any of the provisions of this Section 7.10
shall become effective upon acceptance of appointment by the successor trustee
as provided in Section 7.11.

                  SECTION 7.11. ACCEPTANCE OF APPOINTMENT BY SUCCESSOR TRUSTEE.
Any successor trustee appointed as provided in Section 7.10 shall execute,
acknowledge and deliver to the Issuer and to its predecessor trustee an
instrument accepting such appointment hereunder, and thereupon the resignation
or removal of the predecessor trustee with respect to all or any applicable
series of the Securities shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all
rights, powers, duties and obligations with respect to such series of its
predecessor hereunder, with like effect as if originally named as trustee for
such series hereunder; but, nevertheless, on the written request of the Issuer,
or of the successor trustee, upon payment of its charges then unpaid, the
Trustee ceasing to act shall, subject to Section 4.4, pay over to the successor
trustee all moneys at the time held by it hereunder and shall execute and
deliver an instrument transferring to such successor trustee all such rights,
powers, duties and obligations. Upon request of any such successor trustee, the
Issuer shall execute any and all instruments in writing for more fully and
certainly vesting in and confirming to such successor trustee all such rights
and powers. Any Trustee ceasing to act shall, nevertheless, retain a prior claim
upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section 7.6.

                  If a successor trustee is appointed with respect to the
Securities of one or more (but not all) series, the Issuer, the predecessor
Trustee and each successor trustee with respect to the Securities of any
applicable series shall execute and deliver an indenture supplemental hereto
which shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the predecessor
Trustee with respect to the Securities of any series as to which the predecessor
Trustee is not retiring shall continue to be vested in the predecessor Trustee
and 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 cotrustees of the
same trust and that each such Trustee shall be trustee of a trust or trusts
under separate indentures.

                  No successor trustee with respect to any series of Securities
shall accept appointment as provided in this Section 7.11 unless at the time of
such acceptance such successor trustee shall be qualified under the provisions
of Section 7.8 and eligible under the provisions of Section 7.9.

                  Upon acceptance of appointment by any successor trustee as
provided in this Section 7.11, the Issuer shall mail notice thereof by
first-class mail to the Holders of Securities of any applicable series and to
the Holders of Coupons, if any, appertaining thereto for which such successor
trustee is acting as Trustee at their last addresses as they shall appear in the
Security Register. If the acceptance of appointment is substantially
contemporaneous with the resignation, then the notice called for by the
preceding sentence may be combined with the notice called for by Section 7.10.
If the Issuer fails to mail such notice within 10 days after

                                      -52-
<PAGE>   60
acceptance of appointment by the successor trustee, the successor trustee shall
cause such notice to be mailed at the expense of the Issuer.

                  SECTION 7.12. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION
TO BUSINESS OF TRUSTEE. Any corporation into which the Trustee for the
Securities of any series may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation
succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee for such series hereunder; provided that such
corporation shall be qualified under the provisions of Section 7.8 and eligible
under the provisions of Section 7.9, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding.

                  In case at the time such successor to the Trustee shall
succeed to the trusts created by this Indenture any of the Securities of one or
more series shall have been authenticated but not delivered, any such successor
to the Trustee may adopt the certificate of authentication of any predecessor
Trustee and deliver such Securities so authenticated; and, in case at that time
any of the Securities of any series shall not have been authenticated, any
successor to the trustee may authenticate such Securities either in the name of
any predecessor hereunder or in the name of the successor trustee; and in all
such cases such certificate shall have the full force which it is anywhere in
the Securities of such series or in this Indenture provided that the certificate
of the Trustee shall have; provided, however, that the right to adopt the
certificate of authentication of any predecessor Trustee or to authenticate
Securities of any series in the name of any predecessor Trustee shall apply only
to its successor or successors by merger, conversion or consolidation.

                  SECTION 7.13. PREFERENTIAL COLLECTION OF CLAIMS AGAINST THE
ISSUER. (a) Subject to the provisions of this Section, if the Trustee for the
Securities of any series shall be or shall become a creditor, directly or
indirectly, secured or unsecured, of the Issuer or any other obligor of the
Securities of such series within three months prior to a default, as defined in
subsection (c) of this Section, or subsequent to such a default, then, unless
and until such default shall be cured, the Trustee shall set apart and hold in a
special account for the benefit of the Trustee individually, the Holders of the
Securities of such series, the Holders of the Coupons, if any, appertaining
thereto and the holders of other indenture securities (as defined in this
Section):

                  (1) an amount equal to any and all reductions in the amount
due and owing upon any claim as such creditor, in respect of principal or
interest, effected after the beginning of such three-month period and valid as
against the Issuer and its other creditors, except any such reduction resulting
from the receipt or disposition of any property described in subsection (a)(2)
of this Section or from the exercise of any right of setoff which the Trustee
could have exercised if a petition in bankruptcy had been filed by or against
the Issuer upon the date of such default; and

                  (2) all property received by the Trustee in respect of any
claim as such creditor, either as security therefor or in satisfaction or
composition thereof, or otherwise, after the beginning of such three months'
period, or an amount equal to the proceeds of any such property,

                                      -53-
<PAGE>   61
if disposed of, subject, however, to the rights, if any, of the Issuer and its
other creditors in such property or such proceeds.

                  Nothing herein contained, however, shall affect the right of
the Trustee:

                  (A) to retain for its own account (i) payments made on account
of any such claim by any person (other than the Issuer) who is liable thereon,
(ii) the proceeds of the bona fide sale of any such claim by the Trustee to a
third person and (iii) distributions made in cash, securities or other property
in respect of claims filed against the Issuer in bankruptcy or receivership or
in proceedings for reorganization pursuant to the Federal Bankruptcy Code or
applicable state law;

                  (B) to realize, for its own account, upon any property held by
it as security for any such claim, if such property was so held prior to the
beginning of such three months' period;

                  (C) to realize, for its own account, but only to the extent of
the claim hereinafter mentioned, upon any property held by it as security for
any such claim, if such claim was created after the beginning of such three
months' period and such property was received as security therefor
simultaneously with the creation thereof, and if the Trustee shall sustain the
burden of proving that at the time such property was so received the Trustee had
no reasonable cause to believe that a default as defined in subsection (c) of
this Section would occur within three months; or

                  (D) to receive payment on any claim referred to in paragraph
(B) or (C), against the release of any property held as security for such claim
as provided in such paragraph (B) or (C), as the case may be, to the extent of
the fair value of such property.

                  For the purposes of paragraphs (B), (C) and (D), property
substituted after the beginning of such three months' period for property held
as security at the time of such substitution shall, to the extent of the fair
value of the property released, have the same status as the property released,
and, to the extent that any claim referred to in any of such paragraphs is
created in renewal of or in substitution for or for the purpose of repaying or
refunding any preexisting claim of the Trustee as such creditor, such claim
shall have the same status as such preexisting claim.

                  If the Trustee for the Securities of any series shall be
required to account, the funds and property held in such special account and the
proceeds thereof shall be apportioned among the Trustee, the Holders of the
Securities of such series, the Holders of the Coupons, if any, appertaining
thereto and the holders of other indenture securities in such manner that the
Trustee, such Holders and the holders of other indenture securities realize, as
a result of payments from such special account and payments of dividends on
claims filed against the Issuer in bankruptcy or receivership or in proceedings
for reorganization pursuant to the Federal Bankruptcy Code or applicable state
law, the same percentage of their respective claims, figured before crediting to
the claim of the Trustee anything on account of the receipt by it from the
Issuer of the funds and property in such special account and before crediting to
the respective claims of the Trustee, Holders of the Securities of such series,
the Holders of the Coupons, if any, appertaining thereto and the holders of
other indenture securities dividends on claims filed against the Issuer in
bankruptcy or receivership or in proceedings for reorganization pursuant to

                                      -54-
<PAGE>   62
the Federal Bankruptcy Code or applicable state law, but after crediting thereon
receipts on account of the indebtedness represented by their respective claims
from all sources other than from such dividends and from the funds and property
so held in such special account. As used in this paragraph, with respect to any
claim, the term "dividends" shall include any distribution with respect to such
claim, in bankruptcy or receivership or in proceedings for reorganization
pursuant to the Federal Bankruptcy Code or applicable State law, whether such
distribution is made in cash, securities or other property, but shall not
include any such distribution with respect to the secured portion, if any, of
such claim. The court in which such bankruptcy, receivership or proceeding for
reorganization is pending shall have jurisdiction (i) to apportion among the
Trustee, the Holders of such Securities, the Holders of the Coupons, if any,
appertaining thereto and the holders of other indenture securities, in
accordance with the provisions of this paragraph, the funds and property held in
such special account and the proceeds thereof or (ii) in lieu of such
apportionment, in whole or in part, to give to the provisions of this paragraph
due consideration in determining the fairness of the distributions to be made to
the Trustee, the Holders of such Securities, the Holders of the Coupons, if any,
appertaining thereto and the holders of other indenture securities with respect
to their respective claims, in which event it shall not be necessary to
liquidate or to appraise the value of any securities or other property held in
such special account or as security for any such claim, to make a specific
allocation of such distributions, as between the secured and unsecured portions
of such claims, or otherwise to apply the provisions of this paragraph as a
mathematical formula.

                  Any Trustee who has resigned or been removed after the
beginning of such three-month period shall be subject to the provisions of this
subsection (a) as though such resignation or removal had not occurred. If any
Trustee has resigned or been removed prior to the beginning of such three
months' period, it shall be subject to the provisions of this subsection (a) if
and only if the following conditions exist:

                  (i) the receipt of property or reduction of claim which would
         have given rise to the obligation to account, if such Trustee had
         continued as trustee, occurred after the beginning of such three
         months' period; and

                  (ii) such receipt of property or reduction of claim occurred
         within three months after such resignation or removal.

                  (b) There shall be excluded from the operation of this Section
a creditor relationship arising from:

                  (1) the ownership or acquisition of securities issued under
any indenture or any security or securities having a maturity of one year or
more at the time of acquisition by the Trustee;

                  (2) advances authorized by a receivership or bankruptcy court
of competent jurisdiction or by this Indenture for the purpose of preserving any
property which shall at any time be subject to the lien of this Indenture or of
discharging tax liens or other prior liens or encumbrances thereon, if notice of
such advance and of the circumstances surrounding the making thereof is given to
the Holders of the applicable series of Securities and the Holders of

                                      -55-
<PAGE>   63
the Coupons, if any, appertaining thereto, at the time and in the manner
provided in this Indenture;

                  (3) disbursements made in the ordinary course of business in
the capacity of trustee under an indenture, transfer agent, registrar,
custodian, paying agent, fiscal agent or depositary or other similar capacity;

                  (4) an indebtedness created as a result of services rendered
or premises rented or an indebtedness created as a result of goods or securities
sold in a cash transaction as defined in subsection (c)(3) below;

                  (5) the ownership of stock or of other securities of a
corporation organized under the provisions of Section 25(a) of the Federal
Reserve Act, as amended, which is directly or indirectly a creditor of the
Issuer; or

                  (6) the acquisition, ownership, acceptance or negotiation of
any drafts, bills of exchange, acceptances or obligations which fall within the
classification of self-liquidating paper as defined in subsection (c)(4) of this
Section.

                  (c) As used in this Section:

                  (1) the term "default" shall mean any failure to make payment
in full of the principal of or interest upon any of the Securities of the
applicable series or upon the other indenture securities when and as such
principal or interest becomes due and payable;

                  (2) the term "other indenture securities" shall mean
securities upon which the Issuer is an obligor (as defined in the Trust
Indenture Act) outstanding under any other indenture (i) under which the Trustee
is also trustee, (ii) which contains provisions substantially similar to the
provisions of subsection (a) of this Section and (iii) under which a default
exists at the time of the apportionment of the funds and property held in said
special account;

                  (3) the term "cash transaction" shall mean any transaction in
which full payment for goods or securities sold is made within seven days after
delivery of the goods or securities in currency or in checks or other orders
drawn upon banks or bankers and payable upon demand;

                  (4) the term "self-liquidating paper" shall mean any draft,
bill of exchange, acceptance or obligation which is made, drawn, negotiated or
incurred by the Issuer for the purpose of financing the purchase, processing,
manufacture, shipment, storage or sale of goods, wares or merchandise and which
is secured by documents evidencing title to, possession of or a lien upon the
goods, wares or merchandise or the receivables or proceeds arising from the sale
of the goods, wares or merchandise previously constituting the security;
provided that the security is received by the Trustee simultaneously with the
creation of the creditor relationship with the Issuer arising from the making,
drawing, negotiating or incurring of the draft, bill of exchange, acceptance or
obligation; and

                  (5) the term "Issuer" shall mean any obligor upon the
Securities.

                                      -56-
<PAGE>   64
                  SECTION 7.14. AUTHENTICATING AGENT. So long as any Securities
of a series remain outstanding, if the Trustee ceases to maintain a corporate
trust facility in the Borough of Manhattan, The City of New York, New York, or
otherwise upon an Issuer Request, there shall be an authenticating agent (the
"Authenticating Agent") appointed, for such period as the Issuer shall elect, by
the Trustee for such series of Securities to act as its agent on its behalf and
subject to its direction in connection with the authentication and delivery of
each series of Securities for which it is serving as Trustee. Securities of each
such series authenticated by such Authenticating Agent shall be entitled to the
benefits of this Indenture and shall be valid and obligatory for all purposes as
if authenticated by such Trustee. Wherever reference is made in this Indenture
to the authentication and delivery of Securities of any series by the Trustee
for such series or to the Trustee's Certificate of Authentication, such
reference shall be deemed to include authentication and delivery on behalf of
the Trustee for such series except by way of original issuance by an
Authenticating Agent for such series and a Certificate of Authentication
executed on behalf of such Trustee by such Authenticating Agent. Such
Authenticating Agent shall at all times be a corporation organized and doing
business under the laws of the United States of America or of any State,
authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least $10,000,000 and subject to supervision or
examination by Federal or state authority. If the Trustee does not maintain a
corporate trust facility in the Borough of Manhattan, The City of New York, New
York, the Authenticating Agent shall have its principal office and place of
business in the Borough of Manhattan, The City of New York, New York.

                  Any corporation into which any Authenticating Agent may be
merged or converted, or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which any
Authenticating Agent shall be a party, or any corporation succeeding to the
corporate agency business of any Authenticating Agent, shall continue to be the
Authenticating Agent with respect to all series of Securities for which it
served as Authenticating Agent without the execution or filing of any paper or
any further act on the part of the Trustee for such series or such
Authenticating Agent. Any Authenticating Agent may at any time, and, if it shall
cease to be eligible, shall, resign by giving written notice of resignation to
the applicable Trustee and to the Issuer. The Trustee for any series of
Securities may at any time terminate the agency of any Authenticating Agent for
such series by giving written notice of termination to such Authenticating Agent
and to the Issuer.

                  Upon receiving such a notice of resignation or upon such a
termination, or in case at any time any Authenticating Agent shall cease to be
eligible in accordance with the provisions of this Section 7.14 with respect to
one or more or all series of Securities, the Trustee for such series shall upon
Issuer Request appoint a successor Authenticating Agent, and the Issuer shall
provide notice of such appointment to all Holders of Securities of such series
or any Coupons appertaining thereto in the manner and to the extent provided in
Section 13.4. Any successor Authenticating Agent upon acceptance of its
appointment hereunder shall become vested with all rights, powers, duties and
responsibilities of its predecessor hereunder, with like effect as if originally
named as Authenticating Agent herein. The Trustee for the Securities of such
series agrees to pay to the Authenticating Agent for such series from time to
time reasonable compensation for its services, and the Trustee shall be entitled
to be reimbursed for such payment subject to the provisions of Section 7.6. The
Authenticating Agent for the Securities of

                                      -57-
<PAGE>   65
any series shall have no responsibility or liability for any action taken by it
as such at the direction of the Trustee for such series.

                                 ARTICLE VIII.

                      CONCERNING THE HOLDERS OF SECURITIES

                  SECTION 8.1. ACTION BY HOLDERS. Whenever in this Indenture it
is provided that the Holders of a specified percentage in aggregate principal
amount of the Securities of any series may take any action (including the making
of any demand or request, the giving of any notice, consent or waiver or the
taking of any other action) the fact that at the time of taking any such action
the Holders of such specified percentage have joined therein may be evidenced
(a) by any instrument or any number of instruments of similar tenor executed by
Holders in person or by agent or proxy appointed in writing, or (b) by the
record of Holders voting in favor thereof at any meeting of such Holders duly
called and held in accordance with the provisions of Article Nine, or (c) by a
combination of such instrument or instruments and any such record of such a
meeting of Holders. The Issuer may set a record date for purposes of determining
the identity of Holders entitled to vote or consent to any action by vote or
consent authorized or permitted under this Indenture, which record date shall be
the later of 10 days prior to the first solicitation of such consent or the date
of the most recent list of Holders furnished to the Trustee pursuant to Section
5.1 of this Indenture prior to such solicitation. If a record date is fixed,
those persons who were Holders of Securities at such record date (or their duly
designated proxies), and only those persons, shall be entitled to take such
action by vote or consent or to revoke any vote or consent previously given,
whether or not such persons continue to be Holders after such record date. No
such vote or consent shall be valid or effective for more than 120 days after
such record date.

                  SECTION 8.2. PROOF OF EXECUTION OF INSTRUMENTS BY HOLDERS OF
SECURITIES. Subject to Sections 7.1, 7.2 and 9.5, the execution of any
instrument by a Holder of a Security or of any Coupon or his agent or proxy may
be proved in the following manner:

                  The fact and date of the execution by any such person of any
instrument may be proved by the certificate of any notary public or other
officer authorized to take acknowledgments of deeds that the person executing
such instrument acknowledged to him the execution thereof or by any affidavit of
a witness to such execution sworn to before any such notary or other such
officer. Where such execution is by an officer of a corporation or association
or a member of a partnership on behalf of such corporation, association or
partnership, as the case may be, or by any other person acting in a
representative capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority.

                  The ownership of Registered Securities of any series shall be
proved by the Securities Register for such series or by a certificate of the
Securities Register for such series; the ownership of Unregistered Securities of
any series and Coupons shall be proved by proof of possession reasonably
satisfactory to the Trustee.

                  The record of any Holders' meeting shall be proved in the
manner provided in Section 9.6.

                                      -58-
<PAGE>   66
                  SECTION 8.3. HOLDERS TO BE TREATED AS OWNERS. The Issuer, the
Trustee and any agent of the Issuer or the Trustee may deem and treat the Person
in whose name any Registered Security shall be registered upon the Security
Register for such series as the absolute owner of such Security (notwithstanding
any notation of ownership or other writing thereon) for the purpose of receiving
payment of principal of, premium, if any, and (subject to Section 3.8), if such
registered Security is a Fully Registered Security, interest, if any, on such
Registered Security and for all other purposes whatsoever whether or not such
Security be overdue, and neither the Issuer, the Trustee nor any agent of the
Issuer or the Trustee shall be affected by notice to the contrary. The Issuer,
the Trustee and any agent of the Issuer or the Trustee may treat the Holder of
any Unregistered Security and the Holder of any Coupon, whether or not the
Security to which such Coupon appertained be registered, as the absolute owner
of such Security or Coupon for the purposes of receiving payment thereof or on
account thereof and for all other purposes whatsoever whether or not such
Security or Coupon be overdue, and neither the Issuer, the Trustee, any Paying
Agent nor any Security Registrar shall be affected by notice to the contrary.
All such payments so made to any Holder for the time being or upon his order
shall be valid and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon such Security or
Coupon.

                  SECTION 8.4. SECURITIES OWNED BY ISSUER DEEMED NOT
OUTSTANDING. In determining whether the Holders of the requisite aggregate
principal amount of Securities of any or all series have concurred in any
direction, consent or waiver under this Indenture, Securities which are owned by
the Issuer or any other obligor on the Securities with respect to which such
determination is being made or by any person directly or indirectly controlling
or controlled by or under direct or indirect common control with the Issuer or
any other obligor on the Securities with respect to which such determination is
being made shall be disregarded and deemed not to be Outstanding for the purpose
of any such determination, except that for the purpose of determining whether
the Trustee shall be protected in relying on any such direction, consent or
waiver only Securities which the Trustee knows are so owned shall be so
disregarded. 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 Securities and that
the pledgee is not the Issuer or any other obligor upon the Securities or any
person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Issuer or any other obligor on the Securities.
In case of a dispute as to such right, the advice of counsel shall be full
protection in respect of any decision made by the Trustee in accordance with
such advice. Upon request of the Trustee, the Issuer shall furnish to the
Trustee promptly an Officers' Certificate listing and identifying all
Securities, if any, known by the Issuer to be owned or held by or for the
account of any of the above-described persons; and, subject to Sections 7.1 and
7.2, the Trustee shall be entitled to accept such Officers' Certificate as
conclusive evidence of the facts therein set forth and of the fact that all
Securities not listed therein are Outstanding for the purpose of any such
determination.

                  SECTION 8.5. RIGHT OF REVOCATION OF ACTION TAKEN. At any time
prior to (but not after) the evidencing to the Trustee, as provided in Section
8.1, of the taking of any action by the Holders of the percentage in aggregate
principal amount of the Securities of any or all series, as the case may be,
specified in this Indenture in connection with such action, any Holder of a
Security the number, letter or other distinguishing symbol of which is shown by
the evidence to be included in the Securities the Holders of which have
consented to such action may by filing

                                      -59-
<PAGE>   67
written notice at the Corporate Trust Office and upon proof of holding as
provided in this Article, revoke such action so far as concerns such Security.
Except as aforesaid, any such action taken by the Holder of any Security shall
be conclusive and binding upon such Holder and upon all future Holders and
owners of such Security and any Coupon appertaining thereto and of any
Securities and Coupons issued in exchange or substitution therefor, irrespective
of whether or not any notation in regard thereto is made upon any such Security
or Coupon or such other Security or Coupon. Any action taken by the Holders of
the percentage in aggregate principal amount of the Securities of any or all
series, as the case may be, specified in this Indenture in connection with such
action shall be conclusively binding upon the Issuer, the Trustee and the
Holders of all the Securities affected by such action.

                                  ARTICLE IX.

                                HOLDERS' MEETINGS

                  SECTION 9.1. PURPOSES OF MEETINGS. A meeting of Holders of
Securities of any or all series may be called at any time and from time to time
pursuant to the provisions of this Article Nine for any of the following
purposes:

                  (1) to give any notice to the Issuer or to the Trustee for the
Securities of such series, to give any directions to the Trustee for such
series, to consent to the waiving of any default hereunder and its consequences
or to take any other action authorized to be taken by Holders pursuant to any of
the provisions of Article Six;

                  (2) to remove the Trustee for such series and nominate a
successor trustee pursuant to the provisions of Article Seven;

                  (3) to consent to the execution of an indenture or indentures
supplemental hereto pursuant to the provisions of Section 10.2; or

                  (4) to take any other action authorized to be taken by or on
behalf of the Holders of any specified aggregate principal amount of the
Securities of any one or more or all series, as the case may be, under any other
provision of this Indenture or under applicable law.

                  SECTION 9.2. CALL OF MEETINGS BY TRUSTEE. The Trustee for the
Securities of any series may at any time call a meeting of Holders of Securities
of such series to take any action specified in Section 9.1, to be held at such
time and at such place in the Borough of Manhattan, The City of New York, or
such other Place of Payment as the Trustee for such series shall determine.
Notice of every meeting of the Holders of 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 to Holders of Securities of
such series in the manner and to the extent provided in Section 13.4. Such
notice shall be given not less than 20 nor more than 90 days prior to the date
fixed for the meeting.

                  SECTION 9.3. CALL OF MEETINGS BY ISSUER OR HOLDERS. In case at
any time the Issuer, pursuant to a Board Resolution, or the Holders of at least
10% in aggregate principal amount of the Outstanding Securities of any or all
series, as the case may be, shall have requested the Trustee for such series to
call a meeting of Holders of Securities of any or all

                                      -60-
<PAGE>   68
series, as the case may be, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting and the Trustee for such
series shall not have given the notice of such meeting within 20 days after
receipt of such request, then the Issuer or such Holders may determine the time
and the place in the Borough of Manhattan or other Place of Payment for such
meeting and may call such meeting to take any action authorized in Section 9.1,
by giving notice thereof as provided in Section 9.2.

                  SECTION 9.4. QUALIFICATIONS FOR VOTING. To be entitled to vote
at any meeting of Holders a person shall be (a) a Holder of one or more
Securities with respect to which such meeting is being held or (b) a person
appointed by an instrument in writing as proxy by such Holder. The only persons
who shall be entitled to be present or to speak at any meeting of Holders shall
be the persons entitled to vote at such meeting and their counsel and any
representatives of the Trustee for the Securities of the series with respect to
which such meeting is being held and its counsel and any representatives of the
Issuer and its counsel.

                  SECTION 9.5. REGULATIONS. Notwithstanding any other provisions
of this Indenture, the Trustee for the Securities of any series may make such
reasonable regulations as it may deem advisable for any meeting of Holders of
the Securities of such series, in regard to proof of the holding of 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 think fit.

                  The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Issuer or by Holders of the Securities of such series as provided in Section
9.3, in which case the Issuer or the Holders calling the meeting as the case may
be, shall in like manner appoint a temporary chairman. A permanent chairman and
a permanent secretary of the meeting shall be elected by majority vote of the
meeting.

                  Subject to Section 8.4, at any meeting each Holder of
Securities with respect to which such meeting is being held or proxy therefor
shall be entitled to one vote for each 1,000 (in the currency or currency unit
in which such Securities are denominated) principal amount (in the case of
Original Issue Discount Securities, such principal amount to be determined as
provided in the definition of "Outstanding") of Securities held or represented
by him; provided, however, that no vote shall be cast or counted at any meeting
in respect of any such Security challenged as not Outstanding and ruled by the
chairman of the meeting to be not Outstanding. The chairman of the meeting shall
have no right to vote other than by virtue of Securities of such series held by
him or instruments in writing aforesaid duly designating him as the person to
vote on behalf of other Holders of such series. At any meeting of Holders, the
presence of persons holding or representing Securities with respect to which
such meeting is being held in an aggregate principal amount sufficient to take
action on the business for the transaction of which such meeting was called
shall constitute a quorum, but, if less than a quorum is present, the persons
holding or representing a majority in aggregate principal amount of such
Securities represented at the meeting may adjourn such meeting with the same
effect, for all intents and purposes, as though a quorum had been present. Any
meeting of Holders of Securities with respect to which a meeting was duly called
pursuant to the provisions of Section 9.2 or Section

                                      -61-
<PAGE>   69
9.3 may be adjourned from time to time by a majority of such Holders present,
whether or not constituting a quorum, and the meeting may be held as so
adjourned without further notice.

                  SECTION 9.6. VOTING. The vote upon any resolution submitted to
any meeting of Holders of Securities with respect to which such meeting is being
held shall be by written ballots on which shall be subscribed the signatures of
such Holders or of their representatives by proxy and the serial number or
numbers of the Securities held or represented by them. The permanent chairman of
the meeting shall appoint two inspectors of votes who shall count all votes cast
at the meeting for or against any resolution and who shall make and file with
the secretary of the meeting their verified written reports in duplicate of all
votes cast at the meeting. A record in duplicate of the proceedings of each
meeting of Holders 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 mailed as provided in Section 9.2. The record shall
show the serial numbers of the Securities voting in favor of or against any
resolution. The record shall be signed and verified by the affidavits of the
permanent chairman and the secretary of the meeting and one of the duplicates
shall be delivered to the Issuer and the other to the Trustee to be preserved by
the Trustee.

                  Any record so signed and verified shall be conclusive evidence
of the matters therein stated.

                  SECTION 9.7. NO DELAY OF RIGHTS BY MEETING. Nothing in this
Article Nine contained shall be deemed or construed to authorize or permit, by
reason of any call of a meeting of Holders or any rights expressly or impliedly
conferred hereunder to make such call, any hindrance or delay in the exercise of
any right or rights conferred upon or reserved to the Trustee or to the Holders
under any of the provisions of this Indenture or of the Securities of any
series.

                                   ARTICLE X.

                             SUPPLEMENTAL INDENTURES

                  SECTION 10.1. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF
SECURITYHOLDERS. The Issuer, when authorized by a Board Resolution, [each of the
Guarantors]* and the Trustee for the Securities of any or all series may from
time to time and at any time enter into an indenture or indentures supplemental
hereto (which shall conform to the provisions of the Trust Indenture Act as in
force at the date of the execution thereof) for one or more of the following
purposes:

                  (a) to convey, transfer, assign, mortgage or pledge to the
Trustee as security for the Securities of any or all series any property or
assets; provided, however, that such conveyance, transfer, assignment, mortgage
or pledge is consistent with the provisions of Section 4.6 hereof;

                  (b) to evidence the succession of another corporation to the
Issuer, or successive successions, and the assumption by the successor
corporation of the covenants, agreements and obligations of the Issuer under
this Indenture and the Securities;

----------

* This language to be included if debt securities are guaranteed.

                                      -62-
<PAGE>   70
                  (c) to add to the covenants of the Issuer such further
covenants, restrictions, conditions or provisions as its Board of Directors and
the Trustee shall consider to be for the protection of the Holders of any series
of Securities and the Coupons, if any, appertaining thereto, or to surrender any
right or power conferred upon the Issuer, and to make the occurrence, or the
occurrence and continuance, of a default in any such additional covenants,
restrictions, conditions or provisions an Event of Default permitting the
enforcement of all or any of the several remedies provided in this Indenture as
herein set forth; provided that in respect of any such additional covenant,
restriction, condition or provision such supplemental indenture may provide for
a particular period of grace after default (which period may be shorter or
longer than that allowed in the case of other defaults) or may provide for an
immediate enforcement upon such an Event of Default or may limit the remedies
available to the Trustee upon such an Event of Default or may limit the right of
the Holders of a majority in aggregate principal amount of the Securities of
such series to waive such an Event of Default;

                  (d) to add any additional Events of Default (and, if such
Events of Default are to be applicable to less than all series of Securities,
stating that such Events of Default are only applicable to specified series);

                  (e) to cure any ambiguity or to correct or supplement any
provision contained herein or in any supplemental indenture which may be
defective or inconsistent with any other provision contained herein or in any
supplemental indenture; or to make such other provisions in regard to matters or
questions arising under this Indenture or under any supplemental indenture as
the Board of Directors may deem necessary or desirable and which shall not
materially and adversely affect the interests of the Holders of any Securities
or the Coupons, if any, appertaining thereto;

                  (f) to establish the form or terms of Securities of any series
and the Coupons, if any, appertaining thereto as permitted by Section 3.1;

                  (g) to permit payment in the United States of principal,
premium or interest on Unregistered Securities or of interest on Coupon
Securities;

                  (h) to provide for the issuance of uncertificated Securities
of one or more series in addition to or in place of certificated Securities;

                  (i) to evidence and provide for the acceptance of appointment
hereunder by a successor trustee with respect to the Securities of one or more
series or 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
7.11; and

                  (j) to change or eliminate any of the provisions of this
Indenture; provided, however, that any such change or elimination may only be
effected when no Outstanding Security of any series created prior to the
execution of such supplemental indenture is entitled to the benefit of such
provision.

                                      -63-
<PAGE>   71
                  The Trustee with respect to any series of Securities affected
by such supplemental indenture is hereby authorized to join with the Issuer [and
each of the Guarantors]* in the execution of any such supplemental indenture, to
make any further appropriate agreements and stipulations which may be therein
contained and to accept the conveyance, transfer, assignment, mortgage or pledge
of any property thereunder, but the Trustee 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.

                  Any supplemental indenture authorized by the provisions of
this Section may be executed without the consent of the Holders of any of the
Securities at the time Outstanding, notwithstanding any of the provisions of
Section 10.2.

                  SECTION 10.2. SUPPLEMENTAL INDENTURES WITH CONSENT OF
SECURITYHOLDERS. With the consent (evidenced as provided in Article Eight) of
the Holders of not less than a majority in aggregate principal amount of the
Securities at the time Outstanding of all series affected by such supplemental
indenture (voting as one class), the Issuer, when authorized by a Board
Resolution, [each of the Guarantors]* and the Trustee for the Securities of each
such series may, from time to time and at any time, enter into an indenture or
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force at the date of execution thereof) for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Holders of the Securities of each such
series; provided that no such supplemental indenture shall (a) change the Stated
Maturity of any Security of such series, reduce the principal amount thereof,
reduce the rate or change the time of payment of interest thereon, reduce any
amount payable on redemption thereof, reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon an
acceleration of the maturity thereof pursuant to Section 6.1 or the amount
thereof provable in bankruptcy pursuant to Section 6.2, adversely impair or
affect the right of repayment or repurchase, if any, at the option of the
Holder, reduce the amount of, or postpone the date fixed for, any payment under
any sinking fund or analogous provisions for any Security, or change any Place
of Payment or the coin or currency or currency unit in which any Security or the
interest thereon is payable or change or eliminate the right of a Securityholder
to institute suit for the payment thereof, without the consent of the Holder of
each Security of such series so affected, or (b) reduce the aforesaid percentage
of Securities of such series, the consent of the Holders of which is required
for any such supplemental indenture (or waiver of compliance with certain
provisions of this Indenture or certain defaults hereunder and their
consequences), without the consent of the Holder of each Security so affected,
or (c) modify any of the provisions of this Section 10.2 or Section 6.10, except
to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of
each Outstanding Security affected thereby.

                  Upon the request of the Issuer, accompanied by a Board
Resolution, authorizing the execution of any such supplemental indenture and
upon the filing with the Trustee with respect to any series of Securities
affected by such supplemental indenture, of evidence of the

----------
* This language to be included if debt securities are guaranteed.

                                      -64-
<PAGE>   72
consent of Securityholders as aforesaid and other documents, if any, required by
Section 8.1, the Trustee shall join with the Issuer [and each of the
Guarantors]* in the execution of such supplemental indenture unless such
supplemental indenture affects the Trustee's own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its
discretion, but shall not be obligated to, enter into such supplemental
indenture.

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

                  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 Securities and the
Coupons, if any, appertaining thereto, or which modifies the rights of the
Holders of Securities of such series or any Coupons appertaining thereto with
respect to such covenant or other provision, shall be deemed not to affect the
rights under this Indenture of the Holders of Securities of any other series or
any Coupons appertaining thereto.

                  For purposes of this Section 10.2, if the Securities of any
series are issuable upon the exercise of warrants, each holder of an unexercised
and unexpired warrant with respect to such series shall be deemed to be a Holder
of Outstanding Securities of such series in the amount issuable upon the
exercise of such warrant. For such purposes, the ownership of any such warrant
shall be determined by the Issuer in a manner consistent with customary
commercial practices. The Trustee for such series shall be entitled to rely on
an Officers' Certificate as to the principal amount of Securities of such series
in respect of which consents shall have been executed by holders of such
warrants.

                  SECTION 10.3. NOTICE OF SUPPLEMENTAL INDENTURE. Promptly after
the execution by the Issuer [, each of the Guarantors]* and the Trustee of any
supplemental indenture pursuant to the provisions of Section 10.2, the Issuer
shall mail a notice thereof by first-class mail to the Holders of Securities of
each series and of Coupons, if any, appertaining thereto affected thereby at
their addresses as they shall appear on the registry books of the Issuer,
setting forth in general terms the substance of such supplemental indenture. Any
failure of the Issuer to mail such notice, or any defect therein, shall not,
however, in any way impair or affect the validity of any such supplemental
indenture.

                  SECTION 10.4. EFFECT OF SUPPLEMENTAL INDENTURE. Upon the
execution of any supplemental indenture pursuant to the provisions of this
Article Ten, this Indenture shall be and be deemed to be modified and amended in
accordance therewith, but only with regard to the Securities of each series
affected by such supplemental indenture, and the respective rights, limitations
of rights, obligations, duties and immunities under this Indenture of the
Trustee for the Securities of such series, the Issuer [, each of the
Guarantors]* and the Holders of any Securities of such series or any Coupons
appertaining thereto affected thereby shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and

----------
* This language to be included if debt securities are guaranteed.

                                      -65-
<PAGE>   73
amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes with regard to the Securities of such series and any
Coupons appertaining thereto.

                  SECTION 10.5. DOCUMENTS TO BE GIVEN TO TRUSTEE. The Trustee,
subject to the provisions of Sections 7.1 and 7.2, may receive an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant to this Article complies with the
applicable provisions of this Indenture.

                  SECTION 10.6. NOTATION ON SECURITIES AND COUPONS IN RESPECT OF
SUPPLEMENTAL INDENTURES. Securities of any series (including any Coupons
appertaining thereto) affected by any supplemental indenture which are
authenticated and delivered after the execution of such supplemental indenture
pursuant to the provisions of this Article Ten may bear a notation in form
approved by the Trustee for such series as to any matter provided for in such
supplemental indenture. If the Issuer or the Trustee shall so determine, new
Securities of any series and any Coupons appertaining thereto so modified as to
conform, in the opinion of the Trustee and the Issuer, to any modification of
this Indenture contained in any such supplemental indenture may be prepared by
the Issuer, authenticated by the Trustee and delivered in exchange for the
Securities of such series and any Coupons appertaining thereto then Outstanding.

                  SECTION 10.7. ISSUANCE OF SECURITIES BY SUCCESSOR CORPORATION.
In case the Issuer shall be consolidated with or merged into any other
corporation or corporations, or shall convey or transfer all or substantially
all its property as an entirety, the successor corporation formed by such
consolidation or into which the Issuer shall have been merged or which shall
have received a conveyance or transfer as aforesaid, upon causing to be executed
and delivered the supplemental indenture referred to in Section 10.1(b), shall
succeed to and be substituted for the Issuer with the same effect as if it had
been named herein as the party of the first part and in all the Securities and
the Coupons, if any, appertaining thereto as obligor, and thereupon and
thereafter such successor corporation may cause to be executed, either in its
own name or in the name of ITT Corporation, and delivered to the appropriate
Trustee for authentication, any or all of the Securities and the Coupons, if
any, appertaining thereto issuable hereunder; and, upon the order of such
successor corporation in lieu of the Issuer, and subject to all the terms,
conditions and restrictions in this Indenture prescribed, the Trustee for the
Securities of the appropriate series shall authenticate and deliver any
Securities of such series and the Coupons, if any, appertaining thereto which
shall have been previously executed and delivered by the Issuer to the Trustee
for authentication and any Securities and the Coupons, if any, appertaining
thereto which such successor corporation shall thereafter, in accordance with
the provisions of this Indenture, cause to be executed and delivered to the
Trustee for such purpose. Such change in phraseology and form (but not in
substance) may be made in such Securities and the Coupons, if any, appertaining
thereto as may be appropriate in view of such consolidation or merger or
conveyance or transfer. All such Securities and the Coupons, if any,
appertaining thereto when issued by such successor corporation shall in all
respects have the same legal rank as the Securities and the Coupons, if any,
appertaining thereto theretofore or thereafter authenticated and delivered in
accordance with the terms of this Indenture and issued, as though all of such
Securities and Coupons, if any, appertaining thereto had been issued at the date
of the execution hereof.

