Document:

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                                                                     EXHIBIT 4.5

                               ARGONAUT GROUP INC.

                                       TO

                        LASALLE BANK NATIONAL ASSOCIATION

                                     Trustee

                                   ----------

                          JUNIOR SUBORDINATED INDENTURE

                          Dated as of November __, 2002

                                   ----------

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                               Argonaut Group Inc.
                 Certain Sections of this Indenture relating to
                  Sections 3.10 through 3.18, inclusive, of the
                    Trust Indenture Act of 1939, as amended:

      Provisions of Trust                                        Indenture
     Indenture Act of 1939,                                      Section
          as amended
       Section 310(a)(1)  .....................................  6.9
                  (a)(2)  .....................................  6.9
                  (a)(3)  .....................................  Not Applicable
                  (a)(4)  .....................................  Not Applicable
                     (b)  .....................................  6.8, 6.10
                     (c)  .....................................  Not Applicable
          Section 311(a)  .....................................  6.13
                     (b)  .....................................  6.13
                     (c)  .....................................  Not Applicable
          Section 312(a)  .....................................  7.1, 7.2(a)
                     (b)  .....................................  7.2(b)
                     (c)  .....................................  7.2(c)
          Section 313(a)  .....................................  7.3(a)
                     (b)  .....................................  7.3(a)
                     (c)  .....................................  7.3(a)
                     (d)  .....................................  7.3(b)
          Section 314(a)  .....................................  7.4
                  (a)(4)  .....................................  1.1, 10.4
                     (b)  .....................................  Not Applicable
                  (c)(1)  .....................................  1.2
                  (c)(2)  .....................................  1.2
                  (c)(3)  .....................................  Not Applicable
                     (d)  .....................................  Not Applicable
                     (e)  .....................................  1.2
          Section 315(a)  .....................................  6.1
                     (b)  .....................................  6.2
                     (c)  .....................................  6.1
                     (d)  .....................................  6.1
                     (e)  .....................................  5.14
          Section 316(a)  .....................................  1.1
               (a)(1)(A)  .....................................  5.2, 5.12
               (a)(1)(B)  .....................................  5.13
                  (a)(2)  .....................................  Not Applicable
                     (b)  .....................................  5.8
                     (c)  .....................................  1.4(c)
       Section 317(a)(1)  .....................................  5.3
                  (a)(2)  .....................................  5.4
                     (b)  .....................................  10.3
          Section 318(a)  .....................................  1.7

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

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                                TABLE OF CONTENTS

                                    ARTICLE I

Section 1.1   Definitions..................................................... 1

Section 1.2   Compliance Certificates and Opinions............................ 7

Section 1.3   Form of Documents Delivered to Trustee.......................... 8

Section 1.4   Acts of Holders; Record Dates................................... 8

Section 1.5   Notices, Etc., to Trustee and Company........................... 9

Section 1.6   Notice to Holders; Waiver.......................................10

Section 1.7   Conflict with Trust Indenture Act...............................10

Section 1.8   Effect of Headings and Table of Contents........................10

Section 1.9   Successors and Assigns..........................................11

Section 1.10  Separability Clause.............................................11

Section 1.11  Benefits of Indenture...........................................11

Section 1.12  Governing Law...................................................11

Section 1.13  Legal Holidays..................................................11

                                   ARTICLE II

Section 2.1   Forms Generally.................................................11

Section 2.2   Form of Face of Security........................................12

Section 2.3   Form of Reverse of Security.....................................14

Section 2.4   Additional Provisions Required in Book-Entry Security...........17

Section 2.5   Form of Trustee's Certificate of Authentication.................18

                                   ARTICLE III

Section 3.1   Amount Unlimited; Issuable in Series............................18

Section 3.2   Denominations...................................................20

Section 3.3   Execution, Authentication, Delivery and Dating..................20

Section 3.4   Temporary Securities............................................22

Section 3.5   Registration, Registration of Transfer and Exchange.............22

Section 3.6   Mutilated, Destroyed, Lost and Stolen Securities................24

                                        i

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Section 3.7   Payment of Interest; Interest Rights Preserved..................24

Section 3.8   Persons Deemed Owners...........................................25

Section 3.9   Cancellation....................................................26

Section 3.10  Computation of Interest.........................................26

                                   ARTICLE IV

Section 4.1   Satisfaction and Discharge of Indenture.........................26

Section 4.2   Application of Trust Money......................................27

                                    ARTICLE V

Section 5.1   Events of Default...............................................28

Section 5.2   Acceleration of Maturity; Rescission and Annulment..............29

Section 5.3   Collection of Indebtedness and Suits for Enforcement by Trustee.30

Section 5.4   Trustee May File Proofs of Claim................................31

Section 5.5   Trustee May Enforce Claims Without Possession of Securities.....31

Section 5.6   Application of Money Collected..................................31

Section 5.7   Limitation on Suits.............................................32

Section 5.8   Unconditional Right of Holders to Receive Principal, Premium
              and Interest....................................................32

Section 5.9   Restoration of Rights and Remedies..............................32

Section 5.10  Rights and Remedies Cumulative..................................33

Section 5.11  Delay or Omission Not Waiver....................................33

Section 5.12  Control by Holders..............................................33

Section 5.13  Waiver of Past Defaults.........................................33

Section 5.14  Undertaking for Costs...........................................34

Section 5.15  Waiver of Stay or Extension Laws................................34

                                   ARTICLE VI

Section 6.1   Certain Duties and Responsibilities.............................34

Section 6.2   Notice of Defaults..............................................35

Section 6.3   Certain Rights of Trustee.......................................35

Section 6.4   Not Responsible for Recitals or Issuance of Securities..........36

Section 6.5   May Hold Securities.............................................36

                                       ii

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Section 6.6   Money Held in Trust.............................................36

Section 6.7   Compensation and Reimbursement..................................36

Section 6.8   Disqualification; Conflicting Interests.........................37

Section 6.9   Corporate Trustee Required; Eligibility.........................37

Section 6.10  Resignation and Removal; Appointment of Successor...............37

Section 6.11  Acceptance of Appointment by Successor..........................39

Section 6.12  Merger, Conversion, Consolidation or Succession to Business.....40

Section 6.13  Preferential Collection of Claims Against Company...............40

Section 6.14  Appointment of Authenticating Agent.............................40

                                   ARTICLE VII

Section 7.1   Company to Furnish Trustee Names and Addresses of Holders.......42

Section 7.2   Preservation of Information; Communications to Holders..........42

Section 7.3   Reports by Trustee..............................................43

Section 7.4   Reports by Company..............................................43

                                  ARTICLE VIII

Section 8.1   Company May Consolidate, Etc., Only on Certain Terms............43

Section 8.2   Successor Substituted...........................................44

                                   ARTICLE IX

Section 9.1   Supplemental Indentures Without Consent of Holders..............44

Section 9.2   Supplemental Indentures with Consent of Holders.................46

Section 9.3   Execution of Supplemental Indentures............................47

Section 9.4   Effect of Supplemental Indentures...............................47

Section 9.5   Conformity with Trust Indenture Act.............................47

Section 9.6   Reference in Securities to Supplemental Indentures..............47

                                    ARTICLE X

Section 10.1  Payment of Principal, Premium and Interest......................47

Section 10.2  Maintenance of Office or Agency.................................48

Section 10.3  Money for Securities Payments to Be Held in Trust...............48

Section 10.4  Statement by Officers as to Default.............................49

                                       iii

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Section 10.5  Existence.......................................................49

Section 10.6  Maintenance of Properties.......................................50

Section 10.7  Payment of Taxes and Other Claims...............................50

                                   ARTICLE XI

Section 11.1  Applicability of Article........................................50

Section 11.2  Election to Redeem; Notice to Trustee...........................50

Section 11.3  Selection by Trustee of Securities to Be Redeemed...............51

Section 11.4  Notice of Redemption............................................51

Section 11.5  Deposit of Redemption Price.....................................52

Section 11.6  Securities Payable on Redemption Date...........................52

Section 11.7  Securities Redeemed in Part.....................................52

                                   ARTICLE XII

Section 12.1  Applicability of Article........................................53

Section 12.2  Satisfaction of Sinking Fund Payments with Securities...........53

Section 12.3  Redemption of Securities for Sinking Fund.......................53

                                  ARTICLE XIII

Section 13.1  Applicability of Article; Company's Option to Effect
              Defeasance or Covenant Defeasance...............................54

Section 13.2  Defeasance and Discharge........................................54

Section 13.3  Covenant Defeasance.............................................54

Section 13.4  Conditions to Defeasance or Covenant Defeasance.................55

Section 13.5  Deposited Money and U.S. Government Obligations to be Held in
              Trust; Other Miscellaneous Provisions...........................57

Section 13.6  Reinstatement...................................................57

                                   ARTICLE XIV

Section 14.1  Securities Subordinate to Senior Indebtedness...................58

Section 14.2  Payment Over of Proceeds Upon Dissolution, Etc..................58

Section 14.3  Prior Payment to Senior Indebtedness Upon Acceleration of
              Securities of Such Series.......................................59

Section 14.4  No Payment When Senior Indebtedness in Default..................60

                                       iv

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Section 14.5  Payment Permitted in Certain Situations.........................60

Section 14.6  Subrogation to Rights of Holders of Senior Indebtedness.........61

Section 14.7  Provisions Solely to Define Relative Rights.....................61

Section 14.8  Trustee to Effectuate Subordination.............................62

Section 14.9  No Waiver of Subordination Provisions...........................62

Section 14.10 Notice to Trustee...............................................62

                                        v

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     JUNIOR SUBORDINATED INDENTURE, dated as of November __, 2002 (the
"Indenture"), between Argonaut Group Inc., a corporation duly organized and
existing under the laws of the State of Delaware (herein called the "Company"),
having its principal office at 10101 Reunion Place, Suite 500, San Antonio,
Texas 78216, and LaSalle Bank National Association, a _________________, as
Trustee (herein called the "Trustee").

                             RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this
Indenture to provide for the issuance from time to time of its unsecured
debentures, notes or other evidences of indebtedness (herein called the
"Securities"), to be issued in one or more series as in this Indenture provided.

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

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

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

                                    ARTICLE I

             DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

Section 1.1 Definitions.

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

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

               (2)  all other terms used herein which are defined in the Trust
          Indenture Act, either directly or by reference therein, have the
          meanings assigned to them therein;

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

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

     "Act," when used with respect to any Holder, has the meaning specified in
Section 1.4.

                                        1

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

     "Authenticating Agent" means any Person authorized by the Trustee pursuant
to Section 6.14 to act on behalf of the Trustee to authenticate Securities of
one or more series.

     "Board of Directors" means either the board of directors of the Company or
any duly authorized committee of that board.

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

     "Book-Entry Security" means a Security in the form prescribed in Section
2.4 evidencing all or part of a series of Securities, issued to the Depository
for such series or its nominee, and registered in the name of such Depository or
nominee.

     "Business Day," when used with respect to any Place of Payment, means each
Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which
banking institutions in that Place of Payment are authorized or obligated by law
or executive order to close.

     "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 of this instrument such Commission is not existing and performing the
duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.

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

     "Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman of the Board, its Chief
Executive Officer, its President, an Executive Vice President, a Senior Vice
President or a Vice President, and by its Chief Financial Officer, its
Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and
delivered to the Trustee.

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

     "Corporation" means a corporation, association, company, joint-stock
company or business trust.

     "covenant defeasance" has the meaning specified in Section 13.3.

     "Defaulted Interest" has the meaning specified in Section 3.7.

                                        2

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     "defeasance" has the meaning specified in Section 13.2.

     "Depository" means, with respect to the Securities of any series issuable
or issued in whole or in part in the form of one or more Book-Entry Securities,
the Person designated as Depository for such series by the Company pursuant to
Section 3.1, which Person shall be a clearing agency registered under the
Exchange Act.

     "Event of Default" has the meaning specified in Section 5.1.

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

     "Holder" means a Person in whose name a Security is registered in the
Security Register.

     "Indenture" means this instrument as originally executed or as it may from
time to time be supplemented or amended by one or more indentures supplemental
hereto entered into pursuant to the applicable provisions hereof, including, for
all purposes of this instrument, and any such supplemental indenture, the
provisions of the Trust Indenture Act that are deemed to be a part of and govern
this instrument and any such supplemental indenture, respectively. The term
"Indenture" shall also include the terms of particular series of Securities
established as contemplated by Section 3.1.

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

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

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

     "Mortgage" means any mortgage, pledge, lien, security interest, conditional
sale or other title retention agreement or other similar encumbrance.

     "Officers' Certificate" means a certificate signed by the Chairman of the
Board, the Chief Executive Officer, the President, an Executive Vice President,
a Senior Vice President or a Vice President, and by the Chief Financial Officer,
the Treasurer, an Assistant Treasurer, the Secretary or an Assistant Secretary,
of the Company, and delivered to the Trustee. One of the officers signing an
Officers' Certificate given pursuant to Section 10.4 shall be the principal
executive, financial or accounting officer of the Company.

     "Opinion of Counsel" means a written opinion of counsel, who may be counsel
for the Company, and who shall be reasonably acceptable to the Trustee.

     "Original Issue Discount Security" means any Security which provides for an
amount less than the principal amount thereof to be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 5.2.

                                        3

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

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

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

     (iii)  Securities which have been paid pursuant to Section 3.6 or in
   exchange for or in lieu of which other Securities have been authenticated and
   delivered pursuant to this Indenture, other than any such Securities in
   respect of which there shall have been presented to the Trustee proof
   satisfactory to it that such Securities are held by a bona fide purchaser in
   whose hands such Securities are valid obligations of the Company;

provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, (i) the principal
amount of an Original Issue Discount Security that shall be deemed to be
Outstanding shall be the amount of the principal thereof that would be due and
payable as of the date of such determination upon acceleration of the Maturity
thereof pursuant to Section 5.2, (ii) the principal amount of a Security
denominated in one or more foreign currencies or currency units shall be the
U.S. dollar equivalent, determined in the manner provided as contemplated by
Section 3.1 on the date of original issuance of such Security, of the principal
amount (or, in the case of an Original Issue Discount Security, the U.S. dollar
equivalent on the date of original issuance of such Security of the amount
determined as provided in (i) above) of such Security, and (iii) Securities
owned by the Company or any other obligor upon the Securities or any Affiliate
of the Company or of such other obligor shall be disregarded and deemed not to
be Outstanding, except that, in determining whether the Trustee shall be
protected in relying upon any such request, demand, authorization, direction,
notice, consent or waiver, only Securities which the Trustee knows to be 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 Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.

     "Paying Agent" means any Person authorized by the Company to pay the
principal of or any premium or interest on any Securities on behalf of the
Company.

     "Person" means any individual, corporation, partnership, joint venture,
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 and any premium and interest on
the Securities of that series are payable as specified as contemplated by
Section 3.1.

                                        4

<PAGE>

     "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 3.6 in exchange for or in lieu of a
mutilated, destroyed, lost or stolen Security shall be deemed to evidence the
same debt as the mutilated, destroyed, lost or stolen Security.

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

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

     "Regular Record Date" for the interest payable on any Interest Payment Date
on the Securities of any series means the date specified for that purpose as
contemplated by Section 3.1.

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

     "Security Register" and "Security Registrar" have the respective meanings
specified in Section 3.5.

     "Senior Indebtedness" means the principal of, premium, if any and interest
on any of the following, whether incurred on or prior to the date hereof or
hereafter incurred:

     (i)    all indebtedness of the Company for money borrowed;

     (ii)   all obligations of the Company evidenced by notes, debentures, bonds
or other similar instruments, including obligations incurred in connection with
the acquisition of property, assets or businesses;

     (iii)  all capital lease obligations of the Company;

     (iv)   all reimbursement obligations of the Company with respect to letters
of credit, bankers' acceptances or similar facilities issued for the account of
the Company;

     (v)    all obligations of the Company issued or assumed as the deferred
purchase price of property or services, including all obligations under master
lease transactions pursuant to which the Company or any of its Subsidiaries have
agreed to be treated as owner of the subject property for federal income tax
purposes (but excluding trade accounts payable or accrued liabilities arising in
the ordinary course of business);

     (vi)   all payment obligations of the Company under interest rate swap or
similar agreements or foreign currency hedge, exchange or similar agreements at
the time of determination, including any such obligations incurred by the
Company solely to act as a hedge against increases in interest rates that may
occur under the terms of other outstanding variable or floating rate
Indebtedness of the Company;

     (vii)  all obligations of the type referred to in clauses (i) through (vi)
above of another Person, the payment of which the Company has assumed or
guaranteed or for which the Company is responsible or liable as obligor,
guarantor or otherwise; and

                                        5

<PAGE>

     (viii) all amendments, modifications, renewals, extensions, refinancings,
replacements and refundings by the Company of any such Senior Indebtedness
referred to in clauses (i) through (vii) above (and of any such amended,
modified, renewed, extended, refinanced, refunded or replaced Senior
Indebtedness);

provided, however, that the following shall not constitute Senior Indebtedness:
(A) any indebtedness owed to a Person when such Person is a Subsidiary of the
Company or (B) any indebtedness which by the terms of the instrument creating or
evidencing the same expressly provides that it is not superior in right of
payment to the Securities. For purposes of this definition, "Senior
Indebtedness" includes any obligation to pay principal, premium (if any),
interest, penalties, reimbursement or indemnity amounts, fees and expenses
(including interest accruing on or after the filing of any petition in
bankruptcy or for reorganization relating to the Company whether or not a claim
for post-petition interest is allowed in such proceeding). Any Senior
Indebtedness shall continue to be Senior Indebtedness and entitled to the
benefits of the subordination provisions of Article XIV irrespective of any
amendment, modification or waiver of any term of such Senior Indebtedness.