                                      -66-
<PAGE>   74
                                  ARTICLE XI.

                               SUCCESSOR COMPANIES

                  SECTION 11.1. MERGER AND CONSOLIDATION. The Issuer shall not
consolidate with or merge with or into, or convey, transfer or lease its
properties and assets as, or substantially as, an entirety to, any Person,
unless:

                  (a) the resulting, surviving or transferee Person (the
"Successor Company") shall expressly assume, by a supplemental indenture,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Issuer under all the Securities of each series and this
Indenture; and

                  (b) immediately after giving effect to such transaction, no
Event of Default shall have occurred and be continuing.

                  The Successor Company shall succeed to, and be substituted
for, and may exercise every right and power of, the Issuer under this Indenture.
The predecessor Issuer in the case of a transfer or lease of its properties and
assets as, or substantially as, an entirety shall be discharged from its
obligations under the Securities and this Indenture.

                  SECTION 11.2. OPINION OF COUNSEL TO BE GIVEN TO TRUSTEE. The
Trustee, subject to the provisions of Section 7.1, may receive an Opinion of
Counsel as conclusive evidence that any such consolidation, merger, conveyance,
transfer or lease complies with the provisions of this Article Eleven.

                                  ARTICLE XII.

            SATISFACTION AND DISCHARGE OF INDENTURE; UNCLAIMED MONEYS

                  SECTION 12.1. SATISFACTION AND DISCHARGE OF SECURITIES OF ANY
SERIES. Except as otherwise provided for the Securities of any series
established pursuant to Section 3.1(r), the Issuer shall be deemed to have
satisfied and discharged the entire indebtedness on all the Outstanding
Securities of any particular series and the Coupons, if any, appertaining
thereto, and the Trustee, at the expense of the Issuer and upon Issuer Request,
shall execute proper instruments acknowledging satisfaction and discharge of
such indebtedness, when

                  (a) either:

                  (i) all Outstanding Securities of such series theretofore
         authenticated and delivered and the Coupons, if any, appertaining
         thereto (other than (a) any Securities of such series or Coupons which
         have been destroyed, lost or stolen and which have been replaced or
         paid as provided in Section 3.7 and (b) Outstanding Securities of such
         series or Coupons for whose payment money has theretofore been
         deposited in trust or segregated and held in trust by the Issuer and
         thereafter repaid to the Issuer or discharged from such trust, as
         provided in Sections 4.4, 12.4 and 12.5) have been delivered to the
         Trustee for cancellation; or

                                      -67-
<PAGE>   75
                  (ii) with respect to all Outstanding Securities of such series
         and the Coupons, if any, appertaining thereto, described in (i) above
         not theretofore delivered to the Trustee for cancellation:

                           (A) the Issuer has deposited or caused to be
                  deposited with the Trustee as trust funds in trust an amount
                  in the currency or currency unit in which the Securities of
                  such series are denominated (except as otherwise specified
                  pursuant to Section 3.1 for the Securities of such series and
                  except as provided in Sections 3.12(b), 3.12(e) and 3.12(f)
                  hereof) sufficient to pay and discharge the entire
                  indebtedness on all such Outstanding Securities of such series
                  for principal (and premium, if any) and interest to the Stated
                  Maturity or any Redemption Date as contemplated by Section
                  12.3, as the case may be; or

                           (B) the Issuer has deposited or caused to be
                  deposited with the Trustee as obligations in trust such amount
                  of Government Obligations as will, in a written opinion of
                  independent public accountants delivered to the Trustee,
                  together with the predetermined and certain income to accrue
                  thereon (without consideration of any reinvestment thereof),
                  be sufficient to pay and discharge when due the entire
                  indebtedness on all such Outstanding Securities of such series
                  and the Coupons, if any, appertaining thereto, for unpaid
                  principal (and premium, if any) and interest to the Stated
                  Maturity or any Redemption Date as contemplated by Section
                  12.3, as the case may be.

                  (b) the Issuer has paid or caused to be paid all other sums
payable with respect to the Outstanding Securities of such series and the
Coupons, if any, appertaining thereto;

                  (c) the Issuer has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein provided for relating to due satisfaction and discharge of the
entire indebtedness on all Outstanding Securities of any such series and the
Coupons, if any, appertaining thereto, have been complied with; and

                  (d) if the Securities of such series and the Coupons, if any,
appertaining thereto are not to become due and payable at their Stated Maturity
within one year of the date of such deposit or are not to be called for
redemption within one year of the date of such deposit under arrangements
satisfactory to the Trustee as of the date of such deposit, then the Issuer
shall have given, not later than the date of such deposit, notice of such
deposit to the Holders of the Securities of such series and the Coupons, if any,
appertaining thereto.

                  Upon the satisfaction of the conditions set forth in this
Section 12.1 with respect to all the Outstanding Securities of any series and
the Coupons, if any, appertaining thereto, 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 Issuer,
and the Holders of the Securities of such series shall look for payment only to
the funds or obligations deposited with the Trustee pursuant to Section
12.1(a)(ii); provided, however, that the Issuer shall not be discharged from (a)
any payment obligations in respect of Securities of such series which are deemed
not to be Outstanding under clause (c) of the definition thereof and the
Coupons, if any, appertaining thereto, if such obligations continue to be valid
obligations of the

                                      -68-
<PAGE>   76
Issuer under applicable law, (b) any obligations under Sections 7.6 and 7.10,
and (c) any obligations under Section 3.6 or 3.7 (except that Securities of such
series issued upon registration of transfer or exchange or Securities or
Coupons, if any, appertaining thereto issued in lieu of mutilated, lost,
destroyed or stolen Securities or Coupons shall not be obligations of the
Issuer) and Section 5.1; and provided, further, 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 Issuer within 91 days after the deposit, the entire
indebtedness on all Securities of such series and the Coupons, if any,
appertaining thereto shall not be discharged, and in such event the Trustee
shall return such deposited funds or obligations as it is then holding to the
Issuer upon Issuer Request. Notwithstanding the satisfaction of the conditions
set forth in this Section 12.1 with respect to all the Securities of any series
not denominated in Dollars, upon the happening of any events specified in
Section 3.12(e) the Issuer shall be obligated to make the payments in Dollars
required by Section 3.12(e) to the extent that the Trustee is unable to convert
any Foreign Currency or currency unit in its possession pursuant to Section
12.1(a)(ii) into the Dollar Equivalent of the Foreign Currency or the Dollar
Equivalent of the Currency Unit, as the case may be. The Trustee shall return to
the Issuer any nonconverted funds or securities in its possession after such
payments have been made.

                  SECTION 12.2. SATISFACTION AND DISCHARGE OF INDENTURE. Upon
compliance by the Issuer with the provisions of Section 12.1 as to the
satisfaction and discharge of each series of Securities issued hereunder and the
Coupons, if any, appertaining thereto, and if the Issuer has paid or caused to
be paid all other sums payable under this Indenture, this Indenture shall cease
to be of any further effect (except as otherwise provided herein). Upon Issuer
Request and receipt of an Opinion of Counsel and an Officers' Certificate (and
at the expense of the Issuer), the Trustee shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture.

                  Notwithstanding the satisfaction and discharge of this
Indenture, any obligations of the Issuer under Sections 3.6, 3.7, 5.1, 7.6 and
7.10, any obligations of the Issuer under Section 3.12(d) to deliver an Exchange
Rate Officer's Certificate and the obligations of the Trustee under Section 12.3
shall survive.

                  SECTION 12.3. APPLICATION OF TRUST MONEY. All money and
obligations deposited with the Trustee pursuant to Section 12.1 shall be held
irrevocably in trust and shall be made under the terms of an escrow trust
agreement in form and substance satisfactory to the Trustee. Such money and
obligations shall be applied by the Trustee, in accordance with the provisions
of the Securities, this Indenture and such escrow trust agreement, to the
payment, either directly or through any Paying Agent (including the Issuer
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal of (and premium, if any) and interest, if
any, on the Securities and the Coupons, if any, appertaining thereto for the
payment of which such money and obligations have been deposited with the
Trustee. If Securities of any series are to be redeemed prior to their Stated
Maturity, whether pursuant to an optional redemption provision or in accordance
with any mandatory sinking fund requirement, the Issuer 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 Issuer.

                                      -69-
<PAGE>   77
                  SECTION 12.4. REPAYMENT OF MONEYS HELD BY PAYING AGENT. In
connection with the satisfaction and discharge of this Indenture with respect to
Securities of any series and the Coupons, if any, appertaining thereto, all
moneys with respect to such series then held by any Paying Agent for such series
under the provisions of this Indenture with respect to such series of Securities
shall, upon demand of the Issuer, be repaid to it or paid to the Trustee and
thereupon such Paying Agent shall be released from all further liability with
respect to such moneys.

                  SECTION 12.5. RETURN OF MONEYS HELD BY TRUSTEE AND PAYING
AGENT UNCLAIMED FOR TWO YEARS. Any moneys deposited with or paid to the Trustee
for the Securities of any series and the Coupons, if any, appertaining thereto,
or any Paying Agent for the payment of the principal of, premium, if any, or
interest, if any, on Securities of any series and the Coupons, if any,
appertaining thereto and which shall not be applied but shall remain unclaimed
by the Holders of Securities of such series and the Coupons, if any,
appertaining thereto for two years after the date upon which such payment shall
have become due and payable, shall be repaid to the Issuer by the Trustee on
demand, and the holder of any of such Securities or the Coupons, if any,
appertaining thereto entitled to receive such payment shall thereafter look only
to the Issuer [, or the Guarantors, as the case may be,]* for the payment
thereof; provided, however, that the Trustee, before making any such repayment,
shall at the expense of the Issuer cause to be published once a week for two
successive weeks (in each case on any day of the week) in an Authorized
Newspaper, a notice that said moneys have not been so applied and that after a
date named therein any unclaimed balance of said moneys then remaining will be
returned to the Issuer.

                                 ARTICLE XIII.

                            MISCELLANEOUS PROVISIONS

                  SECTION 13.1. INCORPORATORS, STOCKHOLDERS, OFFICERS AND
DIRECTORS OF ISSUER [AND GUARANTORS]* EXEMPT FROM INDIVIDUAL LIABILITY. No
recourse under or upon any obligation, covenant or agreement contained in this
Indenture, or in any Security or Coupon, or because of any indebtedness
evidenced thereby, shall be had against any incorporator, as such, or against
any past, present or future stockholder, officer or director, [member, manager
or partner,]* as such, of the Issuer [or any of the Guarantors]* or any
successor to the Issuer [or any of the Guarantors, as the case may be,]* either
directly, or through the Issuer [or any of the Guarantors]* or any successor [to
the Issuer or any of the Guarantors, as the case may be]*, under any rule of
law, statute or constitutional provision by the enforcement of any assessment or
by any legal or equitable proceeding or otherwise, all such liability being
expressly waived and released by the acceptance of the Securities or Coupons, by
the Holders thereof and as part of the consideration for the issue of such
Securities and Coupons, if any, appertaining thereto.

----------
* This language to be included if debt securities are guaranteed.

                                      -70-
<PAGE>   78
                  SECTION 13.2. PROVISIONS OF INDENTURE FOR THE SOLE BENEFIT OF
PARTIES AND SECURITYHOLDERS. Nothing in this Indenture or in the Securities or
the Coupons, expressed or implied, shall give or be construed to give to any
person, other than the parties hereto and their successors, the Holders of the
Securities and the Holders of the Coupons, any legal or equitable right, remedy
or claim under this Indenture or under any covenant or provision herein
contained, all such covenants and provisions being for the sole benefit of the
parties hereto and their successors, of the Holders of the Securities and of the
Holders of the Coupons.

                  SECTION 13.3. SUCCESSORS AND ASSIGNS OF ISSUER BOUND BY
INDENTURE. All the covenants, stipulations, promises and agreements in this
Indenture contained by or on behalf of the Issuer shall bind its successors and
assigns, whether so expressed or not.

                  SECTION 13.4. NOTICES TO HOLDERS; WAIVER. Where this Indenture
provides for notice to Holders of any event, (a) if any of the Securities
affected by such event are Fully Registered Securities, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed by first class mail, postage prepaid, to such Holders as their names
and addresses appear in the Securities Register within the time prescribed and
(b) if any of the Securities affected by such event are Unregistered Securities
or Coupon Securities, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed by first class mail, postage
prepaid, to such Holders in the manner and to the extent provided in Section
5.4, and if published in an Authorized Newspaper or Newspapers in such city or
cities as may be provided elsewhere in this Indenture or specified as
contemplated by Section 3.1 on a Business Day at least twice, the first such
publication to be not earlier than the earliest date and not later than the
latest date prescribed for the giving of such notice. 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 on such waiver. In any
case where notice to Holders is given by mail, neither the failure to mail such
notice, nor any defect in any notice so mailed to any particular Holder shall
affect the sufficiency of such notice with respect to other Holders, and any
notice which is mailed in the manner herein provided shall be conclusively
presumed to have been duly given. In the event of suspension of regular mail
service or for any other reason it shall be impracticable to give such notice to
Registered Holders by mail, then such a notification as shall be made to
Registered Holders with the approval of the Trustee shall constitute a
sufficient notification for every purpose hereunder. In case by reason of the
suspension of publication of any Authorized Newspaper or by reason of any other
cause it shall be impracticable to publish any notice to Holders of Unregistered
Securities or of Coupons as provided above then said notification to Holders of
Unregistered Securities or of Coupons as shall be given with the approval of the
Trustee shall constitute sufficient notice to such Holders for every purpose
hereunder.

                  SECTION 13.5. ADDRESSES FOR NOTICES. Any notice or demand
which by any provision of this Indenture is required or permitted to be given or
served by the Trustee for the Securities of any series or by the Holders of
Securities of any series or of any Coupons appertaining thereto on the Issuer
may be given or served by registered mail addressed (until another address is
filed by the Issuer with the Trustee) as follows: Starwood Hotels & Resorts
Worldwide, Inc., Attention of the General Counsel, 1111 Westchester Avenue,
White Plains, NY

                                      -71-
<PAGE>   79

10604. [Any notice or demand which by any provision of this Indenture is
required or permitted to be given or served by the Trustee for the Securities of
any series or by the Holders of Securities of any series or of any Coupons
appertaining thereto on any Guarantor may be given or served by registered mail
addressed (until another address is filed by such Guarantor with the Trustee) as
follows: Starwood Hotels & Resorts Worldwide, Inc., Attention of the General
Counsel, 1111 Westchester Avenue, White Plains, NY 10604.]* Any notice,
direction, request or demand by any Holder of Securities of any series to or
upon the Trustee for such series or of any Coupons appertaining thereto shall be
deemed to have been sufficiently given or made, for all purposes, if given or
made at the Corporate Trust Office of such Trustee, and, in respect of
Unregistered Securities or Coupons, at the Corporate Trust Office of the Trustee
referred to in Section 4.2. Any notice or demand required or permitted under
this Indenture shall be in the English language, except that any published
notice may be in the official language of the country of publication.

                  SECTION 13.6. OFFICERS' CERTIFICATES AND OPINIONS OF COUNSEL;
STATEMENTS TO BE CONTAINED THEREIN. Upon any application or demand by the Issuer
[or any of the Guarantors]* to the Trustee to take any action under any of the
provisions of this Indenture, the Issuer [or such Guarantor, as the case may
be,]* shall furnish to the Trustee an Officers' Certificate stating that all
conditions precedent (including any covenants compliance with which constitutes
a condition precedent) provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent (including any covenants
compliance with which constitutes a condition precedent) have been complied
with, except that in the case of any such application or demand as to which the
furnishing of such documents is specifically required by any provision of this
Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

                  Each certificate or opinion provided for in this Indenture and
delivered to the Trustee with respect to compliance with a condition or covenant
provided for in this Indenture (other than annual certificates provided pursuant
to Section 4.8) shall include (a) a statement that the person making such
certificate or opinion has read such covenant or condition, (b) 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, (c) a statement that, in the opinion of such person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with and (d) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with.

                  Any certificate, statement or opinion of an officer of the
Issuer [or such Guarantor, as the case may be,]* may be based, insofar as it
relates to legal matters, upon a certificate or opinion of or representations by
counsel, unless such officer knows that the certificate or opinion or
representations with respect to the matters upon which his certificate,
statement or opinion may be based as aforesaid are erroneous, or in the exercise
of reasonable

----------

* This language to be included if debt securities are guaranteed.

                                      -72-
<PAGE>   80
care should know that the same are erroneous. Any certificate, statement or
opinion of counsel may be based, insofar as it relates to factual matters,
information with respect to which is in the possession of the Issuer [or such
Guarantor, as the case may be,]* upon the certificate, statement or opinion of
or representations by an officer or officers of the Issuer [or such Guarantor,
as the case may be,]* unless such counsel knows that the certificate, statement
or opinion or representations with respect to the matters upon which his
certificate, statement or opinion may be based as aforesaid are erroneous, or in
the exercise of reasonable care should know that the same are erroneous.

                  Any certificate, statement or opinion of an officer of the
Issuer [or such Guarantor, as the case may be,]* or of counsel may be based,
insofar as it relates to accounting matters, upon a certificate or opinion of or
representations by an accountant or firm of accountants in the employ of the
Issuer [or such Guarantor, as the case may be,]* unless such officer or counsel,
as the case may be, knows that the certificate or opinion or representations
with respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous, or in the exercise of
reasonable care should know that the same are erroneous.

                  Any certificate or opinion of any independent firm of public
accountants filed with the Trustee shall contain a statement that such firm is
independent.

                  SECTION 13.7. CROSS REFERENCES. All references herein to
"Articles" and other subdivisions are to the corresponding Articles or other
subdivisions of this Indenture, and the words "herein", "hereof", "hereby",
"hereunder", "hereinbefore" and "hereinafter" and other words of similar import
refer to this Indenture generally and not to any particular Article, Section or
other subdivision hereof.

                  SECTION 13.8. LEGAL HOLIDAYS. In any case where the date of
maturity of principal, premium, if any, or interest, if any, on the Securities
or Coupons or the date fixed for redemption or repayment of any Security shall
not be a Business Day at any Place of Payment with respect to Securities of that
series then (notwithstanding any other provisions of this Indenture or of the
Security or Coupons) payment of such principal, premium, if any, or interest, if
any, on the Securities and Coupons need not be made on such date at such Place
of Payment but may be made on the next succeeding Business Day at such Place of
Payment with the same force and effect as if made on the date of maturity or the
date fixed for redemption or repayment, as the case may be, and no interest
shall accrue for the period from and after such date.

                  SECTION 13.9. MONEYS OF DIFFERENT CURRENCIES TO BE SEGREGATED.
The Trustee shall segregate all moneys, funds and accounts held by the Trustee
hereunder in one currency from any money, funds or accounts in any other
currencies, notwithstanding any provision herein which would otherwise permit
the Trustee to commingle such amounts.

----------
* This language to be included if debt securities are guaranteed.

                                      -73-
<PAGE>   81
                  SECTION 13.10. PAYMENT TO BE IN PROPER CURRENCY. Each
reference in any Security, or in the Board Resolution relating thereto, to any
currencies or currency units shall be of the essence. Subject to Section 3.12,
the Issuer agrees, to the fullest extent that it may effectively do so under
applicable law, that its obligation to make any payment of principal of (and
premium, if any) and interest on any Security or any Coupon (i) shall not be
discharged or satisfied by any tender by the Issuer, or recovery by the Trustee,
either pursuant to any judgment (whether or not entered into in accordance with
Section 6.13) or otherwise, in any currencies or currency units other than the
currencies or currency units then due and payable (the "Required Currency"),
except to the extent that such tender or recovery shall result in the actual
receipt, by the payee, of the full amount of the Required Currency expressed to
be payable in respect of such payments, (ii) shall be enforceable as an
alternative or additional cause of action for the purpose of recovering in the
Required Currency the amount, if any, by which such actual receipt shall fall
short of the full amount of the Required Currency so expressed to be payable and
(iii) shall not be affected by judgment being obtained for any other sum due
under this Indenture. Except as permitted under Section 3.12, if any such tender
or recovery is in a currency other than the Required Currency, the Trustee may
take such actions as it considers appropriate to exchange such currency for the
Required Currency. The costs and risks of any such exchange, including without
limitation the risks of delay and exchange rate fluctuation, shall be borne by
the Issuer, and the Issuer shall remain fully liable for any shortfall or
delinquency in the full amount of Required Currency then due and payable, and in
no circumstances shall the Trustee be liable therefor. The Issuer hereby waives
any defense of payment based upon any such tender or recovery which is not in
the Required Currency, or which, when exchanged for the Required Currency by the
Trustee, is less than the full amount of Required Currency then due and payable.

                  SECTION 13.11. CONFLICT OF ANY PROVISION OF INDENTURE WITH
TRUST INDENTURE ACT. If and to the extent that any provision of this Indenture
limits, qualifies or conflicts with the duties imposed by any of Sections 310 to
317, inclusive, of the Trust Indenture Act through operation of Section 318(c)
thereof, such imposed duties shall control.

                  SECTION 13.12. NEW YORK LAW TO GOVERN. This Indenture and each
Security shall be deemed to be a contract under the laws of the State of New
York, and for all purposes shall be construed in accordance with the laws of
said State, except as may otherwise be required by mandatory provisions of law.

                  SECTION 13.13. COUNTERPARTS. This Indenture may be executed in
any number of counterparts, each of which shall be an original, but such
counterparts shall together constitute but one and the same instrument.

                  SECTION 13.14. EFFECT OF HEADINGS. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not
affect the construction hereof.

                  SECTION 13.15. SEPARABILITY CLAUSE. In case any provision of
this Indenture or of the Securities or any Coupons appertaining thereto, if any,
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.

                                      -74-
<PAGE>   82
                                  ARTICLE XIV.

                            REDEMPTION OF SECURITIES

                  SECTION 14.1. APPLICABILITY OF ARTICLE. The provisions of this
Article shall be applicable to the Securities of any series which are redeemable
before their maturity or to any sinking fund for the retirement of Securities of
a series except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

                  SECTION 14.2. NOTICE OF REDEMPTION; SELECTION OF SECURITIES.
In case the Issuer shall desire to exercise the right to redeem all or, as the
case may be, any part of the Securities of any series (or all or part of the
Unregistered Securities of such series or all or any part of the Registered
Securities of such series, if the terms and conditions of redemption shall be
different with respect to Unregistered Securities and Registered Securities of
such series as specified in the terms of such Securities established pursuant to
Section 3.1) in accordance with their terms, it shall fix a Redemption Date and
shall provide notice of such redemption to the Trustee, in the case such
Securities are to be redeemed as a whole, 45 days, and, in the case such
Securities are to be redeemed in part, 60 days, prior to such Redemption Date,
and at least 30 and not more than 60 days prior to such Redemption Date to the
Holders of Securities of such series so to be redeemed as a whole or in part in
the manner provided in Section 13.4. The notice provided in the manner herein
specified shall be conclusively presumed to have been duly given, whether or not
the Holder receives such notice. In any case, failure to give such notice or any
defect in the notice to the Holder of any Security of a series designated for
redemption as a whole or in part shall not affect the validity of the
proceedings for the redemption of any other Security of such series.

                  Each such notice of redemption shall specify the Redemption
Date, the Redemption Price, the Place or Places of Payment, that the Securities
of such series are being redeemed at the option of the Issuer pursuant to
provisions contained in the terms of the Securities of such series or in a
supplemental indenture establishing such series, if such be the case, together
with a brief statement of the facts permitting such redemption, that payment
will be made upon presentation and surrender of the applicable Securities, that,
unless otherwise specified in such notice, Coupon Securities of any series, if
any, surrendered for payment must be accompanied by all Coupons, if any,
maturing subsequent to the date fixed for redemption, failing which the amount
of any such missing Coupon or Coupons will be deducted from the sum due for
payment, that any interest accrued to the Redemption Date will be paid as
specified in said notice and that on and after said Redemption Date any interest
thereon or on the portions thereof to be redeemed will cease to accrue. If less
than all the Securities of any series are to be redeemed, the notice of
redemption shall specify the numbers of the Securities of such series to be
redeemed and, if only Unregistered Securities of any series are to be redeemed
and if such Unregistered Securities may be exchanged for Registered Securities,
the last date on which exchanges of Unregistered Securities for Registered
Securities not subject to redemption may be made. In case any Security of any
series is to be redeemed in part only, the notice of redemption shall state the
portion of the principal amount thereof to be redeemed and shall state that on
and after the Redemption Date, upon surrender of such Security and any Coupons
appertaining thereto, a new Security or Securities of such series in principal
amount equal to the unredeemed portion thereof and with appropriate Coupons will
be issued or, in the case of Securities

                                      -75-
<PAGE>   83
providing appropriate space for such notation, at the option of the Holders, the
Trustee, in lieu of delivering a new Security or Securities as aforesaid, may
make a notation on such Security of the payment of the redeemed portion thereof.

                  On or before (but at least one Business Day in the City of New
York before, in the case of payments made in a currency or currency unit other
than Dollars) the Redemption Date with respect to the Securities of any series
stated in the notice of redemption given as provided in this Section 14.2, the
Issuer will deposit with the Trustee or with one or more Paying Agents an amount
of money in the currency or currency unit in which the Securities of such series
and any Coupons appertaining thereto are payable (except as otherwise specified
as contemplated by Section 3.1 for the Securities of such series and except as
provided in Sections 3.12(b), 3.12(e) and 3.12(f) of this Indenture) sufficient
to redeem on such Redemption Date all the Securities or portions thereof so
called for redemption at the applicable Redemption Price, together with accrued
interest to such Redemption Date. If the Issuer is acting as its own Paying
Agent, it will segregate such amount and hold it in trust as provided in Section
4.4.

                  If fewer than all the Securities of a series are to be
redeemed (except in the case of a redemption in whole of the Unregistered
Securities, the Coupon Securities, the Registered Securities or the Fully
Registered Securities of such series), the Issuer will give the Trustee written
notice not less than 60 days prior to the Redemption Date as to the aggregate
principal amount of Securities to be redeemed and the Trustee shall select, not
more than 75 days prior to the Redemption Date and in such manner as in its sole
discretion it shall deem appropriate and fair, the Securities of such series or
portions thereof (in multiples of 1,000 in the currency or currency unit in
which the Securities of such series are denominated, except as otherwise set
forth in the applicable form of Security) to be redeemed.

                  SECTION 14.3. PAYMENT OF SECURITIES CALLED FOR REDEMPTION. If
notice of redemption has been given as above provided, the Securities or
portions of Securities of the series specified in such notice shall become due
and payable on the Redemption Date and at the place or places stated in such
notice at the applicable Redemption Price, together with any interest accrued to
such Redemption Date, and on and after said Redemption Date (unless the Issuer
shall default in the payment of such Securities at the applicable Redemption
Price, together with any interest accrued to said Redemption Date) any interest
on the Securities or portions of Securities of any series so called for
redemption shall cease to accrue. On presentation and surrender of such
Securities and all Coupons, if any, appertaining thereto at a Place of Payment
in such notice specified, such Securities and Coupons or the specified portions
thereof shall be paid and redeemed by the Issuer at the applicable Redemption
Price, together with any interest accrued thereon to the applicable Redemption
Date, in the currency or currency unit in which the Securities of such series
and the Coupons, if any, appertaining thereto are payable (except as otherwise
specified as contemplated by Section 3.1 for the Securities of such series and
except as provided in Sections 3.12(b), 3.12(e) and 3.12(f) of this Indenture).

                  If any Coupon Security surrendered for redemption shall not be
accompanied by all appurtenant Coupons maturing on or after the Redemption Date,
such 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 Issuer and the Trustee, if there
be furnished to them such security or indemnity as they may

                                      -76-
<PAGE>   84
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 a deduction shall have been made from the Redemption
Price, such Holder shall be entitled to receive the amount so deducted;
provided, however, that, unless otherwise provided pursuant to Section 3.1 or
Section 10.1(f), 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.

                  Upon presentation of any Security redeemed in part only and
the Coupons, if any, appertaining thereto, the Issuer shall execute and the
Trustee shall authenticate and deliver to or on the order of the Holder thereof,
at the expense of the Issuer, a new Security or Securities of such series and
the Coupons, if any, appertaining thereto, of authorized denominations, in
principal amount equal to the unredeemed portion of the Securities so presented.

                  SECTION 14.4. EXCLUSION OF CERTAIN SECURITIES FROM ELIGIBILITY
FOR SELECTION FOR REDEMPTION. Securities shall be excluded from eligibility for
selection for redemption if they are identified by registration or certificate
number, in the case of Registered Securities or Fully Registered Securities, or
by certificate number, in the case of Coupon Securities, in a written statement
signed by an authorized officer of the Issuer and delivered to the Trustee at
least 40 days prior to the last date on which notice of redemption may be given
as being owned by, and not pledged or hypothecated by, either (a) the Issuer or
(b) an entity specifically identified in such written statement directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Issuer. In the case of Coupon Securities, the Issuer will
provide evidence satisfactory to the Trustee of the ownership thereof.

                                  ARTICLE XV.

                                  SINKING FUNDS

                  SECTION 15.1. APPLICABILITY OF ARTICLE. The provisions of this
Article shall be applicable to any sinking fund for the retirement of Securities
of a series except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

                  The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series is hereinafter referred to as a "mandatory
sinking fund payment", and any payment in excess of such minimum amount provided
for by the terms of the Securities of any series is herein referred to as an
"optional sinking fund payment".

                  SECTION 15.2. SATISFACTION OF MANDATORY SINKING FUND PAYMENTS
WITH SECURITIES. In lieu of making all or any part of any mandatory sinking fund
payment with respect to any Securities of a series in cash, the Issuer may, at
its option, at any time no more than 16 months and no less than 45 days prior to
the date on which such sinking fund payment is due, deliver to the Trustee
Outstanding Securities of such series (together with the unmatured Coupons, if
any, appertaining thereto) theretofore purchased or otherwise acquired by the
Issuer, except Securities of such series which have been redeemed or previously
called for redemption through the application of mandatory or optional sinking
fund payments pursuant to the terms of the Securities of such series or which
have been acquired or redeemed out of the proceeds of sale

                                      -77-
<PAGE>   85
of a Principal Property, pursuant to clause (i) of Section 4.7, accompanied by
an Issuer Order instructing the Trustee to credit such obligations and stating
that the Securities of such series were originally issued by the Issuer by way
of bona fide sale or other negotiation for value; provided that such Securities
have not been previously so credited. Such Securities shall be received and
credited for such purpose by the Trustee at the Redemption Price specified in
such Securities for redemption through operation of the sinking fund and the
amount of such mandatory sinking fund payment shall be reduced accordingly.

                  SECTION 15.3. REDEMPTION OF SECURITIES FOR SINKING FUND. Not
less than 60 days prior to each sinking fund payment date for any series of
Securities, the Issuer will deliver to the Trustee a certificate signed by the
Treasurer or any Associate or Assistant Treasurer of the Issuer specifying the
amount of the next ensuing sinking fund payment for such series pursuant to the
terms of such series, the portion thereof, if any, which is to be satisfied by
payment of cash in the currency or currency unit in which the Securities of such
series and the Coupons, if any, appertaining thereto are payable (except as
otherwise specified as contemplated by Section 3.1 for the Securities of such
series and except as provided in Sections 3.12(b), 3.12(e) and 3.12(f) of this
Indenture) and the portion thereof, if any, which is to be satisfied by
delivering and crediting Securities of such series pursuant to Section 15.2 and
whether the Issuer intends to exercise its right to make a permitted optional
sinking fund payment with respect to such series. Such certificate shall be
irrevocable and upon its delivery the Issuer shall be obligated to make the cash
payment or payments (in the currency or currency unit described above) therein
referred to, if any, on or before the next succeeding sinking fund payment date.
In the case of the failure of the Issuer to deliver such certificate (or to
deliver the Securities and Coupons, if any, specified in such certificate within
the time period specified in Section 15.2), the sinking fund payment due on the
next succeeding sinking fund payment date for such series shall be paid entirely
in cash (in the currency or currency unit described above) and shall be
sufficient to redeem the principal amount of the Securities of such series
subject to a mandatory sinking fund payment without the right to deliver or
credit Securities as provided in Section 15.2 and without the right to make any
optional sinking fund payment, if any, with respect to such series.

                  Any sinking fund payment or payments (mandatory or optional)
made in cash (in the currency or currency unit described above) plus any unused
balance of any preceding sinking fund payments made with respect to the
Securities of any particular series shall be applied by the Trustee (or by the
Issuer if the Issuer is acting as its own Paying Agent) on the sinking fund
payment date on which such payment is made (or, if such payment is made before a
sinking fund payment date, on the sinking fund payment date following the date
of such payment) to the redemption of Securities of such series at the
Redemption Price specified in such Securities with respect to the sinking fund,
together with accrued interest, if any, to the applicable Redemption Date. Any
excess sinking fund moneys not so applied or allocated by the Trustee (or by the
Issuer if the Issuer is acting as its own Paying Agent) to the redemption of
Securities shall be added to the next sinking fund payment received by the
Trustee (or, if the Issuer is acting as its own Paying Agent, segregated and
held in trust as provided in Section 4.4) for such series and, together with
such payment (or such amount so segregated), shall be applied in accordance with
the provisions of this Section 15.3. Any and all sinking fund moneys with
respect to the Securities of any particular series held by the Trustee (or, if
the Issuer is acting as its own Paying Agent, segregated and held in trust as
provided in Section 4.4) on the last sinking fund payment date with respect to
Securities of such series and not held for the payment or redemption of

                                      -78-
<PAGE>   86
particular Securities of such series shall be applied by the Trustee (or by the
Issuer if the Issuer is acting as its own Paying Agent), together with other
moneys, if necessary, to be deposited (or segregated) sufficient for the
purpose, to the payment of the principal of the Securities of such series at
Maturity. The Trustee shall not convert any currency or currency unit in which
the Securities of such series are payable for the purposes of such sinking fund
application unless specifically requested to do so by the Issuer, and any such
conversion agreed to by the Trustee in response to such request shall be for the
account and at the expense of the Issuer and shall not affect the Issuer's
obligation to pay the Holders in the currency or currency unit to which such
Holders may be entitled.

                  The Trustee shall select or cause to be selected the
Securities to be redeemed upon such sinking fund payment date in the manner
specified in the last paragraph of Section 14.2, and the Issuer shall cause
notice of the redemption thereof to be given in the manner provided in Section
14.2, except that the notice of redemption shall also state that the Securities
are being redeemed by operation of the sinking fund and whether the sinking fund
payment is mandatory or optional, or both, as the case may be. Such notice
having been duly given, the redemption of such Securities shall be made upon the
terms and in the manner stated in Section 14.3.

                  On or before (but at least one New York Business Day before,
in the case of payments made in a currency or currency unit other than Dollars)
each sinking fund payment date, the Issuer shall pay to the Trustee (or, if the
Issuer is acting as its own Paying Agent, will segregate and hold in trust as
provided in Section 4.4) in cash (in the currency or currency unit described in
the first paragraph of this Section 15.3) a sum equal to the principal and any
interest accrued to the Redemption Date for Securities or portions thereof to be
redeemed on such sinking fund payment date pursuant to this Section.

                  Neither the Trustee nor the Issuer shall redeem any Securities
of a series with sinking fund moneys or mail any notice of redemption of
Securities of such series by operation of the sinking fund for such series
during the continuance of a default in payment of interest, if any, on any
Securities of such series or of any Event of Default (other than an Event of
Default occurring as a consequence of this paragraph) with respect to the
Securities of such series, except that, if the notice of redemption shall have
been provided in accordance with the provisions hereof, the Trustee (or the
Issuer if the Issuer is acting as its own Paying Agent) shall redeem such
Securities if cash (in the currency or currency unit described in the first
paragraph of this Section 15.3) sufficient for the purpose shall be deposited
with the Trustee (or segregated by the Issuer) for that purpose in accordance
with the terms of this Article. Except as aforesaid, any moneys (in the currency
or currency unit described in the first paragraph of this Section 15.3) in the
sinking fund for such series at the time when any such default or Event of
Default shall occur and any moneys (in the currency or currency unit described
in the first paragraph of this Section 15.3) thereafter paid into such sinking
fund shall, during the continuance of such default or Event of Default, be held
as security for the payment of the Securities of such series and the Coupons, if
any, appertaining thereto; provided, however, that, in case such Event of
Default or default shall have been cured or waived as provided herein, such
moneys (in the currency or currency unit described in the first paragraph of
this Section 15.3) shall thereafter be applied on the next sinking fund payment
date for the Securities of such series on which such moneys (in the currency or
currency unit described in the first paragraph of this Section 15.3) may be
applied pursuant to the provisions of this Section.

                                      -79-
<PAGE>   87
                                 ARTICLE XVI.*

                                    GUARANTEE

                  SECTION 16.1. GUARANTEE. Subject to the provisions of this
Article Sixteen, each Guarantor, jointly and severally, hereby unconditionally
and irrevocably guarantees to each Holder and to the Trustee and its successors
and assigns (a) the full and punctual payment of principal of, premium, if any,
and interest on the Securities when due, whether at maturity, by acceleration,
by redemption or otherwise, and all other monetary obligations of the Issuer
under the Indenture and the Securities and (b) the full and punctual performance
within the grace period set forth in Section 6.1(d) or (e) of the Indenture, if
applicable, of all other obligations of the Issuer under the Indenture and the
Securities (all the foregoing being hereinafter collectively called the
"Obligations"). Each Guarantor further agrees that the Obligations may be
extended or renewed, in whole or in part, without notice or further assent from
any of the Guarantors, and that each Guarantor will remain bound under this
Article Sixteen notwithstanding any extension or renewal of any Obligation.

                  Each Guarantor hereby waives presentation to, demand of
payment from and protest to the Issuer of any of the Obligations and also waives
notice of protest for nonpayment. Each Guarantor hereby waives notice of any
default under the Securities or the Obligations. The obligations of each
Guarantor hereunder shall not be affected by (a) the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any right or remedy
against the Issuer or any other person under the Indenture, the Securities or
any other agreement or otherwise; (b) any extension or renewal of any thereof;
(c) any rescission, waiver, amendment or modification of any of the terms or
provisions of the Indenture, the Securities or any other agreement; (d) the
release of any security held by any Holder or the Trustee for the Obligations or
any of them; (e) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Obligations; or (f) any change in the
ownership of any of the Guarantors.

                  Each Guarantor hereby further agrees that its respective
Guarantee herein constitutes a guaranty of payment, performance and compliance
when due, within applicable grace periods (and not a guarantee of collection),
and waives any right to require that any resort be had by any Holder or the
Trustee to any security held for payment of the Obligations.

                  The obligations of the Guarantors hereunder shall not be
subject to any reduction, limitation, impairment or termination for any reason,
including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or
unenforceability of the obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of the Guarantors herein shall not
be discharged or impaired or otherwise affected by the failure of any Holder or
the Trustee to assert any claim or demand or to enforce any remedy under the
Indenture, the Securities or any other agreement, by any waiver or modification
of any thereof, by any default, failure or delay, willful or otherwise, in the
performance of the Obligations, or by any other act or thing or omission or
delay to do any other act or thing which may or might in any manner or to any
extent vary the risk of any of the

----------

* This Article to be included if debt securities are guaranteed.

                                      -80-
<PAGE>   88
Guarantors or would otherwise operate as a discharge of any of the Guarantors as
a matter of law or equity.

                  Each Guarantor hereby further agrees that its respective
Guarantee herein shall continue to be effective or be reinstated, as the case
may be, if at any time payment, or any part thereof, of principal of or interest
on any Obligation is rescinded or must otherwise be restored by any Holder or
the Trustee upon the bankruptcy or reorganization of the Issuer or otherwise.

                  In furtherance of the foregoing and not in limitation of any
other right which any Holder or the Trustee has at law or in equity against any
of the Guarantors by virtue thereof, upon the failure of the Issuer to pay the
principal of or interest on any Obligation when and as the same shall become
due, whether at maturity, by acceleration, by redemption or otherwise, or to
perform or comply with any other Obligation, each Guarantor hereby promises to
and will, upon receipt of written demand by the Trustee, forthwith pay, or cause
to be paid, in cash, to the Holders or the Trustee an amount equal to the sum of
(i) the unpaid principal amount of such Obligations, (ii) accrued and unpaid
interest on such Obligations (but only to the extent not prohibited by law) and
(iii) all other monetary Obligations of the Issuer to the Holders and the
Trustee.

                  Each Guarantor hereby agrees that it shall not be entitled to
any right of subrogation in relation to the Holders in respect of any
Obligations guaranteed hereby until payment in full of all Obligations. Each
Guarantor hereby further agrees that, as between such Guarantor, on the one
hand, and the Holders and the Trustee, on the other hand, (x) the maturity of
the Obligations guaranteed hereby may be accelerated as provided in Article Six
for the purposes of such Guarantor's Guarantee herein, notwithstanding any stay,
injunction or other prohibition preventing such acceleration in respect of the
Obligations guaranteed hereby, and (y) in the event of any declaration of
acceleration of such Obligations as provided in Article Six, such Obligations
(whether or not due and payable) shall forthwith become due and payable by the
Guarantor for the purposes of this Section.

                  No stockholder, officer, director, member, partner, employee,
incorporator or organizer, past, present or future, of any Guarantor, as such,
shall have any personal liability under this Guarantee by reason of his, her or
its status as such stockholder, officer, director, member, partner, employee,
incorporator or organizer.

                  Each Guarantor that makes a payment or distribution under its
Guarantee shall be entitled to a contribution from each other Guarantor in an
amount pro rata, based on the net assets of each Guarantor, determined in
accordance with generally accepted accounting principles.

                  SECTION 16.2. LIMITATION OF GUARANTORS' LIABILITY. Each
Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is
the intention of all such parties that the Guarantee by such Guarantor pursuant
to its Guarantee not constitute a fraudulent transfer or conveyance for purposes
of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law. To effectuate the
foregoing intention, the Holders and such Guarantor hereby irrevocably agree
that the Obligations of such Guarantor under this Article Sixteen shall be
limited to the maximum amount as will, after

                                      -81-
<PAGE>   89
giving effect to all other contingent and fixed liabilities of such Guarantor
and after giving effect to any collections from or payments made by or on behalf
of any other Guarantor in respect of the Obligations of such other Guarantor
under this Article Sixteen , result in the Obligations of such Guarantor under
its Guarantee not constituting a fraudulent transfer or conveyance under
applicable federal or state law.

                  SECTION 16.3. RELEASES. (a) In the event that the indebtedness
on all Outstanding Securities shall have been deemed satisfied pursuant to
Section 12.1 hereof, each Guarantor shall thereby become released from and
relieved of its respective Guarantee and all its other obligations hereunder and
all provisions of this Indenture referencing or relating to any Guarantor, the
Guarantees and such other obligations shall be of no further force or effect,
and upon request of any Guarantor, the Trustee shall execute and deliver to such
Guarantor a satisfaction and discharge with respect to its respective Guarantee
and such other obligations and the Trustee shall execute any other documents
reasonably required to evidence the release of the Guarantor from its respective
Guarantee and such other obligations.

                  (b) In the event any of the Guarantors, other than Sheraton
Holding Corporation and The Sheraton Corporation, ceases to be a guarantor under
the Senior Credit Agreement, such entity shall also cease to be a Guarantor,
whether or not an Event of Default is then outstanding, and shall be deemed
released from all obligations under this Article Sixteen without any further
action required on the part of the Trustee or any Holder.

                  (c) Each of Sheraton Holding Corporation and The Sheraton
Corporation shall cease to be a Guarantor, and shall be deemed released from all
obligations under this Article Sixteen without any further action required on
the part of the Trustee or any Holder, upon the earlier of (i) the date on which
the Issuer ceases to be a guarantor under the Sheraton Indenture and (ii) the
later of (A) the date on which such Guarantor ceases to be a guarantor under the
Senior Credit Agreement and (B) the date on which the indebtedness on all
Outstanding Securities (as defined in the Sheraton Indenture) shall have been
deemed satisfied pursuant to Section 12.1 of the Sheraton Indenture.

                  SECTION 16.4. SUCCESSORS AND ASSIGNS. Except as provided in
Section 16.2, this Article Sixteen shall be binding upon each of the Guarantors
and their respective successors and assigns and shall inure to the benefit of
the successors and assigns of the Trustee and the Holders and, in the event of
any transfer or assignment of rights by any Holder or the Trustee, the rights
and privileges conferred upon that party in this Indenture and in the Securities
shall automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions of this Indenture.

                  SECTION 16.5. NO WAIVER, ETC. Neither a failure nor a delay on
the part of either the Trustee or the Holders in exercising any right, power or
privilege under this Article Sixteen shall operate as a waiver thereof, nor
shall a single or partial exercise thereof preclude any other or further
exercise of any right, power or privilege. The rights, remedies and benefits of
the Trustee and the Holders herein expressly specified are cumulative and not
exclusive of any other rights, remedies or benefits which either may have under
this Article Sixteen at law, in equity, by statute or otherwise.

                                      -82-
<PAGE>   90
                  SECTION 16.6. ADDITIONAL GUARANTORS. The Issuer shall cause
each Subsidiary of the Issuer that becomes a guarantor under the Senior Credit
Agreement after the date of the Indenture, to execute and deliver to the
Trustee, promptly upon any such addition, formation or acquisition (a) a
supplemental indenture in form and substance satisfactory to the Trustee which
subjects such Subsidiary to the provisions of this Indenture as a Guarantor, and
(b) an Opinion of Counsel to the effect that such supplemental indenture has
been duly authorized and executed by such Subsidiary and constitutes the legal,
valid, binding and enforceable obligation of such Subsidiary (subject to such
customary exceptions concerning fraudulent conveyance laws, creditors' rights
and equitable principles as may be acceptable to the Trustee in its discretion).

                                      -83-
<PAGE>   91
                  IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.

                                   STARWOOD HOTELS AND RESORTS
                                   WORLDWIDE, INC., as Issuer,

                                   by
                                      ------------------------------
                                        Vice President

                                                                   , as Trustee,
                                   --------------------------------

                                   by
                                      ------------------------------
                                       Authorized Officer

                                      -84-<PAGE>   1
                                                                    Exhibit 4.10

                                    INDENTURE

                                      AMONG

                   STARWOOD HOTELS & RESORTS WORLDWIDE, INC.,

                                   AS ISSUER,

                 THE GUARANTORS PARTY HERETO FROM TIME TO TIME,

                                 AS GUARANTORS,

                                       AND

                          ___________________________,

                                   AS TRUSTEE

                         DATED AS OF _____________, 200_

                               $ _________________

                    [ZERO COUPON] CONVERTIBLE [SENIOR] NOTES

<PAGE>   2
<TABLE>
<CAPTION>
                                                 TABLE OF CONTENTS
                                                                                                               Page
                                                                                                               ----
<S>                <C>                                                                                         <C>
                                                     ARTICLE 1

                                     DEFINITIONS AND INCORPORATION BY REFERENCE

   Section 1.01.   Definitions....................................................................................1
   Section 1.03.   Incorporation by Reference of Trust Indenture Act..............................................9
   Section 1.04.   Rules of Construction.........................................................................10

                                                     ARTICLE 2

                                                   THE SECURITIES

   Section 2.01.   Form of Securities............................................................................10
   Section 2.02.   Title and Terms...............................................................................11
   Section 2.03.   Denominations.................................................................................12
   Section 2.04.   Forms Generally...............................................................................12
   Section 2.05.   Execution, Authentication and Delivery........................................................12
   Section 2.06.   Registrar and Paying Agent....................................................................12
   Section 2.07.   Transfer and Exchange.........................................................................13
   Section 2.08.   Replacement Securities........................................................................14
   Section 2.09.   Outstanding Securities........................................................................14
   Section 2.10.   Temporary Securities; Exchange of Global Security for Definitive Securities...................15
   Section 2.11.   Book-entry Provisions for Global Securities...................................................15
   Section 2.12.   Cancellation..................................................................................16
   Section 2.13.   Special Transfer Provisions...................................................................16
   Section 2.14.   CUSIP Numbers.................................................................................19
   Section 2.15.   Legend on Restricted Securities...............................................................20
   Section 2.16.   Tax Treatment of Securities...................................................................20

                                                     ARTICLE 3

                                                     REDEMPTION

   Section 3.01.   Notices to Trustee............................................................................20
   Section 3.02.   Selection of Securities To Be Redeemed........................................................21
   Section 3.03.   Notice of Redemption..........................................................................21
   Section 3.04.   Effect of Notice of Redemption................................................................22
   Section 3.05.   Deposit of Redemption Price...................................................................22
   Section 3.06.   Securities Redeemed in Part...................................................................22
   Section 3.08.   Purchase of Securities at Option of the Holder................................................22
   Section 3.09.   Repurchase of Securities at Option of the Holder upon Change in Control.......................28
   Section 3.10.   Effect of Purchase Notice or Change in Control Purchase Notice................................30
   Section 3.11.   Deposit of Purchase Price or Change in Control Purchase Price.................................32
   Section 3.12.   Securities Purchased or Repurchased in Part...................................................32
   Section 3.13.   Covenant to Comply With Securities Laws Upon Purchase or Repurchase of Securities.............32

                                                         i
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<PAGE>   3

<TABLE>
<S>                <C>                                                                                         <C>
   Section 3.14.   Repayment to the Issuer.......................................................................32
   Section 3.15.   Redemption or Repurchase Upon Trust Assumption Event..........................................33

                                                     ARTICLE 4

                                                     COVENANTS

   Section 4.01.   Payment of Securities.........................................................................36
   Section 4.02.   Financial Information; SEC Reports............................................................37
   Section 4.03.   Corporate Existence...........................................................................37
   Section 4.04.   Restrictions on Liens.........................................................................37
   Section 4.05.   Sale and Leaseback Transaction................................................................39
   Section 4.06.   Compliance Certificate........................................................................39
   Section 4.07.   Further Instruments and Acts..................................................................39
   Section 4.08.   Calculation of Original Issue Discount........................................................39
   Section 4.09.   Securities To Be Equally and Ratably Secured Under Pledge Agreement...........................39
   Section 4.10.   Designation of Subsidiaries...................................................................40

                                                     ARTICLE 5

                                                SUCCESSOR COMPANIES

   Section 5.01.   Merger and Consolidation......................................................................41

                                                     ARTICLE 6

                                               DEFAULTS AND REMEDIES

   Section 6.01.   Events of Default.............................................................................41
   Section 6.02.   Acceleration..................................................................................43
   Section 6.03.   Other Remedies................................................................................44
   Section 6.04.   Waiver of Past Defaults.......................................................................44
   Section 6.05.   Control by Majority...........................................................................44
   Section 6.06.   Limitation on Suits...........................................................................44
   Section 6.07.   Rights of Holders to Receive Payment..........................................................45
   Section 6.08.   Collection Suit by Trustee....................................................................45
   Section 6.09.   Trustee May File Proofs of Claim..............................................................45
   Section 6.10.   Priorities....................................................................................45
   Section 6.11.   Undertaking for Costs.........................................................................46
   Section 6.12.   Waiver of Stay or Extension Laws..............................................................46

                                                     ARTICLE 7

                                                      TRUSTEE

   Section 7.01.   Duties of Trustee.............................................................................46
   Section 7.02.   Rights of Trustee.............................................................................47
   Section 7.03.   Individual Rights of Trustee..................................................................48
   Section 7.04.   Trustee's Disclaimer..........................................................................48

                                                        ii
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<PAGE>   4
<TABLE>
<S>                <C>                                                                                         <C>
   Section 7.05.   Notice of Defaults............................................................................48
   Section 7.06.   Reports by Trustee to Holder..................................................................49
   Section 7.07.   Compensation and Indemnity....................................................................49
   Section 7.08.   Replacement of Trustee........................................................................50
   Section 7.09.   Successor Trustee by Merger...................................................................50
   Section 7.10.   Eligibility; Disqualification.................................................................51
   Section 7.11.   Preferential Collection of Claims Against Issuer..............................................51

                                                     ARTICLE 8

                                               DISCHARGE OF INDENTURE

   Section 8.01.   Discharge of Liability on Securities..........................................................51
   Section 8.02.   Application of Trust Money....................................................................52
   Section 8.03.   Repayment to Issuer...........................................................................52

                                                     ARTICLE 9

                                                     AMENDMENTS

   Section 9.01.   Without Consent of Holders....................................................................52
   Section 9.02.   With Consent of Holders.......................................................................52
   Section 9.03.   Compliance with Trust Indenture Act...........................................................53
   Section 9.04.   Revocation and Effect of Consents and Waivers.................................................53
   Section 9.05.   Notation on or Exchange of Securities.........................................................54
   Section 9.06.   Trustee To Sign Amendments....................................................................54
   Section 9.07.   Waiver of Certain Conditions..................................................................54

                                                     ARTICLE 10

                                            SPECIAL TAX EVENT CONVERSION

   Section 10.01.   Optional Conversion to Semi-annual Coupon Note Upon Tax Event................................55
   Section 10.02.   Paying Agent To Hold Money in Trust..........................................................56
   Section 10.03.   Securityholder Lists.........................................................................56
   Section 10.04.   Payment of Interest; Interest Rights Preserved...............................................56

                                                     ARTICLE 11

                                                     CONVERSION

   Section 11.01.   Conversion Privilege.........................................................................57
   Section 11.02.   Conversion Procedure.........................................................................60
   Section 11.03.   Fractional Shares............................................................................61
   Section 11.04.   Taxes on Conversion..........................................................................61
   Section 11.05.   Issuer to Provide Stock......................................................................62
   Section 11.06.   Adjustment for Change In Capital Stock.......................................................62
   Section 11.07.   Adjustment for Rights Issue..................................................................63
   Section 11.08.   Adjustment for Other Distributions...........................................................63
   Section 11.09.   When Adjustment May Be Deferred..............................................................64
   Section 11.10.   When No Adjustment Required..................................................................65

                                                        iii
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<TABLE>
<S>                <C>                                                                                         <C>
   Section 11.11.   Notice of Adjustment.........................................................................65
   Section 11.12.   Voluntary Increase...........................................................................65
   Section 11.13.   Notice of Certain Transactions...............................................................65
   Section 11.14.   Reorganization of Issuer; Special Distributions..............................................66
   Section 11.15.   Issuer Determination Final...................................................................67
   Section 11.16.   Trustee's Adjustment Disclaimer..............................................................67
   Section 11.17.   Simultaneous Adjustments.....................................................................67
   Section 11.18.   Successive Adjustments.......................................................................67
   Section 11.19.   Rights Issued in Respect of Shares Issued Upon Conversion....................................67
   Section 11.20.   Restriction on Shares Issued Upon Conversion.................................................67
   Section 11.21.   Conversion Adjustments Upon Share Separation.................................................69

                                                     ARTICLE 12

                                                 SECURITY GUARANTEE

   Section 12.01.   Guarantee....................................................................................70
   Section 12.02.   Limitation on Guarantor Liability............................................................71
   Section 12.03.   Delivery of Guarantee........................................................................71
   Section 12.04.   Guarantors May Consolidate, etc. on Certain Terms............................................72
   Section 12.05.   Release......................................................................................72

                                                     ARTICLE 13

                                                   MISCELLANEOUS

   Section 13.01.   Trust Indenture Act Controls.................................................................73
   Section 13.02.   Notices......................................................................................73
   Section 13.03.   Communication by Holders with Other Holders..................................................74
   Section 13.04.   Certificate and Opinion as to Conditions Precedent...........................................74
   Section 13.05.   Statements Required in Certificate or Opinion................................................74
   Section 13.06.   When Securities Disregarded..................................................................75
   Section 13.07.   Rules by Trustee, Paying Agent and Registrar.................................................75
   Section 13.08.   Legal Holidays...............................................................................75
   Section 13.09.   Governing Law................................................................................75
   Section 13.10.   No Recourse Against Others...................................................................75
   Section 13.11.   Successors...................................................................................75
   Section 13.12.   Multiple Originals...........................................................................75
   Section 13.13.   Table of Contents;  Headings.................................................................76
   Section 13.14.   Severability.................................................................................76

EXHIBIT A:  FORM OF SECURITY...................................................................................A-1

                                                         iv
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<PAGE>   6
                  INDENTURE, dated as of __________, 20__, among STARWOOD HOTELS
& RESORTS WORLDWIDE, INC., a Maryland corporation (the "Issuer" or the
"Company"), the parties listed on the signature pages hereto that are
subsidiaries of the Issuer (the "Guarantors") and ____________________, a
____________________, as trustee (the "Trustee").

                  Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of the Issuer's
[Zero Coupon] Convertible [Senior] Notes due _______ (the "Securities"):

                                    ARTICLE 1

                   DEFINITIONS AND INCORPORATION BY REFERENCE

                  Section 1.01.     Definitions.

                  "Accreted Conversion Price" means with respect to a Security
with $1,000 of Principal Amount at Maturity, as of the date of determination,
the quotient of (i) the sum of the Issue Price plus Original Issue Discount
accrued to such date (or, if the Issuer has exercised its option to convert the
Securities to semi-annual coupon notes following the occurrence of a Tax Event,
the Restated Principal Amount) divided by (ii) the Conversion Rate in effect on
such date.

                  "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 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.

                  "Agent Members" has the meaning specified in Section 2.11.

                  "Average Quoted Price" has the meaning specified in Section
11.01.

                  "Bankruptcy Law" has the meaning specified in Section 6.01.

                  "Bid Solicitation Agent" means a bid solicitation agent
appointed by the Issuer to act in such capacity pursuant to the paragraph
entitled "Contingent Interest" of the Securities, which initially shall be the
Trustee.

                  "Board of Directors" means the Board of Directors of the
Issuer or any committee thereof duly authorized to act on behalf of the Board of
Directors of the Issuer.

                  "Business Day" means each day which is not a Legal Holiday.

                  "Capitalized Lease-Back Obligation" means the total net rental
obligations of the Issuer or a Restricted Subsidiary under any lease entered
into as part of a Sale and Lease-Back Transaction involving a Principal Property
discounted to present value at the rate of 9% per annum.

                                       1
<PAGE>   7
                  "Capital Stock" of any Person means any and all shares,
interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such Person,
including any preferred stock, but excluding any debt securities convertible
into such equity.

                  "Change in Control" has the meaning specified in Section 3.08.

                  "Change in Control Notice" has the meaning specified in
Section 3.08.

                  "Change in Control Notice Date" has the meaning specified in
Section 3.08.

                  "Change in Control Purchase Date" has the meaning specified in
Section 3.08.

                  "Change in Control Purchase Notice" has the meaning specified
in Section 3.08.

                  "Change in Control Purchase Price" has the meaning specified
in Section 3.08.

                  "Class B Shares" means Class B Shares, $.01 par value per
share, of the Trust as such shares exist on the date of this Indenture or any
other shares of Capital Stock of the Trust into which the Class B Shares shall
be reclassified or changed.

                  "Clearstream" has the meaning specified in Section 2.01.

                  "Closing Date" means the date of this Indenture.

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

                  "Company" means Starwood Hotels & Resorts Worldwide, Inc., a
Maryland corporation, until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter "Company" shall
instead mean such successor Person.

                  "Consolidated Net Tangible Assets" means the total of all
assets appearing on a consolidated balance sheet of the Issuer and its
Restricted Subsidiaries prepared in accordance with accounting principles
generally accepted in the United States as of a date not more than 90 days prior
to the date as of which Consolidated Net Tangible Assets are to be determined,
but excluding (i) the book amount of all segregated intangible assets, (ii) all
depreciation, valuation and other reserves, (iii) current liabilities, (iv) any
minority interest in the stock and surplus of Restricted Subsidiaries, (v)
investments in subsidiaries which are not Restricted Subsidiaries, (vi) deferred
income and deferred liabilities, and (vii) other items deductible under
generally accepted accounting principles.

                  "Contingent Debt Regulations" has the meaning specified in
Section 2.16.

                  "Contingent Interest" has the meaning specified in the
paragraph entitled "Contingent Interest" of the Securities.

                                       2
<PAGE>   8
                  "Conversion Agent" means the Trustee or such other office or
agency designated by the Issuer where Securities may be presented for
conversion.

                  "Conversion Date" has the meaning specified in Section 11.02.

                  "Conversion Percentage" means, prior to ________, 20__, ___%,
from ________, 20__ through ________, 20__, ___%, and on each ________
thereafter the Conversion Percentage shall decline by __% through and including
________, 20__, and thereafter the Conversion Percentage shall be ___%.

                  "Conversion Rate" has the meaning specified in Section 11.01.

                  "Corporate Trust Office" means the office of the Trustee
specified in Section 13.02.

                  "Corporation Shares" means shares of common stock, $.01 par
value per share, of the Issuer as such shares exist on the date of this
Indenture or any other shares of Capital Stock of the Issuer into which the
Corporation Shares shall be reclassified or changed.

                  "Custodian" has the meaning specified in Section 6.01.

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

                  "Defaulted Interest" has the meaning specified in Section
10.04.

                  "Definitive Securities" has the meaning specified in Section
2.01.

                  "Depositary" means, with respect to the Securities issuable in
whole or in part in global form, the Person specified pursuant to Section 2.01
hereof as the initial Depositary with respect to the Securities, until a
successor shall have been appointed and become such pursuant to the applicable
provisions of this Indenture, and thereafter "Depositary" shall instead mean or
include such successor.

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

                  "Euroclear" has the meaning specified in Section 2.01.

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

                  "Ex-Dividend Time" has the meaning specified in Section 11.01.

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

                  "Excluded Person" has the meaning specified in Section 3.08.

                  "Extraordinary Cash Dividend" has the meaning specified in
Section 11.08.

                                       3
<PAGE>   9
                  "Funded Debt" as applied to any corporation means all
indebtedness incurred, created, assumed or guaranteed by such corporation, or
upon which it customarily pays interest charges, which matures, or is renewable
by such corporation to a date, more than one year after the date as of which
Funded Debt is being determined; provided, however, that the term "Funded Debt"
shall not include (i) indebtedness incurred in the ordinary course of business
representing borrowings, regardless of when payable, of such corporation from
time to time against, but not in excess of the face amount of, its installment
accounts receivable for the sale of appliances and equipment sold in the regular
course of business or (ii) advances for construction and security deposits
received by such corporation in the ordinary course of business.

                  "GAAP" means generally accepted accounting principles in the
United States of America as in effect from time to time, including those
principles set forth in (i) the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants, (ii)
statements and pronouncements of the Financial Accounting Standards Board, (iii)
such other statements by such other entity as approved by a significant segment
of the accounting profession and (iv) the rules and regulations of the SEC
governing the inclusion of financial statements (including pro forma financial
statements) in periodic reports required to be filed pursuant to Section 13 of
the Exchange Act, including opinions and pronouncements in staff accounting
bulletins and similar written statements from the accounting staff of the SEC.
All computations based on GAAP contained in this Indenture shall be computed in
conformity with GAAP.

                  "Global Security" has the meaning specified in Section 2.01.

                  "Guarantors" means the parties listed on the signature pages
hereto that are subsidiaries of the Issuer.

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

                  "Indebtedness" means bonds, debentures, notes and other
instruments representing obligations created or assumed by such Person for the
repayment of money borrowed (other than unamortized debt discount or premium).
All indebtedness secured by a lien upon property owned by such Person or any
Subsidiary and upon which indebtedness such Person customarily pays interest,
although such Person has not assumed or become liable for the payment of such
indebtedness, shall for all purposes hereof be deemed to be indebtedness of such
Person. All indebtedness for money borrowed incurred by other persons which is
directly guaranteed as to payment of principal by such Person shall for all
purposes hereof be deemed to be indebtedness of, but no other contingent
obligation of any such Person in respect of indebtedness incurred by other
Persons shall for any purpose be deemed indebtedness of such Person.

                  "Indenture" means this Indenture as amended or supplemented
from time to time and includes the terms of Securities established as
contemplated by Section 2.01.

                  "Initial Purchaser" means ___________________.

                  "Interest Payment Date" has the meaning specified in Section
10.01.

                                       4
<PAGE>   10
                  "Issue Date" means the date the Securities are originally
issued or deemed issued as set forth on the face of the Security under this
Indenture.

                  "Issue Price" of any Security means, in connection with the
original issuance of such Security, the issue price as set forth on the face of
the Security.

                  "Issuer" means the party named as such in this Indenture until
a successor replaces it and, thereafter, instead means the successor and, for
purposes of any provision contained herein and required by the Trust Indenture
Act, each other obligor on the indenture securities.

                  "Issuer's Notice" has the meaning specified in Section 3.07.

                  "Issuer's Notice Date" has the meaning specified in Section
3.07.

                  "Legal Holiday" has the meaning specified in Section 13.08.

                  "Market Price" has the meaning specified in Section 3.07.

                  "Maturity", when used with respect to any Security, means the
date on which the principal, Restated Principal Amount, Purchase Price or Change
in Control Purchase Price of such Security becomes due and payable as therein or
herein provided, whether at the Stated Maturity, on a Redemption Date, Purchase
Date or Change in Control Purchase Date, or by declaration of acceleration or
otherwise.

                  "Non-Global Purchasers" has the meaning specified in Section
2.01.

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

                  "Offering Memorandum" means the offering memorandum relating
to the Securities dated _________, 200_.

                  "Officer" means the Chairman of the Board, the Chief Executive
Officer, the Chief Financial Officer, the President, any Vice President, the
Treasurer, an Assistant or Deputy Treasurer or the Secretary or an Assistant
Secretary of the Issuer.

                  "Officers' Certificate" means a certificate signed by two
Officers.

                  "Opinion of Counsel" means a written opinion from legal
counsel. The counsel may be an employee of or counsel to the Issuer or the
Trustee.

                  "Option Exercise Date" has the meaning specified in Section
10.01.

                  "Original Issue Discount" of any Security means the difference
between the Issue Price and the Principal Amount at Maturity of the Security as
set forth on the face of the Security, which shall accrue as set forth in the
form of Security.

                  "Paying Agent" has the meaning specified in Section 2.06.

                                       5
<PAGE>   11
                  "Person" means any individual, corporation, partnership,
limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization, government or any agency or political
subdivision thereof or any other entity.

                  "Pledge Agreement" means the Pledge and Security Agreement,
dated February 23, 1998, as amended modified or supplemented, by and between the
Issuer, the Trust, certain direct and indirect subsidiaries of the Issuer and
Bankers Trust Company, as Collateral Agent.

                  "Pledge Termination Event" means the earliest to occur of (i)
the termination of the Pledge Agreement or the release of all of the collateral
thereunder in accordance with the terms thereof, (ii) the release by the lenders
under the Senior Credit Facility of the security interests and benefits afforded
by the Pledge Agreement such that the Senior Credit Facility is no longer
secured by any of the collateral under the Pledge Agreement, (iii) the repayment
in full of the obligations under the Senior Credit Facility or (iv) the
occurrence of a "Termination Date" (as such term is defined in the Senior Credit
Facility).

                  "Principal Amount at Maturity" of any Security means the
Principal Amount at Maturity as set forth on the face of the Security.

                  "Principal Property" means any single property owned by the
Issuer or any Restricted Subsidiary having a gross book value in excess of 2% of
Consolidated Net Tangible Assets, except any such property or portion thereof
which the Board of Directors by resolution declares is not of material
importance to the total business conducted by the Issuer and its Restricted
Subsidiaries as an entirety.

                  "protected purchaser" has the meaning specified in Section
2.08.

                  "Purchase Agreement" means the Purchase Agreement dated
_______, 20__, among the Issuer, the Trust and the Initial Purchaser.

                  "Purchase Date" has the meaning specified in Section 3.07.

                  "Purchase Notice" has the meaning specified in Section 3.07.

                  "Purchase Price" has the meaning specified in Section 3.07.

                  "QIBs" has the meaning specified in Section 2.01.

                  "Rating Event" has the meaning specified in Section 11.21.

                  "Redemption Date" shall mean the date specified for redemption
of the Securities in accordance with the terms of the Securities and Article 3
hereof.

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

                  "Registrar" has the meaning specified in Section 2.06.

                                       6
<PAGE>   12

                  "Registration Rights Agreement" means the Registration Rights
Agreement dated         , 200 , among the Issuer, the Guarantors and the Initial
Purchaser.

                  "Regular Record Date" has the meaning specified in Section
10.01.

                  "Regulation S" has the meaning specified in Section 2.01.

                  "Restated Principal Amount" has the meaning specified in
Section 10.01.

                  "Restricted Security" has the meaning specified in Section
2.15.

                  "Restricted Securities Legend" means the legend labeled as
such and that is set forth in Exhibit A hereto.

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

                  "Rights" has the meaning specified in Section 11.19.

                  "Rights Agreement" has the meaning specified in Section 11.19.

                  "Rule 144A" has the meaning specified in Section 2.01.

                  "Sale and Lease-Back Transaction" has the meaning specified in
Section 4.05.

                  "Sale Price" has the meaning specified in Section 3.08.

                  "SEC" means the Securities and Exchange Commission.

                  "Securities" has the meaning specified in the second paragraph
of this Indenture.

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

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

                  "Senior Credit Facility" means the Credit Agreement, dated as
of February 23, 1998, among the Issuer, the Trust, the Realty Partnership and
Chess Acquisition Corp. (and Sheraton Holding Corp., as its successor by
merger), certain additional borrowers, various lenders and Lehman Commercial
Paper Inc. and Bank of Montreal, as syndication agents, and Bankers Trust
Company and The Chase Manhattan Bank, as administrative agents, as such
agreement has been or hereafter may be amended in accordance with its terms.

                  "Share" means an attached unit consisting of one Corporation
Share and one Class B Share; provided that upon the occurrence of a Share
Separation, the term "Share" shall mean a Corporation Share; provided further
that upon the occurrence of a Trust Assumption Event, the term "Share" shall
mean a Class B Share.

                  "Share Separation" has the meaning specified in Section 11.21.

                                       7
<PAGE>   13
                  "Shelf Registration" shall have the meaning set forth in the
Registration Rights Agreement.

                  "Significant Subsidiary" means any subsidiary that would be a
"significant subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X
promulgated pursuant to the Securities Act, as such Regulation is in effect on
the date of this Indenture.

                  "Special Record Date" has the meaning specified in Section
10.04.

                  "Stated Maturity," when used with respect to any Security,
means the date specified in such Security as the fixed date on which an amount
equal to the Principal Amount at Maturity of such Security is due and payable
or, if the Securities have been converted into semi-annual coupon notes, the
date specified in such Security as the fixed date on which the Restated
Principal Amount thereof or any installment of interest thereon is due and
payable.

                  "Subsidiary" of any Person means any corporation, association,
partnership or other business entity of which more than 50% of the total voting
power of shares of Capital Stock or other interests (including partnership
interests) entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by (i) such Person, (ii) such
Person and one or more Subsidiaries of such Person or (iii) one or more
Subsidiaries of such Person.

                  "Successor Company" has the meaning specified in Section 5.01.

                  "Tax Event" means that the Issuer shall have received an
opinion from independent tax counsel experienced in such matters to the effect
that, on or after ________, 20__, as a result of (a) any issuance or
announcement of an amendment to, or change in, or an amendment to, or change
(including any announced prospective change) in, the laws (or any regulations
thereunder) of the United States or any political subdivision or taxing
authority thereof or therein or (b) any amendment to, or change in, an
interpretation or application of such laws or regulations by any legislative
body, court, governmental agency or regulatory authority, in each case which
amendment or change is enacted, promulgated, issued or announced or which
interpretation is issued or announced or which action is taken, on or after
________, 20__, there is more than an insubstantial risk that interest
(including Original Issue Discount and Contingent Interest, if any) payable on
the Securities either (i) would not be deductible on a current accrual basis or
(ii) would not be deductible under any other method, in either case in whole or
in part, by the Issuer (by reason of deferral, disallowance, or otherwise) for
United States Federal income tax purposes.

                  "Tax Event Date" has the meaning specified in Section 10.01.

                  "trading day" has the meaning specified in Section 11.01.

                  "Time of Determination" has the meaning specified in Section
11.01.

                  "Trust" means Starwood Hotels & Resorts, a Maryland real
estate investment trust and a Subsidiary of the Issuer.

                                       8
<PAGE>   14
                  "Trust Assumption Event" has the meaning specified in Section
11.21.

                  "Trust Assumption Event Notice" has the meaning specified in
Section 3.14(d).

                  "Trust Assumption Event Notice Date" has the meaning specified
in Section 3.14(d).

                  "Trust Assumption Event Purchase Date" has the meaning
specified in Section 3.14(b).

                  "Trust Assumption Event Purchase Price" has the meaning
specified in Section 3.14(b).

                  "Trust Assumption Event Redemption Date" has the meaning
specified in Section 3.14(a).

                  "Trust Assumption Event Redemption Price" has the meaning
specified in the paragraph entitled "Redemption at Option of Issuer" of the
Securities.

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

                  "Trust Indenture Act" means the Trust Indenture Act of 1939
(15 U.S.C. Sections 77aaa-77bb) in effect on the Closing Date.

                  "Trust Officer" means any Vice President, Assistant Vice
President or any other officer or assistant officer of the Trustee assigned by
the Trustee to administer its corporate trust matters.

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

                  "United States National Securities Exchange" means the Nasdaq
National Market System, the New York Stock Exchange or the American Stock
Exchange, or any successor securities exchange thereto.

                  "Unrestricted Subsidiary" mean (i) any subsidiary 50% or less
of the voting stock of which is owned directly by the Issuer and/or one or more
Restricted Subsidiaries or (ii) any Subsidiary designated as an Unrestricted
Subsidiary by the Board of Directors.

                  SECTION 1.02. Incorporation by Reference of Trust Indenture
Act. This Indenture is subject to the mandatory provisions of the Trust
Indenture Act, which are incorporated by reference in and made a part of this
Indenture. The following Trust Indenture Act terms have the following meanings:

                  "indenture securities" means the Securities.

                  "indenture security holder" means a Holder or Securityholder.

                                       9
<PAGE>   15
                  "indenture to be qualified" means this Indenture.

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

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

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

                  SECTION 1.03.     Rules of Construction.

                  Unless the context otherwise requires:

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

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

                  (3) "or" is not exclusive;

                  (4) "including" means including without limitation;

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

                  (6) Section references are to Sections of this Indenture
         unless the context otherwise requires; and

                  (7) the principal amount of any non-interest bearing or other
         discount security at any date shall be the principal amount thereof
         that would be shown on a balance sheet of the issuer dated such date
         prepared in accordance with GAAP.

                                    ARTICLE 2

                                 THE SECURITIES

                  SECTION 2.01. Form of Securities. The Securities and the
Trustee's certificate of authentication shall be substantially in the form of
Exhibit A which is hereby incorporated in and expressly made a part of this
Indenture.

                  The Securities offered and sold (i) in reliance on Regulation
S under the Securities Act ("Regulation S") or (ii) to "qualified institutional
buyers" as defined in Rule 144A ("QIBs") in reliance on Rule 144A under the
Securities Act ("Rule 144A"), each as provided in the Purchase Agreement, shall
be issued in the form of one or more permanent global securities in definitive,
fully registered form without interest coupons with the Global Securities Legend
and Restricted Securities Legend set forth in Exhibit A hereto (a "Global
Security"). Any Global

                                       10
<PAGE>   16
Security shall be deposited on behalf of the purchasers of the Securities
represented thereby with the Trustee, as custodian for the Depositary, and
registered in the name of the Depositary or a nominee of the Depositary for the
accounts of participants in the Depositary (and, in the case of Securities held
in accordance with Regulation S, registered with the Depositary for the accounts
of designated agents holding on behalf of the Euroclear Bank S.A./N.V., as
operator of the Euroclear System ("Euroclear") or Clearstream Banking, societe
anonyme ("Clearstream")), duly executed by the Issuer and authenticated by the
Trustee as hereinafter provided. The aggregate principal amount of a Global
Security may from time to time be increased or decreased by adjustments made on
the records of the Trustee and the Depositary or its nominee as hereinafter
provided.

                  Except as provided in Section 2.10 and 2.13, owners of
beneficial interests in Global Securities will not be entitled to receive
physical delivery of Securities in definitive form. Transferees of Securities
who are not QIBs and did not purchase Securities sold in reliance on Regulation
S under the Securities Act (referred to herein as the "Non-Global Purchasers")
will receive certificated Securities in definitive form bearing the Restricted
Securities Legend set forth in Exhibit A hereto ("Definitive Securities").
Definitive Securities will bear the Restricted Securities Legend set forth on
Exhibit A unless removed in accordance with Section 2.13(b).

                  SECTION 2.02. Title and Terms. The aggregate Principal Amount
at Maturity of Securities which may be authenticated and delivered under this
Indenture is limited to $_______________ (subject to increase to
$_______________ in the event the Initial Purchaser exercises the over-allotment
option under the Purchase Agreement), except for replacement Securities
authenticated and delivered upon registration or transfer of, or in exchange
for, or in lieu of, other Securities pursuant to Section 2.08.