     "Special Record Date" for the payment of any Defaulted Interest means a
date fixed by the Trustee pursuant to Section 3.7.

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

     "Subsidiary" means any corporation of which the Company directly or
indirectly owns or controls stock which under ordinary circumstances (not
dependent upon the happening of a contingency) has voting power to elect a
majority of the board of directors of such corporation; provided, however, that
the term shall not include any such corporation if and so long as (i) such
corporation does not own a Principal Domestic Property and (ii) the Chairman of
the Board, the Chief Executive Officer, the President, an Executive Vice
President, a Senior Vice President or a Vice President, and the Chief Financial
Officer, the Treasurer, or an Assistant Treasurer, of the Company determine in
good faith at least annually that the then aggregate investments by the Company
and its Domestic Subsidiaries (including all guarantees and other extensions of
credit) in such corporation are not of material importance to the total business
conducted, or assets owned, by the Company and its Domestic Subsidiaries.

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

     "Trust Indenture Act" means the Trust Indenture Act of 1939 as in force at
the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, "Trust
Indenture Act" means, to the extent required by any such amendment, the Trust
Indenture Act of 1939 as so amended.

                                        6

<PAGE>

     "Vice President," when used with respect to the Company or the Trustee,
means any vice president, whether or not designated by a number or a word or
words added before or after the title "vice president."

Section 1.2 Compliance Certificates and Opinions.

     Upon any application or request by the Company to the Trustee to take any
action under any provision of this Indenture, the Company shall furnish to the
Trustee such certificates and opinions as may be required under the Trust
Indenture Act. Each such certificate or opinion shall be given in the form of an
Officers' Certificate, if to be given by an officer of the Company, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.

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

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

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

          (3) a statement that, in the opinion of each such individual, he 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, in the opinion of each such individual,
        such condition or covenant has been complied with.

Section 1.3 Form of Documents Delivered to Trustee.

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

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

                                        7

<PAGE>

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

Section 1.4 Acts of Holders; Record Dates.

            (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and
the Company, if made in the manner provided in this Section 1.4.

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

            (c) The Company may, in the circumstances permitted by the Trust
Indenture Act, fix any day as the record date for the purpose of determining the
Holders of Securities of any series entitled to give or take any request,
demand, authorization, direction, notice, consent, waiver or other action, or to
vote on any action, authorized or permitted to be given or taken by Holders of
Securities of such series. If not set by the Company prior to the first
solicitation of a Holder of Securities of such series made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or vote shall be the 30th day (or, if
later, the date of the most recent list of Holders required to be provided
pursuant to Section 7.1) prior to such first solicitation or vote, as the case
may be. With regard to any record date for action to be taken by the Holders of
one or more series of Securities, only the Holders of Securities of such series
on such date (or their duly designated proxies) shall be entitled to give or
take, or vote on, the relevant action.

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

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

Section 1.5 Notices, Etc., to Trustee and Company.

                                        8

<PAGE>

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

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

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

Section 1.6 Notice to Holders; Waiver.

     Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to each Holder affected
by such event, at his address as it appears in the Security Register, not later
than the latest date (if any), and not earlier than the earliest date (if any),
prescribed for the giving of such notice. 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. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

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

Section 1.7 Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with a provision of
the Trust Indenture Act that is required under such Act to be a part of and
govern this Indenture, the latter provision shall control. If any provision of
this Indenture modifies or excludes any provision of the Trust Indenture Act
that may be so modified or excluded, the latter provision shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

Section 1.8 Effect of Headings and Table of Contents.

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

Section 1.9 Successors and Assigns.

                                        9

<PAGE>

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

Section 1.10 Separability Clause.

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

Section 1.11 Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall
give to any Person, other than the parties hereto and their successors hereunder
and the Holders, any benefit or any legal or equitable right, remedy or claim
under this Indenture.

Section 1.12 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 1.13 Legal Holidays.

     In any case where any Interest Payment Date, Redemption Date or Stated
Maturity of any Security shall not be a Business Day at any Place of Payment,
then (notwithstanding any other provision of this Indenture or of the Securities
(other than a provision of the Securities of any series which specifically
states that such provision shall apply in lieu of this Section)) payment of
interest or principal (and premium, if any) need not be made at such Place of
Payment on such date, but may be made on the next succeeding Business Day at
such Place of Payment with the same force and effect as if made on the Interest
Payment Date or Redemption Date, or at the Stated Maturity; provided, however,
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date or Stated Maturity, as the case may be.

                                   ARTICLE II

                                 SECURITY FORMS

Section 2.1 Forms Generally.

     The Securities of each series shall be in substantially the form set forth
in this Article II, or in such other form as shall be established by or pursuant
to a Board Resolution or in one or more indentures supplemental hereto, in each
case with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture, and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with the rules of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Securities, as evidenced by their execution of the
Securities. If the form of Securities of any series is established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action shall be certified by the Secretary or an Assistant Secretary of the
Company and delivered to the Trustee at or prior to the delivery of the Company
Order contemplated by Section 3.3 for the authentication and delivery of such
Securities.

                                       10

<PAGE>

     The definitive Securities may 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 of such
Securities.

Section 2.2 Form of Face of Security.

     [Insert any legend required by the Internal Revenue Code and the
regulations thereunder.]

                               Argonaut Group Inc.

No. _____________________                               $ ______________________

     Argonaut Group Inc., a corporation duly organized and existing under the
laws of Delaware (herein called the "Company," which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to _______________________________________, or registered
assigns, the principal sum of __________________________________________ Dollars
on _____________________________ _______________________________ [if the
Security is to bear interest, prior to Maturity, insert -, and to pay interest
thereon from _______________ or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, semi-annually on
______________________ and ____________________ in each year, commencing
________________, at the rate of _______% per annum, until the principal hereof
is paid or made available for payment [if applicable, insert -, and (to the
extent that the payment of such interest shall be legally enforceable) at the
rate of ........% per annum on any overdue principal and premium and on any
overdue installment of interest]. The interest so payable, and punctually paid
or duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the _______ or _________ (whether
or not a Business Day), as the case may be, next preceding such Interest Payment
Date. Any such interest not so punctually paid or duly provided for will
forthwith cease to be payable to the Holder on such Regular Record Date and may
either be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice of which shall be given to Holders of Securities of this series
not more than 15 days and not less than 10 days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with
the requirements of any securities exchange on which the Securities of this
series may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in said Indenture].

     [If the Security is not to bear interest prior to Maturity, insert - The
principal of this Security shall not bear interest except in the case of a
default in payment of principal upon acceleration, upon redemption or at Stated
Maturity and in such case the overdue principal of this Security shall bear
interest at the rate of _______% per annum (to the extent that the payment of
such interest shall be legally enforceable), which shall accrue from the date of
such default in payment to the date payment of such principal has been made or
duly provided for. Interest on any overdue principal shall be payable on demand.
Any such interest on any overdue principal that is not so paid on demand shall
bear interest at the rate of ________% per annum (to the extent that the payment
of such interest shall be legally enforceable), which shall accrue from the date
of such demand for payment to the date payment of such interest has been made or
duly provided for, and such interest shall also be payable on demand.]

                                       11

<PAGE>

     Payment of the principal of (and premium, if any) and [if applicable insert
- any such] interest on this Security will be made at the office or agency of
the Company maintained for that purpose in [____________________,] in such coin
or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts [if applicable insert -;
provided, however, that at the option of the Company payment of interest may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register].

     The indebtedness evidenced by this Security is, to the extent provided in
the Indenture, subordinate and junior in right of payment to the prior payment
in full of all Senior Indebtedness, and this Security is issued subject to the
provisions of the Indenture with respect thereto. Each Holder of this Security,
by accepting the same, (a) agrees to and shall be bound by such provisions, (b)
authorizes and directs the Trustee on his, her or its behalf to take such
actions as may be necessary or appropriate to effectuate the subordination so
provided and (c) appoints the Trustee his, her or its attorney-in-fact for any
and all such purposes. Each Holder hereof, by his, her or its acceptance hereof,
waives all notice of the acceptance of the subordination provisions contained
herein and in the Indenture by each holder of Senior Indebtedness, whether now
outstanding or hereafter incurred, and waives reliance by each such holder upon
said provisions.

     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 Company has caused this instrument to be duly
executed.

Dated:

                                         ARGONAUT GROUP INC.

                                         By
                                           ----------------------------------
Attest:

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

Section 2.3 Form of Reverse of Security.

     This Security is one of a duly authorized issue of securities of the
Company (herein called the "Securities"), issued and to be issued in one or more
series under an Indenture, dated as of [____________________________] (herein
called the "Indenture"), between the Company and LaSalle Bank National
Association, 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 Company,
the Trustee, the holders of Senior

                                       12

<PAGE>

Indebtedness, and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered. This Security is one
of the series designated on the face hereof [, limited in aggregate principal
amount to $____________________].

     [If applicable, insert - The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, [if applicable, insert -
(1) on _______________in any year commencing with the year ____________ and
ending with the year ___________ through operation of the sinking fund for this
series at a Redemption Price equal to 100% of the principal amount, and (2)] at
any time [on or after ___________________, 20_____], as a whole or in part, at
the election of the Company, at the following Redemption Prices (expressed as
percentages of the principal amount): If redeemed [on or before
___________________, _____%, and if redeemed] during the 12-month period
beginning ______________________ of the years indicated,

             Redemption                   Redemption
  Year          Price          Year          Price
--------   ---------------   --------   ---------------

and thereafter at a Redemption Price equal to ........% of the principal amount,
together in the case of any such redemption [if applicable insert - (whether
through operation of the sinking fund or otherwise)] with accrued interest to
the Redemption Date, but interest installments whose Stated Maturity is on or
prior to such Redemption Date will be payable to the Holders of such Securities,
or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the
Indenture.]

     [If applicable, insert - The Securities of this series are subject to
redemption upon not less than 30 days' notice by mail, (1) on _______________ in
any year commencing with the year __________ and ending with the year __________
through operation of the sinking fund for this series at the Redemption Prices
for redemption through operation of the sinking fund (expressed as percentages
of the principal amount) set forth in the table below, and (2) at any time [on
or after __________________], as a whole or in part, at the election of the
Company, at the Redemption Prices for redemption otherwise than through
operation of the sinking fund (expressed as percentages of the principal amount)
set forth in the table below: If redeemed during the 12-month period beginning
_____________________________ of the years indicated,

                   Redemption Price
                    For Redemption             Redemption Price For
                  Through Operation              Redemption Other
                       of the                 Than Through Operation
Year                 Sinking Fund              of the Sinking Fund
----              ------------------          ----------------------

                                       13

<PAGE>

and thereafter at a Redemption Price equal to __________% of the principal
amount, together in the case of any such redemption (whether through operation
of the sinking fund or otherwise) with accrued interest to the Redemption Date,
but interest installments whose Stated Maturity is on or prior to such
Redemption Date will be payable to the Holders of such Securities, or one or
more Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.]

     [Notwithstanding the foregoing, the Company may not, prior
to______________________, redeem any Securities of this series as contemplated
by [Clause (2) of] the preceding paragraph as a part of, or in anticipation of,
any refunding operation by the application, directly or indirectly, of moneys
borrowed having an interest cost to the Company (calculated in accordance with
generally accepted financial practice) of less than __________% per annum.]

     [The sinking fund for this series provides for the redemption on _________
in each year beginning with the year ________________ and ending with the year
_______________ of [not less than $_____________________ ("mandatory sinking
fund") and not more than] $________________ aggregate principal amount of
Securities of this series. Securities of this series acquired or redeemed by the
Company other than through [mandatory] sinking fund payments may be credited
against subsequent [mandatory] sinking fund payments otherwise required to be
made [in the inverse order in which they become due].]

     [If the Security is subject to redemption, insert - In the event of
redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the
name of the Holder hereof upon the cancellation hereof.]

     [If the Security is not an Original Issue Discount Security, insert - If an
Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due
and payable in the manner and with the effect provided in the Indenture.]

     [If the Security is an Original Issue Discount Security, insert - If an
Event of Default with respect to Securities of this series shall occur and be
continuing, an amount of principal of the Securities of this series may be
declared due and payable in the manner and with the effect provided in the
Indenture. Such amount shall be equal to - insert formula for determining the
amount. Upon payment (i) of the amount of principal so declared due and payable
and (ii) of interest on any overdue principal and overdue interest (in each case
to the extent that the payment of such interest shall be legally enforceable),
all of the Company's obligations in respect of the payment of the principal of
and interest, if any, on the Securities of this series shall terminate.]

     [The Indenture contains provisions for defeasance at any time of [the
entire indebtedness of this Security or] certain restrictive covenants and
Events of Default with respect to this Security [, in each case] upon compliance
with certain conditions set forth therein.]

     The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in principal amount of

                                       14

<PAGE>

the Securities at the time Outstanding of each series to be affected. The
Indenture also contains provisions permitting the Holders of specified
percentages in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company 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.

     No reference herein to the Indenture and no provision of this Security or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and any premium and interest
on this Security at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set
forth, the transfer of this Security is registerable in the Security Register,
upon surrender of this Security for registration of transfer at the office or
agency of the Company in any place where the principal of and any premium and
interest on this Security are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series
and of like tenor, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.

     The Securities of this series are issuable only in registered form without
coupons in denominations of $ _________________ and any integral multiple
thereof. As provided in the Indenture and subject to certain limitations therein
set forth, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor 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 Company 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
Company, the Trustee and any agent of the Company 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 Company, 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.

Section 2.4 Additional Provisions Required in Book-Entry Security.

     Any Book-Entry Security issued hereunder shall, in addition to the
provisions contained in Sections 2.2 and 2.3, bear a legend in substantially the
following form:

            "This Security is a Book-Entry Security within the meaning of the
      Indenture hereinafter referred to and is registered in the name of a

                                       15

<PAGE>

      Depository or a nominee of a Depository. This Security is exchangeable for
      Securities registered in the name of a person other than the Depository or
      its nominee only in the limited circumstances described in the Indenture
      and may not be transferred except as a whole by the Depository to a
      nominee of the Depository or by a nominee of the Depository to the
      Depository or another nominee of the Depository."

Section 2.5 Form of Trustee's Certificate of Authentication.

     The Trustee's certificates of authentication 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.

                                              LASALLE BANK NATIONAL ASSOCIATION,
                                              As Trustee

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

                                   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 a Board Resolution and, subject to Section 3.3,
set forth, or determined in the manner provided, in an Officers' Certificate, or
established in one or more indentures supplemental hereto, prior to the issuance
of Securities of any series,

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

          (2) any limit upon the aggregate principal amount of the Securities of
        the series which 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 3.4, 3.5, 3.6, 9.6 or 11.7 and except for any
        Securities which, pursuant to Section 3.3, are deemed never to have been
        authenticated and delivered hereunder);

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

                                       16

<PAGE>

          (4) the date or dates on which the principal of the Securities of the
        series is payable;

          (5) the rate or rates at which the Securities of the series shall bear
        interest, if any, or the method of calculating such rate or rates of
        interest, the date or dates from which such interest shall accrue, the
        Interest Payment Dates on which any such interest shall be payable and
        the Regular Record Date for any interest payable on any Interest Payment
        Date;

          (6) the place or places where the principal of and any premium and
        interest on Securities of the series shall be payable;

          (7) the period or periods within which, the price or prices at 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 Company;

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

          (9) if other than denominations of $1,000 and any integral multiple of
        $1,000 in excess thereof, the denominations in which Securities of the
        series shall be issuable;

          (10) the currency, currencies or currency units in which payment of
        the principal of and any premium and interest on any Securities of the
        series shall be payable if other than the currency of the United States
        of America and the manner of determining the equivalent thereof in the
        currency of the United States of America for purposes of the definition
        of "Outstanding" in Section 1.1;

          (11) if the amount of payments of principal of or any premium or
        interest on any Securities of the series may be determined with
        reference to an index or formula, the manner in which such amounts shall
        be determined;

          (12) if the principal of or any premium or interest on any Securities
        of the series is to be payable, at the election of the Company or a
        Holder thereof, in one or more currencies or currency units other than
        that or those in which the Securities are stated to be payable, the
        currency, currencies or currency units in which payment of the principal
        of and any premium and interest on Securities of such series as to which
        such election is made shall be payable, and the periods within which and
        the terms and conditions upon which such election is to be made;

          (13) the application, if any, of Section 13.2 or 13.3 to the
        Securities of any series;

          (14) whether the Securities of the series shall be issued in whole or
        in part in the form of one or more Book-Entry Securities and, in such
        case, the

                                       17

<PAGE>

        Depository with respect to such Book-Entry Security or Securities and
        the circumstances under which any Book-Entry Security may be registered
        for transfer or exchange, or authenticated and delivered, in the name of
        a Person other than such Depository or its nominee, if other than as set
        forth in Section 3.5;

          (15) if other than the principal amount thereof, the portion of the
        principal amount of Securities of the series which shall be payable upon
        declaration of acceleration of the Maturity thereof pursuant to Section
        5.2;

          (16) the right, if any, of the Holders of the Securities to convert
        the Securities into shares of the Company's common stock, par value
        $0.10 per share, or shares of the Company's preferred stock, par value
        $0.10 per share; and

          (17) any other terms of the series (which terms shall not be
        inconsistent with the provisions of this Indenture, except as permitted
        by Section 9.1(5)).