                  Except as provided for in the Securities, there shall be no
periodic payments of interest on the Securities. The calculation of the accrual
of Original Issue Discount in the period during which each Security remains
outstanding shall be on a semiannual bond equivalent basis using a 360-day year
composed of twelve 30-day months, and such accrual shall commence on the Issue
Date of the Securities. In the event of the maturity, conversion, purchase by
the Issuer at the option of a Holder or redemption of a Security, Original Issue
Discount, if any, shall cease to accrue on such Security, under the terms and
subject to the conditions of this Indenture.

                  The Issue Price and Original Issue Discount accrued on the
Securities shall be payable at (i) the office or agency of the Issuer in The
City of New York maintained for such purpose, which initially shall be the
principal corporate trust office of the Trustee in The City of New York, (ii)
the Corporate Trust Office and (iii) at any other office or agency maintained by
the Issuer for such purpose; provided, however, that at the option of the Issuer
payments may be made by wire transfer or by check mailed to the address of the
Person entitled thereto as such address shall appear in the security register.

                  The Securities shall not have the benefit of a sinking fund.

                  The Securities shall be general senior obligations of the
Issuer secured on an equal and ratable basis as provided in Section 4.11.

                                       11
<PAGE>   17
                  SECTION 2.03. Denominations. The Securities shall be issuable
only in registered form without coupons and in denominations of $1,000 Principal
Amount at Maturity and any integral multiple of $1,000 above that amount.

                  SECTION 2.04. Forms Generally. The Securities may have such
letters, notations, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required by law, securities exchange rule,
the Code and regulations thereunder, agreements to which the Issuer is subject,
if any, or usage (provided that any such notation legend or endorsement is in a
form acceptable to the Issuer). Each Security shall be dated the date of its
authentication.

                  The definitive Securities 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 Securities, as evidenced by their
execution thereof.

                  SECTION 2.05. Execution, Authentication and Delivery. One or
more Officers of the Issuer shall sign the Securities on behalf of the Issuer by
manual or facsimile signature. The Issuer's seal, if any, may, but need not, be
impressed, affixed, imprinted or reproduced on the Securities and, if it is,
then it may be in facsimile form.

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

                  A Security shall not be valid until an authorized signatory of
the Trustee manually signs the certificate of authentication on the Security.
The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.

                  The Trustee may appoint an authenticating agent reasonably
acceptable to the Issuer to authenticate the Securities. Any such appointment
shall be evidenced by an instrument signed by a Trust Officer, a copy of which
shall be furnished to the Issuer. Unless limited by the terms of such
appointment, an authenticating agent may authenticate Securities whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as any Registrar, Paying Agent or agent for service of notices and
demands.

                  SECTION 2.06. Registrar and Paying Agent. The Issuer shall
maintain an office or agency where Securities may be presented for registration
of transfer or for exchange (the "Registrar") and an office or agency where
Securities may be presented for payment (the "Paying Agent"). The Registrar
shall keep a register of the Securities and of their transfer and exchange. The
Issuer may have one or more co-registrars and one or more additional paying
agents. The term "Paying Agent" includes any additional paying agent, and the
term "Registrar" includes any co-registrars. The Issuer initially appoints the
Trustee as (i) Registrar and Paying Agent in connection with the Securities and
(ii) the Securities Custodian with respect to the Global Securities.

                  The Issuer shall enter into an appropriate agency agreement
with any Registrar or Paying Agent not a party to this Indenture, which shall
incorporate the terms of the Trust Indenture Act. The agency agreement shall
implement the provisions of this Indenture that relate

                                       12
<PAGE>   18
to such agent. The Issuer shall notify the Trustee of the name and address of
any such agent. If the Issuer fails to maintain a Registrar or Paying Agent, the
Trustee shall act as such and shall be entitled to appropriate compensation
therefor pursuant to Section 7.07. The Issuer or any of its domestically
organized Subsidiaries may act as Paying Agent or Registrar.

                  The Issuer may remove any Registrar or Paying Agent upon
written notice to such Registrar or Paying Agent and to the Trustee; provided,
however, that no such removal shall become effective until (1) acceptance of an
appointment by a successor as evidenced by an appropriate agreement entered into
by the Issuer and such successor Registrar or Paying Agent, as the case may be,
and delivered to the Trustee or (2) notification to the Trustee that the Trustee
shall serve as Registrar or Paying Agent until the appointment of a successor in
accordance with clause (1) above. The Registrar or Paying Agent may resign at
any time upon written notice; provided, however, that the Trustee may resign as
Paying Agent or Registrar only if the Trustee also resigns as Trustee in
accordance with Section 7.08.

                  SECTION 2.07. Transfer and Exchange. The Securities shall be
issued in registered form and shall be transferable only upon the surrender of a
Security for registration of transfer and in compliance with this Indenture.
When a Security is presented to the Registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if the
requirements of Section 8-401(a)(1) of the Uniform Commercial Code are met. When
Securities are presented to the Registrar with a request to exchange them for
Securities of other denominations and of a like aggregate Principal Amount at
Maturity and tenor, the Registrar shall make the exchange as requested if the
same requirements are met. To permit registration of transfers and exchanges,
the Issuer shall execute and the Trustee shall authenticate Securities at the
Registrar's request. The Issuer may require payment of a sum sufficient to pay
all taxes, assessments or other governmental charges in connection with any such
transfer or exchange pursuant to this Section. The Issuer shall not be required
to make and the Registrar need not register transfers or exchanges of Securities
selected for redemption (except, in the case of Securities to be redeemed in
part, the portion thereof not to be redeemed) or any Securities for a period of
15 days before a selection of Securities to be redeemed.

                  Prior to the due presentation for registration of transfer of
any Security, the Issuer, the Trustee, the Paying Agent and the Registrar may
deem and treat the Person in whose name a Security is registered as the absolute
owner of such Security for the purpose of receiving any payment on such Security
(including interest, if the Securities have been converted into semi-annual
coupon notes following the occurrence of a Tax Event and Contingent Interest and
Defaulted Interest, if any) and for all other purposes whatsoever, whether or
not such Security is overdue, and none of the Issuer, the Trustee, the Paying
Agent or the Registrar shall be affected by notice to the contrary.

                  Any Holder of a Global Security shall, by acceptance of such
Global Security, agree that transfers of a beneficial interest in such Global
Security may be effected only through a book-entry system maintained by (i) the
Holder of such Global Security (or its agent) or (ii) any Holder of a beneficial
interest in such Global Security, and that ownership of a beneficial interest in
such Global Security shall be required to be reflected in a book-entry.

                                       13
<PAGE>   19
                  All Securities issued upon any transfer or exchange pursuant
to the terms of this Indenture will evidence the same debt and will be entitled
to the same benefits under this Indenture as the Securities surrendered upon
such transfer or exchange.

                  SECTION 2.08. Replacement Securities. If a mutilated Security
is surrendered to the Registrar or if the Holder of a Security claims that the
Security has been lost, destroyed or wrongfully taken, the Issuer shall issue
and the Trustee shall authenticate a replacement Security if the requirements of
Section 8-405 of the Uniform Commercial Code are met, such that the Holder (i)
satisfies the Issuer or the Trustee within a reasonable time after such Holder
has notice of such loss, destruction or wrongful taking, and the Registrar does
not register a transfer prior to receiving such notification, (ii) requests the
Issuer or the Trustee to issue a new replacement Security, prior to the Security
being acquired by a protected purchaser as defined in Section 8-303 of the
Uniform Commercial Code (a "protected purchaser") and (iii) satisfies any other
reasonable requirements of the Trustee. If required by the Trustee or the
Issuer, such Holder shall furnish an indemnity bond sufficient in the judgment
of the Trustee to protect the Issuer, the Trustee, the Paying Agent and the
Registrar from any loss that any of them may suffer if a Security is replaced.
The Issuer and the Trustee may charge the Holder for the costs and expenses they
incur in replacing a Security. In the event any such mutilated, lost, destroyed
or wrongfully taken Security has become or is about to become due and payable or
has been called for redemption in full, the Issuer in its discretion may pay
such Security instead of issuing a new Security in replacement thereof.

                  Every replacement Security is an additional obligation of the
Issuer.

                  The provisions of this Section 2.08 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, lost, destroyed or wrongfully taken
Securities.

                  SECTION 2.09. Outstanding Securities. Securities outstanding
at any time are all Securities authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation and those described in
this Section as not outstanding. Subject to Section 13.06, a Security does not
cease to be outstanding because the Issuer or an Affiliate of the Issuer holds
the Security.

                  If a Security is replaced pursuant to Section 2.08, the
Security so replaced ceases to be outstanding unless and until the Trustee and
the Issuer receive proof satisfactory to them that the replaced Security is held
by a protected purchaser.

                  If the Paying Agent segregates and holds in trust, in
accordance with this Indenture, at Maturity, money or securities sufficient to
pay all amounts payable on that date with respect to the Securities (or portions
thereof) to be redeemed, purchased or repurchased or maturing, as the case may
be, then on and after that date, such Securities (or portions thereof) shall
cease to be outstanding and Original Issue Discount (or interest, if the
Securities have been converted into semi-annual coupon notes following the
occurrence of a Tax Event) on them or Contingent Interest and Defaulted
Interest, if any, shall cease to accrue.

                                       14
<PAGE>   20
                  SECTION 2.10. Temporary Securities; Exchange of Global
Security for Definitive Securities.

                  (a) In the event that Definitive Securities are to be issued
under the terms of this Indenture, until such Definitive Securities are ready
for delivery, the Issuer may prepare and the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form of
Definitive Securities but may have variations that the Issuer considers
appropriate for temporary Securities. Without unreasonable delay, the Issuer
shall prepare and the Trustee shall authenticate Definitive Securities and
deliver them in exchange for temporary Securities upon surrender of such
temporary Securities at the office or agency of the Issuer, without charge to
the Holder.

                  (b) Except for transfers made in accordance with Section
2.13(a), a Global Security deposited with the Depositary or with the Trustee as
custodian for the Depositary pursuant to Section 2.11 shall be transferred to
the beneficial owners thereof in the form of certificated Securities in
definitive form only if such transfer complies with Section 2.13 and (i) the
Depositary notifies the Issuer that it is unwilling or unable to continue as
Depositary for such Global Security or if at any time such Depositary ceases to
be a "clearing agency" registered under the Exchange Act and a successor
Depositary is not appointed by the Issuer within 90 days of such notice, or (ii)
the Issuer so elects.

                  (c) Any Global Security or interest thereon that is
transferable to the beneficial owners thereof in the form of certificated
Securities in definitive form shall, if held by the Depository, be surrendered
by the Depositary to the Trustee, without charge, and the Trustee shall
authenticate and deliver, upon such transfer of each portion of such Global
Security, an equal aggregate principal amount of Securities of authorized
denominations in the form of certificated Securities in definitive form. Any
portion of a Global Security transferred pursuant to this Section shall be
executed, authenticated and delivered only in denominations of $1,000 and any
integral multiple thereof and registered in such names as the Depositary shall
direct. Any Securities in the form of certificated Securities in definitive form
delivered in exchange for an interest in the Global Security shall, except as
otherwise provided by Section 2.13(b), bear the Restricted Securities Legend set
forth in Exhibit A hereto.

                  (d) Prior to any transfer pursuant to Section 2.10(b), the
registered holder of a Global Security may grant proxies and otherwise authorize
any Person, including Agent Members and Persons that may hold interests through
Agent Members, to take any action which a holder is entitled to take under this
Indenture or the Securities.

                  The Issuer will make available to the Trustee a reasonable
supply of certificated Securities in definitive form.

                  SECTION 2.11. Book-entry Provisions for Global Securities.
This Section 2.11 shall apply only to a Global Security deposited with or on
behalf of the Depositary.

                  The Issuer shall execute and the Trustee shall, in accordance
with this Section 2.11 and the written order of the Issuer, authenticate and
deliver initially one or more Global Securities that (i) shall be registered in
the name of Cede & Co. or other nominee of such

                                       15
<PAGE>   21
Depositary and (ii) shall be delivered by the Trustee to such Depositary or
pursuant to such Depositary's instructions or held by the Trustee as custodian
for the Depositary pursuant to a FAST Balance Certificate Agreement between the
Depositary and the Trustee.

                  Members of, or participants in, the Depositary ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary or by the Trustee as the
custodian of the Depositary or under such Global Security, and the Depositary
may be treated by the Issuer, the Trustee and any agent of the Issuer or the
Trustee as the absolute owner of such Global Security for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Issuer, the Trustee or any agent of the Issuer or the Trustee from giving effect
to any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices of such Depositary governing the exercise of
the rights of a holder of a beneficial interest in any Global Security.

                  The provisions of the "Operating Procedures of the Euroclear
System" and "Terms and Conditions Governing Use of Euroclear" and the
"Management Regulations and Instructions to Participants" of Clearstream shall
be applicable to interests in any Global Securities that are held by
participants through Euroclear or Clearstream. The Trustee shall have no
obligation to notify holders of any such procedures or to monitor or enforce
compliance with the same.

                  SECTION 2.12. Cancellation. The Issuer at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agent
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel all
Securities surrendered for registration of transfer, exchange, payment,
purchase, repurchase, redemption, conversion (pursuant to Article 11 hereof) or
cancellation and deliver canceled Securities to the Issuer pursuant to written
direction by an Officer of the Issuer. In the absence of any such direction, the
Trustee may treat canceled Securities in accordance with its document retention
policies. The Issuer may not issue new Securities to replace Securities they
have redeemed, paid in full or delivered to the Trustee for cancellation. The
Trustee shall not authenticate Securities in place of canceled Securities other
than pursuant to the terms of this Indenture.

                  SECTION 2.13. Special Transfer Provisions. (a) Notwithstanding
any provision to the contrary herein, so long as a Global Security remains
outstanding and is held by or on behalf of the Depositary, transfers of a Global
Security, in whole or in part, or of any beneficial interest therein, shall only
be made in accordance with Sections 2.10 and 2.11 and this Section 2.13(a);
provided, however, that beneficial interests in a Global Security may be
transferred to Persons who take delivery thereof in the form of a beneficial
interest in the Global Security in accordance with the transfer restrictions set
forth under the heading "Notice to Investors" in the Offering Memorandum and, if
applicable, in Exhibit ___.

                  Except for transfers or exchanges made in accordance with
paragraphs (1) through (4) of this Section 2.13(a) and Section 2.10, transfers
of a Global Security shall be limited to transfers of such Global Security in
whole, but not in part, to nominees of the Depositary or to a successor of the
Depositary or such successor's nominee.

                                       16
<PAGE>   22
                  (1) Global Security to Definitive Security. If an owner of a
         beneficial interest in a Global Security deposited with the Depositary
         or with the Trustee as custodian for the Depositary wishes at any time
         to transfer its interest in such Global Security to a Person who is
         required to take delivery thereof in the form of a Definitive Security,
         such owner may, subject to the rules and procedures of Euroclear or
         Clearstream, if applicable, and the Depositary, cause the exchange of
         such interest for one or more Definitive Securities of any authorized
         denomination or denominations and of the same aggregate principal
         amount. Upon receipt by the Registrar of (A) instructions from
         Euroclear or Clearstream, if applicable, and the Depositary directing
         the Trustee to authenticate and deliver one or more Definitive
         Securities of the same aggregate principal amount as the beneficial
         interest in the Global Security to be exchanged, such instructions to
         contain the name or names of the designated transferee or transferees,
         the authorized denomination or denominations of the Definitive
         Securities to be so issued and appropriate delivery instructions, (B) a
         certificate substantially in the form of Exhibit ___ attached hereto
         given by the owner of such beneficial interest, (C) a certificate
         substantially in the form of Exhibit ___ attached hereto given by the
         person acquiring the Definitive Securities for which such interest is
         being exchanged, to the effect set forth therein, and (D) such other
         certifications or other information and, in the case of transfers
         pursuant to Rule 144 under the Securities Act, legal opinions as the
         Issuer may reasonably require to confirm that such transfer is being
         made pursuant to an exemption from, or in a transaction not subject to,
         the registration requirements of the Securities Act, then Euroclear or
         Clearstream, if applicable, or the Registrar, as the case may be, will
         instruct the Depositary to reduce or cause to be reduced such Global
         Security by the aggregate principal amount of the beneficial interest
         therein to be exchanged and to debit or cause to be debited from the
         account of the Person making such transfer the beneficial interest in
         the Global Security that is being transferred, and concurrently with
         such reduction and debit the Issuer shall execute, and the Trustee
         shall authenticate and deliver, one or more Definitive Securities of
         the same aggregate principal amount in accordance with the instructions
         referred to above.

                  (2) Definitive Security to Definitive Security. If a holder of
         a Definitive Security wishes at any time to transfer such Definitive
         Security (or portion thereof) to a Person who is required to take
         delivery thereof in the form of a Definitive Security, such holder may,
         subject to the restrictions on transfer set forth herein and in such
         Definitive Security, cause the transfer of such Definitive Security (or
         any portion thereof in a principal amount equal to an authorized
         denomination) to such transferee. Upon receipt by the Registrar of (A)
         such Definitive Security, duly endorsed as provided herein, (B)
         instructions from such holder directing the Trustee to authenticate and
         deliver one or more Definitive Securities of the same aggregate
         principal amount as the Definitive Security (or portion thereof) to be
         transferred, such instruction to contain the name or names of the
         designated transferee or transferees, the authorized denomination or
         denominations of the Definitive Securities to be so issued and
         appropriate delivery instructions, (C) a certificate from the holder of
         the Definitive Security to be transferred in substantially the form of
         Exhibit ___ attached hereto, (D) a certificate substantially in the
         form of Exhibit ___ attached hereto given by the person acquiring the
         Definitive Securities (or portion thereof), to the effect set forth
         therein, and (E) such other certifications or other information and, in
         the case of transfers pursuant to Rule 144 under the Securities

                                       17
<PAGE>   23
         Act, legal opinions as the Issuer may reasonably require to confirm
         that such transfer is being made pursuant to an exemption from, or in a
         transaction not subject to, the registration requirements of the
         Securities Act, then the Registrar, shall cancel or cause to be
         canceled such Definitive Security and concurrently therewith, the
         Issuer shall execute, and the Trustee shall authenticate and deliver,
         one or more Definitive Securities in the appropriate aggregate
         principal amount, in accordance with the instructions referred to above
         and, if only a portion of a Definitive Security is transferred as
         aforesaid, concurrently therewith the Issuer shall execute and the
         Trustee shall authenticate and deliver to the transferor a Definitive
         Security in a principal amount equal to the principal amount which has
         not been transferred. A holder of a Definitive Security may at any time
         exchange such Definitive Security for one or more Definitive Securities
         of other authorized denominations and in the same aggregate principal
         amount and registered in the same name by delivering such Definitive
         Security, duly endorsed as provided herein, to the Trustee together
         with instructions directing the Trustee to authenticate and deliver one
         or more Definitive Securities in the same aggregate principal amount
         and registered in the same name as the Definitive Security to be
         exchanged, and the Registrar thereupon shall cancel or caused to be
         canceled such Definitive Security and concurrently therewith the Issuer
         shall execute and Trustee shall authenticate and deliver, one or more
         Definitive Securities in the same aggregate principal amount and
         registered in the same name as the Definitive Security being exchanged.

                  (3) Definitive Security to Global Security. If a holder of a
         Definitive Security wishes at any time to transfer such Definitive
         Security (or portion thereof) to a Person who is not required to take
         delivery thereof in the form of a Definitive Security, such holder
         shall, subject to the restrictions on transfer set forth herein and in
         such Definitive Security and the rules of the Depositary and Euroclear
         and Clearstream, as applicable, cause the exchange of such Definitive
         Security for a beneficial interest in the Global Security. Upon receipt
         by the Registrar of (A) such Definitive Security, duly endorsed as
         provided herein, (B) instructions from such holder directing the
         Trustee to increase the aggregate principal amount of the Global
         Security deposited with the Depository or with the Trustee as custodian
         for the Depository by the same aggregate Principal Amount at Maturity
         as the Definitive Security to be exchanged, such instructions to
         contain the name or names of a member of, or participant in, the
         Depository that is designated as the transferee, the account of such
         member or participant and other appropriate delivery instructions, (C)
         the assignment form on the back of the Definitive Security completed in
         full (certifying in effect that such transfer complies with Rule 144A
         or Regulation S under the Securities Act or is otherwise being made to
         a Person who is not required to take delivery of the Securities in the
         form of a Definitive Security) and (D) such other certifications or
         other information and, in the case of transfers pursuant to Rule 144
         under the Securities Act, legal opinions as the Issuer may reasonably
         require to confirm that such transfer is being made pursuant to an
         exemption from, or in transaction not subject to, the registration
         requirements of the Securities Act, then the Trustee shall cancel or
         cause to be canceled such Definitive Security and concurrently
         therewith shall increase the aggregate principal amount of the Global
         Security by the same aggregate principal amount as the Definitive
         Security canceled.

                                       18
<PAGE>   24
                  (4) Other Exchanges. In the event that a Global Security is
         exchanged for Securities in definitive registered form pursuant to
         Section 2.10 prior to the effectiveness of a Shelf Registration
         contemplated by and in accordance with the terms of the Registration
         Rights Agreement with respect to such Securities, such Securities may
         be exchanged only in accordance with such procedures as are
         substantially consistent with the provisions of clauses (2) and (3)
         above (including the certification requirements intended to ensure that
         such transfers comply with Rule 144A or Regulation S under the
         Securities Act, as the case may be) and such other procedures as may
         from time to time be adopted by the Issuer.

                  (b) Except in connection with a Shelf Registration
contemplated by and in accordance with the terms of the Registration Rights
Agreement, if Securities are issued upon the registration of transfer, exchange
or replacement of Securities bearing a Restricted Securities Legend, or if a
request is made to remove such a Restrictive Securities Legend on Securities,
the Securities so issued shall bear the Restricted Securities Legend, or a
Restricted Securities Legend shall not be removed, as the case may be, unless
there is delivered to the Issuer such satisfactory evidence, which, in the case
of a transfer made pursuant to Rule 144 under the Securities Act, may include an
opinion of counsel, as may be reasonably required by the Issuer, that neither
the legend nor the restrictions on transfer set forth therein are required to
ensure that transfers thereof comply with the provisions of Rule 144A, Rule 144
or Regulation S under the Securities Act or that such Securities are not
"restricted" within the meaning of Rule 144 under the Securities Act. Upon
provision to the Issuer of such satisfactory evidence, the Trustee, at the
written direction of the Issuer, shall authenticate and deliver Securities that
do not bear the legend. The Issuer shall not otherwise be entitled to require
the delivery of a legal opinion in connection with any transfer or exchange of
Securities.

                  (c) Neither the Trustee nor any Agent shall have any
responsibility for any actions taken or not taken by the Depositary.

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

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

                                       19
<PAGE>   25
                  SECTION 2.15. Legend on Restricted Securities. During the
period beginning on ________, 20__ (or such later date on which any Securities
may be originally issued pursuant to the Initial Purchaser's exercise of the
over-allotment option under the Purchase Agreement) and ending on the date two
years from such date, any Security (including any Security issued in exchange
therefor or in lieu thereof), shall be deemed a "Restricted Security" and shall
be subject to the restrictions on transfer provided in the legends set forth on
the face of the form of Security in Exhibit A; provided, however, that the term
"Restricted Security" shall not include any Securities as to which restrictions
have been terminated in accordance with the terms of this Indenture, including,
without limitation, Section 2.13(b). All Securities shall bear the applicable
legends set forth on the face of the form of Security in Exhibit A. Except as
provided in Section 2.13, the Trustee shall not issue any unlegended Security
until it has received an Officers' Certificate from the Issuer directing it to
do so.

                  SECTION 2.16. Tax Treatment of Securities. The Issuer agrees,
and by acceptance of a beneficial interest in the Securities, each beneficial
holder of the Securities will be deemed to have agreed, for United States
federal income tax purposes (1) to treat the Securities as indebtedness that is
subject to Treas. Reg. Sec. 1.1275-4 (the "Contingent Debt Regulations") and,
for purposes of the Contingent Debt Regulations, to treat, without limitation,
the amount of cash and the fair market value of any Shares beneficially received
by a beneficial holder upon any conversion of the Securities as a contingent
payment and (2) to be bound by the Issuer's determination of the "comparable
yield" and "projected payment schedule," within the meaning of the Contingent
Debt Regulations, with respect to the Securities. For purposes of the foregoing,
the Issuer's determination of the "comparable yield" is ___% per annum and the
Issuer's determination of the "projected payment schedule" is as set forth in
Exhibit ___ attached hereto. A Holder of Securities may also obtain the
comparable yield and projected payment schedule by submitting a written request
to the Issuer at the following address: Starwood Hotels & Resorts Worldwide,
Inc., 1111 Westchester Avenue, White Plains, New York, 10604, Attention: General
Counsel.

                                    ARTICLE 3

                                   REDEMPTION

                  SECTION 3.01. Notices to Trustee. Subject to Section 3.14,
prior to ________, 20__, Securities shall not be redeemable. Beginning on
________, 20__, the Issuer, at its option, may elect to redeem Securities in
accordance with the provisions thereof and of this Indenture. If the Issuer
elects to redeem Securities, it shall notify the Trustee in writing of the date
of redemption (the "Redemption Date"), the Principal Amount at Maturity of
Securities to be redeemed and the Redemption Price.

                  The Issuer shall give each notice to the Trustee provided for
in this Section at least 30 days but not more than 60 days before the Redemption
Date unless the Trustee consents to a shorter period. Such notice shall be
accompanied by an Officers' Certificate from the Issuer to the effect that such
redemption will comply with the conditions herein. If fewer than all the
Securities are to be redeemed, the record date relating to such redemption shall
be selected by the Issuer and given to the Trustee, which record date shall be
not fewer than 15 days after the date

                                       20
<PAGE>   26
of notice to the Trustee. Any such notice may be canceled at any time prior to
notice of such redemption being mailed to any Holder and shall thereby be void
and of no effect.

                  SECTION 3.02. Selection of Securities To Be Redeemed. If fewer
than all the Securities held in definitive form are to be redeemed, the Trustee
shall select the Securities to be redeemed on a pro rata basis in accordance
with the Principal Amounts at Maturity. The Trustee shall make the selection at
least 30 days but not more than 60 days before the Redemption Date from
outstanding Securities not previously called for redemption. Securities and
portions thereof that the Trustee selects shall be in Principal Amounts at
Maturity of $1,000 or integral multiples of $1,000. Provisions of this Indenture
that apply to Securities called for redemption also apply to portions of
Securities called for redemption. The Trustee shall promptly notify the Issuer
of the Securities or portions thereof to be redeemed.

                  If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed shall
be treated by the Trustee as outstanding for the purpose of such selection.

                  SECTION 3.03. Notice of Redemption. At least 30 days but not
more than 60 days before a Redemption Date of Securities, the Issuer shall mail
a notice of redemption by first-class mail to each Holder of Securities to be
redeemed at such Holder's registered address.

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

                  (1)      the Redemption Date;

                  (2)      the Redemption Price and the Conversion Rate;

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

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

                  (5) that Securities called for redemption may be converted at
         any time before the close of business on the Business Day immediately
         preceding the Redemption Date;

                  (6) that Holders who want to convert Securities must satisfy
         the requirements set forth therein and in this Indenture;

                  (7) if fewer than all the outstanding Securities are to be
         redeemed, the certificate numbers and Principal Amounts at Maturity of
         the particular Securities to be redeemed;

                  (8) that, unless the Issuer defaults in making payment of such
         Redemption Price or the Paying Agent is prohibited from making such
         payment pursuant to the terms of this Indenture, Original Issue
         Discount on Securities (or portions thereof) called for

                                       21
<PAGE>   27
         redemption, or interest (including Contingent Interest and Defaulted
         Interest), if any, will cease to accrue on and after the Redemption
         Date;

                  (9) the CUSIP number, if any, printed on the Securities being
         redeemed;

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

                  (11) the election of the Issuer (which, subject to the
         provisions of Article 11 hereof, shall be irrevocable) to deliver
         Shares or to pay cash in lieu of delivery of such Shares with respect
         to any Securities that may be converted after the mailing of such
         notice and prior to the Redemption Date.

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

                  SECTION 3.04. Effect of Notice of Redemption. Once notice of
redemption is mailed to the Holders, Securities called for redemption become due
and payable on the Redemption Date and at the Redemption Price stated in the
notice except for Securities which are converted in accordance with the terms of
this Indenture. Upon surrender to the Paying Agent, such Securities shall be
paid at the Redemption Price stated in the notice. Failure to give notice or any
defect in the notice to any Holder shall not affect the validity of the notice
to any other Holder.

                  SECTION 3.05. Deposit of Redemption Price. Prior to 11:00 a.m.
(New York City time) on the Redemption Date, the Issuer shall deposit with the
Paying Agent (or, if the Issuer or a Subsidiary of the Issuer is the Paying
Agent, shall segregate and hold in trust) money sufficient to pay the Redemption
Price of all Securities to be redeemed on that date other than Securities or
portions of Securities called for redemption that have been delivered by the
Issuer to the Trustee for cancellation or have been converted. The Paying Agent
shall as promptly as practicable return to the Issuer any money, not required
for that purpose because of conversion of Securities pursuant to Article 11. If
such money is then held by the Issuer in trust and is not required for such
purpose it shall be discharged from such trust. The Issuer at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed by the Paying Agent. Upon complying with this Section,
the Paying Agent shall have no further liability for the money delivered to the
Trustee.

                  SECTION 3.06. Securities Redeemed in Part. Upon surrender of a
Security that is redeemed in part, the Issuer shall execute and the Trustee
shall authenticate for the Holder (at the Issuer's expense) a new Security equal
in Principal Amount at Maturity to the unredeemed portion of the Security
surrendered.

                  SECTION 3.07. Purchase of Securities at Option of the Holder.

                  (a) General. The Securities shall be purchased by the Issuer
pursuant to the terms thereof as of ______, 20__, ______, 20__, ______, 20__,
______, 20__, and ______, 20__, (each, a "Purchase Date"), at the purchase price
of $______ per $1,000 of Principal Amount at

                                       22
<PAGE>   28
Maturity as of ______, 20__, $______ per $1,000 of Principal Amount at Maturity
as of ______, 20__, $______ per $1,000 of Principal Amount at Maturity as of
______, 20__, $______ per $1,000 of Principal Amount at Maturity as of ______,
20__ and $______ per $1,000 of Principal Amount at Maturity as of ______, 20__
(each, a "Purchase Price", as applicable) at the option of the Holder thereof,
upon:

                  (1) delivery to the Paying Agent by the Holder of a written
         notice of purchase (a "Purchase Notice"), substantially in the form of
         Exhibit ___ hereto, at any time from the opening of business on the
         date that is at least 20 Business Days prior to a Purchase Date until
         the close of business on the third Business Day prior to the Purchase
         Date stating:

                           (A) the certificate number of the Security which the
                  Holder will deliver to be purchased,

                           (B) the portion of the Principal Amount at Maturity
                  of the Security which the Holder will deliver to be purchased,
                  which portion must be in a Principal Amount at Maturity of
                  $1,000 or integral multiples thereof,

                           (C) that such Security shall be purchased as of the
                  Purchase Date pursuant to the terms and conditions specified
                  in the Securities and in this Indenture, and

                           (D) in the event the Issuer elects, pursuant to
                  Section 3.07(b), to pay the Purchase Price to be paid as of
                  such Purchase Date, in whole or in part, in Shares, but such
                  portion of the Purchase Price shall ultimately be payable to
                  such Holder entirely in cash because any of the conditions to
                  payment of the Purchase Price in Shares is not satisfied prior
                  to the close of business on such Purchase Date, as set forth
                  in Section 3.07(d), whether such Holder elects (i) to withdraw
                  such Purchase Notice as to some or all of the Securities to
                  which such Purchase Notice relates (stating the Principal
                  Amount at Maturity and certificate numbers of the Securities
                  as to which such withdrawal shall relate), or (ii) to receive
                  cash in respect of the entire Purchase Price for all
                  Securities (or portions thereof) to which such Purchase Notice
                  relates; and

                  (2) delivery of such Security to the Paying Agent for
         cancellation prior to, on or after the Purchase Date (together with all
         necessary endorsements) at the offices of the Paying Agent, such
         delivery being a condition to receipt by the Holder of the Purchase
         Price therefor; provided, however, that such Purchase Price shall be so
         paid pursuant to this Section 3.07 only if the Security so delivered to
         the Paying Agent shall conform in all respects to the description
         thereof in the related Purchase Notice.

                  If a Holder, in such Holder's Purchase Notice, fails to
indicate such Holder's choice with respect to the election set forth in clause
(D) of Section 3.07(a)(1), such Holder shall be deemed to have elected to
receive cash in respect of the Purchase Price for all Securities subject to such
Purchase Notice in the circumstances set forth in such clause (D).

                  The Issuer shall purchase from the Holder thereof, pursuant to
this Section 3.07, a portion of a Security if the Principal Amount at Maturity
of such portion is $1,000 or an integral

                                       23
<PAGE>   29
multiple of $1,000 if so requested by the Holder. Provisions of this Indenture
that apply to the purchase of all of a Security also apply to the purchase of
such portion of such Security.

                  Any purchase by the Issuer contemplated pursuant to the
provisions of this Section 3.07 shall be consummated by the delivery of the
consideration to be received by the Holder promptly following the later of the
Purchase Date and the time of delivery of the Security.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent the Purchase Notice contemplated by this Section
3.07(a) shall have the right to withdraw such Purchase Notice at any time prior
to the close of business on the Purchase Date by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 3.09.

                  The Paying Agent shall promptly notify the Issuer of the
receipt by it of any Purchase Notice or written notice of withdrawal thereof.

                  (b) Issuer's Right to Elect Manner of Payment of Purchase
Price. The Securities to be purchased pursuant to Section 3.07(a) may be paid
for, at the election of the Issuer, in cash or in Shares valued at the Market
Price, or in any combination of cash and Shares, subject to the conditions set
forth in Sections 3.07(c) and (d). The Issuer shall designate, in the Issuer's
Notice delivered pursuant to Section 3.07(e), whether the Issuer will purchase
the Securities for cash or Shares, or, if a combination thereof, the percentages
of the Purchase Price of Securities in respect of which it will pay in cash or
Shares; provided that the Issuer shall pay cash for fractional Shares. For
purposes of determining the existence of potential fractional Shares, all
Securities subject to purchase by the Issuer held by a Holder shall be
considered together (no matter how many separate certificates are to be
presented). Each Holder whose Securities are purchased pursuant to this Section
3.07 shall receive the same percentage of cash or Shares in payment of the
Purchase Price for such Securities, except (i) as provided in Section 3.07(d)
with regard to the payment of cash in lieu of fractional Shares and (ii) in the
event that the Issuer is unable to purchase the Securities of a Holder or
Holders for Shares because any necessary qualifications or registrations of the
Shares under applicable state or foreign securities laws cannot be obtained, the
Issuer may purchase the Securities of such Holder or Holders for cash. The
Issuer may not change its election with respect to the consideration (or
components or percentages of components thereof) to be paid once the Issuer has
given the Issuer's Notice to Securityholders except pursuant to this Section
3.07(b) or pursuant to Section 3.07(d) in the event of a failure to satisfy,
prior to the close of business on the Purchase Date, any condition to the
payment of the Purchase Price, in whole or in part, in Shares.

                  If the Issuer elects to pay all or part of the Purchase Price
in Shares, the portion of accrued Original Issue Discount (or interest if the
Issuer has exercised its option to convert the Securities into semi-annual
coupon notes following the occurrence of a Tax Event) attributable to the period
from the Issue Date (or, if the Issuer has exercised the option to convert the
Securities into semi-annual coupon notes following the occurrence of a Tax
Event, the later of (x) the date of such exercise, and (y) the date on which
interest was last paid) through the Purchase Date and with respect to the
surrendered Security and (except as provided in the Security) accrued Contingent
Interest and Defaulted Interest, if any, with respect to the

                                       24
<PAGE>   30
surrendered Security shall not be cancelled, extinguished or forfeited, but
rather shall be deemed to be paid in full to the Holder thereof through the
delivery of the Shares (together with cash payment, if any, in lieu of
fractional Shares) and cash, if any, in exchange for the Security being
purchased pursuant to the terms hereof; and such cash and the fair market value
of such Shares (together with any such cash payment in lieu of fractional
Shares) shall be treated as delivered pro rata, to the extent thereof, first in
exchange for Original Issue Discount (or interest, if the Issuer has exercised
its option to convert the Securities into semi-annual coupon notes following the
occurrence of a Tax Event) accrued through the Purchase Date and accrued
Contingent Interest and Defaulted Interest, if any, and the balance, if any, of
such cash and the fair market value of such Shares (and any such cash payment)
shall be treated as delivered in exchange for the Issue Price of the Security
being purchased pursuant to the provisions hereof.

                  (c) Purchase with Cash. On each Purchase Date, at the option
of the Issuer, the Purchase Price of Securities in respect of which a Purchase
Notice pursuant to Section 3.07(a) has been given, or a specified percentage
thereof, may be paid by the Issuer with cash equal to the aggregate Purchase
Price of such Securities.

                  (d) Payment by Issuance of Shares. On each Purchase Date, at
the option of the Issuer, the Purchase Price of Securities in respect of which a
Purchase Notice pursuant to Section 3.07(a) has been given, or a specified
percentage thereof, may be paid by the Issuer by the issuance of a number of
Shares equal to the quotient obtained by dividing (i) the amount of cash to
which the Securityholders would have been entitled had the Issuer elected to pay
all or such specified percentage, as the case may be, of the Purchase Price of
such Securities in cash by (ii) the Market Price of a Share, subject to the next
succeeding paragraph.

                  The Issuer may not issue a fractional Share in payment of the
Purchase Price. Instead the Issuer shall pay cash for the current market value
of the fractional Share. The current market value of a fraction of a Share shall
be determined, to the nearest 1/1,000th of a Share, by multiplying the Market
Price by such fraction and rounding the product to the nearest whole cent. It is
understood that if a Holder elects to have more than one Security purchased, the
number of Shares shall be based on the aggregate amount of Securities to be
purchased.

                  The Issuer's right to exercise its election to purchase the
Securities pursuant to Section 3.07 through the issuance of Shares shall be
conditioned upon:

                  (i) the Issuer's not having given its Issuer's Notice of an
         election to pay entirely in cash and its giving of a timely Issuer's
         Notice of election to purchase all or a specified percentage of the
         Securities with Shares as provided herein;

                  (ii) the listing of the Shares to be issued in respect of the
         payment of the Purchase Price on the principal United States National
         Securities Exchange on which the Shares are then listed or quoted;

                  (iii) the registration of the Shares to be issued in respect
         of the payment of the Purchase Price under the Securities Act and the
         Exchange Act, if required; and

                  (iv) any necessary qualification or registration under
         applicable state securities laws or the availability of an exemption
         from such qualification and registration.

                                       25
<PAGE>   31
                  The Issuer may pay the Purchase Price (or any portion thereof)
in Shares only if the information necessary to calculate the Market Price is
published in a daily newspaper of national circulation. If the foregoing
conditions are not satisfied with respect to a Holder or Holders prior to the
close of business on the Purchase Date and the Issuer has elected to purchase
the Securities pursuant to this Section 3.07 through the issuance of Shares, the
Issuer shall pay the entire Purchase Price of the Securities of such Holder or
Holders in cash.

                  The "Market Price" means the average of the Sale Prices of the
Shares for the five day trading period ending on the third trading day prior to
the applicable Purchase Date, Change in Control Purchase Date or Conversion
Date, as the case may be, appropriately adjusted to take into account the
occurrence, during the period commencing on the first of such trading days
during such five trading day period and ending on such Purchase Date, Change in
Control Purchase Date or Conversion Date, as the case may be, of any event
described in Section 11.06, 11.07 or 11.08; subject, however, to the conditions
set forth in Sections 11.09 and 11.10.

                  The "Sale Price" of the Shares on any date means the closing
per Share sale price (or, if no closing sale price is reported, the average of
the bid and ask prices or, if more than one in either case, the average of the
average bid and average ask prices) on such date as reported in the composite
transactions for the principal United States National Securities Exchange on
which the Shares are then listed or quoted.

                  (e) Notice. The Issuer's notice of whether it intends to pay
the Purchase Price with cash or Shares or any combination thereof shall be sent
to the Holders (and to beneficial owners as required by applicable law) in the
manner provided herein (the "Issuer's Notice"). The Issuer's Notice shall be
sent to Holders (and to beneficial owners as required by applicable law) not
less than 20 Business Days prior to such Purchase Date (the "Issuer's Notice
Date"). The Issuer's Notice shall state the manner of payment and shall contain
the following information:

                  In the event the Issuer has elected to pay the Purchase Price
(or a specified percentage thereof) with Shares, the Issuer's Notice shall:

                  (1) state that each Holder will receive Shares in respect of
         the specified percentage of the Purchase Price of the Securities held
         by such Holder (except any cash amount to be paid in lieu of fractional
         Shares);

                  (2) state that the total number of Shares to be issued to
         Holders will be equal to the quotient obtained by dividing (i) the
         amount of cash to which the Securityholders would have been entitled
         had the Issuer elected to pay all or such specified percentage, as the
         case may be, of the Purchase Price of such Securities in cash by (ii)
         the Market Price of a Share;

                  (3) set forth the method of calculating the Market Price of a
         Share; and

                  (4) state that because the Market Price of a Share will be
         determined prior to the Purchase Date, Holders will bear the market
         risk with respect to the value of a Share to be received from the date
         such Market Price is determined to the Purchase Date.

                                       26
<PAGE>   32
                  In any case, each Issuer's Notice shall include a form of
Purchase Notice to be completed by a Securityholder and shall state:

                  (i) the Purchase Price and the Conversion Rate applicable on
         the Issuer's Notice Date;

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

                  (iii) that Securities as to which a Purchase Notice has been
         given may be converted pursuant to Article 11 hereof only if the
         applicable Purchase Notice has been withdrawn in accordance with the
         terms of this Indenture;

                  (iv) that Securities must be surrendered to the Paying Agent
         for cancellation to collect payment;

                  (v) that the Purchase Price for any security as to which a
         Purchase Notice has been given and not withdrawn will be paid promptly
         following the later of the Purchase Date and the time of surrender of
         such Security as described in (iv);

                  (vi) the procedures the Holder must follow to exercise rights
         under Section 3.08 and a brief description of those rights;

                  (vii) briefly, the conversion rights of the Securities;

                  (viii) the procedures for withdrawing a Purchase Notice
         (including, without limitation, for a conditional withdrawal pursuant
         to the terms of Section 3.07(a)(1)(D) or Section 3.09);

                  (ix) that, unless the Issuer defaults in making payment of
         such Purchase Price, Original Issue Discount on Securities covered by
         any Purchase Notice, or interest (including Contingent Interest or
         Defaulted Interest), if any, will cease to accrue on and after the
         Purchase Date; and

                  (x) the CUSIP number of the Securities, if applicable.

                  At the Issuer's request, the Trustee shall give such Issuer's
Notice in the name of the Issuer and at the Issuer's expense; provided, however,
that, in all cases, the text of such Issuer's Notice shall be prepared by the
Issuer.

                  (f) Covenants of the Issuer and the Trust. All Shares
delivered upon purchase of the Securities shall be newly issued Shares, shall be
duly authorized, validly issued, fully paid and nonassessable, and shall be free
from preemptive rights and free of any lien or adverse claim.

                  The Issuer and the Trust (except in the event of a Share
Separation Event) shall use their best efforts to list or cause to have quoted
any Shares to be issued to purchase Securities on each United States National
Securities Exchange or automated over-the-counter trading market in the United
States on which the Shares are then listed or quoted.

                                       27
<PAGE>   33
                  (g) Procedure upon Purchase. The Issuer shall deposit cash (in
respect of a cash purchase under Section 3.07(c) or for fractional interests, as
applicable) or Shares, or a combination thereof, as applicable, at the time and
in the manner as provided in Section 3.10, sufficient to pay the aggregate
Purchase Price of all Securities to be purchased pursuant to this Section 3.07.
As soon as practicable after the Purchase Date, the Issuer shall deliver to each
Holder entitled to receive Shares through its stock transfer agent, a
certificate for the number of Shares issuable in payment of the Purchase Price.
The Person in whose name the certificate for Shares is registered shall be
treated as a holder of record of Shares on the Business Day following the
Purchase Date. Subject to Section 3.07(d), no payment or adjustment will be made
for dividends on any Shares delivered in payment of the Purchase Price the
record date for which occurred on or prior to the Purchase Date.

                  (h) Taxes. If a Holder of a Security is paid in Shares, the
Issuer shall pay any documentary, stamp or similar issue or transfer tax due on
such issue of Shares. However, the Holder shall pay any such tax which is due
because the Holder requests the Shares to be issued in a name other than the
Holder's name. The Paying Agent may refuse to deliver the certificates
representing the Shares being issued in a name other than the Holder's name
until the Paying Agent receives a sum that the Issuer deems to be sufficient to
pay any tax which will be due because the Shares are to be issued in a name
other than the Holder's name. Nothing herein shall preclude any income tax
withholding required by law or regulations.

                  SECTION 3.08. Repurchase of Securities at Option of the Holder
upon Change in Control.

                  (a) General. If on or prior to _________, 20__ there shall
have occurred a Change in Control, Securities shall be purchased by the Issuer,
at a purchase price specified in the Securities (the "Change in Control Purchase
Price"), as of a date that is not later than 35 Business Days after the
occurrence of the Change in Control (the "Change in Control Purchase Date"), at
the option of the Holder thereof, upon:

                  (1) delivery to the Paying Agent by the Holder of a written
         notice of purchase (a "Change in Control Purchase Notice"),
         substantially in the form of Exhibit __ hereto, at any time until the
         close of business on the third Business Day prior to the Change in
         Control Purchase Date stating:

                           (A) the certificate number of the Security which the
                  Holder will deliver to be purchased,

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

                           (C) that such Security shall be purchased as of the
                  Change in Control Purchase Date pursuant to the terms and
                  conditions specified in the Securities and in this Indenture,
                  and

                  (2) delivery of such Security to the Paying Agent for
         cancellation prior to, on or after the Change in Control Purchase Date
         (together with all necessary endorsements) at

                                       28
<PAGE>   34
         the offices of the Paying Agent, such delivery being a condition to
         receipt by the Holder of the Change in Control Purchase Price therefor;
         provided, however, that such Change in Control Purchase Price shall be
         so paid pursuant to this Section 3.08 only if the Security so delivered
         to the Paying Agent shall conform in all respects to the description
         thereof in the related Change in Control Purchase Notice.

                  The Issuer shall purchase from the Holder thereof, pursuant to
this Section 3.08, a portion of a Security if the Principal Amount at Maturity
of such portion is $1,000 or an integral multiple of $1,000 if so requested by
the Holder. Provisions of this Indenture that apply to the purchase of all of a
Security also apply to the purchase of such portion of such Security.

                  Any purchase by the Issuer contemplated pursuant to the
provisions of this Section 3.08 shall be consummated by the delivery of the
consideration to be received by the Holder promptly following the later of the
Change in Control Purchase Date and the time of delivery of the Security.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent the Change in Control Purchase Notice
contemplated by this Section 3.08(a) shall have the right to withdraw such
Change in Control Purchase Notice at any time prior to the close of business on
the Change in Control Purchase Date by delivery of a written notice of
withdrawal to the Paying Agent in accordance with Section 3.09.

                  The Paying Agent shall promptly notify the Issuer of the
receipt by it of any Change in Control Purchase Notice or written notice of
withdrawal thereof.

                  A "Change in Control" shall be deemed to have occurred at such
time as any of the following events shall occur:

                  (i) any Person, including its Affiliates and associates, other
         than the Issuer, its Subsidiaries or its or their employee benefit
         plans, or an Excluded Person, files a Schedule TO (or any schedule,
         form or report under the Exchange Act) disclosing that such Person has
         become the direct or indirect beneficial owner of 50% or more of the
         voting power of the Shares or other Capital Stock into which the Shares
         are reclassified or changed; or

                  (ii) there shall be consummated any Share exchange,
         consolidation or merger of the Issuer pursuant to which the Shares will
         be converted into cash, securities or other property, in each case
         other than a Share exchange, consolidation or merger of the Issuer in
         which the holders of the Shares immediately prior to the Share
         exchange, consolidation or merger of the Issuer have, directly or
         indirectly, at least a majority of the total voting power in the
         aggregate of all classes of Capital Stock of the continuing or
         surviving corporation immediately after the Share exchange,
         consolidation or merger.

                   An "Excluded Person" is Barry S. Sternlicht or any of his
Affiliates in which he beneficially owns more voting securities than any other
Person.

                  (b) Purchase with Cash. On each Change in Control Purchase
Date, the Change in Control Purchase Price of Securities in respect of which a
Change in Control Purchase Notice

                                       29
<PAGE>   35
pursuant to Section 3.08(a) has been given shall be paid by the Issuer with cash
equal to the aggregate Change in Control Purchase Price of such Securities.

                  (c) Notice of Change in Control. Within 15 Business Days after
the occurrence of a Change in Control, the Issuer shall mail notice of the
Change in Control (the "Change in Control Notice") by first-class mail to the
Trustee and to each Holder (and to beneficial owners as required by applicable
law). The Change in Control Notice shall be sent to Holders (and to beneficial
owners as required by applicable law) not less than 35 Business Days prior to
such Change in Control Purchase Date (the "Change in Control Notice Date"). The
notice shall include a form of Change in Control Purchase Notice to be completed
by the Securityholder and shall state:

                  (1) briefly, the events causing a Change in Control and the
         date of such Change in Control;

                  (2) the date by which the Change in Control Purchase Notice
         pursuant to this Section 3.08 must be given;

                  (3) the Change in Control Purchase Date;

                  (4) the Change in Control Purchase Price;

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

                  (6) the Conversion Rate applicable on the Change in Control
         Notice Date and any adjustments to the Conversion Rate;

                  (7) that Securities as to which a Change in Control Purchase
         Notice has been given may be converted pursuant to Article 11 hereof
         only if the Change in Control Purchase Notice has been withdrawn in
         accordance with the terms of this Indenture; and

                  (8) briefly, the procedures the Holder must follow to exercise
         rights under this Section 3.08.

                  At the Issuer's request, the Trustee shall give such Change in
Control Notice in the name of the Issuer and at the Issuer's expense; provided,
however, that, in all cases, the text of such Change in Control Notice shall be
prepared by the Issuer.

                  (d) Procedure upon Purchase. The Issuer shall deposit cash at
the time and in the manner as provided in Section 3.10, sufficient to pay the
aggregate Change in Control Purchase Price of all Securities to be purchased
pursuant to this Section 3.08.

                  SECTION 3.09. Effect of Purchase Notice or Change in Control
Purchase Notice. Upon receipt by the Paying Agent of the Purchase Notice or
Change in Control Purchase Notice specified in Section 3.07(a) or Section
3.08(a) or 3.14(b), as applicable, the Holder of the Security in respect of
which such Purchase Notice or Change in Control Purchase Notice, as the case may
be, was given shall (unless such Purchase Notice or Change in Control Purchase
Notice is withdrawn as specified in the following two paragraphs) thereafter be
entitled to receive solely

                                       30
<PAGE>   36
the Purchase Price or Change in Control Purchase Price, as the case may be, with
respect to such Security. Such Purchase Price or Change in Control Purchase
Price shall be paid to such Holder, subject to receipts of funds and/or
securities by the Paying Agent, promptly following the later of (x) the Purchase
Date, the Change in Control Purchase Date or the Trust Assumption Event Purchase
Date, as the case may be, with respect to such Security (provided the conditions
in Section 3.07(a) or Section 3.08(a) or 3.14(b), as applicable, have been
satisfied) and (y) the time of delivery of such Security to the Paying Agent by
the Holder thereof in the manner required by Section 3.07(a) or Section 3.08(a)
or Section 3.14(e), as applicable. Securities in respect of which a Purchase
Notice or Change in Control Purchase Notice, as the case may be, has been given
by the Holder thereof may not be converted pursuant to Article 11 hereof on or
after the date of the delivery of such Purchase Notice or Change in Control
Purchase Notice, as the case may be, unless such Purchase Notice or Change in
Control Purchase Notice, as the case may be, has first been validly withdrawn as
specified in the following two paragraphs.

                  A Purchase Notice or Change in Control Purchase Notice, as the
case may be, may be withdrawn by means of a written notice of withdrawal
delivered to the office of the Paying Agent in accordance with the Purchase
Notice or Change in Control Purchase Notice, as the case may be, at any time
prior to the close of business on the Purchase Date or the Change in Control
Purchase Date, as the case may be, specifying:

                  (1) the certificate number of the Security in respect of which
         such notice of withdrawal is being submitted,

                  (2) the Principal Amount at Maturity of the Security with
         respect to which such notice of withdrawal is being submitted, and

                  (3) the Principal Amount at Maturity, if any, of such Security
         which remains subject to the original Purchase Notice or Change in
         Control Purchase Notice, as the case may be, and which has been or will
         be delivered for purchase or repurchase by the Issuer.

                  A written notice of withdrawal of a Purchase Notice or Change
in Control Purchase Notice may be in the form set forth in the preceding
paragraph or may be in the form of (i) a conditional withdrawal contained in a
Purchase Notice pursuant to the terms of Section 3.07(a)(1)(D) or (ii) a
conditional withdrawal containing the information set forth in Section
3.07(a)(1)(D) and the preceding paragraph and contained in a written notice of
withdrawal delivered to the Paying Agent as set forth in the preceding
paragraph.

                  There shall be no purchase of any Securities pursuant to
Section 3.07 or 3.08 (other than through the issuance of Shares in payment of
the Purchase Price), including cash in lieu of fractional shares if there has
occurred (prior to, on or after, as the case may be, the giving, by the Holders
of such Securities, of the required Purchase Notice or Change in Control
Purchase Notice, as the case may be) and is continuing an Event of Default
(other than a default in the payment of the Purchase Price or Change in Control
Purchase Price, as the case may be, with respect to such Securities) and the
Paying Agent shall promptly return to the respective Holders thereof any
Securities (x) with respect to which a Purchase Notice or Change in Control
Purchase Notice, as the case may be, has been withdrawn in compliance with this
Indenture, or (y) held by it during the continuance of an Event of Default
(other than a default in the payment

                                       31
<PAGE>   37
of the Purchase Price or Change in Control Purchase Price, as the case may be,
with respect to such Securities) in which case, upon such return, the Purchase
Notice or Change in Control Purchase Notice with respect thereto shall be deemed
to have been withdrawn.

                  SECTION 3.10. Deposit of Purchase Price or Change in Control
Purchase Price. Prior to 11:00 a.m. (local time in The City of New York) on the
Business Day following the Purchase Date or the Change in Control Purchase Date,
as the case may be, the Issuer shall deposit with the Trustee or with the Paying
Agent (or, if the Issuer or a Subsidiary of the Issuer is the Paying Agent,
shall segregate and hold in trust) an amount of money (in immediately available
funds if deposited on such Business Day) sufficient to pay the cash portion of
the aggregate Purchase Price or Change in Control Purchase Price, as the case
may be, of all the Securities or portions thereof which are to be purchased as
of the Purchase Date or Change in Control Purchase Date, as the case may be, and
shall instruct its stock transfer agent to deliver the number of Shares issuable
in payment of the remaining portion of the aggregate Purchase Price. The Issuer
shall promptly notify the Trustee in writing of the amount of any deposits of
cash or deliveries of Shares made pursuant to this Section.

                  SECTION 3.11. Securities Purchased or Repurchased in Part. Any
Security which is to be purchased or repurchased only in part shall be
surrendered at the office of the Paying Agent (with, if the Issuer or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Issuer and the Trustee duly executed by, the Holder
thereof or such Holder's attorney duly authorized in writing) and the Issuer
shall execute and the Trustee shall authenticate and deliver to the Holder of
such Security, without service charge, a new Security or Securities, of any
authorized denomination as requested by such Holder in aggregate Principal
Amount at Maturity equal to, and in exchange for, the portion of the Principal
Amount at Maturity of the Security so surrendered which is not purchased.

                  SECTION 3.12. Covenant to Comply With Securities Laws Upon
Purchase or Repurchase of Securities. In connection with any offer to purchase
or repurchase or purchase or repurchase of Securities under Section 3.07 or 3.08
hereof (provided that such offer or purchase or repurchase constitutes an
"issuer tender offer" for purposes of Rule 13e-4 (which term, as used herein,
includes any successor provision thereto) under the Exchange Act at the time of
such offer or purchase), the Issuer shall (i) comply with Rule 13e-4 and Rule
14e-1 under the Exchange Act, (ii) file the related Schedule TO (or any
successor schedule, form or report) under the Exchange Act, and (iii) otherwise
comply with all Federal and state securities laws so as to permit the rights and
obligations under Sections 3.07 and 3.08 to be exercised in the time and in the
manner specified in Sections 3.07 and 3.08.

                  SECTION 3.13. Repayment to the Issuer. The Trustee and the
Paying Agent shall return to the Issuer any cash that remains unclaimed,
together with interest or dividends, if any, thereon, held by them for the
payment of the Purchase Price or Change in Control Purchase Price, as the case
may be; provided, however, that to the extent that the aggregate amount of cash
deposited by the Issuer pursuant to Section 3.10 exceeds the cash portion of the
aggregate Purchase Price or Change in Control Purchase Price, as the case may
be, of the Securities or portions thereof which the Issuer is obligated to
purchase as of the Purchase Date or Change in Control Purchase Date, as the case
may be, then on the Business Day following the Purchase

                                       32
<PAGE>   38
Date or Change in Control Purchase Date, as the case may be, the Trustee shall
return any such excess to the Issuer.

                  SECTION 3.14. Redemption or Repurchase Upon Trust Assumption
Event.

                  (a) By the Issuer or the Trust. If there shall have occurred a
Trust Assumption Event, the Issuer or the Trust, at either the Issuer's or the
Trust's option, may elect to redeem Securities in accordance with the provisions
thereof and of this Indenture. If either the Issuer or the Trust elect to redeem
Securities, it shall notify the Trustee in writing of the date of redemption
(the "Trust Assumption Event Redemption Date"), which date shall be a date not
later than 60 days after the effective date of the Trust Assumption Event, the
Principal Amount at Maturity of Securities to be redeemed and the Trust
Assumption Event Redemption Price.

                  The Issuer or the Trust shall give notice to the Trustee
provided for in this Section at least 30 days but not more than 60 days before
the Trust Assumption Event Redemption Date unless the Trustee consents to a
shorter period. Such notice shall be accompanied by an Officers' Certificate
from the Issuer or the Trust to the effect that such redemption will comply with
the conditions herein. If fewer than all the Securities are to be redeemed, the
record date relating to such redemption shall be selected by the Issuer or the
Trust and given to the Trustee, which record date shall be not fewer than 15
days after the date of notice to the Trustee. Any such notice may be canceled at
any time prior to notice of such redemption being mailed to any Holder and shall
thereby be void and of no effect.

                  If fewer than all the Securities held in definitive form are
to be redeemed, the Trustee shall select the Securities to be redeemed on a pro
rata basis in accordance with the Principal Amounts at Maturity. The Trustee
shall make the selection at least 30 days but no more than 60 days before the
Trust Assumption Event Redemption Date from outstanding Securities not
previously called for redemption. Securities and portions thereof that the
Trustee selects shall be in Principal Amounts at Maturity of $1,000 or integral
multiples of $1,000. Provisions of this Indenture that apply to Securities
called for redemption also apply to portions of Securities called for
redemption. The Trustee shall promptly notify the Issuer or the Trust of the
Securities or portions thereof to be redeemed.

                  If any Security selected for partial redemption is converted
in part before termination of the conversion right with respect to the portion
of the Security so selected, the converted portion of such Security shall be
deemed (so far as may be) to be the portion selected for redemption. Securities
which have been converted during a selection of Securities to be redeemed shall
be treated by the Trustee as outstanding for the purpose of such selection.

                  At least 30 days but not more than 60 days before a Trust
Assumption Event Redemption Date, the Issuer or the Trust shall mail a notice of
redemption by first-class mail to each Holder of Securities to be redeemed at
such Holder's registered address.

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

                  (1) the Trust Assumption Event Redemption Date;

                  (2) the Trust Assumption Event Redemption Price;

                                       33
<PAGE>   39
                  (3) the name and address of the Paying Agent;

                  (4) that Securities called for redemption must be surrendered
         to the Paying Agent to collect the Trust Assumption Event Redemption
         Price;

                  (5) that Holders who want to convert Securities must satisfy
         the requirements set forth therein and in this Indenture;

                  (6) if fewer than all the outstanding Securities are to be
         redeemed, the certificate numbers and Principal Amounts at Maturity of
         the particular Securities to be redeemed;

                  (7) that, unless the Issuer or Trust defaults in making
         payment of such Trust Assumption Event Redemption Price or the Paying
         Agent is prohibited from making such payment pursuant to the terms of
         this Indenture, Original Issue Discount on Securities (or portions
         thereof) called for redemption, or interest (including Contingent
         Interest and Defaulted Interest), if any, will cease to accrue on and
         after the Trust Assumption Event Redemption Date;

                  (8) the CUSIP number, if any, printed on the Securities being
         redeemed; and

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

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

                  Once notice of redemption is mailed, Securities called for
redemption become due and payable on the Trust Assumption Event Redemption Date
and at the Trust Assumption Event Redemption Price stated in the notice except
for Securities which are converted in accordance with the terms of this
Indenture. Upon surrender to the Paying Agent, such Securities shall be paid at
the Trust Assumption Event Redemption Price stated in the notice. Failure to
give notice or any defect in the notice to any Holder shall not affect the
validity of the notice to any other Holder.

                  (b) By the Holder. If there shall have occurred a Trust
Assumption Event, Securities shall be purchased by the Trust at a purchase price
specified in the Securities (the "Trust Assumption Event Purchase Price"), as of
a date that is not later than 60 days after the date of the Trust Assumption
Event (the "Trust Assumption Event Purchase Date"), at the option of Holder
upon:

                  (1) delivery to the Trustee by Holder of a Purchase Notice,
         substantially in the form of Exhibit ___ hereto, at any time until the
         close of business on the third Business Day prior to the Trust
         Assumption Event Purchase Date stating:

                           (A) the certificate number of the Security which the
                  Holder will deliver to be purchased,

                                       34
<PAGE>   40
                           (B) the portion of the Principal Amount at Maturity
                  of the Security which the Holder will deliver to be purchased,
                  which portion must be in a Principal Amount at Maturity of
                  $1,000 or integral multiples thereof, and

                           (C) that such Security shall be purchased as of the
                  Trust Assumption Event Purchase Date pursuant to the terms and
                  conditions specified in the Securities and in this Indenture,
                  and

                  (2) delivery of such Security to the Paying Agent for
         cancellation prior to, on or after the Trust Assumption Event Purchase
         Date (together with all necessary endorsements) at the offices of the
         Paying Agent, such delivery being a condition to receipt by the Holder
         of the Trust Assumption Event Purchase Price therefor; provided,
         however, that such Trust Assumption Event Purchase Price shall be so
         paid pursuant to this Section 3.14(b) only if the Security so delivered
         to the Paying Agent shall conform in all respects to the description
         thereof in the related Purchase Notice.

                  The Trust shall purchase from the Holder thereof, pursuant to
this Section 3.14(b), a portion of a Security if the Principal Amount at
Maturity of such portion is $1,000 or an integral multiple of $1,000 if so
requested by the Holder. Provisions of this Indenture that apply to the purchase
of all of a Security also apply to the purchase of such portion of such
Security.

                  Any purchase by the Trust contemplated pursuant to the
provisions of this Section 3.14(b) shall be consummated by the delivery of the
consideration to be received by the Holder promptly following the later of the
Trust Assumption Event Purchase Date and the time of delivery of the Security.

                  Notwithstanding anything herein to the contrary, any Holder
delivering to the Paying Agent the Purchase Notice contemplated by this Section
3.14(b) shall have the right to withdraw such Purchase Notice at any time prior
to the close of business on the Trust Assumption Event Purchase Date by delivery
of a written notice of withdrawal to the Paying Agent in accordance with Section
3.09.

                  The Paying Agent shall promptly notify the Trust of the
receipt by it of any Purchase Notice or written notice of withdrawal thereof.

                  (c) Purchase with Cash. On each Trust Assumption Event
Redemption Date and Trust Assumption Event Purchase Date, the Trust Assumption
Event Purchase Price of Securities in respect of which a notice of redemption
pursuant to Section 3.14(a) or a Purchase Notice pursuant to Section 3.14(b) has
been given, shall be paid by the Issuer or the Trust, as the case may be, with
cash equal to the aggregate Trust Assumption Event Purchase Price of such
Securities.

                  (d) Notice of Trust Assumption Event. Within 15 days after the
occurrence of a Trust Assumption Event, the Issuer or the Trust shall mail
notice of the Trust Assumption Event (the "Trust Assumption Event Notice") by
first-class mail to the Trustee and to each Holder (and to beneficial owners as
required by applicable law). The Trust Assumption Event Notice shall be sent to
Holders (and to beneficial owners as required by applicable law) not less than
35 days prior to such Trust Assumption Event Redemption Date or Trust Assumption
Event Purchase

                                       35
<PAGE>   41
Date (the "Trust Assumption Event Notice Date"). The notice shall include a form
of Purchase Notice to be completed by the Securityholder and shall state:

                  (1) briefly, the events causing a Trust Assumption Event and
         the date of such Trust Assumption Event;

                  (2) the date by which the Purchase Notice pursuant to this
         Section 3.14 must be given;

                  (3) the Trust Assumption Event Redemption Date or Trust
         Assumption Event Purchase Date;

                  (4) the Trust Assumption Event Purchase Price;

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

                  (6) the Conversion Rate applicable on the Trust Assumption
         Event Notice Date and any adjustments to the Conversion Rate;

                  (7) that Securities as to which a Purchase Notice has been
         given may be converted pursuant to Article 11 hereof only if the
         Purchase Notice has been withdrawn in accordance with the terms of this
         Indenture; and

                  (8) briefly, the procedures the Holder must follow to exercise
         rights under this Section 3.14(b).

                  At the Issuer's or the Trust's request, the Trustee shall give
such Trust Assumption Event Notice in the name of the Issuer or the Trust and at
the Issuer's or the Trust's expense; provided, however, that, in all cases, the
text of such Purchase Notice shall be prepared by the Issuer or the Trust.

                  (e) Procedure upon Purchase. The Issuer or the Trust shall
deposit cash at the time and in the manner as provided in Section 3.10,
sufficient to pay the aggregate Trust Assumption Event Purchase Price of all
Securities to be purchased pursuant to this Section 3.14.

                                   ARTICLE 4

                                    COVENANTS

                  SECTION 4.01. Payment of Securities. The Issuer shall promptly
make all payments in respect of the Securities on the dates and in the manner
provided in the Securities and in this Indenture. Such payments shall be
considered made on the date due if on such date the Trustee or the Paying Agent
holds, in accordance with this Indenture, money sufficient to make all payments
with respect of the Securities then due and the Trustee or the Paying Agent, as
the case may be, is not prohibited from paying such money to the Securityholders
on that date pursuant to the terms of this Indenture.

                                       36
<PAGE>   42
                  SECTION 4.02. Financial Information; SEC Reports. At any time
the Issuer is not subject to either Section 13 or 15(d) of the Exchange Act, the
Issuer shall at the request of any Holder (or holders of Shares issued upon
conversion of the Securities) provide to such Holder (or holders of such Shares)
and any prospective purchaser designated by such Holders (or holders of such
Shares), as the case may be, such information, if any, required by Rule
144A(d)(4) under the Securities Act. Further, the Issuer shall file with the
Trustee, within 15 days after it files the same with the SEC, copies of its
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Issuer is required to file with the SEC pursuant to Section
13 or 15(d) of the Exchange Act. Delivery of such reports, information and
documents to the Trustee is for informational purposes only and the Trustee's
receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including
the Issuer's compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers' Certificates). The Issuer
also shall comply with any other provisions of Trust Indenture Act Section
314(a).

                  SECTION 4.03. Corporate Existence. The Issuer shall do or
cause to be done all things necessary to preserve and keep in full force and
effect its corporate existence, material rights (charter and statutory) and
material franchises (other than as contemplated by Section 5.01); provided,
however, that the Issuer shall not be required to preserve any such right or
franchise if the Board of Directors shall determine that the preservation of
such rights or franchises is no longer desirable in the conduct of the business
of the Issuer.

                  SECTION 4.04. Restrictions on Liens. So long as any of the
Securities are outstanding, the Issuer shall not pledge, mortgage or
hypothecate, or permit to exist, and shall not cause, suffer or permit any
Restricted Subsidiary to pledge, mortgage or hypothecate, or permit to exist,
except in favor of the Issuer or any Subsidiary, any mortgage, pledge or other
lien upon, any Principal Property at any time owned by it, to secure any
indebtedness, without making effective provisions whereby the Securities shall
be equally and ratably secured with any and all such indebtedness and with any
other indebtedness thereby; provided, however, that this restriction shall not
apply to or prevent the creation or existence of:

                  (a) mortgages or other liens on any such property acquired,
constructed or improved by the Issuer or a Restricted Subsidiary to secure or
provide for the payment of any part of the purchase price of such property or
the cost of such construction or improvement or any mortgage or other lien on
any such property existing at the time of acquisition thereof;

                  (b) any mortgage or other lien on any property of another
company existing at the time it is acquired by merger, consolidation or
acquisition of substantially all of its stock or its assets;

                  (c) pledges or deposits to secure payment of workers'
compensation or insurance premiums, or relating to tenders, bids, contracts
(except contracts for the payment of money) or leases;

                                       37
<PAGE>   43
                  (d) pledges or liens in connection with tax assessments or
other governmental charges, or as security required by law or governmental
regulation as a condition to the transaction of any business or the exercise of
any privilege or right;

                  (e) pledges or liens to secure a stay of process in
proceedings to enforce a contested liability, or required in connection with the
institution of legal proceedings or in connection with any other order or decree
in any such proceeding or in connection with any contest of any tax or other
governmental charge, or deposits with a governmental agency entitling the Issuer
or a Restricted Subsidiary to maintain self-insurance or to participate in other
specified insurance arrangements;

                  (f) mechanics', carriers', workmen's and other like liens;

                  (g) encumbrances in favor of the U.S. Government to secure
progress or advance payments;

                  (h) mortgages, pledges or other liens securing any
indebtedness incurred to finance the cost of property leased to the U.S.
Government at a rental rate sufficient to pay the principal of and interest on
such indebtedness;

                  (i) mortgages or other liens securing indebtedness of a
Restricted Subsidiary to the Issuer or to a Restricted Subsidiary;

                  (j) mortgages, pledges or other liens affecting property
securing indebtedness of a governmental authority issued to finance the cost of
a pollution control program with respect to operations of the Issuer or a
Restricted Subsidiary;

                  (k) renewals, extensions and replacements of any permitted
mortgage, lien, deposit or encumbrance, provided the amount secured is not
increased;

                  (l) mortgages or other liens on any such property existing on
the date hereof; and

                  (m) the creation of any other mortgage, pledge or other lien,
if, after giving effect to the creation thereof, the total of (i) the aggregate
principal amount of indebtedness of the Issuer and its Restricted Subsidiaries
secured by all mortgages, pledges or other liens created under the provisions
referred to in this clause (m), plus (ii) the aggregate amount of Capitalized
Lease-Back Obligations of the Issuer and its Restricted Subsidiaries under the
entire unexpired terms of all leases entered into in connection with sale and
lease-back transactions which would have been precluded by the provision for
limitations on such transactions described above, but for the satisfaction of
the condition referred to in clause (ii) of the description of such provision,
will not exceed an amount equal to 15% of Consolidated Net Tangible Assets.

                  The lease of any property and rental obligations thereunder
(whether or not involving a Sale and Lease-Back Transaction and whether or not
capitalized) shall not be deemed to create a lien. The sale or other transfer of
(a) timber of other natural resources in place for a period of time until, or in
an amount such that, the purchaser will realize therefrom a specified amount of
money (however determined) or a specified amount of such resources, or (b) any
other interest in

                                       38
<PAGE>   44
property of the character commonly referred to as a "production payment", shall
not be deemed to create a lien.

                  SECTION 4.05. Sale and Leaseback Transaction. The Issuer shall
not, and shall not permit any Restricted Subsidiary to, after the date hereof,
enter into any arrangement with any Person providing for the leasing by the
Issuer or any Restricted Subsidiary of any Principal Property now owned or
hereafter acquired which has been or is to be sold or transferred by the Issuer
or such Restricted Subsidiary to such Person with the intention of taking back a
lease of such Principal Property (a "Sale and Leaseback Transaction"), unless
(i) the Issuer or such Restricted Subsidiary applies or causes to be applied an
amount equal to the greater of the fair value (as determined by the Board of
Directors) of such Principal Property and the net proceeds of such sale or
transfer, within 120 days of receipt thereof, to the retirement or prepayment of
the Securities or of Funded Debt of the Issuer or any Restricted Subsidiary
ranking equal in right of payment with the Securities or to the acquisition,
construction, development or improvement of properties, facilities or equipment
used for operating purposes which are, or upon such acquisition, construction,
development or improvement will be, a Principal Property or a part thereof, or
(ii) at the time of entering into such transaction, such Principal Property
could have been subjected to a mortgage-securing indebtedness in a principal
amount equal to the Capitalized Lease-Back Obligation with respect to such
Principal Property under Section 4.04(m) without securing the Securities
pursuant to Section 4.04. The foregoing restriction shall not apply to any Sale
and Leaseback Transaction (i) between the Issuer and any Restricted Subsidiary
or among Restricted Subsidiaries, (ii) which has a lease of less than three
years in length, or (iii) entered into within 120 days after the later of the
acquisition of such Principal Property or the completion of construction and
commencement of full operation of such Principal Property.

                  SECTION 4.06. Compliance Certificate. The Issuer shall deliver
to the Trustee within 120 days after the end of each fiscal year of the Issuer
an Officers' Certificate stating that in the course of the performance by the
signers of their duties as Officers of the Issuer they would normally have
knowledge of any Default and whether or not the signers know of any Default that
occurred during such period. If they do, the certificate shall describe the
Default, its status and what action the Issuer is taking or proposes to take
with respect thereto. The Issuer also shall comply with Trust Indenture Act
Section 314(a)(4).

                  SECTION 4.07. Further Instruments and Acts. The Issuer shall
execute and deliver to the Trustee such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the
purpose of this Indenture.

                  SECTION 4.08. Calculation of Original Issue Discount. The
Issuer shall file with the Trustee promptly at the end of each calendar year (i)
a written notice specifying the amount of Original Issue Discount (including
daily rates and accrual periods) accrued on the outstanding Securities as of the
end of such year and (ii) such other specific information relating to such
Original Issue Discount as the Issuer believes is then relevant under the Code.

                  SECTION 4.09. Securities To Be Equally and Ratably Secured
Under Pledge Agreement. (a) Until a Pledge Termination Event occurs, the
Securities shall be entitled to the benefits of the Pledge Agreement as
described and confirmed in the Notice of Pledge Agreement Entitlement, a form of
which appears as Exhibit __ to this Indenture.

                                       39
<PAGE>   45
                  (b) At or prior to the original issuance of any Securities,
unless a Pledge Termination Event has occurred, the Issuer will have delivered
an executed Notice of Pledge Agreement Entitlement to the collateral agent under
the Pledge Agreement and will have obtained a confirmation of receipt and
approval, a form of which appears as Exhibit __ to this Indenture.

                  (c) Until a Pledge Termination Event occurs, the Issuer will
do all things necessary to extend the benefits of the Pledge Agreement to the
Securities as provided in the Notice of Pledge Agreement Entitlement, including
without limitation, executing, filing, registering or recording any instruments,
documents, confirmations or notices and complying with the reasonable requests
of the collateral agent.

                  (d) The Issuer shall comply with the requirements of Section
314(d) of the Trust Indenture Act of 1939, as amended, to the extent applicable
to the Securities and the Pledge Agreement.

                  (e) Each Holder, by acceptance of a Security, and the Trustee
acknowledge and agree that the benefits of the Pledge Agreement shall terminate
upon a Pledge Termination Event, and that prior to a Pledge Termination Event,
the collateral agent under the Pledge Agreement may release any part of the
collateral under the Pledge Agreement without the consent of any Holder or the
Trustee.

                  (f) In the event that a Pledge Termination Event occurs as a
result of a simultaneous refinancing of the Senior Credit Facility and such
refinanced Indebtedness is secured by a lien on any of the assets or properties
of the Issuer or any Guarantor, the Securities shall be secured equally and
ratably so long as, and only for so long as, such other indebtedness is so
secured.

                  SECTION 4.10. Designation of Subsidiaries.

                  The Issuer may at any time designate a Restricted Subsidiary
as an Unrestricted Subsidiary and may at any time rescind the designation of an
Unrestricted Subsidiary, except that:

                  (a) the Issuer shall not designate a subsidiary as an
Unrestricted Subsidiary if, upon the effectiveness of such designation, such
subsidiary would own any Capital Stock of, or hold any Indebtedness of, any
Restricted Subsidiary and

                  (b) the Issuer shall not redesignate an Unrestricted
Subsidiary as a Restricted Subsidiary unless (i) such Unrestricted Subsidiary
has no outstanding liens on its properties that would be prohibited by Section
4.04 if created immediately after such Unrestricted Subsidiary was designated as
a Restricted Subsidiary and (ii) such Unrestricted Subsidiary is not a party to
any lease that would be prohibited by Section 4.05 if at the time such
Unrestricted Subsidiary entered into such lease it was designated as a
Restricted Subsidiary.