     The Securities of each series shall be subordinated in the right of payment
to Senior Indebtedness as provided in Article XIV with any modifications,
changes, deletions or additions thereto established pursuant to this Section
3.1.

     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
Board Resolution referred to above and (subject to Section 3.3) set forth, or
determined in the manner provided, in the Officers' Certificate referred to
above or in any such indenture supplemental hereto.

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

Section 3.2 Denominations.

     The Securities of each series shall be issuable in registered form without
coupons in such denominations as shall be specified as contemplated by Section
3.1. In the absence of any such provisions with respect to the Securities of any
series, the Securities of such series shall be issuable in denominations of
$1,000 and any integral multiple thereof.

Section 3.3 Execution, Authentication, Delivery and Dating.

     The Securities shall be executed on behalf of the Company by its Chairman
of the Board, its President, its Chief Executive Officer, an Executive Vice
President, a Senior Vice President or a Vice President of the Company, attested
by its Secretary or one of its Assistant Secretaries. The signature of any of
these officers on the Securities may be manual or facsimile.

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

                                       18

<PAGE>

     At any time and from time to time after the execution and delivery of this
Indenture, the Company may deliver Securities of any Series executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities. If the
form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 2.1 and 3.1,
in authenticating such Securities, and accepting the additional responsibilities
under this Indenture in relation to such Securities, the Trustee shall be
entitled to receive, and (subject to Section 6.1) shall be fully protected in
relying upon, an Opinion of Counsel stating,

          (a) if the form of such Securities has been established by or pursuant
to Board Resolution as permitted by Section 2.1, that such form has been
established in conformity with the provisions of this Indenture;

          (b) if the terms of such Securities have been established by or
pursuant to Board Resolution as permitted by Section 3.1, that such terms have
been established in conformity with the provisions of this Indenture; and

          (c) that such Securities, when authenticated and delivered by the
Trustee and issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and legally binding
obligations of the Company enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
and to general equity principles.

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

     Notwithstanding the provisions of Section 3.1 and of the preceding
paragraph, 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 otherwise
required pursuant to Section 3.1 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the time
of authentication of each Security of such series if such documents are
delivered at or prior to the authentication upon original issuance of the first
Security of such series to be issued.

     Each Security shall be dated the date of its authentication.

     No Security shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Security a
certificate of authentication substantially in the form provided for herein
executed by the Trustee by manual signature, and such certificate upon any
Security shall be conclusive evidence, and the only evidence, that such Security
has been duly authenticated and delivered hereunder. Notwithstanding the
foregoing, if any Security shall have been authenticated and delivered hereunder
but never issued and sold by the Company, and the Company shall deliver such
Security to the Trustee for cancellation as provided in Section 3.9, for all
purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

                                       19

<PAGE>

Section 3.4 Temporary Securities.

     Pending the preparation of definitive Securities of any series, the Company
may execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the officers executing such Securities may determine, as evidenced by their
execution of such Securities.

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

Section 3.5 Registration, Registration of Transfer and Exchange.

     The Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in any other
office or agency of the Company in a Place of Payment being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers of Securities. The Trustee is hereby
appointed "Security Registrar" for the purpose of registering Securities and
transfers of Securities as herein provided.

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

     At the option of the Holder, Securities of any series may be exchanged for
other Securities of the same series, of any authorized denominations and of a
like aggregate principal amount and tenor, upon surrender of the Securities to
be exchanged at such office or agency. Whenever any Securities are so
surrendered for exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Securities which the Holder making the exchange is
entitled to receive.

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

                                       20

<PAGE>

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

     No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge that may be imposed in connection
with any registration of transfer or exchange of Securities, other than
exchanges pursuant to Section 3.4, 9.6 or 11.7 not involving any transfer.

     The Company shall not be required (i) to issue, register the transfer of or
exchange 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 that series selected for redemption under Section 11.3 and ending
at the close of business on the day of such mailing, or (ii) to register the
transfer of or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.

     Notwithstanding the foregoing, any Book-Entry Security shall be
exchangeable pursuant to this Section 3.5 for Securities registered in the name
of Persons other than the Depository for such Security or its nominee only if
(i) such Depository notifies the Company that it is unwilling or unable to
continue as Depository for such Book-Entry Security or if at any time such
Depository ceases to be a clearing agency registered under the Exchange Act,
(ii) the Company executes and delivers to the Trustee a Company Order that such
Book-Entry Security shall be so exchangeable or (iii) there shall have occurred
and be continuing an Event of Default with respect to the Securities. Any
Book-Entry Security that is exchangeable pursuant to the preceding sentence
shall be exchangeable for Securities registered in such names as such Depository
shall direct.

     Notwithstanding any other provision in this Indenture, a Book-Entry
Security may not be transferred except as a whole by the Depository with respect
to such Book-Entry Security to a nominee of such Depository or by a nominee of
such Depository to such a Depository or another nominee of such Depository.

Section 3.6 Mutilated, Destroyed, Lost and Stolen Securities.

     If any mutilated Security is surrendered to the Trustee, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a
new Security of the same series and of like tenor and principal amount and
bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to
their satisfaction of the destruction, loss or theft of any Security and (ii)
such security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a number
not contemporaneously outstanding.

                                       21

<PAGE>

     In case any such mutilated, destroyed, lost or stolen Security has become
or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.

     Upon the issuance of any new Security under this Section 3.6, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

     Every new Security of any series issued pursuant to this Section 3.6 in
lieu of any destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Security shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Securities of that series duly issued hereunder.

     The provisions of this Section 3.6 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.

Section 3.7 Payment of Interest; Interest Rights Preserved.

     Except as otherwise provided as contemplated by Section 3.1 with respect to
any series of Securities, interest on any Security which is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest.

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

          (1) The Company may elect to make payment of any Defaulted Interest to
        the Persons in whose names the Securities of such series (or their
        respective Predecessor Securities) are registered at the close of
        business on a Special Record Date for the payment of such Defaulted
        Interest, which shall be fixed in the following manner. The Company
        shall notify the Trustee in writing of the amount of Defaulted Interest
        proposed to be paid on each Security of such series and the date of the
        proposed payment, and at the same time the Company shall deposit with
        the Trustee an amount of money equal to the aggregate amount proposed to
        be paid in respect of such Defaulted Interest or shall make arrangements
        satisfactory to the Trustee for such deposit prior to the date of the
        proposed payment, such money when deposited to be held in trust for the
        benefit of the Persons entitled to such Defaulted Interest as in this
        Clause provided. Thereupon the Trustee shall fix a Special Record Date
        for the payment of such Defaulted Interest which shall be not more than
        15 days and not less than 10 days prior to the date of the proposed
        payment and not less than 10 days after the receipt by the Trustee of
        the notice of the proposed payment. The Trustee shall promptly notify
        the Company of such Special Record Date and, in the name and at the
        expense of the Company, shall cause notice of the proposed payment of
        such Defaulted

                                       22

<PAGE>

        Interest and the Special Record Date therefor to be mailed, first-class
        postage prepaid, to each Holder of Securities of such series at his
        address as it appears in the Security Register, not less than 10 days
        prior to such Special Record Date. Notice of the proposed payment of
        such Defaulted Interest and the Special Record Date therefor having been
        so mailed, such Defaulted Interest shall be paid to the Persons in whose
        names the Securities of such series (or their respective Predecessor
        Securities) are registered at the close of business on such Special
        Record Date and shall no longer be payable pursuant to the following
        Clause (2).

          (2) The Company may make payment of any Defaulted Interest on the
        Securities of any series 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 Company to the Trustee of
        the proposed payment pursuant to this Clause, such manner of payment
        shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section 3.7, 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 3.8 Persons Deemed Owners.

     Prior to due presentment of a Security for registration of transfer, the
Company, the Trustee and any agent of the Company or the Trustee may treat the
Person in whose name such Security is registered as the owner of such Security
for the purpose of receiving payment of principal of and any premium and
(subject to Section 3.7) any interest on such Security and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
Company, the Trustee nor any agent of the Company or the Trustee shall be
affected by notice to the contrary.

Section 3.9 Cancellation.

     All Securities surrendered for payment, redemption, registration of
transfer or exchange or for credit against any sinking fund payment shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee
and shall be promptly cancelled by it. The Company may at any time deliver to
the Trustee for cancellation any Securities previously authenticated and
delivered hereunder which the Company may have acquired in any manner
whatsoever, and may deliver to the Trustee (or to any other Person for delivery
to the Trustee) for cancellation any Securities previously authenticated
hereunder which the Company has not issued and sold, and all Securities so
delivered shall be promptly cancelled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section 3.9, except as expressly permitted by this Indenture. All
cancelled Securities held by the Trustee shall be disposed of as directed by a
Company Order.

Section 3.10 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.

                                       23

<PAGE>

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

Section 4.1 Satisfaction and Discharge of Indenture.

     This Indenture shall upon Company Request cease to be of further effect
(except as to any surviving rights of registration of transfer or exchange of
Securities herein expressly provided for), and the Trustee, at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when

          (1) either

          (A) all Securities theretofore authenticated and delivered (other than
        (i) Securities which have been destroyed, lost or stolen and which have
        been replaced or paid as provided in Section 3.6 and (ii) Securities for
        whose payment money has theretofore been deposited in trust or
        segregated and held in trust by the Company and thereafter repaid to the
        Company or discharged from such trust, as provided in Section 10.3) have
        been delivered to the Trustee for cancellation; or

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

              (i)    have become due and payable, or

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

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

        and the Company, in the case of (i), (ii) or (iii) above, has deposited
        or caused to be deposited with the Trustee as trust funds in trust for
        the purpose an amount sufficient to pay and discharge the entire
        indebtedness on such Securities not theretofore delivered to the Trustee
        for cancellation, for principal and any premium and interest to the date
        of such deposit (in the case of Securities which have become due and
        payable) or to the Stated Maturity or Redemption Date, as the case may
        be;

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

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

     Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 6.7, the obligations of
the Trustee to any Authenticating Agent under Section 6.14 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of
this Section 4.1, the obligations of the Trustee under Section 4.2 and the last
paragraph of Section 10.3 shall survive.

                                       24

<PAGE>

Section 4.2 Application of Trust Money.

     Subject to provisions of the last paragraph of Section 10.3, all money
deposited with the Trustee pursuant to Section 4.1 shall be held in trust and
applied by it, in accordance with the provisions of the Securities and this
Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal and any premium and
interest for whose payment such money has been deposited with the Trustee.

                                    ARTICLE V

                                    REMEDIES

Section 5.1 Events of Default.

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

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

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

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

          (4) default in the performance, or breach, of any covenant or warranty
        of the Company in this Indenture (other than a covenant or warranty a
        default in whose performance or whose breach is elsewhere in this
        Section 5.1 specifically dealt with or which has expressly been included
        in this Indenture solely for the benefit of series of Securities other
        than that series), and continuance of such default or breach for a
        period of 90 days after there has been given, by registered or certified
        mail, to the Company by the Trustee or to the Company and the Trustee by
        the Holders of at least 25% in principal amount of the Outstanding
        Securities of that series a written notice specifying such default or
        breach and requiring it to be remedied and stating that such notice is a
        "Notice of Default" hereunder; or

          (5) the entry by a court having jurisdiction in the premises of (A) a
        decree or order for relief in respect of the Company in an involuntary
        case or proceeding under any applicable Federal or State bankruptcy,
        insolvency, reorganization or other similar law or (B) a decree or order
        adjudging the Company a bankrupt or insolvent, or approving as properly
        filed a petition seeking reorganization, arrangement, adjustment or
        composition of or in respect of the Company under any applicable Federal
        or State law, or appointing a custodian, receiver, liquidator, assignee,
        trustee, sequestrator or other similar official of the Company

                                       25

<PAGE>

        or of any substantial part of its property, or ordering the winding up
        or liquidation of its affairs, and the continuance of any such decree or
        order for relief or any such other decree or order unstayed and in
        effect for a period of 60 consecutive days; or

          (6) the commencement by the Company of a voluntary case or proceeding
        under any applicable Federal or State bankruptcy, insolvency,
        reorganization or other similar law or of any other case or proceeding
        to be adjudicated a bankrupt or insolvent, or the consent by it to the
        entry of a decree or order for relief in respect of the Company in an
        involuntary case or proceeding under any applicable Federal or State
        bankruptcy, insolvency, reorganization or other similar law or to the
        commencement of any bankruptcy or insolvency case or proceeding against
        it, or the filing by it of a petition or answer or consent seeking
        reorganization or relief under any applicable Federal or State law, or
        the consent by it to the filing of such petition or to the appointment
        of or taking possession by a custodian, receiver, liquidator, assignee,
        trustee, sequestrator or other similar official of the Company or of any
        substantial part of its property, or the making by it of an assignment
        for the benefit of creditors, or the admission by it in writing of its
        inability to pay its debts generally as they become due, or the taking
        of corporate action by the Company in furtherance of any such action; or

          (7) any event which constitutes an "Event of Default" under the terms
        governing Securities of that series established as provided in Section
        3.1.

Section 5.2 Acceleration of Maturity; Rescission and Annulment.

     If an Event of Default with respect to Securities of any series at the time
Outstanding occurs and is continuing, then in every such case the Trustee or the
Holders of not less than 25% in principal amount of the Outstanding Securities
of that series may declare the principal amount (or, if any of the Securities of
that series are Original Issue Discount Securities, such portion of the
principal amount of such Securities as may be specified in the terms thereof) of
all of the Securities of that series to be due and payable immediately, by a
notice in writing to the Company (and to the Trustee if given by Holders), and
upon any such declaration such principal amount (or specified amount) shall
become immediately due and payable; provided, however, that the payment of
principal and interest and all other amounts due with respect to such Securities
shall remain subordinated to the extent provided in Article XIV.

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

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

              (A) all overdue interest on all Securities of that series,

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

                                       26

<PAGE>

              (C) to the extent that payment of such interest is lawful,
          interest upon overdue interest at the rate or rates prescribed
          therefor in such Securities, and

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

        and

          (2) all Events of Default with respect to Securities of that series,
        other than the non-payment of the principal of Securities of that series
        which have become due solely by such declaration of acceleration, have
        been cured or waived as provided in Section 5.13.

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

Section 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee.

     The Company covenants that if

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

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

the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holders of such Securities, the whole amount then due and payable on such
Securities for principal and any premium and interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal and premium and on any overdue interest, at the rate or rates
prescribed therefor in such Securities, and, in addition thereto, such further
amount as shall be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.

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

Section 5.4 Trustee May File Proofs of Claim.

     In case of any judicial proceeding relative to the Company (or any other
obligor upon the Securities), its property or its creditors, the Trustee shall
be entitled and empowered, by intervention in such proceeding or otherwise, to
take any and all actions authorized under the Trust Indenture Act in order to
have claims of the Holders and the Trustee allowed in any such proceeding. In
particular, the Trustee shall be authorized to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same; and any

                                       27

<PAGE>

custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 6.7.

     No provision of this Indenture shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

Section 5.5 Trustee May Enforce Claims Without Possession of Securities.

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

Section 5.6 Application of Money Collected.

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

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

          SECOND: To the payment of the amounts then due and unpaid for
        principal of and any premium and interest on the Securities in respect
        of which or for the benefit of which such money has been collected,
        ratably, without preference or priority of any kind, according to the
        amounts due and payable on such Securities for principal and any premium
        and interest, respectively.

Section 5.7 Limitation on Suits.

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

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

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

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<PAGE>

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

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

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

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

Section 5.8 Unconditional Right of Holders to Receive Principal, Premium and
Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any
Security shall have the right, which is absolute and unconditional, to receive
payment of the principal of and any premium and (subject to Section 3.7) any
interest on such Security on the Stated Maturity or Maturities expressed in such
Security (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.

Section 5.9 Restoration of Rights and Remedies.

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

Section 5.10 Rights and Remedies Cumulative.

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

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<PAGE>

Section 5.11 Delay or Omission Not Waiver.

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

Section 5.12 Control by Holders.

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

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

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

Section 5.13 Waiver of Past Defaults.

     The Holders of not less than a majority in principal amount of the
Outstanding Securities of any series may on behalf of the Holders of all the
Securities of such series waive any past default hereunder with respect to such
series and its consequences, except a default

          (1) in the payment of the principal of or any premium or interest on
        any Security of such series, or

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

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

Section 5.14 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, suffered or
omitted by it as Trustee, a court may require any party litigant in such suit to
file an undertaking to pay the costs of such suit, and may assess costs against
any such party litigant, in the manner and to the extent provided in the Trust
Indenture Act; provided, however, that neither this Section 5.14 nor the Trust
Indenture Act shall be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Company
or the Trustee.