                                       40
<PAGE>   46
                                   ARTICLE 5

                               SUCCESSOR COMPANIES

                  SECTION 5.01. Merger and Consolidation. Except as otherwise
contemplated by Section 11.21, the Issuer shall not consolidate with or merge
with or into, or convey, transfer or lease its properties and assets as, or
substantially as, an entirety to, any Person, unless:

                  (i) the resulting, surviving or transferee Person (the
         "Successor Company") shall expressly assume, by a supplemental
         indenture, executed and delivered to the Trustee, in form satisfactory
         to the Trustee, all the obligations of the Issuer under the Securities
         and this Indenture; and

                  (ii) immediately after giving effect to such transaction, no
         Default shall have occurred and be continuing.

                  The Successor Company shall succeed to, and be substituted
for, and may exercise every right and power of, the Issuer under this Indenture.
The predecessor Issuer in the case of a transfer or lease of its properties and
assets as, or substantially as, an entirety shall be discharged from its
obligations under the Securities and this Indenture, other than, in the event
the predecessor Issuer is not the Successor Company, the predecessor Issuer's
obligation to deliver Shares (or other property) upon conversion of the
Securities in accordance with Article 11.

                                   ARTICLE 6

                              DEFAULTS AND REMEDIES

                  SECTION 6.01. Events of Default. An "Event of Default" with
respect to any series of a Security, occurs if:

                  (1) the Issuer defaults in any payment of the Principal Amount
         at Maturity (or, if the Securities have been converted to semi-annual
         coupon notes following a Tax Event, the Restated Principal Amount), or
         premium, if any, Redemption Price, Purchase Price, Change in Control
         Purchase Price or Trust Assumption Event Purchase Price on such series
         when it becomes due and payable;

                  (2) the Issuer defaults in the payment of interest (if the
         Issuer has exercised its option following a Tax Event to convert such
         series of Securities into semi-annual coupon notes) or Contingent
         Interest or liquidated damages on such series of Securities when such
         interest or Contingent Interest, if any, or liquidated damages becomes
         due and payable, and such default continues for a period of 30 days;

                  (3) the Issuer fails to comply with any of its covenants or
         agreements contained in such series of Securities or this Indenture
         (other than those referred to in (1) or (2) above) and such failure
         continues for 60 days after the notice specified below;

                                       41
<PAGE>   47
                  (4) a default occurs under any mortgage, indenture or
         instrument under which there may be issued or by which there may be
         secured or evidenced any Indebtedness for money borrowed by the Issuer,
         whether such Indebtedness or guarantee now exists, or is created after
         the date of this Indenture, which default results in the acceleration
         of such Indebtedness prior to its express maturity and, in each case,
         the principal amount of such Indebtedness, together with the principal
         amount of any other such Indebtedness the maturity of which has been so
         accelerated, aggregates $100 million or more and such acceleration
         continues for 30 days after the notice specified below;

                  (5) the Issuer or, so long as there are any Guarantors, any
         Guarantor that constitutes a Significant Subsidiary of the Issuer
         pursuant to or within the meaning of any Bankruptcy Law:

                           (A) commences a voluntary case;

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

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

                           (D) makes a general assignment for the benefit of its
                  creditors or takes any comparable action under any foreign
                  laws relating to insolvency; or

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

                           (A) is for relief against the Issuer or, so long as
                  there are any Guarantors, any Guarantor that constitutes a
                  Significant Subsidiary of the Issuer or in an involuntary
                  case;

                           (B) appoints a Custodian of the Issuer or, so long as
                  there are any Guarantors, any Guarantor that constitutes a
                  Significant Subsidiary of the Issuer or for any substantial
                  part of its property; or

                           (C) orders the winding up or liquidation of the
                  Issuer or, so long as there are any Guarantors, any Guarantor
                  that constitutes a Significant Subsidiary of the Issuer or any
                  similar relief is granted under any foreign laws and the order
                  or decree remains unstayed and in effect for 60 days.

                  The foregoing shall constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary or involuntary
or is effected by operation of law or pursuant to any judgment, decree or order
of any court or any order, rule or regulation of any administrative or
governmental body.

                  An Event of Default with respect to any particular series of
Securities issued under this Indenture does not necessarily constitute an Event
of Default with respect to any other series of Securities issued under this
Indenture.

                                       42
<PAGE>   48
                  The term "Bankruptcy Law" means Title 11, United States Code,
or any similar Federal or state law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator, custodian or
similar official under any Bankruptcy Law.

                  A Default under clause (3) or (4) above is not an Event of
Default until the Trustee or the Holders of at least 25% in Principal Amount at
Maturity of the outstanding Securities notify the Issuer of the Default and the
Issuer does not cure such Default within the time specified in clause (3) or
(4), as the case may be, after receipt of such notice. Such notice must specify
the Default, demand that it be remedied and state that such notice is a "Notice
of Default."

                  SECTION 6.02. Acceleration. If an Event of Default with
respect to any series of Securities at the time outstanding (other than an Event
of Default specified in Section 6.01(5) or (6) with respect to the Issuer)
occurs and is continuing, the Trustee or the Holders of at least 25% in
Principal Amount at Maturity of such outstanding series of Securities, by notice
to the Issuer, may declare the Issue Price (or, if such series of Securities
have been converted into semi-annual coupon notes following the occurrence of a
Tax Event, the Restated Principal Amount) of and accrued Original Issue Discount
(or, if such series of Securities have been converted into semi-annual coupon
notes following the occurrence of a Tax Event, accrued but unpaid interest) and
accrued Contingent Interest to the date of declaration on all such series of
Securities to be immediately due and payable. Upon such a declaration, such
Issue Price (or, if such series of Securities have been converted into
semi-annual coupon notes following the occurrence of a Tax Event, the Restated
Principal Amount) and Original Issue Discount (or, if such series of Securities
have been converted into semi-annual coupon notes following the occurrence of a
Tax Event, accrued but unpaid interest) and accrued Contingent Interest shall be
due and payable immediately. If an Event of Default specified in Section 6.01(5)
or (6) occurs, the Issue Price (or, if such series of Securities have been
converted into semi-annual coupon notes following the occurrence of a Tax Event,
the Restated Principal Amount) of and accrued Original Issue Discount (or, if
such series of Securities have been converted into semi-annual coupon notes
following the occurrence of a Tax Event, accrued but unpaid interest) and
accrued Contingent Interest to the occurrence of such event on all such series
of Securities shall ipso facto become and be immediately due and payable without
any declaration or other act on the part of the Trustee or any Holder. The
Holders of a majority in Principal Amount at Maturity of any series of
Securities by notice to the Trustee may rescind an acceleration of such series
and its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default have been cured or waived with
respect to such series except nonpayment of the Issue Price (or, if such series
of Securities have been converted into semi-annual coupon notes following the
occurrence of a Tax Event, the Restated Principal Amount) or Original Issue
Discount (or, if such series of Securities have been converted into semi-annual
coupon notes following the occurrence of a Tax Event, accrued but unpaid
interest) or accrued Contingent Interest that has become due solely because of
acceleration. No such rescission shall affect any subsequent Default or impair
any right consequent thereto.

                  SECTION 6.03. Other Remedies. If an Event of Default occurs
and is continuing, the Trustee may pursue any available remedy to collect the
payment of the Issue Price (or, if such series of Securities have been converted
into semi-annual coupon notes following the occurrence of a Tax Event, the
Restated Principal Amount) of or accrued Original

                                       43
<PAGE>   49
Issue Discount (or, if such series of Securities have been converted into
semi-annual coupon notes following the occurrence of a Tax Event, accrued but
unpaid interest) or accrued Contingent Interest on such series of Securities or
to enforce the performance of any provision of such series of Securities or this
Indenture.

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

                  SECTION 6.04. Waiver of Past Defaults. The Holders of a
majority in Principal Amount at Maturity of any series of Securities by notice
to the Trustee may waive an existing Default of such series and its consequences
except (i) a Default in the payment of the Issue Price (or, if such series of
Securities have been converted into semi-annual coupon notes following the
occurrence of a Tax Event, the Restated Principal Amount) of, accrued Original
Issue Discount (or, if such series of Securities have been converted into
semi-annual coupon notes following the occurrence of a Tax Event, accrued but
unpaid interest) on or accrued Contingent Interest, or liquidated damages with
respect to such series of Securities, (ii) a Default arising from the failure to
purchase or repurchase any series of Securities when required pursuant to the
terms of this Indenture, or (iii) a Default in respect of a provision that under
Section 9.02 cannot be amended without the consent of each Securityholder
affected. When a Default is waived, it is deemed cured, but no such waiver shall
extend to any subsequent or other Default or impair any consequent right.

                  SECTION 6.05. Control by Majority. The Holders of a majority
in Principal Amount at Maturity of any outstanding series of Securities may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or of exercising any trust or power conferred on the
Trustee. However, the Trustee may refuse to follow any direction that conflicts
with law or this Indenture or, subject to Section 7.01, that the Trustee
determines is unduly prejudicial to the rights of any other Holder or that would
subject the Trustee to personal liability, unless the Trustee is offered
indemnity reasonably satisfactory to it.

                  SECTION 6.06. Limitation on Suits. Except as provided in
Section 6.07, no Holder of any series of Securities may pursue any remedy with
respect to this Indenture or such series of Securities unless:

                  (1) the Holder previously gave the Trustee written notice
         stating that an Event of Default is continuing;

                  (2) the Holders of at least 25%, in Principal Amount at
         Maturity of such outstanding series of Securities make a written
         request to the Trustee to pursue the remedy;

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

                                       44
<PAGE>   50
                  (4) the Trustee does not comply with the request within 60
         days after receipt of the request and the offer of security or
         indemnity; and

                  (5) the Holders of a majority in Principal Amount at Maturity
         of such outstanding series of Securities do not give the Trustee a
         direction inconsistent with the request during such 60-day period.

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

                  SECTION 6.07. Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder
of any series of Securities to receive payment of the Issue Price (or, if such
series of Securities have been converted into semi-annual coupon notes, the
Restated Principal Amount) of, and liquidated damages and accrued Original Issue
Discount (or, if such series of Securities have been converted into semi-annual
coupon notes, accrued but unpaid interest) and accrued Contingent Interest on,
such series of Securities held by such Holder, on or after their Maturity, or to
bring suit for the enforcement of any such payment on or after their Maturity or
the right to convert such series of Securities as provided herein, shall not be
impaired or affected without the consent of such Holder.

                  SECTION 6.08. Collection Suit by Trustee. If an Event of
Default specified in Section 6.01(1) or (2) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Issuer for the whole amount then due and owing (together with
interest on any unpaid interest (including Contingent Interest to the extent
lawful) and the amounts provided for in Section 7.07.

                  SECTION 6.09. Trustee May File Proofs of Claim. The Trustee
may file such proofs of claim and other papers or documents as may be necessary
or advisable in order to have the claims of the Trustee and the Securityholders
allowed in any judicial proceedings relative to any Issuer or any of its
Subsidiaries, their creditors or their property and, unless prohibited by law or
applicable regulations, may vote on behalf of the Holders in any election of a
trustee in bankruptcy or other Person performing similar functions, and any
Custodian in any such judicial proceeding is hereby authorized by each Holder to
make payments to the Trustee and, in the event that the Trustee shall consent to
the making of such payments directly to the Holders, to pay to the Trustee any
amount due it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and its counsel, and any other amounts due
the Trustee under Section 7.07.

                  SECTION 6.10. Priorities. If the Trustee collects any money or
property pursuant to this Article 6, it shall pay out the money or property in
the following order:

                  FIRST: to the Trustee for amounts due under Section 7.07;

                  SECOND: to Securityholders for amounts due and unpaid on any
series of Securities for the Issue Price and accrued Original Issue Discount
(or, if such series of Securities have been converted to semi-annual coupon
notes following a Tax Event, the Restated Principal Amount and accrued interest)
and accrued Contingent Interest, ratably, without preference or priority of any
kind, according to the amounts due and payable on such series of Securities for

                                       45
<PAGE>   51
the Issue Price and accrued Original Issue Discount (or, if such series of
Securities have been converted to semi-annual coupon notes following a Tax
Event, the Restated Principal Amount and accrued interest) and accrued
Contingent Interest; and

                  THIRD: to the Issuer.

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

                  SECTION 6.11. Undertaking for Costs. In any suit for the
enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its
discretion may require the filing, by any party litigant in the suit, of an
undertaking to pay the costs of the suit, and the court in its discretion may
assess reasonable costs, including reasonable attorneys' fees, against any party
litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section does not apply to a
suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by
Holders of more than 10% in Principal Amount at Maturity of any series of
Securities.

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

                                   ARTICLE 7

                                     TRUSTEE

                  SECTION 7.01. Duties of Trustee. (a) If an Event of Default
with respect to any series of Securities has occurred and is continuing, the
Trustee shall exercise the rights and powers vested in it by this Indenture and
use the same degree of care and skill in its exercise thereof as a prudent
person would exercise or use under the circumstances in the conduct of such
person's own affairs.

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

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

                                       46
<PAGE>   52
                  (2) in the absence of bad faith on its part, the Trustee may
         conclusively rely, as to the truth of the statements and the
         correctness of the opinions expressed therein, upon certificates or
         opinions furnished to the Trustee and conforming to the requirements of
         this Indenture. However, the Trustee shall examine the certificates and
         opinions to determine whether or not they conform to the requirements
         of this Indenture (but need not confirm or investigate the accuracy of
         mathematical calculations or other facts stated therein).

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

                  (1) this paragraph does not limit the effect of paragraph (b)
         of this Section;

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

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

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

                  (e) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Issuer.

                  (f) Money held in trust by the Trustee need not be segregated
from funds except to the extent required by law.

                  (g) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers.

                  (h) 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 and to the provisions of the Trust
Indenture Act.

                  SECTION 7.02. Rights of Trustee. (a) The Trustee may
conclusively rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. The Trustee need not investigate any
fact or matter stated in the document.

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

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

                                       47
<PAGE>   53
                  (d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Trustee's conduct does not
constitute willful misconduct or gross negligence.

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

                  (f) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, approval, bond,
debenture, note or other paper or document.

                  (g) The Trustee shall not be deemed to have notice of any
Default or Event of Default with respect to any series of Securities, except
Events of Default under Section 6.01(1) or (2), unless a Trust Officer of the
Trustee has actual knowledge thereof or unless written notice of any event which
is in fact such a default is received by the Trustee at the Corporate Trust
Office of the Trustee, and such notice references the Securities and this
Indenture.

                  (h) The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to and shall be enforceable by, the Trustee in each of
its capacities hereunder, and to each agent, custodian and other Person employed
to act hereunder.

                  SECTION 7.03. Individual Rights of Trustee. The Trustee in its
commercial banking or any other capacity may become the owner or pledgee of
Securities and may otherwise deal with the Issuer or its Affiliates with the
same rights it would have if it were not Trustee. Any Paying Agent, Registrar or
co-paying agent may do the same with like rights. However, the Trustee must
comply with Sections 7.10 and 7.11.

                  SECTION 7.04. Trustee's Disclaimer. The Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of
this Indenture or the Securities, it shall not be accountable for the Issuer's
use of the proceeds from the Securities, and it shall not be responsible for any
statement in this Indenture, in the Securities, or in any document executed in
connection with the sale of the Securities, other than those set forth in the
Trustee's certificate of authentication.

                  SECTION 7.05. Notice of Defaults. If a Default with respect to
any series of Securities occurs and is continuing and if it is actually known to
a Trust Officer of the Trustee, the Trustee shall mail to each Securityholder of
such series of Securities notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of the Issue Price (or, if such
series of Securities have been converted into semi-annual coupon notes, the
Restated Principal Amount) of or accrued Original Issue Discount (or, if such
series of Securities have been converted into semi-annual coupon notes, accrued
interest) or any accrued Contingent Interest (including payments pursuant to the
mandatory purchase or repurchase provisions of such series of Security, if any),
the Trustee may withhold the notice if and so long as a

                                       48
<PAGE>   54
committee of its Trust Officers in good faith determines that withholding the
notice is in the interests of Securityholders.

                  SECTION 7.06. Reports by Trustee to Holder. As promptly as
practicable after each _______ beginning with the _______ following the Closing
Date, and in any event prior to _______ in each year, the Trustee shall mail to
each Securityholder a brief report dated as of such _______ that complies with
Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b) of the Trust Indenture Act.

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

                  SECTION 7.07. Compensation and Indemnity. The Issuer shall pay
to the Trustee from time to time such compensation for its services as the
Issuer and the Trustee shall from time to time agree in writing. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Trustee upon request for all
reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Trustee's agents, counsel, accountants and experts. The Issuer
shall indemnify the Trustee against any and all loss, liability or expense
(including reasonable attorneys' fees) incurred by or in connection with the
administration of this trust and the performance of its duties hereunder. The
Trustee shall notify the Issuer of any claim for which it may seek indemnity
promptly upon obtaining actual knowledge thereof, provided, however, that any
failure so to notify the Issuer shall not relieve the Issuer of its indemnity
obligations hereunder. The Issuer need not reimburse any expense or indemnify
against any loss, liability or expense incurred by an indemnified party through
such party's own willful misconduct, gross negligence or bad faith.

                  To secure the Issuer's payment obligations in this Section,
the Trustee shall have a lien prior to the Securities on all money or property
held or collected by the Trustee other than money or property held in trust to
make any payment on particular Securities.

                  The Issuer's payment obligations pursuant to this Section
shall survive the satisfaction or discharge of this Indenture, any rejection or
termination of this Indenture under any bankruptcy law or the resignation or
removal of the Trustee. When the Trustee incurs expenses after the occurrence of
a Default specified in Section 6.01(5) or (6), the expenses are intended to
constitute expenses of administration under the Bankruptcy Law.

                  SECTION 7.08. Replacement of Trustee. The Trustee may resign
at any time with respect to the Securities by so notifying the Issuer. The
Holders of a majority in Principal Amount at Maturity of any series of
Securities may remove the Trustee with respect to such series of Securities and
may appoint a successor Trustee. The Issuer shall remove the Trustee if:

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

                  (2) the Trustee is adjudged bankrupt or insolvent;

                                       49
<PAGE>   55
                  (3) a receiver or other public officer takes charge of the
         Trustee or its property; or

                  (4) the Trustee otherwise becomes incapable of acting.

                  If the Trustee resigns, is removed by the Issuer or by the
Holders of a majority in Principal Amount at Maturity of any series of
Securities with respect to such series of Securities and such Holders do not
reasonably promptly appoint a successor Trustee or if a vacancy exists in the
office of Trustee for any reason (the Trustee in such event being referred to
herein as the retiring Trustee), the Issuer shall promptly appoint a successor
Trustee.

                  A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Issuer. Thereupon the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. The successor Trustee shall mail a notice of its succession to
Securityholders. The retiring Trustee shall promptly transfer all property held
by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07.

                  If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee or the
Holders of 10% in Principal Amount at Maturity of such series of Securities that
removed such Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

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

                  Notwithstanding the replacement of the Trustee pursuant to
this Section 7.08, the Issuer's obligations under Section 7.07 shall continue
for the benefit of the retiring Trustee.

                  SECTION 7.09. Successor Trustee by Merger. If the Trustee
consolidates with, merges or converts into, or transfers all or substantially
all its corporate-trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any
further act shall be the successor Trustee. As promptly as practicable
thereafter, the Trustee shall notify the Issuer of such succession.

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

                  SECTION 7.10. Eligibility; Disqualification. The Trustee shall
at all times satisfy the requirements of Trust Indenture Act Section 310(a). The
Trustee shall have a combined capital and surplus of at least $100,000,000 as
set forth in its most recent published

                                       50
<PAGE>   56
annual report of condition. The Trustee shall comply with Trust Indenture Act
Section 310(b); provided, however, that there shall be excluded from the
operation of Trust Indenture Act Section 310(b)(1) any indenture or indentures
under which other securities or certificates of interest or participation in
other securities of the Issuer are outstanding if the requirements for such
exclusion set forth in Trust Indenture Act Section 310(b)(1) are met.

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

                                    ARTICLE 8

                             DISCHARGE OF INDENTURE

                  SECTION 8.01. Discharge of Liability on Securities. This
Indenture shall cease to be of further effect, and the Trustee, on demand of and
at the expense of the Issuer, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when

                  (a) either

                  (1) all Securities theretofore authenticated and delivered
         (other than (A) Securities which have been destroyed, lost or stolen
         and which have been replaced or paid as provided in Section 2.08 and
         (B) Securities for whose payment money has theretofore been deposited
         with the Trustee in trust or segregated and held in trust by the Issuer
         and thereafter repaid to the Issuer or otherwise discharged from such
         trust as provided in Section 10.02) have been delivered to the Trustee
         for cancellation; or

                  (2) all such Securities not theretofore delivered to the
         Trustee for cancellation have become due and payable, whether at Stated
         Maturity or upon any Redemption Date, Change in Control Purchase Date,
         Purchase Date or Conversion Date, and the Issuer has deposited or
         caused to be deposited with the Trustee, the Paying Agent or the
         Conversion Agent, as applicable, as trust funds in trust for the
         purpose an amount of money or securities sufficient to pay and
         discharge the entire Indebtedness evidenced by such Securities not
         theretofore delivered to the Trustee for cancellation; and

                  (b) the Issuer has paid or caused to be paid all other sums
payable hereunder by the Issuer.

                  Notwithstanding clauses (a) and (b) above, the Issuer's
obligations in Sections 2.04, 2.05, 2.06, 2.07, 2.08, 2.09, 7.07, 7.08, 10.2
and, if money or securities shall have been deposited with the Trustee pursuant
to subclause (2) of clause (a) of this Section 8.01, shall survive until the
Securities have been paid in full. Thereafter, the Issuer's obligations in
Section 7.07 shall survive. Notwithstanding clauses (a) and (b) above, the
Issuer's and each Holder's obligations under Section 2.16 shall survive the
satisfaction and discharge of the Indenture.

                  SECTION 8.02. Application of Trust Money. The Trustee shall
hold in trust all money deposited with it pursuant to Section 8.01. It shall
apply the deposited money through the

                                       51
<PAGE>   57
Paying Agent and in accordance with this Indenture to the payment to the Persons
entitled thereto.

                  SECTION 8.03. Repayment to Issuer. Subject to any applicable
abandoned property law, the Trustee and the Paying Agent shall pay to the Issuer
upon written request any money or securities held by them that remains unclaimed
for two years, and, thereafter, Securityholders entitled to the money or
securities must look to the Issuer for payment as general creditors.

                                    ARTICLE 9

                                   AMENDMENTS

                  SECTION 9.01. Without Consent of Holders. The Issuer and the
Trustee may amend this Indenture with respect to any series of Securities
without notice to or consent of any Securityholder of such series of Securities:

                  (1) to add to the covenants of the Issuer for the benefit of
         the Holders of such series of Securities or to surrender any right or
         power herein conferred upon the Issuer with respect to such series of
         Securities;

                  (2) to provide for the assumption of the Issuer's obligations
         to Holders of such series of Securities in the case of a merger,
         consolidation, conveyance, transfer or lease pursuant to Article 5;

                  (3) to comply with any requirements of the SEC in connection
         with the registration of such series of Securities under the Securities
         Act and qualifying, or maintaining the qualification of, this Indenture
         under the Trust Indenture Act; provided that such modification or
         amendment does not, in the good faith opinion of the Board of Directors
         and the Trustee, adversely affect the interests of the Securityholders
         of such series of Securities in any material respect; or

                  (4) to cure any ambiguity or correct or supplement any
         defective provision contained in this Indenture; provided that such
         modification or amendment does not, in the good faith opinion of the
         Board of Directors and the Trustee, adversely affect the interests of
         the Securityholders of such series of Securities in any material
         respect.

                  SECTION 9.02. With Consent of Holders. The Issuer and the
Trustee may amend this Indenture with respect to any series of Securities
without notice to any Securityholder of such series of Securities but either (i)
with the written consent of the Securityholders of at least a majority in
Principal Amount at Maturity of such series of Securities then outstanding or
(ii) by the adoption of a resolution at a meeting of Securityholders that is
approved by at least a majority in Principal Amount at Maturity of such series
of Securities then outstanding represented at such meeting. However, without the
consent of each Securityholder affected, an amendment may not:

                  (1) change the Stated Maturity of any series of Securities;

                                       52
<PAGE>   58
                  (2) reduce the Principal Amount at Maturity, Restated
         Principal Amount, Issue Price, Redemption Price or Purchase Price
         (including Change in Control Purchase Price and Trust Assumption Event
         Purchase Price) on any series of Securities;

                  (3) make any series of Security payable in money or securities
         other than that stated in such Security;

                  (4) alter the manner of calculation or rate of accrual of
         Original Issue Discount or interest (including Contingent Interest) on
         any series of Securities or extend the time of payment of any interest
         of any such amount;

                  (5) except as otherwise permitted or contemplated by Article 5
         or 11, (i) adversely affect the right to require the Issuer to
         repurchase or purchase the Securities or (ii) adversely affect the
         right of any Securityholder to convert any series of Securities;

                  (6) reduce the percentage in aggregate Principal Amount at
         Maturity of any series of Securities outstanding the consent of whose
         Holders is required to modify or amend this Indenture, or the consent
         of whose Holders is required to waive any past Default; or

                  (7) impair the right to institute suit for the enforcement of
         any payment with respect to, or conversion of, any series of
         Securities.

                  It shall not be necessary for the consent of the Holders of a
series of Securities under this Section to approve the particular form of any
proposed amendment, but it shall be sufficient if such consent approves the
substance thereof. After an amendment under this Section becomes effective, the
Issuer shall mail to all affected Securityholders a notice briefly describing
such amendment. The failure to give such notice to all such Securityholders, or
any defect therein, shall not impair or affect the validity of an amendment
under this Section.

                  SECTION 9.03. Compliance with Trust Indenture Act. Every
amendment to this Indenture or the Securities shall comply with the Trust
Indenture Act as then in effect.

                  SECTION 9.04. Revocation and Effect of Consents and Waivers. A
consent to an amendment or a waiver by a Holder of any series of Securities,
shall bind the Holder and every subsequent Holder of such series of Securities
or portion of such series of Securities, that evidences the same debt as the
consenting Holder's Security even if notation of the consent or waiver is not
made on such Security. However, any such Holder or subsequent Holder may revoke
the consent or waiver as to such Holder's Security, or portion of such Security,
if the Trustee receives the notice of revocation before the date the amendment
or waiver becomes effective. After an amendment or waiver becomes effective, it
shall bind every Securityholder of such series of Security. An amendment or
waiver becomes effective once both (i) the requisite number of consents have
been received by the Issuer or the Trustee and (ii) such amendment or waiver has
been executed by the Issuer and the Trustee.

                  The Issuer may, but shall not be obligated to, fix a record
date for the purpose of determining the Securityholders of any series of
Securities entitled to give their consent or take any other action described
above or required or permitted to be taken pursuant to this Indenture. If a
record date is fixed, then notwithstanding the immediately preceding paragraph,
those

                                       53
<PAGE>   59
Persons who were Securityholders at such record date (or their duly designated
proxies), and only those Persons, shall be entitled to give such consent or to
revoke any consent previously given or to take any such action, whether or not
such Persons continue to be Holders after such record date. No such consent
shall be valid or effective for more than 120 days after such record date.

                  SECTION 9.05. Notation on or Exchange of Securities. If an
amendment changes the terms of any series of Securities, the Trustee may require
the Holder of such Security to deliver it to the Trustee. The Trustee may place
an appropriate notation on the Security regarding the changed terms and return
it to the Holder. Alternatively, if the Issuer or the Trustee so determines, the
Issuer in exchange for such Security shall issue and the Trustee shall
authenticate a Security that reflects the changed terms. Failure to make the
appropriate notation or to issue a new Security shall not affect the validity of
such amendment.

                  SECTION 9.06. Trustee to Sign Amendments. The Trustee shall
sign any amendment authorized pursuant to this Article 9 if the amendment does
not adversely affect the rights, duties, liabilities or immunities of the
Trustee. If it does, the Trustee may but need not sign it. In signing such
amendment the Trustee shall be entitled to receive indemnity satisfactory to it
and to receive, and (subject to Section 7.01) shall be fully protected in
relying upon, an Officers' Certificate and an Opinion of Counsel stating that
such amendment is authorized or permitted by this Indenture and that such
amendment is the legal, valid and binding obligation of the Issuer, enforceable
against it in accordance with its terms, subject to customary exceptions, and
complies with the provisions hereof (including Section 9.03).

                  SECTION 9.07. Waiver of Certain Conditions. The Issuer may in
any particular instance, be excused from failing to comply with any term,
provision or condition set forth in Section 4.02, 4.04 or 4.05, if before the
time for such compliance the Holders of at least a majority in Principal Amount
at Maturity of the outstanding Securities shall, by act of such Holders, either
waive such compliance in such instance or generally waive compliance with such
term, provision or condition but no such waiver shall extend to or affect such
term, provision or condition except to the extent so expressly waived, and,
until such waiver shall become effective, the obligations of the Issuer, and the
duties of the Trustee in respect of any such term, provision or condition shall
remain in full force and effect.

                  The Issuer may, but shall not be obligated to, fix a record
date for the purpose of determining the Persons entitled to waive compliance
with any covenant or condition hereunder. If a record date is fixed, the Holders
on such record date, or their duly designated proxies, and only such Persons,
shall be entitled to waive any such compliance, whether or not such Holders
remain Holders after such record date; provided that unless the Holders of at
least a majority in Principal Amount at Maturity of the outstanding Securities
affected shall have waived such compliance prior to the date which is 90 days
after such record date, any such waiver previously given shall automatically and
without further action by any Holder be canceled and of no further effect.

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<PAGE>   60
                                   ARTICLE 10

                          SPECIAL TAX EVENT CONVERSION

                  SECTION 10.01. Optional Conversion to Semi-annual Coupon Note
Upon Tax Event. From and after (i) the date (the "Tax Event Date") of the
occurrence of a Tax Event and (ii) the date the Issuer exercises its option set
forth in this Section 10.01, whichever is later (the "Option Exercise Date"), at
the option of the Issuer, interest in lieu of future Original Issue Discount
shall accrue at the rate of ___% per annum on a restated principal amount per
$1,000 original Principal Amount at Maturity with respect to the Securities (the
"Restated Principal Amount") equal to the Issue Price plus Original Issue
Discount accrued to the Option Exercise Date of the Securities, and shall be
payable semi-annually on ________ and ________ of each year (each an "Interest
Payment Date") to Holders of the Securities, of record at the close of business
on May 1 and November 1 (each a "Regular Record Date") immediately preceding
such Interest Payment Date. Interest will be computed on the basis of a 360-day
year comprised of twelve 30-day months and will accrue from the most recent date
on which interest has been paid or, if no interest has been paid, from the
Option Exercise Date. Within 15 days of its exercise of the option set forth in
this Section 10.01, the Issuer shall deliver a written notice of the Option
Exercise Date by facsimile and first-class mail to the Trustee and by
first-class mail to the Holders of any series of Securities for which the Issuer
has exercised its option. From and after the Option Exercise Date, (i) the
Issuer shall be obligated to pay at Stated Maturity, in lieu of the Principal
Amount at Maturity of any series of Securities for which the Issue Price has
exercised its option, the applicable Restated Principal Amount thereof and (ii)
"Issue Price and accrued Original Issue Discount," "Issue Price plus Original
Issue Discount" or similar words, as used herein, shall mean the applicable
Restated Principal Amount plus accrued and unpaid interest (including Contingent
Interest) with respect to any such series of Securities. Securities
authenticated and delivered after the Option Exercise Date may, and shall if
required by the Trustee, bear a notation in a form approved by the Trustee as to
the conversion of such Securities to semi-annual coupon notes.

                  In the event the Issuer exercises its option pursuant to this
Section 10.01 to have interest in lieu of Original Issue Discount accrue on any
series of Securities following a Tax Event, the Holder of such series of
Securities shall be entitled on conversion into Shares to receive the same
number of Shares such Holder would have received if the Issuer had not exercised
such option. If the Issuer exercises such option, Securities surrendered for
conversion during the period from the close of business on any Regular Record
Date next preceding any Interest Payment Date to the opening of business on such
Interest Payment Date (except Securities to be redeemed purchased or repurchased
on a date within such period) must be accompanied by payment of an amount equal
to the interest (including Contingent Interest) thereon that the registered
Holder is entitled to receive. Except where Securities surrendered for
conversion must be accompanied by payment as described above, no interest on
converted Securities shall be payable by the Issuer on any Interest Payment Date
subsequent to the date of conversion.

                  SECTION 10.02. Paying Agent To Hold Money in Trust. Prior to
11:00 a.m. (New York City time) on the Interest Payment Date, the Issuer shall
deposit with the Paying Agent (or if the Issuer or a Subsidiary of the Issuer is
acting as Paying Agent, segregate and hold in trust for the benefit of the
Persons entitled thereto) a sum sufficient to pay interest (including

                                       55
<PAGE>   61
Contingent Interest, if any) when due. The Issuer shall require each Paying
Agent (other than the Trustee) to agree in writing that the Paying Agent shall
hold in trust for the benefit of Securityholders or the Trustee all money held
by the Paying Agent for the payment of principal or interest on the Securities
and shall notify the Trustee of any default by the Issuer in making any such
payment. If the Issuer or a Subsidiary of the Issuer acts as Paying Agent, it
shall segregate the money held by it as Paying Agent and hold it as a separate
trust fund. The Issuer at any time may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed by the Paying
Agent. Upon complying with this Section, the Paying Agent shall have no further
liability for the money delivered to the Trustee.

                  SECTION 10.03. Securityholder Lists. The Trustee shall
preserve in as current a form as is reasonably practicable the most recent list
available to it of the names and addresses of Securityholders. If the Trustee is
not the Registrar, the Issuer shall furnish, or cause the Registrar to furnish,
to the Trustee, in writing at least five Business Days before each Interest
Payment Date and at such other times as the Trustee may request in writing, a
list in such form and as of such date as the Trustee may reasonably require of
the names and addresses of Securityholders.

                  SECTION 10.04. Payment of Interest; Interest Rights Preserved.
(a) Interest (including Contingent Interest) on any series of Security that is
payable, and is punctually paid or duly provided for, on any Interest Payment
Date shall be paid to the Person in whose name that Security is registered at
the close of business on the Regular Record Date for such interest at the office
or agency of the Issuer maintained for such purpose. Each installment of
interest on any Security shall be paid in same-day funds by transfer to an
account maintained by the Holder located inside the United States, provided that
with respect to any Holder, such Holder shall have furnished to the Paying Agent
all required wire payment instructions no later than the related Regular Record
Date, or if no such instructions have been furnished, by check payable to such
Holder. In the case of a Global Security, interest payable on any Interest
Payment Date will be paid to the Depositary, with respect to that portion of
such Global Security held for its account by Cede & Co. for the purpose of
permitting such party to credit the interest received by it in respect of such
Global Security to the accounts of the beneficial owners thereof.

                  (b) Except as otherwise specified with respect to any series
of Securities, any interest (including Contingent Interest) on any Security that
is payable, but is not punctually paid or duly provided for, within 30 days
following any Interest Payment Date (herein called "Defaulted Interest", which
term shall include any accrued and unpaid interest that has accrued on such
defaulted amount in accordance with the paragraph of the Securities captioned
"Interest"), shall forthwith cease to be payable to the registered Holder
thereof on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Issuer, at its election
in each case, as provided in clause (1) or (2) below:

                  (1) The Issuer may elect to make payment of any Defaulted
         Interest to the Persons in whose names the Securities are registered at
         the close of business on a date (the "Special Record Date") for the
         payment of such Defaulted Interest, which shall be fixed in the
         following manner. The Issuer shall notify the Trustee in writing of the
         amount of Defaulted Interest proposed to be paid on each series of
         Security and the date of the proposed payment (which shall not be less
         than 20 days after such notice is

                                       56
<PAGE>   62
         received by the Trustee), and at the same time the Issuer shall deposit
         with the Trustee an amount of money equal to the aggregate amount
         proposed to be paid in respect of such Defaulted Interest or shall make
         arrangements satisfactory to the Trustee for such deposit on or prior
         to the date of the proposed payment, such money when deposited to be
         held in trust for the benefit of the Persons entitled to such Defaulted
         Interest as in this clause provided. Thereupon the Trustee shall fix a
         Special Record Date for the payment of such Defaulted Interest which
         shall be not more than 15 days and not less than 10 days prior to the
         date of the proposed payment and not less than 10 days after the
         receipt by the Trustee of the notice of the proposed payment. The
         Trustee shall promptly notify the Issuer of such Special Record Date
         and, in the name and at the expense of the Issuer, 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 such series of Securities at his address as it appears on the
         list of Securityholders maintained pursuant to this Indenture not less
         than 10 days prior to such Special Record Date. Notice of the proposed
         payment of such Defaulted Interest and the Special Record Date therefor
         having been mailed as aforesaid, such Defaulted Interest shall be paid
         to the Persons in whose names such Securities are registered at the
         close of business on such Special Record Date and shall no longer be
         payable pursuant to the following clause (2).

                  (2) The Issuer may make payment of any Defaulted Interest on
         any series of Securities in any other lawful manner not inconsistent
         with the requirements of any securities exchange on which such
         Securities may be listed, and upon such notice as may be required by
         such exchange, if, after notice given by the Issuer 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, each Security delivered
under this Indenture upon registration of transfer of or in exchange for or in
lieu of any other Security shall carry the rights to interest (including
Contingent Interest) accrued and unpaid, and to accrue, which were carried by
such other Security.

                                   ARTICLE 11

                                   CONVERSION

                  SECTION 11.01. Conversion Privilege. Except as otherwise
provided in this Article 11, a Holder of a Security may convert such Security
into Shares at any time on or after ________, 20__ and before the close of
business on ________, 20__ if one of the following conditions is satisfied:

                       (a) the Sale Price per Share for at least 20 trading days
in the period of 30 consecutive trading days ending on the last trading day of
the calendar quarter preceding the calendar quarter in which the conversion
occurs is more than the Conversion Percentage of the Accreted Conversion Price
on such 30th day;

                       (b) the Security has been called for redemption by the
Issuer pursuant to Section 3.01;

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<PAGE>   63
                       (c) the respective credit ratings assigned to the
Securities by both Moody's Investor Service, Inc. and Standard & Poor's Rating
Group have been reduced below ba3 and BB, respectively, or the respective credit
ratings assigned to the Securities are suspended or withdrawn or neither rating
agency is rating the Securities; or

                       (d) (i) a distribution of Capital Stock referred to in
Section 11.07 occurs, (ii) a distribution referred to in Section 11.08 occurs or
(iii) a Share Separation occurs.

                       In the event the Issuer is a party to a consolidation,
merger or binding share exchange pursuant to which the Shares would be converted
into cash, securities or other property, a Holder of a Security may convert such
Security at any time from and after the date which is 15 days prior to the date
the Issuer announces the anticipated effective date of the transaction until 15
days after the actual effective date of such transaction.

                       In the case of the foregoing clauses (d)(i), (ii) and
(iii), the Issuer must notify the Holders of Security at least 20 days prior to
the Ex-Dividend Date for such distribution. Once the Issuer has given such
notice, Holders may surrender their Notes for conversion at any time thereafter
until the earlier of the close of business on the Business Day prior to the
Ex-Dividend Date or the Issuer's announcement that such distribution will not
take place.

                       If the Security is called for redemption, the Holder may
convert it at any time before the close of business on the second Business Day
immediately preceding the Redemption Date. A Security in respect of which a
Holder has delivered a Purchase Notice or Change in Control Purchase Notice
exercising the option of such Holder to require the Issuer to purchase such
Security may be converted only if such Purchase Notice or Change in Control
Purchase Notice is withdrawn in accordance with the terms of the Indenture.

                       After ________, 20__, the Holders' right to convert
Securities into Shares is subject to the Issuer's right to elect to instead pay
such Holder the amount of cash set forth in the next succeeding sentence, in
lieu of delivering such Shares; provided, however, that if an Event of Default
(other than a default in a cash payment upon conversion of the Securities) shall
have occurred and be continuing, the Issuer shall deliver Shares (and cash in
lieu of fractional Shares) in accordance with this Article 11, whether or not
the Issuer has delivered a notice pursuant to Section 3.03 or 11.02 to the
effect that the Securities would be paid in cash. The amount of cash to be paid
pursuant to Section 11.02 for each $1,000 of Principal Amount of a Security upon
conversion shall be equal to the Market Price of Shares multiplied by the
Conversion Rate in effect on such Conversion Date.

                       Subject to the next preceding paragraph, the Issuer shall
deliver through the Conversion Agent to Holders surrendering Securities as soon
as practicable after the Conversion Date Shares issuable upon conversion of such
Securities.

                       The number of Shares issuable upon conversion of a
Security per $1,000 of Principal Amount at Maturity thereof (the "Conversion
Rate") shall be that set forth in the Securities, subject to adjustment as
herein set forth.

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<PAGE>   64
                  A Holder may convert a portion of the Principal Amount at
Maturity of a Security if the portion is $1,000 or an integral multiple of
$1,000. Provisions of this Indenture that apply to conversion of all of a
Security also apply to conversion of a portion of a Security.

                  "Average Quoted Price" means the average of the Sale Prices of
the Shares for the shorter of:

                  (i) 30 consecutive trading days ending on the last full
         trading day prior to the Time of Determination with respect to the
         rights, warrants or options or distribution in respect of which the
         Average Quoted Price is being calculated, or

                  (ii) the period (x) commencing on the date next succeeding the
         first public announcement of (a) the future issuance of rights,
         warrants or options or (b) the future distribution, in each case, in
         respect of which the Average Quoted Price is being calculated and (y)
         proceeding through the last full trading day prior to the Time of
         Determination with respect to the rights, warrants or options or
         distribution in respect of which the Average Quoted Price is being
         calculated (excluding days within such period, if any, which are not
         trading days), or

                  (iii) the period, if any, (x) commencing on the later of (a)
         the date of this Indenture and (b) the date next succeeding the
         Ex-Dividend Time with respect to the next preceding issuance of rights,
         warrants or options or distribution, in each case, for which an
         adjustment is required by the provisions of Section 11.06(4), 11.07 or
         11.08 and (y) proceeding through the last full trading day prior to the
         Time of Determination with respect to the rights, warrants or options
         or distribution in respect of which the Average Quoted Price is being
         calculated (excluding days within such period, if any, which are not
         trading days).

                  In the event that the Ex-Dividend Time (or in the case of a
subdivision, combination or reclassification, the effective date with respect
thereto), with respect to a dividend, subdivision, combination or
reclassification to which Section 11.06(1), (2), (3) or (5) applies, occurs
during the period applicable for calculating "Average Quoted Price" pursuant to
the definition in the preceding sentence, "Average Quoted Price" shall be
calculated for such period in a manner determined by the Board of Directors to
reflect the impact of such dividend, subdivision, combination or
reclassification on the Sale Price of the Shares during such period.

                  "Time of Determination" means the time and date of the earlier
of (i) the determination of stockholders entitled to receive rights, warrants or
options or a distribution, in each case, to which Section 11.07 or 11.08 applies
and (ii) the time ("Ex-Dividend Time") immediately prior to the commencement of
"ex-dividend" trading for such rights, warrants or options or distribution on
the New York Stock Exchange or such other national or regional exchange or
market on which the Shares are then listed or quoted.

                  The term "trading day" means a day during which trading in
securities generally occurs on the New York Stock Exchange or, if the applicable
security is not listed on the New York Stock Exchange, on the Nasdaq National
Market System, or if the applicable security is not quoted on the Nasdaq
National Market System, on the principal other national or regional

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<PAGE>   65
securities exchange on which the applicable security is then listed or, if the
applicable security is not listed on a national or regional securities exchange,
on the principal other market on which the applicable security is then traded.

                  SECTION 11.02. Conversion Procedure. To convert a Security a
Holder must satisfy the requirements set forth herein and in the Securities. The
date on which the Holder satisfies all those requirements is the conversion date
(the "Conversion Date"). Except as otherwise provided below, the Issuer shall
deliver to the Holder through the Conversion Agent as soon as practicable after
the Conversion Date a certificate for the number of Shares issuable upon the
conversion and cash in lieu of any fractional Share determined pursuant to
Section 11.03. Within two Business Days following the Conversion Date, the
Issuer shall deliver to the Holder, through the Conversion Agent, written notice
of whether such Security shall be converted into Shares or paid in cash, unless
the Issuer shall have delivered such notice previously pursuant to Section 3.03.
If the Issuer shall have notified the Holder that all of such Security shall be
converted into Shares, the Issuer shall deliver to the Holder through the
Conversion Agent no later than the fifth Business Day following the Conversion
Date a certificate for the number of Shares issuable upon the conversion and
cash in lieu of any fractional share determined pursuant to Section 11.03.
Except as provided in the proviso to the fifth paragraph of Section 11.01, if
the Issuer shall have notified the Holder that all or a portion of such Security
shall be paid in cash, the Issuer shall deliver to the Holder surrendering such
Security the amount of cash payable with respect to such Security no later than
the tenth Business Day following such Conversion Date, together with a
certificate for the number of Shares issuable upon the conversion and cash in
lieu of any fractional share determined pursuant to Section 11.03. Except as
provided in the proviso to the fifth paragraph of Section 11.01, the Issuer may
not change its election with respect to the consideration to be delivered upon
conversion of a Security once the Issuer has notified the Holder in accordance
with this paragraph. If Shares are delivered as consideration, then the Person
in whose name the certificate representing the Shares issuable upon conversion
is registered shall be treated as a stockholder of record on and after the
Conversion Date; provided, however, that no surrender of a Security on any date
when the stock transfer books of the Issuer shall be closed shall be effective
to constitute the Person or Persons entitled to receive the Shares upon such
conversion as the record holder or holders of such Shares on such date, but such
surrender shall be effective to constitute the Person or Persons entitled to
receive such Shares as the record holder or holders thereof for all purposes at
the close of business on the next succeeding day on which such stock transfer
books are open; such conversion shall be at the Conversion Rate in effect on the
date that such Security shall have been surrendered for conversion, as if the
stock transfer books of the Issuer had not been closed. Upon conversion of a
Security, such Person shall no longer be a Holder of such Security and such
Security shall be cancelled and no longer Outstanding.

                  No payment or adjustment will be made for dividends on, or
other distributions with respect to, any Shares except as provided in this
Article 11. On conversion of a Security, that portion of accrued Original Issue
Discount (or interest, if the Issuer has exercised its option provided for in
Section 10.01) attributable to the period from the Issue Date (or, if the Issuer
has exercised the option provided for in Section 10.01, the later of (x) the
date of such exercise and (y) the date on which interest was last paid) through
the Conversion Date with respect to the converted Security and accrued
Contingent Interest and accrued Defaulted Interest with respect to the converted
Security shall not be cancelled, extinguished or forfeited, but rather shall be

                                       60
<PAGE>   66
deemed to be paid in full to the Holder thereof through delivery of the Shares
(together with the cash payment, if any, in lieu of fractional Shares) in
exchange for the Security being converted pursuant to the provisions hereof; and
the fair market value of such Shares (together with any such cash payment in
lieu of fractional Shares) shall be treated as delivered pro rata, to the extent
thereof, first in exchange for Original Issue Discount (or interest, if the
Issuer has exercised its option provided for in Section 10.01) and Contingent
Interest accrued through the Conversion Date, and the balance, if any, of the
fair market value of such Shares shall be treated as delivered in exchange for
the Issue Price of the Security being converted pursuant to the provisions
hereof.

                  If the Holder converts more than one Security at the same
time, the number of Shares issuable or the amount of cash paid upon the
conversion shall be based on the total Principal Amount at Maturity of the
Securities converted.

                  If the last day on which a Security may be converted is a
Legal Holiday in a place where the Conversion Agent is located, the Security may
be surrendered to such Conversion Agent on the next succeeding day that is not a
Legal Holiday.

                  Upon surrender of a Security that is converted in part, the
Issuer shall execute, and the Trustee shall authenticate and deliver to the
Holder, a new Security in an authorized denomination equal in Principal Amount
at Maturity to the unconverted portion of the Security surrendered.

                  SECTION 11.03. Fractional Shares. The Issuer will not issue a
fractional Share upon conversion of a Security. Instead, the Issuer will deliver
cash for the current market value of the fractional Share. The current market
value of a fractional Share shall be determined, to the nearest 1/1,000th of a
Share, by multiplying the last reported sale price (determined as set forth in
the definition of Market Price) on the last trading day prior to the Conversion
Date by the fractional amount and rounding the product to the nearest whole
cent. If the Holder converts more than one Security at the same time, the amount
of cash paid for the current market value of the fractional Share upon the
conversion shall be based on the total Principal Amount at Maturity of the
Securities converted.

                  SECTION 11.04. Taxes on Conversion. If a Holder converts a
Security, the Issuer shall pay any documentary, stamp or similar issue or
transfer tax due on the issue of Shares upon the conversion. However, the Holder
shall pay any such tax which is due because the Holder requests the shares to be
issued in a name other than the Holder's name. The Conversion Agent may refuse
to deliver the certificates representing the Shares being issued in a name other
than the Holder's name until the Conversion Agent receives a sum that the Issuer
deems to be sufficient to pay any tax which will be due because the Shares are
to be issued in a name other than the Holder's name. Nothing herein shall
preclude any tax withholding required by law or regulations.

                  SECTION 11.05. Issuer to Provide Stock. The Issuer and the
Trust shall, prior to issuance of any Securities under this Article 11, and from
time to time as may be necessary, reserve out of their authorized but unissued
or treasury shares a sufficient number of Shares to permit the conversion of the
Securities.

                                       61
<PAGE>   67
                  All Shares delivered upon conversion of the Securities shall
be newly issued shares or treasury shares, shall be duly and validly issued and
fully paid and nonassessable, and shall be free from preemptive rights and free
of any lien or adverse claim.

                  The Issuer and the Trust shall endeavor promptly to comply
with all federal and state securities laws regulating the offer and delivery of
Shares upon conversion of Securities, if any, including the addition of any and
all restrictive legends that are required to appear on the face of the Shares,
and shall list or cause to have quoted such Shares on each United States
National Securities Exchange or in the automated over-the-counter market in the
United States on which the Shares are then listed or quoted.

                  SECTION 11.06. Adjustment for Change In Capital Stock. Subject
to Section 11.21(d), if, after the Issue Date of the Securities, the Issuer or
the Trust:

                  (1) pays a dividend or makes a distribution on its Shares (or
         any component of the Shares) payable in Shares;

                  (2) subdivides its outstanding Shares (or any component of the
         Shares) into a greater number of shares;

                  (3) combines its outstanding Shares into a smaller number of
         shares;

                  (4) pays a dividend or makes a distribution on its Shares
         payable in shares of its Capital Stock (other than Shares or rights,
         warrants or options for its Capital Stock); or

                  (5) issues by reclassification of its Shares (or any component
         of the Shares) any shares of its Capital Stock (other than rights,
         warrants or options for its Capital Stock),

then the Conversion Rate in effect immediately prior to such action shall be
adjusted so that the Holder of a Security thereafter converted may receive the
number of Shares and/or Capital Stock of the Issuer which such Holder would have
owned immediately following such action if such Holder had converted the
Security into Shares immediately prior to such action.

                  The adjustment shall become effective immediately after the
record date in the case of a dividend or distribution and immediately after the
effective date in the case of a subdivision, combination or reclassification.

                  If after an adjustment a Holder of a Security upon conversion
of such Security may receive shares of two or more classes of Capital Stock, the
Conversion Rate shall thereafter be subject to adjustment upon the occurrence of
an action taken with respect to any such class of Capital Stock as is
contemplated by this Article 11 with respect to the Shares, on terms comparable
to those applicable to Shares in this Article 11.

                  SECTION 11.07. Adjustment for Rights Issue. Subject to Section
11.21(d), if after the Issue Date of the Securities, the Issuer distributes any
rights, warrants or options to all holders of Shares entitling them, for a
period expiring within 60 days after the record date for such distribution, to
subscribe for or purchase Shares at a price per share less than the Market

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<PAGE>   68
Price as of the Time of Determination, the Conversion Rate shall be adjusted,
subject to the provisions of the last paragraph of this Section 11.07, in
accordance with the formula
                                             R x (O + N)
                                      R' =-------------------
                                           O + (N x P)/M)
where:

                  R' = the adjusted Conversion Rate.

                  R = the current Conversion Rate.

                  O = the number of Shares outstanding on the record date for
the distribution to which this Section 11.07 is being applied.

                  N = the number of additional Shares offered pursuant to the
distribution.

                  P = the exercise price per share of such rights, warrants or
options.

                  (1) M = the Average Quoted Price.

                  The Board of Directors shall determine fair market values for
the purposes of this Section 11.07.

                  The adjustment shall become effective immediately after the
record date for the determination of shareholders entitled to receive the
rights, warrants or options to which this Section 11.07 applies. If all the
Shares subject to such rights, warrants or options have not been issued when
such rights, warrants or options expire, then the Conversion Rate shall promptly
be readjusted to the Conversion Rate which would then be in effect had the
adjustment upon the issuance of such rights, warrants or options been made on
the basis of the actual number of Shares issued upon the exercise of such
rights, warrants or options.

                  No adjustment shall be made under this Section 11.07 if the
application of the formula stated above in this Section 11.07 would result in a
value of R' that is equal to or less than the value of R.

                  SECTION 11.08. Adjustment for Other Distributions. Subject to
Section 11.21(d), if, after the Issue Date of the Securities, the Issuer
distributes to all holders of Shares any of its assets or debt securities or any
rights, warrants or options to purchase securities of the Issuer (including
securities or cash, but excluding (x) distributions of Capital Stock referred to
in Section 11.06 and distributions of rights, warrants or options referred to in
Section 11.07 and (y) cash dividends or other cash distributions that are paid
out of current net earnings or earnings retained in the business as shown on the
books of the Issuer unless such cash dividends or other cash distributions are
Extraordinary Cash Dividends), the Conversion Rate shall be adjusted, subject to
the provisions of the last paragraph of this Section 11.08, in accordance with
the formula:

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<PAGE>   69
                                           R x M
                                      R' =--------
                                           M - F
where:

                  R' = the adjusted Conversion Rate.

                  R = the current Conversion Rate.

                  M = the Average Quoted Price.

                  F = the fair market value (on the record date for the
distribution to which this Section 11.08 applies) of the assets or securities or
rights, warrants or options to be distributed in respect of each Share in the
distribution to which this Section 11.08 is being applied (including, in the
case of cash dividends or other cash distributions giving rise to an adjustment,
all such cash distributed concurrently).

                  The Board of Directors shall determine fair market values for
the purposes of this Section 11.08.

                  The adjustment shall become effective immediately after the
record date for the determination of shareholders entitled to receive the
distribution to which this Section 11.08 applies.

                  For purposes of this Section 11.08, the term "Extraordinary
Cash Dividend" shall mean any cash dividend with respect to the Shares the
amount of which exceeds on a per share basis 15% of the Sale Price of the Shares
(20% from and after a Trust Assumption Event pursuant to Section 11.21) on the
last trading day preceding the date of declaration by the Board of Directors of
the cash dividend with respect to which this provision is being applied, then
such cash dividend, shall be deemed to be an Extraordinary Cash Dividend and for
purposes of applying the formula set forth above in this Section 11.08, the
value of "F" shall be equal to the aggregate amount of such cash dividend. In
making the determinations required above, the amount of cash dividends paid on a
per Share basis shall be appropriately adjusted to reflect the occurrence during
such period of any event described in Section 11.06.

                  In the event that, with respect to any distribution to which
this Section 11.08 would otherwise apply, the difference "M-F" as defined in the
above formula is less than $1.00 or "F" is equal to or greater than "M", then
the adjustment provided by this Section 11.08 shall not be made and in lieu
thereof the provisions of Section 11.14 shall apply to such distribution.

                  SECTION 11.09. When Adjustment May Be Deferred. No adjustment
in the Conversion Rate need be made unless the adjustment would require an
increase or decrease of at least 1% in the Conversion Rate. Any adjustments that
are not made shall be carried forward and taken into account in any subsequent
adjustment.

                  All calculations under this Article 11 shall be made to the
nearest cent or to the nearest 1/1,000th of a share, as the case may be.

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<PAGE>   70
                  SECTION 11.10. When No Adjustment Required. No adjustment need
be made for a transaction referred to in Section 11.06, 11.07, 11.08 or 11.14 if
Securityholders are to participate in the transaction on a basis and with notice
that the Board of Directors determines to be fair and appropriate in light of
the basis and notice on which holders of Shares participate in the transaction.
Such participation by Securityholders may include participation upon conversion
provided that an adjustment shall be made at such time as the Securityholders
are no longer entitled to participate.

                  No adjustment need be made for rights to purchase Shares
pursuant to an Issuer plan for reinvestment of dividends or interest.

                  No adjustment need be made for a change in the par value or no
par value of the Shares.

                  To the extent the Securities become convertible pursuant to
this Article 11 into cash, no adjustment need be made thereafter as to the cash.
Interest (including Contingent Interest) will not accrue on the cash.

                  SECTION 11.11. Notice of Adjustment. Whenever the Conversion
Rate is adjusted, the Issuer shall promptly mail to Securityholders by
first-class mail a notice of the adjustment. The Issuer shall file with the
Trustee and the Conversion Agent such notice and a certificate from the Issuer's
independent public accountants briefly stating the facts requiring the
adjustment and the manner of computing it. The certificate shall be conclusive
evidence that the adjustment is correct. Neither the Trustee nor any Conversion
Agent shall be under any duty or responsibility with respect to any such
certificate except to exhibit the same to any Holder desiring inspection
thereof.

                  SECTION 11.12. Voluntary Increase. The Issuer from time to
time may increase the Conversion Rate by any amount for any period of time.
Whenever the Conversion Rate is increased, the Issuer shall mail to
Securityholders by first-class mail and file with the Trustee and the Conversion
Agent a notice of the increase. The Issuer shall mail the notice at least 15
days before the date the increased Conversion Rate takes effect. The notice
shall state the increased Conversion Rate and the period it will be in effect.

                  A voluntary increase of the Conversion Rate does not change or
adjust the Conversion Rate otherwise in effect for purposes of Section 11.06,
11.07 or 11.08.

                  SECTION 11.13. Notice of Certain Transactions. If:

                  (1) the Issuer takes any action that would require an
         adjustment in the Conversion Rate pursuant to Section 11.06, 11.07 or
         11.08 (unless no adjustment is to occur pursuant to Section 11.10);

                  (2) there is a liquidation or dissolution of the Issuer; or

                  (3) a Share Separation occurs;

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<PAGE>   71
then the Issuer shall mail to Securityholders by first-class mail and file with
the Trustee and the Conversion Agent a notice stating the proposed record date
for a dividend or distribution or the proposed effective date of a subdivision,
combination, reclassification, consolidation, merger, binding share exchange,
transfer, liquidation or dissolution. The Issuer shall file and mail the notice
at least 20 days before such date. Failure to file or mail the notice or any
defect in it shall not affect the validity of the transaction.

                  SECTION 11.14. Reorganization of Issuer; Special
Distributions. Subject to Section 11.21(d), if the Issuer is a party to a
transaction subject to Section 5.01 (other than a transaction in which the
Issuer is the Successor Company) or a binding share exchange which reclassifies
or changes its outstanding Shares, the Person obligated to deliver securities,
cash or other assets upon conversion of Securities shall enter into a
supplemental indenture. If the issuer of securities deliverable upon conversion
of Securities is an Affiliate of the Successor Company, that issuer shall join
in the supplemental indenture.

                  The supplemental indenture shall provide that the Holder of a
Security may convert it into the kind and amount of securities, cash or other
assets which such Holder would have received immediately after the
consolidation, merger, binding share exchange, conveyance, transfer or lease if
such Holder had converted the Security into Shares immediately before the
effective date of the transaction, assuming (to the extent applicable) that such
Holder (i) was not a constituent Person or an Affiliate of a constituent Person
to such transaction; (ii) made no election with respect thereto; and (iii) was
treated alike with the plurality of non-electing Holders. The supplemental
indenture shall include provisions for adjustments which shall be as nearly
equivalent as may be practical to the provisions for adjustments included in
this Article 11. The Successor Company shall mail to Securityholders a notice
briefly describing the supplemental indenture.

                  In the event of a transaction subject to the last sentence of
Section 5.01 in which the predecessor Issuer is not the Successor Company, the
Securities shall remain convertible into Shares in accordance with this Article
11.

                  If this Section 11.14 applies, neither Section 11.06 nor
Section 11.07 applies.

                  If the Issuer makes a distribution to all holders of Shares of
any of its assets, or debt securities or any rights, warrants or options to
purchase securities of the Issuer that, but for the provisions of the last
paragraph of Section 11.08, would otherwise result in an adjustment in the
Conversion Rate pursuant to the provisions of Section 11.08, then, from and
after the record date for determining the holders of Shares entitled to receive
the distribution, a Holder of a Security that converts such Security in
accordance with the provisions of this Indenture shall upon such conversion be
entitled to receive, in addition to the Shares into which the Security is
convertible, the kind and amount of securities, cash or other assets comprising
the distribution that such Holder would have received if such Holder had
converted the Security into Shares immediately prior to the record date for
determining the holders of Shares entitled to receive the distribution.

                                       66
<PAGE>   72
            SECTION 11.15. Issuer Determination Final. Any determination that
the Issuer or the Board of Directors must make pursuant to Section 11.03, 11.06,
11.07, 11.08, 11.09, 11.10, 11.14 or 11.17 is conclusive in the absence of
manifest error.

            SECTION 11.16. Trustee's Adjustment Disclaimer. The Trustee has no
duty to determine when an adjustment under this Article 11 should be made, how
it should be made or what it should be. The Trustee has no duty to determine
whether a supplemental indenture under Section 11.14 need be entered into or
whether any provisions of any supplemental indenture are correct. The Trustee
shall not be accountable for and makes no representation as to the validity or
value of any securities or assets issued upon conversion of Securities. The
Trustee shall not be responsible for the Issuer's failure to comply with this
Article 11. Each Conversion Agent shall have the same protection under this
Section 11.16 as the Trustee.

            SECTION 11.17. Simultaneous Adjustments. In the event that this
Article 11 requires adjustments to the Conversion Rate under more than one of
Sections 11.06(4), 11.07 or 11.08, and the record dates for the distributions
giving rise to such adjustments shall occur on the same date, then such
adjustments shall be made by applying, first, the provisions of Section 11.06,
second, the provisions of Section 11.08 and, third, the provisions of Section
11.07.

            SECTION 11.18. Successive Adjustments. After an adjustment to the
Conversion Rate under this Article 11, any subsequent event requiring an
adjustment under this Article 11 shall cause an adjustment to the Conversion
Rate as so adjusted.

            SECTION 11.19. Rights Issued in Respect of Shares Issued Upon
Conversion. Each Share issued upon conversion of Securities pursuant to this
Article 11 shall be entitled to receive the appropriate number of common stock
or preferred stock purchase rights, as the case may be (the "Rights"), if any,
and the certificates representing the Shares issued upon such conversion shall
bear such legends, if any, in each case as may be provided by the terms of any
rights agreement adopted by the Issuer, as the same may be amended from time to
time (in each case, a "Rights Agreement"). Provided that such Rights Agreement
requires that each Share issued upon conversion of Securities at any time prior
to the distribution of separate certificates representing the Rights be entitled
to receive such Rights, then, notwithstanding anything else to the contrary in
this Article 11, there shall not be any adjustment to the Conversion Rate as a
result of the issuance of Rights, the distribution of separate certificates
representing the Rights, the exercise or redemption of such Rights in accordance
with any such Rights Agreement, or the termination or invalidation of such
Rights.

            SECTION 11.20. Restriction on Shares Issued Upon Conversion. Shares
to be issued upon conversion of Securities prior to the effectiveness of a Shelf
Registration shall be physically delivered in certificated form to the holders
converting such Securities and the certificate representing such Shares shall
bear a legend substantially to the following effect:

            "THE SECURITY EVIDENCED HEREBY (OR ITS PREDECESSOR) WAS ORIGINALLY
            ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF
            THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND
            THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR

                                       67
<PAGE>   73
            OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
            APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY
            EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING
            ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
            ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY
            EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH
            SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1)(a)
            TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED
            INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES
            ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER
            THE SECURITIES ACT, (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF
            RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO
            A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
            904 UNDER THE SECURITIES ACT, OR (d) IN ACCORDANCE WITH ANOTHER
            EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
            (AND BASED UPON AN OPINION OF COUNSEL IF THE ISSUER SO REQUESTS),
            (2) TO THE ISSUER, (3) PURSUANT TO AN EFFECTIVE REGISTRATION
            STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE
            SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
            APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
            HOLDER IS REQUIRED, TO NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
            EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE."

unless removed in accordance with Section 11.20(b).

            (a) If (i) Shares to be issued upon conversion of a Security prior
to the effectiveness of a Shelf Registration are to be registered in a name
other than that of the holder of such Security or (ii) Shares represented by a
certificate bearing the above legend are transferred subsequently by such
holder, then, unless the Shelf Registration has become effective and such shares
are being transferred pursuant to the Shelf Registration, the holder must
deliver to the transfer agent for the Shares a certificate in substantially the
form of Exhibit __ as to compliance with the restrictions on transfer applicable
to such Shares and neither the transfer agent nor the registrar for the Shares
shall be required to register any transfer of such Shares not so accompanied by
a properly completed certificate.

            (b) Except in connection with a Shelf Registration, if certificates
representing Shares are issued upon the registration of transfer, exchange or
replacement of any other certificate representing Shares bearing the above
legend, or if a request is made to remove such legend from certificates
representing Shares, the certificates so issued shall bear the above legend, or
the above legend shall not be removed, as the case may be, unless there is
delivered to the Issuer such satisfactory evidence, which, in the case of a
transfer made pursuant to Rule 144 under the Securities Act, may include an
opinion of counsel, as may be reasonably required by

                                       68
<PAGE>   74
the Issuer, that neither the legend nor the restrictions on transfer set forth
therein are required to ensure that transfers thereof comply with the provisions
of Rule 144A, Rule 144 or Regulation S under the Securities Act or that such
Shares are securities that are not "restricted" within the meaning of Rule 144
under the Securities Act. Upon provision to the Issuer of such reasonably
satisfactory evidence, the Issuer shall cause the transfer agent for the Shares
to countersign and deliver certificates representing Shares that do not bear the
legend.

            SECTION 11.21. Conversion Adjustments Upon Share Separation.

            (a) Notwithstanding anything to the contrary contained in this
Article 11, but subject to Section 11.21(b), in the event of a transaction as a
result of which the Corporation Shares trade on a United States National
Securities Exchange separately from the Class B Shares, whether or not the Class
B Shares continue to trade on any United States National Securities Exchange (a
"Share Separation"), the Securities shall not be convertible into Shares, but
shall instead be convertible solely into Corporation Shares. Upon the occurrence
of a Share Separation, the Conversion Rate of the Securities shall be adjusted
and shall equal the Conversion Rate in effect on the Business Day immediately
prior to the effective date of the Share Separation multiplied by a percentage
equal to one hundred percent minus the Trust Percentage. The "Trust Percentage"
shall mean a fraction, the numerator of which shall equal the aggregate value of
all Class B Shares outstanding immediately after the Share Separation and the
denominator of which shall equal the sum of (i) the aggregate value of all such
Class B Shares and (ii) the aggregate value of all the Corporation Shares
outstanding immediately after the Share Separation. The aggregate value of the
Corporation Shares and the Class B Shares shall be based on the average closing
prices on the applicable principal trading market of the Corporation Shares of
the Class B Shares, as the case may be, over the first five consecutive trading
days after the effective date of the Share Separation; provided that if the
Class B Shares are not then traded on a United States National Securities
Exchange, the aggregate value of the Class B Shares shall be determined in the
good faith of the Board of Directors based upon the valuation opinion of a
nationally recognized investment bank.

            (b) In the event ( a "Trust Assumption Event") that (i) a Share
Separation occurs, (ii) the Trust Percentage, as determined pursuant to Section
11.21(a), is greater than 50% and (iii) a Rating Event occurs, then the Trust
shall expressly assume, by a supplemental indenture, executed and delivered to
the Trustee, in form satisfactory to the Trustee, all the obligations of the
Issuer under the Securities and this Indenture and the Securities shall be
convertible solely into Class B Shares. Upon the occurrence of a Trust
Assumption Event and the execution of such supplemental indenture, the Trust
shall succeed to, and be substituted for, and may exercise every right and power
of, the Issuer under this Indenture, and the predecessor Issuer shall be
discharged from all of its obligations under the Securities and this Indenture.
Upon the occurrence of a Trust Assumption Event, the Conversion Rate of the
Securities shall be adjusted and shall equal the Conversion Rate in effect on
the Business Day immediately prior to the effective date of the Share Separation
multiplied by the Trust Percentage, as determined pursuant to Section 11.21(a).
A "Rating Event" means that after the first public announcement by the Issuer of
a Share Separation and before the effective date of such Share Separation,
either Moody's Investor Service, Inc. or Standard & Poor's Rating Group (or, in
either case, if such Person ceases to rate the Securities for reasons outside
the control of the Issuer, any other "nationally recognized statistical rating
agency organization" (within the meaning of Rule 15c3-

                                       69
<PAGE>   75
1(c)(2)(vi)(F) under the Exchange Act) selected by the Issuer as a replacement
agency) rates the long-term senior debt of the Issuer below the rating of the
Securities in effect immediately prior to such public announcement.

            (c) In the event that a Share Separation occurs, Holders of
Securities shall not be entitled to convert their Securities into Shares for the
period beginning on the record date for such Share Separation and ending on the
first Business Day succeeding the first five consecutive trading days after the
effective date of such Share Separation.

            (d) In the event that a transaction constituting a Share Separation
or a Trust Assumption Event occurs that would require an adjustment of the
Conversion Rate pursuant to the provisions of this Article 11, the Conversion
Rate shall not be adjusted other than as described in Sections 11.21(a) and (b),
as the case may be.

                                   ARTICLE 12

                               SECURITY GUARANTEE

            SECTION 12.01. Guarantee.

            (a) Subject to this Article 12, each of the Guarantors hereby,
jointly and severally, unconditionally guarantees to each Holder of a Security
authenticated and delivered by the Trustee and to the Trustee and its successors
and assigns, irrespective of the validity and enforceability of this Indenture,
the Securities or the obligations of the Issuer hereunder or thereunder, that:
(a) the Issue Price of and accrued Original Issue Discount (or interest, if the
Securities have been converted into semi-annual coupon notes following the
occurrence of a Tax Event) and Contingent Interest and Defaulted Interest, if
any, on the Securities will be promptly paid in full when due, whether at
maturity, by acceleration, redemption, purchase or otherwise, and interest on
the overdue principal of and interest (including Contingent Interest) on the
Securities, if any, if lawful, and all other obligations of the Issuer to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (b) in case
of any extension of time of payment or renewal of any Securities or any of such
other obligations, that same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at Stated
Maturity, by acceleration or otherwise. Failing payment when due of any amount
so guaranteed or any performance so guaranteed for whatever reason, the
Guarantors shall be jointly and severally obligated to pay the same immediately.
Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

            (b) The Guarantors hereby agree that their obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities or this Indenture, the absence of any action to
enforce the same, any waiver or consent by any Holder of the Securities with
respect to any provisions hereof or thereof, the recovery of any judgment
against the Issuer, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor. Each Guarantor hereby waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Issuer, any right to require a proceeding first against the

                                       70
<PAGE>   76
Issuer, protest, notice and all demands whatsoever and covenant that its
guarantee shall not be discharged except by complete performance of the
obligations contained in the Securities and this Indenture.

            (c) If any Holder or the Trustee is required by any court or
otherwise to return to the Issuer, the Guarantors or any custodian, trustee,
liquidator or other similar official acting in relation to either the Issuer or
the Guarantors, any amount paid by either to the Trustee or such Holder, the
guarantee of the Guarantors, to the extent theretofore discharged, shall be
reinstated in full force and effect.

            (d) Each Guarantor agrees that it shall not be entitled to any right
of subrogation in relation to the Holders of Securities in respect of any
obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby. Each Guarantor further agrees that, as between the
Guarantors, on the one hand, and the Holders of Securities, respectively, and
the Trustee, on the other hand, (x) the maturity of the obligations guaranteed
hereby may be accelerated as provided in Article 6 hereof for the purposes of
its guarantee, notwithstanding any stay, injunction or other prohibition
preventing such acceleration in respect of the obligations guaranteed hereby,
and (y) in the event of any declaration of acceleration of such obligations as
provided in Article 6 hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by such Guarantor for the purpose of its
guarantee. The Guarantors shall have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Guarantee.

            SECTION 12.02. Limitation on Guarantor Liability.

            Each Guarantor, and by its acceptance of Securities, each Holder,
hereby confirms that it is the intention of all such parties that the guarantee
of such Guarantor not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to such guarantee. To effectuate the foregoing intention, the
Trustee, the Holders and the Guarantors hereby irrevocably agree that the
obligations of such Guarantor will, after giving effect to such maximum amount
and all other contingent and fixed liabilities of such Guarantor that are
relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under this
Article 12, result in the obligations of such Guarantor under its guarantee not
constituting a fraudulent transfer or conveyance.

            SECTION 12.03. Delivery of Guarantee.

            (a) To evidence its guarantee set forth in Section 12.01, each
Guarantor hereby agrees that the Securities shall bear a notation stating that
such Securities are guaranteed by the Guarantors in accordance with this Article
12 and may be released upon the terms and conditions set forth in this
Indenture.

                                       71
<PAGE>   77
            (b) Each Guarantor hereby agrees that its guarantee set forth in
Section 12.01 shall remain in full force and effect notwithstanding any failure
to endorse on each Security a notation of such guarantee.

            (c) If an officer of a Guarantor whose signature is on this
Indenture no longer holds that office at the time the Trustee authenticates the
Security, such guarantee shall be valid nevertheless.

            (d) The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
guarantees set forth in this Indenture on behalf of the Guarantors.

            (e) In the event that the Issuer creates or acquires any new
Subsidiaries subsequent to the date of this Indenture and such Subsidiaries
become guarantors under the Senior Credit Facility, then the Issuer shall cause
such Subsidiaries to become Guarantors under this Indenture and to execute a
supplemental indenture to this Indenture.

            SECTION 12.04. Guarantors May Consolidate, etc. on Certain Terms.

            (a) Except as otherwise provided in Section 12.05, no Guarantor may
consolidate with or merge with or into (unless such Guarantor is the surviving
Person) another Person whether or not affiliated with such Guarantor unless:

                        (i) subject to Section 12.05 hereof, the Person formed
            by or surviving any such consolidation or merger unconditionally
            assumes all the obligations of such Guarantor, pursuant to a
            supplemental indenture in form and substance reasonably satisfactory
            to the Trustee, under the Securities and the Indenture on the terms
            set forth herein or therein; and

                        (ii) immediately after giving effect to such
            transaction, no Default or Event of Default exists.

In case of any such consolidation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual performance of all of the covenants and conditions of this Indenture to
be performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor and such predecessor Guarantor shall be discharged from
its obligations under the Securities and this Indenture.

            (b) Except as set forth in Articles 4 and 5 hereof, and
notwithstanding clause (a) above, nothing contained in this Indenture or in any
of the Securities shall prevent any consolidation or merger of a Guarantor with
or into the Issuer or another Guarantor, or shall prevent any sale or conveyance
of the property of a Guarantor as an entirety or substantially as an entirety to
the Issuer or another Guarantor.

            SECTION 12.05. Release.

                                       72
<PAGE>   78
            (a) To the extent that a Guarantor is released as a guarantor under
the Senior Credit Facility or the Senior Credit Facility is refinanced without
such Guarantor being a guarantor under the new credit facility or in the event
the Senior Credit Facility is otherwise terminated, then such Guarantor (in the
event of a termination of the Senior Credit Facility, all Guarantors) will be
released and relieved of any obligations under its guarantee to the same extent
that such Guarantor was released and relieved of any obligations under the
Senior Credit Facility. Upon delivery by the Issuer to the Trustee of an
Officers' Certificate to the effect that such release has occurred in accordance
with the provisions of this Indenture, the Trustee shall execute any documents
reasonably required in order to evidence the release of any Guarantor from its
obligations under its guarantee.

            (b) Any Guarantor not released from its obligations under its
guarantee shall remain liable for the full amount of the Principal Amount at
Maturity (or, if such Securities have been converted to semi-annual coupon notes
following the occurrence of a Tax Event, Restated Principal Amount) and Original
Issue Discount (or interest, if the Securities have been converted into
semi-annual coupon notes following the occurrence of a Tax Event) and Contingent
Interest and Defaulted Interest, if any, on the Securities and for the other
obligations of any Guarantor under this Indenture as provided in this Article
12.

                                   ARTICLE 13

                                  MISCELLANEOUS

            SECTION 13.01. Trust Indenture Act Controls. If any provision of
this Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the Trust Indenture Act, the
required provision shall control.