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<PAGE>

Section 5.15 Waiver of Stay or Extension Laws.

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

                                   ARTICLE VI

                                   THE TRUSTEE

Section 6.1 Certain Duties and Responsibilities.

     The duties and responsibilities of the Trustee shall be as provided by the
Trust Indenture Act. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties hereunder,
or in the exercise of any of its rights or powers, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against
such risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Indenture relating to the conduct
or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 6.1.

Section 6.2 Notice of Defaults.

     If a default occurs hereunder with respect to Securities of any series, the
Trustee shall give the Holders of Securities of such series notice of such
default as and to the extent provided by the Trust Indenture Act; provided,
however, that in the case of any default of the character specified in Section
5.1(4) with respect to Securities of such series, no such notice to Holders
shall be given until at least 30 days after the occurrence thereof. For the
purpose of this Section 6.2, the term "default" means any event which is, or
after notice or lapse of time or both would become, an Event of Default with
respect to Securities of such series.

Section 6.3 Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

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

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

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<PAGE>

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

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

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

          (f) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney;
and

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

Section 6.4 Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee's
certificates of authentication, shall be taken as the statements of the Company,
and the Trustee or any Authenticating Agent assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities. The Trustee or any
Authenticating Agent shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

Section 6.5 May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security
Registrar or any other agent of the Company, in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
6.8 and 6.13, may otherwise deal with the Company with the same rights it would
have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar or such other agent.

Section 6.6 Money Held in Trust.

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

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<PAGE>

Section 6.7 Compensation and Reimbursement.

     The Company agrees:

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

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

          (3) to indemnify the Trustee for, and to hold it harmless against, any
        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 the trust or trusts hereunder, including the costs and
        expenses of defending itself against any claim or liability in
        connection with the exercise or performance of any of its powers or
        duties hereunder.

Section 6.8 Disqualification; Conflicting Interests.

     If the Trustee has or shall acquire a conflicting interest within the
meaning of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
the provisions of, the Trust Indenture Act and this Indenture.

Section 6.9 Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall be a Person
that is eligible pursuant to the Trust Indenture Act to act as such and has a
combined capital and surplus of at least $50,000,000. If such Person publishes
reports of condition at least annually, pursuant to law or to the requirements
of said supervising or examining authority, then for the purposes of this
Section 6.9, the combined capital and surplus of such Person shall be deemed to
be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.9, it shall resign immediately
in the manner and with the effect hereinafter specified in this Article VI.

Section 6.10 Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a
successor Trustee pursuant to this Article VI shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 6.11.

          (b) The Trustee may resign at any time with respect to the Securities
of one or more series by giving written notice thereof to the Company. If the
instrument of

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<PAGE>

acceptance by a successor Trustee required by Section 6.11 shall not have been
delivered to the Trustee within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee with respect to the
Securities of such series.

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

          (d) If at any time:

               (1) the Trustee shall fail to comply with Section 6.8 after
          written request therefor by the Company or by any Holder who has been
          a bona fide Holder of a Security for at least six months, or

               (2) the Trustee shall cease to be eligible under Section 6.9 and
          shall fail to resign after written request therefor by the Company or
          by any such Holder, or

               (3) the Trustee shall become incapable of acting or shall be
          adjudged a bankrupt or insolvent or a receiver of the Trustee or of
          its property shall be appointed or any public officer shall take
          charge or control of the Trustee or of its property or affairs for the
          purpose of rehabilitation, conservation or liquidation,

then, in any such case, (i) the Company by a Board Resolution may remove the
Trustee with respect to all securities, or (ii) subject to Section 5.14, any
Holder who has been a bona fide Holder of a Security for at least six months
may, on behalf of himself and all others similarly situated, petition any court
of competent jurisdiction for the removal of the Trustee with respect to all
Securities and the appointment of a successor Trustee or Trustees.

          (e) If the Trustee shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, with
respect to the Securities of one or more series, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee or Trustees with respect
to the Securities of that or those series (it being understood that any such
successor Trustee may be appointed with respect to the Securities of one or more
or all of such series and that at any time there shall be only one Trustee with
respect to the Securities of any particular series) and shall comply with the
applicable requirements of Section 6.11. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee with respect to the Securities of any series shall be
appointed by Act of the Holders of a majority in principal amount of the
Outstanding Securities of such series delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
6.11, become the successor Trustee with respect to the Securities of such series
and to that extent supersede the successor Trustee appointed by the Company. If
no successor Trustee with respect to the Securities of any series shall have
been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 6.11, any Holder who has been a bona fide Holder of a
Security of such series for at least six months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the appointment of a successor Trustee with respect to the Securities of such
series.

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<PAGE>

          (f) The Company shall give notice of each resignation and each removal
of the Trustee with respect to the Securities of any series and each appointment
of a successor Trustee with respect to the Securities of any series to all
Holders of Securities of such series in the manner provided in Section 1.6. Each
notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

Section 6.11 Acceptance of Appointment by Successor.

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

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

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

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<PAGE>

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

Section 6.12 Merger, Conversion, Consolidation or Succession to Business.

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

Section 6.13 Preferential Collection of Claims Against Company.

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

Section 6.14 Appointment of Authenticating Agent.

     The Trustee may appoint an Authenticating Agent or Agents with respect to
one or more series of Securities which shall be authorized to act on behalf of
the Trustee to authenticate Securities of such series issued upon original issue
and upon exchange, registration of transfer or partial redemption thereof or
pursuant to Section 3.6, and Securities so authenticated shall be entitled to
the benefits of this Indenture and shall be valid and obligatory for all
purposes as if authenticated by the Trustee hereunder. Wherever reference is
made in this Indenture to the authentication and delivery of Securities by the
Trustee or the Trustee's certificate of authentication, such reference shall be
deemed to include authentication and delivery on behalf of the Trustee by an
Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be
acceptable to the Company and shall at all times be a corporation organized and
doing business under the laws of the United States of America, any State thereof
or the District of Columbia, authorized under such laws to act as Authenticating
Agent, having a combined capital and surplus of not less than $50,000,000 and
subject to supervision or examination by Federal or State authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section 6.14, the combined capital and surplus of such
Authenticating Agent shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. If at any time an
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.14, such Authenticating Agent shall resign
immediately in the manner and with the effect specified in this Section 6.14.

     Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion

                                       36

<PAGE>

or consolidation to which such Authenticating Agent shall be a party, or any
corporation succeeding to the corporate agency or corporate trust business of an
Authenticating Agent, shall continue to be an Authenticating Agent, provided
such corporation shall be otherwise eligible under this Section 6.14, without
the execution or filing of any paper or any further act on the part of the
Trustee or the Authenticating Agent.

     An Authenticating Agent may resign at any time by giving written notice
thereof to the Trustee and to the Company. The Trustee may at any time terminate
the agency of an Authenticating Agent by giving written notice thereof to such
Authenticating Agent and to the Company. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 6.14, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall mail
written notice of such appointment by first-class mail, postage prepaid, to all
Holders of Securities of the series with respect to which such Authenticating
Agent will serve, as their names and addresses appear in the Security Register.
Any successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all the rights, powers and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent.
No successor Authenticating Agent shall be appointed unless eligible under the
provisions of this Section 6.14.

     The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation for its services under this Section 6.14.

     If an appointment with respect to one or more series is made pursuant to
this Section 6.14, the Securities of such series may have endorsed thereon, in
addition to the Trustee's certificate of authentication, an alternative
certificate of authentication in the following form:

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

                                         LASALLE BANK NATIONAL ASSOCIATION,
                                         As Trustee

                                         By
                                           --------------------------------,
                                           As Authenticating Agent

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

                                   ARTICLE VII

                HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1 Company to Furnish Trustee Names and Addresses of Holders.

     The Company will furnish or cause to be furnished to the Trustee:

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<PAGE>

          (a) semi-annually, not later than May 1 and November 1 in each year, a
list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders as of the preceding April 1 or October 1, as the case
may be, and

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

excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.

Section 7.2 Preservation of Information; Communications to Holders.

          (a) The Trustee shall preserve, in as current a form as is reasonably
practicable, the names and addresses of Holders contained in the most recent
list furnished to the Trustee as provided in Section 7.1 and the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar. The Trustee may destroy any list furnished to it as provided in
Section 7.1 upon receipt of a new list so furnished.

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

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

Section 7.3 Reports by Trustee.

          (a) The Trustee shall transmit to Holders such reports concerning the
Trustee and its actions under this Indenture as may be required pursuant to the
Trust Indenture Act at the times and in the manner provided pursuant thereto.

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

Section 7.4 Reports by Company.

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

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<PAGE>

                                  ARTICLE VIII

              CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1 Company May Consolidate, Etc., Only on Certain Terms.

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

          (1) in case the Company shall consolidate with or merge into another
        Person or convey, transfer or lease its properties and assets
        substantially as an entirety to any Person, the Person formed by such
        consolidation or into which the Company is merged or the Person which
        acquires by conveyance or transfer, or which leases, the properties and
        assets of the Company substantially as an entirety shall be a
        corporation, partnership or trust, shall be organized and validly
        existing under the laws of the United States of America, any State
        thereof or the District of Columbia and shall expressly assume, by an
        indenture supplemental hereto, executed and delivered to the Trustee, in
        form satisfactory to the Trustee, the due and punctual payment of the
        principal of and any premium and interest on all the Securities and the
        performance or observance of every covenant of this Indenture on the
        part of the Company to be performed or observed;

          (2) immediately after giving effect to such transaction and treating
        any indebtedness which becomes an obligation of the Company or a
        Subsidiary as a result of such transaction as having been incurred by
        the Company or such Subsidiary at the time of such transaction, no Event
        of Default, and no event which, after notice or lapse of time or both,
        would become an Event of Default, shall have happened and be continuing;

          (3) if, as a result of any such consolidation or merger or such
        conveyance, transfer or lease, properties or assets of the Company would
        become subject to a mortgage, pledge, lien, security interest or other
        encumbrance which would not be permitted by this Indenture, the Company
        or such successor Person, as the case may be, shall take such steps as
        shall be necessary effectively to secure the Securities equally and
        ratably with (or prior to) all indebtedness secured thereby; and

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

Section 8.2 Successor Substituted.

     Upon any consolidation of the Company with, or merger of the Company into,
any other Person or any conveyance, transfer or lease of the properties and
assets of the Company

                                       39

<PAGE>

substantially as an entirety in accordance with Section 8.1, the successor
Person formed by such consolidation or into which the Company is merged or to
which such conveyance, transfer or lease is made shall succeed to, and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor Person had been named
as the Company herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

Section 9.1 Supplemental Indentures Without Consent of Holders.

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

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

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

          (3) to add any additional Events of Default; or

          (4) to add to or change any of the provisions of this Indenture to
        such extent as shall be necessary to permit or facilitate the issuance
        of Securities in bearer form, registrable or not registrable as to
        principal, and with or without interest coupons, or to permit or
        facilitate the issuance of Securities in uncertificated form; or

          (5) to add to, change or eliminate any of the provisions of this
        Indenture in respect of one or more series of Securities; provided,
        however, that any such addition, change or elimination (i) shall neither
        (A) apply to any Security of any series created prior to the execution
        of such supplemental indenture and entitled to the benefit of such
        provision nor (B) modify the rights of the Holder of any such Security
        with respect to such provision or (ii) shall become effective only when
        there is no such Security Outstanding; or

          (6) to secure the Securities; or

          (7) to establish the form or terms of Securities of any series as
        permitted by Sections 2.1 and 3.1; or

                                       40

<PAGE>

          (8) to evidence and provide for the acceptance of appointment
        hereunder by a successor Trustee with respect to the Securities of one
        or more series and to add to or change any of the provisions of this
        Indenture as shall be necessary to provide for or facilitate the
        administration of the trusts hereunder by more than one Trustee,
        pursuant to the requirements of Section 6.11(b); or

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

Section 9.2 Supplemental Indentures with Consent of Holders.

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

          (1) change the Stated Maturity of the principal of, or any installment
        of principal of or interest on, any Security, or reduce the principal
        amount thereof or the rate of interest thereon or any premium payable
        upon the redemption thereof, or reduce the amount of the principal of an
        Original Issue Discount Security that would be due and payable upon a
        declaration of acceleration of the Maturity thereof pursuant to Section
        5.2, or change any Place of Payment where, or the coin or currency in
        which, any Security or any premium or interest thereon is payable, or
        impair the right to institute suit for the enforcement of any such
        payment on or after the Stated Maturity thereof (or, in the case of
        redemption, on or after the Redemption Date), or

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

          (3) modify any of the provisions of this Section 9.2 or Section 5.13,
        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;
        provided, however, that this clause shall not be deemed to require the
        consent of any Holder with respect to changes in the references to "the
        Trustee" and concomitant changes in this Section 9.2, or the deletion of
        this proviso, in accordance with the requirements of Sections 6.11(b)
        and 9.1(8).

                                       41

<PAGE>

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

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

Section 9.3 Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article IX or the modifications thereby
of the trusts created by this Indenture, the Trustee shall be entitled to
receive, and (subject to Section 6.1) shall be fully protected in relying upon,
an Officer's Certificate and an Opinion of Counsel each stating that the
execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.

Section 9.4 Effect of Supplemental Indentures.

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

Section 9.5 Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article IX shall
conform to the requirements of the Trust Indenture Act.

Section 9.6 Reference in Securities to Supplemental Indentures.

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

                                    ARTICLE X

                                    COVENANTS

Section 10.1 Payment of Principal, Premium and Interest.

     The Company covenants and agrees for the benefit of each series of
Securities that it will duly and punctually pay the principal of and any premium
and interest on the Securities of that series in accordance with the terms of
the Securities and this Indenture.

                                       42

<PAGE>

Section 10.2 Maintenance of Office or Agency.

     The Company will maintain in each Place of Payment for any series of
Securities an office or agency where Securities of that series may be presented
or surrendered for payment, where Securities of that series may be surrendered
for registration of transfer or exchange and where notices and demands to or
upon the Company in respect of the Securities of that series and this Indenture
may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any
time the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

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

Section 10.3 Money for Securities Payments to Be Held in Trust.

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

     Whenever the Company shall have one or more Paying Agents for any series of
Securities, it will, prior to each due date of the principal of or any premium
or interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act.

     The Company will cause each Paying Agent for any series of Securities other
than the Trustee to execute and deliver to the Trustee an instrument in which
such Paying Agent shall agree with the Trustee, subject to the provisions of
this Section 10.3, that such Paying Agent will (i) comply with the provisions of
the Trust Indenture Act applicable to it as a Paying Agent and (ii) during the
continuance of any default by the Company (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, and upon the written request of the Trustee,
forthwith pay to the Trustee all sums held in trust by such Paying Agent for
payment in respect of the Securities of that series.

     The Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or by Company
Order direct any Paying Agent to pay, to the Trustee all sums held in trust by
the Company or such Paying Agent, such sums to be held by the Trustee upon the
same trusts as those upon which such

                                       43

<PAGE>

sums were held by the Company or such Paying Agent; and, upon such payment by
any Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.

     Any money deposited with the Trustee or any Paying Agent, or then held by
the Company, in trust for the payment of the principal of or any premium or
interest on any Security of any series and remaining unclaimed for two years
after such principal, premium or interest has become due and payable shall be
paid to the Company on Company Request, or (if then held by the Company) shall
be discharged from such trust; and the Holder of such Security shall thereafter,
as an unsecured general creditor, look only to the Company for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in [____________],
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

Section 10.4 Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 120 days after the end of
each fiscal year of the Company ending after the date hereof, an Officers'
Certificate, stating whether or not to the best knowledge of the signers thereof
the Company is in default in the performance and observance of any of the terms,
provisions and conditions of this Indenture (without regard to any period of
grace or requirement of notice provided hereunder) and, if the Company shall be
in default, specifying all such defaults and the nature and status thereof of
which they may have knowledge.

Section 10.5 Existence.

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

                                       44

<PAGE>

Section 10.6 Maintenance of Properties.

     The Company will cause all properties used or useful in the conduct of its
business or the business of any Subsidiary to be maintained and kept in good
condition, repair and working order and supplied with all necessary equipment
and will cause to be made all necessary repairs, renewals, replacements,
betterments and improvements thereof, all as in the judgment of the Company may
be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section 10.6 shall prevent the Company from discontinuing the
operation or maintenance of any of such properties if such discontinuance is, in
the judgment of the Company, desirable in the conduct of its business or the
business of any Subsidiary and not disadvantageous in any material respect to
the Holders.

Section 10.7 Payment of Taxes and Other Claims.

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

                                   ARTICLE XI

                            REDEMPTION OF SECURITIES

Section 11.1 Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity
shall be redeemable in accordance with their terms and (except as otherwise
specified as contemplated by Section 3.1 for Securities of any series) in
accordance with this Article XI.