            SECTION 13.02. Notices. Any notice or communication shall be in
writing and delivered in person or mailed by first-class mail (registered or
certified, return receipt requested), telecopier or overnight air courier
guaranteeing next day delivery, addressed as follows:

            If to the Issuer:

            Starwood Hotels & Resorts Worldwide, Inc.
            1111 Westchester Avenue
            White Plains, New York  10604
            Telecopy No.:  (914) 640-8260
            Attention:  General Counsel

                                       73
<PAGE>   79
            If to the Trustee:

            For payment, registration of transfer and exchange of the
            Securities:

            The Issuer or the Trustee by notice to the other may designate
additional or different addresses for subsequent notices or communications.
Notices to the Trustee shall be effective only upon receipt.

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

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

            SECTION 13.03. Communication by Holders with Other Holders.
Securityholders may communicate pursuant to Trust Indenture Act Section 312(b)
with other Securityholders with respect to their rights under this Indenture or
the Securities. The Issuer, the Trustee, the Registrar and anyone else shall
have the protection of Trust Indenture Act Section 312(c).

            SECTION 13.04. Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Issuer to the Trustee to take or refrain
from taking any action under this Indenture, the Issuer shall furnish to the
Trustee:

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

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

            Section 13.05. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:

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

                                       74
<PAGE>   80
            (2) a brief statement as to the nature and scope of the examination
      or investigation upon which the statements or opinions contained in such
      certificate or opinion are based;

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

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

            SECTION 13.06. When Securities Disregarded. In determining whether
the Holders of the required Principal Amount at Maturity of Securities have
concurred in any direction, waiver or consent, Securities owned by the Issuer,
or by any Person directly or indirectly controlling or controlled by or under
direct or indirect common control with the Issuer, shall be disregarded and
deemed not to be outstanding, except that, for the purpose of determining
whether the Trustee shall be protected in relying on any such direction, waiver
or consent, only Securities which the Trustee knows are so owned shall be so
disregarded. Subject to the foregoing, only Securities outstanding at the time
shall be considered in any such determination.

            SECTION 13.07. Rules by Trustee, Paying Agent and Registrar. The
Trustee may make reasonable rules for action by or a meeting of Securityholders.
The Registrar and the Paying Agent may make reasonable rules for their
functions.

            SECTION 13.08. Legal Holidays. A "Legal Holiday" is a Saturday,
Sunday or other day on which banking institutions in the State of New York are
authorized or required by law to close. If a payment date is a Legal Holiday,
payment shall be made on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period. If a regular record
date is a Legal Holiday, the record date shall not be affected.

            SECTION 13.09. Governing Law. THIS INDENTURE AND THE SECURITIES
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

            SECTION 13.10. No Recourse Against Others. A director, officer,
employee or stockholder, as such, of the Issuer shall not have any liability for
any obligations of the Issuer under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration
for the issuance of the Securities.

            SECTION 13.11. Successors. All agreements of the Issuer in this
Indenture and the Securities shall bind its successors. All agreements of the
Trustee in this Indenture shall bind its successors.

            SECTION 13.12. Multiple Originals. The parties may sign any number
of copies of this Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. One signed copy of the Indenture is
enough to prove this Indenture.

                                       75
<PAGE>   81
            SECTION 13.13. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not intended
to be considered a part hereof and shall not modify or restrict any of the terms
or provisions hereof.

            SECTION 13.14. Severability. If any provision in this Indenture is
deemed unenforceable, it shall not affect the validity or enforceability of any
other provision set forth herein, or of the Indenture as a whole.

                     [Rest of page intentionally left blank]

                                       76
<PAGE>   82
            IN WITNESS WHEREOF, the parties have caused this Indenture to be
duly executed as of the date first written above.

                                    STARWOOD HOTELS & RESORTS
                                    WORLDWIDE, INC.

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

                                                             , as Trustee
                                    -------------------------

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

                                       77
<PAGE>   83
                                    EXHIBIT A

                           [FORM OF FACE OF SECURITY]

            FOR PURPOSES OF SECTION 1272, 1273 AND 1275 OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, THIS SECURITY IS BEING ISSUED WITH ORIGINAL ISSUE
DISCOUNT; FOR EACH $1,000 PRINCIPAL AMOUNT OF THIS SECURITY, THE ISSUE PRICE IS
$_____. THE AMOUNT OF ORIGINAL ISSUE DISCOUNT IS $_____, THE ISSUE DATE IS
_______, 20__ AND THE YIELD TO MATURITY IS ___% PER ANNUM. IN ADDITION, THIS
SECURITY IS SUBJECT TO REGULATIONS GOVERNING CONTINGENT PAYMENT DEBT
INSTRUMENTS. UNDER SUCH REGULATIONS, THE COMPARABLE YIELD OF THIS SECURITY IS
___%, AND THE PROJECTED PAYMENT SCHEDULE IS ATTACHED AS EXHIBIT __ TO THE
INDENTURE. A HOLDER OF SECURITIES MAY ALSO OBTAIN THE PROJECTED PAYMENT SCHEDULE
BY SUBMITTING A WRITTEN REQUEST TO THE ISSUER AT THE FOLLOWING ADDRESS: STARWOOD
HOTELS & RESORTS WORLDWIDE, INC., 1111 WESTCHESTER AVENUE, WHITE PLAINS,
NEW YORK 10604, ATTENTION: GENERAL COUNSEL.

      THE ISSUER AGREES, AND BY ACCEPTANCE OF A BENEFICIAL INTEREST IN THE
SECURITY, EACH BENEFICIAL OWNER OF ALL OR ANY PORTION OF THE SECURITY EVIDENCED
HEREBY WILL BE DEEMED TO HAVE AGREED, FOR UNITED STATES FEDERAL INCOME TAX
PURPOSES (1) TO TREAT THE SECURITY AS INDEBTEDNESS THAT IS SUBJECT TO TREAS.
REG. SEC. 1.1275-4 (THE "CONTINGENT DEBT REGULATIONS") AND, FOR PURPOSES OF THE
CONTINGENT DEBT REGULATIONS, TO TREAT, WITHOUT LIMITATION, THE AMOUNT OF CASH
AND THE FAIR MARKET VALUE OF ANY SHARES BENEFICIALLY RECEIVED UPON A CONVERSION
OF THE SECURITY AS A CONTINGENT PAYMENT AND (2) TO BE BOUND BY THE ISSUER'S
DETERMINATION OF THE "COMPARABLE YIELD" AND "PROJECTED PAYMENT SCHEDULE", WITHIN
THE MEANING OF THE CONTINGENT DEBT REGULATIONS, WITH RESPECT TO THE SECURITY.

      [INCLUDE IF SECURITY IS A RESTRICTED SECURITY - THE SECURITY EVIDENCED
HEREBY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM
REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933 (THE
"SECURITIES ACT"), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR
OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY
NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF
SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF
THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH
SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (1)(a) TO A PERSON
WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED

                                      A-1
<PAGE>   84
IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A UNDER THE SECURITIES ACT, (b) IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (c) OUTSIDE THE UNITED STATES
TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER
THE SECURITIES ACT, OR (d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF
COUNSEL IF THE ISSUER SO REQUESTS), (2) TO THE ISSUER, (3) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED, TO NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. IN ANY CASE, THE HOLDER HEREOF
WILL NOT, DIRECTLY OR INDIRECTLY, ENGAGE IN ANY HEDGING TRANSACTIONS WITH REGARD
TO THE NOTES EXCEPT AS PERMITTED UNDER THE SECURITIES ACT.]

      THE HOLDER OF THIS SECURITY IS SUBJECT TO, AND ENTITLED TO THE BENEFITS
OF, A REGISTRATION RIGHTS AGREEMENT, DATED AS OF _______, 20__, ENTERED INTO BY
THE ISSUER FOR THE BENEFIT OF CERTAIN HOLDERS FROM TIME TO TIME OF SECURITIES.]

      [INCLUDE IF SECURITY IS A GLOBAL SECURITY -- THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER
OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

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

                                      A-2
<PAGE>   85
                    STARWOOD HOTELS & RESORTS WORLDWIDE, INC.

                [ZERO COUPON] CONVERTIBLE [SENIOR] NOTE DUE 20__

CUSIP No. ____________

Issue Date: _______, 20__
Issue Price: $_______
(for each $1,000 Principal Amount at Maturity)

$___________ Principal Amount at
Maturity

Original Issue Discount: $_______
(for each $1,000 Principal
Amount at Maturity)

      Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation (herein
called the "Issuer" or the "Company", which term includes any successor Person
under the Indenture hereinafter referred to), for value received, hereby
promises to pay to _____________, or its registered assigns, the Principal
Amount at Maturity set forth above [INCLUDE IF SECURITY IS A GLOBAL SECURITY --
(which amount may from time to time be increased or decreased by adjustments
made on the records of the Trustee, as custodian for the Depositary, in
accordance with the rules and procedures of the Depositary)] on _______, 20__.

      This Security shall not bear periodic interest except as specified on the
other side of this Security. Original Issue Discount will accrue as specified on
the other side of this Security. This Security is convertible as specified on
the other side of this Security.

      Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.

      Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Security
shall not be entitled to any benefit under the Indenture or be valid or
obligatory for any purpose.

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed.

                                          STARWOOD RESORTS & HOTELS
                                            WORLDWIDE, INC.

                                          By:_______________________________
                                             Name:__________________________
                                             Title:_________________________

                                      A-3
<PAGE>   86
                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

__________________, as Trustee, certifies that this is the Security referred to
in the Indenture.

By:_________________________________
   Authorized Signatory

Date of authentication:

                                      A-4

<PAGE>   87
                       [FORM OF REVERSE SIDE OF SECURITY]

     This Security is one of a duly authorized issue of Notes of the Issuer
designated as its [Zero Coupon] Convertible [Senior] Notes due 20__, limited in
aggregate Principal Amount at Maturity to $_____________ (subject to increase by
up to $_____________ in the event the Initial Purchaser exercises the
over-allotment option granted to it in the Purchase Agreement) (herein called
the "Securities"), issued and to be issued under an Indenture, dated as of
_______, 20__ (herein called the "Indenture"), among the Issuer, the guarantors
party thereto and ______________, as Trustee (herein called the "Trustee", which
term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties and immunities thereunder
of the Issuer, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered.

      Interest - This Security shall not bear periodic interest, except as
specified herein. If the Principal Amount at Maturity (or, if such Securities
have been converted to semi-annual coupon notes following the occurrence of a
Tax Event, Restated Principal Amount) hereof or any portion of such Principal
Amount at Maturity (or, if such Securities have been converted to semi-annual
coupon notes following the occurrence of a Tax Event, Restated Principal Amount)
is not paid when due (whether upon acceleration pursuant to Section 6.02 of the
Indenture, upon the date set for payment of the Redemption Price, upon the date
set for payment of a Purchase Price or Change in Control Purchase Price or upon
the Stated Maturity of this Security) or if interest (including Contingent
Interest, if any) due hereon or any portion of such interest is not paid when
due in accordance with the paragraph entitled "Contingent Interest" hereof, then
in each such case the overdue amount shall bear interest at the rate of ___% per
annum, compounded semiannually (to the extent that the payment of such interest
shall be legally enforceable), which interest shall accrue from the date such
overdue amount was due to the date payment of such amount, including interest
thereon, has been made or duly provided for. All such interest shall be payable
on demand. The accrual of such interest on overdue amounts shall be in lieu of,
and not in addition to, the continued accrual of Original Issue Discount.
Original Issue Discount (the difference between the Issue Price and the
Principal Amount at Maturity of the Security), in the period during which a
Security remains outstanding, shall accrue at ___% per annum, on a semi-annual
bond equivalent basis using a 360-day year composed of twelve 30-day months,
from the Issue Date of this Security. Original Issue Discount shall cease to
accrue on the earlier of (a) the date on which the Principal Amount hereof or
any portion of such Principal Amount becomes due and payable and (b) any
Redemption Date, Conversion Date, Change in Control Purchase Date, Purchase Date
or other date on which such Original Issue Discount (or, if such Securities have
been converted to semi-annual coupon notes following the occurrence of a Tax
Event, interest thereon) shall cease to accrue in accordance with Section 2.09
of the Indenture.

      Method of Payment - Holders must surrender Securities to the Paying Agent
to collect all payments in respect of the Securities, except for liquidated
damages payable pursuant to the Registration Rights Agreement and, if such
Securities have been converted to semi-annual coupon notes following the
occurrence of a Tax Event, interest thereon and Contingent Interest. The Issuer
will pay cash amounts in money of the United States that at the time of payment
is legal tender for payment of public and private debts.

                                      A-5

<PAGE>   88
      Contingent Interest - Subject to the accrual and record date provisions
specified in this paragraph, the Issuer shall pay contingent interest
("Contingent Interest") to the Holders during any six-month period (a
"Contingent Interest Period") from ________ to ________ and from ________ to
________, commencing after ________, 20__, if the average Security Market Price
for the five trading days ending on the second trading day immediately preceding
the relevant six-month period with respect to such Contingent Interest Period
equals 120% or more of the sum of the Issue Price of a Security and Original
Issue Discount accrued thereon to the trading day immediately preceding the
first day of the relevant Contingent Interest Period.

      The amount of Contingent Interest payable per Security in respect of any
Contingent Interest Period shall equal the greater of (x) a per annum rate equal
to ___% of the Issuer's then current per annum borrowing rate for senior
non-convertible fixed rate indebtedness with a maturity date comparable to the
Securities, estimated in good faith by the Board of Directors, multiplied by the
sum of the Issue Price of a Security and Original Issue Discount accrued thereon
to the trading day immediately preceding the first day of the relevant
Contingent Interest Period and (ii) a per annum rate of ___% multiplied by the
average Security Market Price for the five trading days ending on the second
trading day immediately preceding the relevant Contingent Interest Period.
Contingent Interest shall be computed on the basis of a 360-day year comprised
of twelve 30-day months.

      Contingent Interest, if any, will accrue and be payable to Holders as of
the 15th day preceding the last day of the relevant Contingent Interest Period.
Such payments shall be paid on the last day of the relevant Contingent Interest
Period. Original Issue Discount will continue to accrue at  ___ % per annum
whether or not Contingent Interest is paid.

      "Security Market Price" means, as of any date of determination, the
average of the secondary market bid quotations per Security obtained by the Bid
Solicitation Agent for $10 million Principal Amount at Maturity at approximately
4:00 p.m. (New York City time) on such determination date from two recognized
securities dealers in The City of New York (none of which shall be an Affiliate
of the Issuer) selected by the Issuer; provided, however, if (a) at least two
such bids are not obtained by the Bid Solicitation Agent or (b) in the Issuer's
reasonable judgment, the bid quotations are not indicative of the secondary
market value of the Securities as of such determination date, then the Market
Price of the Securities for such determination date shall equal (i) the
Conversion Rate in effect as of such determination date multiplied by (ii) the
average Sale Price for the five trading days ending on such determination date,
appropriately adjusted to take into account the occurrence, during the period
commencing on the first of such trading days during such five trading day period
and ending on such determination date, of any event described in Section 11.06,
11.07, 11.08 or 11.21 (subject to the conditions set forth in Sections 11.09 and
11.10) of the Indenture.

      Upon determination that Holders will be entitled to receive Contingent
Interest which may become payable during a Contingent Interest Period, on or
prior to the first day of such Contingent Interest Period, the Issuer shall
issue a press release and publish such information on its web site at
www.starwoodhotels.com or such other website as the Issuer may from time to time
maintain.

                                      A-6

<PAGE>   89
      Redemption at the Option of the Issuer - No sinking fund is provided for
the Securities. The Securities are redeemable as a whole, or from time to time
in part, at any time at the option of the Issuer at a Redemption Price equal to
the Issue Price plus the accrued Original Issue Discount to the Redemption Date
as set forth in the next paragraph, provided that the Securities are not
redeemable prior to ________, 20__ at the option of the Issuer.

      The table below shows redemption prices (each a "Redemption Price") of a
Security per $1,000 Principal Amount at Maturity on the dates shown below and at
Stated Maturity, which prices equal the Issue Price plus accrued Original Issue
Discount calculated to each such date. The Redemption Price of a Security
redeemed between such dates shall include an additional amount reflecting the
additional Original Issue Discount accrued since the next preceding date in the
table.

<TABLE>
<CAPTION>

                                             ACCRUED ORIGINAL    REDEMPTION
                                ISSUE         ISSUE DISCOUNT        PRICE
                DATE           PRICE(1)         AT ___%(2)        (1) + (2)
           ----------------------------------------------------------------
<S>                            <C>           <C>                 <C>
           ________, 20__      $                $                 $
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
           ________, 20__
              At Stated        $                $                 $
              Maturity
</TABLE>

      In addition, if there shall have occurred a Trust Assumption Event, the
Issuer or the Trust, at either the Issuer's or the Trust's option, may elect to
redeem Securities for a period of 60 days following the effective date of such
Trust Assumption Event for cash at a redemption price (the "Trust Assumption
Event Redemption Price") equal to the Issue Price of the Securities plus accrued
Original Issue Discount through the Trust Assumption Event Redemption Date.

      If converted to a semi-annual coupon note following the occurrence of a
Tax Event, this Security will be redeemable at the option of the Issuer at the
Restated Principal Amount plus accrued and unpaid interest (including Contingent
Interest) from the later of the date of such conversion and the date on which
interest was last paid through the Redemption Date or the Trust Assumption Event
Redemption Date, as the case may be; but in no event will this Security

                                     A-7
<PAGE>   90
be redeemable before ________, 20__ at the option of the Issuer, unless a Trust
Assumption Event shall have occurred.

      In addition to the Redemption Price or Trust Assumption Event Redemption
Price payable with respect to all Securities or portions thereof to be redeemed
as of a Redemption Date or Trust Assumption Event Redemption Date, as the case
may be, the Holders of such Securities (or portions thereof) shall be entitled
to receive accrued and unpaid Contingent Interest and Defaulted Interest, if
any, with respect thereto, which Contingent Interest and Defaulted Interest
shall be paid in cash on the Redemption Date or Trust Assumption Event
Redemption Date, as the case may be.

      Purchase By the Issuer at the Option of the Holder - Subject to the terms
and conditions of the Indenture, the Issuer shall become obligated to purchase,
at the option of the Holder, the Securities held by such Holder on the following
Purchase Dates and at the following Purchase Prices per $1,000 Principal Amount
at Maturity, upon delivery of a Purchase Notice containing the information set
forth in the Indenture, at any time from the opening of business on the date
that is 20 Business Days prior to such Purchase Date until the close of business
on the third Business Day prior to such Purchase Date and upon delivery of the
Securities to the Paying Agent by the Holder as set forth in the Indenture.

<TABLE>
<CAPTION>
      Purchase Date       Purchase Price
      -------------       --------------
<S>                       <C>
      ________, 20__         $
      ________, 20__         $
      ________, 20__         $
      ________, 20__         $
      ________, 20__         $
</TABLE>

      The Purchase Price (equal to the Issue Price plus accrued Original Issue
Discount to the Purchase Date) may be paid, at the option of the Issuer, in cash
or by the issuance and delivery of Shares of the Issuer valued at the Market
Price, or in any combination of cash and Shares.

      If prior to a Purchase Date this Security has been converted to a
semi-annual coupon note following the occurrence of a Tax Event, the Purchase
Price will be equal to the applicable Restated Principal Amount plus accrued and
unpaid interest from the later of the date of such conversion and the date on
which interest was last paid to the Purchase Date.

      At the option of the Holder and subject to the terms and conditions of the
Indenture, the Issuer shall become obligated to repurchase the Securities if a
Change in Control occurs at any time on or prior to ________, 20__ for a Change
in Control Purchase Price equal to the Issue Price plus accrued Original Issue
Discount to the Change in Control Purchase Date, which Change in Control
Purchase Price shall be paid in cash. If prior to a Change in Control Purchase
Date this Security has been converted to a semi-annual coupon note following the
occurrence of a Tax Event, the Change in Control Purchase Price shall be equal
to the Restated Principal

                                     A-8
<PAGE>   91
Amount plus accrued and unpaid interest from the later of the date of such
conversion and the date on which interest was last paid to the Change in Control
Purchase Date.

      At the option of the Holder and subject to the terms and conditions of the
Indenture, the Trust shall become obligated to repurchase the Securities if a
Trust Assumption Event occurs for a Trust Assumption Event Purchase Price equal
to the Issue Price plus accrued Original Issue Discount to the Trust Assumption
Event Purchase Date, which Trust Assumption Event Purchase Price shall be paid
in cash. If prior to a Trust Assumption Event Purchase Date this Security has
been converted to a semi-annual coupon note following the occurrence of a Tax
Event, the Trust Assumption Event Purchase Price shall be equal to the Restated
Principal Amount plus accrued and unpaid interest from the later of the date of
such conversion and the date on which interest was last paid to the Trust
Assumption Event Purchase Date.

      In addition to the Purchase Price, Change in Control Purchase Price or
Trust Assumption Event Purchase Price, as the case may be, payable with respect
to all Securities or portions thereof to be purchased as of the Purchase Date,
the Change in Control Purchase Date or Trust Assumption Event Purchase Date, as
the case may be, the Holders of such Securities (or portions thereof) shall be
entitled to receive accrued and unpaid Contingent Interest and Defaulted
Interest, if any, with respect thereto, which Contingent Interest and Defaulted
Interest shall be paid in cash promptly following the later of the Purchase
Date, the Change in Control Purchase Date or Trust Assumption Event Purchase
Date, as the case may be, and the time of delivery of such Securities to the
Paying Agent pursuant to the Indenture.

      Holders have the right to withdraw any Purchase Notice or Change in
Control Purchase Notice, as the case may be, by delivering to the Paying Agent a
written notice of withdrawal in accordance with the provisions of the Indenture.

      If cash and/or securities sufficient to pay the Purchase Price or cash
sufficient to pay the Change in Control Purchase Price or cash sufficient to pay
the Trust Assumption Event Purchase Price, as the case may be, of, together with
any accrued and unpaid Contingent Interest with respect to, all Securities or
portions thereof to be purchased as of the Purchase Date, the Change in Control
Purchase Date or the Trust Assumption Event Purchase Date, as the case may be,
are deposited with the Paying Agent on the Business Day following the Purchase
Date, the Change in Control Purchase Date or Trust Assumption Event Purchase
Date, as the case may be, Original Issue Discount or, if the Securities have
been converted to semi-annual coupon notes following the occurrence of a Tax
Event, interest, and Contingent Interest, will cease to accrue on such
Securities (or portions thereof) immediately after such Purchase Date, Change in
Control Purchase Date or Trust Assumption Event Purchase Date, as the case may
be, and the Holder thereof shall have no other rights as such (other than the
right to receive the Purchase Price, Change in Control Purchase Price or the
Trust Assumption Event Purchase Price, as the case may be, and accrued and
unpaid Contingent Interest, if any, upon surrender of such Security).

      If the Issuer elects to pay all or part of the Purchase Price in Shares,
the portion of accrued Original Issue Discount (or interest if the Issuer has
exercised the option to convert the Securities into semi-annual coupon notes as
provided for herein) attributable to the period from the Issue Date (or, if the
Issuer has exercised its option to convert the Securities into semi-annual
coupon notes, the later of (x) the date of such exercise, and (y) the date on
which interest was last

                                     A-9
<PAGE>   92
paid) through the Purchase Date with respect to the surrendered Security and
(except as provided below) accrued Contingent Interest and Defaulted Interest
with respect to the surrendered Security shall not be cancelled, extinguished or
forfeited, but rather shall be deemed to be paid in full to the Holder thereof
through the delivery of the Shares (together with cash payment, if any, in lieu
of fractional Shares) and cash, if any, in exchange for the Security being
purchased pursuant to the terms hereof; and such cash, if any, and the fair
market value of such Shares (together with any such cash payment in lieu of
fractional Shares) shall be treated as delivered pro rata, to the extent
thereof, first in exchange for Original Issue Discount (or interest, if the
Issuer has exercised its option to convert the Securities into semi-annual
coupon notes) accrued through the Purchase Date and accrued Contingent Interest
and Defaulted Interest, and the balance, if any, of such cash and the fair
market value of such Shares (and any such cash payment) shall be treated as
delivered in exchange for the Issue Price of the Security being purchased
pursuant to the provisions hereof.

      Ranking - The Securities shall be general senior obligations of the
Issuer. The Securities are secured on an equal and ratable basis under the
Pledge Agreement pursuant to Section 4.09 of the Indenture. The security under
the Pledge Agreement may be released as provided in the Indenture.

      Guarantee - The Securities are guaranteed by the Guarantors in accordance
with Article 12 of the Indenture. The guarantees may be released upon the terms
and conditions set forth in the Indenture.

      Conversion - A Holder of a Security may convert it into Shares in
accordance with the terms and conditions set forth in Article 11 of the
Indenture.

      After ________, 20__, a Holder's right to convert Securities into Shares
is subject to the Issuer's right to elect to instead pay such Holder the amount
of cash set forth in the next succeeding sentence in lieu of delivering all or
part of such Shares; provided, however, that if such payment of cash is not
permitted pursuant to the provisions of the Indenture, the Issuer shall deliver
Shares (and cash in lieu of fractional Shares) in accordance with Article 11 of
the Indenture, whether or not the Issuer has delivered a notice pursuant to
Section 11.02 of the Indenture to the effect that the Securities will be paid in
cash. The amount of cash to be paid for each $1,000 Principal Amount of a
Security shall be equal to the Market Price of a Share multiplied by the
Conversion Rate in effect on such Conversion Date. If the Issuer shall elect to
make such payment wholly in Shares, then such Shares shall be delivered through
the Conversion Agent to Holders surrendering Securities no later than the fifth
Business Day following the Conversion Date. If, however, the Issuer shall elect
to make any portion of such payment in cash, then the payment, including any
delivery of Shares, shall be made to Holders surrendering Securities no later
than the tenth Business Day following the Conversion Date.

      The Issuer shall not pay cash in lieu of delivering all or part of such
Shares upon the conversion of any Security pursuant to the terms of Article 11
of the Indenture (other than cash in lieu of fractional shares) if there has
occurred (prior to, on or after, as the case may be, the Conversion Date or the
date on which the Issuer delivers its notice of whether each Security shall be
converted into Shares or cash) and is continuing an Event of Default (other than
a default in such payment on such Securities).

                                     A-10
<PAGE>   93

      The initial Conversion Rate is ________ Shares per $1,000 Principal Amount
at Maturity, subject to adjustment in certain events described in the Indenture.
The Issuer will deliver cash or a check in lieu of any fractional Share.

      In the event the Issuer exercises its option pursuant to Section 10.01 of
the Indenture to have interest in lieu of Original Issue Discount accrue on the
Security following a Tax Event, the Holder will be entitled on conversion into
Shares to receive the same number of Shares such Holder would have received if
the Issuer had not exercised such option. If the Issuer exercises such option,
Securities surrendered for conversion during the period from the close of
business on any Regular Record Date next preceding any Interest Payment Date to
the opening of business on such Interest Payment Date (except Securities to be
redeemed on a date within such period) must be accompanied by payment of an
amount equal to the interest (including Contingent Interest) thereon that the
registered Holder is entitled to receive. Except where Securities surrendered
for conversion must be accompanied by payment as described above, no interest on
converted Securities shall be payable by the Issuer on any Interest Payment Date
subsequent to the date of conversion.

      Securities surrendered for conversion during the period from the close of
business on any date on which Contingent Interest accrues to the opening of
business on the date on which such Contingent Interest is payable (except
Securities with respect to which the Issuer has mailed a notice of redemption)
must be accompanied by payment of an amount equal to the Contingent Interest and
Defaulted Interest with respect thereto that the registered Holder is to
receive. Except where Securities surrendered for conversion must be accompanied
by payment as described above, no Contingent Interest or Defaulted Interest on
converted Securities will accrue after the date of conversion.

      To convert a Security, a Holder must (1) complete and manually sign the
conversion notice below (or complete and manually sign a facsimile of such
notice) and deliver such notice to the Conversion Agent, (2) surrender the
Security to the Conversion Agent for cancellation, (3) furnish appropriate
endorsements and transfer documents if required by the Conversion Agent, the
Issuer or the Trustee and (4) pay all funds required, if any, relating to
interest (including Contingent Interest) on the Security to be converted for
which you are not entitled and pay any transfer or similar tax, if required.

      A Holder may convert a portion of a Security if the Principal Amount at
Maturity of such portion is $1,000 or an integral multiple of $1,000. No payment
or adjustment will be made for dividends on, or other distributions with respect
to, any Shares except as provided in the Indenture. On conversion of a Security,
that portion of accrued Original Issue Discount (or interest, if the Issuer has
exercised its option provided for below in "Tax Event") attributable to the
period from the Issue Date (or, if the Issuer has exercised the option referred
to below in "Tax Event", the later of (x) the date of such exercise and (y) the
date on which interest was last paid) through the Conversion Date with respect
to the converted Security and (except as provided below) accrued Contingent
Interest and accrued Defaulted Interest with respect to the converted Security
shall not be cancelled, extinguished or forfeited, but rather shall be deemed to
be paid in full to the Holder thereof through the delivery of the Shares
(together with the cash payment, if any, in lieu of fractional Shares) in
exchange for the Security being converted pursuant to the terms hereof; and the
fair market value of such Shares (together with any such

                                     A-11
<PAGE>   94
cash payment in lieu of fractional Shares) shall be treated as delivered pro
rata, to the extent thereof, first in exchange for Original Issue Discount (or
interest, if the Issuer has exercised its option provided for below in "Tax
Event") and accrued Contingent Interest accrued through the Conversion Date and
Defaulted Interest, and the balance, if any, of the fair market value of such
Shares shall be treated as delivered in exchange for the Issue Price of the
Security being converted pursuant to the provisions hereof.

      The Conversion Rate will be adjusted as provided in the Indenture.

      If the Issuer is a party to a consolidation, merger or binding share
exchange or a transfer of its assets as, or substantially as, an entirety, or
upon certain distributions described in the Indenture, the right to convert a
Security into Shares may be changed into a right to convert it into securities,
cash or other assets of the Issuer or another Person.

      In the event of a Share Separation, the Securities shall not be
convertible in Shares, but shall instead be convertible solely into Corporation
Shares except upon a Trust Assumption Event. Upon the occurrence of a Share
Separation, the Conversion Rate of the Securities shall be adjusted in
accordance with the terms of the Indenture. In addition, Holders of Securities
shall not be entitled to convert their Securities into Shares for the period
beginning on the record date for such Share Separation and ending on the first
Business Day succeeding the first five consecutive trading days after the
effective date of such Share Separation.

      Tax Event - From and after (1) the date (the "Tax Event Date") of the
occurrence of a Tax Event and (2) the date the Issuer exercises such option,
whichever is later (the "Option Exercise Date"), at the option of the Issuer,
interest in lieu of future Original Issue Discount shall accrue at the rate of
___% per annum on a principal amount per Security (the "Restated Principal
Amount") equal to the Issue Price plus Original Issue Discount accrued to the
Option Exercise Date and shall be payable semi-annually on _________ and
_________ of each year (each an "Interest Payment Date") to holders of record at
the close of business on _________ or _________ (each a "Regular Record Date")
immediately preceding such Interest Payment Date. Interest will be computed on
the basis of a 360-day year comprised of twelve 30-day months and will accrue
from the most recent date to which interest has been paid or, if no interest has
been paid, from the Option Exercise Date.

      Interest (including Contingent Interest) on any Security that is payable,
and is punctually paid or duly provided for, on any Interest Payment Date shall
be paid to the Person in whose name that Security is registered at the close of
business on the Regular Record Date for such interest at the office or agency of
the Issuer maintained for such purpose. Each installment of interest on any
Security shall be paid in same-day funds by transfer to an account maintained by
the payee located inside the United States, provided that with respect to any
Holder, such Holder shall have furnished to the Paying Agent all required wire
payment instructions no later than the related Regular Record Date, or if no
such instructions have been furnished, by check payable to such Holder.

      From and after the Option Exercise Date, Contingent Interest provided for
in the paragraph entitled "Contingent Interest" hereof shall cease to accrue on
this Security.

                                     A-12
<PAGE>   95
            Except as otherwise specified with respect to the Securities, any
Defaulted Interest on any Security shall forthwith cease to be payable to the
registered Holder thereof on the relevant Regular Record Date by virtue of
having been such Holder, and such Defaulted Interest may be paid by the Issuer
as provided for in Section 10.04(b) of the Indenture.

      [INCLUDE IF SECURITY IS A GLOBAL SECURITY -- In the event of a deposit or
withdrawal of an interest in this Security, including an exchange, transfer,
repurchase or conversion of this Security in part only, the Trustee, as
custodian of the Depositary, shall make an adjustment on its records to reflect
such deposit or withdrawal in accordance with the rules and procedures of the
Depositary.]

      [INCLUDE IF SECURITY IS A RESTRICTED SECURITY -- Subject to certain
limitations in the Indenture, at any time when the Issuer is not subject to
Section 13 or 15(d) of the United States Securities Exchange Act of 1934, as
amended, upon the request of a Holder of a Restricted Security, the Issuer shall
promptly furnish or cause to be furnished Rule 144A Information (as defined
below) to such Holder of Restricted Securities, or to a prospective purchaser of
any such security designated by any such Holder, to the extent required to
permit compliance by any such Holder with Rule 144A under the Securities Act of
1933, as amended (the "Securities Act"). "Rule 144A Information" shall be such
information as is specified pursuant to Rule 144A(d)(4) under the Securities Act
(or any successor provision thereto).]

      If an Event of Default shall occur and be continuing, the Issue Price plus
the Original Issue Discount or, if the Securities have been converted to
semi-annual coupon notes following the occurrence of a Tax Event, the Restated
Principal Amount plus interest, accrued on all the Securities and accrued
Contingent Interest, if any, may be declared due and payable in the manner and
with the effect provided in the Indenture.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and of this Security and the modification of the rights and
obligations of the Issuer and the rights of the Holders of the Securities under
the Indenture and this Security at any time by the Issuer and the Trustee with
the consent of the Holders of not less than a majority in aggregate Principal
Amount at Maturity of the outstanding Securities. The Indenture also contains
provisions permitting the Holders of specified percentages in aggregate
Principal Amount at Maturity of the outstanding Securities, on behalf of the
Holders of all the Securities, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Security.

      As provided in and subject to the provisions of the Indenture, the Holder
of this Security shall not have the right to institute any proceeding with
respect to the Indenture or for the appointment of a receiver or trustee or for
any other remedy thereunder, unless such Holder shall have previously given the
Trustee written notice of a continuing Event of Default with respect to the
Securities, the Holders of not less than 25% in Principal Amount at Maturity of
the outstanding Securities shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered
the Trustee reasonable indemnity, and

                                      A-13
<PAGE>   96
the Trustee shall not have received from the Holders of a majority in Principal
Amount at Maturity of outstanding Securities a direction inconsistent with such
request, and shall have failed to institute any such proceeding, for 60 days
after receipt of such notice, request and offer of indemnity. The foregoing
shall not apply to any suit instituted by the Holder of this Security for the
enforcement of any payment hereon on or after the respective due dates expressed
herein.

      No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the Principal Amount at Maturity, Restated
Principal Amount, Purchase Price or Change in Control Purchase Price of, accrued
Original Issue Discount or interest (including Contingent Interest), if any, on,
and liquidated damages on this Security at the times, place and rate, and in the
coin or currency, prescribed in the Indenture.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the security
register, upon surrender of this Security for registration of transfer at the
office or agency of the Issuer established pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Registrar duly executed by, the Holder hereof
or his attorney duly authorized in writing, and thereupon one or more new
Securities, of authorized denominations and for the same aggregate Principal
Amount at Maturity, will be issued to the designated transferee or transferees.

      The Securities are issuable only in registered form without coupons in
denominations of $1,000 Principal Amount at Maturity and any integral multiple
of $1,000 above that amount. As provided in the Indenture and subject to certain
limitations therein set forth, Securities are exchangeable for a like aggregate
Principal Amount at Maturity of Securities of a different authorized
denomination, as requested by the Holder surrendering the same.

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

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

      All terms used in this Security which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.

                                      A-14
<PAGE>   97
                                 ASSIGNMENT FORM

      If you want to assign this Security, fill in the form below and have your
signature guaranteed:

      I or we assign and transfer this Security to:

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

(Print or type name, address and zip code and social security or tax ID number
of assignee)

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

      Date:________________________     Signed:_______________________

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

      Signature Guarantee:________________________________

      In connection with any transfer of this Security occurring prior to the
date of the declaration by the SEC of the effectiveness of a registration
statement under the Securities Act of 1933, as amended (the "Securities Act"),
covering resales of this Security (which effectiveness shall not have been
suspended or terminated at the date of the transfer), I or we are assigning and
transferring this Security:

                                   [Check One]

      (1) [ ]    to the Issuer or a subsidiary of the Issuer; or

      (2) [ ]    pursuant to and in compliance with Rule 144A under the
                 Securities Act; or

      (3) [ ]    outside the United States to a "foreign person" in compliance
                 with Rule 904 of Regulation S under the Securities Act; or

      (4) [ ]    pursuant to the exemption from registration provided by Rule
                 144 under the Securities Act; or

      (5) [ ]    pursuant to an effective registration statement under the
                 Securities Act; or

      (6) [ ]    pursuant to another available exemption from the registration
                 requirements of the Securities Act.

      Unless one of the boxes is checked, the Trustee will refuse to register
any of the Securities evidenced by this certificate in the name of any Person
other than the registered

                                      A-15
<PAGE>   98
Holder thereof, provided that if box (3), (4) or (6) is checked, the Issuer may
require, prior to registering any such transfer of the Securities, in its sole
discretion, such legal opinions, certifications (including an investment letter
in the case of box (3)) and other information as the Issuer may reasonably
request to confirm that such transfer is being made pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act.

      If none of the foregoing boxes is checked, the Trustee or Registrar shall
not be obligated to register this Security in the name of any Person other than
the Holder hereof unless and until the conditions to any such transfer of
registration set forth herein and in Section 3.09 of the Indenture shall have
been satisfied.

      Date:_________________________    Signed:________________________

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

      Signature Guarantee:________________________________

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

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

      Date:_________________________    Signed:________________________

      NOTICE: To be executed by an executive officer.

                                      A-16
<PAGE>   99
                            FORM OF CONVERSION NOTICE

      If you want to convert this Security into Shares of the Issuer, check the
box: [ ]

      To convert only part of this Security, state the Principal Amount at
Maturity to be converted (which must be $1,000 or an integral multiple of
$1,000):

      $_________________________________

      If you want the stock certificate made out in another person's name, fill
in the form below:

________________________________________________________________________________

              (Insert other person's social security or tax ID no.)

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

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

      Date:_________________________    Signed:________________________

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

              Signature Guarantee:________________________________

                                      A-17

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