Section 11.2 Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by
a Board Resolution. In case of any redemption at the election of the Company of
less than all the Securities of any series, the Company shall, at least 60 days
prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee), notify the Trustee of such Redemption Date, of
the principal amount of Securities of such series to be redeemed and, if
applicable, of the tenor of the Securities to be redeemed. In the case of any
redemption of Securities prior to the expiration of any restriction on such
redemption provided in the terms of such Securities or elsewhere in this
Indenture, the Company shall furnish the Trustee with an Officers' Certificate
evidencing compliance with such restriction.

Section 11.3 Selection by Trustee of Securities to Be Redeemed.

     If less than all the Securities of any series are to be redeemed (unless
all of the Securities of such series and of a specified tenor are to be
redeemed), the particular Securities to be redeemed shall be selected not more
than 60 days prior to the Redemption Date by the

                                       45

<PAGE>

Trustee, from the Outstanding Securities of such series not previously called
for redemption, by such method as the Trustee shall deem fair and appropriate
and which may provide for the selection for redemption of portions (equal to the
minimum authorized denomination for Securities of that series or any integral
multiple thereof) of the principal amount of Securities of such series of a
denomination larger than the minimum authorized denomination for Securities of
that series. If less than all of the Securities of such series and of a
specified tenor are to be redeemed, the particular Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series and specified tenor not
previously called for redemption in accordance with the preceding sentence.

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

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

Section 11.4 Notice of Redemption.

     Notice of redemption shall be given by first-class mail, postage prepaid,
mailed not less than 30 nor more than 60 days prior to the Redemption Date, to
each Holder of Securities to be redeemed, at his address appearing in the
Security Register.

          All notices of redemption shall state:

          (1) the Redemption Date,

          (2) the Redemption Price,

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

          (4) that on the Redemption Date the Redemption Price will become due
        and payable upon each such Security to be redeemed and, if applicable,
        that interest thereon will cease to accrue on and after said date,

          (5) the place or places where such Securities are to be surrendered
        for payment of the Redemption Price, and

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

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

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<PAGE>

Section 11.5 Deposit of Redemption Price.

     Prior to any Redemption Date, the Company shall deposit with the Trustee or
with a Paying Agent (or, if the Company is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 10.3) an amount of money
sufficient to pay the Redemption Price of, and (except if the Redemption Date
shall be an Interest Payment Date) accrued interest on, all the Securities which
are to be redeemed on that date.

Section 11.6 Securities Payable on Redemption Date.

     Notice of redemption having been given as aforesaid, the Securities so to
be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Company shall default in the payment of the Redemption Price and accrued
interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall
be paid by the Company at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that, unless otherwise specified as
contemplated by Section 3.1, installments of interest whose Stated Maturity is
on or prior to the Redemption Date shall be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the
close of business on the relevant Record Dates according to their terms and the
provisions of Section 3.7.

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

Section 11.7 Securities Redeemed in Part.

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

                                   ARTICLE XII

                                  SINKING FUNDS

Section 12.1 Applicability of Article.

     The provisions of this Article XII 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 herein referred to as a "mandatory sinking fund
payment," and any

                                       47

<PAGE>

payment in excess of such minimum amount provided for by the terms of Securities
of any series is herein referred to as an "optional sinking fund payment." If
provided for by the terms of Securities of any series, the cash amount of any
sinking fund payment may be subject to reduction as provided in Section 12.2.
Each sinking fund payment shall be applied to the redemption of Securities of
any series as provided for by the terms of Securities of such series.

Section 12.2 Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other than
any previously called for redemption) and (2) may apply as a credit Securities
of a series which have been redeemed either at the election of the Company
pursuant to the terms of such Securities or through the application of permitted
optional sinking fund payments pursuant to the terms of such Securities, in each
case in satisfaction of all or any part of any sinking fund payment with respect
to the Securities of such series required to be made pursuant to the terms of
such Securities as provided for by the terms of such series; provided, however,
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 sinking fund payment shall be reduced accordingly.

Section 12.3 Redemption of Securities for Sinking Fund.

     Not less than 60 days prior to each sinking fund payment date for any
series of Securities, the Company will deliver to the Trustee an Officers'
Certificate specifying the amount of the next ensuing sinking fund payment for
that series pursuant to the terms of that series, the portion thereof, if any,
which is to be satisfied by payment of cash and the portion thereof, if any,
which is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 12.2 and will also deliver to the Trustee any Securities to
be so delivered. Not less than 45 days before each such sinking fund payment
date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 11.3 and cause notice of
the redemption thereof to be given in the name of and at the expense of the
Company in the manner provided in Section 11.4. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Sections 11.6 and 11.7.

                                  ARTICLE XIII

                       DEFEASANCE AND COVENANT DEFEASANCE

Section 13.1 Applicability of Article; Company's Option to Effect Defeasance or
Covenant Defeasance.

     If pursuant to Section 3.1 provision is made for either or both of (a)
defeasance of the Securities of a series under Section 13.2 or (b) covenant
defeasance of the Securities of a series under Section 13.3, then the provisions
of such Section or Sections, as the case may be, together with the other
provisions of this Article XIII, shall be applicable to the Securities of such
series, and the Company may at its option by Board Resolution, at any time, with
respect to the Securities of such series, elect to have either Section 13.2 (if
applicable) or Section 13.3 (if applicable) be applied to the Outstanding
Securities of such series upon compliance with the conditions set forth below in
this Article XIII.

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<PAGE>

Section 13.2 Defeasance and Discharge.

     Upon the Company's exercise of the above option applicable to this Section
13.2, the Company shall be deemed to have been discharged from its obligations
with respect to the Outstanding Securities of such series on and after the date
the conditions precedent set forth below are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities of such series and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged thereunder: (A) the rights of
Holders of Outstanding Securities of such series to receive, solely from the
trust fund described in Section 13.4 as more fully set forth in such Section,
payments of the principal of (and premium and interest, if any, on) such
Securities when such payments are due, (B) the Company's obligations with
respect to such Securities under Sections 3.4, 3.5, 3.6, 10.2 and 10.3 and such
obligations as shall be ancillary thereto, (C) the rights, powers, trusts,
duties, immunities and other provisions in respect of the Trustee hereunder and
(D) this Article XIII. Subject to compliance with this Article XIII, the Company
may exercise its option under this Section 13.2 notwithstanding the prior
exercise of its option under Section 13.3 with respect to the Securities of such
series.

Section 13.3 Covenant Defeasance.

     Upon the Company's exercise of the above option applicable to this Section
13.3, the Company shall be released from its obligations under Section 8.1 (and
any covenant applicable to such Securities that are determined pursuant to
Section 3.1 to be subject to this provision) and the occurrence of an event
specified in Section 5.1(4) (with respect to Section 8.1) (and any other Event
of Default applicable to such Securities that are determined pursuant to Section
3.1 to be subject to this provision) shall not be deemed to be an Event of
Default with respect to the Outstanding Securities of such series on and after
the date the conditions set forth below are satisfied (hereinafter, "covenant
defeasance"). For this purpose, such covenant defeasance means that, with
respect to the Outstanding Securities of such series, the Company may omit to
comply with and shall have no liability in respect of any term, condition or
limitation set forth in any such Section or clause whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or
clause or by reason of any reference in any such Section or clause to any other
provision herein or in any other document, but the remainder of this Indenture
and such Securities shall be unaffected thereby.

Section 13.4 Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions precedent to application of either
Section 13.2 or Section 13.3 to the Outstanding Securities of such series:

          (1) The Company shall irrevocably have deposited or caused to be
        deposited with the Trustee (or another trustee satisfying the
        requirements of Section 6.9 who shall agree to comply with the
        provisions of this Article XIII applicable to it) as trust funds in
        trust for the purpose of making the following payments, specifically
        pledged as security for, and dedicated solely to, the benefit of the
        Holders of such Securities, (A) money in an amount, or (B) U.S.
        Government Obligations which through the scheduled payment of principal
        and interest in respect thereof in accordance with their terms will
        provide, not later

                                       49

<PAGE>

        than one day before the due date of any payment, money in an amount, or
        (C) a combination thereof, sufficient, without reinvestment, in the
        opinion of a nationally recognized firm of independent public
        accountants expressed in a written certification thereof delivered to
        the Trustee, to pay and discharge, and which shall be applied by the
        Trustee (or other qualifying trustee) to pay and discharge, the
        principal of (and premium and interest, if any on) the Outstanding
        Securities of such series on the Maturity of such principal, or premium
        and interest, if any. Before such a deposit the Company may make
        arrangements satisfactory to the Trustee for the redemption of
        Securities at a future date or dates in accordance with Article XI,
        which shall be given effect in applying the foregoing. For this purpose,
        "U.S. Government Obligations" means securities that are (x) direct
        obligations of the United States of America for the payment of which its
        full faith and credit is pledged or (y) obligations of a Person
        controlled or supervised by and acting as an agency or instrumentality
        of the United States of America the payment of which is unconditionally
        guaranteed as a full faith and credit obligation by the United States of
        America, which, in either case, are not callable or redeemable at the
        option of the issuer thereof, and shall also include a depository
        receipt issued by a bank (as defined in section 3(a)(2) of the
        Securities Act of 1933, as amended) as custodian with respect to any
        such U.S. Government Obligation or a specific payment of principal of or
        interest on any such U.S. Government Obligation held by such custodian
        for the account of the holder of such depository receipt, provided that
        (except as required by law) such custodian is not authorized to make any
        deduction from the amount payable to the holder of such depositary
        receipt from any amount received by the custodian in respect of the U.S.
        Government Obligation or the specific payment of principal of or
        interest on the U.S. Government Obligation evidenced by such depositary
        receipt.

          (2) No Event of Default or event which with notice or lapse of time or
        both would become an Event of Default with respect to the Securities of
        such series shall have occurred and be continuing (A) on the date of
        such deposit or (B) insofar as subsections 5.1(5) and (6) are concerned,
        at any time during the period ending on the 121st day after the date of
        such deposit or, if longer, ending on the day following the expiration
        of the longest preference period applicable to the Company in respect of
        such deposit (it being understood that the condition in this condition
        shall not be deemed satisfied until the expiration of such period).

          (3) Such defeasance or covenant defeasance shall not (A) cause the
        Trustee for the Securities of such series to have a conflicting interest
        as defined in Section 6.8 or for purposes of the Trust Indenture Act
        with respect to any securities of the Company or (B) result in the trust
        arising from such deposit to constitute, unless it is qualified as, a
        regulated investment company under the Investment Company Act of 1940,
        as amended.

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

          (5) In the case of an election under Section 13.2, the Company shall
        have delivered to the Trustee an Opinion of Counsel stating that (x) the
        Company has received from, or there has been published by, the Internal
        Revenue Service a ruling, or (y) since the date of this Indenture there
        has been a change in the

                                       50

<PAGE>

        applicable Federal income tax law, in either case to the effect that,
        and based thereon such opinion shall confirm that, the Holders of the
        Outstanding Securities of such series will not recognize income, gain or
        loss for Federal income tax purposes as a result of such defeasance and
        will be subject to Federal income tax on the same amounts, in the same
        manner and at the same times as would have been the case if such
        defeasance had not occurred.

          (6) In the case of an election under Section 13.3, the Company shall
        have delivered to the Trustee an Opinion of Counsel to the effect that
        the Holders of the Outstanding Securities of such series will not
        recognize income, gain or loss for Federal income tax purposes as a
        result of such covenant defeasance and will be subject to Federal income
        tax on the same amounts, in the same manner and at the same times as
        would have been the case if such covenant defeasance had not occurred.

          (7) Such defeasance or covenant defeasance shall be effected in
        compliance with any additional terms, conditions or limitations which
        may be imposed on the Company in connection therewith pursuant to
        Section 3.1.

          (8) The Company shall have delivered to the Trustee an Officers'
        Certificate and an Opinion of Counsel, each stating that all conditions
        precedent provided for relating to either the defeasance under Section
        13.2 or the covenant defeasance under Section 13.3 (as the case may be)
        have been complied with.

Section 13.5 Deposited Money and U.S. Government Obligations to be Held in
Trust; Other Miscellaneous Provisions.

     Subject to the provisions of the last paragraph of Section 10.3, all money
and U.S. Government Obligations (including the proceeds thereof) deposited with
the Trustee (or other qualifying trustee - collectively, for purposes of this
Section 13.5, the "Trustee") pursuant to Section 13.4 in respect of the
Outstanding Securities of such series shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Securities and this
Indenture, to the payment, either directly or through any Paying Agent (but not
including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Holders of such Securities, of all sums due and to become due
thereon in respect of principal (and premium, if any) and interest, but such
money need not be segregated from other funds except to the extent required by
law.

     The Company shall pay and indemnify the Trustee against any tax, fee or
other charge imposed on or assessed against the money or U.S. Government
Obligations deposited pursuant to Section 13.4 or the principal and interest
received in respect thereof.

     Anything herein to the contrary notwithstanding, the Trustee shall deliver
or pay to the Company from time to time upon Company Request any money or U.S.
Government Obligations held by it as provided in Section 13.4 which, in the
opinion of a nationally recognized firm of independent public accountants
expressed in a written certification thereof delivered to the Trustee, are in
excess of the amount thereof which would then be required to be deposited to
effect an equivalent defeasance or covenant defeasance.

                                       51

<PAGE>

Section 13.6 Reinstatement.

     If the Trustee or the Paying Agent is unable to apply any money in
accordance with Section 13.2 or 13.3 by reason of any order or judgment or any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company's obligations under the Securities of such
series shall be revived and reinstated as though no deposit had occurred
pursuant to this Article XIII until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 13.2 or 13.3;
provided, however, that if the Company makes any payment of principal of (and
premium, if any) or interest on any such Security following the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders of
such Securities to receive such payment from the money held by the Trustee or
the Paying Agent.

                                   ARTICLE XIV

                           Subordination of Securities

Section 14.1 Securities Subordinate to Senior Indebtedness.

     The Company, for itself, its successors and assigns, covenants and agrees,
and each Holder of the Securities of each series, by its acceptance thereof,
likewise covenants and agrees, that the payment of the principal of and premium,
if any, and interest, if any, on each and all of the Securities of any series
which by their terms established pursuant to Sections 2.1 and 3.1 are made
subject to this Article XIV is hereby expressly subordinated, to the extent and
in the manner set forth in this Article XIV, in right of payment to the prior
payment in full of all Senior Indebtedness.

     Each Holder of the Securities of such series, by its acceptance thereof,
authorizes and directs the Trustee on its behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article XIV, and appoints the Trustee its attorney-in-fact for any and all such
purposes.

     Without limiting the generality of the foregoing, nothing contained in this
Article XIV shall restrict the right of the Trustee or the Holders of Securities
to take any action to declare the Securities to be due and payable prior to
their stated maturity pursuant to Section 5.2 or to pursue any rights or
remedies hereunder; provided, however, that all Senior Indebtedness then due and
payable shall first be paid in full before the Holders of the Securities or the
Trustee are entitled to receive any direct or indirect payment from the Company
of principal of, or premium, if any, or interest on the Securities.

Section 14.2 Payment Over of Proceeds Upon Dissolution, Etc.

     Upon any payment by the Company or distribution of assets of the Company of
any kind or character, whether in cash, property or securities, to creditors
upon any dissolution or winding-up or liquidation or reorganization of the
Company, whether voluntary or involuntary or in bankruptcy, insolvency,
receivership or other proceedings, all amounts due upon all Senior Indebtedness
of the Company shall first be paid in full; or payment thereof provided for in
money in accordance with its terms, before any payment is made by the Company,
on account of the principal (and premium, if any) or interest on the Securities
of such series; and upon any such dissolution or winding-up or liquidation or
reorganization, any payment by the Company, or distribution of assets of the
Company of any kind or character, whether in cash, property or securities, to
which the Holders of the Securities of such series or the Trustee

                                       52

<PAGE>

would be entitled to receive from the Company, except for the provisions of this
Article XIV, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidation trustee, agent or other Person making such payment or
distribution, or by the Holders of the Securities of such series or by the
Trustee under the Indenture if received by them or it, directly to the holders
of Senior Indebtedness of the Company (pro rata to such holders on the basis of
the respective amounts of Senior Indebtedness held by such holders, as
calculated by the Company) or their representative or representatives, or to the
trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay such Senior Indebtedness in
full, in money or money's worth, after giving effect to any concurrent payment
or distribution to or for the holders of such Senior Indebtedness, before any
payment or distribution is made to the Holders of the Securities of such series
or to the Trustee.

     In the event that, notwithstanding the foregoing, any payment or
distribution of assets of the Company of any kind or character, whether in cash,
property or securities, prohibited by the foregoing, shall be received by the
Trustee before all Senior Indebtedness of the Company is paid in full, or
provision is made for such payment in money in accordance with its terms, such
payment or distribution shall be held in trust for the benefit of and shall be
paid over or delivered to the holders of such Senior Indebtedness or their
representative or representatives, or to the trustee or trustees under any
indenture pursuant to which any instruments evidencing such Senior Indebtedness
may have been issued, and their respective interests may appear, as calculated
by the Company, for application to the payment of all Senior Indebtedness of the
Company, as the case may be, remaining unpaid to the extent necessary to pay
such Senior Indebtedness in full in money in accordance with its terms, after
giving effect to any concurrent payment or distribution to or for the benefit of
the holders of such Senior Indebtedness.

     For purposes of this Article XIV only, the words "cash, property or
securities" shall not be deemed to include shares of stock of the Company as
reorganized or readjusted, or securities of the Company or any other corporation
provided for by a plan of reorganization or readjustment which are subordinated
in right of payment to all Senior Indebtedness which may at the time be
outstanding to substantially the same extent as, or to a greater extent than,
the Securities of such series are so subordinated as provided in this Article
XIV. The consolidation of the Company with, or the merger of the Company into,
another Person or the liquidation or dissolution of the Company following the
conveyance or transfer of its properties and assets substantially as an entirety
to another Person upon the terms and conditions set forth in Article VIII shall
not be deemed a dissolution, winding up, liquidation, reorganization, assignment
for the benefit of creditors or marshalling of assets and liabilities of the
Company for the purposes of this Section 14.2 if the Person formed by such
consolidation or into which the Company is merged or the Person which acquires
by conveyance or transfer such properties and assets substantially as an
entirety, as the case may be, shall, as a part of such consolidation, merger,
conveyance or transfer, comply with the conditions set forth in Article VIII.

Section 14.3 Prior Payment to Senior Indebtedness Upon Acceleration of
             Securities of Such Series

     In the event that any Securities of such series are declared due and
payable before their Stated Maturity, then and in such event the holders of
Senior Indebtedness shall be entitled to receive payment in full of all amounts
due or to become due on or in respect of all Senior Indebtedness or provision
shall be made for such payment in cash, before the Holders

                                       53

<PAGE>

of the Securities of such series are entitled to receive any payment (including
any payment which may be payable by reason of the payment of any other
indebtedness of the Company being subordinated to the payment of the Securities
of such series) by the Company on account of the principal of (or premium, if
any) or interest on the Securities of such series or on account of the purchase
or other acquisition of Securities of such series; provided, however, that
nothing in this Section 14.4 shall prevent the satisfaction of any sinking fund
payment in accordance with Article [___] by delivering and crediting pursuant to
Section [___] Securities of such series which have been acquired (upon
redemption or otherwise) prior to such declaration of acceleration or which have
been converted.

     In the event, that, notwithstanding the foregoing, the Company shall make
any payment to the Trustee or the Holder of any Securities prohibited by the
foregoing provisions of this Section 14.3, and if such fact shall, at or prior
to the time of such payment, have been made known to the Trustee or, as the case
may be, such Holder, then and in such event such payment shall be paid over and
delivered forthwith to the Company.

Section 14.4 No Payment When Senior Indebtedness in Default.

     No direct or indirect payment by or on behalf of the Company of principal
of or any premium or interest on the Securities of such series, whether pursuant
to the terms of the Securities or upon acceleration or otherwise, shall be made
if, at the time of such payment, there exists (a) a default in the payment of
all or any portion of any Senior Indebtedness and the Trustee has received
written notice thereof from the Company, from holders of Senior Indebtedness or
from any trustee, representative or agent therefor, or (b) any other default
affecting Senior Indebtedness as a result of which the maturity of Senior
Indebtedness has been accelerated and the Trustee has received written notice
from the Company, from holders of Senior Indebtedness or from any trustee,
representative or agent therefor, and such default shall not have been cured or
waived by or on behalf of the holders of such Senior Indebtedness.

     In the event that, notwithstanding the foregoing, any payment shall be
received by the Trustee when such payment is prohibited by the preceding
paragraph of this Section 14.4 such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of Senior
Indebtedness or their respective representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, but only to the extent
that the holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and
only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

Section 14.5 Payment Permitted in Certain Situations.

     Nothing contained in this Article XIV or elsewhere in this Indenture or in
any of the Securities of such series shall prevent (a) the Company, at any time
except during the pendency of any dissolution, winding-up, liquidation or
reorganization of the Company, whether voluntary or involuntary or any
bankruptcy, insolvency, receivership or other proceedings of the Company
referred to in Section 14.2 or under the conditions described in Section 14.3 or
14.4, from making payments at any time of principal of or premium, if any, or
interest on the Securities of such series, or (b) the application by the Trustee
of any money deposited with it hereunder to the payment of or on account of the
principal of, or premium, if

                                       54

<PAGE>

any, or interest on the Securities of such series or the retention of such
payment by the Holders, if, at the time of such application by the Trustee, it
did not have knowledge that such payment would have been prohibited by the
provisions of this Article XIV.

Section 14.6 Subrogation to Rights of Holders of Senior Indebtedness.

     Subject to the payment in full of all Senior Indebtedness or the provision
for such payment in cash or cash equivalents or otherwise in a manner
satisfactory to the holders of Senior Indebtedness, the rights of the Holders of
Securities of such series shall be subrogated to the extent of the payments or
distributions made to the holders of such Senior Indebtedness pursuant to the
provisions of this Article XIV (equally and ratably with the holders of
indebtedness of the Company which by its express terms is subordinated to
indebtedness of the Company to substantially the same extent as the Securities
of such series are subordinated to the Senior Indebtedness and is entitled to
like rights of subrogation) to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and
securities applicable to the Senior Indebtedness until the principal of (and
premium, if any) and interest on the Securities of such series shall be paid in
full. For purposes of such subrogation, no payments or distributions to the
holders of the Senior Indebtedness of any cash, property or securities to which
the Holders of Securities of such series or the Trustee would be entitled except
for the provisions of this Article XIV, and no payments over pursuant to the
provisions of this Article XIV to or for the benefit of the holders of Senior
Indebtedness by Holders of Securities of such series or the Trustee, shall, as
among the Company, its creditors other than holders of Senior Indebtedness and
the Holders of Securities of such series, be deemed to be a payment or
distribution by the Company to or on account of the Senior Indebtedness.

Section 14.7 Provisions Solely to Define Relative Rights.

     The provisions of this Article XIV are and are intended solely for the
purpose of defining the relative rights of the Holders of Securities on the one
hand and the holders of Senior Indebtedness on the other hand. Nothing contained
in this Article XIV or elsewhere in this Indenture or in the Securities of such
series is intended to or shall (a) impair, as among the Company, its creditors
other than holders of Senior Indebtedness and the Holders of Securities of such
series, the obligation of the Company, which is absolute and unconditional (and
which, subject to the rights under this Article XIV of the holders of Senior
Indebtedness, is intended to rank equally with all other general obligations of
the Company), to pay to the Holders of Securities of such series the principal
of (and premium, if any) and interest on the Securities of such series as and
when the same shall become due and payable in accordance with their terms; or
(b) affect the relative rights against the Company of the Holders of Securities
of such series and creditors of the Company, as the case may be, other than the
holders of Senior Indebtedness; or (c) prevent the Trustee or the Holder of any
Securities from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, under this
Article XIV of the holders of Senior Indebtedness to receive cash, property and
securities otherwise payable or deliverable to the Trustee or such Holder.

Section 14.8 Trustee to Effectuate Subordination.

     Each Holder of a Security by such Holder's acceptance thereof authorizes
and directs the trustee on such Holder's behalf to take such action as may be
necessary or appropriate to

                                       55

<PAGE>

effectuate the subordination provided in this Article XIV and appoints the
Trustee such Holder's attorney-in-fact for any and all such purposes.

Section 14.9 No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Indebtedness to
enforce subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the Company
or by any act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof any such holder may have or be
otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the
holders of Senior Indebtedness may, at any time and from time to time, without
the consent of or notice to the Trustee or the Holders of the Securities of such
series, without incurring responsibility to the Holders of Securities of such
series and without impairing or releasing the subordination provided in this
Article XIV or the obligations hereunder of the Holders of Securities of such
series to the holders of Senior Indebtedness do any one or more of the
following: (a) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Senior Indebtedness or otherwise amend or
supplement in any manner Senior Indebtedness or any instrument evidencing the
same or any agreement under which Senior Indebtedness is outstanding; (b) sell,
exchange, release or otherwise deal with any property pledged, mortgaged or
otherwise securing Senior Indebtedness; (c) release any Person liable in any
manner for the collection of Senior Indebtedness; and (d) exercise or refrain
from exercising any rights against the Company and any other Person.

Section 14.10 Notice to Trustee.

     The Company shall give prompt written notice to a Responsible Officer of
the Trustee of any fact known to the Company which would prohibit the making of
any payment to or by the Trustee in respect of the Securities of such series
pursuant to the provisions of this Article XIV. Notwithstanding the provisions
of this Article XIV or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts which would prohibit
the making of any payment to or by the Trustee in respect of the Securities of
such series pursuant to the provisions of this Article XIV, unless and until a
Responsible Officer of the Trustee shall have received written notice thereof
from the Company or a holder or holders of Senior Indebtedness or from any
trustee therefor; and, prior to the receipt of any such written notice, the
Trustee, subject to the provisions of Section 6.1, shall be entitled in all
respects to assume that no such facts exist; provided, however, that if the
Trustee shall have not received the notice provided for in this Section 14.10 at
least two Business Days prior to the date upon which by the terms hereof any
money may become payable for any purpose (including, without limitation, the
payment of the principal of (or premium, if any) or interest on any Securities
of such series, then, anything herein contained to the contrary notwithstanding,
the Trustee shall have full power and authority to receive such money and to
apply the same to the purposes for which they were received, and shall not be
affected by any notice to the contrary that may be received by it within two
Business Days prior to such date.

     Subject to the provisions of Section 6.1, the Trustee shall be entitled to
rely on the delivery to it of a written notice by a Person representing himself
to be a holder of Senior Indebtedness (or a trustee therefor) to establish that
such notice has been given by a holder of Senior Indebtedness (or a trustee
therefor). In the event that the Trustee determines in good

                                       56

<PAGE>

faith that further evidence is required with respect to the right of any Person
as a holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article XIV, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Indebtedness held by such Person.

     For purposes of this Article XIV only, (a) the issuance and delivery of
junior securities (or cash paid in lieu of fractional shares) upon conversion of
Securities of such series in accordance with their terms, or pursuant to the
terms set forth in an Officers' Certificate or established in one or more
indentures supplemental hereto in accordance with Section 3.1, shall not be
deemed to constitute a payment or distribution on account of the principal of or
premium or interest on Securities of such series or on account of the purchase
or other acquisition of Securities of such series, and (b) the payment, issuance
or delivery of cash, property or securities (other than junior securities and
cash paid in lieu of fractional shares) upon conversion of a Security shall be
deemed to constitute payment on account of the principal of such Security. For
the purposes of this Section, the term "junior securities" means (i) shares of
any stock of any class of the Company and (ii) securities of the Company which
are subordinated in right of payment to all Senior Indebtedness which may be
outstanding at the time of issuance or delivery of such securities to
substantially the same extent as, or to a greater extent than, the Securities of
such series are so subordinated as provided in this Article XIV. Nothing
contained in this Article XIV or elsewhere in this Indenture or in the
Securities of such series is intended to or shall impair, as among the Company,
its creditors other than holders of Senior Indebtedness and the Holders of
Securities of such series, the right, which is absolute and unconditional, of
the Holder of any Securities to convert such Securities in accordance with their
terms.

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

                                       57

<PAGE>

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

                                              ARGONAUT GROUP INC.

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

                                              LASALLE BANK NATIONAL ASSOCIATION,
                                              as Trustee

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

<PAGE>

STATE OF ILLINOIS )
                  )  ss:
COUNTY OF LAKE    )

     On the _____ day of ______________, 2002, before me personally came
________________, to me known, who, being by me duly sworn, did depose and say
that he is _______________of Argonaut Group Inc., one of the corporations
described in and which executed the foregoing instrument and that he signed his
name thereto by authority of the Board of Directors of said corporation.

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

STATE OF ILLINOIS )
                  )  ss:
COUNTY OF COOK    )

     On the ____ day of ___________, 2002, before me personally came
_____________________, to me known, who, being by me duly sworn, did depose and
say that he is ___________________ of LaSalle Bank National Association, one of
the corporations described in and which executed the foregoing instrument and
that he signed his name thereto by authority of the Board of Directors of said
corporation.

                                      ------------------------------------------<PAGE>

                                                                    Exhibit 4.1

                           WARRANT ISSUANCE AGREEMENT

         THIS AGREEMENT (the "Agreement") is made as of May 1, 2002, among
Aurora Foods Inc., a Delaware corporation (the "Company"), and the parties
listed on Exhibit A hereto as warrantholders (each a "Warrantholder" and
collectively, the "Warrantholders" or the "Investors").

         WHEREAS, the lenders under the Company's senior bank credit facilities
(the "Credit Agreement") have agreed to waive certain defaults subject to the
Investors entering into the Revolving Loan Subordinated Participation Agreement
dated as of the date hereof (the "Participation Agreement").

         WHEREAS, as consideration for the Investors entering into the
Participation Agreement, the Company has agreed to issue to each Investor (or an
affiliate thereof nominated by such Investor) warrants exercisable for the
Company's Common Stock, $0.01 par value per share (the "Common Stock").

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the parties agree as follows:

         1.     ISSUANCE OF WARRANTS. Subject to the terms of this Agreement, in
consideration of the Investors (or their affiliates) becoming party to the
Participation Agreement, the Company agrees to issue to each of the
Warrantholders a warrant to purchase the number of shares of Common Stock set
forth opposite such Warrantholder's name on Exhibit A hereto, each such Warrant
to be in the form attached hereto as Exhibit B (each a "Warrant", and
collectively, the "Warrants"); provided, that the number of shares of Common
Stock for which each Warrant is exercisable shall be subject to adjustment as
provided in Section 4 hereof. The shares of Common Stock issuable upon exercise
of the Warrant are referred to herein as the "Warrant Shares". As of the date
hereof, the Company and the Warrantholders shall have entered into an amendment
to the Securityholders Agreement dated as of April 8, 1998 among the Company and
the parties named therein, as amended (the "Amended Securityholders Agreement")
in the form attached hereto as Exhibit C. The Company will comply with all
applicable provisions of federal and state securities laws in connection with
the issuance of the Warrant Shares.

         2.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Warrantholders as follows:

                2.1.     Organization; Corporate Power and Good Standing. The
         Company is duly organized, validly existing and in good standing in the
         State of Delaware. The Company has the corporate power to own its
         properties and to carry on its business as now conducted and as
         presently proposed to be conducted.

                2.2.     Authorization. The execution, delivery and performance
         by the Company of this Agreement and the Amended Securityholders
         Agreement, and the issuance and

<PAGE>

         delivery of the Warrants and the reservation of the Warrant Shares
         issuable upon exercise of the Warrants: (a) are within the Company's
         corporate power and authority; (b) have been duly authorized by all
         necessary corporate proceedings; and (c) do not and will not conflict
         with or result in any breach of any provision of the charter or by-laws
         of the Company or any law, regulation, order, judgment, writ,
         injunction, license, permit, agreement or instrument to which the
         Company is subject. The Company will comply with all applicable
         provisions of federal and state securities laws in connection with the
         issuance of the Warrants and the Warrant Shares. The Warrant Shares,
         when issued in compliance with the provisions of this Agreement and the
         Warrants, will be duly authorized, validly issued, fully paid and
         nonassessable and free of any liens or encumbrances; provided, however,
         that the Warrant Shares may be subject to restrictions on transfer
         under state and/or federal securities laws.

                2.3.     Enforceability. Each of this Agreement, the Amended
         Securityholders Agreement and the Warrants has been duly executed and
         delivered by the Company and are the legally valid and binding
         obligations of the Company, enforceable against the Company in
         accordance with the respective terms and provisions hereof and thereof,
         except in the case of enforceability (i) as limited by applicable
         bankruptcy, insolvency, reorganization, moratorium, and other laws of
         general application affecting enforcement of creditors' rights
         generally and (ii) as limited by laws relating to the availability of
         specific performance, injunctive relief or other equitable remedies.

                2.4.     Capitalization.
                         --------------

                         (a)    On the date hereof, the authorized capital stock
                                of the Company consists solely of (i)
                                250,000,000 shares of Common Stock, of which
                                71,823,029 shares are issued and outstanding,
                                and (ii) 25,000,000 shares of preferred stock,
                                par value $0.01 per share, of which 3,750,000
                                shares of Series A Preferred Stock are issued
                                and outstanding. All of such shares have been
                                duly authorized, validly issued and are
                                outstanding, and are fully paid and
                                non-assessable and have been offered, issued and
                                sold in compliance with applicable federal and
                                state securities laws.

                         (b)    The Warrant Shares have been duly authorized and
                                validly reserved for issuance and, when issued
                                and delivered, will have been validly issued and
                                will be fully paid and nonassessable, and the
                                issuance thereof will not have been subject to
                                any preemptive rights or made in violation of
                                any applicable law.

         3.     REPRESENTATIONS AND WARRANTIES OF THE WARRANTHOLDERS.

                3.1.     Investment Intent. Each of the Warrantholders hereby
                         represents and warrants, severally and not jointly, to
                         the Company that:

                         (a)    Such Warrantholder is an "accredited investor"
                                as defined in Regulation D of the Securities
                                Act.

                                       -2-

<PAGE>

                         (b)    Such Warrantholder is in a financial position to
                                hold the Warrant and Warrant Shares
                                (collectively, the "Securities") for an
                                indefinite period of time, is able to bear the
                                economic risk of an investment in the Securities
                                and can withstand a complete loss of its
                                investment in the Securities.

                         (c)    Such Warrantholder either alone or together with
                                the assistance of Warrantholder's own
                                professional advisor or advisors, has the
                                knowledge and experience in business and
                                financial matters to read and interpret
                                financial statements of and concerning the
                                Company and to evaluate the merits and risk of
                                an investment in the Securities.

                         (d)    Such Warrantholder has obtained, to the extent
                                Warrantholder deems necessary, Warrantholder's
                                own personal professional advice with respect to
                                the risks inherent in an investment in the
                                Securities and the suitability of an investment
                                in the Securities in light of Warrantholder's
                                financial condition and investment needs.

                         (e)    Such Warrantholder understands that an
                                investment in the Securities is highly
                                speculative. Such Warrantholder nevertheless
                                believes that an investment in the Securities is
                                suitable for Warrantholder based upon
                                Warrantholder's investment objectives and
                                financial needs.

                         (f)    Such Warrantholder has either attended or been
                                given reasonable opportunity to attend meetings
                                with representatives of the Company for the
                                purpose of asking questions of, and receiving
                                answers from, these representatives concerning
                                the Company and an investment in the Securities,
                                and for the purpose of obtaining any additional
                                information to the extent reasonably available
                                that is necessary to verify the information
                                provided.

                         (g)    Such Warrantholder acknowledges that (i) any
                                purchaser of Securities must bear the economic
                                risk of investment for an indefinite period of
                                time because the Securities have not been
                                registered under the Securities Act or the
                                securities laws of any state, and, therefore,
                                cannot be sold unless they are subsequently
                                registered under these laws or exemptions from
                                registrations are available; and (ii) the
                                transferability of the Securities is restricted
                                and requires conformity with the restrictions
                                contained in the legend below. Such
                                Warrantholder further acknowledges that the
                                Securities will be further restricted by legends
                                placed on the certificate or certificates
                                representing the Securities referring to the
                                applicable restrictions on transferability, and
                                by stop transfer orders or notations on the
                                Company's records referring to the restrictions
                                on transferability. In addition to any legend
                                required by the Securityholders Agreement or
                                applicable law, the Securities shall have a
                                legend that shall provide substantially as
                                follows:

                                       -3-

<PAGE>

                                "THE SECURITIES REPRESENTED BY THIS CERTIFICATE
                                HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                                ACT OF 1933, AS AMENDED. THE SECURITIES HAVE
                                BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
                                SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
                                EXCEPT IN COMPLIANCE WITH SUCH ACT. IF RULE 144
                                OF THE SECURITIES ACT OF 1933 IS AVAILABLE TO
                                EXEMPT ANY SUCH SALE, TRANSFER OR DISPOSITION
                                FROM THE REQUIREMENTS OF SUCH ACT, THE ISSUER
                                COVENANTS TO REMOVE THE LEGENDS ON THIS
                                CERTIFICATE TO SO PERMIT THE SALE, TRANSFER OR
                                DISPOSITION OF THE SECURITIES EVIDENCED BY THIS
                                CERTIFICATE UNDER RULE 144 OF SUCH ACT."

                         (h)    Such Warrantholder has been advised by the
                                Company that the Securities have not been
                                registered under the Securities Act, or
                                applicable state securities laws, that the
                                Securities are being offered and sold pursuant
                                to exemptions from the registration requirements
                                of these laws, and that the reliance by the
                                Company on these exemptions is predicated in
                                part on such Warrantholder's representations to
                                the Company contained in this Agreement. Such
                                Warrantholder further represents and warrants
                                that the Securities are being purchased for such
                                Warrantholder's own account for investment
                                purposes only without the current intention of
                                reselling or redistributing the Securities,
                                except for this Agreement and the other
                                agreements contemplated hereby or disclosed
                                herein, and that the acquisition of the
                                Securities by such Warrantholder is not a
                                transaction (or any element of a series of
                                transactions) that is part of a plan or scheme
                                to evade the registration provisions of the
                                Securities Act of 1933, as amended.

         4.     ADJUSTMENT OF NUMBER OF WARRANTS.

                4.1.     Financial Advisor. The Company covenants and agrees (i)
         to use its best efforts to promptly retain a nationally recognized
         financial advisor familiar with transactions similar to those
         contemplated by the Participation Agreement, and (ii) to cause such
         financial advisor to provide to the Company's Board of Directors and
         the Special Committee established by the Board of Directors in
         connection with the Participation Agreement (together, the "Board")
         information ("Market Information") reasonably requested by the Board to
         support the Board's determination that the Warrants issued as
         consideration for the Investors entering into the Participation
         Agreement and the terms thereof are no less favorable to the Company
         than those that could be obtained as of May 1, 2002 in arm's-length
         dealings with an unaffiliated party, and that the Warrants issued as
         consideration for the Investors entering into the Participation
         Agreement and the terms thereof are fair as to the Company as of such
         date.

                                       -4-

<PAGE>

                4.2.     Certification. In the event that the Board determines,
         in the exercise of its business judgment, that the Market Information
         supports, in accordance with Section 4.1 above, the issuance of the
         number of Warrant Shares provided herein as consideration for the
         Investors entering into the Participation Agreement, the number of
         Warrant Shares issued hereunder shall remain unchanged. In the event
         that the Board determines, in the exercise of its business judgment,
         that the Market Information supports, in accordance with Section 4.1
         above, the issuance of fewer Warrant Shares, the Board shall deliver a
         certificate to each Warrantholder indicating that adjustment of the
         number of Warrant Shares is required (the "Adjustment Certificate") and
         the number of Warrant Shares will be adjusted to the greatest number of
         Warrant Shares supportable by the Market Information, in accordance
         with Section 4.1 above. In the event that the Board does not deliver
         the Adjustment Certificate prior to the earlier of (a) November 1, 2002
         and (b) a Change of Control, the number of Warrant Shares shall not be
         adjusted pursuant to this Section 4. In the event an Adjustment
         Certificate is delivered, Warrant Shares shall only be issuable with
         respect to the number of Warrant Shares indicated in the Adjustment
         Certificate.

                4.3.     Warrant Certificates. Upon receipt of an Adjustment
         Certificate, each of the Warrantholders agrees to return the warrant
         certificate originally issued to each Warrantholder to the Company. The
         Company shall promptly amend Exhibit A hereto to reflect the adjustment
         indicated in the Adjustment Certificate proportionately among each of
         the Warrantholders and shall issue to each Warrantholder, upon receipt
         and cancellation of the warrant certificate originally issued to such
         Warrantholder, a replacement warrant certificate, dated as of the date
         hereof, reflecting the number of Warrants attributable to such
         Warrantholder as specified in the Adjustment Certificate.

         5.     RESERVATION OF STOCK. The Company covenants and agrees that it
will at all times reserve and keep available, solely for issuance and delivery
upon exercise of the Warrants, the number of shares of Common Stock from time to
time issuable upon exercise of all Warrants at the time outstanding.

         6.     OPINION. Counsel to the Company shall deliver an opinion dated
the date hereof reasonably satisfactory to the Investors that the issuance and
delivery of the Warrants and the reservation of the Warrant Shares issuable upon
exercise of the Warrants: (a) are within the Company's corporate power and
authority; (b) have been duly authorized by all necessary corporate proceedings;
and (c) do not and will not conflict with or result in any breach of any
provision of the charter or by-laws of the Company or any law, regulation,
order, judgment, writ, injunction, license, permit, agreement or instrument to
which the Company is subject. The Warrant Shares, when issued in compliance with
the provisions of this Agreement and the Warrants, will be duly authorized,
validly issued, fully paid and nonassessable and free of any liens or
encumbrances; provided, however, that the Warrant Shares may be subject to
restrictions on transfer under state and/or federal securities laws.

         7.     CERTAIN DEFINITIONS. For purposes of this Agreement, the
following terms shall have the meanings set forth below:

                                       -5-

<PAGE>

"Capital Stock" means (a) as to any Person that is a corporation, the authorized
capital stock of such Person, including all classes and series of common,
preferred, voting and nonvoting capital stock, and (b) as to any Person that is
not a corporation or an individual, the ownership interests in such Person,
including, without limitation, the right to share in profits and losses, the
right to receive distributions of cash and property, and the right to receive
allocations of items of income, gain, loss, deduction and credit and similar
items from such Person, whether or not such interests include voting or similar
rights entitling the holder thereof to exercise control over such Person.

"Change of Control" means the occurrence of any of the following events: (a) any
Person or "group" (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 and
13d-5 under the Exchange Act, except that a Person shall be deemed to have
"beneficial ownership" of all securities that such Person has the right to
acquire, whether such right is exercisable immediately or only after the passage
of time), directly or indirectly, of more than 50% of the total Voting Capital
Stock of the Company, other than any Person or group which beneficially owned
more than 15% of the total Voting Capital Stock of the Company as of May 1, 2002
or (b) the Company consolidates with, or merges with or into, another Person or
sells, assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of its assets to any Person, or any Person consolidates with,
or merges with or into the Company, in any such event pursuant to a transaction
in which the holders of the outstanding Voting Capital Stock of the Company
immediately prior to such transaction hold less than 50% of the outstanding
Voting Capital Stock of the surviving or transferee company or its parent
company immediately after the transaction or immediately after such transaction
any Person or "group" (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act), is the "beneficial owner" (as defined in Rules 13d-3 and 13d-5
under the Exchange Act, except that a Person shall be deemed to have "beneficial
ownership" of all securities that such Person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time),
directly or indirectly, of more than 50% of the total Voting Capital Stock of
the surviving or transferee company or its parent company immediately after the
transaction as applicable or (c) during any consecutive two-year period,
individuals who at the beginning of such period constituted the Board (together
with any new directors whose election by the Board or whose nomination for
election by the stockholders of the Company was approved by a vote of a majority
of the directors then still in office who were either directors at the beginning
of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board then in
office or (d) any transaction subject to Rule 13e-3 under the Exchange Act if
following such Rule 13e-3 transaction a Person owns more than 50% of the total
Voting Capital Stock of the Company, other than such a transaction with any
Person or group which beneficially owned more than 15% of the total Voting
Capital Stock of the Company as of May 1, 2002.

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

"Person" means an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association,
joint venture, governmental authority or other entity of whatever nature.

                                       -6-

<PAGE>

"Voting Capital Stock" means with respect to any Person, securities of any class
or classes of Capital Stock in such Person ordinarily entitling the holders
thereof (whether at all times or at the times that such class of Capital Stock
has voting power by reason of the happening of any contingency) to vote in the
election of members of the board of directors or comparable governing body of
such Person.

         8.     GENERAL.

                8.1.     Binding Effect; Assignment. The provisions of this
         Agreement shall be binding upon and inure to the benefit of the parties
         and their respective successors, permitted transferees and assigns,
         heirs, administrators and legal representatives. The Company may not
         assign its rights or obligations hereunder. No Warrantholder may assign
         any portion of its rights, obligations or liabilities under this
         Agreement, except to an affiliate, without the prior written consent of
         the Company, which consent shall not be unreasonably withheld.

                8.2.     Amendment; Waiver. The rights and obligations of the
         Company and the Warrantholders may be waived or amended if and only if
         such waiver or amendment is consented to in writing by the Company and
         Warrantholders holding at least a majority of the aggregate number of
         Warrant Shares (on an as-exercised basis); provided, however, that if
         any waiver or amendment would adversely affect the rights or duties of
         one or more Warrantholders (the "Adversely Affected Holders") in a
         manner that is materially different from its effect on the other
         Warrantholders, such amendment or waiver shall not be effective as to
         any Adversely Affected Holder unless consented to in writing by the
         Adversely Affected Holders holding a majority of the aggregate number
         of Warrant Shares (on an as-exercised basis) held by all Adversely
         Affected Holders. Each party hereto shall be bound by any amendment,
         modification or waiver effected in accordance with this section.

                8.3.     Governing Law. This Agreement shall be governed by and
         construed in accordance with the laws of the State of New York.

                                       -7-

<PAGE>

                                  [Aurora Foods Inc. Warrant Issuance Agreement]

         The parties have duly executed this Agreement as of the date first
written above.

                             AURORA FOODS INC.

                             By /s/ James T. Smith
                                -----------------------------------
                                Title: Chairman & CEO

                             FENWAY PARTNERS CAPITAL FUND, L.P.

                             By:  Fenway Partners, L.P., its General Partner

                             By:  Fenway Partners Management, Inc., its general
                             partner

                             By /s/ Richard C. Dresdale
                                --------------------------------
                                Title:  Managing Director

                             By /s/ Andrea Geisser
                                --------------------------------
                                Title:  Managing Director

                             MCCOWN DE LEEUW & CO. IV, L.P.

                             By: MDC Management Co. IV LLC,
                                 its general partner

                             By /s/ David E. De Leeuw
                                --------------------------------
                                its Managing Member

                             DELTA FUND LLC

                             By /s/ David E. De Leeuw
                                --------------------------------
                                its Administrative Member

<PAGE>

                                  [Aurora Foods Inc. Warrant Issuance Agreement]

                             MCCOWN DE LEEUW & CO. IV
                             ASSOCIATES, L.P.

                             By: MDC Management Company IV LLC,
                                     its general partner

                             By /s/ David E. De Leeuw
                                --------------------------------
                                  its Administrative Member

<PAGE>

                                                                       Exhibit A
                                                                       ---------

                                           As Amended, Effective October 7, 2002
                                           -------------------------------------

                       Aurora Foods Warrants as Adjusted

                                                Number of Shares of
Warrantholder                                   Common Stock Subject to Warrants
-------------                                   --------------------------------

Fenway Partners Capital Fund, L.P.                178,790 shares

McCown DeLeeuw & Co. IV, L.P.                     116,858 shares

McCown DeLeeuw & Co. IV Associates, L.P.          1,891 shares

Delta Fund LLC                                    2,461 shares

<PAGE>

                                                                       Exhibit B
                                                                       ---------

                                 Form of Warrant
                                 (see attached)

<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ACT OR AN EXEMPTION FROM SUCH REQUIREMENT UNDER SUCH ACT.

THESE SECURITIES ARE SUBJECT TO CERTAIN PROVISIONS OF A SECURITYHOLDERS
AGREEMENT TO WHICH THE ISSUER AND CERTAIN OF ITS SECURITYHOLDERS ARE PARTY, A
COPY OF WHICH MAY BE INSPECTED BY THE HOLDER AT THE PRINCIPAL OFFICE OF THE
ISSUER OR OBTAINED FROM THE ISSUER WITHOUT CHARGE.

                                                               [______] Warrants

                        COMMON STOCK WARRANT CERTIFICATE

                                Aurora Foods Inc.

         THIS CERTIFIES that, for valued received, ___________, or its
registered successors and assigns, is the owner of ______ warrants (the
"Warrants"), each to purchase from Aurora Foods Inc., a Delaware corporation
(herein called the "Company"), at any time or from time to time but in any event
no later than 5:00 p.m., New York time on June 1, 2012 (the "Expiration Date"),
one share of Common Stock, par value $0.01 per share, of the Company at an
initial exercise price per share of $0.01, subject to adjustment from time to
time pursuant to the provisions of Section 3. For purposes of this Warrant
Certificate, the term "Common Shares" shall mean the class of capital stock of
the Company designated Common Stock, par value $0.01, pursuant to the Company's
Certificate of Incorporation, as amended, and any other class of capital stock
of the Company resulting from successive changes or reclassification of the
Common Stock. This Warrant Certificate is issued in connection with the
execution and delivery of the Warrant Issuance Agreement dated as of May 1, 2002
among the Company and the other parties thereto (the "Warrant Issuance
Agreement"), and the number of Warrants evidenced hereby is subject to
adjustment as provided in Section 4 of the Warrant Issuance Agreement.

         1.     Exercise of Warrants. The Warrants evidenced hereby may be
exercised at any time after November 1, 2002 through the Expiration Date by the
registered holder hereof, in whole or in part, by the surrender of this Warrant
Certificate, duly endorsed (unless endorsement is waived by the Company), at the
principal office of the Company (or at such other office or agency of the
Company as it may designate by notice in writing to the registered holder hereof
at such holder's last address appearing on the books of the Company) along with
the duly completed Exercise Form attached hereto as Exhibit A and, other than in
the case of an exercise designated to be a "Cashless Net Exercise" pursuant to
Section 2 below, upon payment of the

<PAGE>

aggregate Exercise Price (as defined below) of the Common Shares purchased;
provided, that in the event of a Change of Control, the Warrants evidenced
hereby shall become immediately exercisable. The certificate(s) for such Common
Shares shall be delivered to the registered holder hereof within a reasonable
time, after Warrants evidenced hereby shall have been so exercised and a new
Warrant Certificate evidencing the number of Warrants, if any, remaining
unexercised shall also be issued to the registered holder within such time
unless such Warrants have expired. No fractional Common Shares of the Company,
or scrips for any such fractional shares, shall be issued upon the exercise of
any Warrants; but the holder hereof shall be entitled to cash equal to such
fraction multiplied by the then fair market value of a Common Share as
determined in good faith by the Board of Directors of the Company.

         2.     Cashless Net Exercise. In the event the current market price
(as determined below) of a Common Share exceeds the Exercise Price on the
business day immediately prior to the exercise of the Warrant, the holder hereof
may elect to exercise the Warrants, in whole or in part, pursuant to this
Section 2 by designating the exercise as a Cashless Net Exercise on the Exercise
Form. If the exercise is designated as a Cashless Net Exercise on the Exercise
Form, then the Company, in accordance with Section 1 hereof, will issue on
exercise of this Warrant, without the payment by the holder hereof of any
additional consideration, a number of Common Shares determined by dividing (i)
the result of the difference between such current market price and the Exercise
Price multiplied by the number of Common Shares into which the Warrants then
being exercised are exercisable, by (ii) the current market price per Common
Share. For the purpose of any computation of current market price under this
Section, the current market price per Common Share at any date shall be the
closing price on the business day immediately prior to the exercise of the
Warrants. The closing price for any day shall be the last reported sale price
or, in case no such reported sale takes place on such day, the average of the
closing bid and asked prices for such day, in each case (1) on the principal
national securities exchange on which the Common Shares are listed or to which
such shares are admitted to trading or (2) if the Common Shares are not listed
or admitted to trading on a national securities exchange, in the
over-the-counter market as reported by Nasdaq or any comparable system or (3) if
the Common Shares are not listed on Nasdaq or a comparable system, as determined
in good faith by the Board of Directors of the Company.

         3.     Adjustment in Exercise Price and Number of Shares. The initial
exercise price of $0.01 per share shall be subject to adjustment from time to
time as hereinafter provided (such price, as last adjusted, being herein called
the "Exercise Price").

                (a)      Subdivision or Combination of Stock; Stock Dividends.
         Upon any subdivision or combination of outstanding Common Shares, and
         upon any dividend or other distribution payable in Common Shares, the
         number of Common Shares subject to purchase hereunder shall be adjusted
         by multiplying the number of Common Shares subject to purchase
         hereunder immediately prior to such event by a fraction, the numerator
         of which is the number of Common Shares outstanding immediately
         subsequent to such event and the denominator of which is the number of
         Common Shares outstanding immediately prior to such event, and the
         Exercise Price shall thereupon be

                                       -2-

<PAGE>

         proportionately decreased or increased so that the total consideration
         payable upon full exercise of this Warrant shall be unchanged, except
         that in no event shall the Exercise Price be reduced below the par
         value per share of the Common Shares.

                (b)      Reorganization, Reclassification, Consolidation,
         Merger. If any capital reorganization, reclassification of the capital
         stock of the Company or consolidation or merger of the Company with
         another corporation shall be effected, then, lawful and adequate
         provision shall be made whereby each holder of Warrants shall
         thereafter have the right to purchase and receive upon the basis and
         upon the terms and conditions herein specified and in lieu of the
         Common Shares immediately theretofore issuable upon exercise of the
         Warrants, such shares of stock, securities or properties (including
         cash paid as partial consideration) (collectively, the "Substitute
         Securities") as may be issuable or payable with respect to or in
         exchange for a number of outstanding Common Shares equal to the number
         of Common Shares issuable upon exercise of the Warrants immediately
         prior to such reorganization, reclassification, consolidation or
         merger, and in any such case, appropriate provision shall be made with
         respect to the rights and interests of each holder of Warrants to the
         end that the provisions hereof shall thereafter be applicable, as
         nearly equivalent as may be practicable in relation to any Substitute
         Securities thereafter deliverable upon the exercise thereof. The above
         provisions of this Subsection 3(b) shall similarly apply to successive
         reorganizations, reclassification, consolidations or mergers.

         4.     Company to Provide Stock. The Company covenants and agrees that
all the Common Shares which may be issued upon the exercise of the Warrants
evidenced hereby upon the due exercise, including exercise pursuant to Section 2
hereof or the receipt by the Company of the aggregate Exercise Price for all
Warrants exercised (in the case of an exercise other than pursuant to Section 2
hereof), will be duly authorized, validly issued and fully paid and
nonassessable and free from all taxes, liens and charges with respect to the
issue thereof to the registered holder hereof other than those which the Company
shall promptly pay or discharge.

         5.     Listing of Common Shares.  The Company shall cause all Common
Shares issued upon the exercise of Warrants evidenced hereby to be listed or
otherwise eligible for trading on the New York Stock Exchange or such other
national securities exchange or which constitutes the principal trading U.S.
Market for the Common Shares.

         6.     Periodic Information. The Company will comply with the reporting
requirements of Section 13 and 15(d) of the Securities and Exchange Act of 1934,
as amended, and will comply with all other information reporting requirements of
the Securities and Exchange Commission (the "Commission") (including Rule 144
under the Securities Act of 1933, as amended (the "Securities Act")) from time
to time in effect and relating to the availability of an exemption from the
Securities Act for the sale of any Common Shares issued upon the exercise of
Warrants. The Company will cooperate with each Warrantholder in supplying such
information as may be reasonably necessary for such holder to complete and file
any information reporting forms presently or hereafter required by the
Commission as a condition to the

                                       -3-

<PAGE>

availability of an exemption from the Securities Act for the sale of any Common
Shares issued upon exercise of Warrants. The Company will furnish to each holder
of any Warrants upon request, promptly upon their becoming available, copies of
all financial statements, reports, notices and proxy statements sent or made
available generally by the Company to its stockholders, and copies of all
regular and periodic reports and all registration statements and prospectuses
filed by the Company with any securities exchange or with the Commission.

         7.     Replacement of Warrants. On receipt of evidence satisfactory to
the Company of the loss, theft, destruction or mutilation of this Warrant
Certificate, and in the case of any such loss, theft or destruction of this
Warrant Certificate, on delivery of an indemnity agreement or security
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of such Warrant Certificate, unless
the Company has received notice that any such Warrant Certificate has been
acquired by a bona fide purchase, the Company at its expense will execute and
deliver, in lieu thereof, a new Warrant Certificate of like tenor.

         8.     Registered Holder. Unless the Company is notified in writing
otherwise, the registered holder of this Warrant Certificate shall be deemed the
owner hereof and of the Warrants evidenced hereby for all purposes. The
registered holder of this Warrant Certificate shall not be entitled by virtue of
ownership of this Warrant Certificate to any rights whatsoever as a shareholder
of the Company.

         9.     Amendments and Waivers. Any provision in this Warrant
Certificate to the contrary notwithstanding, changes in or additions to this
Warrant Certificate may be made and compliance with any covenant or provision
herein set forth may be omitted or waived only in accordance with Section 8.2 of
the Warrant Issuance Agreement.

        10.     Transfer. None of this Warrant Certificate and the Warrants
evidenced hereby nor any Common Shares issued or exercise hereof may be sold,
transferred, pledged, hypothecated or otherwise disposed of unless and until:
(i) there is then in effect a registration statement under the Securities Act of
1933, as amended (the "Securities Act"), covering such proposed disposition and
such disposition is made in accordance with such registration statement and all
applicable state securities laws; or (ii) (A) the transferor shall have notified
the Company of the proposed disposition and shall have furnished the Company
with a statement of the circumstances surrounding the proposed disposition, and
(B) if the proposed transferee is not an affiliate of the transferor, if
reasonably requested by the Company, such transferor shall have furnished the
Company with an opinion of counsel, reasonably satisfactory to the Company, that
such disposition will not require registration of such securities under the
Securities Act and that all requisite action has been or will, on a timely
basis, be taken under any applicable state securities laws in connection with
such disposition; and (iii) the proposed transferee shall have agreed in writing
to be bound by the terms and provisions of this Section 8. Notwithstanding the
provisions of clauses (i) and (ii) above, no such registration statement or
opinion of counsel shall be necessary for a transfer pursuant to Rule 144(k)
promulgated under the Securities Act.

                                       -4-

<PAGE>

         IN WITNESS WHEREOF, Aurora Foods Inc. has caused this Warrant
Certificate to be signed by a duly authorized officer and this Warrant
Certificate to be dated May 1, 2002.

                                     AURORA FOODS INC.

                                     By:____________________________________

                                     Title:_________________________________

                                       -5-

<PAGE>

EXHIBIT A
                                 Aurora Foods Inc.
                                  EXERCISE FORM

         The undersigned hereby irrevocably elects to exercise ____ [insert
number of warrants surrendering for exercise] of the Warrants for the
acquisition of Common Shares represented by this Warrant Certificate, on the
terms and conditions specified in this Warrant Certificate, surrenders this
Warrant Certificate and directs that the Common Shares deliverable upon the
exercise of such Warrants be registered or placed in the name and at the address
specified below and delivered thereto. The undersigned, by its exercise of the
Warrant, acknowledges, represents to and agrees with the Company as follows: (1)
it understands and acknowledges that the Common Shares issuable upon such
exercise (the "Underlying Shares") have not been registered under the Securities
Act or any other applicable securities law, are being issued in a transaction
not requiring registration under the Securities Act, and may not be offered,
sold or otherwise transferred except in compliance with the registration
requirements of the Securities Act or any other applicable securities law, or
pursuant to an exemption therefrom; (2) it is an "accredited investor" within
the meaning of Rule 501 under the Securities Act; (3) it has such knowledge and
experience in financial and business matters that it is capable of evaluating
the merits and risks of purchasing any of the Underlying Shares, and it is aware
that it may be required to bear the economic risk of an investment in the
Underlying Shares for an indefinite period of time and is able to bear such risk
for an indefinite period; (4) it acknowledges that neither the Company nor any
person representing the Company has made any representations to it with respect
to the Company or the sale of any Underlying Shares; (5) it has had access to
such financial and other information concerning the Company as it has deemed
necessary in connection with its decision to purchase the Underlying Shares,
including an opportunity to ask questions of and request information from the
Company; and (6) it is purchasing the Underlying Shares for its own account, for
investment, and not with a view to, or for offer or sale in connection with, any
distribution thereof in violation of the Securities Act.

         Please check one:   Cashless Net Exercise____
                        Exercise for Cash ____ (aggregate Exercise Price must be
tendered)

Dated:  _______________,______              _____________________________
                                                   (Signature of Owner)/1/
                                                   _____________________________
                                                   (Street Address)
                                                   _____________________________
                                                   (City) (State) (Zip Code)

-----------------------
         /1/  The signature must correspond with the name as written upon the
face of the within Warrant Certificate in every particular.

                                       -6-

<PAGE>

                                                                       Exhibit C
                                                                       ---------

                 Form of Amendment to Securityholders Agreement
                                  (see attached)

<PAGE>

                                    AMENDMENT

                                       TO
                            SECURITYHOLDERS AGREEMENT
                            -------------------------

         This Amendment is made as of this 1st day of May, 2002 by and among
Aurora Foods Inc. (the "Company"), Fenway Partners Capital Fund, L.P., Fenway
Partners Capital Fund II, L.P., FPIP LLC, FPIP Trust, LLC (collectively
"Fenway"), McCown DeLeeuw & Co. III, L.P., McCown DeLeeuw & Co. III (Europe),
L.P., McCown DeLeeuw & Co. III (Asia), L.P., Gamma Fund LLC, McCown DeLeeuw &
Co. IV, L.P., McCown DeLeeuw & Co. IV Associates, L.P., Delta Fund LLC
(collectively, "MDC"), UBS Capital LLC ("UBS") and Gloriande (Luxemberg)
S.A.R.L., an affiliate of Tiger Oats Limited ("Tiger").

         The parties agree as follows:

1.       Securityholders Agreement; Definitions. This Amendment amends the
Securityholders Agreement dated as of April 8, 1998 among the parties named
therein, as amended on June 30, 1999, February 18, 2000, and September 19, 2000
(as in effect prior to giving effect to this Amendment, the "Securityholders
Agreement"). Terms defined in the Securityholders Agreement as amended hereby
(the "Amended Securityholders Agreement") and not otherwise defined herein are
used with the meanings so defined.

2.       Amendment of Section 11.2.  Section 11.2 of the Securityholders
Agreement is hereby amended by changing the following definition to read in its
entirety as follows:

                           "Registrable Securities" shall mean (i) all shares of
                           Common Stock or other securities of the Public
                           Company held by any party hereto as a result of such
                           party's interest in New LLC, MBW LLC or VDK LLC other
                           than Management Securities, (ii) Management
                           Securities, (iii) all shares of Common Stock issuable
                           upon conversion of the Series A Preferred Stock of
                           the Company issued pursuant to the Securities
                           Purchase Agreement dated as of September 8, 2000 by
                           and among the Company and the Purchasers listed on
                           Schedule A thereto (the "Purchasers"), and all shares
                           of Common Stock issuable to the Purchasers upon
                           conversion of the Series A Preferred Stock of the
                           Company issued as dividends to the Purchasers, (iv)
                           all shares of Common Stock issuable upon exercise of
                           the Warrants of the Company issued pursuant to the
                           Warrant Issuance Agreement dated as of May 1, 2002 by
                           and among the Company and the other parties thereto
                           and (v) all shares of Common Stock or other
                           securities directly or indirectly issued or issuable
                           with respect to the securities referred to in clauses
                           (i), (ii), (iii) and (iv) above by way of stock
                           dividend or stock split or in connection with a
                           combination of shares, recapitalization, merger,
                           consolidation, incorporation of a limited liability
                           company or other reorganization, other than
                           securities transferred pursuant

                                      -1-

<PAGE>

                          to Sections 3.2 or 3.3 hereof. As to any particular
                          Registrable Securities, such shares shall cease to be
                          Registrable Securities when (a) a registration
                          statement with respect to the sale of such securities
                          shall have become effective under the Securities Act
                          and such securities shall have been disposed of in
                          accordance with such registration statement, (b) such
                          securities shall have been distributed to the public
                          pursuant to Rule 144 (or any successor provision)
                          under the Securities Act, (c) for purposes of Sections
                          6.1 and 6.2, with respect to any Registrable
                          Securities that any holder and its Affiliates shall
                          otherwise be entitled to include in a registration
                          statement pursuant to Sections 6.1 or 6.2, when such
                          securities may be distributed without volume
                          limitation or other restrictions on transfer under
                          Rule 144 (including without application of paragraphs
                          (c), (e) (f) and (h) of Rule 144), provided that this
                          clause (c) shall have no applicability if such
                          securities represent more than 2% of the outstanding
                          Common Stock of the Public Company, or (d) such
                          securities shall have ceased to be outstanding.

3.       General.  The Amended Securityholders Agreement is hereby confirmed as
         being in full force and effect. This Amendment and the Amended
         Securityholders Agreement constitute the entire understanding of the
         parties with respect to the subject matter hereof and thereof and
         supersede all prior and current understandings and agreements, whether
         written or oral. This Amendment may be executed in any number of
         counterparts, which together shall constitute one instrument, and shall
         bind and inure to the benefit of the parties and their respective
         successors and assigns. This Amendment shall be governed by and
         construed in accordance with the laws (other than the conflict of law
         rules) of the State of Delaware.

                  [Remainder of Page Intentionally Left Blank]

                                       -2-

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment as
of the day and year first above written.

                                    AURORA FOODS INC.

                                    By:  ___________________________
                                         Name:
                                         Title:

                                    FENWAY PARTNERS CAPITAL FUND, L.P.

                                    By:  Fenway Partners, L.P., its General
                                         Partner

                                         By:  Fenway Partners Management, Inc.
                                              its General Partner
                                    By:  ____________________________
                                         Name:
                                         Title:

                                    By:  ____________________________
                                         Name:
                                         Title:

                                    FPIP LLC

                                    By:  Fenway Partners, Inc., its Manager

                                    By:  _____________________________
                                         Name:
                                         Title:

                                    FPIP TRUST, LLC

                                    By:  Fenway Partners, Inc., its Manager

                                       -3-

<PAGE>

                                    By:  ____________________________
                                         Name:
                                         Title:

                                    FENWAY PARTNERS CAPITAL FUND II, L.P.

                                    By:  Fenway Partners II, L.L.C., its General
                                          Partner

                                    By:  ____________________________
                                         Name:
                                         Title:

                                    By:  ____________________________
                                         Name:
                                         Title:

                                     McCOWN DeLEEUW & CO. III, L.P.

                                     By:  MDC Management Company III, L.P.,
                                          its General Partner

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     McCOWN DeLEEUW & CO. III (Europe), L.P.

                                     By:  MDC Management Company III, L.P.,
                                          its General Partner

                                     By:  ___________________________
                                          Name:
                                          Title:

                                       -4-

<PAGE>

                                     McCOWN DeLEEUW & CO. III (Asia), L.P.

                                     By:  MDC Management Company IIIA, L.P.,
                                          its General Partner

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     GAMMA FUND LLC

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     McCOWN DeLEEUW & CO. IV, L.P.

                                     By:  MDC Management Company IV, L.P.
                                          its General Partner

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     DELTA FUND LLC

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     McCOWN DeLEEUW & CO. IV ASSOCIATES, L.P

                                     By:  ___________________________
                                          Name:
                                          Title:

                                       -5-

<PAGE>

                                     UBS CAPITAL LLC

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     By:  ___________________________
                                          Name:
                                          Title:

                                     GLORIANDE (LUXEMBOURG) S.A.R.L.

                                     By:  ___________________________
                                          Name:
                                          Title:

                                       -6-

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